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Category: Banking

  • MIL-OSI Banking: DeepSeek R1 is now available on Azure AI Foundry and GitHub

    Source: Microsoft

    Headline: DeepSeek R1 is now available on Azure AI Foundry and GitHub

    DeepSeek R1 is now available in the model catalog on Azure AI Foundry and GitHub, joining a diverse portfolio of over 1,800 models, including frontier, open-source, industry-specific, and task-based AI models. As part of Azure AI Foundry, DeepSeek R1 is accessible on a trusted, scalable, and enterprise-ready platform, enabling businesses to seamlessly integrate advanced AI.

    DeepSeek R1 is now available in the model catalog on Azure AI Foundry and GitHub, joining a diverse portfolio of over 1,800 models, including frontier, open-source, industry-specific, and task-based AI models. As part of Azure AI Foundry, DeepSeek R1 is accessible on a trusted, scalable, and enterprise-ready platform, enabling businesses to seamlessly integrate advanced AI while meeting SLAs, security, and responsible AI commitments—all backed by Microsoft’s reliability and innovation. 

    Build transformative AI apps with Azure AI Foundry

    Accelerating AI reasoning for developers on Azure AI Foundry

    AI reasoning is becoming more accessible at a rapid pace transforming how developers and enterprises leverage cutting-edge intelligence. As DeepSeek mentions, R1 offers a powerful, cost-efficient model that allows more users to harness state-of-the-art AI capabilities with minimal infrastructure investment. 

    One of the key advantages of using DeepSeek R1 or any other model on Azure AI Foundry is the speed at which developers can experiment, iterate, and integrate AI into their workflows. With built-in model evaluation tools, they can quickly compare outputs, benchmark performance, and scale AI-powered applications. This rapid accessibility—once unimaginable just months ago—is central to our vision for Azure AI Foundry: bringing the best AI models together in one place to accelerate innovation and unlock new possibilities for enterprises worldwide. 

    Develop with trustworthy AI

    We are committed to enabling customers to build production-ready AI applications quickly while maintaining the highest levels of safety and security. DeepSeek R1 has undergone rigorous red teaming and safety evaluations, including automated assessments of model behavior and extensive security reviews to mitigate potential risks. With Azure AI Content Safety, built-in content filtering is available by default, with opt-out options for flexibility. Additionally, the Safety Evaluation System allows customers to efficiently test their applications before deployment. These safeguards help Azure AI Foundry provide a secure, compliant, and responsible environment for enterprises to confidently deploy AI solutions. 

    How to use DeepSeek in model catalog

    • If you don’t have an Azure subscription, you can sign up for an Azure account here.
    • Search for DeepSeek R1 in the model catalog.
    • Open the model card in the model catalog on Azure AI Foundry.
    • Click on deploy to obtain the inference API and key and also to access the playground. 
    • You should land on the deployment page that shows you the API and key in less than a minute. You can try out your prompts in the playground.
    • You can use the API and key with various clients.

    Get started today

    DeepSeek R1 is now available via a serverless endpoint through the model catalog in Azure AI Foundry. Get started on Azure AI Foundry here and select the DeepSeek model.

    On GitHub, you can explore additional resources and step-by-step guides to integrate DeepSeek R1 seamlessly into your applications. Read the GitHub Models blog post.

    Coming soon: Customers will be able to use distilled flavors of the DeepSeek R1 model to run locally on their Copilot+ PCs. Read the Windows Developer blog post.

    As we continue expanding the model catalog in Azure AI Foundry, we’re excited to see how developers and enterprises leverage DeepSeek R1 to tackle real-world challenges and deliver transformative experiences. We are committed to offering the most comprehensive portfolio of AI models, ensuring that businesses of all sizes have access to cutting-edge tools to drive innovation and success. 

    MIL OSI Global Banks –

  • MIL-OSI Australia: Allens advises lenders on Australia’s largest standalone BESS financing

    Source: Allens Insights

    Allens has advised a syndicate of domestic and international lenders on its $722 million debt financing package to fund the development of Stages 1 and 2 of the Supernode battery energy storage system (BESS), Australia’s largest standalone BESS project financing to date.

    The 520MW/1856MWh BESS, being developed by global investment manager Quinbrook Infrastructure Partners, is located adjacent to the central node of Queensland’s electricity network, allowing for efficient storage and redistribution of surplus solar energy.

    The BESS will form part of a $2.5 billion hyperscale data centre, renewables and battery storage project at Brendale in Queensland which will offer significant low-emissions data storage capacity for domestic and international customers.

    The syndicate of lenders includes Bank of America, Commonwealth Bank of Australia, Deutsche Bank, Mizuho Bank and MUFG Bank. ICA Partners were the financial advisers to Quinbrook.

    ‘We are delighted to have advised the lenders on this landmark investment in Australia’s energy future, which will play a critical role in Australia’s energy transition by providing renewable capacity to the energy-intense, rapidly growing data centre sector,’ said lead partner Rob Watt.

    The advice builds on Allens’ experience in battery project financings, with the firm having also advised on the Orana BESS, Waratah Super BESS, Templers BESS, Koorangie Energy Storage System, Hazelwood BESS and the Bouldercombe Battery Project.

    Allens legal team

    Rob Watt (lead Partner), Mark Hakeem (Senior Associate), Kade Alexander (Associate), Maya Bahra (Lawyer)

    MIL OSI News –

  • MIL-OSI: Sound Financial Bancorp, Inc. Q4 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    SEATTLE, Jan. 29, 2025 (GLOBE NEWSWIRE) —  Sound Financial Bancorp, Inc. (the “Company”) (Nasdaq: SFBC), the holding company for Sound Community Bank (the “Bank”), today reported net income of $1.9 million for the quarter ended December 31, 2024, or $0.74 diluted earnings per share, as compared to net income of $1.2 million, or $0.45 diluted earnings per share, for the quarter ended September 30, 2024, and $1.2 million, or $0.47 diluted earnings per share, for the quarter ended December 31, 2023. The Company also announced today that its Board of Directors declared a cash dividend on the Company’s common stock of $0.19 per share, payable on February 26, 2025 to stockholders of record as of the close of business on February 12, 2025.

    Comments from the President and Chief Executive Officer  
     
    “The Bank ended the year with many positives, including a 15-basis-point increase in net interest margin compared to the third quarter of 2024. This was largely due to our significant progress in reducing deposit costs, which fell by 16 basis points,” remarked Laurie Stewart, President and Chief Executive Officer. “Additionally, nonperforming loans decreased by 11.8% from the third quarter, and for the first time in more than a decade, we have no OREO,” concluded Ms. Stewart.

    “Notable progress was made in reducing funding costs during the quarter and in controlling expenses throughout the entire year. We hope to continue this momentum in 2025. Our staff across the company played an important role in these accomplishments by focusing on client relationships and increasing efficiencies through technological improvements,” explained Wes Ochs, Executive Vice President and Chief Financial Officer.

    Mr. Ochs continued, “We ended the year with the same balance sheet strategy that we used to close out 2023, which helped reduce the Bank’s asset size below $1 billion. This strategy is intended to provide the Bank with additional operational flexibility and continued cost savings in 2025.”
    Q4 2024 Financial Performance
    Total assets decreased $107.3 million or 9.7% to $993.6 million at December 31, 2024, from $1.10 billion at September 30, 2024, and decreased $1.6 million or 0.2% from $995.2 million at December 31, 2023.     Net interest income increased $347 thousand or 4.4% to $8.2 million for the quarter ended December 31, 2024, from $7.9 million for the quarter ended September 30, 2024, and increased $653 thousand or 8.6% from $7.6 million for the quarter ended December 31, 2023.
       
        Net interest margin (“NIM”), annualized, was 3.13% for the quarter ended December 31, 2024, compared to 2.98% for the quarter ended September 30, 2024 and 3.04% for the quarter ended December 31, 2023.
    Loans held-for-portfolio decreased $1.6 million or 0.2% to $900.2 million at December 31, 2024, compared to $901.7 million at September 30, 2024, and increased $5.7 million or 0.6% from $894.5 million at December 31, 2023.    
        A $14 thousand provision for credit losses was recorded for the quarter ended December 31, 2024, compared to an $8 thousand provision and a $27 thousand release of provision for credit losses for the quarters ended September 30, 2024 and December 31, 2023, respectively. At December 31, 2024, the allowance for credit losses on loans to total loans outstanding was 0.94%, compared to 0.95% at September 30, 2024 and 0.98% December 31, 2023.
    Total deposits decreased $92.4 million or 9.9% to $837.8 million at December 31, 2024, from $930.2 million at September 30, 2024, and increased $11.3 million or 1.4% from $826.5 million at December 31, 2023. Noninterest-bearing deposits increased $2.8 million or 2.2% to $132.5 million at December 31, 2024 compared to $129.7 million at September 30, 2024, and increased $5.8 million or 4.6% compared to $126.7 million at December 31, 2023.    
        Total noninterest income decreased $75 thousand or 6.1% to $1.2 million for the quarter ended December 31, 2024, compared to the quarter ended September 30, 2024, and increased $94 thousand or 8.8% compared to the quarter ended December 31, 2023.
    The loans-to-deposits ratio was 108% at December 31, 2024, compared to 97% at September 30, 2024 and 108% at December 31, 2023.    
        Total noninterest expense decreased $621 thousand or 8.1% to $7.1 million for the quarter ended December 31, 2024, compared to the quarter ended September 30, 2024, and decreased $248 thousand or 3.4% compared to the quarter ended December 31, 2023.
    Total nonperforming loans decreased $998 thousand or 11.8% to $7.5 million at December 31, 2024, from $8.5 million at September 30, 2024, and increased $3.9 million or 110.7% from $3.6 million at December 31, 2023. Nonperforming loans to total loans was 0.83% and the allowance for credit losses on loans to total nonperforming loans was 113.46% at December 31, 2024.    
        The Bank continued to maintain capital levels in excess of regulatory requirements and was categorized as “well-capitalized” at December 31, 2024.
           

    Operating Results

    Net interest income increased $347 thousand, or 4.4%, to $8.2 million for the quarter ended December 31, 2024, compared to $7.9 million for the quarter ended September 30, 2024, and increased $653 thousand, or 8.6%, from $7.6 million for the quarter ended December 31, 2023.The increase from the prior quarter was primarily the result of lower funding costs and an increase in average yield on loans receivable and investments, partially offset by a decrease in the average balance and yield on interest-bearing cash. The increase in net interest income compared to the same quarter one year ago was primarily due to a higher average yield on interest-earning assets, particularly loans receivable and investments, and an increase in the average balances of both loans receivable and interest-bearing cash, partially offset by a lower average yield on interest-bearing cash and higher funding costs.

    Interest income decreased $102 thousand, or 0.7%, to $14.7 million for the quarter ended December 31, 2024, compared to $14.8 million for the quarter ended September 30, 2024, and increased $1.4 million, or 10.5%, from $13.3 million for the quarter ended December 31, 2023. The decrease from the prior quarter was primarily due to a lower average balance of interest-bearing cash, and a 59 basis point decline in the average yield on interest-bearing cash, offset by a seven basis point increase in the average loan yield and a 16 basis point increase in the average yield on investments. The increase in interest income compared to the same quarter last year was due primarily to higher average balances of loans and interest-bearing cash, a 37 basis point increase in the average yield on loans, and a 43 basis point increase in the average yield on investments, partially offset by a decline in the average balance of investments and a 59 basis point decline in the average yield on interest-bearing cash.

    Interest income on loans increased $194 thousand, or 1.5%, to $13.1 million for the quarter ended December 31, 2024, compared to $12.9 million for the quarter ended September 30, 2024, and increased $1.0 million, or 8.6%, from $12.0 million for the quarter ended December 31, 2023. The average balance of total loans was $900.8 million for the quarter ended December 31, 2024, up from $898.6 million for the quarter ended September 30, 2024 and $884.7 million for the quarter ended December 31, 2023. The average yield on total loans was 5.77% for the quarter ended December 31, 2024, up from 5.70% for the quarter ended September 30, 2024 and 5.40% for the quarter ended December 31, 2023. The increase in the average loan yield during the current quarter, compared to both the prior quarter and the fourth quarter of 2023, was primarily due to the origination of new loans at higher interest rates. Additionally, variable-rate loans resetting to higher rates contributed to the increase in average yield compared to the prior quarters. The increase in the average balance during the current quarter compared to the prior quarter was primarily due to growth in commercial and multifamily loans, manufactured housing loans and floating home loans. This was partially offset by a decline in construction and land loans and commercial business loans. The average balances for one-to-four family loans, home equity loans, and other consumer loans remained relatively flat from the third quarter of 2024. The increase in the average balance of loans during the current quarter compared to the fourth quarter of 2023 was primarily due to loan growth across all categories, except for one-to-four family loans, construction and land loans, commercial business loans, and other consumer loans, with the largest decrease being in construction and land loans.

    Interest income on investments was $132 thousand for both the quarters ended December 31, 2024 and September 30, 2024, and $129 thousand for the quarter ended December 31, 2023. Interest income on interest-bearing cash decreased $296 thousand to $1.5 million for the quarter ended December 31, 2024, compared to $1.8 million for the quarter ended September 30, 2024, and increased $359 thousand from $1.2 million for the quarter ended December 31, 2023. The decrease from the prior quarter was due to decreases in the average yield and average balance of interest-bearing cash. The increase from the same quarter in the prior year was a result of a higher average balance, partially offset by a lower average yield.

    Interest expense decreased $449 thousand, or 6.4%, to $6.5 million for the quarter ended December 31, 2024, from $7.0 million for the quarter ended September 30, 2024, and increased $746 thousand, or 12.9%, from $5.8 million for the quarter ended December 31, 2023. The decrease in interest expense during the current quarter from the prior quarter was primarily the result of average balance decreases of $3.8 million in demand and NOW accounts, $2.3 million in certificate accounts and $9.5 million in FHLB advances, as well as lower average rates paid on all categories of interest-bearing deposits, partially offset by a $10.2 million increase in the average balance of savings and money market accounts. The increase in interest expense during the current quarter from the same quarter a year ago was primarily the result of a $91.9 million increase in the average balance of savings and money market accounts and a $1.3 million increase in the average balance of certificate accounts, as well as higher average rates paid on savings and money market accounts. This was partially offset by a $25.3 million decrease in the average balance of demand and NOW accounts and a $9.6 million decrease in the average balance of FHLB advances. The average cost of deposits was 2.58% for the quarter ended December 31, 2024, down from 2.74% for the quarter ended September 30, 2024 and up from 2.38% for the quarter ended December 31, 2023. The average cost of FHLB advances was 4.31% for the quarter ended December 31, 2024, down from 4.32% for the quarter ended September 30, 2024, and up from 4.26% for the quarter ended December 31, 2023.

    NIM (annualized) was 3.13% for the quarter ended December 31, 2024, up from 2.98% for the quarter ended September 30, 2024 and 3.04% for the quarter ended December 31, 2023. The increase in NIM from the prior quarter was the result of lower cost of funding, partially offset by a decrease in interest income on interest-earning assets. The increase in NIM from the quarter one year ago was primarily due to an increase in interest income on interest-earning assets, driven by the higher average balance in loans and interest-bearing cash and a higher yield earned on loans and investments, partially offset by a higher average balance of and cost of savings and money market accounts.

    A provision for credit losses of $14 thousand was recorded for the quarter ended December 31, 2024, consisting of a release of provision for credit losses on loans of $73 thousand and a provision for credit losses on unfunded loan commitments of $87 thousand. This compared to a provision for credit losses of $8 thousand for the quarter ended September 30, 2024, consisting of a provision for credit losses on loans of $106 thousand and a release of provision for credit losses on unfunded loan commitments of $98 thousand, and a release of provision for credit losses of $27 thousand for the quarter ended December 31, 2023, consisting of a provision for credit losses on loans of $337 thousand and a release of the provision for credit losses on unfunded loan commitments of $364 thousand. The increase in the provision for credit losses for the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024 resulted primarily from an additional qualitative adjustment related to our loan review, additional enhancements to the loss model related to how we adjust for the qualitative component, including the utilization of a scorecard to drive managements analysis, and growth in our unfunded construction loan portfolio, which has a higher loss rate than our other loan portfolios. These increases were offset by lower reserves in both our floating home sub-segment of other consumer loans within our quantitative analysis and in our qualitative analysis related to market conditions and value of underlying collateral, as economic conditions have improved. Expected loss estimates consider various factors, such as market conditions, borrower-specific information, projected delinquencies, and the impact of economic conditions on borrowers’ ability to repay.

    Noninterest income decreased $75 thousand, or 6.1%, to $1.2 million for the quarter ended December 31, 2024, compared to the quarter ended September 30, 2024, and increased $94 thousand, or 8.8%, compared to the quarter ended December 31, 2023. The decrease from the prior quarter was primarily related to a $24 thousand downward adjustment in fair value of mortgage servicing rights and a $59 thousand decrease in earnings from bank-owned life insurance (“BOLI”), both influenced by fluctuating market interest rates. These decreases were partially offset by an increase of $13 thousand in net gain on sale of loans due to higher sales volume in the fourth quarter of 2024, and a $7 thousand increase in gain on disposal of assets due to insurance claims exceeding the book value on the replacement of stolen laptops in the second quarter of 2024. The increase in noninterest income from the same quarter of 2023 was primarily due an $43 thousand increase in service charges and fee income primarily due to increases in late fees on loans, higher interchange income and income related to a new, multi-year agreement with our credit card provider that was effective in 2024, a late fee on one commercial loan and higher specialty deposit fees due to fewer reversals of fees in 2024, a $173 thousand increase in the fair value adjustment on mortgage servicing rights due to changes in prepayment speeds, servicing costs, and discount rate, and a $7 thousand increase in gain on disposal of assets as noted above. These increases were partially offset by a $95 thousand decrease in earnings on BOLI due to market rate fluctuations, and a $23 thousand decrease in net gain on sale of loans due to fewer loans sold, and an $11 thousand decrease in mortgage servicing income as a result of the portfolio paying down at a faster rate than we are replacing the loans. Loans sold during the quarter ended December 31, 2024, totaled $3.5 million, compared to $2.4 million and $4.5 million of loans sold during the quarters ended September 30, 2024 and December 31, 2023, respectively.

    Noninterest expense decreased $621 thousand, or 8.1%, to $7.1 million for the quarter ended December 31, 2024, compared to the quarter ended September 30, 2024, and decreased $248 thousand, or 3.4%, from the quarter ended December 31, 2023. The decrease from the quarter ended September 30, 2024 was primarily a result of lower salaries and benefits and operations expenses, partially offset by higher data processing expense. Salaries and benefits decreased $549 thousand primarily due to lower incentive compensation, lower retirement plan expense due to fluctuating market rates, lower medical expense due to higher medical costs during the third quarter of 2024, and lower salaries expense, as well as higher deferred salaries due to higher loan production. Operations expense decreased $211 thousand primarily due to a reversal of state and local tax expense related to higher estimated tax payments made than actual tax due, and lower operational losses in the current quarter as the prior quarter included the charge-off of a fraudulently obtained loan. This was partially offset by an $165 thousand increase in data processing expenses, reflecting new technology implementation costs. Compared to same quarter in 2023, the decrease in noninterest expense was primarily due to lower operations expenses, occupancy expenses and data processing expenses, which were partially offset by a $118 thousand increase in salaries and benefits costs. Operations expenses decreased due to reduction in loan originations costs, office expenses, operational losses, charitable contributions and state and local taxes, partially offset by higher professional fees primarily related to costs for future FDIC Improvement Act implementation. Data processing expenses decreased due to lower costs related to our core processor, while occupancy expenses decreased primarily due to fully amortized leasehold improvements. The increase in salaries and benefits compared to the same quarter last year reflected higher incentive compensation, lower deferred salaries, higher medical expenses due primarily to a change in insurance providers, and a higher contribution to our employee stock ownership plan due to the increase in value of our stock in 2024. This was partially offset by lower retirement plan expenses due to fluctuating market rates and lower salaries from a restructuring of positions at the end of 2023.

    Balance Sheet Review, Capital Management and Credit Quality

    Assets at December 31, 2024 totaled $993.6 million, down from $1.10 billion at September 30, 2024 and $995.22 million at December 31, 2023. The decrease in total assets from September 30, 2024 was primarily due to decreases in cash and cash equivalents and loans held-for-portfolio. The decrease from one year ago was primarily a result of lower balances of cash and cash equivalents and investment securities, offset by an increase in loans held-for-portfolio.

    Cash and cash equivalents decreased $105.3 million, or 70.7%, to $43.6 million at December 31, 2024, compared to $148.9 million at September 30, 2024, and decreased $6.0 million, or 12.2%, from $49.7 million at December 31, 2023. The decrease from the prior quarter was primarily due to higher deposit withdrawals, as well as the strategic decision to sell reciprocal deposits at the end of the year. Cash and cash equivalents decreased from one year ago primarily due to the increase in loans held-for-portfolio and the payoff of one FHLB borrowing, partially offset by an increase in deposits.

    Investment securities decreased $251 thousand, or 2.5%, to $9.9 million at December 31, 2024, compared to $10.2 million at September 30, 2024, and decreased $533 thousand, or 5.1%, from $10.5 million at December 31, 2023. Held-to-maturity securities totaled $2.1 million at both December 31, 2024 and September 30, 2024, and totaled $2.2 million at December 31, 2023. Available-for-sale securities totaled $7.8 million at December 31, 2024, compared to $8.0 million at September 30, 2024 and $8.3 million at December 31, 2023.

    Loans held-for-portfolio were $900.2 million at December 31, 2024, compared to $901.7 million at September 30, 2024 and $894.5 million at December 31, 2023.

    Nonperforming assets (“NPAs”), which are comprised of nonaccrual loans (including nonperforming modified loans), other real estate owned (“OREO”) and other repossessed assets, decreased $1.1 million, or 12.9%, to $7.5 million at December 31, 2024, from $8.6 million at September 30, 2024 and increased $3.4 million, or 81.3%, from $4.1 million at December 31, 2023. The decrease in NPAs from September 30, 2024 was primarily due to the payoff of seven loans totaling $1.2 million, one loan totaling $76 thousand returning to accrual status, and sale of one other real estate owned property for $115 thousand for a small net gain on sale, partially offset by the addition of seven loans totaling $326 thousand to nonaccrual. The increase in NPAs from one year ago was primarily due to the placement of an additional $9.3 million of loans on nonaccrual status, which included a $3.7 million matured commercial real estate loan where the borrower is in the process of securing financing from another lender, and a $2.4 million floating home loan, all of which are well secured. These additions were partially offset by payoffs totaling $4.2 million, the return of $784 thousand of loans to accrual status, charge-offs of $142 thousand, the sale of two other real estate owned properties for $685 thousand, and normal loan payments.

    NPAs to total assets were 0.75%, 0.78% and 0.42% at December 31, 2024, September 30, 2024 and December 31, 2023, respectively. The allowance for credit losses on loans to total loans outstanding was 0.94% at December 31, 2024, compared to 0.95% at September 30, 2024 and 0.98% at December 31, 2023. Net loan charge-offs for the fourth quarter of 2024 totaled $13 thousand, compared to $14 thousand for the third quarter of 2024, and $15 thousand for the fourth quarter of 2023.

