Asia Pacific – Page 1333

MIL-OSI New Zealand: Animal Welfare – Warmer weather brings increased risks to dogs – NZVA

Source: NZ Veterinary Association

Dog owners are being warned to keep their pets away from highly toxic karaka berries and algal blooms this summer, and to contact their veterinarian immediately if they think their dog has swallowed them.

The New Zealand Veterinary Association Te Pae Kīrehe (NZVA) encourages owners to walk dogs on a leash if toxic algae or karaka berries could be in the vicinity as both can make dogs incredibly ill.

NZVA Head of Veterinary Services Companion Animal Sally Cory says at this time of year pets are spending more time outdoors and have more access to things that can harm them. “Unfortunately, dogs are attracted to karaka berries and toxic algae because of the strong smell,” she says. “Even small amounts can be dangerous, so if you think your dog has eaten karaka berries or toxic algae, call your veterinarian immediately and they will advise you what to do next.”

The karaka tree fruits annually between January and April, dropping orange berries containing the alkaloid, karakin, which may be poisonous to dogs. Consumption of the berries by canines – who love their sweet taste – can lead to impaired neurological function, respiratory failure, and even death. Clinical signs can be delayed from between 24 hours and a week or more following ingestion.

Toxic algae, also known as cyanobacteria, appears in rivers and lakes as black, green, or brown slime on rocks, and as brown or black ‘mats’. Symptoms can develop within 30 minutes and include panting, lethargy, muscle tremors, twitching, and convulsions.

“When walking your dog near fresh water at this time of year, be mindful if it’s been dry and the water is potentially stagnant, or if it has rained heavily after a dry period as this can cause algae mats to dislodge,” Sally says. “Toxic algae has a strong, musty odour which dogs are attracted to and the toxic reaction can be fast. Remember if humans are advised not to swim somewhere, dogs shouldn’t swim there either.”

Sally advises dog owners to keep an eye on information provided by local councils as signage may not always be installed at parks, rivers, and lakes. You can look up the potential risks of a destination by visiting Land Air Water Aotearoa.

Sally also urges puppy and dog owners to make sure their pets are fully vaccinated against parvovirus as cases tend to rise when dogs spend more time in public spaces when the weather is warmer. Dogs can become infected by ingesting the virus through direct contact with contaminated faeces, surfaces, or objects, such as food bowls. The virus can even be transmitted on footwear. Signs of illness usually occur within three to seven days of exposure and may include severe, often bloody diarrhoea; vomiting; lethargy; decreased appetite; fever or low body temperature; rapid dehydration; and in severe cases, death.

“We have started to see an increase in parvovirus cases already this season,” Sally says. “It is a highly contagious, viral disease, but it is preventable with appropriate vaccination.” Those most at risk are young (six weeks to six months), unvaccinated, or incompletely vaccinated puppies.

Similarly, vaccinations need to be kept up-to-date for canine cough (kennel cough), an infectious respiratory disease that spreads when dogs are in close contact, such as at the beach, in parks, on walks, and in boarding kennels or daycare facilities. Talk to your veterinarian to ensure your dog is protected against parvovirus and canine cough.

The summer months also bring the risk of bee sting reactions, incidents of dogs swallowing too much salt water, and grass seeds becoming lodged in ears and between toes, so keep an eye out for these too while out and about enjoying the warmer weather.

Signs of karaka poisoning include:

– Vomiting or diarrhoea

– Abdominal pain

– Reduced appetite

– Paralysis of back legs

– Loss of balance

– Convulsions

– Breathing slower than usual (which can lead to paralysis of breathing muscles).

– If you think your dog has eaten any karaka berries, contact your vet immediately.

Signs of toxic algae poisoning include:

– Panting

– Lethargy

– Muscle tremors

– Twitching

– Convulsions

– If your dog is showing any of these symptoms after being in contact with a waterway, contact your veterinarian immediately.

More information on these topics can be found on the NZVA website:

MIL OSI New Zealand News –

January 29, 2025

MIL-OSI Australia: Minister Rishworth interview on ABC News Breakfast

Source: Ministers for Social Services

29 January 2025

E&OE TRANSCRIPT

Topics: Updated Australia’s Disability Strategy; Inflation; AI chatbot DeepSeek; Election.

JAMES GLENDAY, HOST: Now, Australians with disability are the focus of the Federal Government today as it commits to additional changes, months after a scathing Royal Commission was handed down. An updated Disability Strategy will be launched by the Social Services Minister, Amanda Rishworth, who I am happy to say, joins us now from Geelong. Minister, good morning.

AMANDA RISHWORTH, MINISTER FOR SOCIAL SERVICES: Great to be with you.

JAMES GLENDAY: So, there’s a specific focus on homelessness in this updated Strategy. How many people are going to be covered by this document?

AMANDA RISHWORTH: This Strategy is actually a Strategy for all people with disability. The 5.5 million Australians living with disability. We know that if they are going to be able to fully participate in community life, then we need to make sure that our communities, our housing, is more accessible. And so that is what the Strategy is all about. How do we make our communities, our homes, more accessible. There has been a lot of consultation done with people with disability and it was highlighted that while housing has been a focus of Australia’s Disability Strategy, that homelessness and the prevention of homelessness for people with disability needed to be a focus as well. And so, what the Strategy will do is actually get all levels of government, state government and Commonwealth government, making sure that when it comes to homelessness services, there will be a particular focus on meeting the needs of people with disability. And when it comes to building homes, that there will be a focus in making sure that those homes are more accessible as well, so that people with disability have more choice over where they live.

JAMES GLENDAY: We’re going to have more on this story on the ABC throughout the day. And thank you for persisting through that alarm behind you there, Minister. Just on another topic, of course, cost of living is a very, very big issue for a lot of Australians at the moment. And some key inflation figures are out today. Are you expecting that data will be enough to convince the Reserve Bank to deliver that much anticipated first rate cut?

AMANDA RISHWORTH: First, I’d say obviously the Reserve Bank is independent, it makes its own decisions. But I would say what our Government has been doing is really focused on fighting inflation. Of course, we inherited a situation where inflation had a six in front of it and was going up. The most recent figures, it had a two in front of it and is coming down. We’ve also seen wages up and of course unemployment low. So, we’ve been working really hard to make sure that we are fighting inflation, at the same time supporting people with cost of living measures and making sure that we’re seeing wages go up and of course, making sure there’s jobs for people. So, this has been the really important work our Government’s been doing and doing what we can to fight inflation and give the best possible conditions for the Reserve Bank to make its decision.

JAMES GLENDAY: You would have seen yesterday, no doubt, that a lot of people have been downloading a new Chinese AI chatbot, DeepSeek, which has triggered a share market sell off. Some analysts this morning arguing this is good for competition in the global AI arms race. Others that this is a potential risk to national security. What is your view?

AMANDA RISHWORTH: Well, firstly, I would say broadly AI has so much potential to help us in our daily lives and have an impact. In fact, when we think about people with disability, I’ve seen circumstances where AI has helped them do their job. So, it has a lot of potential if it’s used safely, responsibly and ethically. And so, I think the question’s got to be how we are preparing our country for these new AI tools that will be coming out. And we’re doing that in a number of ways. Whether it’s the ethics code, whether it’s the safety standards or indeed the mandatory guardrails. These are all important pieces of legislative and regulatory architecture that we need to have in place to make sure that people can trust AI. So, these are the challenges we’ve got. So, AI presents a huge opportunity but we do need to make sure that the guardrails are in place to make sure it’s done ethically and safely, importantly as well.

JAMES GLENDAY: Just on a guardrail, TikTok, another Chinese-owned app is banned from Government devices in Australia which probably tells us all we really need to know about what security agencies think of the app. Do you expect that this new chatbot, this new DeepSeek, will be subjected to similar rules pretty quickly?

AMANDA RISHWORTH: We get very good advice through our security agencies. I won’t predict what those agencies will do. But we have got incredibly good cyber capabilities that apply to Government but also support businesses in the community as well. So, we’ve taken cyber and the threat that cyber can have on our community very seriously which is why we’ve put together a cyber strategy. We have a whole range of things of security in place. So, look, I will wait. I have to be honest, I haven’t quite caught up with the revolution. I mean I haven’t downloaded any of these things yet. I’m still old school. I write my speeches myself.

JAMES GLENDAY: It’s not on your phone. I’m sure we’re going to hear more on this later. It is outside your portfolio, so that’s fair enough. Just finally Minister, this caught my eye and the election is not too far away. I read that in your South Australian electorate, your main opponent for the Liberal Party is going to be another Rishworth. Your cousin, in fact. How do you feel about that?

AMANDA RISHWORTH: Oh, look, I haven’t been in contact with my opponent. It’s a democracy. Anyone can run. So, you know. I’ll be putting what I stand for and my record forward at this election and I’m really proud to stand by the fact that I’ve fought very hard for my electorate every single day I’ve been the local member. I’ll be standing on that record and my commitment to my community.

JAMES GLENDAY: Are you sure? Are you worried at all, though? There’s going to be two Rishworths. Is there a risk of confusion? Could you bleed a few per cent of the vote? I know you’ve got a very safe seat.

AMANDA RISHWORTH: Oh, well, look, I’ll have to be honest. My community knows me. They know what I stand for. I’ve been out and about, and so I’ll be making sure that people know what I stand for. And I think, when they go into the ballot box, they’ll be making a considered choice and I hope they will vote for me.

JAMES GLENDAY: All right, Social Services Minister Amanda Rishworth, thank you for your time this morning and thank you for taking so many questions outside your portfolio area.

AMANDA RISHWORTH: Thank you.

MIL OSI News –

January 29, 2025

MIL-OSI Australia: 360,000 households across NSW notified of seat change ahead of 2025 federal election [29 January 2025]

Source: Australian Electoral Commission

Updated: 29 January 2025

The AEC is notifying more than 360,000 households in NSW that they are enrolled in a different electoral division after federal boundaries were redrawn in the state last year.

AEC State Manager for New South Wales Rebecca Main said that a federal election must be held sometime in the next four months.

“With a federal election coming it is important that voters are familiar with the seat they’ll be voting in for the House of Representatives,” Ms Main said.

“Redrawn boundaries mean a lot of people will be voting in different seats to last time, so we’re letting them know in a few ways including by sending letters and running ads on social media.”

“It is an automatic change made on their enrolment record but the action required by voters is simply to know what their seat is ahead of time so they can be prepared when they’re thinking about who they might vote for.”

Editor’s notes:

MIL OSI News –

January 29, 2025

MIL-OSI Australia: 200,000 Victorian households notified of seat change ahead of 2025 federal election [29 January 2025]

Source: Australian Electoral Commission

Updated: 29 January 2025

The AEC is notifying more than 200,000 households in Victoria that they are enrolled in a different electoral division after federal boundaries were redrawn in the state last year.

AEC State Manager for Victoria Nye Coffey said that a federal election must be held sometime in the next four months.

“With a federal election coming it is important that voters are familiar with the seat they’ll be voting in for the House of Representatives,” Mr Coffey said.

“Redrawn boundaries mean a lot of people will be voting in different seats to last time, so we’re letting them know in a few ways including by sending letters and running ads on social media.”

“It is an automatic change made on their enrolment record but the action required by voters is simply to know what their seat is ahead of time so they can be prepared when they’re thinking about who they might vote for.”

Editor’s notes:

MIL OSI News –

January 29, 2025

MIL-OSI Australia: 130,000 West Australian households notified of seat change ahead of 2025 federal election [29 January 2025]

Source: Australian Electoral Commission

Updated: 29 January 2025

NOTE: This media release relates to the 2025 federal election, not the WA state election in March.

The AEC is notifying more than 130,000 households in Western Australia that they are enrolled in a different electoral division after federal boundaries were redrawn in the state last year.

AEC State Manager for Western Australia Anita Ratcliffe said that a federal election must be held sometime in the next four months.

“With a federal election due by May it is important that voters are familiar with the seat they’ll be voting in for the House of Representatives,” Ms Ratcliffe said.

“It is particularly important here in Western Australia given there is also a state election occurring in March. It’s important that people know there are different seats for different elections.”

“Redrawn federal boundaries mean a lot of people will be voting in different seats than the last federal election in 2022, so we’re letting them know in a few ways including by sending letters and running ads on social media.”

“There will be an automatic change made on their enrolment record but the action required by voters is simply to know what their seat is ahead of time so they can be prepared when they’re thinking about who they might vote for.”

Editor’s notes:

MIL OSI News –

January 29, 2025

MIL-OSI: Finward Bancorp Announces Earnings for the Quarter and Twelve Months Ended December 31, 2024

Source: GlobeNewswire (MIL-OSI)

MUNSTER, Ind., Jan. 28, 2025 (GLOBE NEWSWIRE) — Finward Bancorp (Nasdaq: FNWD) (the “Bancorp”), the holding company for Peoples Bank (the “Bank”), today announced that net income available to common stockholders was $12.1 million, or $2.84 per diluted share, for the twelve months ended December 31, 2024, as compared to $8.4 million, or $1.96 per diluted share, for the corresponding prior year period. For the three months ended December 31, 2024, the Bancorp’s net income totaled $2.1 million, or $0.49 per diluted share, as compared to $606 thousand, or $0.14 per diluted share, for the three months ended September 30, 2024, and as compared to $1.5 million, or $0.35 per diluted share, for the three months ended December 31, 2023. Selected performance metrics are as follows for the periods presented:

Performance Ratios	Quarter ended,					Twelve months ended,
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
	December 31,	September 30,	June 30,	March 31,	December 31,	December 31,	December 31,
	2024	2024	2024	2024	2023	2024	2023
Return on equity	5.39%	1.60%	0.39%	24.97%	4.92%	8.06%	6.28%
Return on assets	0.41%	0.12%	0.03%	1.77%	0.29%	0.58%	0.40%
Tax adjusted net interest margin (Non-GAAP)	2.79%	2.66%	2.67%	2.57%	2.80%	2.68%	2.98%
Noninterest income / average assets	0.72%	0.55%	0.50%	2.57%	0.53%	1.09%	0.52%
Noninterest expense / average assets	2.75%	2.80%	2.79%	2.86%	2.60%	2.80%	2.65%
Efficiency ratio	87.20%	97.32%	98.56%	59.41%	87.49%	81.78%	84.58%

“The Bank ended the year with continued improvement in its overall positioning and increased momentum for 2025,” said Benjamin Bochnowski, chief executive officer. “We improved regulatory capital throughout the year through balance sheet management and earnings and had the benefit of one-time income including our sale leaseback transaction early in the year and a gain on a long-held tax credit investment this past quarter. Net interest margin improved throughout 2024 as expected, based on our earning asset position and reduced funding costs driven by recent Federal Reserve interest rate policy,” he continued. “The Bank charged off a small number of commercial business loans in the 4th quarter, and management will continue to actively manage credit quality,” he concluded.

Highlights of the current period include:

Net Interest Margin – The net interest margin for the three months ended December 31, 2024, was 2.65%, compared to 2.51% for the three months ended September 30, 2024. The tax-adjusted net interest margin (a non-GAAP measure) for the three months ended December 31, 2024, was 2.79%, compared to 2.66% for the three months ended September 30, 2024. The net interest margin for the twelve months ended December 31, 2024, was 2.54%, compared to 2.83% for the twelve months ended December 31, 2023. The tax-adjusted net interest margin (a non-GAAP measure) for the twelve months ended December 31, 2024, was 2.68%, compared to 2.98% for the twelve months ended December 31, 2023. The increased net interest margin for the three months ended December 31, 2024 compared to September 30, 2024 is primarily the result of increased yields on the Bank’s loan portfolio, combined with reduced deposit and borrowing costs as a result of the Federal Reserve’s continued reduction of federal funds rates during the quarter. See Table 1 at the end of this press release for a reconciliation of the tax-adjusted net interest margin to the GAAP net interest margin.

Funding – As of December 31, 2024, deposits totaled $1.8 billion, an increase of $11.8 million or 0.7%, compared to September 30, 2024. As of December 31, 2024, non-interest-bearing deposits totaled $263.3 million, a decrease of $21.8 million or 7.7%, compared to September 30, 2024. Core deposits totaled $1.2 billion at both December 31, 2024, and September 30, 2024. Core deposits include checking, savings, and money market accounts and represented 68.2% of the Bancorp’s total deposits at December 31, 2024. As of December 31, 2024, balances for certificates of deposit totaled $560.3 million, compared to $562.2 million on September 30, 2024, a decrease of $2.0 million or 0.4%. The increase in total portfolio deposits is primarily related to cyclical flows and continued adjustments to deposit pricing. The decrease in non-interest-bearing deposits is primarily attributable to regular outflow of business-related checking deposits at year-end which tend to return in subsequent periods. In addition, as of December 31, 2024, borrowings and repurchase agreements totaled $105.0 million, a decrease of $22.9 million or 17.9%, compared to September 30, 2024. The decrease in short-term borrowings was the result of cyclical inflows and outflows of interest-earning assets and interest-bearing liabilities.
As of December 31, 2024, 72% of our deposits are fully FDIC insured, and another 9% are further backed by the Indiana Public Deposit Insurance Fund. The Bancorp’s liquidity position remains strong with solid core deposit customer relationships, excess cash, debt securities, contractual loan repayments, and access to diversified borrowing sources. As of December 31, 2024, the Bancorp had available liquidity of $687 million including borrowing capacity from the FHLB and Federal Reserve facilities.

Securities Portfolio – Securities available for sale balances decreased by $16.5 million to $333.6 million as of December 31, 2024, compared to $350.0 million as of September 30, 2024. The decrease in securities available for sale was due to a combination of portfolio runoff and an increase of accumulated other comprehensive loss (“AOCL”). AOCL was $58.1 million as of December 31, 2024, compared to $48.2 million on September 30, 2024, a decline of $9.8 million, or 20.4%. The yield on the securities portfolio decreased to 2.34% for the three months ended December 31, 2024, down from 2.37% for the three months ended September 30, 2024. Management did not execute any securities sale transactions during the quarter but will continue to monitor the securities portfolio for additional restructuring opportunities.

Lending – The Bank’s aggregate loan portfolio totaled $1.5 billion on both December 31, 2024, and September 30, 2024. During the three months ended December 31, 2024, the Bank originated $59.2 million in new commercial loans, compared to $70.4 million during the three months ended September 30, 2024, and $47.5 million during the three months ended December 31, 2023. The loan portfolio represents 79.3% of earning assets and is comprised of 63.0% commercial-related credits. At December 31, 2024, the Bancorp’s portfolio loan balances in commercial real estate owner occupied properties totaled $246.6 million or 16.3% of total loan balances and commercial real estate non-owner-occupied properties totaled $305.1 million or 20.2% of total loan balances. Of the $305.1 million in commercial real estate non-owner-occupied properties balances, loans collateralized by office buildings represented $38.5 million or 2.5% of total loan balances.

Gain on Sale of Loans – Gains from the sale of loans totaled $1.1 million for both the twelve months ended December 31, 2024, and 2023. During the twelve months ended December 31, 2024, the Bank originated $36.8 million in new fixed rate mortgage loans for sale, compared to $38.0 million during the twelve months ended December 31, 2023. During the twelve months ended December 31, 2024, the Bank originated $27.4 million in new 1-4 family loans retained in its portfolio, compared to $41.6 million during the twelve months ended December 31, 2023. Total 1-4 family originations for the quarter ended December 31, 2024, totaled $25.4 million, an increase of $5.3 million compared to $20.1 million for the quarter ended September 30, 2024. The retained loans are primarily construction loans and adjustable-rate loans with a fixed-rate period of 7 years or less. The Bank continues to sell longer-duration fixed rate mortgages into the secondary market.

Gain on Tax Credit Investment – During the three months ended December 31, 2024, the Bank successfully concluded a long term, non-controlling interest in a partnership established to facilitate tax credit investments. Upon the termination of the partnership, the Bank recognized a one-time gain of $1.2 million recognized through noninterest income. The proceeds from the dissolution of this tax credit investment will contribute to the Bank’s financial position, thereby supporting ongoing strategic initiatives and operational priorities.

