Banking – Page 352 – NewzIntel.com

MIL-OSI Europe: Results of the ECB Survey of Professional Forecasters for the first quarter of 2025

Source: European Central Bank

31 January 2025

Headline inflation expectations revised up for 2025 but otherwise unchanged; longer-term expectations (for 2029) remain at 2.0%
Expectations for HICP inflation excluding energy and food unchanged for 2025 and 2026; longer-term expectations revised down slightly to 1.9%
Real GDP growth expectations revised down by 0.2 and 0.1 percentage points for 2025 and 2026 respectively, but longer-term expectations unrevised
Unemployment rate expectations unchanged for 2025 and 2026, but longer-term expectations revised down slightly

Respondents’ expectations for headline inflation, as measured by the Harmonised Index of Consumer Prices (HICP), were 2.1% for 2025, 1.9% for 2026 and 2.0% for 2027. Expectations were revised up from the previous survey (conducted in the fourth quarter of 2024) by 0.2 percentage points for 2025 but unchanged for 2026. Expectations for core HICP inflation, which excludes energy and food, were unchanged for 2025 and 2026. Longer-term expectations for headline inflation were unchanged at 2.0%, while those for core HICP inflation were revised down slightly to 1.9%.

Respondents expected real GDP growth of 1.0% in 2025 and 1.3% in both 2026 and 2027. Compared with the previous survey, expectations were revised down by 0.2 percentage points for 2025 and 0.1 percentage points for 2026. Economic policy and political uncertainty contributed to these revisions. Longer-term growth expectations remained unchanged at 1.3%.

The expected profile of the unemployment rate was largely unchanged. Respondents continued to expect the unemployment rate to average 6.5% in 2025 but to decline to 6.4% in 2026, and then to fall further to 6.3% in 2027 and to remain there in the longer term.

MIL OSI Europe News –

January 31, 2025

MIL-OSI Europe: ECB Consumer Expectations Survey results – December 2024

Source: European Central Bank

31 January 2025

Compared with November 2024:

median consumer perceptions of inflation over the previous 12 months increased for the second consecutive month, as did median inflation expectations for the next 12 months, while median inflation expectations for three years ahead remained unchanged;
expectations for nominal income growth over the next 12 months remained unchanged, as did expectations for spending growth over the next 12 months;
expectations for economic growth over the next 12 months were unchanged, while the expected unemployment rate in 12 months’ time decreased;
expectations for growth in the price of homes over the next 12 months remained unchanged, as did expectations for mortgage interest rates 12 months ahead.

Inflation

The median rate of perceived inflation over the previous 12 months increased in December, for the second month in a row, to 3.5%, from 3.4% in November. Median expectations for inflation over the next 12 months increased, for the third month in a row, to 2.8% from 2.6%. Median expectations for inflation three years ahead were unchanged at 2.4% in December. Inflation expectations at the one-year and three-year horizons thus remained below the perceived past inflation rate. Uncertainty about inflation expectations over the next 12 months remained unchanged, for the fifth month in a row, at its lowest level since February 2022. While the broad evolution of inflation perceptions and expectations remained relatively closely aligned across income groups, expectations for lower income quintiles were slightly above those for higher income quintiles. Younger respondents (aged 18-34) continued to report lower inflation perceptions and expectations than older respondents (those aged 35-54 and 55-70), albeit to a lesser degree than in previous years. (Inflation results)

Income and consumption

Consumers’ nominal income growth expectations over the next 12 months remained unchanged at 1.1% in December. The income growth expectations of the lower income quintile increased more than the expectations of all other income quintiles, widening the positive gap with the other quintiles that had emerged over the previous months. Perceived nominal spending growth over the previous 12 months remained unchanged at 5.2% in December, as did expected nominal spending growth over the next 12 months at 3.5%. (Income and consumption results)

Economic growth and labour market

Economic growth expectations for the next 12 months were stable in December, standing at -1.3%. Expectations for the unemployment rate 12 months ahead decreased to 10.5%, from 10.6% in November. Consumers continued to expect the future unemployment rate to be only slightly higher than the perceived current unemployment rate (9.9%), implying a broadly stable labour market. The lowest income quintile continued to report the highest expected and perceived unemployment rates, as well as the lowest economic growth expectations. (Economic growth and labour market results)

Housing and credit access

Consumers expected the price of their home to increase by 2.9% over the next 12 months, which was unchanged from November. Households in the lowest income quintile continued to expect higher growth in house prices than those in the highest income quintile (3.5% and 2.7% respectively). Expectations for mortgage interest rates 12 months ahead also remained unchanged, at 4.6% – their level since October 2024. As in previous months, the lowest income households expected the highest mortgage interest rates 12 months ahead (5.2%), while the highest income households expected the lowest rates (4.0%). While the net percentage of households reporting a tightening (relative to those reporting an easing) in access to credit over the previous 12 months increased slightly, the net percentage of those expecting a tightening over the next 12 months declined. (Housing and credit access results)

The release of the Consumer Expectations Survey (CES) results for January is scheduled for 28 February 2025.

For media queries, please contact: Nicos Keranis, Tel: +49 172 758 7237

Notes

Unless otherwise indicated, the statistics presented in this press release refer to the 2% winsorised mean. For further details, see ECB Consumer Expectations Survey – Guide to the computation of aggregate statistics.
The CES is a monthly online survey of, currently, around 19,000 adult consumers (i.e. aged 18 or over) from 11 euro area countries: Belgium, Germany, Ireland, Greece, Spain, France, Italy, the Netherlands, Austria, Portugal and Finland. The main aggregate results of the CES are published on the ECB’s website every month. The results are used for policy analysis and complement other data sources used by the ECB.
Further information about the survey and the data collected is available on the CES web page. Detailed information can also be found in the following two publications: Bańkowska, K. et al., “ECB Consumer Expectations Survey: an overview and first evaluation”, Occasional Paper Series, No 287, ECB, Frankfurt am Main, December 2021; and Georgarakos, D. and Kenny, G., “Household spending and fiscal support during the COVID-19 pandemic: Insights from a new consumer survey”, Journal of Monetary Economics, Vol. 129, Supplement, July 2022, pp. S1-S14.
The survey results do not represent the views of the ECB’s decision-making bodies or staff.

MIL OSI Europe News –

January 31, 2025

MIL-OSI: EIB submits form 18-K/A Amendment No.11: EIB Group announces preliminary unaudited operational results 2024

Source: GlobeNewswire (MIL-OSI)

For immediate release

31 January 2025

EIB submits SEC Form 18-K/A Amendment No. 11

The European Investment Bank (EIB) has submitted its SEC Form 18-K/A Amendment No. 11.

To view the document, please go to: EDGAR Filing Documents for 0000950157-25-000089

The 18-K/A has also been posted on the EIB website: Amendment to the Annual Report 2023 (Form 18-K/A Amendment No 11)

ENDS

The MIL Network –

January 31, 2025

MIL-OSI: Shareholders’ Nomination Board’s proposal for the composition of Aktia Bank’s Board of Directors and their remuneration

Source: GlobeNewswire (MIL-OSI)

Aktia Bank Plc
Stock Exchange Release
31 January 2025 at 11.00 a.m.

Shareholders’ Nomination Board’s proposal for the composition of Aktia Bank’s Board of Directors and their remuneration

The Shareholders’ Nomination Board of Aktia Bank Plc has decided to present the following proposal to the Annual General Meeting 2025 of Aktia Bank:

The number of the members of the Board of Directors is proposed to be decreased from nine and set to seven.

The Shareholders’ Nomination Board proposes that of the present members of the Board of Directors, Joakim Frimodig, Carl Haglund, Maria Jerhamre Engström, Harri Lauslahti and Matts Rosenberg, based on their consent, be re-elected for a term continuing up until the end of the next Annual General Meeting. For more information on the Board members proposed to be re-elected, please see the company’s website at www.aktia.com. Ann Grevelius, Sari Pohjonen, Johannes Schulman and Lasse Svens have informed that they will not be available for re-election.

The Shareholders’ Nomination Board also proposes that Hanne Katrama and Sari Somerkallio are elected as new Board members for the same term, based on their consent. Further information on the new Board members proposed to be elected has been attached to this release and can be found closer to the Annual General Meeting on the company’s website www.aktia.com.

Should any of the candidates presented above not be available to be elected to the Board, the proposed number of Board members shall be decreased accordingly and the available candidates are proposed to be elected accordingly.

All the proposed persons are independent in relation to the company according to the definition of the Corporate Governance Code. Only Matts Rosenberg is not independent of a significant shareholder since he is the chair of the board of RG Partners Oy, the largest shareholder (10.13%) of Aktia Bank. In addition, Rosenberg is the CEO of of Rettig Oy Ab, which is the largest owner of RG Partners Oy.

All the proposed persons have informed that they intend, if they are elected, to elect Matts Rosenberg amongst them as Chair of the Board of Directors and to re-elect Joakim Frimodig as Deputy Chair.

Regarding the selection procedure for the members of the Board of Directors, the Shareholders’ Nomination Board recommends that shareholders take a position on the proposal as a whole at the General Meeting. This recommendation is based on the fact that at Aktia the Shareholders’ Nomination Board is separate from the Board of Directors and, in addition to ensuring that individual nominees for membership of the Board of Directors possess the required competences, it is also responsible for making sure that the proposed Board of Directors as a whole also has the best possible expertise and experience for the company and that the composition of the Board of Directors also meets other requirements set for credit institutions as well as the requirements of the Finnish Corporate Governance Code for listed companies.

The Nomination Board proposes that the remuneration for the Board of Directors for the term be unchanged from the current term and determined as follows:

Chair, EUR 75,000 (2024: EUR 75,000)
Deputy Chair, EUR 50,000 (2024: EUR 50,000)
member, EUR 40,000 (2024: EUR 40,000)

Annual remunerations for the Chairs of each Committee as well as meeting remunerations are proposed to be unchanged, meaning that it is proposed that the Chair of each Committee will further receive an annual remuneration of EUR 8,000. The proposed meeting remuneration for Board and Committee meetings is EUR 700 per attended meeting for each person (EUR 700 per attended meeting for each person in 2024). If participation in a board meeting requires travelling outside the board member’s country of residence, the remuneration for board meeting is EUR 1,400 per attended meeting for each person (EUR 1,400 per attended meeting for each person in 2024). The remuneration of the members of the Board is not treated as income forming basis for earnings-related pension. Compensation for travel and accommodation expenses as well as a daily allowance is paid in line with the Finnish Tax Administration’s guidelines and the travel instructions of the company.

The Nomination Board proposes that approximately 40% of the annual remuneration (gross amount) shall be paid to the members in the form of Aktia shares. The company will on account of the Board members acquire Aktia shares on the market to the price that is formed through public trading or it will transfer the company’s own shares to the Board members and the rest of the annual remuneration payable is paid in cash. The shares are acquired or transferred during a two-week time period from the day following the company’s interim report for 1 January 2025–31 March 2025 is published or as soon as possible in accordance with applicable legislation. If the remuneration can’t be paid in shares, it can be paid in cash entirely. The company will be responsible for all expenses and the possible transfer tax for acquiring or transferring the shares.

The proposals of the Nomination Board will be included in the summons of the Annual General Meeting.

Chair of the Shareholders’ Nomination Board of Aktia Bank is Gisela Knuts (appointed by the Pension Insurance Company Veritas and the companies controlled by Erkki Etola), members are Georg Ehrnrooth (appointed by RG Partners Oy), Stefan Wallin (appointed by the Åbo Akademi University Foundation) and Johan Hammarén (appointed by Oy Hammarén & Co Ab), and Lasse Svens, Chair of the Board of Directors of Aktia Bank acts as an expert.

Aktia Bank Plc

Further information:
Gisela Knuts, Chair of the Nomination Board, tel. +358 40 769 8265

Distribution:
Nasdaq Helsinki Ltd
Mass media
www.aktia.com

Aktia is a Finnish asset manager, bank and life insurer that has been creating wealth and wellbeing from one generation to the next for 200 years. We serve our customers in digital channels everywhere and face-to-face in our offices in the Helsinki, Turku, Tampere, Vaasa and Oulu regions. Our award-winning asset management business sells investment funds internationally. We employ approximately 850 people around Finland. Aktia’s assets under management (AuM) on 30 September 2024 amounted to EUR 14.3 billion, and the balance sheet total was EUR 12.0 billion. Aktia’s shares are listed on Nasdaq Helsinki Ltd (AKTIA). aktia.com.

Attachment

Attachment_Information_on_proposed_new_Board_members_for_Aktia_Bank

The MIL Network –

January 31, 2025

MIL-OSI Economics: Quality, simplicity and transparency

Source: Bank for International Settlements

I would like to start by thanking the organisers for the invitation to speak at this important symposium.

A resilient banking system and financial stability more broadly are largely driven by:

Bank risk management and governance practices;
The quantity and quality of capital and liquidity buffers;
The effectiveness of bank supervision; and
The effectiveness of market discipline.

Given time constraints, my brief statement will focus on the role of global capital and liquidity standards. That is not to underplay the critical importance of the other factors. In this regard, the Basel Committee has an ongoing work programme focused on strengthening supervisory effectiveness.¹ It also remains the case that the most important source of banks’ financial and operational strength comes from their own risk management and governance arrangement.² And the Committee will continue to strengthen Pillar 3 disclosures and promote market discipline to help stakeholders adequately assess banks’ risk profiles.

Minimum international standards

According to the BIS International Banking Statistics, banks’ foreign claims and other exposures totalled USD 45 trillion at the end of the second quarter of 2024.³ Given the significant global nature of banking, there is a need to have a global minimum level-playing field.

To promote such a global level playing field, the Basel Committee sets minimum standards for internationally active banks. Consistent with this approach, many jurisdictions choose to apply more stringent requirements than the minimum Basel standards. In addition, most jurisdictions apply some level of proportionality – that is simpler rules are applied to non-internationally active banks.⁴

Globally consistent minimum regulatory standards seek to limit regulatory fragmentation, regulatory arbitrage and a “race to the bottom” which dilutes the resilience of banks. While weaker standards can promote growth in the short-run, they typically lead to excessive risk taking, and the build-up of excessive leverage, which ultimately reverses and results in a sharp contraction in credit, bank failures, broader financial instability and large losses in economic output. In short – a race to the bottom is in no one’s long-term interest – in particular banks.⁵

Minimum standards for capital and liquidity regulation play a critical role in ensuring the soundness of individual banks and overall financial stability. Rigorous regulatory standards also help to promote economic growth by ensuring lending is sustainable and can be maintained when shocks hit the system, or when individual banks incur losses.⁶

Given the importance of globally consistent minimum standards, implementation of the Basel III regulatory framework remains the key priority for the Basel Committee. While there have been some delays in implementation, most of the outstanding Basel III standards are now in force in around 70% of BCBS member jurisdictions.⁷

Calibration of international standards

It is important to note that international capital and liquidity standards are not calibrated to produce zero bank failures. Despite the significant strengthening of bank capital and liquidity ratios since the Great Financial Crisis, banks remain highly leveraged firms. Capital and liquidity buffers can absorb most, but certainly not all shocks that a bank may face. And history has shown that the frequency and severity of such shocks have been far greater than what would be expected based on banks’ internal models.⁸ All this points to the importance of bank risk management and governance, effective supervisory oversight, and implementation of Basel III which significantly reduces model risk.

On the issue on calibration of regulatory standards it is important to also keep in mind that claims of negative effects of higher capital and liquidity regulation on bank lending and economic growth have not materialised. Rather, since the GFC we have seen that more highly capitalised banks are not only more resilient, they are also more profitable and lend more through the cycle.⁹

The “Swiss Finish”

I would like to conclude by making a general point about the so-called “Swiss Finish”. Having lived in Switzerland for nearly twenty years, I have come to understand this as, among other things, an approach that favours quality over quantity.

I think the same principle should apply to how we think about regulatory rules. If given a choice I would favour quality over quantity. In my view it is better to favour high quality capital over lower quality capital (even if that means lower reported capital ratios). Additionally, I have a general preference for simplicity over complexity, and being transparent.

These three principles shape my personal views on the policy issues we will discuss during the panel. So whether we are thinking about the treatment of capital within a banking group, the role of Additional Tier 1 regulatory instruments or other policy issues, I am generally going to favour:

quality over quantity;
simplicity over complexity; and where possible
being transparent.

Thank you. I will stop there and look forward to the discussion.

References

Basel Committee on Banking Supervision (2021): “Proportionality in bank regulation and supervision”, July.

— (2022a): “Evaluation of the impact and efficacy of the Basel III reforms”, December.

— (2022b): “Evaluation of the impact and efficacy of the Basel III reforms – Annex”, December.

— (2023): “Report on the 2023 banking turmoil”, October.

— (2024): “Basel Committee reports member jurisdictions making progress in implementing Basel III”, press release, 2 October.

Bank for International Statistics (2025): “Locational banking statistics”, see Table B4: here Consolidated banking statistics publication table: BIS,CBS_B4,1.0.

Behn, M, R Hasselmann and V Vig (2022): “The limits of model-based regulation”, Journal of Finance, vol 77(3), June.

Caparusso, J, U Lewrick and N Tarashev (2023): “Profitability, valuation and resilience of global banks – a tight link” Bank for International Settlements Working Paper No 1144.

Thedéen, E (2024): “Charting the course: prudential regulation and supervision for smooth sailing”.

¹ BCBS (2023).

MIL OSI Economics –

January 31, 2025

MIL-OSI: Jyske Realkredit explores the possibilities of issuing a new euro denominated benchmark covered bond

Source: GlobeNewswire (MIL-OSI)

To Nasdaq Copenhagen A/S 31^th of January 2025
Announcement no. 9/2025

Jyske Realkredit explores the possibilities of issuing a new euro denominated benchmark covered bond

Jyske Realkredit has mandated Jyske Bank, Danske Bank, Commerzbank, TD Securities and DekaBank to explore the possibilities of issuing a new euro denominated covered bond out of capital centre E. A benchmark transaction is expected to be launched.

Questions may be addressed to Anders Lund Hansen, Executive Vice President, tel. (+45) 89 89 92 20 or Christian Bech-Ravn, Head of Investor Relations, tel. (+45) 89 89 92 25.

The information will also be available on Jyske Realkredit’s web site at jyskerealkredit.com.

Yours sincerely

Jyske Realkredit A/S

Please observe that the Danish version of this announcement prevails.

The MIL Network –

January 31, 2025

MIL-OSI Banking: Swiss Partners AG: BaFin warns against swissprimefx.com website and indicates possibility of identity theft

Source: Bundesanstalt für Finanzdienstleistungsaufsicht – In English

The Federal Financial Supervisory Authority (BaFin) warns against offers on the website swissprimefx.com. According to the findings of the supervisory authority, Swiss Partners AG, Vaduz, Liechtenstein, offers financial and investment services there without permission.

BaFin would like to point out that the two companies, swisspartners AG and swisspartners Versicherung AG, which are registered with both the Liechtenstein Financial Market Authority and BaFin, have no connection with Swiss Partners AG or the swissprimefx.com website. This constitutes identity theft.

Anyone offering financial and investment services in Germany requires the permission of BaFin. However, some companies offer such services without the necessary permission. You can find information on whether a particular company is authorized by BaFin in the company database.

The information provided by BaFin is based on Section 37 (4) of the German Banking Act (KWG), Section 10 (7) of the German Crypto Markets Supervision Act (KMAG).

Please be aware:

BaFin, the German Federal Criminal Police Office (Bundeskriminalamt – BKA) and the German state criminal police offices (Landeskriminalämter) recommend that consumers seeking to invest money online should exercise the utmost caution and do the necessary research beforehand in order to identify fraud attempts at an early stage.

MIL OSI Global Banks –

January 31, 2025

MIL-OSI: WOOD & Co Reinitiated Coverage of Šiaulių Bankas

Source: GlobeNewswire (MIL-OSI)

31 January 2025. WOOD & Co, a leading regional investment bank in Emerging Europe, has reinitiated independent equity research coverage of Šiaulių Bankas (SAB1L). The initiation report includes an analysis suggesting a target price of EUR 0.96.

WOOD & Company Financial Services teams, located in Warsaw, Prague, Bucharest, Bratislava, Milan and London are highly experienced, have deep roots in Emerging Europe, providing wide range of products and services for investors, including Equity Sales, Electronic Trading, DMA and FIX, Equity Structured Products, Equity Research and Equity Capital Markets.

Šiaulių Bankas stock is also covered by Swedbank, Estonian investment research firm Enlight Research, Norwegian investment bank Norne Securities and Erste Group Research. The analysts’ evaluations are available to investors on Šiaulių Bankas IR website.

If you would like to receive Šiaulių Bankas news for investors directly to your inbox, subscribe to our newsletter.

Additional information:
Tomas Varenbergas
Head of Investment Management Division
tomas.varenbergas@sb.lt

The MIL Network –

January 31, 2025

MIL-OSI Banking: Pension sector almost regains loss from 2022

Source: Danmarks Nationalbank

Insurance and pension

31 January 2025Statistics period: December 2024

Danish insurance and pension companies achieved a return of kr. 344 billion in 2024. Overall, the nominal return has been kr. 675 billion over the past two years, which means that the loss in 2022 has almost been recovered. A loss that was mainly due to capital losses in the financial markets due to, among other things, inflation, and interest rate increases. The high return in 2024 is primarily driven by the gains on the US stock market, and more than half of the pension return in 2024 came from listed US stocks; in particular, shares in technology companies such as NVIDIA, Apple and Amazon contributed with significant gains. Investments in the US account for a quarter of total pension investments and thus have a significant impact on Danish pension returns. The positive returns benefit not only pension customers, but also government finances through increased tax revenues from the so-called pension return tax, PAL tax.

The pension sector achieved a return of kr. 344 billion in 2024

Note:

Danish insurance and pension companies’ returns on investments 2018-2024. Life insurance companies and pension funds as well as ATP are included in the statistics. Find chart data in the Statbank.

MIL OSI Global Banks –

January 31, 2025

MIL-OSI Economics: Result of the Daily Variable Rate Repo (VRR) auction held on January 31, 2025

Source: Reserve Bank of India

Tenor	3-day
Notified Amount (in ₹ crore)	1,00,000
Total amount of bids received (in ₹ crore)	1,28,059
Amount allotted (in ₹ crore)	1,00,013
Cut off Rate (%)	6.51
Weighted Average Rate (%)	6.52
Partial Allotment Percentage of bids received at cut off rate (%)	51.04

Ajit Prasad
Deputy General Manager
(Communications)

Press Release: 2024-2025/2049

MIL OSI Economics –

January 31, 2025

MIL-OSI Banking: Result of Underwriting Auction conducted on January 31, 2025

Source: Reserve Bank of India

In the underwriting auction conducted on January 31, 2025, for Additional Competitive Underwriting (ACU) of the undernoted Government securities, the Reserve Bank of India has set the cut-off rates for underwriting commission payable to Primary Dealers as given below:

Nomenclature of the Security	Notified Amount (₹ crore)	Minimum Underwriting Commitment (MUC) Amount (₹ crore)	Additional Competitive Underwriting Amount Accepted (₹ crore)	Total Amount underwritten (₹ crore)	ACU Commission Cut-off rate (paise per ₹100)
6.79% GS 2031	10,000	5,019	4,981	10,000	0.06
6.79% GOI SGrB 2034	5,000	2,520	2,480	5,000	0.70
7.34% GS 2064	15,000	7,518	7,482	15,000	0.18
Auction for the sale of securities will be held on January 31, 2025.

Ajit Prasad
Deputy General Manager
(Communications)

Press Release: 2024-2025/2048

MIL OSI Global Banks –

January 31, 2025

MIL-OSI Economics: Money Market Operations as on January 30, 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)	5,45,691.61	6.56	4.00-6.95
I. Call Money	14,941.07	6.58	5.10-6.65
II. Triparty Repo	3,85,768.80	6.55	6.49-6.75
III. Market Repo	1,43,070.44	6.59	4.00-6.95
IV. Repo in Corporate Bond	1,911.30	6.76	6.75-6.80
B. Term Segment
I. Notice Money**	126.94	6.43	5.90-6.65
II. Term Money^@@	1,141.50	–	6.70-7.50
III. Triparty Repo	1,585.00	6.54	6.50-6.57
IV. Market Repo	2,040.99	6.61	6.60-6.75
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	Thu, 30/01/2025	1	Fri, 31/01/2025	1,17,354.00	6.51
(b) Reverse Repo
3. MSF^#	Thu, 30/01/2025	1	Fri, 31/01/2025	3,099.00	6.75
4. SDF^Δ#	Thu, 30/01/2025	1	Fri, 31/01/2025	69,667.00	6.25
5. Net liquidity injected from today’s operations [injection (+)/absorption (-)]*				50,786.00
II. Outstanding Operations
1. Fixed Rate
2. Variable Rate^&
(I) Main Operation
(a) Repo	Fri, 24/01/2025	14	Fri, 07/02/2025	1,62,096.00	6.51
(b) Reverse Repo
(II) Fine Tuning Operations
(a) Repo
(b) Reverse Repo
3. MSF^#
4. SDF^Δ#
D. Standing Liquidity Facility (SLF) Availed from RBI^$				9,556.71
E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*				1,71,652.71
F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*				2,22,438.71
G. Cash Reserves Position of Scheduled Commercial Banks
(i) Cash balances with RBI as on		January 30, 2025		9,18,934.39
(ii) Average daily cash reserve requirement for the fortnight ending		February 07, 2025		9,12,544.00
H. Government of India Surplus Cash Balance Reckoned for Auction as on^¥		January 30, 2025		1,17,354.00
I. Net durable liquidity [surplus (+)/deficit (-)] as on		January 10, 2025		-40,102.00
^@ 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.
Ajit Prasad Deputy General Manager (Communications)
Press Release: 2024-2025/2047

MIL OSI Economics –

January 31, 2025

MIL-OSI Economics: Optimizing Health Financing: Digital Solutions Against Health Care Inefficiencies, Waste, Abuse, and Fraud

Source: Asia Development Bank

Addressing fraud, waste, and abuse (FWA) remains a significant challenge of maintaining the efficiency and effectiveness of health care systems. This report explores the complexities of identifying and managing FWA within health systems, drawing on extensive quantitative and qualitative research conducted from April 2023 to March 2024. The findings highlight the necessity of robust government actions, advanced analytics, and innovative technology to detect and manage FWA effectively.

MIL OSI Economics –

January 31, 2025

MIL-OSI Economics: Monitoring Business Cycle Fluctuations in Asia

Source: Asia Development Bank

The paper explains how the index can monitor monthly business cycles in Asian economies using updated economic indicators across six categories: consumption, investment, trade, government, financial, and external sectors. It shows that machine learning algorithms accurately track output gap movements, offering a robust tool for monitoring economic fluctuations.

MIL OSI Economics –

January 31, 2025

MIL-OSI New Zealand: Federated Farmers – Lend, don’t lecture – Feds support Shane Jones’ banking crackdown

Source: Federated Farmers

Federated Farmers welcomes Resources and Regional Development Minister Shane Jones’ efforts to hold banks accountable when they stray from their core function – lending money.

Jones is spearheading a member’s bill seeking to ensure financial institutions focus on their legal and social responsibility to provide credit rather than engaging in selective lending based on ideology.

“We’re right behind that. Banks exist to lend, not to lecture,” Federated Farmers banking spokesperson Richard McIntyre says.

“It’s the job of elected governments to determine which businesses are lawful -not a handful of banking executives imposing their own moral compass.

“Yet we’re seeing banks decline credit to legal businesses simply because they don’t align with corporate PR strategies.”

One threat identified by Federated Farmers is to petrol stations, a vital lifeline for rural communities and isolated parts of New Zealand.

Internal BNZ documents provided to Federated Farmers in late 2024 clearly state there is to be no new lending to petrol stations, and all existing debt needs to be repaid by 2030.

“If banks are unwilling to provide lending to pay for things like upgrades, expansion or compliance, petrol stations will just disappear,” McIntyre says.

“It’s ideologically driven nonsense. Do they not think farmers and rural communities will still need petrol in five years?

“If a business is lawful, creditworthy, and can service a loan, then why should it be blacklisted by bank officials who jetted off to Glasgow together to sign an agreement on joint lending criteria?”

Banks hold a social licence, and with that comes an obligation to serve their customers fairly, not to dictate how they should run their businesses, McIntyre says.

Federated Farmers has been at the forefront of the fight against banking overreach in recent years.

The farming advocacy group has led the charge for a government inquiry into banking competition, and has been working with Ministers to push for a review of bank capital requirements that penalise the agriculture sector.

The federation also laid a complaint late last year with the Commerce Commission about the Net Zero Banking Alliance and its potential anti-competitive behaviour.

“We continue to monitor and put pressure on banks to be fair to their customers, and we’re pleased to support Minister Jones’ proposal.

“Banks should focus on banking, so farmers can focus on farming.

“We expect this Bill to include provisions ensuring lending decisions are based on financial criteria rather than emissions targets,” McIntyre says.

“Federated Farmers will continue to advocate for rural businesses and fair access to credit, so banking policies support the economy rather than ideology.”

MIL OSI New Zealand News –

January 31, 2025

MIL-OSI: Preferred Bank Announces Fire Relief Donations

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, Jan. 30, 2025 (GLOBE NEWSWIRE) — Preferred Bank (NASDAQ: PFBC), (the “Bank”) one of the larger independent California banks, today reported that the Board of Directors had approved a significant donation to benefit fire relief efforts on the Los Angeles area.

Li Yu, Chairman and CEO, commented, “The recent wildfires in Southern California have been devastating and one of the worst disasters in the history of Southern California. As a company headquartered in the heart of Los Angeles, the fires have been particularly impactful for many of our associates, clients and communities. To support recovery efforts, the Board and executive management have authorized a donation in the amount of $250,000 to be split among four organizations that provide resources and relief to those impacted.

Those Organizations are:

Tzu-Chi – USA
Pasadena Community Foundation
Alliance for a Better Community
Los Angeles Fire Department Foundation

“In addition, the Bank is also going to match any contribution any employee has already made, or will make, to the wildfire relief efforts on top of the $250,000 donation. The amount the Bank matches will be awarded to the organization the employee donated to. We are pleased to be able to make this contribution and look forward to helping the impacted communities of Southern California rebuild.”

About Preferred Bank

Preferred Bank is one of the larger independent commercial banks headquartered in California. The Bank is chartered by the State of California, and its deposits are insured by the Federal Deposit Insurance Corporation, or FDIC, to the maximum extent permitted by law. The Bank conducts its banking business from its main office in Los Angeles, California, and through twelve full-service branch banking offices in California (Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine (2), Diamond Bar, Pico Rivera, Tarzana and San Francisco (2)), one branch in Flushing, New York and a branch office in the Houston, Texas suburb of Sugar Land. In addition, the Bank also operates a loan production office in Sunnyvale, California. Preferred Bank offers a broad range of deposit and loan products and services to both commercial and consumer customers. The Bank provides personalized deposit services as well as real estate finance, commercial loans and trade finance to small and mid-sized businesses, entrepreneurs, real estate developers, professionals and high net worth individuals. Although originally founded as a Chinese-American Bank, Preferred Bank now derives most of its customers from the diversified mainstream market but does continue to benefit from the significant migration to California of ethnic Chinese from China and other areas of East Asia.

AT THE COMPANY:		AT FINANCIAL PROFILES:
Edward J. Czajka		Jeffrey Haas
Executive Vice President		General Information
Chief Financial Officer		(310) 622-8240
(213) 891-1188		PFBC@finprofiles.com

The MIL Network –

January 31, 2025

MIL-OSI Australia: Review of the Compensation Scheme of Last Resort

Source: Australian Treasurer

The Albanese Government is directing the Treasury to undertake a comprehensive review of the Compensation Scheme of Last Resort (CSLR) to ensure victims of financial misconduct have a sustainable avenue for redress.

This is all about ensuring the scheme remains sustainable into the future for consumers and for the industry.

Taking care of consumers is the focus of the scheme, it’s the focus of the Albanese Government and it will be the focus of this review.

At the same time, Australians need access to affordable high quality financial advice.

The advice industry was abandoned and decimated by the former Coalition government as the number of advisers has fallen from 28,000 in January 2019 to less than 16,000 today. This raised costs on advisers and the cost of advice for Australians.

The government has taken action to rebuild the financial advice industry. In our first 12 months, we introduced legislation to establish a pathway for experienced advisers to continue providing financial advice, which has retained over 4,000 advisers that could otherwise have exited the industry.

We are also undertaking the most significant reform to the financial advice laws in over a decade through our Delivering Better Financial Outcomes package which will cut red tape, reform statements of advice and help advisers use their professional judgment to better support clients.

As recommended by the Ramsay Review, the CSLR is fully funded by industry.

New data from the operator of the CSLR shows that industry will have to provide $78 million to compensate victims in 2025–26, largely as a result of the liquidation of financial advisory firm United Global Capital Pty Ltd.

Ensuring the scheme is sustainably funded will be an important focus of the review.

The government legislated the CSLR in 2023, after the former government failed to take action despite the scheme being a recommendation of the 2017 Ramsay Review and the Banking Royal Commission.

The CSLR ensures victims can access some compensation in circumstances of genuine last resort where misconduct has occurred in the provision of personal financial advice, credit intermediation, securities dealing and credit provision.

While industry has provided broad support for the CSLR, it’s important that there is confidence that the scheme is meeting its objective in a way that is sustainable for both companies and consumers.

Whether it’s our reforms to get a fair go for families and farmers at the checkout or our big and broad competition agenda to ease the cost of living for Australians, taking care of consumers is one of the Albanese Government’s highest priorities.

We’ll continue to do everything we can to safeguard consumers and ensure all Australians have access to affordable and quality financial advice.

Further information, including the terms of reference, can be found on the Treasury website.

MIL OSI News –

January 31, 2025

MIL-OSI: Alpine Banks of Colorado announces financial results for fourth quarter and year end 2024

Source: GlobeNewswire (MIL-OSI)

GLENWOOD SPRINGS, Colo., Jan. 30, 2025 (GLOBE NEWSWIRE) — Alpine Banks of Colorado (OTCQX: ALPIB) (“Alpine” or the “Company”), the holding company for Alpine Bank (the “Bank”), today announced results (unaudited) for the fourth quarter and year ended December 31, 2024. The Company reported net income of $13.8 million, or $128.92 per basic Class A common share and $0.86 per basic Class B common share, for fourth quarter 2024.

Highlights in fourth quarter 2024 and the year ended December 31, 2024, include:

Basic earnings per Class A common share increased 1.4%, or $1.76, during fourth quarter 2024.
Basic earnings per Class A common share decreased 12.0%, or $63.32, during the 12 months ended December 31, 2024.
Basic earnings per Class B common share increased 1.4%, or $0.01, during fourth quarter 2024.
Basic earnings per Class B common share increased 12.0%, or $0.42, during the 12 months ended December 31, 2024.
Net interest margin for fourth quarter 2024 was 3.18%, compared to 2.98% in third quarter 2024, and 2.84% in fourth quarter 2023.

“The fourth quarter of 2024 continued a positive trend of growing customer-based deposits at a lower cost,” said Glen Jammaron, Alpine Banks of Colorado President and Vice Chairman. “During 2024, Alpine grew customer deposits by 7.9% while simultaneously reducing brokered deposits by over 50%. Deposit interest expense decreased by over 10% in fourth quarter 2024, leading the way to a 20-basis point improvement in our net interest margin from third quarter 2024 to fourth quarter 2024. The full team at Alpine looks forward to continued success in 2025.”

