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Category: Banking

  • MIL-OSI Economics: SheTalks – A Solutions Lab on Improving Access to Finance for Caribbean Women Entrepreneurs

    Source: Caribbean Development Bank

    Join us for our third SheTalks! Learn about our flagship study on Access to Finance for Caribbean Women Entrepreneurs, hear practical guidance from finance industry experts, and share your valuable insights on how the Hub can help women owned and led businesses to unlock capital and investment opportunities. 

    Join the SheTrades Caribbean Hub and Register for this event. 

    Under the theme Risky Business, this session takes a practical deep dive into access to finance facilitated by the SME Team of the JMMB Group Limited, one of the region’s innovative financiers. The JMMB’s team of Commercial Bankers will lead this conversation providing practical insights into their key considerations when designing and deploying financial solutions, services and products to women led businesses.

    Event Format:

    • Opening Remarks
    • Panel Discussion
    • Q&A Segment
    • SheTrades Entrepreneur Spotlight
    • Closing Remarks

    MIL OSI Economics –

  • MIL-OSI Global: The growing influence of Israel’s ultranationalist settler movement

    Source: The Conversation – UK – By Leonie Fleischmann, Senior Lecturer in International Politics, City St George’s, University of London

    Days after taking office, as he issued executive order after executive order to change the political face of America, Donald Trump also turned his attention to the war in Gaza.

    His proposal that Gaza should be cleared out and Palestinians should be relocated to other countries such as Egypt and Jordan has been met with outraged disbelief in many quarters. The Arab League has accused him of advocating ethnic cleansing.

    But Trump’s statement has met with approval from far-right leaders in Israel. Influential politicians have been advocating for this “solution” for years. These include finance minister and leader of the Religious Zionist party, Bezalel Smotrich and his ideological ally Itamar Ben Gvir, leader of the Otzma Yehudit (Jewish Strength) party and former national security minister.

    Smotrich responded to Trump’s utterance with the declaration that he aimed to turn the idea into an actionable policy. Ben Gvir, who resigned his ministerial position recently in response to the Israeli acceptance of the latest ceasefire deal, claimed that the evacuation of Gazans was the most “humanitarian answer” to the crisis and the only way to ensure peace and security for both Israelis and Palestinians.

    The pair – and their followers in Israel – share an anti-Arab ideology and a messianic belief in the Jewish people’s right to what they call “Greater Israel”. This would be a Jewish state which would also include the West Bank, which they referred to as “Judea and Samaria”, as well as Gaza and part of Jordan, Lebanon, Egypt, Syria, Iraq and Saudi Arabia.

    They have repeatedly called for Israel to use the war as an opportunity to reoccupy Gaza.

    These leaders enjoy a degree of influence due to the amount of media attention they receive. But it would be a mistake to assume they represent the majority of Israelis.

    Data collected in 2024 by the Pew Research Center found that 45% and 41% of Israelis expressed very unfavourable views of Ben-Gvir and Smotrich, respectively. In the 2022 elections, as the combined Religious Zionist party, they won just 10.84% of the vote.

    Meanwhile, the Israel Democracy Institute found that a majority of Israelis (57.5%) support a comprehensive deal for the release of all the hostages in return for an end to the war in Gaza.

    And yet Israel’s ultranationalists have been able to take advantage of the changing political landscape in Israel over the past few decades and the fragile multiparty system to wield disproportionate power over a government that has depended on their support to stay afloat.

    Israel’s rightwards shift

    During the 1990s, there was significant support in Israeli society for the Oslo peace process towards a two-state solution to the Israeli-Palestinian conflict. This culminated in the historic handshake between the then Israeli prime minister, Yitzhak Rabin, and the Palestine Liberation Organisation chairman, Yasser Arafat, on the White House lawn in 1993.

    While support for the peace process reached a high of 72% in Israel in 1995 when Oslo II was signed, right-wing factions attempted to derail the agreements. Rabin was assassinated in November 1995 by Yigal Amir, an extremist Israeli Jew, who did not want to see the realisation of a Palestinian state.

    The collapse of the Camp David talks in 2000, which then prime minister Ehud Barak blamed on Arafat, was followed in short order by the outbreak of the second intifada. The idea that there was “no partner for peace on the Palestinian side” became a mantra for Israeli voters, who looked to those who could guarantee their security.

    Benjamin Netanyahu, who had been prime minister from 1996 to 1999, returned to power in 2009, with the image of “Mr Security”.

    Netanyahu is now Israel’s longest serving prime minister. His masterful manipulation of the fragile political system in Israel has accounted for his longevity in power.

    But it has also enabled a gradual shift towards the most right-wing coalition in Israel’s history. Part of that has been the Religious Zionist camp.

    Biblical promise

    The Religious Zionists originally formed a small minority of the broader Zionist movement in the years preceding the declaration of the State of Israel. Religious Zionists combine faith and nationalism. Their core belief is that the Jewish people have the God-given right to settle the whole of Greater Israel.

    The West Bank in particular, but also the Gaza Strip, were the sites of many key events in biblical times and the home of a number of Israelite kingdoms. In the Bible, God promises this land to the descendants of Abraham – the Jewish people. Religious Zionists have chosen to take this literally.

    Having failed to wield power through the parliament in the early days of statehood, the Religious Zionists sought to realise their ideology through extra-parliamentary activity. This meant establishing settlements with a view to change facts on the ground. In the aftermath of the 1967 war, the main focus of settlement building was national security, rather than religious nationalist ideology.

    But ideology has always been a key factor for those who live in the settlements in the West Bank today – and those who vow to return to Gaza. The movement has been successful by establishing outposts and settlements in the West Bank and in getting “their people” into government.

    The Religious Zionist camp is broad and heterogeneous, and according to recent polls now represents 22% of the Jewish population in Israel. The party’s position in holding the balance of power in the Israeli parliament, or Knesset, since the election in 2022, has enabled them to gradually wield greater influence on Israeli policy both in the West Bank and the war in Gaza.

    Meanwhile many of their supporters have formed settler groups, who use violence to destabilise and displace Palestinian families living in the West Bank.

    And now the US president has not only backed one of their dearest dreams, to clear Palestinians from Gaza, he has removed the Biden-era sanctions on several of the most aggressive settler groups. So the recent news that Netanyahu will be the first foreign leader to visit the White House next week feels particularly ominous for the fate of the Palestinian people.

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

    – ref. The growing influence of Israel’s ultranationalist settler movement – https://theconversation.com/the-growing-influence-of-israels-ultranationalist-settler-movement-248568

    MIL OSI – Global Reports –

  • MIL-OSI Canada: Award-winning exhibition “Money in 10 Questions: Kids Edition” hits the road across Canada

    Source: Bank of Canada

    The Bank of Canada Museum is thrilled to announce the nationwide tour of its award-winning travelling exhibition, Money in 10 Questions: Kids Edition, kicking off at the Lloydminster Museum + Archives from January 31 to April 27, 2025.

    This engaging, play-based exhibition, designed to inspire young minds and families, recently earned an Award of Excellence from Interpretation Canada.

    In developing the exhibition, the Museum asked young Canadians a simple question: What do you want to know about money? More than 800 questions flooded in from across the country. The questions were thoughtful and complex, while some were just plain fun.  The exhibition is built around 10 of these questions, such as “Why do you have to work for money?” and “Can money be dinosaur bones?” to help kids build a strong foundation for managing their financial futures.

    Highlights of the exhibition experience include: 

    • Can you save a million dollars? Learn about the magic of compound interest.
    • Discover some surprising forms of money. Touch them; some of them are furry.
    • Meet a kid entrepreneur and find ways to make your own money.

    The Lloydminster Museum + Archives marks the first stop on a three-year journey that will bring Money in 10 Questions: Kids Edition to communities across Canada.

    For more information on the exhibition or its tour schedule, visit the Travelling Exhibitions page.

    MIL OSI Canada News –

  • MIL-OSI Asia-Pac: Boundless future awaits: CE

    Source: Hong Kong Information Services

    Chief Executive John Lee

    I am delighted to join you at this fireworks extravaganza. Last night, we welcomed the Year of the Snake with a night parade. Tonight, we cheer it on with a fabulous fireworks show.

    Hong Kong, our vibrant city, is shining brighter than ever with its unique blend of Eastern and Western cultures. As we marvel with and over the dazzling pyrotechnics lighting up the skies above Victoria Harbour, let us remember that the display is more than a cheering spectacle – more importantly, every burst of colour celebrates the diversity and soaring promise of our home.

    The snake symbolises wisdom, resilience and renewal in Chinese culture. Hong Kong has long thrived on its dynamic spirit and adaptability, endlessly mingling tradition and innovation. In the Year of the Snake, Hong Kong will revitalise its strengths and boundless future.

    I invite you all to enjoy what Hong Kong has to offer in the Year of the Snake. Alongside magnificent mega events such as this evening’s, our city never fails to delight in its thriving wine and dine scene, breath-taking natural scenery, East-meets-West arts and cultural bounty, world-class sports and non-stop entertainment.

    My thanks to HSBC (The Hongkong & Shanghai Banking Corporation) for sponsoring tonight’s fireworks display. HSBC celebrates its 160th anniversary this year. My warmest congratulations on your most meaningful anniversary!

    I wish you all a very healthy and successful Year of the Snake. Enjoy the show, as we look forward to an even brighter tomorrow.

    Chief Executive John Lee gave these remarks at the 2025 Hong Kong Chinese New Year Fireworks Display on January 30.

    MIL OSI Asia Pacific News –

  • MIL-OSI Economics: CNB to assess options for broadening investment to include other asset classes

    Source: Czech National Bank

    At its meeting on Thursday, after discussing a document on international reserve management in 2024, the Bank Board of the Czech National Bank (CNB) approved a proposal to analyse the options for investing in additional asset classes.

    The central bank has been increasingly diversifying its investments over the last two years as part of its reserve management strategy. At the proposal of Governor Aleš Michl, the CNB is to assess whether it would be appropriate in terms of diversification and return to include other asset classes in the reserves as well.

    Based on the results of the analysis, the Bank Board will then decide how to proceed further. No changes will be implemented in this area until then. Any changes in the reserve portfolios will be disclosed in the quarterly information on the CNB’s international reserves and in the CNB’s annual report.

    Jakub Holas
    Director, CNB Communications Division

    MIL OSI Economics –

  • MIL-OSI Global: How nonprofits abroad can fill gaps when the US government cuts off foreign aid

    Source: The Conversation – USA – By Susan Appe, Associate Professor of Public Administration and Policy, University at Albany, State University of New York

    The U.S. Agency for International Development distributes a lot of foreign aid through local partners in other countries. J. David Ake/Getty Images

    The U.S. government gives other nations US$68 billion of foreign assistance annually – more than any other country. Over half of this sum is managed by the U.S. Agency for International Development, including funds for programs aimed at fighting hunger and disease outbreaks, providing humanitarian relief in war zones, and supporting other lifesaving programs such as the President’s Emergency Plan for AIDS Relief.

    President Donald Trump suspended most U.S. foreign aid on Jan. 20, 2025, the day he took office for the second time. The next day, Secretary of State Marco Rubio issued a stop-work order that for 90 days halted foreign aid funding disbursements by agencies like USAID.

    A week later, dozens of senior USAID officials were put on leave after the Trump administration reportedly accused them of trying to “circumvent” the aid freeze. The Office of Management and Budget is now pausing and evaluating all foreign aid to see whether it adheres to the Trump administration’s policies and priorities.

    I’m a scholar of foreign aid who researches what happens to the U.S. government’s local partners in the countries receiving this assistance when funding flows are interrupted. Most of these partners are local nonprofits that build schools, vaccinate children, respond to emergencies and provide other key goods and services. These organizations often rely on foreign funding.

    A ‘reckless’ move

    Aid to Egypt and Israel was spared, along with some emergency food aid. The U.S. later waived the stop-work order for the distribution of lifesaving medicines.

    Nearly all of the other aid programs remained on hold as of Jan. 29, 2025.

    Many development professionals criticized the freeze, highlighting the disruption it will cause in many countries. A senior USAID official issued an anonymous statement calling it “reckless.”

    InterAction, the largest coalition of international nongovernmental organizations in the U.S., called the halt contrary to U.S. global leadership and values.

    Of the $35 billion to $40 billion in aid that USAID distributes annually, $22 billion is delivered through grants and contracts with international organizations to implement programs. These can be further subcontracted to local partners in recipient countries.

    When this aid is frozen, scaled back or cut off altogether, these local partners scramble to fill in the gaps.

    The State Department manages the rest of the $68 billion in annual U.S. foreign aid, along with other agencies, such as the Peace Corps.

    The start of Marco Rubio’s tenure as U.S. secretary of state was marked by chaos and confusion regarding foreign aid flows.
    Kevin Dietsch/Getty Images

    How local nonprofits respond and adapt

    While sudden disruptions to foreign aid are always destabilizing, research shows that aid flows have fluctuated since 1960, growing more volatile over the years. My research partners and I have found that these disruptions harm local service providers, although many of them manage to carry on their work.

    Over the years, I have conducted hundreds of interviews with international nongovernmental organizations and these nonprofits’ local partners across Latin America, Africa and Asia about their services and funding sources. I study the strategies those development and humanitarian assistance groups follow when aid gets halted. These four are the most common.

    1. Shift to national or local government funding

    In many cases, national and local governments end up supporting groups that previously relied on foreign aid, filling the void.

    An educational program spearheaded by a local Ecuadorian nonprofit, Desarrollo y Autogestión, called Accelerated Basic Cycle is one example. This program targets young people who have been out of school for more than three years. It allows them to finish elementary school – known as the “basic cycle” in Ecuador – in one year to then enter high school. First supported in part by funding from foreign governments, it transitioned to being fully funded by Ecuador’s government and then became an official government program run by the country’s ministry of education.

    2. Earn income

    Local nonprofits can also earn income by charging fees for their services or selling goods, which allows them to fulfill their missions while generating some much-needed cash.

    For example, SEND Ghana is a development organization that has promoted good governance and equality in Ghana since its founding in 1998. In 2009, SEND Ghana created a for-profit subsidiary called SENDFiNGO that administers microfinance programs and credit unions. That subsidiary now helps fund SEND Ghana’s work.

    Bangladesh Rural Advancement Committee and the Grameen Bank, which is also in Bangladesh, use this approach too.

    3. Tap local philanthropy

    Networks such as Worldwide Initiatives for Grantmaker Support and Global Fund for Community Foundations have emerged to promote local philanthropy around the world. They press governments to adopt policies that encourage local philanthropy. This kind of giving has become easier to do thanks to the emergence of crowdfunding platforms.

    Still, complex tax systems and the lack of incentives for giving in many countries that receive foreign aid are persistent challenges. Some governments have stepped in. India’s corporate social responsibility law, enacted in 2014, boosted charitable incentives. For example, it requires 2% of corporate profits to go to social initiatives in India.

    4. Obtain support from diaspora communities

    Diasporas are people who live outside of their countries of origin, or where their families came from, but maintain strong ties to places they consider to be their homeland.

    Local nonprofits around the globe are leveraging diaspora communities’ desire to contribute to economic development in their countries of origin. In Colombia, for example, Fundación Carla Cristina, a nongovernmental organization, runs nursery schools and provides meals to low-income children.

    It gets some of its funding from diaspora-led nonprofits in the U.S., such as the New England Association for Colombian Children, which is based outside of Boston, and Give To Colombia in Miami.

    A push for the locals to do more

    Trump’s stop-work order coincided with a resurgence of a localization push that’s currently influencing foreign aid from many countries.

    With localization, nations providing foreign aid seek to increase the role of local authorities and organizations in development and humanitarian assistance. USAID has been a leading proponent of localization.

    I believe that the abruptness of the stop-work order is likely to disrupt many development projects. These projects include support to Ukrainian aid groups that provide emergency humanitarian assistance and projects serving meals to children who don’t get enough to eat.

    To be sure, sometimes there are good reasons for aid to be halted. But when that happens, sound and responsible donor exit strategies are essential to avoid the loss of important local services.

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

    – ref. How nonprofits abroad can fill gaps when the US government cuts off foreign aid – https://theconversation.com/how-nonprofits-abroad-can-fill-gaps-when-the-us-government-cuts-off-foreign-aid-248378

    MIL OSI – Global Reports –

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

    Source: GlobeNewswire (MIL-OSI)

    WINNEBAGO, Ill., Jan. 30, 2025 (GLOBE NEWSWIRE) — Foresight Financial Group, Inc. (OTCQX:FGFH) reported net income $12.66 million for the year ended December 31, 2024, a $1.89 million decrease compared to the $14.55 million reported for 2023. Diluted Earnings per Share (EPS) decreased 12% to $3.59 compared to $4.08 the prior year. The results for 2024 produced a Return on Average Equity of 8.66% and Return on Average Assets (ROAA) of 0.79%. The net income in comparison to the prior year was largely the result of an increase in operating expenses.

    Net income for the fourth quarter of 2024 equaled $2.49 million, a $4.24 million decrease from the $6.73 million reported in the fourth quarter of 2023. The decrease was primarily due to a $4.04 million increase in the provision for loans losses, reflecting a $3.37 million negative provision in the fourth quarter of 2023. Diluted earnings per share for the fourth quarter of 2024 was $0.69 compared to $1.83 for the fourth quarter of 2023.

    Net interest income for the full year 2024 decreased by $283 thousand to $48.99 million as compared to $49.27 million the year before. The net interest margin on a fully taxable equivalent basis decreased nine basis points to 3.25% compared to 3.34% in 2023. The inverted yield curve, which persisted throughout 2024, continued to drive up deposit costs, with limited opportunities to increase yields on earning assets, which are typically priced off of longer-term points of the yield curve.

    The provision for loan losses for 2024 of $1.05 million was $54 thousand less than the prior year provision of $1.10 million. Foresight’s asset quality remains strong. Non-performing assets of the Company as of December 31, 2024, was $28.41 million compared to $24.33 million the previous quarter and $16.05 million at the end of 2023.

    Noninterest income for the full year 2024 was $7.25 million, a $393 thousand decrease from $7.64 million the year before. The decrease from 2023 was primarily the result of a $438 thousand negative fair value adjustment to the Company’s Originated Mortgage Servicing Rights, which are carried at fair value.

    Operating expenses for 2024 totaled $38.96 million, a $2.27 million, or 6.2%, increase over $36.69 million in 2023. The increase in operating expenses was largely driven by an increase in salary and employee benefits related to the addition of the Rockford based banking team as announced earlier in 2024, additional staffing to support our expanded treasury management services initiative, data processing fees related to our digital platform conversion, as well as legal and consulting fees related to our charter consolidation project which is expected to be fully implemented by Q4 2025.

    Foresight’s balance sheet experienced modest growth during 2024. Total loans grew by $31.57 million, or 3%, to $1.12 billion at December 31, 2024 compared to $1.08 billion at the end of the previous year. Total deposits increased by $43.15 million, or 3.2%, to $1.40 billion at the end of 2024 compared to $1.36 billion at the end of 2023.

    Foresight CEO Peter Q. Morrison stated “2024 was a year of exciting changes for the organization including the addition of the Rockford banking team as well as the announcement of the charter consolidation initiative. We anticipate the legal consolidation to occur in the second quarter of 2025 followed by the conversions to a single data processing platform to be layered in between August and October of 2025. When fully implemented, the consolidation will provide significant savings via the reduction of duplicative operational expenses and well as efficiencies gained by operating under one functional banking platform rather than six, all of which are expected to be accretive to shareholder return.”

    The closing price for the Company’s stock was $32.92, as of close of business January 27, 2025. Book value per share of the Company’s common stock increased by $2.51 to $42.59 as of December 31, 2024 compared to $40.08 as of December 31, 2023. The book value per share of common stock, excluding Accumulated Other Comprehensive Income was $51.83 at December 31, 2024 compared to $49.38 at the end of 2023.

    About Foresight Financial

    Foresight Financial is a multi-bank holding company located in Northern Illinois, its subsidiary community banks include Northwest Bank of Rockford, State Bank in Freeport, State Bank of Davis, Foresight Bank in Pecatonica (fka German American State Bank), Lena State Bank, and the State Bank of Herscher. Foresight’s common stock is listed on the “OTCQX” market under the trading symbol FGFH.

    Forward-Looking Statements

    When used in this communication, the words “believes,” “expects,” “likely”, “would”, and similar expressions are intended to identify forward-looking statements. The Company’s actual results may differ materially from those described in the forward-looking statements. Factors which could cause such a variance to occur include, but are not limited to: heightened competition; adverse state and federal regulation; failure to obtain new or retain existing customers; ability to attract and retain key executives and personnel; changes in interest rates; unanticipated changes in industry trends; unanticipated changes in credit quality and risk factors, including general economic conditions particularly in the Company’s markets; potential deterioration in real estate values, success in gaining regulatory approvals when required; changes in the Federal Reserve Board monetary policies; unexpected outcomes of new and existing litigation in which the Company, or its subsidiaries, officers, directors or employees is named defendants; technological changes; changes in accounting principles generally accepted in the United States; changes in assumptions or conditions affecting the application of “critical accounting policies”; inability to recover previously recorded losses as anticipated, and the inability of third party vendors to perform critical services for the Company or its customers. The inclusion of forward-looking information should not be construed as a representation by the Company or any person that future events or plans contemplated by the Company will be achieved. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information or otherwise.

    FOR INFORMATION CONTACT:                      
         
    Peter Morrison
    President & CEO
    (815) 847-7500    		   Todd James
    Chief Financial Officer
    (815) 847-7500
         

    The MIL Network –

  • MIL-OSI: The Board of Directors of Oma Savings Bank Plc has reorganised

    Source: GlobeNewswire (MIL-OSI)

    OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE 30 JANUARY 2025 AT 16.30 P.M. EET, OTHER INFORMATION DISCLOSED TO THE RULES OF THE EXCHANGE

    The Board of Directors of Oma Savings Bank Plc has reorganised
        
    On 30 January 2025, the Board of Directors of Oma Savings Bank Plc (OmaSp or the Company) has reorganised in terms of the Vice Chairperson and the Committees.

    The Board of Directors has elected Carl Pettersson as Vice Chairman of the Board.

    In addition to the Audit and Remuneration Committees, the Board of Directors decided to establish a Risk Committee. In appointing the members of the Committees, the Board has taken into account the expertise and experience required for the duties. The Board of Directors has elected the following members from among its members to the Committees:

    Remuneration Committee
    Jaakko Ossa, Chairman
    Carl Pettersson
    Juhana Brotherus
    Aki Jaskari

    Risk Committee
    Irma Gillberg-Hjelt, Chairman
    Aki Jaskari
    Juha Volotinen

    Audit Committee
    Carl Pettersson, Chairman
    Kati Riikonen
    Jaana Sandström

    Oma Savings Bank Plc

    Additional information:
    Minna Sillanpää, CCO, tel. +358 50 66592, minna.sillanpaa@omasp.fi

    DISTRIBUTION
    Nasdaq Helsinki Ltd
    Major media
    www.omasp.fi

    OmaSp is a solvent and profitable Finnish bank. About 500 professionals provide nationwide services through OmaSp’s 48 branch offices and digital service channels to over 200,000 private and corporate customers. OmaSp focuses primarily on retail banking operations and provides its clients with a broad range of banking services both through its own balance sheet as well as by acting as an intermediary for its partners’ products. The intermediated products include credit, investment and loan insurance products. OmaSp is also engaged in mortgage banking operations.

    OmaSp core idea is to provide personal service and to be local and close to its customers, both in digital and traditional channels. OmaSp strives to offer premium level customer experience through personal service and easy accessibility. In addition, the development of the operations and services is customer-oriented. The personnel is committed and OmaSp seeks to support their career development with versatile tasks and continuous development. A substantial part of the personnel also own shares in OmaSp.

    The MIL Network –

  • MIL-OSI: Lake Shore Bancorp, Inc. Announces Adoption of Plan of Conversion and Reorganization to Undertake Second Step Conversion

    Source: GlobeNewswire (MIL-OSI)

    DUNKIRK, N.Y., Jan. 30, 2025 (GLOBE NEWSWIRE) — Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ: LSBK), the holding company for Lake Shore Savings Bank (the “Bank”), announced today that the Board of Directors of its parent mutual holding company, Lake Shore, MHC, has adopted a Plan of Conversion and Reorganization pursuant to which Lake Shore, MHC will undertake a “second step” conversion from the mutual holding company structure to the stock holding company structure. In connection with the second step conversion, the Bank intends to seek regulatory approval to convert its charter to a New York-chartered commercial bank.

    Lake Shore, MHC currently owns approximately 63.4% of the outstanding shares of common stock of the Company which it acquired in connection with the reorganization of the Bank into the mutual holding company structure and the related initial public offering by the Company in 2006.

    As a result of the proposed transaction, a new stock holding company for the Bank (the “New Bank Holding Company”), which will succeed the Company, and will offer for sale shares of its common stock, representing Lake Shore, MHC’s ownership interest in the Company, to depositors of the Bank in a subscription offering and, if necessary, a community offering and/or a syndicated community offering. Eligible account holders of the Bank as of the close of business on December 31, 2023 have first priority non-transferable subscription rights to subscribe for shares of common stock of the New Bank Holding Company. The total number of shares of common stock of the New Bank Holding Company to be issued in the proposed stock offering will be based on the aggregate pro forma market value of the common stock of the New Bank Holding Company, as determined by an independent appraisal. In addition, each share of common stock of the Company owned by persons other than Lake Shore, MHC (the “minority shareholders”) will be converted into and become the right to receive a number of shares of common stock of the New Bank Holding Company pursuant to an exchange ratio established at the completion of the proposed transaction. The exchange ratio is designed to preserve in the New Bank Holding Company the same aggregate percentage ownership interest that the minority shareholders will have in the Company immediately before the completion of the proposed transaction, exclusive of the purchase of any additional shares of common stock of the New Bank Holding Company by minority shareholders in the stock offering and the effect of cash received in lieu of issuance of fractional shares of common stock of the New Bank Holding Company, and adjusted to reflect certain assets held by Lake Shore, MHC.

    The proposed transaction is expected to be completed in the third quarter of 2025, subject to regulatory approval, approval by the members of Lake Shore, MHC (i.e., depositors of the Bank), and approval by the shareholders of the Company, including by a separate vote of approval by the Company’s minority shareholders. Detailed information regarding the proposed transaction, including the stock offering, will be sent to shareholders of the Company and members of Lake Shore, MHC following regulatory approval.

    About Lake Shore

    Lake Shore Bancorp, Inc. (NASDAQ Global Market: LSBK) is the mid-tier holding company of Lake Shore Savings Bank, a federally chartered, community-oriented financial institution headquartered in Dunkirk, New York. The Bank has ten full-service branch locations in Western New York, including four in Chautauqua County and six in Erie County. The Bank offers a broad range of retail and commercial lending and deposit services. The Company’s common stock is traded on the NASDAQ Global Market as “LSBK”. Additional information about the Company is available at www.lakeshoresavings.com.

    Safe-Harbor

    This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on current expectations, estimates and projections about the Company’s and the Bank’s industry, and management’s beliefs and assumptions. Words such as anticipates, expects, intends, plans, believes, estimates and variations of such words and expressions are intended to identify forward-looking statements. Such statements reflect management’s current views of future events and operations. These forward-looking statements are based on information currently available to the Company as of the date of this release. It is important to note that these forward-looking statements are not guarantees of future performance and involve and are subject to significant risks, contingencies, and uncertainties, many of which are difficult to predict and are generally beyond our control including, but not limited to, that the proposed transaction may not be timely completed, if at all, that required regulatory, shareholder and member approvals are not timely received, if at all, or that other customary closing conditions are not satisfied in a timely manner, if at all, compliance with the Written Agreement with the Federal Reserve Bank of Philadelphia, data loss or other security breaches, including a breach of our operational or security systems, policies or procedures, including cyber-attacks on us or on our third party vendors or service providers, economic conditions, the effect of changes in monetary and fiscal policy, inflation, unanticipated changes in our liquidity position, climate change, geopolitical conflicts, public health issues, increased unemployment, deterioration in the credit quality of the loan portfolio and/or the value of the collateral securing repayment of loans, reduction in the value of investment securities, the cost and ability to attract and retain key employees, regulatory or legal developments, tax policy changes, dividend policy changes and our ability to implement and execute our business plan and strategy and expand our operations. These factors should be considered in evaluating forward looking statements and undue reliance should not be placed on such statements, as our financial performance could differ materially due to various risks or uncertainties. We do not undertake to publicly update or revise our forward-looking statements if future changes make it clear that any projected results expressed or implied therein will not be realized.

    Important Additional Information and Where to Find It

    Lake Shore Bancorp, Inc. will file with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-1 that will include a proxy statement of the Company and a prospectus of Lake Shore Bancorp, Inc., as well as other relevant documents concerning the proposed transaction. SHAREHOLDERS OF THE COMPANY ARE URGED TO READ THE REGISTRATION STATEMENT, THE PROXY STATEMENT, AND THE PROSPECTUS CAREFULLY WHEN THESE DOCUMENTS BECOME AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. When filed, these documents and other documents relating to the proposed transaction can be obtained free of charge from the SEC’s website at www.sec.gov. Alternatively, these documents, when available, can be obtained free-of-charge from the Company upon written request to Lake Shore Bancorp, Inc., 31 East Fourth Street, Dunkirk, New York 14048, Attention: Taylor M. Gilden, or by calling (716) 366-4070 ext. 1065.

    Participants in the Solicitation

    The Company and its directors and its executive officers may be deemed to be participants in the solicitation of proxies with respect of the proposed transaction. Information regarding the Company’s directors and executive officers is available in its definitive proxy statement for its 2024 Annual Meeting of Shareholders, filed with the SEC on April 11, 2024. Other information regarding the participants in the proxy solicitation will be contained in the proxy statement, the prospectus, and other relevant materials filed with the SEC, as described above.

    This press release is neither an offer to sell nor a solicitation of an offer to buy common stock. The offer is made only by the prospectus when accompanied by a stock order form. The shares of common stock to be offered for sale by Lake Shore Bancorp, Inc. are not savings accounts or savings deposits and are not insured by the Federal Deposit Insurance Corporation or by any other government agency.

    Source: Lake Shore Bancorp, Inc.
    Category: Financial

    Investor Relations/Media Contact
    Taylor M. Gilden
    Chief Financial Officer and Treasurer
    Lake Shore Bancorp, Inc.
    31 East Fourth Street
    Dunkirk, New York 14048
    (716) 366-4070 ext. 1065

    The MIL Network –

  • MIL-OSI: Truxton Corporation Reports Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    NASHVILLE, Tenn., Jan. 30, 2025 (GLOBE NEWSWIRE) — Truxton Corporation, the parent company for Truxton Trust Company (“Truxton” or “the Bank”) and subsidiaries, announced its operating results for the quarter ended December 31, 2024. Fourth quarter net income attributable to common shareholders was $4.99 million, or $1.74 per diluted share, compared to $4.23 million, or $1.46 per diluted share, for the same quarter in 2023.

    For the year ended December 31, 2024, net income increased by 5% to $18.4 million from $17.5 million in 2023. For the year ended December 31, 2024, earnings per diluted share rose to $6.34 from $6.02, an increase of 5% from 2023.

    “Truxton grew earnings again in 2024, despite the headwinds of mostly one-time expenses related to our technology and physical office upgrades,” said Truxton Chairman Tom Stumb. “Net Interest Income grew 7% and Wealth revenue increased 17% year-over-year, and we believe we are positioned well for 2025. Truxton continues to succeed as we drive successful outcomes for our clients through our dedication to service and sophisticated, sage advice.”