Asset Quality – At December 31, 2024, non-performing loans totaled $13.7 million, compared to $13.8 million at September 30, 2024, a decrease of $68 thousand or 0.5%. The Bank’s ratio of non-performing loans to total loans was 0.91% at December 31, 2024, compared to 0.92% at September 30, 2024. The Bank’s ratio of non-performing assets to total assets was 0.74% at December 31, 2024, compared to 0.73% at September 30, 2024. Management maintains a vigilant oversight of nonperforming loans through proactive relationship management.
The allowance for credit losses (ACL) on loans totaled $16.9 million at December 31, 2024, or 1.12% of total loans receivable, compared to $18.5 million at September 30, 2024, or 1.23% of total loans receivable, a decrease of $1.6 million or 8.7% and is considered adequate by management. The Bank’s unused commitment reserve, included in other liabilities, totaled $2.7 million at December 31, 2024, compared to $3.9 million at September 30, 2024, a decrease of $1.2 million or 30%.

For the quarter ended December 31, 2024, the Bank recorded a net negative provision for credit loss expense totaling $579 thousand based on a decline in individually assessed loans balances, historical loss rate updates, migration of loan and unfunded commitment segment balances, and other factors within the Bank’s ACL modeling. The fourth quarter’s provision expense consisted of a $597 thousand provision for credit losses on loans, and a $1.2 million reversal of provision for credit losses on unused commitments. The decrease in the Bank’s unused commitment reserve was primarily due to reduced unused commitment balances and other factors. For the quarter ended December 31, 2024, net charge-offs, totaled $2.2 million. Most of these charge-offs involved a small number of commercial or multifamily-related loans which were previously monitored and had specific allocations toward individual impairment or contributed to higher expected loss rates within the Bank’s prior ACL balance. For the quarter ended September 30, 2024, the Bank recorded no provision expense and recoveries, net of charge-offs, totaled $186 thousand. The ACL as a percentage of non-performing loans, or coverage ratio, was 123.1% at December 31, 2024 compared to 134.1% at September 30, 2024.

Operating Expenses – Non-interest expense as a percentage of average assets was 2.75% for the quarter ended December 31, 2024, as compared to 2.80% for the quarter ended September 30, 2024. Decreases in non-interest expenses quarter over quarter were primarily attributable to reduced compensation and benefit expenses, and lower occupancy and equipment expenses. The Bank remains focused on identifying additional operating efficiencies and third-party expense reductions. Compensation and benefits expense is up 0.3% for the twelve months ended December 31, 2024, compared to December 31, 2023.

Capital Adequacy – As of December 31, 2024, the Bank’s tier 1 capital to adjusted average assets ratio was 8.46%, an improvement of 0.08% compared to 8.38% at September 30, 2024. The Bank’s capital continues to exceed all applicable regulatory capital requirements as set forth in 12 C.F.R. § 324. The Bancorp’s tangible book value per share was $29.48 at December 31, 2024, down from $31.28 as of September 30, 2024 (a non-GAAP measure). Tangible common equity to total assets was 6.17% at December 31, 2024, down from 6.51% as of September 30, 2024 (a non-GAAP measure). Excluding accumulated other comprehensive losses, tangible book value per share increased to $42.94 as of December 31, 2024, from $42.47 as of September 30, 2024 (a non-GAAP measure). See Table 1 at the end of this press release for a reconciliation of the tangible book value per share, tangible book value per share adjusted for other accumulated comprehensive losses, tangible common equity as a percentage of total assets, and tangible common equity as a percentage of total assets adjusted for accumulated other comprehensive losses to the related GAAP ratios.

Disclosures Regarding Non-GAAP Financial Measures
Reported amounts are presented in accordance with GAAP. In this press release, the Bancorp also provides certain financial measures identified as non-GAAP. The Bancorp’s management believes that the non-GAAP information, which consists of tangible common equity, tangible common equity adjusted for accumulated other comprehensive losses, tangible book value per share, tangible book value per share adjusted for accumulated other comprehensive losses, tangible common equity/total assets, tax-adjusted net interest margin, and efficiency ratio, which can vary from period to period, provides a better comparison of period to period operating performance. The adjusted net interest income and tax-adjusted net interest margin measures recognize the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes. Additionally, the Bancorp 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 Table 1 – Reconciliation of Non-GAAP Financial Measures at the end of this document for a reconciliation of the non-GAAP measures identified herein and their most comparable GAAP measures.

About Finward Bancorp
Finward Bancorp is a locally managed and independent financial holding company headquartered in Munster, Indiana, whose activities are primarily limited to holding the stock of Peoples Bank. Peoples Bank provides a wide range of personal, business, electronic and wealth management financial services from its 26 locations in Lake and Porter Counties in Northwest Indiana and Chicagoland. Finward Bancorp’s common stock is quoted on The NASDAQ Stock Market, LLC under the symbol FNWD. The website ibankpeoples.com provides information on Peoples Bank’s products and services, and Finward Bancorp’s investor relations.

Forward Looking Statements
This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of the Bancorp. For these statements, the Bancorp claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this communication should be considered in conjunction with the other information available about the Bancorp, including the information in the filings the Bancorp makes with the SEC. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Forward-looking statements are typically identified by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: the Bank’s ability to demonstrate compliance with the terms of the previously disclosed consent order and memorandum of understanding entered into between the Bank and the Federal Deposit Insurance Corporation (“FDIC”) and Indiana Department of Financial Institutions (“DFI”), or to demonstrate compliance to the satisfaction of the FDIC and/or DFI within prescribed time frames; the Bank’s agreement under the memorandum of understanding to refrain from paying cash dividends without prior regulatory approval; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates, market liquidity, and capital markets, as well as the magnitude of such changes, which may reduce net interest margins; the aggregate effects of inflation experienced in recent years; further deterioration in the market value of securities held in the Bancorp’s investment securities portfolio, whether as a result of macroeconomic factors or otherwise; customer acceptance of the Bancorp’s products and services; customer borrowing, repayment, investment, and deposit practices; customer disintermediation; the introduction, withdrawal, success, and timing of business initiatives; competitive conditions; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; economic conditions; and the impact, extent, and timing of technological changes, capital management activities, regulatory actions by the Federal Deposit Insurance Corporation and Indiana Department of Financial Institutions, and other actions of the Federal Reserve Board and legislative and regulatory actions and reforms. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Bancorp’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s Internet website (www.sec.gov). All subsequent written and oral forward-looking statements concerning matters attributable to the Bancorp or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Except as required by law, The Bancorp does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statement is made.

In addition to the above factors, we also caution that the actual amounts and timing of any future common stock dividends or share repurchases will be subject to various factors, including our capital position, financial performance, capital impacts of strategic initiatives, market conditions, and regulatory and accounting considerations, as well as any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will repurchase shares or pay any dividends to holders of our common stock, or as to the amount of any such repurchases or dividends.

Finward Bancorp
Quarterly Financial Report

Performance Ratios	Quarter ended,															Twelve months ended,
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
		2024			2024			2024			2024			2023			2024			2023
Return on equity		5.39	%		1.60	%		0.39	%		24.97	%		4.92	%		8.06	%		6.28	%
Return on assets		0.41	%		0.12	%		0.03	%		1.77	%		0.29	%		0.58	%		0.40	%
Yield on loans		5.27	%		5.22	%		5.11	%		5.02	%		5.09	%		5.15	%		4.92	%
Yield on security investments		2.34	%		2.37	%		2.43	%		2.37	%		2.57	%		2.38	%		2.43	%
Total yield on earning assets		4.74	%		4.70	%		4.64	%		4.52	%		4.64	%		4.67	%		4.45	%
Cost of interest-bearing deposits		2.41	%		2.47	%		2.37	%		2.36	%		2.22	%		2.40	%		1.74	%
Cost of repurchase agreements		3.65	%		4.04	%		3.86	%		3.88	%		3.78	%		3.85	%		3.64	%
Cost of borrowed funds		4.31	%		4.56	%		4.95	%		4.62	%		4.41	%		4.62	%		4.55	%
Total cost of interest-bearing liabilities		2.53	%		2.63	%		2.55	%		2.53	%		2.38	%		2.56	%		1.96	%
Tax adjusted net interest margin (Non-GAAP)		2.79	%		2.66	%		2.67	%		2.57	%		2.80	%		2.68	%		2.98	%
Noninterest income / average assets		0.72	%		0.55	%		0.50	%		2.57	%		0.53	%		1.09	%		0.52	%
Noninterest expense / average assets		2.75	%		2.80	%		2.79	%		2.86	%		2.60	%		2.80	%		2.65	%
Net noninterest margin / average assets		-2.03	%		-2.24	%		-2.29	%		-0.29	%		-2.08	%		-1.71	%		-2.14	%
Efficiency ratio		87.20	%		97.32	%		98.56	%		59.41	%		87.49	%		81.78	%		84.58	%
Effective tax rate		21.30	%		-51.88	%		-6.72	%		9.48	%		-30.85	%		9.85	%		-4.16	%

Non-performing assets to total assets		0.74	%		0.73	%		0.61	%		0.64	%		0.61	%		0.74	%		0.61	%
Non-performing loans to total loans		0.91	%		0.92	%		0.75	%		0.78	%		0.76	%		0.91	%		0.76	%
Allowance for credit losses to non-performing loans		123.10	%		134.12	%		161.17	%		159.12	%		163.90	%		123.10	%		163.90	%
Allowance for credit losses to loans receivable		1.12	%		1.23	%		1.22	%		1.25	%		1.24	%		1.12	%		1.24	%
Foreclosed real estate to total assets		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%

Basic earnings per share	$	0.49		$	0.14		$	0.03		$	2.18		$	0.36		$	2.85		$	1.96
Diluted earnings per share	$	0.49		$	0.14		$	0.03		$	2.17		$	0.35		$	2.84		$	1.96
Stockholders’ equity / total assets		7.35	%		7.69	%		7.16	%		7.32	%		6.99	%		7.35	%		6.99	%
Book value per share	$	35.10		$	36.99		$	34.45		$	35.17		$	34.28		$	35.10		$	34.28
Closing stock price	$	28.11		$	31.98		$	24.52		$	24.60		$	25.24		$	28.11		$	25.24
Price to earnings per share ratio		14.25			56.21			182.60			2.82			17.77			9.87			12.87
Dividends declared per common share	$	0.12		$	0.12		$	0.12		$	0.12		$	0.12		$	0.48		$	1.05

Bank Level Capital
Common equity tier 1 capital to risk-weighted assets		11.32	%		11.10	%		10.94	%		10.89	%		10.43	%		11.32	%		10.43	%
Tier 1 capital to risk-weighted assets		11.32	%		11.10	%		10.94	%		10.89	%		10.43	%		11.32	%		10.43	%
Total capital to risk-weighted assets		12.26	%		12.14	%		11.95	%		11.92	%		11.36	%		12.26	%		11.36	%
Tier 1 capital to adjusted average assets		8.46	%		8.38	%		8.32	%		8.24	%		7.78	%		8.46	%		7.78	%


Non-GAAP Performance Ratios	Quarter ended,															Twelve months ended,
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
		2024			2024			2024			2024			2023			2024			2023
Net interest margin – tax equivalent		2.79	%		2.66	%		2.67	%		2.57	%		2.80	%		2.68	%		2.98	%
Tangible book value per diluted share	$	29.48		$	31.28		$	28.67		$	29.30		$	28.31		$	29.48		$	28.31
Tangible book value per diluted share adjusted for AOCL	$	42.94		$	42.47		$	42.33		$	42.36		$	40.31		$	42.94		$	40.31
Tangible common equity to total assets		6.17	%		6.51	%		5.95	%		6.09	%		5.77	%		6.17	%		5.77	%
Tangible common equity to total assets adjusted for AOCL		8.99	%		8.83	%		8.79	%		8.81	%		8.22	%		8.99	%		8.22	%

(1) Tax adjusted net interest margin represents a non-GAAP financial measure. See the non-GAAP reconciliation table section captioned “Non-GAAP Financial Measures” for further disclosure regarding non-GAAP financial measures

Quarter Ended
(Dollars in thousands)	Average Balances, Interest, and Rates
(unaudited)	December 31, 2024						September 30, 2024
	Average Balance			Interest		Rate (%)	Average Balance			Interest		Rate (%)
ASSETS
Interest bearing deposits in other financial institutions	$	50,271		$	650	5.17	$	54,084		$	665	4.92
Federal funds sold		891			9	4.04		682			9	5.28
Securities available-for-sale		343,411			2,011	2.34		342,451			2,031	2.37
Loans receivable		1,504,233			19,802	5.27		1,506,967			19,660	5.22
Federal Home Loan Bank stock		6,547			123	7.51		6,547			107	6.54
Total interest earning assets		1,905,353		$	22,595	4.74		1,910,731		$	22,472	4.70
Cash and non-interest bearing deposits in other financial institutions		27,360						22,478
Allowance for credit losses		(18,110	)					(18,482	)
Other noninterest bearing assets		154,707						155,997
Total assets	$	2,069,310					$	2,070,724

LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits	$	1,465,198		$	8,811	2.41	$	1,451,414		$	8,946	2.47
Repurchase agreements		43,372			396	3.65		43,074			435	4.04
Borrowed funds		72,536			781	4.31		95,224			1,085	4.56
Total interest bearing liabilities		1,581,106		$	9,988	2.53		1,589,712		$	10,466	2.63
Non-interest bearing deposits		289,467						287,507
Other noninterest bearing liabilities		42,944						41,696
Total liabilities		1,913,517						1,918,915
Total stockholders’ equity		155,793						151,809
Total liabilities and stockholders’ equity	$	2,069,310					$	2,070,724

Net interest income				$	12,607					$	12,006
Return on average assets		0.41	%					0.12	%
Return on average equity		5.39	%					1.60	%
Net interest margin (average earning assets)		2.65	%					2.51	%
Net interest margin (average earning assets) – tax equivalent		2.79	%					2.66	%
Net interest spread		2.21	%					2.07	%
Ratio of interest-earning assets to interest-bearing liabilities	1.21		x				1.20		x


Year-to-Date
(Dollars in thousands)	Average Balances, Interest, and Rates
(unaudited)	December 31, 2024						September 30, 2024
	Average Balance			Interest		Rate (%)	Average Balance			Interest		Rate (%)
ASSETS				`
Interest bearing deposits in other financial institutions	$	51,202		$	2,967	5.79	$	61,107		$	2,317	5.06
Federal funds sold		912			38	4.17		919			29	4.21
Securities available-for-sale		347,048			8,250	2.38		348,269			6,239	2.39
Loans receivable		1,504,206			77,515	5.15		1,504,197			57,713	5.12
Federal Home Loan Bank stock		6,547			408	6.23		6,547			285	5.80
Total interest earning assets		1,909,915		$	89,178	4.67		1,921,039		$	66,583	4.62
Cash and non-interest bearing deposits in other financial institutions		28,730						19,598
Allowance for credit losses		(18,529	)					(18,670	)
Other noninterest bearing assets		155,251						155,433
Total assets	$	2,075,367					$	2,077,400

LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits	$	1,462,039		$	35,161	2.40	$	1,464,682		$	26,350	2.40
Repurchase agreements		41,506			1,600	3.85		40,879			1,204	3.93
Borrowed funds		85,927			3,970	4.62		90,423			3,189	4.70
Total interest bearing liabilities		1,589,472		$	40,731	2.56		1,595,984		$	30,743	2.57
Non-interest bearing deposits		293,508						291,161
Other noninterest bearing liabilities		41,893						41,540
Total liabilities		1,924,873						1,928,685
Total stockholders’ equity		150,494						148,715
Total liabilities and stockholders’ equity	$	2,075,367					$	2,077,400

Net interest income				$	48,447					$	35,840
Return on average assets		0.58	%					0.64	%
Return on average equity		8.06	%					4.50	%
Net interest margin (average earning assets)		2.54	%					2.49	%
Net interest margin (average earning assets) – tax equivalent		2.68	%					2.63	%
Net interest spread		2.11	%					2.05	%
Ratio of interest-earning assets to interest-bearing liabilities	1.20		x				1.20		x

Finward Bancorp
Quarterly Financial Report

Balance Sheet Data
(Dollars in thousands)	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
	December 31,			September 30,			June 30,			March 31,			December 31,
		2024			2024			2024			2024			2023
ASSETS

Cash and non-interest bearing deposits in other financial institutions	$	17,883		$	23,071		$	19,061		$	16,418		$	17,942
Interest bearing deposits in other financial institutions		52,047			48,025			63,439			54,755			67,647
Federal funds sold		654			553			707			607			419

Total cash and cash equivalents		70,584			71,649			83,207			71,780			86,008

Securities available-for-sale		333,554			350,027			339,585			346,233			371,374
Loans held-for-sale		1,253			2,567			1,185			667			340
Loans receivable, net of deferred fees and costs		1,508,976			1,508,242			1,506,398			1,508,251			1,512,595
Less: allowance for credit losses		(16,911	)		(18,516	)		(18,330	)		(18,805	)		(18,768	)
Net loans receivable		1,492,065			1,489,726			1,488,068			1,489,446			1,493,827
Federal Home Loan Bank stock		6,547			6,547			6,547			6,547			6,547
Accrued interest receivable		7,721			7,442			7,695			7,583			8,045
Premises and equipment		47,259			47,912			48,696			47,795			38,436
Foreclosed real estate		–			–			–			71			71
Cash value of bank owned life insurance		33,514			33,312			33,107			32,895			32,702
Goodwill		22,395			22,395			22,395			22,395			22,395
Other intangible assets		1,860			2,203			2,555			2,911			3,272
Other assets		43,947			40,882			44,027			43,459			45,262

Total assets	$	2,060,699		$	2,074,662		$	2,077,067		$	2,071,782		$	2,108,279

LIABILITIES AND STOCKHOLDERS’ EQUITY

Deposits:
Non-interest bearing	$	263,324		$	285,157		$	286,784		$	296,959		$	295,594
Interest bearing		1,497,242			1,463,653			1,469,970			1,450,519			1,517,827
Total		1,760,566			1,748,810			1,756,754			1,747,478			1,813,421
Repurchase agreements		40,116			43,038			42,973			41,137			38,124
Borrowed funds		65,000			85,000			85,000			90,000			80,000
Accrued expenses and other liabilities		43,603			38,259			43,709			41,586			29,389

Total liabilities		1,909,285			1,915,107			1,928,436			1,920,201			1,960,934

Commitments and contingencies

Stockholders’ Equity:


Preferred stock, no par or stated value; 10,000,000 shares authorized, none outstanding		–			–			–			–			–
Common stock, no par or stated value; 10,000,000 shares authorized; shares issued and outstanding: December 31, 2024 – 4,313,698 December 31, 2023 – 4,298,773		–			–			–			–			–


Additional paid-in capital		70,034			69,916			69,778			69,727			69,555
Accumulated other comprehensive loss		(58,084	)		(48,241	)		(58,939	)		(56,313	)		(51,613	)
Retained earnings		139,464			137,880			137,792			138,167			129,403

Total stockholders’ equity		151,414			159,555			148,631			151,581			147,345

Total liabilities and stockholders’ equity	$	2,060,699		$	2,074,662		$	2,077,067		$	2,071,782		$	2,108,279

Finward Bancorp
Quarterly Financial Report

Consolidated Statements of Income	Quarter Ended,															Twelve months ended,
(Dollars in thousands)	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
		2024			2024			2024			2024			2023			2024			2023
Interest income:
Loans	$	19,802		$	19,660		$	19,174		$	18,879		$	19,281		$	77,515		$	74,762
Securities & short-term investments		2,793			2,812			2,953			3,105			2,975			11,663			11,021
Total interest income		22,595			22,472			22,127			21,984			22,256			89,178			85,783
Interest expense:
Deposits		8,812			8,946			8,610			8,794			8,180			35,162			25,438
Borrowings		1,176			1,520			1,463			1,410			1,361			5,569			5,790
Total interest expense		9,988			10,466			10,073			10,204			9,541			40,731			31,228
Net interest income		12,607			12,006			12,054			11,780			12,715			48,447			54,555
Provision/(benefit) for credit losses		(579	)		–			76			–			779			(503	)		2,025
Net interest income after provision for credit losses		13,186			12,006			11,978			11,780			11,936			48,950			52,530
Noninterest income:
Fees and service charges		1,439			1,463			1,257			1,153			1,507			5,312			6,024
Wealth management operations		728			731			763			633			672			2,855			2,484
Gain on tax credit investment		1,236			–			–			–			–			1,236			–
Gain on sale of loans held-for-sale, net		328			338			320			152			352			1,138			1,081
Increase in cash value of bank owned life insurance		202			205			212			193			193			812			766
Gain (Loss) on real estate		(212	)		–			15			11,858			–			11,661			–
Loss on sale of securities, net		–			–			–			(531	)		–			(531	)		(48	)
Other		11			130			6			17			11			164			439
Total noninterest income		3,732			2,867			2,573			13,475			2,735			22,647			10,746
Noninterest expense:
Compensation and benefits		6,628			6,963			7,037			7,109			6,290			27,737			27,655
Occupancy and equipment		2,045			2,181			2,116			1,908			1,484			8,250			6,382
Data processing		1,202			1,165			1,135			1,170			1,269			4,672			4,734
Federal deposit insurance premiums		457			435			397			501			492			1,790			2,003
Marketing		220			209			212			158			191			799			840
Professional and Outside Services		1,341			1,251			1,257			1,557			1,420			5,406			4,279
Technology		509			602			507			625			374			2,243			1,654
Other		1,845			1,668			1,756			1,976			1,997			7,245			7,684
Total noninterest expense		14,247			14,474			14,417			15,004			13,517			58,142			55,231
Income before income taxes		2,671			399			134			10,251			1,154			13,455			8,045
Income tax expenses (benefit)		569			(207	)		(9	)		972			(356	)		1,325			(335	)
Net income	$	2,102		$	606		$	143		$	9,279		$	1,510		$	12,130		$	8,380

