NewzIntel.com

Category: Banking

  • MIL-OSI: Share repurchase programme: Transactions of week 16 2025

    Source: GlobeNewswire (MIL-OSI)

    The share repurchase programme runs as from 26 February 2025 and up to and including 30 January 2026 at the latest. In this period, Jyske Bank will acquire shares with a value of up to DKK 2.25 billion, cf. Corporate Announcement No. 3/2025 of 26 February 2025. The share repurchase programme is initiated and structured in compliance with the EU Commission Regulation No. 596/2014 of 16 April 2014, the so-called “Market Abuse Regulation”, and the Commission Delegated Regulation (EU) 2016/1052 of 8 March 2016 (together with the Market Abuse Regulation, the “Safe Harbour Rules”).

    The following transactions have been made under the program:

      Number of
    shares    		 Average purchase
    price (DKK)    		 Transaction
    value (DKK)
    Accumulated, previous announcement 705,173 529.33 373,267,661
    14 April 2025 21,247 504.46 10,718,234
    15 April 2025 13,000 516.80 6,718,386
    16 April 2025 8,266 515.24 4,258,971
    Accumulated under the programme 747,686 528.25 394,963,251

    Following settlement of the transactions stated above, Jyske Bank will own a total of 3,512,804 of treasury shares, excluding investments made on behalf of customers and shares held for trading purposes, corresponding to 5.47% of the share capital.

    Attached to this corporate announcement, aggregated details on the transactions related to the share repurchase programme are shown by venue.
                                                             
    Yours faithfully,
    Jyske Bank

    Contact: Birger Krøgh Nielsen, CFO, tel. +45 89 89 64 44.

    Attachment

    The MIL Network –

  • MIL-OSI Global: The rise of Brazil’s fuel mafias and their gas station money laundering machines

    Source: The Conversation – Global Perspectives – By Robert Muggah, Richard von Weizsäcker Fellow na Bosch Academy e Co-fundador, Instituto Igarapé

    Brazil’s federal police recently pulled back the curtain on a criminal web that had infiltrated the country’s fuel distribution chains. What looked like ordinary gas stations were, in fact, outposts of a vast laundering machine, washing dirty money with diesel and ethanol. According to Justice Minister Ricardo Lewandowski, more than 1,000 service stations across the country were overseen by organised crime syndicates.

    The plot thickened when Rio de Janeiro’s state police launched raids against the so-called “fuel mafia”, dismantling a racket that sold millions of liters of adulterated fuel. In the process, they revealed a network of ghost companies churning out fake invoices.

    Crime moves into the fuel sector

    Across Brazil organised crime is diversifying beyond narcotics, arms trafficking into the biofuel and fossil fuel sectors. Criminal factions with names such as the Primeiro Comando da Capital (PCC), Comando Vermelho (CV), and militia groups made-up of retired and active duty police are expanding into fuel theft, smuggling, tax evasion, and money laundering. The pivot by Brazil’s criminal underworld underscores their adaptability in exploiting legitimate markets.

    Fuel theft is hardly new to Brazil. The country’s top fuel distributors – Ale, BR, Ipiranga, and Raizen – have warned of criminal infiltration. But the costs of these illegal activities are significant. According to ICL, an industry group, illegal profits generated by gas stations amounted to $23 billion reais($3.89 billion) in 2021.

    A 2022 study by the Brazilian Public Security Forum (FBSP) revealed that criminal organisations generated approximately 146.8 billion reais (around $25.4 billion) from sectors including fuel, gold, cigarettes, and beverages far surpassing the revenues from cocaine trafficking.

    Meanwhile, a 2024 assessment found that the costs of cargo-theft, fuel-related robberies and fraud generated annual losses of $29 billion reais. Vibra Energia estimated that roughly 13 billion liters of fuel were being traded through “irregular” means a year.

    Fake gas stations, adulterated fuel, and tax fraud

    Organised criminal groups employ multiple strategies to exploit the fuel sector. The most common involves the use of “pirate” gas stations — outlets that flout safety standards and sell adulterated and stolen fuel. Police have exposed hundreds of gas stations linked to individuals indicted or convicted for fuel-related offenses since 2015. In 2019, for example, BR purged its retail network of 730 stations nationwide suspected of involvement in “irregularities”.

    By 2023, the PCC reportedly extended its influence to five ethanol plants and approximately 1,100 of São Paulo’s 9,000 gas stations. And in 2024, police claimed that as many as 30 gas stations in Rio de Janeiro were under PCC control. Meanwhile, the National Agency for Petroleum, Natural Gas and Biofuels (ANP) reported that violations related to the use of methanol — a toxic substance commonly used to adulterate fuels—increased by over 73 percent compared to the previous year.

    Fraud and tax evasion are also common in the fuel sector. In Brazil, fuel taxes on ethanol vary from state to state. These discrepancies create incentives for enterprising criminals to purchase fuel from low-tax jurisdictions and resell in high-tax states to station owners who charge higher tax and pocket the difference.

    A 2019 study by FGV estimated that fuel-related tax evasion generated 7.2 billion reais ($1.3 billion), with major rewards for petrol station owners that laundered funds. There are also schemes that involve tax fraud in fuel production and illegal diesel imports. One prominent case involved Copape, a company that sold fuel below market price by evading import taxes and manipulating its product. The company was later shut down amid allegations of ties to the PCC.

    Another common strategy involves outright theft by installing clandestine taps and siphoning fuel from pipelines. This practice often leads to significant economic losses and poses environmental hazards and public safety risks. The process usually involves precise “insider” knowledge of pipeline networks. In 2019, for example, Petrobras identified over 261 such incidents in Rio de Janeiro and São Paulo alone.

    The direct targeting of personnel and infrastructure has also occurred. In 2019, for example, more than 40 people were arrested in Rio de Janeiro in 2019 suspected of extorting and murdering Petrobras contactors. The group was described as highly organised with separate divisions for intimidating targets, tapping pipelines, transporting stolen fuel, and monitoring police movements. Stolen fuel can be sold on to asphalt companies, underground gas owners, and others.

    The entrenchment of organised crime in biofuels such as sugar and palm oil has resulted in confrontations with state authorities. In August 2024, 59,000 hectares of São Paulo’s sugarcane plantations were ravaged by fires resulting in losses of over 1 billion reais. Authorities suspect that the PCC orchestrated arson attacks as retaliation against government measures targeting their involvement in the adulterated fuel trade.

    And in February 2025, police in Rio de Janeiro revealed that operators of an illegal gambling (jogo do bicho) network were financing the criminal extraction of oil from underground pipelines. Proceeds were used to acquire equipment, rent fuel transport vehicles, and pay off personnel. In Rio, and elsewhere in Brazil, such activities undermine the rule of law, distort markets, and erode public trust.

    Technology-enabled solutions to disrupt fuel theft

    Preventing and disrupting infiltration of organised crime into the fuel sectors is challenging. Legal proceedings are often protracted. Efforts by fuel distributors to terminate franchise agreements with non-compliant operators are often stymied by prolonged court battles. The sophistication of Brazil’s criminal organisations also complicates enforcement efforts including their blending of illicit activities with legitimate business.

    At a minimum, federal and state authorities need to track gas stations and pipelines that are implicated in crime. Advanced tracking technologies that improve transparency in the fuel supply chain. And these solutions need to be bolstered by intelligence sharing across jurisdictions. One promising response comes from Brazil’s National Institute of Metrology (Inmetro) which has expanded its inspections of fuel pumps and product quality.

    Companies like Petrobras have ramped up their security measures to protect pipelines, refineries, transportation systems, and petrol stations. Advanced surveillance systems, including drones and sensor-based technology, are now being used by its subsidiary, TransPetro, to monitor pipeline integrity.

    Specialised response teams have also been established to detect and contain illegal taps. Petrobras and Transpetro have also increased collaboration with federal and state security forces to target organised crime cells involved in fuel theft and trafficking.

    In especially high-risk areas, particularly near major refineries such as Duque de Caxias in Rio de Janeiro, joint operations with law enforcement have resulted in arrests and the seizure of illegal equipment used to tap pipelines.

    Petrobras has invested in internal compliance, audit mechanisms, and fuel traceability systems to track product movement and prevent insider threats and diversion to illicit markets. The company has also partnered with regulatory agencies like the (National Agency of Petroleum, Natural Gas and Biofuels, or ANP) to tighten oversight over gas stations and transport companies suspected of facilitating the resale of adulterated or stolen fuel.

    Legislation and regulation is also needed to increase penalties for criminality in the fuel sector. Legal reforms, including a new bill approved in April 2025 targets companies that systematically evade taxes. Another bill is being explored that would mandate real-time electronic reporting of fuel sales and storage to ANP in order to increase traceability.

    A new Parliamentary Commission of Inquiry focusing on the relationship between organised crime and fuel is also about to be launched. Federal police, together with the financial intelligence unit (COAF) and tax authorities are also preparing a broad investigation into related activities.

    Addressing the infiltration of organised crime into Brazil’s biofuel and fossil fuel sectors requires more than enforcement — it demands a coordinated national strategy backed by industry cooperation. Enforced compliance, empowered regulators, transparent supply chains, and worker protections are essential. Without urgent and sustained action, organised crime will continue siphoning off Brazil’s future, weakening one of its most vital sectors.

    *Katherine Aguirre, senior researcher at Igarape Institute, contributed to this article

    Dr. Robert Muggah is the co-founder of the Igarapé Institute, an independent “think and do tank” that develops research, solutions and partnerships to address global public, digital and climate security challenges. Dr. Muggah is also a principal of the SecDev Group, and an advisor to the United Nations, the IMF and the World Bank. An advisor to AI start-ups and a climate tech venture firms, Dr. Muggah has experience developing new technologies and testing AI systems for security and governance.

    – ref. The rise of Brazil’s fuel mafias and their gas station money laundering machines – https://theconversation.com/the-rise-of-brazils-fuel-mafias-and-their-gas-station-money-laundering-machines-254422

    MIL OSI – Global Reports –

  • MIL-OSI United Kingdom: Plans for potential LFC victory parade

    Source: City of Liverpool

    Plans are in place for a victory parade if Liverpool Football Club wins the UEFA Champions League Final on Saturday.

     If Jurgen Klopp’s team triumph, the City of Liverpool will formally invite the club to hold a victory parade on Sunday 2 June.

     The date has been requested by Liverpool Football Club.

    Due to the major logistical challenges needed to arrange a parade of this scale, the announcement is being made in advance so residents and businesses in the city can prepare.

    The Champions League parade would take place when Liverpool is staging two major events – River Festival Liverpool and the Bordeaux Wine Festival – which are already expected to attract tens of thousands of people to the waterfront.

    It would start at 4pm, and would see the Liverpool FC team parade their newly acquired trophy on an open top bus, along Liverpool’s UNESCO World Heritage Waterfront.

    The route starts at Allerton Maze and will travel north bound on Queens Drive towards the Fiveways roundabout and Rocket flyover. From there it will journey along:

    • Queens Drive
    • Mill Bank
    • West Derby Road
    • Islington
    • Leeds Street
    • The Strand
    • Route finishes at Blundell Street

    The River Festival Liverpool event would start earlier than advertised on Sunday to accommodate a parade – around 10.30am.

    Mayor of Liverpool Joe Anderson said: “Anyone who is a football fan can’t help to have been impressed by Liverpool’s performance this season – whatever their allegiance. The twists and turns have kept us all gripped and as a result it is going right down to the wire. We can’t wait until the result to plan for a parade because it is a complex logistical challenge with many partners involved and simply can’t be organised overnight.

    “Whichever team you support, there is no doubting the positive impact sporting success for each of our clubs has on the city, not just economically but also in terms of a feel-good factor. It rightly generates huge pride and attracts massive international attention. If the Reds win, they will receive a well-deserved heroes’ welcome and we will put on a show to make the city proud.

    “Even though the Champions League parade would potentially take place on an already busy day in the city, we are working closely with LFC, Merseyside Police, and our travel partners to ensure that all events taking place on June 2 run smoothly and safely so everyone can enjoy our city, and everything it has to offer.”

    The parade is expected to attract hundreds of thousands of people, so the city council is issuing key advice for fans:

    • Use the full length of the route. The open top bus won’t be stopping so take advantage of the full length of the route from Queens Drive all the way to The Strand.
    • Decide which part of the route you want to wait at and arrive in plenty of time.
    • Be patient – it is impossible to predict how long it will take the team bus to travel along the route.
    • Due to the number of people coming in to and out of the city, there will be significant demands on public transport, with queuing likely.

    Motorists are advised that the city centre is expected to be extremely busy, and with this in mind they should plan their journeys in and out of the city carefully.

    As crowd volumes increase, it is expected that there will periodic closures of the Queensway Tunnel, as the parade passes close by, and an extended closure of the dock branch exit.

    Superintendent Paul White, said: “In the event of the parades taking place there will be a large number of police officers on the streets throughout the city, who will be providing a reassuring presence and making sure fans can enjoy the parades in safety.

    “The parade route has been planned to give residents the opportunity to celebrate Liverpool’s success. Road closures will be put in place by Liverpool City Council in order to allow the parades to take place. This will ultimately cause some disruption to local traffic and public transport routes. Despite this, the intention is to keep disruption to a minimum so fans, locals and visitors can enjoy the events and explore Liverpool safely and freely.

    “Those intending to go tare advised to use public transport and to check timetables. Motorists are advised to check road closures and available parking prior to the events.”It is expected there will be significant disruption around the parade route travel advice is available at www.merseytravel.gov.uk  to help spectators, workers and residents plan their journeys in advance.

    Key points include:

    • Consider walking, cycling or use public transport wherever possible.
    • Be prepared for some changes to services, particularly for bus due to delays and diversions.
    • Allow time for and plan your journey. The transport network is expected to be very busy before and after the parade.
    • Check timetables – be prepared for some changes to services, particularly bus for which some diversions will be in place.
    • The Mersey Ferries are a good cross river option, with regular services running between Seacombe and Liverpool – check www.merseyferries.co.uk for journey times on the day of travel.
    • Passengers travelling on the Wirral line before, during and after the parade should get on and off at Liverpool Central, and Northern Line passengers should use Moorfields. These stations are best set up to manage significant numbers of people.

    Wayne Menzies Merseytravel’s Head of Rail and Chair of the Major Events Transport Board, said: “Liverpool will be extremely busy and through the sheer volume of people and the need for road closures, there will be disruption to the transport network. Both parade-goers and people needing to get home from work need to be aware of that and plan ahead, also keeping an eye on the latest travel information.

    “We have been working closely with Liverpool FC, transport operators, Liverpool City Council, Merseyside Police and other partners to ensure that we are doing all we can to help people get to the parade and home again safely.”

    ‘Live’ travel updates and alerts will be available from Merseytravel at www.merseytravel.gov.uk, or via the journey planner app, and on Twitter @Merseytravel, #LFCparade

    MIL OSI United Kingdom –

  • MIL-OSI Economics: Result of the Daily Variable Rate Repo (VRR) auction held on April 22, 2025

    Source: Reserve Bank of India

    Tenor 1-day
    Notified Amount (in ₹ crore) 1,25,000
    Total amount of bids received (in ₹ crore) 17,892
    Amount allotted (in ₹ crore) 17,892
    Cut off Rate (%) 6.01
    Weighted Average Rate (%) 6.01
    Partial Allotment Percentage of bids received at cut off rate (%) NA

    Ajit Prasad          
    Deputy General Manager
    (Communications)    

    Press Release: 2025-2026/148

    MIL OSI Economics –

  • MIL-OSI: LHV Group unaudited financial results for Q1 2025

    Source: GlobeNewswire (MIL-OSI)

    The first quarter of the year was characterised by rapid growth in business volumes for LHV, but also by a decrease in profit due to lower interest rates and increased impairments.

    In Q1 2025, AS LHV Group earned EUR 29.2 million in net profit. AS LHV Pank earned EUR 25.2 million and LHV Bank Ltd EUR 2.1 million in net profit. At the same time, the net profit of AS LHV Varahaldus was EUR 103 thousand and of AS LHV Kindlustus EUR 665 thousand in Q1. The return on equity attributable to the shareholders of the Group was 16.7% in Q1.

    On a consolidated basis, LHV earned EUR 79.4 million in revenue in Q1 2025, i.e. 6% less than in the previous quarter and 5% less than a year ago. Of the revenue, net interest income accounted for EUR 62.0 million, and net fee and commission income for EUR 14.1 million. The expenses of the consolidation group totalled EUR 37.5 million in Q1, which is 8% less than in the previous quarter, but 10% more than in Q1 of 2024. Impairments totalled EUR 5.7 million in Q1, which is twice as much as a year earlier. The net profit of the Group in Q1 was 20% lower than in the previous quarter and 28% lower than in the same period a year earlier.

    As at the end of March, the consolidated assets of the LHV Group stood at EUR 8.51 billion (annual growth of 15%). Over the quarter, the asset volume dropped by 3%, i.e. EUR 228 million. The consolidated loan portfolio grew by EUR 177 million, i.e. 4%, to EUR 4.73 billion over the quarter (+30% year-on-year). The consolidated deposits of the LHV Group decreased by EUR 306 million (-4%) to EUR 6.60 billion (+11% year-on-year). The total volume of funds managed by LHV increased by EUR 1 million (+0%) to EUR 1.56 billion (annual growth of +1%) over the quarter. The number of payments made by customers who are financial intermediaries reached a record 20.1 million payments in Q1, which is 1% more than in Q4 of the previous year.

    Income statement, EUR thousand Q1-2025 Q4-2024 Q1-2024
       Net interest income 62 010 66 556 68 918
       Net fee and commission income 14 071 17 323 15 543
       Net gains from financial assets 2 748 -198 536
       Other income 594 49 418
    Total revenue 79 422 83 730 85 415
       Staff costs -22 656 -22 831 -20 275
       Office rent and expenses -659 -715 -572
       IT expenses -3 576 -4 270 -3 100
       Marketing expenses -1 258 -2 086 -658
       Other operating expenses -9 394 -10 882 -10 924
    Total operating expenses -37 543 -40 783 -35 528
    EBIT 41 879 42 946 49 888
    Earnings before impairment losses 41 879 42 946 49 888
       Impairment losses on loans and advances -5 667 -1 085 -2 851
       Income tax -7 052 -6 733 -6 335
    Net profit 29 160 35 128 40 702
       Profit attributable to non-controlling interest 592 565 158
       Profit attributable to share holders of the parent 28 568 35 754 40 544
           
       Profit attributable to non-controlling interest 0.09 0.11 0.13
       Profit attributable to share holders of the parent 0.09 0.11 0.12
    Balance sheet, EUR thousand Mar 2025 Dec 2024 Mar 2024
       Cash and cash equivalents 3 279 271 3 818 305 3 402 338
       Financial assets 442 463 309 804 249 968
       Loans granted 4 774 970 4 591 906 3 676 442
       Loan impairments -45 628 -39 813 -31 843
       Receivables from customers 10 511 5 367 22 934
       Other assets 46 698 50 742 50 733
    Total assets 8 508 285 8 736 311 7 370 572
          Demand deposits 4 834 265 4 855 101 3 926 714
          Term deposits 1 770 227 2 055 009 2 007 628
          Loans received 936 215 927 686 568 355
       Loans received and deposits from customers 7 540 707 7 837 795 6 502 697
       Other liabilities 134 514 93 601 141 573
       Subordinated loans 126 247 126 257 127 568
    Total liabilities 7 801 467 8 057 653 6 771 838
    Equity 706 817 678 657 598 734
       Minority interest 7 133 8 571 7 394
    Total liabilities and equity 8 508 285 8 736 311 7 370 572

    The profitability of LHV was affected at the beginning of 2025 by a decrease in interest rates and temporarily higher provisions made to individual customers. At the same time, revenue was slightly better than planned, supported by an increase in business volumes and a good level of customer activity. LHV Pank’s more modest than planned profit was compensated by LHV Bank’s higher-than-planned profitability.

    The number of LHV Pank clients increased by 9,700 over the quarter. Customers actively used payment services and bank cards. The number of Entrepreneur Account users exceeded 30,000 over the quarter. Bank deposits decreased by EUR 309 million over the quarter, but this was due to a decrease of EUR 232 million in deposits from financial intermediaries and EUR 80 million from platform deposits. Involving deposits is still in focus for the bank. LHV Pank was recognised as the bank with the best service in Estonia by the research company Dive.

    The loan portfolio volume of LHV Pank increased by a total of EUR 35 million over the quarter. At the same time, the offering of home loans was active: the portfolio volume grew by EUR 81 million and exceeded the of EUR 1.5 billion over the quarter. The quality of the bank’s loan portfolio as a whole remained stronger than planned, with model-based impairments improving. At the same time, the classification of two customers as non-working resulted in significantly higher impairments: the goal is to partially reverse these within a couple of quarters. This also affected the profit gap from the financial plan.

    The loan portfolio of LHV Bank, operating in the United Kingdom, grew at a record pace by EUR 142 million to EUR 490 million. At the same time, there are loans approved by the credit committee but not yet issued in the value of EUR 167 million, which allows us to assume that the rapid growth will continue. To support the rapid growth of the loan portfolio, the bank’s share capital was increased by EUR 12 million in March.

    Deposits taken by LHV Bank increased by EUR 115 million. The first few hundred customers have joined the retail banking mobile app. During the quarter, the account opening process was significantly improved and fixed-term deposits and card payments for the first customers were opened. In the area of financial intermediaries, the focus was primarily on the integration and activation of larger new customers in order to create pre-conditions for an increase in the volume of pound payments in the second half of the year.

    Compared to recent years, significantly greater uncertainty on the stock markets also affected the pension funds managed by LHV Varahaldus. At the same time, actively managed funds succeeded in preserving the assets of pension savers better than their competitors, as the quarterly rate of return of LHV’s pension funds M, L , and XL was 3.0%, 3.8%, and 4.5%, respectively. The rate of return of the more conservative funds XS and S was 1.5% and 2.1%, respectively. Pension fund Indeks decreased by 4.1% and Roheline lost 5.2% in value over the quarter.

    Both the operating income and net profit of LHV Varahaldus exceeded the financial plan. The profit was positively affected by the financial income from equity units that accompanied the rate of return of the funds. However, the profit was reduced by the income tax accompanying the dividend payment made in March. In January, the company launched a new LHV Euro Bond Fund. In March, the nearly 17-year-long outdoor sale of LHV pension funds in shopping centres ended, and in the future, other opportunities will be sought to promote the sale.

    The growth trend of LHV Kindlustus continued in Q1. Sales were affected by a market-wide decline in insurance premiums, but sales increased by EUR 2.1 million year-on-year. Net earned premiums continued to grow. There were no major loss events in the first three months of the year, but medium-sized losses were registered more often and the number of travel insurance claims increased. The increase in losses over the past year has been proportional to the growth of the portfolio. The number of effective insurance contracts has increased to 266,000 and the number of customers to 174,000.

    LHV Group is well capitalised and all capital objectives have been met with a sufficient margin. At the annual general meeting of shareholders held in March, it was decided to pay a dividend of 9 cents per share to the shareholders for the previous year. The dividends were paid on 10 April. LHV Group fell short of the financial plan published in February by EUR 1.2 million in terms of net profit for the first three months. The financial plan stands.

    Comment by Madis Toomsalu, the Chairman of the Management Board at LHV Group:
    “Decisions are currently being made in global trade policy, the outcome of which is not known in advance. Against this background, the positive growth in Estonia and in the United Kingdom is rather within the margin of error, depending primarily on the investment courage of entrepreneurs. LHV wants to stay open and support good ideas.

    In the competitive Estonian home loan market, we have managed to grow the portfolio of LHV. We are working to further increase the share of active customers. In terms of the business environment, we look favourably at initiatives that could support the entrepreneurial landscape, for example, through regulations and reducing bureaucracy.

    In the United Kingdom, LHV’s loan business is gaining momentum. We soon hope to more widely introduce an offer aimed at retail customers.”

    The reports of AS LHV Group are available on the website at: https://investor.lhv.ee/en/reports/.

    In order to present the financial results of LHV, the company will organise an investor meeting via the Zoom webinar platform. The virtual investor meeting will take place on 22 April at 9:00, before the market opens. The presentation will be in Estonian. We kindly ask you to register at the following address: https://lhvbank.zoom.us/webinar/register/WN__57Iel-DQeeINK3BSksMdQ.

    LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs over 1,160 people. As at the end of March, LHV’s banking services are being used by 465,000 clients, the pension funds managed by LHV have 113,000 active customers, and LHV Kindlustus is protecting a total of 174,000 clients. LHV Bank Limited, a subsidiary of the Group, holds a banking licence in the United Kingdom and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.

    Priit Rum
    Communications Manager
    Phone: +372 502 0786
    Email: priit.rum@lhv.ee 

    Attachments

    The MIL Network –

  • MIL-OSI Economics: Money Market Operations as on April 21, 2025

    Source: Reserve Bank of India
    (Amount in ₹ crore, Rate in Per cent)
      Volume
    (One Leg)    		 Weighted
    Average Rate    		 Range
    A. Overnight Segment (I+II+III+IV) 6,27,477.20 5.85 4.00-7.00
         I. Call Money 18,423.34 5.87 4.95-6.05
         II. Triparty Repo 4,16,314.00 5.83 5.70-6.10
         III. Market Repo 1,90,944.01 5.90 4.00-6.15
         IV. Repo in Corporate Bond 1,795.85 6.06 6.00-7.00
    B. Term Segment      
         I. Notice Money** 85.00 5.66 5.50-5.85
         II. Term Money@@ 2,475.00 – 5.80-6.15
         III. Triparty Repo 5,625.00 5.86 5.84-6.90
         IV. Market Repo 2,284.07 6.10 6.10-6.10
         V. Repo in Corporate Bond 0.00 – –
      Auction Date Tenor (Days) Maturity Date Amount Current Rate /
    Cut off Rate
    C. Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF) & Standing Deposit Facility (SDF)
    I. Today’s Operations
    1. Fixed Rate          
    2. Variable Rate&          
      (I) Main Operation          
         (a) Repo          
         (b) Reverse Repo          
      (II) Fine Tuning Operations          
         (a) Repo Mon, 21/04/2025 1 Tue, 22/04/2025 6,332.00 6.01
         (b) Reverse Repo          
      (III) Long Term Operations^          
         (a) Repo          
         (b) Reverse Repo          
    3. MSF# Mon, 21/04/2025 1 Tue, 22/04/2025 879.00 6.25
    4. SDFΔ# Mon, 21/04/2025 1 Tue, 22/04/2025 87,351.00 5.75
    5. Net liquidity injected from today’s operations [injection (+)/absorption (-)]*       -80,140.00  
    II. Outstanding Operations
    1. Fixed Rate          
    2. Variable Rate&          
      (I) Main Operation          
         (a) Repo          
         (b) Reverse Repo          
      (II) Fine Tuning Operations          
         (a) Repo          
         (b) Reverse Repo          
      (III) Long Term Operations^          
         (a) Repo Thu, 17/04/2025 43 Fri, 30/05/2025 25,731.00 6.01
         (b) Reverse Repo          
    3. MSF#          
    4. SDFΔ#          
    D. Standing Liquidity Facility (SLF) Availed from RBI$       8,173.94  
    E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*     33,904.94  
    F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*     -46,235.06  
    G. Cash Reserves Position of Scheduled Commercial Banks
         (i) Cash balances with RBI as on April 21, 2025 9,68,566.77  
         (ii) Average daily cash reserve requirement for the fortnight ending May 02, 2025 9,51,938.00  
    H. Government of India Surplus Cash Balance Reckoned for Auction as on¥ April 21, 2025 6,332.00  
    I. Net durable liquidity [surplus (+)/deficit (-)] as on April 04, 2025 2,36,088.00  
    @ Based on Reserve Bank of India (RBI) / Clearing Corporation of India Limited (CCIL).
    – Not Applicable / No Transaction.
    ** Relates to uncollateralized transactions of 2 to 14 days tenor.
    @@ Relates to uncollateralized transactions of 15 days to one year tenor.
    $ Includes refinance facilities extended by RBI.
    & As per the Press Release No. 2019-2020/1900 dated February 06, 2020.
    Δ As per the Press Release No. 2022-2023/41 dated April 08, 2022.
    * Net liquidity is calculated as Repo+MSF+SLF-Reverse Repo-SDF.
    ¥ As per the Press Release No. 2014-2015/1971 dated March 19, 2015.
    # As per the Press Release No. 2023-2024/1548 dated December 27, 2023.
    ^ As per the Press Release No. 2025-2026/91 dated April 11, 2025.
    Ajit Prasad          
    Deputy General Manager
    (Communications)    
    Press Release: 2025-2026/147

    MIL OSI Economics –

  • MIL-OSI Australia: Teens surprisingly ‘confident’ about money

    Source: Premier of Victoria

    Aussie teens report feeling confident about their financial skills but are keen to learn more about money outside the classroom, according to new NAB Economics data.

    The NAB Economics data found high school students felt most confident in:

    1. Opening a bank account: Nearly 70% of students feel confident doing this
    2. Tracking their expenses: Around 65% of students felt they could do this.
    3. Money management skills: 64% of students felt confident in this area.
    4. Creating a budget: 63% of students felt prepared to make one.
    5. Setting financial goals: 62% of students felt they could do this.

    NAB Banker Claudia Dior said the research challenged assumptions about teenagers and their relationship with money.

    “Contrary to popular belief, the research shows that today’s teens are relatively confident when it comes to talking about money.

    “They’ve grown up during significant economic shifts. Many of them have seen their parents flex their budgeting muscles, and they’re eager to learn how to set themselves up for success. They’re using their digital fluency to self-source their own financial knowledge, but it’s crucial they find the information through legitimate sources.

    “As a banker, I’ve noticed a shift in how young people approach banking. They’re asking informed questions about interest rates and long-term planning – things we rarely heard a decade ago.

    “At home, we discuss our family budget with my 18-year-old, and when we shop, we compare prices and value. All of a sudden, concepts from Economics textbooks have become part of our everyday life.”

    Thanks to early conversations around money management, Melbourne highschooler Hugo Black is clued into his finances. It’s come in handy, as the 17-year-old has held three jobs over the past two years.

    “My parents taught me the importance of being aware of my spending habits early on by helping me set savings goals and budget my pocket money,” Hugo said.

    “This foundation helped when I got my first job at 15. Now, working in hospitality and babysitting, I aim to save between 30 to 60% of my wages.”

    Hugo’s ultimate savings goal is to self-fund a gap year in Europe after high school.

    “My brothers did it after year 12 so seeing them go before me has shown it’s achievable. Having these goals means I’m working towards something. It keeps me responsible in managing my money. When I get back, I plan to save for a car and start investing in a share portfolio to build towards buying my first home.”

    NAB Banker Claudia Dior offers three tips for boosting kids financial literacy at home:

    • Use technology as a financial tool: Leverage your teens’ digital fluency by introducing them to legitimate banking apps to help them track their spending for a month, categorise expenses and identify patterns. This will help them build critical financial management habits.
    • Make the weekly grocery shop an economics lesson: Involve children in meal planning within a budget, comparing prices, identifying sales and calculating unit pricing. This teaches practical maths skills while demonstrating how small decisions accumulate into significant financial impacts.
    • Transform bill-paying into financial education: Rather than paying bills in private, invite children to watch how it’s done. Explain the difference between fixed and variable expenses, show how services are linked to costs, and discuss how income needs to cover these bills. This will help them understand household finances and prepare them for their future responsibilities.

    Notes to editors 

    • Data sourced from NAB Educations Insights Special Report Part Three

    Customers, banking & finance

    SEE ALL TOPICS

    Media Enquiries

    For all media enquiries, please contact the NAB Media Line on 03 7035 5015

    MIL OSI News –

  • MIL-OSI: SOUTHERN MISSOURI BANCORP REPORTS PRELIMINARY RESULTS FOR THIRD QUARTER OF FISCAL 2025; DECLARES QUARTERLY DIVIDEND OF $0.23 PER COMMON SHARE; CONFERENCE CALL SCHEDULED FOR TUESDAY, APRIL 22, AT 8:30 AM CENTRAL TIME

    Source: GlobeNewswire (MIL-OSI)

    Poplar Bluff, Missouri, April 21, 2025 (GLOBE NEWSWIRE) — Southern Missouri Bancorp, Inc. (“Company”) (NASDAQ: SMBC), the parent corporation of Southern Bank (“Bank”), today announced preliminary net income for the third quarter of fiscal 2025 of $15.7 million, an increase of $4.4 million or 38.7%, as compared to the same period of the prior fiscal year. The increase was attributable to increases in net interest income and noninterest income, partially offset by increases in noninterest expense, income taxes, and provision for credit losses. Preliminary net income was $1.39 per fully diluted common share for the third quarter of fiscal 2025, an increase of $0.40 as compared to the $0.99 per fully diluted common share reported for the same period of the prior fiscal year.

    Highlights for the third quarter of fiscal 2025:

    • Earnings per common share (diluted) were $1.39, up $0.40, or 40.4%, as compared to the same quarter a year ago, and up $0.09, or 6.9%, from the second quarter of fiscal 2025, the linked quarter.
    • Annualized return on average assets (ROA) was 1.27%, while annualized return on average common equity (ROE) was 12.1%, as compared to 0.99% and 9.5%, respectively, in the same quarter a year ago, and 1.26% and 11.5%, respectively, in the second quarter of fiscal 2025, the linked quarter.
    • Net interest margin for the quarter was 3.39%, as compared to 3.15% reported for the same quarter a year ago, and up from 3.36% reported for the second quarter of fiscal 2025, the linked quarter. Net interest income increased $5.0 million, or 14.4%, compared to the same quarter a year ago, and increased $1.3 million, or 3.5% compared to the second quarter of fiscal 2025, the linked quarter.
    • Noninterest income was up 19.4% for the quarter, as compared to the same quarter a year ago, primarily as a result of losses realized on sale of available-for-sale (AFS) securities in the year ago quarter, and down 2.9% from the second quarter of fiscal 2025, the linked quarter.
    • Gross loan balances as of March 31, 2025, decreased by $3.5 million, or 0.1%, as compared to December 31, 2024, and increased by $252.3 million, or 6.7%, as compared to March 31, 2024.
    • Deposit balances as of March 31, 2025, increased by $50.8 million, or 1.2%, as compared to December 31, 2024, and by $275.3, million, or 6.9%, as compared to March 31, 2024.
    • Cash equivalent balances and time deposits as of March 31, 2025, increased by $81.1 million, or 55.5%, as compared to December 31, 2024, and increased by $58.4 million, or 34.6% as compared to March 31, 2024.
    • Tangible book value per share was $40.37, having increased by $4.86, or 13.7%, as compared to March 31, 2024.

    Dividend Declared:

    The Board of Directors, on April 15, 2025, declared a quarterly cash dividend on common stock of $0.23, payable May 30, 2025, to stockholders of record at the close of business on May 15, 2025, marking the 124th consecutive quarterly dividend since the inception of the Company. The Board of Directors and management believe the payment of a quarterly cash dividend enhances stockholder value and demonstrates our commitment to and confidence in our future prospects.

    Conference Call:

    The Company will host a conference call to review the information provided in this press release on Tuesday, April 22, 2025, at 8:30 a.m., central time. The call will be available live to interested parties by calling 1-833-470-1428 in the United States and from all other locations. Participants should use participant access code 154288. Telephone playback will be available beginning one hour following the conclusion of the call through April 27, 2025. The playback may be accessed by dialing 1-866-813-9403, and using the conference passcode 580314.

    Balance Sheet Summary:

    The Company experienced balance sheet growth in the first nine months of fiscal 2025, with total assets of $5.0 billion at March 31, 2025, reflecting an increase of $372.2 million, or 8.1%, as compared to June 30, 2024. Growth primarily reflected increases in net loans receivable, cash equivalents, and available for sale (AFS) securities.

    Cash equivalents and time deposits were a combined $227.1 million at March 31, 2025, an increase of $165.7 million, or 270.0%, as compared to June 30, 2024. The increase was primarily the result of strong deposit generation that outpaced loan growth during the period. AFS securities were $462.9 million at March 31, 2025, up $35.0 million, or 8.2%, as compared to June 30, 2024.

    Loans, net of the allowance for credit losses (ACL), were $4.0 billion at March 31, 2025, an increase of $171.3 million, or 4.5%, as compared to June 30, 2024. Gross loans increased by $173.7 million, while the ACL attributable to outstanding loan balances increased $2.4 million, or 4.6%, as compared to June 30, 2024. The increase in loan balances was attributable to growth in 1-4 family residential, commercial and industrial, construction and land development, multi-family real estate, agriculture real estate, owner occupied commercial real estate, and agricultural production loan balances. This increase was somewhat offset by decreases in consumer loans, loans secured by non-owner occupied commercial real estate, and other loan balances. The table below illustrates changes in loan balances by type over recent periods:

                                   
    Summary Loan Data as of:      Mar. 31,      Dec. 31,      Sep. 30,      June 30,      Mar. 31,
    (dollars in thousands)   2025     2024     2024     2024     2024  
                                   
    1-4 residential real estate   $ 978,908     $ 967,196     $ 942,916     $ 925,397     $ 903,371  
    Non-owner occupied commercial real estate     897,125       882,484       903,678       899,770       898,911  
    Owner occupied commercial real estate     440,282       435,392       438,030       427,476       412,958  
    Multi-family real estate     405,445       376,081       371,177       384,564       417,106  
    Construction and land development     323,499       393,388       351,481       290,541       268,315  
    Agriculture real estate     247,027       239,912       239,787       232,520       233,853  
    Total loans secured by real estate     3,292,286       3,294,453       3,247,069       3,160,268       3,134,514  
                                   
    Commercial and industrial     488,116       484,799       457,018       450,147       436,093  
    Agriculture production     186,058       188,284       200,215       175,968       139,533  
    Consumer     54,022       56,017       58,735       59,671       56,506  
    All other loans     3,216       3,628       3,699       3,981       4,799  
    Total loans     4,023,698       4,027,181       3,966,736       3,850,035       3,771,445  
                                   
    Deferred loan fees, net     (189 )     (202 )     (218 )     (232 )     (251 )
    Gross loans     4,023,509       4,026,979       3,966,518       3,849,803       3,771,194  
    Allowance for credit losses     (54,940 )     (54,740 )     (54,437 )     (52,516 )     (51,336 )
    Net loans   $ 3,968,569     $ 3,972,239     $ 3,912,081     $ 3,797,287     $ 3,719,858  

    Loans anticipated to fund in the next 90 days totaled $163.3 million at March 31, 2025, as compared to $172.5 million at December 31, 2024, and $117.2 million at March 31, 2024.

    The Bank’s concentration in non-owner occupied commercial real estate loans is estimated at 304.0% of Tier 1 capital and ACL on March 31, 2025, as compared to 317.5% as of June 30, 2024, with these loans representing 40.4% of total loans at March 31, 2025. Multi-family residential real estate, hospitality (hotels/restaurants), care facilities, retail stand-alone, and strip centers are the most common collateral types within the non-owner occupied commercial real estate loan portfolio. The multi-family residential real estate loan portfolio commonly includes loans collateralized by properties currently in the low-income housing tax credit (LIHTC) program or that have exited the program. The hospitality and retail stand-alone segments include primarily franchised businesses; care facilities consisting mainly of skilled nursing and assisted living centers; and strip centers, which can be defined as non-mall shopping centers with a variety of tenants. Non-owner-occupied office property types included 31 loans totaling $23.9 million, or 0.59% of gross loans at March 31, 2025, none of which were adversely classified, and are generally comprised of smaller spaces with diverse tenants. The Company continues to monitor its commercial real estate concentration and the individual segments closely.

    Nonperforming loans (NPL) were $22.0 million, or 0.55% of gross loans, at March 31, 2025, as compared to $6.7 million, or 0.17% of gross loans at June 30, 2024. Nonperforming assets (NPA) were $23.8 million, or 0.48% of total assets, at March 31, 2025, as compared to $10.6 million, or 0.23% of total assets, at June 30, 2024. The rise in NPAs reflects an increase in NPLs. The increase in NPLs was primarily attributable to several commercial relationships added in the third quarter of 2025 and the addition of three unrelated loans collateralized by single-family residential property in the linked quarter. The increase during the third quarter was mostly attributable to loans totaling $10 million primarily secured by two specific-purpose non-owner occupied commercial properties in different states. The loans have some guarantors in common. The properties, now vacant, were originally leased to a single tenant that became insolvent.

    Our ACL at March 31, 2025, totaled $54.9 million, representing 1.37% of gross loans and 250% of nonperforming loans, as compared to an ACL of $52.5 million, representing 1.36% of gross loans and 786% of nonperforming loans at June 30, 2024. The Company has estimated its expected credit losses as of March 31, 2025, under ASC 326-20, and management believes the ACL as of that date was adequate based on that estimate. There remains, however, significant uncertainty as borrowers adjust to relatively high market interest rates, although the Federal Reserve has reduced short-term rates somewhat during this fiscal year. Qualitative adjustments in the Company’s ACL model were increased compared to June 30, 2024, due to various factors that are relevant to determining expected collectability of credit. Additionally, a provision for credit loss was required due to loan net charge offs and to provide reserves for overdrafts in the third quarter of fiscal year 2025. As a percentage of average loans outstanding, the Company recorded net charge offs of 0.11% (annualized) during the current period, as compared to 0.01% for the same period of the prior fiscal year. In the three-month period ended March 31, 2025, $1.1 million of net charge offs were realized, with the increase from prior periods primarily due to a single agricultural relationship with suspected fraudulent activity.

    Total liabilities were $4.4 billion at March 31, 2025, an increase of $332.1 million, or 8.1%, as compared to June 30, 2024. Growth primarily reflected an increase in total deposits, other liabilities from the increase of accrued interest payable and income taxes payable, securities sold under agreements to repurchase, and FHLB advances.

    Deposits were $4.3 billion at March 31, 2025, an increase of $318.3 million, or 8.1%, as compared to June 30, 2024. The deposit portfolio saw year-to-date increases in certificates of deposit and savings accounts, as customers remained willing to move balances into high yield savings accounts and special rate time deposits in the higher rate environment. Public unit balances totaled $575.8 million at March 31, 2025, a decrease of $18.8 million compared to June 30, 2024, and increased $9.8 million from December 31, 2024, the linked quarter, reflecting seasonal trends. Brokered deposits totaled $235.6 million at March 31, 2025, an increase of $61.8 million as compared to June 30, 2024, but a decrease of $18.5 million compared to December 31, 2024, the linked quarter. The average loan-to-deposit ratio for the third quarter of fiscal 2025 was 94.2%, as compared to 96.3% for the quarter ended June 30, 2024, and 92.7% for the same period of the prior fiscal year. The table below illustrates changes in deposit balances by type over recent periods:

                                   
    Summary Deposit Data as of:      Mar. 31,      Dec. 31,      Sep. 30,      June 30,      Mar. 31,
    (dollars in thousands)   2025   2024   2024   2024   2024
                                   
    Non-interest bearing deposits   $ 513,418   $ 514,199   $ 503,209   $ 514,107   $ 525,959
    NOW accounts     1,167,296     1,211,402     1,128,917     1,239,663     1,300,358
    MMDAs – non-brokered     345,810     347,271     320,252     334,774     359,569
    Brokered MMDAs     2,013     3,018     12,058     2,025     10,084
    Savings accounts     626,175     573,291     556,030     517,084     455,212
    Total nonmaturity deposits     2,654,712     2,649,181     2,520,466     2,607,653     2,651,182
                                   
    Certificates of deposit – non-brokered     1,373,109     1,310,421     1,258,583     1,163,650     1,158,063
    Brokered certificates of deposit     233,561     251,025     261,093     171,756     176,867
    Total certificates of deposit     1,606,670     1,561,446     1,519,676     1,335,406     1,334,930
                                   
    Total deposits   $ 4,261,382   $ 4,210,627   $ 4,040,142   $ 3,943,059   $ 3,986,112
                                   
    Public unit nonmaturity accounts   $ 472,010   $ 482,406   $ 447,638   $ 541,445   $ 572,631
    Public unit certificates of deposit     103,741     83,506     62,882     53,144     51,834
    Total public unit deposits   $ 575,751   $ 565,912   $ 510,520   $ 594,589   $ 624,465

    FHLB advances were $104.1 million at March 31, 2025, an increase of $2.0 million, or 2.0%, as compared to June 30, 2024.