    Key Highlights

    • Non-interest income was $5.7 million in the fourth quarter of 2024, which was $173 thousand higher than the third quarter of 2024 and $1.4 million over the fourth quarter of 2023. Excluding gains and losses on the sale of securities, Wealth revenue constituted 90% of non-interest income in the fourth quarter of 2024, compared to 95% for the third quarter of 2024 and to 94% for fourth quarter of 2023. Other non-interest income was elevated due to a large non-recurring payment from an SBIC fund in which we are invested.
    • Non-interest expense was $230 thousand lower in the fourth quarter of 2024 compared to the third, driven largely by the timing of certain expense accruals and a refund of some costs related to our bank technology upgrade recognized in the third quarter.
    • Loans increased 1% to $670 million at quarter end compared to $665 million at September 30, 2024, and were up 2% compared to $658 million at December 31, 2023.
    • Total deposits decreased by 3% from $889 million at September 30, 2024, to $866 million at December 31, 2024, and were 11% higher in comparison to $782 million at December 31, 2023. Truxton continues to fund its growth from a single banking location led by its commitment to provide what it believes is superior deposit operations service and technology.
    • Asset quality remains sound at Truxton. The Bank had $11 thousand of non-performing assets at December 31, 2024. Truxton had $4 thousand in charge-offs in the fourth quarter of 2024, $9 thousand in the trailing quarter, and $8 thousand of recoveries in the fourth quarter of 2023.
    • Net interest margin for the fourth quarter of 2024 was 2.79%, an increase of 10 basis points from the 2.69% experienced in the quarter ended September 30, 2024, and an increase of 1 basis point from the 2.78% recorded in the quarter ended December 31, 2023. Cost of funds was 3.08% in the fourth quarter of 2024, down from 3.48% in the third quarter of 2024, and 3.15% in the fourth quarter of 2023.
    • Allowance for credit losses, excluding that for unfunded commitments, was $6.4 million at quarter end December 31, 2024, compared to $6.4 million at September 30, 2024, and $6.3 million at December 31, 2023. For those three periods, such allowance amounts were each 0.96% of gross loans outstanding at each period end. For the same three periods, the Bank’s allowance for unfunded commitments was $483 thousand, $409 thousand, and $412 thousand, respectively.
    • The Bank’s capital position remains strong. Its Tier 1 leverage ratio was 10.63% at December 31, 2024, compared to 10.46% at September 30, 2024, and 10.53% at December 31, 2023. Book value per common share was $34.42, $33.30, and $30.31 at December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
    • During the twelve months ended December 31, 2024, Truxton Corporation paid dividends of $2.72 per common share, inclusive of a $1.00 special cash dividend, and repurchased 62,382 shares of its common stock for $4.2 million in the aggregate, or an average price of $66.97 per share.

    About Truxton
    Truxton is a premier provider of wealth, banking, and family office services for wealthy individuals, their families, and their business interests. Serving clients across the world, Truxton’s vastly experienced team of professionals provides customized solutions to its clients’ complex financial needs. Founded in 2004 in Nashville, Tennessee, Truxton upholds its original guiding principle: do the right thing. Truxton Trust Company is a subsidiary of financial holding company, Truxton Corporation (OTCPK: TRUX). For more information, visit truxtontrust.com.

    Investor Relations   Media Relations
    Austin Branstetter   Swan Burrus
    615-250-0783   615-250-0773
    austin.branstetter@truxtontrust.com   swan.burrus@truxtontrust.com
    Truxton Corporation
    Consolidated Balance Sheets
    (000’s)
    (Unaudited)
           
      December 31,
    2024*    		 September 30,
    2024*    		 December 31,
    2023*
    ASSETS      
    Cash and due from financial institutions $ 4,225   $ 5,499   $ 4,272  
    Interest bearing deposits in other financial institutions   25,698     24,678     3,417  
    Federal funds sold   4,054     4,816     1,537  
    Cash and cash equivalents   33,977     34,993     9,226  
           
    Time deposits in other financial institutions   245     245     490  
    Securities available for sale   258,322     295,905     259,926  
           
    Gross loans, excluding Paycheck Protection Program   669,962     664,630     657,811  
    Allowance for credit losses   (6,433 )   (6,358 )   (6,304 )
    Paycheck Protection Program Loans   20     27     29  
    Net loans   663,549     658,299     651,536  
           
    Bank owned life insurance   16,722     16,602     10,808  
    Restricted equity securities   2,272     2,261     1,858  
    Premises and equipment, net   3,293     3,328     189  
    Accrued interest receivable   4,567     4,954     4,388  
    Deferred tax asset, net   5,257     4,649     6,010  
    Other assets   15,577     14,017     10,839  
           
    Total assets $ 1,003,781   $ 1,035,253   $ 955,270  
           
           
    LIABILITIES AND SHAREHOLDERS’ EQUITY      
    Deposits      
    Non-interest bearing $ 126,016   $ 116,149   $ 123,918  
    Interest bearing $ 740,406   $ 772,612   $ 658,061  
    Total deposits   866,422     888,761     781,979  
           
    Federal funds purchased   –     –     –  
    Swap counterparty cash collateral   4,230     1,890     4,060  
    Federal Home Loan Bank advances   8,250     13,250     4,500  
    Federal Reserve Bank Term Funding Program advances   –     10,000     53,800  
    Subordinated debt   14,426     14,401     14,327  
    Other liabilities   11,747     11,405     8,922  
    Total liabilities   905,075     939,707     867,588  
           
    SHAREHOLDERS’ EQUITY      
    Common stock, $0.10 par value $ 286   $ 285   $ 289  
    Additional paid-in capital   28,945     28,729     31,457  
    Retained earnings   61,316     62,548     51,679  
    Accumulated other comprehensive income (loss)   (10,252 )   (9,434 )   (13,279 )
    Net Income $ 18,411   $ 13,418   $ 17,536  
    Total shareholders’ equity   98,706     95,546     87,682  
           
    Total liabilities and shareholders’ equity $ 1,003,781   $ 1,035,253   $ 955,270  
           
           
    *The information is preliminary, unaudited and based on company data available at the time of presentation.
           
    Truxton Corporation
    Consolidated Statements of Net Income
    (000’s)
    (Unaudited)
                       
      Three Months Ended   Year To Date
      December 31,
    2024*    		   September 30,
    2024*    		   December 31,
    2023*    		   December 31,
    2024*    		   December 31,
    2023*
    Non-interest income                  
    Wealth management services $ 5,242     $ 5,267   $ 4,435     $ 20,597     $ 17,657  
    Service charges on deposit accounts   85       92     111       360       461  
    Securities gains (losses), net   (122 )     0     (445 )     (335 )     (386 )
    Bank owned life insurance income   124       90     56       333       216  
    Other   391       98     115       1,164       524  
    Total non-interest income   5,720         5,547     4,272         22,119         18,472  
                       
    Interest income                  
    Loans, including fees $ 10,354     $ 10,654   $ 10,495     $ 41,721     $ 37,804  
    Taxable securities   3,039       3,361     2,554       11,932       9,350  
    Tax-exempt securities   217       222     210       834       876  
    Interest bearing deposits   348       488     198       1,475       695  
    Federal funds sold   75       113     41       288       101  
    Total interest income   14,033         14,838     13,498         56,250         48,826  
                       
    Interest expense                  
    Deposits   6,798       7,667     6,048       27,854       20,881  
    Short-term borrowings   90       260     685       1,294       2,154  
    Long-term borrowings   85       51     23       164       490  
    Subordinated debentures   188       188     187       752       771  
    Total interest expense   7,161         8,166     6,943         30,064         24,296  
                       
    Net interest income   6,872         6,672     6,555         26,186         24,530  
                       
    Provision for credit losses   145       105     215       217       296  
                       
    Net interest income after provision for loan losses   6,727         6,567     6,340         25,969         24,234  
                       
    Total revenue, net   12,447         12,114     10,612         48,088         42,706  
                       
    Non interest expense                  
    Salaries and employee benefits   4,635       4,044     3,563       16,652       14,810  
    Occupancy   326       315     272       1,578       1,185  
    Furniture and equipment   107       115     24       300       76  
    Data processing   282       625     389       1,763       1,703  
    Wealth management processing fees   195       221     166       838       729  
    Advertising and public relations   96       27     109       206       248  
    Professional services   247       609     285       1,337       941  
    FDIC insurance assessments   33       80     225       423       460  
    Other   291       406     322       2,024       901  
    Total non interest expense   6,212         6,442     5,355         25,121         21,053  
                       
    Income before income taxes   6,235         5,672     5,257         22,967         21,653  
                       
    Income tax expense   1,242       1,102     1,028       4,556       4,117  
                       
    Net income $ 4,993       $ 4,570     $ 4,229       $ 18,411       $ 17,536  
                       
    Earnings per share:                  
    Basic $ 1.74     $ 1.58   $ 1.46     $ 6.35     $ 6.04  
    Diluted $ 1.74     $ 1.57   $ 1.46     $ 6.34     $ 6.02  
             
    *The information is preliminary, unaudited and based on company data available at the time of presentation. Totals may not foot due to rounding.        
             
    Truxton Corporation  
    Selected Quarterly Financial data  
    At Or For The Three Months Ended  
    (000’s)  
    (Unaudited)  
             
      December 31,
    2024*    		 September 30,
    2024*    		 December 31,
    2023*    		  
             
    Per Common Share Data        
    Net income attributable to common shareholders, per share        
    Basic $1.74   $1.58   $1.46    
    Diluted $1.74   $1.57   $1.46    
    Book value per common share $34.42   $33.30   $30.31    
    Tangible book value per common share $34.42   $33.30   $30.31    
    Basic weighted average common shares 2,787,805   2,819,035   2,821,846    
    Diluted weighted average common shares 2,792,363   2,823,728   2,828,274    
    Common shares outstanding at period end 2,867,850   2,869,015   2,893,064    
             
             
    Selected Balance Sheet Data        
    Tangible common equity (TCE) ratio 9.83%   9.23%   9.18%    
    Average Loans $667,957   $652,624   $653,804    
    Average earning assets (1) $998,861   $1,006,370   $956,793    
    Average total assets $1,025,415   $1,029,802   $960,852    
    Average shareholders’ equity $97,026   $94,225   $81,759    
             
             
    Selected Asset Quality Measures        
    Nonaccrual loans $0   $0   $0    
    90+ days past due still accruing $11   $11   $0    
    Total nonperforming loans $11   $11   $0    
    Total nonperforming assets $11   $11   $0    
    Net charge offs (recoveries) $4   $9   ($8)    
    Nonperforming loans to assets 0.00%   0.00%   0.00%    
    Nonperforming assets to total assets 0.00%   0.00%   0.00%    
    Nonperforming assets to total loans and other real estate 0.00%   0.00%   0.00%    
    Allowance for credit losses to total loans 0.96%   0.96%   0.96%    
    Net charge offs to average loans 0.00%   0.00%   0.00%    
             
             
    Capital Ratios (Bank Subsidiary Only)        
    Tier 1 leverage 10.63%   10.46%   10.53%    
    Common equity tier 1 15.19%   15.17%   14.58%    
    Total risk-based capital 16.15%   16.11%   15.53%    
             
    Selected Performance Ratios        
    Efficiency ratio 48.45%   52.72%   47.07%    
    Return on average assets (ROA) 1.94%   1.77%   1.75%    
    Return on average shareholders’ equity (ROE) 20.47%   19.29%   20.52%    
    Return on average tangible common equity (ROTCE) 20.47%   19.29%   20.52%    
    Net interest margin 2.79%   2.69%   2.78%    
             
    *The information is preliminary, unaudited and based on company data available at the time of presentation.  
    (1) Average earning assets is the daily average of earning assets. Earning assets consists of loans, mortgage loans held for sale, federal funds sold, deposits with banks, and investment securities.  
             
    Truxton Corporation  
    Yield Tables  
    For The Periods Indicated  
    (000’s)  
    (Unaudited)  
                                   
    The following table sets forth the amount of our average balances, interest income or interest expense for each category of interest earning assets and interest bearing liabilities and the average interest rate for interest earning assets and interest bearing liabilities, net interest spread and net interest margin for the periods indicated below:  
     
     
      Three Months Ended   Three Months Ended   Three Months Ended  
      December 31, 2024*   September 30, 2024*   December 31, 2023*  
                                   
      Average
    Balances    		 Rates/
    Yields (%)    		   Interest
    Income/
    Expense    		   Average
    Balances    		 Rates/
    Yields (%)    		   Interest
    Income/
    Expense    		   Average
    Balances    		 Rates/
    Yields (%)    		   Interest
    Income/
    Expense    		  
                                   
    Earning Assets                              
    Loans $667,957   6.08   $10,215   $652,624   6.41   $10,520   $653,804   6.18   $10,183  
    Loan fees $0   0.09   $146   $0   0.08   $134   $0   0.19   $312  
    Loans with fees   667,957   6.17   $10,361     652,624   6.49   $10,654   $653,804   6.37   $10,495  
    Mortgage loans held for sale $0   0.00   $0   $0   0.00   $0   $0   0.00   $0  
    Federal funds sold $6,232   4.71   $75   $8,367   5.28   $113   $2,985   5.41   $41  
    Deposits with banks $28,570   4.85   $348   $35,784   5.43   $488   $14,240   5.51   $198  
    Investment securities – taxable $260,605   4.66   $3,039   $273,488   4.92   $3,361   $248,778   4.11   $2,554  
    Investment securities – tax-exempt $35,497   3.65   $217   $36,107   3.67   $222   $36,986   3.39   $210  
    Total Earning Assets $998,861   5.64   $14,040   $1,006,370   5.92   $14,838   $956,793   5.65   $13,498  
    Non interest earning assets                              
    Allowance for loan losses   (6,359)             (6,224)             (6,123)          
    Cash and due from banks $5,985           $6,529           $5,402          
    Premises and equipment $3,305           $3,370           $119          
    Accrued interest receivable $3,721           $3,746           $3,575          
    Other real estate $0           $0           $0          
    Other assets $36,453           $34,150           $30,404          
    Unrealized gain (loss) on inv. securities   (16,551)             (18,139)             (29,318)          
    Total Assets $1,025,415           $1,029,802           $960,852          
    Interest bearing liabilities                              
    Interest bearing demand $329,625   3.26   $2,703   $333,177   3.60   $3,018   $345,966   3.42   $2,984  
    Savings and money market $200,257   2.83   $1,427   $195,751   3.60   $1,773   $138,244   2.95   $1,027  
    Time deposits – retail $13,170   3.39   $112   $13,505   3.40   $115   $16,343   3.18   $131  
    Time deposits – wholesale $228,144   4.46   $2,556   $226,673   4.85   $2,761   $165,756   4.56   $1,906  
    Total interest bearing deposits $771,196   3.51   $6,798   $769,106   3.97   $7,667   $666,309   3.6   $6,048  
    Federal Home Loan Bank advances $9,554   3.48   $85   $5,728   3.50   $51   $4,500   1.98   $23  
    Subordinated debt $14,520   5.08   $188   $14,656   4.53   $188   $14,422   5.08   $187  
    Other borrowings $12,369   4.04   $90   $24,011   4.22   $259   $60,859   4.39   $685  
    Total borrowed funds $36,443   3.90   $363   $44,395   4.40   $499   $79,781   4.39   $895  
    Total interest bearing liabilities $807,639   3.52   $7,161   $813,501   3.99   $8,166   $746,090   3.69   $6,943  
    Net interest rate spread   2.12   $6,879     1.93   $6,672     1.96   $6,555  
    Non-interest bearing deposits $115,593           $118,216           $126,534          
    Other liabilities $5,157           $3,860           $6,469          
    Shareholder’s equity $97,026           $94,225           $81,759          
    Total Liabilities and Shareholder’s Equity $1,025,415           $1,029,802           $960,852          
    Cost of funds   3.08         3.48         3.15      
    Net interest margin   2.79         2.69         2.78      
                                   
               
    *The information is preliminary, unaudited and based on company data available at the time of presentation. Totals may not foot due to rounding.          
                                   
    Yield Table Assumptions – Average loan balances are inclusive of nonperforming loans. Yields computed on tax-exempt instruments are on a tax equivalent basis. Net interest spread is calculated as the yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. Net interest margin is the result of net interest income calculated on a tax-equivalent basis divided by average interest earning assets for the period. Changes in net interest income are attributed to either changes in average balances (volume change) or changes in average rates (rate change) for earning assets and sources of funds on which interest is received or paid. Volume change is calculated as change in volume times the previous rate while rate change is change in rate times the previous volume. Changes not due solely to volume or rate changes are allocated to volume change and rate change in proportion to the relationship of the absolute dollar amounts of the change in each category.
    Truxton Corporation  
    Yield Tables  
    For The Periods Indicated  
    (000’s)  
    (Unaudited)  
    The following table sets forth the amount of our average balances, interest income or interest expense for each category of interest earning assets and interest bearing liabilities and the average interest rate for interest earning assets and interest bearing liabilities, net interest spread and net interest margin for the periods indicated below:  
     
     
      Twelve Months Ended     Twelve Months Ended    
      December 31, 2024*     December 31, 2023*    
      Average
    Balances    		 Rates/
    Yields (%)    		   Interest
    Income/
    Expense    		     Average
    Balances    		 Rates/
    Yields (%)    		   Interest
    Income/
    Expense    		    
                             
    Earning Assets                        
    Loans $658,226   6.28   $41,328     $635,059   5.85   $37,150    
    Loan fees $0   0.08   $504     $0   0.10   $654    
    Loans with fees $658,226   6.36   $41,832     $635,059   5.95   $37,804    
    Mortgage loans held for sale $0   0.00   $0     $0   0.00   $0    
    Federal funds sold $5,592   5.08   $289     $1,907   5.21   $101    
    Deposits with banks $27,967   5.27   $1,475     $13,711   5.07   $695    
    Investment securities – taxable $259,313   4.6   $11,931     $247,483   3.78   $9,350    
    Investment securities – tax-exempt $34,867   3.57   $834     $38,410   3.40   $876    
    Total Earning Assets $985,965   5.76   $56,361     $936,570   5.26   $48,826    
    Non interest earning assets                        
    Allowance for loan losses   (6,299)               (6,087)            
    Cash and due from banks $6,161               5,960            
    Premises and equipment $2,662             $154            
    Accrued interest receivable $3,730             $3,271            
    Other real estate $0             $0            
    Other assets $33,513             $29,175            
    Unrealized gain (loss) on inv. securities   (19,553)               (26,891)            
    Total Assets $1,006,179             $942,152            
    Interest bearing liabilities                        
    Interest bearing demand $333,322   3.5   $11,681     $351,956   3.20   $11,247    
    Savings and Money Market $183,557   3.33   $6,121     $134,518   2.50   $3,368    
    Time deposits – Retail $14,275   3.41   $486     $17,168   2.53   $435    
    Time Deposits – Wholesale $207,457   4.61   $9,566     $143,922   4.05   $5,832    
    Total interest bearing deposits $738,611   3.77   $27,854     $647,564   3.22   $20,882    
    Federal home Loan Bank advances $5,476   2.95   $164     $12,355   3.91   $490    
    Subordinated debt $14,565   5.08   $752     $14,831   5.12   $771    
    Other borrowings $31,032   4.41   $1,294     $47,985   4.42   $2,153    
    Total borrowed funds $51,073   4.26   $2,210     $75,171   4.48   $3,414    
    Total interest bearing liabilities $789,685   3.80   $30,064     $722,735   3.36   $24,296    
    Net interest rate spread   1.95   $26,297       1.90   $24,530    
    Non-interest bearing deposits $119,150             $135,909            
    Other liabilities $4,424             $4,810            
    Shareholder’s equity $92,920             $78,619            
    Total Liabilities and Shareholder’s Equity $1,006,179             $942,073            
    Cost of funds   3.30           2.82        
    Net interest margin   2.71           2.67        
                             
    *The information is preliminary, unaudited and based on company data available at the time of presentation.          
     
    Yield Table Assumptions – Average loan balances are inclusive of nonperforming loans. Yields computed on tax-exempt instruments are on a tax equivalent basis. Net interest spread is calculated as the yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. Net interest margin is the result of net interest income calculated on a tax-equivalent basis divided by average interest earning assets for the period. Changes in net interest income are attributed to either changes in average balances (volume change) or changes in average rates (rate change) for earning assets and sources of funds on which interest is received or paid. Volume change is calculated as change in volume times the previous rate while rate change is change in rate times the previous volume. Changes not due solely to volume or rate changes are allocated to volume change and rate change in proportion to the relationship of the absolute dollar amounts of the change in each category.
     

    The MIL Network –

  • MIL-OSI: Neighbors Federal Credit Union Makes Loan Funding Easier While Fighting Fraud with Point Predictive’s AutoPass™ Solution

    Source: GlobeNewswire (MIL-OSI)

    SAN DIEGO, Jan. 30, 2025 (GLOBE NEWSWIRE) — Point Predictive, the leader in artificial intelligence solutions for consumer lending, today announced that Neighbors Federal Credit Union has selected AutoPass to enhance their auto lending capabilities.

    As auto lending fraud continues to evolve, with industry exposure reaching $8.1 billion in recent years, Neighbors Federal Credit Union is taking proactive steps to protect its members while making the lending process faster and more efficient.

    The partnership comes at a crucial time in the lending landscape, where credit unions have emerged as leaders in auto loan originations. By implementing AutoPass, Neighbors Credit Union will be able to streamline low risk approved loans without requiring onerous documentation which will make it easier, faster, and safer for their members.

    Point Predictive’s AutoPass delivers a comprehensive suite of fraud detection capabilities to Neighbors Federal Credit Union. This includes:

    • Insights that can reduce stipulation requests on up to 80% of approved loans.
    • A comprehensive risk score that helps prevent 40% to 60% of early pay defaults.
    • Over 120 alerts that identify fraud across all fraud types.

    “The lending environment has fundamentally changed, with fraudsters becoming increasingly sophisticated in their approaches,” said Tim Grace, CEO of Point Predictive. “By partnering with Neighbors Federal Credit Union, we’re helping them stay ahead of these evolving threats while making the lending process remarkably easier for their members. Our data shows that most borrowers are truthful in their applications, and now Neighbors Federal can quickly understand which borrowers are truthful so they can fast-track these legitimate applications while focusing their verification efforts where they matter most.”

    The integration leverages Point Predictive’s proprietary data repository, which includes more than 76 billion unique borrower insights not available anywhere else. This comprehensive data foundation enables Neighbors Federal to automate decisions on up to 80% of their credit-approved applications while maintaining robust fraud protection.

    “Our members deserve a lending experience that’s both secure and seamless,” said Steve Webb, the President and CEO of Neighbors Federal Credit Union. “Point Predictive’s AutoPass solution allows us to deliver on both fronts. We can now offer our members faster loan decisions while maintaining the highest standards of security that they expect from us.”

    The implementation is expected to deliver significant improvements in loan processing efficiency. Banks and credit unions that use AutoPass experience loan conversion rates that increase by up to 50% through the elimination of unnecessary documentation requirements, while simultaneously strengthening their defense against sophisticated fraud schemes.

    For more information, please contact info@pointpredictive.com.

    About Point Predictive

    Point Predictive powers a new level of lending confidence and speed through artificial intelligence, powerful data insight from our proprietary data repository, and decades of risk management expertise. The company’s data and technology solutions quickly and accurately identify truthful and untruthful disclosures on loan applications. As a result, lenders can fund the majority of loans without requiring onerous documentation, such as paystubs, utility bills, or bank statements, improving funding rates while reducing early payment default losses. Subsequently, borrowers get loans faster, and lenders realize a more profitable bottom line.

    About Neighbors Federal Credit Union

    Founded in 1954, Neighbors Federal Credit Union is one of the largest community-chartered credit unions in Louisiana, serving over 76,000 members with assets exceeding $1 billion. Based in Baton Rouge, Neighbors Federal provides comprehensive financial services with a focus on member satisfaction and community service. For more information, please visit neighborsfcu.org.

    Media Contact:
    Jill Robb
    jrobb@pointpredictive.com

    The MIL Network –

  • MIL-OSI Russia: IMF Executive Board Concludes 2024 Article IV Consultation with South Africa

    Source: IMF – News in Russian

    January 30, 2025

    Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation[1] with South Africa.

    South Africa’s economy has continued to face challenges in recent years. Power shortages and disruptions to rail and port operations constrained growth to 0.7 percent in 2023. Activity remained subdued in 2024, given election-related uncertainty in the first half of the year and severe droughts. Nonetheless, power generation was stabilized and, following the formation of a reform-oriented Government of National Unity in June, consumer, business, and investor confidence rebounded. Inflation moderated from 5.9 percent in 2023 to an estimated
    4.5 percent in 2024, with the central bank cutting interest rates by 50 basis points in 2024. While still high, unemployment declined to an estimated 32.8 percent in 2024. Government deficits remained elevated, pushing public debt to above 75 percent of GDP by end-2024.

    Looking ahead, real GDP growth is projected to accelerate to 1.5 percent in 2025, driven by recovering private consumption and investment supported by stable electricity generation. Over the medium term, annual growth is expected to reach 1.8 percent, as investment improves gradually on the back of ongoing reform efforts to address electricity and logistics bottlenecks. Inflation is projected to average 4 percent in 2025 and stabilize at the midpoint of the SARB’s target range (4.5 percent) in the medium run. With fiscal deficits projected to stay elevated over the medium term, public debt is expected to continue to rise.

    The outlook remains marked by high uncertainty, with the balance of risks tilted to the downside. Key downside external risks relate to a further deepening of geoeconomic fragmentation and intensification of protectionist policies, an escalation of ongoing conflicts, a deeper slowdown in main trading partners, or slower global disinflation and tightening financial conditions. Domestically, resistance to and delays in the implementation of needed reforms could add to downside risks. On the upside, faster and more ambitious reform implementation by the new government, or stronger global growth, could boost confidence and growth.   

    Executive Board Assessment[2]

    “Directors agreed with the thrust of the staff appraisal. They welcomed South Africa’s new Government of National Unity and its commitment to reforms aimed at addressing long‑standing challenges. While there are signs of recovery, economic activity remains subdued amid heightened global uncertainty and long‑standing structural impediments. Against this background, Directors emphasized the importance of prudent macroeconomic policies complemented by ambitious structural reforms to support macroeconomic stability and place the economy on a path toward higher, more inclusive, and greener growth.

    “Directors welcomed the authorities’ commitment to fiscal prudence, including plans to reduce the fiscal deficit and stabilize debt. Given increased risks, most Directors called for more ambitious fiscal consolidation efforts to lower debt to more prudent levels and rebuild fiscal buffers, although a few felt that the authorities’ preferred approach may be more appropriate given political economy considerations. Directors considered that an evenly paced fiscal consolidation focused on cutting inefficient spending while protecting priority social and infrastructure spending, and continuing to strengthen tax administration, can support debt sustainability while minimizing the negative impact on the economy. Most Directors agreed that introducing a prudent debt anchor supported by a fiscal rule could help underpin the adjustment and bolster credibility, although a few Directors felt that a debt ceiling could constrain flexibility. Enhancing fiscal transparency and risk management can further support the resilience of public finances.

    “Directors commended the South African Reserve Bank’s effective monetary management, which supported a decline in inflation. Looking forward, they recommended maintaining a flexible and data‑driven approach to monetary policy decisions amid ongoing uncertainties. Directors saw merit in shifting, at an opportune time, from the current inflation target band to a lower point target, which will require careful design, gradual implementation, close coordination, and appropriate communication.

    “Directors welcomed the authorities’ efforts to safeguard financial stability, including recent banking‑resolution and safety‑net reforms and macro‑prudential policies. They encouraged the authorities to continue to monitor risks, including those related to the sovereign‑bank nexus, and to stand ready to implement prudential measures as needed. They considered that strengthened supervision, including for non‑bank financial institutions, alongside continued efforts to bolster the AML/CFT framework, remain essential.

    “Directors commended the authorities for their structural reform efforts aimed at removing critical impediments to growth. They encouraged the new government to implement resolutely ongoing energy and logistics reforms, including by promoting private sector participation. To support higher and greener growth and job creation, particularly among the youth, while reducing inequality and poverty, Directors recommended additional reforms to enhance the business environment, bolster governance, and improve labor market flexibility, along with sustained efforts to facilitate trade and achieve climate goals.

    Directors wished the authorities success during South Africa’s G20 Presidency and welcomed their leadership in support of multilateral cooperation.”

     

    South Africa: Selected Economic Indicators, 2022–27

    Social Indicators

    GDP

    Poverty (percent of population)

    Nominal GDP (2022, billions of US dollars)

    407

    Lower national poverty line (2015)

    40

    GDP per capita (2022, in US dollars)

    6,712

    Undernourishment (2019)

    7

    Population characteristics

    Inequality (income shares unless otherwise specified)

    Total (2022, million)

    62

    Highest 10 percent of population (2015)

    53

    Urban population (2020, percent of total)

    67

    Lowest 40 percent of population (2015)

    7

    Life expectancy at birth (2020, number of years)

    64

    Gini coefficient (2015)

    65

    Economic Indicators

    2022

    2023

    2024

    2025

    2026

    2027

    Proj.

    National Income and Prices

    (Annual Percentage Change Unless Otherwise Indicated)

    Real GDP

    1.9

    0.7

    0.8

    1.5

    1.6

    1.7

    Domestic demand

    3.9

    0.8

    0.4

    1.5

    1.6

    1.8

    Private Consumption

    2.5

    0.7

    1.2

    1.4

    1.5

    1.6

    Government Consumption

    0.6

    1.9

    1.0

    1.0

    1.2

    1.3

    Gross Fixed Investment

    4.8

    3.9

    -3.4

    2.5

    2.7

    3.1

    Inventory Investment (contribution to growth)

    1.5

    -0.6

    0.0

    0.0

    0.0

    0.0

    Net export (contribution to growth)

    -2.1

    -0.1

    0.4

    0.1

    -0.1

    -0.1

    Real GDP per capita 1/

    1.1

    -0.8

    -0.7

    0.1

    0.1

    0.2

    GDP deflator

    5.0

    4.8

    4.4

    4.1

    4.5

    4.5

    CPI (annual average)

    6.9

    5.9

    4.5

    4.0

    4.5

    4.5

    CPI (end of period)

    7.4

    5.5

    3.0

    4.5

    4.5

    4.5

    Labor Market

    (Annual Percentage Change Unless Otherwise Indicated)

    Unemployment rate (percent of labor force, annual average)

    33.5

    33.1

    32.8

    32.7

    32.5

    32.3

    Unit labor costs (formal nonagricultural)

    2.1

    -0.8

    -0.7

    0.1

    0.1

    0.2

    Savings and Investment (Percent of GDP)

    Gross national saving

    15.0

    13.9

    13.2

    12.9

    13.0

    13.0

    Investment (including inventories) 2/

    15.4

    15.5

    14.5

    14.6

    14.8

    15.0

    Fiscal Position

    (Percent of GDP Unless Otherwise Indicated) 3/

    Revenue, including grants 4/

    27.6

    26.8

    26.8

    26.8

    26.9

    26.9

    Expenditure and net lending

    31.9

    32.7

    32.9

    33.3

    32.6

    32.3

    Overall balance

    -4.3

    -5.9

    -6.1

    -6.6

    -5.8

    -5.4

    Primary balance

    0.3

    -0.9

    -0.7

    -1.0

    -0.1

    0.4

    Gross government debt 5/

    70.8

    73.4

    75.7

    78.3

    80.1

    81.7

    Government bond yield (10-year and over, percent)

    10.7

    11.6

    11.2

    …

    …

    …

    Money and Credit

    (Annual Percentage Change Unless Otherwise Indicated)

    Broad money

    8.3

    7.9

    5.2

    5.7

    6.2

    6.3

    Credit to the private sector 6/

    8.2

    4.1

    5.0

    5.6

    6.2

    6.3

    Repo rate (percent, end-period)

    7.0

    8.25

    7.75

    …

    …

    …

    3-month Treasury bill interest rate (percent)

    5.2

    8.0

    8.3

    …

    …

    …

    Private sector credit growth (total) 7/

    9.2

    4.8

    4.3

    …

    …

    …

    Credit growth (households) 8/

    7.7

    4.4

    3.1

    …

    …

    …

    Credit growth (corporates) 8/

    10.7

    5.2

    6.4

    …

    …

    …

    Balance of Payments

    (Annual Percentage Change Unless Otherwise Indicated)

    Current account balance (billions of U.S. dollars)

    -1.8

    -6.1

    -5.3

    -7.3

    -7.8

    -8.9

    percent of GDP

    -0.5

    -1.6

    -1.3

    -1.7

    -1.8

    -2.0

    Exports growth (volume)

    7.4

    3.5

    -4.0

    2.7

    2.8

    2.9

    Imports growth (volume)

    14.9

    4.1

    -4.9

    2.2

    3.0

    3.2

    Terms of trade

    -8.6

    -4.8

    1.7

    -1.7

    -0.3

    0.0

    Overall balance (percent of GDP)

    0.0

    0.5

    0.8

    0.0

    0.0

    0.0

    Gross reserves (billions of U.S. dollars)

    60.6

    62.5

    65.9

    65.9

    65.9

    65.9

    in percent of ARA

    88.9

    97.0

    97.1

    …

    …

    …

    Total external debt (percent of GDP)

    40.4

    41.5

    43.2

    44.7

    45.1

    45.6

    Nominal effective exchange rate (period average)

    16.6

    18.8

    18.6

    …

    …

    …

    Real effective exchange rate (period average)

    6.8

    7.7

    7.5

    …

    …

    …

    Exchange rate (Rand/U.S. dollar, end-period)

    17.0

    18.5

    18.7

    …

    …

    …

    Sources: Bloomberg, Haver, National Treasury South Africa, SARB, World Bank, and IMF staff calculations.