Earnings per common share:
Basic	$	0.49		$	0.14		$	0.03		$	2.18		$	0.36		$	2.85		$	1.96
Diluted	$	0.49		$	0.14		$	0.03		$	2.17		$	0.35		$	2.84		$	1.96

Finward Bancorp
Quarterly Financial Report

Asset Quality			(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
(Dollars in thousands)			December 31,		September 30,		June 30,		March 31,		December 31,
				2024		2024		2024		2024		2023
Nonaccruing loans			$	13,738	$	13,806	$	11,079	$	11,603	$	9,608
Accruing loans delinquent more than 90 days				–		–		294		215		1,843
Securities in non-accrual				1,419		1,440		1,371		1,442		1,357
Foreclosed real estate				–		–		–		71		71
	Total nonperforming assets		$	15,157	$	15,246	$	12,744	$	13,331	$	12,879

Allowance for credit losses (ACL):
	ACL specific allowances for collateral dependent loans		$	284	$	1,821	$	1,327	$	1,455	$	906
	ACL general allowances for loan portfolio			16,627		16,695		17,003		17,351		17,862
		Total ACL	$	16,911	$	18,516	$	18,330	$	18,806	$	18,768

Bank Level Capital					Minimum Required To Be
(Dollars in thousands)			Minimum Required For		Well Capitalized Under Prompt
	Actual		Capital Adequacy Purposes		Corrective Action Regulations
December 31, 2024	Amount	Ratio	Amount	Ratio	Amount	Ratio
Common equity tier 1 capital to risk-weighted assets	$179,625	11.32%	$71,415	4.50%	$103,154	6.50%
Tier 1 capital to risk-weighted assets	$179,625	11.32%	$95,219	6.00%	$126,959	8.00%
Total capital to risk-weighted assets	$194,500	12.26%	$126,959	8.00%	$158,699	10.00%
Tier 1 capital to adjusted average assets	$179,625	8.46%	$84,854	4.00%	$106,068	5.00%

Table 1 – Reconciliation of the Non-GAAP Performance Measures

(Dollars in thousands)	Quarter Ended,															Twelve months ended,
(unaudited)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Calculation of tangible common equity
Total stockholder’s equity	$	151,414		$	159,555		$	148,631		$	151,581		$	147,345		$	151,414		$	147,345
Goodwill		(22,395	)		(22,395	)		(22,395	)		(22,395	)		(22,395	)		(22,395	)		(22,395	)
Other intangibles		(1,860	)		(2,203	)		(2,555	)		(2,911	)		(3,272	)		(1,860	)		(3,272	)
Tangible common equity	$	127,159		$	134,957		$	123,681		$	126,275		$	121,678		$	127,159		$	121,678

Calculation of tangible common equity adjusted for accumulated other comprehensive loss
Tangible common equity	$	127,159		$	134,957		$	123,681		$	126,275		$	121,678		$	127,159		$	121,678
Accumulated other comprehensive loss		58,084			48,241			58,939			56,313			51,613			58,084			51,613
Tangible common equity adjusted for accumulated other comprehensive loss	$	185,243		$	183,198		$	182,620		$	182,588		$	173,291		$	185,243		$	173,291

Calculation of tangible book value per share
Tangible common equity	$	127,159		$	134,957		$	123,681		$	126,275		$	121,678		$	127,159		$	121,678
Shares outstanding		4,313,698			4,313,940			4,313,940			4,310,251			4,298,773			4,313,698			4,298,773
Tangible book value per diluted share	$	29.48		$	31.28		$	28.67		$	29.30		$	28.31		$	29.48		$	28.31

Calculation of tangible book value per diluted share adjusted for accumulated other comprehensive loss
Tangible common equity adjusted for accumulated other comprehensive loss	$	185,243		$	183,198		$	182,620		$	182,588		$	173,291		$	185,243		$	173,291
Diluted average common shares outstanding		4,313,698			4,313,940			4,313,940			4,310,251			4,298,773			4,313,698			4,298,773
Tangible book value per diluted share adjusted for accumulated other comprehensive loss	$	42.94		$	42.47		$	42.33		$	42.36		$	40.31		$	42.94		$	40.31

Calculation of tangible common equity to total assets
Tangible common equity	$	127,159		$	134,957		$	123,681		$	126,275		$	121,678		$	127,159		$	121,678
Total assets		2,060,699			2,074,662			2,077,067			2,071,782			2,108,279			2,060,699			2,108,279
Tangible common equity to total assets		6.17	%		6.51	%		5.95	%		6.09	%		5.77	%		6.17	%		5.77	%

Calculation of tangible common equity to total assets adjusted for accumulated other comprehensive loss
Tangible common equity adjusted for accumulated other comprehensive loss	$	185,243		$	183,198		$	182,620		$	182,588		$	173,291		$	185,243		$	173,291
Total assets		2,060,699			2,074,662			2,077,067			2,071,782			2,108,279			2,060,699			2,108,279
Tangible common equity to total assets adjusted for accumulated other comprehensive loss		8.99	%		8.83	%		8.79	%		8.81	%		8.22	%		8.99	%		8.22	%

Calculation of tax adjusted net interest margin
Net interest income	$	12,607		$	12,006		$	12,054		$	11,780		$	12,715		$	48,447		$	54,555
Tax adjusted interest on securities and loans		674			678			677			699			722			2,728			2,956
Adjusted net interest income	$	13,281			12,684			12,731			12,749		$	13,437		$	51,175		$	57,511
Total average earning assets		1,905,353			1,910,731			1,906,998			1,945,501			1,920,127			1,909,915			1,927,455
Tax adjusted net interest margin		2.79	%		2.66	%		2.67	%		2.57	%		2.80	%		2.68	%		2.98	%

Efficiency ratio
Total non-interest expense	$	14,247		$	14,474		$	14,417		$	15,004		$	13,517		$	58,142		$	55,232
Total revenue		16,339			14,873			14,627			25,255			15,450			71,094			65,301
Efficiency ratio		87.20	%		97.32	%		98.56	%		59.41	%		87.49	%		81.78	%		84.58	%

FOR FURTHER INFORMATION
CONTACT SHAREHOLDER SERVICES
(219) 853-7575

The MIL Network –

January 29, 2025

MIL-OSI New Zealand: Health – ProCare reflects on progress made towards equitable health outcomes by committing to Te Tiriti o Waitangi Principles

Source: ProCare

Over the last four years, primary healthcare provider, ProCare, has made significant progress on embedding Te Tiriti o Waitangi across all aspects of the business, but acknowledges there is still more to do.

In 2021, ProCare made a commitment to align to Te Tiriti o Waitangi principles and deliver key actions to help improve equity in healthcare in its ‘ProEquity’ strategy. This strategy came after extensive engagement with staff and wider stakeholders on steps ProCare could take towards achieving more equitable health outcomes.

Some of the key achievements during the last few years were:

Significant improvements in the employee survey in relation to understanding Te Tiriti, cultural responsiveness, and inclusivity
Appointing Ngāti Whātua Ōrākei Tangata Whenua Directors
Establishing formal partnerships with Māori-led community organisations like Smear Your Mea and Taumata Koorero
Launching outreach services to improve access to healthcare services for Māori and Pacific communities
Developing cultural training programmes and mobile apps to support cultural competency.

Bindi Norwell, ProCare Group CEO, says: “Embedding the principles of Te Tiriti o Waitangi adopted from the Ministry of Health – Whakamaua Māori Health Action Plan, enabled us to have a core focus on equity across our business over the last four years, and we are proud of what we have achieved so far. Feedback from our staff on the importance of Te Tiriti has consistently trended upwards, so it’s great to see the hard work by the team being recognised.

“We’ve recently conducted an audit of the strategy, reflecting on where we were at in 2021, what we have achieved so far, and areas of opportunity going forward. This has been great as we enter 2025, ensuring we bring all teams back to alignment and focus on a core direction,” says Norwell.

Mihi Blair, Kaiwhakahaere Hauora Māori, Mana Taurite (GM of Māori Health and Equity), says: “Our achievements as a business have been a result of shared commitment and collective effort across ProCare, as well as building authentic and collaborative relationships with not only Māori, but Pacific, and the diverse population groups that make up Tāmaki Makaurau.

“Utilising Te Tiriti principles, we have continued to build on our achievements, through actions like appointing Marama Royal, Chair of Ngāti Whātua Ōrākei Trust, to the ProCare Co-operative Board, welcoming Dr Minnie Strickland as a Pacific Representative on our Clinical Quality Committee, developing resources such cultural apps Ihi and Tala Moana, and giving our staff and practices access to our Te Pūheke training programme, endorsed by the Royal College of General Practice, to support them with cultural responsiveness,” says Blair.

“Our actions are a great step forward for ProCare, but we recognise there is still work to. This includes looking into how we can embed equity into all facets of the business. This could be advocating for funding and developing frameworks that align with Te Tiriti, co-designing services with the community, exploring more partnerships, embedding Te Tiriti as a key part of any policy and performance, and more,” concludes Blair.

To find out more about ProCare’s Equity Journey – Te Amorangi, read this infographic: https://www.procare.co.nz/media/3894/te-amorangi-procares-equity-journey.pdf

About ProCare
ProCare is a leading healthcare provider that aims to deliver the most progressive, pro-active and equitable health and wellbeing services in Aotearoa. We do this through our clinical support services, mental health and wellness services, virtual/tele health, mobile health, smoking cessation and by taking a population health and equity approach to our mahi. As New Zealand’s largest Primary Health Organisation, we represent a network of general practice teams and healthcare professionals who provide care to nearly 700,000 patients across Auckland. These practices serve the largest Pacific and South Asian populations enrolled in general practice and the largest Māori population in Tāmaki Makaurau.

For more information go to www.procare.co.nz

MIL OSI New Zealand News –

January 29, 2025

MIL-OSI USA: Washington joins multistate suit over federal financial assistance freeze

Source: Washington State News

OLYMPIA — Washington state today joined 21 other states suing the Trump administration over its illegal freeze of all federal financial assistance, which directly threatens the health and safety of Washingtonians reliant on a variety of federally funded programs by potentially withholding billions in funds from the state.

The direction issued Monday by the federal Office of Management and Budget to pause financial assistance programs could impact childcare and special education grants, highway planning and construction dollars, energy cost assistance rebates, substance abuse treatment, and nursing care for veterans, among other programs.

The White House says the pause is to ensure the funds are “advancing Administration priorities.”

“The White House justifies this damaging move with culture war alarmism, but in reality they’re robbing governments and service providers of funds that keep people safe and serve urgent needs in all of our communities,” Attorney General Nick Brown said. “People’s jobs are at stake. Services for veterans are at risk. Health care and education would be taken from children. Programs that support crime victims could vanish. These examples are the tip of the iceberg.”

If funding is cut off for these programs, even temporarily, it would interfere with critical state programs, drastically worsen Washington’s budget shortfall, and make it nearly impossible for state agencies and the Legislature to intelligently prioritize budgeting needs.

“Presidents have significant powers and elections have consequences,” Gov. Bob Ferguson said. “However, President Trump’s refusal or inability to advance his priorities in a lawful and constitutional manner is creating needless and cruel chaos. We’re confident that the courts will, once again, determine that he is exceeding his authority.”

The administration’s memo does not explain any legal authority for this action, because they have none. The lawsuit, filed in the U.S. District Court for Rhode Island, lays out the various ways the Trump administration is breaking federal law by freezing a broad swath of financial assistance programs beyond the scope of its authority while also usurping the role of Congress.

The complaint seeks to enjoin the Trump administration from enforcing or implementing the memo and requests a judicial declaration that the memo is unlawful.

Read the filing here.

This lawsuit is led by the attorneys general of New York, California, Illinois, Massachusetts, New Jersey and Rhode Island. Joining the lawsuit are the attorneys general of Arizona, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Vermont, Wisconsin, and the District of Columbia.

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Media Contact:

Email: press@atg.wa.gov

Phone: (360) 753-2727

General contacts: Click here

Media Resource Guide & Attorney General’s Office FAQ

MIL OSI USA News –

January 29, 2025

MIL-OSI Security: Man with History of Violence Sent to Federal Prison for Possessing Sawed-Off Shotgun

Source: Office of United States Attorneys

A man with a history of violence was sentenced today, to 10 years in federal prison.

Conrad Lyons, age 36, from Sioux City, received the prison term after an August 26, 2024, guilty plea to one count of possession of a firearm by a felon and one count of receipt and possession of a National Firearms Destructive Device not registered to the possessor, i.e., a sawed-off shotgun.

Evidence in this case revealed that on March 23, 2024, at approximately 1:00 a.m., law enforcement received a report of an altercation in an apartment in Sioux City, Iowa, involving Lyons (who is a felon) and several other individuals. Reports indicated the altercation involved a large machete-style knife, and that Lyons had a “sawed-off shotgun”. Law enforcement responded to the apartment in Sioux City where the altercation took place. Outside of the apartment, law enforcement encountered an individual, who confirmed there had been an altercation, and identified some of the individuals, but the individuals inside the apartment were reluctant to cooperate.

Further, on March 23, 2024, at approximately 8:22 p.m., law enforcement observed Lyons and two other individuals, walking in Sioux City, Iowa. As law enforcement approached, Lyons dropped a black backpack and walked into the street. The other individual attempted to throw a machete into a storm drain. The individuals were stopped by police. The machete was retrieved, and through the open zipper of the backpack, law enforcement observed a barrel and what appeared to be a cut-off gunstock that was covered with a sock. It was later determined Lyons was in possession of the sawed-off shotgun.

Lyons has a history of violent offenses, failure on supervision, disciplinary violations in custody and a history of eluding, resisting and fighting with law enforcement. Lyons criminal history includes (1) assaulting, resisting, or impeding an officer, in the United States District Court of Nebraska; (2) assault with a dangerous weapon in Indian Country, in the United States District Court of Nebraska; and (3) assault by striking, beating, and wounding, in the United States District Court of Nebraska.

Lyons was sentenced in Sioux City by United States District Court Judge Leonard T. Strand to 120 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.

This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Lyons is being held in the United States Marshal’s custody until he can be transported to a federal prison.

The case was investigated by the Sioux City, Iowa Police Department and was prosecuted by Assistant United States Attorney Forde Fairchild.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.

The case file number is 24-CR-4026.

Follow us on X @USAO_NDIA.

MIL Security OSI –

January 29, 2025

MIL-OSI New Zealand: Raising speed limits on undivided highways invites trouble

Source: Green Party

The Government’s move to increase speed limits substantially on dozens of stretches of rural and often undivided highways will result in more serious harm.

“The Government’s pro-growth spin cannot obscure the fact that raising speed limits significantly increases the risk of serious harm,” says the Green Party’s Transport spokesperson, Julie Anne Genter.

“The laws of physics aren’t a matter of popular opinion. The faster the speed, the bigger the mess. The evidence is overwhelming: safe speeds save lives.

“And yet this Government is substantially hiking up the speed limit on a swathe of often undivided roads in regions such as Northland which has had historically higher rates of deaths on their roads compared to the rest of the country.

“When safe speed limits were established in Northland it reduced deaths and serious injuries by 50-60 per cent with increases in travel times less than one minute per 10 kilometres.

“People won’t notice a minute added to their travel – they will notice when a loved one doesn’t return home from work or school.

“Countries with the lowest deaths and serious injuries have 70 or 80 kph speed limits maximum on rural undivided highways. That’s the International Transport Forum’s recommendation – and the difference it makes is quite stark.

“Local councils, health professionals and road safety experts from here and around the world have spoken out opposing this senseless policy, outlining the serious harm it will cause.

“The Government is playing politics with people’s lives here. Failing to follow the evidence and ignoring basic physics will have real-world consequences,” says Julie Anne Genter.

MIL OSI New Zealand News –

January 29, 2025

MIL-OSI Australia: Updated Australia’s Disability Strategy to improve the lives of people

Source: Ministers for Social Services

29 January 2025

All governments have reaffirmed their commitment to building a more inclusive Australia, where all people with disability can participate on an equal basis, through the release of the updated Australia’s Disability Strategy 2021-2031.

As part of the joint response to the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability, Commonwealth and state and territory governments all accepted the Royal Commission’s recommendation to review the Strategy.

During the review, people with disability, representative organisations and the Strategy’s Advisory Council shared their important perspectives on how governments can continue to improve the everyday lives of people with disability through the Strategy’s implementation.

Minister for Social Services Amanda Rishworth said the updated Strategy reflects what matters most to the disability community and outlines a roadmap to deliver change.

“This updated Strategy introduces an additional policy priority focused on addressing homelessness, a commitment to a new Community Engagement Plan and three new Targeted Action Plans, which focus on building more inclusive homes and communities; improving the safety, rights and justice for people with disability; and changing community attitudes,” Minister Rishworth said.

“These Targeted Action Plans set out the specific steps governments will take to drive change. For the first time, they also include a number of national actions that all governments will work on together, with the disability community, to ensure people with disability right across Australia experience the benefits.

“It remains important to all governments that our actions are guided by the voices and experiences of people with disability, and we have taken the opportunity to add new and updated evidence about the experiences of people with disability since the Strategy’s launch in 2021.”

Governments have also agreed to progress an Associated Plan under the Strategy, that will focus on making information and communications more accessible, including through the design and development of agreed standards.

“People with disability want greater and more diverse opportunities to take part in the decisions and design on matters that impact their lives, and we are committed to actively involving people with disability as we implement these changes,” Minister Rishworth said.

The updated Strategy release is accompanied by several supporting documents, including:

Three new Targeted Action Plans
The Third Targeted Action Plans Report
A revised Data Improvement Plan
Guide to Applying Australia’s Disability Strategy.

To learn more about the updated Strategy and supporting documents, visit disabilitygateway.gov.au/ads

MIL OSI News –

January 29, 2025

MIL-OSI Australia: Albanese Government delivering free broadband for 30,000 unconnected Australian families

Source: Australian Ministers 1

The Albanese Government has announced an additional $4.9 million in funding to NBN Co to extend the free School Student Broadband Initiative (SSBI) to 30 June 2028, to ease cost of living pressures and narrow the digital divide for unconnected families with school children.

More than 23,000 families across the country are already accessing free NBN broadband through the SSBI, and this additional funding will assist more families to access the program.

Families save around $1,000 a year through the program, and it allows children who otherwise would have difficulty accessing the internet connections that are crucial to modern learning to have the same opportunities as their peers.

The program was due to finish in 2025. The extension will now allow the free services to continue for new and existing families until 30 June 2028, with up to 30,000 places available in the program. It brings the Albanese Government’s total investment in the program to $13.7 million.

To be eligible, families and carers must:

have a child living at home enrolled in an Australian school;
have no active broadband service over the NBN network in the last 14 days; and
live in a premises where they can access standard NBN services.

Once a family is assessed as eligible, they are issued with a unique voucher which they can redeem with one of the participating internet providers. The free service begins from the day the service is activated until 30 June 2028 and is available across all NBN technologies

To apply, families and carers are encouraged to contact the National Referral Centre run by Anglicare Victoria on 1800 954 610 (Mon–Fri, 10am–6pm AEDT) or visit: www.anglicarevic.org.au/student-internet.

For more information on the program visit: School Student Broadband Initiative (SSBI) | Department of Infrastructure, Transport, Regional Development, Communications and the Art.