    The Company’s stockholders’ equity was $528.8 million at March 31, 2025, an increase of $40.0 million, or 8.2%, as compared to June 30, 2024. The increase was attributable primarily to earnings retained after cash dividends paid, in combination with a $3.5 million reduction in accumulated other comprehensive losses (AOCL) as the market value of the Company’s investments appreciated due to the decrease in market interest rates. The AOCL totaled $14.0 million at March 31, 2025, compared $17.5 million at June 30, 2024. The Company does not hold any securities classified as held-to-maturity.    

    Quarterly Income Statement Summary:

    The Company’s net interest income for the three-month period ended March 31, 2025, was $39.5 million, an increase of $5.0 million, or 14.4%, as compared to the same period of the prior fiscal year. The increase was attributable to a 6.2% increase in the average balance of interest-earning assets in the current three-month period compared to the same period a year ago, and an increase of 24 basis points in the net interest margin, from 3.15% to 3.39%. The primary driver of the net interest margin expansion, compared to the year ago period, was the yield on interest earning assets increasing 16 basis points, while the cost of interest bearing liabilities decreased 11 basis points.

    Loan discount accretion and deposit premium amortization related to the Company’s November 2018 acquisition of First Commercial Bank, the May 2020 acquisition of Central Federal Savings & Loan Association, the February 2022 merger of FortuneBank, and the January 2023 acquisition of Citizens Bank & Trust resulted in $1.5 million in net interest income for the three-month period ended March 31, 2025, as compared to $1.2 million in net interest income for the same period a year ago. Combined, this component of net interest income contributed 13 basis points to net interest margin in the three-month period ended March 31, 2025, as compared to an 11-basis point contribution for the same period of the prior fiscal year, and as compared to a nine-basis point contribution in the linked quarter, ended December 31, 2024, when net interest margin was 3.36%.

    The Company recorded a PCL of $932,000 in the three-month period ended March 31, 2025, as compared to a PCL of $900,000 in the same period of the prior fiscal year. The current period PCL was the result of a $1.3 million provision attributable to the ACL for loan balances outstanding and a $368,000 negative provision attributable to the allowance for off-balance sheet credit exposures.

    The Company’s noninterest income for the three-month period ended March 31, 2025, was $6.7 million, an increase of $1.1 million, or 19.4%, as compared to the same period of the prior fiscal year. The increase was primarily attributable to recognized losses on the sale of AFS securities, which totaled $807,000 in the comparable quarter, as compared to a small gain recognized in the current quarter. Additionally, deposit account charges and related fees increased, partially offset by decreases in loan late charges and loan servicing fees.

    Noninterest expense for the three-month period ended March 31, 2025, was $25.4 million, an increase of $342,000, or 1.4%, as compared to the same period of the prior fiscal year. The increase as compared to the year-ago period was primarily attributable to increases in other noninterest expense, occupancy and equipment, and legal and professional fees. The increase in other noninterest expense was primarily due to card fraud losses and deposit product expenses. Occupancy and equipment expenses increased due to depreciation on recent capitalized expenditures, including buildings, equipment, and signage. In addition, higher maintenance costs and service agreements were experienced. Lastly, legal and professional fees were elevated due primarily to an increase in accruals for audit expenses and the remaining expenses associated with the performance improvement project. Partially offsetting these increases from the prior year period were decreases in in telecommunication expenses; intangible amortization, as the core deposit intangible recognized in an older merger was fully amortized in the second quarter of fiscal 2025; and advertising expenses.

    The efficiency ratio for the three-month period ended March 31, 2025, was 55.1%, as compared to 61.2% in the same period of the prior fiscal year. The improvement was attributable to net interest income and noninterest income growing faster than operating expenses.

    The income tax provision for the three-month period ended March 31, 2025, was $4.1 million, an increase of 45.9% as compared to the same period of the prior fiscal year, primarily due to the increase in net income before income taxes. The effective tax rate was 20.9% as compared to 20.1% in the same quarter of the prior fiscal year.  

    Forward-Looking Information:

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

    Southern Missouri Bancorp, Inc.
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION

                                     
    Summary Balance Sheet Data as of:      Mar. 31,      Dec. 31,      Sep. 30,      June 30,      Mar. 31,  
    (dollars in thousands, except per share data)   2025   2024   2024   2024   2024  
                                     
    Cash equivalents and time deposits   $ 227,136   $ 146,078   $ 75,591   $ 61,395   $ 168,763  
    Available for sale (AFS) securities     462,930     468,060     420,209     427,903     433,689  
    FHLB/FRB membership stock     18,269     18,099     18,064     17,802     17,734  
    Loans receivable, gross     4,023,509     4,026,979     3,966,518     3,849,803     3,771,194  
    Allowance for credit losses     54,940     54,740     54,437     52,516     51,336  
    Loans receivable, net     3,968,569     3,972,239     3,912,081     3,797,287     3,719,858  
    Bank-owned life insurance     75,156     74,643     74,119     73,601     73,101  
    Intangible assets     74,677     75,399     76,340     77,232     78,049  
    Premises and equipment     95,987     96,418     96,087     95,952     95,801  
    Other assets     53,772     56,738     56,709     53,144     59,997  
    Total assets   $ 4,976,496   $ 4,907,674   $ 4,729,200   $ 4,604,316   $ 4,646,992  
                                     
    Interest-bearing deposits   $ 3,747,964   $ 3,696,428   $ 3,536,933   $ 3,428,952   $ 3,437,420  
    Noninterest-bearing deposits     513,418     514,199     503,209     514,107     548,692  
    Securities sold under agreements to repurchase     15,000     15,000     15,000     9,398     9,398  
    FHLB advances     104,072     107,070     107,069     102,050     102,043  
    Other liabilities     44,057     39,424     38,191     37,905     46,712  
    Subordinated debt     23,195     23,182     23,169     23,156     23,143  
    Total liabilities     4,447,706     4,395,303     4,223,571     4,115,568     4,167,408  
                                     
    Total stockholders’ equity     528,790     512,371     505,629     488,748     479,584  
                                     
    Total liabilities and stockholders’ equity   $ 4,976,496   $ 4,907,674   $ 4,729,200   $ 4,604,316   $ 4,646,992  
                                     
    Equity to assets ratio     10.63 %     10.44 %     10.69 %     10.61 %     10.32 %
                                     
    Common shares outstanding     11,299,962     11,277,167     11,277,167     11,277,737     11,366,094  
    Less: Restricted common shares not vested     50,658     46,653     56,553     57,956     57,956  
    Common shares for book value determination     11,249,304     11,230,514     11,220,614     11,219,781     11,308,138  
                                     
    Book value per common share   $ 47.01   $ 45.62   $ 45.06   $ 43.56   $ 42.41  
    Less: Intangible assets per common share     6.64     6.71     6.80     6.88     6.90  
    Tangible book value per common share (1)     40.37     38.91     38.26     36.68     35.51  
    Closing market price     52.02     57.37     56.49     45.01     43.71  

    (1)   Non-GAAP financial measure.

                                     
    Nonperforming asset data as of:      Mar. 31,      Dec. 31,      Sep. 30,      June 30,      Mar. 31,  
    (dollars in thousands)   2025   2024   2024   2024   2024  
                                     
    Nonaccrual loans   $ 21,970   $ 8,309   $ 8,206   $ 6,680   $ 7,329  
    Accruing loans 90 days or more past due     —     —     —     —     81  
    Total nonperforming loans     21,970     8,309     8,206     6,680     7,410  
    Other real estate owned (OREO)     1,775     2,423     3,842     3,865     3,791  
    Personal property repossessed     56     37     21     23     60  
    Total nonperforming assets   $ 23,801   $ 10,769   $ 12,069   $ 10,568   $ 11,261  
                                     
    Total nonperforming assets to total assets     0.48 %     0.22 %     0.26 %     0.23 %     0.24 %  
    Total nonperforming loans to gross loans     0.55 %     0.21 %     0.21 %     0.17 %     0.20 %  
    Allowance for credit losses to nonperforming loans     250.07 %     658.80 %     663.38 %     786.17 %     692.79 %  
    Allowance for credit losses to gross loans     1.37 %     1.36 %     1.37 %     1.36 %     1.36 %  
                                     
    Performing modifications to borrowers experiencing financial difficulty   $ 23,304   $ 24,083   $ 24,340   $ 24,602   $ 24,848  
                                   
        For the three-month period ended
    Quarterly Summary Income Statement Data:   Mar. 31,      Dec. 31,      Sep. 30,      June 30,      Mar. 31,
    (dollars in thousands, except per share data)      2025   2024   2024   2024   2024  
                                   
    Interest income:                                   
    Cash equivalents   $ 1,585   $ 784   $ 78   $ 541   $ 2,587  
    AFS securities and membership stock     5,684     5,558     5,547     5,677     5,486  
    Loans receivable     62,656     63,082     61,753     58,449     55,952  
    Total interest income     69,925     69,424     67,378     64,667     64,025  
    Interest expense:                              
    Deposits     28,795     29,538     28,796     27,999     27,893  
    Securities sold under agreements to repurchase     189     226     160     125     128  
    FHLB advances     1,076     1,099     1,326     1,015     1,060  
    Subordinated debt     386     418     435     433     435  
    Total interest expense     30,446     31,281     30,717     29,572     29,516  
    Net interest income     39,479     38,143     36,661     35,095     34,509  
    Provision for credit losses     932     932     2,159     900     900  
    Noninterest income:                              
    Deposit account charges and related fees     2,048     2,237     2,184     1,978     1,847  
    Bank card interchange income     1,341     1,301     1,499     1,770     1,301  
    Loan late charges     —     —     —     170     150  
    Loan servicing fees     224     232     286     494     267  
    Other loan fees     843     944     1,063     617     757  
    Net realized gains on sale of loans     114     133     361     97     99  
    Net realized gains (losses) on sale of AFS securities     48     —     —     —     (807 )
    Earnings on bank owned life insurance     512     522     517     498     483  
    Insurance brokerage commissions     340     300     287     331     312  
    Wealth management fees     902     843     730     838     866  
    Other noninterest income     294     353     247     974     309  
    Total noninterest income     6,666     6,865     7,174     7,767     5,584  
    Noninterest expense:                              
    Compensation and benefits     13,771     13,737     14,397     13,894     13,750  
    Occupancy and equipment, net     3,869     3,585     3,689     3,790     3,623  
    Data processing expense     2,359     2,224     2,171     1,929     2,349  
    Telecommunications expense     330     354     428     468     464  
    Deposit insurance premiums     674     588     472     638     677  
    Legal and professional fees     603     619     1,208     516     412  
    Advertising     530     442     546     640     622  
    Postage and office supplies     350     283     306     308     344  
    Intangible amortization     889     897     897     1,018     1,018  
    Foreclosed property expenses     37     73     12     52     60  
    Other noninterest expense     1,979     2,074     1,715     1,749     1,730  
    Total noninterest expense     25,391     24,876     25,841     25,002     25,049  
    Net income before income taxes     19,822     19,200     15,835     16,960     14,144  
    Income taxes     4,139     4,547     3,377     3,430     2,837  
    Net income     15,683     14,653     12,458     13,530     11,307  
    Less: Distributed and undistributed earnings allocated                              
    to participating securities     71     61     62     69     58  
    Net income available to common shareholders   $ 15,612   $ 14,592   $ 12,396   $ 13,461   $ 11,249  
                                   
    Basic earnings per common share   $ 1.39   $ 1.30   $ 1.10   $ 1.19   $ 1.00  
    Diluted earnings per common share     1.39     1.30     1.10     1.19     0.99  
    Dividends per common share     0.23     0.23     0.23     0.21     0.21  
    Average common shares outstanding:                              
    Basic     11,238,000     11,231,000     11,221,000     11,276,000     11,302,000  
    Diluted     11,262,000     11,260,000     11,240,000     11,283,000     11,313,000  
                                     
        For the three-month period ended  
    Quarterly Average Balance Sheet Data:   Mar. 31,      Dec. 31,      Sep. 30,      June 30,      Mar. 31,  
    (dollars in thousands)      2025   2024   2024   2024   2024  
                                     
    Interest-bearing cash equivalents   $ 143,206   $ 64,976   $ 5,547   $ 39,432   $ 182,427  
    AFS securities and membership stock     508,642     479,633     460,187     476,198     472,904  
    Loans receivable, gross     4,003,552     3,989,643     3,889,740     3,809,209     3,726,631  
    Total interest-earning assets     4,655,400     4,534,252     4,355,474     4,324,839     4,381,962  
    Other assets     290,739     291,217     283,056     285,956     291,591  
    Total assets   $ 4,946,139   $ 4,825,469   $ 4,638,530   $ 4,610,795   $ 4,673,553  
                                     
    Interest-bearing deposits   $ 3,737,849   $ 3,615,767   $ 3,416,752   $ 3,417,360   $ 3,488,104  
    Securities sold under agreements to repurchase     15,000     15,000     12,321     9,398     9,398  
    FHLB advances     106,187     107,054     123,723     102,757     111,830  
    Subordinated debt     23,189     23,175     23,162     23,149     23,137  
    Total interest-bearing liabilities     3,882,225     3,760,996     3,575,958     3,552,664     3,632,469  
    Noninterest-bearing deposits     513,157     524,878     531,946     539,637     532,075  
    Other noninterest-bearing liabilities     31,282     31,442     33,737     35,198     33,902  
    Total liabilities     4,426,664     4,317,316     4,141,641     4,127,499     4,198,446  
                                     
    Total stockholders’ equity     519,475     508,153     496,889     483,296     475,107  
                                     
    Total liabilities and stockholders’ equity   $ 4,946,139   $ 4,825,469   $ 4,638,530   $ 4,610,795   $ 4,673,553  
                                     
    Return on average assets     1.27 %     1.21 %     1.07 %     1.17 %     0.97 %
    Return on average common stockholders’ equity     12.1 %     11.5 %     10.0 %     11.2 %     9.5 %
                                     
    Net interest margin     3.39 %     3.36 %     3.37 %     3.25 %     3.15 %
    Net interest spread     2.87 %     2.79 %     2.75 %     2.65 %     2.59 %
                                     
    Efficiency ratio     55.1 %     55.3 %     59.0 %     58.3 %     61.2 %

    The MIL Network –

  • MIL-OSI: Wintrust Financial Corporation Reports Record First Quarter 2025 Net Income

    Source: GlobeNewswire (MIL-OSI)

    ROSEMONT, Ill., April 21, 2025 (GLOBE NEWSWIRE) — Wintrust Financial Corporation (“Wintrust”, “the Company”, “we” or “our”) (Nasdaq: WTFC) announced record quarterly net income of $189.0 million, or $2.69 per diluted common share, for the first quarter of 2025, compared to net income of $185.4 million, or $2.63 per diluted common share in the fourth quarter of 2024. Pre-tax, pre-provision income (non-GAAP) totaled a record $277.0 million, compared to $270.1 million for the fourth quarter of 2024.

    Timothy S. Crane, President and Chief Executive Officer, commented, “Building on our record results in 2024, we are pleased with our strong start to the year. Our balanced business model supported disciplined loan growth, which was funded by robust deposit growth in the first quarter of 2025.”

    Additionally, Mr. Crane noted, “Net interest margin in the first quarter increased by five basis points to 3.56% compared to the fourth quarter of 2024. The improvement in net interest margin was primarily attributed to decreased funding costs. The higher net interest margin and balance sheet growth supported record net interest income levels in the first quarter of 2025.”

    Highlights of the first quarter of 2025:
    Comparative information to the fourth quarter of 2024, unless otherwise noted

    • Total loans increased by $653 million, or 6% annualized.
    • Total deposits increased by approximately $1.1 billion, or 8% annualized.
    • Total assets increased by $1.0 billion, or 6% annualized.
    • Net interest income increased to $526.5 million in the first quarter of 2025, compared to $525.1 million in the fourth quarter of 2024, supported by improvement in net interest margin and balance sheet growth.        
      • Net interest margin increased to 3.54% (3.56% on a fully taxable-equivalent basis, non-GAAP) during the first quarter of 2025.
    • Non-interest income and non-interest expense were relatively stable in the first quarter of 2025. Notable impacts were:
      • Net gains on investment securities totaled $3.2 million.
      • Macatawa Bank acquisition-related costs were $2.7 million.
    • Provision for credit losses totaled $24.0 million in the first quarter of 2025, as compared to a provision for credit losses of $17.0 million in the fourth quarter of 2024.
    • Net charge-offs totaled $12.6 million, or 11 basis points of average total loans on an annualized basis, in the first quarter of 2025 compared to $15.9 million, or 13 basis points of average total loans on an annualized basis, in the fourth quarter of 2024.

    Mr. Crane noted, “The Company exhibited disciplined and consistent loan growth, as loans increased by $653 million compared to the prior quarter, or 6% on an annualized basis. Loan pipelines are strong and we remain prudent in our review of credit opportunities, ensuring our loan growth adheres to our conservative credit standards. Strong deposit growth of $1.1 billion, or 8% on an annualized basis, in the first quarter of 2025 outpaced loan growth, which resulted in our loans-to-deposits ratio ending the quarter at 90.9%. Non-interest bearing deposits totaled $11.2 billion and comprised 21% of total deposits at the end of the first quarter of 2025. We continue to leverage our enviable market positioning to generate deposits, grow loans and expand our franchise value.”

    Commenting on credit quality, Mr. Crane stated, “Prudent credit management, involving in-depth reviews of the portfolio, has led to positive outcomes by proactively identifying and resolving problem credits in a timely fashion. We continue to be conservative, diversified, and maintain our consistently strong credit standards. We believe the Company’s reserves are appropriate and we remain committed to maintaining credit quality as evidenced by our improved net charge-offs, stable levels of non-performing loans and our core loan allowance for credit losses of 1.37%.”

    In summary, Mr. Crane concluded, “Overall, we are proud of our first quarter results and believe we are well-positioned to continue our strong momentum as we navigate the macroeconomic uncertainty in 2025. The first quarter results highlighted the quality of our core deposit franchise and multifaceted nature of our business model, which uniquely positions us to be successful. Anticipated solid loan growth in the second quarter, combined with a stable net interest margin should result in higher levels of net interest income in the second quarter of 2025. Increasing our long-term franchise value and net interest income, coupled with disciplined expense control and maintaining our conservative credit standards, remain our focus in 2025.”

    The graphs shown on pages 3-7 illustrate certain financial highlights of the first quarter of 2025 as well as historical financial performance. See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 17 for additional information with respect to non-GAAP financial measures/ratios, including the reconciliations to the corresponding GAAP financial measures/ratios.

    Graphs available at the following link: http://ml.globenewswire.com/Resource/Download/cdbdc506-1b5a-4776-ae2e-e0b14106e712

    SUMMARY OF RESULTS:

    BALANCE SHEET

    Total assets increased $1.0 billion in the first quarter of 2025 as compared to the fourth quarter of 2024. Total loans increased by $653.4 million as compared to the fourth quarter of 2024. The increase in loans was primarily driven by growth in the commercial and premium finance life insurance loan portfolios.

    Total liabilities increased by $734.2 million in the first quarter of 2025 as compared to the fourth quarter of 2024, driven by a $1.1 billion increase in total deposits. Robust organic deposit growth in the first quarter of 2025 was driven by our diverse deposit product offerings. Non-interest bearing deposits as a percentage of total deposits were 21% at March 31, 2025, relatively stable compared to recent quarters. The Company’s loans-to-deposits ratio ended the quarter at 90.9%.

    For more information regarding changes in the Company’s balance sheet, see Consolidated Statements of Condition and Table 1 through Table 3 in this report.

    NET INTEREST INCOME

    For the first quarter of 2025, net interest income totaled $526.5 million, an increase of $1.3 million as compared to the fourth quarter of 2024, primarily due to improvement in net interest margin and growth in the balance sheet, partially offset by two fewer calendar days in the quarter.

    Net interest margin increased to 3.54% (3.56% on a fully taxable-equivalent basis, non-GAAP) during the first quarter of 2025, up five basis points compared to the fourth quarter of 2024. The yield on earning assets declined 11 basis points during the first quarter of 2025 primarily due to a 15 basis point decrease in loan yields. The net free funds contribution declined six basis points compared to the fourth quarter of 2024. These declines were more than offset by a 22 basis point reduction in funding cost, primarily due to a 23 basis point decline in the rate paid on interest-bearing deposits, compared to the fourth quarter of 2024.

    For more information regarding net interest income, see Table 4 through Table 7 in this report.

    ASSET QUALITY

    The allowance for credit losses totaled $448.4 million as of March 31, 2025, an increase from $437.1 million as of December 31, 2024. A provision for credit losses totaling $24.0 million was recorded for the first quarter of 2025 as compared to $17.0 million recorded in the fourth quarter of 2024. The higher provision for credit losses recognized in the first quarter of 2025 is primarily attributable to impacts related to the macroeconomic outlook. Future economic performance remains uncertain, thus downside risks to the baseline scenario, including widening credit spreads and lower valuations in financial markets, were considered to derive a qualitative addition to the provision for the first quarter of 2025. For more information regarding the allowance for credit losses and provision for credit losses, see Table 10 in this report.

    Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Company is required to estimate expected credit losses over the life of the Company’s financial assets as of the reporting date. There can be no assurances, however, that future losses will not significantly exceed the amounts provided for, thereby affecting future results of operations. A summary of the allowance for credit losses calculated for the loan components in each portfolio as of March 31, 2025, December 31, 2024, and September 30, 2024 is shown on Table 11 of this report.

    Net charge-offs totaled $12.6 million in the first quarter of 2025, a decrease of $3.3 million as compared to $15.9 million of net charge-offs in the fourth quarter of 2024. Net charge-offs as a percentage of average total loans were 11 basis points in the first quarter of 2025 on an annualized basis, compared to 13 basis points on an annualized basis in the fourth quarter of 2024. For more information regarding net charge-offs, see Table 9 in this report.

    The Company’s delinquency rates remain low and manageable. For more information regarding past due loans, see Table 12 in this report.

    Non-performing assets and non-performing loans have remained relatively stable compared to prior quarters. Non-performing assets totaled $195.0 million and comprised 0.30% of total assets as of March 31, 2025, as compared to $193.9 million, or 0.30% of total assets, as of December 31, 2024. Non-performing loans totaled $172.4 million and comprised 0.35% of total loans at March 31, 2025, as compared to $170.8 million and 0.36% of total loans at December 31, 2024. For more information regarding non-performing assets, see Table 13 in this report.

    NON-INTEREST INCOME

    Non-interest income totaled $116.6 million in the first quarter of 2025, increasing $3.2 million, as compared to $113.5 million in the fourth quarter of 2024.

    Wealth management revenue decreased by $4.7 million in the first quarter of 2025, as compared to the fourth quarter of 2024. Revenue in the first quarter of 2025 was impacted by the transition of systems and support for brokerage and certain private client business to a new third party in the current quarter, as well as lower assets under management due to lower market valuations. The reduction in revenue was driven by anticipated slowdown in activity from the transition, market conditions, and certain offsets to expenses. Wealth management revenue is comprised of the trust and asset management revenue of Wintrust Private Trust Company and Great Lakes Advisors, the brokerage commissions, managed money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.

    Mortgage banking revenue totaling $20.5 million in the first quarter of 2025 was essentially unchanged compared to the fourth quarter of 2024. For more information regarding mortgage banking revenue, see Table 15 in this report.

    The Company recognized $19.4 million in service charges on deposit accounts in the first quarter of 2025, as compared to $18.9 million in the fourth quarter of 2024. The $0.5 million increase in the first quarter of 2025 was primarily due to increased commercial account fees.

    The Company recognized $3.2 million in net gains on investment securities in the first quarter of 2025 as compared to $2.8 million in net losses in the fourth quarter of 2024. The net gains in the first quarter of 2025 were primarily the result of unrealized gains on the Company’s equity investment securities with a readily determinable fair value.

    For more information regarding non-interest income, see Table 14 in this report.

    NON-INTEREST EXPENSE

    Non-interest expenses totaled $366.1 million in the first quarter of 2025, decreasing $2.4 million as compared to $368.5 million in the fourth quarter of 2024.

    Salaries and employee benefits expense decreased by $0.6 million in the first quarter of 2025 as compared to the fourth quarter of 2024. This was primarily driven by decreased commissions and incentives compensation expense related to lower mortgage originations and wealth management revenue in the quarter partially offset by higher salaries expense which can be attributed to annual merit increases taking effect in the first quarter of the year.

    Advertising and marketing expenses in the first quarter of 2025 totaled $12.3 million, which was a $0.8 million decrease as compared to the fourth quarter of 2024. The reduction in the first quarter is primarily due to timing of marketing campaigns, sponsorship arrangements and other investments.

    Professional fees expense totaled $9.0 million in the first quarter of 2025, resulting in a decrease of $2.3 million as compared to the fourth quarter of 2024. The decrease in the current quarter relates primarily to decreased fees on consulting services. Professional fees include legal, audit, and tax fees, external loan review costs, consulting arrangements and normal regulatory exam assessments.

    Travel and entertainment expense totaled $5.3 million in the first quarter of 2025 which decreased $2.9 million as compared to the fourth quarter of 2024. The decrease is primarily due to seasonal corporate events that occur during the fourth quarter.

    The Macatawa Bank acquisition related costs were $2.7 million in the first quarter of 2025, primarily driven by consulting expenses, employee retention and severance costs, and contracted resource costs.

    For more information regarding non-interest expense, see Table 16 in this report.

    INCOME TAXES

    The Company recorded income tax expense of $64.0 million in the first quarter compared to $67.7 million in the fourth quarter of 2024. The effective tax rates were 25.30% in the first quarter of 2025 compared to 26.76% in the fourth quarter of 2024. The effective tax rates were partially impacted by the tax effects related to share-based compensation, which fluctuate based on the Company’s stock price and timing of employee stock option exercises and vesting of other share-based awards. The Company recorded net excess tax benefits of $3.7 million in the first quarter of 2025, compared to excess tax benefits of $50,000 in the fourth quarter of 2024 related to share-based compensation.

    BUSINESS SUMMARY

    Community Banking

    Through community banking, the Company provides banking and financial services primarily to individuals, small to mid-sized businesses, local governmental units and institutional clients residing primarily in the local areas the Company services. In the first quarter of 2025, community banking increased its commercial, commercial real estate and residential real estate loan portfolios.

    Mortgage banking revenue was $20.5 million for both the first quarter of 2025, and the fourth quarter of 2024. See Table 15 for more detail. Service charges on deposit accounts totaled $19.4 million in the first quarter of 2025 as compared to $18.9 million in the fourth quarter of 2024. The Company’s gross commercial and commercial real estate loan pipelines remained solid as of March 31, 2025 indicating momentum for expected continued loan growth in the second quarter of 2025.

    Specialty Finance

    Through specialty finance, the Company offers financing of insurance premiums for businesses and individuals, equipment financing through structured loans and lease products to customers in a variety of industries, accounts receivable financing and value-added, out-sourced administrative services and other services. Originations within the insurance premium financing receivables portfolios were $4.8 billion during the first quarter of 2025. Average balances increased by $213.4 million, as compared to the fourth quarter of 2024. The Company’s leasing divisions’ portfolio balances increased in the first quarter of 2025, with capital leases, loans, and equipment on operating leases of $2.7 billion, $1.1 billion, and $280.5 million as of March 31, 2025 respectively, as compared to $2.5 billion, $1.1 billion, and $278.3 million as of December 31, 2024, respectively. Revenues from the Company’s out-sourced administrative services business were $1.4 million in the first quarter of 2025, which was relatively stable compared to the fourth quarter of 2024.

    Wealth Management

    Through wealth management, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, and securities brokerage services. See “Items Impacting Comparative Results,” regarding the sale of the Company’s Retirement Benefits Advisors (“RBA”) division during the first quarter of 2024. Wealth management revenue totaled $34.0 million in the first quarter of 2025, down slightly as compared to the fourth quarter of 2024. At March 31, 2025, the Company’s wealth management subsidiaries had approximately $51.1 billion of assets under administration, which included $8.4 billion of assets owned by the Company and its subsidiary banks.

    ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS

    Business Combination

    On August 1, 2024, the Company completed its previously announced acquisition of Macatawa, the parent company of Macatawa Bank. In conjunction with the completed acquisition, the Company issued approximately 4.7 million shares of common stock. Macatawa operates 26 full-service branches located throughout communities in Kent, Ottawa and northern Allegan counties in the state of Michigan. Macatawa offers a full range of banking, retail and commercial lending, wealth management and ecommerce services to individuals, businesses and governmental entities. As of August 1, 2024, Macatawa had fair values of approximately $2.9 billion in assets, $2.3 billion in deposits and $1.3 billion in loans. As of March 31, 2025, the Company recorded goodwill of approximately $142.1 million on the purchase.

    Division Sale

    In the first quarter of 2024, the Company sold its RBA division and recorded a net gain of approximately $19.3 million ($20.0 million in other non-interest income from the sale, offset by $0.7 million in commissions/incentive compensation expense).

    WINTRUST FINANCIAL CORPORATION
    Key Operating Measures

    Wintrust’s key operating measures and growth rates for the first quarter of 2025, as compared to the fourth quarter of 2024 (sequential quarter) and first quarter of 2024 (linked quarter), are shown in the table below:

                  % or (1)basis point (bp) change  from
    4th Quarter
    2024    		   % or basis point (bp) change from
    1st Quarter
    2024
        Three Months Ended  
    (Dollars in thousands, except per share data)   Mar 31, 2025   Dec 31, 2024   Mar 31, 2024  
    Net income   $ 189,039     $ 185,362     $ 187,294   2   %   1   %
    Pre-tax income, excluding provision for credit losses (non-GAAP) (2)     277,018       270,060       271,629   3       2    
    Net income per common share – Diluted     2.69       2.63       2.89   2       (7 )  
    Cash dividends declared per common share     0.50       0.45       0.45   11       11    
    Net revenue (3)     643,108       638,599       604,774   1       6    
    Net interest income     526,474       525,148       464,194   0       13    
    Net interest margin     3.54 %     3.49 %     3.57 % 5   bps   (3 ) bps
    Net interest margin – fully taxable-equivalent (non-GAAP) (2)     3.56       3.51       3.59   5       (3 )  
    Net overhead ratio (4)     1.58       1.60       1.39   (2 )     19    
    Return on average assets     1.20       1.16       1.35   4       (15 )  
    Return on average common equity     12.21       11.82       14.42   39       (221 )  
    Return on average tangible common equity (non-GAAP) (2)     14.72       14.29       16.75   43       (203 )  
    At end of period                      
    Total assets   $ 65,870,066     $ 64,879,668     $ 57,576,933   6   %   14   %
    Total loans (5)     48,708,390       48,055,037       43,230,706   6       13    
    Total deposits     53,570,038       52,512,349       46,448,858   8       15    
    Total shareholders’ equity     6,600,537       6,344,297       5,436,400   16       21    

    (1)   Period-end balance sheet percentage changes are annualized.
    (2)   See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
    (3)   Net revenue is net interest income plus non-interest income.
    (4)   The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s average total assets. A lower ratio indicates a higher degree of efficiency.
    (5)   Excludes mortgage loans held-for-sale.

    Certain returns, yields, performance ratios, or quarterly growth rates are “annualized” in this presentation to represent an annual time period. This is done for analytical purposes to better discern, for decision-making purposes, underlying performance trends when compared to full-year or year-over-year amounts. For example, a 5% growth rate for a quarter would represent an annualized 20% growth rate. Additional supplemental financial information showing quarterly trends can be found on the Company’s website at www.wintrust.com by choosing “Financial Reports” under the “Investor Relations” heading, and then choosing “Financial Highlights.”


    WINTRUST FINANCIAL CORPORATION
    Selected Financial Highlights

        Three Months Ended
    (Dollars in thousands, except per share data)   Mar 31, 2025   Dec 31, 2024   Sep 30, 2024   Jun 30, 2024   Mar 31, 2024
    Selected Financial Condition Data (at end of period):
    Total assets   $ 65,870,066     $ 64,879,668     $ 63,788,424     $ 59,781,516     $ 57,576,933  
    Total loans (1)     48,708,390       48,055,037       47,067,447       44,675,531       43,230,706  
    Total deposits     53,570,038       52,512,349       51,404,966       48,049,026       46,448,858  
    Total shareholders’ equity     6,600,537       6,344,297       6,399,714       5,536,628       5,436,400  
    Selected Statements of Income Data:                    
    Net interest income   $ 526,474     $ 525,148     $ 502,583     $ 470,610     $ 464,194  
    Net revenue (2)     643,108       638,599       615,730       591,757       604,774  
    Net income     189,039       185,362       170,001       152,388       187,294  
    Pre-tax income, excluding provision for credit losses (non-GAAP) (3)     277,018       270,060       255,043       251,404       271,629  
    Net income per common share – Basic     2.73       2.68       2.51       2.35       2.93  
    Net income per common share – Diluted     2.69       2.63       2.47       2.32       2.89  
    Cash dividends declared per common share     0.50       0.45       0.45       0.45       0.45  
    Selected Financial Ratios and Other Data:                    
    Performance Ratios:                    
    Net interest margin     3.54 %     3.49 %     3.49 %     3.50 %     3.57 %
    Net interest margin – fully taxable-equivalent (non-GAAP) (3)     3.56       3.51       3.51       3.52       3.59  
    Non-interest income to average assets     0.74       0.71       0.74       0.85       1.02  
    Non-interest expense to average assets     2.32       2.31       2.36       2.38       2.41  
    Net overhead ratio (4)     1.58       1.60       1.62       1.53       1.39  
    Return on average assets     1.20       1.16       1.11       1.07       1.35  
    Return on average common equity     12.21       11.82       11.63       11.61       14.42  
    Return on average tangible common equity (non-GAAP) (3)     14.72       14.29       13.92       13.49       16.75  
    Average total assets   $ 64,107,042     $ 63,594,105     $ 60,915,283     $ 57,493,184     $ 55,602,695  
    Average total shareholders’ equity     6,460,941       6,418,403       5,990,429       5,450,173       5,440,457  
    Average loans to average deposits ratio     92.3 %     91.9 %     93.8 %     95.1 %     94.5 %
    Period-end loans to deposits ratio     90.9       91.5       91.6       93.0       93.1  
    Common Share Data at end of period:                    
    Market price per common share   $ 112.46     $ 124.71     $ 108.53     $ 98.56     $ 104.39  
    Book value per common share     92.47       89.21       90.06       82.97       81.38  
    Tangible book value per common share (non-GAAP) (3)     78.83       75.39       76.15       72.01       70.40  
    Common shares outstanding     66,919,325       66,495,227       66,481,543       61,760,139       61,736,715  
    Other Data at end of period:                    
    Common equity to assets ratio     9.4 %     9.1 %     9.4 %     8.6 %     8.7 %
    Tangible common equity ratio (non-GAAP) (3)     8.1       7.8       8.1       7.5       7.6  
    Tier 1 leverage ratio (5)     9.6       9.4       9.6       9.3       9.4  
    Risk-based capital ratios:                    
    Tier 1 capital ratio (5)     10.8       10.7       10.6       10.3       10.3  
    Common equity tier 1 capital ratio (5)     10.1       9.9       9.8       9.5       9.5  
    Total capital ratio (5)     12.5       12.3       12.2       12.1       12.2  
    Allowance for credit losses (6)   $ 448,387     $ 437,060     $ 436,193     $ 437,560     $ 427,504  
    Allowance for loan and unfunded lending-related commitment losses to total loans     0.92 %     0.91 %     0.93 %     0.98 %     0.99 %
    Number of:                    
    Bank subsidiaries     16       16       16       15       15  
    Banking offices     208       205       203       177       176  

    (1)   Excludes mortgage loans held-for-sale.
    (2)   Net revenue is net interest income plus non-interest income.
    (3)   See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
    (4)   The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s average total assets. A lower ratio indicates a higher degree of efficiency.
    (5)   Capital ratios for current quarter-end are estimated.
    (6)   The allowance for credit losses includes the allowance for loan losses, the allowance for unfunded lending-related commitments and the allowance for held-to-maturity securities losses.


    WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CONDITION

        (Unaudited)       (Unaudited)   (Unaudited)   (Unaudited)
        Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (In thousands)     2025       2024       2024       2024       2024  
    Assets                    
    Cash and due from banks   $ 616,216     $ 452,017     $ 725,465     $ 415,462     $ 379,825  
    Federal funds sold and securities purchased under resale agreements     63       6,519       5,663       62       61  
    Interest-bearing deposits with banks     4,238,237       4,409,753       3,648,117       2,824,314       2,131,077  
    Available-for-sale securities, at fair value     4,220,305       4,141,482       3,912,232       4,329,957       4,387,598  
    Held-to-maturity securities, at amortized cost     3,564,490       3,613,263       3,677,420       3,755,924       3,810,015  
    Trading account securities     —       4,072       3,472       4,134       2,184  
    Equity securities with readily determinable fair value     270,442       215,412       125,310       112,173       119,777  
    Federal Home Loan Bank and Federal Reserve Bank stock     281,893       281,407       266,908       256,495       224,657  
    Brokerage customer receivables     —       18,102       16,662       13,682       13,382  
    Mortgage loans held-for-sale, at fair value     316,804       331,261       461,067       411,851       339,884  
    Loans, net of unearned income     48,708,390       48,055,037       47,067,447       44,675,531       43,230,706  
    Allowance for loan losses     (378,207 )     (364,017 )     (360,279 )     (363,719 )     (348,612 )
    Net loans     48,330,183       47,691,020       46,707,168       44,311,812       42,882,094  
    Premises, software and equipment, net     776,679       779,130       772,002       722,295       744,769  
    Lease investments, net     280,472       278,264       270,171       275,459       283,557  
    Accrued interest receivable and other assets     1,598,255       1,739,334       1,721,090       1,671,334       1,580,142  
    Trade date securities receivable     463,023       —       551,031       —       —  
    Goodwill     796,932       796,942       800,780       655,955       656,181  
    Other acquisition-related intangible assets     116,072       121,690       123,866       20,607       21,730  
    Total assets   $ 65,870,066     $ 64,879,668     $ 63,788,424     $ 59,781,516     $ 57,576,933  
    Liabilities and Shareholders’ Equity                    
    Deposits:                    
    Non-interest-bearing   $ 11,201,859     $ 11,410,018     $ 10,739,132     $ 10,031,440     $ 9,908,183  
    Interest-bearing     42,368,179       41,102,331       40,665,834       38,017,586       36,540,675  
    Total deposits     53,570,038       52,512,349       51,404,966       48,049,026       46,448,858  
    Federal Home Loan Bank advances     3,151,309       3,151,309       3,171,309       3,176,309       2,676,751  
    Other borrowings     529,269       534,803       647,043       606,579       575,408  
    Subordinated notes     298,360       298,283       298,188       298,113       437,965  
    Junior subordinated debentures     253,566       253,566       253,566       253,566       253,566  
    Accrued interest payable and other liabilities     1,466,987       1,785,061       1,613,638       1,861,295       1,747,985  
    Total liabilities     59,269,529       58,535,371       57,388,710       54,244,888       52,140,533  
    Shareholders’ Equity:                    
    Preferred stock     412,500       412,500       412,500       412,500       412,500  
    Common stock     67,007       66,560       66,546       61,825       61,798  
    Surplus     2,494,347       2,482,561       2,470,228       1,964,645       1,954,532  
    Treasury stock     (9,156 )     (6,153 )     (6,098 )     (5,760 )     (5,757 )
    Retained earnings     4,045,854       3,897,164       3,748,715       3,615,616       3,498,475  
    Accumulated other comprehensive loss     (410,015 )     (508,335 )     (292,177 )     (512,198 )     (485,148 )
    Total shareholders’ equity     6,600,537       6,344,297       6,399,714       5,536,628       5,436,400  
    Total liabilities and shareholders’ equity   $ 65,870,066     $ 64,879,668     $ 63,788,424     $ 59,781,516     $ 57,576,933  

    WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

      Three Months Ended
    (Dollars in thousands, except per share data) Mar 31,
    2025    		   Dec 31,
    2024    		   Sep 30,
    2024    		   Jun 30,
    2024    		   Mar 31,
    2024
    Interest income                  
    Interest and fees on loans $ 768,362     $ 789,038     $ 794,163     $ 749,812     $ 710,341  
    Mortgage loans held-for-sale   4,246       5,623       6,233       5,434       4,146  
    Interest-bearing deposits with banks   36,766       46,256       32,608       19,731       16,658  
    Federal funds sold and securities purchased under resale agreements   179       53       277       17       19  
    Investment securities   72,016       67,066       69,592       69,779       69,678  
    Trading account securities   11       6       11       13       18  
    Federal Home Loan Bank and Federal Reserve Bank stock   5,307       5,157       5,451       4,974       4,478  
    Brokerage customer receivables   78       302       269       219       175  
    Total interest income   886,965       913,501       908,604       849,979       805,513  
    Interest expense                  
    Interest on deposits   320,233       346,388       362,019       335,703       299,532  
    Interest on Federal Home Loan Bank advances   25,441       26,050       26,254       24,797       22,048  
    Interest on other borrowings   6,792       7,519       9,013       8,700       9,248  
    Interest on subordinated notes   3,714       3,733       3,712       5,185       5,487  
    Interest on junior subordinated debentures   4,311       4,663       5,023       4,984       5,004  
    Total interest expense   360,491       388,353       406,021       379,369       341,319  
    Net interest income   526,474       525,148       502,583       470,610       464,194  
    Provision for credit losses   23,963       16,979       22,334       40,061       21,673  
    Net interest income after provision for credit losses   502,511       508,169       480,249       430,549       442,521  
    Non-interest income                  
    Wealth management   34,042       38,775       37,224       35,413       34,815  
    Mortgage banking   20,529       20,452       15,974       29,124       27,663  
    Service charges on deposit accounts   19,362       18,864       16,430       15,546       14,811  
    Gains (losses) on investment securities, net   3,196       (2,835 )     3,189       (4,282 )     1,326  
    Fees from covered call options   3,446       2,305       988       2,056       4,847  
    Trading (losses) gains, net   (64 )     (113 )     (130 )     70       677  
    Operating lease income, net   15,287       15,327       15,335       13,938       14,110  
    Other   20,836       20,676       24,137       29,282       42,331  
    Total non-interest income   116,634       113,451       113,147       121,147       140,580  
    Non-interest expense                  
    Salaries and employee benefits   211,526       212,133       211,261       198,541       195,173  
    Software and equipment   34,717       34,258       31,574       29,231       27,731  
    Operating lease equipment   10,471       10,263       10,518       10,834       10,683  
    Occupancy, net   20,778       20,597       19,945       19,585       19,086  
    Data processing   11,274       10,957       9,984       9,503       9,292  
    Advertising and marketing   12,272       13,097       18,239       17,436       13,040  
    Professional fees   9,044       11,334       9,783       9,967       9,553  
    Amortization of other acquisition-related intangible assets   5,618       5,773       4,042       1,122       1,158  
    FDIC insurance   10,926       10,640       10,512       10,429       14,537  
    OREO expenses, net   643       397       (938 )     (259 )     392  
    Other   38,821       39,090       35,767       33,964       32,500  
    Total non-interest expense   366,090       368,539       360,687       340,353       333,145  
    Income before taxes   253,055       253,081       232,709       211,343       249,956  
    Income tax expense   64,016       67,719       62,708       58,955       62,662  
    Net income $ 189,039     $ 185,362     $ 170,001     $ 152,388     $ 187,294  
    Preferred stock dividends   6,991       6,991       6,991       6,991       6,991  
    Net income applicable to common shares $ 182,048     $ 178,371     $ 163,010     $ 145,397     $ 180,303  
    Net income per common share – Basic $ 2.73     $ 2.68     $ 2.51     $ 2.35     $ 2.93  
    Net income per common share – Diluted $ 2.69     $ 2.63     $ 2.47     $ 2.32     $ 2.89  
    Cash dividends declared per common share $ 0.50     $ 0.45     $ 0.45     $ 0.45     $ 0.45  
    Weighted average common shares outstanding   66,726       66,491       64,888       61,839       61,481  
    Dilutive potential common shares   923       1,233       1,053       926       928  
    Average common shares and dilutive common shares   67,649       67,724       65,941       62,765       62,409  

    TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES

                        % Growth From
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Sep 30,
    2024    		   Jun 30,
    2024    		   Mar 31,
    2024    		 Dec 31,
    2024 (1)    		   Mar 31,
    2024
    Balance:                        
    Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies $ 181,580     $ 189,774     $ 314,693     $ 281,103     $ 193,064   (18 )%   (6 )%
    Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies   135,224       141,487       146,374       130,748       146,820   (18 )   (8 )
    Total mortgage loans held-for-sale $ 316,804     $ 331,261     $ 461,067     $ 411,851     $ 339,884   (18 )%   (7 )%
                             
    Core loans:                        
    Commercial                        
    Commercial and industrial $ 6,871,206     $ 6,867,422     $ 6,774,683     $ 6,236,290     $ 6,117,004   0 %   12 %
    Asset-based lending   1,701,962       1,611,001       1,709,685       1,465,867       1,355,255   23     26  
    Municipal   798,646       826,653       827,125       747,357       721,526   (14 )   11  
    Leases   2,680,943       2,537,325       2,443,721       2,439,128       2,344,295   23     14  
    Commercial real estate                        
    Residential construction   55,849       48,617       73,088       55,019       57,558   60     (3 )
    Commercial construction   2,086,797       2,065,775       1,984,240       1,866,701       1,748,607   4     19  
    Land   306,235       319,689       346,362       338,831       344,149   (17 )   (11 )
    Office   1,641,555       1,656,109       1,675,286       1,585,312       1,566,748   (4 )   5  
    Industrial   2,677,555       2,628,576       2,527,932       2,307,455       2,190,200   8     22  
    Retail   1,402,837       1,374,655       1,404,586       1,365,753       1,366,415   8     3  
    Multi-family   3,091,314       3,125,505       3,193,339       2,988,940       2,922,432   (4 )   6  
    Mixed use and other   1,652,759       1,685,018       1,588,584       1,439,186       1,437,328   (8 )   15  
    Home equity   455,683       445,028       427,043       356,313       340,349   10     34  
    Residential real estate                        
    Residential real estate loans for investment   3,561,417       3,456,009       3,252,649       2,933,157       2,746,916   12     30  
    Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies   86,952       114,985       92,355       88,503       90,911   (99 )   (4 )
    Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies   36,790       41,771       43,034       45,675       52,439   (48 )   (30 )
    Total core loans $ 29,108,500     $ 28,804,138     $ 28,363,712     $ 26,259,487     $ 25,402,132   4 %   15 %
                             
    Niche loans:                        
    Commercial                        
    Franchise $ 1,262,555     $ 1,268,521     $ 1,191,686     $ 1,150,460     $ 1,122,302   (2 )%   12 %
    Mortgage warehouse lines of credit   1,019,543       893,854       750,462       593,519       403,245   57     NM
    Community Advantage – homeowners association   525,492       525,446       501,645       491,722       475,832   0     10  
    Insurance agency lending   1,070,979       1,044,329       1,048,686       1,030,119       964,022   10     11  
    Premium Finance receivables                        
    U.S. property & casualty insurance   6,486,663       6,447,625       6,253,271       6,142,654       6,113,993   2     6  
    Canada property & casualty insurance   753,199       824,417       878,410       958,099       826,026   (35 )   (9 )
    Life insurance   8,365,140       8,147,145       7,996,899       7,962,115       7,872,033   11     6  
    Consumer and other   116,319       99,562       82,676       87,356       51,121   68     NM
    Total niche loans $ 19,599,890     $ 19,250,899     $ 18,703,735     $ 18,416,044     $ 17,828,574   7 %   10 %
                             
    Total loans, net of unearned income $ 48,708,390     $ 48,055,037     $ 47,067,447     $ 44,675,531     $ 43,230,706   6 %   13 %

    (1)   Annualized.


    TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

                        % Growth From
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Sep 30,
    2024    		   Jun 30,
    2024    		   Mar 31,
    2024    		 Dec 31,
    2024 (1)    		   Mar 31, 2024
    Balance:                        
    Non-interest-bearing $ 11,201,859     $ 11,410,018     $ 10,739,132     $ 10,031,440     $ 9,908,183   (7 )%   13 %
    NOW and interest-bearing demand deposits   6,340,168       5,865,546       5,466,932       5,053,909       5,720,947   33     11  
    Wealth management deposits (2)   1,408,790       1,469,064       1,303,354       1,490,711       1,347,817   (17 )   5  
    Money market   18,074,733       17,975,191       17,713,726       16,320,017       15,617,717   2     16  
    Savings   6,576,251       6,372,499       6,183,249       5,882,179       5,959,774   13     10  
    Time certificates of deposit   9,968,237       9,420,031       9,998,573       9,270,770       7,894,420   24     26  
    Total deposits $ 53,570,038     $ 52,512,349     $ 51,404,966     $ 48,049,026     $ 46,448,858   8 %   15 %
    Mix:                        
    Non-interest-bearing   21 %     22 %     21 %     21 %     21 %      
    NOW and interest-bearing demand deposits   12       11       11       11       12        
    Wealth management deposits (2)   3       3       3       3       3        
    Money market   34       34       34       34       34        
    Savings   12       12       12       12       13        
    Time certificates of deposit   18       18       19       19       17        
    Total deposits   100 %     100 %     100 %     100 %     100 %      

    (1)   Annualized.
    (2)   Represents deposit balances of the Company’s subsidiary banks from brokerage customers of Wintrust Investments, Chicago Deferred Exchange Company, LLC (“CDEC”), and trust and asset management customers of the Company.


    TABLE 3    : TIME CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSIS
    As of March 31, 2025

    (Dollars in thousands)   Total Time
    Certificates of
    Deposit    		   Weighted-Average
    Rate of Maturing
    Time Certificates
    of Deposit
    1-3 months   $ 3,845,120     4.34 %
    4-6 months     2,345,184     3.81  
    7-9 months     2,694,739     3.72  
    10-12 months     711,206     3.62  
    13-18 months     210,063     3.03  
    19-24 months     87,336     2.72  
    24+ months     74,589     2.47  
    Total   $ 9,968,237     3.94 %

    TABLE 4: QUARTERLY AVERAGE BALANCES

        Average Balance for three months ended,
        Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (In thousands)     2025       2024       2024       2024       2024  
    Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents (1)   $ 3,520,048     $ 3,934,016     $ 2,413,728     $ 1,485,481     $ 1,254,332  
    Investment securities (2)     8,409,735       8,090,271       8,276,576       8,203,764       8,349,796  
    FHLB and FRB stock     281,702       271,825       263,707       253,614       230,648  
    Liquidity management assets (3)   $ 12,211,485     $ 12,296,112     $ 10,954,011     $ 9,942,859     $ 9,834,776  
    Other earning assets (3)(4)     13,140       20,528       17,542       15,257       15,081  
    Mortgage loans held-for-sale     286,710       378,707       376,251       347,236       290,275  
    Loans, net of unearned income (3)(5)     47,833,380       47,153,014       45,920,586       43,819,354       42,129,893  
    Total earning assets (3)   $ 60,344,715     $ 59,848,361     $ 57,268,390     $ 54,124,706     $ 52,270,025  
    Allowance for loan and investment security losses     (375,371 )     (367,238 )     (383,736 )     (360,504 )     (361,734 )
    Cash and due from banks     476,423       470,033       467,333       434,916       450,267  
    Other assets     3,661,275       3,642,949       3,563,296       3,294,066       3,244,137  
    Total assets   $ 64,107,042     $ 63,594,105     $ 60,915,283     $ 57,493,184     $ 55,602,695  
                         
    NOW and interest-bearing demand deposits   $ 6,046,189     $ 5,601,672     $ 5,174,673     $ 4,985,306     $ 5,680,265  
    Wealth management deposits     1,574,480       1,430,163       1,362,747       1,531,865       1,510,203  
    Money market accounts     17,581,141       17,579,395       16,436,111       15,272,126       14,474,492  
    Savings accounts     6,479,444       6,288,727       6,096,746       5,878,844       5,792,118  
    Time deposits     9,406,126       9,702,948       9,598,109       8,546,172       7,148,456  
    Interest-bearing deposits   $ 41,087,380     $ 40,602,905     $ 38,668,386     $ 36,214,313     $ 34,605,534  
    Federal Home Loan Bank advances     3,151,309       3,160,658       3,178,973       3,096,920       2,728,849  
    Other borrowings     582,139       577,786       622,792       587,262       627,711  
    Subordinated notes     298,306       298,225       298,135       410,331       437,893  
    Junior subordinated debentures     253,566       253,566       253,566       253,566       253,566  
    Total interest-bearing liabilities   $ 45,372,700     $ 44,893,140     $ 43,021,852     $ 40,562,392     $ 38,653,553  
    Non-interest-bearing deposits     10,732,156       10,718,738       10,271,613       9,879,134       9,972,646  
    Other liabilities     1,541,245       1,563,824       1,631,389       1,601,485       1,536,039  
    Equity     6,460,941       6,418,403       5,990,429       5,450,173       5,440,457  
    Total liabilities and shareholders’ equity   $ 64,107,042     $ 63,594,105     $ 60,915,283     $ 57,493,184     $ 55,602,695  
                         
    Net free funds/contribution (6)   $ 14,972,015     $ 14,955,221     $ 14,246,538     $ 13,562,314     $ 13,616,472  

    (1)   Includes interest-bearing deposits from banks and securities purchased under resale agreements with original maturities of greater than three months. Cash equivalents include federal funds sold and securities purchased under resale agreements with original maturities of three months or less.
    (2)   Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets.
    (3)   See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
    (4)   Other earning assets include brokerage customer receivables and trading account securities.
    (5)   Loans, net of unearned income, include non-accrual loans.
    (6)   Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.


    TABLE 5: QUARTERLY NET INTEREST INCOME

        Net Interest Income for three months ended,
        Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (In thousands)     2025       2024       2024       2024       2024  
    Interest income:                    
    Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents   $ 36,945     $ 46,308     $ 32,885     $ 19,748     $ 16,677  
    Investment securities     72,706       67,783       70,260       70,346       70,228  
    FHLB and FRB stock     5,307       5,157       5,451       4,974       4,478  
    Liquidity management assets (1)   $ 114,958     $ 119,248     $ 108,596     $ 95,068     $ 91,383  
    Other earning assets (1)     92       310       282       235       198  
    Mortgage loans held-for-sale     4,246       5,623       6,233       5,434       4,146  
    Loans, net of unearned income (1)     770,568       791,390       796,637       752,117       712,587  
    Total interest income   $ 889,864     $ 916,571     $ 911,748     $ 852,854     $ 808,314  
                         
    Interest expense:                    
    NOW and interest-bearing demand deposits   $ 33,600     $ 31,695     $ 30,971     $ 32,719     $ 34,896  
    Wealth management deposits     8,606       9,412       10,158       10,294       10,461  
    Money market accounts     146,374       159,945       167,382       155,100       137,984  
    Savings accounts     35,923       38,402       42,892       41,063       39,071  
    Time deposits     95,730       106,934       110,616       96,527       77,120  
    Interest-bearing deposits   $ 320,233     $ 346,388     $ 362,019     $ 335,703     $ 299,532  
    Federal Home Loan Bank advances     25,441       26,050       26,254       24,797       22,048  
    Other borrowings     6,792       7,519       9,013       8,700       9,248  
    Subordinated notes     3,714       3,733       3,712       5,185       5,487  
    Junior subordinated debentures     4,311       4,663       5,023       4,984       5,004  
    Total interest expense   $ 360,491     $ 388,353     $ 406,021     $ 379,369     $ 341,319  
                         
    Less: Fully taxable-equivalent adjustment     (2,899 )     (3,070 )     (3,144 )     (2,875 )     (2,801 )
    Net interest income (GAAP) (2)     526,474       525,148       502,583       470,610       464,194  
    Fully taxable-equivalent adjustment     2,899       3,070       3,144       2,875       2,801  
    Net interest income, fully taxable-equivalent (non-GAAP) (2)   $ 529,373     $ 528,218     $ 505,727     $ 473,485     $ 466,995  

    (1)   Interest income on tax-advantaged loans, trading securities and investment securities reflects a taxable-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period.
    (2)   See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.


    TABLE 6: QUARTERLY NET INTEREST MARGIN

        Net Interest Margin for three months ended,
        Mar 31,
    2025    		   Dec 31,
    2024    		   Sep 30,
    2024    		   Jun 30,
    2024    		   Mar 31,
    2024
    Yield earned on:                    
    Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents   4.26 %   4.68 %   5.42 %   5.35 %   5.35 %
    Investment securities   3.51     3.33     3.38     3.45     3.38  
    FHLB and FRB stock   7.64     7.55     8.22     7.89     7.81  
    Liquidity management assets   3.82 %   3.86 %   3.94 %   3.85 %   3.74 %
    Other earning assets   2.84     6.01     6.38     6.23     5.25  
    Mortgage loans held-for-sale   6.01     5.91     6.59     6.29     5.74  
    Loans, net of unearned income   6.53     6.68     6.90     6.90     6.80  
    Total earning assets   5.98 %   6.09 %   6.33 %   6.34 %   6.22 %
                         
    Rate paid on:                    
    NOW and interest-bearing demand deposits   2.25 %   2.25 %   2.38 %   2.64 %   2.47 %
    Wealth management deposits   2.22     2.62     2.97     2.70     2.79  
    Money market accounts   3.38     3.62     4.05     4.08     3.83  
    Savings accounts   2.25     2.43     2.80     2.81     2.71  
    Time deposits   4.13     4.38     4.58     4.54     4.34  
    Interest-bearing deposits   3.16 %   3.39 %   3.72 %   3.73 %   3.48 %
    Federal Home Loan Bank advances   3.27     3.28     3.29     3.22     3.25  
    Other borrowings   4.73     5.18     5.76     5.96     5.92  
    Subordinated notes   5.05     4.98     4.95     5.08     5.04  
    Junior subordinated debentures   6.90     7.32     7.88     7.91     7.94  
    Total interest-bearing liabilities   3.22 %   3.44 %   3.75 %   3.76 %   3.55 %
                         
    Interest rate spread (1)(2)   2.76 %   2.65 %   2.58 %   2.58 %   2.67 %
    Less: Fully taxable-equivalent adjustment   (0.02 )   (0.02 )   (0.02 )   (0.02 )   (0.02 )
    Net free funds/contribution (3)   0.80     0.86     0.93     0.94     0.92  
    Net interest margin (GAAP) (2)   3.54 %   3.49 %   3.49 %   3.50 %   3.57 %
    Fully taxable-equivalent adjustment   0.02     0.02     0.02     0.02     0.02  
    Net interest margin, fully taxable-equivalent (non-GAAP) (2)   3.56 %   3.51 %   3.51 %   3.52 %   3.59 %

    (1)   Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
    (2)   See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
    (3)   Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.


    TABLE 7    : INTEREST RATE SENSITIVITY

    As an ongoing part of its financial strategy, the Company attempts to manage the impact of fluctuations in market interest rates on net interest income. Management measures its exposure to changes in interest rates by modeling many different interest rate scenarios.

    The following interest rate scenarios display the percentage change in net interest income over a one-year time horizon assuming increases and decreases of 100 and 200 basis points as compared to projected net interest income in a scenario with no assumed rate changes. The Static Shock Scenario results incorporate actual cash flows and repricing characteristics for balance sheet instruments following an instantaneous, parallel change in market rates based upon a static (i.e. no growth or constant) balance sheet. Conversely, the Ramp Scenario results incorporate management’s projections of future volume and pricing of each of the product lines following a gradual, parallel change in market rates over twelve months. Actual results may differ from these simulated results due to timing, magnitude, and frequency of interest rate changes as well as changes in market conditions and management strategies. The interest rate sensitivity for both the Static Shock and Ramp Scenario is as follows:

    Static Shock Scenario   +200 Basis
    Points    		   +100 Basis
    Points    		   -100 Basis
    Points    		   -200 Basis
    Points
    Mar 31, 2025   (1.8 )%   (0.6 )%   (0.2 )%   (1.2 )%
    Dec 31, 2024   (1.6 )   (0.6 )   (0.3 )   (1.5 )
    Sep 30, 2024   1.2     1.1     0.4     (0.9 )
    Jun 30, 2024   1.5     1.0     0.6     (0.0 )
    Mar 31, 2024   1.9     1.4     1.5     1.6  
    Ramp Scenario +200 Basis
    Points    		   +100 Basis
    Points    		   -100 Basis
    Points    		     -200 Basis
    Points
    Mar 31, 2025 0.2 %   0.2 %   (0.1 )%   (0.5 )%
    Dec 31, 2024 (0.2 )   (0.0 )   0.0     (0.3 )
    Sep 30, 2024 1.6     1.2     0.7     0.5  
    Jun 30, 2024 1.2     1.0     0.9     1.0  
    Mar 31, 2024 0.8     0.6     1.3     2.0  

    As shown above, the magnitude of potential changes in net interest income in various interest rate scenarios has continued to remain relatively neutral. As the current interest rate cycle progressed, management took action to reposition its sensitivity to interest rates. To this end, management has executed various derivative instruments including collars and receive fixed swaps to hedge variable rate loan exposures and originated a higher percentage of its loan originations in longer-term fixed-rate loans. The Company will continue to monitor current and projected interest rates and may execute additional derivatives to mitigate potential fluctuations in the net interest margin in future periods.


    TABLE 8    : MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES

      Loans repricing or contractual maturity period
    As of March 31, 2025
    (In thousands)
    		 One year or
    less    		   From one to
    five years    		   From five to fifteen years   After fifteen years   Total
    Commercial                  
    Fixed rate $ 405,736     $ 3,600,171     $ 2,122,563     $ 20,444     $ 6,148,914  
    Variable rate   9,781,709       703       —       —       9,782,412  
    Total commercial $ 10,187,445     $ 3,600,874     $ 2,122,563     $ 20,444     $ 15,931,326  
    Commercial real estate                  
    Fixed rate $ 658,413     $ 2,762,221     $ 365,181     $ 63,593     $ 3,849,408  
    Variable rate   9,054,583       10,843       67       —       9,065,493  
    Total commercial real estate $ 9,712,996     $ 2,773,064     $ 365,248     $ 63,593     $ 12,914,901  
    Home equity                  
    Fixed rate $ 8,881     $ 838     $ —     $ 17     $ 9,736  
    Variable rate   445,947       —       —       —       445,947  
    Total home equity $ 454,828     $ 838     $ —     $ 17     $ 455,683  
    Residential real estate                  
    Fixed rate $ 13,336     $ 4,473     $ 74,883     $ 1,055,143     $ 1,147,835  
    Variable rate   97,815       623,879       1,815,630       —       2,537,324  
    Total residential real estate $ 111,151     $ 628,352     $ 1,890,513     $ 1,055,143     $ 3,685,159  
    Premium finance receivables – property & casualty                  
    Fixed rate $ 7,135,963     $ 103,899     $ —     $ —     $ 7,239,862  
    Variable rate   —       —       —       —       —  
    Total premium finance receivables – property & casualty $ 7,135,963     $ 103,899     $ —     $ —     $ 7,239,862  
    Premium finance receivables – life insurance                  
    Fixed rate $ 350,802     $ 207,832     $ 4,000     $ 4,248     $ 566,882  
    Variable rate   7,798,258       —       —       —       7,798,258  
    Total premium finance receivables – life insurance $ 8,149,060     $ 207,832     $ 4,000     $ 4,248     $ 8,365,140  
    Consumer and other                  
    Fixed rate $ 44,731     $ 7,937     $ 883     $ 914     $ 54,465  
    Variable rate   61,854       —       —       —       61,854  
    Total consumer and other $ 106,585     $ 7,937     $ 883     $ 914     $ 116,319  
                       
    Total per category                  
    Fixed rate $ 8,617,862     $ 6,687,371     $ 2,567,510     $ 1,144,359     $ 19,017,102  
    Variable rate   27,240,166       635,425       1,815,697       —       29,691,288  
    Total loans, net of unearned income $ 35,858,028     $ 7,322,796     $ 4,383,207     $ 1,144,359     $ 48,708,390  
    Less: Existing cash flow hedging derivatives (1)   (6,700,000 )                
    Total loans repricing or maturing in one year or less, adjusted for cash flow hedging activity $ 29,158,028                  
                       
    Variable Rate Loan Pricing by Index:                  
    SOFR tenors (2)                 $ 18,328,835  
    12- month CMT (3)                   6,722,305  
    Prime                   3,420,624  
    Fed Funds                   819,437  
    Other U.S. Treasury tenors                   190,187  
    Other                   209,900  
    Total variable rate                 $ 29,691,288  

    (1)   Excludes cash flow hedges with future effective starting dates.
    (2)   SOFR – Secured Overnight Financing Rate.
    (3)   CMT – Constant Maturity Treasury Rate.

    Graph available at the following link: http://ml.globenewswire.com/Resource/Download/bebf97a7-5d4d-430d-a436-ae832412a4db

    Source: Bloomberg

    As noted in the table on the previous page, the majority of the Company’s portfolio is tied to SOFR and CMT indices which, as shown in the table above, do not mirror the same changes as the Prime rate, which has historically moved when the Federal Reserve raises or lowers interest rates. Specifically, the Company has variable rate loans of $15.4 billion tied to one-month SOFR and $6.7 billion tied to twelve-month CMT. The above chart shows:

        Basis Point (bp) Change in
        1-month
    SOFR    		   12- month CMT   Prime  
    First Quarter 2025   (1 ) bps (13 ) bps 0   bps
    Fourth Quarter 2024   (52 )   18     (50 )  
    Third Quarter 2024   (49 )   (111 )   (50 )  
    Second Quarter 2024   1     6     0    
    First Quarter 2024   (2 )   24     0    

    TABLE 9: ALLOWANCE FOR CREDIT LOSSES

        Three Months Ended
        Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (Dollars in thousands)     2025       2024       2024       2024       2024  
    Allowance for credit losses at beginning of period   $ 437,060     $ 436,193     $ 437,560     $ 427,504     $ 427,612  
    Provision for credit losses – Other     23,963       16,979       6,787       40,061       21,673  
    Provision for credit losses – Day 1 on non-PCD assets acquired during the period     —       —       15,547       —       —  
    Initial allowance for credit losses recognized on PCD assets acquired during the period     —       —       3,004       —       —  
    Other adjustments     4       (187 )     30       (19 )     (31 )
    Charge-offs:                    
    Commercial     9,722       5,090       22,975       9,584       11,215  
    Commercial real estate     454       1,037       95       15,526       5,469  
    Home equity     —       —       —       —       74  
    Residential real estate     —       114       —       23       38  
    Premium finance receivables – property & casualty     7,114       13,301       7,790       9,486       6,938  
    Premium finance receivables – life insurance     12       —       4       —       —  
    Consumer and other     147       189       154       137       107  
    Total charge-offs     17,449       19,731       31,018       34,756       23,841  
    Recoveries:                    
    Commercial     929       775       649       950       479  
    Commercial real estate     12       172       30       90       31  
    Home equity     216       194       101       35       29  
    Residential real estate     136       0       5       8       2  
    Premium finance receivables – property & casualty     3,487       2,646       3,436       3,658       1,519  
    Premium finance receivables – life insurance     —       —       41       5       8  
    Consumer and other     29       19       21       24       23  
    Total recoveries     4,809       3,806       4,283       4,770       2,091  
    Net charge-offs     (12,640 )     (15,925 )     (26,735 )     (29,986 )     (21,750 )
    Allowance for credit losses at period end   $ 448,387     $ 437,060     $ 436,193     $ 437,560     $ 427,504  
                         
    Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:
    Commercial     0.23 %     0.11 %     0.61 %     0.25 %     0.33 %
    Commercial real estate     0.01       0.03       0.00       0.53       0.19  
    Home equity     (0.20 )     (0.18 )     (0.10 )     (0.04 )     0.05  
    Residential real estate     (0.02 )     0.01       0.00       0.00       0.01  
    Premium finance receivables – property & casualty     0.20       0.59       0.24       0.33       0.32  
    Premium finance receivables – life insurance     0.00       —       (0.00 )     (0.00 )     (0.00 )
    Consumer and other     0.45       0.63       0.63       0.56       0.42  
    Total loans, net of unearned income     0.11 %     0.13 %     0.23 %     0.28 %     0.21 %
                         
    Loans at period end   $ 48,708,390     $ 48,055,037     $ 47,067,447     $ 44,675,531     $ 43,230,706  
    Allowance for loan losses as a percentage of loans at period end     0.78 %     0.76 %     0.77 %     0.81 %     0.81 %
    Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end     0.92       0.91       0.93       0.98       0.99  

    PCD – Purchase Credit Deteriorated


    TABLE 10    : ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY COMPONENT

        Three Months Ended
        Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (In thousands)     2025       2024       2024       2024       2024  
    Provision for loan losses – Other   $ 26,826     $ 19,852     $ 6,782     $ 45,111     $ 26,159  
    Provision for credit losses – Day 1 on non-PCD assets acquired during the period     —       —       15,547       —       —  
    Provision for unfunded lending-related commitments losses – Other     (2,852 )     (2,851 )     17       (5,212 )     (4,468 )
    Provision for held-to-maturity securities losses     (11 )     (22 )     (12 )     162       (18 )
    Provision for credit losses   $ 23,963     $ 16,979     $ 22,334     $ 40,061     $ 21,673  
                         
    Allowance for loan losses   $ 378,207     $ 364,017     $ 360,279     $ 363,719     $ 348,612  
    Allowance for unfunded lending-related commitments losses     69,734       72,586       75,435       73,350       78,563  
    Allowance for loan losses and unfunded lending-related commitments losses     447,941       436,603       435,714       437,069       427,175  
    Allowance for held-to-maturity securities losses     446       457       479       491       329  
    Allowance for credit losses   $ 448,387     $ 437,060     $ 436,193     $ 437,560     $ 427,504  

    PCD – Purchase Credit Deteriorated 


    TABLE 11: ALLOWANCE BY LOAN PORTFOLIO

    The table below summarizes the calculation of allowance for loan losses and allowance for unfunded lending-related commitments losses for the Company’s loan portfolios as well as core and niche portfolios, as of March 31, 2025, December 31, 2024 and September 30, 2024.

      As of Mar 31, 2025 As of Dec 31, 2024 As of Sep 30, 2024
    (Dollars in thousands) Recorded
    Investment    		   Calculated
    Allowance    		   % of its
    category’s balance    		 Recorded
    Investment    		   Calculated
    Allowance    		   % of its
    category’s balance    		 Recorded
    Investment    		   Calculated
    Allowance    		   % of its
    category’s balance
    Commercial:                              
    Commercial, industrial and other $ 15,931,326   $ 201,183   1.26 % $ 15,574,551   $ 175,837   1.13 % $ 15,247,693   $ 171,598   1.13 %
    Commercial real estate:                              
    Construction and development   2,448,881     71,388   2.92     2,434,081     87,236   3.58     2,403,690     97,949   4.07  
    Non-construction   10,466,020     138,622   1.32     10,469,863     135,620   1.30     10,389,727     133,195   1.28  
    Total commercial real estate $ 12,914,901   $ 210,010   1.63 % $ 12,903,944   $ 222,856   1.73 % $ 12,793,417   $ 231,144   1.81 %
    Total commercial and commercial real estate $ 28,846,227   $ 411,193   1.43 % $ 28,478,495   $ 398,693   1.40 % $ 28,041,110   $ 402,742   1.44 %
    Home equity   455,683     9,139   2.01     445,028     8,943   2.01     427,043     8,823   2.07  
    Residential real estate   3,685,159     10,652   0.29     3,612,765     10,335   0.29     3,388,038     9,745   0.29  
    Premium finance receivables                              
    Property and casualty insurance   7,239,862     15,310   0.21     7,272,042     17,111   0.24     7,131,681     13,045   0.18  
    Life insurance   8,365,140     729   0.01     8,147,145     709   0.01     7,996,899     698   0.01  
    Consumer and other   116,319     918   0.79     99,562     812   0.82     82,676     661   0.80  
    Total loans, net of unearned income $ 48,708,390   $ 447,941   0.92 % $ 48,055,037   $ 436,603   0.91 % $ 47,067,447   $ 435,714   0.93 %
                                   
    Total core loans (1) $ 29,108,500   $ 397,664   1.37 % $ 28,804,138   $ 392,319   1.36 % $ 28,363,712   $ 396,394   1.40 %
    Total niche loans (1)   19,599,890     50,277   0.26     19,250,899     44,284   0.23     18,703,735     39,320   0.21  

    (1)   See Table 1 for additional detail on core and niche loans.


    TABLE 12    : LOAN PORTFOLIO AGING

    (In thousands)   Mar 31, 2025   Dec 31, 2024   Sep 30, 2024   Jun 30, 2024   Mar 31, 2024
    Loan Balances:                    
    Commercial                    
    Nonaccrual   $ 70,560     $ 73,490     $ 63,826     $ 51,087     $ 31,740  
    90+ days and still accruing     46       104       20       304       27  
    60-89 days past due     15,243       54,844       32,560       16,485       30,248  
    30-59 days past due     97,397       92,551       46,057       36,358       77,715  
    Current     15,748,080       15,353,562       15,105,230       14,050,228       13,363,751  
    Total commercial   $ 15,931,326     $ 15,574,551     $ 15,247,693     $ 14,154,462     $ 13,503,481  
    Commercial real estate                    
    Nonaccrual   $ 26,187     $ 21,042     $ 42,071     $ 48,289     $ 39,262  
    90+ days and still accruing     —       —       225       —       —  
    60-89 days past due     6,995       10,521       13,439       6,555       16,713  
    30-59 days past due     83,653       30,766       48,346       38,065       32,998  
    Current     12,798,066       12,841,615       12,689,336       11,854,288       11,544,464  
    Total commercial real estate   $ 12,914,901     $ 12,903,944     $ 12,793,417     $ 11,947,197     $ 11,633,437  
    Home equity                    
    Nonaccrual   $ 2,070     $ 1,117     $ 1,122     $ 1,100     $ 838  
    90+ days and still accruing     —       —       —       —       —  
    60-89 days past due     984       1,233       1,035       275       212  
    30-59 days past due     3,403       2,148       2,580       1,229       1,617  
    Current     449,226       440,530       422,306       353,709       337,682  
    Total home equity   $ 455,683     $ 445,028     $ 427,043     $ 356,313     $ 340,349  
    Residential real estate                    
    Early buy-out loans guaranteed by U.S. government agencies (1)   $ 123,742     $ 156,756     $ 135,389     $ 134,178     $ 143,350  
    Nonaccrual     22,522       23,762       17,959       18,198       17,901  
    90+ days and still accruing     —       —       —       —       —  
    60-89 days past due     1,351       5,708       6,364       1,977       —  
    30-59 days past due     38,943       18,917       2,160       130       24,523  
    Current     3,498,601       3,407,622       3,226,166       2,912,852       2,704,492  
    Total residential real estate   $ 3,685,159     $ 3,612,765     $ 3,388,038     $ 3,067,335     $ 2,890,266  
    Premium finance receivables – property & casualty                    
    Nonaccrual   $ 29,846     $ 28,797     $ 36,079     $ 32,722     $ 32,648  
    90+ days and still accruing     18,081       16,031       18,235       22,427       25,877  
    60-89 days past due     19,717       19,042       18,740       29,925       15,274  
    30-59 days past due     39,459       68,219       30,204       45,927       59,729  
    Current     7,132,759       7,139,953       7,028,423       6,969,752       6,806,491  
    Total Premium finance receivables – property & casualty   $ 7,239,862     $ 7,272,042     $ 7,131,681     $ 7,100,753     $ 6,940,019  
    Premium finance receivables – life insurance                    
    Nonaccrual   $ —     $ 6,431     $ —     $ —     $ —  
    90+ days and still accruing     2,962       —       —       —       —  
    60-89 days past due     10,587       72,963       10,902       4,118       32,482  
    30-59 days past due     29,924       36,405       74,432       17,693       100,137  
    Current     8,321,667       8,031,346       7,911,565       7,940,304       7,739,414  
    Total Premium finance receivables – life insurance   $ 8,365,140     $ 8,147,145     $ 7,996,899     $ 7,962,115     $ 7,872,033  
    Consumer and other                    
    Nonaccrual   $ 18     $ 2     $ 2     $ 3     $ 19  
    90+ days and still accruing     98       47       148       121       47  
    60-89 days past due     162       59       22       81       16  
    30-59 days past due     542       882       264       366       210  
    Current     115,499       98,572       82,240       86,785       50,829  
    Total consumer and other   $ 116,319     $ 99,562     $ 82,676     $ 87,356     $ 51,121  
    Total loans, net of unearned income                    
    Early buy-out loans guaranteed by U.S. government agencies (1)   $ 123,742     $ 156,756     $ 135,389     $ 134,178     $ 143,350  
    Nonaccrual     151,203       154,641       161,059       151,399       122,408  
    90+ days and still accruing     21,187       16,182       18,628       22,852       25,951  
    60-89 days past due     55,039       164,370       83,062       59,416       94,945  
    30-59 days past due     293,321       249,888       204,043       139,768       296,929  
    Current     48,063,898       47,313,200       46,465,266       44,167,918       42,547,123  
    Total loans, net of unearned income   $ 48,708,390     $ 48,055,037     $ 47,067,447     $ 44,675,531     $ 43,230,706  

    (1)   Early buy-out loans are insured or guaranteed by the Federal Housing Administration or the U.S. Department of Veterans Affairs, subject to indemnifications and insurance limits for certain loans.


    TABLE 13:     NON-PERFORMING ASSETS(1)

      Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (Dollars in thousands)   2025       2024       2024       2024       2024  
    Loans past due greater than 90 days and still accruing:                  
    Commercial $ 46     $ 104     $ 20     $ 304     $ 27  
    Commercial real estate   —       —       225       —       —  
    Home equity   —       —       —       —       —  
    Residential real estate   —       —       —       —       —  
    Premium finance receivables – property & casualty   18,081       16,031       18,235       22,427       25,877  
    Premium finance receivables – life insurance   2,962       —       —       —       —  
    Consumer and other   98       47       148       121       47  
    Total loans past due greater than 90 days and still accruing   21,187       16,182       18,628       22,852       25,951  
    Non-accrual loans:                  
    Commercial   70,560       73,490       63,826       51,087       31,740  
    Commercial real estate   26,187       21,042       42,071       48,289       39,262  
    Home equity   2,070       1,117       1,122       1,100       838  
    Residential real estate   22,522       23,762       17,959       18,198       17,901  
    Premium finance receivables – property & casualty   29,846       28,797       36,079       32,722       32,648  
    Premium finance receivables – life insurance   —       6,431       —       —       —  
    Consumer and other   18       2       2       3       19  
    Total non-accrual loans   151,203       154,641       161,059       151,399       122,408  
    Total non-performing loans:                  
    Commercial   70,606       73,594       63,846       51,391       31,767  
    Commercial real estate   26,187       21,042       42,296       48,289       39,262  
    Home equity   2,070       1,117       1,122       1,100       838  
    Residential real estate   22,522       23,762       17,959       18,198       17,901  
    Premium finance receivables – property & casualty   47,927       44,828       54,314       55,149       58,525  
    Premium finance receivables – life insurance   2,962       6,431       —       —       —  
    Consumer and other   116       49       150       124       66  
    Total non-performing loans $ 172,390     $ 170,823     $ 179,687     $ 174,251     $ 148,359  
    Other real estate owned   22,625       23,116       13,682       19,731       14,538  
    Total non-performing assets $ 195,015     $ 193,939     $ 193,369     $ 193,982     $ 162,897  
    Total non-performing loans by category as a percent of its own respective category’s period-end balance:                  
    Commercial   0.44 %     0.47 %     0.42 %     0.36 %     0.24 %
    Commercial real estate   0.20       0.16       0.33       0.40       0.34  
    Home equity   0.45       0.25       0.26       0.31       0.25  
    Residential real estate   0.61       0.66       0.53       0.59       0.62  
    Premium finance receivables – property & casualty   0.66       0.62       0.76       0.78       0.84  
    Premium finance receivables – life insurance   0.04       0.08       —       —       —  
    Consumer and other   0.10       0.05       0.18       0.14       0.13  
    Total loans, net of unearned income   0.35 %     0.36 %     0.38 %     0.39 %     0.34 %
    Total non-performing assets as a percentage of total assets   0.30 %     0.30 %     0.30 %     0.32 %     0.28 %
    Allowance for loan losses and unfunded lending-related commitments losses as a percentage of non-accrual loans   296.25 %     282.33 %     270.53 %     288.69 %     348.98 %
                       

    (1)   Excludes early buy-out loans guaranteed by U.S. government agencies. Early buy-out loans are insured or guaranteed by the Federal Housing Administration or the U.S. Department of Veterans Affairs, subject to indemnifications and insurance limits for certain loans.

    Non-performing Loans Rollforward, excluding early buy-out loans guaranteed by U.S. government agencies

      Three Months Ended
      Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (In thousands)   2025       2024       2024       2024       2024  
                       
    Balance at beginning of period $ 170,823     $ 179,687     $ 174,251     $ 148,359     $ 139,030  
    Additions from becoming non-performing in the respective period   27,721       30,931       42,335       54,376       23,142  
    Additions from assets acquired in the respective period   —       —       189       —       —  
    Return to performing status   (1,207 )     (1,108 )     (362 )     (912 )     (490 )
    Payments received   (15,965 )     (12,219 )     (10,894 )     (9,611 )     (8,336 )
    Transfer to OREO and other repossessed assets   —       (17,897 )     (3,680 )     (6,945 )     (1,381 )
    Charge-offs, net   (8,600 )     (5,612 )     (21,211 )     (7,673 )     (14,810 )
    Net change for premium finance receivables   (382 )     (2,959 )     (941 )     (3,343 )     11,204  
    Balance at end of period $ 172,390     $ 170,823     $ 179,687     $ 174,251     $ 148,359  


    Other Real Estate Owned

      Three Months Ended
      Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (In thousands)   2025       2024       2024       2024       2024  
    Balance at beginning of period $ 23,116     $ 13,682     $ 19,731     $ 14,538     $ 13,309  
    Disposals/resolved   —       (8,545 )     (9,729 )     (1,752 )     —  
    Transfers in at fair value, less costs to sell   —       17,979       3,680       6,945       1,436  
    Fair value adjustments   (491 )     —       —       —       (207 )
    Balance at end of period $ 22,625     $ 23,116     $ 13,682     $ 19,731     $ 14,538  
                       
      Period End
      Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    Balance by Property Type:   2025       2024       2024       2024       2024  
    Residential real estate $ —     $ —     $ —     $ 161     $ 1,146  
    Commercial real estate   22,625       23,116       13,682       19,570       13,392  
    Total $ 22,625     $ 23,116     $ 13,682     $ 19,731     $ 14,538  

    TABLE 14: NON-INTEREST INCOME

      Three Months Ended Q1 2025 compared to
    Q4 2024    		 Q1 2025 compared to
    Q1 2024
      Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (Dollars in thousands)   2025       2024       2024       2024       2024   $ Change   % Change $ Change   % Change
    Brokerage $ 4,757     $ 5,328     $ 6,139     $ 5,588     $ 5,556   $ (571 )   (11 )% $ (799 )   (14 )%
    Trust and asset management   29,285       33,447       31,085       29,825       29,259     (4,162 )   (12 )   26     0  
    Total wealth management   34,042       38,775       37,224       35,413       34,815     (4,733 )   (12 )   (773 )   (2 )
    Mortgage banking   20,529       20,452       15,974       29,124       27,663     77     0     (7,134 )   (26 )
    Service charges on deposit accounts   19,362       18,864       16,430       15,546       14,811     498     3     4,551     31  
    Gains (losses) on investment securities, net   3,196       (2,835 )     3,189       (4,282 )     1,326     6,031     NM   1,870     NM
    Fees from covered call options   3,446       2,305       988       2,056       4,847     1,141     50     (1,401 )   (29 )
    Trading (losses) gains, net   (64 )     (113 )     (130 )     70       677     49     (43 )   (741 )   NM
    Operating lease income, net   15,287       15,327       15,335       13,938       14,110     (40 )   (0 )   1,177     8  
    Other:                              
    Interest rate swap fees   2,269       3,360       2,914       3,392       2,828     (1,091 )   (32 )   (559 )   (20 )
    BOLI   796       1,236       1,517       1,351       1,651     (440 )   (36 )   (855 )   (52 )
    Administrative services   1,393       1,347       1,450       1,322       1,217     46     3     176     14  
    Foreign currency remeasurement (losses) gains   (183 )     (682 )     696       (145 )     (1,171 )   499     (73 )   988     (84 )
    Changes in fair value on EBOs and loans held-for-investment   383       129       518       604       (439 )   254     NM   822     NM
    Early pay-offs of capital leases   768       514       532       393       430     254     49     338     79  
    Miscellaneous   15,410       14,772       16,510       22,365       37,815     638     4     (22,405 )   (59 )
    Total Other   20,836       20,676       24,137       29,282       42,331     160     1     (21,495 )   (51 )
    Total Non-Interest Income $ 116,634     $ 113,451     $ 113,147     $ 121,147     $ 140,580   $ 3,183     3 % $ (23,946 )   (17 )%

    NM – Not meaningful.
    BOLI- Bank-owned life insurance.
    EBO- Early buy-out.