    1/ Per-capita GDP figures are computed using STATS SA mid-year population estimates.

    2/ Inventories data are volatile and excluded from the investment breakdown to help clarify fixed capital formation developments.

    3/ Consolidated government as defined in the budget unless otherwise indicated.

    4/ Revenue excludes “transactions in assets and liabilities” classified as part of revenue in budget documents. This item represents proceeds from the sales of assets, realized valuation gains from holding of foreign currency deposits, and other conceptually similar items, which are not classified as revenue by the IMF’s Government Finance Statistics Manual 2014.

    5/ Central government.

    6/ Depository institution’s domestic claims on private sector in all currencies.

    7/ Credit extended by all monetary institutions/ Claims on the domestic private sector/ Total loans & advances. Data for 2024 is as of November.

    8/ Data for 2024 is as of August.

    [1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.

    [2] At the conclusion of the discussion, the Managing Director, as Chair of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summings up can be found here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Tatiana Mossot

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

    https://www.imf.org/en/News/Articles/2025/01/29/pr-2519-south-africa-imf-executive-board-concludes-2024-article-iv-consultation

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Economics: Greece: Staff Concluding Statement of the 2025 Article IV Consultation Mission

    Source: International Monetary Fund

    January 30, 2025

    A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

    The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

    Greece’s near-term economic outlook remains favorable, with real GDP sustaining its robust expansion. The public finances have further improved, with the public debt-to-GDP ratio on a firm downward trajectory, amid continued fiscal consolidation supported by strong progress in reducing tax evasion. Continuing the reform momentum will establish a solid foundation to address remaining crisis legacies and structural challenges arising from the rising yet still low level of overall investment, an unfavorable demographic outlook, and sluggish productivity growth. The right policy mix aimed at continuing fiscal consolidation in a growth-friendly manner, implementing ambitious reforms to address supply-side structural impediments, and further strengthening financial system resilience is essential to achieve sustainable growth in the medium to long term, while ensuring fiscal sustainability and safeguarding financial stability.

    Robust Expansion with Declining Debt

    1. The economy maintained its robust growth in 2024, supported by strong domestic demand. Real GDP expanded by 2.3 percent (year-on-year; y/y) in the first three quarters, buoyed by a strong pickup in NGEU-funded investment projects and robust private consumption underpinned by rising real income. The unemployment rate fell to 9.5 percent (seasonally adjusted) in 2024Q3, a historic low since 2009, and the vacancy rate has risen, reflecting labor shortages in a few sectors, particularly construction, tourism-related services, and high-skill sectors. The labor force participation rate has also gradually risen but remains among the lowest in EU, especially for women. Disinflation is underway at a gradual pace with headline and core inflation at 2.9 and 3.4 percent (y/y) in end-2024, respectively, amid persistent services inflation and wage growth. Along with strong economic activity, credit growth to the private sector has accelerated to 9.4 percent (y/y) in 2024Q4, accompanied by a continued increase in residential real estate prices. High domestic import demand, driven by investment, also contributed to the widening of the current account deficit to an estimated 6.9 percent of GDP in 2024.

    2. Continued fiscal consolidation and sustained progress in much-needed structural reforms have strengthened the public finances, growth potential, and energy security. By end-2024, the public debt-to-GDP ratio is estimated to have decreased by more than 50 percentage points from its peak in 2020, supported by strong growth, high inflation, and substantial fiscal consolidation. While the labor tax wedge has been reduced by about 4½ percentage points since 2019, tax revenue has remained buoyant due to the authorities’ strong progress in reducing tax evasion. The abolishment of substantial pension penalties for retirees re-entering the labor market significantly increased the number of working pensioners in 2024. Following the significant expansion of solar and wind capacity in recent years, renewable sources now account for about 50 percent of total electricity generation.

    3. The banking system has further enhanced its resilience with improved asset quality and capital adequacy. Asset quality in systemically important banks has improved further, with the NPL ratio dropping to around 3 percent in 2024Q3, facilitated by a government-sponsored securitization framework. Banks sustained high profits, which, along with capital instrument issuances, have boosted capital adequacy, although there is room for a further strengthening of voluntary capital buffers. The capital quality needs to be further improved as Deferred Tax Credit (DTC) still represents a substantial share of prudential capital. Given repayment of the Targeted Longer-Term Refinancing Operations (TLTROs) and meeting the Minimum Requirement for Own Funds and Eligible Liabilities (MREL) targets, liquidity and funding risks have been markedly reduced, with buffers well above prudential requirements and the EU average.

    4. Real GDP growth is projected to remain high at 2.1 percent in 2025, before moderating in the medium term. Investment will continue to be a key driver, supported by NGEU-funded projects. Private consumption growth will remain solid, underpinned by favorable employment and income growth. With stabilizing global energy prices, headline inflation is expected to resume its downward trend, while core inflation will be more persistent due to services inflation and wage growth. With NGEU funding set to expire against the backdrop of demographic headwinds and sluggish productivity growth, GDP growth is forecast to moderate to lower levels around 1¼ percent in the medium term. The current account deficit is expected to narrow gradually below 4 percent of GDP in the medium term, as imports are expected to slow along with the winding down of NGEU-funded investment.

    5. Risks to the growth outlook are balanced, while those to inflation are tilted upward. Potential headwinds include the growth slowdown in major euro area countries, a deterioration of regional conflicts, and global policy uncertainty. The acceleration of ambitious structural reforms could further improve growth prospects. Stronger and more persistent-than-expected wage growth could further fuel services inflation, potentially exacerbated by fluctuations in global and regional energy prices.

    Growth-friendly Fiscal Consolidation

    6. Continued fiscal consolidation would further strengthen public debt sustainability. The primary surplus is expected to remain high at around 2½ percent of GDP in 2025 as reduced revenue from an additional cut in social security contributions is expected to be broadly offset by revenue gains from reforms aimed at reducing tax evasion and increasing tax compliance. With the primary surplus remaining high at 2.3 percent of GDP in the medium term, the public debt-to-GDP ratio is projected to decrease further by about 25 percentage points to below 130 percent by 2030.

    7. Additional expenditure measures that raise efficiency would further strengthen Greece’s public finances. Continued reforms are necessary to enhance efficient public investment planning and management, including through further strengthening centralized coordination and procurement. It is essential to protect non-pension social spending, such as healthcare and education, to promote inclusive growth, while enhancing efficiency. Excessive increases in pensions and public-sector wages should be resisted by implementing recent reforms, for example by ensuring that pension increases adhere to the established indexation formula without ad hoc adjustment.

    8. There is room for additional revenue-enhancing reforms to further reduce tax evasion while enhancing the progressivity of the tax system. The Independent Authority for Public Revenue’s new medium-term strategy presents a good opportunity to further modernize tax administration and increase tax collection by continuing to leverage digitalization, which also reduces the burden of compliance. Tax policy reforms should focus on broadening the tax base and increasing tax progressivity. Additionally, inefficient tax expenditures, particularly the regressive VAT exemptions on some goods and services, should be phased out. The authorities should also consider raising carbon pricing, particularly in the transport and industry sectors, which can generate revenue for improved social protection and help address climate change and energy security by sharpening market incentives.

    9. Fiscal space created by additional measures or better-than-expected performance should be used for debt reduction as well as crucial social and capital spending. While public debt remains high, there are significant infrastructure investment needs, especially for energy security and in support of the green transition. The authorities should also consider enhancing support for crucial social expenditures, such as healthcare, and education with increased targeting toward the poor and vulnerable to promote inclusive growth.

    Structural reforms for boosting potential growth

    10. Comprehensive reforms to address structural supply-side impediments would increase productivity and medium-term growth prospects.

    • Raising labor force participation and ensuring a better skilled workforce. Increasing the availability of childcare and elderly care facilities can enable women to engage more productively in the economy. Reducing the still high tax wedge, coupled with appropriate job search and phasing out certain features of the unemployment benefit within the eligibility period, can enhance work incentives. Upgrading and scaling up the lifelong learning system with effective private sector participation, particularly in digital and green skills, as well as healthcare, can reduce skill mismatches and help alleviate bottlenecks for youth and female employment.
    • Accelerating regulatory reforms. Further reducing the regulatory burden and barriers to entry for firms, particularly in the services sector, would foster competition, increase productivity, and promote investment. Promoting business dynamism and fostering robust job creation are essential for effectively integrating new labor force entrants, particularly women, into employment. The quality of regulation needs to be improved by leveraging digitalization and enhancing regulatory impact assessments. Further enlarging and deepening the European single market would allow firms to grow to scale and lift productivity.
    • Advancing judicial system reforms. Progress in the implementation of the new insolvency framework, which is essential for addressing a large stock of crisis legacy distressed debt, has been hindered by imbalances and rigidities in the functioning of the civil judiciary system. In line with the recent judicial reform program, efforts should focus on accelerating the resolution of court cases. Such reforms would not only enhance financial sector resilience but also promote productive growth by facilitating the reallocation of capital to more productive activities and higher investment.

    11. Continued progress in green and digital transition will help achieve energy security and further boost productivity growth. Improving power connectivity with distant islands and enhancing energy efficiency in industries and transportation are essential for achieving the updated climate goals. Building on the ongoing increase in solar and wind capacity, scaling up grid networks and storage solutions will contribute to energy security by ensuring a stable power supply. More fundamentally, the completion of the EU-wide Energy Union, with a fully integrated and interconnected energy market, will remain crucial. Additionally, building on the commendable digitalization of public administration and the new national artificial intelligence strategy, the authorities should incentivize stronger adoption of digital technologies by the private sector to enhance productivity gains.

    Strengthening financial system resilience

    12. Monitoring of credit risks by banks should be further strengthened, while enhancing capital adequacy and its quality. With accelerating credit growth, supervisors should continue scrutinizing the extent to which banks deploy adequate and forward-looking provisioning policies, supported by adequate collateral valuations. Supervisors should also closely monitor how banks adapt their business models to the changing operating environment and further strengthen their risk management frameworks. Currently elevated bank profits should be primarily utilized to build capital buffers and improve the quality of capital. The recently announced initiative by banks to accelerate the amortization of DTCs will enhance bank resilience and reduce the bank-sovereign nexus.

    13. The implementation of the recently adopted comprehensive macroprudential toolkit will further strengthen the resilience of the banking sector. Staff welcomes activation of borrower-based measures (BBMs) for mortgage loans and a positive neutral countercyclical capital buffer (CCyB). The BBMs, in the form of caps on loan-to-value (LTV) and debt service-to-income (DSTI) ratios, should help contain excessive mortgage leverage buildup while limiting banks’ exposure to the housing boom, although close monitoring is warranted. Given the still relatively low combined capital buffers, the authorities could consider recalibrating the CCyB rate over the medium term to align with increasing uncertainty and enhance resilience.

    In closing, the mission would like to thank the Greek authorities and other stakeholders for their kind hospitality and for the open and productive discussions.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Eva Graf

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

    MIL OSI Economics –

  • MIL-OSI Africa: Driving Africa’s Sports Future: Meet the Partners Powering the Sports Africa Investment Summit (SAIS25)

    Source: Africa Press Organisation – English (2) – Report:

    LAGOS, Nigeria, January 30, 2025/APO Group/ —

    The Sports Africa Investment Summit (SAIS25) is more than an event—it’s a movement to unlock Africa’s potential by investing in sports infrastructure for a sustainable future. This mission wouldn’t be possible without the support of visionary partners committed to driving innovation, policy development, and investment in Africa’s sports industry.

    Meet the Partners

    Afreximbank – A leading financial institution fostering trade and development across Africa, Afreximbank brings its expertise in funding large-scale projects, making it a key player in sports infrastructure financing.

    Bank of Industry (BOI) – As Nigeria’s leading development finance institution, BOI plays a critical role in driving local economic growth. Through strategic financing, BOI is supporting the expansion of Nigeria’s sports sector, creating opportunities for businesses and communities to thrive.

    International Centre for Sport Security (ICSS) – A global leader in sport integrity, ICSS works across continents to promote safety, transparency, and governance in sports. Their partnership with SAIS25 reinforces the need for robust security frameworks that protect investments and ensure the long-term sustainability of Africa’s sports ecosystem.

    UN Global Compact Network Nigeria – Championing responsible business practices, this network is instrumental in promoting sustainability within sports investments, ensuring that SAIS25 initiatives align with global environmental, social, and governance (ESG) standards.

    NESH Foundation – With a focus on Nigerian entrepreneurship, NESH plays a vital role in connecting sports investment with local economic empowerment, creating opportunities for homegrown businesses to thrive.

    Nigerian Economic Summit Group (NESG) – As a Nigerian policy think tank, NESG drives economic transformation by shaping investment-friendly policies across multiple sectors, including sports. Their expertise in fostering collaboration between governments, private sector players, and investors positions them as a key advocate for a sustainable and profitable sports industry across Africa.

    Why This Matters

    The collective efforts of these esteemed partners underscore SAIS25’s mission: to transform Africa’s sports sector through strategic investments, infrastructure development, and policies that foster long-term sustainability.

    As SAIS25 approaches on February 17-18, 2025, in Lagos, we invite investors, policymakers, industry leaders, athletes, sports talent managers, sports merchandisers, fans and enthusiasts to join us in shaping the future of African sports.

    Register now at https://apo-opa.co/4gjbCZg and be part of the conversation.

    MIL OSI Africa –

  • MIL-OSI: Kearny Financial Corp. Announces Second Quarter Fiscal 2025 Results and Declaration of Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    FAIRFIELD, N.J., Jan. 30, 2025 (GLOBE NEWSWIRE) — Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported net income for the quarter ended December 31, 2024 of $6.6 million, compared to $6.1 million for the quarter ended September 30, 2024.

    Earnings per basic and diluted share were $0.11 and $0.10, respectively, for the quarter ended December 31, 2024. This compares to earnings per basic and diluted share of $0.10 for the quarter ended September 30, 2024.

    The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on February 26, 2025, to stockholders of record as of February 12, 2025.

    Craig L. Montanaro, President and Chief Executive Officer, commented, “As anticipated, this quarter reflected the early stages of growth in net interest income and expansion of net interest margin. We are pleased to report growth in deposits of 3.7% from September 30, 2024, reflecting robust performance from our branch network, digital channels and commercial lending relationships. This growth allowed us to shrink the balance of outstanding borrowings while reducing our cost of funds by nine basis points quarter-over-quarter.”

    Mr. Montanaro continued, “Although market expectations for fed funds rate cuts have moderated, the continuation of positive deposit trends coupled with the reinvestment of low-coupon cash flows from our loan and securities portfolio should serve as earnings tailwinds in the coming quarters.”

    Balance Sheet

    • Total assets were $7.73 billion at December 31, 2024, a decrease of $41.0 million, or 0.5%, from September 30, 2024.
    • Investment securities totaled $1.15 billion at December 31, 2024, a decrease of $57.5 million, or 4.8%, from September 30, 2024.
    • Loans receivable totaled $5.79 billion at December 31, 2024, an increase of $7.5 million, or 0.1%, from September 30, 2024.
    • Deposits were $5.67 billion at December 31, 2024, an increase of $200.5 million, or 3.7%, from September 30, 2024. This increase was primarily driven by increases in interest and non-interest bearing demand deposits of $142.1 million, and an increase of $60.6 million in consumer savings deposits.
    • Borrowings were $1.26 billion at December 31, 2024, a decrease of $220.9 million, or 14.9%, from September 30, 2024, reflecting reductions in Federal Home Loan Bank (“FHLB”) and other borrowings.
    • At December 31, 2024, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.32 billion, an increase of $256.0 million from September 30, 2024, representing 30.0% of total assets.

    Earnings

    Net Interest Income and Net Interest Margin

    • Net interest margin expanded two basis points from the quarter ended September 30, 2024 to 1.82% for the quarter ended December 31, 2024. The increase for the quarter was driven by the replacement of borrowings with relatively lower cost deposits and broad based decreases in deposit rates, partially offset by higher costs and average balances of brokered certificates of deposit (“CDs”), along with reduced average balances and yields on interest-earning assets.
    • For the quarter ended December 31, 2024, net interest income increased $166,000 to $32.6 million from $32.4 million for the quarter ended September 30, 2024. Included in net interest income for the quarters ended December 31, 2024 and September 30, 2024, respectively, was purchase accounting accretion of $685,000 and $649,000, and loan prepayment penalty income of $288,000 and $52,000.

    Non-Interest Income

    • Non-interest income increased $247,000 to $4.9 million for the quarter ended December 31, 2024, from $4.6 million for the quarter ended September 30, 2024. This increase was primarily driven by a $104,000 larger gain on the sale of loans held-for-sale compared to the prior comparative period and a $102,000 increase in electronic banking fees and charges.

    Non-Interest Expense

    • For the quarter ended December 31, 2024, non-interest expense decreased $225,000, or 0.8%, to $29.6 million from $29.8 million for the quarter ended September 30, 2024. This decrease was primarily driven by a decrease in other expense, partially offset by an increase in salary and benefits expense.
    • Salary and benefits expense increased $81,000 primarily driven by the absence of a non-recurring decrease in stock-based compensation recorded in the prior comparative period, partially offset by a decrease in payroll taxes.
    • Other expense decreased $280,000 primarily driven by a reversal of $116,000 for credit losses related to off balance sheet commitments compared to a provision for credit losses on off balance sheet commitments of $274,000 recorded in the prior comparative period. The remaining changes in the other components of non-interest expense between comparative periods generally reflected normal operating fluctuations within those line items.

    Income Taxes

    • Income tax expense totaled $1.3 million for the quarter ended December 31, 2024 compared to $1.1 million for the quarter ended September 30, 2024, resulting in an effective tax rate of 16.0% and 15.1%, respectively. The increase in income tax expense was primarily due to higher pre-tax income in the current quarter.

    Asset Quality

    • The balance of non-performing assets decreased $2.2 million to $37.7 million, or 0.49% of total assets, at December 31, 2024, from $39.9 million, or 0.51% of total assets, at September 30, 2024, respectively.
    • Net charge-offs totaled $573,000, or 0.04% of average loans, on an annualized basis, for the quarter ended December 31, 2024, compared to $124,000, or 0.01% of average loans, on an annualized basis, for the quarter ended September 30, 2024. The net charge-offs recorded for the quarter ended December 31, 2024 had previously been individually reserved for within the allowance for credit losses (“ACL”).
    • For the quarter ended December 31, 2024, the Company recorded a provision for credit losses of $107,000, compared to $108,000 for the quarter ended September 30, 2024. The provision for credit loss expense for the quarter ended December 31, 2024 was primarily driven by loan growth.
    • The ACL was $44.5 million, or 0.77% of total loans, at December 31, 2024, a decrease of $466,000 from $44.9 million, or 0.78% of total loans, at September 30, 2024. The decrease in the ACL from September 30, 2024 was largely attributable to a reduction in reserves for individually evaluated loans, resulting from the charge-offs noted above.

    Capital

    • For the quarter ended December 31, 2024, book value per share decreased $0.11, or 0.9%, to $11.53 while tangible book value per share decreased $0.10, or 1.0%, to $9.75. These decreases were driven by a $7.4 million larger accumulated other comprehensive loss due primarily to a decrease in the fair value of the Company’s available for sale securities, partially offset by an increase in the fair value of the Company’s derivatives portfolio.
    • At December 31, 2024, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $89.8 million, partially offset by after-tax unrealized gains on derivatives of $17.4 million. After-tax net unrecognized losses on securities held to maturity of $11.3 million were not reflected in total stockholders’ equity.
    • At December 31, 2024, the Company’s tangible equity to tangible assets ratio equaled 8.27% and the regulatory capital ratios of both the Company and the Bank were in excess of the levels required by federal banking regulators to be classified as “well-capitalized” under regulatory guidelines.

    This earnings release should be read in conjunction with Kearny Financial Corp.’s Q2 2025 Investor Presentation, a copy of which is available through the Investor Relations link located at the bottom of the page of our website at www.kearnybank.com and via a Current Report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.

    Statements contained in this news release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company does not undertake and specifically disclaims any obligation to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.

    Category: Earnings

    For further information contact:
    Keith Suchodolski, Senior Executive Vice President and Chief Operating Officer, or
    Sean Byrnes, Executive Vice President and Chief Financial Officer
    Kearny Financial Corp.
    (973) 244-4500

    Linked-Quarter Comparative Financial Analysis
             
    Kearny Financial Corp.
    Consolidated Balance Sheets
    (Unaudited)
             
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		 December 31,
    2024    		 September 30,
    2024    		 Variance
    or Change    		 Variance
    or Change Pct.
    Assets        
    Cash and cash equivalents $ 141,554   $ 155,574   $ (14,020 ) -9.0 %
    Securities available for sale   1,018,279     1,070,811     (52,532 ) -4.9 %
    Securities held to maturity   127,266     132,256     (4,990 ) -3.8 %
    Loans held-for-sale   5,695     8,866     (3,171 ) -35.8 %
    Loans receivable   5,791,758     5,784,246     7,512   0.1 %
    Less: allowance for credit losses on loans   (44,457 )   (44,923 )   (466 ) -1.0 %
    Net loans receivable   5,747,301     5,739,323     7,978   0.1 %
    Premises and equipment   45,127     45,189     (62 ) -0.1 %
    Federal Home Loan Bank stock   64,443     57,706     6,737   11.7 %
    Accrued interest receivable   27,772     29,467     (1,695 ) -5.8 %
    Goodwill   113,525     113,525     —   — %
    Core deposit intangible   1,679     1,805     (126 ) -7.0 %
    Bank owned life insurance   301,339     300,186     1,153   0.4 %
    Deferred income taxes, net   53,325     50,131     3,194   6.4 %
    Other assets   84,080     67,540     16,540   24.5 %
    Total assets $ 7,731,385   $ 7,772,379   $ (40,994 ) -0.5 %
             
    Liabilities        
    Deposits:        
    Non-interest-bearing $ 601,510   $ 592,099   $ 9,411   1.6 %
    Interest-bearing   5,069,550     4,878,413     191,137   3.9 %
    Total deposits   5,671,060     5,470,512     200,548   3.7 %
    Borrowings   1,258,949     1,479,888     (220,939 ) -14.9 %
    Advance payments by borrowers for taxes   17,986     17,824     162   0.9 %
    Other liabilities   38,537     52,618     (14,081 ) -26.8 %
    Total liabilities   6,986,532     7,020,842     (34,310 ) -0.5 %
             
    Stockholders’ Equity        
    Common stock   646     646     —   — %
    Paid-in capital   494,092     493,523     569   0.1 %
    Retained earnings   342,155     342,522     (367 ) -0.1 %
    Unearned ESOP shares   (19,943 )   (20,430 )   487   2.4 %
    Accumulated other comprehensive loss   (72,097 )   (64,724 )   (7,373 ) -11.4 %
    Total stockholders’ equity   744,853     751,537     (6,684 ) -0.9 %
    Total liabilities and stockholders’ equity $ 7,731,385   $ 7,772,379   $ (40,994 ) -0.5 %
             
    Consolidated capital ratios        
    Equity to assets   9.63 %   9.67 %   -0.04 %  
    Tangible equity to tangible assets (1)   8.27 %   8.31 %   -0.04 %  
             
    Share data        
    Outstanding shares   64,580     64,580     —   — %
    Book value per share $ 11.53   $ 11.64   $ (0.11 ) -0.9 %
    Tangible book value per share (2) $ 9.75   $ 9.85   $ (0.10 ) -1.0 %

    _________________________

    (1)   Tangible equity equals total stockholders’ equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
    (2)   Tangible book value equals total stockholders’ equity reduced by goodwill and core deposit intangible assets.

           
    Kearny Financial Corp.
    Consolidated Statements of Income
    (Unaudited)
           
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		 Three Months Ended Variance
    or Change    		 Variance
    or Change Pct.
    December 31,
    2024    		 September 30,
    2024
    Interest income        
    Loans $ 65,408   $ 66,331   $ (923 ) -1.4 %
    Taxable investment securities   13,803     14,384     (581 ) -4.0 %
    Tax-exempt investment securities   59     71     (12 ) -16.9 %
    Other interest-earning assets   2,215     2,466     (251 ) -10.2 %
    Total interest income   81,485     83,252     (1,767 ) -2.1 %
             
    Interest expense        
    Deposits   36,721     35,018     1,703   4.9 %
    Borrowings   12,152     15,788     (3,636 ) -23.0 %
    Total interest expense   48,873     50,806     (1,933 ) -3.8 %
    Net interest income   32,612     32,446     166   0.5 %
    Provision for credit losses   107     108     (1 ) -0.9 %
    Net interest income after provision for credit losses   32,505     32,338     167   0.5 %
             
    Non-interest income        
    Fees and service charges   627     635     (8 ) -1.3 %
    Gain on sale of loans   304     200     104   52.0 %
    Income from bank owned life insurance   2,619     2,567     52   2.0 %
    Electronic banking fees and charges   493     391     102   26.1 %
    Other income   830     833     (3 ) -0.4 %
    Total non-interest income   4,873     4,626     247   5.3 %
             
    Non-interest expense        
    Salaries and employee benefits   17,579     17,498     81   0.5 %
    Net occupancy expense of premises   2,831     2,798     33   1.2 %
    Equipment and systems   3,892     3,860     32   0.8 %
    Advertising and marketing   311     342     (31 ) -9.1 %
    Federal deposit insurance premium   1,503     1,563     (60 ) -3.8 %
    Directors’ compensation   361     361     —   — %
    Other expense   3,084     3,364     (280 ) -8.3 %
    Total non-interest expense   29,561     29,786     (225 ) -0.8 %
    Income before income taxes   7,817     7,178     639   8.9 %
    Income taxes   1,251     1,086     165   15.2 %
    Net income $ 6,566   $ 6,092   $ 474   7.8 %
             
    Net income per common share (EPS)        
    Basic $ 0.11   $ 0.10   $ 0.01    
    Diluted $ 0.10   $ 0.10   $ —    
             
    Dividends declared        
    Cash dividends declared per common share $ 0.11   $ 0.11   $ —    
    Cash dividends declared $ 6,933   $ 6,896   $ 37    
    Dividend payout ratio   105.6 %   113.2 %   -7.6 %  
             
    Weighted average number of common shares outstanding        
    Basic   62,443     62,389     54    
    Diluted   62,576     62,420     156    
                         
           
    Kearny Financial Corp.
    Average Balance Sheet Data
    (Unaudited)
           
    (Dollars in Thousands) Three Months Ended Variance
    or Change    		 Variance
    or Change Pct.
    December 31,
    2024    		 September 30,
    2024
    Assets        
    Interest-earning assets:        
    Loans receivable, including loans held for sale $ 5,762,053   $ 5,761,593   $ 460   — %
    Taxable investment securities   1,285,800     1,314,945     (29,145 ) -2.2 %
    Tax-exempt investment securities   9,711     12,244     (2,533 ) -20.7 %
    Other interest-earning assets   116,354     131,981     (15,627 ) -11.8 %
    Total interest-earning assets   7,173,918     7,220,763     (46,845 ) -0.6 %
    Non-interest-earning assets   459,982     467,670     (7,688 ) -1.6 %
    Total assets $ 7,633,900   $ 7,688,433   $ (54,533 ) -0.7 %
             
    Liabilities and Stockholders’ Equity        
    Interest-bearing liabilities:        
    Deposits:        
    Interest-bearing demand $ 2,314,378   $ 2,282,608   $ 31,770   1.4 %
    Savings   711,801     668,240     43,561   6.5 %
    Certificates of deposit (retail)   1,211,985     1,203,770     8,215   0.7 %
    Certificates of deposit (brokered and listing service)   735,736     551,819     183,917   33.3 %
    Total interest-bearing deposits   4,973,900     4,706,437     267,463   5.7 %
    Borrowings:        
    Federal Home Loan Bank advances   1,085,455     1,325,583     (240,128 ) -18.1 %
    Other borrowings   156,522     237,011     (80,489 ) -34.0 %
    Total borrowings   1,241,977     1,562,594     (320,617 ) -20.5 %
    Total interest-bearing liabilities   6,215,877     6,269,031     (53,154 ) -0.8 %
    Non-interest-bearing liabilities:        
    Non-interest-bearing deposits   604,915     599,095     5,820   1.0 %
    Other non-interest-bearing liabilities   65,258     69,629     (4,371 ) -6.3 %
    Total non-interest-bearing liabilities   670,173     668,724     1,449   0.2 %
    Total liabilities   6,886,050     6,937,755     (51,705 ) -0.7 %
    Stockholders’ equity   747,850     750,678     (2,828 ) -0.4 %
    Total liabilities and stockholders’ equity $ 7,633,900   $ 7,688,433   $ (54,533 ) -0.7 %
             
    Average interest-earning assets to average interest-bearing liabilities   115.41 %   115.18 %   0.23 % 0.2 %
                           
         
    Kearny Financial Corp.
    Performance Ratio Highlights
    (Unaudited)
         
      Three Months Ended Variance
    or Change
      December 31,
    2024    		 September 30,
    2024
    Average yield on interest-earning assets:      
    Loans receivable, including loans held for sale 4.54 % 4.61 % -0.07 %
    Taxable investment securities 4.29 % 4.38 % -0.09 %
    Tax-exempt investment securities (1) 2.42 % 2.32 % 0.10 %
    Other interest-earning assets 7.62 % 7.47 % 0.15 %
    Total interest-earning assets 4.54 % 4.61 % -0.07 %
           
    Average cost of interest-bearing liabilities:      
    Deposits:      
    Interest-bearing demand 2.96 % 3.13 % -0.17 %
    Savings 1.29 % 1.05 % 0.24 %
    Certificates of deposit (retail) 4.06 % 4.12 % -0.06 %
    Certificates of deposit (brokered and listing service) 2.71 % 2.18 % 0.53 %
    Total interest-bearing deposits 2.95 % 2.98 % -0.03 %
    Borrowings:      
    Federal Home Loan Bank advances 3.78 % 3.82 % -0.04 %
    Other borrowings 4.88 % 5.28 % -0.40 %
    Total borrowings 3.91 % 4.04 % -0.13 %
    Total interest-bearing liabilities 3.15 % 3.24 % -0.09 %
           
    Interest rate spread (2) 1.39 % 1.37 % 0.02 %
    Net interest margin (3) 1.82 % 1.80 % 0.02 %
           
    Non-interest income to average assets (annualized) 0.26 % 0.24 % 0.02 %
    Non-interest expense to average assets (annualized) 1.55 % 1.55 % — %
           
    Efficiency ratio (4) 78.86 % 80.35 % -1.49 %
           
    Return on average assets (annualized) 0.34 % 0.32 % 0.02 %
    Return on average equity (annualized) 3.51 % 3.25 % 0.26 %
    Return on average tangible equity (annualized) (5) 4.21 % 3.89 % 0.32 %

    _________________________

    (1)   The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.
    (2)   Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.
    (3)   Net interest income divided by average interest-earning assets.
    (4)   Non-interest expense divided by the sum of net interest income and non-interest income.
    (5)   Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.