Quotes attributable to the Minister for Communications, the Hon Michelle Rowland MP:

“The Albanese Government is building Australia’s future, and that means investing in our children and their education.

“The School Student Broadband Initiative is making a serious difference for thousands of families who now are able to enjoy the benefits of having reliable internet at home – a must in our increasingly digital world.

“It is a fantastic milestone that 23,000 families are now benefitting from this cost of living measure – with the extension meaning families have even more time to sign up and be supported by free NBN broadband.

“The program is helping Australians from all walks of life, including those who have escaped domestic and family violence, who no longer have to deal with the burden and uncertainty of mobile internet usage and data cost or the need to travel to use public Wi-Fi networks just so their children can complete their homework.

“The success of this program to date wouldn’t be possible without the support of NBN Co, retail service providers, state and territory governments, schools, community organisations and charities, and I thank them for their ongoing work to help the initiative reach even more families.”

MIL OSI News –

January 29, 2025

MIL-OSI Australia: Australian produce in high demand for Lunar New Year Celebrations in China

Source: Minister for Trade

The Lunar New Year marks exciting new opportunities for Australian food and agriculture exporters to China, with $20 billion worth of trade impediments now removed.

China’s consumers can celebrate the Year of the Snake by dining on a smorgasbord of Aussie cuisine, including delicious lobsters, the world’s best wines, and high-quality beef steaks.

The Albanese Labor Government has worked calmly and consistently to restore dialogue to Australia’s relationship with China and secure the removal of $20 billion of trade impediments.

Following the removal of the final trade impediments in December 2024, dining tables in China will now feature Australian live rock lobsters, a welcome outcome for Chinese consumers and Australian businesses alike.

Over 900 tonnes of live rock lobsters has already been exported to China since the removal of impediments. This has supported the jobs of 3,000 Australians employed in the industry, 2,000 of which are in Western Australia.

Australian fresh cherries are also highly prized as a gift to celebrate the Lunar New Year, and demand is expected to grow this financial year, after strong growth last year. Australia exported $14 million or 582 tonnes of cherries in 2023-24, an increase of 129 per cent in value and 137 per cent in volume.

Exports to China of Australian agricultural products previously affected by trade impediments have rebounded in 2024 year-on-year (January to October):

barley increased 221 per cent in value;
wine increased over 5,000 per cent in value; and
timber logs (specifically, wood in the rough) increased over 8,000 per cent in value.

China remains Australia’s largest market for agricultural exports, worth $17.1 billion and accounting for around a quarter of total agricultural exports in 2023-24.

Quotes attributable to Foreign Minister Penny Wong:

“The Albanese Labor Government’s calm and consistent approach to our relationship with China is delivering for Australians and for our national interest.

“It’s the result of hard work and a responsible Government that doesn’t play reckless political games with Australia’s most important relationships.

“Labor will continue to support Australian businesses to sell their products to the world, including through our efforts to diversify our trade.”

Quotes attributable to Trade and Tourism Minister Don Farrell:

“Sustained engagement and advocacy by the Albanese Labor Government has resulted in the removal of around $20 billion of Chinese trade impediments, benefiting Australian farmers, exporters and our regions.

“But we will not rest on our laurels – we are committed to creating even more export opportunities for Australian farmers and producers.

“Every product we export means more national income and more well-paying Australian jobs.”

Quotes attributable to Agriculture, Fisheries and Forestry Minister Julie Collins:

“Australia has an outstanding reputation as a supplier of high-quality agricultural products in China.

“Our Government is focused on strengthening our trade relationships and expanding opportunities for Australia’s farmers and producers.

“In 2023-24, we recorded 88 market access achievements which opened, improved, maintained, or restored access for Australian businesses, including unlocking 10 new markets.

“Australia exports over 70 per cent of our agricultural, fisheries and forestry production to 169 markets globally – the most diversified trade has ever been – thanks to the Albanese Labor Government.”

MIL OSI News –

January 29, 2025

MIL-Evening Report: Trump 2.0 chaos and destruction — what it means Down Under

What will happen to Australia — and New Zealand — once the superpower that has been followed into endless battles, the United States, finally unravels?

COMMENTARY: By Michelle Pini, managing editor of Independent Australia

With President Donald Trump now into his second week in the White House, horrific fires have continued to rage across Los Angeles and the details of Elon Musk’s allegedly dodgy Twitter takeover began to emerge, the world sits anxiously by.

The consequences of a second Trump term will reverberate globally, not only among Western nations. But given the deeply entrenched Americanisation of much of the Western world, this is about how it will navigate the after-shocks once the United States finally unravels — for unravel it surely will.

Leading with chaos
Now that the world’s biggest superpower and war machine has a deranged criminal at the helm — for a second time — none of us know the lengths to which Trump (and his puppet masters) will go as his fingers brush dangerously close to the nuclear codes. Will he be more emboldened?

The signs are certainly there.

President Donald Trump 2.0 . . . will his cruelty towards migrants and refugees escalate, matched only by his fuelling of racial division? Image: ABC News screenshot IA

So far, Trump — who had already led the insurrection of a democratically elected government — has threatened to exit the nuclear arms pact with Russia, talked up a trade war with China and declared “all hell will break out” in the Middle East if Hamas hadn’t returned the Israeli hostages.

Will his cruelty towards migrants and refugees escalate, matched only by his fuelling of racial division?

This, too, appears to be already happening.

Trump’s rants leading up to his inauguration last week had been a steady stream of crazed declarations, each one more unhinged than the last.

He wants to buy Greenland. He wishes to overturn birthright citizenship in order to deport even more migrant children, such as “pet-eating Haitians” and “insane Hannibal Lecters” because America has been “invaded”.

It will be interesting to see whether his planned evictions of Mexicans will include the firefighters Mexico sent to Los Angeles’ aid.

At the same time, Trump wants to turn Canada into the 51st state, because, he said,

“It would make a great state. And the people of Canada like it.”

Will sexual predator Trump’s level of misogyny sink to even lower depths post Roe v Wade?

Probably.

Denial of catastrophic climate consequences
And will Trump be in even further denial over the catastrophic consequences of climate change than during his last term? Even as Los Angeles grapples with a still climbing death toll of 25 lives lost, 12,000 homes, businesses and other structures destroyed and 16,425 hectares (about the size of Washington DC) wiped out so far in the latest climactic disaster?

The fires are, of course, symptomatic of the many years of criminal negligence on global warming. But since Trump instead accused California officials of “prioritising environmental policies over public safety” while his buddy and head of government “efficiency”, Musk blamed black firefighters for the fires, it would appear so.

Will the madman, for surely he is one, also gift even greater protections to oligarchs like Musk?

Trump has already appointed billionaire buddies Musk and Vivek Ramaswamy to:

“…pave the way for my Administration to dismantle government bureaucracy, slash excess regulations, cut wasteful expenditures and restructure Federal agencies”.

So, this too is already happening.

All of these actions will combine to create a scenario of destruction that will see the implosion of the US as we know it, though the details are yet to emerge.

The flawed AUKUS pact sinking quickly . . . Australian Prime Minister Anthony Albanese with outgoing President Joe Biden, will Australia have the mettle to be bigger than Trump. Image: Independent Australia

What happens Down Under?
US allies — like Australia — have already been thoroughly indoctrinated by American pop culture in order to complement the many army bases they house and the defence agreements they have signed.

Though Trump hasn’t shown any interest in making it a 52nd state, Australia has been tucked up in bed with the United States since the Cold War. Our foreign policy has hinged on this alliance, which also significantly affects Australia’s trade and economy, not to mention our entire cultural identity, mired as it is in US-style fast food dependence and reality TV. Would you like Vegemite McShaker Fries with that?

So what will happen to Australia once the superpower we have followed into endless battles finally breaks down?

As Dr Martin Hirst wrote in November:

‘Trump has promised chaos and chaos is what he’ll deliver.’

His rise to power will embolden the rabid Far-Right in the US but will this be mirrored here? And will Australia follow the US example and this year elect our very own (admittedly scaled down) version of Trump, personified by none other than the Trump-loving Peter Dutton?

If any of his wild announcements are to be believed, between building walls and evicting even US nationals he doesn’t like, while simultaneously making Canadians US citizens, Trump will be extremely busy.

There will be little time even to consider Australia, let alone come to our rescue should we ever need the might of the US war machine — no matter whether it is an Albanese or sycophantic Dutton leadership.

It is a given, however, that we would be required to honour all defence agreements should our ally demand it.

It would be great if, as psychologists urge us to do when children act up, our leaders could simply ignore and refuse to engage with him, but it remains to be seen whether Australia will have the mettle to be bigger than Trump.

Republished from the Independent Australia with permission.

MIL OSI Analysis – EveningReport.nz –

January 29, 2025

MIL-OSI New Zealand: Speed limit reduction reversals begin

Source: New Zealand Government

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Notes to editor:

Attached fact sheets:

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

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

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

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

Further note:

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

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

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

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

MIL OSI New Zealand News –

January 29, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

Net Income of $28.1 million
Diluted EPS of $0.49

FOURTH QUARTER 2024 HIGHLIGHTS

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

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

MESSAGE FROM OUR CHAIRMAN & CEO

Fourth Quarter Financial Results

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

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

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

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

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

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

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

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

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

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

Planned Partnership with CrossFirst

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

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

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

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

Busey’s Conservative Banking Strategy

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

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

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

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

Community Banking

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

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

		Van A. Dukeman
		Chairman and Chief Executive Officer
		First Busey Corporation

SELECTED FINANCIAL HIGHLIGHTS *(unaudited)*
(dollars in thousands, except per share amounts)

	Three Months Ended									Years Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
EARNINGS & PER SHARE AMOUNTS
Net income	$	28,105		$	32,004		$	25,749		$	113,691		$	122,565
Diluted earnings per common share		0.49			0.55			0.46			1.98			2.18
Cash dividends paid per share		0.24			0.24			0.24			0.96			0.96
Pre-provision net revenue^{1, 2}		38,828			41,744			32,909			167,996			158,502
Operating revenue²		116,995			117,688			107,888			460,671			444,034

Net income by operating segment:
Banking		30,856			33,221			25,164			117,266			123,853
FirsTech		(723	)		(61	)		325			(670	)		830
Wealth Management		5,853			5,618			4,233			22,030			18,804

AVERAGE BALANCES
Cash and cash equivalents	$	776,572		$	502,127		$	608,647		$	555,281		$	330,952
Investment securities		2,597,309			2,666,269			2,995,223			2,726,488			3,188,815
Loans held for sale		6,306			11,539			1,679			8,012			1,885
Portfolio loans		7,738,772			7,869,798			7,736,010			7,804,629			7,759,472
Interest-earning assets		11,048,350			10,942,745			11,235,326			10,999,424			11,181,010
Total assets		12,085,993			12,007,702			12,308,491			12,051,871			12,246,218

Noninterest-bearing deposits		2,724,344			2,706,858			2,827,696			2,738,892			3,018,563
Interest-bearing deposits		7,325,662			7,296,921			7,545,234			7,301,124			7,052,370
Total deposits		10,050,006			10,003,779			10,372,930			10,040,016			10,070,933

Federal funds purchased and securities sold under agreements to repurchase		135,728			132,688			182,735			147,786			200,894
Interest-bearing liabilities		7,763,729			7,731,459			8,054,663			7,763,084			7,825,459
Total liabilities		10,689,054			10,643,325			11,106,074			10,709,447			11,048,707
Stockholders’ equity – common		1,396,939			1,364,377			1,202,417			1,342,424			1,197,511
Tangible common equity²		1,029,539			994,657			846,948			975,823			838,164

PERFORMANCE RATIOS
Pre-provision net revenue to average assets^{1, 2, 3}		1.28	%		1.38	%		1.06	%		1.39	%		1.29	%
Return on average assets³		0.93	%		1.06	%		0.83	%		0.94	%		1.00	%
Return on average common equity³		8.00	%		9.33	%		8.50	%		8.47	%		10.23	%
Return on average tangible common equity^{2, 3}		10.86	%		12.80	%		12.06	%		11.65	%		14.62	%
Net interest margin^2, 4		2.95	%		3.02	%		2.75	%		2.95	%		2.89	%
Efficiency ratio²		64.45	%		62.15	%		66.89	%		61.76	%		61.65	%
Adjusted noninterest income to operating revenue²		30.27	%		29.77	%		28.31	%		29.97	%		27.79	%

NON-GAAP FINANCIAL INFORMATION
Adjusted pre-provision net revenue^1, 2	$	41,958		$	44,104		$	40,223		$	167,317		$	172,290
Adjusted net income²		30,725			33,533			29,123			119,805			126,012
Adjusted diluted earnings per share²		0.53			0.58			0.52			2.08			2.24
Adjusted pre-provision net revenue to average assets^{2, 3}		1.38	%		1.46	%		1.30	%		1.39	%		1.41	%
Adjusted return on average assets^{2, 3}		1.01	%		1.11	%		0.94	%		0.99	%		1.03	%
Adjusted return on average tangible common equity^{2, 3}		11.87	%		13.41	%		13.64	%		12.28	%		15.03	%
Adjusted net interest margin^2, 4		2.92	%		2.97	%		2.74	%		2.92	%		2.87	%
Adjusted efficiency ratio²		61.40	%		60.50	%		62.98	%		61.03	%		60.68	%

___________________________________________

Net interest income plus noninterest income, excluding securities gains and losses, less noninterest expense.
See “Non-GAAP Financial Information” for reconciliation.
For quarterly periods, measures are annualized.
On a tax-equivalent basis, assuming a federal income tax rate of 21%.

CONDENSED CONSOLIDATED BALANCE SHEETS *(unaudited)*
(dollars in thousands, except per share amounts)

	As of
	December 31, 2024			September 30, 2024			December 31, 2023
ASSETS
Cash and cash equivalents	$	697,659		$	553,709		$	719,581
Debt securities available for sale		1,810,221			1,818,117			2,087,571
Debt securities held to maturity		826,630			838,883			872,628
Equity securities		15,862			10,315			9,812
Loans held for sale		3,657			11,523			2,379

Commercial loans		5,552,288			5,631,281			5,635,048
Retail real estate and retail other loans		2,144,799			2,177,816			2,015,986
Portfolio loans		7,697,087			7,809,097			7,651,034

Allowance for credit losses		(83,404	)		(84,981	)		(91,740	)
Restricted bank stock		49,930			6,000			6,000
Premises and equipment, net		118,820			120,279			122,594
Right of use assets		10,608			11,100			11,027
Goodwill and other intangible assets, net		365,975			368,249			353,864
Other assets		533,677			524,548			538,665
Total assets	$	12,046,722		$	11,986,839		$	12,283,415

LIABILITIES & STOCKHOLDERS’ EQUITY
Liabilities
Deposits:
Noninterest-bearing deposits	$	2,719,907		$	2,683,543		$	2,834,655
Interest-bearing checking, savings, and money market deposits		5,771,948			5,739,773			5,637,227
Time deposits		1,490,635			1,519,925			1,819,274
Total deposits		9,982,490			9,943,241			10,291,156

Securities sold under agreements to repurchase		155,610			128,429			187,396
Short-term borrowings		—			—			12,000
Long-term debt		227,723			227,482			240,882
Junior subordinated debt owed to unconsolidated trusts		74,815			74,754			71,993
Lease liabilities		11,040			11,470			11,308
Other liabilities		211,775			198,579			196,699
Total liabilities		10,663,453			10,583,955			11,011,434

Stockholders’ equity
Retained earnings		294,054			279,868			237,197
Accumulated other comprehensive income (loss)		(207,039	)		(170,913	)		(218,803	)
Other stockholders’ equity¹		1,296,254			1,293,929			1,253,587
Total stockholders’ equity		1,383,269			1,402,884			1,271,981
Total liabilities & stockholders’ equity	$	12,046,722		$	11,986,839		$	12,283,415

SHARE AND PER SHARE AMOUNTS
Book value per common share	$	24.31		$	24.67		$	23.02
Tangible book value per common share²	$	17.88		$	18.19		$	16.62
Ending number of common shares outstanding		56,895,981			56,872,241			55,244,119

___________________________________________

Net balance of common stock ($0.001 par value), additional paid-in capital, and treasury stock.
See “Non-GAAP Financial Information” for reconciliation.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME *(unaudited)*
(dollars in thousands, except per share amounts)

	Three Months Ended								Years Ended
	December 31, 2024			September 30, 2024			December 31, 2023		December 31, 2024			December 31, 2023
INTEREST INCOME
Interest and fees on loans	$	106,120		$	111,336		$	101,425	$	426,422		$	385,848
Interest and dividends on investment securities		16,788			18,072			20,634		73,970			82,994
Dividend income on bank stock		557			106			212		848			1,170
Other interest income		7,851			5,092			6,641		22,441			10,531
Total interest income	$	131,316		$	134,606		$	128,912	$	523,681		$	480,543

INTEREST EXPENSE
Deposits	$	44,152		$	46,634		$	45,409	$	178,463		$	123,985
Federal funds purchased and securities sold under agreements to repurchase		915			981			1,431		4,308			5,203
Short-term borrowings		25			26			248		701			12,775
Long-term debt		3,183			3,181			3,475		12,950			14,106
Junior subordinated debt owed to unconsolidated trusts		1,463			1,137			1,004		4,648			3,853
Total interest expense	$	49,738		$	51,959		$	51,567	$	201,070		$	159,922

Net interest income	$	81,578		$	82,647		$	77,345	$	322,611		$	320,621
Provision for credit losses		1,273			2			455		8,590			2,399
Net interest income after provision for credit losses	$	80,305		$	82,645		$	76,890	$	314,021		$	318,222

NONINTEREST INCOME
Wealth management fees	$	16,786		$	15,378		$	13,715	$	63,630		$	57,309
Fees for customer services		7,911			8,168			7,484		30,933			29,044
Payment technology solutions		5,094			5,265			5,420		21,983			21,192
Mortgage revenue		496			355			218		2,075			1,089
Income on bank owned life insurance		1,080			1,189			1,019		5,130			4,701
Realized net gains (losses) on the sale of mortgage servicing rights		—			(18	)		—		7,724			—
Net securities gains (losses)		(196	)		822			761		(6,102	)		(2,199	)
Other noninterest income		4,050			4,686			2,687		14,309			10,078
Total noninterest income	$	35,221		$	35,845		$	31,304	$	139,682		$	121,214

NONINTEREST EXPENSE
Salaries, wages, and employee benefits	$	45,458		$	44,593		$	42,730	$	175,619		$	162,597
Data processing expense		6,564			6,910			6,236		27,124			23,708
Net occupancy expense of premises		4,794			4,633			4,318		18,737			18,214
Furniture and equipment expense		1,650			1,647			1,694		6,805			6,759
Professional fees		4,938			3,118			2,574		12,804			7,147
Amortization of intangible assets		2,471			2,548			2,479		10,057			10,432
Interchange expense		1,305			1,352			1,355		6,001			6,864
FDIC insurance		1,330			1,413			1,167		5,603			5,650
Other noninterest expense		9,657			9,712			12,426		37,649			44,161
Total noninterest expense	$	78,167		$	75,926		$	74,979	$	300,399		$	285,532

Income before income taxes	$	37,359		$	42,564		$	33,215	$	153,304		$	153,904
Income taxes		9,254			10,560			7,466		39,613			31,339
Net income	$	28,105		$	32,004		$	25,749	$	113,691		$	122,565

SHARE AND PER SHARE AMOUNTS
Basic earnings per common share	$	0.49		$	0.56		$	0.46	$	2.01		$	2.21
Diluted earnings per common share	$	0.49		$	0.55		$	0.46	$	1.98		$	2.18
Weighted average number of common shares outstanding, basic		57,061,542			57,033,359			55,403,662		56,610,032			55,432,322
Weighted average number of common shares outstanding, diluted		57,934,812			57,967,848			56,333,033		57,543,001			56,256,148

BALANCE SHEET STRENGTH

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

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

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

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

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

ASSET QUALITY

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

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

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

ASSET QUALITY *(unaudited)*
(dollars in thousands)

	As of
	December 31, 2024			September 30, 2024			December 31, 2023
Total assets	$	12,046,722		$	11,986,839		$	12,283,415
Portfolio loans		7,697,087			7,809,097			7,651,034
Loans 30 – 89 days past due		8,124			10,141			5,779
Non-performing loans:
Non-accrual loans		22,088			8,192			7,441
Loans 90+ days past due and still accruing		1,149			25			375
Non-performing loans	$	23,237		$	8,217		$	7,816
Non-performing loans, segregated by geography:
Illinois / Indiana	$	19,558		$	3,981		$	3,715
Missouri		3,016			3,530			3,836
Florida		663			706			265
Other non-performing assets		63			64			125
Non-performing assets	$	23,300		$	8,281		$	7,941

Allowance for credit losses	$	83,404		$	84,981		$	91,740

RATIOS
Non-performing loans to portfolio loans		0.30	%		0.11	%		0.10	%
Non-performing assets to total assets		0.19	%		0.07	%		0.06	%
Non-performing assets to portfolio loans and other non-performing assets		0.30	%		0.11	%		0.10	%
Allowance for credit losses to portfolio loans		1.08	%		1.09	%		1.20	%
Coverage ratio of the allowance for credit losses to non-performing loans		3.59	x		10.34	x		11.74	x

NET CHARGE-OFFS (RECOVERIES) AND PROVISION EXPENSE (RELEASE) *(unaudited)*
(dollars in thousands)

	Three Months Ended						Years Ended
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Net charge-offs (recoveries)	$	2,850	$	247	$	425	$	18,169	$	2,267
Provision expense (release)		1,273		2		455		8,590		2,399

NET INTEREST MARGIN AND NET INTEREST INCOME

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

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

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

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

NONINTEREST INCOME

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

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

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

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

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

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

OPERATING EFFICIENCY

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

Noteworthy components of noninterest expense are as follows:

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

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

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

CAPITAL STRENGTH

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

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

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

FOURTH QUARTER EARNINGS INVESTOR PRESENTATION

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

CORPORATE PROFILE

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

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

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

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

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

For more information about us, visit busey.com.