Net Income
Net income for fourth quarter 2024 and third quarter 2024 was $13.8 million and $13.6 million, respectively. Interest income increased $0.2 million in fourth quarter 2024 compared to third quarter 2024, primarily due to increases in yields and volumes in the securities portfolio, increased rates on due from banks and increased volume in the loan portfolio. These increases were slightly offset by decreased yields on the loan portfolio and decreased balances in due from banks. Interest expense decreased $2.8 million in fourth quarter 2024 compared to third quarter 2024, primarily due to decreased interest rates on the deposit portfolio and the Company’s trust preferred securities. Noninterest income decreased $0.5 million in fourth quarter 2024 compared to third quarter 2024, primarily due to decreases in other income partially offset by increases in earnings on life insurance. Noninterest expense increased $2.2 million in fourth quarter 2024 compared to third quarter 2024, due to increases in other expenses, salary and employee benefit expenses and furniture and fixture expenses slightly offset by decreases in occupancy expenses. A provision for loan losses of $1.5 million was recorded in fourth quarter 2024 compared to a $1.2 million provision recorded in third quarter 2024.

Net income for the twelve months ended December 31, 2024, and 2023, was $49.7 million and $57.0 million, respectively. Interest income increased $23.4 million in 2024 compared to 2023, primarily due to increases in volume in the loan portfolio and balances due from banks, along with increases in yields on the loan portfolio, the securities portfolio, and balances due from banks. These increases were slightly offset by a decrease in volume in the securities portfolio. Interest expense increased $31.6 million in 2024 compared to 2023, primarily due to increases in costs on the Company’s trust preferred securities, other borrowings, and cost of deposits, along with increases in volume in deposit balances. These increases were partially offset by a decrease in the volume of other borrowings. Noninterest income increased $4.0 million in 2024 compared to 2023, primarily due to increases in earnings on bank-owned life insurance, service charges on deposit accounts and other income. Noninterest expense increased $6.1 million in 2024 compared to 2023, due to increases in salary and employee benefit expenses and occupancy expenses. These increases were partially offset by decreases in furniture and fixture expenses and other expenses. Provision for loan losses decreased $1.5 million in 2024 compared to 2023 due to loan portfolio declines and a small volume of loan charge-offs.

Net interest margin increased from 2.98% to 3.18% from third quarter 2024 to fourth quarter 2024. Net interest margin for the twelve months ended December 31, 2024, and 2023, was 2.96% and 3.09%. respectively.

Assets
Total assets decreased $53.7 million, or 0.8%, to $6.52 billion as of December 31, 2024, compared to September 30, 2024, primarily due to decreased cash and due from banks and investment securities balances, partially offset by increased loans receivable. Total assets increased $105.4 million, or 1.6%, from December 31, 2023, to December 31, 2024. The Alpine Bank Wealth Management* division had assets under management of $1.37 billion on December 31, 2024, an increase of 19.0% compared to $1.15 billion on December 31, 2023.

Loans
Loans outstanding as of December 31, 2024, totaled $4.0 billion. The loan portfolio increased $28.9 million, or 0.7%, during fourth quarter 2024 compared to September 30, 2024. This increase was driven by a $30.5 million increase in residential real estate loans, a $22.2 million increase in commercial real estate loans, a $2.4 million increase in consumer loans and a $0.2 million increase in other loans, partially offset by a $20.4 million decrease in commercial and industrial loans and a $5.5 million decrease in real estate construction loans.

Loans outstanding as of December 31, 2024, reflected an increase of $13.6 million, or 0.3%, compared to loans outstanding of $4.0 billion on December 31, 2023. This increase was driven by a $56.7 million increase in residential real estate loans, a $26.1 million increase in commercial real estate loans, a $7.6 million increase in commercial and industrial loans, a $6.0 million increase in consumer loans and a $0.4 million increase in other loans partially offset by a $83.0 million decrease in real estate construction loans.

Deposits
Total deposits decreased $47.1 million, or 0.8%, to $5.8 billion during fourth quarter 2024 compared to September 30, 2024, primarily due to a $46.8 million decrease in demand deposits and a $92.6 million decrease in certificate of deposit accounts. This decrease was partially offset by a $58.9 million increase in money fund accounts, and a $34.2 million increase in interest-bearing checking accounts. Brokered certificates of deposit decreased 25.9% from $330.7 million on September 30, 2024, to $245.0 million on December 31, 2024. Noninterest-bearing demand accounts comprised 30.2% of all deposits on December 31, 2024, compared to 30.7% on September 30, 2024.

Total deposits of $5.8 billion on December 31, 2024, reflected an increase of $121.5 million, or 2.1%, compared to total deposits of $5.7 billion on December 31, 2023. This increase was due to a $321.9 million increase in money market accounts and an $11.1 million increase in demand deposits, partially offset by a $180.4 million decrease in certificate of deposit accounts, an $8.0 million decrease in interest-bearing checking accounts, and a $23.0 million decrease in savings accounts. Brokered certificates of deposit decreased 53.9% from $531.0 million on December 31, 2023, to $245.0 million on December 31, 2024. Noninterest-bearing demand accounts comprised 30.2% of all deposits on December 31, 2024, compared to 30.6% on December 31, 2023.

Capital
The Bank continues to be designated as a “well capitalized” institution as its capital ratios exceed the minimum requirements for this designation. As of December 31, 2024, the Bank’s Tier 1 Leverage Ratio was 9.75%, Tier 1 Risk-Based Capital Ratio was 14.22%, and Total Risk-Based Capital Ratio was 15.37%. On a consolidated basis, the Company’s Tier 1 Leverage Ratio was 9.41%, Tier 1 Risk-Based Capital Ratio was 13.72%, and Total Risk-Based Capital Ratio was 15.98% as of December 31, 2024.

Book value per share on December 31, 2024, was $4,740.61 per Class A common share and $31.60 per Class B common share, a decrease of $46.96 per Class A common share and a decrease of $0.31 per Class B common share from September 30, 2024, respectively.

Each Class A common share is entitled to one vote per share. Except as otherwise provided by the Colorado Business Corporation Act, each Class B common share has no voting rights.

Dividends
Each Class B common share has dividend and distribution rights equal to one-one hundred and fiftieth (1/150^th) of such rights of one Class A common share. Therefore, each one Class A common share is equivalent to 150 Class B common shares for purposes of the payment of dividends.

During fourth quarter 2024, the Company paid cash dividends of $30.00 per Class A common share and $0.20 per Class B common share. On January 9, 2025, the Company declared cash dividends of $31.50 per Class A common share and $0.21 per Class B common share payable on January 27, 2025, to shareholders of record on January 20, 2025.

About Alpine Banks of Colorado
Alpine Banks of Colorado, through its wholly owned subsidiary Alpine Bank, is a $6.5 billion, independent, employee-owned organization founded in 1973 with headquarters in Glenwood Springs, Colorado. Alpine Bank employs 890 people and serves 170,000 customers with personal, business, wealth management*, mortgage, and electronic banking services across Colorado’s Western Slope, mountains and Front Range. Alpine Bank has a five-star rating – meaning it has earned a superior performance classification – from BauerFinancial, an independent organization that analyzes and rates the performance of financial institutions in the United States. Shares of the Class B non-voting common stock of Alpine Banks of Colorado trade under the symbol “ALPIB” on the OTCQX^® Best Market. Learn more at www.alpinebank.com.

*Alpine Bank Wealth Management services are not FDIC insured, may lose value, and are not guaranteed by the Bank.

Contacts:	Glen Jammaron President and Vice Chairman Alpine Banks of Colorado 2200 Grand Avenue Glenwood Springs, CO 81601 (970) 384-3266	Eric A. Gardey Chief Financial Officer Alpine Banks of Colorado 2200 Grand Avenue Glenwood Springs, CO 81601 (970) 384-3257

A note about forward-looking statements
This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “reflects,” “believes,” “can,” “would,” “should,” “will,” “estimates,” “looks forward to,” “continues,” “expects” and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements we make regarding our evaluation of macro-environment risks, Federal Reserve rate management, and trends reflecting things such as regulatory capital standards and adequacy. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward- looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statement include, but are not limited to:

The ability to attract new deposits and loans;
Demand for financial services in our market areas;
Competitive market-pricing factors;
Changes in assumptions underlying the establishment of allowances for loan losses and other estimates;
Effects of future economic, business and market conditions, including higher inflation;
Adverse effects of public health events, such as the COVID-19 pandemic, including governmental and societal responses;
Deterioration in economic conditions that could result in increased loan losses;
Actions by competitors and other market participants that could have an adverse impact on expected performance;
Risks associated with concentrations in real estate-related loans;
Risks inherent in making loans, such as repayment risks and fluctuating collateral values;
Market interest rate volatility, including changes to the federal funds rate;
Stability of funding sources and continued availability of borrowings;
Geopolitical events, including acts of war, international hostilities and terrorist activities;
Assumptions and estimates used in applying critical accounting policies and modeling, including under the CECL model, which may prove unreliable, inaccurate, or not predictive of actual results;
Actions of government regulators, including potential future changes in the target range for the federal funds rate by the Board of Governors of the Federal Reserve;
Sale of investment securities in a loss position before their value recovers, including as a result of asset liability management strategies or in response to liquidity needs;
Any increases in FDIC assessments;
Risks associated with potential cybersecurity incidents, data breaches or failures of key information technology systems;
The ability to maintain adequate liquidity and regulatory capital, and comply with evolving federal and state banking regulations;
Changes in legal or regulatory requirements or the results of regulatory examinations that could restrict growth;
The ability to recruit and retain key management and staff;
The ability to raise capital or incur debt on reasonable terms; and
Effectiveness of legislation and regulatory efforts to help the U.S. and global financial markets.

There are many factors that could cause actual results to differ materially from those contemplated by forward-looking statements. Any forward-looking statement made by us in this press release or in any subsequent written or oral statements attributable to the Company are expressly qualified in their entirety by the cautionary statements above. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Key Financial Measures

The attached tables highlight the Company’s key financial measures for the periods indicated (unaudited).

Alpine Banks of Colorado Consolidated Financial Statements 12.31.2024

The MIL Network –

January 31, 2025

MIL-OSI: $HAREHOLDER ALERT: The M&A Class Action Firm Maintains Investigation Into The Merger – KAVL, PDCO, VOXX, EBTC

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Jan. 30, 2025 (GLOBE NEWSWIRE) — Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm by ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating:

Kaival Brands Innovations Group, Inc. (NASDAQ: KAVL), relating to its proposed merger with Delta Corp Holdings Limited. Under the terms of the agreement, shareholders of Kaival Brands will receive 1 share of Delta for each share of Kaival Brands common stock they own, and are anticipated to own approximately 10.30% of the combined company.

Click here for more information https://monteverdelaw.com/case/kaival-brands-innovations-group-inc-kavl/. It is free and there is no cost or obligation to you.

Patterson Companies, Inc. (NASDAQ: PDCO), relating to the proposed merger with Patient Square Capital. Under the terms of the agreement, shareholders of Patterson will receive $31.35 in cash per share.

Click here for more https://monteverdelaw.com/case/patterson-companies-inc-pdco/. It is free and there is no cost or obligation to you.

VOXX International Corporation (NASDAQ: VOXX), relating to the proposed merger with Gentex Corporation. Under the terms of the agreement, Gentex will acquire all issued and outstanding shares of VOXX common stock not already owned by Gentex for a purchase price of $7.50 per share.

Click here for more https://monteverdelaw.com/case/voxx-international-corporation-voxx/. It is free and there is no cost or obligation to you.

Enterprise Bancorp, Inc. (NASDAQ: EBTC), relating to the proposed merger with Independent Bank Corp. Under the terms of the agreement, shareholders of Enterprise will receive 0.60 shares of Independent, and $2.00 in cash, per share held.

Click here for more https://monteverdelaw.com/case/enterprise-bancorp-inc-ebtc/. It is free and there is no cost or obligation to you.

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Do you file class actions and go to Court?
When was the last time you recovered money for shareholders?
What cases did you recover money in and how much?

About Monteverde & Associates PC

Our firm litigates and has recovered money for shareholders…and we do it from our offices in the Empire State Building. We are a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court.

No company, director or officer is above the law. If you own common stock in any of the above listed companies and have concerns or wish to obtain additional information free of charge, please visit our website or contact Juan Monteverde, Esq. either via e-mail at jmonteverde@monteverdelaw.com or by telephone at (212) 971-1341.

Contact:
Juan Monteverde, Esq.
MONTEVERDE & ASSOCIATES PC
The Empire State Building
350 Fifth Ave. Suite 4740
New York, NY 10118
United States of America
jmonteverde@monteverdelaw.com
Tel: (212) 971-1341

Attorney Advertising. (C) 2024 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com). Prior results do not guarantee a similar outcome with respect to any future matter.

The MIL Network –

January 31, 2025

MIL-OSI New Zealand: A new direction for the minerals sector to grow the economy

Source: New Zealand Government

Firstly I want to thank OceanaGold for hosting our event today. Your operation at Waihi is impressive. I want to acknowledge local MP Scott Simpson, local government dignitaries, community stakeholders and all of you who have gathered here today.

It’s a privilege to welcome you to the launch of the Minerals Strategy for New Zealand and our Critical Minerals List.

Of course our joint presence fulfils a deeper presence. It is a validation of an industry that has suffered from excessive regulation and poisonous politics. It is a chance to stand with a skilled workforce that is literally worth its weight in gold.

A year of delivery for the minerals sector under the Coalition Government

In May last year I stood in front of a packed hall in Blackball on the West Coast, people who depend on our mineral resources.

I presented to them a vision for the future – a vision that would see our wealth base grow by utilising our mineral reserves to benefit all New Zealanders, increasing our domestic resilience by reducing reliance on imported minerals.

I said this meant owning up to the fact that we will use our indigenous fossil fuels. Resources integral to our modern industrial civilisation. We do have valuable minerals, oil and gas.

These minerals include coal, a vital ingredient to steel-making, a source of energy and jobs, a stream of export earnings.

I spoke of our focus on cutting barriers to development but not corners, and increasing New Zealand’s contributions to global supply chains, especially for minerals that are needed to support the transition to diverse sources of energy.

Dealing with banks

It is not widely known but some barriers are not imposed by government but come in the form of corporate straitjackets. One should look no further than the directors and executives of our banking sector. Some are in thrall to climate group-think.

They are the new corporate gatekeepers, imposing moral priorities under the cover of saving the planet upon regional communities. Not only are they inflicting their luxury beliefs on our farming industry but they are actively de-banking mineral firms.

Kiwi enterprises legitimately operating in the natural resource sector are being driven to despair by these woke-riddled, corporate undertakers.

This malevolence flows from cult like accords fostered within the UN where banks and their sustainability units foolishly believe they can change the weather. New Zealand banks should abandon such agreements as the Net Zero Banking Alliance. These instruments are alien and represent a foreign threat to regional development.

To this end New Zealand First will be introducing a members bill stopping the banks and related corporate bodies from behaving in this harmful manner. We cannot let them hold our economic development to ransom to suit the privileged cabal employed on environmental, social and inclusion matters.

This will include the ability for regulators to remove a bank’s operating licence if it persist with virtue-signalling destructiveness.

As an Associate Finance Minister, I will be working closely with the Minister for Regulation to identify how elements of our bill can be used in the wider government work programme.

I would like to acknowledge the work of ACT MP Mark Cameron on this issue so far. He is a champion for the farming sector.

I want the mining sector on an enduring pathway to boost regional opportunities and jobs, increase our self-sufficiency, to be a critical part of our export-led focus, especially as we take advantage of the global opportunities for new minerals uses.

How can we achieve such outcomes if key intermediaries such as banks and insurance companies are going to bully our Kiwi businesses and their employees out of the economy? When did citizens authorise corporates to use climate extremism to bankrupt firm and family alike?

It is bad enough that Aussie-owned banks are behaving in this predatory manner but it is especially galling that Kiwibank is treating Kiwis in this vein. Had New Zealand First known this would be their attitude we may very well have formed a different view about their recent recapitalisation initiative.

Our Government has progressed in enabling an environment for a responsible and productive minerals sector to thrive.

Resources-friendly policy

We’ve moved quickly to enact policy and legislative fixes. Our upgrades have included introducing the Crown Minerals Amendment Bill that will not only remove the ban on petroleum exploration beyond onshore Taranaki – it will deliver a new tier of minerals permit to make it easier for people to undertake small-scale non-commercial gold mining activity across the country. We expect to finalise and pass the Bill in the coming months.

We’ve made changes to the Resource Management Act to align consenting for coal mining with other forms of mining to reduce barriers that are holding back economic development.

Timely permit decisions are vital in supporting the sector to get to work. Following direction on my expectations, regulator New Zealand Petroleum and Minerals has made significant progress dealing with the backlog of permit decisions while managing the growing influx of new applications as activity ramps up.

Figures for 2024 show a 74 per cent increase in minerals permitting output – that’s the number of outcomes made on minerals applications – compared to the previous calendar year.

In 2023, NZP&M received 288 new and change minerals permit applications and in 2024 it was 447. That is a 55 per cent increase – and a very good indicator of a sector that is really starting to hum.

We have begun our journey to rebuild international investor awareness in our mining sector through the delivery of investment aids such as the GNS Endowment Study. This is a specialist report bringing together extensive technical research to identify short, medium, and long-term prospects for potential development.

We have returned to the international mining stage to make sure New Zealand is back on the agenda for international investors and challenge responsible operators to explore what we have to offer.

Finally, I can’t understate the impact that our new Fast-track Approvals legislation will have in sending well-planned, investment-ready projects along the path of development.

The Act’s broad and overarching purpose statement is to recognise the contributions significant projects such as mining operations can make to our communities and economy.

At long last the gate-keepers behind the outdated Wildlife Act and cumbersome Conservation Act will be brought to heel. On the former there is more to do. Sadly it is often delivered at an operational level in a way inimical to our productivity.

Previously mining companies were unable to secure permits under these statutes for dubious reasons. That has now disappeared. If there are implementation problems the Government will make additional amendments to the law.

A one-stop shop will streamline the pathway to attaining the approvals required for mining activities, removing the multiple application processes operators currently must navigate to mine in New Zealand.

Land access

One of the key areas I see this process improving is concessions for land access. An array of high-value mining and quarrying projects are already approved to travel this consenting pathway.

Officials estimate the number of jobs across the mining projects listed in Schedule 2 of the Fast-track Approvals Act at over 2,500 direct fulltime jobs at peak production. Many of these roles will be well-paying regional jobs with significant opportunities for training and growing skills.

I don’t need to tell the good folks of Waihi that every direct employee of a mining company generates many more job opportunities. The environmental scientists that provide expert advice, the drilling companies that contract with OceanaGold, and all the other skills needed to run a successful operation spread out over the local, regional, and national economy.

For the seven listed mining projects that will generate export revenue, estimates are a peak of $2.5 billion in 2033, with gold playing a big part. This is what our minerals potential looks like.

Going forward, this is what consenting will look like for significant mining projects in our country.

As our industry expands, we need to ensure that Paamu and statutes such as the Queen Elizabeth the Second National Trust Act are fit for purpose and do not inhibit the growth of critical minerals.

When there is opportunity, we are going to say yes

I will make one further note about this Government’s work to provide the certainty that the sector needs to push forward.

Not all conservation land is equal. We have an inordinately large conservation estate of varying quality.

Stewardship land is managed by the Department of Conservation until it is appropriately assessed for its conservation value and classified. Around 30 per cent of conservation areas are held in stewardship – that’s over 2.7 million hectares or 9 per cent of New Zealand’s total land area.

A lot of that land isn’t considered to have special conservation or scenic values, but we do know that there are areas there likely to contain mineral deposits.

This Government supports sustainable and environmentally approved mining on stewardship land and other categories of DOC land but we are very clear that national parks and other land categories identified under schedule 4 of the Crown Minerals Act are not on the table.

It would be remiss of me not to also mention my favourite amphibian, Freddy the Frog at this point. I raise this not in a flippant way, but as realist wanting to have a genuine conversation about how we focus our efforts and limited resources in protecting the natural assets that New Zealanders value most.

It is correct that our Archey’s frog is endangered – but it is not from mining. The real threat to Freddy is the rats, stoats and pigs that populate significant extents of our stewardship and conservation land.

I put to you that the work we are doing to enable responsible mining in New Zealand is the best news Freddy has had for a long time. As part of its listed Fast-track Approvals project, OceanaGold will be stepping up with an intensive predator control programme in the Coromandel Forest Park.

In fact, it’s because of OceanaGold and its specialist conservationists that we have some of the most insightful research collected on the species to date. Over $600,000 towards ecological outcomes around this mining site.

Actually a much larger sum when one considers the broader commercial footprint including Macraes, Otago, South Island. Such a quantum is not possible without a successful business.

It is time for Kiwis to have an honest and considered debate on mining. On this score I am going to pay more attention to the blue collar community than woke collar spongers.

This engagement will lead us to the complex and deadweight nature of our climate change regulations. They are excessive for our small economy. They run the risk of deindustrialisation, exporting jobs and importing carbon.

Of course this is all intertwined with environmental, social and government reporting requirements. dubious value and should be discretionary at best. Green scrub that has spread too far and needs a severe prune.

We need to acknowledge the criticality of minerals to our daily lives, the importance of maintaining a strong, independent economy with well-paying jobs and opportunities in our regions. Why import materials we can perfectly adequately supply ourselves?

Some people argue against minerals extraction, but gladly rely on the conveniences of modern society and economy built by those resources. As our Prime Minister said, we don’t have the luxury of turning off growth.

A strategy to ensure momentum is enduring

Some of you in the sector may be looking at this progress and feeling like we’ve been here before, only for the hard-won momentum to die with a change in Government.

I hear your concerns. I’ve spoken at length about how a lack of long-term, enduring strategic direction has hindered this country in reaping the economic and security benefits our bounty of natural resources presents.

Today we change that.

The Minerals Strategy for New Zealand adopts a strategic lens out to 2040, focusing our approach to the development of our minerals estate with a delivery roadmap to get us there. This is a holistic picture of minerals production from the earth, from reprocessing waste material, and from potential recycling and recovery.

There are three main changes to the strategy follow consultation with New Zealanders.

We have reframed the strategy to have a clear vision, goal and succinct outcomes.

Our key outcomes for the sector are productive, valued, and resilient, and are guided by overarching principles that respect Treaty settlement obligations and ensure responsible practices.

Minerals developments in New Zealand will happen in a responsible manner where environmental guard rails are appropriate to the risks being managed. The protection, the health and safety of our workers, and impacts on regional communities is important.

This means we are working towards sector growth and innovation that contributes to New Zealand’s prosperity. The sector’s performance and responsible practices need to be emphasised. Advocacy and being forward leaning is important. I recognise the sector has been subject to misinformation but the mute button is not an option.

We have updated the goal of doubling our exports to $3 billion by 2035 from the previous goal of $2 billion. Statistics NZ reports that mineral exports for the financial year ending June 2023 totalled $1.46 billion and our submitters were clear – we needed a more ambitious goal.

Finally, I want to assure you that we are not downing tools when there is still work to do. The addition of a Delivery Roadmap clearly sets out the key actions the Government will take to achieve the strategy’s goal and vision.

In the short term, key actions include creating a network to support minerals research and development, making information about minerals and regulations more accessible to potential investors, and engaging with countries to support supply chain resilience for critical minerals.

Longer term, we will deliver a minerals research strategy and address workforce development needs, skills and training programmes.

Through our Minerals Strategy we have formed the foundations. Soon our government will roll out the refreshed approach to inward foreign direct investment. You have told me that an overseas investment process that is efficient, timely and not too costly is important.

We have a pathway forward. A permitting regime which acknowledges the principle of risk proportionality. A recognition that excessive climate net zero regulations will thwart economic growth. A consideration of ecological, community, tangata whenua issues that is balanced and does not present scope for veto power.

An expanded Critical Minerals List

I don’t have to explain to anyone here today how we rely on a wide range of minerals to enable the comforts of our lives. Every road you drive on, every light switch you turn on, our schools, hospitals and homes. All are enabled in some way by the extraction of our natural resources.

If suddenly we couldn’t access aggregate to construct our roads, phosphate to support the growth of our crops or iron sand to make steel for our buildings, our economy would grind to a halt.

On the matter of iron sands, the recent Taharoa RMA hearing process for consents to continue an activity that has been happening for over 50 years was a circus. It shows that more robustness is needed. Hopefully the treatment this firm receives will be inordinately better under the Fast-track processes.

Equally, there is no low emissions energy transition without minerals – no batteries, no electric cars, no wind turbines and no solar panels.

Unfortunately, we have never sought a comprehensive picture of the minerals needs of New Zealand now and in the future, or how we ensure those supplies are secure and affordable.

I am delighted today to release New Zealand’s Critical Minerals List, a holistic picture of the minerals that are economically important and are vulnerable to supply risk or essential to unlocking other critical minerals.

Following public consultation last September, the Critical Minerals List now features 37 minerals, up from 35.

The Coalition Government agreed to include both gold and metallurgical coal, which is used in steelmaking, on the list in recognition of their importance to our minerals sector and economy, and in unlocking other critical minerals.

Together, they represent 80 per cent of our mineral exports, generating export revenues of around $1.2 billion in the year to June 2023.

Simply put, OceanaGold’s Waihi Operation today shows gold investments needs skills, machinery, resources, and capacity to support our modern industrial system.

The legacy of gold- and coal-mining is that of a catalyst for transformation – for our economy, for our development, for our technical skills and trades, and for our place on the world stage.

Future mining in New Zealand will play to our strengths in terms of existing production while we develop new opportunities. That means gold and metallurgical coal.

We will also offer more bespoke and boutique opportunities for the right investors.

Of our 37 critical minerals, we produce or have the potential to produce 21 here in New Zealand. We are a prospective destination for sought-after minerals like antimony and we have operators working rare earth, vanadium and titanium projects – all exciting opportunities for New Zealand to support the international transition to a clean energy future.

Our list will contribute to New Zealand’s work on critical international supply chains and allow us to investigate specific actions for securing better access to the minerals we’ve deemed critical.

This could include preferential pathways and settings for development and supply of minerals on the list, or building international relationships to ensure secure supply of those we can’t produce. This work programme forms part of the Strategy’s delivery roadmap and will kick off shortly.

Close

When I left Blackball last year, I did so with the promise I would continue to be a dogged champion for the minerals sector and the economic prosperity it can offer New Zealand, if done right.

I hope I have shown you that with the work we have done to get the right direction and settings in place, you can have confidence that we have an enduring pathway forward.

This Government is taking an active, deliberate and co-ordinated approach to harnessing the potential of our natural resources to take us from ‘open for business’ to ‘doing business’.

The sector has been a transformative agent in the past, and I expect it to play a transforming role into the future.

MIL OSI New Zealand News –

January 31, 2025

MIL-OSI: The First of Long Island Corporation Reports Earnings for the Year Ended December 31, 2024

Source: GlobeNewswire (MIL-OSI)

MELVILLE, N.Y., Jan. 30, 2025 (GLOBE NEWSWIRE) — The First of Long Island Corporation (Nasdaq: FLIC, the “Company” or the “Corporation”), the parent of The First National Bank of Long Island (the “Bank”), reported earnings for the quarter and year ended December 31, 2024.

President and Chief Executive Officer Chris Becker commented on the Company’s results: “Our team is focused on best positioning our company for the future and its pending merger with ConnectOne Bancorp, Inc. In that regard, our net interest margin bottomed out during the first quarter of 2024 and began its recovery during the remainder of the year. Excluding loss on securities in 2023, noninterest income increased nearly 23% largely related to new and recurring fee income categories. Noninterest expense was well controlled with an increase of 1.6% when compared to the prior year after backing out $3.1 million of merger and branch consolidation expenses in 2024. Finally, asset quality remains strong. We look forward to the changes to come in 2025, which will offer new and exciting opportunities to our stockholders, customers, employees and communities.”

Analysis of Earnings – 2024 Earnings

Net income and diluted earnings per share (“EPS”) for the year ended December 31, 2024, were $17.1 million and $0.75, respectively, as compared to $26.2 million and $1.16, respectively, in 2023. The principal drivers of the change in net income were a decline in net interest income of $13.6 million, or 15.7%, and a provision for credit losses of $359,000 as compared to a provision reversal of $326,000 in 2023, partially offset by a loss on sales of securities of $3.5 million in the first quarter of 2023, an increase in remaining noninterest income of $2.2 million, an increase in noninterest expense of $4.1 million and a decrease in income tax expense of $3.5 million. The year ended December 31, 2024 produced a return on average assets (“ROA”) of 0.40%, a return on average equity (“ROE”) of 4.49%, an efficiency ratio of 79.00%, and a net interest margin of 1.83%.

For the year ended December 31, 2024, net interest income declined due to an increase in interest expense of $25.5 million that was only partially offset by an $11.8 million increase in interest income. Year over year, the cost of interest-bearing liabilities increased 90 basis points while the yield on interest-earning assets increased 31 basis points. The Bank’s balance sheet remains liability sensitive, however the pace of repricing of average interest-earning assets began outpacing the repricing of average interest-bearing liabilities in the second half of the year as the Fed’s easing of interest rates allowed the Bank to reduce nonmatured deposit rates.

The Bank recorded a provision for credit losses of $359,000 during 2024, compared to a provision reversal of $326,000 in 2023. The allowance for credit losses declined when compared to year-end 2023 largely due to declines in historical loss rates and reserves on individually evaluated loans, partially offset by a deterioration in current and forecasted economic conditions, including adjustments for rent stabilization status of multifamily properties. The reserve coverage ratio remained stable at 0.88% of total loans at December 31, 2024 as compared to 0.89% at December 31, 2023. Past due loans and nonaccrual loans were at $270,000 and $3.2 million, respectively, on December 31, 2024. Overall credit quality of the loan and investment portfolios remains strong.

Noninterest income, excluding the loss on sales of securities of $3.5 million in the 2023 period, increased $2.2 million, or 22.8%, year over year. Recurring components of noninterest income including bank-owned life insurance (“BOLI”) and service charges on deposit accounts had increases of 8.1% and 11.3%, respectively. Other noninterest income increased 45.7% and included increases of $655,000 in merchant card services, $465,000 in back-to-back swap fees, $377,000 of BOLI benefit payments, and $242,000 in pension income, which were partially offset by a gain on disposition of premises and fixed assets of $240,000 in 2023.

Noninterest expense increased $4.1 million, or 6.4%, for the year ended December 31, 2024, as compared to the prior year. The change in noninterest expense is mainly attributable to branch consolidation and merger expenses of $1.9 million and $1.2 million, respectively. Noninterest expense excluding merger and branch consolidation expenses increased by $1.0 million or 1.6%. The 6.3% year-over-year increase in salaries and employee benefits included a variety of compensation and benefit categories including the vesting of certain awards during the fourth quarter of 2024. The decrease of $554,000 in occupancy and equipment expense was largely due to the ongoing branch optimization strategy. Lower other expenses included a decrease in telecommunication expenses of $510,000 due to efficiencies with system upgrades and a smaller provision for off-balance sheet commitments of $310,000 due to a decrease in off-balance sheet credit exposure.

Income tax expense decreased $3.5 million, and the effective tax rate declined from 11.0% in 2023 to (1.9%) in 2024. The decline in the effective tax rate is mainly due to an increase in the percentage of pre-tax income derived from the Bank’s real estate investment trust, reducing the state and local income tax due. The decrease in income tax expense reflects the lower effective tax rate and a decline in pre-tax income.

Analysis of Earnings – Fourth Quarter 2024 Versus Fourth Quarter 2023

Net income for the fourth quarter of 2024 decreased $2.8 million as compared to the fourth quarter of 2023. The change in net income is mainly attributable to an increase in salaries and employee benefits expense of $2.4 million for substantially the same reasons discussed above with respect to the year-over-year changes, a $1.9 million decline in net interest income along with a $1.4 million increase in branch consolidation expenses. This was partially offset by a provision reversal for credit losses of $381,000 as compared to a provision of $901,000 in the fourth quarter of 2023, back-to-back swap fees of $233,000 and a BOLI benefit payment of $225,000, both recorded in the current period and an increase in merchant card services income of $186,000. The quarter produced a ROA of 0.31%, a ROE of 3.35%, an efficiency ratio of 86.78%, and a net interest margin of 1.83%.

Analysis of Earnings – Fourth Quarter 2024 Versus Third Quarter 2024

Net income for the fourth quarter of 2024 decreased $1.4 million compared to the third quarter of 2024. The decrease in net income was primarily due to an increase in salaries and employee benefits of $856,000, additional branch consolidation expenses of $840,000 and a decrease in net interest income of $573,000, partially offset by a provision reversal for credit losses of $381,000 in the fourth quarter as compared to a provision of $170,000 in the third quarter and a decrease in merger expenses of $571,000. The decline in net interest income was primarily due to a net interest margin decrease of 6 basis points when compared to the linked quarter, which was largely due to lower income on the fair value derivative.

Liquidity

On December 31, 2024, overnight advances and other borrowings were down by $70.0 million and $37.5 million, respectively, from prior year end. At year-end, the Bank had $583.0 million in collateralized borrowing lines with the Federal Home Loan Bank of New York and the Federal Reserve Bank, $20.0 million unsecured line of credit with a correspondent bank and $265.5 million in unencumbered cash and securities. In total, $868.5 million in liquidity was available on December 31, 2024. Uninsured deposits were 45.8% of total deposits at December 31, 2024.

Capital

The Corporation’s capital position remains strong with a leverage ratio of approximately 10.12% on December 31, 2024. Book value per share was $16.77 on December 31, 2024, versus $16.83 on December 31, 2023. The accumulated other comprehensive loss component of stockholders’ equity is mainly comprised of a net unrealized loss in the available-for-sale securities portfolio due to higher market interest rates. The Company declared its quarterly cash dividend of $0.21 per share during the quarter. There were no share repurchases during the quarter.

Forward Looking Information

This earnings release contains various “forward-looking statements” within the meaning of that term as set forth in Rule 175 of the Securities Act of 1933 and Rule 3b-6 of the Securities Exchange Act of 1934. Such statements are generally contained in sentences including the words “may” or “expect” or “could” or “should” or “would” or “believe” or “anticipate”. The Corporation cautions that these forward-looking statements are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. Factors that could cause future results to vary from current management expectations include, but are not limited to, changing economic conditions; legislative and regulatory changes; monetary and fiscal policies of the federal government; changes in interest rates; deposit flows and the cost of funds; demand for loan products; competition; changes in management’s business strategies; changes in accounting principles, policies or guidelines; changes in real estate values; and other factors discussed in the “risk factors” section of the Corporation’s filings with the Securities and Exchange Commission (“SEC”). The forward-looking statements are made as of the date of this press release, and the Corporation assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

For more detailed financial information please see the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2024. The Form 10-K will be available through the Bank’s website at www.fnbli.com on or about March 12, 2025, when it is anticipated to be electronically filed with the SEC. Our SEC filings are also available on the SEC’s website at www.sec.gov.