    The following table summarizes our NPAs at the dates indicated (dollars in thousands):

      December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Nonperforming Loans:                  
    One-to-four family $ 537     $ 745     $ 822     $ 835     $ 1,108  
    Home equity loans   298       338       342       83       84  
    Commercial and multifamily   3,734       4,719       5,161       4,747       —  
    Construction and land   24       25       28       29       —  
    Manufactured homes   521       230       136       166       228  
    Floating homes   2,363       2,377       2,417       3,192       —  
    Commercial business   11       23       —       —       2,135  
    Other consumer   3       32       3       1       1  
    Total nonperforming loans   7,491       8,489       8,909       9,053       3,556  
    OREO and Other Repossessed Assets:                  
    Commercial and multifamily   —       —       —       575       575  
    Manufactured homes   —       115       115       115       —  
    Total OREO and repossessed assets   —       115       115       690       575  
    Total NPAs $ 7,491     $ 8,604     $ 9,024     $ 9,743     $ 4,131  
                       
    Percentage of Nonperforming Loans:                  
    One-to-four family   7.3 %     8.7 %     9.1 %     8.5 %     26.9 %
    Home equity loans   4.0       3.9       3.8       0.9       2.0  
    Commercial and multifamily   49.8       54.8       57.2       48.7       —  
    Construction and land   0.3       0.3       0.3       0.3       —  
    Manufactured homes   7.0       2.7       1.5       1.7       5.5  
    Floating homes   31.5       27.6       26.8       32.8       —  
    Commercial business   0.1       0.3       —       —       51.7  
    Other consumer   —       0.4       —       —       —  
    Total nonperforming loans   100.0       98.7       98.7       92.9       86.1  
    Percentage of OREO and Other Repossessed Assets:                  
    Commercial and multifamily   —       —       —       5.9       13.9  
    Manufactured homes   —       1.3       1.3       1.2       —  
    Total OREO and repossessed assets   —       1.3       1.3       7.1       13.9  
    Total NPAs   100.0 %     100.0 %     100.0 %     100.0 %     100.0 %

    The following table summarizes the allowance for credit losses at the dates and for the periods indicated (dollars in thousands, unaudited):

      At or For the Quarter Ended:
      December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Allowance for Credit Losses on Loans                  
    Balance at beginning of period $ 8,585     $ 8,493     $ 8,598     $ 8,760     $ 8,438  
    (Release of) provision for credit losses during the period   (73 )     106       (88 )     (106 )     337  
    Net charge-offs during the period   (13 )     (14 )     (17 )     (56 )     (15 )
    Balance at end of period $ 8,499     $ 8,585     $ 8,493     $ 8,598     $ 8,760  
    Allowance for Credit Losses on Unfunded Loan Commitments                  
    Balance at beginning of period $ 147     $ 245     $ 266     $ 193     $ 557  
    Provision for (release of) provision for credit losses during the period   87       (98 )     (21 )     73       (364 )
    Balance at end of period   234       147       245       266       193  
    Allowance for Credit Losses $ 8,733     $ 8,732     $ 8,738     $ 8,864     $ 8,953  
    Allowance for credit losses on loans to total loans   0.94 %     0.95 %     0.96 %     0.96 %     0.98 %
    Allowance for credit losses to total loans   0.97 %     0.97 %     0.98 %     0.99 %     1.00 %
    Allowance for credit losses on loans to total nonperforming loans   113.46 %     101.13 %     95.33 %     94.97 %     246.34 %
    Allowance for credit losses to total nonperforming loans   116.58 %     102.86 %     98.08 %     97.91 %     251.77 %

    Total deposits decreased $92.4 million, or 9.9%, to $837.8 million at December 31, 2024, from $930.2 million at September 30, 2024 and increased $11.3 million, or 1.4%, from $826.5 million at December 31, 2023. The decrease in total deposits compared to the prior quarter-end was primarily a result of the movement of reciprocal deposits off balance sheet for strategic objectives at year-end, followed by the return of those deposits to our balance sheet in the first quarter of 2025, and a decrease in one high cost money market depositor relationship as part of our strategic decision to decrease our overall cost of funds. Noninterest-bearing deposits increased $2.8 million, or 2.2%, to $132.5 million at December 31, 2024, compared to $129.7 million at September 30, 2024 and increased $5.8 million, or 4.6%, from $126.7 million at December 31, 2023. Noninterest-bearing deposits represented 15.8%, 14.0% and 15.3% of total deposits at December 31, 2024, September 30, 2024 and December 31, 2023, respectively.

    FHLB advances totaled $25.0 million at December 31, 2024, compared to $40.0 million at both September 30, 2024, and December 31, 2023. The decrease from both prior dated was due to the repayment of a $15.0 million FHLB advance that matured in November 2024. FHLB advances are primarily used to support organic loan growth and to maintain liquidity ratios in line with our asset/liability objectives. FHLB advances outstanding at December 31, 2024 had maturities ranging from early 2026 through early 2028. Subordinated notes, net totaled $11.8 million at each of December 31, 2024, September 30, 2024 and December 31, 2023.

    Stockholders’ equity totaled $103.7 million at December 31, 2024, an increase of $1.4 million, or 1.4%, from $102.2 million at September 30, 2024, and an increase of $3.0 million, or 3.0%, from $100.7 million at December 31, 2023. The increase in stockholders’ equity from September 30, 2024 was primarily the result of $1.9 million of net income earned during the current quarter, $98 thousand in share-based compensation, and $19 thousand in common stock options exercised, partially offset by a $122 thousand increase in accumulated other comprehensive loss, net of tax and the payment of $486 thousand in cash dividends to the Company’s stockholders.

    Sound Financial Bancorp, Inc., a bank holding company, is the parent company of Sound Community Bank, which is headquartered in Seattle, Washington and has full-service branches in Seattle, Tacoma, Mountlake Terrace, Sequim, Port Angeles, Port Ludlow and University Place. Sound Community Bank is a Fannie Mae Approved Lender and Seller/Servicer with one loan production office located in the Madison Park neighborhood of Seattle. For more information, please visit www.soundcb.com.

    Forward-Looking Statements Disclaimer

    When used in this press release and in documents filed or furnished by Sound Financial Bancorp, Inc. (the “Company”) with the Securities and Exchange Commission (the “SEC”), in the Company’s other press releases or other public or stockholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “intends” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which are based on various underlying assumptions and expectations and are subject to risks, uncertainties and other unknown factors, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events and may turn out to be wrong because of inaccurate assumptions we might make, because of the factors listed below or because of other factors that we cannot foresee that could cause our actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made.

    Factors which could cause actual results to differ materially, include, but are not limited to:adverse impacts to economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation or deflation, a recession or slowed economic growth, as well as supply chain disruptions; changes in the interest rate environment, including increases and decreases in the Board of Governors of the Federal Reserve System (the Federal Reserve) benchmark rate and the duration at which such interest rate levels are maintained, which could adversely affect our revenues and expenses, the values of our assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and the current and future monetary policies of the Federal Reserve in response thereto; the effects of any federal government shutdown; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; changes in consumer spending, borrowing and savings habits; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; the Company’s ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company’s market area; secondary market conditions for loans;expectations regarding key growth initiatives and strategic priorities; environmental, social and governance goals and targets; results of examinations of the Company or the Bank by their regulators; increased competition; changes in management’s business strategies; legislative changes; changes in the regulatory and tax environments in which the Company operates; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on our third-party vendors; the potential imposition of new tariffs or changes to existing trade policies that could affect economic activity or specific industry sector; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events on our business; and other factors described in the Company’s latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other documents filed with or furnished to the SEC, which are available at www.soundcb.com and on the SEC’s website at www.sec.gov. The risks inherent in these factors could cause the Company’s actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company and could negatively affect the Company’s operating and stock performance.

    The Company does not undertake—and specifically disclaims any obligation—to revise any forward-looking statement to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statement.

    CONSOLIDATED INCOME STATEMENTS
    (Dollars in thousands, unaudited)
        For the Quarter Ended
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Interest income   $ 14,736     $ 14,838   $ 14,039     $ 13,760     $ 13,337  
    Interest expense     6,516       6,965     6,591       6,300       5,770  
    Net interest income     8,220       7,873     7,448       7,460       7,567  
    Provision for (release of) credit losses     14       8     (109 )     (33 )     (27 )
    Net interest income after provision for (release of) credit losses     8,206       7,865     7,557       7,493       7,594  
    Noninterest income:                    
    Service charges and fee income     619       628     761       612       576  
    Earnings on bank-owned life insurance     127       186     134       177       222  
    Mortgage servicing income     277       280     279       282       288  
    Fair value adjustment on mortgage servicing rights     77       101     (116 )     (65 )     (96 )
    Net gain on sale of loans     53       40     74       90       76  
    Other income     7       —     30       —       —  
    Total noninterest income     1,160       1,235     1,162       1,096       1,066  
    Noninterest expense:                    
    Salaries and benefits     3,920       4,469     4,658       4,543       3,802  
    Operations     1,329       1,540     1,569       1,457       1,537  
    Regulatory assessments     189       189     220       189       198  
    Occupancy     409       414     397       444       458  
    Data processing     1,232       1,067     910       1,017       1,311  
    Net (gain) loss on OREO and repossessed assets     (21 )     —     (17 )     6       —  
    Total noninterest expense     7,058       7,679     7,737       7,656       7,306  
    Income before provision for income taxes     2,308       1,421     982       933       1,354  
    Provision for income taxes     389       267     187       163       143  
    Net income   $ 1,919     $ 1,154   $ 795     $ 770     $ 1,211  
    CONSOLIDATED INCOME STATEMENTS
    (Dollars in thousands, unaudited)
         
        For theYear Ended December 31
          2024       2023  
    Interest income   $ 57,374     $ 50,609  
    Interest expense     26,372       16,759  
    Net interest income     31,002       33,850  
    (Release of) provision for credit losses     (120 )     (273 )
    Net interest income after (release of) provision for credit losses     31,122       34,123  
    Noninterest income:        
    Service charges and fee income     2,620       2,527  
    Earnings on bank-owned life insurance     625       1,179  
    Mortgage servicing income     1,118       1,179  
    Fair value adjustment on mortgage servicing rights     (4 )     (219 )
    Net gain on sale of loans     258       340  
    Other income     38       —  
    Total noninterest income     4,655       5,006  
    Noninterest expense:        
    Salaries and benefits     17,590       17,135  
    Operations     5,894       6,095  
    Regulatory assessments     787       688  
    Occupancy     1,665       1,810  
    Data processing     4,226       4,388  
    Net (gain) loss on OREO and repossessed assets     (31 )     13  
    Total noninterest expense     30,131       30,129  
    Income before provision for income taxes     5,646       9,000  
    Provision for income taxes     1,006       1,561  
    Net income   $ 4,640     $ 7,439  
    CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands, unaudited)
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    ASSETS                    
    Cash and cash equivalents   $ 43,641     $ 148,930     $ 135,111     $ 137,977     $ 49,690  
    Available-for-sale securities, at fair value     7,790       8,032       7,996       8,115       8,287  
    Held-to-maturity securities, at amortized cost     2,130       2,139       2,147       2,157       2,166  
    Loans held-for-sale     487       65       257       351       603  
    Loans held-for-portfolio     900,171       901,733       889,274       897,877       894,478  
    Allowance for credit losses – loans     (8,499 )     (8,585 )     (8,493 )     (8,598 )     (8,760 )
    Total loans held-for-portfolio, net     891,672       893,148       880,781       889,279       885,718  
    Accrued interest receivable     3,471       3,705       3,413       3,617       3,452  
    Bank-owned life insurance, net     22,490       22,363       22,172       22,037       21,860  
    Other real estate owned (“OREO”) and other repossessed assets, net     —       115       115       690       575  
    Mortgage servicing rights, at fair value     4,769       4,665       4,540       4,612       4,632  
    Federal Home Loan Bank (“FHLB”) stock, at cost     1,730       2,405       2,406       2,406       2,396  
    Premises and equipment, net     4,697       4,807       4,906       6,685       5,240  
    Right-of-use assets     3,725       3,779       4,020       4,259       4,496  
    Other assets     7,031       6,777       6,995       4,500       6,106  
    TOTAL ASSETS   $ 993,633     $ 1,100,930     $ 1,074,859     $ 1,086,685     $ 995,221  
    LIABILITIES                    
    Interest-bearing deposits   $ 705,267     $ 800,480     $ 781,854     $ 788,217     $ 699,813  
    Noninterest-bearing deposits     132,532       129,717       124,915       128,666       126,726  
    Total deposits     837,799       930,197       906,769       916,883       826,539  
    Borrowings     25,000       40,000       40,000       40,000       40,000  
    Accrued interest payable     765       908       760       719       817  
    Lease liabilities     4,013       4,079       4,328       4,576       4,821  
    Other liabilities     9,371       9,711       9,105       9,578       9,563  
    Advance payments from borrowers for taxes and insurance     1,260       2,047       812       2,209       1,110  
    Subordinated notes, net     11,759       11,749       11,738       11,728       11,717  
    TOTAL LIABILITIES     889,967       998,691       973,512       985,693       894,567  
    STOCKHOLDERS’ EQUITY:                    
    Common stock     25       25       25       25       25  
    Additional paid-in capital     28,413       28,296       28,198       28,110       27,990  
    Retained earnings     76,272       74,840       74,173       73,907       73,627  
    Accumulated other comprehensive loss, net of tax     (1,044 )     (922 )     (1,049 )     (1,050 )     (988 )
    TOTAL STOCKHOLDERS’ EQUITY     103,666       102,239       101,347       100,992       100,654  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 993,633     $ 1,100,930     $ 1,074,859     $ 1,086,685     $ 995,221  
    KEY FINANCIAL RATIOS
    (unaudited)
        For the Quarter Ended
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Annualized return on average assets   0.70 %   0.42 %   0.30 %   0.29 %   0.46 %
    Annualized return on average equity   7.40 %   4.50 %   3.17 %   3.06 %   4.78 %
    Annualized net interest margin(1)   3.13 %   2.98 %   2.92 %   2.95 %   3.04 %
    Annualized efficiency ratio(2)   75.25 %   84.31 %   89.86 %   89.48 %   84.63 %

    (1)   Net interest income divided by average interest earning assets.
    (2)   Noninterest expense divided by total revenue (net interest income and noninterest income).

    PER COMMON SHARE DATA
    (unaudited)
        At or For the Quarter Ended
        December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
    Basic earnings per share   $ 0.75   $ 0.45   $ 0.31   $ 0.30   $ 0.47
    Diluted earnings per share   $ 0.74   $ 0.45   $ 0.31   $ 0.30   $ 0.47
    Weighted-average basic shares outstanding     2,547,210     2,544,233     2,540,538     2,539,213     2,542,175
    Weighted-average diluted shares outstanding     2,578,771     2,569,368     2,559,015     2,556,958     2,560,656
    Common shares outstanding at period-end     2,564,907     2,564,095     2,557,284     2,558,546     2,549,427
    Book value per share   $ 40.42   $ 39.87   $ 39.63   $ 39.47   $ 39.48

    AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE RATE PAID
    (Dollars in thousands, unaudited)

    The following tables present, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resultant yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates. Income and yields on tax-exempt obligations have not been computed on a tax equivalent basis. All average balances are daily average balances. Nonaccrual loans have been included in the table as loans carrying a zero yield for the period they have been on nonaccrual (dollars in thousands).

      Three Months Ended
      December 31, 2024   September 30, 2024   December 31, 2023
      Average Outstanding Balance   Interest Earned/
    Paid    		   Yield/
    Rate    		   Average Outstanding Balance   Interest Earned/
    Paid    		   Yield/
    Rate    		   Average Outstanding Balance   Interest Earned/
    Paid    		   Yield/
    Rate
    Interest-Earning Assets:                                  
    Loans receivable $ 900,832     $ 13,070   5.77 %   $ 898,570     $ 12,876   5.70 %   $ 884,677     $ 12,033   5.40 %
    Interest-earning cash   130,412       1,534   4.68 %     138,240       1,830   5.27 %     88,401       1,175   5.27 %
    Investments   13,263       132   3.96 %     13,806       132   3.80 %     14,479       129   3.53 %
    Total interest-earning assets $ 1,044,507       14,736   5.61 %     1,050,616     $ 14,838   5.62 %   $ 987,557       13,337   5.36 %
    Interest-Bearing Liabilities:                                  
    Savings and money market accounts $ 350,495       2,476   2.81 %   $ 340,281       2,688   3.14 %   $ 258,583       1,586   2.43 %
    Demand and NOW accounts   144,470       128   0.35 %     148,252       151   0.41 %     169,816       149   0.35 %
    Certificate accounts   301,293       3,413   4.51 %     303,632       3,524   4.62 %     300,042       3,436   4.54 %
    Subordinated notes   11,756       168   5.69 %     11,745       168   5.69 %     11,714       168   5.69 %
    Borrowings   30,546       331   4.31 %     40,000       434   4.32 %     40,109       431   4.26 %
    Total interest-bearing liabilities $ 838,560       6,516   3.09 %   $ 843,910       6,965   3.28 %   $ 780,264       5,770   2.93 %
    Net interest income/spread     $ 8,220   2.52 %       $ 7,873   2.34 %       $ 7,567   2.42 %
    Net interest margin         3.13 %           2.98 %           3.04 %
                                       
    Ratio of interest-earning assets to interest-bearing liabilities   125 %             124 %             127 %        
    Noninterest-bearing deposits $ 130,476             $ 132,762             $ 134,857          
    Total deposits   926,734     $ 6,017   2.58 %     924,927     $ 6,363   2.74 %     863,298     $ 5,171   2.38 %
    Total funding(1)   969,036       6,516   2.68 %     976,672       6,965   2.84 %     915,121       5,770   2.50 %

    (1)   Total funding is the sum of average interest-bearing liabilities and average noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.

      Year Ended
      December 31, 2024   December 31, 2023
      Average
    Outstanding Balance    		   Interest Earned/Paid   Yield/Rate   Average
    Outstanding Balance    		   Interest Earned/Paid   Yield/Rate
    Interest-Earning Assets:                      
    Loans receivable $ 896,690     $ 50,499   5.63 %   $ 870,227     $ 46,470   5.34 %
    Interest-earning cash   124,259       6,367   5.12 %     74,708       3,621   4.85 %
    Investments   12,468       508   4.07 %     13,661       518   3.79 %
    Total interest-earning assets $ 1,033,417       57,374   5.55 %   $ 958,596       50,609   5.28 %
    Interest-Bearing Liabilities:                      
    Savings and money market accounts $ 319,314       9,145   2.86 %   $ 194,810       2,783   1.43 %
    Demand and NOW accounts   151,528       568   0.37 %     204,922       736   0.36 %
    Certificate accounts   309,441       14,363   4.64 %     280,238       10,617   3.79 %
    Subordinated notes   11,740       672   5.72 %     11,698       672   5.74 %
    Borrowings   37,623       1,624   4.32 %     43,977       1,951   4.44 %
    Total interest-bearing liabilities $ 829,646       26,372   3.18 %   $ 735,645       16,759   2.28 %
    Net interest income/spread     $ 31,002   2.37 %       $ 33,850   3.00 %
    Net interest margin         3.00 %           3.53 %
                           
    Ratio of interest-earning assets to interest-bearing liabilities   125 %             130 %        
    Noninterest-bearing deposits $ 131,141             $ 154,448          
    Total deposits   911,424     $ 24,076   2.64 %     834,418     $ 14,136   1.69 %
    Total funding(1)   960,787       26,372   2.74 %     890,093       16,759   1.88 %

    (1)   Total funding is the sum of average interest-bearing liabilities and average noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.

    LOANS
    (Dollars in thousands, unaudited)
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Real estate loans:                    
    One-to-four family   $ 269,684     $ 271,702     $ 268,488     $ 279,213     $ 279,448  
    Home equity     26,686       25,199       26,185       24,380       23,073  
    Commercial and multifamily     371,516       358,587       342,632       324,483       315,280  
    Construction and land     73,077       85,724       96,962       111,726       126,758  
    Total real estate loans     740,963       741,212       734,267       739,802       744,559  
    Consumer Loans:                    
    Manufactured homes     41,128       40,371       38,953       37,583       36,193  
    Floating homes     86,411       86,155       81,622       84,237       75,108  
    Other consumer     17,720       18,266       18,422       18,847       19,612  
    Total consumer loans     145,259       144,792       138,997       140,667       130,913  
    Commercial business loans     15,605       17,481       17,860       19,075       20,688  
    Total loans     901,827       903,485       891,124       899,544       896,160  
    Less:                    
    Premiums     718       736       754       808       829  
    Deferred fees, net     (2,374 )     (2,488 )     (2,604 )     (2,475 )     (2,511 )
    Allowance for credit losses – loans     (8,499 )     (8,585 )     (8,493 )     (8,598 )     (8,760 )
    Total loans held-for-portfolio, net   $ 891,672     $ 893,148     $ 880,781     $ 889,279     $ 885,718  
    DEPOSITS
    (Dollars in thousands, unaudited)
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Noninterest-bearing demand   $ 132,532   $ 129,717   $ 124,915   $ 128,666   $ 126,726
    Interest-bearing demand     142,126     148,740     152,829     159,178     168,346
    Savings     61,252     61,455     63,368     65,723     69,461
    Money market(1)     206,067     285,655     253,873     241,976     154,044
    Certificates     295,822     304,630     311,784     321,340     307,962
    Total deposits   $ 837,799   $ 930,197   $ 906,769   $ 916,883   $ 826,539

    (1)   Includes $5.0 million of brokered deposits at December 31, 2023. 

    CREDIT QUALITY DATA
    (Dollars in thousands, unaudited)
        At or For the Quarter Ended
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Total nonperforming loans   $ 7,491     $ 8,489     $ 8,909     $ 9,053     $ 3,556  
    OREO and other repossessed assets     —       115       115       690       575  
    Total nonperforming assets   $ 7,491     $ 8,604     $ 9,024     $ 9,743     $ 4,131  
    Net charge-offs during the quarter   $ (13 )   $ (14 )   $ (17 )   $ (56 )   $ (15 )
    Provision for (release of) credit losses during the quarter     14       8       (109 )     (33 )     (27 )
    Allowance for credit losses – loans     8,499       8,585       8,493       8,598       8,760  
    Allowance for credit losses – loans to total loans     0.94 %     0.95 %     0.96 %     0.96 %     0.98 %
    Allowance for credit losses – loans to total nonperforming loans     113.46 %     101.13 %     95.33 %     94.97 %     246.34 %
    Nonperforming loans to total loans     0.83 %     0.94 %     1.00 %     1.01 %     0.40 %
    Nonperforming assets to total assets     0.75 %     0.78 %     0.84 %     0.90 %     0.42 %
    OTHER STATISTICS
    (Dollars in thousands, unaudited)
        At or For the Quarter Ended
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
                         
    Total loans to total deposits     107.64 %     97.13 %     98.27 %     98.11 %     108.42 %
    Noninterest-bearing deposits to total deposits     15.82 %     13.95 %     13.78 %     14.03 %     15.33 %
                         
    Average total assets for the quarter   $ 1,089,067     $ 1,095,404     $ 1,070,579     $ 1,062,036     $ 1,033,985  
    Average total equity for the quarter   $ 103,181     $ 102,059     $ 100,961     $ 101,292     $ 100,612  

    Contact

    Financial:    
    Wes Ochs      
    Executive Vice President/CFO    
    (206) 436-8587      
           
    Media:    
    Laurie Stewart      
    President/CEO    
    (206) 436-1495      
           

    The MIL Network –

  • MIL-OSI United Nations: Israel’s new laws banning UNRWA already taking effect

    Source: United Nations 4

    Peace and Security

    Israeli legislation banning the UN agency for Palestine refugees, UNRWA, is due to enter into force in the coming hours, bringing fundamental changes to its operations in the Occupied Palestinian Territory, according to the agency and Palestinians they serve in Gaza who spoke with UN News on Wednesday.

    Soundcloud

    If implemented, the two new laws passed in October will simultaneously prohibit Israeli authorities from contacting UNRWA and ban the agency from operating in war-ravaged Gaza and East Jerusalem and the West Bank, according to UNRWA spokesperson Jonathan Fowler.

    As such, poised to change are Israel’s role as the occupying power and the work of the UN General Assembly-mandated agency known since 1949 as the backbone of humanitarian aid assisting nearly six million Palestine refugees today.

    Check out UN Photo’s essay What UNRWA Built here.

    © UNRWA

    The war in Gaza has seen an unprecedented number of attacks on UN premises and staff. (file)

    Evacuation and relocation

    Israel as the occupying power is responsible for issuing visas to international staff from humanitarian organizations like UNRWA, whose headquarters in occupied East Jerusalem comprise a compound protected by the 1946 Convention on Diplomatic Relations.

    © UNRWA

    UNRWA has been called the backbone of humanitarian assistance in war-ravaged Gaza.

    The Knesset legislation has yet to come into force but is already impacting UN operations in the region.

    Israel has shortened all visas for UNRWA’s international staff to expire on Wednesday, which “is tantamount to being evicted” or declared persona non grata, Mr. Fowler said.

    As such, UNRWA’s international staff at the East Jerusalem office had to evacuate and relocate to Amman, Jordan earlier in the day. Office equipment and vehicles have been moved out, and efforts are continuing to digitise its archives.

    National staff will remain in East Jerusalem, but they face risks, including upcoming demonstrations by Israeli protestors, Mr. Fowler said. During the Gaza war, the compound had faced security issues, including arson attacks and violent protests.

    UNRWA had to comply with Israeli orders due to visa requirements despite East Jerusalem being recognised as occupied territory under international law, he added.

    Will UNRWA shut down completely?

    UNRWA’s mandate has remained the same for decades and it will not be ceasing all operations, said Mr. Fowler. It is unique as a working model that has provided core services such as healthcare and education to refugees and their descendants in line with its General Assembly-approved mandate.

    The agency also provides services to Palestinians in Jordan, Lebanon and Syria.

    “UNRWA remains absolutely committed to stay and deliver,” Mr. Fowler said.

    “We will not stop. We’re not bowing down to this. But, we do know that the practical impacts, the uncertainty mean that our operations could be substantially affected.”

    © UNRWA

    UNRWA and partners begin the second round of the polio vaccination campaign in Gaza in 2024. (file)

    Backbone of aid in Gaza

    Up to the current fragile ceasefire, Israeli forces killed more than 47,000 Palestinians – according to local health authorities – and 270 UNRWA staff members in Gaza. Yet, despite challenges, agency staff in Gaza continue to operate, providing essential humanitarian aid, Mr. Fowler said.

    Over the first three days of the 19 January ceasefire, UNRWA provided food for one million people and one million blankets.