    TABLE 15: MORTGAGE BANKING

      Three Months Ended
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Sep 30,
    2024    		   Jun 30,
    2024    		   Mar 31,
    2024
    Originations:                  
    Retail originations $ 348,468     $ 483,424     $ 527,408     $ 544,394     $ 331,504  
    Veterans First originations   111,985       176,914       239,369       177,792       144,109  
    Total originations for sale (A) $ 460,453     $ 660,338     $ 766,777     $ 722,186     $ 475,613  
    Originations for investment   217,177       355,119       218,984       275,331       169,246  
    Total originations $ 677,630     $ 1,015,457     $ 985,761     $ 997,517     $ 644,859  
    As a percentage of originations for sale:                  
    Retail originations   76 %     73 %     69 %     75 %     70 %
    Veterans First originations   24       27       31       25       30  
    Purchases   77 %     65 %     72 %     83 %     75 %
    Refinances   23       35       28       17       25  
    Production Margin:                  
    Production revenue (B) (1) $ 9,941     $ 6,993     $ 13,113     $ 14,990     $ 13,435  
    Total originations for sale (A) $ 460,453     $ 660,338     $ 766,777     $ 722,186     $ 475,613  
    Add: Current period end mandatory interest rate lock commitments to fund originations for sale (2)   197,297       103,946       272,072       222,738       207,775  
    Less: Prior period end mandatory interest rate lock commitments to fund originations for sale (2)   103,946       272,072       222,738       207,775       119,624  
    Total mortgage production volume (C) $ 553,804     $ 492,212     $ 816,111     $ 737,149     $ 563,764  
    Production margin (B / C)   1.80 %     1.42 %     1.61 %     2.03 %     2.38 %
    Mortgage Servicing:                  
    Loans serviced for others (D) $ 12,402,352     $ 12,400,913     $ 12,253,361     $ 12,211,027     $ 12,051,392  
    Mortgage Servicing Rights (“MSR”), at fair value (E)   196,307       203,788       186,308       204,610       201,044  
    Percentage of MSRs to loans serviced for others (E / D)   1.58 %     1.64 %     1.52 %     1.68 %     1.67 %
    Servicing income $ 10,611     $ 10,731     $ 10,809     $ 10,586     $ 10,498  
    MSR Fair Value Asset Activity                  
    MSR – FV at Beginning of Period $ 203,788     $ 186,308     $ 204,610     $ 201,044     $ 192,456  
    MSR – current period capitalization   4,669       10,010       6,357       8,223       5,379  
    MSR – collection of expected cash flows – paydowns   (1,590 )     (1,463 )     (1,598 )     (1,504 )     (1,444 )
    MSR – collection of expected cash flows – payoffs and repurchases   (3,046 )     (4,315 )     (5,730 )     (4,030 )     (2,942 )
    MSR – changes in fair value model assumptions   (7,514 )     13,248       (17,331 )     877       7,595  
    MSR Fair Value at end of period $ 196,307     $ 203,788     $ 186,308     $ 204,610     $ 201,044  
    Summary of Mortgage Banking Revenue:                
    Operational:                  
    Production revenue (1) $ 9,941     $ 6,993     $ 13,113     $ 14,990     $ 13,435  
    MSR – Current period capitalization   4,669       10,010       6,357       8,223       5,379  
    MSR – Collection of expected cash flows – paydowns   (1,590 )     (1,463 )     (1,598 )     (1,504 )     (1,444 )
    MSR – Collection of expected cash flows – pay offs   (3,046 )     (4,315 )     (5,730 )     (4,030 )     (2,942 )
    Servicing Income   10,611       10,731       10,809       10,586       10,498  
    Other Revenue   (172 )     (51 )     (67 )     112       (91 )
    Total operational mortgage banking revenue $ 20,413     $ 21,905     $ 22,884     $ 28,377     $ 24,835  
    Fair Value:                  
    MSR – changes in fair value model assumptions $ (7,514 )   $ 13,248     $ (17,331 )   $ 877     $ 7,595  
    Gain (loss) on derivative contract held as an economic hedge, net   4,897       (11,452 )     6,892       (772 )     (2,577 )
    Changes in FV on early buy-out loans guaranteed by US Govt (HFS)   2,733       (3,249 )     3,529       642       (2,190 )
    Total fair value mortgage banking revenue $ 116     $ (1,453 )   $ (6,910 )   $ 747     $ 2,828  
    Total mortgage banking revenue $ 20,529     $ 20,452     $ 15,974     $ 29,124     $ 27,663  

    (1)   Production revenue represents revenue earned from the origination and subsequent sale of mortgages, including gains on loans sold and fees from originations, changes in other related financial instruments carried at fair value, processing and other related activities, and excludes servicing fees, changes in the fair value of servicing rights and changes to the mortgage recourse obligation and other non-production revenue.
    (2)   Certain volume adjusted for the estimated pull-through rate of the loan, which represents the Company’s best estimate of the likelihood that a committed loan will ultimately fund.


    TABLE 16    : NON-INTEREST EXPENSE

      Three Months Ended Q1 2025 compared to
    Q4 2024    		 Q1 2025 compared to
    Q1 2024
      Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (Dollars in thousands)   2025       2024       2024       2024       2024   $ Change   % Change $ Change   % Change
    Salaries and employee benefits:                              
    Salaries $ 123,917     $ 120,969     $ 118,971     $ 113,860     $ 112,172   $ 2,948     2 % $ 11,745     10 %
    Commissions and incentive compensation   52,536       54,792       57,575       52,151       51,001     (2,256 )   (4 )   1,535     3  
    Benefits   35,073       36,372       34,715       32,530       32,000     (1,299 )   (4 )   3,073     10  
    Total salaries and employee benefits   211,526       212,133       211,261       198,541       195,173     (607 )   (0 )   16,353     8  
    Software and equipment   34,717       34,258       31,574       29,231       27,731     459     1     6,986     25  
    Operating lease equipment   10,471       10,263       10,518       10,834       10,683     208     2     (212 )   (2 )
    Occupancy, net   20,778       20,597       19,945       19,585       19,086     181     1     1,692     9  
    Data processing   11,274       10,957       9,984       9,503       9,292     317     3     1,982     21  
    Advertising and marketing   12,272       13,097       18,239       17,436       13,040     (825 )   (6 )   (768 )   (6 )
    Professional fees   9,044       11,334       9,783       9,967       9,553     (2,290 )   (20 )   (509 )   (5 )
    Amortization of other acquisition-related intangible assets   5,618       5,773       4,042       1,122       1,158     (155 )   (3 )   4,460     NM
    FDIC insurance   10,926       10,640       10,512       10,429       9,381     286     3     1,545     16  
    FDIC insurance – special assessment   —       —       —       —       5,156     —     —     (5,156 )   (100 )
    OREO expense, net   643       397       (938 )     (259 )     392     246     62     251     64  
    Other:                              
    Lending expenses, net of deferred origination costs   5,866       6,448       4,995       5,335       5,078     (582 )   (9 )   788     16  
    Travel and entertainment   5,270       8,140       5,364       5,340       4,597     (2,870 )   (35 )   673     15  
    Miscellaneous   27,685       24,502       25,408       23,289       22,825     3,183     13     4,860     21  
    Total other   38,821       39,090       35,767       33,964       32,500     (269 )   (1 )   6,321     19  
    Total Non-Interest Expense $ 366,090     $ 368,539     $ 360,687     $ 340,353     $ 333,145   $ (2,449 )   (1 )% $ 32,945     10 %

    NM – Not meaningful.


    TABLE 17: SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES/RATIOS

    The accounting and reporting policies of Wintrust conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP performance measures and ratios are used by management to evaluate and measure the Company’s performance. These include taxable-equivalent net interest income (including its individual components), taxable-equivalent net interest margin (including its individual components), the taxable-equivalent efficiency ratio, tangible common equity ratio, tangible book value per common share, return on average tangible common equity, and pre-tax income, excluding provision for credit losses. Management believes that these measures and ratios provide users of the Company’s financial information a more meaningful view of the performance of the Company’s interest-earning assets and interest-bearing liabilities and of the Company’s operating efficiency. Other financial holding companies may define or calculate these measures and ratios differently.

    Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent basis (“FTE”). In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis using tax rates effective as of the end of the period. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a FTE basis is also used in the calculation of the Company’s efficiency ratio. The efficiency ratio, which is calculated by dividing non-interest expense by total taxable-equivalent net revenue (less securities gains or losses), measures how much it costs to produce one dollar of revenue. Securities gains or losses are excluded from this calculation to better match revenue from daily operations to operational expenses. Management considers the tangible common equity ratio and tangible book value per common share as useful measurements of the Company’s equity. The Company references the return on average tangible common equity as a measurement of profitability. Management considers pre-tax income, excluding provision for credit losses, as a useful measurement of the Company’s core net income.

      Three Months Ended
      Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (Dollars and shares in thousands) 2025   2024   2024   2024   2024
    Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:
    (A) Interest Income (GAAP) $ 886,965     $ 913,501     $ 908,604     $ 849,979     $ 805,513  
    Taxable-equivalent adjustment:                  
    – Loans   2,206       2,352       2,474       2,305       2,246  
    – Liquidity Management Assets   690       716       668       567       550  
    – Other Earning Assets   3       2       2       3       5  
    (B) Interest Income (non-GAAP) $ 889,864     $ 916,571     $ 911,748     $ 852,854     $ 808,314  
    (C) Interest Expense (GAAP)   360,491       388,353       406,021       379,369       341,319  
    (D) Net Interest Income (GAAP) (A minus C) $ 526,474     $ 525,148     $ 502,583     $ 470,610     $ 464,194  
    (E) Net Interest Income (non-GAAP) (B minus C) $ 529,373     $ 528,218     $ 505,727     $ 473,485     $ 466,995  
    Net interest margin (GAAP)   3.54 %     3.49 %     3.49 %     3.50 %     3.57 %
    Net interest margin, fully taxable-equivalent (non-GAAP)   3.56       3.51       3.51       3.52       3.59  
    (F) Non-interest income $ 116,634     $ 113,451     $ 113,147     $ 121,147     $ 140,580  
    (G) Gains (losses) on investment securities, net   3,196       (2,835 )     3,189       (4,282 )     1,326  
    (H) Non-interest expense   366,090       368,539       360,687       340,353       333,145  
    Efficiency ratio (H/(D+F-G))   57.21 %     57.46 %     58.88 %     57.10 %     55.21 %
    Efficiency ratio (non-GAAP) (H/(E+F-G))   56.95       57.18       58.58       56.83       54.95  
      Three Months Ended
      Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (Dollars and shares in thousands) 2025   2024   2024   2024   2024
    Reconciliation of Non-GAAP Tangible Common Equity Ratio:
    Total shareholders’ equity (GAAP) $ 6,600,537     $ 6,344,297     $ 6,399,714     $ 5,536,628     $ 5,436,400  
    Less: Non-convertible preferred stock (GAAP)   (412,500 )     (412,500 )     (412,500 )     (412,500 )     (412,500 )
    Less: Intangible assets (GAAP)   (913,004 )     (918,632 )     (924,646 )     (676,562 )     (677,911 )
    (I) Total tangible common shareholders’ equity (non-GAAP) $ 5,275,033     $ 5,013,165     $ 5,062,568     $ 4,447,566     $ 4,345,989  
    (J) Total assets (GAAP) $ 65,870,066     $ 64,879,668     $ 63,788,424     $ 59,781,516     $ 57,576,933  
    Less: Intangible assets (GAAP)   (913,004 )     (918,632 )     (924,646 )     (676,562 )     (677,911 )
    (K) Total tangible assets (non-GAAP) $ 64,957,062     $ 63,961,036     $ 62,863,778     $ 59,104,954     $ 56,899,022  
    Common equity to assets ratio (GAAP) (L/J)   9.4 %     9.1 %     9.4 %     8.6 %     8.7 %
    Tangible common equity ratio (non-GAAP) (I/K)   8.1       7.8       8.1       7.5       7.6  
    Reconciliation of Non-GAAP Tangible Book Value per Common Share:
    Total shareholders’ equity $ 6,600,537     $ 6,344,297     $ 6,399,714     $ 5,536,628     $ 5,436,400  
    Less: Preferred stock   (412,500 )     (412,500 )     (412,500 )     (412,500 )     (412,500 )
    (L) Total common equity $ 6,188,037     $ 5,931,797     $ 5,987,214     $ 5,124,128     $ 5,023,900  
    (M) Actual common shares outstanding   66,919       66,495       66,482       61,760       61,737  
    Book value per common share (L/M) $ 92.47     $ 89.21     $ 90.06     $ 82.97     $ 81.38  
    Tangible book value per common share (non-GAAP) (I/M)   78.83       75.39       76.15       72.01       70.40  
                       
    Reconciliation of Non-GAAP Return on Average Tangible Common Equity:
    (N) Net income applicable to common shares $ 182,048     $ 178,371     $ 163,010     $ 145,397     $ 180,303  
    Add: Intangible asset amortization   5,618       5,773       4,042       1,122       1,158  
    Less: Tax effect of intangible asset amortization   (1,421 )     (1,547 )     (1,087 )     (311 )     (291 )
    After-tax intangible asset amortization $ 4,197     $ 4,226     $ 2,955     $ 811     $ 867  
    (O) Tangible net income applicable to common shares (non-GAAP) $ 186,245     $ 182,597     $ 165,965     $ 146,208     $ 181,170  
    Total average shareholders’ equity $ 6,460,941     $ 6,418,403     $ 5,990,429     $ 5,450,173     $ 5,440,457  
    Less: Average preferred stock   (412,500 )     (412,500 )     (412,500 )     (412,500 )     (412,500 )
    (P) Total average common shareholders’ equity $ 6,048,441     $ 6,005,903     $ 5,577,929     $ 5,037,673     $ 5,027,957  
    Less: Average intangible assets   (916,069 )     (921,438 )     (833,574 )     (677,207 )     (678,731 )
    (Q) Total average tangible common shareholders’ equity (non-GAAP) $ 5,132,372     $ 5,084,465     $ 4,744,355     $ 4,360,466     $ 4,349,226  
    Return on average common equity, annualized (N/P)   12.21 %     11.82 %     11.63 %     11.61 %     14.42 %
    Return on average tangible common equity, annualized (non-GAAP) (O/Q)   14.72       14.29       13.92       13.49       16.75  
                       
    Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income:    
    Income before taxes $ 253,055     $ 253,081     $ 232,709     $ 211,343     $ 249,956  
    Add: Provision for credit losses   23,963       16,979       22,334       40,061       21,673  
    Pre-tax income, excluding provision for credit losses (non-GAAP) $ 277,018     $ 270,060     $ 255,043     $ 251,404     $ 271,629  

    WINTRUST SUBSIDIARIES

    Wintrust is a financial holding company whose common stock is traded on the Nasdaq Global Select Market (Nasdaq: WTFC) that operates bank retail locations in the greater Chicago, southern Wisconsin, west Michigan, northwest Indiana, and southwest Florida market areas. Its 16 community bank subsidiaries are: Barrington Bank & Trust Company, N.A., Beverly Bank & Trust Company, N.A., Crystal Lake Bank & Trust Company, N.A., Hinsdale Bank & Trust Company, N.A., Lake Forest Bank & Trust Company, N.A., Libertyville Bank & Trust Company, N.A., Macatawa Bank, N.A., Northbrook Bank & Trust Company, N.A., Old Plank Trail Community Bank, N.A., Schaumburg Bank & Trust Company, N.A., St. Charles Bank & Trust Company, N.A., State Bank of The Lakes, N.A., Town Bank, N.A., Village Bank & Trust, N.A., Wheaton Bank & Trust Company, N.A., and Wintrust Bank, N.A.

    Additionally, the Company operates various non-bank businesses:

    • FIRST Insurance Funding and Wintrust Life Finance, each a division of Lake Forest Bank & Trust Company, N.A., serve commercial and life insurance loan customers, respectively, throughout the United States.
    • First Insurance Funding of Canada serves commercial insurance loan customers throughout Canada.
    • Tricom, Inc. of Milwaukee provides high-yielding, short-term accounts receivable financing and value-added out-sourced administrative services, such as data processing of payrolls, billing and cash management services, to temporary staffing service clients located throughout the United States.
    • Wintrust Mortgage, a division of Barrington Bank & Trust Company, N.A., engages primarily in the origination and purchase of residential mortgages for sale into the secondary market through origination offices located throughout the United States. Loans are also originated nationwide through relationships with wholesale and correspondent offices.
    • Wintrust Investments, LLC is a broker-dealer providing a full range of private client and brokerage services to clients and correspondent banks located primarily in the Midwest.
    • Great Lakes Advisors LLC provides money management services and advisory services to individual accounts.
    • Wintrust Private Trust Company, N.A., a trust subsidiary, allows Wintrust to service customers’ trust and investment needs at each banking location.
    • Wintrust Asset Finance offers direct leasing opportunities.
    • CDEC provides Qualified Intermediary services (as defined by U.S. Treasury regulations) for taxpayers seeking to structure tax-deferred like-kind exchanges under Internal Revenue Code Section 1031.

    FORWARD-LOOKING STATEMENTS

    This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as “intend,” “plan,” “project,” “expect,” “anticipate,” “believe,” “estimate,” “contemplate,” “possible,” “will,” “may,” “should,” “would” and “could.” Forward-looking statements and information are not historical facts, are premised on many factors and assumptions, and represent only management’s expectations, estimates and projections regarding future events. Similarly, these statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict, and which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company’s 2024 Annual Report on Form 10-K and in any of the Company’s subsequent SEC filings. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. Such forward-looking statements may be deemed to include, among other things, statements relating to the Company’s future financial performance, the performance of its loan portfolio, the expected amount of future credit reserves and charge-offs, delinquency trends, growth plans, regulatory developments, securities that the Company may offer from time to time, and management’s long-term performance goals, as well as statements relating to the anticipated effects on the Company’s financial condition and results of operations from expected developments or events, the Company’s business and growth strategies, including future acquisitions of banks, specialty finance or wealth management businesses, internal growth and plans to form additional de novo banks or branch offices. Actual results could differ materially from those addressed in the forward-looking statements as a result of numerous factors, including the following:

    • economic conditions and events that affect the economy, housing prices, the job market and other factors that may adversely affect the Company’s liquidity and the performance of its loan portfolios, including an actual or threatened U.S. government debt default or rating downgrade, particularly in the markets in which it operates;
    • negative effects suffered by us or our customers resulting from changes in U.S. or international trade policies;
    • the extent of defaults and losses on the Company’s loan portfolio, which may require further increases in its allowance for credit losses;
    • estimates of fair value of certain of the Company’s assets and liabilities, which could change in value significantly from period to period;
    • the financial success and economic viability of the borrowers of our commercial loans;
    • commercial real estate market conditions in the Chicago metropolitan area and southern Wisconsin;
    • the extent of commercial and consumer delinquencies and declines in real estate values, which may require further increases in the Company’s allowance for credit losses;
    • inaccurate assumptions in our analytical and forecasting models used to manage our loan portfolio;
    • changes in the level and volatility of interest rates, the capital markets and other market indices that may affect, among other things, the Company’s liquidity and the value of its assets and liabilities;
    • the interest rate environment, including a prolonged period of low interest rates or rising interest rates, either broadly or for some types of instruments, which may affect the Company’s net interest income and net interest margin, and which could materially adversely affect the Company’s profitability;
    • competitive pressures in the financial services business which may affect the pricing of the Company’s loan and deposit products as well as its services (including wealth management services), which may result in loss of market share and reduced income from deposits, loans, advisory fees and income from other products;
    • failure to identify and complete favorable acquisitions in the future or unexpected losses, difficulties or developments related to the Company’s recent or future acquisitions;
    • unexpected difficulties and losses related to FDIC-assisted acquisitions;
    • harm to the Company’s reputation;
    • any negative perception of the Company’s financial strength;
    • ability of the Company to raise additional capital on acceptable terms when needed;
    • disruption in capital markets, which may lower fair values for the Company’s investment portfolio;
    • ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith;
    • failure or breaches of our security systems or infrastructure, or those of third parties;
    • security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion and similar events or data corruption attempts and identity theft;
    • adverse effects on our information technology systems, or those of third parties, resulting from failures, human error or cyberattacks (including ransomware);
    • adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors;
    • increased costs as a result of protecting our customers from the impact of stolen debit card information;
    • accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions;
    • ability of the Company to attract and retain senior management experienced in the banking and financial services industries;
    • environmental liability risk associated with lending activities;
    • the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation;
    • losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith;
    • the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;
    • the soundness of other financial institutions and the impact of recent failures of financial institutions, including broader financial institution liquidity risk and concerns;
    • the expenses and delayed returns inherent in opening new branches and de novo banks;
    • liabilities, potential customer loss or reputational harm related to closings of existing branches;
    • examinations and challenges by tax authorities, and any unanticipated impact of the Tax Act;
    • changes in accounting standards, rules and interpretations, and the impact on the Company’s financial statements;
    • the ability of the Company to receive dividends from its subsidiaries;
    • the impact of the Company’s transition from LIBOR to an alternative benchmark rate for current and future transactions;
    • a decrease in the Company’s capital ratios, including as a result of declines in the value of its loan portfolios, or otherwise;
    • legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies;
    • changes in laws, regulations, rules, standards and contractual obligations regarding data privacy and cybersecurity;
    • a lowering of our credit rating;
    • changes in U.S. monetary policy and changes to the Federal Reserve’s balance sheet, including changes in response to persistent inflation or otherwise;
    • regulatory restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business;
    • increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the regulatory environment;
    • the impact of heightened capital requirements;
    • increases in the Company’s FDIC insurance premiums, or the collection of special assessments by the FDIC;
    • delinquencies or fraud with respect to the Company’s premium finance business;
    • credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Company’s premium finance loans;
    • the Company’s ability to comply with covenants under its credit facility;
    • fluctuations in the stock market, which may have an adverse impact on the Company’s wealth management business and brokerage operation; and
    • widespread outages of operational, communication, or other systems, whether internal or provided by third parties, natural or other disasters (including acts of terrorism, armed hostilities and pandemics), and the effects of climate change.

    Therefore, there can be no assurances that future actual results will correspond to these forward-looking statements. The reader is cautioned not to place undue reliance on any forward-looking statement made by the Company. Any such statement speaks only as of the date the statement was made or as of such date that may be referenced within the statement. The Company undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events after the date of the press release. Persons are advised, however, to consult further disclosures management makes on related subjects in its reports filed with the Securities and Exchange Commission and in its press releases.

    CONFERENCE CALL, WEBCAST AND REPLAY

    The Company will hold a conference call on Tuesday, April 22, 2025 at 9:00 a.m. (CDT) regarding first quarter 2025 earnings results. Individuals interested in participating in the call by addressing questions to management should register for the call to receive the dial-in numbers and unique PIN at the Conference Call Link included within the Company’s press release dated March 31, 2025 available at the Investor Relations, Investor News and Events, Press Releases link on its website at https://www.wintrust.com. A separate simultaneous audio-only webcast link is included within the press release referenced above. Registration for and a replay of the audio-only webcast with an accompanying slide presentation will be available at https://www.wintrust.com, Investor Relations, Investor News and Events, Presentations & Conference Calls. The text of the first quarter 2025 earnings press release will also be available on the home page of the Company’s website at https://www.wintrust.com and at the Investor Relations, Investor News and Events, Press Releases link on its website.

    FOR MORE INFORMATION CONTACT:
    Timothy S. Crane, President & Chief Executive Officer
    David A. Dykstra, Vice Chairman & Chief Operating Officer
    (847) 939-9000
    Web site address: www.wintrust.com

    The MIL Network –

  • MIL-OSI: USCB Financial Holdings, Inc. Declares Quarterly Cash Dividend on Common Stock

    Source: GlobeNewswire (MIL-OSI)

    MIAMI, April 21, 2025 (GLOBE NEWSWIRE) — USCB Financial Holdings, Inc. (the “Company”) (NASDAQ: USCB), the holding company for U.S. Century Bank, announced today that its Board of Directors declared a regular quarterly cash dividend of $0.10 per share of Class A common stock, payable on June 5, 2025, to shareholders of record as of the close of business on May 15, 2025. Future dividend payments are subject to quarterly review and approval by the Board of Directors.

    About USCB Financial Holdings, Inc.
    USCB Financial Holdings, Inc. is the bank holding company for U.S. Century Bank. Established in 2002, U.S. Century Bank is one of the largest community banks headquartered in Miami, and one of the largest community banks in the State of Florida. U.S. Century Bank is rated 5-Stars by BauerFinancial, the nation’s leading independent bank rating firm. U.S. Century Bank offers customers a wide range of financial products and services and supports numerous community organizations, including the Greater Miami Chamber of Commerce, the South Florida Hispanic Chamber of Commerce, and ChamberSouth. For more information or to find a U.S. Century Bank banking center near you, please call (305) 715-5200 or visit www.uscentury.com.

    Contacts:

    Investor Relations
    InvestorRelations@uscentury.com
    Martha Guerra-Kattou
    (305) 715-5141
    MGuerra@uscentury.com

    The MIL Network –

  • MIL-OSI: First Financial Northwest, Inc. Announces Declaration of Initial Liquidating Distribution; Stock Transfer Books Closed

    Source: GlobeNewswire (MIL-OSI)

    RENTON, Wash., April 21, 2025 (GLOBE NEWSWIRE) — First Financial Northwest, Inc. (NASDAQ GS: FFNW) (the “Company”) today announced that its Board of Directors has declared an initial liquidating distribution pursuant to its previously announced Plan of Dissolution in the amount of $22.00 per share, or approximately $203 million, representing approximately 95% of the anticipated proceeds to ultimately be distributed. The initial liquidating distribution will be payable on April 30, 2025, to shareholders of record as of April 23, 2025. The Company also announced that it has closed its stock transfer books and has filed a Form 25 with the Securities and Exchange Commission (the “SEC”) with respect to delisting the Company’s common stock from trading on the Nasdaq Capital Market. The Company expects to file Form 15 with the SEC on or about May 1 in order to suspend its periodic reporting obligations under the Securities Exchange Act of 1934.

    The Company intends to make a final cash distribution to shareholders subject to first completing the wind down of the Company and paying or providing for the Company’s creditors and existing and reasonably foreseeable debts, taxes, liabilities, and obligations in accordance with Washington law and the Plan of Dissolution. Funds remaining, if any, after paying taxes and expenses will result in a subsequent distribution to shareholders. At this time, the Company estimates that total distributions to shareholders (subject to a significant number of variables and assumptions) will potentially be in the $23.06 to $23.34 per share range. We cannot determine at this time when a final liquidating distribution might be made. Computershare, the Company’s stock transfer agent, is acting as paying agent for the liquidating distributions to shareholders pursuant to the Plan of Dissolution.

    About First Financial Northwest, Inc.
    First Financial Northwest, Inc. is the former parent company of First Financial Northwest Bank, a Washington State-chartered commercial bank headquartered in Renton, Washington. For additional information visit ffnw.q4ir.com.

    Forward-looking statements:
    When used in this press release and in other documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), in press releases or other public shareholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases “believe,” “will,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts but instead represent management’s current expectations and forecasts regarding future events many of which are inherently uncertain and outside of our control. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions and statements about, among other things, the delisting, deregistration, wind-down and dissolution of the Company, the remaining expenses to be incurred in such process, and the remaining cash to be distributed to shareholders. These forward-looking statements are based on current management expectations and may, therefore, involve risks and uncertainties. Actual results may differ, possibly materially from those currently expected or projected in these forward-looking statements made by, or on behalf of, us, and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other reports filed with or furnished to the SEC – that are available on our Investor Relations website at ffnw.q4ir.com and on the SEC’s website at sec.gov.

    Any of the forward-looking statements that we make in this press release and in the other public statements are based upon management’s beliefs and assumptions at the time they are made and may turn out to be wrong because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

    Investor Contacts:
    Rich Jacobson
    Executive Vice President and Chief Financial Officer
    jacobsonr@ffnorthwest.com
    (206) 573-4973
    Karla Evans
    Assistant Vice President, Investor Relations
    evansk@ffnorthwest.com
    (206) 833-1259

    The MIL Network –

  • MIL-OSI: TrustCo Reports First Quarter 2025 Net Income of $14.3 Million From Repricing Loan Portfolio and Well-Managed Cost of Funds

    Source: GlobeNewswire (MIL-OSI)

    Executive Snapshot:

    • Bank-wide financial results:
      • Key metrics for the first quarter 2025:
        • Net income of $14.3 million increased 17.7% compared to $12.1 million for the first quarter 2024
        • Net interest income of $40.4 million, up 10.4% from $36.6 million compared to the first quarter 2024
        • Average loans were up $104.7 million for the first quarter 2025 compared to the first quarter 2024
        • Average deposits were up $103.3 million for the first quarter 2025 compared to the first quarter 2024
    • Capital position and key ratios:
      • Consolidated equity to assets increased to 10.85% as of March 31, 2025 from 10.51% as of March 31, 2024
      • Book value per share as of March 31, 2025 was $36.16, up from $34.12 as of March 31, 2024
      • Stock repurchase program announced authorizing for up to one million shares or approximately 5% of TrustCo’s current outstanding common stock
    • Trustco Financial Services and Wealth Management income:
      • Fees increased to $2.1 million or 16.7% compared to first quarter 2024
      • Assets under management increased to $1.2 billion or 17.4% compared first quarter 2024

    GLENVILLE, N.Y., April 21, 2025 (GLOBE NEWSWIRE) —

    TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced a robust start to 2025, marked by significant growth in both the loan and deposit portfolios of Trustco Bank during the first quarter of 2025 compared to the first quarter of 2024. This performance underscores the Bank’s commitment to serving its community through increased residential and commercial lending and adapting effectively to the evolving financial landscape. This resulted in first quarter 2025 net income of $14.3 million or $0.75 diluted earnings per share, compared to net income of $12.1 million or $0.64 diluted earnings per share for the first quarter 2024. Average loans increased $104.7 million or 2.1% for the first quarter 2025 over the same period in 2024. Average deposits increased $103.3 million or 1.9% for the first quarter 2025 over the same period in 2024.

    Overview

    Chairman, President, and CEO, Robert J. McCormick said “We are very pleased to announce today that tried and true Trustco Bank strategy has once again yielded exceptional results. We added loans at current market rates, which repriced our current loan portfolio higher, supporting long-term profitability. This was funded entirely by our own deposits, and we did so while holding the line on board rates. Despite aggressive market competition, we have favorably repriced our time deposits with the help of strong brand loyalty and digital engagement. These efforts yielded net income of $14.3 million and boosted all return metrics significantly year-over-year. Credit quality remains exceptional, with non-performing loans holding steady at a negligible 0.37%. The Bank also grew capital and thus maintains its position of strength. Based upon what we have seen in the first quarter, we anticipate that good things are likely in the future.”

    Details

    Average loans were up $104.7 million, or 2.1%, in the first quarter 2025 over the same period in 2024. Average residential loans and HECLs, our primary lending focus, were up $26.2 million, or 0.6%, and $61.0 million, or 17.3%, respectively, in the first quarter 2025 over the same period in 2024. Average commercial loans also increased $20.7 million, or 7.5%, in the first quarter 2025 over the same period in 2024. This uptick reflects a strong local economy and increased demand for credit. Average deposits were up $103.3 million, or 1.9%, for the first quarter 2025 over the same period in 2024, primarily as a result of an increase in time deposits, interest bearing checking accounts, and demand deposits. We believe the increase in these deposits compared to the same period in 2024 continues to indicate strong customer confidence in the Bank’s competitive deposit offerings. As we move forward, despite a complex economic environment, we believe that our strategic focus on relationship banking and solid financial practices has positioned us for continued success.

    During the first quarter of 2025, the TrustCo announced a stock repurchase program of up to one million shares, or approximately 5% of TrustCo’s current outstanding shares of common stock. This repurchase initiative is part of the Bank’s broader capital management strategy and is intended to enhance shareholder value while maintaining flexibility to support future growth. As of March 31, 2025, our equity to asset ratio was 10.85%, compared to 10.51% as of March 31, 2024. Book value per share as of March 31, 2025 was $36.16, up 6.0% compared to $34.12 a year earlier.  

    Net interest income was $40.4 million for the first quarter 2025, an increase of $3.8 million, or 10.4%, compared to the first quarter of 2024, driven by loan growth at higher interest rates and less interest expense on deposit products, partially offset by lower investment interest income and a decrease in interest on federal funds sold and other short-term investments. The net interest margin for the first quarter 2025 was 2.64%, up 20 basis points from 2.44% in the first quarter of 2024. The yield on interest earnings assets increased to 4.13% in the first quarter of 2025, up 14 basis points from 3.99% in the first quarter of 2024. The cost of interest bearing liabilities decreased to 1.92% in the first quarter 2025, down from 1.99% in the first quarter 2024. As the Federal Reserve signals potential interest rate reductions in 2025, the Bank is proactively preparing to navigate the evolving rate environment. In this context, the Bank anticipates that a lower interest rate environment will provide opportunities to manage deposit costs more effectively, thereby supporting net interest margin. The Bank remains committed to maintaining competitive deposit offerings while ensuring financial stability and continued support for our communities’ banking needs.

    Non-interest income increased to $5.0 million as compared to $4.8 million for the first quarter of 2024. This increase was primarily attributable to wealth management and financial services fees, which increased by 16.7% to $2.1 million, driven by strong client demand and higher assets under management. These revenues now represent 42.6% of non-interest income. The majority of this fee income is recurring, supported by long-term advisory relationships and a growing base of managed assets. Non-interest expense increased $1.4 million over the first quarter of 2024 due to increases in several areas of expenses.

    Asset quality remains strong and has been consistent over the past twelve months. The Company recorded a provision for credit losses of $300 thousand in the first quarter of 2025, which is the result of a provision for credit losses on loans of $100 thousand, and a provision for credit losses on unfunded commitments of $200 thousand. The ratio of allowance for credit losses on loans to total loans was 0.99% and 0.98% as of March 31, 2025 and 2024, respectively. The allowance for credit losses on loans was $50.6 million as of March 31, 2025, compared to $49.2 million as of March 31, 2024. Nonperforming loans (NPLs) were $18.8 million as of March 31, 2025, compared to $18.3 million as of March 31, 2024. NPLs were 0.37% of total loans as of March 31, 2025 and 2024. The coverage ratio, or allowance for credit losses on loans to NPLs, was 269.8% as of March 31, 2025, compared to 269.3% as of March 31, 2024. Nonperforming assets (NPAs) were $20.9 million as of March 31, 2025, compared to $20.6 million as of March 31, 2024.  

    A conference call to discuss first quarter 2025 results will be held at 9:00 a.m. Eastern Time on April 22, 2025. Those wishing to participate in the call may dial toll-free for the United States at 1-833-470-1428, and for Canada at 1-833-950-0062, Access code 048251. A replay of the call will be available for thirty days by dialing toll-free for the United States at 1-866-813-9403, Access code 486810. The call will also be audio webcast at https://events.q4inc.com/attendee/647533404,and will be available for one year.

    About TrustCo Bank Corp NY

    TrustCo Bank Corp NY is a $6.3 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 136 offices in New York, New Jersey, Vermont, Massachusetts, and Florida as of March 31, 2025.

    In addition, the Bank’s Wealth Management Department offers a full range of investment services, retirement planning and trust and estate administration services. The common shares of TrustCo are traded on the NASDAQ Global Select Market under the symbol TRST.

    Forward-Looking Statements

    All statements in this news release that are not historical are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future development, results or periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our future performance, including our expectations regarding the effects of the economic environment on our financial results, our ability to retain customers and the amount of customers’ business, including deposit balances, with us, the impact of the Federal Reserve’s actions regarding interest rates, and the anticipated effects of our capital management strategy, including our stock repurchase program. Forward-looking statements are based on management’s current expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Such forward-looking statements are subject to factors and uncertainties that could cause actual results to differ materially for TrustCo from the views, beliefs and projections expressed in such statements, and many of the risks and uncertainties are heightened by or may, in the future, be heightened by volatility in financial markets and macroeconomic or geopolitical concerns related to inflation, changes in United States and foreign trade policy, continued elevated interest rates and ongoing armed conflicts (including the Russia/Ukraine conflict and the conflict in Israel and surrounding areas). TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The following important factors, among others, in some cases have affected and in the future could affect TrustCo’s actual results and could cause TrustCo’s actual financial performance to differ materially from that expressed in any forward-looking statement: future changes in interest rates; external economic factors, such as changes in monetary policy, ongoing inflationary pressures and continued elevated prices; exposure to credit risk in our lending activities; our increasing commercial loan portfolio; the sufficiency of our allowance for credit losses on loans to cover actual loan losses; our ability to meet the cash flow requirements of our depositors or borrowers or meet our operating cash needs to fund corporate expansion and other activities; claims and litigation pertaining to fiduciary responsibility and lender liability; the enforcement of federal cannabis laws and regulations and its impact on our ability to provide services in the cannabis industry; our dependency upon the services of the management team; our disclosure controls and procedures’ ability to prevent or detect errors or acts of fraud; the adequacy of our business continuity and disaster recovery plans; the effectiveness of our risk management framework; the impact of any expansion by us into new lines of business or new products and services; an increase in the prevalence of fraud and other financial crimes; the impact of severe weather events and climate change on us and the communities we serve, including societal responses to climate change; environmental, social and governance risks, as well as diversity, equity, and inclusion-related risks, and their impact on our reputation and relationships; the chance of a prolonged economic downturn, especially one affecting our geographic market area; instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; the soundness of other financial institutions; U.S. government shutdowns, credit rating downgrades, or failure to increase the debt ceiling; fluctuations in the trust wealth management fees we receive as a result of investment performance; the impact of regulatory capital rules on our growth; changes in laws and regulations, including changes in cybersecurity or privacy regulations; restrictions on data collection and use; our compliance with the USA PATRIOT Act, Bank Secrecy Act, and other laws and regulations that could result in material fines or sanctions; changes in tax laws; limitations on our ability to pay dividends; TrustCo Realty Corp.’s ability to qualify as a real estate investment trust; changes in accounting standards; competition within our market areas; consumers and businesses’ use of non-banks to complete financial transactions; our reliance on third-party service providers; the impact of data breaches and cyber-attacks; the development and use of artificial intelligence; the impact of a failure in or breach of our operational or security systems or infrastructure, or those of third parties; the impact of an unauthorized disclosure of sensitive or confidential client or customer information; the impact of interruptions in the effective operation of our computer systems; the impact of anti-takeover provisions in our organizational documents; the impact of the manner in which we allocate capital; and other risks and uncertainties under the heading “Risk Factors” in our most recent annual report on Form 10-K and, if any, in our subsequent quarterly reports on Form 10-Q or other securities filings, as well as our upcoming quarterly report on Form 10-Q for the first quarter of 2025. The forward-looking statements contained in this news release represent TrustCo management’s judgment as of the date of this news release. TrustCo disclaims, however, any intent or obligation to update forward-looking statements, either as a result of future developments, new information or otherwise, except as may be required by law.

    TRUSTCO BANK CORP NY  
    GLENVILLE, NY  
       
    FINANCIAL HIGHLIGHTS  
       
    (dollars in thousands, except per share data)  
    (Unaudited)  
      Three months ended  
      3/31/2025   12/31/2024   3/31/2024  
    Summary of operations            
    Net interest income $ 40,373   $ 38,902   $ 36,578  
    Provision for credit losses   300     400     600  
    Noninterest income   4,974     4,409     4,843  
    Noninterest expense   26,329     28,165     24,903  
    Net income   14,275     11,281     12,126  
                 
    Per share            
    Net income per share:            
    – Basic $ 0.75   $ 0.59   $ 0.64  
    – Diluted   0.75     0.59     0.64  
    Cash dividends   0.36     0.36     0.36  
    Book value at period end   36.16     35.56     34.12  
    Market price at period end   30.48     33.31     28.16  
                 
    At period end            
    Full time equivalent employees   740     737     761  
    Full service banking offices   136     136     140  
                 
    Performance ratios            
    Return on average assets   0.93 %   0.73 %   0.80 %
    Return on average equity   8.49     6.70     7.54  
    Efficiency ratio (GAAP)   58.06     65.03     59.94  
    Adjusted Efficiency ratio (1)   58.00     63.93     59.94  
    Net interest spread   2.21     2.15     2.00  
    Net interest margin   2.64     2.60     2.44  
    Dividend payout ratio 47.97     60.70     56.48  
                 
    Capital ratios at period end            
    Consolidated equity to assets   10.85 %   10.84 %   10.51 %
    Consolidated tangible equity to tangible assets (1)   10.84 %   10.83 %   10.50 %
                 
    Asset quality analysis at period end            
    Nonperforming loans to total loans   0.37 %   0.37 %   0.37 %
    Nonperforming assets to total assets   0.33     0.34     0.33  
    Allowance for credit losses on loans to total loans   0.99     0.99     0.98  
    Coverage ratio (2) 2.7x   2.7x   2.7x  
                 
                 
    (1) Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation.
    (2) Calculated as allowance for credit losses on loans divided by total nonperforming loans.            
                 