CONSOLIDATED BALANCE SHEETS (Unaudited)

	12/31/2024			12/31/2023
	(dollars in thousands)
Assets:
Cash and cash equivalents	$	38,330		$	60,887
Investment securities available-for-sale, at fair value		624,779			695,877

Loans:
Commercial and industrial		136,732			116,163
Secured by real estate:
Commercial mortgages		1,963,107			1,919,714
Residential mortgages		1,084,090			1,166,887
Home equity lines		36,468			44,070
Consumer and other		1,210			1,230
		3,221,607			3,248,064
Allowance for credit losses		(28,331	)		(28,992	)
		3,193,276			3,219,072

Restricted stock, at cost		27,712			32,659
Bank premises and equipment, net		29,135			31,414
Right-of-use asset – operating leases		18,951			22,588
Bank-owned life insurance		117,075			114,045
Pension plan assets, net		11,806			10,740
Deferred income tax benefit		36,192			28,996
Other assets		22,080			19,622
	$	4,119,336		$	4,235,900
Liabilities:
Deposits:
Checking	$	1,074,671		$	1,133,184
Savings, NOW and money market		1,574,160			1,546,369
Time		616,027			591,433
		3,264,858			3,270,986

Overnight advances		—			70,000
Other borrowings		435,000			472,500
Operating lease liability		21,964			24,940
Accrued expenses and other liabilities		18,648			17,328
		3,740,470			3,855,754
Stockholders’ Equity:
Common stock, par value $0.10 per share:
Authorized, 80,000,000 shares;
Issued and outstanding, 22,595,349 and 22,590,942 shares		2,260			2,259
Surplus		79,731			79,728
Retained earnings		354,051			355,887
		436,042			437,874
Accumulated other comprehensive loss, net of tax		(57,176	)		(57,728	)
		378,866			380,146
	$	4,119,336		$	4,235,900


CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Year Ended						Three Months Ended
	12/31/2024			12/31/2023			12/31/2024			12/31/2023
	(dollars in thousands)
Interest and dividend income:
Loans	$	137,092		$	127,866		$	34,413		$	33,160
Investment securities:
Taxable		26,412			22,663			5,711			6,786
Nontaxable		3,826			4,954			954			978
		167,330			155,483			41,078			40,924
Interest expense:
Savings, NOW and money market deposits		45,254			32,164			11,617			9,976
Time deposits		27,509			19,267			6,761			6,181
Overnight advances		401			950			9			354
Other borrowings		20,947			16,237			4,664			4,455
		94,111			68,618			23,051			20,966
Net interest income		73,219			86,865			18,027			19,958
Provision (credit) for credit losses		359			(326	)		(381	)		901
Net interest income after provision (credit) for credit losses		72,860			87,191			18,408			19,057

Noninterest income:
Bank-owned life insurance		3,456			3,197			883			814
Service charges on deposit accounts		3,376			3,034			833			791
Net loss on sales of securities		—			(3,489	)		—			—
Gain on disposition of premises and fixed assets		21			240			—			—
Other		5,215			3,354			1,504			792
		12,068			6,336			3,220			2,397
Noninterest expense:
Salaries and employee benefits		39,720			37,373			10,551			8,105
Occupancy and equipment		12,586			13,140			3,297			3,166
Merger expenses		1,161			—			295			—
Branch consolidation expenses		1,934			—			1,387			—
Other		12,763			13,546			3,128			3,536
		68,164			64,059			18,658			14,807
Income before income taxes		16,764			29,468			2,970			6,647
Income tax (credit) expense		(312	)		3,229			(274	)		588
Net income	$	17,076		$	26,239		$	3,244		$	6,059

Share and Per Share Data:
Weighted Average Common Shares		22,527,300			22,550,562			22,548,966			22,586,296
Dilutive restricted stock units		121,393			82,609			221,692			122,961
Dilutive weighted average common shares		22,648,693			22,633,171			22,770,658			22,709,257

Basic EPS	$	0.76		$	1.16		$	0.14		$	0.27
Diluted EPS		0.75			1.16			0.14			0.27
Cash Dividends Declared per share		0.84			0.84			0.21			0.21

FINANCIAL RATIOS
(Unaudited)
ROA		0.40	%		0.62	%		0.31	%		0.57	%
ROE		4.49			7.14			3.35			6.68
Net Interest Margin		1.83			2.16			1.83			2.00
Efficiency Ratio		79.00			65.52			86.78			65.47


PROBLEM AND POTENTIAL PROBLEM LOANS AND ASSETS (Unaudited)

	12/31/2024			12/31/2023
	(dollars in thousands)
Loans including modifications to borrowers experiencing financial difficulty:
Modified and performing according to their modified terms	$	421		$	431
Past due 30 through 89 days		270			3,086
Past due 90 days or more and still accruing		—			—
Nonaccrual		3,229			1,053
		3,920			4,570
Other real estate owned		—			—
	$	3,920		$	4,570

Allowance for credit losses	$	28,331		$	28,992
Allowance for credit losses as a percentage of total loans		0.88	%		0.89	%
Allowance for credit losses as a multiple of nonaccrual loans		8.8	x		27.5	x


AVERAGE BALANCE SHEET, INTEREST RATES AND INTEREST DIFFERENTIAL (Unaudited)

	Year Ended December 31,
	2024								2023
	Average			Interest/		Average			Average			Interest/		Average
(dollars in thousands)	Balance			Dividends		Rate			Balance			Dividends		Rate
Assets:
Interest-earning bank balances	$	60,259		$	3,221		5.35	%	$	48,879		$	2,508		5.13	%
Investment securities:
Taxable (1)		611,936			23,191		3.79			584,450			20,155		3.45
Nontaxable (1) (2)		152,575			4,843		3.17			196,341			6,271		3.19
Loans (1) (2)		3,237,664			137,092		4.23			3,260,903			127,868		3.92
Total interest-earning assets		4,062,434			168,347		4.14			4,090,573			156,802		3.83
Allowance for credit losses		(28,613	)							(30,291	)
Net interest-earning assets		4,033,821								4,060,282
Cash and due from banks		32,207								30,847
Premises and equipment, net		30,700								32,027
Other assets		124,909								112,833
	$	4,221,637							$	4,235,989
Liabilities and Stockholders’ Equity:
Savings, NOW & money market deposits	$	1,591,320			45,254		2.84		$	1,657,947			32,164		1.94
Time deposits		622,229			27,509		4.42			553,096			19,267		3.48
Total interest-bearing deposits		2,213,549			72,763		3.29			2,211,043			51,431		2.33
Overnight advances		7,156			401		5.60			17,529			950		5.42
Other borrowings		446,837			20,947		4.69			380,399			16,237		4.27
Total interest-bearing liabilities		2,667,542			94,111		3.53			2,608,971			68,618		2.63
Checking deposits		1,135,579								1,220,947
Other liabilities		38,159								38,575
		3,841,280								3,868,493
Stockholders’ equity		380,357								367,496
	$	4,221,637							$	4,235,989

Net interest income (2)				$	74,236							$	88,184
Net interest spread (2)							0.61	%							1.20	%
Net interest margin (2)							1.83	%							2.16	%

(1)		The average balances of loans include nonaccrual loans. The average balances of investment securities exclude unrealized gains and losses on available-for-sale securities.
(2)		Tax-equivalent basis. Interest income on a tax-equivalent basis includes the additional amount of interest income that would have been earned if the Corporation’s investment in tax-exempt loans and investment securities had been made in loans and investment securities subject to federal income taxes yielding the same after-tax income. The tax-equivalent amount of $1.00 of nontaxable income was $1.27 for each period presented using the statutory federal income tax rate of 21%.


AVERAGE BALANCE SHEET, INTEREST RATES AND INTEREST DIFFERENTIAL (Unaudited)

	Three Months Ended December 31,
	2024								2023
	Average			Interest/		Average			Average			Interest/		Average
(dollars in thousands)	Balance			Dividends		Rate			Balance			Dividends		Rate
Assets:
Interest-earning bank balances	$	41,393		$	497		4.78	%	$	39,134		$	539		5.46	%
Investment securities:
Taxable (1)		585,774			5,214		3.56			642,590			6,247		3.89
Nontaxable (1) (2)		152,028			1,207		3.18			157,098			1,238		3.15
Loans (1)		3,240,254			34,413		4.25			3,245,232			33,160		4.09
Total interest-earning assets		4,019,449			41,331		4.11			4,084,054			41,184		4.03
Allowance for credit losses		(28,679	)							(29,577	)
Net interest-earning assets		3,990,770								4,054,477
Cash and due from banks		30,311								29,175
Premises and equipment, net		29,868								31,792
Other assets		131,573								105,902
	$	4,182,522							$	4,221,346
Liabilities and Stockholders’ Equity:
Savings, NOW & money market deposits	$	1,597,769			11,617		2.89			1,626,615			9,976		2.43
Time deposits		612,334			6,761		4.39			602,256			6,181		4.07
Total interest-bearing deposits		2,210,103			18,378		3.31			2,228,871			16,157		2.88
Overnight advances		761			9		4.70			25,055			354		5.61
Other borrowings		416,413			4,664		4.46			390,326			4,455		4.53
Total interest-bearing liabilities		2,627,277			23,051		3.49			2,644,252			20,966		3.15
Checking deposits		1,132,122								1,176,276
Other liabilities		37,578								41,063
		3,796,977								3,861,591
Stockholders’ equity		385,545								359,755
	$	4,182,522							$	4,221,346

Net interest income (2)				$	18,280							$	20,218
Net interest spread (2)							0.62	%							0.88	%
Net interest margin (2)							1.83	%							2.00	%

(1)		The average balances of loans include nonaccrual loans. The average balances of investment securities exclude unrealized gains and losses on available-for-sale securities.
(2)		Tax-equivalent basis. Interest income on a tax-equivalent basis includes the additional amount of interest income that would have been earned if the Corporation’s investment in tax-exempt investment securities had been made in investment securities subject to federal income taxes yielding the same after-tax income. The tax-equivalent amount of $1.00 of nontaxable income was $1.27 for each period presented using the statutory federal income tax rate of 21%.

For More Information Contact:
Janet Verneuille, SEVP and CFO
(516) 671-4900, Ext. 7462

The MIL Network –

January 31, 2025

MIL-OSI: Home Federal Bancorp, Inc. of Louisiana Reports Results of Operations for the Three and Six Months Ended December 31, 2024

Source: GlobeNewswire (MIL-OSI)

Shreveport, La, Jan. 30, 2025 (GLOBE NEWSWIRE) — Home Federal Bancorp, Inc. of Louisiana (the “Company”) (Nasdaq: HFBL), the holding company of Home Federal Bank, reported net income for the three months ended December 31, 2024, of $1.02 million compared to net income of $1.00 million reported for the three months ended December 31, 2023. The Company’s basic and diluted earnings per share were $0.33 for the three months ended December 31, 2024 and December 31, 2023. The Company reported net income of $2.0 million for the six months ended December 31, 2024, compared to $2.2 million for the six months ended December 31, 2023. The Company’s basic and diluted earnings per share were $0.64 for the six months ended December 31, 2024 compared to $0.73 and $0.72, respectively, for the six months ended December 31, 2023.

The Company reported the following highlights during the six months ended December 31, 2024:

Nonperforming assets totaled $1.8 million, or 0.30% of total assets at December 31, 2024 compared to $1.9 million, or 0.30% of total assets, at June 30, 2024.
There were no advances from the FHLB at December 31, 2024 or June 30, 2024.
Other borrowings totaled $4.0 million at December 31, 2024 compared to $7.0 million at June 30, 2024.

The increase in net income for the three months ended December 31, 2024, as compared to the same period in 2023 resulted primarily from a decrease of $413,000, or 9.7%, in non-interest expense and an increase of $351,000, or 256.2%, in non-interest income, partially offset by an increase of $383,000, or 195.4%, in provision for income taxes, a decrease of $303,000, or 6.2%, in net interest income, and an increase of $61,000, or 381.3%, in the provision for credit losses. The decrease in net interest income for the three months ended December 31, 2024, as compared to the same period in 2023, was primarily due to a decrease of $422,000, or 5.2%, in total interest income, partially offset by a decrease of $119,000, or 3.7%, in total interest expense. The Company’s average interest rate spread was 2.40% for the three months ended December 31, 2024, compared to 2.45% for the three months ended December 31, 2023. The Company’s net interest margin was 3.12% for the three months ended December 31, 2024, compared to 3.14% for the three months ended December 31, 2023.

The decrease in net income for the six months ended December 31, 2024, as compared to the same period in 2023 resulted primarily from a decrease of $1.2 million, or 11.4%, in net interest income and an increase of $71,000, or 62.3%, in provision for income taxes, partially offset by a decrease of $591,000, or 7.0%, in non-interest expense, an increase of $216,000, or 37.8%, in non-interest income, and an increase of $162,000 in the recovery of credit losses. The decrease in net interest income for the six months ended December 31, 2024, as compared to the same period in 2023, was primarily due to a decrease of $755,000, or 4.7%, in total interest income and an increase of $405,000, or 6.8%, in total interest expense. The Company’s average interest rate spread was 2.32% for the six months ended December 31, 2024 compared to 2.60% for the six months ended December 31, 2023. The Company’s net interest margin was 3.06% for the six months ended December 31, 2024 compared to 3.26% for the six months ended December 31, 2023.

The following tables set forth the Company’s average balances and average yields earned and rates paid on its interest-earning assets and interest-bearing liabilities for the periods indicated.

	For the Three Months Ended December 31,
	2024					2023
	Average Balance		Average Yield/Rate			Average Balance		Average Yield/Rate
	(Dollars in thousands)
Interest-earning assets:
Loans receivable	$	457,553		5.89	%	$	507,844		5.78	%
Investment securities		96,715		2.19			109,485		2.43
Interest-earning deposits		29,653		4.47			1,751		2.95
Total interest-earning assets	$	583,921		5.20	%	$	619,080		5.18	%

Interest-bearing liabilities:
Savings accounts	$	90,696		1.71	%	$	73,228		0.40	%
NOW accounts		70,685		1.26			65,252		0.43
Money market accounts		79,365		2.21			95,763		2.49
Certificates of deposit		188,929		4.03			212,792		4.01
Total interest-bearing deposits		429,675		2.75			447,035		2.57
Other bank borrowings		4,489		7.16			9,202		8.58
FHLB advances		–		–			5,379		5.75
Total interest-bearing liabilities	$	434,164		2.80	%	$	461,616		2.73	%

	For the Six Months Ended December 31,
	2024					2023
	Average Balance		Average Yield/Rate			Average Balance		Average Yield/Rate
	(Dollars in thousands)
Interest-earning assets:
Loans receivable	$	461,531		5.88	%	$	503,043		5.79	%
Investment securities		96,732		2.14			111,535		2.46
Interest-earning deposits		27,635		4.81			5,843		3.43
Total interest-earning assets	$	585,898		5.21	%	$	620,421		5.16	%

Interest-bearing liabilities:
Savings accounts	$	86,626		1.66	%	$	75,900		0.39	%
NOW accounts		71,736		1.18			66,639		0.41
Money market accounts		77,290		2.29			102,327		2.37
Certificates of deposit		196,443		4.17			203,779		3.88
Total interest-bearing deposits		432,095		2.83			448,645		2.43
Other bank borrowings		5,239		7.50			8,928		8.47
FHLB advances		–		–			3,259		5.66
Total interest-bearing liabilities	$	437,334		2.89	%	$	460,832		2.57	%

The $351,000 increase in non-interest income for the three months ended December 31, 2024, compared to the prior year quarterly period, was primarily due to a decrease of $369,000 in loss on sale of real estate, an increase of $62,000 in other non-interest income, and an increase of $2,000 in income on bank owned life insurance, partially offset by a decrease of $71,000 in gain on sale of loans, an increase of $6,000 in loss on sale of securities, and a decrease of $5,000 in service charges on deposit accounts. The $216,000 increase in non-interest income for the six months ended December 31, 2024 compared to the prior year six-month period was primarily due to a decrease of $149,000 in loss on sale of real estate, an increase of $88,000 in other non-interest income, and an increase of $4,000 in income from bank owned life insurance, partially offset by a decrease of $14,000 in gain on sale of loans, an increase of $6,000 in loss on sale of securities, and a decrease of $5,000 in service charges on deposit accounts.

The $413,000 decrease in non-interest expense for the three months ended December 31, 2024, compared to the same period in 2023, is primarily attributable to decreases of $163,000 in franchise and bank shares tax expense, $132,000 in other non-interest expense, $99,000 in compensation and benefits expense, $80,000 in audit and examination fees, $53,000 in professional fees, $38,000 in advertising expense, $33,000 in deposit insurance premium expense, $13,000 in amortization of core deposit intangible expense, $7,000 in occupancy and equipment expense, and $2,000 in loan and collection expense. The decreases were partially offset by an increase of $207,000 in data processing expense. The $591,000 decrease in non-interest expense for the six months ended December 31, 2024, compared to the same six-month period in 2023, is primarily attributable to decreases of $153,000 in compensation and benefits expense, $151,000 in franchise and bank shares tax expense, $124,000 in advertising expense, $105,000 in other non-interest expense, $96,000 in professional fees, $50,000 in audit and examination fees, $34,000 in loan and collection expense, $34,000 in deposit insurance premium expense, and $33,000 in amortization of core deposit intangible expense. The decreases were partially offset by increases of $180,000 in data processing expense and $9,000 in occupancy and equipment expense.

Total assets decreased $29.7 million, or 4.7%, from $637.5 million at June 30, 2024 to $607.8 million at December 31, 2024. The decrease in assets was comprised of decreases in cash and cash equivalents of $15.4 million, or 44.1%, from $34.9 million at June 30, 2024 to $19.5 million at December 31, 2024, net loans receivable of $12.2 million, or 2.6%, from $470.9 million at June 30, 2024 to $458.7 million at December 31, 2024, loans-held-for-sale of $1.5 million, or 87.5%, from $1.7 million at June 30, 2024 to $216,000 at December 31, 2024, premises and equipment of $459,000, or 2.5%, from $18.3 million at June 30, 2024 to $17.8 million at December 31, 2024, real estate owned of $418,000, or 100.0% from $418,000 at June 30, 2024 to none at December 31, 2024, investment securities of $264,000, or 0.3%, from $96.0 million at June 30, 2024 to $95.7 million at December 31, 2024, and core deposit intangible of $146,000, or 12.2%, from $1.2 million at June 30, 2024 to $1.1 million at December 31, 2024, partially offset by increases in deferred tax asset of $357,000, or 30.2%, from $1.2 million at June 30, 2024 to $1.5 million at December 31, 2024, other assets of $195,000, or 14.4%, from $1.3 million at June 30, 2024 to $1.5 million at December 31, 2024, bank owned life insurance of $58,000, or 0.9%, from $6.81 million at June 30, 2024 to $6.87 million at December 31, 2024, and accrued interest receivable of $12,000, or 0.7%, from $1.78 million at June 30, 2024 to $1.79 million at December 31, 2024.

Total liabilities decreased $30.9 million, or 5.3%, from $584.7 million at June 30, 2024 to $553.8 million at December 31, 2024. The decrease in liabilities was comprised of decreases in total deposits of $27.5 million, or 4.8%, from $574.0 million at June 30, 2024 to $546.5 million at December 31, 2024, other borrowings of $3.0 million, or 42.9%, from $7.0 million at June 30, 2024 to $4.0 million at December 31, 2024, advances from borrowers for taxes and insurance of $252,000, or 48.4%, from $521,000 at June 30, 2024 to $269,000 at December 31, 2024, and other accrued expenses and liabilities of $164,000, or 5.2%, from $3.2 million at June 30, 2024 to $3.0 million at December 31, 2024. The decrease in deposits resulted from decreases in certificates of deposit of $30.8 million, or 14.3%, from $214.9 million at June 30, 2024 to $184.1 million at December 31, 2024, money market deposits of $12.2 million, or 14.3%, from $85.5 million at June 30, 2024 to $73.3 million at December 31, 2024, and non-interest deposits of $1.9 million, or 1.5%, from $130.3 million at June 30, 2024 to $128.4 million at December 31, 2024, partially offset by increases in savings deposits of $16.7 million, or 21.7%, from $76.6 million at June 30, 2024 to $93.3 million at December 31, 2024, and NOW accounts of $796,000, or 1.2%, from $66.6 million at June 30, 2024 to $67.4 million at December 31, 2024. The Company had no balances in brokered deposits at December 31, 2024 or June 30, 2024.

At December 31, 2024, the Company had $1.8 million of non-performing assets (defined as non-accruing loans, accruing loans 90 days or more past due, and other real estate owned) compared to $1.9 million on non-performing assets at June 30, 2024, consisting of five one-to-four family residential loans, five home equity loans, two commercial non-real estate loans, and one commercial real-estate loan at December 31, 2024, compared to five one-to-four family residential loans, four home equity loans, three commercial non-real estate loans, and three single-family residences in other real estate owned at June 30, 2024. At December 31, 2024 the Company had eight one-to-four family residential loans, five home equity loans, five commercial non-real-estate loans, two commercial real-estate loans, and one consumer loan classified as substandard, compared to six one-to-four family residential loans, five commercial non-real-estate loans, four home equity loans and one consumer loan classified as substandard at June 30, 2024. There were no loans classified as doubtful at December 31, 2024 or June 30, 2024.

Shareholders’ equity increased $1.1 million, or 2.1%, from $52.8 million at June 30, 2024 to $53.9 million at December 31, 2024. The increase in shareholders’ equity was comprised of net income for the six-month period of $2.0 million, the vesting of restricted stock awards, stock options, and the release of employee stock ownership plan shares totaling $311,000, and proceeds from the issuance of common stock from the exercise of stock options of $19,000, partially offset by an increase in the Company’s accumulated other comprehensive loss of $10,000, dividends paid totaling $816,000, and stock repurchases of $335,000.

Home Federal Bancorp, Inc. of Louisiana is the holding company for Home Federal Bank which conducts business from its ten full-service banking offices and home office in northwest Louisiana.

Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe”, “expect”, “anticipate”, “estimate”, and “intend”, or future or conditional verbs such as “will”, “would”, “should”, “could”, or “may”. We undertake no obligation to update any forward-looking statements.

In addition to factors previously disclosed in the reports filed by the Company with the Securities and Exchange Commission and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the strength of the United States economy in general and the strength of the local economies in which the Company conducts its operations; general economic conditions; legislative and regulatory changes; monetary and fiscal policies of the federal government; changes in tax policies, rates and regulations of federal, state and local tax authorities including the effects of the Tax Reform Act; changes in interest rates, deposit flows, the cost of funds, demand for loan products and the demand for financial services, competition, changes in the quality or composition of the Company’s loans, investment and mortgage-backed securities portfolios; geographic concentration of the Company’s business; fluctuations in real estate values; the adequacy of loan loss reserves; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; changes in accounting principles, policies or guidelines and other economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services and fees.

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED BALANCE SHEETS
(In thousands except share and per share data)

	December 31, 2024			June 30, 2024
	(Unaudited)
ASSETS

Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $16,389 and $25,505 at December 31, 2024 and June 30, 2024, Respectively)	$	19,540		$	34,948
Securities Available-for-Sale (amortized cost December 31, 2024: $32,930; June 30, 2024: $30,348, Respectively)		29,607			27,037
Securities Held-to-Maturity (fair value December 31, 2024: $52,451; June 30, 2024: $54,450, Respectively)		64,431			67,302
Other Securities		1,651			1,614
Loans Held-for-Sale		216			1,733
Loans Receivable, Net of Allowance for Credit Losses (December 31, 2024: $4,749; June 30, 2024: $4,574, Respectively)		458,693			470,852
Accrued Interest Receivable		1,787			1,775
Premises and Equipment, Net		17,844			18,303
Bank Owned Life Insurance		6,868			6,810
Goodwill		2,990			2,990
Core Deposit Intangible		1,053			1,199
Deferred Tax Asset		1,538			1,181
Real Estate Owned		–			418
Other Assets		1,545			1,350

Total Assets	$	607,763		$	637,512

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES

Deposits:
Non-interest bearing	$	128,439		$	130,334
Interest-bearing		418,105			443,673
Total Deposits		546,544			574,007
Advances from Borrowers for Taxes and Insurance		269			521
Other Borrowings		4,000			7,000
Other Accrued Expenses and Liabilities		3,017			3,181

Total Liabilities		553,830			584,709

SHAREHOLDERS’ EQUITY

Preferred Stock – $0.01 Par Value; 10,000,000 Shares Authorized: None Issued and Outstanding		–			–
Common Stock – $0.01 Par Value; 40,000,000 Shares Authorized: 3,132,764 and 3,142,168 Shares Issued and Outstanding at December 31, 2024 and June 30, 2024, Respectively		32			32
Additional Paid-in Capital		42,010			41,739
Unearned ESOP Stock		(350	)		(408	)
Retained Earnings		14,866			14,055
Accumulated Other Comprehensive Loss		(2,625	)		(2,615	)

Total Shareholders’ Equity		53,933			52,803

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	607,763		$	637,512

HOME FEDERAL BANCORP, INC. OF LOUISIANA
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)

(Unaudited)

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2024			2023			2024			2023
Interest income
Loans, including fees	$	6,791		$	7,397		$	13,686		$	14,671
Investment securities		63			210			130			449
Mortgage-backed securities		470			460			913			933
Other interest-earning assets		334			13			670			101
Total interest income		7,658			8,080			15,399			16,154
Interest expense
Deposits		2,977			2,901			6,175			5,494
Federal Home Loan Bank borrowings		–			78			–			93
Other bank borrowings		81			198			198			381
Total interest expense		3,058			3,177			6,373			5,968
Net interest income		4,600			4,903			9,026			10,186

Provision for (recovery of) credit losses		45			(16	)		(178	)		(16	)
Net interest income after provision for credit losses		4,555			4,919			9,204			10,202

Non-interest income
Loss on sale of real estate		(12	)		(381	)		(266	)		(415	)
Gain on sale of loans		5			76			101			115
Loss on sale of securities		(6	)		–			(6	)		–
Income on Bank-Owned Life Insurance		30			28			58			54
Service charges on deposit accounts		392			397			783			788
Other income		79			17			118			30

Total non-interest income		488			137			788			572

Non-interest expense
Compensation and benefits		2,229			2,328			4,531			4,684
Occupancy and equipment		537			544			1,101			1,092
Data processing		336			129			554			374
Audit and examination fees		191			271			323			373
Franchise and bank shares tax		1			164			169			320
Advertising		44			82			101			225
Legal fees		134			187			251			347
Loan and collection		30			32			58			92
Amortization Core Deposit Intangible		72			85			146			179
Deposit insurance premium		75			108			165			199
Other expenses	187				319			447			552

Total non-interest expense		3,836			4,249			7,846			8,437

Income before income taxes		1,207			807			2,146			2,337
Provision for income tax expense (benefit)		187			(196	)		185			114

NET INCOME	$	1,020		$	1,003		$	1,961		$	2,223

EARNINGS PER SHARE
Basic	$	0.33		$	0.33		$	0.64		$	0.73
Diluted	$	0.33		$	0.33		$	0.64		$	0.72

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2024			2023			2024			2023

Selected Operating Ratios⁽¹⁾:
Average interest rate spread		2.40	%		2.45	%		2.32	%		2.60	%
Net interest margin		3.12	%		3.14	%		3.06	%		3.26	%
Return on average assets		0.65	%		0.60	%		0.62	%		0.67	%
Return on average equity		7.76	%		7.81	%		7.50	%		8.64	%

Asset Quality Ratios⁽²⁾:
Non-performing assets as a percent of total assets		0.30	%		0.34	%		0.30	%		0.34	%
Allowance for credit losses as a percent of non-performing loans		260.70	%		226.50	%		260.70	%		226.50	%
Allowance for credit losses as a percent of total loans receivable		1.02	%		1.00	%		1.02	%		1.00	%

Per Share Data:
Shares outstanding at period end		3,132,764			3,143,532			3,132,764			3,143,532
Weighted average shares outstanding:
Basic		3,059,305			3,040,006			3,062,666			3,033,341
Diluted		3,075,221			3,085,271			3,077,371			3,096,546
Book value per share at period end	$	17.22		$	16.73		$	17.22		$	16.73
_____________________
(1) Ratios for the three and six month periods are annualized.
(2) Asset quality ratios are end of period ratios.

The MIL Network –

January 31, 2025

MIL-OSI: FHLBank San Francisco Announces Departure of CEO Alanna McCargo

Source: GlobeNewswire (MIL-OSI)

SAN FRANCISCO, Jan. 30, 2025 (GLOBE NEWSWIRE) — The Federal Home Loan Bank of San Francisco (FHLBank San Francisco) announced today that its Board of Directors and Chief Executive Officer Alanna McCargo have jointly determined that effective immediately Ms. McCargo will step down as President and CEO. She will transition into a new role as Special Policy Advisor, working directly with the Chair of the Board of Directors, and will be returning to Washington, D.C.

Joseph E. Amato, the Bank’s current Executive Vice President and Chief Financial Officer, will serve as interim President and CEO while the board launches a search for a new chief executive. Amato will continue to serve as CFO, a position he has held since May 2021. He joined the Bank as Executive Vice President and Senior Financial Officer in October 2020.

Ms. McCargo was appointed President and CEO in June 2024. Prior to joining FHLBank San Francisco, she served as President of the Government National Mortgage Association (Ginnie Mae) and as Senior Advisor for Housing Finance at the U.S. Department of Housing and Urban Development. She previously led housing policy initiatives at the Urban Institute.

“Alanna is a respected leader with deep expertise in housing finance and policy,” said Board Chair F. Daniel Siciliano. “Her insights and strategic guidance will be invaluable as we continue to support our members and partners in meeting the credit and investment needs of the communities we all serve.”

FHLBank San Francisco is a member-owned cooperative that provides reliable funding to its member financial institutions to support lending for housing, jobs, and community investment. “Our focus remains on ensuring our members have the liquidity and resources they need to serve their communities effectively in our three-state region of Arizona, California, and Nevada,” Siciliano said.

“This is a pivotal time for housing and financial markets, and I am pleased to continue working with the Board in this new capacity,” said Ms. McCargo. “I look forward to supporting the Bank and the broader FHLBank System in advancing policies that promote financial stability and access to capital.”

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, equitable, and resilient.

Contact:

Tom Flannigan, Director of Public Relations
415-616-2695
Tom.Flannigan@fhlbsf.com
FHLBank San Francisco

The MIL Network –

January 31, 2025

MIL-OSI: Financial Institutions, Inc. Announces Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

WARSAW, N.Y., Jan. 30, 2025 (GLOBE NEWSWIRE) — Financial Institutions, Inc. (NASDAQ: FISI) (the “Company,” “we” or “us”), parent company of Five Star Bank (the “Bank”) and Courier Capital, LLC (“Courier Capital”), today reported financial and operational results for the fourth quarter and year ended December 31, 2024.

These results reflect the Company’s previously disclosed balance sheet restructuring plan, which was executed in December following its successful and oversubscribed underwritten public common stock offering. As part of the restructuring, the Bank sold $653.5 million of available-for-sale (“AFS”) investment securities, which resulted in a pre-tax loss on the sale of securities of $100.2 million in the fourth quarter. The after-tax impact of the loss of approximately $75 million was entirely funded by a portion of the capital raised through the Company’s equity offering that was downstreamed to the Bank. The net proceeds from the pre-tax sale of the securities were reinvested into higher yielding, agency wrapped investment securities.

The Company reported a net loss of $65.7 million in the fourth quarter of 2024, compared to net income of $13.5 million in the third quarter of 2024 and net income of $9.8 million in the fourth quarter of 2023. After preferred dividends, net loss available to common shareholders was $66.1 million, or ($4.02) per diluted share, in the fourth quarter of 2024, compared to net income of $13.1 million, or $0.84 per diluted share, in the third quarter of 2024, and net income of $9.4 million, or $0.61 per diluted share, in the fourth quarter of 2023. The Company recorded a provision for credit losses of $6.5 million in the current quarter, compared to $3.1 million in the linked quarter and $5.3 million in the prior year quarter.

The Company reported a full year 2024 net loss of $24.5 million, compared to net income of $50.3 million in 2023. After preferred dividends, net loss available to common shareholders was $26.0 million, or ($1.66) per diluted share, for 2024 compared to net income available to common shareholders of $48.8 million, or $3.15 per diluted share, in 2023. Provision for credit losses was $6.2 million in 2024 and $13.7 million in 2023.

Fourth Quarter and Full Year 2024 Key Results:

Net interest margin was up to 2.91% for the fourth quarter, up two basis points from the linked quarter and up 13 basis points from the year-ago quarter. Full year net interest margin of 2.86% compares to 2.94% in 2023.
Net interest income of $41.6 million in the fourth quarter of 2024 increased $952 thousand, or 2.3%, and $1.7 million, or 4.4%, from the linked and year-ago quarters, respectively. Full year net interest income of $163.6 million was down $2.1 million, or 1.3%, from 2023.
Total loans were $4.48 billion at December 31, 2024, reflecting an increase of $76.2 million, or 1.7%, during the quarter and an increase of $17.1 million, or 0.4%, during the year. Commercial loans totaled $2.86 billion at December 31, 2024, reflecting an increase of $104.8 million, or 3.8%, during the quarter and an increase of $123.9 million, or 4.5%, during the year.
Total deposits were $5.10 billion at December 31, 2024, down $201.9 million, or 3.8%, from September 30, 2024, primarily due to seasonal public deposit outflows, and down $108.2 million, or 2.1%, from the prior year end, driven by a reduction in brokered deposits.
Provision for credit losses of $6.5 million in the current quarter was driven by a combination of factors, including the impact of loan growth during the period, an increase in net charge-offs relative to the linked quarter, and higher qualitative factors overall.
Allowance for credit losses on loans to total loans was 1.07% at year-end 2024, compared to 1.01% at September 30, 2024 and 1.14% one year prior.
The Company reported stable credit quality metrics, as measured by annual net charge-offs to average loans of 0.20% for both 2024 and 2023.

“Our Company navigated an incredibly dynamic 2024, rising above challenges to execute strategic initiatives that position us well not only heading into 2025, but for years to come. Our successful equity offering in the fourth quarter enabled us to undertake a balance sheet restructuring that is expected to contribute meaningfully to earnings, net interest margin, efficiency ratio, return on average assets and the quality of capital moving forward,” said President and Chief Executive Officer Martin K. Birmingham. “We believe these measures will allow us to accelerate operating performance with minimal downside risk, supporting our plans for continued organic growth.”

“While loan growth was modest in 2024, in part reflecting the intentional reduction of our consumer indirect balances that partially offset commercial growth of 4.5% during the year, we remain enthused about organic growth opportunities in our core markets, as we finished 2024 with a strong fourth quarter from a commercial loan production standpoint, and we remain keenly focused on driving credit-disciplined loan growth to ensure the continued strength and stability of our asset quality metrics.”

Chief Financial Officer and Treasurer W. Jack Plants II added, “As a result of our strategic actions through the course of the year, from the sale of our insurance subsidiary in April, to our successful and oversubscribed equity offering in December, our regulatory and tangible capital positions improved meaningfully and core operations have strong momentum to start 2025. We reported a common equity tier 1 ratio of 10.88%, up 145 basis points, and a tangible common equity ratio of 8.40%, up 240 basis points, both from year-end 2023. The upsizing of our equity offering provides us ample dry powder that we are committed to deploying thoughtfully, in a way that supports our long-term value creation objectives.”

Capital Raise and Subsequent Balance Sheet Restructuring

As previously disclosed, the Company completed an underwritten common stock offering on December 13, 2024. Through the public offering, the Company sold 4,600,000 shares of common stock, 600,000 shares of which were sold pursuant to the exercise of the underwriters’ overallotment option. Net proceeds from the capital raise were approximately $108.5 million.

As expected, a portion of the proceeds was used to fund losses associated with a strategic investment securities restructuring. In late December, the Company completed its previously disclosed balance sheet restructuring plan, through which the Bank sold $653.5 million of AFS securities with a weighted average book yield of 1.74% for a pre-tax loss of $100.2 million. The after-tax impact of the loss was approximately $75 million. The Bank utilized net proceeds from the sale of securities to purchase higher-yielding agency wrapped investment securities with a face value of $566.2 million and a weighted average book yield of 5.16%, coupled with an additional $76.4 million of agency wrapped securities with a weighted average yield of 5.45%. Following the transactions, the AFS portfolio has an average duration of approximately 6.2 years and a tax equivalent yield of 4.25%. The cumulative tangible book value earnback from the restructuring is expected to be approximately 3.75 years.

Net Interest Income and Net Interest Margin

Net interest income was $41.6 million for the fourth quarter of 2024, an increase of $1.0 million from the third quarter of 2024 and an increase of $1.7 million from the fourth quarter of 2023.