    Five-Quarter Financial Trend Analysis
               
    Kearny Financial Corp.
    Consolidated Balance Sheets
               
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023
      (Unaudited) (Unaudited)   (Unaudited) (Unaudited)
    Assets          
    Cash and cash equivalents $ 141,554   $ 155,574   $ 63,864   $ 71,027   $ 73,860  
    Securities available for sale   1,018,279     1,070,811     1,072,833     1,098,655     1,144,175  
    Securities held to maturity   127,266     132,256     135,742     139,643     141,959  
    Loans held-for-sale   5,695     8,866     6,036     4,117     14,030  
    Loans receivable   5,791,758     5,784,246     5,732,787     5,758,336     5,745,629  
    Less: allowance for credit losses on loans   (44,457 )   (44,923 )   (44,939 )   (44,930 )   (44,867 )
    Net loans receivable   5,747,301     5,739,323     5,687,848     5,713,406     5,700,762  
    Premises and equipment   45,127     45,189     44,940     45,053     45,928  
    Federal Home Loan Bank stock   64,443     57,706     80,300     81,347     83,372  
    Accrued interest receivable   27,772     29,467     29,521     31,065     30,258  
    Goodwill   113,525     113,525     113,525     210,895     210,895  
    Core deposit intangible   1,679     1,805     1,931     2,057     2,189  
    Bank owned life insurance   301,339     300,186     297,874     296,493     256,064  
    Deferred income taxes, net   53,325     50,131     50,339     47,225     46,116  
    Other real estate owned   —     —     —     —     11,982  
    Other assets   84,080     67,540     98,708     100,989     136,242  
    Total assets $ 7,731,385   $ 7,772,379   $ 7,683,461   $ 7,841,972   $ 7,897,832  
               
    Liabilities          
    Deposits:          
    Non-interest-bearing $ 601,510   $ 592,099   $ 598,366   $ 586,089   $ 584,130  
    Interest-bearing   5,069,550     4,878,413     4,559,757     4,622,961     4,735,500  
    Total deposits   5,671,060     5,470,512     5,158,123     5,209,050     5,319,630  
    Borrowings   1,258,949     1,479,888     1,709,789     1,722,178     1,667,055  
    Advance payments by borrowers for taxes   17,986     17,824     17,409     17,387     16,742  
    Other liabilities   38,537     52,618     44,569     44,279     46,427  
    Total liabilities   6,986,532     7,020,842     6,929,890     6,992,894     7,049,854  
               
    Stockholders’ Equity          
    Common stock   646     646     644     644     645  
    Paid-in capital   494,092     493,523     493,680     493,187     493,297  
    Retained earnings   342,155     342,522     343,326     440,308     439,755  
    Unearned ESOP shares   (19,943 )   (20,430 )   (20,916 )   (21,402 )   (21,889 )
    Accumulated other comprehensive loss   (72,097 )   (64,724 )   (63,163 )   (63,659 )   (63,830 )
    Total stockholders’ equity   744,853     751,537     753,571     849,078     847,978  
    Total liabilities and stockholders’ equity $ 7,731,385   $ 7,772,379   $ 7,683,461   $ 7,841,972   $ 7,897,832  
               
    Consolidated capital ratios          
    Equity to assets   9.63 %   9.67 %   9.81 %   10.83 %   10.74 %
    Tangible equity to tangible assets (1)   8.27 %   8.31 %   8.43 %   8.34 %   8.26 %
               
    Share data          
    Outstanding shares   64,580     64,580     64,434     64,437     64,445  
    Book value per share $ 11.53   $ 11.64   $ 11.70   $ 13.18   $ 13.16  
    Tangible book value per share (2) $ 9.75   $ 9.85   $ 9.90   $ 9.87   $ 9.85  

    _________________________

    (1)   Tangible equity equals total stockholders’ equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
    (2)   Tangible book value equals total stockholders’ equity reduced by goodwill and core deposit intangible assets.

               
    Kearny Financial Corp.
    Supplemental Balance Sheet Highlights
    (Unaudited)
               
    (Dollars in Thousands) December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023
    Loan portfolio composition:          
    Commercial loans:          
    Multi-family mortgage $ 2,722,623   $ 2,646,187   $ 2,645,851   $ 2,645,195   $ 2,651,274  
    Nonresidential mortgage   950,194     950,771     948,075     965,539     947,287  
    Commercial business   135,740     145,984     142,747     147,326     144,134  
    Construction   176,704     227,327     209,237     229,457     221,933  
    Total commercial loans   3,985,261     3,970,269     3,945,910     3,987,517     3,964,628  
    One- to four-family residential mortgage   1,765,160     1,768,230     1,756,051     1,741,644     1,746,065  
    Consumer loans:          
    Home equity loans   47,101     44,741     44,104     42,731     43,517  
    Other consumer   2,778     2,965     2,685     3,198     2,728  
    Total consumer loans   49,879     47,706     46,789     45,929     46,245  
    Total loans, excluding yield adjustments   5,800,300     5,786,205     5,748,750     5,775,090     5,756,938  
    Unaccreted yield adjustments   (8,542 )   (1,959 )   (15,963 )   (16,754 )   (11,309 )
    Loans receivable, net of yield adjustments   5,791,758     5,784,246     5,732,787     5,758,336     5,745,629  
    Less: allowance for credit losses on loans   (44,457 )   (44,923 )   (44,939 )   (44,930 )   (44,867 )
    Net loans receivable $ 5,747,301   $ 5,739,323   $ 5,687,848   $ 5,713,406   $ 5,700,762  
               
    Asset quality:          
    Nonperforming assets:          
    Accruing loans – 90 days and over past due $ —   $ —   $ —   $ —   $ —  
    Nonaccrual loans   37,697     39,854     39,882     39,546     28,089  
    Total nonperforming loans   37,697     39,854     39,882     39,546     28,089  
    Nonaccrual loans held-for-sale   —     —     —     —     9,700  
    Other real estate owned   —     —     —     —     11,982  
    Total nonperforming assets $ 37,697   $ 39,854   $ 39,882   $ 39,546   $ 49,771  
               
    Nonperforming loans (% total loans)   0.65 %   0.69 %   0.70 %   0.69 %   0.49 %
    Nonperforming assets (% total assets)   0.49 %   0.51 %   0.52 %   0.50 %   0.63 %
               
    Classified loans $ 132,216   $ 119,534   $ 118,700   $ 115,772   $ 94,676  
               
    Allowance for credit losses on loans (ACL):          
    ACL to total loans   0.77 %   0.78 %   0.78 %   0.78 %   0.78 %
    ACL to nonperforming loans   117.93 %   112.72 %   112.68 %   113.61 %   159.73 %
    Net charge-offs $ 573   $ 124   $ 3,518   $ 286   $ 4,110  
    Average net charge-off rate (annualized)   0.04 %   0.01 %   0.25 %   0.02 %   0.29 %
                                   
               
    Kearny Financial Corp.
    Supplemental Balance Sheet Highlights
    (Unaudited)
               
    (Dollars in Thousands) December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023
    Funding composition:          
    Deposits:          
    Non-interest-bearing deposits $ 601,510   $ 592,099   $ 598,367   $ 586,089   $ 584,130  
    Interest-bearing demand   2,380,408     2,247,685     2,308,915     2,349,032     2,347,262  
    Savings   742,266     681,709     643,481     630,456     646,182  
    Certificates of deposit (retail)   1,194,865     1,215,746     1,199,127     1,235,261     1,283,676  
    Certificates of deposit (brokered and listing service)   752,011     733,273     408,234     408,212     458,380  
    Interest-bearing deposits   5,069,550     4,878,413     4,559,757     4,622,961     4,735,500  
    Total deposits   5,671,060     5,470,512     5,158,124     5,209,050     5,319,630  
               
    Borrowings:          
    Federal Home Loan Bank advances   1,028,949     1,209,888     1,534,789     1,457,178     1,432,055  
    Overnight borrowings   230,000     270,000     175,000     265,000     235,000  
    Total borrowings   1,258,949     1,479,888     1,709,789     1,722,178     1,667,055  
               
      Total funding $ 6,930,009   $ 6,950,400   $ 6,867,913   $ 6,931,228   $ 6,986,685  
               
    Loans as a % of deposits   101.4 %   105.1 %   110.4 %   109.8 %   107.4 %
    Deposits as a % of total funding   81.8 %   78.7 %   75.1 %   75.2 %   76.1 %
    Borrowings as a % of total funding   18.2 %   21.3 %   24.9 %   24.8 %   23.9 %
               
    Uninsured deposits:          
    Uninsured deposits (reported) (1) $ 1,935,607   $ 1,799,726   $ 1,772,623   $ 1,760,740   $ 1,813,122  
    Uninsured deposits (adjusted) (2) $ 797,721   $ 773,375   $ 764,447   $ 718,026   $ 694,510  

    _________________________

    (1)   Uninsured deposits of Kearny Bank.
    (2)   Uninsured deposits of Kearny Bank adjusted to exclude deposits of its wholly-owned subsidiary and holding company and collateralized deposits of state and local governments.

       
    Kearny Financial Corp.
    Consolidated Statements of Income (Loss)
    (Unaudited)
       
      Three Months Ended
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023
    Interest income          
    Loans $ 65,408   $ 66,331   $ 65,819   $ 64,035   $ 63,384  
    Taxable investment securities   13,803     14,384     14,802     15,490     16,756  
    Tax-exempt investment securities   59     71     80     85     84  
    Other interest-earning assets   2,215     2,466     2,289     2,475     2,401  
    Total interest income   81,485     83,252     82,990     82,085     82,625  
               
    Interest expense          
    Deposits   36,721     35,018     32,187     32,320     30,340  
    Borrowings   12,152     15,788     17,527     15,446     16,446  
    Total interest expense   48,873     50,806     49,714     47,766     46,786  
    Net interest income   32,612     32,446     33,276     34,319     35,839  
    Provision for credit losses   107     108     3,527     349     2,105  
    Net interest income after provision for credit losses   32,505     32,338     29,749     33,970     33,734  
               
    Non-interest income          
    Fees and service charges   627     635     580     657     624  
    Loss on sale and call of securities   —     —     —     —     (18,135 )
    Gain (loss) on sale of loans   304     200     111     (712 )   104  
    Loss on sale of other real estate owned   —     —     —     —     (974 )
    Income from bank owned life insurance   2,619     2,567     3,209     3,039     1,162  
    Electronic banking fees and charges   493     391     1,130     464     396  
    Other income   830     833     776     755     811  
    Total non-interest income   4,873     4,626     5,806     4,203     (16,012 )
               
    Non-interest expense          
    Salaries and employee benefits   17,579     17,498     17,266     16,911     17,282  
    Net occupancy expense of premises   2,831     2,798     2,738     2,863     2,674  
    Equipment and systems   3,892     3,860     3,785     3,823     3,814  
    Advertising and marketing   311     342     480     387     301  
    Federal deposit insurance premium   1,503     1,563     1,532     1,429     1,495  
    Directors’ compensation   361     361     360     360     393  
    Goodwill impairment   —     —     97,370     —     —  
    Other expense   3,084     3,364     3,020     3,286     3,808  
    Total non-interest expense   29,561     29,786     126,551     29,059     29,767  
    Income (loss) before income taxes   7,817     7,178     (90,996 )   9,114     (12,045 )
    Income taxes   1,251     1,086     (917 )   1,717     1,782  
    Net income (loss) $ 6,566   $ 6,092   $ (90,079 ) $ 7,397   $ (13,827 )
               
    Net income (loss) per common share (EPS)          
    Basic $ 0.11   $ 0.10   $ (1.45 ) $ 0.12   $ (0.22 )
    Diluted $ 0.10   $ 0.10   $ (1.45 ) $ 0.12   $ (0.22 )
               
    Dividends declared          
    Cash dividends declared per common share $ 0.11   $ 0.11   $ 0.11   $ 0.11   $ 0.11  
    Cash dividends declared $ 6,933   $ 6,896   $ 6,903   $ 6,844   $ 6,882  
    Dividend payout ratio   105.6 %   113.2 %   -7.7 %   92.5 %   -49.8 %
               
    Weighted average number of common shares outstanding          
    Basic   62,443     62,389     62,254     62,205     62,299  
    Diluted   62,576     62,420     62,254     62,211     62,299  
                                   
       
    Kearny Financial Corp.
    Average Balance Sheet Data
    (Unaudited)
       
      Three Months Ended
    (Dollars in Thousands) December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023
    Assets          
    Interest-earning assets:          
    Loans receivable, including loans held-for-sale $ 5,762,053   $ 5,761,593   $ 5,743,008   $ 5,752,477   $ 5,726,321  
    Taxable investment securities   1,285,800     1,314,945     1,343,541     1,382,064     1,509,165  
    Tax-exempt investment securities   9,711     12,244     13,737     14,614     15,025  
    Other interest-earning assets   116,354     131,981     128,257     125,155     139,740  
    Total interest-earning assets   7,173,918     7,220,763     7,228,543     7,274,310     7,390,251  
    Non-interest-earning assets   459,982     467,670     466,537     577,411     554,335  
    Total assets $ 7,633,900   $ 7,688,433   $ 7,695,080   $ 7,851,721   $ 7,944,586  
               
    Liabilities and Stockholders’ Equity          
    Interest-bearing liabilities:          
    Deposits:          
    Interest-bearing demand $ 2,314,378   $ 2,282,608   $ 2,310,521   $ 2,378,831   $ 2,301,169  
    Savings   711,801     668,240     631,622     635,226     664,926  
    Certificates of deposit (retail)   1,211,985     1,203,770     1,208,101     1,257,362     1,292,837  
    Certificates of deposit (brokered and listing service)   735,736     551,819     405,697     448,151     531,479  
    Total interest-bearing deposits   4,973,900     4,706,437     4,555,941     4,719,570     4,790,411  
    Borrowings:          
    Federal Home Loan Bank advances   1,085,455     1,325,583     1,507,192     1,428,801     1,513,497  
    Other borrowings   156,522     237,011     228,461     210,989     142,283  
    Total borrowings   1,241,977     1,562,594     1,735,653     1,639,790     1,655,780  
    Total interest-bearing liabilities   6,215,877     6,269,031     6,291,594     6,359,360     6,446,191  
    Non-interest-bearing liabilities:          
    Non-interest-bearing deposits   604,915     599,095     589,438     581,870     597,294  
    Other non-interest-bearing liabilities   65,258     69,629     62,978     65,709     62,387  
    Total non-interest-bearing liabilities   670,173     668,724     652,416     647,579     659,681  
    Total liabilities   6,886,050     6,937,755     6,944,010     7,006,939     7,105,872  
    Stockholders’ equity   747,850     750,678     751,070     844,782     838,714  
    Total liabilities and stockholders’ equity $ 7,633,900   $ 7,688,433   $ 7,695,080   $ 7,851,721   $ 7,944,586  
               
    Average interest-earning assets to average interest-bearing liabilities   115.41 %   115.18 %   114.89 %   114.39 %   114.65 %
                                   
       
    Kearny Financial Corp.
    Performance Ratio Highlights
       
      Three Months Ended
      December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023
    Average yield on interest-earning assets:          
    Loans receivable, including loans held-for-sale 4.54 % 4.61 % 4.58 % 4.45 % 4.43 %
    Taxable investment securities 4.29 % 4.38 % 4.41 % 4.48 % 4.44 %
    Tax-exempt investment securities (1) 2.42 % 2.32 % 2.32 % 2.32 % 2.25 %
    Other interest-earning assets 7.62 % 7.47 % 7.14 % 7.91 % 6.87 %
    Total interest-earning assets 4.54 % 4.61 % 4.59 % 4.51 % 4.47 %
               
    Average cost of interest-bearing liabilities:          
    Deposits:          
    Interest-bearing demand 2.96 % 3.13 % 3.06 % 3.08 % 2.91 %
    Savings 1.29 % 1.05 % 0.63 % 0.46 % 0.44 %
    Certificates of deposit (retail) 4.06 % 4.12 % 3.95 % 3.52 % 3.06 %
    Certificates of deposit (brokered and listing service) 2.71 % 2.18 % 1.59 % 1.97 % 2.24 %
    Total interest-bearing deposits 2.95 % 2.98 % 2.83 % 2.74 % 2.53 %
    Borrowings:          
    Federal Home Loan Bank advances 3.78 % 3.82 % 3.86 % 3.55 % 3.82 %
    Other borrowings 4.88 % 5.28 % 5.24 % 5.22 % 5.65 %
    Total borrowings 3.91 % 4.04 % 4.04 % 3.77 % 3.97 %
    Total interest-bearing liabilities 3.15 % 3.24 % 3.16 % 3.00 % 2.90 %
               
    Interest rate spread (2) 1.39 % 1.37 % 1.43 % 1.51 % 1.57 %
    Net interest margin (3) 1.82 % 1.80 % 1.84 % 1.89 % 1.94 %
               
    Non-interest income to average assets (annualized) 0.26 % 0.24 % 0.30 % 0.21 % -0.81 %
    Non-interest expense to average assets (annualized) 1.55 % 1.55 % 6.58 % 1.48 % 1.50 %
               
    Efficiency ratio (4) 78.86 % 80.35 % 323.81 % 75.43 % 150.13 %
               
    Return on average assets (annualized) 0.34 % 0.32 % -4.68 % 0.38 % -0.70 %
    Return on average equity (annualized) 3.51 % 3.25 % -47.97 % 3.50 % -6.59 %
    Return on average tangible equity (annualized) (5) 4.21 % 3.89 % 3.33 % 4.68 % -8.84 %

    _________________________

    (1)   The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.
    (2)   Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.
    (3)   Net interest income divided by average interest-earning assets.
    (4)   Non-interest expense divided by the sum of net interest income and non-interest income.
    (5)   Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.

    The following tables provide a reconciliation of certain financial measures calculated in accordance with Generally Accepted Accounting Principles (“GAAP”) (as reported) and non-GAAP measures. These non-GAAP measures provide additional information which allow readers to evaluate the ongoing performance of the Company. They are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. In all cases, it should be understood that non-GAAP per share measures do not depict amounts that accrue directly to the benefit of shareholders.

       
    Kearny Financial Corp.
    Reconciliation of GAAP to Non-GAAP
    (Unaudited)
       
      Three Months Ended
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023
    Adjusted net income:          
    Net income (loss) (GAAP) $ 6,566   $ 6,092   $ (90,079 ) $ 7,397   $ (13,827 )
    Non-recurring transactions – net of tax:          
    Net effect of sale and call of securities   —     —     —     —     12,876  
    Net effect of bank-owned life insurance restructure   —     —     392     —     6,286  
    Goodwill impairment   —     —     95,283     —     —  
    Adjusted net income $ 6,566   $ 6,092   $ 5,596   $ 7,397   $ 5,335  
               
    Calculation of pre-tax, pre-provision net revenue:          
    Net income (loss) (GAAP) $ 6,566   $ 6,092   $ (90,079 ) $ 7,397   $ (13,827 )
    Adjustments to net income (GAAP):          
    Provision for income taxes   1,251     1,086     (917 )   1,717     1,782  
    Provision for credit losses   107     108     3,527     349     2,105  
    Pre-tax, pre-provision net revenue (non-GAAP) $ 7,924   $ 7,286   $ (87,469 ) $ 9,463   $ (9,940 )
               
    Adjusted earnings per share:          
    Weighted average common shares – basic   62,443     62,389     62,254     62,205     62,299  
    Weighted average common shares – diluted   62,576     62,420     62,330     62,211     62,367  
               
    Earnings per share – basic (GAAP) $ 0.11   $ 0.10   $ (1.45 ) $ 0.12   $ (0.22 )
    Earnings per share – diluted (GAAP) $ 0.10   $ 0.10   $ (1.45 ) $ 0.12   $ (0.22 )
               
    Adjusted earnings per share – basic (non-GAAP) $ 0.11   $ 0.10   $ 0.09   $ 0.12   $ 0.09  
    Adjusted earnings per share – diluted (non-GAAP) $ 0.10   $ 0.10   $ 0.09   $ 0.12   $ 0.09  
               
    Pre-tax, pre-provision net revenue per share:          
    Pre-tax, pre-provision net revenue per share – basic (non-GAAP) $ 0.13   $ 0.12   $ (1.41 ) $ 0.15   $ (0.16 )
    Pre-tax, pre-provision net revenue per share – diluted (non-GAAP) $ 0.13   $ 0.12   $ (1.41 ) $ 0.15   $ (0.16 )
               
    Adjusted return on average assets:          
    Total average assets $ 7,633,900   $ 7,688,433   $ 7,695,080   $ 7,851,721   $ 7,944,586  
               
    Return on average assets (GAAP)   0.34 %   0.32 %   -4.68 %   0.38 %   -0.70 %
    Adjusted return on average assets (non-GAAP)   0.34 %   0.32 %   0.29 %   0.38 %   0.27 %
               
    Adjusted return on average equity:          
    Total average equity $ 747,850   $ 750,678   $ 751,070   $ 844,782   $ 838,714  
               
    Return on average equity (GAAP)   3.51 %   3.25 %   -47.97 %   3.50 %   -6.59 %
    Adjusted return on average equity (non-GAAP)   3.51 %   3.25 %   2.98 %   3.50 %   2.54 %
                                   
       
    Kearny Financial Corp.
    Reconciliation of GAAP to Non-GAAP
    (Unaudited)
       
      Three Months Ended
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023
    Adjusted return on average tangible equity:          
    Total average equity $ 747,850   $ 750,678   $ 751,070   $ 844,782   $ 838,714  
    Less: average goodwill   (113,525 )   (113,525 )   (113,525 )   (210,895 )   (210,895 )
    Less: average other intangible assets   (1,761 )   (1,886 )   (2,006 )   (2,138 )   (2,277 )
    Total average tangible equity $ 632,564   $ 635,267   $ 635,539   $ 631,749   $ 625,542  
               
    Return on average tangible equity (non-GAAP)   4.21 %   3.89 %   3.33 %   4.68 %   -8.84 %
    Adjusted return on average tangible equity (non-GAAP)   4.21 %   3.89 %   3.58 %   4.68 %   3.41 %
               
    Adjusted non-interest expense ratio:          
    Non-interest expense (GAAP) $ 29,561   $ 29,786   $ 126,551   $ 29,059   $ 29,767  
    Non-recurring transactions:          
    Goodwill impairment   —     —     (97,370 )   —     —  
    Non-interest expense (non-GAAP) $ 29,561   $ 29,786   $ 29,181   $ 29,059   $ 29,767  
               
    Non-interest expense ratio (GAAP)   1.55 %   1.55 %   6.58 %   1.48 %   1.50 %
    Adjusted non-interest expense ratio (non-GAAP)   1.55 %   1.55 %   1.52 %   1.48 %   1.50 %
               
    Adjusted efficiency ratio:          
    Non-interest expense (non-GAAP) $ 29,561   $ 29,786   $ 29,181   $ 29,059   $ 29,767  
               
    Net interest income (GAAP) $ 32,612   $ 32,446   $ 33,276   $ 34,319   $ 35,839  
    Total non-interest income (GAAP)   4,873     4,626     5,806     4,203     (16,012 )
    Non-recurring transactions:          
    Net effect of sale and call of securities   —     —     —     —     18,135  
    Net effect of bank-owned life insurance restructure   —     —     392     —     573  
    Total revenue (non-GAAP) $ 37,485   $ 37,072   $ 39,474   $ 38,522   $ 38,535  
               
    Efficiency ratio (GAAP)   78.86 %   80.35 %   323.81 %   75.43 %   150.13 %
    Adjusted efficiency ratio (non-GAAP)   78.86 %   80.35 %   73.92 %   75.43 %   77.25 %
                                   

    The MIL Network –

  • MIL-OSI: Red River Bancshares, Inc. Reports Fourth Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    ALEXANDRIA, La., Jan. 30, 2025 (GLOBE NEWSWIRE) — Red River Bancshares, Inc. (the “Company”) (Nasdaq: RRBI), the holding company for Red River Bank (the “Bank”), announced today its unaudited financial results for the fourth quarter of 2024.

    Net income for the fourth quarter of 2024 was $9.3 million, or $1.37 per diluted common share (“EPS”), an increase of $552,000, or 6.3%, compared to $8.8 million, or $1.27 EPS, for the third quarter of 2024, and an increase of $1.0 million, or 12.2%, compared to $8.3 million, or $1.16 EPS, for the fourth quarter of 2023. For the fourth quarter of 2024, the quarterly return on assets was 1.18%, and the quarterly return on equity was 11.46%.

    Net income for the year ended December 31, 2024, was $34.2 million, or $4.95 EPS, a decrease of $644,000, or 1.8%, compared to $34.9 million, or $4.86 EPS, for the year ended December 31, 2023. For the year ended December 31, 2024, the return on assets was 1.11%, and the return on equity was 11.02%.

    Fourth Quarter 2024 Performance and Operational Highlights

    In the fourth quarter of 2024, the Company had an improved net interest margin, which resulted in higher net interest income and earnings, along with slightly higher loans and deposits. A significant stock repurchase transaction was completed, and a stock repurchase program for 2025 was renewed. During the fourth quarter, the target range of the federal funds rate was reduced by 50 basis points (“bps”).

    • Net income for the fourth quarter of 2024 was $9.3 million compared to $8.8 million for the prior quarter. Net income for the fourth quarter benefited from an improved net interest margin fully tax equivalent (“FTE”) and higher net interest income.
    • Net interest income and net interest margin FTE increased for the fourth quarter of 2024 compared to the prior quarter. Net interest income for the fourth quarter of 2024 was $23.7 million compared to $22.5 million for the prior quarter. Net interest margin FTE for the fourth quarter of 2024 was 3.09% compared to 2.98% for the prior quarter. These improvements were due to higher loan balances, combined with higher securities yields and lower deposit rates.
    • As of December 31, 2024, assets were $3.15 billion, which was $47.8 million, or 1.5%, higher than September 30, 2024. The increase was mainly due to a $58.0 million increase in deposits.
    • Deposits totaled $2.81 billion as of December 31, 2024, an increase of $58.0 million, or 2.1%, compared to $2.75 billion as of September 30, 2024. This increase was mainly due to the seasonal inflow of funds from public entity customers.
    • As of December 31, 2024, loans held for investment (“HFI”) were $2.08 billion, slightly higher than $2.06 billion as of September 30, 2024. In the third and fourth quarters of 2024, we closed on a high level of loan commitments, which we expect to fund over time.
    • As of December 31, 2024, total securities were $684.9 million, which was $12.8 million, or 1.8%, lower than September 30, 2024. Securities decreased mainly due to having a larger net unrealized loss on securities available-for-sale (“AFS”). New securities purchased were offset by securities maturities and principal repayments.
    • As of December 31, 2024, liquid assets, which are cash and cash equivalents, were $269.0 million, and the liquid assets to assets ratio was 8.54%. We do not have any borrowings, brokered deposits, or internet-sourced deposits.
    • In the fourth quarter of 2024, the provision for credit losses totaled $300,000. This included $200,000 for loans and $100,000 for unfunded loan commitments.
    • As of December 31, 2024, nonperforming assets (“NPA(s)”) were $3.3 million, or 0.10% of assets, and the allowance for credit losses (“ACL”) was $21.7 million, or 1.05% of loans HFI.
    • We paid a quarterly cash dividend of $0.09 per common share in the fourth quarter of 2024.
    • The 2024 stock repurchase program authorized us to purchase up to $5.0 million of our outstanding shares of common stock from January 1, 2024 through December 31, 2024. Under this plan, in the fourth quarter of 2024, we repurchased 632 shares on the open market at an aggregate cost of $33,000. The 2024 stock repurchase program expired on December 31, 2024, with $1.1 million of remaining availability. On December 19, 2024, our Board of Directors approved the renewal of our stock repurchase program for 2025. The 2025 stock repurchase program authorizes us to purchase up to $5.0 million of our outstanding shares of common stock from January 1, 2025 through December 31, 2025.
    • On November 5, 2024, we entered into a privately negotiated stock repurchase agreement for the repurchase of 50,000 shares of our common stock at a purchase price of $2.5 million. This repurchase was supplemental to our 2024 stock repurchase program.
    • In 2024, we repurchased 327,085 shares of our common stock. For the year ended December 31, 2024, these repurchases benefited earnings per share by $0.14.
    • As of December 31, 2024, capital levels were strong, with a stockholders’ equity to assets ratio of 10.15%, a leverage ratio of 11.86%, and a total risk-based capital ratio of 18.28%.
    • In the fourth quarter of 2024, we continued implementing our organic expansion plan. We purchased property in Lafayette, Louisiana and plan to build a new banking center at that location, which would be our second banking center in the Acadiana market.
    • The American Banker publication included Red River Bank in its “2024 Best Banks To Work For” ranking.

    Blake Chatelain, President and Chief Executive Officer, stated, “We are pleased to finish out 2024 with a strong fourth quarter, which included steady net interest margin improvement, higher net income, solid loan activity, and good liquidity.

    “In the fourth quarter, the Federal Reserve lowered short-term interest rates; however, longer term rates remained fairly consistent. Due to diligent balance sheet management, our net interest margin FTE increased by 11 bps and net interest income increased by 5.5% in the fourth quarter. New loan activity was very good in the fourth quarter; however, the loan portfolio was impacted by higher than normal paydowns on loans. For the second quarter in a row, we closed on a significant amount of construction loan commitments, which we expect to fund over time. Our balance sheet is well positioned for the forecasted interest rate environment and a normal shaped yield curve. This should enable us to continue improving the net interest margin slightly in the first half of 2025.

    “In the fourth quarter of 2024, we completed a third, significant private stock repurchase transaction. In 2024, we repurchased 4.6% of outstanding shares, which positively impacted earnings per share, while also maintaining strong capital levels and ratios.

    “The fourth quarter of 2024 wrapped up a good year for our Company and our communities. Our Company is well positioned for the future, with robust capital and liquidity levels combined with a great team of community bankers. We look forward to 2025 as we continue to grow and build value for our shareholders.”

    Net Interest Income and Net Interest Margin FTE

    Net interest income and net interest margin FTE increased in the fourth quarter of 2024 compared to the prior quarter. These measures were both impacted by improved yields on securities, as well as lower deposit rates. After keeping the federal funds rate consistent since the third quarter of 2023, the Federal Open Market Committee (“FOMC”) decreased the federal funds rate by 50 bps in September of 2024, and by an additional 50 bps during the fourth quarter of 2024.

    Net interest income for the fourth quarter of 2024 was $23.7 million, which was $1.2 million, or 5.5%, higher than the third quarter of 2024, due to a $729,000 increase in interest and dividend income, combined with a $501,000 decrease in interest expense. The increase in interest and dividend income was due to higher interest income on loans and securities. Loan income increased $376,000 primarily due to higher average loan balances during the fourth quarter. Securities income increased $289,000 due to reinvesting lower yielding securities cash flows into higher yielding securities. The decrease in interest expense was primarily due to lower rates on interest-bearing transaction deposits and time deposits.