Category: Financial
Source: First Busey Corporation

Contacts:

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

NON-GAAP FINANCIAL INFORMATION

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

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

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

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

Pre-Provision Net Revenue and Related Measures

		Three Months Ended									Years Ended
(dollars in thousands)		December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Net interest income (GAAP)		$	81,578		$	82,647		$	77,345		$	322,611		$	320,621
Total noninterest income (GAAP)			35,221			35,845			31,304			139,682			121,214
Net security (gains) losses (GAAP)			196			(822	)		(761	)		6,102			2,199
Total noninterest expense (GAAP)			(78,167	)		(75,926	)		(74,979	)		(300,399	)		(285,532	)
Pre-provision net revenue (Non-GAAP)	[a]		38,828			41,744			32,909			167,996			158,502
Acquisition and restructuring expenses			3,585			1,935			4,237			8,140			4,328
Provision for unfunded commitments			(455	)		407			818			(1,095	)		461
Amortization of New Markets Tax Credits			—			—			2,259			—			8,999
Realized (gain) loss on the sale of mortgage service rights			—			18			—			(7,724	)		—
Adjusted pre-provision net revenue (Non-GAAP)	[b]	$	41,958		$	44,104		$	40,223		$	167,317		$	172,290

Average total assets (GAAP)	[c]		12,085,993			12,007,702			12,308,491			12,051,871			12,246,218

Pre-provision net revenue to average total assets (Non-GAAP)¹	[a÷c]		1.28	%		1.38	%		1.06	%		1.39	%		1.29	%
Adjusted pre-provision net revenue to average total assets (Non-GAAP)¹	[b÷c]		1.38	%		1.46	%		1.30	%		1.39	%		1.41	%

___________________________________________

For quarterly periods, measures are annualized.


Adjusted Net Income, Average Tangible Common Equity, and Related Ratios

		Three Months Ended									Years Ended
(dollars in thousands, except per share amounts)		December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Net income (GAAP)	[a]	$	28,105		$	32,004		$	25,749		$	113,691		$	122,565
Acquisition expenses:
Salaries, wages, and employee benefits			247			73			—			1,457			—
Data processing			14			90			—			548			—
Professional fees, occupancy, furniture and fixtures, and other			2,208			1,772			266			4,896			357
Restructuring expenses:
Salaries, wages, and employee benefits			—			—			3,760			123			3,760
Professional fees, occupancy, furniture and fixtures, and other			1,116			—			211			1,116			211
Acquisition and restructuring expenses			3,585			1,935			4,237			8,140			4,328
Related tax benefit¹			(965	)		(406	)		(863	)		(2,026	)		(881	)
Adjusted net income (Non-GAAP)	[b]	$	30,725		$	33,533		$	29,123		$	119,805		$	126,012

Weighted average number of common shares outstanding, diluted (GAAP)	[c]		57,934,812			57,967,848			56,333,033			57,543,001			56,256,148
Diluted earnings per common share (GAAP)	[a÷c]	$	0.49		$	0.55		$	0.46		$	1.98		$	2.18
Adjusted diluted earnings per common share (Non-GAAP)	[b÷c]	$	0.53		$	0.58		$	0.52		$	2.08		$	2.24

Average total assets (GAAP)	[d]		12,085,993			12,007,702			12,308,491			12,051,871			12,246,218
Return on average assets (GAAP)²	[a÷d]		0.93	%		1.06	%		0.83	%		0.94	%		1.00	%
Adjusted return on average assets (Non-GAAP)²	[b÷d]		1.01	%		1.11	%		0.94	%		0.99	%		1.03	%

Average common equity (GAAP)		$	1,396,939		$	1,364,377		$	1,202,417		$	1,342,424		$	1,197,511
Average goodwill and other intangible assets, net			(367,400	)		(369,720	)		(355,469	)		(366,601	)		(359,347	)
Average tangible common equity (Non-GAAP)	[e]	$	1,029,539		$	994,657		$	846,948		$	975,823		$	838,164

Return on average tangible common equity (Non-GAAP)²	[a÷e]		10.86	%		12.80	%		12.06	%		11.65	%		14.62	%
Adjusted return on average tangible common equity (Non-GAAP)²	[b÷e]		11.87	%		13.41	%		13.64	%		12.28	%		15.03	%

___________________________________________

Year-to-date tax benefits were calculated by multiplying year-to-date acquisition and restructuring expenses by tax rates of 24.9% and 20.4% for the years ended December 31, 2024 and 2023, respectively. Quarterly tax benefits were calculated as the year-to-date tax benefit amounts less the sum of amounts applied to previous quarters during the year, equating to tax rates of 26.9%, 21.0%, and 20.4% for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
For quarterly periods, measures are annualized.

Further Adjusted Net Income and Related Measures

		Three Months Ended									Years Ended
(dollars in thousands, except per share amounts)		December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Adjusted net income (Non-GAAP)¹		$	30,725		$	33,533		$	29,123		$	119,805		$	126,012
Further non-GAAP adjustments:
Net securities (gains) losses			196			(822	)		(761	)		6,102			2,199
Realized net (gains) losses on the sale of mortgage servicing rights			—			18			—			(7,724	)		—
Tax effect for further non-GAAP adjustments²			(49	)		199			171			419			(448	)
Tax effected further non-GAAP adjustments³			147			(605	)		(590	)		(1,203	)		1,751
Further adjusted net income (Non-GAAP)³	[a]	$	30,872		$	32,928		$	28,533		$	118,602		$	127,763
One-time deferred tax valuation adjustment⁴			—			—			—			1,446			—
Further adjusted net income, excluding one-time deferred tax valuation adjustment (Non-GAAP)³	[b]	$	30,872		$	32,928		$	28,533		$	120,048		$	127,763

Weighted average number of common shares outstanding, diluted	[c]		57,934,812			57,967,848			56,333,033			57,543,001			56,256,148

Further adjusted diluted earnings per common share (Non-GAAP)³	[a÷c]	$	0.53		$	0.57		$	0.51		$	2.06		$	2.27
Further adjusted diluted earnings per common share, excluding one-time deferred tax valuation adjustment (Non-GAAP)³	[b÷c]	$	0.53		$	0.57		$	0.51		$	2.09		$	2.27

___________________________________________

Adjusted net income is a non-GAAP measure. See the previous table for a reconciliation to the nearest GAAP measure.
Tax effects for further non-GAAP adjustments were calculated by multiplying further non-GAAP adjustments by the effective income tax rate for each period. Effective income tax rates that were used to calculate the tax effect were 24.8%, 24.8%, and 22.5% for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively, and were 25.8% and 20.4% for the years ended December 31, 2024 and 2023, respectively.
Tax-effected measure.
An estimated one-time deferred tax valuation adjustment of $1.4 million resulted from a change to our Illinois apportionment rate due to recently enacted regulations.

Tax-Equivalent Net Interest Income, Adjusted Net Interest Income, Net Interest Margin, and Adjusted Net Interest Margin

		Three Months Ended									Years Ended
(dollars in thousands)		December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Net interest income (GAAP)		$	81,578		$	82,647		$	77,345		$	322,611		$	320,621
Tax-equivalent adjustment¹			446			396			501			1,693			2,173
Tax-equivalent net interest income (Non-GAAP)	[a]		82,024			83,043			77,846			324,304			322,794
Purchase accounting accretion related to business combinations			(812	)		(1,338	)		(384	)		(3,166	)		(1,477	)
Adjusted net interest income (Non-GAAP)	[b]	$	81,212		$	81,705		$	77,462		$	321,138		$	321,317

Average interest-earning assets (GAAP)	[c]		11,048,350			10,942,745			11,235,326			10,999,424			11,181,010

Net interest margin (Non-GAAP)²	[a÷c]		2.95	%		3.02	%		2.75	%		2.95	%		2.89	%
Adjusted net interest margin (Non-GAAP)²	[b÷c]		2.92	%		2.97	%		2.74	%		2.92	%		2.87	%

___________________________________________

Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
For quarterly periods, measures are annualized.

Adjusted Noninterest Income, Revenue Measures, Adjusted Noninterest Expense, Adjusted Core Expense, and Efficiency Ratios

		Three Months Ended									Years Ended
(dollars in thousands)		December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Net interest income (GAAP)	[a]	$	81,578		$	82,647		$	77,345		$	322,611		$	320,621
Tax-equivalent adjustment¹			446			396			501			1,693			2,173
Tax-equivalent net interest income (Non-GAAP)	[b]		82,024			83,043			77,846			324,304			322,794

Total noninterest income (GAAP)			35,221			35,845			31,304			139,682			121,214
Net security (gains) losses (GAAP)			196			(822	)		(761	)		6,102			2,199
Noninterest income excluding net securities gains and losses (Non-GAAP)	[c]		35,417			35,023			30,543			145,784			123,413
Realized net (gains) losses on the sale of mortgage servicing rights (GAAP)			—			18			—			(7,724	)		—
Adjusted noninterest income (Non-GAAP)	[d]	$	35,417		$	35,041		$	30,543		$	138,060		$	123,413

Tax-equivalent revenue (Non-GAAP)	[e = b+c]	$	117,441		$	118,066		$	108,389		$	470,088		$	446,207
Adjusted tax-equivalent revenue (Non-GAAP)	[f = b+d]		117,441			118,084			108,389			462,364			446,207
Operating revenue (Non-GAAP)	[g = a+d]		116,995			117,688			107,888			460,671			444,034

Adjusted noninterest income to operating revenue (Non-GAAP)	[d÷g]		30.27	%		29.77	%		28.31	%		29.97	%		27.79	%

Total noninterest expense (GAAP)		$	78,167		$	75,926		$	74,979		$	300,399		$	285,532
Amortization of intangible assets (GAAP)	[h]		(2,471	)		(2,548	)		(2,479	)		(10,057	)		(10,432	)
Noninterest expense excluding amortization of intangible assets (Non-GAAP)	[i]		75,696			73,378			72,500			290,342			275,100
Non-operating adjustments:
Salaries, wages, and employee benefits			(247	)		(73	)		(3,760	)		(1,580	)		(3,760	)
Data processing			(14	)		(90	)		—			(548	)		—
Professional fees, occupancy, furniture and fixtures, and other			(3,324	)		(1,772	)		(477	)		(6,012	)		(568	)
Adjusted noninterest expense (Non-GAAP)	[j]		72,111			71,443			68,263			282,202			270,772
Provision for unfunded commitments			455			(407	)		(818	)		1,095			(461	)
Amortization of New Markets Tax Credits			—			—			(2,259	)		—			(8,999	)
Adjusted core expense (Non-GAAP)	[k]	$	72,566		$	71,036		$	65,186		$	283,297		$	261,312

Noninterest expense, excluding non-operating adjustments (Non-GAAP)	[j-h]	$	74,582		$	73,991		$	70,742		$	292,259		$	281,204

Efficiency ratio (Non-GAAP)	[i÷e]		64.45	%		62.15	%		66.89	%		61.76	%		61.65	%
Adjusted efficiency ratio (Non-GAAP)	[j÷f]		61.40	%		60.50	%		62.98	%		61.03	%		60.68	%
Adjusted core efficiency ratio (Non-GAAP)	[k÷f]		61.79	%		60.16	%		60.14	%		61.27	%		58.56	%

___________________________________________

Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.

Tangible Book Value and Tangible Book Value Per Common Share

		As of
(dollars in thousands, except per share amounts)		December 31, 2024			September 30, 2024			December 31, 2023
Total stockholders’ equity (GAAP)		$	1,383,269		$	1,402,884		$	1,271,981
Goodwill and other intangible assets, net (GAAP)			(365,975	)		(368,249	)		(353,864	)
Tangible book value (Non-GAAP)	[a]	$	1,017,294		$	1,034,635		$	918,117

Ending number of common shares outstanding (GAAP)	[b]		56,895,981			56,872,241			55,244,119

Tangible book value per common share (Non-GAAP)	[a÷b]	$	17.88		$	18.19		$	16.62

Tangible Assets, Tangible Common Equity, and Tangible Common Equity to Tangible Assets

		As of
(dollars in thousands)		December 31, 2024			September 30, 2024			December 31, 2023
Total assets (GAAP)		$	12,046,722		$	11,986,839		$	12,283,415
Goodwill and other intangible assets, net (GAAP)			(365,975	)		(368,249	)		(353,864	)
Tax effect of other intangible assets¹			6,379			7,178			6,888
Tangible assets (Non-GAAP)²	[a]	$	11,687,126		$	11,625,768		$	11,936,439

Total stockholders’ equity (GAAP)		$	1,383,269		$	1,402,884		$	1,271,981
Goodwill and other intangible assets, net (GAAP)			(365,975	)		(368,249	)		(353,864	)
Tax effect of other intangible assets¹			6,379			7,178			6,888
Tangible common equity (Non-GAAP)²	[b]	$	1,023,673		$	1,041,813		$	925,005

Tangible common equity to tangible assets (Non-GAAP)²	[b÷a]		8.76	%		8.96	%		7.75	%

___________________________________________

Net of estimated deferred tax liability, calculated using an estimated tax rate of 26.73% as of December 31, 2024, and 28% as of September 30, 2024, and December 31, 2023.
Tax-effected measure.

Core Deposits and Related Ratios

		As of
(dollars in thousands)		December 31, 2024			September 30, 2024			December 31, 2023
Portfolio loans (GAAP)	[a]	$	7,697,087		$	7,809,097		$	7,651,034

Total deposits (GAAP)	[b]	$	9,982,490		$	9,943,241		$	10,291,156
Brokered deposits, excluding brokered time deposits of $250,000 or more			(13,090	)		(13,089	)		(6,001	)
Time deposits of $250,000 or more			(334,503	)		(338,808	)		(386,286	)
Core deposits (Non-GAAP)	[c]	$	9,634,897		$	9,591,344		$	9,898,869

RATIOS
Core deposits to total deposits (Non-GAAP)	[c÷b]		96.52	%		96.46	%		96.19	%
Portfolio loans to core deposits (Non-GAAP)	[a÷c]		79.89	%		81.42	%		77.29	%

FORWARD-LOOKING STATEMENTS

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

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

Additional information concerning Busey and its business, including additional factors that could materially affect Busey’s financial results, is included in Busey’s filings with the Securities and Exchange Commission.

END NOTES

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

The MIL Network –

January 29, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

_____________________

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

The MIL Network –

January 29, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

For further information, please contact:

Mariana Bermudez
Telephone: 604-685-9316

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

The MIL Network –

January 29, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

About Fairfax India

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

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

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

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

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

The MIL Network –

January 29, 2025

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

Source: German Technology & Engineering Corporation (GTEC)

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

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

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

Wide Range Of Services

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

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

Trade Disputes And Sanctions Weigh On Relations

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

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

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

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

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

MIL OSI – Submitted News –

January 29, 2025

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

Source: Finbold

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

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

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

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

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

DeepSeek’s popularity also emerges outside Google Trends

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

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

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

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

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

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

MIL OSI – Submitted News –

January 29, 2025

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

Source: Ia Ara Aotearoa Transporting New Zealand

National road freight association Ia Ara Aotearoa Transporting New Zealand has welcomed today’s Government announcement reversing speed limit reductions on 38 sections of the state highway network, saying the changes will reduce journey times and help avoid dangerous behaviour by frustrated drivers.

Speed limits on 49 further sections of state highway will be put out for public consultation to allows local communities to have their say on whether to revert to previous speed limits.

Chief Executive Dom Kalasih says the changes reflect the Government’s more balanced approach to speed management, taking a cost-benefit approach to speed limit setting.

“Our members have been frustrated by blanket speed reductions around the country over the past four years that did not adequately consider the impact of increased journey times, dangerous overtaking and tailgating by frustrated drivers, and increased freight costs for businesses and consumers and we’ve made these points consistently to road controlling authorities across the country.

“We’re pleased to see the programme of speed limit reversals getting underway, as directed by the Government’s Setting of Speed Limits 2024 Land Transport Rule.”

Kalasih says that while appropriate speed limits play a vital role in road safety, they need to be considered alongside good roading design and effective enforcement.

“It is crucial that Government continues to invest in adequate maintenance, roading improvements, and effective enforcement of RIDS (restraints, impairment, distraction and speed).

“Speed limit setting is only one key element of supporting road safety and reducing our road toll.”

About Ia Ara Aotearoa Transporting New Zealand

Ia Ara Aotearoa Transporting New Zealand is the peak national membership association representing the road freight transport industry. Our members operate urban, rural and inter- regional commercial freight transport services throughout the country.

Road is the dominant freight mode in New Zealand, transporting 92.8% of the freight task on a tonnage basis, and 75.1% on a tonne-km basis. The road freight transport industry employs over 34,000 people across more than 4700 businesses, with an annual turnover of $6 billion.

MIL OSI New Zealand News –

January 29, 2025

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

Source: Reserve Bank of New Zealand

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

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

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

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

Key insights from the speech include:

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

Background notes

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

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

More information

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

MIL OSI New Zealand News –

January 29, 2025

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

Source: Office of United States Attorneys

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

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

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

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

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

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

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

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

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

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

MIL Security OSI –

January 29, 2025

MIL-OSI Security: Lame Deer woman admits assault charges in rollover crash that injured two passengers on Northern Cheyenne Indian Reservation

Source: Office of United States Attorneys

BILLINGS — A Lame Deer woman today admitted to assault charges after two passengers were seriously injured when the vehicle she was driving rolled on the Northern Cheyenne Indian Reservation, U.S. Attorney Jesse Laslovich said.

The defendant, Kendra Carol Cook, 34, pleaded guilty to two counts of assault resulting in serious bodily injury. Cook faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release on each count.

U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Cook was detained pending further proceedings.

In court documents, the government alleged that on May 18, 2023, the FBI received a report that a car driven by Cook had rolled north of Lame Deer, injuring Cook and her two passengers. Cook was under the influence of alcohol at the time. A witness reported finding two women who were injured. The women told her that Cook had left the scene. One of the passengers, Jane Doe 2, was in the back seat, while another passenger, Jane Doe 1, was in the front seat. Cook told Doe 2 that she was drinking whiskey before picking her up. They bought alcohol and were drinking it while driving to Lame Deer. Cook was swerving all over the road, and, in Doe 2’s opinion, intentionally trying to wreck. Cook accelerated and turned the wheel, causing the car to go into a ditch and start flipping. Doe 1 estimated Cook was driving approximately 80 miles and hour and slowed to approximately 60 mph when they started swerving. Doe 1 denied there was any fighting or interfering with Cook. Cook acknowledged being under the influence of alcohol at the time of the wreck and claimed she and the passengers were fighting over the alcohol. Both victims suffered fractures and other serious injuries. The rollover occurred in a 35-mph speed zone.