    Indeed, the UN agency is responsible for over half of deliveries inside the Gaza Strip and over half the aid coming in.

    The ceasefire has allowed UNRWA to scale up aid, but the situation remains precarious, he stressed.

    © UNRWA

    Aid is delivered to Gaza as Palestinians return to their homes during the ceasefire.

    Impact on services

    The Israeli laws could halt all UNRWA operations in Gaza, East Jerusalem and the West Bank, affecting schools, healthcare centres and other services, Mr. Fowler explained.

    Some Palestinians in Gaza are worried at the prospect of losing UNRWA, including Iman Hillis, who is currently staying in an UNRWA school with her family.

    “We will have nothing to eat or drink, and this will affect us greatly,” she told UN News. “All the people will be destroyed and will not have food, water or flour.”

    International response amid ‘biggest fears’

    UNRWA supporters, UN Member States and UN officials have pressed Israel to reverse course up to the last minute. However, there is concern about the precedent this situation could set for other UN operations worldwide, Mr. Fowler said.

    The current situation is as unique as the agency itself. Israel’s ban is unprecedented. Never before has a UN Member State tried to undo the mandate of a UN organization.

    ‘We’re at the 11th hour’

    “We face the risk of this becoming an example, which would then eventually morph into some kind of new normal,” Mr. Fowler said.

    In other places around the world, that “new normal” is a “very, very nightmarish scenario”, he warned.

    “The multilateral system is not perfect, but it’s the system that we have, and this is a unilateral blow against multilateralism,” he said.

    “We’re at the 11th hour. We all have to continue efforts to convince Israeli authorities to at least freeze this decision or void the laws completely. Our biggest fear is there is no Plan B.”

    Why can’t other aid agencies just take over?

    Uniquely, the UN General Assembly makes the decisions on UNRWA and how and where it operates.

    “No other agency has the scale and depth to do what we do,” Mr. Fowler said.

    However, under international humanitarian law, the occupying power is responsible to assure the wellbeing of the population under occupation, he added.

    “By voiding our mandate, the Israeli officials who have promoted this need to think hard about the fact that if there’s any Plan B, it’s on them,” he said.

    Soundcloud

    How will Israel’s role change?

    As the occupying power, Israel is and has been responsible for all services to the populations living in Occupied Palestinian Territory since it seized the areas in 1967.

    An agreement in 1967 between Israel and UNRWA recognised the UN Palestine relief agency and its General Assembly-mandated tasks serving Gaza, East Jerusalem and the West Bank.

    With the new legislation that, in effect, cancels that agreement, Israel continues to be responsible as the occupying power, including for all public services.

    As such, Israel will need to absorb the cost. UNRWA’s annual budget runs at about $1 billion every year.

    UN News

    Over 20,000 displaced Palestinians are taking shelter in a UNRWA school in Gaza.

    What is UNRWA?

    Since 1950, the UN Relief and Works Agency for Palestine Refugees (UNRWA) has contributed to the welfare and human development of Palestine refugees, defined as “persons whose normal place of residence was Palestine during the period 1 June 1946 to 15 May 1948, and who lost both home and means of livelihood as a result of the 1948 war”.

    © UNRWA

    Humanitarian aid delivered to Gaza.

    • The agency operates in Jordan, Lebanon, Syria, Gaza and the West Bank, including East Jerusalem. Established by a UN General Assembly resolution, UNRWA is funded almost entirely through voluntary contributions from UN Member States.
    • UNRWA has long faced misinformation and disinformation, including about its staff and operations. This has intensified since the war in Gaza began on 7 October 2023.
    • An example is the claim that the UN agencies that deliver humanitarian assistance in crisis zones across the globe would be better placed to do the work currently carried out by UNRWA.
    • In fact, UNRWA’s established infrastructure – the agency directly manages critical public-like services (schools, health centres, social protection), relying on 30,000 staff members, most of them Palestine refugees – and its cost-effectiveness have no equivalent elsewhere in the UN.
    • Find out more about the work UNRWA does here.

    MIL OSI United Nations News –

  • MIL-OSI Economics: African Development Bank Partners with AXIAN Telecom to Accelerate Africa’s Digital Transformation

    Source: African Development Bank Group

    The African Development Bank has approved a $160 million senior corporate loan to support AXIAN Telecom to expand digital access and financial inclusion in nine African countries. The loan will accelerate the modernization and expansion of AXIAN Telecom‘s network infrastructure, with a focus on 4G and 5G deployment; while also driving digital innovation in its operations, enabling them to expand to more countries.

    AXIAN Telecom, headquartered in Mauritius, serves 42.9 million mobile subscribers, 11.4 million data users, and 15.2 million mobile financial service users, positioning itself as a leader in Africa’s digital transformation.

    A key focus of the funding is to address gender disparities in access to financial services. Over $10 million will be dedicated to empowering 22,000 women entrepreneurs in Madagascar through AXIAN’s Mvola platform. Additionally, a $2.5 million grant will enhance financial literacy and credit access for 34,000 women businesses across Madagascar, Tanzania, and Senegal, enabling them to grow and transition into the formal economy.

    Highlighting the initiative’s importance, the African Development Bank’s Vice President for Private Sector, Infrastructure and Industrialization, Solomon Quaynor, said: “This investment reflects the African Development Bank’s commitment to driving Africa’s digital transformation and fostering inclusive growth. By supporting AXIAN Telecom’s growth plan, we are bridging the digital divide, creating opportunities for millions across the continent, and fostering innovation.”

    Quaynor described the African Development Bank’s support as part of a partnership to accelerate progress, advance financial inclusion—particularly for women—and drive sustainable development, adding, “Together, we are building the infrastructure and ecosystems that will enable Africa to thrive in the digital age.”

    AXIAN Telecom CEO, Hassan Jaber said, “We are honoured to partner with an organisation that shares our vision of advancing Africa’s digital economy. The funding from the African Development Bank not only underscores the immense digital potential of the continent but also highlights the critical role of collaboration in driving sustainable development.”

    Jabaer emphasized that the support from the African Development Bank will build on the company’s ongoing initiatives, such as expanding affordable internet access and fostering innovative solutions to bridge the digital divide. while aligning seamlessly with the recent transformation of our mobile businesses under the Yas brand.

    « Yas represents our commitment to empowering a young, dynamic, and digitally connected population, embracing every opportunity with a resounding ‘YES.’ Together, this collaboration will help drive meaningful change across Africa’s digital landscape, furthering our shared mission of digital and financial inclusion,” he added.

    The partnership aligns with the African Development Bank’s “Hi-5” development priorities, particularly “Industrialize Africa” and “Integrate Africa”, which enhance connectivity, foster cross-border digital services, and support financial inclusion.

    MIL OSI Economics –

  • MIL-OSI Economics: Mission 300: Significant new donor pledges in support of the Sustainable Energy Fund for Africa announced on margins of the Africa Energy Summit

    Source: African Development Bank Group

    Denmark, the United Kingdom, Spain and France have unveiled new or additional contributions to the Sustainable Energy Fund for Africa, demonstrating strong support for the African Development Bank-managed fund as it expands energy access across Africa, including through the Mission 300 partnership. Another new donor – Japan –joined in December 2024 with a $5 million contribution under AGIA.

    SEFA is a multi-donor Special Fund that provides catalytic finance to unlock private sector investments in renewable energy and energy efficiency. It aims to contribute to universal access to affordable, reliable, sustainable, and modern energy services for all in Africa in line with the New Deal on Energy for Africa and Mission 300.

    Mission 300, an ambitious new partnership of the African Development Bank Group, the World Bank Group and other development partners, aims to provide access to electricity to an additional 300 million Africans by 2030.

    France, a new donor to SEFA, will provide €10 million. Denmark, the UK and Spain will increase existing contributions by DKK 100 million (€13.4 million), £8.5 million (€10.13) and €3 million, respectively.

    France’s contribution will bolster the Africa Green Infrastructure Alliance (AGIA), a platform of the African Development Bank, Africa 50 and other partners that will develop transformative sustainable infrastructure projects for investment.

    These contributions come as SEFA enjoyed its best year on record in 2024, with $108 million approved for 14 projects. SEFA now boasts a portfolio of over $300 million in highly impactful investments and technical assistance programmes, which is expected to unlock up to $15 billion in investments and deliver approximately 12 million new electricity connections.

    Denmark’s Acting State Secretary for Development Policy, Ole Thonke, said: “Africa is endowed with enormous untapped potential for renewable energy, which can fuel green industrialisation. The latest Danish financial contribution to SEFA will focus on the newly established Africa-led Accelerated Partnership for Renewables in Africa (APRA), further supporting the continent’s ambitious development and climate goals.”

    “We are halfway through this decisive decade to achieve the sustainable development goals and get on track to tackle climate change,” said Rachel Kyte, UK Special Representative for Climate, Foreign, Commonwealth and Development Office. “Achieving our collective goals of reliable, affordable and clean power is a golden thread that links economic growth, greater investment, strengthened resilience and climate ambition. By accelerating the roll-out of clean power, the UK and Mission 300 are putting green and inclusive growth at the heart of our partnerships with Africa. Our announcement of an additional £8.5 million in UK funding for the AfDB’s SEFA will mobilise the much-needed private sector investment so that more Africans can access clean power right across the continent.”

    Inés Carpio San Román, Alternate Governor of Spain for the African Development Bank, said, “We are pleased that Spain has decided to renew its support for the SEFA fund with a contribution of €3 million. This reaffirms our commitment to the crucial sector of renewable energy, which plays a key role in fostering sustainable development across Africa.”

    “As a strong supporter of Africa’s green infrastructure investments with financial tools that mobilise private finance, France is proud to contribute €10 million to the AGIA through SEFA,” stated Bertrand Dumont, Director General of the French Treasury and Governor for France at the African Development Bank. “This very first contribution is our first step towards reinforcing Africa’s sustainable development and accelerating the continent’s path to a low-carbon economy. By investing in green infrastructure in Africa, we are investing for the future.”

    Dr Daniel Schroth, Director of Renewable Energy and Energy Efficiency at the African Development Bank, said, “We welcome the new commitments from donors whose support underscores the impactful work of SEFA. These contributions are essential in enabling SEFA to fulfil its role as a key delivery vehicle for Mission 300 at this pivotal moment.”

    ABOUT SEFA

    SEFA is a multi-donor Special Fund that provides catalytic finance to unlock private sector investments in renewable energy and energy efficiency. SEFA offers technical assistance and concessional finance instruments to remove market barriers, build a more robust pipeline of projects and improve the risk-return profile of individual investments. The Fund’s overarching goal is to contribute to universal access to affordable, reliable, sustainable, and modern energy services for all in Africa, in line with the New Deal on Energy for Africa and the M300.

    MIL OSI Economics –

  • MIL-OSI USA: Cramer, Colleagues Introduce Legislation to Protect AM Radio

    US Senate News:

    Source: United States Senator Kevin Cramer (R-ND)
    WASHINGTON, D.C. – Each week, nearly 47 million Americans rely on AM radio to deliver updates on news, sports, weather, and emergency alerts. Despite this, several car manufacturers proposed removing AM radio in their newer vehicles. 
    U.S. Senator Kevin Cramer (R-ND) joined U.S. Senators Ted Cruz (R-TX) and Ed Markey (D-MA) in introducing the bipartisan, bicameral AM Radio for Every Vehicle Act. The legislation aims to address critical public safety and communication challenges by ensuring broadcast AM radio remains accessible in all passenger vehicles, including electric vehicles.
    If enacted, the bill would require the Department of Transportation (DOT) to issue a rule requiring new vehicles to maintain access to broadcast AM radio at no additional cost to the consumer and provide small vehicle manufacturers at least four years after the date DOT issues the rule to comply. The AM Radio for Every Vehicle Act also requires automakers to inform consumers, during the period before the rule takes effect, that the vehicles do not maintain access to broadcast AM radio.
    “AM radio connects millions of listeners across the country to reliable news, critical emergency alerts, and vital weather updates every week,” said Cramer. “I joined my colleagues in reintroducing the AM Radio for Every Vehicle Act to prevent automakers from removing this essential communication tool from vehicles. We must keep Americans safe, and this legislation will protect life-saving access to necessary alerts, while preserving emergency communication infrastructure.”
    “During weather disasters or power outages, AM radio is consistently the most reliable form of communication and is critical to keep millions of Texans safe. AM radio has long been a haven for people to express differing viewpoints, allowing free speech and our robust democratic process to flourish for decades. I am honored to once again partner with Sen. Markey on this bipartisan legislation on behalf of our constituents who depend on AM radio and public airwaves for access to news, music, talk, and emergency alerts,” said Senator Cruz.
    “As we witness more tragic climate change-induced disasters like the wildfires in Los Angeles, broadcast AM radio continues to be a critical tool for communication. AM radio is a lifeline for people across the country for news, sports, and especially emergency information,” said Senator Markey. “Tens of millions of listeners across the country have made clear that they want AM radio to remain in their vehicles. Our AM Radio for Every Vehicle Act heeds their words and ensures that this essential tool doesn’t get lost on the dial.”
    Additional cosponsors include U.S. Senators Tammy Baldwin (D-WI), John Barrasso (R-WY), Marsha Blackburn (R-TN), Richard Blumenthal (D-CT), Katie Britt (R-AL), Ted Budd (R-NC), Maria Cantwell (D-WA), Shelley Moore Capito (R-WV), Tom Cotton (R-AR), Steve Daines (R-MT), Joni Ernst (R-IA), Deb Fischer (R-NE), Chuck Grassley (R-IA), Josh Hawley (R-MO), Maggie Hassan (D-NH), Mazie Hirono (D-HI), Jim Justice (R-WV), Angus King (I-ME), Amy Klobuchar (D-MN), James Lankford (R-OK), Ben Ray Luján (D-NM), Cynthia Lummis (R-WY), Roger Marshall (R-KS), Jeff Merkley (D-OR), Jerry Moran (R-KS), Chris Murphy (D-CT), Jack Reed (D-RI), Pete Ricketts (R-NE), Bernie Sanders (I-VT), Rick Scott (R-FL), Jeanne Shaheen (D-NH), Tim Sheehy (R-MT), Tina Smith (D-MN), Dan Sullivan (R-AK), Ron Wyden (D-OR), Todd Young (R-IN), John Barrasso (R-WY), Jim Banks (R-IN), and John Hoeven (R-ND).
    Click here for bill text.

    MIL OSI USA News –

  • MIL-OSI USA: Senators Markey and Cruz Reintroduce Bill to Keep AM Radio in New Vehicles

    US Senate News:

    Source: United States Senator for Massachusetts Ed Markey
    Bill Text (PDF)
    Washington (January 29, 2025) – Senator Edward J. Markey (D-Mass.), member of the Senate Commerce, Science, and Transportation Committee, and Ted Cruz (R-Texas), Chairman of the Senate Commerce, Science, and Transportation Committee, today reintroduced the AM Radio for Every Vehicle Act. This legislation would direct the National Highway Traffic Safety Administration (NHTSA) to require automakers to maintain AM broadcast radio in their new vehicles at no additional charge.
    “As we witness more tragic climate change-induced disasters like the wildfires in Los Angeles, broadcast AM radio continues to be a critical tool for communication. AM radio is a lifeline for people across the country for news, sports, and especially emergency information,” said Senator Markey. “Tens of millions of listeners across the country have made clear that they want AM radio to remain in their vehicles. Our AM Radio for Every Vehicle Act heeds their words and ensures that this essential tool doesn’t get lost on the dial.”
    “During weather disasters or power outages, AM radio is consistently the most reliable form of communication and is critical to keep millions of Texans safe. AM radio has long been a haven for people to express differing viewpoints, allowing free speech and our robust democratic process to flourish for decades. I am honored to once again partner with Sen. Markey on this bipartisan legislation on behalf of our constituents who depend on AM radio and public airwaves for access to news, music, talk, and emergency alerts,” said Senator Cruz.
    Cosponsors in the Senate include Senators Tammy Baldwin (D-Wisc.), John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), Richard Blumenthal (D-Conn.), Katie Britt (R-Ala.), Ted Budd (R-N.C.), Maria Cantwell (D-Wash.), Shelley Moore Capito (R-W.V.), Tom Cotton (R-Ark.), Kevin Cramer (R-N.D.), Steve Daines (R-Mont.), Joni Ernst (R-Iowa), Deb Fischer (R-Neb.),    Chuck Grassley (R-Iowa), Josh Hawley (R-Mo.), Maggie Hassan (D-N.H.), Mazie Hirono (D-Hawaii), Jim Justice (R-W.V.), Angus King (I-Maine), Amy Klobuchar (D-Minn.), James Lankford (R-Okla.), Ben Ray Luján (D-N.M.), Cynthia Lummis (R-Wyo.), Roger Marshall (R-Kan.), Jeff Merkley (D-Ore.), Jerry Moran (R-Kan.), Chris Murphy (D-Conn.), Jack Reed (D-R.I.), Pete Ricketts (R-Neb.), Bernie Sanders (I-Vt.), Rick Scott (R-Fla.), Jeanne Shaheen (D-N.H.), Tim Sheehy (R-Mont.), Tina Smith (D-Minn.), Dan Sullivan (R-Alaska), Ron Wyden (D-Ore.), Todd Young (R-Ind.), John Barrasso (R-Wy.), Jim Banks (R-Ind.), and John Hoeven (R-N.D.).
    In May 2023, Senators Markey and Cruz led their colleagues in introducing the AM Radio for Every Vehicle Act.  The AM Radio for Every Vehicle Act passed through the Senate Commerce Committee in July 2023 and passed through the House Energy and Commerce Committee in September 2024.

    MIL OSI USA News –

  • MIL-OSI Russia: Financial news: The Bank of Russia reduces macroprudential surcharges on credit cards during the grace period (01/29/2025)

    Translartion. Region: Russians Fedetion –

    Source: Central Bank of Russia –

    The Bank of Russia has approved surcharges to risk coefficients in connection with the entry into force new edition of the normative act, which determines the procedure for establishing macroprudential surcharges: surcharges for credit card debt in the grace period1 have been reduced, while those for other assets have been left unchanged.

    The Board of Directors of the Bank of Russia, when adopting this solutions proceeded from the following.

    Bank data show that credit card debt in the grace period is characterized by lower default rates (2-3 times lower than debt for which the grace period has ended). Borrowers use them mainly for transactions and do not pay interest on the debt during the grace period, which reduces the likelihood of it becoming delinquent. Clients who manage to repay the debt within the grace period, as a rule, are characterized by a more reliable risk profile. In this regard, in order to increase risk sensitivity, changes were made to the regulation, allowing for the establishment of macroprudential surcharges for debt in the grace period, depending on the debt burden ratio (DBR) of the borrower.

    Values of surcharges to risk coefficients in relation to debt on loans with a credit limit in the grace period formed from February 1, 2025

      PDN interval, %
    No PDN (0-30 (30-40sh (40-50sh (50-60sh (60-70sh (70-80sh 80, PDN not calculated
    Allowances 2.0 0.2 0.2 0.2 0.5 1.0 1.5 2.0

    Surcharges for credit card debt that has exited the grace period will be set in accordance with the surcharge matrix in effect since December 2, 2024.

    Reference: risk coefficient premiums for unsecured consumer loans granted from December 2, 2024

    Allowances PDN interval, %
    No PDN (0-30 (30-40sh (40-50sh (50-60sh (60-70sh (70-80sh 80, PDN not calculated
    PSC interval, % per annum (0-10sh 1.8 0.0 0.0 0.2 0.3 0.7 1.2 1.8
    (10-15sh 2.0 0.0 0.2 0.3 0.5 0.9 1.4 2.0
    (15-20sh 2.4 0.4 0.5 0.7 0.9 1.3 1.8 2.4
    (20-25 2.9 1.0 1.2 1.4 1.7 2.0 2.3 2.9
    (25-30 3.6 1.6 1.7 1.9 2.2 2.6 3.0 3.6
    (30-40sh 3.8 1.7 1.8 2.0 2.6 3.0 3.2 3.8
    (40-50sh 4.0 1.8 2.0 2.2 3.0 3.2 3.5 4.0
    (50-60sh 5.0 2.0 2.2 2.5 3.2 3.5 4.0 5.0
    60 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0

    According to the Bank of Russia, given the current structure of issuances, the average level of premium on credit cards in the grace period will be 0.7 (70%). For large banks, such debt currently accounts for one third to one half of all debt on credit cards. Despite the reduction in premiums for this part of the portfolio and the slowdown in lending growth (in December 2024, the unsecured loan portfolio decreased by 1.9% after near-zero changes in debt in October-November 2024), the macroprudential capital buffer for unsecured consumer loans2 will generally continue to accumulate due to the gradual renewal of the loan portfolio.

     

    1 The credit institution shall accrue interest on the current term debt on the specified requirements at the rate specified in the consumer credit (loan) agreement for performing transactions using a bank card, and shall not collect payments on the credit (loan), except for payments to repay the principal amount of the debt, in accordance with such agreement during the period of time specified therein.

    2 As of December 1, 2024, the macroprudential capital buffer for unsecured consumer loans (including cash loans) amounted to 0.8 trillion rubles (6% of the portfolio of these loans).

    When using the material, a link to the Press Service of the Bank of Russia is required.

    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/PR/? File = 638737649777799232FinStab. HTM

    MIL OSI Russia News –

  • MIL-OSI USA: Senator Coons, colleagues introduce bipartisan legislation to support firefighters with service-related cancers

    US Senate News:

    Source: United States Senator for Delaware Christopher Coons

    WASHINGTON – U.S. Senators Chris Coons (D-Del.), Amy Klobuchar (D-Minn.) and Kevin Cramer (R-N.D.) reintroduced the Honoring Our Fallen Heroes Act. This bipartisan legislation, which passed unanimously out of the Senate Judiciary Committee last year, would expand federal support for the families of firefighters and other first responders who pass away or become permanently disabled from service-related cancers. The Public Safety Officer Benefits (PSOB) program—which provides benefits to first responders injured in the line of duty and to their families—currently extends protection to first responders suffering from a narrow list of injuries and illnesses. This bill would expand PSOB coverage to more first responders and their families.

    “Firefighters face many life-threatening health risks. Not all of them move as swiftly as a heart attack, but families are no less deserving of benefits if they lose their loved ones to cancers they were exposed to the line of duty,” said Senator Coons. “We need to close this loophole in the PSOB program so that the families of firefighters and first responders who lost their lives due to service-related cancers or face severe disabilities receive the benefits they deserve.”

    “As we are seeing in California and throughout the country, our firefighters put their lives on the line every day to keep us safe, often exposing themselves to carcinogens that can have lethal long-term effects. It’s unacceptable that firefighters who succumb to cancer from work-related exposure or become permanently and totally disabled don’t receive the same treatment as others who die in the line of duty,” said Senator Klobuchar. “Our bipartisan legislation will honor the memory and sacrifice of St. Paul Fire Department Captain Mike Paidar and so many others who risk their lives in service of their communities.”

    “Our first responders epitomize courage and selfless sacrifice, confronting both the immediate perils of their duty and lingering health risks associated with their service,” said Senator Cramer. “The exposure to dangerous carcinogens happens on our behalf. When these heroes make the ultimate sacrifice, their families should not bear these burdens alone.”

    The Honoring our Fallen Heroes Act would expand access to federal support for the families of firefighters and first responders who pass away from cancer caused by carcinogenic exposure during their service. The bill would also extend disability benefits in cases where these first responders become permanently and totally disabled due to cancer.

    This legislation was introduced in honor of Michael Paidar, a fire captain who died in 2020 of an aggressive form of Acute Myeloid Leukemia. In 2021, after strong advocacy from the Paidar family, the Minnesota Department of Public Safety awarded line-of-duty benefits to Captain Paidar’s widow, Julie. This was the first time that Minnesota’s state PSOB program provided a firefighter’s family with benefits for cancer incurred in the line of duty. The Honoring Our Fallen Heroes Act would ensure that firefighters and other first responders across the country are eligible to receive similar benefits under the federal PSOB program. 

    In addition to Senators Coons, Klobuchar, and Cramer, this bill is also co-sponsored by Senators Alex Padilla (D-Calif.), Adam Schiff (D-Calif.), Jim Banks (R-Ind.), John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), Richard Blumenthal (D-Conn.), John Cornyn (R-Texas), Ted Cruz (R-Texas), Tammy Duckworth (D-Ill.), Dick Durbin (D-Ill.), John Fetterman (D-Pa.), Deb Fischer (R-Neb.), Lindsey Graham (R-S.C.), Mazie Hirono (D-Hawaii), John Hoeven (R-N.D.), Jim Justice (R-W.Va.), Mark Kelly (D-Ariz.), Ed Markey (D-Mass.), Mike Rounds (R-S.D.), Jeanne Shaheen (D-N.H.), Tim Sheehy (R-Mont.), Tina Smith (D-Minn.), Mark Warner (D-Va.), Elizabeth Warren (D-Mass.), Peter Welch (D-Vt.), Sheldon Whitehouse (D-R.I.), and Ron Wyden (D-Ore.).