Average interest-earning assets for the current quarter were $5.72 billion, an increase of $104.1 million from the third quarter of 2024 due to a $72.1 million increase in the average balance of Federal Reserve interest-earning cash, a $19.2 million increase in average loans and a $12.8 million increase in the average balance of investment securities. Average interest-earning assets for the current quarter were $10.9 million lower than the fourth quarter of 2023 due to a $39.9 million decrease in the average balance of investment securities, partially offset by a $19.0 million increase in the average balance of Federal Reserve interest-earning cash and a $10.0 million increase in average loans.

Average interest-bearing liabilities for the current quarter were $4.48 billion, an increase of $76.0 million from the third quarter of 2024, primarily due to a $65.8 million increase in average interest-bearing demand deposits, a $53.4 million increase in average savings and money market deposits, and a $29.3 million increase in average time deposits, partially offset by a $72.6 million decrease in average short-term borrowings. Average interest-bearing liabilities for the fourth quarter of 2024 were $18.3 million lower than the year-ago quarter, due to a $56.5 million decrease in average savings and money market deposits, a $27.8 million decrease in average borrowings, and a $23.3 million decrease in average interest-bearing demand deposits, partially offset by a $89.2 million increase in average time deposits.

Net interest margin was 2.91% in the current quarter as compared to 2.89% in the third quarter of 2024 and 2.78% in the fourth quarter of 2023. The linked quarter expansion was primarily due to a reduction in funding costs that outpaced a reduction in the average yield on interest-earning assets, reflecting the Federal Reserve interest rate cuts in the latter part of 2024 and the repricing of both loans and deposits, along with a reduction in both the average balance and average rate on short-term borrowings. Expansion from the prior year quarter was due to an increase in the average yield on interest-earning assets, as the overall cost of funds remained flat.

Net interest income was $163.6 million for the full year 2024, down $2.1 million from 2023. Net interest margin was 2.86% for the full year 2024, compared to 2.94% for 2023.

Noninterest (Loss) Income

The Company reported a loss for noninterest income of $91.0 million for the fourth quarter of 2024, compared to noninterest income of $9.4 million in the third quarter of 2024 and $15.4 million in the fourth quarter of 2023.

A net loss on investment securities of $100.1 million was recognized in the fourth quarter of 2024 compared to a net loss of $3.6 million in the fourth quarter of 2023, due to previously disclosed securities portfolio restructurings in both periods.
Investment advisory income of $2.6 million was $242 thousand lower than the third quarter of 2024 and $114 thousand lower than the fourth quarter of 2023.
Given the previously disclosed insurance subsidiary asset sale on April 1, 2024, the Company recorded insurance income of $3 thousand in both the current and linked quarters, and $1.6 million in the year-ago quarter.
Income from company owned life insurance of $1.4 million was flat with the third quarter of 2024 and $7.7 million lower than the fourth quarter of 2023, due to a normalized crediting rate associated with the separate account policies purchased in the fourth quarter of 2023.
Income from investments in limited partnerships of $837 thousand was $437 thousand higher than the third quarter of 2024 and $165 thousand higher than the fourth quarter of 2023. The Company has made several investments in limited partnerships, primarily small business investment companies, and accounts for these investments under the equity method. Income from these investments fluctuates based on the maturity and performance of the underlying investments.

The Company recorded a loss for noninterest income of $46.7 million for the full year 2024, compared to income of $48.2 million in 2023.

A net loss on investment securities of $100.1 million was recognized in 2024, compared to a net loss of $3.6 million in 2023, due to the previously disclosed securities portfolio restructurings in both years.
The Company’s sale of the assets of its insurance subsidiary generated a $13.7 million gain in 2024. The $4.6 million decline in insurance income year-over-year was also attributable to the transaction.
Income from company owned life insurance of $5.5 million was $6.6 million lower than in 2023 due to a normalized crediting rate associated with the separate account policies purchased in the fourth quarter of 2023.

Noninterest Expense

Noninterest expense was $36.4 million in the fourth quarter of 2024, compared to $32.5 million in the third quarter of 2024 and $35.0 million in the fourth quarter of 2023, with the increases over both the linked and prior year periods primarily driven by nonrecurring expenses.

Salaries and employee benefits expense of $17.2 million was $1.3 million higher than the third quarter of 2024 and $683 thousand lower than the fourth quarter of 2023. The increase from the linked quarter was primarily due to a $1.3 million nonrecurring settlement accounting adjustment in the Company’s pension plan. The year-over-year decrease was primarily due to the timing of the insurance subsidiary asset sale and the Company’s previously disclosed fourth quarter 2023 organizational changes.
Computer and data processing expense of $6.6 million was $1.3 million higher than the third quarter of 2024 and $1.0 million higher than the fourth quarter of 2023, due to nonrecurring project related expenses.
FDIC assessments expense of $1.6 million was $459 thousand higher than the linked quarter and $235 thousand higher than the year-ago quarter, primarily due to an increase in the FDIC assessment rate due to the securities loss recognized in the fourth quarter of 2024.
Other expense of $4.2 million was up $837 thousand and $519 thousand from the linked and year-ago quarters, respectively. The increases from both the linked and year-ago periods were due in part to New York State capital base tax, while the timing of charitable contributions also contributed to the linked quarter variance.

Noninterest expense was $155.9 million for the full year 2024, $18.7 million higher than 2023, driven by the Company’s previously disclosed deposit-related fraud event.

Salaries and employee benefits expense of $66.1 million decreased $5.8 million from the prior year, reflective of both the timing of the insurance subsidiary asset sale and previously disclosed fourth quarter 2023 organizational changes.
Computer and data processing expense of $22.7 million was $2.6 million higher than 2023, primarily due to the Company’s investments in data efficiency and marketing technology.
Professional services expense of $7.7 million was $2.4 million higher than 2023, primarily attributable to legal expenses associated with the Company’s previously disclosed fraud event.
Deposit-related charged off items totaled $20.3 million in 2024, up $19.1 million from the prior year, as a result of the previously disclosed fraud matter.
Other expense of $15.3 million was up $1.0 million from 2023, primarily due to the previously mentioned New York State capital base tax.

Income Taxes

Income tax benefit was $26.6 million for the fourth quarter of 2024, reflective of the net loss reported for the period, compared to expense of $1.1 million in the third quarter of 2024, and expense of $5.2 million in the fourth quarter of 2023. During the fourth quarter of 2023, the Company incurred additional taxes of approximately $5.4 million associated with the capital gains of the previously mentioned company owned life insurance surrender coupled with a 10% modified endowment contract penalty that is typical of general account surrenders. The Company also recognized federal and state tax benefits related to tax credit investments placed in service and/or amortized during the fourth quarter of 2024, third quarter of 2024, and fourth quarter of 2023, resulting in income tax expense reductions of $1.2 million, $1.3 million, and $901 thousand, respectively.

The effective tax rate was -28.8% for the fourth quarter of 2024, 7.4% for the third quarter of 2024, and 34.5% for the fourth quarter of 2023. The effective tax rate fluctuates on a quarterly basis primarily due to the level of pre-tax (loss) earnings and may differ from statutory rates because of interest income from tax-exempt securities, earnings on company owned life insurance and the impact of tax credit investments. The effective tax rate for full year 2024 was -45.7%, reflecting the impact of the previously mentioned securities transaction loss, compared to 20.3% in 2023.

Balance Sheet and Capital Management

Total assets were $6.11 billion at December 31, 2024, down $45.1 million from September 30, 2024, and down $49.7 million from December 31, 2023.

Investment securities were $1.03 billion at December 31, 2024, up $19.0 million from September 30, 2024, and down $8.8 million from December 31, 2023.

Total loans were $4.48 billion at December 31, 2024, an increase of $76.2 million, or 1.7%, from September 30, 2024, and an increase of $17.1 million, or 0.4%, from December 31, 2023.

Commercial business loans totaled $665.3 million, up $10.8 million, or 1.7%, from September 30, 2024, and down $70.4 million, or 9.6%, from December 31, 2023.
Commercial mortgage loans totaled $2.20 billion, up $94.0 million, or 4.5%, from September 30, 2024, and up $194.3 million, or 9.7%, from December 31, 2023.
Residential real estate loans totaled $650.2 million, up $2.0 million, or 0.3%, from September 30, 2024, and up $384 thousand, or 0.1%, from December 31, 2023.
Consumer indirect loans totaled $845.8 million, down $28.9 million, or 3.3%, from September 30, 2024, and down $103.1 million, or 10.9%, from December 31, 2023.

Total deposits were $5.10 billion at December 31, 2024, down $201.9 million, or 3.8%, from September 30, 2024, and down $108.2 million, or 2.1%, from December 31, 2023. The decrease from September 30, 2024 was primarily the result of a reduction in brokered deposits between periods as well as seasonal outflows of public and reciprocal deposits. The decrease from December 31, 2023 was driven by a reduction in brokered deposits. Public deposit balances represented 21% of total deposits at December 31, 2024, 22% at September 30, 2024 and 20% at December 31, 2023.

Short-term borrowings were $99.0 million at December 31, 2024, compared to $55.0 million at September 30, 2024 and $185.0 million at December 31, 2023. Short-term borrowings and brokered deposits have historically been utilized to manage the seasonality of public deposits.

Shareholders’ equity was $586.1 million at December 31, 2024, compared to $500.3 million at September 30, 2024, and $454.8 million at December 31, 2023. Both the linked quarter and year-over-year increases were primarily driven by additional paid-in-capital resulting from the common stock capital raise executed in the fourth quarter of 2024 and decreases in accumulated other comprehensive loss between periods following the investment securities restructuring.

Common book value per share was $28.33 at December 31, 2024, a decrease of $2.89, or 9.3%, from $31.22 at September 30, 2024, and a decrease of $0.07, or 0.2%, from $28.40 at December 31, 2023. Tangible common book value per share⁽¹⁾ was $25.31 at December 31, 2024, a decrease of $1.97, or 7.2%, from $27.28 at September 30, 2024, and an increase of $1.62, or 6.8%, from $23.69 at December 31, 2023. Per share data variances were attributable to the higher number of shares outstanding at year-end 2024 as a result of the equity offering. The common equity to assets ratio was 9.31% at December 31, 2024, compared to 7.85% at September 30, 2024, and 7.10% at December 31, 2023. Tangible common equity to tangible assets⁽¹⁾, or the TCE ratio, was 8.40%, 6.93% and 6.00% at December 31, 2024, September 30, 2024, and December 31, 2023, respectively. The increases in both ratios from the comparable dates were attributable to the aforementioned additional capital and the decrease in accumulated other comprehensive loss.

During the fourth quarter of 2024, the Company declared a common stock dividend of $0.30 per common share, consistent with the linked and prior year quarters.

The Company’s regulatory capital ratios at December 31, 2024 improved in comparison to the prior quarter and prior year due in part to the fourth quarter capital raise. All ratios continued to exceed all regulatory capital requirements to be considered well capitalized.

Leverage Ratio was 9.43% compared to 8.98% and 8.18% at September 30, 2024, and December 31, 2023, respectively.
Common Equity Tier 1 Capital Ratio was 10.88% compared to 10.28% and 9.43% at September 30, 2024, and December 31, 2023, respectively.
Tier 1 Capital Ratio was 11.21% compared to 10.62% and 9.76% at September 30, 2024, and December 31, 2023, respectively.
Total Risk-Based Capital Ratio was 13.60% compared to 12.95% and 12.13% at September 30, 2024, and December 31, 2023, respectively.

Credit Quality

Non-performing loans were $41.4 million, or 0.92% of total loans, at December 31, 2024, as compared to $40.7 million, or 0.93% of total loans, at September 30, 2024, and $26.7 million, or 0.60% of total loans, at December 31, 2023. The increase in non-performing loans from December 31, 2023 was primarily driven by one commercial loan relationship that was placed on nonaccrual during the third quarter of 2024. Net charge-offs were $2.8 million, representing 0.25% of average loans on an annualized basis, for the current quarter, as compared to net charge-offs of $1.7 million, or an annualized 0.15% of average loans, in the third quarter of 2024 and net charge-offs of $4.2 million, or an annualized 0.38%, in the fourth quarter of 2023.

At December 31, 2024, the allowance for credit losses on loans to total loans ratio was 1.07%, compared to 1.01% at September 30, 2024 and 1.14% at December 31, 2023.

Provision for credit losses was $6.5 million in the current quarter, compared to $3.1 million in the linked quarter and $5.3 million in the prior year quarter. Provision for credit losses on loans was $6.1 million in the current quarter, compared to $2.4 million in the third quarter of 2024 and $5.7 million in the fourth quarter of 2023. The allowance for unfunded commitments, also included in provision for credit losses as required by the current expected credit loss standard (“CECL”), totaled a provision of $321 thousand in the fourth quarter of 2024, a provision of $713 thousand in the third quarter of 2024, and a credit of $403 thousand in the fourth quarter of 2023. The provision for credit losses for the fourth quarter of 2024 was driven by a combination of factors, including the impact of loan growth during the quarter, an increase in net charge-offs as compared to the third quarter, and higher qualitative factors overall.

The Company has remained strategically focused on the importance of credit discipline, allocating resources to credit and risk management functions as the loan portfolio has grown. The ratio of allowance for credit losses on loans to non-performing loans was 116% at December 31, 2024, 110% at September 30, 2024, and 192% at December 31, 2023, with the year-over-year decrease reflective of the higher level of nonperforming loans reported at year-end.

Subsequent Events

The Company is required, under generally accepted accounting principles, to evaluate subsequent events through the filing of its consolidated financial statements for the year ended December 31, 2024, in its Annual Report on Form 10-K. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of December 31, 2024, and will adjust amounts preliminarily reported, if necessary.

Conference Call

The Company will host an earnings conference call and audio webcast on January 31, 2025 at 8:30 a.m. Eastern Time. The call will be hosted by Martin K. Birmingham, President and Chief Executive Officer, and W. Jack Plants II, Chief Financial Officer and Treasurer. The live webcast will be available in listen-only mode on the Company’s website at www.FISI-investors.com. Within the United States, listeners may also access the call by dialing 1-833-470-1428 and providing the access code 393817. The webcast replay will be available on the Company’s website for at least 30 days.

About Financial Institutions, Inc.

Financial Institutions, Inc. (NASDAQ: FISI) is a financial holding company with approximately $6.1 billion in assets offering banking and wealth management products and services. Its Five Star Bank subsidiary provides consumer and commercial banking and lending services to individuals, municipalities and businesses through banking locations spanning Western and Central New York and a commercial loan production office serving the Mid-Atlantic region. Courier Capital, LLC offers customized investment management, consulting and retirement plan services to individuals, businesses, institutions, foundations and retirement plans. Learn more at Five-StarBank.com and FISI-Investors.com.

Non-GAAP Financial Information

In addition to results presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. A reconciliation of these non-GAAP measures to GAAP measures is included in Appendix A to this document.

The Company believes that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, performance trends and financial position. Our management uses these measures for internal planning and forecasting purposes and we believe that our presentation and discussion, together with the accompanying reconciliations, allows investors, security analysts and other interested parties to view our performance and the factors and trends affecting our business in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP measures, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure to evaluate the Company. Non-GAAP financial measures have inherent limitations, are not uniformly applied and are not audited. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

Safe Harbor Statement

This press release may contain forward-looking statements as defined by Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “believe,” “anticipate,” “continue,” “estimate,” “expect,” “focus,” “forecast,” “intend,” “may,” “plan,” “preliminary,” “should,” “target” or “will.” Statements herein are based on certain assumptions and analyses by the Company and factors it believes are appropriate in the circumstances. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: additional information regarding the deposit fraudulent activity; changes in interest rates; inflation; changes in deposit flows and the cost and availability of funds; the Company’s ability to implement its strategic plan, including by expanding its commercial lending footprint and integrating its acquisitions; whether the Company experiences greater credit losses than expected; whether the Company experiences breaches of its, or third party, information systems; the attitudes and preferences of the Company’s customers; legal and regulatory proceedings and related matters, including any action described in our reports filed with the SEC, could adversely affect us and the banking industry in general; the competitive environment; fluctuations in the fair value of securities in its investment portfolio; changes in the regulatory environment and the Company’s compliance with regulatory requirements; and general economic and credit market conditions nationally and regionally; and the macroeconomic volatility related to global political unrest. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language and risk factors included in the Company’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other documents filed with the SEC. Except as required by law, the Company undertakes no obligation to revise these statements following the date of this press release.

⁽¹⁾ See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.

For additional information contact:
Kate Croft
Director of Investor and External Relations
(716) 817-5159
klcroft@five-starbank.com


FINANCIAL INSTITUTIONS, INC. Selected Financial Information (Unaudited) (Amounts in thousands, except per share amounts)
	2024												2023
SELECTED BALANCE SHEET DATA:	December 31,			September 30,			June 30,			March 31,			December 31,
Cash and cash equivalents	$	87,321		$	249,569		$	146,347		$	237,038		$	124,442
Investment securities:
Available for sale		911,105			886,816			871,635			923,761			887,730
Held-to-maturity, net		116,001			121,279			128,271			143,714			148,156
Total investment securities		1,027,106			1,008,095			999,906			1,067,475			1,035,886
Loans held for sale		2,280			2,495			2,099			504			1,370
Loans:
Commercial business		665,321			654,519			713,947			707,564			735,700
Commercial mortgage–construction		582,619			533,506			518,013			528,694			493,003
Commercial mortgage–multifamily		470,954			467,527			463,171			453,027			452,155
Commercial mortgage–non-owner occupied		857,987			814,392			814,953			798,637			788,515
Commercial mortgage–owner occupied		288,036			290,216			289,733			264,698			271,646
Residential real estate loans		650,206			648,241			647,675			648,160			649,822
Residential real estate lines		75,552			76,203			75,510			75,668			77,367
Consumer indirect		845,772			874,651			894,596			920,428			948,831
Other consumer		42,757			43,734			43,870			45,170			45,100
Total loans		4,479,204			4,402,989			4,461,468			4,442,046			4,462,139
Allowance for credit losses–loans		48,041			44,678			43,952			43,075			51,082
Total loans, net		4,431,163			4,358,311			4,417,516			4,398,971			4,411,057
Total interest-earning assets		5,602,570			5,666,972			5,709,148			5,857,616			5,702,904
Goodwill and other intangible assets, net		60,758			60,867			60,979			72,287			72,504
Total assets		6,111,187			6,156,317			6,131,772			6,298,598			6,160,881
Deposits:
Noninterest-bearing demand		950,351			978,660			939,346			972,801			1,010,614
Interest-bearing demand		705,195			793,996			711,580			798,831			713,158
Savings and money market		1,904,013			2,027,181			2,007,256			2,064,539			2,084,444
Time deposits		1,545,172			1,506,764			1,475,139			1,560,586			1,404,696
Total deposits		5,104,731			5,306,601			5,133,321			5,396,757			5,212,912
Short-term borrowings		99,000			55,000			202,000			133,000			185,000
Long-term borrowings, net		124,842			124,765			124,687			124,610			124,532
Total interest-bearing liabilities		4,405,912			4,507,706			4,520,662			4,681,566			4,511,830
Shareholders’ equity		586,108			500,342			467,667			445,734			454,796
Common shareholders’ equity		568,823			483,050			450,375			428,442			437,504
Tangible common equity ⁽¹⁾		508,065			422,183			389,396			356,155			365,000
Accumulated other comprehensive loss	$	(52,604	)	$	(102,029	)	$	(125,774	)	$	(126,264	)	$	(119,941	)

Common shares outstanding		20,077			15,474			15,472			15,447			15,407
Treasury shares		623			625			627			653			692
CAPITAL RATIOS AND PER SHARE DATA:
Leverage ratio		9.43	%		8.98	%		8.61	%		8.03	%		8.18	%
Common equity Tier 1 capital ratio		10.88	%		10.28	%		10.03	%		9.43	%		9.43	%
Tier 1 capital ratio		11.21	%		10.62	%		10.36	%		9.76	%		9.76	%
Total risk-based capital ratio		13.60	%		12.95	%		12.65	%		12.04	%		12.13	%
Common equity to assets		9.31	%		7.85	%		7.34	%		6.80	%		7.10	%
Tangible common equity to tangible assets ⁽¹⁾		8.40	%		6.93	%		6.41	%		5.72	%		6.00	%

Common book value per share	$	28.33		$	31.22		$	29.11		$	27.74		$	28.40
Tangible common book value per share ⁽¹⁾	$	25.31		$	27.28		$	25.17		$	23.06		$	23.69

^1. See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.


FINANCIAL INSTITUTIONS, INC. Selected Financial Information (Unaudited) (Amounts in thousands, except per share amounts)
	Year Ended						2024												2023
	December 31,						Fourth			Third			Second			First			Fourth
SELECTED INCOME STATEMENT DATA:	2024			2023			Quarter			Quarter			Quarter			Quarter			Quarter
Interest income	$	313,231		$	286,133		$	78,119		$	77,911		$	78,788		$	78,413		$	76,547
Interest expense		149,642			120,418			36,486			37,230			37,595			38,331			36,661
Net interest income		163,589			165,715			41,633			40,681			41,193			40,082			39,886
Provision (benefit) for credit losses		6,150			13,681			6,461			3,104			2,041			(5,456	)		5,271
Net interest income after provision (benefit) for credit losses		157,439			152,034			35,172			37,577			39,152			45,538			34,615
Noninterest (loss) income:
Service charges on deposits		4,233			4,625			1,074			1,103			979			1,077			1,168
Insurance income		2,144			6,708			3			3			4			2,134			1,615
Card interchange income		7,855			8,220			2,045			1,900			2,008			1,902			2,080
Investment advisory		10,713			10,955			2,555			2,797			2,779			2,582			2,669
Company owned life insurance		5,487			12,106			1,425			1,404			1,360			1,298			9,132
Investments in limited partnerships		2,382			1,783			837			400			803			342			672
Loan servicing		716			479			295			88			158			175			84
Income (loss) from derivative instruments, net		726			1,350			(37	)		212			377			174			(68	)
Net gain on sale of loans held for sale		618			566			186			220			124			88			217
Net loss on investment securities		(100,055	)		(3,576	)		(100,055	)		–			–			–			(3,576	)
Net gain (loss) on other assets		13,614			(6	)		(19	)		138			13,508			(13	)		(37	)
Net (loss) gain on tax credit investments		(775	)		(252	)		(636	)		(170	)		406			(375	)		(207	)
Other		5,661			5,286			1,291			1,345			1,508			1,517			1,619
Total noninterest (loss) income		(46,681	)		48,244			(91,036	)		9,440			24,014			10,901			15,368
Noninterest expense:
Salaries and employee benefits		66,126			71,889			17,159			15,879			15,748			17,340			17,842
Occupancy and equipment		14,361			14,798			3,791			3,370			3,448			3,752			3,739
Professional services		7,702			5,259			1,571			1,965			1,794			2,372			1,415
Computer and data processing		22,689			20,110			6,608			5,353			5,342			5,386			5,562
Supplies and postage		1,935			1,873			504			519			437			475			455
FDIC assessments		5,284			4,902			1,551			1,092			1,346			1,295			1,316
Advertising and promotions		1,573			1,926			465			371			440			297			370
Amortization of intangibles		552			910			109			112			114			217			221
Deposit-related charged-off items		20,341			1,201			354			410			398			19,179			223
Restructuring charges		35			114			35			–			–			–			188
Other		15,286			14,243			4,235			3,398			3,953			3,700			3,716
Total noninterest expense		155,884			137,225			36,382			32,469			33,020			54,013			35,047
(Loss) income before income taxes		(45,126	)		63,053			(92,246	)		14,548			30,146			2,426			14,936
Income tax (benefit) expense		(20,604	)		12,789			(26,559	)		1,082			4,517			356			5,156
Net (loss) income		(24,522	)		50,264			(65,687	)		13,466			25,629			2,070			9,780
Preferred stock dividends		1,459			1,459			365			365			364			365			365
Net (loss) income available to common shareholders	$	(25,981	)	$	48,805		$	(66,052	)	$	13,101		$	25,265		$	1,705		$	9,415
FINANCIAL RATIOS:
Earnings (loss) per share–basic	$	(1.66	)	$	3.17		$	(4.02	)	$	0.85		$	1.64		$	0.11		$	0.61
Earnings (loss) per share–diluted	$	(1.66	)	$	3.15		$	(4.02	)	$	0.84		$	1.62		$	0.11		$	0.61
Cash dividends declared on common stock	$	1.20		$	1.20		$	0.30		$	0.30		$	0.30		$	0.30		$	0.30
Common dividend payout ratio		-72.29	%		37.85	%		-7.46	%		35.29	%		18.29	%		272.73	%		49.18	%
Dividend yield (annualized)		4.40	%		5.63	%		4.37	%		4.69	%		6.25	%		6.41	%		5.59	%
Return on average assets (annualized)		-0.40	%		0.83	%		-4.27	%		0.89	%		1.68	%		0.13	%		0.63	%
Return on average equity (annualized)		-5.15	%		11.86	%		-50.51	%		11.08	%		22.93	%		1.83	%		9.28	%
Return on average common equity (annualized)		-5.66	%		12.01	%		-52.54	%		11.18	%		23.51	%		1.57	%		9.31	%
Return on average tangible common equity (annualized) ⁽¹⁾		-6.58	%		14.64	%		-59.82	%		12.87	%		27.51	%		1.88	%		11.37	%
Efficiency ratio ⁽²⁾		71.75	%		62.96	%		71.74	%		64.70	%		50.58	%		105.77	%		59.48	%
Effective tax rate		-45.7	%		20.3	%		-28.8	%		7.4	%		15.0	%		18.7	%		34.5	%

^1. See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure. ^2. The efficiency ratio is calculated by dividing noninterest expense by net revenue, i.e., the sum of net interest income (fully taxable equivalent) and noninterest income before net gains on investment securities. This is a banking industry measure not required by GAAP.


FINANCIAL INSTITUTIONS, INC. Selected Financial Information (Unaudited) (Amounts in thousands)
	Year Ended						2024												2023
	December 31,						Fourth			Third			Second			First			Fourth
SELECTED AVERAGE BALANCES:	2024			2023			Quarter			Quarter			Quarter			Quarter			Quarter
Federal funds sold and interest-earning deposits	$	115,635		$	80,415		$	121,530		$	49,476		$	134,123		$	158,075		$	102,487
Investment securities ⁽¹⁾		1,171,083			1,249,928			1,159,863			1,147,052			1,194,808			1,182,993			1,199,766
Loans:
Commercial business		689,585			698,861			658,038			673,830			704,272			722,720			702,222
Commercial mortgage–construction		509,461			364,967			558,200			513,768			495,177			470,115			438,768
Commercial mortgage–multifamily		465,244			461,954			458,691			467,801			466,501			468,028			467,226
Commercial mortgage–non-owner occupied		837,495			837,860			843,034			826,275			837,209			843,526			840,226
Commercial mortgage–owner occupied		270,646			243,574			288,502			285,061			260,495			248,172			249,013
Residential real estate loans		648,604			612,767			649,549			647,844			648,099			648,921			640,955
Residential real estate lines		75,951			76,350			76,164			75,671			75,575			76,396			76,741
Consumer indirect		894,720			997,538			858,854			881,133			905,056			934,380			965,571
Other consumer		45,790			28,741			43,333			43,789			44,552			51,535			43,664
Total loans		4,437,496			4,322,612			4,434,365			4,415,172			4,436,936			4,463,793			4,424,386
Total interest-earning assets		5,724,214			5,652,955			5,715,758			5,611,700			5,765,867			5,804,861			5,726,639
Goodwill and other intangible assets, net		64,247			72,965			60,824			60,936			62,893			72,409			72,628
Total assets		6,129,414			6,025,383			6,121,385			6,018,390			6,153,429			6,225,760			6,127,190
Interest-bearing liabilities:
Interest-bearing demand		734,731			818,541			757,221			691,412			741,006			749,512			780,546
Savings and money market		2,012,215			1,781,776			1,992,360			1,938,935			2,036,772			2,081,815			2,048,822
Time deposits		1,511,507			1,477,596			1,545,071			1,515,745			1,505,665			1,479,133			1,455,867
Short-term borrowings		126,192			186,910			56,513			129,130			140,110			179,747			84,587
Long-term borrowings, net		124,679			121,903			124,795			124,717			124,640			124,562			124,484
Total interest-bearing liabilities		4,509,324			4,386,726			4,475,960			4,399,939			4,548,193			4,614,769			4,494,306
Noninterest-bearing demand deposits		953,341			1,030,648			947,127			952,970			950,819			962,522			1,006,465
Total deposits		5,211,794			5,108,561			5,241,779			5,099,062			5,234,262			5,272,982			5,291,700
Total liabilities		5,652,983			5,601,697			5,603,999			5,535,112			5,703,929			5,770,725			5,708,861
Shareholders’ equity		476,431			423,686			517,386			483,278			449,500			455,035			418,329
Common equity		459,139			406,394			500,096			465,986			432,208			437,743			401,037
Tangible common equity ⁽²⁾		394,892			333,429			439,272			405,050			369,315			365,334			328,409
Common shares outstanding:
Basic		15,683			15,376			16,415			15,464			15,444			15,403			15,393
Diluted		15,683			15,475			16,415			15,636			15,556			15,543			15,511
SELECTED AVERAGE YIELDS: (Tax equivalent basis)
Investment securities ⁽³⁾		2.20	%		1.92	%		2.38	%		2.14	%		2.17	%		2.09	%		2.03	%
Loans		6.36	%		5.98	%		6.28	%		6.42	%		6.40	%		6.33	%		6.21	%
Total interest-earning assets		5.48	%		5.07	%		5.45	%		5.53	%		5.50	%		5.43	%		5.32	%
Interest-bearing demand		1.18	%		0.87	%		1.34	%		1.05	%		1.18	%		1.11	%		1.26	%
Savings and money market		3.03	%		2.32	%		2.94	%		3.07	%		3.01	%		3.08	%		3.01	%
Time deposits		4.66	%		3.98	%		4.53	%		4.72	%		4.72	%		4.68	%		4.57	%
Short-term borrowings		2.67	%		3.69	%		0.15	%		2.64	%		2.75	%		3.42	%		1.38	%
Long-term borrowings, net		5.03	%		5.06	%		5.03	%		5.03	%		5.02	%		5.02	%		5.05	%
Total interest-bearing liabilities		3.32	%		2.75	%		3.24	%		3.37	%		3.32	%		3.34	%		3.24	%
Net interest rate spread		2.16	%		2.32	%		2.21	%		2.16	%		2.18	%		2.09	%		2.08	%
Net interest margin		2.86	%		2.94	%		2.91	%		2.89	%		2.87	%		2.78	%		2.78	%

^1. Includes investment securities at adjusted amortized cost. ^2. See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure. ^3. The interest on tax-exempt securities is calculated on a tax-equivalent basis assuming a Federal income tax rate of 21%.


FINANCIAL INSTITUTIONS, INC. Selected Financial Information (Unaudited) (Amounts in thousands)
	Year Ended						2024												2023
	December 31,						Fourth			Third			Second			First			Fourth
ASSET QUALITY DATA:	2024			2023			Quarter			Quarter			Quarter			Quarter			Quarter
Allowance for Credit Losses – Loans
Beginning balance	$	51,082		$	45,413		$	44,678		$	43,952		$	43,075		$	51,082		$	49,630
Net loan charge-offs (recoveries):
Commercial business		98			(109	)		131			(3	)		7			(37	)		(50	)
Commercial mortgage–construction		–			980			–			–			–			–			980
Commercial mortgage–multifamily		12			–			–			13			–			–			–
Commercial mortgage–non-owner occupied		(8	)		(875	)		(5	)		(1	)		(1	)		(1	)		13
Commercial mortgage–owner occupied		(4	)		(70	)		(1	)		(2	)		(2	)		–			–
Residential real estate loans		95			89			(4	)		(1	)		96			4			22
Residential real estate lines		–			41			–			–			–			–			–
Consumer indirect		7,927			7,595			2,557			1,553			844			2,973			3,174
Other consumer		566			893			100			106			178			182			82
Total net charge-offs (recoveries)		8,686			8,544			2,778			1,665			1,122			3,121			4,221
Provision for credit losses – loans		5,645			14,213			6,141			2,391			1,999			(4,886	)		5,673
Ending balance	$	48,041		$	51,082		$	48,041		$	44,678		$	43,952		$	43,075		$	51,082

Net charge-offs (recoveries) to average loans (annualized):
Commercial business		0.01	%		-0.02	%		0.80	%		0.00	%		0.00	%		-0.02	%		-0.03	%
Commercial mortgage–construction		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.20	%
Commercial mortgage–multifamily		0.00	%		0.00	%		0.00	%		0.01	%		0.00	%		0.00	%		0.00	%
Commercial mortgage–non-owner occupied		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Commercial mortgage–owner occupied		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Residential real estate loans		0.01	%		0.01	%		0.00	%		0.00	%		0.06	%		0.00	%		0.01	%
Residential real estate lines		0.00	%		0.05	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Consumer indirect		0.89	%		0.76	%		1.18	%		0.70	%		0.38	%		1.28	%		1.30	%
Other consumer		1.23	%		3.11	%		0.91	%		0.95	%		1.62	%		1.41	%		0.75	%
Total loans		0.20	%		0.20	%		0.25	%		0.15	%		0.10	%		0.28	%		0.38	%

Supplemental information ⁽¹⁾
Non-performing loans:
Commercial business	$	5,609		$	5,664		$	5,609		$	5,752		$	5,680		$	5,956		$	5,664
Commercial mortgage–construction		20,280			5,320			20,280			20,280			4,970			5,320			5,320
Commercial mortgage–multifamily		–			189			–			71			183			185			189
Commercial mortgage–non-owner occupied		4,773			4,651			4,773			4,903			4,919			4,929			4,651
Commercial mortgage–owner occupied		354			403			354			366			380			392			403
Residential real estate loans		6,918			6,364			6,918			5,790			5,961			6,797			6,364
Residential real estate lines		253			221			253			232			183			235			221
Consumer indirect		3,157			3,814			3,157			3,291			2,897			2,880			3,814
Other consumer		62			34			62			57			36			36			34
Total non-performing loans		41,406			26,660			41,406			40,742			25,209			26,730			26,660
Foreclosed assets		60			142			60			109			63			140			142
Total non-performing assets	$	41,466		$	26,802		$	41,466		$	40,851		$	25,272		$	26,870		$	26,802

Total non-performing loans to total loans		0.92	%		0.60	%		0.92	%		0.93	%		0.57	%		0.60	%		0.60	%
Total non-performing assets to total assets		0.68	%		0.44	%		0.68	%		0.66	%		0.41	%		0.43	%		0.44	%
Allowance for credit losses–loans to total loans		1.07	%		1.14	%		1.07	%		1.01	%		0.99	%		0.97	%		1.14	%
Allowance for credit losses–loans to non-performing loans		116	%		192	%		116	%		110	%		174	%		161	%		192	%

^1. At period end.