MIL Security OSI –

January 29, 2025

MIL-OSI Security: Marshall Islands, military leaders strengthen partnership, defense

Source: United States INDO PACIFIC COMMAND

MAJURO, Marshall, Islands –

U.S. Indo-Pacific Command’s senior military official to the Republic of the Marshall Islands (RMI) met with local leaders in Majuro to discuss defense and security, Jan 23.

Commander, Joint Task Force-Micronesia (JTF-M) U.S. Navy Rear Adm. Greg Huffman spoke with representatives from the U.S. Embassy and RMI National Security Director Chris deBrum during the visit.

The U.S. has a longstanding relationship with the RMI and, continued under the recently renewed Compact of Free Association, is responsible for its defense. Established in June 2024, JTF-M’s mission is to synchronize military operations and activities across all domains from seabed to space to promote regional security and stability.

“I am thankful for the opportunity to build upon the partnership we share with the people of the Marshall Islands,” Huffman said. “We have the common goal of maintaining peace and security in the region and will continue to work together to grow our collective maritime domain awareness and strengthen our defense here and across all of Micronesia.”

Huffman shared his commitment to open lines of communication with RMI’s leadership and community about potential military activities and future investments. He also underscored the value of a common operating picture to counter illegal activity in the region.

“We look forward to partnering more closely with INDOPACOM to address security concerns,” deBrum said. “We have overlapping issues so to be able to share resources is critical to our mutual success.”

Huffman met with members of the Marshall Islands Marine Resources Authority (MIMRA) at their headquarters in Majuro, where the MIMRA team provided a capabilities brief. He also met with Commander, U.S. Army Garrison-Kwajalein Atoll Col. Andrew Morgan and Royal Australian Navy Lt. Cmdr. Lachlan Sommerville, maritime security advisor, for updates in their respective areas of responsibility.

Dedicated to promoting regional stability, JTF-M performs Homeland Defense, Defense Support to Civil Authorities, and Foreign Humanitarian Assistance through a whole of government approach within its assigned joint operations area.

For more information about JTF-M, visit https://www.pacom.mil/JTF-Micronesia/

MIL Security OSI –

January 29, 2025

MIL-OSI USA: ICYMI—Hagerty Joins America’s Newsroom on Fox News to Discuss Trump’s Foreign Policy Wins, Cabinet Nominations

US Senate News:

Source: United States Senator for Tennessee Bill Hagerty
WASHINGTON—United States Senator Bill Hagerty (R-TN), a member of the Senate Appropriations, Banking, and Foreign Relations Committees and former U.S. Ambassador to Japan, today joined America’s Newsroom on Fox News to discuss President Donald Trump’s foreign policy wins during his first week in office, along with the need to confirm his cabinet nominees.

*Click the photo above or here to watch*
Partial Transcript
Hagerty on the need for reciprocity in tariff deals: “If you think about the tariff situation worldwide, the United States has been treated unfairly for years. President Trump has constantly and consistently talked about reciprocity. This goes all the way back to World War II. We created very favorable terms of trade for nations in Europe, nations like Japan, whose economies have been devastated. We should have time limited [the trade deals]. We should have put some sort of GDP-per-capita limit on that. Because right now, the United States has the lowest tariffs, on a trade weighted basis, of any major economy. Other countries have been taking advantage of us. President Trump sees this, and access to our economy is a privilege, not a right. You saw what happened in Colombia; he knows how to use leverage. He knows how to, essentially, let them know that he’s not going to tolerate bad behavior. And if countries like Colombia don’t want to cooperate with us, they’re not going to have access to our markets.”
Hagerty on pausing funding to other nations within the State Department: “These are all very legitimate and reasonable questions to ask, Martha. There’s a lot of pearl clutching going on in Washington right now. But I can tell you back in 2016, 2017, the State Department acted as quickly as they could to shovel money out the door to NGOs, to the UN, to agencies that didn’t have the U.S.’ best interest at heart. I think it’s entirely appropriate that Secretary [Marco] Rubio put a pause on all of this. I sent a letter to every agency head in the United States government, letting them know, line and verse, how they would violate U.S. law if they were to ‘reprogram funds’ at the very end. We’re going to get a report on all of that here in the next couple of weeks. So, I think this is something that’s entirely legitimate. It’s something that should happen, and we need to make certain that taxpayer [dollars] are being used for things that advance America’s interest.”
Hagerty on the state of Trump’s cabinet nominees: “I actually feel very good about how the nominees are moving through the process. You think about Senator [John] Thune, he’s been extremely diligent, in terms of setting up a process that will get our nominees confirmed as rapidly as possible. The Democrats have done everything they can to slow us down, but Senator Thune, our leader, has done a terrific job of making sure that we’re moving a pace. I feel good about our nominees. [Secretary] Pete Hegseth certainly had everything, including the kitchen sink, thrown at him, and he navigated the process very well. And I think as people got to know him, got to hear from him, they got to realize they had a very smart individual there who is very capable. I expect the same from the other nominees, and that process continues to pace here this week.”
Hagerty on the need to confirm Trump’s cabinet nominees: “President Trump is entitled to his nominees. I think you’ve got a tremendous number of challenges that our nation is facing right now. President Trump opened a very large tent as he came into office, and he selected people that he thinks will help him achieve his goals, achieve the promises that he made to the American public. So, I think, on the balance, Republicans should, certainly, defer to President Trump. Everybody’s entitled to their own opinion—obviously, you’ve seen people vote in different ways from me—but, on the whole, I think people should give President Trump the benefit of the doubt.”

MIL OSI USA News –

January 29, 2025

MIL-OSI USA: Kaine, Young, Reed & Marshall Introduce Bipartisan Bill to Support Mental Health Resources for Health Care Providers

US Senate News:

Source: United States Senator for Virginia Tim Kaine
WASHINGTON, D.C. – Today, U.S. Senators Tim Kaine (D-VA), a member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, Todd Young (R-IN), Jack Reed (D-RI), and Roger Marshall (R-KS) introduced bipartisan legislation to reauthorize the Dr. Lorna Breen Health Care Provider Protection Act, a comprehensive law Kaine, Young, Reed and Marshall successfully passed in 2022 to help prevent suicide, burnout, and mental and behavioral health conditions among health care professionals. The law has already provided $100 million in funding for mental health care for providers across the country, including $5.6 million in federal funding for Virginia providers at UVA Health, Virginia Commonwealth University, and George Mason University. But provisions of the law that made this funding possible expired last year. The Dr. Lorna Breen Health Care Provider Protection Reauthorization Act would reauthorize these grant programs for five years.
“Dr. Lorna Breen was a physician from Charlottesville who tragically died by suicide after working on the frontlines of the COVID-19 pandemic,” said Kaine. “In 2022, I was honored to work with her family and Senators Young, Reed and Marshall to pass legislation in her honor to help ensure health care workers have access to the mental health support they need. I urge all of my colleagues on both sides of the aisle to join us in standing with our health care heroes by reauthorizing that law, so it can continue to support our healers.”
“Our frontline workers put their own health on the line every day to serve our communities in Indiana and across the country,” said Young. “Congress must act to reauthorize this important program to provide our health care workforce with needed support to prevent suicide and promote mental and behavioral health.”
“Doctors, nurses, and health aids take care of patients who need them. The federal government must do its part to ensure the mental and physical health needs of our health care workforce are taken care of too,” said Reed.
“Our health care providers dedicate their lives to taking care of patients, sometimes, this comes at their own expense,” said Marshall. “We must ensure we’re giving them the support they need when it comes to their mental health. I’m proud to join Senators Kaine and Young in leading the reauthorization of this very important program which helps provide access to mental and behavioral health resources to our health care professionals.”
“Health workers are at the heart of every life saved and ever patient cared for, yet the U.S. health care system is straining our workforce and perpetuating the alarming levels of burnout and poor mental health they are experiencing,” said Corey Feist, JD, MBA, co-founder and CEO of the Dr. Lorna Breen Heroes’ Foundation, which leads the ALL IN: Wellbeing First for Healthcare coalition. “We are immensely grateful to Senators Kaine, Young, Reed, and Marshall for their steadfast commitment to reauthorize and fund the landmark Dr. Lorna Breen Health Care Provider Protection Act and build upon it to address the primary driver of health workers’ burnout—administrative burden.”
Specifically, Dr. Lorna Breen Health Care Provider Protection Reauthorization Act would:
Reauthorize a grant program for health care organizations and professional associations for employee education on strategies to reduce burnout, peer-support programming, and mental and behavioral health treatment for five years. Communities with a shortage of health care workers, rural communities, and those experiencing burnout due to administrative burdens, such as lengthy paperwork, will be prioritized.
Reauthorize a grant program for health profession schools or other institutions to train health care workers and students in strategies to prevent suicide, burnout, mental health conditions, and substance use disorders for five years.
Reauthorize a national evidence-based education and awareness campaign. Currently, the campaign provides hospital and health system leaders with evidence-informed solutions to reduce health care worker burnout. Reauthorization will provide resources for the campaign to continue and expand beyond its current scope.
In addition to Kaine, Young, Reed and Marshall, the legislation is cosponsored by U.S. Senators Shelley Moore Capito (R-WV), Lisa Murkowski (R-AK), Jeanne Shaheen (D-NH), and Mark R. Warner (D-VA).
Full text of the bill is available here.

MIL OSI USA News –

January 29, 2025

MIL-OSI New Zealand: 29 January 2025 A new home for a new year The new 29 one-bedroom apartment social housing development in Nelson is ready to welcome Kāinga Ora customers.

Source: New Zealand Government Kainga Ora

Local iwi this week blessed the new three-storey development in Waimea Road in Nelson South, which was built by local developer JV Properties Limited. Neighbours and other local stakeholders also had the chance to look through the homes before customers move in.

Julia Campbell, Regional Director Nelson, Marlborough and West Coast, says people from the social housing register who have been waiting for a one-bedroom home will begin moving into the new development from early February. Some of the people moving in will now have a permanent place to call home after living in transitional housing for some time.

This, and other trees, that were already on the property were retained as part of the new development.

“Most of the people who are on the social housing register and in need of a place to live in Nelson are waiting for a one-bedroom home, so the completion of this development is a significant milestone,” Ms Campbell says.

“Our specialist placement team has thought very carefully about who will live in these homes. During pre-housing conversations, we have spoken to prospective customers about their connections to the community and any support they may need to live well in their new home in the future.

“Our team will continue to support everyone who will be living there to settle in well over the coming weeks and months. Local transitional housing providers will also continue to work with the people who are moving in from transitional housing,” she says.

Construction of the new development began in October 2023. Kāinga Ora has an agreement with JV Properties Limited to purchase the homes upon completion. It expects to settle on the purchase of the homes this week.

There are currently another 36 Kāinga Ora homes under construction in Nelson Tasman, including six homes in Oxford Street in Richmond and 26 new homes in Neale Avenue in Stoke, all of which Kāinga Ora has agreed to purchase from developers when they are completed. Four homes are also under redevelopment in Boundary Road in Nelson.

See our Nelson region for more information.

The new Waimea Road homes and a communal outdoor area

Page updated: 29 January 2025

MIL OSI New Zealand News –

January 29, 2025

MIL-OSI: Hanmi Reports 2024 Fourth Quarter and Full Year Results

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, Jan. 28, 2025 (GLOBE NEWSWIRE) — Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the fourth quarter of 2024 and full year.

Net income for the fourth quarter of 2024 was $17.7 million, or $0.58 per diluted share, compared with $14.9 million, or $0.49 per diluted share, for the third quarter of 2024. The return on average assets for the fourth quarter of 2024 was 0.93% and the return on average equity was 8.89%, compared with a return on average assets of 0.79% and a return on average equity of 7.55% for the third quarter of 2024.

For the full year of 2024, net income was $62.2 million, or $2.05 per diluted share, compared with $80.0 million, or $2.62 per diluted share, for 2023. The return on average assets for 2024 was 0.83% and the return on average equity was 7.97%.

CEO Commentary
“Hanmi achieved exceptional results in the fourth quarter, delivering our best quarterly performance of the year and closing 2024 with strong momentum,” said Bonnie Lee, President and Chief Executive Officer. “Our team’s outstanding execution generated significant earnings growth fueled by our net interest margin expansion of 17 basis points to 2.91%, disciplined expense management, and vigilant credit administration. These robust results highlight the strength of our relationship-driven banking model.”

“For the full year, we had a number of key accomplishments to advance our growth and diversification strategy. We delivered 16% growth in our C&I loan portfolio, driven primarily by the strong contribution from our Corporate Korea initiative. Noninterest-bearing demand deposits grew by 5% and now represent 33% of our total deposits. Finally, through our proactive monitoring of the portfolio and our successful resolution efforts, we further improved asset quality with nonperforming assets as a percentage of total assets decreasing to 0.19%.”

“With our strong capital foundation, we are well positioned to execute on our growth strategy. Our performance is the result of our team’s unwavering dedication to serving our customers and the communities in which we operate. I want to thank each of them for their continued commitment to deliver long-term value for our shareholders,” concluded Lee.

Fourth Quarter 2024 Highlights:

Fourth quarter net income was $17.7 million, or $0.58 per diluted share, up 18.8% from $14.9 million, or $0.49 per diluted share for the third quarter of 2024. The increase reflects a $3.4 million, or 6.8%, increase in net interest income, primarily due to a decrease in interest expense on deposits.
Loans receivable were $6.25 billion at December 31, 2024, essentially unchanged from the end of the third quarter of 2024; loan production for the fourth quarter was $339.0 million, with a weighted average interest rate of 7.37%, compared with loan production for the third quarter of $347.8 million, with a weighted average interest rate of 7.92%.
Deposits were $6.44 billion at December 31, 2024, up 0.5% from the end of the third quarter of 2024; noninterest-bearing demand deposits were 32.6% of total deposits. During the quarter, noninterest-bearing demand deposits grew 2.2%, while time deposits declined 2.0% from the prior quarter.
Net interest income for the fourth quarter was $53.4 million, up 6.8% from the third quarter of 2024. Net interest margin (taxable equivalent) increased 17 basis points to 2.91%; the average yield on loans declined three basis points to 5.97%, while the cost of interest-bearing deposits fell 31 basis points to 3.96%.

Credit loss expense for the fourth quarter was $0.9 million, a decrease from $2.3 million for the prior quarter. The allowance for credit losses increased $1.0 million to $70.1 million at December 31, 2024, or 1.12% of loans. For the fourth quarter, net loan recoveries were $0.1 million.
Asset quality remained strong, as nonperforming loans declined by 7.9% to $14.3 million, or 0.23% of loans, which included pay-offs of $1.8 million, while criticized loans increased to $165.3 million, as special mention loans increased to $139.6 million and classified loans fell to $25.7 million.

For more information about Hanmi, please see the Q4 2024 Investor Update (and Supplemental Financial Information), which is available on the Bank’s website at www.hanmi.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov. Also, please refer to “Non-GAAP Financial Measures” herein for further details of the presentation of certain non-GAAP financial measures.

Quarterly Highlights
(Dollars in thousands, except per share data)

	As of or for the Three Months Ended																Amount Change
	December 31,			September 30,				June 30,			March 31,			December 31,			Q4-24			Q4-24
	2024				2024			2024			2024			2023			vs. Q3-24			vs. Q4-23

Net income	$	17,695			$	14,892		$	14,451		$	15,164		$	18,633		$	2,803		$	(938	)
Net income per diluted common share	$	0.58			$	0.49		$	0.48		$	0.50		$	0.61		$	0.09		$	(0.03	)

Assets	$	7,677,925			$	7,712,299		$	7,586,347		$	7,512,046		$	7,570,341		$	(34,374	)	$	107,584
Loans receivable	$	6,251,377			$	6,257,744		$	6,176,359		$	6,177,840		$	6,182,434		$	(6,367	)	$	68,943
Deposits	$	6,435,776			$	6,403,221		$	6,329,340		$	6,376,060		$	6,280,574		$	32,555		$	155,202

Return on average assets		0.93	%			0.79	%		0.77	%		0.81	%		0.99	%		0.14			-0.06
Return on average stockholders’ equity		8.89	%			7.55	%		7.50	%		7.90	%		9.70	%		1.34			-0.81

Net interest margin		2.91	%			2.74	%		2.69	%		2.78	%		2.92	%		0.17			-0.01
Efficiency ratio ⁽¹⁾		56.79	%			59.98	%		62.24	%		62.42	%		58.86	%		-3.19			-2.07

Tangible common equity to tangible assets ⁽²⁾		9.41	%			9.42	%		9.19	%		9.23	%		9.14	%		-0.01			0.27
Tangible common equity per common share ⁽²⁾	$	23.88			$	24.03		$	22.99		$	22.86		$	22.75			-0.15			1.14


⁽¹⁾Noninterest expense divided by net interest income plus noninterest income.
⁽²⁾Refer to “Non-GAAP Financial Measures” for further details.

Results of Operations
Net interest income for the fourth quarter was $53.4 million, up 6.8% from $50.1 million for the third quarter of 2024. The increase was primarily due to a decrease in deposit interest expense. The decrease in deposit interest expense was primarily a result of decreases in deposit rates and the average balances of interest-bearing deposits, coupled with a 3.1% increase in the average balance of noninterest-bearing demand deposits. The rate on deposits for the fourth quarter decreased 31 basis points to 3.96%, from 4.27% for the third quarter of 2024. The average balance of interest-bearing deposits decreased to $4.36 billion for the fourth quarter of 2024, from $4.40 billion for the third quarter. The average balance of noninterest-bearing deposits for the fourth quarter increased to $1.97 billion, from $1.91 billion for the third quarter of 2024. Net interest margin (taxable equivalent) for the fourth quarter was 2.91%, up 17 basis points from 2.74% for the third quarter of 2024.

Net interest income was $202.8 million for the full year of 2024 compared with $221.3 million for 2023, a decline of 8.4%. The decrease reflected higher interest rates during 2024 compared with 2023, including an increase in the cost of interest-bearing deposits, partially offset by an increase in interest-earning asset yields. The cost of interest-bearing deposits for 2024 year increased 81 basis points to 4.16% from 3.35% for 2023. The yield on average interest-earning assets for 2024 increased 31 basis points to 5.46% from 5.15% for 2023. The average balance of interest-bearing deposits for 2024 increased to $4.39 billion from $4.02 billion for 2023. The average balance of interest-earning assets for 2024 year increased 1.7% to $7.30 billion from $7.18 billion for 2023. The average balance of loans for 2024 year was $6.11 billion, up 2.4% from $5.97 billion for 2023. Net interest margin (taxable-equivalent) for 2024 year was 2.78% compared with 3.08% for 2023. The 30 basis point decrease in the net interest margin reflected the increase in the cost of interest-bearing deposits, partially offset by the increase in average loan yields.

	For the Three Months Ended (in thousands)										Percentage Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,		Q4-24			Q4-24
Net Interest Income	2024		2024		2024		2024		2023		vs. Q3-24			vs. Q4-23

Interest and fees on loans receivable⁽¹⁾	$	91,545	$	92,182	$	90,752	$	91,674	$	89,922		-0.7	%		1.8	%
Interest on securities		5,866		5,523		5,238		4,955		4,583		6.2	%		28.0	%
Dividends on FHLB stock		360		356		357		361		341		1.1	%		5.6	%
Interest on deposits in other banks		2,342		2,356		2,313		2,604		2,337		-0.6	%		0.2	%
Total interest and dividend income	$	100,113	$	100,417	$	98,660	$	99,594	$	97,183		-0.3	%		3.0	%

Interest on deposits		43,406		47,153		46,495		45,638		40,277		-7.9	%		7.8	%
Interest on borrowings		1,634		1,561		1,896		1,655		2,112		4.7	%		-22.6	%
Interest on subordinated debentures		1,624		1,652		1,649		1,646		1,654		-1.7	%		-1.8	%
Total interest expense		46,664		50,366		50,040		48,939		44,043		-7.4	%		6.0	%
Net interest income	$	53,449	$	50,051	$	48,620	$	50,655	$	53,140		6.8	%		0.6	%

⁽¹⁾Includes loans held for sale.