    The legislation is endorsed by the International Association of Fire Fighters (IAFF), Association of State Criminal Investigative Agencies (ASCIA), Congressional Fire Services Institute (CFSI), Federal Law Enforcement Officers Association (FLEOA), Fraternal Order of Police (FOP), International Association of Fire Chiefs (IAFC), Major County Sheriffs of America (MCSA), Metropolitan Fire Chiefs Association (Metro Chiefs), National Association of Police Organizations (NAPO), National Fallen Firefighters Foundation (NFFF), National Fire Protection Association (NFPA), National Narcotics Officers’ Associations Coalition (NNOAC), National Volunteer Fire Council (NVFC), and the Sergeants Benevolent Association of the NYPD. 

    A full list of endorsement quotes is available here.

    Senator Coons has long-advocated for firefighters and first responders’ health, benefits, safety, and well-being. He worked to pass the bipartisan Fire Grants and Safety Act, which was signed into law by President Biden in 2023, and helps local fire departments access funding for training, personnel, and equipment—all of which are especially in demand from small and volunteer fire departments. He also cosponsored the Protecting America’s First Responders Act, which was signed into law in 2021, and improved the PSOB program by allowing benefit amounts to be calculated based on the date of the award and account for cost of living increases. In 2022, he introduced the Fighting Post-Traumatic Stress Disorder Act, a bipartisan bill to promote mental health programs for America’s first responders, who often face long-term effects from providing life-saving services in moments of crisis.

    MIL OSI USA News –

  • MIL-OSI United Nations: From policy to progress: UN deputy chief Mohammed outlines path for Africa’s clean energy transformation

    Source: United Nations 4

    Economic Development

    United Nations Deputy Secretary-General Amina Mohammed highlighted on Tuesday the critical need for collaborative and urgent action to achieve the ambitious goal of bringing electricity to 300 million Africans by 2030.

    “Access to electricity is not just a matter of convenience; it is a fundamental human right that underpins economic growth, education, healthcare, and gender equality,” Ms. Mohammed told African Heads of State attending the Mission 300 Africa Energy Summit in Dar es Salaam, Tanzania.  

    The Summit brought together African leaders and development partners to discuss Mission 300, an initiative by the African Development Bank and the World Bank. The initiative addresses energy access challenges and aims to create jobs for Africa’s youth and support future development.

    “We must work together, with a sense of urgency and commitment, to ensure that no one is left behind in this transformative journey,” Ms. Mohammed, stressed.

    Africa’s energy landscape presents a paradox. Despite being rich in renewable resources, the continent grapples with one of the lowest levels of energy access globally. As the UN deputy chief pointed out, nearly 600 million Africans lack access to electricity, making it essential to leverage the continent’s abundant renewable energy resources and critical minerals.

    Unlocking Africa’s potential

    “Africa has immense potential to show the world what a new economic development paradigm grounded in sustainability, resilience, justice, and inclusivity can look like,” Ms. Mohammed stated, and underscored the interconnectedness of enhanced energy access with broader development goals, such as health, education, and gender equality.

    “By advancing long-term energy security and sovereignty, we can foster peace, create green jobs, and build resilient livelihoods – paving the way for improved stability and prosperity across the continent,” she said.  

    She highlighted that with renewable energy now being the cheapest source of new electricity, the Mission 300 initiative represents a transformative opportunity for Africa.

    A shining example: Tanzania’s progress

    Ms. Mohammed praised Tanzania as a beacon of success, showcasing how rural electrification and off-grid renewable energy solutions can transform lives, particularly in remote and underserved areas.  

    “The country has made remarkable strides, with electricity access increasing from just 14 per cent in 2011 to 46 per cent in 2022,” she noted. This progress has led to over one million new connections, driving the rural electrification rate to 72 per cent.

    “This progress means that more boys and girls in remote areas can now study in well-lit classrooms, health workers can deliver life-saving services to off-grid populations, and rural businesses can thrive with reliable power,” said the UN deputy chief, emphasizing that energy access is not just about electricity – it’s about opportunity, equity, and the foundation of a brighter future.

    Policies and reforms for transforming African energy

    In a panel discussion that was held Monday on the theme Policies and Reforms for Transforming African Energy, Ms. Mohammed reiterated the need for comprehensive reforms to accelerate electrification across the continent. She stressed the role of renewable energy in driving sustainable development and reducing greenhouse gas emissions.

    “Africa is rich in renewable energy resources, from solar and wind to hydro and geothermal power,” she said. “By harnessing these resources, we can not only provide electricity to millions but also create green jobs, improve health outcomes, and protect the environment.”

    The Deputy Secretary-General highlighted three key areas for policymakers to focus on: fostering policy coherence, mobilizing finance and support, and enhancing transparent international cooperation.

    UN Tanzania/Muntazar Abuhaidary

    Fostering policy coherence

    Ms. Mohammed underscored the importance of coherent and aligned policies with Sustainable Development Goals (SDGs) and Nationally Determined Contributions (NDCs), the individual climate action plans submitted by each country under the Paris Agreement.  

    “Policy makers and the international institutions need to strive to ensure sector-wide plans are coherent and aligned with the achievement of the SDGs due in 2030, while investors need robust regulatory laws in place to ensure business can operate aligned with them,” she stressed.

    She added that “NDCs must coordinate the transition from fossil fuels with scaling of renewables and grid modernization and expansion, ensuring energy security and affordability.”  

    Ms. Mohammed also emphasized that NDCs represent a unique opportunity for all countries to align their new climate plans and energy strategies, together with addressing adaptation needs.

    Mobilizing finance and support

    While private sector investments are crucial, Ms. Mohammed stressed the importance of public financing, especially in modernizing grid infrastructure to expand access and integrate renewables. “Blending concessional public funds with commercial funds can help multiply renewable energy investments in developing countries,” she noted.

    “We must work to strengthen the health of Africa’s public finances and tackle unsustainable debt burdens that are crowding out essential public investments,” the UN deputy chief added, calling for long-term concessional finance and the implementation of the $1.3 trillion roadmap agreed last year at the UN climate conference in Baku.

    Transparent international cooperation

    Ms. Mohammed went on to emphasize the importance of international investments and cross-border partnerships in delivering electricity projects at a massive scale. “Public private partnerships need to be subject to stable and transparent public procurement rules throughout the whole project cycle,” she said.

    “Transparency and accountability should be a hallmark of Mission 300 and set a new standard for cooperation across the continent,” she concluded.

    African Heads of State commit to energy reforms

    The summit saw African Heads of State commit to concrete reforms and actions to expand access to reliable, affordable, and sustainable electricity. The Dar es Salaam Energy Declaration, endorsed by the summit, outlines the commitments and practical actions needed to achieve the Mission 300 goals.

    “Today, we have taken a significant step towards transforming Africa’s energy landscape,” said President Samia Suluhu Hassan of Tanzania. “By working together and implementing these reforms, we can ensure that our citizens have access to clean and affordable energy, which is essential for their well-being and economic prosperity.”

    Africa can lead clean energy transition

    In her closing remarks, Ms. Mohammed expressed optimism about Africa’s potential to lead the global clean energy transition.  

    “With the right policies and reforms, Africa can become a model for sustainable development and resilience,” she said. “Let us seize this opportunity to create a brighter future for our continent and its people.” 

    MIL OSI United Nations News –

  • MIL-OSI: ACNB Corporation Announces First Quarter Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    GETTYSBURG, Pa., Jan. 29, 2025 (GLOBE NEWSWIRE) — ACNB Corporation (NASDAQ: ACNB), financial holding company for ACNB Bank and ACNB Insurance Services, Inc., announced today that the Board of Directors approved and declared a regular quarterly cash dividend of $0.32 per share of ACNB Corporation common stock payable on March 14, 2025, to shareholders of record as of February 28, 2025. This per share amount reflects a 6.7% increase over the $0.30 per share paid in the first quarter of 2024. This dividend declaration is expected to result in aggregate dividend payments of approximately $3.38 million to ACNB Corporation shareholders in the first quarter of 2025, an increase of approximately 24% over the prior quarter, due to the additional shares expected to be issued to former Traditions Bancorp, Inc. shareholders upon the anticipated close of the acquisition on February 1, 2025.

    ACNB Corporation, headquartered in Gettysburg, PA, is the independent $2.4 billion financial holding company for the wholly-owned subsidiaries of ACNB Bank, Gettysburg, PA, and ACNB Insurance Services, Inc., Westminster, MD. Originally founded in 1857, ACNB Bank serves its marketplace with banking and wealth management services, including trust and retail brokerage, via a network of 27 community banking offices and two loan offices located in the Pennsylvania counties of Adams, Cumberland, Franklin, Lancaster and York and the Maryland counties of Baltimore, Carroll and Frederick. ACNB Insurance Services, Inc. is a full-service insurance agency with licenses in 46 states. The agency offers a broad range of property, casualty, health, life and disability insurance serving personal and commercial clients through office locations in Westminster and Jarrettsville, MD, and Gettysburg, PA. For more information regarding ACNB Corporation and its subsidiaries, please visit investor.acnb.com.

    FORWARD-LOOKING STATEMENTS – In addition to historical information, this press release may contain forward-looking statements. Examples of forward-looking statements include, but are not limited to, (a) projections or statements regarding future earnings, expenses, net interest income, other income, earnings or loss per share, asset mix and quality, growth prospects, capital structure, and other financial terms, (b) statements of plans and objectives of Management or the Board of Directors, and (c) statements of assumptions, such as economic conditions in the Corporation’s market areas. Such forward-looking statements can be identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “intends”, “will”, “should”, “anticipates”, or the negative of any of the foregoing or other variations thereon or comparable terminology, or by discussion of strategy. Forward-looking statements are subject to certain risks and uncertainties such as national, regional and local economic conditions, competitive factors, and regulatory limitations. Actual results may differ materially from those projected in the forward-looking statements. Such risks, uncertainties, and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: short-term and long-term effects of inflation and rising costs on the Corporation, customers and economy; effects of governmental and fiscal policies, as well as legislative and regulatory changes; effects of new laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) and their application with which the Corporation and its subsidiaries must comply; impacts of the capital and liquidity requirements of the Basel III standards; effects of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Financial Accounting Standards Board and other accounting standard setters; ineffectiveness of the business strategy due to changes in current or future market conditions; future actions or inactions of the United States government, including the effects of short-term and long-term federal budget and tax negotiations and a failure to increase the government debt limit or a prolonged shutdown of the federal government; effects of economic conditions particularly with regard to the negative impact of any pandemic, epidemic or health-related crisis and the responses thereto on the operations of the Corporation and current customers, specifically the effect of the economy on loan customers’ ability to repay loans; effects of competition, and of changes in laws and regulations on competition, including industry consolidation and development of competing financial products and services; inflation, securities market and monetary fluctuations; risks of changes in interest rates on the level and composition of deposits, loan demand, and the values of loan collateral, securities, and interest rate protection agreements, as well as interest rate risks; difficulties in acquisitions and integrating and operating acquired business operations, including information technology difficulties; challenges in establishing and maintaining operations in new markets; effects of technology changes; effects of general economic conditions and more specifically in the Corporation’s market areas; failure of assumptions underlying the establishment of reserves for loan losses and estimations of values of collateral and various financial assets and liabilities; acts of war or terrorism or geopolitical instability; disruption of credit and equity markets; ability to manage current levels of impaired assets; loss of certain key officers; ability to maintain the value and image of the Corporation’s brand and protect the Corporation’s intellectual property rights; continued relationships with major customers; and, potential impacts to the Corporation from continually evolving cybersecurity and other technological risks and attacks, including additional costs, reputational damage, regulatory penalties, and financial losses. We caution readers not to place undue reliance on these forward-looking statements. They only reflect Management’s analysis as of this date. The Corporation does not revise or update these forward-looking statements to reflect events or changed circumstances. Please carefully review the risk factors described in other documents the Corporation files from time to time with the SEC, including the Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Please also carefully review any Current Reports on Form 8-K filed by the Corporation with the SEC.

    ACNB #2025-3

    Contact: Kevin J. Hayes
    SVP/General Counsel,
    Secretary & Chief
    Governance Officer
    717.339.5161
    khayes@acnb.com

    The MIL Network –

  • MIL-OSI: National Fuel Reports First Quarter Earnings

    Source: GlobeNewswire (MIL-OSI)

    WILLIAMSVILLE, N.Y., Jan. 29, 2025 (GLOBE NEWSWIRE) — National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the first quarter of its 2025 fiscal year.

    FISCAL 2025 FIRST QUARTER SUMMARY

    • GAAP net income of $45.0 million (or $0.49 per share), which includes $104.6 million in non-cash, after-tax impairment charges in the Exploration & Production segment, compared to GAAP net income of $133.0 million (or $1.44 per share) in the prior year.
    • Adjusted operating results of $151.9 million (or $1.66 per share), an increase of 14%, or $16.7 million ($0.20 per share), compared to the prior year. See non-GAAP reconciliation on page 2.
    • Pipeline & Storage segment net income increased $8.4 million, or 35%, compared to the prior year, primarily due to the settlement of the Supply Corporation rate case, which led to increased rates effective February 1, 2024.
    • Utility segment net income increased $5.9 million, or 22%, compared to the prior year driven by a three-year settlement of a rate proceeding in the Company’s New York jurisdiction, which led to increased rates starting October 1, 2024.
    • E&P segment adjusted operating results increased $2.6 million, or 5%, compared to the prior year, supported by hedging-related gains, which more than offset the $0.08 per MMBtu decrease in the weighted average natural gas price compared to the prior year.
    • The Company repurchased $34 million of common stock during the quarter, which brings the total amount repurchased to $99 million, or 1.7 million shares, under the $200 million share buyback program, authorized in March 2024.
    • The Company is increasing its guidance for fiscal 2025 adjusted earnings per share to a range of $6.50 to $7.00 as a result of higher forecasted natural gas prices and ongoing improvements in the outlook for each segment.

    MANAGEMENT COMMENTS

    David P. Bauer, President and CEO of National Fuel Gas Company, stated: “Fiscal 2025 is off to a great start for National Fuel, with each business contributing to our strong consolidated adjusted operating results.

    “In our regulated segments, we are delivering on our long-term growth outlook, with adjusted earnings per share in the quarter increasing approximately 30% compared to the prior year. The recent approval of our rate case settlement in our New York utility jurisdiction, which extends through 2027, combined with the ongoing benefits from ratemaking activity in our Pennsylvania utility territory and at Supply Corporation, gives us further confidence in our 7% to 10% earnings growth projections over the next three years. Furthermore, our integrated upstream and gathering operations in the Eastern Development Area (“EDA”) continue to exceed expectations, with the combination of strong operational execution and our highly-prolific assets. This differentiated ability to drive capital efficiency improvements alongside a rising price outlook for natural gas positions these businesses to deliver strong results in the coming years. We expect that these tailwinds will contribute to rising free cash flow across the system and deliver significant value to National Fuel shareholders.”

    RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS

           
      Three Months Ended
      December 31,
    (in thousands except per share amounts) 2024   2023
    Reported GAAP Earnings $ 44,986     $ 133,020  
    Items impacting comparability:      
    Impairment of assets (E&P)   141,802       —  
    Tax impact of impairment of assets   (37,169 )     —  
    Unrealized (gain) loss on derivative asset (E&P)   349       4,198  
    Tax impact of unrealized (gain) loss on derivative asset   (94 )     (1,151 )
    Unrealized (gain) loss on other investments (Corporate / All Other)   2,617       (1,049 )
    Tax impact of unrealized (gain) loss on other investments   (550 )     220  
    Adjusted Operating Results $ 151,941     $ 135,238  
           
    Reported GAAP Earnings Per Share $ 0.49     $ 1.44  
    Items impacting comparability:      
    Impairment of assets, net of tax (E&P)   1.14       —  
    Unrealized (gain) loss on derivative asset, net of tax (E&P)   —       0.03  
    Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)   0.02       (0.01 )
    Rounding   0.01       —  
    Adjusted Operating Results Per Share $ 1.66     $ 1.46  
                   

    FISCAL 2025 GUIDANCE UPDATE

    National Fuel is increasing its guidance for fiscal 2025 adjusted earnings per share, which are now expected to be within a range of $6.50 to $7.00. This updated range incorporates better than expected results in the first quarter along with the anticipated impact of higher natural gas prices and higher production in the Exploration and Production segment for the remainder of the fiscal year. The Company is now assuming NYMEX natural gas prices will average $3.50 per MMBtu for the remaining nine months of fiscal 2025, an increase of $0.70 from the $2.80 per MMBtu assumed in previous guidance. This updated natural gas price projection approximates the current NYMEX forward curve at this time, however; given the continued volatility in NYMEX natural gas prices, the Company is providing the following sensitivities to its adjusted operating results guidance range:

    NYMEX Assumption 
    Remaining 9 months 
    ($/MMBtu)    		 Fiscal 2025 
    Adjusted Earnings 
    Per Share Sensitivities
    $3.00 $6.15 – $6.65
    $3.50 $6.50 – $7.00
    $4.00 $6.90 – $7.40

    The Company’s production guidance for fiscal 2025 is now expected to be in the range of 410 to 425 Bcfe, an increase of 7.5 Bcfe, or 2%, at the midpoint compared to previous guidance. The revised production guidance is principally a result of ongoing improvements in Seneca’s well results and additional operational efficiencies in the highly prolific EDA. This is also expected to result in increased Gathering segment revenue, relative to the Company’s prior projections, and as a result the Company has increased the midpoint of its guidance range by $5 million. While the Company’s guidance does not incorporate any future price-related curtailments, with 87% of its projected fiscal 2025 production linked to firm sales contracts, Seneca has limited exposure to in-basin markets. Further, 71% of expected production for the balance of the fiscal year is either matched by a financial hedge, including a combination of swaps and no-cost collars, or was entered into at a fixed price, both of which provide price certainty for that production.

    Additionally, as a result of operational improvements, the Company is revising Seneca’s capital expenditure guidance range downward to $495 million to $515 million, or $505 million at the midpoint, which is a $5 million decrease from the midpoint of the Company’s previous guidance.

    The Company’s other fiscal 2025 guidance assumptions remain largely unchanged and are detailed in the table on page 7.

    DISCUSSION OF FIRST QUARTER RESULTS BY SEGMENT

    The following earnings discussion of each operating segment for the quarter ended December 31, 2024 is summarized in a tabular form on pages 8 and 9 of this report. It may be helpful to refer to those tables while reviewing this discussion.

    Note that management defines adjusted operating results as reported GAAP earnings adjusted for items impacting comparability, and adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability.

    Upstream Business

    Exploration and Production Segment

    The Exploration and Production segment operations are carried out by Seneca Resources Company, LLC (“Seneca”). Seneca explores for, develops and produces primarily natural gas reserves in Pennsylvania.

      Three Months Ended
      December 31,
    (in thousands) 2024   2023   Variance
    GAAP Earnings $ (46,777 )   $ 52,483   $ (99,260 )
    Impairment of assets, net of tax   104,633       —     104,633  
    Unrealized (gain) loss on derivative asset, net of tax   255       3,047     (2,792 )
    Adjusted Operating Results $ 58,111     $ 55,530   $ 2,581  
               
    Adjusted EBITDA $ 156,645     $ 159,970   $ (3,325 )
                         

    Seneca’s first quarter GAAP earnings decreased $99.3 million versus the prior year. This was driven by non-cash, pre-tax impairment charges of $141.8 million ($104.6 million after-tax), the majority of which is related to a “ceiling test” impairment which required Seneca to write-down the book value of its reserves under the full cost method of accounting. For purposes of the ceiling test, the 12-month average of first day of the month pricing for NYMEX natural gas for the period ended December 31, 2024 was $2.13 per MMBtu.

    Excluding impairments, as well as the net impact of unrealized losses related to reductions in the fair value of contingent consideration received in connection with the June 2022 divestiture of Seneca’s California assets (see table above), Seneca’s adjusted operating results increased $2.6 million primarily due to higher realized natural gas prices after the impact of hedging and lower per unit operating expenses, partially offset by lower natural gas production.

    During the first quarter, Seneca produced 97.7 Bcf of natural gas, a decrease of 3.0 Bcf, or 3%, from the prior year. Compared to the preceding fourth quarter of fiscal 2024, production in the first quarter is higher by 5.8 Bcf, or 6%. Early in the quarter, Seneca curtailed approximately 1 Bcf of production due to low in-basin pricing. Production in the quarter was lower than the prior year largely due to the timing of turn in line dates for new wells between fiscal years.

    Seneca’s average realized natural gas price, after the impact of hedging and transportation costs, was $2.53 per Mcf, an increase of $0.02 per Mcf from the prior year. Seneca recorded hedging gains of $29.7 million, or an uplift of $0.30 per Mcf, during the quarter, which more than offset a $0.08 per Mcf decrease in pre-hedge natural gas price realizations versus the prior year.

    On a per unit basis, first quarter Lease Operating Expense (“LOE”) was $0.67 per Mcf, consistent with the prior year. LOE included $55.0 million ($0.56 per Mcf) for gathering and compression services from the Company’s Gathering segment to connect Seneca’s production to sales points along interstate pipelines. General and Administrative Expense (“G&A”) was $0.20 per Mcf, an increase of $0.02 per Mcf compared to the prior year driven by the combination of higher personnel costs and modestly lower production. Depreciation, Depletion and Amortization Expense (“DD&A”) was $0.65 per Mcf, a decrease of $0.06 per Mcf from the prior year largely due to ceiling test impairments recorded in the third and fourth quarters of fiscal 2024 that lowered Seneca’s full cost pool depletable base.

    Midstream Businesses

    Pipeline and Storage Segment

    The Pipeline and Storage segment’s operations are carried out by National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire Pipeline, Inc. (“Empire”). The Pipeline and Storage segment provides natural gas transportation and storage services to affiliated and non-affiliated companies through an integrated system of pipelines and underground natural gas storage fields in western New York and Pennsylvania.

      Three Months Ended
      December 31,
    (in thousands) 2024   2023   Variance
    GAAP Earnings $ 32,454   $ 24,055   $ 8,399
               
    Adjusted EBITDA $ 70,953   $ 59,142   $ 11,811
                     

    The Pipeline and Storage segment’s first quarter GAAP earnings increased $8.4 million versus the prior year primarily due to higher operating revenues, partly offset by higher operation and maintenance (“O&M”) expense.

    The increase in operating revenues of $12.2 million, or 13%, was primarily attributable to an increase in Supply Corporation’s transportation and storage rates effective February 1, 2024, in accordance with its rate settlement, which was approved in fiscal 2024. O&M expense increased $1.1 million primarily due to higher pipeline integrity and labor-related costs.

    Gathering Segment

    The Gathering segment’s operations are carried out by National Fuel Gas Midstream Company, LLC’s limited liability companies. The Gathering segment constructs, owns and operates natural gas gathering pipelines and compression facilities in the Appalachian region, which delivers Seneca and other non-affiliated Appalachian production to the interstate pipeline system.

      Three Months Ended
      December 31,
    (in thousands) 2024   2023   Variance
    GAAP Earnings $ 27,145   $ 28,825   $ (1,680 )
               
    Adjusted EBITDA $ 51,936   $ 53,061   $ (1,125 )
                       

    The Gathering segment’s first quarter GAAP earnings decreased $1.7 million versus the prior year due to lower operating revenues and higher DD&A expense.

    Operating revenues decreased $1.5 million, or 2%, primarily due to a decrease in throughput from Seneca. DD&A expense increased $1.1 million primarily due to higher average depreciable plant in service compared to the prior year.

    Downstream Business

    Utility Segment

    The Utility segment operations are carried out by National Fuel Gas Distribution Corporation (“Distribution Corporation”), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania.

      Three Months Ended
      December 31,
    (in thousands) 2024   2023   Variance
    GAAP Earnings $ 32,499   $ 26,551   $ 5,948
               
    Adjusted EBITDA $ 60,665   $ 53,366   $ 7,299
                     

    The Utility segment’s first quarter GAAP earnings increased $5.9 million, or 22%, primarily as a result of the implementation of the recent rate case order in the Utility’s New York jurisdiction.

    For the quarter, customer margin (operating revenues less purchased gas sold) increased $9.1 million, primarily due to the aforementioned rate case in Distribution Corporation’s New York jurisdiction, for which a settlement became effective October 1, 2024. Other income, which was also impacted by the rate settlement, increased $4.0 million. This was in large part due to the recognition of non-service pension and post-retirement benefit income that is offset with a corresponding reduction in new base rates and as a result, has no effect on net income.

    O&M expense increased by $1.6 million, primarily driven by higher personnel costs, partially offset by a reduction related to amortizations of certain regulatory assets as a result of the New York rate settlement. DD&A expense increased $0.8 million primarily due to higher average depreciable plant in service compared to the prior year. Interest expense increased $2.3 million primarily due to a higher average amount of net borrowings.