FINANCIAL INSTITUTIONS, INC. Appendix A — Reconciliation to Non-GAAP Financial Measures (Unaudited) (In thousands, except per share amounts)
	Year Ended						2024												2023
	December 31,						Fourth			Third			Second			First			Fourth
	2024			2023			Quarter			Quarter			Quarter			Quarter			Quarter
Ending tangible assets:
Total assets							$	6,111,187		$	6,156,317		$	6,131,772		$	6,298,598		$	6,160,881
Less: Goodwill and other intangible assets, net								60,758			60,867			60,979			72,287			72,504
Tangible assets							$	6,050,429		$	6,095,450		$	6,070,793		$	6,226,311		$	6,088,377

Ending tangible common equity:
Common shareholders’ equity							$	568,823		$	483,050		$	450,375		$	428,442		$	437,504
Less: Goodwill and other intangible assets, net								60,758			60,867			60,979			72,287			72,504
Tangible common equity							$	508,065		$	422,183		$	389,396		$	356,155		$	365,000

Tangible common equity to tangible assets ⁽¹⁾								8.40	%		6.93	%		6.41	%		5.72	%		6.00	%

Common shares outstanding								20,077			15,474			15,472			15,447			15,407
Tangible common book value per share ⁽²⁾							$	25.31		$	27.28		$	25.17		$	23.06		$	23.69

Average tangible assets:
Average assets	$	6,129,414		$	6,025,383		$	6,121,385		$	6,018,390		$	6,153,429		$	6,225,760		$	6,127,190
Less: Average goodwill and other intangible assets, net		64,247			72,965			60,824			60,936			62,893			72,409			72,628
Average tangible assets	$	6,065,167		$	5,952,418		$	6,060,561		$	5,957,454		$	6,090,536		$	6,153,351		$	6,054,562

Average tangible common equity:
Average common equity	$	459,139		$	406,394		$	500,096		$	465,986		$	432,208		$	437,743		$	401,037
Less: Average goodwill and other intangible assets, net		64,247			72,965			60,824			60,936			62,893			72,409			72,628
Average tangible common equity	$	394,892		$	333,429		$	439,272		$	405,050		$	369,315		$	365,334		$	328,409

Net (loss) income available to common shareholders	$	(25,981	)	$	48,805		$	(66,052	)	$	13,101		$	25,265		$	1,705		$	9,415
Return on average tangible common equity ⁽³⁾		-6.58	%		14.64	%		-59.82	%		12.87	%		27.51	%		1.88	%		11.37	%

^1. Tangible common equity divided by tangible assets. ^2. Tangible common equity divided by common shares outstanding. ^3. Net income available to common shareholders (annualized) divided by average tangible common equity.

The MIL Network –

January 31, 2025

MIL-OSI: Cipher Mining Announces $50 Million PIPE Investment from SoftBank Group

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Jan. 30, 2025 (GLOBE NEWSWIRE) — Cipher Mining Inc. (NASDAQ:CIFR) (“Cipher” or the “Company”) today announced a $50 million investment from SoftBank Group Corp. (TSE: 9984, “SoftBank”), one of the world’s most prominent investment holding companies. The $50 million PIPE investment will support Cipher’s HPC data center development business and establish SoftBank as a significant primary investor in Cipher.

“We are thrilled to welcome SoftBank as an important investor in Cipher. This investment comes at a pivotal moment in Cipher’s growth trajectory, as the Company continues to attract attention for its pipeline of sites and innovative solutions in industrial-scale data centers. SoftBank’s focus on innovation in technology and AI development aligns with our vision to establish ourselves as a leader in HPC data center development,” said Tyler Page, Cipher’s CEO.

Keefe, Bruyette, & Woods Inc. acted as financial advisor to the Company, and Latham & Watkins LLP acted as legal counsel to the Company.

About Cipher

Cipher is focused on the development and operation of industrial-scale data centers for bitcoin mining and HPC hosting. Cipher aims to be a market leader in innovation, including in bitcoin mining growth, data center construction, and as a hosting partner to the world’s largest HPC companies. To learn more about Cipher, please visit https://www.ciphermining.com/.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws of the United States. Cipher 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 includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release that are not statements of historical fact, such as, statements about Cipher’s beliefs and expectations regarding its planned business model and strategy, its HPC data center development and management plans and objectives, are forward-looking statements and should be evaluated as such. These forward-looking statements generally are identified by the words “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “seeks,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “strategy,” “future,” “forecasts,” “opportunity,” “predicts,” “potential,” “would,” “will likely result,” “continue,” and similar expressions (including the negative versions of such words or expressions).

These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Cipher and its management, are inherently uncertain. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: volatility in the price of Cipher’s securities due to a variety of factors, including changes in the competitive and regulated industry in which Cipher operates, Cipher’s evolving business model and strategy and efforts we may make to modify aspects of its business model or engage in various strategic initiatives, variations in performance across competitors, changes in laws and regulations affecting Cipher’s business, and the ability to implement business plans, forecasts, and other expectations and to identify and realize additional opportunities. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of Cipher’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”), as any such factors may be updated from time to time in Cipher’s other filings with the SEC, including without limitation, Cipher’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Cipher assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Contacts:
Investor Contact:
Courtney Knight
Head of Investor Relations at Cipher Mining
courtney.knight@ciphermining.com

Media Contact:
Ryan Dicovitsky / Kendal Till
Dukas Linden Public Relations
CipherMining@DLPR.com

The MIL Network –

January 31, 2025

MIL-OSI: LPL Financial Announces Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

Fourth Quarter 2024

Key Financial Results:

Net Income was $271 million, translating to diluted earnings per share (“EPS”) of $3.59, up 26% from a year ago
Adjusted EPS* increased 21% year-over-year to $4.25
- Gross profit* increased 22% year-over-year to $1,228 million
- Core G&A* increased 16% year-over-year to $422 million
- Adjusted EBITDA* increased 22% year-over-year to $585 million

Key Business Results:

Total advisory and brokerage assets increased 29% year-over-year to $1.7 trillion
- Advisory assets increased 30% year-over-year to $957 billion
- Advisory assets as a percentage of total assets increased to 55.0%, up from 54.3% a year ago
Total organic net new assets were $68 billion, representing 17% annualized growth
- This included $40 billion of assets from Prudential Advisors (“Prudential”), and $2 billion of assets that off-boarded as part of the previously disclosed planned separation from misaligned large OSJs. Prior to these impacts, organic net new assets were $30 billion, translating to an 8% annualized growth rate
Recruited assets⁽¹⁾were a record of $79 billion
- This included $63 billion of assets from Prudential
Advisor count⁽²⁾was 28,888, up 5,202 sequentially and 6,228 year-over-year
- This included approximately 2,200 advisors from Atria Wealth Solutions, Inc. (“Atria”), and approximately 2,800 advisors from Prudential
Total client cash balances were $55 billion, an increase of $9 billion sequentially and $7 billion year-over-year
- Client cash balances as a percentage of total assets were 3.2%, up from 2.9% in the prior quarter and down from 3.6% a year ago

Key Capital and Liquidity Results:

Corporate cash⁽³⁾was $479 million
Leverage ratio⁽⁴⁾was 1.89x
Share repurchases were $100 million and dividends paid were $23 million

Full Year 2024

Key Financial Results:

Net Income was $1.1 billion, translating to diluted EPS of $14.03, up 2% from a year ago
Adjusted EPS* increased 5% year-over-year to $16.51
- Gross profit* increased 12% year-over-year to $4.50 billion
- Core G&A* increased 11% year-over-year to $1.52 billion
- Adjusted EBITDA* increased 7% year-over-year to $2.22 billion

Key Business & Capital and Liquidity Results:

Total organic net new assets were $141 billion, representing a 10% growth rate, up from 9% in 2023
Recruited assets for the year were a record of $149 billion, up approximately 86% from a year ago
Share repurchases were $170 million and dividends paid were $90 million

Key Updates

Large Institutions:

Prudential: Onboarded the retail wealth management business of Prudential, with $63 billion of total assets, of which $40 billion transitioned onto our platform in Q4
Wintrust Financial Corporation: In January 2025, onboarded the wealth management business of Wintrust Investments, LLC and certain private client business at Great Lakes Advisors, LLC (collectively, “Wintrust”), with $16 billion of brokerage and advisory assets, of which $15 billion transitioned onto our platform to-date

M&A:

Atria: Closed the acquisition of Atria, and expect to complete the conversion in mid-2025
The Investment Center, Inc. (“The Investment Center”): On track to close and convert the acquisition of The Investment Center in the first half of 2025
Liquidity & Succession: Deployed approximately $81 million of capital to close 8 deals in Q4, including two external practices

Corporate Debt:

Completed leverage-neutral refinancing of existing $1.0 billion Senior Secured Term Loan B with a new $1.0 billion Senior Unsecured Term Loan A

Core G&A:

2024 Core G&A* was $1,515 million, within our outlook range of $1,510 million to $1,525 million
- Prior to the impact of Prudential and Atria, 2024 Core G&A* increased by approximately 8%
In 2025, we plan to slow the growth of Core G&A*, as our ongoing investments to scale our business are driving greater efficiencies
- Our 2025 Core G&A* outlook range prior to Prudential and Atria is 6% to 8% year-over-year growth, or $1,560 million to $1,600 million
- Including expenses related to Prudential and Atria, our 2025 Core G&A* outlook range is $1,730 million to $1,780 million

SAN DIEGO, Jan. 30, 2025 (GLOBE NEWSWIRE) — LPL Financial Holdings Inc. (Nasdaq: LPLA) (the “Company”) today announced results for its fourth quarter ended December 31, 2024, reporting net income of $271 million, or $3.59 per share. This compares with $218 million, or $2.85 per share, in the fourth quarter of 2023 and $255 million, or $3.39 per share, in the prior quarter.

“2024 marked another milestone year for LPL,” said Rich Steinmeier, CEO. “We delivered double-digit organic asset growth, including the onboarding of one of our largest institutional partners, closed on our acquisition of Atria, continued to advance our pioneering Liquidity & Succession program, and reported record adjusted earnings per share. Looking ahead to 2025, our business momentum and financial strength position us well to continue expanding our leadership across the advisor-mediated marketplace and delivering long-term shareholder value.”

“In Q4, we delivered solid business and financial results,” said Matt Audette, President and CFO. “As we look ahead, we remain excited about the opportunities we have to continue to drive growth, deliver operating leverage, and create long-term shareholder value.”

Dividend Declaration

The Company’s Board of Directors declared a $0.30 per share dividend to be paid on March 25, 2025 to all stockholders of record as of March 11, 2025.

Conference Call and Additional Information

The Company will hold a conference call to discuss its results at 5:00 p.m. ET on Thursday, January 30, 2025. The conference call will be accessible and available for replay at investor.lpl.com/events.

Contacts

Investor Relations
investor.relations@lplfinancial.com

Media Relations
media.relations@lplfinancial.com

About LPL Financial

LPL Financial Holdings Inc. (Nasdaq: LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace⁽⁵⁾, LPL supports nearly 29,000 financial advisors and the wealth management practices of approximately 1,200 financial institutions, servicing and custodying approximately $1.7 trillion in brokerage and advisory assets on behalf of approximately 6 million Americans. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to run thriving businesses. For further information about LPL, please visit www.lpl.com.

Securities and Advisory services offered through LPL Financial LLC (“LPL Financial”) or its affiliate LPL Enterprise, LLC (“LPL Enterprise”), both registered investment advisers and broker-dealers. Members FINRA/SIPC. LPL Financial serves as the clearing and carrying firm for accounts LPL Enterprise introduces to it.

LPL Financial and LPL Enterprise provide financial services only from the United States.

Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial.

We routinely disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website.

Forward-Looking Statements

This press release contains statements regarding:

the amount and timing of the onboarding of acquired, recruited or transitioned brokerage and advisory assets, including Atria, Prudential, The Investment Center and Wintrust;
the Company’s future financial and operating results, growth, plans, priorities and business strategies, including forecasts and statements related to the Company’s ICA yield, service and fee revenue, transaction revenue, core G&A expense, promotional expense, share-based compensation expense, depreciation and amortization and share repurchases; and
future capabilities, future advisor service experience, future investments and capital deployment, including share repurchase activity and dividends, if any, and long-term shareholder value.

These and any other statements that are not related to present facts or current conditions, or that are not purely historical, constitute forward-looking statements. They reflect the Company’s expectations and objectives as of January 30, 2025 and are not guarantees that expectations or objectives expressed or implied will be achieved. The achievement of such expectations and objectives involves risks and uncertainties that may cause actual results, levels of activity or the timing of events to differ materially from those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include:

the failure to satisfy the closing conditions applicable to the Company’s purchase agreement with The Investment Center, including regulatory approvals;
difficulties and delays in onboarding the assets of acquired, recruited or transitioned advisors, including the receipt and timing of regulatory approvals that may be required;
disruptions in the businesses of the Company that could make it more difficult to maintain relationships with advisors and their clients;
the choice by clients of acquired or recruited advisors not to open brokerage and/or advisory accounts at the Company;
changes in general economic and financial market conditions, including retail investor sentiment;
changes in interest rates and fees payable by banks participating in the Company’s client cash programs, including the Company’s success in negotiating agreements with current or additional counterparties;
the Company’s strategy and success in managing client cash program fees;
fluctuations in the levels of advisory and brokerage assets, including net new assets, and the related impact on revenue;
effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and institutions, and their ability to provide financial products and services effectively;
whether retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company;
changes in the growth and profitability of the Company’s fee-based offerings and asset-based revenues;
the effect of current, pending and future legislation, regulation and regulatory actions, including disciplinary actions imposed by federal and state regulators and self-regulatory organizations;
the cost of defending, settling and remediating issues related to regulatory matters or legal proceedings, including civil monetary penalties or actual costs of reimbursing customers for losses in excess of our reserves or insurance;
changes made to the Company’s services and pricing, including in response to competitive developments and current, pending and future legislation, regulation and regulatory actions, and the effect that such changes may have on the Company’s gross profit streams and costs;
the execution of the Company’s capital management plans, including its compliance with the terms of the Company’s amended and restated credit agreement, the committed revolving credit facilities of the Company and LPL Financial, and the indentures governing the Company’s senior unsecured notes;
strategic acquisitions and investments, including pursuant to the Company’s Liquidity & Succession solution, and the effect that such acquisitions and investments may have on the Company’s capital management plans and liquidity;
the price, availability and trading volumes of shares of the Company’s common stock, which will affect the timing and size of future share repurchases by the Company, if any;
the execution of the Company’s plans and its success in realizing the synergies, expense savings, service improvements or efficiencies expected to result from its investments, initiatives and acquisitions, expense plans and technology initiatives;
whether advisors affiliated with Atria, Prudential, The Investment Center, and Wintrust will transition registration to the Company and whether assets reported as serviced by such financial advisors will translate into assets of the Company;
the performance of third-party service providers to which business processes have been transitioned;
the Company’s ability to control operating risks, information technology systems risks, cybersecurity risks and sourcing risks; and
the other factors set forth in the Company’s most recent Annual Report on Form 10-K, as may be amended or updated in the Company’s Quarterly Reports on Form 10-Q or other filings with the Securities and Exchange Commission.

Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this earnings release, and you should not rely on statements contained herein as representing the Company’s view as of any date subsequent to the date of this press release.


LPL Financial Holdings Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

	Three Months Ended						Three Months Ended
	December 31,		September 30,				December 31,
		2024		2024	Change			2023	Change
REVENUE
Advisory	$	1,595,834	$	1,378,050	16	%	$	1,085,497	47	%
Commission:
Sales-based		525,795		429,132	23	%		355,958	48	%
Trailing		439,668		377,400	16	%		326,454	35	%
Total commission		965,463		806,532	20	%		682,412	41	%
Asset-based:
Client cash		378,816		353,855	7	%		352,661	7	%
Other asset-based		290,962		272,336	7	%		228,473	27	%
Total asset-based		669,778		626,191	7	%		581,134	15	%
Service and fee		139,119		145,729	(5	%)		130,680	6	%
Transaction		61,535		58,546	5	%		53,858	14	%
Interest income, net		46,680		49,923	(6	%)		43,312	8	%
Other		33,942		43,423	(22	%)		66,936	(49	%)
Total revenue		3,512,351		3,108,394	13	%		2,643,829	33	%
EXPENSE
Advisory and commission		2,250,427		1,948,065	16	%		1,607,978	40	%
Compensation and benefits		321,933		266,415	21	%		270,709	19	%
Promotional		162,057		164,538	(2	%)		126,800	28	%
Depreciation and amortization		92,032		78,338	17	%		67,936	35	%
Interest expense on borrowings		81,979		67,779	21	%		54,415	51	%
Occupancy and equipment		75,538		69,879	8	%		62,103	22	%
Amortization of other intangibles		42,614		32,461	31	%		28,618	49	%
Brokerage, clearing and exchange		34,789		29,636	17	%		25,917	34	%
Professional services		32,055		26,295	22	%		21,572	49	%
Communications and data processing		18,772		17,916	5	%		17,814	5	%
Other		58,874		59,724	(1	%)		66,180	(11	%)
Total expense		3,171,070		2,761,046	15	%		2,350,042	35	%
INCOME BEFORE PROVISION FOR INCOME TAXES		341,281		347,348	(2	%)		293,787	16	%
PROVISION FOR INCOME TAXES		70,532		92,045	(23	%)		76,232	(7	%)
NET INCOME	$	270,749	$	255,303	6	%	$	217,555	24	%
EARNINGS PER SHARE
Earnings per share, basic	$	3.62	$	3.41	6	%	$	2.89	25	%
Earnings per share, diluted	$	3.59	$	3.39	6	%	$	2.85	26	%
Weighted-average shares outstanding, basic		74,785		74,776	—	%		75,228	(1	%)
Weighted-average shares outstanding, diluted		75,337		75,405	—	%		76,240	(1	%)

LPL Financial Holdings Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

	Years Ended
	December 31,
		2024		2023	Change
REVENUE
Advisory	$	5,461,858	$	4,135,681	32	%
Commission:
Sales-based		1,763,232		1,252,783	41	%
Trailing		1,542,255		1,299,840	19	%
Total commission		3,305,487		2,552,623	29	%
Asset-based:
Client cash		1,426,528		1,509,869	(6	%)
Other asset-based		1,071,170		867,860	23	%
Total asset-based		2,497,698		2,377,729	5	%
Service and fee		552,020		508,437	9	%
Transaction		236,274		199,939	18	%
Interest income, net		187,606		159,415	18	%
Other		144,164		119,024	21	%
Total revenue		12,385,107		10,052,848	23	%
EXPENSE
Advisory and commission		7,751,006		5,915,807	31	%
Compensation and benefits		1,136,717		979,681	16	%
Promotional		589,339		459,233	28	%
Depreciation and amortization		308,527		246,994	25	%
Occupancy and equipment		281,210		248,620	13	%
Interest expense on borrowings		274,181		186,804	47	%
Amortization of other intangibles		135,234		107,211	26	%
Brokerage, clearing and exchange		127,941		105,984	21	%
Professional services		93,729		72,583	29	%
Communications and data processing		75,838		75,717	—	%
Other		218,493		209,439	4	%
Total expense		10,992,215		8,608,073	28	%
INCOME BEFORE PROVISION FOR INCOME TAXES		1,392,892		1,444,775	(4	%)
PROVISION FOR INCOME TAXES		334,276		378,525	(12	%)
NET INCOME	$	1,058,616	$	1,066,250	(1	%)
EARNINGS PER SHARE
Earnings per share, basic	$	14.17	$	13.88	2	%
Earnings per share, diluted	$	14.03	$	13.69	2	%
Weighted-average shares outstanding, basic		74,713		76,807	(3	%)
Weighted-average shares outstanding, diluted		75,427		77,861	(3	%)

LPL Financial Holdings Inc.
Consolidated Statements of Financial Condition
(In thousands, except share data)
(Unaudited)

	December 31, 2024			September 30, 2024			December 31, 2023
ASSETS
Cash and equivalents	$	967,079		$	1,474,954		$	465,671
Cash and equivalents segregated under federal or other regulations		1,597,249			1,382,867			2,007,312
Restricted cash		119,724			104,881			108,180
Receivables from clients, net		633,834			622,015			588,585
Receivables from brokers, dealers and clearing organizations		76,545			53,763			50,069
Advisor loans, net		2,281,088			1,913,363			1,479,690
Other receivables, net		902,777			802,186			743,317
Investment securities ($42,267, $94,694 and $76,088 at fair value at December 31, 2024, September 30, 2024 and December 31, 2023, respectively)		57,481			111,096			91,311
Property and equipment, net		1,210,027			1,144,676			933,091
Goodwill		2,172,873			1,868,193			1,856,648
Other intangibles, net		1,482,988			782,426			671,585
Other assets		1,815,739			1,681,455			1,390,021
Total assets	$	13,317,404		$	11,941,875		$	10,385,480
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Client payables	$	1,898,665		$	2,039,140		$	2,266,176
Payables to brokers, dealers and clearing organizations		129,228			211,054			163,337
Accrued advisory and commission expenses payable		323,996			252,881			216,541
Corporate debt and other borrowings, net		5,494,724			4,441,913			3,734,111
Accounts payable and accrued liabilities		588,450			485,927			485,963
Other liabilities		1,951,739			1,739,209			1,440,373
Total liabilities		10,386,802			9,170,124			8,306,501
STOCKHOLDERS’ EQUITY:
Common stock, $0.001 par value; 600,000,000 shares authorized; 130,914,541, 130,779,259 shares and 130,233,328 shares issued at December 31, 2024, September 30, 2024 and December 31, 2023, respectively		131			131			130
Additional paid-in capital		2,066,268			2,059,207			1,987,684
Treasury stock, at cost — 56,253,909, 55,968,552 shares and 55,576,970 shares at December 31, 2024, September 30, 2024 and December 31, 2023, respectively		(4,202,322	)		(4,102,319	)		(3,993,949	)
Retained earnings		5,066,525			4,814,732			4,085,114
Total stockholders’ equity		2,930,602			2,771,751			2,078,979
Total liabilities and stockholders’ equity	$	13,317,404		$	11,941,875		$	10,385,480

LPL Financial Holdings Inc.
Management’s Statements of Operations
(In thousands, except per share data)
(Unaudited)

Certain information in this release is presented as reviewed by the Company’s management and includes information derived from the Company’s consolidated statements of income, non-GAAP financial measures and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled“Non-GAAP Financial Measures”in this release.

	Quarterly Results
	Q4 2024			Q3 2024			Change		Q4 2023			Change
Gross Profit₍₆₎
Advisory	$	1,595,834		$	1,378,050		16	%	$	1,085,497		47	%
Trailing commissions		439,668			377,400		16	%		326,454		35	%
Sales-based commissions		525,795			429,132		23	%		355,958		48	%
Advisory fees and commissions		2,561,297			2,184,582		17	%		1,767,909		45	%
Production-based payout₍₇₎		(2,248,674	)		(1,910,634	)	18	%		(1,548,540	)	45	%
Advisory fees and commissions, net of payout		312,623			273,948		14	%		219,369		43	%
Client cash₍₈₎		397,001			372,333		7	%		373,979		6	%
Other asset-based₍₉₎		290,962			272,336		7	%		228,473		27	%
Service and fee		139,119			145,729		(5	%)		130,680		6	%
Transaction		61,535			58,546		5	%		53,858		14	%
Interest income, net₍₁₀₎		28,481			31,428		(9	%)		21,975		30	%
Other revenue₍₁₁₎		32,705			3,392		n/m			4,636		n/m
Total net advisory fees and commissions and attachment revenue		1,262,426			1,157,712		9	%		1,032,970		22	%
Brokerage, clearing and exchange expense		(34,789	)		(29,636	)	17	%		(25,917	)	34	%
Gross Profit₍₆₎		1,227,637			1,128,076		9	%		1,007,053		22	%

G&A Expense
Core G&A₍₁₂₎		421,894			359,134		17	%		364,469		16	%
Regulatory charges₍₁₃₎		7,335			24,879		(71	%)		8,905		(18	%)
Promotional (ongoing)₍₁₄₎₍₁₅₎		173,191			175,605		(1	%)		138,457		25	%
Acquisition costs₍₁₅₎		37,261			22,243		68	%		34,931		7	%
Employee share-based compensation		26,067			20,289		28	%		15,535		68	%
Total G&A		665,748			602,150		11	%		562,297		18	%
Loss on extinguishment of debt		3,983			—		100	%		—		100	%
EBITDA₍₁₆₎		557,906			525,926		6	%		444,756		25	%
Depreciation and amortization		92,032			78,338		17	%		67,936		35	%
Amortization of other intangibles		42,614			32,461		31	%		28,618		49	%
Interest expense on borrowings		81,979			67,779		21	%		54,415		51	%
INCOME BEFORE PROVISION FOR INCOME TAXES		341,281			347,348		(2	%)		293,787		16	%
PROVISION FOR INCOME TAXES		70,532			92,045		(23	%)		76,232		(7	%)
NET INCOME	$	270,749		$	255,303		6	%	$	217,555		24	%
Earnings per share, diluted	$	3.59		$	3.39		6	%	$	2.85		26	%
Weighted-average shares outstanding, diluted		75,337			75,405		—	%		76,240		(1	%)
Adjusted EBITDA₍₁₆₎	$	584,783		$	566,169		3	%	$	479,687		22	%
Adjusted EPS₍₁₇₎	$	4.25		$	4.16		2	%	$	3.51		21	%

LPL Financial Holdings Inc.
Operating Metrics
(Dollars in billions, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Change	Q4 2023			Change
Market Drivers
S&P 500 Index (end of period)		5,882			5,762		2%		4,770		23%
Russell 2000 Index (end of period)		2,230			2,230		—%		2,027		10%
Fed Funds daily effective rate (average bps)		466			527		(61bps)		533		(67bps)

Advisory and Brokerage Assets₍₁₈₎
Advisory assets	$	957.0		$	892.0		7%	$	735.8		30%
Brokerage assets		783.7			700.1		12%		618.2		27%
Total Advisory and Brokerage Assets	$	1,740.7		$	1,592.1		9%	$	1,354.1		29%
Advisory as a % of Total Advisory and Brokerage Assets		55.0	%		56.0	%	(100bps)		54.3	%	70bps

Assets by Platform
Corporate advisory assets₍₁₉₎	$	678.3		$	618.8		10%	$	496.5		37%
Independent RIA advisory assets₍₁₉₎		278.7			273.2		2%		239.3		16%
Brokerage assets		783.7			700.1		12%		618.2		27%
Total Advisory and Brokerage Assets	$	1,740.7		$	1,592.1		9%	$	1,354.1		29%

Centrally Managed Assets
Centrally managed assets₍₂₀₎	$	160.0		$	138.1		16%	$	112.1		43%
Centrally Managed as a % of Total Advisory Assets		16.7	%		15.5	%	120bps		15.2	%	150bps

LPL Financial Holdings Inc.
Operating Metrics
(Dollars in billions, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Change	Q4 2023			Change
Organic Net New Assets (NNA)₍₂₁₎
Organic net new advisory assets	$	49.3		$	23.2		n/m	$	20.5		n/m
Organic net new brokerage assets		18.8			3.8		n/m		4.2		n/m
Total Organic Net New Assets	$	68.0		$	27.0		n/m	$	24.7		n/m

Acquired Net New Assets₍₂₁₎
Acquired net new advisory assets	$	21.8		$	0.5		n/m	$	—		n/m
Acquired net new brokerage assets		67.5			0.1		n/m		—		n/m
Total Acquired Net New Assets	$	89.3		$	0.6		n/m	$	—		n/m

Total Net New Assets₍₂₁₎
Net new advisory assets	$	71.1		$	23.7		n/m	$	20.5		n/m
Net new brokerage assets		86.2			3.8		n/m		4.2		n/m
Total Net New Assets	$	157.3		$	27.5		n/m	$	24.7		n/m

Net brokerage to advisory conversions₍₂₂₎	$	4.8		$	3.5		n/m	$	2.6		n/m
Organic advisory NNA annualized growth₍₂₃₎		22.1	%		11.2	%	n/m		12.4	%	n/m
Total organic NNA annualized growth₍₂₃₎		17.1	%		7.2	%	n/m		8.0	%	n/m

Net New Advisory Assets₍₂₁₎
Corporate RIA net new advisory assets	$	64.5		$	24.0		n/m	$	15.9		n/m
Independent RIA net new advisory assets		6.6			(0.3	)	n/m		4.6		n/m
Total Net New Advisory Assets	$	71.1		$	23.7		n/m	$	20.5		n/m
Centrally managed net new advisory assets₍₂₁₎	$	24.9		$	4.4		n/m	$	3.0		n/m

Net buy (sell) activity₍₂₄₎	$	38.3		$	37.7		n/m	$	32.8		n/m

^{Note: Totals may not foot due to rounding.}

LPL Financial Holdings Inc.
Client Cash Data
(Dollars in thousands, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Change	Q4 2023			Change
Client Cash Balances (in billions)₍₂₅₎
Insured cash account sweep	$	38.3		$	32.1		19%	$	34.5		11%
Deposit cash account sweep		10.7			9.6		11%		9.3		15%
Total Bank Sweep		49.0			41.7		18%		43.8		12%
Money market sweep		4.3			2.3		87%		2.4		79%
Total Client Cash Sweep Held by Third Parties		53.3			44.0		21%		46.2		15%
Client cash account (CCA)₍₂₆₎		1.8			1.8		—%		2.0		(10%)
Total Client Cash Balances	$	55.1		$	45.8		20%	$	48.2		14%
Client Cash Balances as a % of Total Assets		3.2	%		2.9	%	30bps		3.6	%	(40bps)

^{Note: Totals may not foot due to rounding.}

	Three Months Ended
	December 31, 2024					September 30, 2024					December 31, 2023
Interest-Earnings Assets	Average Balance (in billions)		Revenue		Net Yield (bps)₍₂₇₎	Average Balance (in billions)		Revenue		Net Yield (bps)₍₂₇₎	Average Balance (in billions)		Revenue		Net Yield (bps)₍₂₇₎
Insured cash account sweep	$	34.8	$	292,661	335	$	31.1	$	259,503	332	$	33.3	$	266,058	317
Deposit cash account sweep		9.8		83,879	340		9.2		92,765	400		8.9		84,901	379
Total Bank Sweep		44.6		376,540	336		40.3		352,268	348		42.2		350,959	330
Money market sweep		3.3		2,277	28		2.3		1,587	28		2.4		1,702	28
Total Client Cash Held By Third Parties		47.9		378,817	315		42.6		353,855	330		44.6		352,661	314
Client cash account (CCA)₍₂₆₎		1.8		18,184	407		1.6		18,478	472		1.8		21,318	475
Total Client Cash		49.7		397,001	318		44.2		372,333	335		46.4		373,979	320
Margin receivables		0.6		11,506	829		0.5		11,199	885		0.5		10,874	878
Other interest revenue		1.3		16,975	524		1.5		20,229	533		0.9		11,101	507
Total Client Cash and Interest Income, Net	$	51.6	$	425,482	329	$	46.2	$	403,761	348	$	47.7	$	395,954	329

^{Note: Totals may not foot due to rounding.}

LPL Financial Holdings Inc.
Monthly Metrics
(Dollars in billions, except where noted)
(Unaudited)

	December 2024		November 2024		Change	October 2024			September 2024
Advisory and Brokerage Assets₍₁₈₎
Advisory assets	$	957.0	$	973.8	(2%)	$	910.6		$	892.0
Brokerage assets		783.7		785.6	—%		762.7			700.1
Total Advisory and Brokerage Assets	$	1,740.7	$	1,759.3	(1%)	$	1,673.3		$	1,592.1

Organic Net New Assets (NNA)₍₂₁₎
Organic net new advisory assets	$	12.5	$	27.9	n/m	$	8.8		$	11.0
Organic net new brokerage assets		12.9		6.3	n/m		(0.5	)		0.5
Total Organic Net New Assets	$	25.5	$	34.2	n/m	$	8.3		$	11.4

Acquired Net New Assets₍₂₁₎
Acquired net new advisory assets	$	—	$	0.5	n/m	$	21.3		$	0.2
Acquired net new brokerage assets		0.2		0.3	n/m		67.0		$	0.1
Total Acquired Net New Assets	$	0.3	$	0.8	n/m	$	88.3		$	0.3

Total Net New Assets₍₂₁₎
Net new advisory assets	$	12.6	$	28.4	n/m	$	30.1		$	11.2
Net new brokerage assets		13.2		6.6	n/m		66.5			0.5
Total Net New Assets	$	25.8	$	35.0	n/m	$	96.6		$	11.7
Net brokerage to advisory conversions₍₂₂₎	$	2.0	$	1.7	n/m	$	1.1		$	1.2

Client Cash Balances₍₂₅₎
Insured cash account sweep	$	38.3	$	34.8	10%	$	34.7		$	32.1
Deposit cash account sweep		10.7		9.9	8%		9.7			9.6
Total Bank Sweep		49.0		44.7	10%		44.4			41.7
Money market sweep		4.3		4.3	—%		2.6			2.3
Total Client Cash Sweep Held by Third Parties		53.3		49.0	9%		47.0			44.0
Client cash account (CCA)₍₂₆₎		1.8		1.5	20%		1.3			1.8
Total Client Cash Balances		55.1		50.5	9%		48.3			45.8

Net buy (sell) activity₍₂₄₎	$	13.5	$	12.4	n/m	$	12.5		$	12.2

Market Drivers
S&P 500 Index (end of period)		5,882		6,032	(2%)		5,705			5,762
Russell 2000 Index (end of period)		2,230		2,435	(8%)		2,197			2,230
Fed Funds effective rate (average bps)		448		465	(17bps)		483			513

^{Note: Totals may not foot due to rounding.}

LPL Financial Holdings Inc.
Financial Measures
(Dollars in thousands, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Change	Q4 2023			Change
Commission Revenue by Product
Annuities	$	561,918		$	481,852		17%	$	408,480		38%
Mutual funds		232,529			193,451		20%		167,392		39%
Fixed income		59,332			55,707		7%		40,441		47%
Equities		45,829			36,786		25%		29,920		53%
Other		65,855			38,736		70%		36,179		82%
Total commission revenue	$	965,463		$	806,532		20%	$	682,412		41%

Commission Revenue by Sales-based and Trailing
Sales-based commissions
Annuities	$	314,591		$	265,955		18%	$	221,070		42%
Mutual funds		52,908			42,310		25%		37,016		43%
Fixed income		59,332			55,707		7%		40,441		47%
Equities		45,829			36,786		25%		29,920		53%
Other		53,135			28,374		87%		27,511		93%
Total sales-based commissions	$	525,795		$	429,132		23%	$	355,958		48%
Trailing commissions
Annuities	$	247,327		$	215,897		15%	$	187,410		32%
Mutual funds		179,621			151,141		19%		130,376		38%
Other		12,720			10,362		23%		8,668		47%
Total trailing commissions	$	439,668		$	377,400		16%	$	326,454		35%
Total commission revenue	$	965,463		$	806,532		20%	$	682,412		41%

Payout Rate₍₇₎		87.79	%		87.46	%	33bps		87.59	%	20bps

LPL Financial Holdings Inc.
Capital Management Measures
(Dollars in thousands, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Q4 2023
Cash and equivalents	$	967,079		$	1,474,954		$	465,671
Cash at regulated subsidiaries		(884,779	)		(992,450	)		(410,313	)
Excess cash at regulated subsidiaries per the Credit Agreement		397,138			225,886			128,327
Corporate Cash₍₃₎	$	479,438		$	708,390		$	183,685

Corporate Cash₍₃₎
Cash at the Parent	$	39,782		$	435,109		$	26,587
Excess cash at regulated subsidiaries per the Credit Agreement		397,138			225,886			128,327
Cash at non-regulated subsidiaries		42,518			47,395			28,771
Corporate Cash	$	479,438		$	708,390		$	183,685

Leverage Ratio
Total debt	$	5,517,000		$	4,469,175		$	3,757,200
Total corporate cash		479,438			708,390			183,685
Credit Agreement Net Debt	$	5,037,562		$	3,760,785		$	3,573,515
Credit Agreement EBITDA (trailing twelve months)₍₂₈₎	$	2,665,033		$	2,340,886		$	2,194,807
Leverage Ratio	1.89x			1.61x			1.63x

	December 31, 2024
Total Debt	Balance		Current Applicable Margin	Interest Rate		Maturity
Revolving Credit Facility_(a)	$	1,047,000	ABR+37.5 bps / SOFR+147.5 bps	6.007	%	5/20/2029
Broker-Dealer Revolving Credit Facility		—	SOFR+135 bps	5.840	%	5/19/2025
Senior Unsecured Term Loan A		1,020,000	SOFR+147.5 bps_(b)	6.000	%	12/5/2026
Senior Unsecured Notes		500,000	5.700% Fixed	5.700	%	5/20/2027
Senior Unsecured Notes		400,000	4.625% Fixed	4.625	%	11/15/2027
Senior Unsecured Notes		750,000	6.750% Fixed	6.750	%	11/17/2028
Senior Unsecured Notes		900,000	4.000% Fixed	4.000	%	3/15/2029
Senior Unsecured Notes		400,000	4.375% Fixed	4.375	%	5/15/2031
Senior Unsecured Notes		500,000	6.000% Fixed	6.000	%	5/20/2034
Total / Weighted Average	$	5,517,000		5.532	%

^{(a) Secured borrowing capacity of $2.25 billion at LPL Holdings, Inc. (the “Parent”).}
^{(b) The SOFR rate option is a one-month SOFR rate and subject to an interest rate floor of 0 bps.}

LPL Financial Holdings Inc.
Key Business and Financial Metrics
(Dollars in thousands, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Change	Q4 2023			Change
Advisors
Advisors		28,888			23,686		22%		22,660		27%
Net new advisors		5,202			224		n/m		256		n/m
Annualized advisory fees and commissions per advisor₍₂₉₎	$	390		$	371		5%	$	314		24%
Average total assets per advisor ($ in millions)₍₃₀₎	$	60.3		$	67.2		(10%)	$	59.8		1%
Transition assistance loan amortization ($ in millions)₍₃₁₎	$	76.3		$	69.1		10%	$	55.1		38%
Total client accounts (in millions)		10.0			8.7		15%		8.3		20%

Employees		7,780			7,342		6%		7,372		6%

Services Group
Services Group subscriptions₍₃₂₎
Professional Services		1,925			1,890		2%		1,895		2%
Business Optimizers		3,980			3,798		5%		3,363		18%
Planning and Advice		799			735		9%		548		46%
Total Services Group subscriptions		6,704			6,423		4%		5,806		15%
Services Group advisor count		4,521			4,340		4%		3,850		17%

AUM retention rate (quarterly annualized)₍₃₃₎		97.3	%		97.0	%	30bps		98.4	%	(110bps)

Capital Management
Capital expenditures ($ in millions)₍₃₄₎	$	165.5		$	147.1		13%	$	105.9		56%
Acquisitions, net ($ in millions)₍₃₅₎	$	847.9		$	34.1		n/m	$	92.9		n/m

Share repurchases ($ in millions)	$	100.0		$	—		100%	$	225.0		(56%)
Dividends ($ in millions)		22.5			22.4		—%		22.6		—%
Total Capital Returned ($ in millions)	$	122.5		$	22.4		n/m	$	247.6		(51%)

Non-GAAP Financial Measures

Management believes that presenting certain non-GAAP financial measures by excluding or including certain items can be helpful to investors and analysts who may wish to use this information to analyze the Company’s current performance, prospects and valuation. Management uses this non-GAAP information internally to evaluate operating performance and in formulating the budget for future periods. Management believes that the non-GAAP financial measures and metrics discussed below are appropriate for evaluating the performance of the Company.