	For the Three Months Ended (in thousands)										Percentage Change
Average Earning Assets and Interest-bearing Liabilities		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Q4-24 vs. Q3-24		Q4-24 vs. Q4-23
Loans receivable ⁽¹⁾	$	6,103,264	$	6,112,324	$	6,089,440	$	6,137,888	$	6,071,644		-0.1	%	0.5	%
Securities		998,313		986,041		979,671		969,520		961,551		1.2	%	3.8	%
FHLB stock		16,385		16,385		16,385		16,385		16,385		0.0	%	0.0	%
Interest-bearing deposits in other banks		204,408		183,027		180,177		201,724		181,140		11.7	%	12.8	%
Average interest-earning assets	$	7,322,370	$	7,297,777	$	7,265,673	$	7,325,517	$	7,230,720		0.3	%	1.3	%

Demand: interest-bearing	$	79,784	$	83,647	$	85,443	$	86,401	$	86,679		-4.6	%	-8.0	%
Money market and savings		1,934,540		1,885,799		1,845,870		1,815,085		1,669,973		2.6	%	15.8	%
Time deposits		2,346,363		2,427,737		2,453,154		2,507,830		2,417,803		-3.4	%	-3.0	%
Average interest-bearing deposits		4,360,687		4,397,183		4,384,467		4,409,316		4,174,455		-0.8	%	4.5	%
Borrowings		141,604		143,479		169,525		162,418		205,951		-1.3	%	-31.2	%
Subordinated debentures		130,567		130,403		130,239		130,088		129,933		0.1	%	0.5	%
Average interest-bearing liabilities	$	4,632,858	$	4,671,065	$	4,684,231	$	4,701,822	$	4,510,339		-0.8	%	2.7	%

Average Noninterest Bearing Deposits
Demand deposits – noninterest bearing	$	1,967,789	$	1,908,833	$	1,883,765	$	1,921,189	$	2,025,212		3.1	%	-2.8	%

⁽¹⁾Includes loans held for sale.

	For the Three Months Ended															Yield/Rate Change
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Q4-24		Q4-24
Average Yields and Rates	2024			2024			2024			2024			2023			vs. Q3-24		vs. Q4-23
Loans receivable⁽¹⁾		5.97	%		6.00	%		5.99	%		6.00	%		5.88	%		-0.03		0.09
Securities ⁽²⁾		2.38	%		2.27	%		2.17	%		2.07	%		1.93	%		0.11		0.45
FHLB stock		8.75	%		8.65	%		8.77	%		8.87	%		8.25	%		0.10		0.50
Interest-bearing deposits in other banks		4.56	%		5.12	%		5.16	%		5.19	%		5.12	%		-0.56		-0.56
Interest-earning assets		5.45	%		5.48	%		5.46	%		5.47	%		5.34	%		-0.03		0.11

Interest-bearing deposits		3.96	%		4.27	%		4.27	%		4.16	%		3.83	%		-0.31		0.13
Borrowings		4.59	%		4.33	%		4.50	%		4.10	%		4.07	%		0.26		0.52
Subordinated debentures		4.97	%		5.07	%		5.07	%		5.06	%		5.09	%		-0.10		-0.12
Interest-bearing liabilities		4.01	%		4.29	%		4.30	%		4.19	%		3.88	%		-0.28		0.13

Net interest margin (taxable equivalent basis)		2.91	%		2.74	%		2.69	%		2.78	%		2.92	%		0.17		-0.01

Cost of deposits		2.73	%		2.97	%		2.98	%		2.90	%		2.58	%		-0.24		0.15

⁽¹⁾Includes loans held for sale.
⁽²⁾Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.

Credit loss expense for the fourth quarter was $0.9 million, compared with $2.3 million for the third quarter of 2024. Fourth quarter credit loss expense included a $0.9 million credit loss expense for loan losses. Fourth quarter net loan recoveries were $0.1 million, compared to third quarter net loan charge-offs of $0.9 million.

Credit loss expense was $4.4 million for 2024, compared with $4.3 million for 2023. The credit loss expense for 2024 was comprised of a $4.8 million credit loss expense for loan losses and a $0.4 million credit loss expense recovery for off-balance sheet items. 2023 credit loss expense was comprised of a $4.9 million credit loss expense for loan losses and a $0.6 million credit loss expense recovery for off-balance sheet items.

Noninterest income for the fourth quarter decreased $1.0 million, or 12.8%, to $7.4 million, from $8.4 million for the third quarter of 2024. The decrease was primarily due to a $0.9 million gain from the sale and leaseback of a branch property included in third quarter noninterest income. Gains on sales of SBA loans were $1.4 million for the fourth quarter of 2024, compared with $1.5 million for the third quarter of 2024. The volume of SBA loans sold for the fourth quarter decreased to $21.6 million, from $23.0 million for the third quarter of 2024, while trade premiums were 8.53% for the fourth quarter of 2024, slightly lower than 8.54% for the third quarter. Mortgage loans sold for the fourth quarter were $18.3 million, with a premium of 1.96%, compared with $20.9 million and 2.32% for the third quarter. Gains on mortgage loans sold were $0.3 million for both quarters.

Noninterest income decreased $2.6 million, or 7.6%, to $31.6 million for 2024, from $34.2 million for 2023, primarily due to a $4.0 million gain on the sale-and-leaseback of a branch property in 2023 and a $0.8 million decrease in service charges on deposits. Those items were partially offset by a $1.5 million gain on the sale of mortgage loans and a $0.9 million gain from the sale and leaseback of a branch property in 2024. The volume of SBA loans sold in 2024 declined to $93.7 million, from $100.5 million for 2023, while trade premiums increased to 8.18% for 2024, from 7.12% for 2023.

	For the Three Months Ended (in thousands)											Percentage Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,			Q4-24			Q4-24
Noninterest Income	2024		2024		2024		2024		2023			vs. Q3-24			vs. Q4-23
Service charges on deposit accounts	$	2,192	$	2,311	$	2,429	$	2,450	$	2,391			-5.1	%		-8.3	%
Trade finance and other service charges and fees		1,364		1,254		1,277		1,414		1,245			8.8	%		9.6	%
Servicing income		668		817		796		712		772			-18.2	%		-13.5	%
Bank-owned life insurance income (expense)		316		320		638		304		(29	)		-1.3	%	N/M
All other operating income		1,037		1,008		908		928		853			2.9	%		21.6	%
Service charges, fees & other		5,577		5,710		6,048		5,808		5,232			-2.3	%		6.6	%

Gain on sale of SBA loans		1,443		1,544		1,644		1,482		1,448			-6.5	%		-0.3	%
Gain on sale of mortgage loans		337		324		365		443		–			4.0	%		0.0	%
Gain on sale of bank premises		–		860		–		–		–			-100.0	%		0.0	%
Total noninterest income	$	7,357	$	8,438	$	8,057	$	7,733	$	6,680			-12.8	%		10.1	%

N/M – Not meaningful.

Noninterest expense for the fourth quarter decreased by $0.6 million to $34.5 million from $35.1 million for the third quarter of 2024. The decrease primarily reflects a $1.6 million gain on the sale of an other real estate owned property. Absent this gain, fourth quarter noninterest expense was up 3.1% sequentially, due to increases in advertising and promotion expense and legal fees from collections and business activities. In addition, other operating expense for the fourth quarter included a $0.5 million charge related to an SBA loan acquired in a previous acquisition, while the third quarter included a $0.3 million reimbursement for property taxes. The efficiency ratio for the fourth quarter was 56.8%, compared with 60.0% for the third quarter of 2024.

Noninterest expense increased by $4.8 million, or 3.5%, to $141.3 million for 2024, from $136.5 million for 2023. The increase reflected a $2.0 million, or 2.4%, increase in salaries and benefits, a $1.2 million increase in data processing expense, a $0.7 million increase in professional fees, and a $1.4 million increase in other operating expenses. Decreases of $0.2 million in occupancy and equipment expense and $0.2 million in supplies and communication expense partially offset the increases. The efficiency ratio for 2024 increased to 60.3%, from 53.5% for 2023, primarily due to higher expenses and lower revenue.

	For the Three Months Ended (in thousands)											Percentage Change
	Dec 31,			Sep 30,		Jun 30,		Mar 31,		Dec 31,		Q4-24		Q4-24
	2024			2024		2024		2024		2023		vs. Q3-24		vs. Q4-23
Noninterest Expense
Salaries and employee benefits	$	20,498		$	20,851	$	20,434	$	21,585	$	20,062	-1.7	%	2.2	%
Occupancy and equipment		4,503			4,499		4,348		4,537		4,604	0.1	%	-2.2	%
Data processing		3,800			3,839		3,686		3,551		3,487	-1.0	%	9.0	%
Professional fees		1,821			1,492		1,749		1,893		1,977	22.1	%	-7.9	%
Supplies and communication		551			538		570		601		613	2.4	%	-10.1	%
Advertising and promotion		821			631		669		907		990	30.1	%	-17.1	%
All other operating expenses		3,847			2,875		3,251		3,160		3,252	33.8	%	18.3	%
Subtotal		35,841			34,725		34,707		36,234		34,985	3.2	%	2.4	%

Branch consolidation expense		–			–		301		–		–	0.0	%	0.0	%
Other real estate owned (income) expense		(1,588	)		77		6		22		15	N/M		N/M
Repossessed personal property expense		281			278		262		189		211	1.1	%	33.2	%
Total noninterest expense	$	34,534		$	35,080	$	35,276	$	36,445	$	35,211	-1.6	%	-1.9	%

N/M – Not meaningful.

Hanmi recorded a provision for income taxes of $7.6 million for the fourth quarter of 2024, compared with $6.2 million for the third quarter of 2024, representing an effective tax rate of 30.1% and 29.5%, respectively. The effective tax rates for 2024 and 2023 years were 29.8% and 30.1%, respectively.

Financial Position
Total assets at December 31, 2024, decreased 0.4%, or $33.7 million, to $7.68 billion from $7.71 billion at September 30, 2024. The decrease reflected a $45.8 million decrease in loans held-for-sale and a $6.4 million decrease in loans, offset partially by a $17.0 million increase in cash and due from banks. From December 31, 2023, total assets increased 1.4%, or $108.2 million. This year-over-year increase reflected a 1.1%, or $68.9 million, growth in loans receivable, and a 4.6%, or $40.1 million increase in securities, supported by a 2.5%, or $155.2 million increase in deposits.

Loans receivable, before allowance for credit losses, were $6.25 billion at December 31, 2024, down from $6.26 billion at September 30, 2024.

Loans held-for-sale were $8.6 million at December 31, 2024, down from $54.3 million at September 30, 2024. At the end of the fourth quarter, loans held-for-sale consisted of the guaranteed portion of SBA 7(a) loans. The prior quarter included $18.3 million of residential mortgage loans and a $27.2 million nonaccrual loan, all of which were sold in the fourth quarter.

	As of (in thousands)										Percentage Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,		Q4-24			Q4-24
	2024		2024		2024		2024		2023		vs. Q3-24			vs. Q4-23
Loan Portfolio
Commercial real estate loans	$	3,949,622	$	3,932,088	$	3,888,505	$	3,878,677	$	3,889,739		0.4	%	1.5	%
Residential/consumer loans		951,302		939,285		954,209		970,362		962,661		1.3	%	-1.2	%
Commercial and industrial loans		863,431		879,092		802,372		774,851		747,819		-1.8	%	15.5	%
Equipment finance		487,022		507,279		531,273		553,950		582,215		-4.0	%	-16.4	%
Loans receivable		6,251,377		6,257,744		6,176,359		6,177,840		6,182,434		-0.1	%	1.1	%
Loans held for sale		8,579		54,336		10,467		3,999		12,013		-84.2	%	-28.6	%
Total	$	6,259,956	$	6,312,080	$	6,186,826	$	6,181,839	$	6,194,447		-0.8	%	1.1	%

	As of
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,
	2024		2024		2024		2024		2023
Composition of Loan Portfolio
Commercial real estate loans	63.1	%	62.3	%	62.9	%	62.7	%	62.8	%
Residential/consumer loans	15.2	%	14.9	%	15.4	%	15.7	%	15.5	%
Commercial and industrial loans	13.8	%	13.9	%	13.0	%	12.5	%	12.1	%
Equipment finance	7.8	%	8.0	%	8.5	%	9.0	%	9.4	%
Loans receivable	99.9	%	99.1	%	99.8	%	99.9	%	99.8	%
Loans held for sale	0.1	%	0.9	%	0.2	%	0.1	%	0.2	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

New loan production was $339.0 million for the fourth quarter of 2024 at an average rate of 7.37%, while payoffs were $137.9 million during the quarter at an average rate of 6.78%.

Commercial real estate loan production for the fourth quarter of 2024 was $146.7 million. Commercial and industrial loan production was $60.2 million, SBA loan production was $49.7 million, equipment finance production was $42.2 million, and residential mortgage loan production was $40.2 million.

New loan production for 2024 was $1.20 billion, a decrease of 7.4%, or $96.0 million, from $1.29 billion for the full year 2023. The average rate for new loan production for 2024 was 7.87% compared with 7.66% for 2023. Payoffs for 2024 were $450.2 million with an average rate of 7.34% compared with $386.0 million and 7.13% for 2023.

	For the Three Months Ended (in thousands)
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
	2024			2024			2024			2024			2023
New Loan Production
Commercial real estate loans	$	146,716		$	110,246		$	87,632		$	60,085		$	178,157
Commercial and industrial loans		60,159			105,086			59,007			50,789			52,079
SBA loans		49,740			51,616			54,486			30,817			48,432
Equipment finance		42,168			40,066			42,594			39,155			57,334
Residential/consumer loans		40,225			40,758			30,194			53,115			53,465
subtotal		339,008			347,772			273,913			233,961			389,467


Payoffs		(137,932	)		(77,603	)		(148,400	)		(86,250	)		(77,961	)
Amortization		(60,583	)		(151,674	)		(83,640	)		(90,711	)		(106,610	)
Loan sales		(67,852	)		(43,868	)		(42,945	)		(55,321	)		(29,861	)
Net line utilization		(75,651	)		9,426			1,929			(4,150	)		(11,609	)
Charge-offs & OREO		(3,356	)		(2,668	)		(2,338	)		(2,123	)		(1,777	)

Loans receivable-beginning balance		6,257,744			6,176,359			6,177,840			6,182,434			6,020,785
Loans receivable-ending balance	$	6,251,377		$	6,257,744		$	6,176,359		$	6,177,840		$	6,182,434

Deposits were $6.44 billion at the end of the fourth quarter of 2024, up $32.6 million, or 0.5%, from $6.40 billion at the end of the prior quarter. Driving the change was a $44.8 million increase in noninterest-bearing demand deposits and a $34.7 million increase in money market and savings deposits, partially offset by a $48.0 million decrease in time deposits. Noninterest-bearing demand deposits represented 32.6% of total deposits at December 31, 2024, and the loan-to-deposit ratio was 97.1%.

	As of (in thousands)										Percentage Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,		Q4-24		Q4-24
	2024		2024		2024		2024		2023		vs. Q3-24		vs. Q4-23
Deposit Portfolio
Demand: noninterest-bearing	$	2,096,634	$	2,051,790	$	1,959,963	$	1,933,060	$	2,003,596	2.2	%	4.6	%
Demand: interest-bearing		80,323		79,287		82,981		87,374		87,452	1.3	%	-8.2	%
Money market and savings		1,933,535		1,898,834		1,834,797		1,859,865		1,734,658	1.8	%	11.5	%
Time deposits		2,325,284		2,373,310		2,451,599		2,495,761		2,454,868	-2.0	%	-5.3	%
Total deposits	$	6,435,776	$	6,403,221	$	6,329,340	$	6,376,060	$	6,280,574	0.5	%	2.5	%

	As of
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,
	2024		2024		2024		2024		2023
Composition of Deposit Portfolio
Demand: noninterest-bearing	32.6	%	32.0	%	31.0	%	30.3	%	31.9	%
Demand: interest-bearing	1.2	%	1.2	%	1.3	%	1.4	%	1.4	%
Money market and savings	30.0	%	29.7	%	29.0	%	29.2	%	27.6	%
Time deposits	36.2	%	37.1	%	38.7	%	39.1	%	39.1	%
Total deposits	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

Stockholders’ equity at December 31, 2024, was $732.2 million, down $4.5 million from $736.7 million at September 30, 2024. The decrease was due to a $14.6 million increase in unrealized after-tax losses on securities available for sale and a $1.0 million increase in unrealized after-tax losses on cash flow hedges, all due to changes in interest rates during the fourth quarter of 2024. Hanmi also repurchased 24,500 shares of common stock, at a cost of $0.6 million, during the quarter at an average share price of $22.91. At December 31, 2024, 1,230,500 shares remain under Hanmi’s share repurchase program. Partially offsetting these decreases was $10.2 million of net income, net of dividends paid, for the fourth quarter. Tangible common stockholders’ equity was $721.1 million, or 9.41% of tangible assets, at December 31, 2024, compared with $725.7 million, or 9.42% of tangible assets at the end of the prior quarter. Please refer to the Non-GAAP Financial Measures section below for more information.

Hanmi and the Bank exceeded minimum regulatory capital requirements, and the Bank continues to exceed the minimum for the “well capitalized” category. At December 31, 2024, Hanmi’s preliminary common equity tier 1 capital ratio was 12.11% and its total risk-based capital ratio was 15.24%, compared with 11.95% and 15.03%, respectively, at the end of the prior quarter.

	As of										Ratio Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,		Q4-24	Q4-24
	2024		2024		2024		2024		2023		vs. Q3-24	vs. Q4-23
Regulatory Capital ratios ⁽¹⁾
Hanmi Financial
Total risk-based capital	15.24	%	15.03	%	15.24	%	15.20	%	14.95	%	0.21	0.29
Tier 1 risk-based capital	12.46	%	12.29	%	12.46	%	12.40	%	12.20	%	0.17	0.26
Common equity tier 1 capital	12.11	%	11.95	%	12.11	%	12.05	%	11.86	%	0.16	0.25
Tier 1 leverage capital ratio	10.63	%	10.56	%	10.51	%	10.36	%	10.37	%	0.07	0.26
Hanmi Bank
Total risk-based capital	14.43	%	14.27	%	14.51	%	14.50	%	14.27	%	0.16	0.16
Tier 1 risk-based capital	13.36	%	13.23	%	13.47	%	13.44	%	13.26	%	0.13	0.10
Common equity tier 1 capital	13.36	%	13.23	%	13.47	%	13.44	%	13.26	%	0.13	0.10
Tier 1 leverage capital ratio	11.46	%	11.43	%	11.41	%	11.29	%	11.32	%	0.03	0.14

⁽¹⁾Preliminary ratios for December 31, 2024

Asset Quality
Loans 30 to 89 days past due and still accruing were 0.30% of loans at the end of the fourth quarter of 2024, compared with 0.24% at the end of the prior quarter.

Criticized loans totaled $165.3 million at December 31, 2024, up from $160.0 million at the end of the third quarter of 2024. The $5.3 million increase resulted from an $8.0 million increase in special mention loans and a $2.7 million decrease in classified loans. The $8.0 million increase in special mention loans included additions of $13.4 million, offset by loan reductions and pay-downs of $3.8 million, upgrades of $1.3 million and downgrades of $0.3 million. The $2.7 million decrease in classified loans resulted from $2.9 million of charge-offs, $2.4 million of payoffs, $1.4 million of upgrades and $1.6 million of amortization and paydowns, offset by loan downgrades of $2.7 million and lease downgrades of $2.9 million.

Nonperforming loans were $14.3 million at December 31, 2024, down from $15.5 million at the end of the prior quarter. The decrease primarily reflects pay-offs of $1.8 million, $1.0 million in loan upgrades, $0.8 million in paydowns, and charge-offs of $2.9 million. Offsetting the decrease were additions of $5.5 million.

Nonperforming assets were $14.4 million at the end of the fourth quarter of 2024, down from $16.3 million at the end of the prior quarter. As a percentage of total assets, nonperforming assets were 0.19% at December 31, 2024, and 0.21% at the end of the prior quarter.

Gross charge-offs for the fourth quarter of 2024 were $3.4 million, compared with $3.8 million for the preceding quarter. Charge-offs included $2.9 million on equipment financing agreements. Recoveries of previously charged-off loans were $3.5 million in the fourth quarter of 2024. As a result, there were $0.1 million of net recoveries for the fourth quarter of 2024, compared to net charge-offs of $0.9 million for the prior quarter. For 2024, net charge-offs were 0.07% of average loans, compared with 0.12% for 2023.

The allowance for credit losses was $70.1 million at December 31, 2024, compared with $69.2 million at September 30, 2024. Specific allowances for loans increased $1.0 million, while the allowance for quantitative and qualitative considerations remained relatively unchanged. The ratio of the allowance for credit losses to loans was 1.12% at December 31, 2024 and 1.11% at September 30, 2024.