    Corporate and All Other

    The Company’s operations that are included in Corporate and All Other generated a combined net loss of $0.3 million in the current-year first quarter, which was $1.4 million lower than combined earnings of $1.1 million in the prior-year first quarter. The reduction in earnings during the quarter was primarily driven by unrealized losses recorded on investment securities that fund non-qualified retirement benefit plans.

    EARNINGS TELECONFERENCE

    A conference call to discuss the results will be held on Thursday, January 30, 2025, at 9 a.m. ET. All participants must pre-register to join this conference using the Participant Registration link. A webcast link to the conference call will be provided under the Events Calendar on the NFG Investor Relations website at investor.nationalfuelgas.com. A replay will be available following the call through the end of the day, Thursday, February 6, 2025. To access the replay, dial 1-866-813-9403 and provide Access Code 245940.

    National Fuel is an integrated energy company reporting financial results for four operating segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. Additional information about National Fuel is available at www.nationalfuel.com.

    Certain statements contained herein, including statements identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, and statements which are other than statements of historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: impairments under the SEC’s full cost ceiling test for natural gas reserves; changes in the price of natural gas; changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design, retained natural gas and system modernization), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; the Company’s ability to estimate accurately the time and resources necessary to meet emissions targets; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; changes in economic conditions, including inflationary pressures, supply chain issues, liquidity challenges, and global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; changes in price differentials between similar quantities of natural gas sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; the impact of information technology disruptions, cybersecurity or data security breaches; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas reserves, including among others geology, lease availability and costs, title disputes, weather conditions, water availability and disposal or recycling opportunities of used water, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; the Company’s ability to complete strategic transactions; increased costs or delays or changes in plans with respect to Company projects or related projects of other companies, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; other changes in price differentials between similar quantities of natural gas having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; negotiations with the collective bargaining units representing the Company’s workforce, including potential work stoppages during negotiations; uncertainty of natural gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas; changes in demographic patterns and weather conditions (including those related to climate change); changes in the availability, price or accounting treatment of derivative financial instruments; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war, as well as economic and operational disruptions due to third-party outages; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.

    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES 

    GUIDANCE SUMMARY

    As discussed on page 2, the Company is revising its adjusted earnings per share guidance for fiscal 2025. Additional details on the Company’s forecast assumptions and business segment guidance are outlined in the table below.

    The revised adjusted earnings per share guidance range excludes certain items that impacted the comparability of adjusted operating results during the three months ended December 31, 2024, including: (1) the after tax impairment of assets, which reduced earnings by $1.14 per share; (2) after-tax unrealized losses on a derivative asset, which reduced earnings by less than $0.01 per share; and (3) after-tax unrealized losses on other investments, which reduced earnings by $0.02 per share. While the Company expects to record certain adjustments to unrealized gain or loss on a derivative asset and unrealized gain or loss on investments during the nine months ending September 30, 2025, the amounts of these and other potential adjustments and charges, including ceiling test impairments, are not reasonably determinable at this time. As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis.

      Previous FY 2025 Guidance   Updated FY 2025 Guidance
           
    Consolidated Adjusted Earnings per Share $5.50 to $6.00   $6.50 to $7.00
    Consolidated Effective Tax Rate ~ 24.5 – 25%   ~ 25%
           
    Capital Expenditures(Millions)      
    Exploration and Production $495 – $525   $495 – $515
    Pipeline and Storage $130 – $150   $130 – $150
    Gathering $95 – $110   $95 – $110
    Utility $165 – $185   $165 – $185
    Consolidated Capital Expenditures $885 – $970   $885 – $960
           
    Exploration and Production Segment Guidance      
           
    Commodity Price Assumptions*      
    NYMEX natural gas price $2.80 /MMBtu   $3.50 /MMBtu
    Appalachian basin spot price $2.00 /MMBtu   $2.90 /MMBtu
           
    Realized natural gas prices, after hedging ($/Mcf) $2.47 – $2.51   $2.77 – $2.81
           
    Production (Bcf) 400 to 420   410 to 425
           
    E&P Operating Costs($/Mcf)      
    LOE $0.68 – $0.70   $0.68 – $0.70
    G&A $0.18 – $0.19   $0.18 – $0.19
    DD&A $0.65 – $0.69   $0.63 – $0.67
           
    Other Business Segment Guidance(Millions)      
    Gathering Segment Revenues $245 – $255   $250 – $260
    Pipeline and Storage Segment Revenues $415 – $435   $415 – $435
           

    * Commodity price assumptions are for the remaining nine months of the fiscal year.

    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
    QUARTER ENDED DECEMBER 31, 2024
    (Unaudited)
                           
      Upstream   Midstream   Downstream        
                           
      Exploration &   Pipeline &           Corporate /    
    (Thousands of Dollars) Production   Storage   Gathering   Utility   All Other   Consolidated*
                           
    First quarter 2024 GAAP earnings $ 52,483     $ 24,055     $ 28,825     $ 26,551     $ 1,106     $ 133,020  
    Items impacting comparability:                      
    Unrealized (gain) loss on derivative asset   4,198                       4,198  
    Tax impact of unrealized (gain) loss on derivative asset   (1,151 )                     (1,151 )
    Unrealized (gain) loss on other investments                   (1,049 )     (1,049 )
    Tax impact of unrealized (gain) loss on other investments                   220       220  
    First quarter 2024 adjusted operating results   55,530       24,055       28,825       26,551       277       135,238  
    Drivers of adjusted operating results**                      
    Upstream Revenues                      
    Higher (lower) natural gas production   (6,016 )                     (6,016 )
    Higher (lower) realized natural gas prices, after hedging   1,885                       1,885  
    Midstream Revenues                      
    Higher (lower) operating revenues       9,637       (1,151 )             8,486  
    Downstream Margins***                      
    Impact of usage and weather               (325 )         (325 )
    Impact of new rates in New York               7,865           7,865  
    Operating Expenses                      
    Lower (higher) lease operating and transportation expenses   1,133                       1,133  
    Lower (higher) operating expenses       (856 )         (1,244 )         (2,100 )
    Lower (higher) depreciation / depletion   6,842           (835 )     (624 )         5,383  
    Other Income (Expense)                      
    Higher (lower) other income   (1,680 )             3,176       1,686       3,182  
    (Higher) lower interest expense               (1,785 )         (1,785 )
    Income Taxes                      
    Lower (higher) income tax expense / effective tax rate   (8 )     (488 )     443       (584 )     205       (432 )
    All other / rounding   425       106       (137 )     (531 )     (436 )     (573 )
    First quarter 2025 adjusted operating results   58,111       32,454       27,145       32,499       1,732       151,941  
    Items impacting comparability:                      
    Impairment of assets   (141,802 )                     (141,802 )
    Tax impact of impairment of assets   37,169                       37,169  
    Unrealized gain (loss) on derivative asset   (349 )                     (349 )
    Tax impact of unrealized gain (loss) on derivative asset   94                       94  
    Unrealized gain (loss) on other investments                   (2,617 )     (2,617 )
    Tax impact of unrealized gain (loss) on other investments                   550       550  
    First quarter 2025 GAAP earnings $ (46,777 )   $ 32,454     $ 27,145     $ 32,499     $ (335 )   $ 44,986  
                           
    * Amounts do not reflect intercompany eliminations.           
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** Downstream margin defined as operating revenues less purchased gas expense.
     
    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
    QUARTER ENDED DECEMBER 31, 2024
    (Unaudited)
                           
      Upstream   Midstream   Downstream        
                           
      Exploration &   Pipeline &           Corporate /    
      Production   Storage   Gathering   Utility   All Other   Consolidated*
                           
    First quarter 2024 GAAP earnings per share $ 0.57     $ 0.26     $ 0.31     $ 0.29     $ 0.01     $ 1.44  
    Items impacting comparability:                      
    Unrealized (gain) loss on derivative asset, net of tax   0.03                       0.03  
    Unrealized (gain) loss on other investments, net of tax                   (0.01 )     (0.01 )
    First quarter 2024 adjusted operating results per share   0.60       0.26       0.31       0.29       —       1.46  
    Drivers of adjusted operating results**                      
    Upstream Revenues                      
    Higher (lower) natural gas production   (0.07 )                     (0.07 )
    Higher (lower) realized natural gas prices, after hedging   0.02                       0.02  
    Midstream Revenues                      
    Higher (lower) operating revenues       0.11       (0.01 )             0.10  
    Downstream Margins***                      
    Impact of usage and weather               —           —  
    Impact of new rates in New York               0.09           0.09  
    Operating Expenses                      
    Lower (higher) lease operating and transportation expenses   0.01                       0.01  
    Lower (higher) operating expenses       (0.01 )         (0.01 )         (0.02 )
    Lower (higher) depreciation / depletion   0.08           (0.01 )     (0.01 )         0.06  
    Other Income (Expense)                      
    Higher (lower) other income   (0.02 )             0.03       0.02       0.03  
    (Higher) lower interest expense               (0.02 )         (0.02 )
    Income Taxes                      
    Lower (higher) income tax expense / effective tax rate   —       (0.01 )     —       (0.01 )     —       (0.02 )
    All other / rounding   0.02       —       0.01       —       (0.01 )     0.02  
    First quarter 2025 adjusted operating results per share   0.64       0.35       0.30       0.36       0.01       1.66  
    Items impacting comparability:                      
    Impairment of assets, net of tax   (1.14 )                     (1.14 )
    Unrealized gain (loss) on derivative asset, net of tax   —                       —  
    Unrealized gain (loss) on other investments, net of tax                   (0.02 )     (0.02 )
    Rounding   (0.01 )                     (0.01 )
    First quarter 2025 GAAP earnings per share $ (0.51 )   $ 0.35     $ 0.30     $ 0.36     $ (0.01 )   $ 0.49  
                           
    * Amounts do not reflect intercompany eliminations.           
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** Downstream margin defined as operating revenues less purchased gas expense.
     
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
           
    (Thousands of Dollars, except per share amounts)      
      Three Months Ended
      December 31,
      (Unaudited)
    SUMMARY OF OPERATIONS 2024   2023
    Operating Revenues:      
    Utility Revenues $ 228,424     $ 201,920  
    Exploration and Production and Other Revenues   248,860       254,019  
    Pipeline and Storage and Gathering Revenues   72,198       69,422  
        549,482       525,361  
    Operating Expenses:      
    Purchased Gas   65,337       56,552  
    Operation and Maintenance:      
    Utility   55,244       53,705  
    Exploration and Production and Other   33,541       34,826  
    Pipeline and Storage and Gathering   35,941       34,962  
    Property, Franchise and Other Taxes   22,056       22,416  
    Depreciation, Depletion and Amortization   109,370       115,790  
    Impairment of Assets   141,802       —  
        463,291       318,251  
           
    Operating Income   86,191       207,110  
           
    Other Income (Expense):      
    Other Income (Deductions)   7,720       3,732  
    Interest Expense on Long-Term Debt   (33,362 )     (28,462 )
    Other Interest Expense   (4,381 )     (6,273 )
           
    Income Before Income Taxes   56,168       176,107  
           
    Income Tax Expense   11,182       43,087  
           
    Net Income Available for Common Stock $ 44,986     $ 133,020  
           
    Earnings Per Common Share      
    Basic $ 0.50     $ 1.45  
    Diluted $ 0.49     $ 1.44  
           
    Weighted Average Common Shares:      
    Used in Basic Calculation   90,777,446       91,910,244  
    Used in Diluted Calculation   91,434,741       92,442,145  
                   
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (Unaudited)
       
      December 31,   September 30,
    (Thousands of Dollars) 2024   2024
    ASSETS      
    Property, Plant and Equipment $ 14,675,281     $ 14,524,798  
    Less – Accumulated Depreciation, Depletion and Amortization   7,393,477       7,185,593  
    Net Property, Plant and Equipment   7,281,804       7,339,205  
    Current Assets:      
    Cash and Temporary Cash Investments   48,694       38,222  
    Receivables – Net   202,821       127,222  
    Unbilled Revenue   57,117       15,521  
    Gas Stored Underground   24,725       35,055  
    Materials and Supplies – at average cost   47,820       47,670  
    Other Current Assets   83,435       92,229  
    Total Current Assets   464,612       355,919  
    Other Assets:      
    Recoverable Future Taxes   83,740       80,084  
    Unamortized Debt Expense   5,206       5,604  
    Other Regulatory Assets   106,386       108,022  
    Deferred Charges   68,952       69,662  
    Other Investments   71,493       81,705  
    Goodwill   5,476       5,476  
    Prepaid Pension and Post-Retirement Benefit Costs   185,224       180,230  
    Fair Value of Derivative Financial Instruments   20,695       87,905  
    Other   7,860       5,958  
    Total Other Assets   555,032       624,646  
    Total Assets $ 8,301,448     $ 8,319,770  
    CAPITALIZATION AND LIABILITIES      
    Capitalization:      
    Comprehensive Shareholders’ Equity      
    Common Stock, $1 Par Value Authorized – 200,000,000 Shares; Issued and      
    Outstanding – 90,612,955 Shares and 91,005,993 Shares, Respectively $ 90,613     $ 91,006  
    Paid in Capital   1,039,705       1,045,487  
    Earnings Reinvested in the Business   1,698,648       1,727,326  
    Accumulated Other Comprehensive Loss   (76,153 )     (15,476 )
    Total Comprehensive Shareholders’ Equity   2,752,813       2,848,343  
    Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs   2,189,421       2,188,243  
    Total Capitalization   4,942,234       5,036,586  
    Current and Accrued Liabilities:      
    Notes Payable to Banks and Commercial Paper   200,000       90,700  
    Current Portion of Long-Term Debt   500,000       500,000  
    Accounts Payable   120,991       165,068  
    Amounts Payable to Customers   42,587       42,720  
    Dividends Payable   46,671       46,872  
    Interest Payable on Long-Term Debt   44,376       27,247  
    Customer Advances   15,295       19,373  
    Customer Security Deposits   36,091       36,265  
    Other Accruals and Current Liabilities   172,409       162,903  
    Fair Value of Derivative Financial Instruments   20,893       4,744  
    Total Current and Accrued Liabilities   1,199,313       1,095,892  
    Other Liabilities:      
    Deferred Income Taxes   1,089,394       1,111,165  
    Taxes Refundable to Customers   303,344       305,645  
    Cost of Removal Regulatory Liability   296,660       292,477  
    Other Regulatory Liabilities   147,561       151,452  
    Other Post-Retirement Liabilities   3,476       3,511  
    Asset Retirement Obligations   199,310       203,006  
    Other Liabilities   120,156       120,036  
    Total Other Liabilities   2,159,901       2,187,292  
    Commitments and Contingencies   —       —  
    Total Capitalization and Liabilities $ 8,301,448     $ 8,319,770  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
      Three Months Ended
      December 31,
    (Thousands of Dollars) 2024   2023
           
    Operating Activities:      
    Net Income Available for Common Stock $ 44,986     $ 133,020  
    Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:      
    Impairment of Assets   141,802       —  
    Depreciation, Depletion and Amortization   109,370       115,790  
    Deferred Income Taxes   (5,385 )     38,362  
    Stock-Based Compensation   4,705       4,660  
    Other   7,146       8,041  
    Change in:      
    Receivables and Unbilled Revenue   (115,165 )     (58,459 )
    Gas Stored Underground and Materials and Supplies   10,180       6,915  
    Other Current Assets   8,814       892  
    Accounts Payable   9,703       (3,355 )
    Amounts Payable to Customers   (133 )     1,013  
    Customer Advances   (4,078 )     2,083  
    Customer Security Deposits   (174 )     2,079  
    Other Accruals and Current Liabilities   21,266       28,612  
    Other Assets   (3,892 )     (6,306 )
    Other Liabilities   (9,057 )     (2,403 )
    Net Cash Provided by Operating Activities $ 220,088     $ 270,944  
           
    Investing Activities:      
    Capital Expenditures $ (240,427 )   $ (246,938 )
    Other   5,878       (920 )
    Net Cash Used in Investing Activities $ (234,549 )   $ (247,858 )
           
    Financing Activities:      
    Changes in Notes Payable to Banks and Commercial Paper   109,300       12,500  
    Shares Repurchased Under Repurchase Plan   (33,524 )     —  
    Dividends Paid on Common Stock   (46,872 )     (45,451 )
    Net Repurchases of Common Stock Under Stock and Benefit Plans   (3,971 )     (3,897 )
    Net Cash Provided by (Used in) Financing Activities $ 24,933     $ (36,848 )
           
    Net Increase (Decrease) in Cash and Cash Equivalents   10,472       (13,762 )
    Cash and Cash Equivalents at Beginning of Period   38,222       55,447  
    Cash and Cash Equivalents at December 31 $ 48,694     $ 41,685  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
               
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
               
    UPSTREAM BUSINESS
               
               
      Three Months Ended
    (Thousands of Dollars, except per share amounts) December 31,
    EXPLORATION AND PRODUCTION SEGMENT 2024   2023   Variance
    Total Operating Revenues $ 248,860     $ 254,019     $ (5,159 )
    Operating Expenses:          
    Operation and Maintenance:          
    General and Administrative Expense   19,326       17,793       1,533  
    Lease Operating and Transportation Expense   65,640       67,074       (1,434 )
    All Other Operation and Maintenance Expense   3,867       5,544       (1,677 )
    Property, Franchise and Other Taxes   3,382       3,638       (256 )
    Depreciation, Depletion and Amortization   63,304       71,965       (8,661 )
    Impairment of Assets   141,802       —       141,802  
        297,321       166,014       131,307  
               
    Operating Income (Loss)   (48,461 )     88,005       (136,466 )
               
    Other Income (Expense):          
    Non-Service Pension and Post-Retirement Benefit Credit   37       100       (63 )
    Interest and Other Income (Deductions)   272       (1,513 )     1,785  
    Interest Expense   (15,200 )     (15,268 )     68  
    Income (Loss) Before Income Taxes   (63,352 )     71,324       (134,676 )
    Income Tax Expense (Benefit)   (16,575 )     18,841       (35,416 )
    Net Income (Loss) $ (46,777 )   $ 52,483     $ (99,260 )
    Net Income (Loss) Per Share (Diluted) $ (0.51 )   $ 0.57     $ (1.08 )
               
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
               
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
               
    MIDSTREAM BUSINESSES
               
      Three Months Ended
    (Thousands of Dollars, except per share amounts) December 31,
    PIPELINE AND STORAGE SEGMENT 2024   2023   Variance
    Revenues from External Customers $ 68,750     $ 64,826     $ 3,924  
    Intersegment Revenues   37,862       29,587       8,275  
    Total Operating Revenues   106,612       94,413       12,199  
    Operating Expenses:          
    Purchased Gas   (42 )     601       (643 )
    Operation and Maintenance   27,034       25,950       1,084  
    Property, Franchise and Other Taxes   8,667       8,720       (53 )
    Depreciation, Depletion and Amortization   18,585       18,213       372  
        54,244       53,484       760  
               
    Operating Income   52,368       40,929       11,439  
               
    Other Income (Expense):          
    Non-Service Pension and Post-Retirement Benefit Credit   952       1,257       (305 )
    Interest and Other Income   2,040       1,931       109  
    Interest Expense   (11,729 )     (11,725 )     (4 )
    Income Before Income Taxes   43,631       32,392       11,239  
    Income Tax Expense   11,177       8,337       2,840  
    Net Income $ 32,454     $ 24,055     $ 8,399  
    Net Income Per Share (Diluted) $ 0.35     $ 0.26     $ 0.09  
               
               
      Three Months Ended
      December 31,
    GATHERING SEGMENT 2024   2023   Variance
    Revenues from External Customers $ 3,448     $ 4,596     $ (1,148 )
    Intersegment Revenues   57,683       57,992       (309 )
    Total Operating Revenues   61,131       62,588       (1,457 )
    Operating Expenses:          
    Operation and Maintenance   9,429       9,504       (75 )
    Property, Franchise and Other Taxes   (234 )     23       (257 )
    Depreciation, Depletion and Amortization   10,515       9,458       1,057  
        19,710       18,985       725  
               
    Operating Income   41,421       43,603       (2,182 )
               
    Other Income (Expense):          
    Non-Service Pension and Post-Retirement Benefit Credit   —       9       (9 )
    Interest and Other Income   58       73       (15 )
    Interest Expense   (4,210 )     (3,729 )     (481 )
    Income Before Income Taxes   37,269       39,956       (2,687 )
    Income Tax Expense   10,124       11,131       (1,007 )
    Net Income $ 27,145     $ 28,825     $ (1,680 )
    Net Income Per Share (Diluted) $ 0.30     $ 0.31     $ (0.01 )
               
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
               
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
               
    DOWNSTREAM BUSINESS
               
               
      Three Months Ended
    (Thousands of Dollars, except per share amounts) December 31,
    UTILITY SEGMENT 2024   2023   Variance
    Revenues from External Customers $ 228,424     $ 201,920     $ 26,504  
    Intersegment Revenues   85       87       (2 )
    Total Operating Revenues   228,509       202,007       26,502  
    Operating Expenses:          
    Purchased Gas   101,473       84,051       17,422  
    Operation and Maintenance   56,260       54,684       1,576  
    Property, Franchise and Other Taxes   10,111       9,906       205  
    Depreciation, Depletion and Amortization   16,827       16,037       790  
        184,671       164,678       19,993  
               
    Operating Income   43,838       37,329       6,509  
               
    Other Income (Expense):          
    Non-Service Pension and Post-Retirement Benefit Credit   5,871       470       5,401  
    Interest and Other Income   528       1,911       (1,383 )
    Interest Expense   (10,716 )     (8,457 )     (2,259 )
    Income Before Income Taxes   39,521       31,253       8,268  
    Income Tax Expense   7,022       4,702       2,320  
    Net Income $ 32,499     $ 26,551     $ 5,948  
    Net Income Per Share (Diluted) $ 0.36     $ 0.29     $ 0.07  
               
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
               
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
               
      Three Months Ended
    (Thousands of Dollars, except per share amounts) December 31,
    ALL OTHER 2024   2023   Variance
    Total Operating Revenues $ —     $ —     $ —  
    Operating Expenses:          
    Operation and Maintenance   —       —       —  
        —       —       —  
               
    Operating Income   —       —       —  
    Other Income (Expense):          
    Interest and Other Income (Deductions)   (136 )     (77 )     (59 )
    Interest Expense   (116 )     (81 )     (35 )
    Loss before Income Taxes   (252 )     (158 )     (94 )
    Income Tax Benefit   (59 )     (37 )     (22 )
    Net Loss $ (193 )   $ (121 )   $ (72 )
    Net Loss Per Share (Diluted) $ —     $ —     $ —  
       
      Three Months Ended
      December 31,
    CORPORATE 2024   2023   Variance
    Revenues from External Customers $ —     $ —     $ —  
    Intersegment Revenues   1,341       1,285       56  
    Total Operating Revenues   1,341       1,285       56  
    Operating Expenses:          
    Operation and Maintenance   4,047       3,795       252  
    Property, Franchise and Other Taxes   130       129       1  
    Depreciation, Depletion and Amortization   139       117       22  
        4,316       4,041       275  
               
    Operating Loss   (2,975 )     (2,756 )     (219 )
    Other Income (Expense):          
    Non-Service Pension and Post-Retirement Benefit Costs   (212 )     (387 )     175  
    Interest and Other Income   41,061       41,030       31  
    Interest Expense on Long-Term Debt   (33,362 )     (28,462 )     (4,900 )
    Other Interest Expense   (5,161 )     (8,085 )     2,924  
    Income (Loss) before Income Taxes   (649 )     1,340       (1,989 )
    Income Tax Expense (Benefit)   (507 )     113       (620 )
    Net Income (Loss) $ (142 )   $ 1,227     $ (1,369 )
    Net Income (Loss) Per Share (Diluted) $ (0.01 )   $ 0.01     $ (0.02 )
               
               
      Three Months Ended
      December 31,
    INTERSEGMENT ELIMINATIONS 2024   2023   Variance
    Intersegment Revenues $ (96,971 )   $ (88,951 )   $ (8,020 )
    Operating Expenses:          
    Purchased Gas   (36,094 )     (28,100 )     (7,994 )
    Operation and Maintenance   (60,877 )     (60,851 )     (26 )
        (96,971 )     (88,951 )     (8,020 )
    Operating Income   —       —       —  
    Other Income (Expense):          
    Interest and Other Deductions   (42,751 )     (41,072 )     (1,679 )
    Interest Expense   42,751       41,072       1,679  
    Net Income $ —     $ —     $ —  
    Net Income Per Share (Diluted) $ —     $ —     $ —  
                           
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
               
    SEGMENT INFORMATION (Continued)
    (Thousands of Dollars)
               
      Three Months Ended
      December 31,
      (Unaudited)
              Increase
      2024   2023   (Decrease)
               
    Capital Expenditures:          
    Exploration and Production $ 122,602 (1)(2) $ 160,957 (3)(4) $ (38,355 )
    Pipeline and Storage   19,792 (1)(2)   24,554 (3)(4)   (4,762 )
    Gathering   13,027 (1)(2)   19,569 (3)(4)   (6,542 )
    Utility   36,430 (1)(2)   30,510 (3)(4)   5,920  
    Total Reportable Segments   191,851     235,590     (43,739 )
    All Other   —     —     —  
    Corporate   204     61     143  
    Total Capital Expenditures $ 192,055   $ 235,651   $ (43,596 )
                       

     

    (1) Capital expenditures for the quarter ended December 31, 2024, include accounts payable and accrued liabilities related to capital expenditures of $56.3 million, $4.4 million, $6.0 million, and $4.9 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at December 31, 2024, since they represent non-cash investing activities at that date.
       