    The net interest margin FTE increased 11 bps to 3.09% for the fourth quarter of 2024, compared to 2.98% for the prior quarter. This increase was due to improved yields on securities, combined with lower deposit costs. The yield on securities increased 13 bps due to reinvesting lower yielding securities cash flows into higher yielding securities. The yield on loans increased 2 bps due to higher rates on new and renewed loans compared to the existing portfolio yield. The average rate on new and renewed loans was 7.25% for the fourth quarter of 2024 and 7.89% for the prior quarter. The cost of deposits decreased 10 bps to 1.71% for the fourth quarter of 2024, compared to 1.81% for the previous quarter, due to our lowering of selected deposit rates. As a result of this change, there was a 17 bp decrease in the rate on interest-bearing transaction deposits and a 9 bp decrease on time deposits during the fourth quarter.

    The FOMC lowered the federal funds rate by 50 bps in the fourth quarter of 2024, reducing the target federal funds range to 4.25%-4.50%. The market’s expectation is that the FOMC may lower the target range of the federal funds rate by at least 25 bps in 2025. In 2025, we anticipate receiving approximately $101.0 million in securities cash flows with an average yield of 3.01%, and we project approximately $194.0 million of fixed rate loans will mature with an average yield of 6.04%. We expect to redeploy these balances into higher yielding assets. Additionally, in 2025, we expect $541.9 million of time deposits to mature with an average rate of 4.10%, which we anticipate repricing into lower cost deposits. As of December 31, 2024, floating rate loans were 16.0% of loans HFI, and floating rate transaction deposits were 8.1% of interest-bearing transaction deposits. Depending on balance sheet activity and the movement in interest rates, we expect the net interest income and net interest margin FTE to improve slightly during the first half of 2025.

    Provision for Credit Losses

    The provision for credit losses for the third and fourth quarters of 2024 was $300,000, which included $200,000 for loans and $100,000 for unfunded loan commitments for each quarter. The provision in the third and fourth quarters was due to potential economic challenges resulting from the recent inflationary environment, changing monetary policy, and loan growth. In the second half of 2024, we had an increase in unfunded loan commitments. We will continue to evaluate future provision needs in relation to current economic situations, loan growth, trends in asset quality, forecasted information, and other conditions influencing loss expectations.

    Noninterest Income

    Noninterest income totaled $5.0 million for the fourth quarter of 2024, a decrease of $424,000, or 7.8%, compared to $5.4 million for the previous quarter. The decrease was mainly due to a loss on equity securities and lower loan and deposit income.

    Equity securities are an investment in a Community Reinvestment Act (“CRA”) mutual fund consisting primarily of bonds. The gain or loss on equity securities is a fair value adjustment primarily driven by changes in the interest rate environment. Due to the fluctuations in market rates between quarters, equity securities had a loss of $91,000 in the fourth quarter of 2024, compared to a gain of $107,000 for the previous quarter.

    Loan and deposit income totaled $463,000 for the fourth quarter of 2024, a decrease of $125,000, or 21.3%, compared to $588,000 for the previous quarter. The third quarter of 2024 benefited from the receipt of a $151,000 nonrecurring loan related fee.

    Operating Expenses

    Operating expenses totaled $16.8 million for the fourth quarter of 2024, which was fairly consistent with the previous quarter. Higher occupancy and equipment expenses were offset by lower other taxes.

    Occupancy and equipment expenses totaled $1.7 million for the fourth quarter of 2024, which was $55,000, or 3.3% higher than the previous quarter. In the fourth quarter of 2024, there was $35,000 of nonrecurring expenses related to a new administrative office in the New Orleans market.

    Other taxes totaled $547,000 for the fourth quarter of 2024, a decrease of $75,000, or 12.1%, compared to $622,000 for the previous quarter. In the fourth quarter of 2024, the State of Louisiana bank stock tax expense was lower due to a $68,000 adjustment with receipt of the year-end bank stock tax invoices.

    Asset Overview

    As of December 31, 2024, assets were $3.15 billion, compared to assets of $3.10 billion as of September 30, 2024, an increase of $47.8 million, or 1.5%. In the fourth quarter, assets were mainly impacted by a $58.0 million, or 2.1%, increase in deposits. In the fourth quarter of 2024, liquid assets increased $36.3 million, or 15.6%, to $269.0 million and averaged $256.2 million for the fourth quarter. As of December 31, 2024, we had sufficient liquid assets available and $1.62 billion accessible from other liquidity sources. The liquid assets to assets ratio was 8.54% as of December 31, 2024. Total securities decreased $12.8 million, or 1.8%, to $684.9 million in the fourth quarter and were 21.7% of assets as of December 31, 2024. During the fourth quarter, loans HFI increased $19.0 million, or 0.9%, to $2.08 billion. The loans HFI to deposits ratio was 73.97% as of December 31, 2024, compared to 74.84% as of September 30, 2024.

    Securities

    Total securities as of December 31, 2024, were $684.9 million, a decrease of $12.8 million, or 1.8%, from September 30, 2024. Securities decreased mainly due to having a larger net unrealized loss on securities AFS. New securities purchased were offset by securities maturities and principal repayments.

    The estimated fair value of securities AFS totaled $550.1 million, net of $63.2 million of unrealized loss, as of December 31, 2024, compared to $560.6 million, net of $49.5 million of unrealized loss, as of September 30, 2024. As of December 31, 2024, the amortized cost of securities held-to-maturity (“HTM”) totaled $131.8 million compared to $134.1 million as of September 30, 2024. As of December 31, 2024, securities HTM had an unrealized loss of $22.8 million compared to $17.3 million as of September 30, 2024.

    As of December 31, 2024, equity securities, which is an investment in a CRA mutual fund consisting primarily of bonds, totaled $2.9 million compared to $3.0 million as of September 30, 2024.

    Loans

    Loans HFI as of December 31, 2024, were $2.08 billion, slightly higher than $2.06 billion as of September 30, 2024. In the third and fourth quarters of 2024, we closed on a high level of loan commitments, which, depending on customer activity, we expect to fund over time. Unfunded loan commitments that originated in the fourth quarter of 2024 totaled $106.2 million.

    Loans HFI by Category
      December 31, 2024   September 30, 2024   Change from
    September 30, 2024 to
    December 31, 2024
    (dollars in thousands) Amount   Percent   Amount   Percent   $ Change   % Change
    Real estate:                      
    Commercial real estate $ 884,641   42.6 %   $ 875,590   42.6 %   $ 9,051     1.0 %
    One-to-four family residential   614,551   29.6 %     616,467   30.0 %     (1,916 )   (0.3 %)
    Construction and development   155,229   7.5 %     141,525   6.9 %     13,704     9.7 %
    Commercial and industrial   327,086   15.8 %     327,069   15.9 %     17     — %
    Tax-exempt   64,930   3.1 %     66,436   3.2 %     (1,506 )   (2.3 %)
    Consumer   28,576   1.4 %     28,961   1.4 %     (385 )   (1.3 %)
    Total loans HFI $ 2,075,013   100.0 %   $ 2,056,048   100.0 %   $ 18,965     0.9 %
                                         

    Commercial real estate (“CRE”) loans are collateralized by owner occupied and non-owner occupied properties mainly in Louisiana. Non-owner occupied office loans were $56.4 million, or 2.7% of loans HFI, as of December 31, 2024, and are primarily centered in low-rise suburban areas. The average CRE loan size was $953,000 as of December 31, 2024.

    Health care loans are our largest industry concentration and are made up of a diversified portfolio of health care providers. As of December 31, 2024, total health care loans were 8.1% of loans HFI. Within the health care sector, loans to nursing and residential care facilities were 4.4% of loans HFI, and loans to physician and dental practices were 3.4% of loans HFI. The average health care loan size was $372,000 as of December 31, 2024.

    Asset Quality and Allowance for Credit Losses

    NPAs totaled $3.3 million as of December 31, 2024, an increase of $166,000, or 5.3%, from September 30, 2024, primarily due to an increase in past due loans, partially offset by payoffs and charge-offs of nonaccrual loans. The ratio of NPAs to assets was 0.10% as of December 31, 2024 and September 30, 2024.

    As of December 31, 2024, the ACL was $21.7 million. The ratio of ACL to loans HFI was 1.05% as of December 31, 2024 and 1.06% as of September 30, 2024. The net charge-offs to average loans ratio was 0.01% for the fourth quarter of 2024 and 0.00% for the third quarter of 2024.

    Deposits

    As of December 31, 2024, deposits were $2.81 billion, an increase of $58.0 million, or 2.1%, compared to September 30, 2024. Average deposits for the fourth quarter of 2024 were $2.78 billion, an increase of $53.5 million, or 2.0%, from the prior quarter. The following tables provide details on our deposit portfolio:

    Deposits by Account Type
      December 31, 2024   September 30, 2024   Change from
    September 30, 2024 to
    December 31, 2024
    (dollars in thousands) Balance   % of Total   Balance   % of Total   $ Change   % Change
    Noninterest-bearing demand deposits $ 866,496   30.9 %   $ 882,394   32.1 %   $ (15,898 )   (1.8 %)
    Interest-bearing deposits:                      
    Interest-bearing demand deposits   154,720   5.5 %     163,787   6.0 %     (9,067 )   (5.5 %)
    NOW accounts   467,118   16.7 %     379,566   13.8 %     87,552     23.1 %
    Money market accounts   556,769   19.8 %     551,229   20.0 %     5,540     1.0 %
    Savings accounts   169,894   6.1 %     166,723   6.1 %     3,171     1.9 %
    Time deposits less than or equal to $250,000   403,096   14.3 %     411,361   15.0 %     (8,265 )   (2.0 %)
    Time deposits greater than $250,000   187,013   6.7 %     192,065   7.0 %     (5,052 )   (2.6 %)
    Total interest-bearing deposits   1,938,610   69.1 %     1,864,731   67.9 %     73,879     4.0 %
    Total deposits $ 2,805,106   100.0 %   $ 2,747,125   100.0 %   $ 57,981     2.1 %
                                         
    Deposits by Customer Type
      December 31, 2024   September 30, 2024   Change from
    September 30, 2024 to
    December 31, 2024
    (dollars in thousands) Balance   % of Total   Balance   % of Total   $ Change   % Change
    Consumer $ 1,362,740   48.6 %   $ 1,348,281   49.1 %   $ 14,459     1.1 %
    Commercial   1,178,488   42.0 %     1,191,625   43.4 %     (13,137 )   (1.1 %)
    Public   263,878   9.4 %     207,219   7.5 %     56,659     27.3 %
    Total deposits $ 2,805,106   100.0 %   $ 2,747,125   100.0 %   $ 57,981     2.1 %
                                         

    The increase in deposits in the fourth quarter of 2024 was mainly due to the seasonal inflow of funds from public entity customers, partially offset by a decrease in commercial customer deposit balances related to normal business activity.

    The Bank has a granular, diverse deposit portfolio with customers in a variety of industries throughout Louisiana. As of December 31, 2024, the average deposit account size was approximately $28,000.

    As of December 31, 2024, our estimated uninsured deposits, which are the portion of deposit accounts that exceed the FDIC insurance limit (currently $250,000), were approximately $879.8 million, or 31.4% of total deposits. This amount was estimated based on the same methodologies and assumptions used for regulatory reporting purposes. Also, as of December 31, 2024, our estimated uninsured deposits, excluding collateralized public entity deposits, were approximately $667.6 million, or 23.8% of total deposits. Our cash and cash equivalents of $269.0 million, combined with our available borrowing capacity of $1.62 billion, equaled 214.6% of our estimated uninsured deposits and 282.8% of our estimated uninsured deposits, excluding collateralized public entity deposits.

    Stockholders’ Equity

    Total stockholders’ equity as of December 31, 2024, was $319.7 million compared to $324.3 million as of September 30, 2024. The $4.6 million, or 1.4%, decrease in stockholders’ equity during the fourth quarter of 2024 was attributable to a $10.6 million, net of tax, market adjustment to accumulated other comprehensive loss related to securities, the repurchase of 50,632 shares of common stock for $2.7 million, and $610,000 in cash dividends related to a $0.09 per share cash dividend that we paid on December 19, 2024. The common stock repurchase of $2.7 million includes $213,000 of stock repurchase excise tax related to our 2023 and 2024 stock repurchases, which tax regulations require to be recorded as a reduction to shareholders’ equity. These decreases in stockholders’ equity were partially offset by $9.3 million of net income and $95,000 of stock compensation.

    Non-GAAP Disclosure

    Our accounting and reporting policies conform to United States generally accepted accounting principles (“GAAP”) and the prevailing practices in the banking industry. Certain financial measures used by management to evaluate our operating performance are discussed as supplemental non-GAAP performance measures. In accordance with the Securities and Exchange Commission’s (“SEC”) rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the U.S.

    Management and the board of directors review tangible book value per share, tangible common equity to tangible assets, and realized book value per share as part of managing operating performance. However, these non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner we calculate the non-GAAP financial measures that are discussed may differ from that of other companies’ reporting measures with similar names. It is important to understand how such other banking organizations calculate and name their financial measures similar to the non-GAAP financial measures discussed by us when comparing such non-GAAP financial measures.

    A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included within the following financial statement tables.

    About Red River Bancshares, Inc.

    Red River Bancshares, Inc. is the bank holding company for Red River Bank, a Louisiana state-chartered bank established in 1999 that provides a fully integrated suite of banking products and services tailored to the needs of commercial and retail customers. Red River Bank operates from a network of 28 banking centers throughout Louisiana and one combined loan and deposit production office in New Orleans, Louisiana. Banking centers are located in the following Louisiana markets: Central, which includes the Alexandria metropolitan statistical area (“MSA”); Northwest, which includes the Shreveport-Bossier City MSA; Capital, which includes the Baton Rouge MSA; Southwest, which includes the Lake Charles MSA; the Northshore, which includes Covington; Acadiana, which includes the Lafayette MSA; and New Orleans.

    Forward-Looking Statements

    Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business, interest rates, and markets, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the section titled “Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q, and in other documents that we file with the SEC from time to time. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this news release are qualified in their entirety by this cautionary statement.

    Contact:
    Isabel V. Carriere, CPA, CGMA
    Executive Vice President, Chief Financial Officer, and Assistant Corporate Secretary
    318-561-4023
    icarriere@redriverbank.net 

    FINANCIAL HIGHLIGHTS (UNAUDITED)
     
        As of and for the
    Three Months Ended    		   As of and for the
    Years Ended
    (dollars in thousands, except per share data)   December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Net Income   $ 9,306     $ 8,754     $ 8,292     $ 34,235     $ 34,879  
                         
    Per Common Share Data:                    
    Earnings per share, basic   $ 1.37     $ 1.28     $ 1.16     $ 4.96     $ 4.87  
    Earnings per share, diluted   $ 1.37     $ 1.27     $ 1.16     $ 4.95     $ 4.86  
    Book value per share   $ 47.18     $ 47.51     $ 42.85     $ 47.18     $ 42.85  
    Tangible book value per share (1)   $ 46.95     $ 47.28     $ 42.63     $ 46.95     $ 42.63  
    Realized book value per share (1)   $ 56.07     $ 54.78     $ 51.38     $ 56.07     $ 51.38  
    Cash dividends per share   $ 0.09     $ 0.09     $ 0.08     $ 0.36     $ 0.32  
    Shares outstanding     6,777,238       6,826,120       7,091,637       6,777,238       7,091,637  
    Weighted average shares outstanding, basic     6,797,469       6,851,223       7,128,988       6,898,286       7,164,314  
    Weighted average shares outstanding, diluted     6,816,299       6,867,474       7,145,870       6,918,060       7,181,728  
                         
    Summary Performance Ratios:                    
    Return on average assets     1.18 %     1.13 %     1.08 %     1.11 %     1.15 %
    Return on average equity     11.46 %     11.11 %     11.63 %     11.02 %     12.44 %
    Net interest margin     3.04 %     2.93 %     2.78 %     2.91 %     2.87 %
    Net interest margin FTE     3.09 %     2.98 %     2.82 %     2.96 %     2.91 %
    Efficiency ratio     58.71 %     60.09 %     60.51 %     60.29 %     59.39 %
    Loans HFI to deposits ratio     73.97 %     74.84 %     71.13 %     73.97 %     71.13 %
    Noninterest-bearing deposits to deposits ratio     30.89 %     32.12 %     32.71 %     30.89 %     32.71 %
    Noninterest income to average assets     0.63 %     0.70 %     0.67 %     0.66 %     0.70 %
    Operating expense to average assets     2.14 %     2.17 %     2.08 %     2.14 %     2.11 %
                         
    Summary Credit Quality Ratios:                    
    NPAs to assets     0.10 %     0.10 %     0.08 %     0.10 %     0.08 %
    Nonperforming loans to loans HFI     0.16 %     0.15 %     0.13 %     0.16 %     0.13 %
    ACL to loans HFI     1.05 %     1.06 %     1.07 %     1.05 %     1.07 %
    Net charge-offs to average loans     0.01 %     0.00 %     0.01 %     0.03 %     0.02 %
                         
    Capital Ratios:                    
    Stockholders’ equity to assets     10.15 %     10.46 %     9.71 %     10.15 %     9.71 %
    Tangible common equity to tangible assets(1)     10.11 %     10.41 %     9.67 %     10.11 %     9.67 %
    Total risk-based capital to risk-weighted assets     18.28 %     18.07 %     18.28 %     18.28 %     18.28 %
    Tier 1 risk-based capital to risk-weighted assets     17.12 %     17.05 %     17.24 %     17.12 %     17.24 %
    Common equity Tier 1 capital to risk-weighted assets     17.12 %     17.05 %     17.24 %     17.12 %     17.24 %
    Tier 1 risk-based capital to average assets     11.86 %     11.90 %     11.56 %     11.86 %     11.56 %

    (1) Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release.

    RED RIVER BANCSHARES, INC.
    CONSOLIDATED BALANCE SHEETS (UNAUDITED)
     
    (in thousands) December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    ASSETS                  
    Cash and due from banks $ 30,558     $ 39,664     $ 35,035     $ 19,401     $ 53,062  
    Interest-bearing deposits in other banks   238,417       192,983       178,038       210,404       252,364  
    Securities available-for-sale, at fair value   550,148       560,555       526,890       545,967       570,092  
    Securities held-to-maturity, at amortized cost   131,796       134,145       136,824       139,328       141,236  
    Equity securities, at fair value   2,937       3,028       2,921       2,934       2,965  
    Nonmarketable equity securities   2,328       2,305       2,283       2,261       2,239  
    Loans held for sale   2,547       1,805       3,878       1,653       1,306  
    Loans held for investment   2,075,013       2,056,048       2,047,890       2,038,072       1,992,858  
    Allowance for credit losses   (21,731 )     (21,757 )     (21,627 )     (21,564 )     (21,336 )
    Premises and equipment, net   59,441       57,661       57,910       57,539       57,088  
    Accrued interest receivable   10,048       9,465       9,570       9,995       9,945  
    Bank-owned life insurance   30,380       30,164       29,947       29,731       29,529  
    Intangible assets   1,546       1,546       1,546       1,546       1,546  
    Right-of-use assets   2,733       2,853       2,973       3,091       3,629  
    Other assets   33,433       31,285       34,450       32,940       32,287  
    Total Assets $ 3,149,594     $ 3,101,750     $ 3,048,528     $ 3,073,298     $ 3,128,810  
    LIABILITIES                  
    Noninterest-bearing deposits $ 866,496     $ 882,394     $ 892,942     $ 895,439     $ 916,456  
    Interest-bearing deposits   1,938,610       1,864,731       1,823,704       1,850,452       1,885,432  
    Total Deposits   2,805,106       2,747,125       2,716,646       2,745,891       2,801,888  
    Accrued interest payable   7,583       11,751       8,747       8,959       8,000  
    Lease liabilities   2,864       2,982       3,100       3,215       3,767  
    Accrued expenses and other liabilities   14,302       15,574       13,045       15,919       11,304  
    Total Liabilities   2,829,855       2,777,432       2,741,538       2,773,984       2,824,959  
    COMMITMENTS AND CONTINGENCIES   —       —       —       —       —  
    STOCKHOLDERS’ EQUITY                  
    Preferred stock, no par value   —       —       —       —       —  
    Common stock, no par value   38,655       41,402       44,413       45,177       55,136  
    Additional paid-in capital   2,777       2,682       2,590       2,485       2,407  
    Retained earnings   338,554       329,858       321,719       314,352       306,802  
    Accumulated other comprehensive income (loss)   (60,247 )     (49,624 )     (61,732 )     (62,700 )     (60,494 )
    Total Stockholders’ Equity   319,739       324,318       306,990       299,314       303,851  
    Total Liabilities and Stockholders’ Equity $ 3,149,594     $ 3,101,750     $ 3,048,528     $ 3,073,298     $ 3,128,810  
    RED RIVER BANCSHARES, INC.
    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                         
        For the Three Months Ended   For the Years Ended
    (in thousands)     December 31,
    2024    		       September 30,
    2024    		     December 31,
    2023    		     December 31,
    2024    		       December 31,
    2023    		  
    INTEREST AND DIVIDEND INCOME                                    
    Interest and fees on loans   $ 28,285     $ 27,909   $ 24,898   $ 108,969     $ 93,439  
    Interest on securities     4,623       4,334     3,656     17,089       14,291  
    Interest on federal funds sold     —       —     —     —       886  
    Interest on deposits in other banks     2,699       2,630     3,438     11,077       9,797  
    Dividends on stock     23       28     49     95       155  
    Total Interest and Dividend Income     35,630       34,901     32,041     137,230       118,568  
    INTEREST EXPENSE                    
    Interest on deposits     11,943       12,444     10,747     47,936       32,066  
    Interest on other borrowed funds     —       —     —     —       64  
    Total Interest Expense     11,943       12,444     10,747     47,936       32,130  
    Net Interest Income     23,687       22,457     21,294     89,294       86,438  
    Provision for credit losses     300       300     250     1,200       735  
    Net Interest Income After Provision for Credit Losses     23,387       22,157     21,044     88,094       85,703  
    NONINTEREST INCOME                    
    Service charges on deposit accounts     1,452       1,486     1,459     5,674       5,776  
    Debit card income, net     960       905     875     3,836       3,563  
    Mortgage loan income     652       732     441     2,490       1,965  
    Brokerage income     924       987     1,039     3,791       3,798  
    Loan and deposit income     463       588     575     2,034       2,140  
    Bank-owned life insurance income     216       217     197     851       754  
    Gain (Loss) on equity securities     (91 )     107     132     (28 )     (14 )
    SBIC income     346       301     393     1,453       2,873  
    Other income (loss)     73       96     76     340       259  
    Total Noninterest Income     4,995       5,419     5,187     20,441       21,114  
    OPERATING EXPENSES                    
    Personnel expenses     9,769       9,700     9,233     38,623       37,241  
    Occupancy and equipment expenses     1,716       1,661     1,647     6,691       6,581  
    Technology expenses     884       865     693     3,182       2,759  
    Advertising     313       317     347     1,374       1,302  
    Other business development expenses     486       521     537     2,076       1,987  
    Data processing expense     681       652     631     2,331       2,320  
    Other taxes     547       622     679     2,407       2,721  
    Loan and deposit expenses     334       294     256     895       984  
    Legal and professional expenses     658       653     664     2,657       2,378  
    Regulatory assessment expenses     428       421     423     1,654       1,645  
    Other operating expenses     1,024       1,046     913     4,264       3,955  
    Total Operating Expenses     16,840       16,752     16,023     66,154       63,873  
    Income Before Income Tax Expense     11,542       10,824     10,208     42,381       42,944  
    Income tax expense     2,236       2,070     1,916     8,146       8,065  
    Net Income   $ 9,306     $ 8,754   $ 8,292   $ 34,235     $ 34,879  
                                         
    RED RIVER BANCSHARES, INC.
    NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED)
     
      For the Three Months Ended
      December 31, 2024   September 30, 2024
    (dollars in thousands) Average Balance Outstanding   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate    		   Average Balance Outstanding   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate
    Assets                      
    Interest-earning assets:                      
    Loans(1,2) $ 2,072,858     $ 28,285   5.34 %   $ 2,054,451     $ 27,909   5.32 %
    Securities – taxable   555,622       3,636   2.62 %     545,171       3,344   2.45 %
    Securities – tax-exempt   190,470       987   2.07 %     191,285       990   2.07 %
    Interest-bearing deposits in other banks   225,660       2,699   4.74 %     194,229       2,630   5.36 %
    Nonmarketable equity securities   2,307       23   3.99 %     2,284       28   4.85 %
    Total interest-earning assets   3,046,917     $ 35,630   4.60 %     2,987,420     $ 34,901   4.59 %
    Allowance for credit losses   (21,824 )             (21,702 )        
    Noninterest-earning assets   109,992               104,599          
    Total assets $ 3,135,085             $ 3,070,317          
    Liabilities and Stockholders’ Equity                      
    Interest-bearing liabilities:                      
    Interest-bearing transaction deposits $ 1,263,775     $ 5,658   1.78 %   $ 1,230,487     $ 6,042   1.95 %
    Time deposits   599,910       6,285   4.17 %     597,286       6,402   4.26 %
    Total interest-bearing deposits   1,863,685       11,943   2.55 %     1,827,773       12,444   2.71 %
    Other borrowings   —       —   — %     —       —   — %
    Total interest-bearing liabilities   1,863,685     $ 11,943   2.55 %     1,827,773     $ 12,444   2.71 %
    Noninterest-bearing liabilities:                      
    Noninterest-bearing deposits   918,804               901,192          
    Accrued interest and other liabilities   29,567               28,006          
    Total noninterest-bearing liabilities   948,371               929,198          
    Stockholders’ equity   323,029               313,346          
    Total liabilities and stockholders’ equity $ 3,135,085             $ 3,070,317          
    Net interest income     $ 23,687           $ 22,457    
    Net interest spread         2.05 %           1.88 %
    Net interest margin         3.04 %           2.93 %
    Net interest margin FTE(3)         3.09 %           2.98 %
    Cost of deposits         1.71 %           1.81 %
    Cost of funds         1.56 %           1.66 %

    (1) Includes average outstanding balances of loans held for sale of $3.2 million and $3.0 million for the three months ended December 31, 2024 and September 30, 2024, respectively.
    (2) Nonaccrual loans are included as loans carrying a zero yield.
    (3) Net interest margin FTE includes an FTE adjustment using a 21.0% federal income tax rate on tax-exempt securities and tax-exempt loans.

    RED RIVER BANCSHARES, INC.
    NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED)
     
      For the Years Ended
      December 31, 2024   December 31, 2023
    (dollars in thousands) Average Balance Outstanding   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate    		   Average Balance Outstanding   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate
    Assets                      
    Interest-earning assets:                      
    Loans(1,2) $ 2,046,339     $ 108,969   5.24 %   $ 1,943,381     $ 93,439   4.74 %
    Securities – taxable   554,194       13,098   2.36 %     605,692       10,169   1.68 %
    Securities – tax-exempt   193,368       3,991   2.06 %     202,673       4,122   2.03 %
    Federal funds sold   —       —   — %     18,594       886   4.70 %
    Interest-bearing deposits in other banks   210,959       11,077   5.22 %     188,199       9,797   5.17 %
    Nonmarketable equity securities   2,273       95   4.19 %     3,353       155   4.61 %
    Total interest-earning assets   3,007,133     $ 137,230   4.50 %     2,961,892     $ 118,568   3.96 %
    Allowance for credit losses   (21,646 )             (20,980 )        
    Noninterest-earning assets   102,951               86,939          
    Total assets $ 3,088,438             $ 3,027,851          
    Liabilities and Stockholders’ Equity                      
    Interest-bearing liabilities:                      
    Interest-bearing transaction deposits $ 1,246,528     $ 23,082   1.85 %   $ 1,249,259     $ 17,555   1.41 %
    Time deposits   593,817       24,854   4.19 %     470,522       14,511   3.08 %
    Total interest-bearing deposits   1,840,345       47,936   2.60 %     1,719,781       32,066   1.86 %
    Other borrowings   —       —   — %     1,151       64   5.49 %
    Total interest-bearing liabilities   1,840,345     $ 47,936   2.60 %     1,720,932     $ 32,130   1.87 %
    Noninterest-bearing liabilities:                      
    Noninterest-bearing deposits   910,507               1,004,107          
    Accrued interest and other liabilities   26,884               22,385          
    Total noninterest-bearing liabilities   937,391               1,026,492          
    Stockholders’ equity   310,702               280,427          
    Total liabilities and stockholders’ equity $ 3,088,438             $ 3,027,851          
    Net interest income     $ 89,294           $ 86,438    
    Net interest spread         1.90 %           2.09 %
    Net interest margin         2.91 %           2.87 %
    Net interest margin FTE(3)         2.96 %           2.91 %
    Cost of deposits         1.74 %           1.18 %
    Cost of funds         1.59 %           1.08 %

    (1) Includes average outstanding balances of loans held for sale of $2.9 million and $2.4 million for the years ended December 31, 2024 and 2023, respectively.
    (2) Nonaccrual loans are included as loans carrying a zero yield.
    (3) Net interest margin FTE includes an FTE adjustment using a 21.0% federal income tax rate on tax-exempt securities and tax-exempt loans.

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
     
    (dollars in thousands, except per share data) December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023
    Tangible common equity          
    Total stockholders’ equity $ 319,739     $ 324,318     $ 303,851  
    Adjustments:          
    Intangible assets   (1,546 )     (1,546 )     (1,546 )
    Total tangible common equity (non-GAAP) $ 318,193     $ 322,772     $ 302,305  
    Realized common equity          
    Total stockholders’ equity $ 319,739     $ 324,318     $ 303,851  
    Adjustments:          
    Accumulated other comprehensive (income) loss   60,247       49,624       60,494  
    Total realized common equity (non-GAAP) $ 379,986     $ 373,942     $ 364,345  
    Common shares outstanding   6,777,238       6,826,120       7,091,637  
    Book value per share $ 47.18     $ 47.51     $ 42.85  
    Tangible book value per share (non-GAAP) $ 46.95     $ 47.28     $ 42.63  
    Realized book value per share (non-GAAP) $ 56.07     $ 54.78     $ 51.38  
               
    Tangible assets          
    Total assets $ 3,149,594     $ 3,101,750     $ 3,128,810  
    Adjustments:          
    Intangible assets   (1,546 )     (1,546 )     (1,546 )
    Total tangible assets (non-GAAP) $ 3,148,048     $ 3,100,204     $ 3,127,264  
    Total stockholders’ equity to assets   10.15 %     10.46 %     9.71 %
    Tangible common equity to tangible assets (non-GAAP)   10.11 %     10.41 %     9.67 %

    The MIL Network –

  • MIL-OSI Russia: Greece: Staff Concluding Statement of the 2025 Article IV Consultation Mission

    Source: IMF – News in Russian

    January 30, 2025

    A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

    The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

    Greece’s near-term economic outlook remains favorable, with real GDP sustaining its robust expansion. The public finances have further improved, with the public debt-to-GDP ratio on a firm downward trajectory, amid continued fiscal consolidation supported by strong progress in reducing tax evasion. Continuing the reform momentum will establish a solid foundation to address remaining crisis legacies and structural challenges arising from the rising yet still low level of overall investment, an unfavorable demographic outlook, and sluggish productivity growth. The right policy mix aimed at continuing fiscal consolidation in a growth-friendly manner, implementing ambitious reforms to address supply-side structural impediments, and further strengthening financial system resilience is essential to achieve sustainable growth in the medium to long term, while ensuring fiscal sustainability and safeguarding financial stability.