                       
    CONSOLIDATED STATEMENTS OF INCOME
                       
    (dollars in thousands, except per share data)                  
    (Unaudited)                  
       Three months ended
      3/31/2025   12/31/2024   9/30/2024   6/30/2024   3/31/2024
    Interest and dividend income:                  
    Interest and fees on loans $ 53,450   $ 53,024   $ 52,112   $ 50,660   $ 49,804
    Interest and dividends on securities available for sale:                  
    U. S. government sponsored enterprises   596     680     718     909     906
    State and political subdivisions   –     –     –     1     –
    Mortgage-backed securities and collateralized mortgage                  
    obligations – residential   1,483     1,418     1,397     1,451     1,494
    Corporate bonds   260     358     361     362     476
    Small Business Administration – guaranteed                  
    participation securities   81     84     90     94     100
    Other securities   7     6     2     2     3
    Total interest and dividends on securities available for sale   2,427     2,546     2,568     2,819     2,979
                       
    Interest on held to maturity securities:                  
    obligations – residential   57     59     62     65     68
    Total interest on held to maturity securities   57     59     62     65     68
                       
    Federal Home Loan Bank stock   151     152     153     147     152
                       
    Interest on federal funds sold and other short-term investments   6,732     6,128     6,174     6,894     6,750
    Total interest income   62,817     61,909     61,069     60,585     59,753
                       
    Interest expense:                  
    Interest on deposits:                  
    Interest-bearing checking   558     397     311     288     240
    Savings   734     719     770     675     712
    Money market deposit accounts   1,989     2,024     2,154     2,228     2,342
    Time deposits   18,983     19,680     18,969     19,400     19,677
    Interest on short-term borrowings   180     187     194     206     204
    Total interest expense   22,444     23,007     22,398     22,797     23,175
                       
    Net interest income   40,373     38,902     38,671     37,788     36,578
                       
    Less: Provision for credit losses   300     400     500     500     600
    Net interest income after provision for credit losses   40,073     38,502     38,171     37,288     35,978
                       
    Noninterest income:                  
    Trustco Financial Services income   2,120     1,778     2,044     1,609     1,816
    Fees for services to customers   2,645     2,226     2,482     2,399     2,745
    Net gains on equity securities   –     –     23     1,360     –
    Other   209     405     382     283     282
    Total noninterest income   4,974     4,409     4,931     5,651     4,843
                       
    Noninterest expenses:                  
    Salaries and employee benefits   11,894     12,068     12,134     12,520     11,427
    Net occupancy expense   4,554     4,563     4,271     4,375     4,611
    Equipment expense   1,944     2,404     1,757     1,990     1,738
    Professional services   1,726     1,782     1,863     1,570     1,460
    Outsourced services   2,700     3,051     2,551     2,755     2,501
    Advertising expense   361     590     339     466     408
    FDIC and other insurance   1,188     1,113     1,112     797     1,094
    Other real estate expense, net   28     476     204     16     74
    Other   1,934     2,118     1,969     1,970     1,590
    Total noninterest expenses   26,329     28,165     26,200     26,459     24,903
                       
    Income before taxes   18,718     14,746     16,902     16,480     15,918
    Income taxes   4,443     3,465     4,027     3,929     3,792
                       
    Net income $ 14,275   $ 11,281   $ 12,875   $ 12,551   $ 12,126
                       
    Net income per common share:                  
    – Basic $ 0.75   $ 0.59   $ 0.68   $ 0.66   $ 0.64
                       
    – Diluted   0.75     0.59     0.68     0.66     0.64
                       
    Average basic shares (in thousands)   19,020     19,015     19,010     19,022     19,024
    Average diluted shares (in thousands)   19,044     19,045     19,036     19,033     19,032
                       
               
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
     
    (dollars in thousands)
    (Unaudited)
      3/31/2025 12/31/2024 9/30/2024 6/30/3024   3/31/2024  
    ASSETS:          
               
    Cash and due from banks $ 48,782   $ 47,364   $ 49,659   $ 42,193   $ 44,868  
    Federal funds sold and other short term investments   707,355     594,448     473,306     493,920     564,815  
    Total cash and cash equivalents   756,137     641,812     522,965     536,113     609,683  
               
    Securities available for sale:          
    U. S. government sponsored enterprises   65,942     85,617     90,588     106,796     128,854  
    States and political subdivisions   18     18     26     26     26  
    Mortgage-backed securities and collateralized mortgage          
    obligations – residential   219,333     213,128     222,841     218,311     227,078  
    Small Business Administration – guaranteed          
    participation securities   13,683     14,141     15,171     15,592     16,260  
    Corporate bonds   24,779     44,581     54,327     53,764     53,341  
    Other securities   698     700     701     688     682  
    Total securities available for sale   324,453     358,185     383,654     395,177     426,241  
               
    Held to maturity securities:          
    Mortgage-backed securities and collateralized mortgage          
    obligations-residential   5,090     5,365     5,636     5,921     6,206  
    Total held to maturity securities   5,090     5,365     5,636     5,921     6,206  
               
    Federal Reserve Bank and Federal Home Loan Bank stock   6,507     6,507     6,507     6,507     6,203  
               
    Loans:          
    Commercial   302,753     286,857     280,261     282,441     279,092  
    Residential mortgage loans   4,380,561     4,388,302     4,382,674     4,370,640     4,354,369  
    Home equity line of credit   419,806     409,261     393,418     370,063     355,879  
    Installment loans   13,017     13,638     14,503     15,168     16,166  
    Loans, net of deferred net costs   5,116,137     5,098,058     5,070,856     5,038,312     5,005,506  
               
    Less: Allowance for credit losses on loans   50,606     50,248     49,950     49,772     49,220  
    Net loans   5,065,531     5,047,810     5,020,906     4,988,540     4,956,286  
               
    Bank premises and equipment, net   37,178     33,782     33,324     33,466     33,423  
    Operating lease right-of-use assets   34,968     36,627     37,958     38,376     39,647  
    Other assets   108,681     108,656     98,730     102,544     101,881  
               
    Total assets $ 6,338,545   $ 6,238,744   $ 6,109,680   $ 6,106,644   $ 6,179,570  
               
    LIABILITIES:          
    Deposits:          
    Demand $ 793,306   $ 762,101   $ 753,878   $ 745,227   $ 742,997  
    Interest-bearing checking   1,067,948     1,027,540     988,527     1,029,606     1,020,136  
    Savings accounts   1,094,968     1,086,534     1,092,038     1,144,427     1,155,517  
    Money market deposit accounts   478,872     465,049     477,113     517,445     532,611  
    Time deposits   2,061,576     2,049,759     1,952,635     1,840,262     1,903,908  
    Total deposits   5,496,670     5,390,983     5,264,191     5,276,967     5,355,169  
               
    Short-term borrowings   82,275     84,781     91,450     89,720     94,374  
    Operating lease liabilities   38,324     40,159     41,469     42,026     43,438  
    Accrued expenses and other liabilities   33,468     46,478     43,549     42,763     37,399  
               
    Total liabilities   5,650,737     5,562,401     5,440,659     5,451,476     5,530,380  
               
    SHAREHOLDERS’ EQUITY:          
    Capital stock   20,097     20,097     20,058     20,058     20,058  
    Surplus   259,182     258,874     257,644     257,490     257,335  
    Undivided profits   453,931     446,503     442,079     436,048     430,346  
    Accumulated other comprehensive loss, net of tax   (132 )   (3,861 )   (6,600 )   (14,268 )   (14,763 )
    Treasury stock at cost   (45,270 )   (45,270 )   (44,160 )   (44,160 )   (43,786 )
               
    Total shareholders’ equity   687,808     676,343     669,021     655,168     649,190  
               
    Total liabilities and shareholders’ equity $ 6,338,545   $ 6,238,744   $ 6,109,680   $ 6,106,644   $ 6,179,570  
               
    Outstanding shares (in thousands)   19,020     19,020     19,010     19,010     19,024  
               
    NONPERFORMING ASSETS  
                 
    (dollars in thousands)  
    (Unaudited)  
      3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024  
    Nonperforming Assets            
                 
    New York and other states*            
    Loans in nonaccrual status:            
    Commercial $ 688   $ 343   $ 466   $ 741   $ 532    
    Real estate mortgage – 1 to 4 family   14,795     14,671     15,320     14,992     14,359    
    Installment   139     108     163     131     149    
    Total non-accrual loans   15,622     15,122     15,949     15,864     15,040    
    Other nonperforming real estate mortgages – 1 to 4 family   –     –     –     –     –    
    Total nonperforming loans   15,622     15,122     15,949     15,864     15,040    
    Other real estate owned   2,107     2,175     2,503     2,334     2,334    
    Total nonperforming assets $ 17,729   $ 17,297   $ 18,452   $ 18,198   $ 17,374    
                 
    Florida            
    Loans in nonaccrual status:            
    Commercial $ –   $ –   $ 314   $ 314   $ 314    
    Real estate mortgage – 1 to 4 family   3,135     3,656     3,176     2,985     2,921    
    Installment   3     22     5     22     –    
    Total non-accrual loans   3,138     3,678     3,495     3,321     3,235    
    Other nonperforming real estate mortgages – 1 to 4 family   –     –     –     –     –    
    Total nonperforming loans   3,138     3,678     3,495     3,321     3,235    
    Other real estate owned   –     –     –     –     –    
    Total nonperforming assets $ 3,138   $ 3,678   $ 3,495   $ 3,321   $ 3,235    
                 
    Total            
    Loans in nonaccrual status:            
    Commercial $ 688   $ 343   $ 780   $ 1,055   $ 846    
    Real estate mortgage – 1 to 4 family   17,930     18,327     18,496     17,977     17,280    
    Installment   142     130     168     153     149    
    Total non-accrual loans   18,760     18,800     19,444     19,185     18,275    
    Other nonperforming real estate mortgages – 1 to 4 family   –     –     –     –     –    
    Total nonperforming loans   18,760     18,800     19,444     19,185     18,275    
    Other real estate owned   2,107     2,175     2,503     2,334     2,334    
    Total nonperforming assets $ 20,867   $ 20,975   $ 21,947   $ 21,519   $ 20,609    
                 
                 
    Quarterly Net (Recoveries) Chargeoffs            
                 
    New York and other states*            
    Commercial $ (3 ) $ 62   $ 65   $ –   $ –    
    Real estate mortgage – 1 to 4 family   41     (316 )   104     (74 )   (78 )  
    Installment   4     41     11     (2 )   36    
    Total net chargeoffs (recoveries) $ 42   $ (213 ) $ 180   $ (76 ) $ (42 )  
                 
    Florida            
    Commercial $ (315 ) $ 314   $ –   $ –   $ –    
    Real estate mortgage – 1 to 4 family   –     –     –     17     –    
    Installment   15     1     42     7     –    
    Total net (recoveries) chargeoffs $ (300 )  $ 315   $ 42   $ 24   $ –    
                 
    Total            
    Commercial $ (318 )  $ 376   $ 65   $ –   $ –    
    Real estate mortgage – 1 to 4 family   41     (316 )   104     (57 )   (78 )  
    Installment   19     42     53     5     36    
    Total net (recoveries) chargeoffs $ (258 )  $ 102   $ 222   $ (52 ) $ (42 )  
                 
                 
    Asset Quality Ratios            
                 
    Total nonperforming loans (1) $ 18,760   $ 18,800   $ 19,444   $ 19,185   $ 18,275    
    Total nonperforming assets (1)   20,867     20,975     21,947     21,519     20,609    
    Total net (recoveries) chargeoffs (2)   (258 )    102     222     (52 )   (42 )  
                 
    Allowance for credit losses on loans (1)   50,606     50,248     49,950     49,772     49,220    
                 
    Nonperforming loans to total loans   0.37 %   0.37 %   0.38 %   0.38 %   0.37 %  
    Nonperforming assets to total assets   0.33 %   0.34 %   0.36 %   0.35 %   0.33 %  
    Allowance for credit losses on loans to total loans   0.99 %   0.99 %   0.99 %   0.99 %   0.98 %  
    Coverage ratio (1)   269.8 %   267.3 %   256.9 %   259.4 %   269.3 %  
    Annualized net (recoveries) chargeoffs to average loans (2)   -0.02 %   0.01 %   0.02 %   0.00 %   0.00 %  
    Allowance for credit losses on loans to annualized net chargeoffs (2)   N/A     123.2x     56.3x     N/A     N/A    
       
    * Includes New York, New Jersey, Vermont and Massachusetts.  
    (1) At period-end  
    (2) For the three-month period ended  
       
    DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY –
    INTEREST RATES AND INTEREST DIFFERENTIAL
     
    (dollars in thousands)                      
    (Unaudited) Three months ended     Three months ended  
      March 31, 2025     March 31, 2024  
      Average   Interest Average     Average   Interest Average  
      Balance     Rate     Balance     Rate  
    Assets                      
                           
    Securities available for sale:                      
    U. S. government sponsored enterprises $ 74,680     $ 596 3.19 %   $ 125,973     $ 906 2.88 %
    Mortgage backed securities and collateralized mortgage                    
    obligations – residential   239,509       1,483 2.46       258,814       1,494 2.30  
    State and political subdivisions   18       – 6.77       26       0 6.90  
    Corporate bonds   40,019       260 2.60       73,625       476 2.59  
    Small Business Administration – guaranteed                      
    participation securities   15,003       81 2.15       18,224       100 2.20  
    Other   699       7 4.01       696       3 1.72  
                           
    Total securities available for sale   369,928       2,427 2.62       477,358       2,979 2.50  
                           
    Federal funds sold and other short-term Investments   613,646       6,732 4.45       497,652       6,750 5.45  
                           
    Held to maturity securities:                      
    Mortgage backed securities and collateralized mortgage                    
    obligations – residential   5,233       57 4.34       6,329       68 4.30  
                           
    Total held to maturity securities   5,233       57 4.34       6,329       68 4.30  
                           
    Federal Home Loan Bank stock   6,507       151 9.28       6,203       152 9.80  
                           
    Commercial loans   297,926       4,165 5.59       277,183       3,661 5.28  
    Residential mortgage loans   4,385,646       42,614 3.89       4,359,476       40,415 3.71  
    Home equity lines of credit   413,981       6,435 6.30       353,004       5,464 6.22  
    Installment loans   12,967       236 7.37       16,128       264 6.58  
                           
    Loans, net of unearned income   5,110,520       53,450 4.19       5,005,791       49,804 3.98  
                           
    Total interest earning assets   6,105,834     $ 62,817 4.13       5,993,333     $ 59,753 3.99  
                           
    Allowance for credit losses on loans   (50,475 )             (48,824 )        
    Cash & non-interest earning assets   201,154               185,230          
                           
                           
    Total assets $ 6,256,513             $ 6,129,739          
                           
                           
    Liabilities and shareholders’ equity                      
                           
    Deposits:                      
    Interest bearing checking accounts $ 1,038,218     $ 558 0.22 %   $ 990,130     $ 240 0.10 %
    Money market accounts   469,070       1,989 1.72       544,687       2,342 1.73  
    Savings   1,089,358       734 0.27       1,158,558       712 0.25  
    Time deposits   2,054,494       18,984 3.75       1,889,929       19,677 4.19  
                           
    Total interest bearing deposits   4,651,140       22,265 1.94       4,583,304       22,971 2.02  
    Short-term borrowings   83,207       180 0.88       93,316       204 0.88  
                           
    Total interest bearing liabilities   4,734,347     $ 22,445 1.92       4,676,620     $ 23,175 1.99  
                           
    Demand deposits   761,800               726,299          
    Other liabilities   78,748               80,158          
    Shareholders’ equity   681,618               646,662          
                           
    Total liabilities and shareholders’ equity $ 6,256,513             $ 6,129,739          
                           
    Net interest income     $ 40,372           $ 36,578    
                           
    Net interest spread       2.21 %         2.00 %
                           
                           
    Net interest margin (net interest income to                      
    total interest earning assets)       2.64 %         2.44 %
                           

    Non-GAAP Financial Measures Reconciliation

    Tangible book value per share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible book value by excluding the balance of intangible assets from total shareholders’ equity divided by shares outstanding. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity exclusive of changes in intangible assets.

    Tangible equity as a percentage of tangible assets at period end is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from total shareholders’ equity and total assets, respectively. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity and total assets, each exclusive of changes in intangible assets.

    Adjusted efficiency ratio is a non-GAAP measures of expense control relative to revenue from net interest income and non-interest fee income. We calculate the efficiency ratio by dividing total non-interest expense by the sum of net interest income and total non-interest income. We calculate the adjusted efficiency ratio by dividing total noninterest expenses as determined under GAAP, excluding other real estate expense, net, by net interest income and total noninterest income as determined under GAAP. We believe that this provides a reasonable measure of primary banking expenses relative to primary banking revenue. Additionally, we believe this measure is important to investors looking for a measure of efficiency in our productivity measured by the amount of revenue generated for each dollar spent.

    We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial results. Our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-GAAP measures of tangible book value to shares outstanding, tangible equity as a percentage of tangible assets, and efficiency ratio to the most directly comparable GAAP measures is set forth below.  

    NON-GAAP FINANCIAL MEASURES RECONCILIATION        
             
    (dollars in thousands)        
    (Unaudited)        
        3/31/2025 12/31/2024 3/31/2024
    Tangible Book Value Per Share        
             
    Equity (GAAP)   $ 687,808   $ 676,343   $ 649,190  
    Less: Intangible assets     553     553     553  
    Tangible equity (Non-GAAP)   $ 687,255   $ 675,790   $ 648,637  
             
    Shares outstanding     19,020     19,020     19,024  
    Tangible book value per share     36.13     35.53     34.10  
    Book value per share     36.16     35.56     34.12  
             
    Tangible Equity to Tangible Assets        
    Total Assets (GAAP)   $ 6,338,545   $ 6,238,744   $ 6,179,570  
    Less: Intangible assets     553     553     553  
    Tangible assets (Non-GAAP)   $ 6,337,992   $ 6,238,191   $ 6,179,017  
             
    Equity to Assets (GAAP)     10.85 %   10.84 %   10.51 %
    Tangible Equity to Tangible Assets (Non-GAAP)     10.84 %   10.83 %   10.50 %
             
        Three months ended
    Efficiency and Adjusted Efficiency Ratios   3/31/2025 12/31/2024 3/31/2024
             
    Net interest income (GAAP) A $ 40,373   $ 38,902   $ 36,578  
    Non-interest income (GAAP) B   4,974     4,409     4,843  
    Revenue used for efficiency ratio (GAAP) C $ 45,347   $ 43,311   $ 41,421  
             
    Total noninterest expense (GAAP) D $ 26,329   $ 28,165   $ 24,903  
    Less: Other real estate expense, net E   28     476     74  
    Expense used for efficiency ratio (Non-GAAP) F $ 26,301   $ 27,689   $ 24,829  
             
    Efficiency Ratio (GAAP) D/C   58.06 %   65.03 %   59.94 %
    Adjusted Efficiency Ratio (Non-GAAP) F/C   58.00 %   63.93 %   59.94 %
             
    Subsidiary:   Trustco Bank
         
    Contact:   Robert Leonard
        Executive Vice President
        (518) 381-3693

    The MIL Network –

  • MIL-OSI: NorthEast Community Bancorp, Inc. Reports Results for the Three Months Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    WHITE PLAINS, N.Y., April 21, 2025 (GLOBE NEWSWIRE) — NorthEast Community Bancorp, Inc. (Nasdaq: NECB) (the “Company”), the parent holding company of NorthEast Community Bank (the “Bank”), generated net income of $10.6 million, or $0.80 per basic share and $0.78 per diluted share, for the three months ended March 31, 2025 compared to net income of $11.4 million, or $0.87 per basic share and $0.86 per diluted share, for the three months ended March 31, 2024.

    Kenneth A. Martinek, Chairman of the Board and Chief Executive Officer, stated, “We are, once again, pleased to report another quarter of strong earnings due to the excellent performance of our loan portfolio. Despite the challenging economic operating environment thus far in 2025, loan demand is strong with originations and outstanding commitments robust and increasing. As in the past, construction lending in high demand-high absorption areas continues to be our focus.”

    Highlights for the three months ended March 31, 2025 are as follows:

    • Performance metrics continue to be strong at March 31, 2025, with a return on average total assets ratio of 2.12%, a return on average shareholders’ equity ratio of 12.98%, and an efficiency ratio of 41.64%.
    • Asset quality metrics continued to remain strong with no non-performing loans at either March 31, 2025 or December 31, 2024, and non-performing assets to total assets of 0.26% and 0.25% at March 31, 2025 and at December 31, 2024, respectively. Our allowance for credit losses related to loans totaled $5.1 million, or 0.30% of total loans at March 31, 2025 compared to $4.9 million, or 0.27% of total loans at December 31, 2024.
    • We increased total stockholders’ equity by $8.9 million, or 2.8%, to $327.2 million, or 16.92% of total assets as of March 31, 2025 from $318.3 million, or 15.84% of total assets as of December 31, 2024.

    Balance Sheet Summary

    Total assets decreased $76.2 million, or 3.8%, to $1.9 billion at March 31, 2025, from $2.0 billion at December 31, 2024. The decrease in assets was primarily due to decreases in net loans of $87.3 million and decreases of $1.0 million in accrued interest receivable, partially offset by increases in cash and cash equivalents of $11.2 million and increases of $1.3 million in equity securities.

    Cash and cash equivalents increased $11.2 million, or 14.3%, to $89.5 million at March 31, 2025 from $78.3 million at December 31, 2024. The increase in cash and cash equivalents was a result of a decrease of $87.3 million in net loans and an increase of $8.9 million in stockholders’ equity, partially offset by a decrease in deposits of $84.4 million.

    Equity securities increased $1.3 million, or 5.9%, to $23.3 million at March 31, 2025 from $22.0 million at December 31, 2024. The increase in equity securities was attributable to the purchase of $1.0 million in equity securities during the three months ended March 31, 2025 and market appreciation of $300,000 due to market interest rate volatility during the quarter ended March 31, 2025.

    Securities held-to-maturity decreased $129,000, or 0.9%, to $14.5 million at March 31, 2025 from $14.6 million at December 31, 2024 due to $129,000 in maturities and pay-downs of various investment securities.

    Loans, net of the allowance for credit losses, decreased $87.3 million, or 4.8%, to $1.7 billion at March 31, 2025 from $1.8 billion at December 31, 2024. The decrease in loans consisted of decreases of $138.9 million in construction loans, $248,000 in non-residential loans, and $36,000 in one-to-four family loans. The decrease in our construction loan portfolio was due to normal pay-downs and principal reductions as construction projects were completed and either condominium units were sold to end buyers or multi-family rental buildings were refinanced by other financial institutions. The decrease in construction loans was offset by increases of $46.4 million in multi-family loans, $4.4 million in commercial and industrial loans, and $1.5 million in consumer loans.

    During the quarter ended March 31, 2025, we originated loans totaling $170.1 million consisting primarily of $110.2 million in construction loans, $49.1 million in multi-family loans, $10.1 million in commercial and industrial loans, and $730,000 in mixed-use loans. The $110.2 million in construction loans had 38.4% disbursed at loan closing, with the remaining funds to be disbursed over the terms of the construction loans.

    The allowance for credit losses related to loans increased to $5.1 million as of March 31, 2025, from $4.8 million as of December 31, 2024. The increase in the allowance for credit losses related to loans was due to recoveries totaling $352,000 and provision for credit losses totaling $62,000, offset by charge-offs totaling $117,000.

    Premises and equipment increased $84,000, or 0.3%, to $24.9 million at March 31, 2025 from $24.8 million at December 31, 2024 primarily due to the purchases of additional fixed assets.

    Federal Home Loan Bank stock was $397,000, foreclosed real estate was $5.1 million, and property held for investment was $1.4 million at both March 31, 2025 and December 31, 2024.

    Bank owned life insurance (“BOLI”) increased $167,000, or 0.6%, to $25.9 million at March 31, 2025 from $25.7 million at December 31, 2024 due to increases in the BOLI cash value.

    Accrued interest receivable decreased $1.0 million, or 7.9%, to $12.4 million at March 31, 2025 from $13.5 million at December 31, 2024 due to a decrease in the loan portfolio.

    Right of use assets — operating decreased $145,000, or 3.6%, to $3.9 million at March 31, 2025 from $4.0 million at December 31, 2024, primarily due to amortization.

    Other assets decreased $328,000, or 2.8%, to $11.3 million at March 31, 2025 from $11.6 million at December 31, 2024 due to decreases of $1.7 million in tax assets and $10,000 in miscellaneous assets, partially offset by increases of $1.1 million in suspense accounts and $263,000 in prepaid expenses.

    Total deposits decreased $84.4 million, or 5.1%, to $1.6 billion at March 31, 2025 from $1.7 billion at December 31, 2024. The decrease in deposits was primarily due to decreases in certificates of deposit of $125.1 million, or 12.5%, and non-interest bearing deposits of $9.9 million, or 3.5%, partially offset by increases in NOW/money market accounts of $45.9 million, or 18.8%, and savings account balances of $3.3 million, or 2.4%. The decrease of $125.1 million in certificates of deposit consisted of a decrease in retail certificates of deposit of $76.0 million, or 14.8%, and a decrease in brokered certificates of deposit of $54.8 million, or 12.6%, partially offset by an increase in non-brokered listing services certificates of deposit of $5.7 million, or 17.0%.

    The decrease in retail certificates of deposit was due to a shift in deposits to our retail high yield money market accounts. The decrease in brokered certificates of deposit was due to management’s strategy to reduce the cost of funds by “calling” higher rate brokered deposits on their call dates.

    Advance payments by borrowers for taxes and insurance increased $680,000, or 42.0%, to $2.3 million at March 31, 2025 from $1.6 million at December 31, 2024 due primarily to accumulation of real estate tax payments from borrowers.

    Lease liability – operating decreased $136,000, or 3.3%, to $4.0 million at March 31, 2025 from $4.1 million at December 31, 2024, primarily due to amortization.

    Accounts payable and accrued expenses decreased $1.3 million, or 8.7%, to $13.3 million at March 31, 2025 from $14.5 million at December 31, 2024 due primarily to a decrease in accrued expense of $2.8 million, partially offset by increases in dividends payable and other payables of $806,000, suspense accounts for loan closings of $346,000, and deferred compensation of $167,000. The allowance for credit losses for off-balance sheet commitments increased $175,000, or 24.8%, to $879,000 at March 31, 2025 from $704,000 at December 31, 2024 due primarily to an increase of $101.4 million, or 18.0%, in off-balance sheet commitments.

    Stockholders’ equity increased $8.9 million, or 2.8% to $327.2 million at March 31, 2025, from $318.3 million at December 31, 2024. The increase in stockholders’ equity was due to net income of $10.6 million for the quarter ended March 31, 2025, an increase of $302,000 in earned employee stock ownership plan shares coupled with a reduction of $217,000 in unearned employee stock ownership plan shares, and the amortization expense of $478,000 relating to restricted stock and stock options granted under the Company’s 2022 Equity Incentive Plan, partially offset by dividends declared of $2.7 million and $13,000 in other comprehensive loss.

    Results of Operations for the Three Months Ended March 31, 2025 and 2024

    Net Interest Income

    Net interest income was $24.3 million for the three months ended March 31, 2025, as compared to $25.0 million for the three months ended March 31, 2024. The decrease in net interest income of $722,000, or 2.9%, was primarily due to an increase in interest expense that exceeded an increase in interest income and a decrease in the yield on interest earning assets that exceeded a decrease in the cost of funds for interest bearing liabilities.

    Total interest and dividend income increased $86,000, or 0.2%, to $38.2 million for the three months ended March 31, 2025 from $38.1 million for the three months ended March 31, 2024. The increase in interest and dividend income was due to an increase in the average balance of interest earning assets of $159.9 million, or 9.2%, to $1.9 billion for the three months ended March 31, 2025 from $1.7 billion for the three months ended March 31, 2024, partially offset by a decrease in the yield on interest earning assets by 72 basis points from 8.77% for the three months ended March 31, 2024 to 8.05% for the three months ended March 31, 2025.

    Interest expense increased $808,000, or 6.2%, to $13.9 million for the three months ended March 31, 2025 from $13.1 million for the three months ended March 31, 2024. The increase in interest expense was due to an increase in average interest bearing liabilities of $149.7 million, or 12.2%, to $1.4 billion for the three months ended March 31, 2025 from $1.2 billion for the three months ended March 31, 2024, partially offset by a decrease in the cost of interest bearing liabilities by 24 basis points from 4.29% for the three months ended March 31, 2024 to 4.05% for the three months ended March 31, 2025.

    Our net interest margin decreased 64 basis points, or 11.1%, to 5.11% for the three months ended March 31, 2025 compared to 5.75% for the three months ended March 31, 2024. The decrease in the net interest margin was due to a decrease in the yield on interest-earning assets that exceeded a decrease in the cost of funds on interest-bearing liabilities.

    Credit Loss Expense

    The Company recorded a credit loss expense of $237,000 for the three months ended March 31, 2025 compared to a credit loss expense reduction of $165,000 for the three months ended March 31, 2024. The credit loss expense of $237,000 for the three months ended March 31, 2025 was comprised of credit loss expense for loans of $62,000 and credit loss expense for off-balance sheet commitments of $175,000.

    The credit loss expense for loans of $62,000 for the three months ended March 31, 2025 was primarily due to an increase in the multi-family loan portfolio. The credit loss expense for off-balance sheet commitments of $175,000 for the three months ended March 31, 2025 was primarily due to an increase in unfunded off-balance sheet commitments.

    The credit loss expense reduction of $165,000 for the three months ended March 31, 2024 was comprised of a credit loss expense reduction for loans of $145,000, a credit loss expense reduction for held-to-maturity investment securities of $3,000, and a credit loss expense reduction for off-balance sheet commitments of $17,000. The credit loss expense reduction for loans of $145,000 for the three months ended March 31, 2024 was primarily attributed to favorable trend in the economy.

    With respect to the allowance for credit losses for loans, we charged-off $117,000 during the three months ended March 31, 2025 as compared to charge-offs of $21,000 during the three months ended March 31, 2024. The charge-offs during both periods were against various unpaid overdrafts in our demand deposit accounts.

    We recorded recoveries of $352,000 during the three months ended March 31, 2025 compared to no recoveries during the three months ended March 31, 2024. The recoveries of $352,000 during the three months ended March 31, 2025 comprised of recoveries of $350,000 regarding a previously charged-off non-residential mortgage loan and $2,000 from a previously charged-off unpaid overdraft on a demand deposit account.

    Non-Interest Income

    Non-interest income for the three months ended March 31, 2025 was $1.2 million compared to non-interest income of $554,000 for the three months ended March 31, 2024. The increase of $681,000, or 122.9%, in total non-interest income was primarily due to increases of $382,000 in unrealized gain/(loss) on equity securities, $278,000 in other loan fees and service charges, $11,000 in miscellaneous other non-interest income, and $10,000 in BOLI income.

    The increase in unrealized gain/(loss) on equity securities was due to an unrealized gain of $300,000 on equity securities during the three months ended March 31, 2025 compared to an unrealized loss of $82,000 on equity securities during the three months ended March 31, 2024. The unrealized gain of $300,000 on equity securities during the three months ended March 31, 2025 was due to market interest rate volatility during the three months ended March 31, 2025.

    The increase of $278,000 in other loan fees and service charges was due to an increase of $245,000 in other loan fees and loan servicing fees, an increase of $31,000 in ATM/debit card/ACH fees, and an increase of $2,000 in deposit account fees.

    The increase in BOLI income of $10,000 was due to an increase in the yield on BOLI assets.

    Non-Interest Expense

    Non-interest expense increased $938,000, or 9.7%, to $10.6 million for the three months ended March 31, 2025 from $9.7 million for the three months ended March 31, 2024. The increase resulted primarily from increases of $582,000 in salaries and employee benefits, $221,000 in other operating expense, $98,000 in outside data processing expense, $40,000 in occupancy expense, $19,000 in real estate owned expense, and $14,000 in advertising expense, partially offset by a decrease of $36,000 in equipment expense.

    Income Taxes

    We recorded income tax expense of $4.1 million and $4.7 million for the three months ended March 31, 2025 and 2024, respectively. For the three months ended March 31, 2025, we had approximately $204,000 in tax exempt income, compared to approximately $195,000 in tax exempt income for the three months ended March 31, 2024. Our effective income tax rates were 27.8% for the three months ended March 31, 2025 compared to 29.0% for the three months ended March 31, 2024.

    Asset Quality

    Non-performing assets were $5.1 million at March 31, 2025 and December 31, 2024, respectively. These non-performing assets consisted of two foreclosed properties, with one foreclosed property totaling $4.4 million located in the Bronx, New York and one foreclosed property totaling $767,000 located in Pittsburgh, Pennsylvania.

    Our ratio of non-performing assets to total assets remained low at 0.26% at March 31, 2025 as compared to 0.25% at December 31, 2024.

    The Company’s allowance for credit losses related to loans was $5.1 million, or 0.30% of total loans as of March 31, 2025, compared to $4.8 million, or 0.27% of total loans as of December 31, 2024. Based on a review of the loans that were in the loan portfolio at March 31, 2025, management believes that the allowance for credit losses related to loans is maintained at a level that represents its best estimate of inherent losses in the loan portfolio that were both probable and reasonably estimable.

    In addition, at March 31, 2025, the Company’s allowance for credit losses related to off-balance sheet commitments totaled $879,000 and the allowance for credit losses related to held-to-maturity debt securities totaled $126,000.

    Capital

    The Company’s total stockholders’ equity to assets ratio was 16.92% as of March 31, 2025. At March 31, 2025, the Company had the ability to borrow $941.3 million from the Federal Reserve Bank of New York, $15.5 million from the Federal Home Loan Bank of New York, and $8.0 million from Atlantic Community Bankers Bank.

    The Bank’s capital position remains strong relative to current regulatory requirements and the Bank is considered a well-capitalized institution under the Prompt Corrective Action framework. As of March 31, 2025, the Bank had a tier 1 leverage capital ratio of 15.09% and a total risk-based capital ratio of 15.10%.

    The Company completed its first stock repurchase program on April 14, 2023 whereby the Company repurchased 1,637,794 shares, or 10%, of the Company’s issued and outstanding common stock. The cost of the stock repurchase program totaled $23.0 million, including commission costs and Federal excise taxes. Of the total shares repurchased under this program, 957,275 of such shares were repurchased during 2023 at a total cost of $13.7 million, including commission costs and Federal excise taxes.

    The Company commenced its second stock repurchase program on May 30, 2023 whereby the Company will repurchase 1,509,218, or 10%, of the Company’s issued and outstanding common stock. As of March 31, 2025, the Company had repurchased 1,091,174 shares of common stock under its second repurchase program, at a cost of $17.2 million, including commission costs and Federal excise taxes.

    About NorthEast Community Bancorp

    NorthEast Community Bancorp, headquartered at 325 Hamilton Avenue, White Plains, New York 10601, is the holding company for NorthEast Community Bank, which conducts business through its eleven branch offices located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts and three loan production offices located in New City, New York, White Plains, New York, and Danvers, Massachusetts. For more information about NorthEast Community Bancorp and NorthEast Community Bank, please visit www.necb.com.

    Forward Looking Statement

    This press release contains certain forward-looking statements. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause actual results to differ materially from expected results include, but are not limited to, changes in market interest rates, regional and national economic conditions (including higher inflation or recessionary conditions and their impact on regional and national economic conditions), legislative and regulatory changes, monetary and fiscal policies of the United States government, including policies of the United States Treasury and the Federal Reserve Board, the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts, the quality and composition of the loan or investment portfolios, demand for loan products, decreases in deposit levels necessitating increased borrowing to fund loans and securities, competition, demand for financial services in NorthEast Community Bank’s market area, changes in the real estate market values in NorthEast Community Bank’s market area, the impact of failures or disruptions in or breaches of the Company’s operational or security systems, data or infrastructure, or those of third parties, including as a result of cyberattacks or campaigns, and changes in relevant accounting principles and guidelines. Additionally, other risks and uncertainties may be described in our annual and quarterly reports filed with the U.S. Securities and Exchange Commission (the “SEC”), which are available through the SEC’s website located at www.sec.gov. These risks and uncertainties should be considered in evaluating any forward-looking statements and undue reliance should not be placed on such statements. Except as required by applicable law or regulation, the Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

    CONTACT:   Kenneth A. Martinek
        Chairman and Chief Executive Officer
         
    PHONE:   (914) 684-2500
     
    NORTHEAST COMMUNITY BANCORP, INC.
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (Unaudited)
                 
        March 31,   December 31,
        2025   2024
        (In thousands, except share
        and per share amounts)
    ASSETS            
    Cash and amounts due from depository institutions   $ 11,524     $ 13,700  
    Interest-bearing deposits     77,934       64,559  
    Total cash and cash equivalents     89,458       78,259  
    Certificates of deposit     100       100  
    Equity securities     23,294       21,994  
    Securities held-to-maturity ( net of allowance for credit losses of $126 and $126, respectively )     14,487       14,616  
    Loans receivable     1,725,664       1,812,647  
    Deferred loan fees, net     (63 )     (49 )
    Allowance for credit losses     (5,127 )     (4,830 )
    Net loans     1,720,474       1,807,768  
    Premises and equipment, net     24,889       24,805  
    Investments in restricted stock, at cost     397       397  
    Bank owned life insurance     25,905       25,738  
    Accrued interest receivable     12,432       13,481  
    Real estate owned     5,120       5,120  
    Property held for investment     1,361       1,370  
    Right of Use Assets – Operating     3,856       4,001  
    Right of Use Assets – Financing     346       347  
    Other assets     11,257       11,585  
    Total assets   $ 1,933,376     $ 2,009,581  
    LIABILITIES AND STOCKHOLDERS’ EQUITY            
    Liabilities:            
    Deposits:            
    Non-interest bearing   $ 278,694     $ 287,135  
    Interest bearing     1,307,321       1,383,240  
    Total deposits     1,586,015       1,670,375  
    Advance payments by borrowers for taxes and insurance     2,298       1,618  
    Lease Liability – Operating     3,972       4,108  
    Lease Liability – Financing     619       609  
    Accounts payable and accrued expenses     13,262       14,530  
    Total liabilities     1,606,166       1,691,240  
                 
    Stockholders’ equity:            
    Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding   $ —     $ —  
    Common stock, $0.01 par value; 75,000,000 shares authorized; 14,023,376 shares and 14,016,254 shares outstanding, respectively     140       140  
    Additional paid-in capital     110,871       110,091  
    Unearned Employee Stock Ownership Plan (“ESOP”) shares     (5,870 )     (6,088 )
    Retained earnings     221,858       213,974  
    Accumulated other comprehensive gain     211       224  
    Total stockholders’ equity     327,210       318,341  
    Total liabilities and stockholders’ equity   $ 1,933,376     $ 2,009,581  
                 
     
    NORTHEAST COMMUNITY BANCORP, INC.
    CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)
     
        Quarter Ended March 31,
        2025   2024
        (In thousands, except per share amounts)
    INTEREST INCOME:              
    Loans   $ 36,882     $ 36,703  
    Interest-earning deposits     1,081       1,200  
    Securities     244       218  
    Total Interest Income     38,207       38,121  
    INTEREST EXPENSE:              
    Deposits     13,933       12,394  
    Borrowings     –       731  
    Financing lease     10       10  
    Total Interest Expense     13,943       13,135  
    Net Interest Income     24,264       24,986  
    Provision for (reversal of) credit loss     237       (165 )
    Net Interest Income after Provision for (Reversal of) Credit Loss     24,027       25,151  
    NON-INTEREST INCOME:              
    Other loan fees and service charges     740       462  
    Earnings on bank owned life insurance     167       157  
    Unrealized gain (loss) on equity securities     300       (82 )
    Other     28       17  
    Total Non-Interest Income     1,235       554  
    NON-INTEREST EXPENSES:              
    Salaries and employee benefits     5,933       5,351  
    Occupancy expense     747       707  
    Equipment     217       253  
    Outside data processing     735       637  
    Advertising     102       88  
    Real estate owned expense     30       11  
    Other     2,855       2,634  
    Total Non-Interest Expenses     10,619       9,681  
    INCOME BEFORE PROVISION FOR INCOME TAXES     14,643       16,024  
    PROVISION FOR INCOME TAXES     4,076       4,650  
    NET INCOME   $ 10,567     $ 11,374  
                   
     
    NORTHEAST COMMUNITY BANCORP, INC.
    SELECTED CONSOLIDATED FINANCIAL DATA
    (Unaudited)
     
        Quarter Ended March 31,
        2025   2024
        (In thousands, except per share amounts)
    Per share data:            
    Earnings per share – basic   $ 0.80     $ 0.87  
    Earnings per share – diluted     0.78       0.86  
    Weighted average shares outstanding – basic     13,192       13,118  
    Weighted average shares outstanding – diluted     13,560       13,191  
    Performance ratios/data:            
    Return on average total assets     2.12 %     2.50 %
    Return on average shareholders’ equity     12.98 %     15.88 %
    Net interest income   $ 24,264     $ 24,986  
    Net interest margin     5.11 %     5.75 %
    Efficiency ratio     41.64 %     37.91 %
    Net charge-off ratio     (0.05 )%     0.00 %
                 
    Loan portfolio composition:     March 31, 2025     December 31, 2024
    One-to-four family   $ 3,436     $ 3,472  
    Multi-family     253,018       206,606  
    Mixed-use     26,572       26,571  
    Total residential real estate     283,026       236,649  
    Non-residential real estate     29,198       29,446  
    Construction     1,287,225       1,426,167  
    Commercial and industrial     123,113       118,736  
    Consumer     3,102       1,649  
    Gross loans     1,725,664       1,812,647  
    Deferred loan fees, net     (63 )     (49 )
    Total loans   $ 1,725,601     $ 1,812,598  
    Asset quality data:            
    Loans past due over 90 days and still accruing   $ –     $ –  
    Non-accrual loans     –       –  
    OREO property     5,120       5,120  
    Total non-performing assets   $ 5,120     $ 5,120  
                 
    Allowance for credit losses to total loans     0.30 %     0.27 %
    Allowance for credit losses to non-performing loans     0.00 %     0.00 %
    Non-performing loans to total loans     0.00 %     0.00 %
    Non-performing assets to total assets     0.26 %     0.25 %
                 
    Bank’s Regulatory Capital ratios:            
    Total capital to risk-weighted assets     15.10 %     13.92 %
    Common equity tier 1 capital to risk-weighted assets     14.79 %     13.65 %
    Tier 1 capital to risk-weighted assets     14.79 %     13.65 %
    Tier 1 leverage ratio     15.09 %     14.44 %
     
    NORTHEAST COMMUNITY BANCORP, INC.
    NET INTEREST MARGIN ANALYSIS
    (Unaudited)
     
        Quarter Ended March 31, 2025   Quarter Ended March 31, 2024
        Average
    Balance    		   Interest
    and dividend    		   Average
    Yield    		   Average
    Balance    		   Interest
    and dividend    		   Average
    Yield
        (In thousands, except yield/cost information)   (In thousands, except yield/cost information)
    Loan receivable gross   $ 1,767,849     $ 36,882     8.35 %   $ 1,612,343     $ 36,703     9.11 %
    Securities     36,751       235     2.56 %     33,848       197     2.33 %
    Federal Home Loan Bank stock     397       9     9.07 %     842       21     9.98 %
    Other interest-earning assets     93,476       1,081     4.63 %     91,552       1,200     5.24 %
    Total interest-earning assets     1,898,473       38,207     8.05 %     1,738,585       38,121     8.77 %
    Allowance for credit losses     (4,827 )                 (5,091 )            
    Non-interest-earning assets     96,493                   88,859              
    Total assets   $ 1,990,139                 $ 1,822,353              
                                         
    Interest-bearing demand deposit   $ 274,630     $ 2,445     3.56 %   $ 171,483     $ 1,817     4.24 %
    Savings and club accounts     138,903       730     2.10 %     182,771       1,202     2.63 %
    Certificates of deposit     962,084       10,758     4.47 %     810,586       9,375     4.63 %
    Total interest-bearing deposits     1,375,617       13,933     4.05 %     1,164,840       12,394     4.26 %
    Borrowed money     –       10     0.00 %     61,092       741     4.85 %
    Total interest-bearing liabilities     1,375,617       13,943     4.05 %     1,225,932       13,135     4.29 %
    Non-interest-bearing demand deposit     270,874                   291,909              
    Other non-interest-bearing liabilities     18,086                   18,090              
    Total liabilities     1,664,577                   1,535,931              
    Equity     325,562                   286,422              
    Total liabilities and equity   $ 1,990,139                 $ 1,822,353              
                                         
    Net interest income / interest spread         $ 24,264     4.00 %         $ 24,986     4.48 %
    Net interest rate margin                 5.11 %                 5.75 %
    Net interest earning assets   $ 522,856                 $ 512,653              
    Average interest-earning assets                                    
    to interest-bearing liabilities     138.01 %                 141.82 %            

    The MIL Network –

  • MIL-OSI Security: Defendant Convicted of Five Armed Robberies and Attempted Robberies in Brooklyn, Staten Island, and New Jersey

    Source: Office of United States Attorneys

    A federal jury today convicted Tony Clanton, also known as “Tone,” on all counts of a superseding indictment charging him with Hobbs Act robbery conspiracy, two counts of Hobbs Act robbery, attempted Hobbs Act robbery, and use of firearms during crimes of violence.  The charges arose from a string of robberies and attempted robberies committed at gunpoint by the defendant and co-conspirators.  The verdict followed a six-day trial before United States District Judge Kiyo A. Matsumoto.  When sentenced, Clanton faces a mandatory minimum term of 25 years in prison and up to life in prison.

    John J. Durham, United States Attorney for the Eastern District of New York; Terence G. Reilly, Acting Special Agent in Charge, Federal Bureau of Investigation, Newark Field Office (FBI); and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the verdict.

    “Over a six-month period, Clanton directed a cruel and violent spree in New York City and New Jersey that left terrorized robbery victims in his wake, including two children who watched as their parents were shot at or menaced with guns,” stated United States Attorney Durham.  “Thanks to exceptional investigative work by the FBI and the NYPD, the defendant was identified, apprehended, and rightly convicted today by jurors who were presented with a mountain of evidence that demonstrated his crime wave and overwhelmingly proved his guilt.”

    Mr. Durham also thanked the Edison, New Jersey Police Department for their valuable assistance on the case.

    “Tony Clanton is a serial violent criminal who has gone to great lengths to terrorize his victims in the pursuit of monetary gain. The FBI won’t rest until violent organized criminals are taken off the street so victims and others in the community may sleep soundly, and know justice has been served,” stated FBI Newark Acting Special Agent in Charge Reilly.  “The FBI’s Safe Streets Task Forces spearhead countless cases similar to this one.  But with each case, there are victims.  All our efforts are for them.”

    “Tony Clanton terrorized communities throughout New York City — holding victims at gunpoint in front of their children, firing recklessly, even impersonating a federal agent,” said NYPD Commissioner Jessica S. Tisch.  “Thanks to the outstanding work of NYPD investigators, in partnership with the FBI and the U.S. Attorney’s Office, he’s now been brought to justice.  This conviction ends a violent spree that had no place in our city.  And we will continue working with our partners to make sure criminals like this are held accountable.”

    As proven at trial, Clanton orchestrated a series of violent robberies at gunpoint in the Eastern District of New York and in New Jersey between January 2023 and July 2023.  After he was indicted, Clanton removed his ankle monitor and fled the district two weeks before a previously scheduled trial date and went on the run for five weeks.  While he was a fugitive, Clanton fled from two police officers who pulled him over, presented fake identification documents, and searched on the Internet for how to fake his own death.