Adjusted EPS and Adjusted net income

Adjusted EPS is defined as adjusted net income, a non-GAAP measure defined as net income plus the after-tax impact of amortization of other intangibles, acquisition costs, certain regulatory charges, losses on extinguishment of debt, and amounts related to the departure of the Company’s former Chief Executive Officer, divided by the weighted average number of diluted shares outstanding for the applicable period. The Company presents adjusted net income and adjusted EPS because management believes that these metrics can provide investors with useful insight into the Company’s core operating performance by excluding non-cash items, acquisition costs, and certain other charges that management does not believe impact the Company’s ongoing operations. Adjusted net income and adjusted EPS are not measures of the Company’s financial performance under GAAP and should not be considered as alternatives to net income, earnings per diluted share or any other performance measure derived in accordance with GAAP. For a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS, please see the endnote disclosures in this release.

Gross profit

Gross profit is calculated as total revenue less advisory and commission expense; brokerage, clearing and exchange expense; and market fluctuations on employee deferred compensation. All other expense categories, including depreciation and amortization of property and equipment and amortization of other intangibles, are considered general and administrative in nature. Because the Company’s gross profit amounts do not include any depreciation and amortization expense, the Company considers gross profit to be a non-GAAP financial measure that may not be comparable to similar measures used by others in its industry. Management believes that gross profit can provide investors with useful insight into the Company’s core operating performance before indirect costs that are general and administrative in nature. For a calculation of gross profit, please see the endnote disclosures in this release.

Core G&A

Core G&A consists of total expense less the following expenses: advisory and commission; depreciation and amortization; interest expense on borrowings; brokerage, clearing and exchange; amortization of other intangibles; market fluctuations on employee deferred compensation; losses on extinguishment of debt; promotional (ongoing); employee share-based compensation; regulatory charges; and acquisition costs. Management presents core G&A because it believes core G&A reflects the corporate expense categories over which management can generally exercise a measure of control, compared with expense items over which management either cannot exercise control, such as advisory and commission, or which management views as promotional expense necessary to support advisor growth and retention, including conferences and transition assistance. Core G&A is not a measure of the Company’s total expense as calculated in accordance with GAAP. For a reconciliation of the Company’s total expense to core G&A, please see the endnote disclosures in this release. The Company does not provide an outlook for its total expense because it contains expense components, such as advisory and commission, that are market-driven and over which the Company cannot exercise control. Accordingly, a reconciliation of the Company’s outlook for total expense to an outlook for core G&A cannot be made available without unreasonable effort.

EBITDA and Adjusted EBITDA

EBITDA is defined as net income plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles. Adjusted EBITDA is defined as EBITDA, a non-GAAP measure, plus acquisition costs, certain regulatory charges, amounts related to the departure of the Company’s former Chief Executive Officer, and losses on extinguishment of debt. The Company presents EBITDA and adjusted EBITDA because management believes that they can be useful financial metrics in understanding the Company’s earnings from operations. EBITDA and adjusted EBITDA are not measures of the Company’s financial performance under GAAP and should not be considered as alternatives to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to EBITDA and adjusted EBITDA, please see the endnote disclosures in this release.

Credit Agreement EBITDA

Credit Agreement EBITDA is defined in, and calculated by management in accordance with, the Company’s amended and restated credit agreement (“Credit Agreement”) as “Consolidated EBITDA,” which is Consolidated Net Income (as defined in the Credit Agreement) plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles, and is further adjusted to exclude certain non-cash charges and other adjustments, and to include future expected cost savings, operating expense reductions or other synergies from certain transactions. The Company presents Credit Agreement EBITDA because management believes that it can be a useful financial metric in understanding the Company’s debt capacity and covenant compliance under its Credit Agreement. Credit Agreement EBITDA is not a measure of the Company’s financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to Credit Agreement EBITDA, please see the endnote disclosures in this release.

Endnote Disclosures

(1) Represents the estimated total advisory and brokerage assets expected to transition to the Company’s primary broker-dealer subsidiary, LPL Financial, in connection with advisors who transferred their licenses to LPL Financial during the period. The estimate is based on prior business reported by the advisors, which has not been independently and fully verified by LPL Financial. The actual transition of assets to LPL Financial generally occurs over several quarters and the actual amount transitioned may vary from the estimate.

(2) The terms “Financial Advisors” and “Advisors” refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial, an SEC-registered broker-dealer and investment advisor, or one of Atria’s seven introducing broker-dealer subsidiaries.

(3) Corporate cash, a component of cash and equivalents, is the sum of cash and equivalents from the following: (1) cash and equivalents held at LPL Holdings, Inc., (2) cash and equivalents held at regulated subsidiaries as defined by the Company’s Credit Agreement, which include LPL Financial, LPL Enterprise, LLC, The Private Trust Company, N.A. and certain of Atria’s introducing broker-dealer subsidiaries, in excess of the capital requirements of the Company’s Credit Agreement and (3) cash and equivalents held at non-regulated subsidiaries.

(4) Compliance with the Leverage Ratio is only required under the Company’s revolving credit facility.

(5) The Company was named a Top RIA custodian (Cerulli Associates, 2024 U.S. RIA Marketplace Report); No. 1 Independent Broker-Dealer in the U.S. (based on total revenues, Financial Planning magazine 1996-2022); and, among third-party providers of brokerage services to banks and credit unions, No. 1 in AUM Growth from Financial Institutions; No. 1 in Market Share of AUM from Financial Institutions; No. 1 in Market Share of Revenue from Financial Institutions; No. 1 on Financial Institution Market Share; No. 1 on Share of Advisors (2021-2022 Kehrer Bielan Research and Consulting Annual TPM Report). Fortune 500 as of June 2021.

(6) Gross profit is a non-GAAP financial measure. Please see a description of gross profit under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a calculation of gross profit for the periods presented (in thousands):

	Q4 2024			Q3 2024		Q4 2023
Total revenue_(a)	$	3,512,351		$	3,108,394	$	2,643,829
Advisory and commission expense		2,250,427			1,948,065		1,607,978
Brokerage, clearing and exchange expense		34,789			29,636		25,917
Employee deferred compensation		(502	)		2,617		2,881
Gross profit_(a)	$	1,227,637		$	1,128,076	$	1,007,053

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards.}

Below is a calculation of gross profit for the years presented (in thousands):

	Years Ended December 31,
		2024		2023
Total revenue_(a)	$	12,385,107	$	10,052,848
Advisory and commission expense		7,751,006		5,915,807
Brokerage, clearing and exchange expense		127,941		105,984
Employee deferred compensation		4,815		4,101
Gross profit_(a)	$	4,501,345	$	4,026,956

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards.}

(7) Production-based payout is a financial measure calculated as advisory and commission expense plus (less) advisor deferred compensation. The payout rate is calculated by dividing the production-based payout by total advisory and commission revenue. Below is a reconciliation of the Company’s advisory and commission expense to the production-based payout and a calculation of the payout rate for the periods presented (in thousands, except payout rate):

	Q4 2024			Q3 2024			Q4 2023
Advisory and commission expense	$	2,250,427		$	1,948,065		$	1,607,978
Less: Advisor deferred compensation		(1,753	)		(37,431	)		(59,438	)
Production-based payout	$	2,248,674		$	1,910,634		$	1,548,540

Advisory and commission revenue	$	2,561,297		$	2,184,582		$	1,767,909

Payout rate		87.79	%		87.46	%		87.59	%

(8) Below is a reconciliation of client cash revenue per Management’s Statements of Operations to client cash revenue, a component of asset-based revenue, on the Company’s consolidated statements of income for the periods presented (in thousands):

	Q4 2024			Q3 2024			Q4 2023
Client cash on Management’s Statement of Operations	$	397,001		$	372,333		$	373,979
Interest income on CCA balances segregated under federal or other regulations₍₁₀₎		(18,185	)		(18,478	)		(21,318	)
Client cash on Consolidated Statements of Income	$	378,816		$	353,855		$	352,661

(9) Consists of revenue from the Company’s sponsorship programs with financial product manufacturers, omnibus processing and networking services but does not include fees from client cash programs.

(10) During the first quarter of 2024, the Company disaggregated the activity previously reported in the interest income and other, net line item into its interest income, net and other revenue components. Prior period amounts have been reclassified to conform to the current presentation. Below is a reconciliation of interest income, net per Management’s Statements of Operations to interest income, net on the Company’s consolidated statements of income for the periods presented (in thousands):

	Q4 2024		Q3 2024		Q4 2023
Interest income, net on Management’s Statement of Operations	$	28,481	$	31,428	$	21,975
Interest income on CCA balances segregated under federal or other regulations₍₈₎		18,185		18,478		21,318
Interest income on deferred compensation		14		17		19
Interest income, net on Consolidated Statements of Income	$	46,680	$	49,923	$	43,312

(11) During the first quarter of 2024, the Company disaggregated the activity previously reported in the interest income and other, net line item into its interest income, net and other revenue components. Prior period amounts have been reclassified to conform to the current presentation. Below is a reconciliation of other revenue per Management’s Statements of Operations to other revenue on the Company’s consolidated statements of income for the periods presented (in thousands):

	Q4 2024			Q3 2024			Q4 2023
Other revenue on Management’s Statement of Operations_(a)	$	32,705		$	3,392		$	4,636
Interest income on deferred compensation		(14	)		(17	)		(19	)
Deferred compensation		1,251			40,048			62,319
Other revenue on Consolidated Statements of Income	$	33,942		$	43,423		$	66,936

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards.}

(12) Core G&A is a non-GAAP financial measure. Please see a description of core G&A under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of the Company’s total expense to core G&A for the periods presented (in thousands):

	Q4 2024			Q3 2024			Q4 2023
Core G&A Reconciliation
Total expense	$	3,171,070		$	2,761,046		$	2,350,042
Advisory and commission		(2,250,427	)		(1,948,065	)		(1,607,978	)
Depreciation and amortization		(92,032	)		(78,338	)		(67,936	)
Interest expense on borrowings		(81,979	)		(67,779	)		(54,415	)
Brokerage, clearing and exchange		(34,789	)		(29,636	)		(25,917	)
Amortization of other intangibles		(42,614	)		(32,461	)		(28,618	)
Employee deferred compensation		502			(2,617	)		(2,881	)
Loss on extinguishment of debt		(3,983	)		(—	)		(—	)
Total G&A		665,748			602,150			562,297
Promotional (ongoing)₍₁₄₎₍₁₅₎		(173,191	)		(175,605	)		(138,457	)
Acquisition costs₍₁₅₎		(37,261	)		(22,243	)		(34,931	)
Employee share-based compensation		(26,067	)		(20,289	)		(15,535	)
Regulatory charges₍₁₃₎		(7,335	)		(24,879	)		(8,905	)
Core G&A	$	421,894		$	359,134		$	364,469

Below is a reconciliation of the Company’s total expense to core G&A for the years presented (in thousands):

	Years Ended December 31,
		2024			2023
Core G&A Reconciliation
Total expense	$	10,992,215		$	8,608,073
Advisory and commission		(7,751,006	)		(5,915,807	)
Depreciation and amortization		(308,527	)		(246,994	)
Interest expense on borrowings		(274,181	)		(186,804	)
Amortization of other intangibles		(135,234	)		(107,211	)
Brokerage, clearing and exchange		(127,941	)		(105,984	)
Employee deferred compensation		(4,815	)		(4,101	)
Loss on extinguishment of debt		(3,983	)		—
Total G&A		2,386,528			2,041,172
Promotional (ongoing)₍₁₄₎₍₁₅₎		(628,938	)		(486,326	)
Regulatory charges₍₁₃₎		(47,278	)		(71,320	)
Employee share-based compensation		(88,957	)		(66,024	)
Acquisition costs₍₁₅₎		(105,905	)		(48,103	)
Core G&A	$	1,515,450		$	1,369,399

(13) Regulatory charges for the three months ended September 30, 2024 and year ended December 31, 2024 include charges related to a settlement with the SEC to resolve the Company’s civil investigation of certain elements of the Company’s Anti-Money Laundering (“AML”) compliance program. The Company has recorded an $18.0 million charge for the quarter ended September 30, 2024 and reached a settlement with the staff of the SEC and paid the civil monetary penalty in January 2025. Regulatory charges for the year ended December 31, 2023 include a $40.0 million charge to reflect the amount of the penalty related to the SEC’s civil investigation of the Company’s compliance with records preservation requirements for business-related electronic communications that was not covered by the Company’s captive insurance subsidiary. The Company reached a settlement with the staff of the SEC and paid the civil monetary penalty of $50.0 million in August 2024.

(14) Promotional (ongoing) includes $13.4 million, $13.0 million and $12.5 million for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively, of support costs related to full-time employees that are classified within Compensation and benefits expense in the consolidated statements of income and excludes costs that have been incurred as part of acquisitions that have been classified within acquisition costs. Promotional (ongoing) includes $46.6 million and $30.7 million of such support costs for the twelve months ended December 31, 2024 and 2023, respectively.

(15) Acquisition costs include the costs to setup, onboard and integrate acquired entities and other costs that were incurred as a result of the acquisitions. The below table summarizes the primary components of acquisition costs for the periods presented (in thousands):

	Q4 2024		Q3 2024			Q4 2023
Acquisition costs
Fair value mark on contingent consideration₍₃₆₎	$	11,249	$	5,849		$	26,712
Compensation and benefits		15,950		8,352			2,829
Professional services		7,357		6,685			3,664
Promotional₍₁₄₎		2,235		1,964			863
Other		470		(607	)		863
Acquisition costs	$	37,261	$	22,243		$	34,931

The below table summarizes the primary components of acquisition costs for the years presented (in thousands):

	Years Ended December 31,
		2024		2023
Acquisition costs
Fair value mark on contingent consideration₍₃₆₎	$	41,721	$	26,712
Professional services		20,855		10,044
Compensation and benefits		34,980		6,069
Promotional₍₁₄₎		7,006		3,593
Other		1,343		1,685
Acquisition costs	$	105,905	$	48,103

(16) EBITDA and adjusted EBITDA are non-GAAP financial measures. Please see a description of EBITDA and adjusted EBITDA under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of net income to EBITDA and adjusted EBITDA for the periods presented (in thousands):

	Q4 2024			Q3 2024		Q4 2023
EBITDA and adjusted EBITDA Reconciliation
Net income	$	270,749		$	255,303	$	217,555
Interest expense on borrowings		81,979			67,779		54,415
Provision for income taxes		70,532			92,045		76,232
Depreciation and amortization		92,032			78,338		67,936
Amortization of other intangibles		42,614			32,461		28,618
EBITDA	$	557,906		$	525,926	$	444,756
Regulatory charges₍₁₃₎		—			18,000		—
Acquisition costs₍₁₅₎		37,261			22,243		34,931
Departure of former Chief Executive Officer_(a)		(14,367	)		—		—
Loss on extinguishment of debt		3,983			—		—
Adjusted EBITDA	$	584,783		$	566,169	$	479,687

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.}

The below table is a reconciliation of net income to EBITDA and adjusted EBITDA for the years presented (in thousands):

		2024			2023
EBITDA and adjusted EBITDA Reconciliation
Net income	$	1,058,616		$	1,066,250
Interest expense on borrowings		274,181			186,804
Provision for income taxes		334,276			378,525
Depreciation and amortization		308,527			246,994
Amortization of other intangibles		135,234			107,211
EBITDA	$	2,110,834		$	1,985,784
Regulatory charges₍₁₃₎		18,000			40,000
Acquisition costs₍₁₅₎		105,905			48,103
Departure of former Chief Executive Officer_(a)		(14,367	)		—
Loss on extinguishment of debt		3,983			—
Adjusted EBITDA	$	2,224,355		$	2,073,887

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.}

(17) Adjusted net income and adjusted EPS are non-GAAP financial measures. Please see a description of adjusted net income and adjusted EPS under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS for the periods presented (in thousands, except per share data):

	Q4 2024						Q3 2024						Q4 2023
	Amount			Per Share			Amount			Per Share			Amount			Per Share
Net income / earnings per diluted share	$	270,749		$	3.59		$	255,303		$	3.39		$	217,555		$	2.85
Regulatory charges₍₁₃₎		—			—			18,000			0.24			—			—
Amortization of other intangibles		42,614			0.57			32,461			0.43			28,618			0.38
Acquisition costs₍₁₅₎		37,261			0.49			22,243			0.29			34,931			0.46
Departure of former Chief Executive Officer_(a)		(14,367	)		(0.19	)		—			—			—			—
Loss on extinguishment of debt		3,983			0.05			—			—			—			—
Tax benefit		(19,978	)		(0.27	)		(14,650	)		(0.19	)		(13,789	)		(0.18	)
Adjusted net income / adjusted EPS	$	320,262		$	4.25		$	313,357		$	4.16		$	267,315		$	3.51
Diluted share count		75,337						75,405						76,240
Note: Totals may not foot due to rounding.

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.}

Below is a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS for the years presented (in thousands, except per share data):

	Years Ended December 31,
		2024						2023
	Amount			Per Share			Amount			Per Share
Net income / earnings per diluted share	$	1,058,616		$	14.03		$	1,066,250		$	13.69
Regulatory charges₍₁₃₎		18,000			0.24			40,000			0.51
Amortization of other intangibles		135,234			1.79			107,211			1.38
Acquisition costs₍₁₅₎		105,905			1.40			48,103			0.62
Departure of former Chief Executive Officer_(a)		(14,367	)		(0.19	)		—			—
Loss on extinguishment of debt		3,983			0.05			—			—
Tax benefit		(62,089	)		(0.82	)		(37,418	)		(0.48	)
Adjusted net income / adjusted EPS	$	1,245,282		$	16.51		$	1,224,146		$	15.72
Diluted share count		75,427						77,861
Note: Totals may not foot due to rounding.

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.}

(18) Consists of total advisory and brokerage assets under custody at the Company’s primary broker-dealer subsidiary, LPL Financial, as well as assets under custody of a third-party custodian related to Atria’s seven introducing broker-dealer subsidiaries.

(19) Assets on the Company’s corporate advisory platform are serviced by investment advisor representatives of LPL Financial. Assets on the Company’s independent RIA advisory platform are serviced by investment advisor representatives of separate registered investment advisor firms rather than representatives of LPL Financial.

(20) Consists of advisory assets in LPL Financial’s Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios and Guided Wealth Portfolios platforms.

(21) Consists of total client deposits into advisory or brokerage accounts less total client withdrawals from advisory or brokerage accounts, plus dividends, plus interest, minus advisory fees. The Company considers conversions from and to brokerage or advisory accounts as deposits and withdrawals, respectively.

(22) Consists of existing custodied assets that converted from brokerage to advisory, less existing custodied assets that converted from advisory to brokerage.

(23) Calculated as annualized current period organic net new assets divided by preceding period assets in their respective categories of advisory assets or total advisory and brokerage assets.

(24) Represents the amount of securities purchased less the amount of securities sold in client accounts custodied with LPL Financial.

(25) Client cash balances include CCA and exclude purchased money market funds. CCA balances include cash that clients have deposited with LPL Financial that is included in Client payables in the consolidated balance sheets. The following table presents purchased money market funds for the periods presented (in billions):

		Q4 2024			Q3 2024			Q4 2023
Purchased money market funds		$	41.0		$	38.5		$	29.5

(26) During the first quarter of 2024, the Company updated its definition of client cash account balances to exclude other client payables. Prior period disclosures have been updated to reflect this change as applicable.

(27) Calculated by dividing revenue for the period by the average balance during the period.

(28) EBITDA and Credit Agreement EBITDA are non-GAAP financial measures. Please see a description of EBITDA and Credit Agreement EBITDA under the “Non-GAAP Financial Measures” section of this release for additional information. Under the Credit Agreement, management calculates Credit Agreement EBITDA for a trailing twelve month period at the end of each fiscal quarter and in doing so may make further adjustments to prior quarters. Below are reconciliations of trailing twelve month net income to trailing twelve month EBITDA and Credit Agreement EBITDA for the periods presented (in thousands):

	Q4 2024		Q3 2024		Q4 2023
EBITDA and Credit Agreement EBITDA Reconciliations
Net income	$	1,058,616	$	1,005,422	$	1,066,250
Interest expense on borrowings		274,181		246,618		186,804
Provision for income taxes		334,276		339,977		378,525
Depreciation and amortization		308,527		284,431		246,994
Amortization of other intangibles		135,234		121,238		107,211
EBITDA	$	2,110,834	$	1,997,686	$	1,985,784
Credit Agreement Adjustments:
Acquisition costs and other₍₁₅₎₍₃₇₎	$	223,614	$	236,007	$	110,170
Employee share-based compensation		88,957		78,425		66,024
M&A accretion₍₃₈₎		235,048		26,265		30,268
Advisor share-based compensation		2,597		2,503		2,561
Loss on extinguishment of debt		3,983		—		—
Credit Agreement EBITDA	$	2,665,033	$	2,340,886	$	2,194,807

(29) Calculated based on the average advisor count from the current period and prior periods.

(30) Calculated based on the end of period total advisory and brokerage assets divided by end of period advisor count.

(31) Represents amortization expense on forgivable loans for transition assistance to advisors and institutions.

(32) Refers to active subscriptions related to professional services offerings (CFO Solutions, Marketing Solutions, Admin Solutions, Advisor Institute, Bookkeeping, Partial Book Sales, CFO Essentials, Digital Marketing, Payroll Services and HR Solutions) and business optimizer offerings (M&A Solutions, Digital Office, Resilience Plans and Assurance Plans), as well as planning and advice services (Paraplanning, Tax Planning, and High Net Worth Services) for which subscriptions are the number of advisors using the service.

(33) Reflects retention of total advisory and brokerage assets, calculated by deducting quarterly annualized attrition from total advisory and brokerage assets, divided by the prior quarter total advisory and brokerage assets.

(34) Capital expenditures represent cash payments for property and equipment during the period.

(35) Acquisitions, net represent cash paid for acquisitions, net of cash acquired during the period.

(36) Represents a fair value adjustment to our contingent consideration liabilities that is reflected in other expense in the consolidated statements of income.

(37) Acquisition costs and other primarily include acquisition costs, costs incurred related to the integration of the strategic relationship with Prudential, a $26.4 million reduction related to the departure of the Company’s former Chief Executive Officer and related clawback of share-based compensation awards, an $18.0 million regulatory charge recognized during the three months ended September 30, 2024 reflecting the amount of a penalty proposed by the SEC as part of its civil investigation of the Company’s compliance with certain elements of the Company’s AML compliance program, and a $40.0 million regulatory charge recognized during the three months ended September 30, 2023 to reflect the amount of a penalty proposed by the SEC as part of its civil investigation of the Company’s compliance with records preservation requirements for business-related electronic communications stored on personal devices that have not been approved by the Company.

(38) M&A accretion is an adjustment to reflect the annualized expected run rate EBITDA of an acquisition as permitted by the Credit Agreement for up to eight fiscal quarters following the close of the transaction.

The MIL Network –

January 31, 2025

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

Source: GlobeNewswire (MIL-OSI)

– Loan Originations of $5.0 Billion for 2024, including $1.3 Billion for Fourth Quarter –

– Net Income of $12.7 Million for 2024, including $2.8 Million for Fourth Quarter –

– Diluted Earnings Per Share of $0.93 for 2024, including $0.20 for Fourth Quarter –

MURRAY, Utah, Jan. 30, 2025 (GLOBE NEWSWIRE) — FinWise Bancorp (NASDAQ: FINW) (“FinWise” or the “Company”), parent company of FinWise Bank (the “Bank”), today announced results for the quarter and fiscal year ended December 31, 2024.

Fourth Quarter 2024 Highlights

Loan originations totaled $1.3 billion, compared to $1.4 billion for the quarter ended September 30, 2024, and $1.2 billion for the fourth quarter of the prior year
Net interest income was $15.5 million, compared to $14.8 million for the quarter ended September 30, 2024, and $14.4 million for the fourth quarter of the prior year
Net income was $2.8 million, compared to $3.5 million for the quarter ended September 30, 2024, and $4.2 million for the fourth quarter of the prior year
Diluted earnings per share (“EPS”) were $0.20 for the quarter, compared to $0.25 for the quarter ended September 30, 2024, and $0.32 for the fourth quarter of the prior year
Efficiency ratio¹ was 64.2%, compared to 67.5% for the quarter ended September 30, 2024, and 56.0% for the fourth quarter of the prior year
Nonperforming loan balances were $36.4 million as of December 31, 2024, compared to $30.6 million as of September 30, 2024, and $27.1 million as of December 31, 2023. Nonperforming loan balances guaranteed by the Small Business Administration (“SBA”) were $19.2 million, $17.8 million, and $15.0 million as of December 31, 2024, September 30, 2024, and December 31, 2023, respectively

“Our fourth quarter results capped off a strong 2024 for FinWise, as we made significant progress in our goal to expand and diversify our sources of revenue to enhance the company’s long-term growth,” said Kent Landvatter, CEO of FinWise. “We were also pleased with the rebound in loan originations from existing programs, as well as the number of new strategic programs we announced, including four new Lending programs, two of which include our Credit Enhancement product, one Payments and one Credit Card program. As we look ahead to 2025, we are excited about the outlook, and currently anticipate continued stability in originations from existing programs, acceleration in production from new and ramping programs, a strong pipeline for new partners and remain committed to generating positive operating leverage.”

____________________

¹ See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this non-GAAP measure.

Selected Financial and Other Data

($ in thousands, except per share amounts)	As of and for the Three Months Ended									As of and for the Years Ended
	12/31/2024			9/30/2024			12/31/2023			12/31/2024			12/31/2023
Amount of loans originated	$	1,305,028		$	1,448,251		$	1,177,704		$	5,015,662		$	4,303,361
Net income	$	2,793		$	3,454		$	4,156		$	12,742		$	17,460
Diluted EPS	$	0.20		$	0.25		$	0.32		$	0.93		$	1.33
Return on average assets		1.6	%		2.1	%		2.9	%		2.0	%		3.5	%
Return on average equity		6.5	%		8.3	%		10.8	%		7.7	%		11.9	%
Yield on loans		14.01	%		14.16	%		16.21	%		14.47	%		17.05	%
Cost of interest-bearing deposits		4.30	%		4.85	%		4.82	%		4.57	%		4.22	%
Net interest margin		10.00	%		9.70	%		10.61	%		9.99	%		11.65	%
Efficiency ratio⁽¹⁾		64.2	%		67.5	%		56.0	%		64.9	%		53.4	%
Tangible book value per share⁽²⁾	$	13.15		$	12.90		$	12.41		$	13.15		$	12.41
Tangible shareholders’ equity to tangible assets⁽²⁾		23.3	%		24.9	%		26.5	%		23.3	%		26.5	%
Leverage ratio (Bank under CBLR)		20.6	%		20.3	%		20.7	%		20.6	%		20.7	%
Full-time equivalent employees		196			194			162			196			162

(1) This measure is not a measure recognized under United States generally accepted accounting principles, or GAAP, and is therefore considered to be a non-GAAP financial measure. See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure. The efficiency ratio is defined as total non-interest expense divided by the sum of net interest income and non-interest income. The Company believes this measure is important as an indicator of productivity because it shows the amount of revenue generated for each dollar spent.
(2) Tangible shareholders’ equity to tangible assets is considered a non-GAAP financial measure. Tangible shareholders’ equity is defined as total shareholders’ equity less goodwill and other intangible assets. The most directly comparable GAAP financial measure is total shareholder’s equity to total assets. The Company had no goodwill or other intangible assets at the end of any period indicated. The Company has not considered loan servicing rights or loan trailing fee assets as intangible assets for purposes of this calculation. As a result, tangible shareholders’ equity is the same as total shareholders’ equity at the end of each of the periods indicated.

Net Interest Income
Net interest income was $15.5 million for the fourth quarter of 2024, compared to $14.8 million for the prior quarter and $14.4 million for the prior year period. The increase from the prior quarter was primarily due to an average balance increase in the loans held for investment (“HFI”) portfolio and a decrease in yields paid on interest-earning deposits, principally certificate of deposits. Further contributing to the increase from the prior quarter was a third quarter 2024 decrease in net interest income of $0.5 million for accrued interest not previously reversed at the time loans were deemed nonperforming. The increase from the prior year period was primarily due to increases in the average balances of loans held-for-sale and loans HFI portfolios and was partially offset by yield decreases on those same portfolios as well as decreased volumes and rates paid on the Company’s interest bearing deposits.

Loan originations totaled $1.3 billion for the fourth quarter, compared to $1.4 billion for the prior quarter of 2024 and $1.2 billion for the prior year period.

Net interest margin for the fourth quarter of 2024 was 10.00%, compared to 9.70% for the prior quarter and 10.61% for the prior year period. The increase in net interest margin from the prior quarter is primarily attributable to the current quarter decrease in the cost of certificates of deposits and the growth in the overall loan portfolio. The decrease from the prior year period is primarily attributable to the Company’s strategy to reduce the average credit risk in the loan portfolio by increasing its investment in higher quality but lower yielding loans.

Provision for Credit Losses
The Company’s provision for credit losses was $3.9 million for the fourth quarter of 2024, compared to $2.2 million for the prior quarter and $3.2 million for the prior year period. The provision for credit losses increased when compared to the prior quarter and prior year period due primarily to a net charge-off on the non-guaranteed portion of SBA loans in the fourth quarter of 2024 of $1.0 million.

Non-interest Income

	Three Months Ended
($ in thousands)	12/31/2024			9/30/2024			12/31/2023
Non-interest income
Strategic Program fees	$	4,899		$	4,862		$	4,229
Gain on sale of loans		872			393			440
SBA loan servicing fees, net		181			87			572
Change in fair value on investment in BFG		(200	)		(100	)		200
Credit enhancement income		25			47			—
Other miscellaneous income		(174	)		765			716
Total non-interest income	$	5,603		$	6,054		$	6,157

The decrease in non-interest income from the prior quarter and prior year period was primarily due to a decrease in other miscellaneous income resulting from the $0.9 million charge-off of unamortized premium on approximately $160.0 million of callable CDs which were called during the fourth quarter of 2024 and replaced with lower cost CDs. This decrease was partially offset by the $0.5 million gain on sale of the guaranteed portion of SBA loans that occurred during the fourth quarter of 2024.

Non-interest Expense

	Three Months Ended
($ in thousands)	12/31/2024		9/30/2024		12/31/2023
Non-interest expense
Salaries and employee benefits	$	9,375	$	9,659	$	7,396
Professional services		556		1,331		1,433
Occupancy and equipment expenses		1,094		1,046		923
Credit enhancement expense		5		3		—
Other operating expenses		2,534		2,010		1,751
Total non-interest expense	$	13,564	$	14,049	$	11,503

The decrease in non-interest expense from the prior quarter was primarily due to a decrease in salaries and employee benefits resulting from bonus accrual reductions and a decrease in professional services expense resulting from a reduction in accruals for legal services. The increase in non-interest expense from the prior year period was primarily due to an increase in salaries and employee benefits due mainly to increasing headcount and other operating expenses driven by increased spending to support the growth in the Company’s business infrastructure.

Reflecting the expenses incurred to develop the Company’s business infrastructure, the Company’s efficiency ratio was 64.2% for the fourth quarter of 2024, compared to 67.5% for the prior quarter and 56.0% for the prior year period. As a result of the infrastructure build, the Company anticipates the efficiency ratio will remain elevated until the Company begins to realize the revenues associated with the new programs developed.

Tax Rate
The Company’s effective tax rate was 24.3% for the fourth quarter of 2024, compared to 25.1% for the prior quarter and 28.5% for the prior year period. The decrease from the prior quarter was due primarily to more favorable resolution of historical state tax matters during the fourth quarter of 2024. The decrease from the prior year period was primarily due to a reduction in permanent differences impacting income tax expense.

Net Income
Net income was $2.8 million for the fourth quarter of 2024, compared to $3.5 million for the prior quarter and $4.2 million for the prior year period. The changes in net income for the three months ended December 31, 2024 compared to the prior quarter and prior year period are the result of the factors discussed above.

Balance Sheet
The Company’s total assets were $746.0 million as of December 31, 2024, an increase from $683.0 million as of September 30, 2024 and $586.2 million as of December 31, 2023. The increase in total assets from September 30, 2024 was primarily due to continued growth in the Company’s loans HFI, net, and loans held-for-sale portfolios of $29.7 million and $7.6 million, respectively, as well as an increase of $21.5 million in interest-bearing cash deposits. The increase in total assets compared to December 31, 2023 was primarily due to increases in the Company’s loans HFI, net, and loans held-for-sale portfolios of $89.3 million and $44.1 million, respectively, as well as an increase in investment securities available-for-sale of $29.9 million, partially offset by a decrease of $17.0 million in interest-bearing deposits.