    Robust Expansion with Declining Debt

    1. The economy maintained its robust growth in 2024, supported by strong domestic demand. Real GDP expanded by 2.3 percent (year-on-year; y/y) in the first three quarters, buoyed by a strong pickup in NGEU-funded investment projects and robust private consumption underpinned by rising real income. The unemployment rate fell to 9.5 percent (seasonally adjusted) in 2024Q3, a historic low since 2009, and the vacancy rate has risen, reflecting labor shortages in a few sectors, particularly construction, tourism-related services, and high-skill sectors. The labor force participation rate has also gradually risen but remains among the lowest in EU, especially for women. Disinflation is underway at a gradual pace with headline and core inflation at 2.9 and 3.4 percent (y/y) in end-2024, respectively, amid persistent services inflation and wage growth. Along with strong economic activity, credit growth to the private sector has accelerated to 9.4 percent (y/y) in 2024Q4, accompanied by a continued increase in residential real estate prices. High domestic import demand, driven by investment, also contributed to the widening of the current account deficit to an estimated 6.9 percent of GDP in 2024.

    2. Continued fiscal consolidation and sustained progress in much-needed structural reforms have strengthened the public finances, growth potential, and energy security. By end-2024, the public debt-to-GDP ratio is estimated to have decreased by more than 50 percentage points from its peak in 2020, supported by strong growth, high inflation, and substantial fiscal consolidation. While the labor tax wedge has been reduced by about 4½ percentage points since 2019, tax revenue has remained buoyant due to the authorities’ strong progress in reducing tax evasion. The abolishment of substantial pension penalties for retirees re-entering the labor market significantly increased the number of working pensioners in 2024. Following the significant expansion of solar and wind capacity in recent years, renewable sources now account for about 50 percent of total electricity generation.

    3. The banking system has further enhanced its resilience with improved asset quality and capital adequacy. Asset quality in systemically important banks has improved further, with the NPL ratio dropping to around 3 percent in 2024Q3, facilitated by a government-sponsored securitization framework. Banks sustained high profits, which, along with capital instrument issuances, have boosted capital adequacy, although there is room for a further strengthening of voluntary capital buffers. The capital quality needs to be further improved as Deferred Tax Credit (DTC) still represents a substantial share of prudential capital. Given repayment of the Targeted Longer-Term Refinancing Operations (TLTROs) and meeting the Minimum Requirement for Own Funds and Eligible Liabilities (MREL) targets, liquidity and funding risks have been markedly reduced, with buffers well above prudential requirements and the EU average.

    4. Real GDP growth is projected to remain high at 2.1 percent in 2025, before moderating in the medium term. Investment will continue to be a key driver, supported by NGEU-funded projects. Private consumption growth will remain solid, underpinned by favorable employment and income growth. With stabilizing global energy prices, headline inflation is expected to resume its downward trend, while core inflation will be more persistent due to services inflation and wage growth. With NGEU funding set to expire against the backdrop of demographic headwinds and sluggish productivity growth, GDP growth is forecast to moderate to lower levels around 1¼ percent in the medium term. The current account deficit is expected to narrow gradually below 4 percent of GDP in the medium term, as imports are expected to slow along with the winding down of NGEU-funded investment.

    5. Risks to the growth outlook are balanced, while those to inflation are tilted upward. Potential headwinds include the growth slowdown in major euro area countries, a deterioration of regional conflicts, and global policy uncertainty. The acceleration of ambitious structural reforms could further improve growth prospects. Stronger and more persistent-than-expected wage growth could further fuel services inflation, potentially exacerbated by fluctuations in global and regional energy prices.

    Growth-friendly Fiscal Consolidation

    6. Continued fiscal consolidation would further strengthen public debt sustainability. The primary surplus is expected to remain high at around 2½ percent of GDP in 2025 as reduced revenue from an additional cut in social security contributions is expected to be broadly offset by revenue gains from reforms aimed at reducing tax evasion and increasing tax compliance. With the primary surplus remaining high at 2.3 percent of GDP in the medium term, the public debt-to-GDP ratio is projected to decrease further by about 25 percentage points to below 130 percent by 2030.

    7. Additional expenditure measures that raise efficiency would further strengthen Greece’s public finances. Continued reforms are necessary to enhance efficient public investment planning and management, including through further strengthening centralized coordination and procurement. It is essential to protect non-pension social spending, such as healthcare and education, to promote inclusive growth, while enhancing efficiency. Excessive increases in pensions and public-sector wages should be resisted by implementing recent reforms, for example by ensuring that pension increases adhere to the established indexation formula without ad hoc adjustment.

    8. There is room for additional revenue-enhancing reforms to further reduce tax evasion while enhancing the progressivity of the tax system. The Independent Authority for Public Revenue’s new medium-term strategy presents a good opportunity to further modernize tax administration and increase tax collection by continuing to leverage digitalization, which also reduces the burden of compliance. Tax policy reforms should focus on broadening the tax base and increasing tax progressivity. Additionally, inefficient tax expenditures, particularly the regressive VAT exemptions on some goods and services, should be phased out. The authorities should also consider raising carbon pricing, particularly in the transport and industry sectors, which can generate revenue for improved social protection and help address climate change and energy security by sharpening market incentives.

    9. Fiscal space created by additional measures or better-than-expected performance should be used for debt reduction as well as crucial social and capital spending. While public debt remains high, there are significant infrastructure investment needs, especially for energy security and in support of the green transition. The authorities should also consider enhancing support for crucial social expenditures, such as healthcare, and education with increased targeting toward the poor and vulnerable to promote inclusive growth.

    Structural reforms for boosting potential growth

    10. Comprehensive reforms to address structural supply-side impediments would increase productivity and medium-term growth prospects.

    • Raising labor force participation and ensuring a better skilled workforce. Increasing the availability of childcare and elderly care facilities can enable women to engage more productively in the economy. Reducing the still high tax wedge, coupled with appropriate job search and phasing out certain features of the unemployment benefit within the eligibility period, can enhance work incentives. Upgrading and scaling up the lifelong learning system with effective private sector participation, particularly in digital and green skills, as well as healthcare, can reduce skill mismatches and help alleviate bottlenecks for youth and female employment.
    • Accelerating regulatory reforms. Further reducing the regulatory burden and barriers to entry for firms, particularly in the services sector, would foster competition, increase productivity, and promote investment. Promoting business dynamism and fostering robust job creation are essential for effectively integrating new labor force entrants, particularly women, into employment. The quality of regulation needs to be improved by leveraging digitalization and enhancing regulatory impact assessments. Further enlarging and deepening the European single market would allow firms to grow to scale and lift productivity.
    • Advancing judicial system reforms. Progress in the implementation of the new insolvency framework, which is essential for addressing a large stock of crisis legacy distressed debt, has been hindered by imbalances and rigidities in the functioning of the civil judiciary system. In line with the recent judicial reform program, efforts should focus on accelerating the resolution of court cases. Such reforms would not only enhance financial sector resilience but also promote productive growth by facilitating the reallocation of capital to more productive activities and higher investment.

    11. Continued progress in green and digital transition will help achieve energy security and further boost productivity growth. Improving power connectivity with distant islands and enhancing energy efficiency in industries and transportation are essential for achieving the updated climate goals. Building on the ongoing increase in solar and wind capacity, scaling up grid networks and storage solutions will contribute to energy security by ensuring a stable power supply. More fundamentally, the completion of the EU-wide Energy Union, with a fully integrated and interconnected energy market, will remain crucial. Additionally, building on the commendable digitalization of public administration and the new national artificial intelligence strategy, the authorities should incentivize stronger adoption of digital technologies by the private sector to enhance productivity gains.

    Strengthening financial system resilience

    12. Monitoring of credit risks by banks should be further strengthened, while enhancing capital adequacy and its quality. With accelerating credit growth, supervisors should continue scrutinizing the extent to which banks deploy adequate and forward-looking provisioning policies, supported by adequate collateral valuations. Supervisors should also closely monitor how banks adapt their business models to the changing operating environment and further strengthen their risk management frameworks. Currently elevated bank profits should be primarily utilized to build capital buffers and improve the quality of capital. The recently announced initiative by banks to accelerate the amortization of DTCs will enhance bank resilience and reduce the bank-sovereign nexus.

    13. The implementation of the recently adopted comprehensive macroprudential toolkit will further strengthen the resilience of the banking sector. Staff welcomes activation of borrower-based measures (BBMs) for mortgage loans and a positive neutral countercyclical capital buffer (CCyB). The BBMs, in the form of caps on loan-to-value (LTV) and debt service-to-income (DSTI) ratios, should help contain excessive mortgage leverage buildup while limiting banks’ exposure to the housing boom, although close monitoring is warranted. Given the still relatively low combined capital buffers, the authorities could consider recalibrating the CCyB rate over the medium term to align with increasing uncertainty and enhance resilience.

    In closing, the mission would like to thank the Greek authorities and other stakeholders for their kind hospitality and for the open and productive discussions.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Eva Graf

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

    https://www.imf.org/en/News/Articles/2025/01/30/CS-Greece-2025

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Economics: Result of OMO Purchase auction held on January 30, 2025 and Settlement on January 31, 2025

    Source: Reserve Bank of India

    I. SUMMARY OMO PURCHASE RESULTS

    Aggregate Amount (Face value) notified by RBI : ₹20,000 crore
    Total amount offered (Face value) by participants : ₹1,20,626 crore
    Total amount accepted (Face value) by RBI : ₹20,020 crore

    II. DETAILS OF OMO PURCHASE ISSUE

    Security 7.59% GS 2029 7.18% GS 2033 7.10% GS 2034 6.79% GS 2034 7.18% GS 2037
    No. of offers received 33 170 117 100 181
    Total amount (face value) offered (₹ in crores) 12,492 33,760 19,491 14,147 40,736
    No. of offers accepted NIL 18 30 36 21
    Total offer amount (face value) accepted by RBI (₹ in crores) NIL 4,375 4,125 5,000 6,520
    Cut off yield (%) NA 6.7764 6.7448 6.6747 6.8521
    Cut off price (₹) NA 102.58 102.39 100.80 102.72
    Weighted average yield (%) NA 6.7803 6.7527 6.6843 6.8601
    Weighted average price (₹) NA 102.55 102.34 100.73 102.65
    Partial allotment % of competitive offers at cut off price NA NA NA 39.68 12.82

    Ajit Prasad          
    Deputy General Manager
    (Communications)    

    Press Release: 2024-2025/2046

    MIL OSI Economics –

  • MIL-OSI USA: Governor Newsom provides ongoing support to help business owners and workers recover from LA firestorms

    Source: US State of California 2

    Jan 29, 2025

    What you need to know: As part of ongoing actions to help support workers and businesses impacted by the Los Angeles area fires, Governor Newsom is issuing an executive order to defer licensing fees and streamline requirements for certain small businesses. The order also defers annual licensure fees for thousands of impacted workers – from nurses and barbers to contractors and dental hygienists.

    LOS ANGELES — To help Los Angeles continue to recover and rebuild, Governor Gavin Newsom today issued an executive order to support small business owners and workers impacted by Los Angeles-area firestorms. The executive order provides relief to help local businesses recover quickly by deferring annual licensure fees for workers and businesses and waiving other requirements that may impose barriers to recovery. 

    “Small businesses are not only key to a thriving economy but make up the heart of healthy communities. As we help Los Angeles rise and rebuild, it is crucial that we protect and support the businesses and workers affected. Just as we have removed red tape to rebuild our homes, we are breaking down barriers and helping pave the way for impacted businesses and workers to get back on their feet.”

    Governor Gavin Newsom

    The executive order helps workers and business owners by:

    • Extending the deadline to pay for renewing licenses, certificates, and permits for one year for licenses with a renewal date occurring between January 1, 2025, and July 1, 2025.
    • Waiving fees for businesses and workers requesting duplicate or replacement of a license certificate that was burned or destroyed.
    • Extending deadlines for businesses to appeal license-related proceedings.
    • Eliminating requirements that make it more difficult to relocate certain businesses impacted by the fires. 

    Find resources to help your business at gov.ca.gov/LAfires/help-your-business.

    Helping businesses and workers recover

    California has worked with federal and local providers to help businesses and workers with the resources and support they need to recover and rebuild from the firestorms.

    • Supporting workers and employers: The Employment Development Department (EDD) supports workers with unemployment, disability insurance, or Paid Family Leave benefits, including Disaster Unemployment Assistance (DUA) for those who do not qualify for regular unemployment benefits. Citizenship or immigration status doesn’t affect eligibility for disability insurance or Paid Family leave. Employers can request a 60-day extension on payroll reports and taxes, or participate in the Work Sharing program. California also announced $20 million to create temporary jobs in impacted areas and deliver other supportive services through America’s Job Center of California.
    • On-the-ground advisors for small businesses: 200+ business advisors from Small Business Support Centers funded through the California Office of the Small Business Advocate’s (CalOSBA) Technical Assistance Program (TAP) are staffed across the region, including business advisors from the Small Business Development Center (SBDC) and Women’s Business Center (WBC). All of these TAP partners can answer questions about key aspects of economic recovery, including the loan application process, insurance inquiries, employee and workforce support, and business planning related individual recovery plans.  SBDC and WBC staff are co-located at the Disaster Recovery Center at Pasadena City College and the Disaster Loan Outreach Center in Camarillo (Ventura County), as well as various Business Recovery Centers organized by the U.S. Small Business Administration (SBA).
    • Providing resources for recovery: CalOSBA has launched a Resource Guide for small businesses impacted by the wildfires through its Outsmart Disaster website, and is conducting a series of online trainings in both English and Spanish.
    • Financial assistance for businesses: The California Infrastructure and Economic Development Bank (IBank) is offering loan programs for businesses from one to 750 employees affected by the LA wildfires. Disaster Relief Loan Guarantee Program (DRLGP) issues loan guarantees up to 95% of the loan through IBank’s partner Financial Development Corporations to help small business borrowers impacted by disaster who need term loans or lines of credit for working capital. 
    • Expediting licensing for contractors: The Contractor State Licensing Board (CSLB) is processing licensing applications as fast as 48 hours from the time an application and exam are complete. Rapid licensing will support the Governor’s efforts to rebuild the homes and businesses destroyed. 
    • Helping fire survivors rebuild safely: CSLB is also partnering with state agencies to directly assist survivors at the Southern California Disaster Recovery Centers, urging them to only hire California-licensed contractors for repairs or to rebuild their homes or businesses. CSLB’s Disaster Hotline 1-800-962-1125 and online Disaster Help Center are also providing valuable support to survivors.
    • Protecting against unlicensed contractors: Investigation teams are on the ground, posting signs to put unlicensed contractors on notice that it is a felony to contract without a license in a California disaster area. Consumers are urged to always check licenses before hiring a contractor and notify the state of unlicensed activity immediately. Consumers can file complaints and find additional resources online at www2.cslb.ca.gov.
    • Helping licensees rebuild their businesses: The Board of Barbering and Cosmetology, the Board of Accountancy, and other DCA boards are rescheduling licensing examinations at no charge and assisting licensees by issuing duplicate licenses due to a physical license being lost in the fires.

    Governor Newsom has issued a number of executive orders in response to the Los Angeles firestorms to help aid in rebuilding and recovery, create more temporary housing, and protect survivors from exploitation and price gouging.

    Get help today

    For those Californians impacted by the firestorms in Los Angeles, there are resources available.Californians can go to CA.gov/LAfires – a hub for information and resources from state, local and federal government.  

    Individuals and business owners who sustained losses from wildfires in Los Angeles County can apply for disaster assistance:

    If you use a relay service, such as video relay service (VRS), captioned telephone service or others, give FEMA the number for that service.

    Recent news

    Jan 29, 2025

    News Los Angeles, California – Governor Gavin Newsom today issued a proclamation declaring January 29, 2025, as Lunar New Year.The text of the proclamation and a copy can be found below: PROCLAMATIONCalifornia joins people throughout the country and around the world…

    Jan 28, 2025

    News SACRAMENTO – Governor Gavin Newsom today announced the following appointments:Deborah Hoffman, of Sacramento, has been appointed Chief Deputy Director at the Office of Tax Appeals. Hoffman has been Special Advisor at the California Department of Veterans Affairs…

    Jan 28, 2025

    News What you need to know: Governor Newsom met today with leaders of the Pacific Palisades synagogue Kehillat Israel, which still stands after the fire. Los Angeles, California – Today, Governor Gavin Newsom met with clergy, staff, and board members of Kehillat…

    MIL OSI USA News –

  • MIL-OSI: Portman Ridge Finance Corporation and Logan Ridge Finance Corporation Enter into Merger Agreement

    Source: GlobeNewswire (MIL-OSI)

    Combined Entity Will be Managed by Sierra Crest Investment Management, LLC, an Affiliate of BC Partners Advisors L.P.

    Companies to Host a Joint Conference Call on January 30, 2025, at 4:00 PM ET to Discuss the Proposed Merger

    NEW YORK, Jan. 30, 2025 (GLOBE NEWSWIRE) — Portman Ridge Finance Corporation (NASDAQ: PTMN) (“Portman Ridge” or “PTMN”) and Logan Ridge Finance Corporation (NASDAQ: LRFC) (“Logan Ridge” or “LRFC”) (together, the “Companies”), business development companies (“BDCs”) managed by affiliates of BC Partners Advisors L.P. (“BC Partners”), announced today that they have entered into an agreement under which LRFC will merge with and into PTMN (the “Proposed Merger”), subject to the receipt of certain shareholder approvals and the satisfaction of other closing conditions. Pursuant to the Proposed Merger agreement, Portman Ridge will be the surviving public entity and will continue to trade on the Nasdaq under the symbol “PTMN.”

    The Boards of Directors of both PTMN and LRFC, on the recommendation of their respective Special Committees consisting solely of certain independent directors, have unanimously approved the Proposed Merger. In addition, the Board of Directors of LRFC will recommend that shareholders of LRFC vote in favor of the Proposed Merger, and the Board of Directors of PTMN will recommend that shareholders of PTMN vote in favor of the issuance of PTMN common stock in connection with the Proposed Merger, in each case, subject to certain conditions.

    Transaction Highlights

    • Size & Scale: The Proposed Merger will significantly increase the size and scale of Portman Ridge, which is expected to translate into increased trading volume and improved secondary liquidity, lower operating expenses and potentially greater access to more diverse sources of financing at a lower cost. The combined company will be externally managed by Sierra Crest Investment Management LLC (“Sierra Crest”), the current investment adviser to Portman Ridge, and is expected to have total assets in excess of $600 million, and a net asset value (“NAV”) of approximately $270 million, each based on the Companies’ September 30, 2024 balance sheets, adjusted for estimated transaction expenses, but excluding the impact of the Tax Distribution (as defined below).
    • Portfolio Overlap: The Proposed Merger will result in the acquisition of a known, diversified portfolio with significant portfolio overlap between the two Companies. PTMN and LRFC employ the same investment strategy, and the BC Partners Credit Platform has been allocating substantially similar or the same investments to both Companies since Mount Logan Management, LLC (“Mount Logan”) became LRFC’s external investment adviser on July 1, 2021. As a result, more than 70% of the investments in LRFC’s portfolio at fair value are expected to be BC Partners-originated assets at the time of closing, with over 60% of the portfolio overlapping with PTMN. The combination of two known, complementary portfolios, originated and managed by the BC Partners Credit Platform, is expected to substantially mitigate integration risk.
    • Accretive to NAV: Expected to be immediately accretive to PTMN’s NAV by 1.3% upon closing, based on the Companies’ September 30, 2024, NAVs and adjusted for estimated transaction expenses but excluding the impact of the Tax Distribution.
    • Accretive to Core Net Investment Income (“NII”): Expected to be immediately accretive to the Companies’ NII as result of an expected $2.8 million of annual operating expense efficiencies and the Incentive Fee Waiver (as defined below). Over the longer term, management of the Companies expects the Proposed Merger to provide further NII accretion through a lower cost of debt and improved financing terms as well as further rotation out of LRFC’s legacy non-yielding equity portfolio into interest-earning assets originated by the BC Partners Credit Platform.
    • Increased Borrowing Capacity & Optimized Debt Capital Structure: As a result of the recent refinancing of LRFC’s credit facility with KeyBank National Association (“KeyBank”), LRFC currently has additional available borrowing base that can be used for future deployment at the combined company. With LRFC’s refinanced credit facility with KeyBank and PTMN’s existing senior secured revolving credit facility with JPMorgan Chase Bank, National Association in place, the combined company is expected to be able to further optimize its debt capital structure based on differing eligibility requirements and advance rates.
    • Research Coverage: The increase in Portman Ridge’s market capitalization is expected to facilitate additional research coverage.

    Fixed Exchange Ratio

    In connection with the Proposed Merger, shareholders of LRFC will receive 1.50 newly issued shares of PTMN common stock in exchange for each share of common stock of LRFC (the “Fixed Exchange Ratio”). Based on the Fixed Exchange Ratio, using PTMN’s closing price of $16.68 per share on January 24, 2025 and excluding the impact of the Tax Distribution, the merger consideration values LRFC’s shares at $25.02 per share, which represents a 4% premium to LRFC’s January 24, 2025, closing price of $24.00 per share and a 17% premium to LRFC’s closing price of $21.43 per share on September 11, 2024 (which was the date immediately prior to the announcement of LRFC’s successful exit of its investment in Nth Degree Investment Group, LLC, an important catalyst for this transaction).

    In addition to approval by shareholders of both PTMN and LRFC, the closing of the Proposed Merger is subject to customary conditions. Further, the merger agreement provides each Special Committee a termination right that allows for either Special Committee to terminate the Proposed Merger if it has determined, reasonably and in good faith, as a result of events or other circumstances occurring or arising after the date of the signing of the Proposed Merger agreement that were not known to the applicable Board of Directors, that the interests of their respective shareholders would be diluted within the meaning of Rule 17a-8 under the Investment Company Act of 1940, as amended (the “1940 Act”), as a result of the Proposed Merger.

    The parties currently expect the Proposed Merger to be completed in the second calendar quarter of 2025.

    Additional Transaction Details

    In connection with and in support of the transaction, only if the Proposed Merger is consummated, PTMN’s external investment adviser, Sierra Crest, has agreed to waive up to $1.5 million of incentive fees over eight consecutive quarters following the closing of the Proposed Merger, subject to the satisfaction of certain conditions set forth in the definitive documentation executed between Sierra Crest and PTMN (the “Incentive Fee Waiver”).

    Prior to the anticipated closing of the Proposed Merger, PTMN and LRFC intend to declare and pay ordinary course quarterly dividends.

    Subject to the approval of LRFC’s Board of Directors and contingent upon the satisfaction of the closing conditions to the Proposed Merger, LRFC will declare a dividend to LRFC’s shareholders in an amount totaling no less than $1.0 million, but otherwise equal to any undistributed 2024 NII of LRFC estimated to be remaining as of the closing of the Proposed Merger, which management of LRFC currently expects to be between approximately $1.0 million and $1.5 million (the “Tax Distribution”).

    Management Commentary

    Ted Goldthorpe, President and Chief Executive Officer of PTMN and LRFC and Head of the BC Partners Credit Platform, stated, “I am incredibly proud to announce the proposed combination of PTMN and LRFC. Based on the September 30, 2024 net assets value of each company and inclusive of an estimated Tax Distribution, LRFC shareholders will receive merger consideration equal to approximately 98% of its September 30, 2024 net asset value. This combination is the culmination of a journey we embarked upon over three and half years ago, when shareholders of Logan Ridge placed their trust and confidence in the management team and the BC Partners Credit Platform by appointing Mount Logan to serve as the investment adviser to Logan Ridge. During this time, we have transformed LRFC’s investment portfolio by substantially reducing the non-income producing legacy equity exposure, reducing non-accruals, significantly increasing the portfolio’s diversification and growing LRFC’s exposure to credits originated by the BC Partners Credit Platform. Importantly, by the time this transaction closes and barring any unexpected repayments, we expect that more than 70% of Logan Ridge’s portfolio at fair value to be in portfolio companies financed by the BC Partners Credit Platform. Further, we have materially lowered Logan Ridge’s cost of debt capital and lowered operating expenses. The collective result of these efforts has been the stable and growing operating earnings LRFC has generated over this time, which in turn has been used to reward shareholders with a stable and growing dividend. More importantly, LRFC’s management did all of this against the backdrop of particularly challenging and uncertain market conditions. The combination of these Companies is a marquee transaction for the platform and a significant milestone for the BC Partners Credit Platform. I couldn’t be more excited for the future of the combined company.

    We believe now is the right time to combine the Companies, as we can finally do so in a manner that is expected to be accretive to both sets of shareholders. The merger will significantly increase the size and scale of Portman Ridge, which we believe will translate into increased trading volume and improved secondary liquidity, lower operating expenses and potentially greater access to more diverse sources of financing at a lower cost.

    Looking ahead, we will continue to execute our strategy of targeting inorganic growth opportunities that we believe have the potential to be earnings accretive for shareholders of both PTMN and LRFC. I look forward to updating our shareholders on the work management will be doing on this front over the course of 2025.”

    Transaction Advisors

    Keefe, Bruyette & Woods, A Stifel Company, is serving as financial advisor to the Special Committee of PTMN in connection with the transaction. Stradley Ronon Stevens & Young, LLP is acting as the legal counsel to the Special Committee of PTMN.

    Houlihan Lokey is serving as financial advisor to the Special Committee of LRFC in connection with the transaction. Skadden, Arps, Slate, Meagher & Flom LLP is acting as the legal counsel to the Special Committee of LRFC.

    Simpson Thacher & Bartlett LLP is serving as legal counsel to PTMN and LRFC with respect to the transaction. Dechert LLP serves as legal counsel to PTMN and LRFC.

    Conference Call Details

    PTMN and LRFC will host a joint conference call on Thursday, January 30, 2025, at 4:00 PM ET to discuss the transaction. All interested persons are invited to attend the call and should dial (646) 307-1963 approximately 10 minutes prior to the start of the conference call and use the conference ID 4584554. A live audio webcast of the conference call can be accessed via the Internet, on a listen-only basis on both Company’s websites, www.portmanridge.com, and www.loganridge.com, in the Investor Relations sections under Events and Presentations. The webcast can also be accessed by clicking the following link: https://edge.media-server.com/mmc/p/sx9vwkih. The online archive of the webcast will be available on the Company’s websites shortly after the call.

    The Companies will be utilizing an investor presentation as an accompaniment to the live call, which will be available on LRFC’s website at www.loganridgefinance.com and PTMN’s website at www.portmanridge.com.

    About Logan Ridge Finance Corporation

    Logan Ridge Finance Corporation (NASDAQ: LRFC) is a BDC that invests primarily in first lien loans and, to a lesser extent, second lien loans and equity securities issued by lower middle-market companies. LRFC invests in performing, well-established middle-market businesses that operate across a wide range of industries. It employs fundamental credit analysis, targeting investments in businesses with relatively low levels of cyclicality and operating risk. For more information, visit www.loganridgefinance.com.

    About Portman Ridge Finance Corporation

    Portman Ridge Finance Corporation (NASDAQ: PTMN) is a publicly traded, externally managed investment company that has elected to be regulated as a BDC under the 1940 Act. Portman Ridge’s middle market investment business originates, structures, finances and manages a portfolio of term loans, mezzanine investments and selected equity securities in middle market companies. Portman Ridge’s investment activities are managed by its investment adviser, Sierra Crest.
    Portman Ridge’s filings with the Securities and Exchange Commission (the “SEC”), earnings releases, press releases and other financial, operational and governance information are available on Portman Ridge’s website at www.portmanridge.com.

    Forward-Looking Statements

    Some of the statements in this document constitute forward-looking statements because they relate to future events, future performance or financial condition. The forward-looking statements may include statements as to future operating results of PTMN and LRFC, and distribution projections; business prospects of PTMN and LRFC, and the prospects of their portfolio companies; and the impact of the investments that PTMN and LRFC expect to make. In addition, words such as “anticipate,” “believe,” “expect,” “seek,” “plan,” “should,” “estimate,” “project” and “intend” indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this document involve risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with (i) the ability of the parties to consummate the merger on the expected timeline, or at all; (ii) the expected synergies and savings associated with the merger; (iii) the ability to realize the anticipated benefits of the merger, including the expected elimination of certain expenses and costs due to the merger; (iv) the percentage of PTMN shareholders and LRFC shareholders voting in favor of the applicable Proposal (as defined below) submitted for their approval; (v) the possibility that competing offers or acquisition proposals will be made; (vi) the possibility that any or all of the various conditions to the consummation of the merger may not be satisfied or waived; (vii) risks related to diverting management’s attention from ongoing business operations; (viii) the combined company’s plans, expectations, objectives and intentions, as a result of the merger; (ix) any potential termination of the merger agreement; (x) the future operating results and net investment income projections of PTMN, LRFC or, following the closing of the merger, the combined company; (xi) the ability of Sierra Crest to implement its future plans with respect to the combined company; (xii) the ability of Sierra Crest and its affiliates to attract and retain highly talented professionals; (xiii) the business prospects of PTMN, LRFC or, following the closing of the merger, the combined company, and the prospects of their portfolio companies; (xiv) the impact of the investments that PTMN, LRFC or, following the closing of the merger, the combined company expect to make; (xv) the ability of the portfolio companies of PTMN, LRFC or, following the closing of the merger, the combined company to achieve their objectives; (xvi) the expected financings and investments and additional leverage that PTMN, LRFC or, following the closing of the merger, the combined company may seek to incur in the future; (xvii) the adequacy of the cash resources and working capital of PTMN, LRFC or, following the closing of the merger, the combined company; (xviii) the timing of cash flows, if any, from the operations of the portfolio companies of PTMN, LRFC or, following the closing of the merger, the combined company; (xix) the risk that stockholder litigation in connection with the merger may result in significant costs of defense and liability; and (xx) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities). PTMN and LRFC have based the forward-looking statements included in this document on information available to them on the date hereof, and they assume no obligation to update any such forward-looking statements. Although PTMN and LRFC undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that they may make directly to you or through reports that PTMN and LRFC in the future may file with the SEC, including the Joint Proxy Statement and Registration Statement (in each case, as defined below), annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

    No Offer or Solicitation

    This document is not, and under no circumstances is it to be construed as, a prospectus or an advertisement and the communication of this document is not, and under no circumstances is it to be construed as, an offer to sell or a solicitation of an offer to purchase any securities in PTMN, LRFC or in any fund or other investment vehicle managed by BC Partners or any of its affiliates.

    Additional Information and Where to Find It

    This document relates to the proposed merger and certain related matters (the “Proposals”). In connection with the Proposals, PTMN will file with the SEC and mail to its and LRFC’s respective shareholders a combined joint proxy statement for PTMN and LRFC and a prospectus of PTMN (the “Registration Statement”). The Registration Statement will contain important information about PTMN, LRFC and the Proposals. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. SHAREHOLDERS OF PTMN AND LRFC ARE URGED TO READ THE REGISTRATION STATEMENT, AND OTHER DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT PTMN, LRFC AND THE PROPOSALS. Investors and security holders will be able to obtain the documents filed with the SEC free of charge at the SEC’s website, http://www.sec.gov or, for documents filed by PTMN, from PTMN’s website at https://www.portmanridge.com, and, for documents filed by LRFC, from LRFC’s website at https://www.loganridgefinance.com.

    Participants in the Solicitation

    PTMN, its directors, certain of its executive officers and certain employees and officers of Sierra Crest and its affiliates may be deemed to be participants in the solicitation of proxies in connection with the Proposals. Information about the directors and executive officers of PTMN is set forth in its proxy statement for its 2024 Annual Meeting of Stockholders, which was filed with the SEC on April 29, 2024. LRFC, its directors, certain of its executive officers and certain employees and officers of Mount Logan and its affiliates may be deemed to be participants in the solicitation of proxies in connection with the Proposals. Information about the directors and executive officers of LRFC is set forth in the proxy statement for its 2024 Annual Meeting of Stockholders, which was filed with the SEC on April 29, 2024. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of the PTMN and LRFC shareholders in connection with the Proposals will be contained in the Registration Statement, including the Joint Proxy Statement included therein, and other relevant materials when such documents become available. These documents may be obtained free of charge from the sources indicated above.