    January 20, 2023 Home Invasion in Staten Island

    Clanton orchestrated an attempted robbery in which a co-conspirator, wearing a white hazmat suit, gloves, and standing in the vestibule of an apartment building with a can of paint, accosted Victim-1, who was entering the vestibule with his 10-year-old son.  The co-conspirator pointed a silver revolver at Victim-1 and said, “Don’t make this a homicide,” struck Victim-1 in the head with the gun, and fired a shot.  Clanton, who was also armed with a gun, grabbed Victim-1’s keys and tried unsuccessfully to open Victim-1’s apartment door.  Clanton and his co-conspirator then fled in a U-Haul van.

    June 3, 2023 Robbery of a Smoke Shop in Staten Island

    Clanton orchestrated the robbery of an employee (Victim-2) of a smoke shop in Annadale, Staten Island as he was closing the store for the night.  As his co-conspirators brandished firearms and robbed the smoke shop, Clanton monitored a police scanner radio and maintained cell phone contact with his accomplices to warn them that the police were on the way.  They restrained Victim-2 with zip ties and pressed a gun to the back of his head.  The robbers took approximately $4,000 in cash, packages of cigarettes, and a quantity of marijuana.

    June 24, 2023 Attempted Robbery of a Car Buyer in Staten Island

    Clanton orchestrated a robbery in which he pretended he was selling his Mercedes-Benz automobile to a prospective buyer (Victim-3).  While Clanton waited in the area, two of Clanton’s co-conspirators tried to rob Victim-3.  With Victim-3’s teenage son watching from the doorway, one of the co-conspirators attempted to rob Victim-3 at gunpoint.  Victim-3 fled into his home and slammed the door shut before the co-conspirator could barge inside.  That co-conspirator then fled the scene with Clanton as the get-away driver.

    June 27, 2023 Attempted Robbery of the Owners of a Jewelry Store in New Jersey

    Clanton and a co-conspirator attempted to rob the husband (Victim-4) and wife (Victim-5) owners of an Edison, New Jersey jewelry store outside their home.  Clanton identified Victim-4 and Victim-5 as potential targets and conducted surveillance on them for over a week before the attempted robbery.  During the attempted robbery, Clanton and his co-conspirator were wearing jackets with the letters “FBI,” badges that said “FBI,” and hats identifying themselves as law enforcement agents that Clanton had previously ordered from Amazon.  When the victims pulled into their driveway, Clanton and his co-conspirator ordered them out of the car at gunpoint.  Realizing Clanton and his co-conspirator were not FBI agents, the victims sped away and escaped unharmed.

    July 12, 2023 Robbery of the Owner of an Ice Cream Store in Brooklyn

    Clanton and a co-conspirator waited outside a TD Bank in Brooklyn for the victim (Victim-6) to leave with a bag of cash.  They followed Victim-6 to his home where the co-conspirator took a bag containing over $6,000 at gunpoint.

    The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Andrew M. Roddin and Matthew Skurnik are in charge of the prosecution with the assistance of Paralegal Specialist Timothy Migliaro.

    The Defendant:

    TONY CLANTON (also known as “Tone”)
    Age:  51
    Staten Island, New York

    E.D.N.Y. Docket No. 23-CR-328 (S-1) (KAM)

    MIL Security OSI –

  • MIL-OSI Economics: Thailand credit and charge card payments market to surpass $65 billion in 2025, forecasts GlobalData

    Source: GlobalData

    Thailand credit and charge card payments market to surpass $65 billion in 2025, forecasts GlobalData

    Posted in Banking

    Thailand’s credit and charge card payments market is projected to reach THB2.3 trillion ($65.6 billion) in 2025, reflecting a robust growth of 7.1% compared to the previous year, driven by the increasing adoption of digital payment solutions and a shift in consumer behavior towards cashless transactions, according to GlobalData, a leading data and analytics company.

    GlobalData’s Payment Cards Analytics reveals that credit and charge card payment value in Thailand registered a growth of 7.1% in 2024, driven by the rise in consumer spending. The value is forecast to register a compound annual growth rate (CAGR) of 9.0% between 2025 and 2029 to reach THB3.3 trillion ($92.6 billion) in 2029.

    Poornima Chinta, Banking and Payments Analyst at GlobalData, comments: “Despite having a lower penetration than debit cards, credit and charge cards are preferred for payments, accounting for an estimated 93.8% of card payment value in 2025. The average frequency of payments per card stands at 37.9 times in 2025, compared to 3.1 times for debit cards. The steady rise in the middle class and young working population coupled with a developing payment infrastructure and a growing e-commerce market are all supporting this growth.”

    The growth of credit and charge card usage is primarily driven by value-added benefits such as reward points, discounts, flexible payment facilities, and cashbacks. SCB Bank offers its CardX credit card customers a 0% installment payment facility, enabling them to settle purchases in four equal monthly installments through the SCB EASY app from January 1, 2025, to December 31, 2025.

    A developing POS infrastructure is also supporting the rise of credit and charge cards in Thailand. The number of POS terminals per million inhabitants in the country increased from 12,501 in 2020 to 13,507 in 2024, though there is significant room for further expansion of the POS infrastructure.

    Payment providers are introducing various initiatives to boost card acceptance among merchants. One such effort is the ‘Effortless Payment Processing’ campaign, launched in September 2024 by SCB Bank in partnership with Mastercard and Soft Space. The campaign aims to accelerate SoftPOS adoption by offering eligible merchants Android devices for ‘SCB Tap-To-Pay’ contactless payments.

    Chinta concludes: “The Thai credit and charge card payments market is expected to continue its upward growth trajectory in the next five years. A developing payment infrastructure, rise in consumer spending, and growth in e-commerce payments will continue to push credit and charge card payments usage in Thailand. However, the global and Thai economies face potential headwinds from recent global trade wars stemming from US import tariffs. Any adverse impact could restrict consumer spending, thereby affecting the Thai credit and charge card market.”

    MIL OSI Economics –

  • MIL-OSI Security: BAKER WOMAN SENTENCED TO 30 MONTHS IN FEDERAL PRISON FOR WIRE FRAUD

    Source: Office of United States Attorneys

    Acting United States Attorney April M. Leon announced that U.S. District Judge Brian A. Jackson sentenced Erin D. Jones, 49, of Baker, Louisiana, to 30 months in federal prison following her conviction for wire fraud. The Court further sentenced Jones to serve three years of supervised release following her term of imprisonment, ordered her to pay $334,092.03 in restitution, and entered a money judgment against the defendant for an additional $334,092.03.

    According to admissions made as part of her guilty plea, Jones worked part-time at a small business in Baton Rouge, Louisiana, that provided truck and diesel engine repair services and was trusted to assist with the company’s book-keeping and accounting, among other tasks. Jones held bank accounts at JPMorgan Chase Bank and Hancock Whitney Bank (collectively, the “banks”), and the company also maintained a business bank account at Hancock Bank.

    Beginning in or about May of 2019 and continuing through April of 2024, Jones knowingly executed a scheme to defraud the company and to obtain money by means of materially false and fraudulent pretenses, representations, and promises.

    One of Jones’ job responsibilities was to retrieve the company’s mail from a post office box that the company maintained in Baton Rouge. Using her access to the post office box, she would retrieve checks that had been issued to the company and mailed to the company by its customers. The checks were drawn on the customers’ bank accounts at banks located across the country. After gaining control of each check, Jones would endorse the back of the check and deposit it into one of her own personal bank accounts, either by using an ATM or making a remote online deposit.

    Jones concealed her scheme in several ways. On many occasions, she would use her access to the company’s accounting program to delete the underlying invoices that caused the company’s customers and vendors to make the payments.

    Over the course of the scheme, Jones embezzled and fraudulently deposited approximately 431 checks payable to the company, totaling approximately $334,000.

    Acting U.S. Attorney Leon stated, “Small businesses are the backbones of a local economy.  Employees are entrusted with duties and responsibilities that contribute to those companies either thriving or failing. Therefore, prosecuting fraud at these establishments are important, and we join our federal and local law enforcement partners in prioritizing them accordingly. We truly appreciate the hard work of the United States Secret Service and East Baton Rouge Sheriff’s Office for their investigation of this financial crime and acknowledge the impact these prosecutions have on our small businesses and local economy when offenders are held accountable.”

    “The U.S. Secret Service takes our mission to investigate financial crimes seriously. As a result of a true team effort between our amazing local law enforcement partners, federal prosecutors, and our agents, another fraudster was brought to justice. This individual abused their position of trust to steal from their company and its clients, and now they will face the consequences of those actions. This type of crime will not be tolerated in Louisiana, and the U.S. Secret Service is proud to stand with our partners to protect our citizens,” stated U.S. Secret Service SAIC James A. Kearns.

    This matter was investigated by the East Baton Rouge Sheriff’s Office, with substantial assistance from the United States Secret Service, and was prosecuted by Assistant United States Attorney Alan A. Stevens, who also serves as Senior Litigation Counsel.

    MIL Security OSI –

  • MIL-OSI: FHLBank San Francisco’s Jennifer Schachterle to Discuss Letters of Credit at 2025 California Municipal Treasurers Association Annual Conference

    Source: GlobeNewswire (MIL-OSI)

    SAN FRANCISCO, April 21, 2025 (GLOBE NEWSWIRE) — The Federal Home Loan Bank of San Francisco (FHLBank San Francisco) announced Jennifer Schachterle, senior vice president of sales and business development, is scheduled to speak on a panel focused on letters of credit during the 2025 California Municipal Treasurers Association (CMTA) annual conference on April 24 in Monterey, California.

    During the conference attended by local government officials with fiduciary responsibility for public funds, Schachterle will discuss how letters of credit can be a secure and efficient way for municipalities to make sure that deposits are covered over insured limits and serve as a favorable alternative to other forms of credit risk management.

    “Municipal letters of credit issued by Federal Home Loan Banks to state and local governments can often be an effective tool to secure public fund deposits in excess of the Federal Deposit Insurance Corporation (FDIC) and National Credit Union Insurance Fund limits,” said Schachterle. “I’m looking forward to connecting with attendees at the CMTA annual conference and joining my fellow panelists to share insights on this fast and efficient alternative form of collateral.”

    On the panel, Schachterle will be joined by Denise de Bombelles, senior vice president, global investor relations with the Federal Home Loan Bank Office of Finance and Hubie White, CFA CTP, chief investment officer with the City and County of San Francisco, in a discussion for how municipal letters of credit can help safeguard public unit deposits.

    The 2025 CMTA Annual Conference is taking place April 22-25, 2025, at the Hyatt Regency Monterey Hotel and Spa in Monterey, California.

    Jennifer Schachterle joined FHLBank San Francisco in June 2023 as SVP of Sales and Business Development. She leads a team dedicated to sales, business development and new member recruitment and oversees relationships with the Bank’s over 330-member financial institutions across its three-state district of Arizona, California, and Nevada. Ms. Schachterle has experience in the areas of sales, credit risk, counterparty approval, policy, and mortgage acquisition. Over the course of her more than 25 years in banking, Schachterle has held positions of increasing seniority in operations, credit, and sales in the banking and mortgage finance industry. Since 2019, she has served on the board of directors for the California Mortgage Bankers Association. She has a degree from the University of Denver and enjoys volunteering to teach children financial literacy.

    Visit FHLBank San Francisco for more information about letters of credit and learn which member banks and credit unions are available to issue letters of credit.

    About Federal Home Loan Bank of San Francisco

    The Federal Home Loan Bank of San Francisco is a member-driven cooperative helping local lenders in Arizona, California, and Nevada build strong communities, create opportunity, and change lives for the better. The tools and resources we provide to our member financial institutions — commercial banks, credit unions, industrial loan companies, savings institutions, insurance companies, and community development financial institutions — propel homeownership, finance quality affordable housing, drive economic vitality, and revitalize whole neighborhoods. Together with our members and other partners, we are making the communities we serve more vibrant and resilient.

    The MIL Network –

  • MIL-OSI: Five Star Bancorp Declares First Quarter Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    RANCHO CORDOVA, Calif., April 21, 2025 (GLOBE NEWSWIRE) — Five Star Bancorp (Nasdaq: FSBC) (“Five Star” or the “Company”), a holding company that operates through its wholly owned banking subsidiary, Five Star Bank (the “Bank”), announced today the declaration of a cash dividend of $0.20 per share on the Company’s voting common stock. The dividend is expected to be paid on May 12, 2025, to shareholders of record as of May 5, 2025.

    About Five Star Bancorp
    Five Star is a bank holding company headquartered in Rancho Cordova, California. Five Star operates through its wholly owned banking subsidiary, Five Star Bank. The Bank has eight branches in Northern California. For more information, visit https://www.fivestarbank.com.

    Special Note Concerning Forward-Looking Statements
    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company’s beliefs concerning future events, business plans, objectives, expected operating results, and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases of similar meaning. The Company cautions that the forward-looking statements are based largely on the Company’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company’s control) and are subject to risks and uncertainties, which change over time, and other factors, which could cause actual results to differ materially from those currently anticipated. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. If one or more of the factors affecting the Company’s forward-looking information and statements proves incorrect, then the Company’s actual results, performance, or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this press release. Therefore, the Company cautions you not to place undue reliance on the Company’s forward-looking information and statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 under the section entitled “Risk Factors,” and other documents filed by the Company with the Securities and Exchange Commission from time to time.

    The Company disclaims any duty to revise or update the forward-looking statements, whether written or oral, to reflect actual results or changes in the factors affecting the forward-looking statements, except as specifically required by law.

    Investor Contact:
    Heather C. Luck, Chief Financial Officer
    Five Star Bancorp
    (916) 626-5008
    hluck@fivestarbank.com

    Media Contact:
    Shelley R. Wetton, Chief Marketing Officer
    Five Star Bancorp
    (916) 284-7827
    swetton@fivestarbank.com

    The MIL Network –

  • MIL-OSI: Provident Financial Holdings, Inc. To Host Earnings Release Conference Call

    Source: GlobeNewswire (MIL-OSI)

    RIVERSIDE, Calif., April 21, 2025 (GLOBE NEWSWIRE) — Provident Financial Holdings, Inc. (“Company”) (Nasdaq GS: PROV), the holding company for Provident Savings Bank, F.S.B., today announced that it will distribute a news release announcing earnings for the third quarter of fiscal 2025 prior to the market open on Monday, April 28, 2025. Additionally, the Company will host a conference call for institutional investors and bank analysts on Tuesday, April 29, 2025 at 9:00 a.m. (Pacific) to discuss financial results. The conference call can be accessed by dialing 1-800-715-9871 and referencing Conference ID number 7361828. An audio replay of the conference call will be available through Tuesday, May 6, 2025 by dialing 1-800-770-2030 and referencing Conference ID number 7361828.

    Contacts:

    Donavon P. Ternes
    President and Chief Executive Officer 

    Haryanto L. Sunarto
    Interim Chief Financial Officer

    (951) 686-6060

    The MIL Network –

  • MIL-OSI Global: Rating agencies don’t treat the Global South fairly: changes South Africa should champion in G20 hot seat

    Source: The Conversation – Africa – By Daniel Cash, Reader in Law, Aston University

    Credit rating agencies like S&P Global and Fitch have an outsized influence on the economic fortunes of developing countries. Their assessments shape investor perceptions, influence borrowing costs, and ultimately shape a country’s development path. With many African countries now issuing bonds in global markets amid falling levels of official development assistance (ODA), their role is coming under increasing scrutiny.

    The major credit rating agencies exist to opine on the likelihood that a debtor (say, a country) will repay their creditors on time and in full. They are rated on a sliding scale. Whenever a rating agency believes that a debtor will not meet their obligations, they are obliged to put that debtor into a ‘default’ rating. This means that the debtor can no longer access private financing.



    Read more:
    African countries can’t resolve their debt crisis under a system rigged against them

    The negative role of rating agencies has been felt in other ways too. For example, threats of downgrades have also led to developing countries steering away from seeking debt relief under a recently introduced G20-initiated debt treatment programme. The reason is that getting help would mean that sovereign debtors have to restructure their debts. But credit rating agencies have warned that doing this will likely lead countries being given a ‘default’ rating.

    As a result, no rated country has applied for debt relief through the G20. This has been called a ‘credit rating impasse’.

    Change needs to happen on two fronts: the building of credit rating capability in the Global South, combined with shoring up capacity in countries in an effort to rebalance existing relationships with rating agencies.



    Read more:
    Rating agencies and Africa: the absence of people on the ground contributes to bias against the continent – analyst

    As a researcher who has looked closely at the working of rating agencies, I would argue that South Africa’s 2024–25 G20 Presidency presents a rare opportunity to push for more equitable reforms. It also provides a platform to spotlight African-led initiatives that are already making progress.

    The aim is not to ensure every country receives a top-tier credit rating. Rather, it is to ensure that all countries have the capacity, knowledge, and tools to engage in the rating process on fair terms.

    Alternatives

    Among the boldest reform efforts so far is the establishment of the African Credit Rating Agency spearheaded by the African Union. The agency aims to deliver fairer, more contextually grounded credit assessments of African sovereigns.

    Structured as a specialised agency owned by AU member states and funded through a mix of regional support and service revenue, the agency is a tangible step toward rating independence. Naturally, there are challenges. These include legitimacy, credibility with global investors, generating the necessary capital to appropriately invest in research and credit analysis, and blowback if and when it will have to downgrade.

    Its creation is rooted in dissatisfaction with the big three agencies. But it’s also inspired by parallel developments in other regions, such as China’s own domestic rating ecosystem.

    Though still in development, the proposed African agency represents the most advanced reform effort in the credit rating space from a Global South perspective.

    But building this institutional capacity is only one piece of a larger puzzle. For many countries, support is urgently needed to engage more effectively with the existing system.

    Expertise mismatch

    The lag in expertise and experience on the part of countries in the global south is understandable: sovereign debt trading has been around since the 19th Century. The first Eurobond was issued in 1963. In contrast, many African nations only began issuing Eurobonds in the late 1990s, with Tunisia being the first in 1997.

    At present, that expertise is often provided by ‘credit rating advisory’ teams embedded within the Investment Banks arranging a country’s bond sale – typically offered at no cost. There is a valid perception that this advice is not independent.

    One way to close the gap is through independent credit rating-related capacity building. Done well, it can empower developing countries to engage with credit rating agencies on a more equal footing, improve the quality of credit interactions, and make informed decisions in a market that often prioritises investor interests over national development goals.

    A few initiatives are well underway.

    The African Union’s Africa Peer Review Mechanism , in partnership with the United Nations Economic Commission for Africa, has been offering tailored, hands-on support. This includes technical workshops, advocacy against problematic ratings, and the publication of the ‘Africa Sovereign Credit Rating Review’, a regular report that helps member states track trends and identify areas for improvement.

    Building on this, the UNDP Africa and AfriCatalyst recently launched the ‘Credit Ratings Initiative’. This includes an innovative web platform, a panel of former rating analysts known as the ‘Concilium’, and a community of practice to share knowledge.

    Early pilots with East African countries have already made an impact, showing how independent, neutral advice can boost sovereigns’ technical understanding and strategic engagement with rating agencies.

    All parties are actively collaborating to share best practice at key global events. This momentum is a promising sign of broader change.

    These efforts underscore an important lesson: while long-term reform is crucial, short-term, practical tools can have an immediate and meaningful effect.

    Quest for a fairer financing systems

    South Africa currently holds the G20 Presidency. The government has adopted the idea of a ‘Cost of Capital Commission’ to examine how financing conditions affect developing nations. One of its aims is to review credit rating methodologies and promote transparency and data efficiency.



    Read more:
    The G20: how it works, why it matters and what would be lost if it failed

    This is a promising start. But there is room to go further. South Africa could use its leadership role to champion the establishment of a global credit rating capacity building initiative. Such a move would align with its development priorities, position Africa as a leader in financial reform, and create a blueprint for global action.

    Crucially, this would not be just another technical fix. It would be a shift in the power dynamics of global finance – from crisis response to structural empowerment. As the U.S. prepares to take over the G20 Presidency next, South Africa’s advocacy could lay the groundwork for a broader coalition committed to fairer financing systems.

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

    – ref. Rating agencies don’t treat the Global South fairly: changes South Africa should champion in G20 hot seat – https://theconversation.com/rating-agencies-dont-treat-the-global-south-fairly-changes-south-africa-should-champion-in-g20-hot-seat-254735

    MIL OSI – Global Reports –

  • MIL-OSI Africa: Rating agencies don’t treat the Global South fairly: changes South Africa should champion in G20 hot seat

    Source: The Conversation – Africa – By Daniel Cash, Reader in Law, Aston University

    Credit rating agencies like S&P Global and Fitch have an outsized influence on the economic fortunes of developing countries. Their assessments shape investor perceptions, influence borrowing costs, and ultimately shape a country’s development path. With many African countries now issuing bonds in global markets amid falling levels of official development assistance (ODA), their role is coming under increasing scrutiny.

    The major credit rating agencies exist to opine on the likelihood that a debtor (say, a country) will repay their creditors on time and in full. They are rated on a sliding scale. Whenever a rating agency believes that a debtor will not meet their obligations, they are obliged to put that debtor into a ‘default’ rating. This means that the debtor can no longer access private financing.

    Read more: African countries can’t resolve their debt crisis under a system rigged against them

    The negative role of rating agencies has been felt in other ways too. For example, threats of downgrades have also led to developing countries steering away from seeking debt relief under a recently introduced G20-initiated debt treatment programme. The reason is that getting help would mean that sovereign debtors have to restructure their debts. But credit rating agencies have warned that doing this will likely lead countries being given a ‘default’ rating.

    As a result, no rated country has applied for debt relief through the G20. This has been called a ‘credit rating impasse’.

    Change needs to happen on two fronts: the building of credit rating capability in the Global South, combined with shoring up capacity in countries in an effort to rebalance existing relationships with rating agencies.

    Read more: Rating agencies and Africa: the absence of people on the ground contributes to bias against the continent – analyst

    As a researcher who has looked closely at the working of rating agencies, I would argue that South Africa’s 2024–25 G20 Presidency presents a rare opportunity to push for more equitable reforms. It also provides a platform to spotlight African-led initiatives that are already making progress.

    The aim is not to ensure every country receives a top-tier credit rating. Rather, it is to ensure that all countries have the capacity, knowledge, and tools to engage in the rating process on fair terms.

    Alternatives

    Among the boldest reform efforts so far is the establishment of the African Credit Rating Agency spearheaded by the African Union. The agency aims to deliver fairer, more contextually grounded credit assessments of African sovereigns.

    Structured as a specialised agency owned by AU member states and funded through a mix of regional support and service revenue, the agency is a tangible step toward rating independence. Naturally, there are challenges. These include legitimacy, credibility with global investors, generating the necessary capital to appropriately invest in research and credit analysis, and blowback if and when it will have to downgrade.

    Its creation is rooted in dissatisfaction with the big three agencies. But it’s also inspired by parallel developments in other regions, such as China’s own domestic rating ecosystem.

    Though still in development, the proposed African agency represents the most advanced reform effort in the credit rating space from a Global South perspective.

    But building this institutional capacity is only one piece of a larger puzzle. For many countries, support is urgently needed to engage more effectively with the existing system.

    Expertise mismatch

    The lag in expertise and experience on the part of countries in the global south is understandable: sovereign debt trading has been around since the 19th Century. The first Eurobond was issued in 1963. In contrast, many African nations only began issuing Eurobonds in the late 1990s, with Tunisia being the first in 1997.

    At present, that expertise is often provided by ‘credit rating advisory’ teams embedded within the Investment Banks arranging a country’s bond sale – typically offered at no cost. There is a valid perception that this advice is not independent.

    One way to close the gap is through independent credit rating-related capacity building. Done well, it can empower developing countries to engage with credit rating agencies on a more equal footing, improve the quality of credit interactions, and make informed decisions in a market that often prioritises investor interests over national development goals.

    A few initiatives are well underway.

    The African Union’s Africa Peer Review Mechanism , in partnership with the United Nations Economic Commission for Africa, has been offering tailored, hands-on support. This includes technical workshops, advocacy against problematic ratings, and the publication of the ‘Africa Sovereign Credit Rating Review’, a regular report that helps member states track trends and identify areas for improvement.

    Building on this, the UNDP Africa and AfriCatalyst recently launched the ‘Credit Ratings Initiative’. This includes an innovative web platform, a panel of former rating analysts known as the ‘Concilium’, and a community of practice to share knowledge.

    Early pilots with East African countries have already made an impact, showing how independent, neutral advice can boost sovereigns’ technical understanding and strategic engagement with rating agencies.

    All parties are actively collaborating to share best practice at key global events. This momentum is a promising sign of broader change.

    These efforts underscore an important lesson: while long-term reform is crucial, short-term, practical tools can have an immediate and meaningful effect.

    Quest for a fairer financing systems

    South Africa currently holds the G20 Presidency. The government has adopted the idea of a ‘Cost of Capital Commission’ to examine how financing conditions affect developing nations. One of its aims is to review credit rating methodologies and promote transparency and data efficiency.

    Read more: The G20: how it works, why it matters and what would be lost if it failed

    This is a promising start. But there is room to go further. South Africa could use its leadership role to champion the establishment of a global credit rating capacity building initiative. Such a move would align with its development priorities, position Africa as a leader in financial reform, and create a blueprint for global action.

    Crucially, this would not be just another technical fix. It would be a shift in the power dynamics of global finance – from crisis response to structural empowerment. As the U.S. prepares to take over the G20 Presidency next, South Africa’s advocacy could lay the groundwork for a broader coalition committed to fairer financing systems.

    – Rating agencies don’t treat the Global South fairly: changes South Africa should champion in G20 hot seat
    – https://theconversation.com/rating-agencies-dont-treat-the-global-south-fairly-changes-south-africa-should-champion-in-g20-hot-seat-254735

    MIL OSI Africa –

  • MIL-OSI Global: Canada’s federal election must grapple with the limits of neoliberal economics

    Source: The Conversation – Canada – By Daniel Horen Greenford, Lecturer and postdoctoral researcher in Ecological Economics and Climate Policy, Department of Geography, Planning and Environment, Concordia University

    With a federal election on the horizon, economic policy is once again taking centre stage. Yet missing from the national debate is a serious reckoning with the failures of neoliberalism and the urgent need for alternatives.

    A continued adherence to neoliberal policy, and the fiscal austerity it entails, risks deepening social divides and strengthening the electoral prospects of the far right (absent a compelling populist left). To meet today’s challenges, parties must explore more progressive schools of economic thought like modern monetary theory.

    Liberal Leader Mark Carney, with his experience across banking and global finance, is one figure who could potentially steer that shift. Carney’s career, spanning Morgan Stanley, the Bank of Canada, the Bank of England and Brookfield Asset Management, has exemplified his competence within the bounds of economic orthodoxy.

    As the Bank of Canada’s governor, Carney pre-emptively cut interest rates to cushion the blow of the 2008 financial crisis. Standard measures like interest rate cuts and quantitative easing are meant to keep economies afloat during downturns. While necessary, these steps remained squarely within the bounds of conventional economic thinking.

    Today, however, those old tricks aren’t enough. The twin crises of climate collapse and socioeconomic inequality demand bolder policy and braver leadership from policymakers.

    The case for modern monetary theory

    Modern monetary theory (MMT) offers a more ambitious economic toolkit to policymakers than current approaches do.

    MMT scholars argue that countries that issue their own currency, like Canada, have monetary sovereignty. These governments don’t need to rely on bond markets for funding; instead, they can create money directly through public spending. And, when they do sell debt, there’s never a shortage of demand for it.



    Read more:
    Explainer: what is modern monetary theory?

    From this perspective, the real constraint isn’t money, but productive capacity: materials, energy and labour. Public debt is neither inherently dangerous, nor is it “owed” to anyone.

    MMT also argues the “tax and spend” perspective is backwards — taxes are not needed to fund public spending. In its view, governments spend first, then tax to remove money from circulation to keep inflation under control.

    Inflation risk stems not from government spending, but from economic over-demand or supply constraints. During periods of low growth, spending is not just safe — it’s essential, as we saw during the COVID-19 pandemic.

    Inflation during the pandemic was driven predominantly by supply chain disruptions and gas price spikes, not overspending. Strategic taxation can be used to curb demand and reduce inequality when inflation emerges.

    MMT’s job guarantee

    The hallmark policy of MMT is a job guarantee — a public option for employment that would employ anyone wanting to work. This would effectively end structural unemployment while improving conditions for those employed in the private sector through competition.

    Such an initiative would help unlock productivity needed to revitalize and decarbonize housing, transport, energy and other critical infrastructure.

    Yet instead of embracing such ideas, centrist parties like the Canadian Liberal Party and United Kingdom’s Labour Party cling to outdated concerns over “fiscal responsibility,” echoing debates that have been outdated since the end of the gold standard in the 1970s.

    The cost of playing it safe

    Carney appears to have retreated into political caution and has avoided challenging fiscal conservatism in any substantive way. Immediately upon taking office, he capitulated to misleading narratives promoted by politicians like Conservative Leader Pierre Poilievre, and cut the consumer carbon price.

    Carney also is cancelling a proposed hike to the amount of capital gains subject to tax to avoid penalizing Canada’s “builders.” But who are the real “builders”? Not hedge fund managers, but the workers who actually produce goods and services.

    According to the government’s own analysis, only the top 0.13 per cent of Canadians stood to lose from a modest increase in the inclusion rate for taxing unearned income.

    Like Poilievre, Carney has expressed support for new oil and gas projects, including pipelines — despite the scientific consensus that any new fossil fuel infrastructure is incompatible with avoiding climate catastrophe. Poilievre and Carney’s positions contradict the urgent need for a rapid energy transition — which begins with no new fossil fuel projects.



    Read more:
    Canada needs to set its businesses up for success in the clean energy transition

    During the Liberal leadership race, Carney advocated for using public investment to attract private capital during a CBC News interview. Sidestepping a direct answer about whether he’d balance the overall budget, he instead committed to balancing “operational spending.” When pressed, he said he would run deficits when necessary to “invest [in] and grow Canada’s economy.”

    Carney’s approach frames public spending as a way to mobilize private capital, rather than as a driver of public-led economic transformation. True to his background, his language casts the government as a shrewd investor, not a driver of structural change.

    Carney also framed public investment as “borrowing,” which MMT clarifies is a misnomer: unlike a household or a business, a currency-issuing government doesn’t need to borrow in the traditional sense and faces no risk of running out of its own currency.

    A bolder path forward is needed

    Canada needs more than cautious tweaks to the status quo. A climate jobs program, like a Youth Climate Corps, could guarantee well-paid, meaningful work in communities across the country for anyone ready to contribute. Public opinion is already there: more than half of Canadians support a climate corps.

    Public-sector competition in industries like housing and renewable energy could keep private firms efficient and accountable. During World War II, engineer and businessman C.D. Howe became Minister of the Department of Munitions and Supply and oversaw the creation of 28 Crown corporations that drove wartime production.

    That same spirit of pragmatic, state-led investment could help address the ongoing climate and economic crises, instead of being used to buy more pipelines.



    Read more:
    Canada’s federal election doesn’t seem like it’s about climate change, but it actually is

    Towards more affordable housing

    Canada already has a Crown corporation mandated to support affordable housing: the Canada Mortgage and Housing Corporation. This agency could be expanded to not only finance, but also tender contracts and build housing. It could be a federal landlord, with long-term goals of community management and ownership.

    The more affordable units kept out of an increasingly profit-driven market, the more accessible housing will be. This would stabilize the market and provide a floor (and roof) for affordability.

    Some MMT scholars and social movements have even called for a homes guarantee — a federally-funded program to guarantee a place to live for anyone squeezed out of the housing market.

    Critics might say bold investment is politically infeasible. But is it? Or could one of Canada’s federal parties champion policies that inspire instead of capitulate? Traditionally, the NDP would pick up this mantle, but they ceded their place as the progressive vanguard after former NDP Leader Tom Mulcair promised to balance the budget in 2015.

    The real risk isn’t ambitious reform, but relying on outdated tricks in a world that demands new solutions.

    Daniel Horen Greenford receives funding from the Social Sciences and Humanities Research Council.

    – ref. Canada’s federal election must grapple with the limits of neoliberal economics – https://theconversation.com/canadas-federal-election-must-grapple-with-the-limits-of-neoliberal-economics-254364

    MIL OSI – Global Reports –

  • MIL-OSI USA: Hickenlooper, Coons, Cornyn, Young Introduce Bipartisan Bill to Improve Mapping, Safe Extraction of Critical Minerals

    US Senate News:

    Source: United States Senator John Hickenlooper – Colorado
    WASHINGTON – U.S. Senators John Hickenlooper, Chris Coons, John Cornyn, and Todd Young introduced the bipartisan Finding Opportunities for Resource Exploration (Finding ORE) Act to strengthen U.S. mineral security and reduce strategic vulnerabilities. The bill leverages the U.S. Geological Survey’s (USGS) mapping of critical mineral reserves to help responsibly develop global mineral resources around the world.
    “We can’t solve climate change or strengthen national security without harnessing the power of critical minerals,” said Hickenlooper. “Better and more accurate maps will help us and our allies safely and ethically explore untapped critical mineral deposits.”
    “From the technology that powers the cell phones in our pockets to the systems that keep us safe, Americans depend on critical minerals for our economic strength and national security,” said Coons. “The Finding ORE Act makes sure that our nation will have access to the essential materials we need to keep innovating, growing our economy, and deterring our enemies. I’m grateful for the bipartisan and industry support this bill has received and look forward to pushing for its enactment.”
    “Access to a reliable supply chain of critical minerals is essential to meet our nation’s defense, manufacturing, and energy needs,” said Cornyn. “By shoring up alliances with trusted allies and promoting geological mapping of critical mineral reserves, this legislation would ensure America has the resources needed to keep up with global demand and bolster both our mineral security and national security in the years ahead.”
    “Many countries are unmapped or reliant on outdated geological surveys. Our bill would create opportunities for collaboration between the United States and these countries to update geological mapping with the goal of locating critical mineral deposits. These partnerships would be mutually beneficial and provide the United States access to more critical minerals, reducing our dependence on China,” said Young.
    The Finding ORE Act would authorize the Director of USGS to enter into memoranda of understanding (MOU) with foreign partner countries related to mapping of critical minerals. The bill identifies four objectives for these MOU:
    Committing USGS to assist the partner country with a range of critical mineral mapping activities
    Committing the partner country to offer a right of first refusal to private companies based in the United States or an allied country in the further development of mapped critical minerals
    Facilitating investment in the development of critical minerals in the partner country, including by leveraging financing from the U.S. Development Finance Corporation and Export-Import Bank
    Ensuring that mapping data created through partnership with USGS is not disclosed to governmental or private entities in non-allied countries
    The bill requires USGS to collaborate with both the State Department and the private sector in identifying which countries to prioritize for negotiation of an MOU and would involve the State Department in the negotiation and implementation process.
    “Colorado School of Mines commends Senators Coons, Young, Hickenlooper, and Cornyn and Reps. Wittman and Castor for their bipartisan efforts to leverage U.S. expertise in mineral mapping to support safe, secure, and responsible mineral supply chains,” said Dr. John Bradford, Vice President for Global Initiatives at Colorado School of Mines. “When called upon to contribute, institutions with strong partnerships with USGS, like Colorado School of Mines, seek to support America’s government and industry partners to advance the technology, knowledge, and workforce required to responsibly identify, assess, and produce mineral resources in the U.S. and around the world.”
    “The United States has too often watched from the sidelines as our adversaries explored, invested in, and secured the world’s most promising mineral deposits,” said Abigail Hunter, Executive Director of SAFE’s Center for Critical Minerals Strategy. “This bill changes that. It positions the United States—our geological experts and industry—to help identify and potentially develop the next generation of great deposits. It ensures we show up in resource-rich nations, rather than leaving them to deepen their ties with China.”
    “The American Critical Minerals Association welcomes the bipartisan, bicameral introduction of the Finding ORE Act by Senators Coons, Young, Hickenlooper, and Cornyn and Representatives Wittman and Castor,” said Sarah Venuto, Executive Director of ACMA. “Expanding our knowledge base of global minerals resources and growing partnerships with our allies will ensure the United States is a leading force in resourcing critical minerals in a responsible way. ACMA looks forward to working with Senator Coons and his colleagues to advance the Finding ORE Act.”
    “BPC Action applauds the bipartisan introduction of the Finding ORE Act. The bill will strengthen U.S. supply chain security by enhancing coordination with allies on critical mineral development, helping secure new critical minerals sources free from adversary control,” said Michele Stockwell, president of Bipartisan Policy Center Action (BPC Action).
    “Terra AI celebrates this forward-thinking, bi-partisan critical minerals exploration legislation introduced by Senators Coons, Young, Hickenlooper, and Cornyn and Reps. Wittman and Castor,” said John Mern, CEO of Terra AI. “The Finding ORE Act would empower America’s agencies and private firms to explore and claim the next major deposits of critical minerals which will supply our industries for decades to come; supporting manufacturing, aerospace, energy, and artificial intelligence. We support this act’s unique approach to winning the critical minerals race by leveraging America and Her Allies’ relative advantages — strong diplomatic relations, world-leading technology, and entrepreneurial spirit. This act is the essential early stage first step to establishing US global mineral dominance and winning this generational opportunity. As a mineral exploration AI company, we see huge value in collaboration between the private sector and our nation’s diplomatic, geologic and financial agencies abroad. It is a winning playbook, and we look forward to seeing more legislation in this area.”
    A companion bill is led by Representatives Rob Wittman and Kathy Castor in the U.S. House of Representatives.
    In the 119th Congress, Hickenlooper has led and co-sponsored multiple other critical minerals related legislation, including:
    The bipartisan STRATEGIC Minerals Act to foster critical minerals trade with our international allies, led by Senator Young.
    His bipartisan Unearth Innovation Act to establish a DOE program for sustainable critical mineral research innovation and recycling.
    His bipartisan Critical Materials Future Act to establish a pilot program for the Department of Energy to financially support domestic critical material processing projects.
    The bipartisan Critical Minerals Security Act to help secure U.S. critical mineral supply chains and counter China’s dominance in the industry.
    A one-pager on the bill is available HERE.
    The full text of the bill is available HERE.

    MIL OSI USA News –

  • MIL-OSI Economics: Amendments to Liquidity Coverage Ratio (LCR) Framework

    Source: Reserve Bank of India

    The Reserve Bank issued a draft circular on July 25, 2024 on ‘Basel III Framework on Liquidity Standards – Liquidity Coverage Ratio (LCR) – Review of Haircuts on High Quality Liquid Assets (HQLA) and Run-off Rates on Certain Categories of Deposits’. The draft circular proposed certain amendments to the LCR framework and invited comments from banks and stakeholders.

    2. The feedback received has been carefully examined and the final guidelines have been issued by the Reserve Bank today. With the issuance of these guidelines, a bank shall:

    • assign additional run-off rates of 2.5 per cent to internet and mobile banking enabled retail and small business customer deposits.

    • adjust the market value of Government Securities (Level 1 HQLA) with haircuts in line with margin requirements under the Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF).

    3. In addition, the final guidelines also rationalise the composition of wholesale funding from ‘other legal entities’. Consequently, funding from non-financial entities like trusts (educational, charitable and religious), partnerships, LLPs, etc. shall attract a lower run-off rate of 40 per cent as against 100 per cent currently.

    4. The Reserve Bank has undertaken an impact analysis of the above measures based on data submitted by banks, as on December 31, 2024. It is estimated that the net impact of these measures will improve the LCR of banks, at the aggregate level, by around 6 percentage points as on that date. Further, all the banks would continue to meet the minimum regulatory LCR requirements comfortably. Reserve Bank is sanguine that these measures will enhance the liquidity resilience of banks in India, and further align the guidelines with the global standards in a non-disruptive manner.

    5. To give the banks adequate time to transition their systems to the new standards for LCR computation, the revised instructions shall become applicable w.e.f. April 01, 2026.

    (Puneet Pancholy)  
    Chief General Manager

    Press Release: 2025-2026/145

    MIL OSI Economics –

  • MIL-OSI Banking: Opening of and operation in deposit accounts of minors

    Source: Reserve Bank of India

    RBI/2025-26/26
    DOR.MCS.REC.17/01.01.003/2025-26

    April 21, 2025

    All Commercial Banks
    All Primary (Urban) Co-operative Banks
    All State Co-operative Banks and District Central Co-operative Banks

    Madam/ Dear Sir,

    Opening of and operation in deposit accounts of minors

    Reserve Bank of India has issued guidelines in the past to banks on opening of and operations in the deposit accounts of minors. A review of the existing guidelines has been made with a view to rationalise and harmonise the extant guidelines.

    2. Based on the review, the revised instructions on opening and operation in the deposit accounts of minors are given below:

    1. Minors of any age may be allowed to open and operate savings and term deposit accounts through his/ her natural or legal guardian. They may also be allowed to open such accounts with mother as guardian in terms of RBI’s Circular DBOD.Leg.BC.158/C.90(H)-76 dated December 29, 1976.

    2. Minors above such an age limit not less than 10 years and up to such amount and such terms as may be fixed by the banks keeping in view their risk management policy, may be allowed to open and operate savings/ term deposit accounts independently, if they so desire, and such terms shall be duly conveyed to the account holder.

    3. On attaining the age of majority, fresh operating instructions and specimen signature of the account holder shall be obtained and kept on record. Moreover, if the account is operated by the guardian, the balance shall be got confirmed. The banks shall take advance action, including communicating these requirements to minor account holders attaining the age of majority, to ensure fulfilment of these requirements.

    4. The banks are free to offer additional banking facilities like internet banking, ATM/ debit cards, cheque book facility, etc., to the minor account holders basis their risk management policy, product suitability and customer appropriateness.

    5. The banks shall ensure that accounts of minors, whether operated independently or through a guardian, are not allowed to be overdrawn and that these always remain in credit balance.

    6. The banks shall perform customer due diligence for opening of deposit accounts of minors and undertake ongoing due diligence, as per the provisions of Master Direction on Know Your Customer (KYC) Direction, 2016 dated February 25, 2016, as amended from time to time.

    3. The above guidelines are issued under sections 35A and 56 of the Banking Regulation Act, 1949. Banks are advised to make new and/ or amend existing policies to align them with these guidelines, latest by July 01, 2025. In the meanwhile, existing policies may continue.

    4. The circulars tabulated in the Annex shall stand repealed from the effective date of this circular.

    Yours faithfully

    (Veena Srivastava)
    Chief General Manager

    Annex

    List of guidelines issued on minor deposit accounts

    Sl. No. Circular Date Title of the circular
    1 RPCD.No.RF.DIR.BC.32/D.1-85 January 08, 1985 Opening of Bank Account in the Name of Minor with Mother as Guardian
    2 UBD.(DC)1148/V.1-84/85 February 22, 1985 Opening of a Bank Account in the Name of Minor with Mother as Guardian
    3 DBOD.No.Leg.BC.19/C.90(H)-89 September 08, 1989 Opening of Bank Accounts in the Names of Minors with Mothers as Guardians
    4 DBOD.No.Leg.BC.28/C.90(H)-89 October 06, 1989 Opening of Bank Accounts in the Names of Minors with Mothers as Guardians
    5 UBD.DC.1/V.1-89/90 January 02, 1990 Opening of Bank Accounts in the Names of Minors with Mothers as Guardians
    6 DBOD.No.Leg.BC.108/09.07.005/2013-14 May 06, 2014 Opening of Bank Accounts in the Names of Minors
    7 UBD.BPD.(PCB).Cir.No.61/13.01.000/2013-14 May 12, 2014 Opening of Bank Accounts in the Names of Minors
    8 RPCD.CO.RRB.BC.No.100/03.05.33/2013-14 May 12, 2014 Paragraph 4.10 (Opening accounts in the name of minors with Mothers as guardians) of Annex to the circular on ‘Customer Service in Regional Rural Banks’
    9 RPCD.CO.RRB.BC.No.104/03.05.33/2013-14 May 27, 2014 Opening of Bank Accounts in the Names of Minors
    10 RPCD.CO.RCB.BC.No.29/07.51.010/2014-15 September 09, 2014 Opening of Bank Accounts in the Names of Minors

    DBOD.No.Leg.BC.158/C.90(H)-76

    December 29, 1976

    All Commercial Banks

    Dear Sirs,

    Opening of Bank Accounts in the Names
    of Minors with Mothers as Guardians

    It has been brought to our notice that considerable difficulty is being experienced by women customers in opening bank accounts in the names of minors, with mothers as their guardians. Presumably, the banks are reluctant to accept the mother as a guardian of a minor, while father is alive in view of section 6 of the Hindu Minority and Guardianship Act, 1956, which stipulates that the father alone should be deemed to be the guardian in such case. To overcome this legal difficulty and to enable the banks to open freely such accounts in the name of minors under the guardianship of their mothers, it has been suggested in some quarters that the above provisions should be suitably amended. While it is true that an amendment of the above Act may overcome the difficulty in the case of Hindus, it will not solve the problem for other communities as minors belonging to Muslim, Christian, Parsi Communities would still be left out unless the laws governing these communities are also likewise amended.