    (2) Capital expenditures for the quarter ended December 31, 2024, exclude capital expenditures of $63.3 million, $14.4 million, $21.7 million and $20.6 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2024 and paid during the quarter ended December 31, 2024. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2024, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at December 31, 2024.
       
    (3) Capital expenditures for the quarter ended December 31, 2023, include accounts payable and accrued liabilities related to capital expenditures of $74.9 million, $5.5 million, $11.1 million, and $6.4 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were excluded from the Consolidated Statement of Cash Flows at December 31, 2023, since they represented non-cash investing activities at that date.
       
    (4) Capital expenditures for the quarter ended December 31, 2023, exclude capital expenditures of $43.2 million, $31.8 million, $20.6 million and $13.6 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2023 and paid during the quarter ended December 31, 2023. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2023, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at December 31, 2023.
       
    DEGREE DAYS                  
                  Percent Colder
                  (Warmer) Than:
    Three Months Ended December 31, Normal   2024   2023   Normal (1)   Last Year (1)
    Buffalo, NY 2,253   1,884   1,858   (16.4)   1.4
    Erie, PA 1,894   1,697   1,664   (10.4)   2.0
                       
    (1) Percents compare actual 2024 degree days to normal degree days and actual 2024 degree days to actual 2023 degree days.
                       
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
               
    EXPLORATION AND PRODUCTION INFORMATION
               
               
      Three Months Ended
      December 31,
              Increase
      2024   2023   (Decrease)
               
    Gas Production/Prices:          
    Production (MMcf)          
    Appalachia   97,717     100,757     (3,040 )
               
    Average Prices (Per Mcf)          
    Weighted Average $ 2.23   $ 2.31   $ (0.08 )
    Weighted Average after Hedging   2.53     2.51     0.02  
               
    Selected Operating Performance Statistics:          
    General and Administrative Expense per Mcf (1) $ 0.20   $ 0.18   $ 0.02  
    Lease Operating and Transportation Expense per Mcf (1)(2) $ 0.67   $ 0.67   $ —  
    Depreciation, Depletion and Amortization per Mcf (1) $ 0.65   $ 0.71   $ (0.06 )
               
    (1)  Refer to page 13 for the General and Administrative Expense, Lease Operating and Transportation Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.
     
    (2)  Amounts include transportation expense of $0.57 and $0.56 per Mcf for the three months ended December 31, 2024 and December 31, 2023, respectively.
               
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
               
               
               
    Pipeline and Storage Throughput – (millions of cubic feet – MMcf)
               
      Three Months Ended
      December 31,
              Increase
      2024   2023   (Decrease)
    Firm Transportation – Affiliated 31,870   31,495   375  
    Firm Transportation – Non-Affiliated 171,012   168,606   2,406  
    Interruptible Transportation 62   118   (56 )
      202,944   200,219   2,725  
               
    Gathering Volume – (MMcf)          
      Three Months Ended
      December 31,
              Increase
      2024   2023   (Decrease)
    Gathered Volume 120,961   124,261   (3,300 )
               
               
    Utility Throughput – (MMcf)          
      Three Months Ended
      December 31,
              Increase
      2024   2023   (Decrease)
    Retail Sales:          
    Residential Sales 18,476   17,982   494  
    Commercial Sales 2,919   2,800   119  
    Industrial Sales 199   138   61  
      21,594   20,920   674  
    Transportation 16,942   17,528   (586 )
      38,536   38,448   88  
               

    NATIONAL FUEL GAS COMPANY 
    AND SUBSIDIARIES 
    NON-GAAP FINANCIAL MEASURES

    In addition to financial measures calculated in accordance with generally accepted accounting principles (GAAP), this press release contains information regarding adjusted operating results, adjusted EBITDA and free cash flow, which are non-GAAP financial measures. The Company believes that these non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company’s ongoing operating results or liquidity and for comparing the Company’s financial performance to other companies. The Company’s management uses these non-GAAP financial measures for the same purpose, and for planning and forecasting purposes. The presentation of non-GAAP financial measures is not meant to be a substitute for financial measures in accordance with GAAP.

    Management defines adjusted operating results as reported GAAP earnings before items impacting comparability. The following table reconciles National Fuel’s reported GAAP earnings to adjusted operating results for the three months ended December 31, 2024 and 2023:

      Three Months Ended
      December 31,
    (in thousands except per share amounts) 2024   2023
    Reported GAAP Earnings $ 44,986     $ 133,020  
    Items impacting comparability:      
    Impairment of assets (E&P)   141,802       —  
    Tax impact of impairment of assets   (37,169 )     —  
    Unrealized (gain) loss on derivative asset (E&P)   349       4,198  
    Tax impact of unrealized (gain) loss on derivative asset   (94 )     (1,151 )
    Unrealized (gain) loss on other investments (Corporate / All Other)   2,617       (1,049 )
    Tax impact of unrealized (gain) loss on other investments   (550 )     220  
    Adjusted Operating Results $ 151,941     $ 135,238  
           
    Reported GAAP Earnings Per Share $ 0.49     $ 1.44  
    Items impacting comparability:      
    Impairment of assets, net of tax (E&P)   1.14       —  
    Unrealized (gain) loss on derivative asset, net of tax (E&P)   —       0.03  
    Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)   0.02       (0.01 )
    Rounding   0.01       —  
    Adjusted Operating Results Per Share $ 1.66     $ 1.46  
                   

    Management defines adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability. The following tables reconcile National Fuel’s reported GAAP earnings to adjusted EBITDA for the three months ended December 31, 2024 and 2023:

      Three Months Ended
      December 31,
    (in thousands) 2024   2023
    Reported GAAP Earnings $ 44,986     $ 133,020  
    Depreciation, Depletion and Amortization   109,370       115,790  
    Other (Income) Deductions   (7,720 )     (3,732 )
    Interest Expense   37,743       34,735  
    Income Taxes   11,182       43,087  
    Impairment of Assets   141,802       —  
    Adjusted EBITDA $ 337,363     $ 322,900  
           
    Adjusted EBITDA by Segment      
    Pipeline and Storage Adjusted EBITDA $ 70,953     $ 59,142  
    Gathering Adjusted EBITDA   51,936       53,061  
    Total Midstream Businesses Adjusted EBITDA   122,889       112,203  
    Exploration and Production Adjusted EBITDA   156,645       159,970  
    Utility Adjusted EBITDA   60,665       53,366  
    Corporate and All Other Adjusted EBITDA   (2,836 )     (2,639 )
    Total Adjusted EBITDA $ 337,363     $ 322,900  
                   
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    NON-GAAP FINANCIAL MEASURES
    SEGMENT ADJUSTED EBITDA
       
      Three Months Ended
      December 31,
    (in thousands) 2024   2023
    Exploration and Production Segment      
    Reported GAAP Earnings $ (46,777 )   $ 52,483  
    Depreciation, Depletion and Amortization   63,304       71,965  
    Other (Income) Deductions   (309 )     1,413  
    Interest Expense   15,200       15,268  
    Income Taxes   (16,575 )     18,841  
    Impairment of Assets   141,802       —  
    Adjusted EBITDA $ 156,645     $ 159,970  
           
    Pipeline and Storage Segment      
    Reported GAAP Earnings $ 32,454     $ 24,055  
    Depreciation, Depletion and Amortization   18,585       18,213  
    Other (Income) Deductions   (2,992 )     (3,188 )
    Interest Expense   11,729       11,725  
    Income Taxes   11,177       8,337  
    Adjusted EBITDA $ 70,953     $ 59,142  
           
    Gathering Segment      
    Reported GAAP Earnings $ 27,145     $ 28,825  
    Depreciation, Depletion and Amortization   10,515       9,458  
    Other (Income) Deductions   (58 )     (82 )
    Interest Expense   4,210       3,729  
    Income Taxes   10,124       11,131  
    Adjusted EBITDA $ 51,936     $ 53,061  
           
    Utility Segment      
    Reported GAAP Earnings $ 32,499     $ 26,551  
    Depreciation, Depletion and Amortization   16,827       16,037  
    Other (Income) Deductions   (6,399 )     (2,381 )
    Interest Expense   10,716       8,457  
    Income Taxes   7,022       4,702  
    Adjusted EBITDA $ 60,665     $ 53,366  
           
    Corporate and All Other      
    Reported GAAP Earnings $ (335 )   $ 1,106  
    Depreciation, Depletion and Amortization   139       117  
    Other (Income) Deductions   2,038       506  
    Interest Expense   (4,112 )     (4,444 )
    Income Taxes   (566 )     76  
    Adjusted EBITDA $ (2,836 )   $ (2,639 )
                   

    Management defines free cash flow as net cash provided by operating activities, less net cash used in investing activities, adjusted for acquisitions and divestitures. The Company is unable to provide a reconciliation of any projected free cash flow measure to its comparable GAAP financial measure without unreasonable efforts. This is due to an inability to calculate the comparable GAAP projected metrics, including operating income and total production costs, given the unknown effect, timing, and potential significance of certain income statement items.

    The MIL Network –

  • MIL-OSI USA: 01.29.2025 Sen. Cruz Introduces Legislation to Defund the CFPB and Restore Congressional Oversight

    US Senate News:

    Source: United States Senator for Texas Ted Cruz
    WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas) introduced the Defund the CFPB Act, which would zero out transfer payments from the Federal Reserve to the Consumer Financial Protection Bureau (CFPB).
    Upon introduction, Sen. Cruz said, “The CFPB is an unelected, unaccountable bureaucratic agency that has imposed burdensome and harmful regulations on American businesses, banks, and credit unions. It is an unchecked Obama-era executive arm and the Federal Reserve should not be transferring funds to it. Enacting this legislation would save American taxpayers billions of dollars and I call on the Senate to expeditiously take it up and pass it.”
    The bill is co-sponsored by Sens. John Barrasso (R-Wyo.), Rick Scott (R-Fla.), Steve Daines (R-Mont.), Marsha Blackburn (R-Tenn.), Mike Rounds (R-S.D.), and Mike Lee (R-Utah).
    Rep. Keith Self (R-Texas-03) introduced the companion legislation in the House of Representatives.
    Read the Defund the CFPB Act here.
    BACKGROUND
    This bill is supported by the Texas Credit Union Association (TXCUA), Texas Bankers Association (TBA), and Heritage Action.

    MIL OSI USA News –

  • MIL-OSI USA: At Hearing, Warren Slams RFK Jr. for Dangerous Conflicts of Interest, Profiting From Anti-Vaccine Conspiracies

    US Senate News:

    Source: United States Senator for Massachusetts – Elizabeth Warren
    January 29, 2025
    Kennedy answers raise fresh questions about his ethics agreement
    Kennedy could profit from anti-vaccine lawsuits he can influence as Health Secretary 
    Warren: “Kennedy can kill off access to vaccines and make millions of dollars while he does it…Kids might die, but Robert Kennedy will keep cashing in.”
    Round 1 Questioning (YouTube) | Round 2 Questioning (YouTube)
    Washington, D.C. – At a hearing of the Senate Finance Committee, U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs and member of the Senate Finance Committee, questioned Mr. Robert F. Kennedy Jr., nominee for Secretary of Health and Human Services (HHS), about his dangerous conflicts of interest and record of profiting from anti-vaccine conspiracies. 
    Mr. Kennedy has made nearly $2.5 million in referral fees from the law firm Wisner Baum, in connection with lawsuits against vaccine makers. Mr. Kennedy receives a 10% contingency fee in these cases if the plaintiffs win, and his ethics agreement indicates he will continue to receive these payments even if he is confirmed as HHS Secretary. However, during his confirmation hearing, Mr. Kennedy initially appeared to agree to not accept any compensation from lawsuits against drug companies while serving as HHS Secretary, stating, “Well, I will certainly commit to that while I’m Secretary.” He then backtracked and did not clearly commit to ending this arrangement — through which he can profit off of anti-vaccine lawsuits even if he is confirmed as HHS Secretary. 
    If Mr. Kennedy does maintain his financial stake in anti-vaccine lawsuits, he will have a serious conflict of interest. Senator Warren highlighted seven ways Mr. Kennedy could benefit financially from anti-vaccine lawsuits and increase his payouts, including: 
    Publishing anti-vaccine conspiracies on government letterhead to influence juries;
    Appointing anti-vaccine people to the CDC vaccine panel;
    Opening vaccine manufacturers to lawsuits by removing vaccines from special compensation programs;
    Making more injuries eligible for compensation even with no causal evidence;
    Change vaccine court processes to make it easier to bring junk lawsuits to get vaccines pulled from the market; and 
    Turn over FDA data to his connections at law firm Wisner Baum, for their use in lawsuits. 
    Senator Warren also asked Mr. Kennedy if he would take responsibility for more than 80 deaths in Samoa after Mr. Kennedy spread anti-vaccine conspiracies in the country. Mr. Kennedy refused to take responsibility. 
    Transcript: Hearing to consider the nomination of Robert F. Kennedy, Jr., of California, to be Secretary of Health and Human ServicesSenate Committee on Finance January 29, 2025
    Senator Elizabeth Warren: Thank you, Mr. Chairman. Mr. Kennedy, I want to start with something that I think you and I agree on: Big Pharma has too much power in Washington. You’ve said that, President Trump asked you to, “clean up corruption and conflicts.” Sounds great. You’ve said you will “slam shut the revolving door” between government agencies and the companies they regulate. That also sounds great.
    So here’s an easy question: will you commit that when you leave this job, you will not accept compensation from a drug company, a medical device company, a hospital system, or a health insurer for at least four years—including as a lobbyist or board member? 
    Mr. Robert F. Kennedy, Jr., nominee for Secretary of Health and Human Services: Can you just repeat the last part of the question? Can I commit to what?
    Senator Warren: Sure, you’re not going to take money from drug companies in any way shape or form?
    Mr. Kennedy: Who? Me? 
    Senator Warren: Yes. You. 
    Mr. Kennedy: I’m happy to commit to that.
    Senator Warren: Good, that’s what I figured. I said, it’s an easy question to start with. And I think you’re right on this question – 
    Mr. Kennedy: I don’t think any of them want to give me any money, by the way.
    Senator Warren: Let’s keep going. You are right to say yes because every American has the right to know that every decision you make as our number one health officer is to help them—not to make money for yourself in the future.
    So, I want to talk more about money. I’m looking at your paperwork right now. In the past two years, you’ve raked in $2.5 million from a law firm called Wisner Baum. You go online, you do commercials to encourage people to sign up with Wisner Baum to join lawsuits against vaccine makers. And for everyone who signs up, you personally get paid, and if they win their case, you get 10% of what they win. So, if you bring in someone who gets $10 million, you walk away with a million dollars. 
    Now, you just said that you want the American people to know that you cannot be bought, your decisions won’t depend on how much money you could make in the future, you won’t go work for a drug company after you leave HHS. But you and I both know there’s another way to make money. 
    So, Mr. Kennedy, will you also agree that you also won’t take any compensation from any lawsuits against drug companies while you are Secretary and for four years afterwards?
    Mr. Kennedy: Well, I will certainly commit to that while I’m Secretary. But I do want to clarify something because you make me sound like a shill. I put together that case. I did the science day presentation to the judge on that case to get it into court, the docket hearing – 
    Senator Warren: Mr. Kennedy, it’s just a really simple question. You’ve taken in $2.5 million, I want to know if you will commit right now that not only will you not go to work for drug companies, you won’t go to work suing the drug companies and taking your rake out of that while you are Secretary and for four years after.
    Mr. Kennedy: I will commit to not taking any fees from drug companies while I’m Secretary. I –  
    Senator Warren: No, I’m asking about fees from suing drug companies. Will you agree not to do that?
    Mr. Kennedy: You are asking me to not sue drug companies, and I’m not going to agree to that – 
    Senator Warren: No. You can sue drug companies as much as you want. 
    Mr. Kennedy: I am not going to agree to not sue drug companies or anybody.
    Senator Warren: So, let’s do a quick count here of how, as Secretary of HHS, if you get confirmed, you could influence every one of those lawsuits. Well, let me start the list.
    You could publish your anti-vaccine conspiracies, but this time on U.S. government letterhead – something a jury might be impressed by. 
    Mr. Kennedy: I don’t understand that.
    Senator Warren: You could appoint people to the CDC vaccine panel who share your anti-vax views and let them do your dirty work.  
    You could tell the CDC vaccine panel to remove a particular vaccine from the vaccine schedule.
    You could remove vaccines from special compensation programs, which would open up manufacturers to mass torts.
    You could make more injuries eligible for compensation even if there’s no causal evidence. 
    You could change vaccine court processes to make it easier to bring junk lawsuits.
    You could turn over FDA data to your friends at the law firm, and they could use it however it benefitted them.
    You could change vaccine labelling.
    You could change vaccine information rules. 
    You could change which claims are compensated in the vaccine injury compensation program. 
    There’s a lot of ways you can influence those future lawsuits and pending lawsuits while you are Secretary of HHS, and I’m asking you to commit right now that you will not take a financial stake in every one of those lawsuits so that what you do as Secretary will also benefit you financially down the line.
    Mr. Kennedy: I will comply with all the ethical guidelines. 
    Senator Warren: That’s not the question. You and I—you have said repeatedly—
    Mr. Kennedy: You are asking me—Senator, you’re asking me not to sue vaccine—pharmaceutical companies.
    Senator Warren: No, I am not. My question is: stop enriching yourself.
    Look, no one should be fooled here. As Secretary of HHS, Robert Kennedy will have the power to undercut vaccines and vaccine manufacturing across our country. And for all his talk about “follow the science” and his promise that he won’t interfere with those of us who want to vaccinate our kids, the bottom line is the same: Kennedy can kill off access to vaccines and make millions of dollars while he does it. 
    Kids might die, but Robert Kennedy can keep cashing in. 
    Mr. Kennedy: Senator, I support vaccines, I will—I support the childhood schedule, I will do that. The only thing I want is good science, and that’s it.
    Senator Warren: How about then saying you won’t make money off what you do as Secretary of HHS?
    Chair Mike Crapo: Before we go to Senator Tillis, I think it would be important for me to make it very clear that Mr. Kennedy has gone through the same Office of Government Ethics process as every single other nominee in the Finance Committee this year and in previous administrations. In addition to listing his assets, including the items that you’ve identified, he has signed an ethics letter that has been reviewed by the Office of Government Ethics concerning any possible conflict in light of its functions and the nominee’s proposed duties. And we have a letter from the Office of Government Ethics that he has complied completely with all applicable laws and regulations governing conflicts of interest.
    Senator Warren: Mr. Chairman, point of information here: have we had a single nominee come through who’s made two and a half million dollars off suing one of the entities that it would be regulating and plans to keep getting a take of every lawsuit in the future? Have we had that before?
    Chair Crapo: I haven’t reviewed the past documentation of every other nominee’s financial interests, and so no. But I know that every single time we get a nominee, their financial interests are attacked. That’s why we have the Office of Government Ethics. That’s why they’ve reviewed everything that’s in his record, and that’s why he has even—I think, and I don’t know that I want to ask him to get into it—but he has listed his assets and has gone through a discussion of the responsibilities under our ethics laws and is complied with all of those requirements.
    Round 2
    Senator Warren: Thank you, Mr. Chairman. Mr. Kennedy, I want to ask about your role in a 2019 measles outbreak in Samoa. In July 2018, two children died immediately after receiving a measles vaccine that nurses had mistakenly mixed with a muscle relaxant. The nurses get charged with manslaughter, but the vaccination rates go down. 
    I asked you about this in my office. You told me flatly that your visit to Samoa had nothing to do with vaccinations. We now know that’s not true. I have the documentation. You met with the Prime Minister, you talked about vaccinations. You met with an anti-vaccine influencer who described the meeting as “profoundly monumental for this movement.” 
    So what happens? Vaccinations go down. There’s a measles outbreak, and children start dying, but you double down. You didn’t give up just four days after the Prime Minister declared a state of emergency. 16 people already dead. You sent a letter to him promoting the idea that the children had died not from measles but from a “defective vaccine.” You launched the idea that a measles vaccine caused these deaths. 
    You are a very influential man. In fact, you are called the leader of the disinformation dozen. UNICEF and WHO, the World Health Organization, investigated this. They say the claims are false. It is not biologically possible what you claimed, and yet, ultimately, more than 70 people died because they didn’t get vaccines. 
    So my question is, do you accept even a scintilla, just even a sliver of responsibility for the drop in vaccinations and the subsequent deaths of more than 70 people? Anything you’d do differently?
    Mr. Kennedy: No, absolutely not. After the—there were two incidents in which children died in 2015 and again in 2018. 2015, it was from the measles vaccine. That’s what the New Zealand General Hospital found. The government of Samoa banned the measles vaccine after 2018. I arrived in July of the next year, after the ban had been in place for a year, and the measles—
    Senator Warren: Mr. Chairman, understanding that you wanted to hold this to a minute, and then I don’t get to present all the facts and documentation I’ve got. How about if we just decide to make entries for the record on exactly what the record shows about Mr. Kennedy’s participation? And I think he’s answered the yes or no question. He takes no responsibility. 
    Chair Crapo: Senator Warren, we will do that. And Mr. Kennedy, and to all the senators, every senator knows that following this hearing, they will be able to ask you questions off the record, and you will be able to put answers back onto the record. So please give that answer. I apologize that we’re shutting you off for giving a full response right now.

    MIL OSI USA News –

  • MIL-OSI USA: Ricketts Statement on Passing of Jay Dunlap

    US Senate News:

    Source: United States Senator Pete Ricketts (Nebraska)

    January 29, 2025

    WASHINGTON, D.C. – Today, U.S. Senator Pete Ricketts (R-NE) issued the following statement in response to the passing of former Union Bank and Trust (UBT) President and CEO Jay Dunlap:
    “Jay Dunlap was a visionary businessman who loved the people he served. He grew Union Bank and Trust from a small community bank to the state’s third largest bank. While his bank grew bigger, his commitment to treating people right did too. He leaves a legacy of service, leadership, and generosity. Susanne and I send our condolences to his wife Shirley and family.”

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    MIL OSI USA News –

  • MIL-OSI Submissions: OPEC Fund delivers record US$2.3 billion in development finance in 2024

    Source: OPEC Fund for International Development (the OPEC Fund)

    Highlights in the 49th year of operation included:

    • Lending growth: 35 percent increase y-o-y to US$2.3 billion
    • Triple agriculture and food security investments
    • Climate Action Plan delivery ahead of target
    • Bond placements: US$500 million in January 2024
    • Advancing partnerships: A co-financing agreement with the World Bank Group; MoUs with IFAD, FONPLATA; Country Framework Agreements with Uzbekistan, Kazakhstan, Turkmenistan.

    January 29, 2025: The OPEC Fund for International Development achieved a record US$2.3 billion in new commitments in 2024 — a 35 percent increase year-on-year. These commitments, distributed across 70 projects worldwide, are combating climate change, improving global food security, advancing the energy transition and fostering sustainable economic and social development.

    OPEC Fund President Abdulhamid Alkhalifa said: “In 2024, the OPEC Fund set a new benchmark in delivering impactful development finance to tackle global priorities. Our record commitments not only reflect our capacity to boost climate action and social resilience but also the strength of our cooperation with countries and development partners such as the World Bank and the Arab Coordination Group. As we approach our 50th anniversary, thanks to the strong support from our member countries and capital market investors, we are well positioned to maximize impact and create lasting benefits for communities worldwide.”

    In 2024, the OPEC Fund’s financing supported projects across the Middle East and North Africa & Europe and Central Asia (39 percent of total commitments), Sub-Saharan Africa (34 percent), Asia and the Pacific (13 percent) as well as Latin America & the Caribbean (11 percent). The remaining 3 percent of financing was provided to support regional and global projects. The funds were delivered through a range of financial instruments in public and private sector lending, trade finance and grants operations.

    The largest segment of last year’s funding was policy-based lending (19 percent), supporting government-led sustainable development programs and policy implementation in countries such as Armenia (US$50 million), Cote D’Ivoire (US$60 million), Jordan (US$100 million), Montenegro (US$50 million) , Morocco (US$100 million),  Sri Lanka (US$50 million) and Uzbekistan (US$70 million). 