	As of or for the Three Months Ended (in thousands)															Amount Change
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Q4-24			Q4-24
	2024			2024			2024			2024			2023			vs. Q3-24			vs. Q4-23
Asset Quality Data and Ratios

Delinquent loans:
Loans, 30 to 89 days past due and still accruing	$	18,454		$	15,027		$	13,844		$	15,839		$	10,263		$	3,427		$	8,191
Delinquent loans to total loans		0.30	%		0.24	%		0.22	%		0.26	%		0.17	%		0.06			0.13

Criticized loans:
Special mention	$	139,612		$	131,575		$	36,921		$	62,317		$	65,314		$	8,037		$	74,298
Classified		25,683			28,377			33,945			23,670			31,367			(2,694	)		(5,684	)
Total criticized loans	$	165,295		$	159,952		$	70,866		$	85,987		$	96,681		$	5,343		$	68,614

Nonperforming assets:
Nonaccrual loans	$	14,274		$	15,248		$	19,245		$	14,025		$	15,474		$	(974	)	$	(1,200	)
Loans 90 days or more past due and still accruing		–			242			–			–			–			(242	)		–
Nonperforming loans*		14,274			15,490			19,245			14,025			15,474			(1,216	)		(1,200	)
Other real estate owned, net		117			772			772			117			117			(655	)		–
Nonperforming assets**	$	14,391		$	16,262		$	20,017		$	14,142		$	15,591		$	(1,871	)	$	(1,200	)

Nonperforming assets to assets*		0.19	%		0.21	%		0.26	%		0.19	%		0.21	%		-0.02			-0.02
Nonperforming loans to total loans		0.23	%		0.25	%		0.31	%		0.23	%		0.25	%		-0.02			-0.02

* Excludes a $27.2 million nonperforming loan held-for-sale as of September 30, 2024.
** Excludes repossessed personal property of $0.6 million, $1.2 million, $1.2 million, $1.3 million, and $1.3 million as of Q4-24, Q3-24, Q2-24, Q1-24, and Q4-23, respectively

	As of or for the Three Months Ended (in thousands)
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
	2024			2024			2024			2024			2023
Allowance for credit losses related to loans:
Balance at beginning of period	$	69,163		$	67,729		$	68,270		$	69,462		$	67,313
Credit loss expense (recovery) on loans		855			2,312			1,248			404			(2,880	)
Net loan (charge-offs) recoveries		129			(878	)		(1,789	)		(1,596	)		5,029
Balance at end of period	$	70,147		$	69,163		$	67,729		$	68,270		$	69,462

Net loan charge-offs (recoveries) to average loans ⁽¹⁾		-0.01	%		0.06	%		0.12	%		0.10	%		-0.33	%
Allowance for credit losses to loans		1.12	%		1.11	%		1.10	%		1.11	%		1.12	%

Allowance for credit losses related to off-balance sheet items:
Balance at beginning of period	$	1,984		$	2,010		$	2,297		$	2,474		$	2,463
Credit loss expense (recovery) on off-balance sheet items		90			(26	)		(287	)		(177	)		11
Balance at end of period	$	2,074		$	1,984		$	2,010		$	2,297		$	2,474

Unused commitments to extend credit	$	782,587		$	739,975		$	795,391		$	792,769		$	813,960

⁽¹⁾Annualized

Corporate Developments
On October 24, 2024, Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2024 fourth quarter of $0.25 per share. Hanmi paid the dividend on November 20, 2024, to stockholders of record as of the close of business on November 4, 2024.

Earnings Conference Call
Hanmi Bank will host its fourth quarter 2024 earnings conference call today, January 28, 2025, at 2:00 p.m. PST (5:00 p.m. EST) to discuss these results. This call will also be webcast. To access the call, please dial 1-877-407-9039 before 2:00 p.m. PST, using access code Hanmi Bank. To listen to the call online, either live or archived, please visit Hanmi’s Investor Relations website at https://investors.hanmi.com/ where it will also be available for replay approximately one hour following the call.

About Hanmi Financial Corporation
Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 31 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.

Forward-Looking Statements
This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:

a failure to maintain adequate levels of capital and liquidity to support our operations;
general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;
volatility and deterioration in the credit and equity markets;
changes in consumer spending, borrowing and savings habits;
availability of capital from private and government sources;
demographic changes;
competition for loans and deposits and failure to attract or retain loans and deposits;
inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding;
our ability to enter new markets successfully and capitalize on growth opportunities;
the current or anticipated impact of military conflict, terrorism or other geopolitical events;
the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;
risks of natural disasters;
legal proceedings and litigation brought against us;
a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
the failure to maintain current technologies;
risks associated with Small Business Administration loans;
failure to attract or retain key employees;
our ability to access cost-effective funding;
the imposition of tariffs or other domestic or international governmental polices impacting the value of the products of our borrowers;
changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
fluctuations in real estate values;
changes in accounting policies and practices;
changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests;
strategic transactions we may enter into;
the adequacy of and changes in the methodology for computing our allowance for credit losses;
our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses;
changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements;
our ability to control expenses; and
cyber security and fraud risks against our information technology and those of our third-party providers and vendors.

In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.

Investor Contacts:
Romolo (Ron) Santarosa
Senior Executive Vice President & Chief Financial Officer
213-427-5636

Lisa Fortuna
Investor Relations
Financial Profiles, Inc.
lfortuna@finprofiles.com
310-622-8251

Hanmi Financial Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)

	December 31,			September 30,			Percentage		December 31,			Percentage
	2024			2024			Change		2023			Change
Assets
Cash and due from banks	$	304,800		$	287,767		5.9	%	$	302,324		0.8	%
Securities available for sale, at fair value		905,798			908,921		-0.3	%		865,739		4.6	%
Loans held for sale, at the lower of cost or fair value		8,579			54,336		-84.2	%		12,013		-28.6	%
Loans receivable, net of allowance for credit losses		6,181,230			6,188,581		-0.1	%		6,112,972		1.1	%
Accrued interest receivable		22,937			21,955		4.5	%		23,371		-1.9	%
Premises and equipment, net		21,404			21,371		0.2	%		21,959		-2.5	%
Customers’ liability on acceptances		1,226			67		N/M			625		96.2	%
Servicing assets		6,457			6,683		-3.4	%		7,070		-8.7	%
Goodwill and other intangible assets, net		11,031			11,031		0.0	%		11,099		-0.6	%
Federal Home Loan Bank (“FHLB”) stock, at cost		16,385			16,385		0.0	%		16,385		0.0	%
Bank-owned life insurance		57,168			56,851		0.6	%		56,335		1.5	%
Prepaid expenses and other assets		140,910			138,351		1.8	%		140,449		0.3	%
Total assets	$	7,677,925		$	7,712,299		-0.4	%	$	7,570,341		1.4	%

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	2,096,634		$	2,051,790		2.2	%	$	2,003,596		4.6	%
Interest-bearing		4,339,142			4,351,431		-0.3	%		4,276,978		1.5	%
Total deposits		6,435,776			6,403,221		0.5	%		6,280,574		2.5	%
Accrued interest payable		34,824			52,613		-33.8	%		39,306		-11.4	%
Bank’s liability on acceptances		1,226			67		N/M			625		96.2	%
Borrowings		262,500			300,000		-12.5	%		325,000		-19.2	%
Subordinated debentures		130,638			130,478		0.1	%		130,012		0.5	%
Accrued expenses and other liabilities		80,787			89,211		-9.4	%		92,933		-13.1	%
Total liabilities		6,945,751			6,975,590		-0.4	%		6,868,450		1.1	%

Stockholders’ equity:
Common stock		34			34		0.0	%		34		0.0	%
Additional paid-in capital		591,069			589,567		0.3	%		586,912		0.7	%
Accumulated other comprehensive income		(70,723	)		(55,140	)	-28.3	%		(71,928	)	1.7	%
Retained earnings		350,869			340,718		3.0	%		319,048		10.0	%
Less treasury stock		(139,075	)		(138,470	)	-0.4	%		(132,175	)	-5.2	%
Total stockholders’ equity		732,174			736,709		-0.6	%		701,891		4.3	%
Total liabilities and stockholders’ equity	$	7,677,925		$	7,712,299		-0.4	%	$	7,570,341		1.4	%

N/M – Not meaningful.

Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except share and per share data)

	Three Months Ended
	December 31,		September 30,		Percentage		December 31,			Percentage
	2024		2024		Change		2023			Change
Interest and dividend income:
Interest and fees on loans receivable	$	91,545	$	92,182	-0.7	%	$	89,922		1.8	%
Interest on securities		5,866		5,523	6.2	%		4,583		28.0	%
Dividends on FHLB stock		360		356	1.1	%		341		5.6	%
Interest on deposits in other banks		2,342		2,356	-0.6	%		2,337		0.2	%
Total interest and dividend income		100,113		100,417	-0.3	%		97,183		3.0	%
Interest expense:
Interest on deposits		43,406		47,153	-7.9	%		40,277		7.8	%
Interest on borrowings		1,634		1,561	4.7	%		2,112		-22.6	%
Interest on subordinated debentures		1,624		1,652	-1.7	%		1,654		-1.8	%
Total interest expense		46,664		50,366	-7.4	%		44,043		6.0	%
Net interest income before credit loss expense		53,449		50,051	6.8	%		53,140		0.6	%
Credit loss expense		945		2,286	-58.7	%		(2,870	)	132.9	%
Net interest income after credit loss expense		52,504		47,765	9.9	%		56,010		-6.3	%
Noninterest income:
Service charges on deposit accounts		2,192		2,311	-5.1	%		2,391		-8.3	%
Trade finance and other service charges and fees		1,364		1,254	8.8	%		1,245		9.6	%
Gain on sale of Small Business Administration (“SBA”) loans		1,443		1,544	-6.5	%		1,448		-0.3	%
Other operating income		2,358		3,329	-29.2	%		1,596		47.7	%
Total noninterest income		7,357		8,438	-12.8	%		6,680		10.1	%
Noninterest expense:
Salaries and employee benefits		20,498		20,851	-1.7	%		20,062		2.2	%
Occupancy and equipment		4,503		4,499	0.1	%		4,604		-2.2	%
Data processing		3,800		3,839	-1.0	%		3,487		9.0	%
Professional fees		1,821		1,492	22.1	%		1,977		-7.9	%
Supplies and communications		551		538	2.4	%		613		-10.1	%
Advertising and promotion		821		631	30.1	%		990		-17.1	%
Other operating expenses		2,540		3,230	-21.4	%		3,478		-27.0	%
Total noninterest expense		34,534		35,080	-1.6	%		35,211		-1.9	%
Income before tax		25,327		21,123	19.9	%		27,479		-7.8	%
Income tax expense		7,632		6,231	22.5	%		8,846		-13.7	%
Net income	$	17,695	$	14,892	18.8	%	$	18,633		-5.0	%

Basic earnings per share:	$	0.59	$	0.49			$	0.61
Diluted earnings per share:	$	0.58	$	0.49			$	0.61

Weighted-average shares outstanding:
Basic		29,933,644		29,968,004				30,189,578
Diluted		30,011,773		30,033,679				30,251,315
Common shares outstanding		30,195,999		30,196,755				30,368,655

Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except share and per share data)

	Twelve Months Ended
	December 31,		December 31,		Percentage
	2024		2023		Change
Interest and dividend income:
Interest and fees on loans receivable	$	366,153	$	339,811		7.8	%
Interest on securities		21,583		16,938		27.4	%
Dividends on FHLB stock		1,436		1,229		16.8	%
Interest on deposits in other banks		9,611		11,350		-15.3	%
Total interest and dividend income		398,783		369,328		8.0	%
Interest expense:
Interest on deposits		182,692		134,708		35.6	%
Interest on borrowings		6,746		6,867		-1.8	%
Interest on subordinated debentures		6,571		6,482		1.4	%
Total interest expense		196,009		148,057		32.4	%
Net interest income before credit loss expense		202,774		221,271		-8.4	%
Credit loss expense		4,419		4,342		1.8	%
Net interest income after credit loss expense		198,355		216,929		-8.6	%
Noninterest income:
Service charges on deposit accounts		9,381		10,147		-7.5	%
Trade finance and other service charges and fees		5,309		4,832		9.9	%
Gain on sale of Small Business Administration (“SBA”) loans		6,112		5,701		7.2	%
Other operating income		10,783		13,499		-20.1	%
Total noninterest income		31,585		34,179		-7.6	%
Noninterest expense:
Salaries and employee benefits		83,368		81,398		2.4	%
Occupancy and equipment		18,146		18,340		-1.1	%
Data processing		14,876		13,695		8.6	%
Professional fees		6,956		6,255		11.2	%
Supplies and communications		2,261		2,479		-8.8	%
Advertising and promotion		3,028		3,105		-2.5	%
Other operating expenses		12,700		11,255		12.8	%
Total noninterest expense		141,335		136,527		3.5	%
Income before tax		88,605		114,581		-22.7	%
Income tax expense		26,404		34,540		-23.6	%
Net income	$	62,201	$	80,041		-22.3	%

Basic earnings per share:	$	2.06	$	2.63
Diluted earnings per share:	$	2.05	$	2.62

Weighted-average shares outstanding:
Basic		30,019,815		30,269,740
Diluted		30,102,336		30,330,258
Common shares outstanding		30,195,999		30,368,655

Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
(Dollars in thousands)

	Three Months Ended
	December 31, 2024								September 30, 2024								December 31, 2023
				Interest		Average						Interest		Average						Interest		Average
	Average			Income /		Yield /			Average			Income /		Yield /			Average			Income /		Yield /
	Balance			Expense		Rate			Balance			Expense		Rate			Balance			Expense		Rate
Assets
Interest-earning assets:
Loans receivable ⁽¹⁾	$	6,103,264		$	91,545		5.97	%	$	6,112,324		$	92,182		6.00	%	$	6,071,644		$	89,922		5.88	%
Securities ⁽²⁾		998,313			5,866		2.38	%		986,041			5,523		2.27	%		961,551			4,582		1.93	%
FHLB stock		16,385			360		8.75	%		16,385			356		8.65	%		16,385			341		8.25	%
Interest-bearing deposits in other banks		204,408			2,342		4.56	%		183,027			2,356		5.12	%		181,140			2,338		5.12	%
Total interest-earning assets		7,322,370			100,113		5.45	%		7,297,777			100,417		5.48	%		7,230,720			97,183		5.34	%

Noninterest-earning assets:
Cash and due from banks		54,678								54,843								61,146
Allowance for credit losses		(69,291	)							(67,906	)							(68,319	)
Other assets		246,744								251,421								251,660

Total assets	$	7,554,501							$	7,536,135							$	7,475,207

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	79,784		$	26		0.13	%	$	83,647		$	31		0.15	%	$	86,679		$	29		0.13	%
Money market and savings		1,934,540			16,564		3.41	%		1,885,799			17,863		3.77	%		1,669,973			14,379		3.42	%
Time deposits		2,346,363			26,816		4.55	%		2,427,737			29,259		4.79	%		2,417,803			25,869		4.24	%
Total interest-bearing deposits		4,360,687			43,406		3.96	%		4,397,183			47,153		4.27	%		4,174,455			40,277		3.83	%
Borrowings		141,604			1,634		4.59	%		143,479			1,561		4.33	%		205,951			2,113		4.07	%
Subordinated debentures		130,567			1,624		4.97	%		130,403			1,652		5.07	%		129,933			1,653		5.09	%
Total interest-bearing liabilities		4,632,858			46,664		4.01	%		4,671,065			50,366		4.29	%		4,510,339			44,043		3.88	%

Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,967,789								1,908,833								2,025,212
Other liabilities		162,064								171,987								177,321
Stockholders’ equity		791,790								784,250								762,335

Total liabilities and stockholders’ equity	$	7,554,501							$	7,536,135							$	7,475,207

Net interest income				$	53,449							$	50,051							$	53,140

Cost of deposits							2.73	%							2.97	%							2.58	%
Net interest spread (taxable equivalent basis)							1.44	%							1.19	%							1.47	%
Net interest margin (taxable equivalent basis)							2.91	%							2.74	%							2.92	%



⁽¹⁾ Includes average loans held for sale
⁽²⁾ Income calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.

Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
(Dollars in thousands)

	Twelve Months Ended
	December 31, 2024								December 31, 2023
				Interest		Average						Interest		Average
	Average			Income /		Yield /			Average			Income /		Yield /
	Balance			Expense		Rate			Balance			Expense		Rate
Assets
Interest-earning assets:
Loans receivable ⁽¹⁾	$	6,110,713		$	366,153		5.99	%	$	5,968,339		$	339,811		5.69	%
Securities ⁽²⁾		983,434			21,583		2.22	%		967,231			16,938		1.78	%
FHLB stock		16,385			1,437		8.76	%		16,385			1,229		7.50	%
Interest-bearing deposits in other banks		192,342			9,610		5.00	%		230,835			11,350		4.92	%
Total interest-earning assets		7,302,874			398,783		5.46	%		7,182,790			369,328		5.15	%

Noninterest-earning assets:
Cash and due from banks		55,830								62,049
Allowance for credit losses		(68,553	)							(70,501	)
Other assets		248,820								240,779

Total assets	$	7,538,971							$	7,415,117

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	83,807		$	119		0.14	%	$	97,388		$	117		0.12	%
Money market and savings		1,870,541			68,304		3.65	%		1,547,911			44,066		2.85	%
Time deposits		2,433,516			114,269		4.70	%		2,371,520			90,525		3.82	%
Total interest-bearing deposits		4,387,864			182,692		4.16	%		4,016,819			134,708		3.35	%
Borrowings		154,193			6,746		4.38	%		197,409			6,867		3.48	%
Subordinated debentures		130,325			6,571		5.04	%		129,708			6,482		5.00	%
Total interest-bearing liabilities		4,672,382			196,009		4.20	%		4,343,936			148,057		3.41	%

Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,920,492								2,173,813
Other liabilities		165,288								149,460
Stockholders’ equity		780,809								747,908

Total liabilities and stockholders’ equity	$	7,538,971							$	7,415,117

Net interest income				$	202,774							$	221,271

Cost of deposits							2.90	%							2.18	%
Net interest spread (taxable equivalent basis)							1.27	%							1.74	%
Net interest margin (taxable equivalent basis)							2.78	%							3.08	%


⁽¹⁾ Includes average loans held for sale
⁽²⁾ Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.

Non-GAAP Financial Measures

Tangible Common Equity to Tangible Assets Ratio

Tangible common equity to tangible assets ratio is supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles (“GAAP”). This non-GAAP measure is used by management in the analysis of Hanmi’s capital strength. Tangible common equity is calculated by subtracting goodwill and other intangible assets from stockholders’ equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from stockholders’ equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Hanmi. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

The following table reconciles this non-GAAP performance measure to the GAAP performance measure for the periods indicated:

Tangible Common Equity to Tangible Assets Ratio (Unaudited)
(In thousands, except share, per share data and ratios)

	December 31,			September 30,			June 30,			March 31,			December 31,
Hanmi Financial Corporation	2024			2024			2024			2024			2023
Assets	$	7,677,925		$	7,712,299		$	7,586,347		$	7,512,046		$	7,570,341
Less goodwill and other intangible assets		(11,031	)		(11,031	)		(11,048	)		(11,074	)		(11,099	)
Tangible assets	$	7,666,894		$	7,701,268		$	7,575,299		$	7,500,972		$	7,559,242

Stockholders’ equity ⁽¹⁾	$	732,174		$	736,709		$	707,059		$	703,100		$	701,891
Less goodwill and other intangible assets		(11,031	)		(11,031	)		(11,048	)		(11,074	)		(11,099	)
Tangible stockholders’ equity ⁽¹⁾	$	721,143		$	725,678		$	696,011		$	692,026		$	690,792

Stockholders’ equity to assets		9.54	%		9.55	%		9.32	%		9.36	%		9.27	%
Tangible common equity to tangible assets ⁽¹⁾		9.41	%		9.42	%		9.19	%		9.23	%		9.14	%

Common shares outstanding		30,195,999			30,196,755			30,272,110			30,276,358			30,368,655
Tangible common equity per common share	$	23.88		$	24.03		$	22.99		$	22.86		$	22.75


⁽¹⁾There were no preferred shares outstanding at the periods indicated.

The MIL Network –

January 29, 2025

Category: Asia Pacific

Source: NZ Veterinary Association

Source: Ia Ara Aotearoa Transporting New Zealand