    2. The legal and practical aspects of the above problem were, therefore, examined by us in consultation with the Government of India and we are advised that if the idea underlining the demand for allowing mothers to be treated as guardians relates only to the opening of fixed and savings bank accounts, there would seem to be no difficulty in meeting the requirements as, notwithstanding the legal provisions, such accounts could be opened by banks provided they take adequate safeguards in allowing operations in the accounts by ensuring that the minors’ accounts opened with mothers as guardians are not allowed to be overdrawn and that they always remain in credit. In this way, the minors’ capacity to enter into contract would not be a subject matter of dispute. If this precaution is taken, the banks’ interests would be adequately protected. We shall therefore, be glad if you will kindly apprise all your branches of the position as stated above and instruct them to allow minors’ accounts (fixed and savings only) with mothers as guardians to be opened, whenever such requests are received by them, subject to the safeguards mentioned above.

    Yours faithfully,

    P.R. Kulkarni
    Dy. Chief Officer

    MIL OSI Global Banks –

  • MIL-OSI: Private Bancorp of America, Inc. Announces Strong Net Income and Earnings Per Share for First Quarter 2025

    Source: GlobeNewswire (MIL-OSI)

    First Quarter 2025 Highlights

    • Net income for the first quarter of 2025 was $10.6 million, compared to $10.7 million in the prior quarter and $7.9 million in the first quarter of 2024. Net income for the first quarter of 2025 represents a return on average assets of 1.74% and a return on average tangible common equity of 18.74%
    • Diluted earnings per share for the first quarter of 2025 was $1.80, compared to $1.82 in the prior quarter and $1.36 in the first quarter of 2024
    • Total deposits were $2.19 billion as of March 31, 2025, an increase of $57.7 million or 2.7% from December 31, 2024, which included a reduction in brokered deposits of $96.9 million. Total deposits increased 15.1% year over year. Core deposits were $2.05 billion as of March 31, 2025, an increase of $154.6 million or 8.2% from December 31, 2024. Core deposits increased 27.5% year over year
    • Total cost of deposits was 2.22% for the first quarter of 2025, a decrease from 2.36% in the prior quarter and 2.61% in the first quarter of 2024. The spot rate for total deposits was 2.11% as of March 31, 2025, compared to 2.29% at December 31, 2024. Total cost of funding sources was 2.29% for the first quarter of 2025, a decrease from 2.45% in the prior quarter and 2.70% in the first quarter of 2024
    • Loans held-for-investment (“HFI”) totaled $2.08 billion as of March 31, 2025, a decrease of $6.5 million or 0.3% from December 31, 2024. Loans HFI increased 9.0% year over year
    • Net interest margin was 4.61% for the first quarter of 2025, compared to 4.67% in the prior quarter and 4.31% in the first quarter of 2024
    • Provision for credit losses for the first quarter of 2025 was $0.3 million, compared to $17 thousand for the prior quarter and $0.2 million for the first quarter of 2024. The allowance for loan losses was 1.27% of loans HFI as of March 31, 2025 compared to 1.31% at December 31, 2024
    • As of March 31, 2025, criticized and classified loans totaled $40.8 million, or 1.96% of total loans, up from $24.7 million, or 1.18% of total loans, in the prior quarter
    • Tangible book value per share was $40.29 as of March 31, 2025, an increase of $1.89 since December 31, 2024 primarily as a result of strong earnings. Tangible book value per share increased 4.9% quarter-over-quarter and 20.1% year over year.

    LA JOLLA, Calif., April 21, 2025 (GLOBE NEWSWIRE) — Private Bancorp of America, Inc. (OTCQX: PBAM), (“Company”) and CalPrivate Bank (“Bank”) announced unaudited financial results for the first fiscal quarter ended March 31, 2025. The Company reported net income of $10.6 million, or $1.80 per diluted share, for the first quarter of 2025, compared to $10.7 million, or $1.82 per diluted share, in the prior quarter, and $7.9 million, or $1.36 per diluted share, in the first quarter of 2024.

    Rick Sowers, President and CEO of the Company and the Bank stated, “We continue to be pleased by the Company and the Team’s performance. Strong growth in core deposits over the past year continues and we remain focused on building strong Relationships with our Clients. Loan demand was soft in Q1, as Clients and financial markets digest the current economy and prospects for future growth and stability. We remain optimistic that markets will settle, and demand will return. In the meantime, we are focused on providing the Distinctively Different Service our Clients and Prospects are seeking, getting more efficient and effective in our business through technology, continuous process improvement and building a strong Team throughout the Bank.”

    Sowers added, “The Bank was recognized throughout the last year for superior financial performance and industry leading service metrics. These recognitions highlight CalPrivate Bank’s dedication to excellence, innovation, delivering Client-focused banking solutions and enhancing shareholder value: 

    • #1 for both Return on Assets (ROA) and Return on Equity (ROE) among banks with less than $5 billion in assets
    • #1 SBA 504 Community Bank Lender in the United States
    • #10 Best U.S. Bank by Bank Director’s RankingBanking®
    • Client Net Promoter Score of 81 (World Class)
    • Bauer 5 Star Rating
    • 2025 Best 50 OTCQX

    “As Los Angeles continues to tackle the enormous task of cleaning up after the devastating fires, CalPrivate Bank remains committed to being a partner to our Clients and the Communities we serve.”

    “As our economy transitions based on priorities of the new administration in Washington DC, and global economic uncertainties increase, management and the board are diligently assessing and acting upon potential future risks and market opportunities. The Bank continues to produce top tier financial results by seeking improved productivity through technology investments, streamlined systems and processes, and hiring top bankers in existing and potential new markets and market segments. We continue to prioritize unparalleled Client service and creative Solutions for our loyal and growing client base. We continue to support a broad range of non-profit organizations in the communities we serve, both through team member volunteering activities and financial resources. Our Team takes great pride in doing well for shareholders by doing good for clients and community,” said Selwyn Isakow, Chairman of the Board of the Company and the Bank.

    STATEMENT OF INCOME

    Net Interest Income

    Net interest income for the first quarter of 2025 totaled $27.7 million, an increase of $0.3 million or 1.2% from the prior quarter and an increase of $5.0 million or 21.8% from the first quarter of 2024. The increase from the prior quarter was due to a $0.5 million decrease in interest expense, resulting from a 22 basis point reduction in the cost of interest-bearing liabilities, primarily driven by a 14 basis point decrease in the cost of total deposits.

    Net Interest Margin

    Net interest margin for the first quarter of 2025 was 4.61%, compared to 4.67% for the prior quarter and 4.31% in the first quarter of 2024. The 6 basis point decrease in net interest margin from the prior quarter was primarily due to lower yields on interest-earning assets and a decrease in prepayment-penalty fees. The yield on interest-earning assets was 6.70% for the first quarter of 2025 compared to 6.89% for the prior quarter, and the cost of interest-bearing liabilities was 3.14% for the first quarter of 2025 compared to 3.36% in the prior quarter. The cost of total deposits was 2.22% for the first quarter of 2025 compared to 2.36% in the prior quarter. The cost of core deposits, which excludes brokered deposits, was 1.99% in the first quarter of 2025 compared to 2.07% in the prior quarter. The spot rate for total deposits was 2.11% as of March 31, 2025, compared to 2.29% at December 31, 2024.

    Provision for Credit Losses

    Provision expense for credit losses for the first quarter of 2025 was $0.3 million, compared to $17 thousand in the prior quarter and $0.2 million in the first quarter of 2024. The provision expense for loans HFI for the first quarter of 2025 was $0.5 million, primarily reflecting heightened macroeconomic uncertainty incorporated into our forecasts. This was offset by a $0.2 million reversal for unfunded commitments due to increased line of credit utilization that resulted in lower unfunded commitment balances. For more details, please refer to the “Asset Quality” section below.

    Noninterest Income

    Noninterest income was $1.6 million for the first quarter of 2025, compared to $1.9 million in the prior quarter and $1.4 million in the first quarter of 2024. SBA loan sales for the first quarter of 2025 were $8.3 million with a 10.86% average trade premium resulting in a net gain on sale of $469 thousand, compared with $14.9 million with a 11.45% average trade premium resulting in a net gain on sale of $932 thousand in the prior quarter.

    Noninterest Expense

    Noninterest expense was $14.1 million for the first quarter of 2025, compared to $14.2 million in the prior quarter and $12.8 million in the first quarter of 2024. The efficiency ratio was 47.90% for the first quarter of 2025 compared to 48.34% in the prior quarter and 52.84% in the first quarter of 2024. The slight decrease in the efficiency ratio from the prior quarter was due to the decrease in noninterest expense.

    The Company remains committed to making investments in the business, including technology, marketing, and staffing. Inflationary pressures and low unemployment continue to have an impact on rising wages as well as increased costs related to third party service providers, which we proactively monitor and manage.

    Provision for Income Tax Expense

    Provision for income tax expense was $4.4 million for the first quarter of 2025, compared to $4.5 million for the prior quarter. The effective tax rate for the first quarter of 2025 was 29.5%, compared to 29.6% in the prior quarter and 29.5% in the first quarter of 2024.

    STATEMENT OF FINANCIAL CONDITION

    As of March 31, 2025, total assets were $2.48 billion, an increase of $58.9 million since December 31, 2024. The increase in assets from the prior quarter was primarily due to higher cash and due from banks and investment securities, partially offset by lower loans receivable. Our total cash and due from banks increased to $218.5 million as of March 31, 2025, an increase of $54.6 million or 33.3% since December 31, 2024, primarily due to strong growth in core deposits along with lower loan demand. Investment securities available-for-sale (“AFS”) were $156.3 million as of March 31, 2025, an increase of $11.1 million or 7.6% since December 31, 2024, primarily as a result of new securities purchased. As of March 31, 2025, the net unrealized loss on the AFS investment securities portfolio, which is comprised mostly of US Treasury and Government Agency debt, was $10.1 million (pre-tax) compared to a loss of $12.1 million (pre-tax) as of December 31, 2024. The average duration of the Bank’s AFS portfolio is 3.8 years. The Company has no held-to-maturity securities. Loans HFI totaled $2.08 billion as of March 31, 2025, a decrease of $6.5 million or 0.3% since December 31, 2024, reflecting lower loan production as borrowers deferred new financings amid economic and interest-rate uncertainty as well as wildfire-related disruptions in Southern California.

    Total deposits were $2.19 billion as of March 31, 2025, an increase of $57.7 million since December 31, 2024. During the quarter, core deposits increased by $154.6 million, which was driven by a $108.9 million increase in interest-bearing core deposits (including balances in the Intrafi ICS and CDARS programs) and a $45.7 million increase in noninterest-bearing core deposits. The deposit mix has continued to shift due to short-term interest rates remaining elevated compared to recent years. Noninterest-bearing deposits represent 29.2% of total core deposits. Offsetting the increase to total deposits from core deposits, brokered deposits decreased by $96.9 million. Uninsured deposits, net of collateralized and fiduciary deposit accounts, represent 50.1% of total deposits as of March 31, 2025.

    As of March 31, 2025, total available liquidity was $2.1 billion or 192.8% of uninsured deposits, net of collateralized and fiduciary deposit accounts. Total available liquidity is comprised of $366 million of on-balance sheet liquidity (cash and investment securities) and $1.8 billion of unused borrowing capacity.

    Asset Quality and Allowance for Credit Losses (“ACL”)

    As of March 31, 2025, the allowance for loan losses was $26.4 million or 1.27% of loans HFI, compared to $27.3 million or 1.31% of loans HFI as of December 31, 2024. The decrease in the coverage ratio from December 31, 2024 is due primarily to a $1.1 million partial charge-off of a nonaccrual loan that previously had a specific reserve of $2.0 million. The Company continues to have strong credit metrics and its nonperforming assets are 0.63% of total assets as of March 31, 2025 compared to 0.47% as of December 31, 2024. The reserve for unfunded commitments was $1.3 million as of March 31, 2025, compared to $1.5 million as of December 31, 2024. The decrease in the reserve for unfunded commitments was due to lower unfunded commitment balances (driven by higher credit line usage). Given the credit quality of the loan portfolio, management believes we are sufficiently reserved.

    At March 31, 2025 and December 31, 2024, there were no doubtful credits and classified assets were $27.8 million and $14.9 million, respectively. Total classified assets consisted of 20 loans as of March 31, 2025, which included 17 loans totaling $24.7 million secured by real estate with a weighted average LTV of 52.7%, of which 11 loans totaling $16.4 million had SBA guarantees. The remaining three loans were $3.1 million of commercial and industrial loans, one of which was an unsecured loan on nonaccrual status with a carrying value of $1.5 million and a specific reserve of $1.0 million (net of a $1.1 million partial charge off).

    The Bank’s loan portfolio does include assets that are in the affected areas of Los Angeles devastated by wildfires. However, based on assessments performed to date, management does not believe there is a material impact to the financial statements.

    Capital Ratios (2)

    The Bank’s capital ratios were in excess of the levels established for “well capitalized” institutions and are as follows:

      March 31, 2025(2) December 31, 2024
    CalPrivate Bank    
    Tier I leverage ratio 10.35% 10.39%
    Tier I risk-based capital ratio 11.75% 11.29%
    Total risk-based capital ratio 13.00% 12.54%

    (2) March 31, 2025 capital ratios are preliminary and subject to change.

    About Private Bancorp of America, Inc. (OTCQX: PBAM)

    PBAM is the holding company for CalPrivate Bank, which operates offices in Coronado, San Diego, La Jolla, Newport Beach, El Segundo, and Beverly Hills, as well as through efficient digital banking services. CalPrivate Bank is driven by its core values of building client Relationships based on superior funding Solutions, unparalleled Service, and mutual Trust. The Bank caters to high-net-worth individuals, professionals, closely-held businesses, and real estate entrepreneurs, delivering a Distinctly Different™ personalized banking experience while leveraging cutting-edge technology to enhance our clients’ evolving needs. CalPrivate Bank is in the top tier of customer service survey ratings in the nation, scoring almost 3x higher than the median domestic bank. The Bank offers comprehensive deposit and treasury services, rapid and creative loan options including various portfolio and government-guaranteed lending programs,  cross border banking, and innovative, unique technologies that drive enhanced  client performance. CalPrivate Bank has been recognized by Bank Director’s RankingBanking® as the 10th best bank in the country and the #1 bank in its asset class for both return on assets (ROA) and return on equity (ROE). CalPrivate Bank was also ranked in the top 5% of banks in the U.S. with assets between $2B and $10B by American Banker. Additionally, CalPrivate Bank is a Bauer Financial 5-star rated bank, an SBA Preferred Lender, and has been honored as Community Bank 504 Lender of the Year by the NADCO Community Impact Awards, exemplifying excellence in the banking industry. These prestigious rankings highlight the Bank’s commitment to delivering exceptional banking services and setting new industry standards.

    CalPrivate Bank’s website is www.calprivate.bank.

    Non-GAAP Financial Measures

    This press release contains certain non-GAAP financial measures in addition to results presented in accordance with GAAP, including adjusted income before provision for income taxes, adjusted net income, adjusted diluted earnings per share (“Adjusted EPS”), efficiency ratio, adjusted efficiency ratio, pretax pre-provision net revenue, average tangible common equity, adjusted return on average assets, return on average tangible common equity and adjusted return on average tangible common equity. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s results of operations and financial condition and to enhance investors’ overall understanding of such results of operations and financial condition, to permit investors to effectively analyze financial trends of our business activities, and to enhance comparability with peers across the financial services sector. These non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures prepared in accordance with GAAP and should be read in conjunction with the Company’s GAAP financial information. A reconciliation of the most comparable GAAP financial measures to non-GAAP financial measures is included in the accompanying financial tables.

    Investor Relations Contacts

    Rick Sowers
    President and Chief Executive Officer
    Private Bancorp of America, Inc., and CalPrivate Bank
    (424) 303-4894

    Cory Stewart
    Executive Vice President and Chief Financial Officer
    Private Bancorp of America, Inc., and CalPrivate Bank
    (206) 293-3669

    Safe Harbor Paragraph

    This communication contains expressions of expectations, both implied and explicit, that are “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We caution you that a number of important factors could cause actual results to differ materially from those in the forward-looking statements, especially given the current turmoil in the banking and financial markets. These factors include the effects of depositors withdrawing funds unexpectedly, counterparties being unable to provide liquidity sources that we believe should be available, loan losses, economic conditions and competition in the geographic and business areas in which Private Bancorp of America, Inc. operates, including competition in lending and deposit acquisition, the unpredictability of fee income from participation in SBA loan programs, the effects of bank failures, liquidations and mergers in our markets and nationally, our ability to successfully integrate and develop business through the addition of new personnel, whether our efforts to expand loan, product and service offerings will prove profitable, system failures and data security, whether we can effectively secure and implement new technology solutions, inflation, fluctuations in interest rates, legislation and governmental regulation. You should not place undue reliance on forward-looking statements, and we undertake no obligation to update those statements whether as a result of changes in underlying factors, new information, future events or otherwise. These factors could cause actual results to differ materially from what we anticipate or project. You should not place undue reliance on any such forward-looking statement, which speaks only as of the date on which it was made. Although we believe in good faith the assumptions and bases supporting our forward-looking statements to be reasonable, there can be no assurance that those assumptions and bases will prove accurate.

    PRIVATE BANCORP OF AMERICA, INC.
    CONSOLIDATED BALANCE SHEET
    (Unaudited)
    (Dollars in thousands)
     
        Mar 31, 2025     Dec 31, 2024     Mar 31, 2024  
    Assets                  
    Cash and due from banks   $ 34,720     $ 16,528     $ 13,136  
    Interest-bearing deposits in other financial institutions     16,155       10,419       34,790  
    Interest-bearing deposits at Federal Reserve Bank     167,606       136,929       93,575  
    Total cash and due from banks     218,481       163,876       141,501  
    Interest-bearing time deposits with other institutions     4,213       4,189       4,032  
    Investment debt securities available for sale     156,346       145,238       114,067  
    Loans held for sale     2,066       3,008       383  
    Loans, net of deferred fees and costs and unaccreted discounts     2,078,653       2,085,149       1,906,992  
    Allowance for loan losses     (26,437 )     (27,267 )     (24,693 )
    Loans held-for-investment, net of allowance     2,052,216       2,057,882       1,882,299  
    Federal Home Loan Bank stock, at cost     9,586       9,586       8,915  
    Operating lease right of use assets     6,383       6,819       2,765  
    Premises and equipment, net     2,432       2,335       1,804  
    Servicing assets, net     1,993       2,087       2,203  
    Accrued interest receivable     8,148       7,993       7,931  
    Other assets     21,009       20,998       21,877  
    Total assets   $ 2,482,873     $ 2,424,011     $ 2,187,777  
                       
    Liabilities and Shareholders’ Equity                  
    Liabilities                  
    Noninterest bearing   $ 599,095     $ 553,405     $ 516,294  
    Interest bearing     1,593,014       1,581,054       1,388,381  
    Total deposits     2,192,109       2,134,459       1,904,675  
    FHLB borrowings     16,000       28,000       53,000  
    Other borrowings     17,970       17,969       17,963  
    Accrued interest payable and other liabilities     21,559       20,049       18,107  
    Total liabilities     2,247,638       2,200,477       1,993,745  
                       
    Shareholders’ equity                  
    Common stock     76,156       75,377       74,105  
    Additional paid-in capital     3,712       4,393       4,108  
    Retained earnings     162,462       152,252       124,464  
    Accumulated other comprehensive (loss) income, net     (7,095 )     (8,488 )     (8,645 )
    Total shareholders’ equity     235,235       223,534       194,032  
    Total liabilities and shareholders’ equity   $ 2,482,873     $ 2,424,011     $ 2,187,777  
                             
    PRIVATE BANCORP OF AMERICA, INC.
    CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)
    (Dollars in thousands, except per share amounts)    		  
       
        For the three months ended  
        Mar 31, 2025     Dec 31, 2024     Mar 31, 2024  
    Interest Income                  
    Loans   $ 36,565     $ 37,259     $ 33,006  
    Investment securities     1,505       1,510       979  
    Deposits in other financial institutions     2,198       1,661       1,799  
    Total interest income     40,268       40,430       35,784  
                       
    Interest Expense                  
    Deposits     11,899       12,297       12,130  
    Borrowings     637       726       886  
    Total interest expense     12,536       13,023       13,016  
                       
    Net interest income     27,732       27,407       22,768  
    Provision for credit losses     299       17       233  
    Net interest income after provision for credit losses     27,433       27,390       22,535  
                       
    Noninterest income:                  
    Service charges on deposit accounts     557       558       388  
    Net gain on sale of loans     469       932       681  
    Other noninterest income     587       456       357  
    Total noninterest income     1,613       1,946       1,426  
                       
    Noninterest expense:                  
    Compensation and employee benefits     9,748       9,539       8,861  
    Occupancy and equipment     844       847       770  
    Data processing     1,326       1,195       1,058  
    Professional services     508       573       488  
    Other expenses     1,629       2,036       1,606  
    Total noninterest expense     14,055       14,190       12,783  
    Income before provision for income taxes     14,991       15,146       11,178  
    Provision for income taxes     4,429       4,488       3,294  
    Net income   $ 10,562     $ 10,658     $ 7,884  
    Net income available to common shareholders   $ 10,482     $ 10,573     $ 7,832  
                       
    Earnings per share                  
    Basic earnings per share   $ 1.83     $ 1.85     $ 1.38  
    Diluted earnings per share   $ 1.80     $ 1.82     $ 1.36  
                       
    Average shares outstanding     5,734,688       5,716,291       5,679,843  
    Diluted average shares outstanding     5,826,229       5,813,197       5,754,937  
    PRIVATE BANCORP OF AMERICA, INC.
    Consolidated average balance sheet, interest, yield and rates
    (Unaudited)
    (Dollars in thousands)    		  
       
        For the three months ended  
        Mar 31, 2025     Dec 31, 2024     Mar 31, 2024  
        Average
    Balance    		     Interest     Average
    Yield/Rate    		     Average
    Balance    		     Interest     Average
    Yield/Rate    		     Average
    Balance    		     Interest     Average
    Yield/Rate    		  
    Interest-Earnings Assets                                                      
    Deposits in other financial institutions   $ 202,907     $ 2,198       4.39 %   $ 143,053     $ 1,661       4.62 %   $ 135,511     $ 1,799       5.34 %
    Investment securities     157,747       1,505       3.82 %     155,768       1,510       3.88 %     119,690       979       3.27 %
    Loans, including LHFS     2,078,588       36,565       7.13 %     2,036,178       37,259       7.28 %     1,868,308       33,006       7.11 %
    Total interest-earning assets     2,439,242       40,268       6.70 %     2,334,999       40,430       6.89 %     2,123,509       35,784       6.78 %
    Noninterest-earning assets     28,536                   24,951                   25,469              
    Total Assets   $ 2,467,778                 $ 2,359,950                 $ 2,148,978              
                                                           
    Interest-Bearing Liabilities                                                      
    Interest bearing DDA, excluding brokered     244,301       970       1.61 %     178,811       634       1.41 %     109,838       441       1.61 %
    Savings & MMA, excluding brokered     955,259       6,830       2.90 %     904,191       6,991       3.08 %     765,770       6,421       3.37 %
    Time deposits, excluding brokered     196,375       1,956       4.04 %     191,794       2,004       4.16 %     155,703       1,583       4.09 %
    Total deposits, excluding brokered     1,395,935       9,756       2.83 %     1,274,796       9,629       3.00 %     1,031,311       8,445       3.29 %
    Total brokered deposits     183,059       2,143       4.75 %     218,792       2,668       4.85 %     287,885       3,685       5.15 %
    Total Interest-Bearing Deposits     1,578,994       11,899       3.06 %     1,493,588       12,297       3.28 %     1,319,196       12,130       3.70 %
                                                           
    FHLB advances     24,122       272       4.57 %     29,446       343       4.63 %     49,935       614       4.95 %
    Other borrowings     17,981       365       8.23 %     17,967       383       8.48 %     17,962       272       6.09 %
    Total Interest-Bearing Liabilities     1,621,097       12,536       3.14 %     1,541,001       13,023       3.36 %     1,387,093       13,016       3.77 %
                                                           
    Noninterest-bearing deposits     594,408                   577,462                   553,541              
    Total Funding Sources     2,215,505       12,536       2.29 %     2,118,463       13,023       2.45 %     1,940,634       13,016       2.70 %
                                                           
    Noninterest-bearing liabilities     21,542                   21,524                   18,018              
    Shareholders’ equity     230,731                   219,963                   190,326              
                                                           
    Total Liabilities and Shareholders’ Equity   $ 2,467,778                 $ 2,359,950                 $ 2,148,978              
                                                           
    Net interest income/spread         $ 27,732       4.41 %         $ 27,407       4.44 %         $ 22,768       4.08 %
    Net interest margin                 4.61 %                 4.67 %                 4.31 %
    PRIVATE BANCORP OF AMERICA, INC.
    Condensed Balance Sheets
    (Unaudited)
    (Dollars in thousands, except per share amounts)    		  
       
        Mar 31, 2025     Dec 31, 2024     Sep 30, 2024     Jun 30, 2024     Mar 31, 2024  
    Assets                              
    Cash and due from banks   $ 218,481     $ 163,876     $ 207,174     $ 158,377     $ 141,501  
    Interest-bearing time deposits with other institutions     4,213       4,189       4,124       4,097       4,032  
    Investment securities     156,346       145,238       141,100       121,725       114,067  
    Loans held for sale     2,066       3,008       2,040       –       383  
    Total loans held-for-investment     2,078,653       2,085,149       2,012,457       1,979,720       1,906,992  
    Allowance for loan losses     (26,437 )     (27,267 )     (26,594 )     (26,591 )     (24,693 )
    Loans held-for-investment, net of allowance     2,052,216       2,057,882       1,985,863       1,953,129       1,882,299  
    Operating lease right of use assets     6,383       6,819       4,344       4,719       2,765  
    Premises and equipment, net     2,432       2,335       2,345       2,207       1,804  
    Other assets and interest receivable     40,736       40,664       39,383       41,430       40,926  
    Total assets   $ 2,482,873     $ 2,424,011     $ 2,386,373     $ 2,285,684     $ 2,187,777  
                                   
    Liabilities and Shareholders’ Equity                              
    Liabilities                              
    Noninterest Bearing   $ 599,095     $ 553,405     $ 584,292     $ 557,055     $ 516,294  
    Interest Bearing     1,593,014       1,581,054       1,522,839       1,444,671       1,388,381  
    Total Deposits     2,192,109       2,134,459       2,107,131       2,001,726       1,904,675  
    Borrowings     33,970       45,969       45,967       65,965       70,963  
    Accrued interest payable and other liabilities     21,559       20,049       19,062       16,551       18,107  
    Total liabilities     2,247,638       2,200,477       2,172,160       2,084,242       1,993,745  
    Shareholders’ equity                              
    Common stock     76,156       75,377       74,688       74,636       74,105  
    Additional paid-in capital     3,712       4,393       4,271       3,717       4,108  
    Retained earnings     162,462       152,252       141,623       132,179       124,464  
    Accumulated other comprehensive (loss) income     (7,095 )     (8,488 )     (6,369 )     (9,090 )     (8,645 )
    Total shareholders’ equity     235,235       223,534       214,213       201,442       194,032  
    Total liabilities and shareholders’ equity   $ 2,482,873     $ 2,424,011     $ 2,386,373     $ 2,285,684     $ 2,187,777  
                                   
    Book value per common share   $ 40.63     $ 38.76     $ 37.21     $ 35.03     $ 33.94  
    Tangible book value per common share(1)   $ 40.29     $ 38.40     $ 36.87     $ 34.65     $ 33.55  
    Shares outstanding     5,789,306       5,766,810       5,756,207       5,751,143       5,717,519  

    (1) Non-GAAP measure. See GAAP to non-GAAP Reconciliation table.

       
    PRIVATE BANCORP OF AMERICA, INC.
    Condensed Statements of Income
    (Unaudited)
    (Dollars in thousands, except per share amounts)    		  
       
      For the three months ended  
      Mar 31, 2025     Dec 31, 2024     Sep 30, 2024     Jun 30, 2024     Mar 31, 2024  
    Interest income $ 40,268     $ 40,430     $ 40,018     $ 38,662     $ 35,784  
    Interest expense   12,536       13,023       14,311       13,992       13,016  
    Net interest income   27,732       27,407       25,707       24,670       22,768  
    Provision for credit losses   299       17       304       2,136       233  
    Net interest income after provision for credit losses   27,433       27,390       25,403       22,534       22,535  
                                 
    Service charges on deposit accounts   557       558       504       430       388  
    Net gain on sale of loans   469       932       587       661       681  
    Other noninterest income   587       456       343       447       357  
    Total noninterest income   1,613       1,946       1,434       1,538       1,426  
                                 
    Compensation and employee benefits   9,748       9,539       9,422       8,836       8,861  
    Occupancy and equipment   844       847       818       822       770  
    Data processing   1,326       1,195       1,238       1,183       1,058  
    Professional services   508       573       252       424       488  
    Other expenses   1,629       2,036       1,695       1,697       1,606  
    Total noninterest expense   14,055       14,190       13,425       12,962       12,783  
                                 
    Income before provision for income taxes   14,991       15,146       13,412       11,110       11,178  
    Income taxes   4,429       4,488       3,959       3,283       3,294  
    Net income $ 10,562     $ 10,658     $ 9,453     $ 7,827     $ 7,884  
    Net income available to common shareholders $ 10,482     $ 10,573     $ 9,373     $ 7,761     $ 7,832  
                                 
    Earnings per share                            
    Basic earnings per share $ 1.83     $ 1.85     $ 1.64     $ 1.36     $ 1.38  
    Diluted earnings per share $ 1.80     $ 1.82     $ 1.63     $ 1.35     $ 1.36  
                                 
    Average shares outstanding   5,734,688       5,716,291       5,707,723       5,702,938       5,679,843  
    Diluted average shares outstanding   5,826,229       5,813,197       5,767,401       5,762,616       5,754,937  
      Performance Ratios  
      Mar 31, 2025     Dec 31, 2024     Sep 30, 2024     Jun 30, 2024     Mar 31, 2024  
    ROAA   1.74 %     1.80 %     1.62 %     1.40 %     1.48 %
    ROAE   18.56 %     19.28 %     18.00 %     15.81 %     16.66 %
    ROATCE(1)   18.74 %     19.46 %     18.18 %     15.99 %     16.86 %
    Net interest margin   4.61 %     4.67 %     4.44 %     4.48 %     4.31 %
    Net interest spread   4.41 %     4.44 %     4.20 %     4.24 %     4.08 %
    Efficiency ratio(1)   47.90 %     48.34 %     49.46 %     49.46 %     52.84 %
    Noninterest expense / average assets   2.31 %     2.39 %     2.29 %     2.32 %     2.39 %

    (1) Non-GAAP measure. See GAAP to non-GAAP Reconciliation table.

    PRIVATE BANCORP OF AMERICA, INC.
    (Unaudited)    		  
       
        Selected Quarterly Average Balances  
        (Dollars in thousands)  
        For the three months ended  
        Mar 31, 2025     Dec 31, 2024     Sep 30, 2024     Jun 30, 2024     Mar 31, 2024  
    Total assets   $ 2,467,778     $ 2,359,950     $ 2,328,399     $ 2,241,860     $ 2,148,978  
    Earning assets   $ 2,439,242     $ 2,334,999     $ 2,303,537     $ 2,216,185     $ 2,123,509  
    Total loans, including loans held for sale   $ 2,078,588     $ 2,036,178     $ 1,989,748     $ 1,939,746     $ 1,868,308  
    Total deposits   $ 2,173,402     $ 2,071,050     $ 2,047,197     $ 1,961,099     $ 1,872,737  
    Total shareholders’ equity   $ 230,731     $ 219,963     $ 208,889     $ 199,088     $ 190,326  
        Loan Balances by Type  
        (Dollars in thousands)  
        Mar 31, 2025     Dec 31, 2024     Sep 30, 2024     Jun 30, 2024     Mar 31, 2024  
    Commercial Real Estate (CRE):                              
    Investor owned   $ 577,512     $ 572,659     $ 560,481     $ 566,314     $ 573,587  
    Owner occupied     228,232       223,442       221,364       216,876       216,123  
    Multifamily     163,218       162,330       175,387       177,390       175,629  
    Secured by single family     200,650       198,579       190,738       181,744       157,092  
    Land and construction     70,293       62,638       68,186       58,109       35,975  
    SBA secured by real estate     402,524       401,990       395,646       388,271       385,416  
    Total CRE     1,642,429       1,621,638       1,611,802       1,588,704       1,543,822  
    Commercial business:                              
    Commercial and industrial     417,258       441,182       383,874       378,161       352,417  
    SBA non-real estate secured     17,004       20,205       15,101       10,758       8,657  
    Total commercial business     434,262       461,387       398,975       388,919       361,074  
    Consumer     1,962       2,124       1,680       2,097       2,096  
    Total loans held for investment   $ 2,078,653     $ 2,085,149     $ 2,012,457     $ 1,979,720     $ 1,906,992  
                                             
        Deposits by Type  
        (Dollars in thousands)  
        Mar 31, 2025     Dec 31, 2024     Sep 30, 2024     Jun 30, 2024     Mar 31, 2024  
    Noninterest-bearing DDA   $ 599,095     $ 553,405     $ 584,292     $ 557,055     $ 516,294  
    Interest-bearing DDA, excluding brokered     257,720       251,594       182,268       156,253       117,129  
    Savings & MMA, excluding brokered     981,491       887,740       920,219       861,508       812,841  
    Time deposits, excluding brokered     210,845       201,851       186,583       168,664       160,605  
    Total deposits, excluding brokered     2,049,151       1,894,590       1,873,362       1,743,480       1,606,869  
    Total brokered deposits     142,958       239,869       233,769       258,246       297,806  
    Total deposits   $ 2,192,109     $ 2,134,459     $ 2,107,131     $ 2,001,726     $ 1,904,675  
                                             
    PRIVATE BANCORP OF AMERICA, INC.
    (Unaudited)    		  
       
        Rollforward of Allowance for Credit Losses  
        (Dollars in thousands)  
        For the three months ended  
        Mar 31, 2025     Dec 31, 2024     Sep 30, 2024     Jun 30, 2024     Mar 31, 2024  
    Allowance for loan losses:                              
    Beginning balance   $ 27,267     $ 26,594     $ 26,591     $ 24,693     $ 24,476  
    Provision for loan losses     460       673       3       1,994       251  
    Net (charge-offs) recoveries     (1,290 )     –       –       (96 )     (34 )
    Ending balance     26,437       27,267       26,594       26,591       24,693  
    Reserve for unfunded commitments     1,348       1,509       2,165       1,865       1,723  
    Total allowance for credit losses   $ 27,785     $ 28,776     $ 28,759     $ 28,456     $ 26,416  
        Asset Quality  
        (Dollars in thousands)  
        Mar 31, 2025     Dec 31, 2024     Sep 30, 2024     Jun 30, 2024     Mar 31, 2024  
    Total loans held-for-investment   $ 2,078,653     $ 2,085,149     $ 2,012,457     $ 1,979,720     $ 1,906,992  
    Allowance for loan losses   $ (26,437 )   $ (27,267 )   $ (26,594 )   $ (26,591 )   $ (24,693 )
    30-89 day past due loans   $ 2,399     $ 1,952     $ –     $ –     $ –  
    90+ day past due loans   $ 13,223     $ 11,512     $ 11,512     $ 2,500     $ 3,530  
    Nonaccrual loans   $ 15,565     $ 11,512     $ 11,512     $ 2,500     $ 4,656  
    NPAs / Assets     0.63 %     0.47 %     0.48 %     0.11 %     0.21 %
    NPLs / Total loans held-for-investment & OREO     0.75 %     0.55 %     0.57 %     0.13 %     0.24 %
    Net quarterly charge-offs (recoveries)   $ 1,290     $ –     $ –     $ 96     $ 34  
    Net charge-offs (recoveries) /avg loans (annualized)     0.25 %     0.00 %     0.00 %     0.02 %     0.01 %
    Allowance for loan losses to loans HFI     1.27 %     1.31 %     1.32 %     1.34 %     1.29 %
    Allowance for loan losses to nonaccrual loans     169.85 %     236.86 %     231.01 %     1,063.64 %     530.35 %


    PRIVATE BANCORP OF AMERICA, INC.
    (Unaudited)

    The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: efficiency ratio, pretax pre-provision net revenue, average tangible common equity, and return on average tangible common equity. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures.

        GAAP to Non-GAAP Reconciliation  
        (Dollars in thousands)  
                                   
        For the three months ended  
        Mar 31, 2025     Dec 31, 2024     Sep 30, 2024     Jun 30, 2024     Mar 31, 2024  
    Efficiency Ratio                              
    Noninterest expense   $ 14,055     $ 14,190     $ 13,425     $ 12,962     $ 12,783  
    Net interest income     27,732       27,407       25,707       24,670       22,768  
    Noninterest income     1,613       1,946       1,434       1,538       1,426  
    Total net interest income and noninterest income     29,345       29,353       27,141       26,208       24,194  
    Efficiency ratio (non-GAAP)     47.90 %     48.34 %     49.46 %     49.46 %     52.84 %
                                   
    Pretax pre-provision net revenue                              
    Net interest income   $ 27,732     $ 27,407     $ 25,707     $ 24,670     $ 22,768  
    Noninterest income     1,613       1,946       1,434       1,538       1,426  
    Total net interest income and noninterest income     29,345       29,353       27,141       26,208       24,194  
    Less: Noninterest expense     14,055       14,190       13,425       12,962       12,783  
    Pretax pre-provision net revenue (non-GAAP)   $ 15,290     $ 15,163     $ 13,716     $ 13,246     $ 11,411  
                                   
    Return and Adjusted Return on Average Assets, Average Equity, Average Tangible Equity                              
    Net income   $ 10,562     $ 10,658     $ 9,453     $ 7,827     $ 7,884  
    Average assets     2,467,778       2,359,950       2,328,399       2,241,860       2,148,978  
    Average shareholders’ equity     230,731       219,963       208,889       199,088       190,326  
    Less: Average intangible assets     2,098       2,028       2,051       2,163       2,208  
    Average tangible common equity (non-GAAP)     228,633       217,935       206,838       196,925       188,118  
                                   
    Return on average assets     1.74 %     1.80 %     1.62 %     1.40 %     1.48 %
    Return on average equity     18.56 %     19.28 %     18.00 %     15.81 %     16.66 %
    Return on average tangible common equity (non-GAAP)     18.74 %     19.46 %     18.18 %     15.99 %     16.86 %
                                   
    Tangible book value per share                              
    Total equity     235,235       223,534       214,213       201,442       194,032  
    Less: Total intangible assets     1,993       2,087       2,006       2,164       2,203  
    Total tangible equity     233,242       221,447       212,207       199,278       191,829  
    Shares outstanding     5,789,306       5,766,810       5,756,207       5,751,143       5,717,519  
    Tangible book value per share (non-GAAP)   $ 40.29     $ 38.40     $ 36.87     $ 34.65     $ 33.55  

    The MIL Network –

  • MIL-OSI Economics: Condolences on the Passing of His Holliness Pope Francis

    Source: New Development Bank

    The New Development Bank expresses its profound sorrow at the passing of His Holiness Pope Francis.

    Pope Francis was a moral leader of global stature. He stood as a beacon of compassion, dialogue, and justice, offering guidance to believers and non-believers alike in a world facing complex and interrelated challenges.

    Born in Buenos Aires, Argentina, Pope Francis became the first pontiff from the Global South and the first non-European Pope in more than a millennium.

    Throughout his pontificate, Pope Francis championed the dignity of the poor, the preservation of our planet, and the imperative of building a more fraternal, multilateral and inclusive world. His encyclicals Laudato Si’ and Fratelli Tutti shaped global conversations on sustainable development, environmental consciousness, and social justice. He consistently advocated for cooperation, equitable economic models, and solidarity across borders.

    His call for an integral approach to development and his tireless efforts to bring people together across cultures and beliefs will remain an enduring source of inspiration.

    At this time of mourning, the New Development Bank extends its sincere condolences to his family, to the people of Argentina, and to the large community of believers and non-believers that share  the values of Pope Francis – justice, care for the vulnerable, and responsibility for future generations. We honor his legacy with respect, gratitude, and a renewed sense of purpose in the service of humanity.

    May he rest in peace.

    MIL OSI Economics –

  • MIL-OSI China: Former vice president of China Development Bank sentenced to 14 years in jail for bribery

    Source: China State Council Information Office 2

    Li Jiping, a former vice president of China Development Bank, was sentenced to 14 years in prison for accepting bribes by a court in central China’s Henan Province on Monday.
    Li was also fined 4 million yuan (about $555,000), and his illegal gains from bribery will be turned over to the state treasury, according to a verdict issued by the court.
    The court found that between 2001 and 2021, Li used his various positions with China Development Bank to assist others in matters such as loan approval and project contracting, and accepted money and valuables worth over 57.3 million yuan in return.
    Li was granted a lenient sentence considering that he was cooperative during the investigation and had shown remorse, according to the court.

    MIL OSI China News –

  • MIL-OSI Asia-Pac: BharatNet

    Source: Government of India

    BharatNet

    Extending Internet Access, Expanding Rural Progress

    Posted On: 21 APR 2025 2:48PM by PIB Delhi

    • Q: What is the BharatNet project?

    A: BharatNet is an ambitious project of the Government of India aimed at providing broadband connectivity to all Gram Panchayats (GPs) in the country. It is one of the biggest rural telecom projects in the world.

    • Q: What is the objective of the BharatNet project?

    A: The primary objective is to provide unrestricted access to broadband connectivity to all the telecom service providers. This enables access providers like mobile operators, Internet Service Providers (ISPs), Cable TV operators, and content providers to launch various services such as e-health, e-education, and e-governance in rural and remote India. It aims to empower rural India, foster inclusive growth, and bridge the gap between urban and rural communities.

    • Q: How many Gram Panchayats (GPs) are targeted under BharatNet?

    A: The project initially aimed to connect approximately 2.5 lakh Gram Panchayats across the country.

    • Q: What are the different phases of the BharatNet project?

     A: The Telecom Commission approved the implementation of the project in three phases on 30.04.2016:

      • Phase I: Focused on laying optical fibre cables to connect 1 lakh Gram Panchayats by utilising existing infrastructure. This phase was completed in December 2017
      • Phase II(ongoing): Expanded coverage to an additional 1.5 lakh Gram Panchayats using optical fibre, radio, and satellite technologies. This phase incorporated collaborative efforts with state governments and private entities.
      • Phase III(ongoing): Aims at future-proofing the network by integrating 5G technologies, increasing bandwidth capacity, and ensuring robust last-mile connectivity. This phase is ongoing. The Amended BharatNet Program (ABP) approved in August 2023 can be considered part of this evolution.
    • Q: What is the Amended BharatNet Program (ABP)?