    Significant delivery to support global food security and climate action:

    Compared to 2023, the OPEC Fund tripled its commitments to the agriculture sector, in line with its strategic priority to boost global food security. The OPEC Fund provided US$261 million in financing to promote agricultural sustainability in Benin (US$26 million), Eswatini (US$20 million), Honduras (US$15 million), Lesotho (US$20 million), Malawi (US$20 million), Rwanda (US$20 million), Tanzania (US$50 million) and Türkiye (US$50 million).

    In 2024, the OPEC Fund delivered on its Climate Action Plan ahead of target. Aligned with this strategy, renewable energy projects constituted nearly 40 percent of the institution’s energy sector commitments last year. These included the Begana and Gamri hydro project in Bhutan (US$50 million), the Suez wind farm in Egypt (US$30 million), the Rogun hydropower project in Tajikistan (US$25 million) and a 42 MW wind farm in Uganda (US$16.5 million). Additional energy investments targeted improved transmission and connectivity in the Dominican Republic (two US$60 million loans) and Mauritania (US$40 million), as well as expanded energy access in Uzbekistan (US$37.5 million), all contributing to Sustainable Development Goal 7 – Clean and Affordable Energy.

    Boosting sustainable and climate resilient infrastructure, significant funding (12 percent) was delivered to enhance connectivity in the transport sector. Major projects included investments in Madagascar (US$30 million), Oman (US$180 million), Paraguay (US$50 million), Senegal (US$38 million), Tanzania (US$41 million)  and Uganda (US$30 million).

    In the financial sector, the OPEC Fund allocated more than US$270 million to partner with governments and local banks for on-lending to small and medium-sized enterprises, driving job creation and enhancing access to finance in Armenia, Bangladesh, Bosnia and Herzegovina, the Dominican Republic, Nepal, Paraguay and Uzbekistan. Another US$375 million in trade finance supported the movement of critical commodities and goods, including agricultural products, to and from developing economies.

    In 2024, the OPEC Fund strengthened partnerships with key institutions, including the African Development Bank (AfDB), Arab Coordination Group (ACG), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB); signed a co-financing agreement with the World Bank Group and MoUs with the International Fund for Agricultural Development (IFAD) and FONPLATA. The OPEC Fund also signed Country Framework Agreements with Uzbekistan, Kazakhstan, Turkmenistan aiming to further deepen the institution’s impact in the Central Asia region.

    About the OPEC Fund

    The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed more than US$29 billion to development projects in over 125 countries with an estimated total project cost of more than US$200 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+, Outlook Stable by S&P. Our vision is a world where sustainable development is a reality for all.

    MIL OSI – Submitted News –

  • MIL-OSI: BoC cuts rates amid tariff balancing act: CPA Canada

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Jan. 29, 2025 (GLOBE NEWSWIRE) — The Bank of Canada’s latest interest rate cut underscores its commitment to stimulating growth amid ongoing economic challenges – even as the looming tariff threat from south of the border complicates the outlook.

    “The central bank’s decision to cut rates reflects its focus on the current state of the Canadian economy, ahead of potential external risks,” says CPA Canada’s chief economist, David-Alexandre Brassard.

    “The impact of potential tariffs could simultaneously dampen growth and increase inflation. It’s a delicate balancing act.”

    Despite past interest rate cuts successfully boosting demand, the Canadian economy continues to show signs of excess supply, evidenced by a weak labour market and slower-than-expected wage growth.

    While inflation remains within the central bank’s target range, the decision to further lower rates aims to bolster economic activity and better position Canada for potential risks on the horizon.

    In its Wednesday address, the Bank of Canada mentioned that currency risks posed by the interest rate spread between Canada and the U.S would gain importance in upcoming decisions. It also released new scenarios examining the potential impact of widespread tariffs from the U.S, noting that such tariffs could lead to a significant slowdown in the Canadian economy with GDP potentially dropping by more than two percentage points and inflation rising by one percentage point.

    To arrange an interview with our chief economist, please contact media@cpacanada.ca.

    The MIL Network –

  • MIL-OSI: Premium Income Corporation Announces Year End Results

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Jan. 29, 2025 (GLOBE NEWSWIRE) — (TSX: PIC.A; PIC.PR.A) Premium Income Corporation today announces results of operations for the fiscal year ended October 31, 2024. Increase in net assets attributable to holders of Class A shares amounted to $76.3 million or $4.34 per Class A share. Net assets attributable to holders of Class A shares were $83.6 million or $4.14 per Class A share. Cash distributions of $0.86 per Preferred share and $0.81 per Class A share were paid during the year.

    Premium Income Corporation is a mutual fund corporation, which invests in a portfolio consisting principally of common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, and the Toronto Dominion Bank. The Fund employs an active covered call writing strategy to enhance the income generated by the portfolio and to reduce volatility.  

    The investment portfolio of the Fund is managed by its investment manager, Mulvihill Capital Management Inc. The Fund’s Preferred and Class A shares are listed on the Toronto Stock Exchange under the symbols PIC.PR.A and PIC.A respectively.

    Selected Financial Information: ($ Millions)  
       
    Statement of Financial Position   2024
    As at October 31  
    Assets $ 397.4
    Liabilities   (313.7)
    Net Assets Attributable to  
    Holders of Class A Shares $ 83.6
       
    Statement of Comprehensive Income  
    Year ended October 31  
    Income $ 96.8
    Expenses   (4.3)
    Operating Loss   92.4
    Preferred Share Distributions   (16.1)
    Increase in Net Assets Attributable  
    to Holders of Class A Shares $ 76.3
         

    For further information, please contact Investor Relations at 416.681.3966, toll free at 1.800.725.7172 or visit www.mulvihill.com

    John Germain, Senior Vice President & CFO Mulvihill Capital Management Inc.
    121 King Street West
    Suite 2600
    Toronto, Ontario, M5H 3T9
    416.681.3966; 1.800.725.7172
    www.mulvihill.com
    info@mulvihill.com
       

    Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the prospectus before investing. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

    The MIL Network –

  • MIL-OSI: Brookline Bancorp Announces Fourth Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    Net Income of $17.5 million, EPS of $0.20

    Operating Earnings of $20.7 million, Operating EPS of $0.23

    Quarterly Dividend of $0.135

    BOSTON, Jan. 29, 2025 (GLOBE NEWSWIRE) — Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $17.5 million, or $0.20 per basic and diluted share, and excluding $3.4 million of merger-related charges, operating earnings after tax (non-GAAP) of $20.7 million, or $0.23 per basic and diluted share for the fourth quarter of 2024, compared to net income and operating earnings after tax (non-GAAP) of $20.1 million, or $0.23 per basic and diluted share, for the third quarter of 2024, and $22.9 million, or $0.26 per basic and diluted share, for the fourth quarter of 2023.

    For the year ended December 31, 2024, the Company reported net income of $68.7 million, or $0.77 per basic and diluted share, compared to $75.0 million, or $0.85 per basic and diluted share, for the year ended December 31, 2023. For the year ended December 31, 2024, the Company reported operating earnings after tax (non-GAAP) of $72.4 million, or $0.81 per basic and diluted share, compared to $92.9 million, or $1.05 per basic and diluted share, for the year ended December 31, 2023.

    Paul Perrault, Chairman and Chief Executive Officer, commented on the Company’s performance, “Brookline Bancorp had an excellent year in 2024. We finished the year with solid deposit and loan growth and are well positioned as we look forward to 2025. We are looking forward to 2025 and our recently announced strategic merger with Berkshire Hills Bancorp. I would like to recognize the contributions of our employees in contributing to our growth and success in 2024. Our employees exemplify the Brookline Bancorp culture of providing excellent customer service.”

    BALANCE SHEET

    Total assets at December 31, 2024 increased $228.6 million to $11.9 billion from $11.7 billion at September 30, 2024, and increased $523.1 million from $11.4 billion at December 31, 2023. At December 31, 2024, total loans and leases were $9.8 billion, representing an increase of $24.1 million from September 30, 2024, and an increase of $137.7 million from December 31, 2023.

    Total investment securities at December 31, 2024 increased $39.6 million to $895.0 million from $855.4 million at September 30, 2024, and decreased $21.6 million from $916.6 million at December 31, 2023. Total cash and cash equivalents at December 31, 2024 increased $135.8 million to $543.7 million from $407.9 million at September 30, 2024, and increased $410.6 million from $133.0 million at December 31, 2023. As of December 31, 2024, total investment securities and total cash and cash equivalents represented 12.1 percent of total assets, compared to 10.8 percent and 9.2 percent as of September 30, 2024 and December 31, 2023, respectively.

    Total deposits at December 31, 2024 increased $169.4 million to $8.9 billion from $8.7 billion at September 30, 2024, consisting of a $115.9 million increase in customer deposits and a $53.4 million increase in brokered deposits. Total deposits increased $353.5 million from $8.5 billion at December 31, 2023, primarily driven by growth in customer deposits.

    Total borrowed funds at December 31, 2024 increased $22.3 million to $1.5 billion from September 30, 2024, and increased $143.2 million from $1.4 billion at December 31, 2023.

    The ratio of stockholders’ equity to total assets was 10.26 percent at December 31, 2024, as compared to 10.54 percent at September 30, 2024, and 10.53 percent at December 31, 2023. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.27 percent at December 31, 2024, as compared to 8.50 percent at September 30, 2024, and 8.39 percent at December 31, 2023. Tangible book value per common share (non-GAAP) decreased $0.08 from $10.89 at September 30, 2024 to $10.81 at December 31, 2024, and increased $0.31 from $10.50 at December 31, 2023.

    NET INTEREST INCOME

    Net interest income increased $2.0 million to $85.0 million during the fourth quarter of 2024 from $83.0 million for the quarter ended September 30, 2024. The net interest margin increased 5 basis points to 3.12 percent for the three months ended December 31, 2024 from 3.07 percent for the three months ended September 30, 2024, primarily driven by lower funding costs partially offset by lower yields on loans and leases.

    NON-INTEREST INCOME

    Total non-interest income for the quarter ended December 31, 2024 increased $0.2 million to $6.6 million from $6.3 million for the quarter ended September 30, 2024. The increase was primarily driven by an increase of $1.1 million in loan level derivative income, net, partially offset by a decline of $0.8 million in mark to market on interest rate swaps.

    PROVISION FOR CREDIT LOSSES

    The Company recorded a provision for credit losses of $4.1 million for the quarter ended December 31, 2024, compared to $4.8 million for the quarter ended September 30, 2024. The decrease in the provision was largely driven by improving economic forecasts and stabilization in the volume of adversely graded credits.

    Total net charge-offs for the fourth quarter of 2024 were $7.3 million, compared to $3.8 million in the third quarter of 2024. The $7.3 million in net charge-offs was driven by one large $5.1 million charge-off in equipment financing which was previously reserved for. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 30 basis points for the fourth quarter of 2024 from 16 basis points for the third quarter of 2024.

    The allowance for loan and lease losses represented 1.28 percent of total loans and leases at December 31, 2024, compared to 1.31 percent at September 30, 2024, and 1.22 percent at December 31, 2023. The decrease in the ratio was driven by a reduction in specific reserves due to charge-offs in the quarter.

    ASSET QUALITY

    The ratio of total nonperforming loans and leases to total loans and leases was 0.71 percent at December 31, 2024 as compared to 0.73 percent at September 30, 2024. Total nonaccrual loans and leases decreased $1.9 million to $69.3 million at December 31, 2024 from $71.2 million at September 30, 2024. The ratio of nonperforming assets to total assets was 0.59 percent at December 31, 2024 as compared to 0.62 percent at September 30, 2024. Total nonperforming assets decreased $2.4 million to $70.5 million at December 31, 2024 from $72.8 million at September 30, 2024.

    NON-INTEREST EXPENSE

    Non-interest expense for the quarter ended December 31, 2024 increased $5.8 million to $63.7 million from $57.9 million for the quarter ended September 30, 2024. The increase was primarily driven by an increase of $3.4 million in merger and acquisition expense, and an increase of $2.1 million in compensation and employee benefits expense.

    PROVISION FOR INCOME TAXES

    The effective tax rate was 26.4 percent and 25.1 percent for the three and twelve months ended December 31, 2024 compared to 24.7 percent for the three months ended September 30, 2024 and 19.9 percent and 20.1 percent for the three and twelve months ended December 31, 2023.

    RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

    The annualized return on average assets decreased to 0.61 percent during the fourth quarter of 2024 compared to 0.70 percent for the third quarter of 2024; and was 0.60 percent for the year ended December 31, 2024, compared to 0.67 percent for the year ended December 31, 2023.

    The annualized return on average tangible stockholders’ equity (non-GAAP) decreased to 7.21 percent during the fourth quarter of 2024 compared to 8.44 percent for the third quarter of 2024; and was 7.24 percent for the year ended December 31, 2024 compared to 8.36 percent for the year ended December 31, 2023.

    DIVIDEND DECLARED

    The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended December 31, 2024. The dividend will be paid on February 28, 2025 to stockholders of record on February 14, 2025.

    PROPOSED TRANSACTION WITH BERKSHIRE HILLS BANCORP, INC.

    On December 16, 2024, the Company, Berkshire Hills Bancorp, Inc. (“Berkshire”), and Commerce Acquisition Sub, Inc., a Delaware corporation and wholly-owned subsidiary of the Berkshire formed solely to facilitate the merger (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”). The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, Merger Sub will merge with and into Brookline, with Brookline as the surviving entity, and immediately thereafter, Brookline will merge with and into Berkshire, with Berkshire as the surviving entity (collectively, the “Merger”). As a result of the Merger, the separate corporate existence of the Company will cease, and Berkshire will continue as the surviving corporation. Under the terms of the Merger Agreement, which was unanimously approved by the Boards of Directors of both companies, each outstanding share of Company common stock will be exchanged for the right to receive 0.42 shares of Berkshire common stock. Holders of Company common stock will receive cash in lieu of fractional shares of Berkshire common stock. As a result of the proposed transaction and a $100 million common stock offering by Berkshire to support the proposed transaction, Berkshire stockholders will own approximately 51%, Brookline stockholders will own approximately 45%, and investors in new shares will own approximately 4% of the outstanding shares of the combined company. The proposed transaction is expected to close by the end of the second half of 2025, subject to satisfaction of customary closing conditions, including receipt of required regulatory approvals and approvals from Berkshire and the Company stockholders.

    CONFERENCE CALL

    The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, January 30, 2025 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company’s website, www.brooklinebancorp.com. To listen to the call and view the Company’s Earnings Presentation, please join the call via https://events.q4inc.com/attendee/129324302. To listen to the call without access to the slides, please dial 833-470-1428 (United States) or 404-975-4839 (internationally) and ask for the Brookline Bancorp, Inc. call (Access Code 138268). A recording of the call will be available for one week following the call on the Company’s website under “Investor Relations” or by dialing 866-813-9403 (United States) or 929-458-6194 (internationally) and entering the passcode: 646121.

    ABOUT BROOKLINE BANCORP, INC.

    Brookline Bancorp, Inc., a bank holding company with approximately $11.9 billion in assets and branch locations in eastern Massachusetts, Rhode Island and the Lower Hudson Valley of New York State, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and PCSB Bank. The Company provides commercial and retail banking services and cash management and investment services to customers throughout Central New England and the Lower Hudson Valley of New York State. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com and www.pcsb.com.

    FORWARD-LOOKING STATEMENTS

    Certain statements contained in this press release that are not historical facts may constitute 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, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission (“SEC”), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company’s control. These include, but are not limited to, the occurrence of any event, change or other circumstances that could give rise to the right of the Company or Berkshire to terminate the merger agreement; the outcome of any legal proceedings that may be instituted against Berkshire or Company; delays in completing the proposed transaction with Berkshire; the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction) or stockholder approvals, or to satisfy any of the other conditions to the proposed transaction on a timely basis or at all, including the ability of Berkshire and the Company to meet expectations regarding the timing, completion and accounting and tax treatments of the proposed transaction; the impact of certain restrictions during the pendency of the proposed transaction on the parties’ ability to pursue certain business opportunities and strategic transactions; diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; changes in interest rates; general economic conditions (including inflation and concerns about liquidity) on a national basis or in the local markets in which the Company operates; turbulence in the capital and debt markets; competitive pressures from other financial institutions; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in the value of securities and other assets in the Company’s investment portfolio; increases in loan and lease default and charge-off rates; the adequacy of allowances for loan and lease losses; decreases in deposit levels that necessitate increases in borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, and future pandemics; changes in regulation; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions and adverse economic developments; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; and changes in assumptions used in making such forward-looking statements. Forward-looking statements involve risks and uncertainties which are difficult to predict. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

    BASIS OF PRESENTATION

    The Company’s consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period’s presentation.

    NON-GAAP FINANCIAL MEASURES

    The Company uses certain non-GAAP financial measures, such as operating earnings after tax, operating earnings per common share, operating return on average assets, operating return on average tangible assets, operating return on average stockholders’ equity, operating return on average tangible stockholders’ equity, tangible book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders’ equity (annualized). These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company’s GAAP to the non-GAAP measures is attached.

    INVESTOR RELATIONS:

    Contact: Carl M. Carlson
    Brookline Bancorp, Inc.
    Co-President and Chief Financial and Strategy Officer
    (617) 425-5331
    carl.carlson@brkl.com
     
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Selected Financial Highlights (Unaudited)
     
      At and for the Three Months Ended At and for the Twelve
    Months Ended
      December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023    		 December 31,
    2024    		 December 31,
    2023
      (Dollars In Thousands Except per Share Data)
    Earnings Data:              
    Net interest income $ 84,988   $ 83,008   $ 80,001   $ 81,588   $ 83,555   $ 329,585   $ 339,711  
    Provision for credit losses on loans   4,141     4,832     5,607     7,423     3,851     22,003     37,868  
    Provision (credit) for credit losses on investments   (104 )   (172 )   (39 )   (44 )   (76 )   (359 )   339  
    Non-interest income   6,587     6,348     6,396     6,284     8,027     25,615     31,934  
    Non-interest expense   63,719     57,948     59,184     61,014     59,244     241,865     239,524  
    Income before provision for income taxes   23,819     26,748     21,645     19,479     28,563     91,691     93,914  
    Net income   17,536     20,142     16,372     14,665     22,888     68,715     74,999  
                   
    Performance Ratios:              
    Net interest margin (1)   3.12 %   3.07 %   3.00 %   3.06 %   3.15 %   3.06 %   3.24 %
    Interest-rate spread (1)   2.35 %   2.26 %   2.14 %   2.21 %   2.39 %   2.24 %   2.50 %
    Return on average assets (annualized)   0.61 %   0.70 %   0.57 %   0.51 %   0.81 %   0.60 %   0.67 %
    Return on average tangible assets (annualized) (non-GAAP)   0.62 %   0.72 %   0.59 %   0.53 %   0.83 %   0.61 %   0.69 %
    Return on average stockholders’ equity (annualized)   5.69 %   6.63 %   5.49 %   4.88 %   7.82 %   5.67 %   6.42 %
    Return on average tangible stockholders’ equity (annualized) (non-GAAP)   7.21 %   8.44 %   7.04 %   6.26 %   10.12 %   7.24 %   8.36 %
    Efficiency ratio (2)   69.58 %   64.85 %   68.50 %   69.44 %   64.69 %   68.09 %   64.45 %
                   
    Per Common Share Data:              
    Net income — Basic $ 0.20   $ 0.23   $ 0.18   $ 0.16   $ 0.26   $ 0.77   $ 0.85  
    Net income — Diluted   0.20     0.23     0.18     0.16     0.26     0.77     0.85  
    Cash dividends declared   0.135     0.135     0.135     0.135     0.135     0.540     0.540  
    Book value per share (end of period)   13.71     13.81     13.48     13.43     13.48     13.71     13.48  
    Tangible book value per common share (end of period) (non-GAAP)   10.81     10.89     10.53     10.47     10.50     10.81     10.50  
    Stock price (end of period)   11.80     10.09     8.35     9.96     10.91     11.80     10.91  
                   
    Balance Sheet:              
    Total assets $ 11,905,326   $ 11,676,721   $ 11,635,292   $ 11,542,731   $ 11,382,256   $ 11,905,326   $ 11,382,256  
    Total loans and leases   9,779,288     9,755,236     9,721,137     9,655,086     9,641,589     9,779,288     9,641,589  
    Total deposits   8,901,644     8,732,271     8,737,036     8,718,653     8,548,125     8,901,644     8,548,125  
    Total stockholders’ equity   1,221,939     1,230,362     1,198,480     1,194,231     1,198,644     1,221,939     1,198,644  
                   
    Asset Quality:              
    Nonperforming assets $ 70,452   $ 72,821   $ 62,683   $ 42,489   $ 45,324   $ 70,452   $ 45,324  
    Nonperforming assets as a percentage of total assets   0.59 %   0.62 %   0.54 %   0.37 %   0.40 %   0.59 %   0.40 %
    Allowance for loan and lease losses $ 125,083   $ 127,316   $ 121,750   $ 120,124   $ 117,522   $ 125,083   $ 117,522  
    Allowance for loan and lease losses as a percentage of total loans and leases   1.28 %   1.31 %   1.25 %   1.24 %   1.22 %   1.28 %   1.22 %
    Net loan and lease charge-offs $ 7,252   $ 3,808   $ 8,387   $ 8,781   $ 7,141   $ 28,228   $ 19,663  
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized)   0.30 %   0.16 %   0.35 %   0.36 %   0.30 %   0.29 %   0.21 %
                   
    Capital Ratios:              
    Stockholders’ equity to total assets   10.26 %   10.54 %   10.30 %   10.35 %   10.53 %   10.26 %   10.53 %
    Tangible stockholders’ equity to tangible assets (non-GAAP)   8.27 %   8.50 %   8.23 %   8.25 %   8.39 %   8.27 %   8.39 %
                   
    (1) Calculated on a fully tax-equivalent basis.
    (2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.
                   