The following table shows the gross loans HFI balances as of the dates indicated:

	12/31/2024					9/30/2024					12/31/2023
($ in thousands)	Amount		% of total loans			Amount		% of total loans			Amount		% of total loans
SBA	$	255,056		54.8	%	$	251,439		57.9	%	$	239,922		64.5	%
Commercial leases		70,153		15.1	%		64,277		14.8	%		38,110		10.2	%
Commercial, non-real estate		3,691		0.8	%		3,025		0.7	%		2,457		0.7	%
Residential real estate		51,574		11.1	%		41,391		9.5	%		38,123		10.2	%
Strategic Program loans		20,122		4.3	%		19,409		4.5	%		19,408		5.2	%
Commercial real estate:
Owner occupied		41,046		8.8	%		32,480		7.5	%		20,798		5.6	%
Non-owner occupied		1,379		0.3	%		2,736		0.7	%		2,025		0.5	%
Consumer		22,212		4.8	%		19,206		4.4	%		11,372		3.1	%
Total period end loans	$	465,233		100.0	%	$	433,963		100.0	%	$	372,215		100.0	%

Note: SBA loans as of December 31, 2024, September 30, 2024 and December 31, 2023 include $158.7 million, $156.3 million and $131.7 million, respectively, of SBA 7(a) loan balances that are guaranteed by the SBA. The HFI balance on Strategic Program loans with annual interest rates below 36% as of December 31, 2024, September 30, 2024 and December 31, 2023 was $3.1 million, $3.2 million and $3.6 million, respectively.

Total gross loans HFI as of December 31, 2024 increased compared to September 30, 2024 and December 31, 2023. The Company experienced growth across all loan portfolios, with the exception of non-owner occupied CRE, consistent with its strategy to increase its loan portfolio with higher quality, lower rate loans.

The following table shows the Company’s deposit composition as of the dates indicated:

	As of
	12/31/2024					9/30/2024					12/31/2023
($ in thousands)	Amount		Percent			Amount		Percent			Amount		Percent
Noninterest-bearing demand deposits	$	126,782		23.3	%	$	142,785		29.2	%	$	95,486		23.6	%
Interest-bearing deposits:
Demand		71,403		13.1	%		58,984		12.1	%		50,058		12.4	%
Savings		9,287		1.7	%		9,592		1.9	%		8,633		2.1	%
Money market		16,709		3.0	%		15,027		3.1	%		11,661		2.9	%
Time certificates of deposit		320,771		58.9	%		262,271		53.7	%		238,995		59.0	%
Total period end deposits	$	544,952		100.0	%	$	488,659		100.0	%	$	404,833		100.0	%

The increase in total deposits from September 30, 2024 and December 31, 2023 was driven primarily by increases in brokered time certificates of deposits, which were added to fund loan growth and increase balance sheet liquidity. The increase in total deposits from December 31, 2023 was also driven primarily by an increase in noninterest-bearing demand deposits and interest-bearing demand deposits, primarily due to growth from new and existing customer relationships.

Total shareholders’ equity as of December 31, 2024 increased $3.4 million to $173.7 million from $170.4 million at September 30, 2024. Compared to December 31, 2023, total shareholders’ equity increased by $18.7 million from $155.1 million. The increase from September 30, 2024 was primarily due to the Company’s net income. The increase from December 31, 2023 was primarily due to the Company’s net income as well as the additional capital issued in exchange for the Company’s increased ownership in BFG, partially offset by the repurchase of common stock under the Company’s share repurchase program.

Bank Regulatory Capital Ratios
The following table presents the leverage ratios for the Bank as of the dates indicated as determined under the Community Bank Leverage Ratio Framework of the Federal Deposit Insurance Corporation:

	As of
Capital Ratios	12/31/2024			9/30/2024			12/31/2023			Well-Capitalized Requirement
Leverage ratio		20.6	%		20.3	%		20.7	%		9.0	%

The leverage ratio increase from the prior quarter resulted primarily from earnings generated by operations growing at a faster pace than average assets. The slight decrease in the leverage ratio from the prior year period resulted primarily from the growth in the loan portfolio. The Bank’s capital levels remain significantly above well-capitalized guidelines as of December 31, 2024.

Share Repurchase Program
Since the share repurchase program’s inception in March 2024 through December 31, 2024, the Company has repurchased a total of 44,608 shares for $0.5 million. There were no shares repurchased during the fourth quarter of 2024.

Asset Quality
The recorded balances of nonperforming loans were $36.4 million, or 7.8% of total loans HFI, as of December 31, 2024, compared to $30.6 million, or 7.1% of total loans HFI, as of September 30, 2024 and $27.1 million, or 7.3% of total loans HFI, as of December 31, 2023. The balances of nonperforming loans guaranteed by the SBA were $19.2 million, $17.8 million, and $15.0 million as of December 31, 2024, September 30, 2024 and December 31, 2023, respectively. The increase in nonperforming loans from the prior periods was primarily attributable to lingering financial stress on borrowers from the longer than expected higher interest rate environment. The Company’s allowance for credit losses to total loans HFI was 2.8% as of December 31, 2024 compared to 2.9% as of September 30, 2024 and 3.5% as of December 31, 2023. The decrease in the ratio from the prior quarter and prior year period was primarily due to the increased balance of the guaranteed portion of the SBA 7(a) program loans, growth in the balances of lower risk CRE, leasing and other HFI loan portfolios, and the shift in our Strategic Program HFI loan balances to programs with lower historical losses.

The Company’s net charge-offs were $3.2 million, $2.4 million and $3.4 million for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively. The increase from the prior quarter is primarily due to charge-offs relating to SBA loans that moved to nonaccrual status in the fourth quarter as well as increased net charge-offs in the Strategic Program loans portfolio. The decrease from the prior year period is primarily due to increased recoveries during the fourth quarter of 2024.

The following table presents a summary of changes in the allowance for credit losses and asset quality ratios for the periods indicated:

	Three Months Ended
($ in thousands)	12/31/2024			9/30/2024			12/31/2023
Allowance for credit losses:
Beginning balance	$	12,661		$	13,127		$	12,986
Provision for credit losses⁽¹⁾		3,766			1,944			3,272
Charge offs
Residential real estate		(206	)		(27	)		(104	)
Commercial real estate
Owner occupied		(411	)		(103	)		(561	)
Non-owner occupied		—			(221	)		—
Commercial and industrial		(555	)		(96	)		(281	)
Consumer		(60	)		(15	)		(22	)
Lease financing receivables					(113	)		—
Strategic Program loans		(2,528	)		(2,360	)		(2,656	)
Recoveries
Construction and land development		—			—			—
Residential real estate		6			3			3
Residential real estate multifamily		—			—			—
Commercial real estate
Owner occupied		112			219			(11	)
Non-owner occupied		—			—			—
Commercial and industrial		—			2			1
Consumer		1			4			—
Lease financing receivables		77			8			—
Strategic Program loans		313			289			261
Ending Balance	$	13,176		$	12,661		$	12,888

*Credit Quality Data*	As of and For the Three Months Ended
($ in thousands)	12/31/2024			9/30/2024			12/31/2023
Nonperforming loans:
Guaranteed	$	19,204		$	17,804		$	14,966
Unguaranteed		17,227			12,844			12,161
Total nonperforming loans	$	36,431		$	30,648		$	27,127
Allowance for credit losses	$	13,176		$	12,661		$	12,888
Net charge offs	$	3,249		$	2,409		$	3,370
Total loans held for investment	$	465,233		$	433,963		$	372,215
Total loans held for investment less guaranteed balances	$	306,482		$	277,635		$	240,471
Average loans held for investment	$	454,474		$	422,820		$	350,852
Nonperforming loans to total loans held for investment		7.8	%		7.1	%		7.3	%
Net charge offs to average loans held for investment (annualized)		2.8	%		2.3	%		3.8	%
Allowance for credit losses to loans held for investment		2.8	%		2.9	%		3.5	%
Allowance for credit losses to loans held for investment less guaranteed balances		4.3	%		4.6	%		5.4	%

(1) Excludes the provision for unfunded commitments.

Webcast and Conference Call Information
FinWise will host a conference call today at 5:30 PM ET to discuss its financial results for the fourth quarter and year ended December 31, 2024. A simultaneous audio webcast of the conference call will be available at https://investors.finwisebancorp.com/.

The dial-in number for the conference call is (877) 423-9813 (toll-free) or (201) 689-8573 (international). The conference ID is 13750402. Please dial the number 10 minutes prior to the scheduled start time.

A webcast replay of the call will be available at investors.finwisebancorp.com for six months following the call.

Website Information
The Company intends to use its website, www.finwisebancorp.com, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Such disclosures will be included in the Company’s website’s Investor Relations section. Accordingly, investors should monitor the Investor Relations portion of the Company’s website, in addition to following its press releases, filings with the Securities and Exchange Commission (“SEC”), public conference calls, and webcasts. To subscribe to the Company’s e-mail alert service, please click the “Email Alerts” link in the Investor Relations section of its website and submit your email address. The information contained in, or that may be accessed through, the Company’s website is not incorporated by reference into or a part of this document or any other report or document it files with or furnishes to the SEC, and any references to the Company’s website are intended to be inactive textual references only.

About FinWise Bancorp
FinWise Bancorp is a Utah bank holding company headquartered in Murray, Utah which wholly owns FinWise Bank, a Utah chartered state bank, and FinWise Investment LLC (together “FinWise”). FinWise provides Banking and Payments solutions to fintech brands. The Company is expanding and diversifying its business model by incorporating Payments (MoneyRails™) and BIN Sponsorship offerings. Its Strategic Program Lending business, conducted through scalable API-driven infrastructure, powers deposit, lending and payments programs for leading fintech brands. In addition, FinWise manages other Lending programs such as SBA 7(a), Owner Occupied Commercial Real Estate, and Leasing, which provide flexibility for disciplined balance sheet growth. Through its compliance oversight and risk management-first culture, the Company is well positioned to guide fintechs through a rigorous process to facilitate regulatory compliance. For more information about FinWise visit https://investors.finwisebancorp.com.

Contacts
investors@finwisebank.com
media@finwisebank.com

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995
This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company’s current views with respect to, among other things, future events and its financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “projection,” “forecast,” “budget,” “goal,” “target,” “would,” “aim” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the Company’s industry and management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. The inclusion of these forward-looking statements should not be regarded as a representation by the Company or any other person that such expectations, estimates and projections will be achieved. Accordingly, the Company cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

There are or will be important factors that could cause the Company’s actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: (a) the success of the financial technology industry, as well as the continued evolution of the regulation of this industry; (b) the ability of the Company’s Strategic Program or Fintech Banking and Payments Solutions service providers to comply with regulatory regimes, and the Company’s ability to adequately oversee and monitor its Strategic Program and Fintech Banking and Payments Solutions service providers; (c) the Company’s ability to maintain and grow its relationships with its service providers; (d) changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, accounting, tax, trade, monetary and fiscal matters, including the application of interest rate caps or maximums; (e) the Company’s ability to keep pace with rapid technological changes in the industry or implement new technology effectively; (f) system failure or cybersecurity breaches of the Company’s network security; (g) potential exposure to fraud, negligence, computer theft and cyber-crime and other disruptions in the Company’s computer systems relating to its development and use of new technology platforms; (h) the Company’s reliance on third-party service providers for core systems support, informational website hosting, internet services, online account opening and other processing services; (i) general economic and business conditions, either nationally or in the Company’s market areas; (j) increased national or regional competition in the financial services industry; (k) the Company’s ability to measure and manage its credit risk effectively and the potential deterioration of the business and economic conditions in the Company’s primary market areas; (l) the adequacy of the Company’s risk management framework; (m) the adequacy of the Company’s allowance for credit losses (“ACL”); (n) the financial soundness of other financial institutions; (o) new lines of business or new products and services; (p) changes in Small Business Administration (“SBA”) rules, regulations and loan products, including specifically the Section 7(a) program or changes to the status of the Bank as an SBA Preferred Lender; (q) the value of collateral securing the Company’s loans; (r) the Company’s levels of nonperforming assets; (s) losses from loan defaults; (t) the Company’s ability to protect its intellectual property and the risks it faces with respect to claims and litigation initiated against the Company; (u) the Company’s ability to implement its growth strategy; (v) the Company’s ability to launch new products or services successfully; (w) the concentration of the Company’s lending and depositor relationships through Strategic Programs in the financial technology industry generally; (x) interest-rate and liquidity risks; (y) the effectiveness of the Company’s internal control over financial reporting and its ability to remediate any future material weakness in its internal control over financial reporting; (z) dependence on the Company’s management team and changes in management composition; (aa) the sufficiency of the Company’s capital; (bb) compliance with laws and regulations, supervisory actions, the Dodd-Frank Act, capital requirements, the Bank Secrecy Act and other anti-money laundering laws, predatory lending laws, and other statutes and regulations; (cc) results of examinations of the Company by its regulators; (dd) the Company’s involvement from time to time in legal proceedings; (ee) natural disasters and adverse weather, acts of terrorism, pandemics, an outbreak of hostilities or other international or domestic calamities, and other matters beyond the Company’s control; (ff) future equity and debt issuances; (gg) that the anticipated benefits of new lines of business that the Company may enter or investments or acquisitions the Company may make are not realized within the expected time frame or at all as a result of such things as the strength or weakness of the economy and competitive factors in the areas where the Company and such other businesses operate; and (hh) other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2023 and subsequent reports on Form 10-Q and Form 8-K.

The timing and amount of purchases under the Company’s share repurchase program will be determined by the Share Repurchase Committee based upon market conditions and other factors. Purchases may be made pursuant to a program adopted under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The program does not require the Company to purchase any specific number or amount of shares and may be suspended or reinstated at any time in the Company’s discretion and without notice.

Any forward-looking statement speaks only as of the date of this release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, whether because of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence. In addition, the Company cannot assess the impact of each risk and uncertainty on its business or the extent to which any risk or uncertainty, or combination of risks and uncertainties, may cause actual results to differ materially from those contained in any forward-looking statements.

FINWISE BANCORP CONSOLIDATED BALANCE SHEETS ($ in thousands; Unaudited)

	12/31/2024		9/30/2024		12/31/2023
ASSETS
Cash and cash equivalents
Cash and due from banks	$	9,600	$	7,705	$	411
Interest-bearing deposits		99,562		78,063		116,564
Total cash and cash equivalents		109,162		85,768		116,975
Investment securities available-for-sale, at fair value		29,930		30,472		—
Investment securities held-to-maturity, at cost		12,565		13,270		15,388
Investment in Federal Home Loan Bank (“FHLB”) stock, at cost		349		349		238
Strategic Program loans held-for-sale, at lower of cost or fair value		91,588		84,000		47,514
Loans held for investment, net		447,812		418,065		358,560
Credit enhancement asset		111		86		—
Premises and equipment, net		16,328		17,099		14,630
Accrued interest receivable		3,566		3,098		3,573
SBA servicing asset, net		3,273		3,261		4,231
Investment in Business Funding Group (“BFG”), at fair value		7,700		7,900		4,200
Operating lease right-of-use (“ROU”) assets		3,564		3,735		4,293
Income tax receivable, net		8,868		3,317		2,400
Other assets		11,160		12,611		14,219
Total assets	$	745,976	$	683,031	$	586,221

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Noninterest-bearing	$	126,782	$	142,785	$	95,486
Interest-bearing		418,170		345,874		309,347
Total deposits		544,952		488,659		404,833
Accrued interest payable		1,494		647		619
Income taxes payable, net		4,423		—		1,873
Deferred taxes, net		899		1,036		748
PPP Liquidity Facility		64		106		190
Operating lease liabilities		5,302		5,542		6,296
Other liabilities		15,122		16,671		16,606
Total liabilities		572,256		512,661		431,165

Shareholders’ equity
Common stock		13		13		12
Additional paid-in-capital		56,926		56,214		51,200
Retained earnings		116,594		113,801		103,844
Accumulated other comprehensive income, net of tax		187		342		—
Total shareholders’ equity		173,720		170,370		155,056
Total liabilities and shareholders’ equity	$	745,976	$	683,031	$	586,221

FINWISE BANCORP CONSOLIDATED STATEMENTS OF INCOME ($ in thousands, except per share amounts; Unaudited)

	Three Months Ended
	12/31/2024			9/30/2024			12/31/2023
Interest income
Interest and fees on loans	$	18,388		$	17,590		$	16,192
Interest on securities		401			298			101
Other interest income		573			1,036			1,759
Total interest income		19,362			18,924			18,052

Interest expense
Interest on deposits		3,833			4,161			3,685
Total interest expense		3,833			4,161			3,685
Net interest income		15,529			14,763			14,367

Provision for credit losses		3,878			2,157			3,210
Net interest income after provision for credit losses		11,651			12,606			11,157

Non-interest income
Strategic Program fees		4,899			4,862			4,229
Gain on sale of loans, net		872			393			440
SBA loan servicing fees, net		181			87			572
Change in fair value on investment in BFG		(200	)		(100	)		200
Credit enhancement income		25			47			—
Other miscellaneous (loss) income		(174	)		765			716
Total non-interest income		5,603			6,054			6,157

Non-interest expense
Salaries and employee benefits		9,375			9,659			7,396
Professional services		556			1,331			1,433
Occupancy and equipment expenses		1,094			1,046			923
Credit enhancement expense		5			3			—
Other operating expenses		2,534			2,010			1,751
Total non-interest expense		13,564			14,049			11,503
Income before income taxes		3,690			4,611			5,811

Provision for income taxes		897			1,157			1,655
Net income	$	2,793		$	3,454		$	4,156

Earnings per share, basic	$	0.21		$	0.26		$	0.33
Earnings per share, diluted	$	0.20		$	0.25		$	0.32

Weighted average shares outstanding, basic		12,659,986			12,658,557			12,261,101
Weighted average shares outstanding, diluted		13,392,411			13,257,835			12,752,051
Shares outstanding at end of period		13,211,640			13,211,160			12,493,565

FINWISE BANCORP CONSOLIDATED STATEMENTS OF INCOME ($ in thousands, except per share amounts)

	Years Ended
	12/31/2024			12/31/2023
	(Unaudited)
Interest income
Interest and fees on loans	$	68,892		$	58,445
Interest on securities		897			338
Other interest income		4,563			5,751
Total interest income		74,352			64,534

Interest expense
Interest on deposits		15,440			9,974
Other interest expense		—			1
Total interest expense		15,440			9,975
Net interest income		58,912			54,559

Provision for credit losses		11,573			11,638
Net interest income after provision for credit losses		47,339			42,921

Non-interest income
Strategic Program fees		17,762			15,914
Gain on sale of loans, net		2,036			1,684
SBA loan servicing fees, net		1,137			1,842
Change in fair value on investment in BFG		(624	)		(600	)
Credit enhancement income		111			—
Other miscellaneous income		2,063			2,616
Total non-interest income		22,485			21,456

Non-interest expense
Salaries and employee benefits		35,205			25,751
Professional services		4,736			4,961
Occupancy and equipment expenses		4,240			3,312
Credit enhancement expense		8			—
Other operating expenses		8,646			6,540
Total non-interest expense		52,835			40,564
Income before income taxes		16,989			23,813

Provision for income taxes		4,247			6,353
Net income	$	12,742		$	17,460

Earnings per share, basic	$	0.98		$	1.38
Earnings per share, diluted	$	0.93		$	1.33

Weighted average shares outstanding, basic		12,612,455			12,488,564
Weighted average shares outstanding, diluted		13,228,869			12,909,648
Shares outstanding at end of period		13,211,640			12,493,565

FINWISE BANCORP AVERAGE BALANCES, YIELDS, AND RATES ($ in thousands; Unaudited)

	Three Months Ended
	12/31/2024							9/30/2024							12/31/2023
	Average Balance		Interest		Average Yield/Rate			Average Balance		Interest		Average Yield/Rate			Average Balance		Interest		Average Yield/Rate
Interest earning assets:
Interest-bearing deposits	$	52,375	$	573		4.35	%	$	78,967	$	1,036		5.22	%	$	125,462	$	1,759		5.56	%
Investment securities		43,212		401		3.69	%		33,615		298		3.53	%		15,670		101		2.56	%
Strategic Program loans held-for-sale		67,676		5,040		29.63	%		70,123		4,913		27.87	%		45,370		4,307		37.66	%
Loans held for investment		454,474		13,348		11.68	%		422,820		12,677		11.93	%		350,852		11,885		13.44	%
Total interest earning assets		617,737		19,362		12.47	%		605,525		18,924		12.43	%		537,354		18,052		13.33	%
Noninterest-earning assets		55,767							56,290							32,202
Total assets	$	673,504						$	661,815						$	569,556
Interest-bearing liabilities:
Demand	$	57,305	$	617		4.28	%	$	55,562	$	547		3.92	%	$	47,784	$	562		4.67	%
Savings		9,192		9		0.40	%		9,538		18		0.76	%		8,096		13		0.65	%
Money market accounts		15,726		147		3.73	%		13,590		127		3.72	%		13,419		53		1.55	%
Certificates of deposit		272,799		3,060		4.46	%		262,537		3,469		5.26	%		234,088		3,057		5.18	%
Total deposits		355,022		3,833		4.30	%		341,227		4,161		4.85	%		303,387		3,685		4.82	%
Other borrowings		79		—		0.35	%		112		—		0.35	%		206		—		0.35	%
Total interest-bearing liabilities		355,101		3,833		4.29	%		341,339		4,161		4.85	%		303,593		3,685		4.82	%
Noninterest-bearing deposits		119,945							127,561							92,767
Noninterest-bearing liabilities		27,636							25,536							21,099
Shareholders’ equity		170,823							167,379							152,097
Total liabilities and shareholders’ equity	$	673,505						$	661,815						$	569,556
Net interest income and interest rate spread			$	15,529		8.18	%			$	14,763		7.58	%			$	14,367		8.51	%
Net interest margin						10.00	%						9.70	%						10.61	%
Ratio of average interest-earning assets to average interest- bearing liabilities						173.96	%						177.40	%						177.00	%

FINWISE BANCORP AVERAGE BALANCES, YIELDS, AND RATES ($ in thousands; Unaudited)

	Years Ended
	12/31/2024							12/31/2023
	Average Balance		Interest		Average Yield/Rate			Average Balance		Interest		Average Yield/Rate
Interest earning assets:
Interest-bearing deposits	$	87,086	$	4,563		5.24	%	$	110,866	$	5,751		5.19	%
Investment securities		26,691		897		3.36	%		14,731		338		2.30	%
Loans held for sale		58,896		17,698		30.05	%		39,090		15,051		38.50	%
Loans held for investment		417,207		51,194		12.27	%		303,784		43,394		14.28	%
Total interest earning assets		589,880		74,352		12.60	%		468,472		64,534		13.78	%
Noninterest-earning assets		47,598							25,269
Total assets	$	637,478						$	493,740
Interest-bearing liabilities:
Demand	$	59,317	$	2,108		3.55	%	$	45,454	$	1,856		4.08	%
Savings		9,574		66		0.69	%		8,207		51		0.62	%
Money market accounts		12,284		452		3.68	%		13,665		362		2.65	%
Certificates of deposit		256,575		12,814		4.99	%		168,887		7,705		4.56	%
Total deposits		337,750		15,440		4.57	%		236,213		9,974		4.22	%
Other borrowings		126		—		0.34	%		251		1		0.35	%
Total interest-bearing liabilities		337,876		15,440		4.57	%		236,464		9,975		4.22	%
Noninterest-bearing deposits		107,760							93,126
Noninterest-bearing liabilities		26,634							17,250
Shareholders’ equity		165,208							146,901
Total liabilities and shareholders’ equity	$	637,478						$	493,740
Net interest income and interest rate spread			$	58,912		8.03	%			$	54,559		9.56	%
Net interest margin						9.99	%						11.65	%
Ratio of average interest-earning assets to average interest- bearing liabilities						174.58	%						198.12	%

Reconciliation of Non-GAAP to GAAP Financial Measures (Unaudited)

Efficiency ratio	Three Months Ended									Years Ended
	12/31/2024			9/30/2024			12/31/2023			12/31/2024				12/31/2023
($ in thousands)
Non-interest expense	$	13,564		$	14,049		$	11,503		$	52,835		$	40,564

Net interest income		15,529			14,763			14,367			58,912			54,559
Total non-interest income		5,603			6,054			6,157			22,485			21,456
Adjusted operating revenue	$	21,132		$	20,817		$	20,524		$	81,397		$	76,015
Efficiency ratio		64.2	%		67.5	%		56.0	%		64.9	%		53.4	%

FinWise has entered into agreements with certain of its Strategic Program service providers pursuant to which they provide credit enhancement on loans which protects the Bank by indemnifying or reimbursing the Bank for incurred credit and fraud losses. We estimate and record a provision for expected losses for these Strategic Program loans in accordance with GAAP, which requires estimation of the provision without consideration of the credit enhancement . When the provision for expected losses over the life of the loans that are subject to such credit enhancement is recorded, a credit enhancement asset reflecting the potential future recovery of those losses is also recorded on the balance sheet in the form of non-interest income (credit enhancement income). Reimbursement or indemnification for incurred losses is provided for in the form of a deposit reserve account that is replenished periodically by the respective Strategic Program service provider. Any remaining income on such loans in excess of the amounts retained by FinWise and placed in the deposit reserve account are paid to the Strategic Program service provider. Income on such loans in excess of amounts retained by FinWise are expensed for services provided by the Strategic Program service provider including its legal commitment to indemnify or reimburse all credit or fraud losses pursuant to credit enhancement agreements. The credit enhancement asset is reduced as credit enhancement payments and recoveries are received from the Strategic Program service provider or taken from its cash reserve account. If the Strategic Program service provider is unable to fulfill its contracted obligations under its credit enhancement agreement, then the Bank could be exposed to the loss of the reimbursement and credit enhancement income as a result of this counterparty risk. See the following reconciliations of non-GAAP measures for the impact of the credit enhancement on our financial condition and results. Note that these amounts are supplemental and are not a substitute for an analysis based on GAAP measures. Similar amounts for periods prior to the quarter ended December 31, 2024 were immaterial and therefore not separately disclosed.

The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement expenses on total interest income on loans HFI and average yield on loans HFI:

	As of and for the Three Months Ended								As of and for the Year Ended
($ in thousands; unaudited)	12/31/2024								12/31/2024
	Total Average Loans HFI		Total Interest Income on Loans HFI			Average Yield on Loans HFI			Total Average Loans HFI		Total Interest Income on Loans HFI			Average Yield on Loans HFI
Before adjustment for credit enhancement	$	454,474	$	13,348			11.68	%	$	417,207	$	51,194			12.27	%
Less: credit enhancement expense				(5	)							(8	)
Net of adjustment for credit enhancement expenses	$	454,474	$	13,343			11.68	%	$	417,207	$	51,186			12.27	%

Total interest income on loans HFI net of credit enhancement expense and the average yield on loans HFI are non-GAAP measures that include the impact of credit enhancement expense on total interest income on loans HFI and the respective average yield on loans HFI, the most directly comparable GAAP measures.

The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement expenses on net interest income and net interest margin:

	As of and for the Three Months Ended								As of and for the Year Ended
	12/31/2024								12/31/2024
($ in thousands; unaudited)	Total Average Interest- Earning Assets		Net Interest Income			Net Interest Margin			Total Average Interest- Earning Assets		Net Interest Income			Net Interest Margin
Before adjustment for credit enhancement	$	617,737	$	15,529			10.00	%	$	589,880	$	58,912			9.99	%
Less: credit enhancement expense				(5	)							(8	)
Net of adjustment for credit enhancement expenses	$	617,737	$	15,524			10.00	%	$	589,880	$	58,904			9.99	%

Net interest income and net interest margin net of credit enhancement expense are non-GAAP measures that include the impact of credit enhancement expenses on net interest income and net interest margin, the most directly comparable GAAP measures.

Non-interest expenses less credit enhancement expenses is a non-GAAP measure presented to illustrate the impact of credit enhancement expense on non-interest expense:


($ in thousands; unaudited)	Three Months Ended December 31, 2024			Year Ended December 31, 2024
Total non-interest expense	$	13,564		$	52,835
Less: credit enhancement expense		(5	)		(8	)
Total non-interest expense less credit enhancement expenses	$	13,559		$	52,827

Total non-interest expense less credit enhancement expense is a non-GAAP measure that illustrates the impact of credit enhancement expenses on non-interest expense, the most directly comparable GAAP measure.

Total non-interest income less credit enhancement income is a non-GAAP measure to illustrate the impact of credit enhancement income resulting from credit enhanced loans on non-interest income:


($ in thousands; unaudited)	Three Months Ended December 31, 2024			Year Ended December 31, 2024
Total non-interest income	$	5,603		$	22,485
Less: credit enhancement income		(25	)		(111	)
Total non-interest income less credit enhancement income	$	5,578		$	22,374

Total non-interest income less indemnification income is a non-GAAP measure that illustrates the impact of credit enhancement income on non-interest income. The most directly comparable GAAP measure is non-interest income.

The following non-GAAP measure is presented to illustrate the effect of the credit enhancement program that creates the credit enhancement on the allowance for credit losses:


($ in thousands; unaudited)	As of December 31, 2024
Allowance for credit losses	$	(13,176	)
Less: allowance for credit losses related to credit enhanced loans		(111	)
Allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans	$	(13,065	)

The allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans is a non-GAAP measure that reflects the effect of the credit enhancement program on the allowance for credit losses. The total outstanding balance of loans held for investment with credit enhancement as of December 31, 2024 was approximately $0.9 million.

The MIL Network –

January 31, 2025

MIL-OSI USA: Welch Speaks on the Senate Floor About the Ceasefire in Gaza

US Senate News:

Source: United States Senator Peter Welch (D-Vermont)
WASHINGTON, D.C. – U.S. Senator Peter Welch (D-Vt.) last night took to the Senate floor to express his relief by the announcement of a ceasefire in Gaza and stress the importance of creating a viable, secure, independent, and demilitarized Palestinian state.
Senator Welch emphasized that there is no solution that offers lasting peace, and continued U.S. support, other than two independent states.
Watch Senator Welch’s speech below:
Senator Welch’s remarks, as delivered, can be read here and below:
“Like all of us I was enormously relieved by the announcement of a ceasefire in Gaza, the gradual release of hostages, and a surge in humanitarian aid for the two million desperate Palestinians who are trapped inside Gaza.
“Despite the daunting challenges ahead and the many factors that could derail negotiations to implement Stage Two of the agreement, I’m cautiously hopeful that this could be the beginning of the end of a war that has traumatized millions of Palestinians and Israelis for more than 16 months.
“There will come a time for the accounting of the conduct of the war, which has caused such appalling loss of Palestinian and Israeli lives, including tens of thousands of children, of health workers, aid workers, and journalists, and massive destruction of property, including practically every hospital, every school, and university in Gaza. These things must not be forgotten, and that means investigating and holding people accountable under the laws of war.
“But today, I want to speak briefly on an issue that is key to the lasting peace between Palestinians and Israelis that we seek. And that is the creation of a viable, secure, independent, and demilitarized Palestinian state.
“The war in Gaza was triggered, of course, by the merciless slaughter on October 7, 2023, of 1,200 innocent Israelis, Americans and others, and the abduction of some 250 hostages, many of whom have died. But as we all know, the Middle East conflict began many decades earlier. And some would say centuries ago. Ethnic hatred and religious intolerance passed down from one generation to the next have fueled seemingly endless violence perpetrated by extremists on both sides. And it’s created a chronic state of insecurity for Israelis, and insecurity and humiliation, poverty, and hopelessness for Palestinians.
“In the West Bank, Israel’s ever-expanding settlement construction—in violation of UN resolutions and contrary to U.S. policy—has created a patchwork of separate and unequal enclaves and illegal outposts, provoking frequent acts of deadly violence by Israeli settlers and also by Palestinian extremists.
“Gaza, with the overt support of the Netanyahu government, became an open-air prison for two million impoverished Palestinians dependent on international aid and under the ruthless control of Hamas.
“And throughout this period, the wealthy Arab states have called for a Palestinian state. But they have expended minimal political capital or resources in furtherance of that goal. A lot of talk, very little action.
“Successive Palestinian leaders have squandered opportunities to make necessary political and economic reforms, while Mr. Netanyahu has worked to create conditions on the ground that would actually make a Palestinian state impossible.
“Despite this grim reality—and it is a grim reality—the attention focused on the remarkable life of President Jimmy Carter after his death on December 29th, reminded us that even in the most difficult circumstances peace is possible between long-standing enemies. It happened. But that possibility depends on the quality of leadership.
“If there ever were a time when the leaders of Israel, the Palestinian Authority, their Arab neighbors, and the United States should put the interests of regional peace and economic cooperation and development, including an independent Palestinian state, over personal and political ambition—it is now. It is now.
“Gaza is in ruins. Hamas and Hezbollah—still a threat—pose less of a threat than at any time in recent history. The horrific Assad regime is gone. Iran is also weaker. Most Israelis, Palestinians, Lebanese, Syrians want peace. But given the absence of visionary and courageous leaders in Israel and the Palestinian Authority, the possibility that a path to a Palestinian state will emerge really does depend on the Trump Administration using its diplomatic influence far more forcefully and effectively than previous U.S. administrations—including the first Trump Administration—were willing to do.
“We’ve got to act. And it will require the same of Congress, which in the past has restricted itself to enacting tighter and tighter sanctions on the Palestinians causing increasing desperation and resentment for innocent Palestinians, while at the same time, opposing any incentives on Israel to stop settlement construction and settler violence.
“There are those who believe that because of Israel’s construction of settlements, walls, fences, separate highways, factories, and farms in the West Bank, that the West Bank and Gaza can never be reconfigured into a viable Palestinian state. Having seen a current map of the West Bank, I can certainly understand that.
“But others reject the very idea of a Palestinian state as incompatible with Israel’s security, without proposing any alternative that would preserve Israel as a democracy in which all its citizens, regardless of ethnicity; religion, have equal rights. Given Hamas’ horrific attack on October 7th, I can also easily understand that.
“Then, on January 25th, President Trump called for “cleaning out” of Gaza, suggesting that a million and half Palestinians should be resettled in Jordan and Egypt. And you know, seriously, there’s just so many things wrong and unrealistic with that reprehensible and unworkable idea that it barely deserves a response, beyond the predictable and immediate repudiation by all those who would be impacted. It’s not serious.
“But to me, as elusive as it may seem, there really is no solution that offers lasting peace, and continued U.S. support, other than two independent states—Israel and Palestine, side-by-side. A Palestinian state will only be possible if both sides are pressured to make the difficult compromises both sides they so far refused to make. And only the United States and our heretofore reluctant Arab allies can exert the kind of pressure that’s necessary to bring people to an agreement.
“Mr. President, there have been far too many missed opportunities and disappointments since the Oslo and Camp David Accords, and far too much needless death and destruction resulting from the unchecked ambitions of leaders motivated by their worst instincts. History will judge us whether we seize this moment to finally chart a different course. A course that does enable Israelis and Palestinians to finally accept that there is no turning back the clock, that both are there to stay, and that as many Palestinian and Israeli neighbors have shown throughout years of conflict and loss, they have far more in common than their differences.
“Mr. President, I yield back.”

MIL OSI USA News –

January 31, 2025

MIL-OSI Banking: Apple reports first quarter results

Source: Apple

Headline: Apple reports first quarter results

Apple periodically provides information for investors on its corporate website, apple.com, and its investor relations website, investor.apple.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and details related to its annual meeting of shareholders.

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation those about payment of the Company’s quarterly dividend and future business plans. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Risks and uncertainties include without limitation: effects of global and regional economic conditions, including as a result of government policies, geopolitical tensions, conflict, terrorism, natural disasters, and public health issues; risks relating to the design, manufacture, introduction, and transition of products and services in highly competitive and rapidly changing markets, including from reliance on third parties for components, technology, manufacturing, applications, support, and content; risks relating to information technology system failures, network disruptions, and failure to protect, loss of, or unauthorized access to, or release of, data; and effects of unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, and stock price is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements, which speak only as of the date they are made.