     A: Approved in August 2023, the ABP is a design improvement aiming for Optical Fibre (OF) connectivity to 2.64 lakh GPs in ring topology (a network design where connected devices form a circular data channel) and OF connectivity to the remaining non-GP villages on demand. It includes features like IP-MPLS (Internet Protocol Multi-Protocol Label Switching) network with routers at Blocks and GPs, operation and maintenance for 10 years, power backup, and Remote Fibre Monitoring System (RFMS). The cost allocated is Rs. 1,39,579 crores.

    • Q: What other initiatives support digital empowerment in rural India?

     A: Several other initiatives complement BharatNet, including:

      • Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA): To ensure digital literacy in rural households, with over 6.39 crore individuals trained by March 31, 2024.
      • National Broadband Mission (NBM): Launched to fast-track the expansion of digital communications infrastructure. National Broadband Mission 2.0 was launched on January 17, 2025. Key initiatives under NBM include the Centralized Right of Way (RoW) Portal GatiShakti Sanchar.
    • Q: How is BharatNet being funded?

    A: BharatNet is primarily funded through the Digital Bharat Nidhi (DBN), which is a fund that replaced the Universal Service Obligation Fund (USOF). The total funding for BharatNet (Phase-I and Phase-II) approved by the Cabinet is Rs 42,068 crores (exclusive of GST, Octroi, and local taxes). As of 31.12.2023, a total of Rs. 39,825 crores have been disbursed under the BharatNet Project since its inception.

    • Q: Who is executing the BharatNet project?

    A: The project is being executed by a Special Purpose Vehicle (SPV) namely Bharat Broadband Network Limited (BBNL), which was incorporated on 25.02.2012 under the Indian Companies Act 1956. Under the Amended BharatNet Program, BSNL is appointed as the single Project Management Agency (PMA) for Operation & Maintenance of the entire network.

    • Q: What is the current status of BharatNet implementation?

    A:

      • As of 19th March 2025, 2,18,347GPs have been made service ready under the BharatNet project in the country.
      • As of March 25, 2025, the Optical Fiber Cable (OFC) length has increased to 42.13 lakh route km.
      • As of 13.01.2025, 6,92,676 Km of OFC (Optical Fiber Cable) has been laid.
      • 12,21,014 Fibre-To-The-Home (FTTH) connections are commissioned
      • 1,04,574 Wi-Fi hotspots are installed.
    • Q: How is the BharatNet network utilised?

    A: The network is utilised through leasing bandwidth and dark fibre, Wi-Fi to access broadband or internet services in public places, and Fibre to the Home (FTTH). Last Mile Connectivity (LMC) is provided through Wi-Fi in public places or other suitable broadband technologies, including FTTH at Government institutions such as schools, hospitals, post offices, etc.

    • Q: What are the benefits and impact of the BharatNet project?

    A: BharatNet has had a transformative impact on rural India, contributing to socioeconomic development in multiple ways:

      • Digital Inclusion: Connecting remote villages to high-speed internet, enabling access to e-governance, online education, and telemedicine.
      • Economic Opportunities: Enabling participation in digital commerce, access to financial services, and entrepreneurial opportunities.
      • Education and Healthcare: Facilitating digital classrooms and telehealth services.
      • Empowering Local Governance: Enabling Gram Panchayats to implement e-governance projects.
    • Q: What is the role of CSC e-Governance Services India Limited in BharatNet?

    A: CSC (Common Services Centre) e-Governance Services India Limited (CSC-SPV) was assigned to provide the last mile connectivity in GPs through Wi-Fi Access Points and FTTH connections.  As of September 2024, 1,04,574 Wi-Fi Access Points and 11,41 ,825 FTTH connections have been installed in the GPs. CSC-SPV also undertook a pilot project for laying overhead optical fiber from GPs.

    • Q: What is the collaboration between DBN and NABARD?

    A: Digital Bharat Nidhi (DBN) and the National Bank for Agriculture and Rural Development (NABARD) have signed an MoU to drive rural development by providing access to digital services, digital governance, and promoting a digital economy through high-speed broadband connectivity under the BharatNet program. Key areas of collaboration include reference data sharing, digital content sharing, digital services integration, awareness and capacity building, promoting a digital economy, and inclusion of ICT infrastructure.

    • Q: How does BharatNet relate to mobile connectivity in rural areas?

     A: Alongside BharatNet, the government is also focusing on expanding mobile connectivity in rural areas. As of December 2024, around 6,25,853 villages are covered with mobile connectivity, including 6,18,968 villages having 4G mobile coverage. The median mobile broadband speed has increased significantly. These efforts are complementary to BharatNet in bridging the digital divide.

    REFERENCES

    https://pib.gov.in/PressReleasePage.aspx?PRID=2086701#:~:text=the%20government%20of,truly%20digital%20nation

    https://x.com/PIB_India/status/1905232713227067857

    https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2115831

    https://usof.gov.in/en/ongoing-schemes

    https://bbnl.nic.in/

    https://it.tn.gov.in/en/TACTV/BharatNet

    https://www.data.gov.in/keywords/BharatNet

    https://usof.gov.in/en/bharatnet-project

    https://www.pib.gov.in/PressReleasePage.aspx?PRID=2086701

    https://sansad.in/getFile/loksabhaquestions/annex/1714/AU2874.pdf?source=pqals

    https://pib.gov.in/PressReleasePage.aspx?PRID=2117923#:~:text=Government%20of%20India%20Takes%20Measures,and%20Meaningful%20Connectivity%20for%20all.

    https://pib.gov.in/PressReleseDetailm.aspx?PRID=2077908&reg=3&lang=1

    https://sansad.in/getFile/annex/267/AU2155_28gbez.pdf?source=pqars

    KIndly find the pdf file 

    *****

    Santosh Kumar | Sarla Meena | Chaitanya Mishra

    (Release ID: 2123137) Visitor Counter : 193

    MIL OSI Asia Pacific News –

  • MIL-OSI: Capital City Bank Group, Inc. Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    TALLAHASSEE, Fla., April 21, 2025 (GLOBE NEWSWIRE) — Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $16.9 million, or $0.99 per diluted share, for the first quarter of 2025 compared to $13.1 million, or $0.77 per diluted share, for the fourth quarter of 2024, and $12.6 million, or $0.74 per diluted share, for the first quarter of 2024.

    QUARTER HIGHLIGHTS (1stQuarter 2025 versus 4thQuarter 2024)

    Income Statement

    • Tax-equivalent net interest income totaled $41.6 million compared to $41.2 million for the prior quarter
      • Net interest margin increased five basis points to 4.22% (earning asset yield up one basis point and total deposit cost down four basis points to 82 basis points)
    • Improved credit quality metrics – net loan charge-offs were nine basis points (annualized) of average loans – allowance coverage ratio increased to 1.12% at March 31, 2025
    • Noninterest income increased $1.1 million, or 6.1%, and reflected a $0.7 million increase in mortgage banking revenues and a $0.5 million increase in wealth management fees
    • Noninterest expense decreased $3.1 million, or 7.4%, primarily due to a $3.1 million decrease in other expense which included a higher level of gains from the sale of banking facilities, namely the sale of our operations center building in the first quarter

    Balance Sheet

    • Loan balances decreased $11.5 million, or 0.4% (average), and increased $9.2 million, or 0.4% (end of period)
    • Deposit balances increased by $65.1 million, or 1.8% (average), and increased $111.9 million, or 3.0% (end of period), largely due to the seasonal increase in our public fund balances
    • Tangible book value per diluted share (non-GAAP financial measure) increased $0.94, or 4.0%

    “I am pleased with our first quarter performance, which reflects strong core fundamentals and strategic execution driven by a 2.6% increase in revenues, solid growth in deposit balances, and improvement in credit quality metrics,” said William G. Smith, Jr., Capital City Bank Group Chairman, President, and CEO. “First quarter earnings also included a $0.17 per diluted share gain from the sale of our operations center building. Our strong balance sheet and revenue diversification provides us with the flexibility to navigate ongoing uncertainty in market and economic conditions.”

    Discussion of Operating Results

    Net Interest Income/Net Interest Margin

    Tax-equivalent net interest income for the first quarter of 2025 totaled $41.6 million, compared to $41.2 million for the fourth quarter of 2024, and $38.4 million for the first quarter of 2024. Compared to both prior periods, the increase was driven by higher investment securities interest due to new investment purchases at higher yields, in addition to lower deposit interest expense, partially offset by lower loan interest due to lower average loan balances and interest rates. Two less calendar days also contributed to the decline in loan interest compared to the fourth quarter of 2024. Higher overnight funds interest also contributed to the increase over the first quarter of 2024 reflective of a higher level of average earning assets.

    Our net interest margin for the first quarter of 2025 was 4.22%, an increase of five basis points over the fourth quarter of 2024 and an increase of 21 basis points over the first quarter of 2024. For the month of March 2025, our net interest margin was 4.22%. The increase in net interest margin over the fourth quarter of 2024 reflected a higher yield in the investment portfolio driven by new purchases during the quarter and a lower cost of deposits, partially offset by a lower overnight funds rate. The increase over the first quarter of 2024 reflected favorable investment repricing, a lower cost of deposits, and a higher overnight funds rate, partially offset by lower average loan balances for both prior periods.   For the first quarter of 2025, our cost of funds was 84 basis points, a decrease of four basis points from the fourth quarter of 2024 and the first quarter of 2024. Our cost of deposits (including noninterest bearing accounts) was 82 basis points, 86 basis points, and 85 basis points, respectively, for the same periods.

    Provision for Credit Losses

    We recorded a provision expense for credit losses of $0.8 million for the first quarter of 2025 compared to $0.7 million for the fourth quarter of 2024 and $0.9 million for the first quarter of 2024. For the first quarter of 2025, we recorded a provision expense of $1.1 million for loans held for investment (“HFI”) and a provision benefit of $0.3 million for unfunded loan commitments, which was comparable to the fourth quarter of 2024. We discuss the various factors that impacted our provision expense in detail below under the heading Allowance for Credit Losses.  

    Noninterest Income and Noninterest Expense

    Noninterest income for the first quarter of 2025 totaled $19.9 million compared to $18.8 million for the fourth quarter of 2024 and $18.1 million for the first quarter of 2024. The $1.1 million, or 6.1%, increase over the fourth quarter of 2024 was primarily due to a $0.7 million increase in mortgage banking revenues and a $0.5 million increase in wealth management fees, partially offset by a $0.1 million decrease in deposits fees.   The increase in mortgage revenues was driven by an increase in rate locks and a higher gain on sale margin. The increase in wealth management fees was attributable to a $0.5 million increase in insurance commission revenue.   Compared to the first quarter of 2024, the $1.8 million, or 10.0%, increase was driven by a $1.1 million increase in wealth management fees and a $0.9 million increase in mortgage banking revenues, partially offset by a $0.2 million decrease in deposit fees.   The increase in wealth management fees reflected higher retail brokerage fees of $0.6 million, insurance commission revenue of $0.3 million, and trust fees of $0.2 million. The increase in mortgage revenues was driven by an increase in loan fundings and a higher gain on sale margin.     

    Noninterest expense for the first quarter of 2025 totaled $38.7 million compared to $41.8 million for the fourth quarter of 2024 and $40.2 million for the first quarter of 2024.   The $3.1 million, or 7.4%, decrease from the fourth quarter of 2024, reflected a $3.1 million decrease in other expense, a $0.1 million decrease in occupancy expense, and a $0.1 million increase in compensation expense. The decrease in other expense was driven by a $3.5 million decrease in other real estate expense which reflected higher gains from the sale of banking facilities, primarily the sale of our operations center building in the first quarter of 2025, partially offset by a $0.5 million increase in charitable contribution expense. The slight decrease in occupancy expense was due to lower maintenance/repairs for buildings and furniture/fixtures. The slight net decrease in compensation expense reflected a $0.2 million increase in salary expense offset by a $0.1 million decrease in associate benefit expense.

    Income Taxes

    We realized income tax expense of $5.1 million (effective rate of 23.3%) for the first quarter of 2025 compared to $4.2 million (effective rate of 24.3%) for the fourth quarter of 2024 and $3.5 million (effective rate of 23.0%) for the first quarter of 2024. Compared to the fourth quarter of 2024, the decrease in our effective tax rate was primarily due to a discrete item in the first quarter of 2025 related to an excess tax benefit for stock compensation.   Absent discrete items, we expect our annual effective tax rate to approximate 24% for 2025.

    Discussion of Financial Condition

    Earning Assets

    Average earning assets totaled $3.994 billion for the first quarter of 2025, an increase of $72.0 million, or 1.8%, over the fourth quarter of 2024, and an increase of $144.3 million, or 3.7%, over the first quarter of 2024. The increase over both prior periods was driven by higher deposit balances (see below – Deposits).   Compared to the fourth quarter of 2024, the change in the earning asset mix reflected a $67.1 million increase in investment securities and a $22.7 million increase in overnight funds sold partially offset by a $11.5 million decrease in loans HFI and a $6.3 million decrease in loans held for sale (“HFS”).   Compared to the first quarter of 2024, the change in the earning asset mix reflected a $180.5 million increase in overnight funds and a $29.1 million increase in investment securities that was partially offset by a $62.7 million decrease in loans HFI and a $2.6 million decrease in HFS.

    Average loans HFI decreased $11.5 million, or 0.4%, from the fourth quarter of 2024 and decreased $62.7 million, or 2.3%, from the first quarter of 2024. Compared to the fourth quarter of 2024, the decrease was primarily attributable to declines in construction loans of $8.6 million, commercial loans of $5.7 million, and consumer loans of $2.1 million, partially offset by a $6.6 million increase in home equity loans.   Compared to the first quarter of 2024, the decline was driven by decreases in consumer loans (primarily indirect auto) of $58.8 million, commercial loans of $32.9 million, and commercial real estate mortgage loans of $23.1 million, partially offset by increases in residential real estate loans of $28.9 million, construction loans of $11.5 million, and home equity loans of $10.4 million.

    Loans HFI at March 31, 2025 increased $9.2 million, or 0.3%, over December 31, 2024 and decreased $70.4 million, or 2.6%, from March 31, 2024. Compared to December 31, 2024, the increase was primarily attributable to increases in commercial real estate mortgage loans of $27.8 million and residential real estate loans of $12.1 million, consumer loans (primarily indirect auto) of $6.7 million, and home equity loans of $5.9 million, partially offset by decreases in construction loans of $27.7 million, commercial loans of $4.8 million, and other loans of $10.8 million.   Compared to the first quarter of 2024, the decline was driven by decreases in consumer loans (primarily indirect auto) of $48.0 million, commercial loans of $33.9 million, commercial real estate mortgage loans of $16.7 million, and construction loans of $10.4 million, partially offset by increases in residential real estate loans of $27.8 million and home equity loans of $11.4 million.

    Allowance for Credit Losses

    At March 31, 2025, the allowance for credit losses for loans HFI totaled $29.7 million compared to $29.3 million at December 31, 2024 and $29.3 million at March 31, 2024. Activity within the allowance is provided on Page 9. The increase in the allowance over December 31, 2024 reflected higher loan balances and higher loan loss rates, partially offset by a lower level of net loan charge-offs.   The increase in the allowance over March 31, 2024 was primarily due to higher loss rates. Net loan charge-offs were nine basis points of average loans for the first quarter of 2025 versus 25 basis points for the fourth quarter of 2024 and 22 basis points for the first quarter of 2024. At March 31, 2025, the allowance represented 1.12% of loans HFI compared to 1.10% at December 31, 2024, and 1.07% at March 31, 2024.

    Credit Quality

    Nonperforming assets (nonaccrual loans and other real estate) totaled $4.4 million at March 31, 2025 compared to $6.7 million at December 31, 2024 and $6.8 million at March 31, 2024. At March 31, 2025, nonperforming assets as a percent of total assets was 0.10%, compared to 0.15% at December 31, 2024 and 0.16% at March 31, 2024. Nonaccrual loans totaled $4.3 million at March 31, 2025, a $2.0 million decrease from December 31, 2024 and a $2.5 million decrease from March 31, 2024. Further, classified loans totaled $19.2 million at March 31, 2025, a $0.7 million decrease from December 31, 2024 and a $3.1 million decrease from March 31, 2024.

    Deposits

    Average total deposits were $3.665 billion for the first quarter of 2025, an increase of $65.1 million, or 1.8%, over the fourth quarter of 2024 and an increase of $89.0 million, or 2.5%, over the first quarter of 2024.   Compared to the fourth quarter of 2024, the increase was primarily attributable to higher NOW account balances largely due to the seasonal increase in our public fund balances.   The increase over the first quarter of 2024 reflected growth in NOW, money market and certificate of deposit account balances which was mainly due to a combination of balances migrating from savings and noninterest bearing accounts, in addition to receiving new deposits from existing and new clients via various deposit strategies.     

    At March 31, 2025, total deposits were $3.784 billion, an increase of $111.9 million, or 3.0%, over December 31, 2024, and an increase of $129.1 million, or 3.5%, over March 31, 2024.   The increase over December 31, 2024 was due to higher balances in all deposit categories. The increase over March 31, 2024 was primarily due to higher NOW account balances, largely due to the seasonal increase in public funds and increases in money market and certificates of deposit, partially offset by lower savings account balances. Total public funds balances were $648.0 million at March 31, 2025, $660.9 million at December 31, 2024, and $615.0 million at March 31, 2024.

    Liquidity

    The Bank maintained an average net overnight funds (i.e., deposits with banks plus FED funds sold less FED funds purchased) sold position of $320.9 million in the first quarter of 2025 compared to $298.3 million in the fourth quarter of 2024 and $140.5 million in the first quarter of 2024. Compared to both prior periods, the increase reflected higher average deposits (primarily seasonal public funds) and lower average loans.
        
    At March 31, 2025, we had the ability to generate approximately $1.540 billion (excludes overnight funds position of $446 million) in additional liquidity through various sources including various federal funds purchased lines, Federal Home Loan Bank borrowings, the Federal Reserve Discount Window, and brokered deposits.  

    We also view our investment portfolio as a liquidity source as we have the option to pledge securities in our portfolio as collateral for borrowings or deposits, and/or to sell selected securities in our portfolio.  Our portfolio consists of debt issued by the U.S. Treasury, U.S. governmental agencies, municipal governments, and corporate entities.  At March 31, 2025, the weighted-average maturity and duration of our portfolio were 2.64 years and 2.10 years, respectively, and the available-for-sale portfolio had a net unrealized after-tax loss of $15.4 million.    

    Capital

    Shareowners’ equity was $512.6 million at March 31, 2025 compared to $495.3 million at December 31, 2024 and $448.3 million at March 31, 2024. For the first three months of 2025, shareowners’ equity was positively impacted by net income attributable to shareowners of $16.9 million, a net $3.6 million decrease in the accumulated other comprehensive loss, the issuance of stock of $2.4 million, and stock compensation accretion of $0.4 million. The net favorable change in accumulated other comprehensive loss reflected a $4.1 million decrease in the investment securities loss that was partially offset by a $0.5 million decrease in the fair value of the interest rate swap related to subordinated debt. Shareowners’ equity was reduced by a common stock dividend of $4.1 million ($0.24 per share) and net adjustments totaling $1.9 million related to transactions under our stock compensation plans.

    At March 31, 2025, our total risk-based capital ratio was 19.20% compared to 18.64% at December 31, 2024 and 16.84% at March 31, 2024. Our common equity tier 1 capital ratio was 16.08%, 15.54%, and 13.82%, respectively, on these dates. Our leverage ratio was 11.17%, 11.05%, and 10.45%, respectively, on these dates. At March 31, 2025, all our regulatory capital ratios exceeded the thresholds to be designated as “well-capitalized” under the Basel III capital standards. Further, our tangible common equity ratio (non-GAAP financial measure) was 9.61% at March 31, 2025 compared to 9.51% and 8.53% at December 31, 2024 and March 31, 2024, respectively. If our unrealized held-to-maturity securities losses of $12.1 million (after-tax) were recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 9.33%.

    About Capital City Bank Group, Inc.

    Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4.5 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage services and financial advisory services, including the sale of life insurance, risk management and asset protection services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 62 banking offices and 105 ATMs/ITMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit www.ccbg.com.

    FORWARD-LOOKING STATEMENTS

    Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “vision,” “goal,” and similar expressions are intended to identify forward-looking statements. The following factors, among others, could cause our actual results to differ: the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; inflation, interest rate, market and monetary fluctuations; local, regional, national, and international economic conditions and the impact they may have on us and our clients and our assessment of that impact; the costs and effects of legal and regulatory developments, the outcomes of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) and their application with which we and our subsidiaries must comply; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as other accounting standard setters; the accuracy of our financial statement estimates and assumptions; changes in the financial performance and/or condition of our borrowers; changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs; changes in estimates of future credit loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; changes in our liquidity position; the timely development and acceptance of new products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing, and saving habits; greater than expected costs or difficulties related to the integration of new products and lines of business; technological changes; the cost and effects of cyber incidents or other failures, interruptions, or security breaches of our systems or those of our customers or third-party providers; acquisitions and integration of acquired businesses; impairment of our goodwill or other intangible assets; changes in the reliability of our vendors, internal control systems, or information systems; our ability to increase market share and control expenses; our ability to attract and retain qualified employees; changes in our organization, compensation, and benefit plans; the soundness of other financial institutions; volatility and disruption in national and international financial and commodity markets; changes in the competitive environment in our markets and among banking organizations and other financial service providers; government intervention in the U.S. financial system; the effects of natural disasters (including hurricanes), widespread health emergencies (including pandemics), military conflict, terrorism, civil unrest, climate change or other geopolitical events; our ability to declare and pay dividends; structural changes in the markets for origination, sale and servicing of residential mortgages; any inability to implement and maintain effective internal control over financial reporting and/or disclosure control; negative publicity and the impact on our reputation; and the limited trading activity and concentration of ownership of our common stock. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and our other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ, except as may be required by law.

    For Information Contact:

    Jep Larkin
    Executive Vice President and Chief Financial Officer
    850.402. 8450

    USE OF NON-GAAP FINANCIAL MEASURES
    Unaudited

    We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill and other intangibles resulting from merger and acquisition activity. We believe these measures are useful to investors because it allows investors to more easily compare our capital adequacy to other companies in the industry.

    The GAAP to non-GAAP reconciliations are provided below.

    (Dollars in Thousands, except per share data) Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024
    Shareowners’ Equity (GAAP)   $ 512,575   $ 495,317   $ 476,499   $ 460,999   $ 448,314  
    Less: Goodwill and Other Intangibles (GAAP)     92,733     92,773     92,813     92,853     92,893  
    Tangible Shareowners’ Equity (non-GAAP) A   419,842     402,544     383,686     368,146     355,421  
    Total Assets (GAAP)     4,461,233     4,324,932     4,225,316     4,225,695     4,259,922  
    Less: Goodwill and Other Intangibles (GAAP)     92,733     92,773     92,813     92,853     92,893  
    Tangible Assets (non-GAAP) B $ 4,368,500   $ 4,232,159   $ 4,132,503   $ 4,132,842   $ 4,167,029  
    Tangible Common Equity Ratio (non-GAAP) A/B   9.61%     9.51%     9.28%     8.91%     8.53%  
    Actual Diluted Shares Outstanding (GAAP) C   17,072,330     17,018,122     16,980,686     16,970,228     16,947,204  
    Tangible Book Value per Diluted Share (non-GAAP) A/C $ 24.59   $ 23.65   $ 22.60   $ 21.69   $ 20.97  
     
    CAPITAL CITY BANK GROUP, INC.
    EARNINGS HIGHLIGHTS
    Unaudited
                   
        Three Months Ended  
    (Dollars in thousands, except per share data)   Mar 31, 2025   Dec 31, 2024   Mar 31, 2024  
    EARNINGS              
    Net Income Attributable to Common Shareowners $ 16,858 $ 13,090 $ 12,557 $
    Diluted Net Income Per Share $ 0.99 $ 0.77 $ 0.74 $
    PERFORMANCE              
    Return on Average Assets (annualized)   1.58 % 1.22 % 1.21 %
    Return on Average Equity (annualized)   13.32   10.60   11.07  
    Net Interest Margin   4.22   4.17   4.01  
    Noninterest Income as % of Operating Revenue   32.39   31.34   32.06  
    Efficiency Ratio   62.93 % 69.74 % 71.06 %
    CAPITAL ADEQUACY              
    Tier 1 Capital   18.01 % 17.46 % 15.67 %
    Total Capital   19.20   18.64   16.84  
    Leverage   11.17   11.05   10.45  
    Common Equity Tier 1   16.08   15.54   13.82  
    Tangible Common Equity (1)   9.61   9.51   8.53  
    Equity to Assets   11.49 % 11.45 % 10.52 %
    ASSET QUALITY              
    Allowance as % of Non-Performing Loans   692.10 % 464.14 % 431.46 %
    Allowance as a % of Loans HFI   1.12   1.10   1.07  
    Net Charge-Offs as % of Average Loans HFI   0.09   0.25   0.22  
    Nonperforming Assets as % of Loans HFI and OREO   0.17   0.25   0.25  
    Nonperforming Assets as % of Total Assets   0.10 % 0.15 % 0.16 %
    STOCK PERFORMANCE              
    High $ 38.27 $ 40.86 $ 31.34 $
    Low   33.00   33.00   26.59  
    Close $ 35.96 $ 36.65 $ 27.70 $
    Average Daily Trading Volume   24,486   27,484   31,023  
                   
    (1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 5.
                   
    CAPITAL CITY BANK GROUP, INC.
    CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
    Unaudited
                         
      2025     2024  
    (Dollars in thousands) First Quarter   Fourth Quarter   Third Quarter   Second Quarter   First Quarter
    ASSETS                    
    Cash and Due From Banks $ 78,521   $ 70,543   $ 83,431   $ 75,304   $ 73,642  
    Funds Sold and Interest Bearing Deposits   446,042     321,311     261,779     272,675     231,047  
    Total Cash and Cash Equivalents   524,563     391,854     345,210     347,979     304,689  
                         
    Investment Securities Available for Sale   461,224     403,345     336,187     310,941     327,338  
    Investment Securities Held to Maturity   517,176     567,155     561,480     582,984     603,386  
    Other Equity Securities   2,315     2,399     6,976     2,537     3,445  
    Total Investment Securities   980,715     972,899     904,643     896,462     934,169  
                         
    Loans Held for Sale (“HFS”):   21,441     28,672     31,251     24,022     24,705  
                         
    Loans Held for Investment (“HFI”):                    
    Commercial, Financial, & Agricultural   184,393     189,208     194,625     204,990     218,298  
    Real Estate – Construction   192,282     219,994     218,899     200,754     202,692  
    Real Estate – Commercial   806,942     779,095     819,955     823,122     823,690  
    Real Estate – Residential   1,040,594     1,028,498     1,023,485     1,012,541     1,012,791  
    Real Estate – Home Equity   225,987     220,064     210,988     211,126     214,617  
    Consumer   206,191     199,479     213,305     234,212     254,168  
    Other Loans   3,227     14,006     461     2,286     3,789  
    Overdrafts   1,154     1,206     1,378     1,192     1,127  
    Total Loans Held for Investment   2,660,770     2,651,550     2,683,096     2,690,223     2,731,172  
    Allowance for Credit Losses   (29,734 )   (29,251 )   (29,836 )   (29,219 )   (29,329 )
    Loans Held for Investment, Net   2,631,036     2,622,299     2,653,260     2,661,004     2,701,843  
                         
    Premises and Equipment, Net   80,043     81,952     81,876     81,414     81,452  
    Goodwill and Other Intangibles   92,733     92,773     92,813     92,853     92,893  
    Other Real Estate Owned   132     367     650     650     1  
    Other Assets   130,570     134,116     115,613     121,311     120,170  
    Total Other Assets   303,478     309,208     290,952     296,228     294,516  
    Total Assets $ 4,461,233   $ 4,324,932   $ 4,225,316   $ 4,225,695   $ 4,259,922  
    LIABILITIES                    
    Deposits:                    
    Noninterest Bearing Deposits $ 1,363,739   $ 1,306,254   $ 1,330,715   $ 1,343,606   $ 1,361,939  
    NOW Accounts   1,292,654     1,285,281     1,174,585     1,177,180     1,212,452  
    Money Market Accounts   445,999     404,396     401,272     413,594     398,308  
    Savings Accounts   511,265     506,766     507,604     514,560     530,782  
    Certificates of Deposit   170,233     169,280     164,901     159,624     151,320  
    Total Deposits   3,783,890     3,671,977     3,579,077     3,608,564     3,654,801  
                         
    Repurchase Agreements   22,799     26,240     29,339     22,463     23,477  
    Other Short-Term Borrowings   14,401     2,064     7,929     3,307     8,409  
    Subordinated Notes Payable   52,887     52,887     52,887     52,887     52,887  
    Other Long-Term Borrowings   794     794     794     1,009     265  
    Other Liabilities   73,887     75,653     71,974     69,987     65,181  
    Total Liabilities   3,948,658     3,829,615     3,742,000     3,758,217     3,805,020  
                         
    Temporary Equity   –     –     6,817     6,479     6,588  
    SHAREOWNERS’ EQUITY                    
    Common Stock   171     170     169     169     169  
    Additional Paid-In Capital   38,576     37,684     36,070     35,547     34,861  
    Retained Earnings   476,715     463,949     454,342     445,959     435,364  
    Accumulated Other Comprehensive Loss, Net of Tax   (2,887 )   (6,486 )   (14,082 )   (20,676 )   (22,080 )
    Total Shareowners’ Equity   512,575     495,317     476,499     460,999     448,314  
    Total Liabilities, Temporary Equity and Shareowners’ Equity $ 4,461,233   $ 4,324,932   $ 4,225,316   $ 4,225,695   $ 4,259,922  
    OTHER BALANCE SHEET DATA                    
    Earning Assets $ 4,108,969   $ 3,974,431   $ 3,880,769   $ 3,883,382   $ 3,921,093  
    Interest Bearing Liabilities   2,511,032     2,447,708     2,339,311     2,344,624     2,377,900  
    Book Value Per Diluted Share $ 30.02   $ 29.11   $ 28.06   $ 27.17   $ 26.45  
    Tangible Book Value Per Diluted Share(1)   24.59     23.65     22.60     21.69     20.97  
    Actual Basic Shares Outstanding   17,055     16,975     16,944     16,942     16,929  
    Actual Diluted Shares Outstanding   17,072     17,018     16,981     16,970     16,947  
     
    (1) Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 5.
     
    CAPITAL CITY BANK GROUP, INC.
    CONSOLIDATED STATEMENT OF OPERATIONS
    Unaudited                    
                         
        2025   2024
    (Dollars in thousands, except per share data)   First Quarter   Fourth Quarter   Third Quarter   Second Quarter   First Quarter
    INTEREST INCOME                    
    Loans, including Fees $ 40,478 $ 41,453   $ 41,659 $ 41,138 $ 40,683
    Investment Securities   5,808   4,694     4,155   4,004   4,244
    Federal Funds Sold and Interest Bearing Deposits   3,496   3,596     3,514   3,624   1,893
    Total Interest Income   49,782   49,743     49,328   48,766   46,820
    INTEREST EXPENSE                    
    Deposits   7,383   7,766     8,223   8,579   7,594
    Repurchase Agreements   164   199     221   217   201
    Other Short-Term Borrowings   117   83     52   68   39
    Subordinated Notes Payable   560   581     610   630   628
    Other Long-Term Borrowings   11   11     11   3   3
    Total Interest Expense   8,235   8,640     9,117   9,497   8,465
    Net Interest Income   41,547   41,103     40,211   39,269   38,355
    Provision for Credit Losses   768   701     1,206   1,204   920
    Net Interest Income after Provision for Credit Losses   40,779   40,402     39,005   38,065   37,435
    NONINTEREST INCOME                    
    Deposit Fees   5,061   5,207     5,512   5,377   5,250
    Bank Card Fees   3,514   3,697     3,624   3,766   3,620
    Wealth Management Fees   5,763   5,222     4,770   4,439   4,682
    Mortgage Banking Revenues   3,820   3,118     3,966   4,381   2,878
    Other   1,749   1,516     1,641   1,643   1,667
    Total Noninterest Income   19,907   18,760     19,513   19,606   18,097
    NONINTEREST EXPENSE                    
    Compensation   26,248   26,108     25,800   24,406   24,407
    Occupancy, Net   6,793   6,893     7,098   6,997   6,994
    Other   5,660   8,781     10,023   9,038   8,770
    Total Noninterest Expense   38,701   41,782     42,921   40,441   40,171
    OPERATING PROFIT   21,985   17,380     15,597   17,230   15,361
    Income Tax Expense   5,127   4,219     2,980   3,189   3,536
    Net Income   16,858   13,161     12,617   14,041   11,825
    Pre-Tax (Income) Loss Attributable to Noncontrolling Interest   –   (71 )   501   109   732
    NET INCOME ATTRIBUTABLE TO
    COMMON SHAREOWNERS    		 $ 16,858 $ 13,090   $ 13,118 $ 14,150 $ 12,557
    PER COMMON SHARE                    
    Basic Net Income $ 0.99 $ 0.77   $ 0.77 $ 0.84 $ 0.74
    Diluted Net Income   0.99   0.77     0.77   0.83   0.74
    Cash Dividend $ 0.24 $ 0.23   $ 0.23 $ 0.21 $ 0.21
    AVERAGE SHARES                    
    Basic   17,027   16,946     16,943   16,931   16,951
    Diluted   17,044   16,990     16,979   16,960   16,969
     
    CAPITAL CITY BANK GROUP, INC.
    ALLOWANCE FOR CREDIT LOSSES (“ACL”)
    AND CREDIT QUALITY
    Unaudited                    
                         
        2025     2024  
    (Dollars in thousands, except per share data)   First Quarter   Fourth Quarter   Third Quarter   Second Quarter   First Quarter
    ACL – HELD FOR INVESTMENT LOANS                    
    Balance at Beginning of Period $ 29,251   $ 29,836   $ 29,219   $ 29,329   $ 29,941  
    Transfer from Other (Assets) Liabilities   –     –     –     –     (50 )
    Provision for Credit Losses   1,083     1,085     1,879     1,129     932  
    Net Charge-Offs (Recoveries)   600     1,670     1,262     1,239     1,494  
    Balance at End of Period $ 29,734   $ 29,251   $ 29,836   $ 29,219   $ 29,329  
    As a % of Loans HFI   1.12 %   1.10 %   1.11 %   1.09 %   1.07 %
    As a % of Nonperforming Loans   692.10 %   464.14 %   452.64 %   529.79 %   431.46 %
    ACL – UNFUNDED COMMITMENTS                    
    Balance at Beginning of Period   2,155   $ 2,522   $ 3,139   $ 3,121   $ 3,191  
    Provision for Credit Losses   (323 )   (367 )   (617 )   18     (70 )
    Balance at End of Period(1)   1,832     2,155     2,522     3,139     3,121  
    ACL – DEBT SECURITIES                    
    Provision for Credit Losses $ 8   $ (17 ) $ (56 ) $ 57   $ 58  
    CHARGE-OFFS                    
    Commercial, Financial and Agricultural $ 168   $ 499   $ 331   $ 400   $ 282  
    Real Estate – Construction   –     47     –     –     –  
    Real Estate – Commercial   –     –     3     –     –  
    Real Estate – Residential   8     44     –     –     17  
    Real Estate – Home Equity   –     33     23     –     76  
    Consumer   865     1,307     1,315     1,061     1,550  
    Overdrafts   570     574     611     571     638  
    Total Charge-Offs $ 1,611   $ 2,504   $ 2,283   $ 2,032   $ 2,563  
    RECOVERIES                    
    Commercial, Financial and Agricultural $ 75   $ 103   $ 176   $ 59   $ 41  
    Real Estate – Construction   –     3     –     –     –  
    Real Estate – Commercial   3     33     5     19     204  
    Real Estate – Residential   119     28     88     23     37  
    Real Estate – Home Equity   9     17     59     37     24  
    Consumer   481     352     405     313     410  
    Overdrafts   324     298     288     342     353  
    Total Recoveries $ 1,011   $ 834   $ 1,021   $ 793   $ 1,069  
    NET CHARGE-OFFS (RECOVERIES) $ 600   $ 1,670   $ 1,262   $ 1,239   $ 1,494  
    Net Charge-Offs as a % of Average Loans HFI(2)   0.09 %   0.25 %   0.19 %   0.18 %   0.22 %
    CREDIT QUALITY                    
    Nonaccruing Loans $ 4,296   $ 6,302   $ 6,592   $ 5,515   $ 6,798  
    Other Real Estate Owned   132     367     650     650     1  
    Total Nonperforming Assets (“NPAs”) $ 4,428   $ 6,669   $ 7,242   $ 6,165   $ 6,799  
                         
    Past Due Loans 30-89 Days $ 3,735   $ 4,311   $ 9,388   $ 5,672   $ 5,392  
    Classified Loans   19,194     19,896     25,501     25,566     22,305  
                         
    Nonperforming Loans as a % of Loans HFI   0.16 %   0.24 %   0.25 %   0.21 %   0.25 %
    NPAs as a % of Loans HFI and Other Real Estate   0.17 %   0.25 %   0.27 %   0.23 %   0.25 %
    NPAs as a % of Total Assets   0.10 %   0.15 %   0.17 %   0.15 %   0.16 %
                         
    (1)Recorded in other liabilities
    (2)Annualized
                         
    CAPITAL CITY BANK GROUP, INC.
    AVERAGE BALANCE AND INTEREST RATES
    Unaudited
                                                                           
        First Quarter 2025     Fourth Quarter 2024     Third Quarter 2024     Second Quarter 2024     First Quarter 2024  
    (Dollars in thousands)   Average
    Balance    		   Interest   Average
    Rate    		     Average
    Balance    		   Interest   Average
    Rate    		     Average
    Balance    		   Interest   Average
    Rate    		     Average
    Balance    		   Interest   Average
    Rate    		     Average
    Balance    		   Interest   Average
    Rate    		  
    ASSETS:                                                                      
    Loans Held for Sale $ 24,726   $ 490   8.04 % $ 31,047   $ 976   7.89 % $ 24,570   $ 720   7.49 % $ 26,281     517   5.26 % $ 27,314   $ 563   5.99 %
    Loans Held for Investment(1)   2,665,910     40,029   6.09     2,677,396     40,521   6.07     2,693,533     40,985   6.09     2,726,748     40,683   6.03     2,728,629     40,196   5.95  
                                                                           
    Investment Securities                                                                      
    Taxable Investment Securities   981,485     5,802   2.38     914,353     4,688   2.04     907,610     4,148   1.82     918,989     3,998   1.74     952,328     4,238   1.78  
    Tax-Exempt Investment Securities(1)   845     9   4.32     849     9   4.31     846     10   4.33     843     9   4.36     856     10   4.34  
                                                                           
    Total Investment Securities   982,330     5,811   2.38     915,202     4,697   2.04     908,456     4,158   1.82     919,832     4,007   1.74     953,184     4,248   1.78  
                                                                           
    Federal Funds Sold and Interest Bearing Deposits   320,948     3,496   4.42     298,255     3,596   4.80     256,855     3,514   5.44     262,419     3,624   5.56     140,488     1,893   5.42  
                                                                           
    Total Earning Assets   3,993,914   $ 49,826   5.06 %   3,921,900   $ 49,790   5.05 %   3,883,414   $ 49,377   5.06 %   3,935,280   $ 48,831   4.99 %   3,849,615   $ 46,900   4.90 %
                                                                           
    Cash and Due From Banks   73,467               73,992               70,994               74,803               75,763            
    Allowance for Credit Losses   (30,008 )             (30,107 )             (29,905 )             (29,564 )             (30,030 )          
    Other Assets   297,660               293,884               291,359               291,669               295,275            
                                                                           
    Total Assets $ 4,335,033             $ 4,259,669             $ 4,215,862             $ 4,272,188             $ 4,190,623            
                                                                           
    LIABILITIES:                                                                      
    Noninterest Bearing Deposits $ 1,317,425             $ 1,323,556             $ 1,332,305             $ 1,346,546             $ 1,344,188            
    NOW Accounts   1,249,955   $ 3,854   1.25 %   1,182,073   $ 3,826   1.29 %   1,145,544   $ 4,087   1.42 %   1,207,643   $ 4,425   1.47 %   1,201,032   $ 4,497   1.51 %
    Money Market Accounts   420,059     2,187   2.11     422,615     2,526   2.38     418,625     2,694   2.56     407,387     2,752   2.72     353,591     1,985   2.26  
    Savings Accounts   507,676     176   0.14     504,859     179   0.14     512,098     180   0.14     519,374     176   0.14     539,374     188   0.14  
    Time Deposits   170,367     1,166   2.78     167,321     1,235   2.94     163,462     1,262   3.07     160,078     1,226   3.08     138,328     924   2.69  
    Total Interest Bearing Deposits   2,348,057     7,383   1.28     2,276,868     7,766   1.36     2,239,729     8,223   1.46     2,294,482     8,579   1.50     2,232,325     7,594   1.37  
    Total Deposits   3,665,482     7,383   0.82     3,600,424     7,766   0.86     3,572,034     8,223   0.92     3,641,028     8,579   0.95     3,576,513     7,594   0.85  
    Repurchase Agreements   29,821     164   2.23     28,018     199   2.82     27,126     221   3.24     26,999     217   3.24     25,725     201   3.14  
    Other Short-Term Borrowings   7,437     117   6.39     6,510     83   5.06     2,673     52   7.63     6,592     68   4.16     3,758     39   4.16  
    Subordinated Notes Payable   52,887     560   4.23     52,887     581   4.30     52,887     610   4.52     52,887     630   4.71     52,887     628   4.70  
    Other Long-Term Borrowings   794     11   5.68     794     11   5.57     795     11   5.55     258     3   4.31     281     3   4.80  
    Total Interest Bearing Liabilities   2,438,996   $ 8,235   1.37 %   2,365,077   $ 8,640   1.45 %   2,323,210   $ 9,117   1.56 %   2,381,218   $ 9,497   1.60 %   2,314,976   $ 8,465   1.47 %
                                                                           
    Other Liabilities   65,211               73,130               73,767               72,634               68,295            
                                                                           
    Total Liabilities   3,821,632               3,761,763               3,729,282               3,800,398               3,727,459            
    Temporary Equity   –               6,763               6,443               6,493               7,150            
                                                                           
    SHAREOWNERS’ EQUITY:   513,401               491,143               480,137               465,297               456,014            
                                                                           
    Total Liabilities, Temporary Equity and Shareowners’ Equity $ 4,335,033             $ 4,259,669             $ 4,215,862             $ 4,272,188             $ 4,190,623            
                                                                           
    Interest Rate Spread     $ 41,591   3.69 %     $ 41,150   3.59 %     $ 40,260   3.49 %     $ 39,334   3.38 %     $ 38,435   3.43 %
                                                                           
    Interest Income and Rate Earned(1)       49,826   5.06         49,790   5.05         49,377   5.06         48,831   4.99         46,900   4.90  
    Interest Expense and Rate Paid(2)       8,235   0.84         8,640   0.88         9,117   0.93         9,497   0.97         8,465   0.88  
                                                                           
    Net Interest Margin     $ 41,591   4.22 %     $ 41,150   4.17 %     $ 40,260   4.12 %     $ 39,334   4.02 %     $ 38,435   4.01 %
                                                                           
    (1)Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate.
    (2)Rate calculated based on average earning assets.

    The MIL Network –