    Contacts:
    Portman Ridge Finance Corporation
    650 Madison Avenue, 3rd floor
    New York, NY 10022
    info@portmanridge.com

    Brandon Satoren
    Chief Financial Officer
    Brandon.Satoren@bcpartners.com
    (212) 891-2880

    The Equity Group Inc.
    Lena Cati
    lcati@equityny.com
    (212) 836-9611

    Val Ferraro
    vferraro@equityny.com
    (212) 836-9633

    The MIL Network –

  • MIL-OSI: First Merchants Corporation Announces Fourth Quarter 2024 Earnings Per Share

    Source: GlobeNewswire (MIL-OSI)

    MUNCIE, Ind., Jan. 30, 2025 (GLOBE NEWSWIRE) — First Merchants Corporation (NASDAQ – FRME)

    Fourth Quarter 2024 Highlights:

    • Net income available to common stockholders was $63.9 million and diluted earnings per common share totaled $1.10, compared to $48.7 million and $0.84 in the third quarter of 2024, and $42.0 million and $0.71 in the fourth quarter of 2023. Excluding the impact of the branch sale and repositioning of the available for sale securities portfolio, adjusted net income available to common stockholders1was $58.1 million or $1.00 per share for the fourth quarter of 2024.
    • Strong capital position with Common Equity Tier 1 Capital Ratio of 11.43% and Tangible Common Equity to Tangible Assets Ratio of 8.81%.
    • Net interest margin was 3.28% compared to 3.23% on a linked quarter basis and 3.16% in the fourth quarter of 2023.
    • Total loans grew $185.6 million, or 5.9% annualized, on a linked quarter basis, and $368.1 million, or 2.9% during the last twelve months.
    • Total deposits increased $156.5 million, or 4.4% annualized, on a linked quarter basis, and declined $32.4 million, or 0.2%, during the last twelve months after normalizing for deposits sold during the fourth quarter.
    • Nonperforming assets to total assets were 43 basis points compared to 35 basis points on a linked quarter basis.
    • Adjusted efficiency ratio totaled 53.60%1for the quarter.
    • Completed the sale of five Illinois branches and certain loans and deposits to Old Second National Bank on December 6, 2024.

    “The fourth quarter was a strong finish to the year and showed the momentum we have built with healthy increases in core earnings, NIM and ROA,” said Mark Hardwick, Chief Executive Officer of First Merchants Bank. “We restructured a portion of our securities portfolio and completed the Illinois branch sale to help prioritize our core markets. These actions and the completion of multiple technology initiatives in 2024 have positioned First Merchants to deliver strong results in 2025.”

    Fourth Quarter Financial Results:

    First Merchants Corporation (the “Corporation”) reported fourth quarter 2024 net income available to common stockholders of $63.9 million compared to $42.0 million during the same period in 2023. Diluted earnings per common share for the period totaled $1.10 compared to the fourth quarter of 2023 result of $0.71. Excluding non-core income and expenses incurred in each period, adjusted net income available to common stockholders1 for the fourth quarter 2024 was $58.1 million, or $1.00 diluted earnings per common share compared to $53.4 million, or $0.90 in the same period in 2023.

    During the quarter, the Corporation completed the sale of five Illinois branches along with loans of $7.4 million and deposits of $267.4 million, generating a gain of $20.0 million recorded in non-interest income. The sale of these branches represents the Corporation’s exit from suburban Chicago markets.

    Total assets equaled $18.3 billion and loans totaled $12.9 billion as of quarter-end. During the past twelve months, total loans grew by $368.1 million, or 2.9%. On a linked quarter basis, loans grew $185.6 million, or 5.9% annualized, with growth primarily in commercial loans.

    Investments totaling $3.5 billion decreased $350.7 million, or 9.2%, during the last twelve months and decreased $201.5 million on a linked quarter basis. The decline during the quarter was partially due to the sale of $109.6 million of available for sale securities with a weighted average tax-equivalent yield of 2.31%, which resulted in a loss of $11.6 million. The remaining decline for the quarter was due to security paydowns and maturities, as well as a decline in valuation of securities reflecting the movement of interest rates. Sales of available for sale securities in 2024 totaled $268.5 million and resulted in a loss of $20.8 million.

    Total deposits were $14.5 billion as of quarter-end and decreased by $299.8 million, or 2.0%, over the past twelve months. The decline was primarily due to the sale of the Illinois branches during the fourth quarter which included $267.4 million of deposits. Excluding this impact, deposits declined by $32.4 million in 2024. On a linked quarter basis, deposits grew by $156.5 million, or 4.4% annualized. The loan to deposit ratio increased slightly to 88.5% at period end from 88.0% in the prior quarter.

    The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $192.8 million as of quarter-end, or 1.50% of total loans, an increase of $4.9 million from prior quarter. Loan charge-offs, net of recoveries totaled $0.8 million and provision for loans of $5.7 million was recorded during the quarter. Reserves for unfunded commitments totaled $18.0 million declining during the quarter due to reserve release of $1.5 million. Net provision for the quarter totaled $4.2 million. Non-performing assets to total assets were 43 basis points for the fourth quarter of 2024, an increase of eight basis points compared to 35 basis points in the prior quarter.

    Net interest income totaled $134.4 million for the quarter, an increase of $3.3 million, or 2.5%, compared to the prior quarter and an increase of $4.3 million, or 3.3%, compared to the fourth quarter of 2023. Fully taxable equivalent net interest margin was 3.28%, an increase of five basis points compared to the third quarter of 2024, and an increase of 12 basis points compared to the fourth quarter of 2023. The increase in net interest margin compared to the third quarter was due to lower funding costs and a more favorable earning asset and funding mix.

    Noninterest income totaled $42.7 million for the quarter, an increase of $17.9 million compared to the third quarter of 2024 and an increase of $16.3 million compared to the fourth quarter of 2023. When excluding non-core income from each period, noninterest income totaled $34.4 million for the quarter, an increase of $0.4 million compared to third quarter of 2024, and an increase of $5.6 million compared to the fourth quarter of 2023. The increase in core noninterest income over the fourth quarter of 2023 was primarily due to an increase in gains on sales of loans and CRA investment income.

    Noninterest expense totaled $96.3 million for the quarter, an increase of $1.7 million from the third quarter of 2024 and a decrease of $11.8 million from the fourth quarter of 2023. The increase in the linked quarter was from higher marketing costs and other one-time operating expenses. The decrease from the fourth quarter of 2023 was due to one-time charges incurred in the prior year which included an FDIC special assessment, early retirement and severance costs, and a lease termination.

    The Corporation’s total risk-based capital ratio totaled 13.31%, common equity tier 1 capital ratio totaled 11.43%, and the tangible common equity ratio totaled 8.81%. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

    1 See “Non-GAAP Financial Information” for reconciliation

    CONFERENCE CALL

    First Merchants Corporation will conduct a fourth quarter earnings conference call and webcast at 11:30 a.m. (ET) on Thursday, January 30, 2025.

    To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register.vevent.com/register/BIc49ad0293a7844dca2e7171f51e600dd95f36e86b6)

    To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/9t5v76m2) during the time of the call. A replay of the webcast will be available until January 30, 2026.

    Detailed financial results are reported on the attached pages.

    About First Merchants Corporation

    First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).

    First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).

    FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.

    Forward-Looking Statements

    This release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These statements include statements about First Merchants’ goals, intentions and expectations; statements regarding the First Merchants’ business plan and growth strategies; statements regarding the asset quality of First Merchants’ loan and investment portfolios; and estimates of First Merchants’ risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants’ affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity (including the ability to grow and maintain core deposits and retain large, uninsured deposits), credit and interest rate risks associated with the First Merchants’ business; and other risks and factors identified in each of First Merchants’ filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants’ past results of operations do not necessarily indicate its anticipated future results.

    CONSOLIDATED BALANCE SHEETS      
    (Dollars In Thousands) December 31,
        2024       2023  
    ASSETS      
    Cash and due from banks $ 87,616     $ 112,649  
    Interest-bearing deposits   298,891       436,080  
    Investment securities, net of allowance for credit losses of $245,000 and $245,000   3,460,695       3,811,364  
    Loans held for sale   18,663       18,934  
    Loans   12,854,359       12,486,027  
    Less: Allowance for credit losses – loans   (192,757 )     (204,934 )
    Net loans   12,661,602       12,281,093  
    Premises and equipment   129,743       133,896  
    Federal Home Loan Bank stock   41,690       41,769  
    Interest receivable   91,829       97,664  
    Goodwill and other intangibles   731,830       739,101  
    Cash surrender value of life insurance   304,906       306,301  
    Other real estate owned   4,948       4,831  
    Tax asset, deferred and receivable   92,387       99,883  
    Other assets   387,169       322,322  
    TOTAL ASSETS $ 18,311,969     $ 18,405,887  
    LIABILITIES      
    Deposits:      
    Noninterest-bearing $ 2,325,579     $ 2,500,062  
    Interest-bearing   12,196,047       12,321,391  
    Total Deposits   14,521,626       14,821,453  
    Borrowings:      
    Federal funds purchased   99,226       —  
    Securities sold under repurchase agreements   142,876       157,280  
    Federal Home Loan Bank advances   822,554       712,852  
    Subordinated debentures and other borrowings   93,529       158,644  
    Total Borrowings   1,158,185       1,028,776  
    Interest payable   16,102       18,912  
    Other liabilities   311,073       289,033  
    Total Liabilities   16,006,986       16,158,174  
    STOCKHOLDERS’ EQUITY      
    Preferred Stock, $1,000 par value, $1,000 liquidation value:      
    Authorized — 600 cumulative shares      
    Issued and outstanding – 125 cumulative shares   125       125  
    Preferred Stock, Series A, no par value, $2,500 liquidation preference:      
    Authorized — 10,000 non-cumulative perpetual shares      
    Issued and outstanding – 10,000 non-cumulative perpetual shares   25,000       25,000  
    Common Stock, $.125 stated value:      
    Authorized — 100,000,000 shares      
    Issued and outstanding – 57,974,535 and 59,424,122 shares   7,247       7,428  
    Additional paid-in capital   1,188,768       1,236,506  
    Retained earnings   1,272,528       1,154,624  
    Accumulated other comprehensive loss   (188,685 )     (175,970 )
    Total Stockholders’ Equity   2,304,983       2,247,713  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,311,969     $ 18,405,887  
     
    CONSOLIDATED STATEMENTS OF INCOME Three Months Ended   Twelve Months Ended
    (Dollars In Thousands, Except Per Share Amounts) December 31,   December 31,
        2024       2023       2024       2023  
    INTEREST INCOME              
    Loans:              
    Taxable $ 197,536     $ 197,523     $ 803,652     $ 747,837  
    Tax-exempt   9,020       8,197       34,262       31,954  
    Investment securities:              
    Taxable   9,024       8,644       36,086       35,207  
    Tax-exempt   12,754       13,821       53,487       58,117  
    Deposits with financial institutions   5,350       8,034       16,992       17,719  
    Federal Home Loan Bank stock   958       771       3,527       3,052  
    Total Interest Income   234,642       236,990       948,006       893,886  
    INTEREST EXPENSE              
    Deposits   89,835       96,655       386,127       306,092  
    Federal funds purchased   26       1       481       1,421  
    Securities sold under repurchase agreements   680       827       3,057       3,451  
    Federal Home Loan Bank advances   8,171       6,431       29,886       27,206  
    Subordinated debentures and other borrowings   1,560       3,013       7,341       10,316  
    Total Interest Expense   100,272       106,927       426,892       348,486  
    NET INTEREST INCOME   134,370       130,063       521,114       545,400  
    Provision for credit losses   4,200       1,500       35,700       3,500  
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   130,170       128,563       485,414       541,900  
    NONINTEREST INCOME              
    Service charges on deposit accounts   8,124       7,690       32,606       30,837  
    Fiduciary and wealth management fees   8,665       8,187       34,215       30,840  
    Card payment fees   4,957       4,437       19,317       18,862  
    Net gains and fees on sales of loans   5,681       4,111       20,840       15,659  
    Derivative hedge fees   1,594       1,049       3,082       3,385  
    Other customer fees   316       237       1,547       1,880  
    Earnings on cash surrender value of life insurance   2,188       3,202       8,464       8,347  
    Net realized losses on sales of available for sale securities   (11,592 )     (2,317 )     (20,757 )     (6,930 )
    Gain on branch sale   19,983       —       19,983       —  
    Other income (loss)   2,826       (152 )     6,283       2,722  
    Total Noninterest Income   42,742       26,444       125,580       105,602  
    NONINTEREST EXPENSES              
    Salaries and employee benefits   55,437       60,967       221,167       228,745  
    Net occupancy   7,335       9,089       28,387       29,859  
    Equipment   7,028       6,108       26,802       24,113  
    Marketing   2,582       2,647       7,389       7,427  
    Outside data processing fees   6,029       5,875       27,140       25,165  
    Printing and office supplies   377       402       1,462       1,552  
    Intangible asset amortization   1,771       2,182       7,271       8,743  
    FDIC assessments   3,744       7,557       15,029       14,674  
    Other real estate owned and foreclosure expenses   227       1,743       2,076       3,318  
    Professional and other outside services   3,777       3,981       14,586       16,172  
    Other expenses   7,982       7,552       27,957       28,502  
    Total Noninterest Expenses   96,289       108,103       379,266       388,270  
    INCOME BEFORE INCOME TAX   76,623       46,904       231,728       259,232  
    Income tax expense   12,274       4,425       30,326       35,446  
    NET INCOME   64,349       42,479       201,402       223,786  
    Preferred stock dividends   469       469       1,875       1,875  
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 63,880     $ 42,010     $ 199,527     $ 221,911  
    Per Share Data:              
    Basic Net Income Available to Common Stockholders $ 1.10     $ 0.71     $ 3.42     $ 3.74  
    Diluted Net Income Available to Common Stockholders $ 1.10     $ 0.71     $ 3.41     $ 3.73  
    Cash Dividends Paid to Common Stockholders $ 0.35     $ 0.34     $ 1.39     $ 1.34  
    Average Diluted Common Shares Outstanding (in thousands)   58,247       59,556       58,533       59,489  
     
    FINANCIAL HIGHLIGHTS              
    (Dollars in thousands) Three Months Ended   Twelve Months Ended
      December 31,   December 31,
        2024       2023       2024       2023  
    NET CHARGE-OFFS $ 771     $ 3,148     $ 49,377     $ 25,643  
                   
    AVERAGE BALANCES:              
    Total Assets $ 18,478,303     $ 18,397,200     $ 18,400,495     $ 18,186,507  
    Total Loans   12,757,676       12,396,451       12,634,324       12,297,974  
    Total Earning Assets   17,089,198       17,222,714       17,054,267       16,991,787  
    Total Deposits   14,788,294       15,000,580       14,816,564       14,721,498  
    Total Stockholders’ Equity   2,312,270       2,130,993       2,252,491       2,127,262  
                   
    FINANCIAL RATIOS:              
    Return on Average Assets   1.39 %     0.92 %     1.09 %     1.23 %
    Return on Average Stockholders’ Equity   11.05       7.89       8.86       10.43  
    Return on Tangible Common Stockholders’ Equity   16.75       12.75       13.71       16.76  
    Average Earning Assets to Average Assets   92.48       93.62       92.68       93.43  
    Allowance for Credit Losses – Loans as % of Total Loans   1.50       1.64       1.50       1.64  
    Net Charge-offs as % of Average Loans (Annualized)   0.02       0.10       0.39       0.21  
    Average Stockholders’ Equity to Average Assets   12.51       11.58       12.24       11.70  
    Tax Equivalent Yield on Average Earning Assets   5.63       5.64       5.69       5.40  
    Interest Expense/Average Earning Assets   2.35       2.48       2.50       2.05  
    Net Interest Margin (FTE) on Average Earning Assets   3.28       3.16       3.19       3.35  
    Efficiency Ratio   48.48       63.26       53.55       55.17  
    Tangible Common Book Value Per Share $ 26.78     $ 25.06     $ 26.78     $ 25.06  
     
    NONPERFORMING ASSETS                  
    (Dollars In Thousands) December 31,   September 30,   June 30,   March 31,   December 31,
        2024       2024       2024       2024       2023  
    Nonaccrual Loans $ 73,773     $ 59,088     $ 61,906     $ 62,478     $ 53,580  
    Other Real Estate Owned and Repossessions   4,948       5,247       4,824       4,886       4,831  
    Nonperforming Assets (NPA)   78,721       64,335       66,730       67,364       58,411  
    90+ Days Delinquent   5,902       14,105       1,686       2,838       172  
    NPAs & 90 Day Delinquent $ 84,623     $ 78,440     $ 68,416     $ 70,202     $ 58,583  
                       
    Allowance for Credit Losses – Loans $ 192,757     $ 187,828     $ 189,537     $ 204,681     $ 204,934  
    Quarterly Net Charge-offs   771       6,709       39,644       2,253       3,148  
    NPAs / Actual Assets %   0.43 %     0.35 %     0.36 %     0.37 %     0.32 %
    NPAs & 90 Day / Actual Assets %   0.46 %     0.43 %     0.37 %     0.38 %     0.32 %
    NPAs / Actual Loans and OREO %   0.61 %     0.51 %     0.53 %     0.54 %     0.47 %
    Allowance for Credit Losses – Loans / Actual Loans (%)   1.50 %     1.48 %     1.50 %     1.64 %     1.64 %
    Net Charge-offs as % of Average Loans (Annualized)   0.02 %     0.21 %     1.26 %     0.07 %     0.10 %
     
    CONSOLIDATED BALANCE SHEETS                  
    (Dollars In Thousands) December 31,   September 30,   June 30,   March 31,   December 31,
        2024       2024       2024       2024       2023  
    ASSETS                  
    Cash and due from banks $ 87,616     $ 84,719     $ 105,372     $ 100,514     $ 112,649  
    Interest-bearing deposits   298,891       359,126       168,528       410,497       436,080  
    Investment securities, net of allowance for credit losses   3,460,695       3,662,145       3,753,088       3,783,574       3,811,364  
    Loans held for sale   18,663       40,652       32,292       15,118       18,934  
    Loans   12,854,359       12,646,808       12,639,650       12,465,582       12,486,027  
    Less: Allowance for credit losses – loans   (192,757 )     (187,828 )     (189,537 )     (204,681 )     (204,934 )
    Net loans   12,661,602       12,458,980       12,450,113       12,260,901       12,281,093  
    Premises and equipment   129,743       129,582       133,245       132,706       133,896  
    Federal Home Loan Bank stock   41,690       41,716       41,738       41,758       41,769  
    Interest receivable   91,829       92,055       97,546       92,550       97,664  
    Goodwill and other intangibles   731,830       733,601       735,373       737,144       739,101  
    Cash surrender value of life insurance   304,906       304,613       306,379       306,028       306,301  
    Other real estate owned   4,948       5,247       4,824       4,886       4,831  
    Tax asset, deferred and receivable   92,387       86,732       107,080       101,121       99,883  
    Other assets   387,169       348,384       367,845       331,006       322,322  
    TOTAL ASSETS $ 18,311,969     $ 18,347,552     $ 18,303,423     $ 18,317,803     $ 18,405,887  
    LIABILITIES                  
    Deposits:                  
    Noninterest-bearing $ 2,325,579     $ 2,334,197     $ 2,303,313     $ 2,338,364     $ 2,500,062  
    Interest-bearing   12,196,047       12,030,903       12,265,757       12,546,220       12,321,391  
    Total Deposits   14,521,626       14,365,100       14,569,070       14,884,584       14,821,453  
    Borrowings:                  
    Federal funds purchased   99,226       30,000       147,229       —       —  
    Securities sold under repurchase agreements   142,876       124,894       100,451       130,264       157,280  
    Federal Home Loan Bank advances   822,554       832,629       832,703       612,778       712,852  
    Subordinated debentures and other borrowings   93,529       93,562       93,589       118,612       158,644  
    Total Borrowings   1,158,185       1,081,085       1,173,972       861,654       1,028,776  
    Deposits and other liabilities held for sale   —       288,476       —       —       —  
    Interest payable   16,102       18,089       18,554       19,262       18,912  
    Other liabilities   311,073       292,429       329,302       327,500       289,033  
    Total Liabilities   16,006,986       16,045,179       16,090,898       16,093,000       16,158,174  
    STOCKHOLDERS’ EQUITY                  
    Preferred Stock, $1,000 par value, $1,000 liquidation value:                  
    Authorized — 600 cumulative shares                  
    Issued and outstanding – 125 cumulative shares   125       125       125       125       125  
    Preferred Stock, Series A, no par value, $2,500 liquidation preference:                  
    Authorized — 10,000 non-cumulative perpetual shares                  
    Issued and outstanding – 10,000 non-cumulative perpetual shares   25,000       25,000       25,000       25,000       25,000  
    Common Stock, $.125 stated value:                  
    Authorized — 100,000,000 shares                  
    Issued and outstanding   7,247       7,265       7,256       7,321       7,428  
    Additional paid-in capital   1,188,768       1,192,683       1,191,193       1,208,447       1,236,506  
    Retained earnings   1,272,528       1,229,125       1,200,930       1,181,939       1,154,624  
    Accumulated other comprehensive loss   (188,685 )     (151,825 )     (211,979 )     (198,029 )     (175,970 )
    Total Stockholders’ Equity   2,304,983       2,302,373       2,212,525       2,224,803       2,247,713  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,311,969     $ 18,347,552     $ 18,303,423     $ 18,317,803     $ 18,405,887  
                       
    CONSOLIDATED STATEMENTS OF INCOME                  
    (Dollars In Thousands, Except Per Share Amounts) December 31,   September 30,   June 30,   March 31,   December 31,
        2024       2024       2024       2024       2023  
    INTEREST INCOME                  
    Loans:                  
    Taxable $ 197,536     $ 206,680     $ 201,413     $ 198,023     $ 197,523  
    Tax-exempt   9,020       8,622       8,430       8,190       8,197  
    Investment securities:                  
    Taxable   9,024       9,263       9,051       8,748       8,644  
    Tax-exempt   12,754       13,509       13,613       13,611       13,821  
    Deposits with financial institutions   5,350       2,154       2,995       6,493       8,034  
    Federal Home Loan Bank stock   958       855       879       835       771  
    Total Interest Income   234,642       241,083       236,381       235,900       236,990  
    INTEREST EXPENSE                  
    Deposits   89,835       98,856       99,151       98,285       96,655  
    Federal funds purchased   26       329       126       —       1  
    Securities sold under repurchase agreements   680       700       645       1,032       827  
    Federal Home Loan Bank advances   8,171       8,544       6,398       6,773       6,431  
    Subordinated debentures and other borrowings   1,560       1,544       1,490       2,747       3,013  
    Total Interest Expense   100,272       109,973       107,810       108,837       106,927  
    NET INTEREST INCOME   134,370       131,110       128,571       127,063       130,063  
    Provision for credit losses   4,200       5,000       24,500       2,000       1,500  
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   130,170       126,110       104,071       125,063       128,563  
    NONINTEREST INCOME                  
    Service charges on deposit accounts   8,124       8,361       8,214       7,907       7,690  
    Fiduciary and wealth management fees   8,665       8,525       8,825       8,200       8,187  
    Card payment fees   4,957       5,121       4,739       4,500       4,437  
    Net gains and fees on sales of loans   5,681       6,764       5,141       3,254       4,111  
    Derivative hedge fees   1,594       736       489       263       1,049  
    Other customer fees   316       344       460       427       237  
    Earnings on cash surrender value of life insurance   2,188       2,755       1,929       1,592       3,202  
    Net realized losses on sales of available for sale securities   (11,592 )     (9,114 )     (49 )     (2 )     (2,317 )
    Gain on branch sale   19,983       —       —       —       —  
    Other income (loss)   2,826       1,374       1,586       497       (152 )
    Total Noninterest Income   42,742       24,866       31,334       26,638       26,444  
    NONINTEREST EXPENSES                  
    Salaries and employee benefits   55,437       55,223       52,214       58,293       60,967  
    Net occupancy   7,335       6,994       6,746       7,312       9,089  
    Equipment   7,028       6,949       6,599       6,226       6,108  
    Marketing   2,582       1,836       1,773       1,198       2,647  
    Outside data processing fees   6,029       7,150       7,072       6,889       5,875  
    Printing and office supplies   377       378       354       353       402  
    Intangible asset amortization   1,771       1,772       1,771       1,957       2,182  
    FDIC assessments   3,744       3,720       3,278       4,287       7,557  
    Other real estate owned and foreclosure expenses   227       942       373       534       1,743  
    Professional and other outside services   3,777       3,035       3,822       3,952       3,981  
    Other expenses   7,982       6,630       7,411       5,934       7,552  
    Total Noninterest Expenses   96,289       94,629       91,413       96,935       108,103  
    INCOME BEFORE INCOME TAX   76,623       56,347       43,992       54,766       46,904  
    Income tax expense   12,274       7,160       4,067       6,825       4,425  
    NET INCOME   64,349       49,187       39,925       47,941       42,479  
    Preferred stock dividends   469       468       469       469       469  
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 63,880     $ 48,719     $ 39,456     $ 47,472     $ 42,010  
    Per Share Data:                  
    Basic Net Income Available to Common Stockholders $ 1.10     $ 0.84     $ 0.68     $ 0.80     $ 0.71  
    Diluted Net Income Available to Common Stockholders $ 1.10     $ 0.84     $ 0.68     $ 0.80     $ 0.71  
    Cash Dividends Paid to Common Stockholders $ 0.35     $ 0.35     $ 0.35     $ 0.34     $ 0.34  
    Average Diluted Common Shares Outstanding (in thousands)   58,247       58,289       58,328       59,273       59,556  
    FINANCIAL RATIOS:                  
    Return on Average Assets   1.39 %     1.07 %     0.87 %     1.04 %     0.92 %
    Return on Average Stockholders’ Equity   11.05       8.66       7.16       8.47       7.89  
    Return on Tangible Common Stockholders’ Equity   16.75       13.39       11.29       13.21       12.75  
    Average Earning Assets to Average Assets   92.48       92.54       92.81       92.91       93.62  
    Allowance for Credit Losses – Loans as % of Total Loans   1.50       1.48       1.50       1.64       1.64  
    Net Charge-offs as % of Average Loans (Annualized)   0.02       0.21       1.26       0.07       0.10  
    Average Stockholders’ Equity to Average Assets   12.51       12.26       12.02       12.17       11.58  
    Tax Equivalent Yield on Average Earning Assets   5.63       5.82       5.69       5.65       5.64  
    Interest Expense/Average Earning Assets   2.35       2.59       2.53       2.55       2.48  
    Net Interest Margin (FTE) on Average Earning Assets   3.28       3.23       3.16       3.10       3.16  
    Efficiency Ratio   48.48       53.76       53.84       59.21       63.26  
    Tangible Common Book Value Per Share $ 26.78     $ 26.64     $ 25.10     $ 25.07     $ 25.06  
    LOANS                  
    (Dollars In Thousands) December 31,   September 30,   June 30,   March 31,   December 31,
        2024       2024       2024       2024       2023  
    Commercial and industrial loans $ 4,114,292     $ 4,041,217     $ 3,949,817     $ 3,722,365     $ 3,670,948  
    Agricultural land, production and other loans to farmers   256,312       238,743       239,926       234,431       263,414  
    Real estate loans:                  
    Construction   792,144       814,704       823,267       941,726       957,545  
    Commercial real estate, non-owner occupied   2,274,016       2,251,351       2,323,533       2,368,360       2,400,839  
    Commercial real estate, owner occupied   1,157,944       1,152,751       1,174,195       1,137,894       1,162,083  
    Residential   2,374,729       2,366,943       2,370,905       2,316,490       2,288,921  
    Home equity   659,811       641,188       631,104       618,258       617,571  
    Individuals’ loans for household and other personal expenditures   166,028       158,480       162,089       161,459       168,388  
    Public finance and other commercial loans   1,059,083       981,431       964,814       964,599       956,318  
    Loans   12,854,359       12,646,808       12,639,650       12,465,582       12,486,027  
    Allowance for credit losses – loans   (192,757 )     (187,828 )     (189,537 )     (204,681 )     (204,934 )
    NET LOANS $ 12,661,602     $ 12,458,980     $ 12,450,113     $ 12,260,901     $ 12,281,093  
     
    DEPOSITS                  
    (Dollars In Thousands) December 31,   September 30,   June 30,   March 31,   December 31,
      2024   2024   2024   2024   2023
    Demand deposits $ 7,980,061   $ 7,678,510   $ 7,757,679   $ 7,771,976   $ 7,965,862
    Savings deposits   4,522,758     4,302,236     4,339,161     4,679,593     4,516,433
    Certificates and other time deposits of $100,000 or more   1,043,068     1,277,833     1,415,131     1,451,443     1,408,985
    Other certificates and time deposits   692,068     802,949     889,949     901,280     849,906
    Brokered certificates of deposits1   283,671     303,572     167,150     80,292     80,267
    TOTAL DEPOSITS2 $ 14,521,626   $ 14,365,100   $ 14,569,070   $ 14,884,584   $ 14,821,453

    1 – Total brokered deposits of $955.7 million, which includes brokered CD’s of $283.7 million at December 31, 2024.
    2 – Total deposits at September 30, 2024 excluded $287.7 million of deposits reclassified to Deposits and other liabilities held for sale related to the Illinois branch sale. The sale of $267.4 million of deposits associated with the Illinois branch sale was subsequently completed on December 6, 2024.

    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS            
    (Dollars in Thousands)                      
      For the Three Months Ended
      December 31, 2024   December 31, 2023
      Average Balance   Interest
    Income /
    Expense    		   Average
    Rate    		   Average Balance   Interest
    Income /
    Expense    		   Average
    Rate
    ASSETS                      
    Interest-bearing deposits $ 522,868   $ 5,350   4.09 %   $ 700,705   $ 8,034   4.59 %
    Federal Home Loan Bank stock   41,703     958   9.19       41,792     771   7.38  
    Investment Securities:(1)                      
    Taxable   1,677,554     9,024   2.15       1,801,533     8,644   1.92  
    Tax-exempt(2)   2,089,397     16,144   3.09       2,282,233     17,495   3.07  
    Total Investment Securities   3,766,951     25,168   2.67       4,083,766     26,139   2.56  
    Loans held for sale   36,219     550   6.07       16,355     246   6.02  
    Loans:(3)                      
    Commercial   8,753,723     156,414   7.15       8,533,233     159,190   7.46  
    Real estate mortgage   2,177,351     24,401   4.48       2,118,060     21,829   4.12  
    HELOC and installment   841,537     16,171   7.69       820,728     16,258   7.92  
    Tax-exempt(2)   948,846     11,418   4.81       908,075     10,376   4.57  
    Total Loans   12,757,676     208,954   6.55       12,396,451     207,899   6.71  
    Total Earning Assets   17,089,198     240,430   5.63 %     17,222,714     242,843   5.64 %
    Total Non-Earning Assets   1,389,105             1,174,486        
    TOTAL ASSETS $ 18,478,303           $ 18,397,200        
    LIABILITIES                      
    Interest-Bearing Deposits:                      
    Interest-bearing deposits $ 5,564,228   $ 37,049   2.66 %   $ 5,504,725   $ 40,996   2.98 %
    Money market deposits   3,189,334     25,463   3.19       3,096,085     27,909   3.61  
    Savings deposits   1,362,705     3,102   0.91       1,587,758     3,913   0.99  
    Certificates and other time deposits   2,313,284     24,221   4.19       2,225,528     23,837   4.28  
    Total Interest-Bearing Deposits   12,429,551     89,835   2.89       12,414,096     96,655   3.11  
    Borrowings   1,049,677     10,437   3.98       1,013,856     10,272   4.05  
    Total Interest-Bearing Liabilities   13,479,228     100,272   2.98       13,427,952     106,927   3.19  
    Noninterest-bearing deposits   2,358,743             2,586,484        
    Other liabilities   328,062             251,771        
    Total Liabilities   16,166,033             16,266,207        
    STOCKHOLDERS’ EQUITY   2,312,270             2,130,993        
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,478,303     100,272       $ 18,397,200     106,927    
    Net Interest Income (FTE)     $ 140,158           $ 135,916    
    Net Interest Spread (FTE)(4)         2.65 %           2.45 %
                           
    Net Interest Margin (FTE):                      
    Interest Income (FTE) / Average Earning Assets         5.63 %           5.64 %
    Interest Expense / Average Earning Assets         2.35 %           2.48 %
    Net Interest Margin (FTE)(5)         3.28 %           3.16 %
                           
    (1)Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
    (2)Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2024 and 2023. These totals equal $5,788 and $5,853 for the three months ended December 31, 2024 and 2023, respectively.
    (3)Non accruing loans have been included in the average balances.
    (4)Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
    (5)Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.
     