About Apple

Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, AirPods, Apple Watch, and Apple Vision Pro. Apple’s six software platforms — iOS, iPadOS, macOS, watchOS, visionOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, iCloud, and Apple TV+. Apple’s more than 150,000 employees are dedicated to making the best products on earth and to leaving the world better than we found it.

MIL OSI Global Banks –

January 31, 2025

MIL-OSI: Riverview Bancorp Reports Net Income of $1.2 Million in Third Fiscal Quarter 2025; Results Highlighted by Net Interest Margin Expansion

Source: GlobeNewswire (MIL-OSI)

VANCOUVER, Wash., Jan. 30, 2025 (GLOBE NEWSWIRE) — Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the “Company”) today reported earnings of $1.2 million, or $0.06 per diluted share, in the third fiscal quarter ended December 31, 2024, compared to $1.6 million, or $0.07 per diluted share in the second fiscal quarter ended September 30, 2024, and $1.5 million, or $0.07 per diluted share, in the third fiscal quarter a year ago.

In the first nine months of fiscal 2025, net income was $3.8 million, or $0.18 per diluted share, compared to $6.8 million, or $0.32 per diluted share, in the first nine months of fiscal 2024.

“Riverview’s operating performance during the third fiscal quarter reflected steady improvements, with net interest margin expansion as a result of stabilizing funding costs and higher loan yields,” stated Nicole Sherman, President and Chief Executive Officer. “While loan payoffs impacted net loan growth during the third quarter, loan production outperformed the previous three quarters and newly funded loans are being boarded at higher rates than the legacy portfolio. Although we still have work to do, we remain focused on managing our balance sheet and improving our performance metrics and profitability in the remainder of fiscal year 2025.”

Third Quarter Highlights (at or for the period ended December 31, 2024)

Net interest income increased to $9.4 million for the quarter, compared to $8.9 million in the preceding quarter and $9.3 million in the third fiscal quarter a year ago.
Net interest margin (“NIM”) was 2.60% for the quarter, a 14 basis point improvement compared to the preceding quarter and a 11 basis point improvement compared to the year ago quarter.
Riverview Trust Company assets under management increased to $872.6 million at December 31, 2024. Asset management fees continue to improve and increased to $1.4 million for the quarter ended December 31, 2024.
Asset quality remained strong, with non-performing assets at $469,000, or 0.03% of total assets at December 31, 2024.
Riverview recorded no provision for credit losses during the current quarter, compared to a $100,000 provision in the preceding quarter and no provision in the year ago quarter.
Total loans were $1.05 billion at December 31, 2024, compared to $1.06 billion at September 30, 2024, and $1.02 billion at December 31, 2023.
Total deposits were $1.22 billion at December 31, 2024, compared to $1.24 billion at September 30, 2024 and $1.22 billion at December 31, 2023.
Tangible book value per share (non-GAAP) was $6.20 at December 31, 2024, compared to $6.33 at September 30, 2024, and $6.21 at December 31, 2023.

Income Statement Review
Riverview’s net interest income was $9.4 million in the current quarter, compared to $8.9 million in the preceding quarter, and $9.3 million in the third fiscal quarter a year ago. The increase compared to the preceding quarter was driven by higher interest earning asset yields due to higher origination rates on new loan growth as well as loan repricing in addition to the recognition of a loan prepayment fee and related loan fees totaling $318,000. In the first nine months of fiscal 2025, net interest income was $27.2 million, compared to $29.5 million in the first nine months of fiscal 2024. Investment income decreased compared to the nine month period a year ago due to the strategic investment restructuring that was executed in the fourth quarter of fiscal 2024.

Riverview’s NIM was 2.60% for the third quarter of fiscal 2025, a 14 basis point increase compared to 2.46% in the preceding quarter and a 11 basis-point increase compared to 2.49% in the third quarter of fiscal 2024. “As anticipated, NIM improved during the quarter, as higher yields in interest earning assets offset the modest increase in deposit costs,” said David Lam, EVP and Chief Financial Officer. “With the recent Fed rate reductions, we anticipate deposit costs to further stabilize in future quarters. Additionally, the rate cuts reduced the interest expense on borrowings, which also benefitted NIM during the current quarter.” In the first nine months of fiscal 2025, the net interest margin was 2.51% compared to 2.64% in the same period a year earlier.

Investment securities decreased $17.8 million during the quarter to $337.2 million at December 31, 2024, compared to $354.9 million at September 30, 2024, and decreased $92.0 million compared to $429.1 million at December 31, 2023. The average securities balances for the quarters ended December 31, 2024, September 30, 2024, and December 31, 2023, were $364.2 million, $378.4 million, and $458.0 million, respectively. The weighted average yields on securities balances for those same periods were 1.82%, 2.05%, and 2.01%, respectively. The duration of the investment portfolio at December 31, 2024 was approximately 5.3 years. The anticipated investment cashflows over the next twelve months is approximately $42.8 million. There were no investment purchases during the third fiscal quarter of 2025.

Riverview’s yield on loans improved to 4.97% during the third fiscal quarter, compared to 4.80% in the preceding quarter, and 4.56% in the third fiscal quarter a year ago. “Loan yields improved during the current quarter as a result of higher rates on new loan originations and higher rates on existing loans that have come up for repricing, when compared to the existing loan portfolio. We continue to explore opportunities to enhance our loan yield by expanding our commercial business portfolio offerings to include more variable rate loan structures,” said Mike Sventek, EVP and Chief Lending Officer. Deposit costs increased to 1.32% during the third fiscal quarter compared to 1.26% in the preceding quarter, and 0.68% in the third fiscal quarter a year ago due to clients seeking higher deposit yields. The increase from clients seeking higher deposit yields was less impactful quarter over quarter compared to the increase from the third fiscal quarter a year ago given the relative change in the interest rate environment during those respective periods.

Non-interest income was $3.3 million during the third fiscal quarter of 2025 compared to $3.8 million in the preceding quarter and $3.1 million in the third fiscal quarter of 2024. The preceding quarter included approximately $525,000 in income related to a legal expense recovery from the prior year. In the first nine months of fiscal 2025, non-interest income increased to $10.5 million compared to $9.7 million in the same period a year ago.

Asset management fees were $1.4 million during the third fiscal quarter and the second fiscal quarter, and $1.3 million in the third fiscal quarter a year ago. Asset management fees increased compared to the year ago quarter due to new client relationships and the continued positive market performance in the equity markets during the third quarter. Riverview Trust Company’s assets under management were $872.6 million at December 31, 2024, compared to $871.6 million at September 30, 2024, and $942.4 million at December 31, 2023.

Non-interest expense was $11.2 million during the third fiscal quarter, compared to $10.7 million in the preceding quarter and $10.6 million in the third fiscal quarter a year ago. Salary and employee benefits, the largest component of non-interest expense, remained flat during the current quarter compared to the preceding quarter. Professional fees increased during the current quarter compared to the preceding quarter due to higher consulting costs. Additionally, non-interest expense for preceding quarter included a fraud loss recovery. The efficiency ratio was 87.6% for the third fiscal quarter, compared to 83.7% for the previous quarter and 85.2% in the third fiscal quarter a year ago. Year-to-date, non-interest expense was $32.8 million compared to $30.6 million in the first nine months of fiscal 2024.

Riverview’s effective tax rate for the third fiscal quarter of 2025 was 21.8%, compared to 21.4% for the preceding quarter and 20.6% for the year ago quarter.

Balance Sheet Review
While loan production increased during the third quarter, total loans decreased primarily due to two large loan payoffs. Total loans decreased $15.9 million during the quarter to $1.05 billion at December 31, 2024, compared to $1.06 billion three months earlier and increased $26.9 million compared to $1.02 billion a year earlier. Riverview’s loan pipeline was $49.1 million at December 31, 2024, compared to $43.5 million at the end of the preceding quarter. New loan originations during the quarter were $31.1 million, compared to $25.6 million in the preceding quarter and $51.3 million in the third fiscal quarter a year ago. Since December 31, 2024, the loan pipeline has increased to $64.2 million.

Undisbursed construction loans totaled $19.5 million at December 31, 2024, compared to $34.1 million at September 30, 2024, with the majority of the undisbursed construction loans expected to be funded over the next several quarters. The decrease was due to one large construction project being completed during the quarter and moving out of the construction category to a permanent loan category, before being paid off. Undisbursed homeowner association loans for the purpose of common area maintenance and repairs totaled $14.5 million at December 31, 2024, compared to $11.1 million at September 30, 2024. Revolving commercial business loan commitments totaled $46.9 million at December 31, 2024, compared to $48.4 million at September 30, 2024. Utilization on these loans totaled 17.60% at December 31, 2024, compared to 23.88% at September 30, 2024. The weighted average rate on loan originations during the quarter was 7.04% compared to 7.65% in the preceding quarter.

The office building loan portfolio totaled $113.4 million at December 31, 2024, compared to $112.4 million at September 30, 2024. The average loan balance of the office building loan portfolio was $1.5 million with an average loan-to-value ratio of 53.8% and an average debt service coverage ratio of 1.99x. Office building loans within the Portland core consists of three loans totaling $20.6 million which is approximately 18.2% of the total office building loan portfolio or 2.0% of total loans.

Non-interest checking and interest checking accounts, as a percentage of total deposits, totaled 46.8% at December 31, 2024, compared to 49.2% at September 30, 2024, and 51.1% at December 31, 2023. The decrease in non-interest checking account balances during the quarter was in part due to seasonal client calendar year-end activity for payments and distributions. As in prior quarters, money market balances and CDs increased during the quarter as we are still seeing a subset of clients still looking for higher yields. Total deposits decreased $18.5 million during the quarter to $1.22 billion at December 31, 2024, compared to $1.24 billion at September 30, 2024, and were unchanged compared to a year ago. Riverview Bank had moved customer deposits to Riverview Trust as a higher yielding deposit alternative and those assets were all retained within the Company during the period of increasing interest rates and the Company has the ability to move or reciprocate these deposits back to the Bank if the need arises.

FHLB advances decreased $18.1 million during the quarter to $84.2 million at December 31, 2024, compared to $102.3 million at September 30, 2024. FHLB advances decreased during the quarter as a result of the decrease in investment securities and loans receivable balances with the proceeds from both used to pay down borrowings.

Shareholders’ equity was $158.3 million at December 31, 2024, compared to $160.8 million three months earlier and $158.5 million one year earlier. Tangible book value per share (non-GAAP) was $6.20 at December 31, 2024, compared to $6.33 at September 30, 2024, and $6.21 at December 31, 2023. Riverview paid a quarterly cash dividend of $0.02 per share on January 14, 2025, to shareholders of record on January 2, 2025.

Credit Quality
“Asset quality metrics continue to remain very stable, as we continue to diligently monitor our loan portfolio closely for any signs of stress,” said Robert Benke, EVP and Chief Credit Officer. Non-performing loans, excluding SBA and USDA government guaranteed loans (“government guaranteed loans”) (non-GAAP) totaled $168,000 or 0.02% of total loans as of December 31, 2024, compared to $149,000, or 0.01% of total loans at September 30, 2024, and $186,000, or 0.02% of total loans at December 31, 2023. There was one non-performing government guaranteed loan totaling $301,000 at both December 31, 2024 and September 30, 2024. At December 31, 2024, including government guaranteed loans, non-performing assets were $469,000, or 0.03% of total assets.

Riverview recorded $114,000 in net loan charge-offs for the current quarter. This compared to $2,000 in net loan recoveries for the preceding quarter. Riverview recorded no provision for credit losses for the current quarter, compared to $100,000 in provision for credit losses for the preceding quarter.

Classified assets were $225,000 at December 31, 2024, compared to $326,000 at September 30, 2024, and $215,000 at December 31, 2023. The classified assets to total capital ratio was 0.1% at December 31, 2024, compared to 0.2% at September 30, 2024, and 0.1% a year earlier. Criticized assets were $50.4 million at December 31, 2024, compared to $50.7 million at September 30, 2024, and $37.2 million at December 31, 2023. Criticized assets remained stable during the current quarter compared to the prior quarter. The increase compared to a year ago was primarily due to one relationship that was moved to the criticized asset category during the preceding quarter as the loans goes through probate. The Company does not anticipate any loss from this relationship.

The allowance for credit losses was $15.4 million at December 31, 2024, compared to $15.5 million at September 30, 2024, and $15.4 million at December 31, 2023. The allowance for credit losses represented 1.47% of total loans at December 31, 2024, compared to 1.46% at September 30, 2024, and 1.51% a year earlier. The allowance for credit losses to loans, net of government guaranteed loans (non-GAAP), was 1.54% at December 31, 2024, compared to 1.53% at September 30, 2024, and 1.59% a year earlier.

Capital/Liquidity
Riverview continues to maintain capital levels well in excess of the regulatory requirements to be categorized as “well capitalized” with a total risk-based capital ratio of 16.47% and a Tier 1 leverage ratio of 10.86% at December 31, 2024. Tangible common equity to average tangible assets ratio (non-GAAP) was 8.84% at December 31, 2024.

Riverview has approximately $450.1 million in available liquidity at December 31, 2024, including $164.4 million of borrowing capacity from the FHLB and $285.7 million from the Federal Reserve Bank of San Francisco (“FRB”). At December 31, 2024, the Bank had $84.2 million in outstanding FHLB borrowings.

At December 31, 2024, the uninsured deposit ratio was 23.8%. Available liquidity under the FRB borrowing line would cover nearly 100% of the estimated uninsured deposits and available liquidity under both the FHLB and FRB borrowing lines would cover 155% of the estimated uninsured deposits.

On September 25, 2024, the Company’s Board of Directors adopted a stock repurchase program. Under this repurchase program, the Company may repurchase up to $2.0 million of the Company’s outstanding shares of common stock, in the open market, based on prevailing market prices, or in privately negotiated transactions. Once the repurchase program is effective, the repurchase program will continue until the earlier of the completion of the repurchase or 12 months after the effective date, depending upon market conditions. During the third quarter, the Company repurchased 200,073 shares of common stock at an average price of $5.43.

Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. Management has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in Riverview’s core operations reflected in the current quarter’s results and facilitate the comparison of our performance with the performance of our peers. However, these non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP. Where applicable, comparable earnings information using GAAP financial measures is also presented. Because not all companies use the same calculations, our presentation may not be comparable to other similarly titled measures as calculated by other companies. For a reconciliation of these non-GAAP financial measures, see the tables below.

Tangible shareholders’ equity to tangible assets and tangible book value per share:

(Dollars in thousands)	December 31, 2024			September 30, 2024			December 31, 2023			March 31, 2024

Shareholders’ equity (GAAP)	$	158,270		$	160,774		$	158,472		$	155,588
Exclude: Goodwill		(27,076	)		(27,076	)		(27,076	)		(27,076	)
Exclude: Core deposit intangible, net		(196	)		(221	)		(298	)		(271	)
Tangible shareholders’ equity (non-GAAP)	$	130,998		$	133,477		$	131,098		$	128,241

Total assets (GAAP)	$	1,508,609		$	1,548,397		$	1,590,623		$	1,521,529
Exclude: Goodwill		(27,076	)		(27,076	)		(27,076	)		(27,076	)
Exclude: Core deposit intangible, net		(196	)		(221	)		(298	)		(271	)
Tangible assets (non-GAAP)	$	1,481,337		$	1,521,100		$	1,563,249		$	1,494,182

Shareholders’ equity to total assets (GAAP)		10.49	%		10.38	%		9.96	%		10.23	%

Tangible common equity to tangible assets (non-GAAP)		8.84	%		8.78	%		8.39	%		8.58	%

Shares outstanding		21,134,758			21,096,968			21,111,043			21,111,043

Book value per share (GAAP)	$	7.49		$	7.62		$	7.51		$	7.37

Tangible book value per share (non-GAAP)	$	6.20		$	6.33		$	6.21		$	6.07


Pre-tax, pre-provision income
	Three Months Ended									Nine Months Ended
(Dollars in thousands)	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023

Net income (GAAP)	$	1,232		$	1,557		$	1,452		$	3,755		$	6,767
Include: Provision for income taxes		343			425			377			1,021			1,897
Include: Provision for credit losses		–			100			–			100			–
Pre-tax, pre-provision income (non-GAAP)	$	1,575		$	2,082		$	1,829		$	4,876		$	8,664

Allowance for credit losses reconciliation, excluding Government Guaranteed loans

(Dollars in thousands)	December 31, 2024			September 30, 2024			December 31, 2023			March 31, 2024

Allowance for credit losses	$	15,352		$	15,466		$	15,361		$	15,364

Loans receivable (GAAP)	$	1,045,109		$	1,060,977		$	1,018,199		$	1,024,013
Exclude: Government Guaranteed loans		(49,024	)		(49,983	)		(51,809	)		(51,013	)
Loans receivable excluding Government Guaranteed loans (non-GAAP)	$	996,085		$	1,010,994		$	966,390		$	973,000

Allowance for credit losses to loans receivable (GAAP)		1.47	%		1.46	%		1.51	%		1.50	%

Allowance for credit losses to loans receivable excluding Government Guaranteed loans (non-GAAP)		1.54	%		1.53	%		1.59	%		1.58	%


Non-performing loans reconciliation, excluding Government Guaranteed Loans

	Three Months Ended
(Dollars in thousands)	December 31, 2024			September 30, 2024			December 31, 2023

Non-performing loans (GAAP)	$	469		$	450		$	186
Less: Non-performing Government Guaranteed loans		(301	)		(301	)		–
Adjusted non-performing loans excluding Government Guaranteed loans (non-GAAP)	$	168		$	149		$	186

Non-performing loans to total loans (GAAP)		0.04	%		0.04	%		0.02	%

Non-performing loans, excluding Government Guaranteed loans to total loans (non-GAAP)		0.02	%		0.01	%		0.02	%

Non-performing loans to total assets (GAAP)		0.03	%		0.03	%		0.01	%

Non-performing loans, excluding Government Guaranteed loans to total assets (non-GAAP)		0.01	%		0.01	%		0.01	%

About Riverview
Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver, Washington – just north of Portland, Oregon, on the I-5 corridor. With assets of $1.51 billion at December 31, 2024, it is the parent company of Riverview Bank, as well as Riverview Trust Company. The Bank offers true community banking services, focusing on providing the highest quality service and financial products to commercial, business and retail clients through 17 branches, including 13 in the Portland-Vancouver area, and 3 lending centers. For the past 11 years, Riverview has been named Best Bank by the readers of The Vancouver Business Journal and The Columbian.

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements which include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions, future economic performance and projections of financial items. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated or implied by our forward-looking statements, including, but not limited to: potential adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession, the failure of the U.S. Congress to increase the debt ceiling, or slowed economic growth caused by increasing political instability from acts of war including Russia’s invasion of Ukraine, as well as supply chain disruptions, recent bank failures and any governmental or societal responses thereto; the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs and changes in the Company’s allowance for credit losses and provision for credit losses that may be impacted by deterioration in the housing and commercial real estate markets; changes in the levels of general interest rates, and the relative differences between short and long-term interest rates, deposit interest rates, the Company’s net interest margin and funding sources; the transition away from London Interbank Offered Rate toward new interest rate benchmarks; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in the Company’s market areas; secondary market conditions for loans and the Company’s ability to originate loans for sale and sell loans in the secondary market; results of examinations of the Bank by the Federal Deposit Insurance Corporation and the Washington State Department of Financial Institutions, Division of Banks, and of the Company by the Board of Governors of the Federal Reserve System, or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require the Company to increase its allowance for credit losses, write-down assets, reclassify its assets, change the Bank’s regulatory capital position or affect the Company’s ability to borrow funds or maintain or increase deposits, which could adversely affect its liquidity and earnings; legislative or regulatory changes that adversely affect the Company’s business including changes in banking, securities and tax law, and in regulatory policies and principles, or the interpretation of regulatory capital or other rules; the Company’s ability to attract and retain deposits; the unexpected outflow of uninsured deposits that may require us to sell investment securities at a loss; the Company’s ability to control operating costs and expenses; the use of estimates in determining fair value of certain of the Company’s assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risks associated with the loans on the Company’s consolidated balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect the Company’s workforce and potential associated charges; disruptions, security breaches or other adverse events, failures or interruptions in or attacks on our information technology systems or on the third-party vendors who perform several of our critical processing functions; the Company’s ability to retain key members of its senior management team; costs and effects of litigation, including settlements and judgments; the Company’s ability to implement its business strategies; the Company’s ability to successfully integrate any assets, liabilities, customers, systems, and management personnel it may acquire into its operations and the Company’s ability to realize related revenue synergies and cost savings within expected time frames; future goodwill impairment due to changes in Riverview’s business, changes in market conditions, or other factors; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; the Company’s ability to pay dividends on its common stock; the quality and composition of our securities portfolio and the impact of and adverse changes in the securities markets, including market liquidity; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting standards; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, and other external events on our business; and other economic, competitive, governmental, regulatory, and technological factors affecting the Company’s operations, pricing, products and services, and the other risks described from time to time in our reports filed with and furnished to the U.S. Securities and Exchange Commission.

The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements included in this report or the reasons why actual results could differ from those contained in such statements, whether as a result of new information or to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for fiscal 2025 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect the Company’s consolidated financial condition and consolidated results of operations as well as its stock price performance.


RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(In thousands, except share data) (Unaudited)	December 31, 2024			September 30, 2024			December 31, 2023			March 31, 2024
ASSETS

Cash (including interest-earning accounts of $12,573, $12,453, $23,717 and $12,164)	$	25,348		$	30,960		$	37,553		$	23,642
Investment securities:
Available for sale, at estimated fair value		124,874			132,953			196,461			143,196
Held to maturity, at amortized cost		212,295			221,991			232,659			229,510
Loans receivable (net of allowance for credit losses of $15,352, $15,466, $15,361, and $15,364)		1,029,757			1,045,511			1,002,838			1,008,649
Prepaid expenses and other assets		12,945			13,585			14,486			14,469
Accrued interest receivable		4,639			4,570			5,248			4,415
Federal Home Loan Bank stock, at cost		4,742			5,557			8,026			4,927
Premises and equipment, net		22,731			22,956			22,270			21,718
Financing lease right-of-use assets		1,144			1,163			1,221			1,202
Deferred income taxes, net		9,471			8,688			10,033			9,778
Goodwill		27,076			27,076			27,076			27,076
Core deposit intangible, net		196			221			298			271
Bank owned life insurance		33,391			33,166			32,454			32,676

TOTAL ASSETS	$	1,508,609		$	1,548,397		$	1,590,623		$	1,521,529

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:
Deposits	$	1,219,002		$	1,237,499		$	1,218,892		$	1,231,679
Accrued expenses and other liabilities		17,634			17,789			26,740			16,205
Advance payments by borrowers for taxes and insurance		317			848			299			581
Junior subordinated debentures		27,069			27,048			26,982			27,004
Federal Home Loan Bank advances		84,200			102,304			157,054			88,304
Finance lease liability		2,117			2,135			2,184			2,168
Total liabilities		1,350,339			1,387,623			1,432,151			1,365,941

SHAREHOLDERS’ EQUITY:
Serial preferred stock, $.01 par value; 250,000 authorized, issued and outstanding, none		–			–			–			–
Common stock, $.01 par value; 50,000,000 authorized,
December 31, 2024 – 21,134,758 issued and outstanding;
September 30, 2024 – 21,096,968 issued and outstanding;		209			211			211			211
December 31, 2023 – 21,111,043 issued and outstanding;
March 31, 2024 – 21,111,043 issued and outstanding;
Additional paid-in capital		54,227			55,057			54,982			55,005
Retained earnings		118,988			118,179			120,734			116,499
Accumulated other comprehensive loss		(15,154	)		(12,673	)		(17,455	)		(16,127	)
Total shareholders’ equity		158,270			160,774			158,472			155,588

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,508,609		$	1,548,397		$	1,590,623		$	1,521,529

RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Income
	Three Months Ended						Nine Months Ended
(In thousands, except share data) (Unaudited)	Dec. 31, 2024		Sept. 30, 2024		Dec. 31, 2023		Dec. 31, 2024		Dec. 31, 2023
INTEREST INCOME:
Interest and fees on loans receivable	$	13,201	$	12,683	$	11,645	$	37,936	$	34,288
Interest on investment securities – taxable		1,589		1,874		2,231		5,435		6,826
Interest on investment securities – nontaxable		65		65		65		195		196
Other interest and dividends		272		320		331		902		954
Total interest and dividend income		15,127		14,942		14,272		44,468		42,264

INTEREST EXPENSE:
Interest on deposits		4,101		3,855		2,059		11,403		5,264
Interest on borrowings		1,638		2,145		2,889		5,914		7,466
Total interest expense		5,739		6,000		4,948		17,317		12,730
Net interest income		9,388		8,942		9,324		27,151		29,534
Provision for credit losses		–		100		–		100		–

Net interest income after provision for credit losses		9,388		8,842		9,324		27,051		29,534

NON-INTEREST INCOME:
Fees and service charges		1,492		1,524		1,533		4,556		4,871
Asset management fees		1,443		1,433		1,266		4,434		3,920
Bank owned life insurance (“BOLI”)		225		279		211		715		669
Other, net		181		605		46		844		288
Total non-interest income, net		3,341		3,841		3,056		10,549		9,748

NON-INTEREST EXPENSE:
Salaries and employee benefits		6,471		6,477		6,091		19,336		17,979
Occupancy and depreciation		1,871		1,921		1,698		5,687		4,930
Data processing		743		695		712		2,202		2,096
Amortization of core deposit intangible		25		25		27		75		81
Advertising and marketing		317		367		282		994		950
FDIC insurance premium		174		166		178		518		530
State and local taxes		327		234		355		777		814
Telecommunications		54		52		56		153		161
Professional fees		429		304		353		1,223		961
Other		743		460		799		1,859		2,116
Total non-interest expense		11,154		10,701		10,551		32,824		30,618

INCOME BEFORE INCOME TAXES		1,575		1,982		1,829		4,776		8,664
PROVISION FOR INCOME TAXES		343		425		377		1,021		1,897
NET INCOME	$	1,232	$	1,557	$	1,452	$	3,755	$	6,767

Earnings per common share:
Basic	$	0.06	$	0.07	$	0.07	$	0.18	$	0.32
Diluted	$	0.06	$	0.07	$	0.07	$	0.18	$	0.32
Weighted average number of common shares outstanding:
Basic		21,037,246		21,097,580		21,113,464		21,081,851		21,146,888
Diluted		21,037,246		21,097,580		21,113,464		21,081,851		21,148,679

(Dollars in thousands)	At or for the three months ended									At or for the nine months ended
	Dec. 31, 2024			Sept. 30, 2024			Dec. 31, 2023			Dec. 31, 2024		Dec. 31, 2023
AVERAGE BALANCES
Average interest–earning assets	$	1,436,130		$	1,446,098		$	1,494,341		$	1,439,834	$	1,494,443
Average interest-bearing liabilities		1,019,265			1,011,688			1,028,817			1,010,419		1,021,532
Net average earning assets		416,865			434,410			465,524			429,415		472,911
Average loans		1,053,342			1,048,536			1,015,741			1,043,274		1,008,429
Average deposits		1,232,450			1,216,769			1,209,524			1,220,443		1,235,032
Average equity		160,532			158,428			153,901			158,179		155,264
Average tangible equity (non-GAAP)		133,245			131,116			126,511			130,867		127,847


ASSET QUALITY	Dec. 31, 2024			Sept. 30, 2024			Dec. 31, 2023

Non-performing loans	$	469		$	450		$	186
Non-performing loans excluding SBA Government Guarantee (non-GAAP)		168			149			186
Non-performing loans to total loans		0.04	%		0.04	%		0.02	%
Non-performing loans to total loans excluding SBA Government Guarantee (non-GAAP)		0.02	%		0.01	%		0.02	%
Real estate/repossessed assets owned	$	–		$	–		$	–
Non-performing assets	$	469		$	450		$	186
Non-performing assets excluding SBA Government Guarantee (non-GAAP)		168			149			186
Non-performing assets to total assets		0.03	%		0.03	%		0.01	%
Non-performing assets to total assets excluding SBA Government Guarantee (non-GAAP)		0.01	%		0.01	%		0.01	%
Net loan charge-offs (recoveries) in the quarter	$	114		$	(2	)	$	(15	)
Net charge-offs (recoveries) in the quarter/average net loans		0.04	%		0.00	%		(0.01	)%

Allowance for credit losses	$	15,352		$	15,466		$	15,361
Average interest-earning assets to average interest-bearing liabilities		140.90	%		142.94	%		145.25	%
Allowance for credit losses to non-performing loans		3273.35	%		3436.89	%		8258.60	%
Allowance for credit losses to total loans		1.47	%		1.46	%		1.51	%
Shareholders’ equity to assets		10.49	%		10.38	%		9.96	%


CAPITAL RATIOS
Total capital (to risk weighted assets)		16.47	%		16.14	%		16.67	%
Tier 1 capital (to risk weighted assets)		15.21	%		14.88	%		15.42	%
Common equity tier 1 (to risk weighted assets)		15.21	%		14.88	%		15.42	%
Tier 1 capital (to average tangible assets)		10.86	%		10.72	%		10.53	%
Tangible common equity (to average tangible assets) (non-GAAP)		8.84	%		8.78	%		8.39	%


DEPOSIT MIX	Dec. 31, 2024			Sept. 30, 2024			Dec. 31, 2023			March 31, 2024

Interest checking	$	257,975		$	267,254		$	272,019		$	289,824
Regular savings		169,181			172,454			199,911			192,638
Money market deposit accounts		236,912			227,505			225,727			209,164
Non-interest checking		312,839			341,116			350,744			349,081
Certificates of deposit		242,095			229,170			170,491			190,972
Total deposits	$	1,219,002		$	1,237,499		$	1,218,892		$	1,231,679

COMPOSITION OF COMMERCIAL AND CONSTRUCTION LOANS
			Other				Commercial
	Commercial		Real Estate		Real Estate		& Construction
	Business		Mortgage		Construction		Total
December 31, 2024	(Dollars in thousands)
Commercial business	$	224,506	$	–	$	–	$	224,506
Commercial construction		–		–		32,442		32,442
Office buildings		–		113,350		–		113,350
Warehouse/industrial		–		108,356		–		108,356
Retail/shopping centers/strip malls		–		89,871		–		89,871
Assisted living facilities		–		363		–		363
Single purpose facilities		–		262,556		–		262,556
Land		–		4,062		–		4,062
Multi-family		–		78,822		–		78,822
One-to-four family construction		–		–		17,514		17,514
Total	$	224,506	$	657,380	$	49,956	$	931,842

March 31, 2024
Commercial business	$	229,404	$	–	$	–	$	229,404
Commercial construction		–		–		20,388		20,388
Office buildings		–		114,714		–		114,714
Warehouse/industrial		–		106,649		–		106,649
Retail/shopping centers/strip malls		–		89,448		–		89,448
Assisted living facilities		–		378		–		378
Single purpose facilities		–		272,312		–		272,312
Land		–		5,693		–		5,693
Multi-family		–		70,771		–		70,771
One-to-four family construction		–		–		16,150		16,150
Total	$	229,404	$	659,965	$	36,538	$	925,907


LOAN MIX	Dec. 31, 2024		Sept. 30, 2024		Dec. 31, 2023		March 31, 2024
Commercial and construction	(Dollars in thousands)
Commercial business	$	224,506	$	236,895	$	229,249	$	229,404
Other real estate mortgage		657,380		659,439		648,782		659,965
Real estate construction		49,956		51,498		42,167		36,538
Total commercial and construction		931,842		947,832		920,198		925,907
Consumer
Real estate one-to-four family		97,760		96,911		96,266		96,366
Other installment		15,507		16,234		1,735		1,740
Total consumer		113,267		113,145		98,001		98,106

Total loans		1,045,109		1,060,977		1,018,199		1,024,013

Less:
Allowance for credit losses		15,352		15,466		15,361		15,364
Loans receivable, net	$	1,029,757	$	1,045,511	$	1,002,838	$	1,008,649


DETAIL OF NON-PERFORMING ASSETS
	Southwest
	Washington		Other		Total
December 31, 2024	(Dollars in thousands)
Commercial business	$	43	$	–	$	43
Commercial real estate		93		–		93
Consumer		32		–		32
Government Guaranteed Loans		–		301		301
Total non-performing assets	$	168	$	301	$	469

	At or for the three months ended									At or for the nine months ended
SELECTED OPERATING DATA	Dec. 31, 2024			Sept. 30, 2024			Dec. 31, 2023			Dec. 31, 2024			Dec. 31, 2023

Efficiency ratio (4)		87.63	%		83.71	%		85.23	%		87.07	%		77.94	%
Coverage ratio (6)		84.17	%		83.56	%		88.37	%		82.72	%		96.46	%
Return on average assets (1)		0.32	%		0.40	%		0.37	%		0.33	%		0.57	%
Return on average equity (1)		3.04	%		3.90	%		3.75	%		3.15	%		5.80	%
Return on average tangible equity (1) (non-GAAP)		3.67	%		4.71	%		4.57	%		3.81	%		7.04	%

NET INTEREST SPREAD
Yield on loans		4.97	%		4.80	%		4.56	%		4.83	%		4.53	%
Yield on investment securities		1.82	%		2.05	%		2.01	%		2.00	%		2.02	%
Total yield on interest-earning assets		4.18	%		4.11	%		3.81	%		4.10	%		3.77	%

Cost of interest-bearing deposits		1.81	%		1.76	%		0.98	%		1.73	%		0.82	%
Cost of FHLB advances and other borrowings		5.43	%		5.92	%		5.83	%		5.83	%		5.77	%
Total cost of interest-bearing liabilities		2.23	%		2.35	%		1.91	%		2.27	%		1.66	%

Spread (7)		1.95	%		1.76	%		1.90	%		1.83	%		2.11	%
Net interest margin		2.60	%		2.46	%		2.49	%		2.51	%		2.64	%

PER SHARE DATA
Basic earnings per share (2)	$	0.06		$	0.07		$	0.07		$	0.18		$	0.32
Diluted earnings per share (3)		0.06			0.07			0.07			0.18			0.32
Book value per share (5)		7.49			7.62			7.51			7.49			7.51
Tangible book value per share (5) (non-GAAP)		6.20			6.33			6.21			6.20			6.21
Market price per share:
High for the period	$	5.88		$	4.72		$	6.48		$	5.88		$	6.48
Low for the period		4.59			3.79			5.35			3.64			4.17
Close for period end		5.74			4.71			6.40			5.74			6.40
Cash dividends declared per share		0.0200			0.0200			0.0600			0.0600			0.1800

Average number of shares outstanding:
Basic (2)		21,037,246			21,097,580			21,113,464			21,081,851			21,146,888
Diluted (3)		21,037,246			21,097,580			21,113,464			21,081,851			21,148,679

(1)      Amounts for the periods shown are annualized.
(2)      Amounts exclude ESOP shares not committed to be released.
(3)      Amounts exclude ESOP shares not committed to be released and include common stock equivalents.
(4)      Non-interest expense divided by net interest income and non-interest income.
(5)      Amounts calculated based on shareholders’ equity and include ESOP shares not committed to be released.
(6)      Net interest income divided by non-interest expense.
(7)      Yield on interest-earning assets less cost of funds on interest-bearing liabilities.

Contact:

Nicole Sherman, President & CEO
David Lam, CFO
Dan Cox, COO
360-693-6650

The MIL Network –

January 31, 2025

Category: Banking

Inflation

Income and consumption

Economic growth and labour market

Housing and credit access

Notes

Minimum international standards

Calibration of international standards

The “Swiss Finish”

References

Please be aware:

The pension sector achieved a return of kr. 344 billion in 2024

Source: Federated Farmers

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