                           
    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS            
    (Dollars in Thousands)                      
      For the Twelve Months Ended
      December 31, 2024   December 31, 2023
      Average Balance   Interest
    Income /
    Expense    		   Average
    Rate    		   Average Balance   Interest
    Income /
    Expense    		   Average
    Rate
    Assets:                      
    Interest-bearing deposits $ 418,163   $ 16,992   4.06 %   $ 431,581   $ 17,719   4.11 %
    Federal Home Loan Bank stock   41,736     3,527   8.45       41,319     3,052   7.39  
    Investment Securities:(1)                      
    Taxable   1,759,578     36,086   2.05       1,854,438     35,207   1.90  
    Tax-exempt(2)   2,200,466     67,705   3.08       2,366,475     73,566   3.11  
    Total Investment Securities   3,960,044     103,791   2.62       4,220,913     108,773   2.58  
    Loans held for sale   29,650     1,792   6.04       21,766     1,292   5.94  
    Loans:(3)                      
    Commercial   8,687,638     641,393   7.38       8,519,706     603,611   7.08  
    Real estate mortgage   2,158,743     94,890   4.40       2,035,488     82,183   4.04  
    HELOC and installment   830,079     65,577   7.90       830,006     60,751   7.32  
    Tax-exempt(2)   928,214     43,370   4.67       891,008     40,448   4.54  
    Total Loans   12,634,324     847,022   6.70       12,297,974     788,285   6.41  
    Total Earning Assets   17,054,267     971,332   5.69 %     16,991,787     917,829   5.40 %
    Total Non-Earning Assets   1,346,228             1,194,720        
    Total Assets $ 18,400,495           $ 18,186,507        
    Liabilities:                      
    Interest-Bearing deposits:                      
    Interest-bearing deposits $ 5,506,492   $ 157,984   2.87 %   $ 5,435,733   $ 138,012   2.54 %
    Money market deposits   3,061,461     106,026   3.46       2,884,271     83,777   2.90  
    Savings deposits   1,463,707     14,587   1.00       1,694,230     14,606   0.86  
    Certificates and other time deposits   2,413,900     107,530   4.45       1,923,268     69,697   3.62  
    Total Interest-Bearing Deposits   12,445,560     386,127   3.10       11,937,502     306,092   2.56  
    Borrowings   1,005,017     40,765   4.06       1,111,472     42,394   3.81  
    Total Interest-Bearing Liabilities   13,450,577     426,892   3.17       13,048,974     348,486   2.67  
    Noninterest-bearing deposits   2,371,004             2,783,996        
    Other liabilities   326,423             226,275        
    Total Liabilities   16,148,004             16,059,245        
    Stockholders’ Equity   2,252,491             2,127,262        
    Total Liabilities and Stockholders’ Equity $ 18,400,495     426,892       $ 18,186,507     348,486    
    Net Interest Income (FTE)     $ 544,440           $ 569,343    
    Net Interest Spread (FTE)(4)         2.52 %           2.73 %
                           
    Net Interest Margin (FTE):                      
    Interest Income (FTE) / Average Earning Assets         5.69 %           5.40 %
    Interest Expense / Average Earning Assets         2.50 %           2.05 %
    Net Interest Margin (FTE)(5)         3.19 %           3.35 %
                           
    (1)Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
    (2)Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2024 and 2023. These totals equal $23,326 and $23,943 for the years ended December 31, 2024 and 2023, respectively.
    (3)Non accruing loans have been included in the average balances.           
    (4)Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
    (5)Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.
     
    ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE – NON-GAAP
    (Dollars In Thousands, Except Per Share Amounts) Three Months Ended   Twelve Months Ended
      December 31,   September 30,   June 30,   March 31,   December 31,   December 31,   December 31,
        2024       2024       2024       2024       2023       2024       2023  
    Net Income Available to Common Stockholders – GAAP $ 63,880     $ 48,719     $ 39,456     $ 47,472     $ 42,010     $ 199,527     $ 221,911  
    Adjustments:                          
    PPP loan income   —       —       —       —       (7 )     —       (49 )
    Net realized losses on sales of available for sale securities   11,592       9,114       49       2       2,317       20,757       6,930  
    Gain on branch sale   (19,983 )     —       —       —       —       (19,983 )     —  
    Non-core expenses1,2,3   762       —       —       3,481       12,682       4,243       12,682  
    Tax on adjustments   1,851       (2,220 )     (12 )     (848 )     (3,652 )     (1,229 )     (4,767 )
    Adjusted Net Income Available to Common Stockholders – Non-GAAP $ 58,102     $ 55,613     $ 39,493     $ 50,107     $ 53,350     $ 203,315     $ 236,707  
                               
    Average Diluted Common Shares Outstanding (in thousands)   58,247       58,289       58,328       59,273       59,556       58,533       59,489  
                               
    Diluted Earnings Per Common Share – GAAP $ 1.10     $ 0.84     $ 0.68     $ 0.80     $ 0.71     $ 3.41     $ 3.73  
    Adjustments:                          
    PPP loan income   —       —       —       —       —       —       —  
    Net realized losses on sales of available for sale securities   0.20       0.15       —       —       0.04       0.35       0.12  
    Gain on branch sale   (0.34 )     —       —       —       —       (0.34 )     —  
    Non-core expenses1,2,3   0.01       —       —       0.06       0.21       0.07       0.21  
    Tax on adjustments   0.03       (0.04 )     —       (0.01 )     (0.06 )     (0.02 )     (0.08 )
    Adjusted Diluted Earnings Per Common Share – Non-GAAP $ 1.00     $ 0.95     $ 0.68     $ 0.85     $ 0.90     $ 3.47     $ 3.98  

    1 – Non-core expenses in 4Q24 included $0.8 million of costs directly related to the branch sale.
    2 – Non-core expenses in 1Q24 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.
    3 – Non-core expenses in 4Q23 included $6.3 million from early retirement and severance costs, $4.3 million from the FDIC special assessment, and $2.1 million from a lease termination.

    NET INTEREST MARGIN (“NIM”), ADJUSTED                
    (Dollars in Thousands)                
      Three Months Ended   Twelve Months Ended
      December 31,   September 30,   June 30,   March 31,   December 31,   December 31,   December 31,
        2024       2024       2024       2024       2023       2024       2023  
    Net Interest Income (GAAP) $ 134,370     $ 131,110     $ 128,571     $ 127,063     $ 130,063     $ 521,114     $ 545,400  
    Fully Taxable Equivalent (“FTE”) Adjustment   5,788       5,883       5,859       5,795       5,853       23,326       23,943  
    Net Interest Income (FTE) (non-GAAP) $ 140,158     $ 136,993     $ 134,430     $ 132,858     $ 135,916     $ 544,440     $ 569,343  
                               
    Average Earning Assets (GAAP) $ 17,089,198     $ 16,990,358     $ 17,013,984     $ 17,123,851     $ 17,222,714     $ 17,054,267     $ 16,991,787  
    Net Interest Margin (GAAP)   3.15 %     3.09 %     3.02 %     2.97 %     3.02 %     3.06 %     3.21 %
    Net Interest Margin (FTE) (non-GAAP)   3.28 %     3.23 %     3.16 %     3.10 %     3.16 %     3.19 %     3.35 %
     
    RETURN ON TANGIBLE COMMON EQUITY – NON-GAAP
    (Dollars In Thousands) Three Months Ended   Twelve Months Ended
      December 31,   September 30,   June 30,   March 31,   December 31,   December 31,   December 31,
        2024       2024       2024       2024       2023       2024       2023  
    Total Average Stockholders’ Equity (GAAP) $ 2,312,270     $ 2,251,547     $ 2,203,361     $ 2,242,139     $ 2,130,993     $ 2,252,491     $ 2,127,262  
    Less: Average Preferred Stock   (25,125 )     (25,125 )     (25,125 )     (25,125 )     (25,125 )     (25,125 )     (25,125 )
    Less: Average Intangible Assets, Net of Tax   (728,218 )     (729,581 )     (730,980 )     (732,432 )     (734,007 )     (730,295 )     (736,601 )
    Average Tangible Common Equity, Net of Tax (Non-GAAP) $ 1,558,927     $ 1,496,841     $ 1,447,256     $ 1,484,582     $ 1,371,861     $ 1,497,071     $ 1,365,536  
                               
    Net Income Available to Common Stockholders (GAAP) $ 63,880     $ 48,719     $ 39,456     $ 47,472     $ 42,010     $ 199,527     $ 221,911  
    Plus: Intangible Asset Amortization, Net of Tax   1,399       1,399       1,399       1,546       1,724       5,744       6,906  
    Tangible Net Income (Non-GAAP) $ 65,279     $ 50,118     $ 40,855     $ 49,018     $ 43,734     $ 205,271     $ 228,817  
                               
    Return on Tangible Common Equity (Non-GAAP)   16.75 %     13.39 %     11.29 %     13.21 %     12.75 %     13.71 %     16.76 %
     
    EFFICIENCY RATIO – NON-GAAP                          
    (Dollars In Thousands) Three Months Ended   Twelve Months Ended
      December 31,   September 30,   June 30,   March 31,   December 31,   December 31,   December 31,
        2024       2024       2024       2024       2023       2024       2023  
    Non Interest Expense (GAAP) $ 96,289     $ 94,629     $ 91,413     $ 96,935     $ 108,103     $ 379,266     $ 388,270  
    Less: Intangible Asset Amortization   (1,771 )     (1,772 )     (1,771 )     (1,957 )     (2,182 )     (7,271 )     (8,743 )
    Less: OREO and Foreclosure Expenses   (227 )     (942 )     (373 )     (534 )     (1,743 )     (2,076 )     (3,318 )
    Adjusted Non Interest Expense (Non-GAAP) $ 94,291     $ 91,915     $ 89,269     $ 94,444     $ 104,178     $ 369,919     $ 376,209  
                               
    Net Interest Income (GAAP) $ 134,370     $ 131,110     $ 128,571     $ 127,063     $ 130,063     $ 521,114     $ 545,400  
    Plus: Fully Taxable Equivalent Adjustment   5,788       5,883       5,859       5,795       5,853       23,326       23,943  
    Net Interest Income on a Fully Taxable Equivalent Basis (Non-GAAP) $ 140,158     $ 136,993     $ 134,430     $ 132,858     $ 135,916     $ 544,440     $ 569,343  
                               
    Non Interest Income (GAAP) $ 42,742     $ 24,866     $ 31,334     $ 26,638     $ 26,444     $ 125,580     $ 105,602  
    Less: Investment Securities (Gains) Losses   11,592       9,114       49       2       2,317       20,757       6,930  
    Adjusted Non Interest Income (Non-GAAP) $ 54,334     $ 33,980     $ 31,383     $ 26,640     $ 28,761     $ 146,337     $ 112,532  
    Adjusted Revenue (Non-GAAP) $ 194,492     $ 170,973     $ 165,813     $ 159,498     $ 164,677     $ 690,777     $ 681,875  
    Efficiency Ratio (Non-GAAP)   48.48 %     53.76 %     53.84 %     59.21 %     63.26 %     53.55 %     55.17 %
                               
    Adjusted Non Interest Expense (Non-GAAP) $ 94,291     $ 91,915     $ 89,269     $ 94,444     $ 104,178     $ 369,919     $ 376,209  
    Less: Acquisition-related Expenses   —       —       —       —       —       —       —  
    Less: Non-core Expenses1,2,3   (762 )     —       —       (3,481 )     (12,682 )     (4,243 )     (12,682 )
    Adjusted Non Interest Expense Excluding Non-core Expenses (Non-GAAP) $ 93,529     $ 91,915     $ 89,269     $ 90,963     $ 91,496     $ 365,676     $ 363,527  
                               
    Adjusted Revenue (Non-GAAP) $ 194,492     $ 170,973     $ 165,813     $ 159,498     $ 164,677     $ 690,777     $ 681,875  
    Less: Gain on Branch Sale   (19,983 )     —       —       —       —       (19,983 )     —  
    Adjusted Revenue Excluding Gain on Branch Sale (Non-GAAP) $ 174,509     $ 170,973     $ 165,813     $ 159,498     $ 164,677     $ 670,794     $ 681,875  
    Adjusted Efficiency Ratio (Non-GAAP)   53.60 %     53.76 %     53.84 %     57.03 %     55.56 %     54.51 %     53.31 %

    1 – Non-core expenses in 4Q24 included $0.8 million of costs directly related to the branch sale.
    2 – Non-core expenses in 1Q24 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.
    3 – Non-core expenses in 4Q23 included $6.3 million from early retirement and severance costs, $4.3 million from the FDIC special assessment, and $2.1 million from a lease termination.

    For more information, contact:
    Nicole M. Weaver, Vice President and Director of Corporate Administration
    765-521-7619
    http://www.firstmerchants.com

    SOURCE: First Merchants Corporation, Muncie, Indiana

    The MIL Network –

  • MIL-OSI Russia: Financial News: Exports in Q4 Declined on Lower Oil Prices

    Translartion. Region: Russians Fedetion –

    Source: Central Bank of Russia –

    In the fourth quarter of 2024, the value of exports decreased due to lower world oil prices and a decrease in oil production in Russia based on OPEC agreements. At the same time, the value of imports increased compared to the same period in 2023 amid expanding domestic demand.

    As a result of the reduction in exports and the increase in imports, the positive balance of the current account decreased in the fourth quarter.

    Read more in the quarterly issue of the information and analytical commentary “Balance of Payments of the Russian Federation”.

    Preview photo: Egor Aleev / TASS

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

    Please Note; This Information is Raw Content Directly from the Information Source. It is access to What the Source Is Stating and Does Not Reflect

    HTTPS: //VVV.KBR.ru/Press/Event/? ID = 23325

    MIL OSI Russia News –

  • MIL-OSI Russia: Financial News: December saw an expected cooling in corporate and consumer lending

    Translartion. Region: Russians Fedetion –

    Source: Central Bank of Russia –

    The corporate loan portfolio decreased by 0.2% in December due to the repayment of a number of large foreign currency loans. Overall, for 2024, growth was 17.9%, which is comparable to 2023. More than half of the growth came from segments that are less sensitive to rate increases – lending for investment programs that have already begun and housing construction.

    The effect of macroprudential restrictions and the increase in rates led to a reduction in unsecured consumer lending by 1.9%. However, given the high rates of lending dynamics observed in the spring and summer, by the end of 2024 the portfolio grew by 11.2%.

    Mortgages increased by a modest 0.4% over the month, with more than 80% of new loans coming from mortgages with state support. The annual growth slowed to 13.4%, which is significantly lower than the 2023 level, when the market was overheated due to massive state support. At the same time, the volume of loans issued in 2024 was comparable to 2020 and 2022.

    The population’s funds in banks grew by a significant 7.2%, which is due to the traditional advance payment of January social payments (including pensions and child benefits) and the payment of annual bonuses. At the end of the year, the growth was 26.1%, including due to an increase in the population’s income and high interest rates on deposits.

    In December, banks’ net profit fell sharply to 187 billion rubles due to losses from currency revaluation and increased operating expenses. In 2024, the sector earned 3.8 trillion rubles (excluding receipts from subsidiary banks). The total financial result, taking into account the negative revaluation of securities reflected directly in capital, was lower and amounted to 3.4 trillion rubles.

    Read more in the information and analytical material “On the development of the banking sector of the Russian Federation in December 2024”.

    Preview photo: liliya Vantsura / Shutterstock / Fotodom

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

    Please Note; This Information is Raw Content Directly from the Information Source. It is access to What the Source Is Stating and Does Not Reflect

    HTTPS: //vv. KBR.ru/Press/Event/? ID = 23324

    MIL OSI Russia News –

  • MIL-OSI United Nations: World Food Programme warns that efforts to ramp up food aid to famine-impacted Sudan being impeded

    Source: World Food Programme

    WFP/Abubakar Garelnabei WFP trucks refuelling before departing Port Sudan for Khartoum in December 2024

    As WFP teams work around the clock to reach key locations for first time, fighting and arbitrary obstructions by local authorities hinder consistent flow of vital aid.

    ROME/NAIROBI/PORT SUDAN – The United Nations World Food Programme (WFP) is working tirelessly to expand food and nutrition assistance to millions more people across Sudan – aiming to triple the number of people it supports to 7 million. WFP’s top priority is to deliver life-saving assistance to locations facing famine or teetering on its brink.

    Today, intensified fighting and the arbitrary obstruction of humanitarian convoys are hindering the fast and consistent movement of desperately needed aid.

    Since launching a large-scale surge of food aid in late 2024, WFP has pushed into hard-to-reach areas, including Zamzam Camp in North Darfur, south Khartoum, and Gebaish in West Kordofan. In January, WFP even reached Wad Madani in Gezira State after the city became safe enough to get trucks of food and nutrition supplies through. Over 2.5 million people per month received much-needed food and nutrition assistance in the last quarter of 2024, including many for the first time, since the conflict began. 

    “We have made significant breakthroughs in getting aid deliveries to hard-to-reach areas in the last three months, but these cannot be one-off events,” said Alex Marianelli, acting Country Director for Sudan. “We urgently need to get a constant flow of aid to families in the hardest hit locations, which have also been the most difficult to reach.” 

    A convoy headed to areas already in famine, or at-risk of famine, in Darfur, took three times longer to reach its destination due to interferences. After crossing the Adre border in mid-December, local officials from the Rapid Support Forces (RSF) held-back some 40 humanitarian trucks for nearly three weeks, requiring new clearances and inspections. As a result, the WFP-led convoy had to be redirected to another famine-risk area in the Darfur region. On arrival, the RSF held the trucks again and made additional demands. Finally, the convoy finally reached its destination earlier this week, a full six weeks after its departure, for a journey that would normally take a maximum of two weeks.

    Meanwhile, a national liquidity crisis has led to widespread cash shortages. WFP cash and in-kind food distributions for over 4 million people have been delayed for over one month due to a lack of sufficient bank notes to help pay porters to load trucks. Recent efforts by Sudan’s Central Bank and Ministry of Finance to ease the crisis, and increase cash availability, has meant that WFP’s operations can gradually resume.

    WFP calls on all parties on the ground in Sudan to remove all unnecessary barriers and obstacles that are preventing a full-scale humanitarian response to Sudan’s growing hunger crisis. The neutrality and independence of aid workers and humanitarian work must be respected. The safe passage of humanitarian assistance to hard-to-reach, famine-struck areas must be guaranteed.

    Sudan continues to face a catastrophic humanitarian situation with approximately 24.6 million people – nearly half of Sudan’s population – facing acute food insecurity (IPC Phase 3+). Twenty-seven locations across Sudan are either in famine or at risk of famine, while more than one-third of children in the hardest hit regions are acutely malnourished, well above the threshold for a famine declaration.

    #                 #                   #

    The United Nations World Food Programme is the world’s largest humanitarian organization saving lives in emergencies and using food assistance to build a pathway to peace, stability and prosperity for people recovering from conflict, disasters and the impact of climate change.

    Follow us on Twitter @wfp_media @wfp_sudan 

    MIL OSI United Nations News –

  • MIL-OSI Economics: RBI imposes monetary penalty on The Vadali Nagarik Sahakari Bank Ltd., Dist. Sabarkantha, Gujarat

    Source: Reserve Bank of India

    The Reserve Bank of India (RBI) has, by an order dated January 28, 2025, imposed a monetary penalty of ₹2.00 lakh (Rupees Two Lakh only) on The Vadali Nagarik Sahakari Bank Ltd., Dist. Sabarkantha, Gujarat (the bank) for non-compliance with certain directions issued by RBI on ‘Loans and Advances to directors, relatives and firms/concerns in which they are Interested’; ‘Placement of deposits with other banks by Primary (Urban) Co-operative Banks’ and ‘Know Your Customer (KYC)’. This penalty has been imposed in exercise of powers conferred in RBI under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

    The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2023. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:

    The bank had:

    1. sanctioned a loan wherein relative of its director stood as guarantor;

    2. failed to adhere to the prudential inter-bank (gross) and counterparty exposure limits; and

    3. failed to carry out periodic review of risk categorisation of certain accounts at least once in six months.

    This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

    (Puneet Pancholy)  
    Chief General Manager

    Press Release: 2024-2025/2043

    MIL OSI Economics –

  • MIL-OSI Economics: RBI imposes monetary penalty on The Kosamba Mercantile Co-operative Bank Ltd., Dist. Surat, Gujarat

    Source: Reserve Bank of India

    The Reserve Bank of India (RBI) has, by an order dated January 28, 2025, imposed a monetary penalty of ₹2.00 lakh (Rupees Two Lakh only) on The Kosamba Mercantile Co-operative Bank Ltd., Dist. Surat, Gujarat (the bank) for non-compliance with certain directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks’ and ‘Know Your Customer (KYC)’. This penalty has been imposed in exercise of powers conferred in RBI under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

    The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2023. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:

    The bank had failed to:

    1. adhere to the prudential inter-bank (gross) and counterparty exposure limits;

    2. upload the KYC records of customers onto Central KYC Records Registry (CKYCR) within the prescribed time; and

    3. carry out periodic review of risk categorisation of accounts at least once in six months.

    This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

    (Puneet Pancholy)  
    Chief General Manager

    Press Release: 2024-2025/2044

    MIL OSI Economics –

  • MIL-OSI Economics: RBI imposes monetary penalty on Shree Savli Nagrik Sahakari Bank Ltd., Dist. Vadodara, Gujarat

    Source: Reserve Bank of India

    The Reserve Bank of India (RBI) has, by an order dated January 27, 2025, imposed a monetary penalty of ₹2.10 lakh (Rupees Two Lakh Ten Thousand only) on Shree Savli Nagrik Sahakari Bank Ltd., Dist. Vadodara, Gujarat (the bank) for contravention of provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949 (BR Act) and for non-compliance with certain directions issued by RBI on ‘Investment by Primary (Urban) Co-operative Banks’, ‘Know Your Customer (KYC)’ and ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act and Section 25 of the Credit Information Companies (Regulation) Act, 2005.

    The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2023. Based on supervisory findings of contravention of statutory provisions/non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said provisions and directions. After considering the bank’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:

    The bank had:

    1. failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time;

    2. breached the ceiling of total investments held under Held to Maturity (HTM) category;

    3. failed to upload the KYC records of customers onto Central KYC Records Registry (CKYCR) within the prescribed time; and

    4. failed to submit credit information of its borrowers to three CICs.

    This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

    (Puneet Pancholy)  
    Chief General Manager

    Press Release: 2024-2025/2045

    MIL OSI Economics –

  • MIL-OSI: Form 8.5 (EPT/RI) – Dowlais Group Plc

    Source: GlobeNewswire (MIL-OSI)

    FORM 8.5 (EPT/RI)

    PUBLIC DEALING DISCLOSURE BY AN EXEMPT PRINCIPAL TRADER WITH RECOGNISED INTERMEDIARY STATUS DEALING IN A CLIENT-SERVING CAPACITY
    Rule 8.5 of the Takeover Code (the “Code”)

    1.        KEY INFORMATION

    (a)        Name of exempt principal trader: Investec Bank plc
    (b)        Name of offeror/offeree in relation to whose relevant securities this form relates:
            Use a separate form for each offeror/offeree    		 Dowlais Group Plc        
    (c)        Name of the party to the offer with which exempt principal trader is connected: Investec is Broker to Dowlais Group Plc
    (d)        Date dealing undertaken: 29th January 2025
    (e)        In addition to the company in 1(b) above, is the exempt principal trader making disclosures in respect of any other party to this offer?
            If it is a cash offer or possible cash offer, state “N/A”    		 N/A

    2.        DEALINGS BY THE EXEMPT PRINCIPAL TRADER

    Where there have been dealings in more than one class of relevant securities of the offeror or offeree named in 1(b), copy table 2(a), (b), (c) or (d) (as appropriate) for each additional class of relevant security dealt in.

    The currency of all prices and other monetary amounts should be stated.

    (a)        Purchases and sales

    Class of relevant security Purchases/ sales Total number of securities Highest price per unit paid/received Lowest price per unit paid/received

    Ordinary shares

    Purchases

    6,380,313

    76.55

    71.4481

    Ordinary shares

    Sales

    6,630,313

    76.65

    71.4481

    (b)        Cash-settled derivative transactions

    Class of relevant security Product description
    e.g. CFD    		 Nature of dealing
    e.g. opening/closing a long/short position, increasing/reducing a long/short position    		 Number of reference securities Price per unit
    N/A N/A N/A N/A N/A

    (c)        Stock-settled derivative transactions (including options)

    (i)        Writing, selling, purchasing or varying

    Class of relevant security Product description e.g. call option Writing, purchasing, selling, varying etc. Number of securities to which option relates Exercise price per unit Type
    e.g. American, European etc.    		 Expiry date Option money paid/ received per unit
    N/A N/A N/A N/A N/A N/A N/A N/A

    (ii)        Exercise

    Class of relevant security Product description
    e.g. call option    		 Exercising/ exercised against Number of securities Exercise price per unit
    N/A N/A N/A N/A N/A

    (d)        Other dealings (including subscribing for new securities)

    Class of relevant security Nature of dealing
    e.g. subscription, conversion    		 Details Price per unit (if applicable)
    N/A N/A N/A N/A

    3.        OTHER INFORMATION

    (a)        Indemnity and other dealing arrangements

    Details of any indemnity or option arrangement, or any agreement or understanding, formal or informal, relating to relevant securities which may be an inducement to deal or refrain from dealing entered into by the exempt principal trader making the disclosure and any party to the offer or any person acting in concert with a party to the offer:
    Irrevocable commitments and letters of intent should not be included. If there are no such agreements, arrangements or understandings, state “none”

    None

    (b)        Agreements, arrangements or understandings relating to options or derivatives

    Details of any agreement, arrangement or understanding, formal or informal, between the exempt principal trader making the disclosure and any other person relating to:
    (i)        the voting rights of any relevant securities under any option; or
    (ii)        the voting rights or future acquisition or disposal of any relevant securities to which any derivative is referenced:
    If there are no such agreements, arrangements or understandings, state “none”
    None
    Date of disclosure: 30thJanuary 2025
    Contact name: Abhishek Gawde
    Telephone number: +91 9923757332

    Public disclosures under Rule 8 of the Code must be made to a Regulatory Information Service.

    The Panel’s Market Surveillance Unit is available for consultation in relation to the Code’s dealing disclosure requirements on +44 (0)20 7638 0129.

    The Code can be viewed on the Panel’s website at www.thetakeoverpanel.org.uk.

    The MIL Network –

  • MIL-OSI Economics: RBI imposes monetary penalty on The Odisha State Co-operative Bank Ltd

    Source: Reserve Bank of India

    The Reserve Bank of India (RBI) has, by an order dated January 28, 2025, imposed a monetary penalty of ₹4.00 lakh (Rupees Four Lakh only) on The Odisha State Co-operative Bank Ltd., (the bank) for non-compliance with the provisions of Section 9 and Section 26A of the Banking Regulation Act, 1949 (BR Act). This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) and 56 of BR Act.

    The statutory inspection of the bank was conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as on March 31, 2023. Based on supervisory findings of contravention of statutory provisions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for contravention of provisions of the BR Act. After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:

    The bank had:

    1. failed to dispose of certain Non-Banking Assets within the prescribed period; and

    2. failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time.

    This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

    (Puneet Pancholy)  
    Chief General Manager

    Press Release: 2024-2025/2042

    MIL OSI Economics –

  • MIL-OSI United Kingdom: Government aims to crack down on rogue higher education operators

    Source: United Kingdom – Executive Government & Departments

    Proposed reforms to tighten rules around franchising and crack down on fraud in the student finance system that cost taxpayers £2m in 2022/23.   

    Tough new reforms proposed by the Department for Education would tighten controls on university franchising arrangements in England to safeguard public money and shore up the reputation of our world class higher education sector.   

    Franchising enables universities to subcontract courses to external providers. When done right, it makes it easier for more students to access higher education, especially in areas where options are limited, or when people such as mature students are balancing study around work and life.    

    The number of students studying at franchised providers has more than doubled in recent years, with over 130,000 using their services. But an investigation by the National Audit Office (NAO) raised concerns about franchising arrangements, with fraud in the sector costing the public purse £2m in 2022/23.    

    More than half of 341 franchised institutions are currently unregistered with the Office for Students (OfS), meaning they are not directly regulated. In some cases, students are offered poor-quality courses that fail to justify their cost, showing a clear need for reform.   

    Under new government plans published for consultation today (30 January), delivery partners with 300 or more students would be required to register with the OfS to ensure their courses meet rigorous quality standards, in order to be eligible to access to student finance.   

    If the OfS finds that a provider is not meeting the standards required of registered providers, they will be publicly held to account and could risk facing fines and the suspension of their registration, in the most extreme circumstances. The OfS will also publish student outcome data for all subcontracted partnerships every year.   

    The move comes ahead of a significant package of higher education reforms due to be announced this summer that will put students first and cement universities’ status as engines of growth in their communities, as the government delivers its Plan for Change to drive economic growth and raise living standards.   

    Education Secretary Bridget Phillipson said:   

    We are committed to cracking down on rogue operators who misuse public money and damage the reputation of our world-class universities.  

    Franchising can be a valuable tool to widen access to higher education, and these proposals will ensure students can trust the quality of their courses, no matter where or how they choose to study.   

    The credibility of our universities is at stake, but these proposals seek to protect students and safeguard taxpayer’s money, as part of our work to drive growth through our Plan for Change.  

    Franchising allows courses to be adapted to suit different needs and circumstances. It also helps colleges and universities work more closely together and gives new, innovative education providers a chance to get started.   

    Providers such as London South Bank University, which partners with some of the city’s top NHS teaching Trusts to help students’ studying midwifery and other front-line services, demonstrate the real-world benefits of franchising – with students achieving their qualifications alongside invaluable workplace experience, helping to address the critical shortage of healthcare professionals.   

    Universities and colleges whose names and brands are being used by franchises will remain responsible for ensuring their subcontracted arrangements meet quality and standards requirements. New regulations could come into effect as soon as spring next year, depending on the outcome of the consultation.  

    These reforms would protect the high standards of the UK’s higher education sector, which contributes around £265bn to the UK economy, ensuring it continues to drive economic growth and benefit both students and the wider economy.

    These proposals would strengthen the OfS’s ability to protect the public money that goes into franchising. The consultation aligns with the OfS’s work to strengthen conditions of registration related to governance and student interests.    

    The OfS will shortly be consulting on changes to requirements for providers that wish to join its register to ensure they are all managed and governed effectively.   

    The OfS has currently paused registration of new higher education providers to support the sector with financial sustainability concerns, after finding 72 per cent of providers could be operating in deficit by next year.   

    They expect the pause to stay in place until August 2025 but will review the decision every three months, meaning the registration process should be open again by the time the government’s proposed changes would take effect.   

    The Department for Education’s consultation will be open from 30 January to 4 April 2024. After the consultation closes, the Department for Education will review the responses and aims to publish its official response in the summer.

    DfE media enquiries

    Central newsdesk – for journalists 020 7783 8300

    Updates to this page

    Published 30 January 2025

    MIL OSI United Kingdom –