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Balance Sheets (Unaudited)
     
      December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023
    ASSETS (In Thousands Except Share Data)
    Cash and due from banks $ 64,673   $ 82,168   $ 60,067   $ 45,708   $ 34,514  
    Short-term investments   478,997     325,721     283,017     256,178     98,513  
    Total cash and cash equivalents   543,670     407,889     343,084     301,886     133,027  
    Investment securities available-for-sale   895,034     855,391     856,439     865,798     916,601  
    Total investment securities   895,034     855,391     856,439     865,798     916,601  
    Allowance for investment security losses   (82 )   (186 )   (359 )   (398 )   (441 )
    Net investment securities   894,952     855,205     856,080     865,400     916,160  
    Loans and leases held-for-sale   —     —     —     6,717     —  
    Loans and leases:          
    Commercial real estate loans   5,716,114     5,779,290     5,782,111     5,755,239     5,764,529  
    Commercial loans and leases   2,506,664     2,453,038     2,443,530     2,416,904     2,399,668  
    Consumer loans   1,556,510     1,522,908     1,495,496     1,482,943     1,477,392  
    Total loans and leases   9,779,288     9,755,236     9,721,137     9,655,086     9,641,589  
    Allowance for loan and lease losses   (125,083 )   (127,316 )   (121,750 )   (120,124 )   (117,522 )
    Net loans and leases   9,654,205     9,627,920     9,599,387     9,534,962     9,524,067  
    Restricted equity securities   83,155     82,675     78,963     74,709     77,595  
    Premises and equipment, net of accumulated depreciation   86,781     86,925     88,378     89,707     89,853  
    Right-of-use asset operating leases   43,527     41,934     35,691     33,133     30,863  
    Deferred tax asset   56,620     50,827     60,032     60,484     56,952  
    Goodwill   241,222     241,222     241,222     241,222     241,222  
    Identified intangible assets, net of accumulated amortization   17,461     19,162     20,830     22,499     24,207  
    Other real estate owned and repossessed assets   1,103     1,579     1,974     1,817     1,694  
    Other assets   282,630     261,383     309,651     310,195     286,616  
    Total assets $ 11,905,326   $ 11,676,721   $ 11,635,292   $ 11,542,731   $ 11,382,256  
    LIABILITIES AND STOCKHOLDERS’ EQUITY          
    Deposits:          
    Demand checking accounts $ 1,692,394   $ 1,681,858   $ 1,638,378   $ 1,629,371   $ 1,678,406  
    NOW accounts   617,246     637,374     647,370     654,748     661,863  
    Savings accounts   1,721,247     1,736,989     1,735,857     1,727,893     1,669,018  
    Money market accounts   2,116,360     2,041,185     2,073,557     2,065,569     2,082,810  
    Certificate of deposit accounts   1,885,444     1,819,353     1,718,414     1,670,147     1,574,855  
    Brokered deposit accounts   868,953     815,512     923,460     970,925     881,173  
    Total deposits   8,901,644     8,732,271     8,737,036     8,718,653     8,548,125  
    Borrowed funds:          
    Advances from the FHLB   1,355,926     1,345,003     1,265,079     1,150,153     1,223,226  
    Subordinated debentures and notes   84,328     84,293     84,258     84,223     84,188  
    Other borrowed funds   79,592     68,251     80,125     127,505     69,256  
    Total borrowed funds   1,519,846     1,497,547     1,429,462     1,361,881     1,376,670  
    Operating lease liabilities   44,785     43,266     37,102     34,235     31,998  
    Mortgagors’ escrow accounts   15,875     14,456     17,117     16,245     17,239  
    Reserve for unfunded credits   5,981     6,859     11,400     15,807     19,767  
    Accrued expenses and other liabilities   195,256     151,960     204,695     201,679     189,813  
    Total liabilities   10,683,387     10,446,359     10,436,812     10,348,500     10,183,612  
    Stockholders’ equity:          
    Common stock, $0.01 par value; 200,000,000 shares authorized; 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, and 96,998,075 shares issued, respectively   970     970     970     970     970  
    Additional paid-in capital   902,584     901,562     904,775     903,726     902,659  
    Retained earnings   458,943     453,555     445,560     441,285     438,722  
    Accumulated other comprehensive income   (52,882 )   (38,081 )   (61,693 )   (60,841 )   (52,798 )
    Treasury stock, at cost;          
    7,019,384 shares, 7,015,843 shares, 7,373,009 shares, 7,354,399 shares, and 7,354,399 shares, respectively   (87,676 )   (87,644 )   (91,132 )   (90,909 )   (90,909 )
    Total stockholders’ equity   1,221,939     1,230,362     1,198,480     1,194,231     1,198,644  
    Total liabilities and stockholders’ equity $ 11,905,326   $ 11,676,721   $ 11,635,292   $ 11,542,731   $ 11,382,256  
               
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
     
      Three Months Ended
      December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023
      (In Thousands Except Share Data)
    Interest and dividend income:          
    Loans and leases $ 147,436   $ 149,643   $ 145,585   $ 145,265   $ 142,948  
    Debt securities   6,421     6,473     6,480     6,878     6,945  
    Restricted equity securities   1,460     1,458     1,376     1,492     1,333  
    Short-term investments   2,830     1,986     1,914     1,824     1,093  
    Total interest and dividend income   158,147     159,560     155,355     155,459     152,319  
    Interest expense:          
    Deposits   56,562     59,796     59,721     56,884     54,034  
    Borrowed funds   16,597     16,756     15,633     16,987     14,730  
    Total interest expense   73,159     76,552     75,354     73,871     68,764  
    Net interest income   84,988     83,008     80,001     81,588     83,555  
    Provision for credit losses on loans   4,141     4,832     5,607     7,423     3,851  
    Credit for credit losses on investments   (104 )   (172 )   (39 )   (44 )   (76 )
    Net interest income after provision for credit losses   80,951     78,348     74,433     74,209     79,780  
    Non-interest income:          
    Deposit fees   2,297     2,353     3,001     2,897     3,064  
    Loan fees   439     464     702     789     515  
    Loan level derivative income, net   1,115     —     106     437     778  
    Gain on sales of loans and leases   406     415     130     —     410  
    Other   2,330     3,116     2,457     2,161     3,260  
    Total non-interest income   6,587     6,348     6,396     6,284     8,027  
    Non-interest expense:          
    Compensation and employee benefits   37,202     35,130     34,762     36,629     35,401  
    Occupancy   5,393     5,343     5,551     5,769     5,127  
    Equipment and data processing   6,780     6,831     6,732     7,031     7,245  
    Professional services   1,345     2,143     1,745     1,900     1,442  
    FDIC insurance   2,017     2,118     2,025     1,884     1,839  
    Advertising and marketing   1,303     859     1,504     1,574     758  
    Amortization of identified intangible assets   1,701     1,668     1,669     1,708     1,965  
    Merger and restructuring expense   3,378     —     823     —     —  
    Other   4,600     3,856     4,373     4,519     5,467  
    Total non-interest expense   63,719     57,948     59,184     61,014     59,244  
    Income before provision for income taxes   23,819     26,748     21,645     19,479     28,563  
    Provision for income taxes   6,283     6,606     5,273     4,814     5,675  
    Net income $ 17,536   $ 20,142   $ 16,372   $ 14,665   $ 22,888  
    Earnings per common share:          
    Basic $ 0.20   $ 0.23   $ 0.18   $ 0.16   $ 0.26  
    Diluted $ 0.20   $ 0.23   $ 0.18   $ 0.16   $ 0.26  
    Weighted average common shares outstanding during the period:        
    Basic   89,098,443     89,033,463     88,904,692     88,894,577     88,867,159  
    Diluted   89,483,964     89,319,611     89,222,315     89,181,508     89,035,505  
    Dividends paid per common share $ 0.135   $ 0.135   $ 0.135   $ 0.135   $ 0.135  
               
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
       
      Twelve Months Ended December 31,
      2024 2023
      (In Thousands Except Share Data)
    Interest and dividend income:    
    Loans and leases $ 587,929   $ 533,739
    Debt securities   26,252     29,648
    Restricted equity securities   5,786     5,571
    Short-term investments   8,554     8,329
    Total interest and dividend income   628,521     577,287
    Interest expense:    
    Deposits   232,963     175,665
    Borrowed funds   65,973     61,911
    Total interest expense   298,936     237,576
    Net interest income   329,585     339,711
    Provision for credit losses on loans   22,003     37,868
    (Credit) provision for credit losses on investments   (359 )   339
    Net interest income after provision for credit losses   307,941     301,504
    Non-interest income:    
    Deposit fees   10,548     11,611
    Loan fees   2,394     2,036
    Loan level derivative income, net   1,658     3,890
    Gain on investment securities, net   —     1,704
    Gain on sales of loans and leases   951     2,581
    Other   10,064     10,112
    Total non-interest income   25,615     31,934
    Non-interest expense:    
    Compensation and employee benefits   143,723     138,895
    Occupancy   22,056     20,203
    Equipment and data processing   27,374     27,004
    Professional services   7,133     7,226
    FDIC insurance   8,044     7,844
    Advertising and marketing   5,240     4,724
    Amortization of identified intangible assets   6,746     7,840
    Merger and restructuring expense   4,201     7,411
    Other   17,348     18,377
    Total non-interest expense   241,865     239,524
    Income before provision for income taxes   91,691     93,914
    Provision for income taxes   22,976     18,915
    Net income $ 68,715   $ 74,999
    Earnings per common share:    
    Basic $ 0.77   $ 0.85
    Diluted $ 0.77   $ 0.85
    Weighted average common shares outstanding during the period:  
    Basic   88,983,248     88,230,681
    Diluted   89,302,304     88,450,646
    Dividends paid per common share $ 0.540   $ 0.540
         
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Asset Quality Analysis (Unaudited)
     
      At and for the Three Months Ended
      December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023
      (Dollars in Thousands)
    NONPERFORMING ASSETS:          
    Loans and leases accounted for on a nonaccrual basis:          
    Commercial real estate mortgage $ 11,525   $ 11,595   $ 11,659   $ 18,394   $ 19,608  
    Multi-family mortgage   6,596     1,751     —     —     —  
    Construction   —     —     —     —     —  
    Total commercial real estate loans   18,121     13,346     11,659     18,394     19,608  
               
    Commercial   14,676     15,734     16,636     3,096     3,886  
    Equipment financing   31,509     37,223     27,128     13,668     14,984  
    Total commercial loans and leases   46,185     52,957     43,764     16,764     18,870  
               
    Residential mortgage   3,999     3,862     4,495     4,563     4,292  
    Home equity   1,043     1,076     790     950     860  
    Other consumer   1     1     1     1     —  
    Total consumer loans   5,043     4,939     5,286     5,514     5,152  
               
    Total nonaccrual loans and leases   69,349     71,242     60,709     40,672     43,630  
               
    Other real estate owned   700     780     780     780     780  
    Other repossessed assets   403     799     1,194     1,037     914  
    Total nonperforming assets $ 70,452   $ 72,821   $ 62,683   $ 42,489   $ 45,324  
               
    Loans and leases past due greater than 90 days and still accruing $ 811   $ 16,091   $ 4,994   $ 363   $ 228  
               
    Nonperforming loans and leases as a percentage of total loans and leases   0.71 %   0.73 %   0.62 %   0.42 %   0.45 %
    Nonperforming assets as a percentage of total assets   0.59 %   0.62 %   0.54 %   0.37 %   0.40 %
               
    PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:      
    Allowance for loan and lease losses at beginning of period $ 127,316   $ 121,750   $ 120,124   $ 117,522   $ 119,081  
    Charge-offs   (8,414 )   (4,183 )   (8,823 )   (5,390 )   (7,722 )
    Recoveries   1,162     375     436     309     581  
    Net charge-offs   (7,252 )   (3,808 )   (8,387 )   (5,081 )   (7,141 )
    Provision for loan and lease losses excluding unfunded commitments *   5,019     9,374     10,013     7,683     5,582  
    Allowance for loan and lease losses at end of period $ 125,083   $ 127,316   $ 121,750   $ 120,124   $ 117,522  
               
    Allowance for loan and lease losses as a percentage of total loans and leases   1.28 %   1.31 %   1.25 %   1.24 %   1.22 %
               
    NET CHARGE-OFFS:          
    Commercial real estate loans $ —   $ —   $ 3,819   $ 606   $ 1,087  
    Commercial loans and leases **   7,257     3,797     4,571     8,179     6,061  
    Consumer loans   (5 )   11     (3 )   (4 )   (7 )
    Total net charge-offs $ 7,252   $ 3,808   $ 8,387   $ 8,781   $ 7,141  
               
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized)   0.30 %   0.16 %   0.35 %   0.36 %   0.30 %
               
    *Provision for loan and lease losses does not include (credit) provision of $(0.9 million), $(4.5 million), $(4.4 million), $(0.3 million), and $(1.7 million) for credit losses on unfunded commitments during the three months ended December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively.
    ** The balance at March 31, 2024 includes a $3.7 million charge-off on a letter of credit which impacted the provision.
               
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Average Yields / Costs (Unaudited)
     
      Three Months Ended
      December 31, 2024 September 30, 2024 December 31, 2023
      Average
    Balance    		 Interest (1) Average
    Yield/
    Cost    		 Average
    Balance    		 Interest (1) Average
    Yield/
    Cost    		 Average
    Balance    		 Interest (1) Average
    Yield/
    Cost
      (Dollars in Thousands)
    Assets:                  
    Interest-earning assets:                  
    Investments:                  
    Debt securities (2) $ 856,065 $ 6,463 3.02 % $ 853,924 $ 6,516 3.05 % $ 876,350 $ 6,986 3.19 %
    Restricted equity securities (2)   75,879   1,459 7.69 %   75,225   1,459 7.76 %   67,567   1,334 7.90 %
    Short-term investments   236,784   2,830 4.78 %   145,838   1,986 5.44 %   85,790   1,093 5.09 %
    Total investments   1,168,728   10,752 3.68 %   1,074,987   9,961 3.71 %   1,029,707   9,413 3.66 %
    Loans and Leases:                  
    Commercial real estate loans (3)   5,752,591   81,195 5.52 %   5,772,456   83,412 5.65 %   5,727,930   81,653 5.58 %
    Commercial loans (3)   1,170,295   19,750 6.61 %   1,079,084   18,440 6.69 %   969,603   16,296 6.58 %
    Equipment financing (3)   1,310,143   26,295 8.03 %   1,353,649   26,884 7.94 %   1,347,589   25,211 7.48 %
    Consumer loans (3)   1,529,654   20,881 5.44 %   1,505,095   21,123 5.60 %   1,475,580   19,888 5.37 %
    Total loans and leases   9,762,683   148,121 6.07 %   9,710,284   149,859 6.17 %   9,520,702   143,048 6.01 %
    Total interest-earning assets   10,931,411   158,873 5.81 %   10,785,271   159,820 5.93 %   10,550,409   152,461 5.78 %
    Non-interest-earning assets   649,161       666,067       721,532    
    Total assets $ 11,580,572     $ 11,451,338     $ 11,271,941    
                       
    Liabilities and Stockholders’ Equity:                  
    Interest-bearing liabilities:                  
    Deposits:                  
    NOW accounts $ 630,408   1,056 0.67 % $ 639,561   1,115 0.69 % $ 657,134   1,146 0.69 %
    Savings accounts   1,741,355   10,896 2.49 %   1,738,756   12,098 2.77 %   1,658,144   10,684 2.56 %
    Money market accounts   2,083,033   13,856 2.65 %   2,038,048   15,466 3.02 %   2,140,225   16,239 3.01 %
    Certificates of deposit   1,857,483   20,691 4.43 %   1,768,026   20,054 4.51 %   1,530,772   14,517 3.76 %
    Brokered deposit accounts   797,910   10,063 5.02 %   841,067   11,063 5.23 %   880,604   11,448 5.16 %
    Total interest-bearing deposits   7,110,189   56,562 3.16 %   7,025,458   59,796 3.39 %   6,866,879   54,034 3.12 %
    Borrowings:                  
    Advances from the FHLB   1,144,157   13,958 4.77 %   1,139,049   14,366 4.94 %   965,846   11,943 4.84 %
    Subordinated debentures and notes   84,311   1,944 9.22 %   84,276   1,378 6.54 %   84,170   1,381 6.56 %
    Other borrowed funds   65,947   695 4.20 %   53,102   1,012 7.58 %   136,566   1,406 4.09 %
    Total borrowings   1,294,415   16,597 5.02 %   1,276,427   16,756 5.14 %   1,186,582   14,730 4.86 %
    Total interest-bearing liabilities   8,404,604   73,159 3.46 %   8,301,885   76,552 3.67 %   8,053,461   68,764 3.39 %
    Non-interest-bearing liabilities:                  
    Demand checking accounts   1,693,138       1,669,092       1,723,849    
    Other non-interest-bearing liabilities   250,303       264,324       323,855    
    Total liabilities   10,348,045       10,235,301       10,101,165    
    Stockholders’ equity   1,232,527       1,216,037       1,170,776    
    Total liabilities and equity $ 11,580,572     $ 11,451,338     $ 11,271,941    
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)     85,714 2.35 %     83,268 2.26 %     83,697 2.39 %
    Less adjustment of tax-exempt income     726       260       142  
    Net interest income   $ 84,988     $ 83,008     $ 83,555  
    Net interest margin (5)     3.12 %     3.07 %     3.15 %
                       
    (1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
    (2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
    (3) Loans on nonaccrual status are included in the average balances.
    (4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets.
                       
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Average Yields / Costs (Unaudited)
     
      Twelve Months Ended
      December 31, 2024 December 31, 2023
      Average
    Balance    		 Interest (1) Average
    Yield/
    Cost    		 Average
    Balance    		 Interest (1) Average
    Yield/
    Cost
      (Dollars in Thousands)
    Assets:            
    Interest-earning assets:            
    Investments:            
    Debt securities (2) $ 862,381 $ 26,416 3.06 % $ 947,782 $ 29,891 3.15 %
    Restricted equity securities (2)   74,788   5,786 7.74 %   72,264   5,572 7.71 %
    Short-term investments   164,445   8,554 5.20 %   158,718   8,329 5.25 %
    Total investments   1,101,614   40,756 3.70 %   1,178,764   43,792 3.72 %
    Loans and Leases:            
    Commercial real estate loans (3)   5,760,432   327,221 5.59 %   5,654,385   307,652 5.37 %
    Commercial loans (3)   1,086,460   73,369 6.65 %   929,077   59,110 6.28 %
    Equipment financing (3)   1,352,993   106,329 7.86 %   1,277,224   92,112 7.21 %
    Consumer loans (3)   1,501,626   82,273 5.47 %   1,470,677   75,098 5.10 %
    Total loans and leases   9,701,511   589,192 6.07 %   9,331,363   533,972 5.72 %
    Total interest-earning assets   10,803,125   629,948 5.83 %   10,510,127   577,764 5.50 %
    Non-interest-earning assets   670,299       704,244    
    Total assets $ 11,473,424     $ 11,214,371    
                 
    Liabilities and Stockholders’ Equity:            
    Interest-bearing liabilities:            
    Deposits:            
    NOW accounts $ 650,225   4,543 0.70 % $ 720,572   4,275 0.59 %
    Savings accounts   1,726,504   46,220 2.68 %   1,439,293   27,974 1.94 %
    Money market accounts   2,056,066   60,796 2.96 %   2,205,430   58,153 2.64 %
    Certificates of deposit   1,737,697   76,134 4.38 %   1,428,727   44,122 3.09 %
    Brokered deposit accounts   873,182   45,270 5.18 %   819,419   41,141 5.02 %
    Total interest-bearing deposits   7,043,674   232,963 3.31 %   6,613,441   175,665 2.66 %
    Borrowings:            
    Advances from the FHLB   1,124,432   55,851 4.89 %   1,092,996   52,467 4.73 %
    Subordinated debentures and notes   84,258   6,074 7.21 %   84,116   5,476 6.51 %
    Other borrowed funds   78,859   4,048 5.13 %   124,793   3,968 3.18 %
    Total borrowings   1,287,549   65,973 5.04 %   1,301,905   61,911 4.69 %
    Total interest-bearing liabilities   8,331,223   298,936 3.59 %   7,915,346   237,576 3.00 %
    Non-interest-bearing liabilities:            
    Demand checking accounts   1,657,922       1,823,759    
    Other non-interest-bearing liabilities   273,243       307,160    
    Total liabilities   10,262,388       10,046,265    
    Stockholders’ equity   1,211,036       1,168,106    
    Total liabilities and equity $ 11,473,424     $ 11,214,371    
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)     331,012 2.24 %     340,188 2.50 %
    Less adjustment of tax-exempt income     1,427       477  
    Net interest income   $ 329,585     $ 339,711  
    Net interest margin (5)     3.06 %     3.24 %
                 
    (1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
    (2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
    (3) Loans on nonaccrual status are included in the average balances.
    (4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets.
                 
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Non-GAAP Financial Information (Unaudited)
             
          At and for the Three Months Ended
    December 31,    		 At and for the Twelve Months Ended
    December 31,
            2024 2023 2024 2023
    Reconciliation Table – Non-GAAP Financial Information   (Dollars in Thousands Except Share Data)
                 
    Reported Pretax Income     $ 23,819   $ 28,563   $ 91,691   $ 93,914  
    Less:              
    Security gains   —     —     —     1,704  
    Add:              
    Day 1 PCSB CECL provision         —     —     —     16,744  
    Merger and acquisition expenses     3,378     —     4,201     7,411  
    Operating Pretax income   $ 27,197   $ 28,563   $ 95,892   $ 116,365  
    Effective tax rate     23.9 %   19.9 %   24.5 %   20.1 %
    Provision for income tax     6,511     5,675     23,480     23,437  
    Operating earnings after tax       $ 20,686   $ 22,888   $ 72,412   $ 92,928  
                   
    Operating earnings per common share:            
    Basic       $ 0.23   $ 0.26   $ 0.81   $ 1.05  
    Diluted       $ 0.23   $ 0.26   $ 0.81   $ 1.05  
                   
    Weighted average common shares outstanding during the period:          
    Basic         89,098,443     88,867,159     88,983,248     88,230,681  
    Diluted         89,483,964     89,035,505     89,302,304     88,450,646  
                   
                   
    Return on average assets *       0.61 %   0.81 %   0.60 %   0.67 %
    Less:              
    Security gains (after-tax) *       — %   — %   — %   0.01 %
    Add:              
    Day 1 PCSB CECL provision (after-tax) *     — %   — %   — %   0.12 %
    Merger and acquisition expenses (after-tax) *     0.09 %   — %   0.03 %   0.05 %
    Operating return on average assets *       0.70 %   0.81 %   0.63 %   0.83 %
                   
                   
    Return on average tangible assets *       0.62 %   0.83 %   0.61 %   0.69 %
    Less:              
    Security gains (after-tax) *       — %   — %   — %   0.01 %
    Add:              
    Day 1 PCSB CECL provision (after-tax) *     — %   — %   — %   0.12 %
    Merger and acquisition expenses (after-tax) *     0.09 %   — %   0.03 %   0.05 %
    Operating return on average tangible assets *       0.71 %   0.83 %   0.64 %   0.85 %
                   
                   
    Return on average stockholders’ equity *       5.69 %   7.82 %   5.67 %   6.42 %
    Less:              
    Security gains (after-tax) *       — %   — %   — %   0.12 %
    Add:              
    Day 1 PCSB CECL provision (after-tax) *     — %   — %   — %   1.14 %
    Merger and acquisition expenses (after-tax) *     0.83 %   — %   0.26 %   0.51 %
    Operating return on average stockholders’ equity *     6.52 %   7.82 %   5.93 %   7.95 %
                   
                   
    Return on average tangible stockholders’ equity *     7.21 %   10.12 %   7.24 %   8.36 %
    Less:              
    Security gains (after-tax) *       — %   — %   — %   0.15 %
    Add:              
    Day 1 PCSB CECL provision (after-tax) *     — %   — %   — %   1.49 %
    Merger and acquisition expenses (after-tax) *     1.06 %   — %   0.33 %   0.66 %
    Operating return on average tangible stockholders’ equity *     8.27 %   10.12 %   7.57 %   10.36 %
    * Ratios at and for the three months ended are annualized.          
                   
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Non-GAAP Financial Information (Unaudited)
     
      At and for the Three Months Ended At and for the Twelve
    Months Ended
      December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023    		 December 31,
    2024    		 December 31,
    2023
      (Dollars in Thousands)
                   
    Net income, as reported $ 17,536   $ 20,142   $ 16,372   $ 14,665   $ 22,888   $ 68,715   $ 74,999  
                   
    Average total assets $ 11,580,572   $ 11,451,338   $ 11,453,394   $ 11,417,185   $ 11,271,941   $ 11,473,424   $ 11,214,371  
    Less: Average goodwill and average identified intangible assets, net   259,496     261,188     262,859     264,536     266,225     262,011     270,637  
    Average tangible assets $ 11,321,076   $ 11,190,150   $ 11,190,535   $ 11,152,649   $ 11,005,716   $ 11,211,413   $ 10,943,734  
                   
    Return on average tangible assets (annualized)   0.62 %   0.72 %   0.59 %   0.53 %   0.83 %   0.61 %   0.69 %
                   
    Average total stockholders’ equity $ 1,232,527   $ 1,216,037   $ 1,193,385   $ 1,201,904   $ 1,170,776   $ 1,211,036   $ 1,168,106  
    Less: Average goodwill and average identified intangible assets, net   259,496     261,188     262,859     264,536     266,225     262,011     270,637  
    Average tangible stockholders’ equity $ 973,031   $ 954,849   $ 930,526   $ 937,368   $ 904,551   $ 949,025   $ 897,469  
                   
    Return on average tangible stockholders’ equity (annualized)   7.21 %   8.44 %   7.04 %   6.26 %   10.12 %   7.24 %   8.36 %
                   
    Total stockholders’ equity $ 1,221,939   $ 1,230,362   $ 1,198,480   $ 1,194,231   $ 1,198,644   $ 1,221,939   $ 1,198,644  
    Less:              
    Goodwill   241,222     241,222     241,222     241,222     241,222     241,222     241,222  
    Identified intangible assets, net   17,461     19,162     20,830     22,499     24,207     17,461     24,207  
    Tangible stockholders’ equity $ 963,256   $ 969,978   $ 936,428   $ 930,510   $ 933,215   $ 963,256   $ 933,215  
                   
    Total assets $ 11,905,326   $ 11,676,721   $ 11,635,292   $ 11,542,731   $ 11,382,256   $ 11,905,326   $ 11,382,256  
    Less:              
    Goodwill   241,222     241,222     241,222     241,222     241,222     241,222     241,222  
    Identified intangible assets, net   17,461     19,162     20,830     22,499     24,207     17,461     24,207  
    Tangible assets $ 11,646,643   $ 11,416,337   $ 11,373,240   $ 11,279,010   $ 11,116,827   $ 11,646,643   $ 11,116,827  
                   
    Tangible stockholders’ equity to tangible assets   8.27 %   8.50 %   8.23 %   8.25 %   8.39 %   8.27 %   8.39 %
                   
    Tangible stockholders’ equity $ 963,256   $ 969,978   $ 936,428   $ 930,510   $ 933,215   $ 963,256   $ 933,215  
                   
    Number of common shares issued   96,998,075     96,998,075     96,998,075     96,998,075     96,998,075     96,998,075     96,998,075  
    Less:              
    Treasury shares   7,019,384     7,015,843     7,373,009     7,354,399     7,354,399     7,019,384     7,354,399  
    Unvested restricted shares   880,248     883,789     713,443     749,099     749,099     880,248     749,099  
    Number of common shares outstanding   89,098,443     89,098,443     88,911,623     88,894,577     88,894,577     89,098,443     88,894,577  
                   
    Tangible book value per common share $ 10.81   $ 10.89   $ 10.53   $ 10.47   $ 10.50   $ 10.81   $ 10.50  

    PDF available: http://ml.globenewswire.com/Resource/Download/396afece-df5e-4cc5-a637-0706599b2b0d

    The MIL Network –

  • MIL-OSI Video: RBNZ Beyond the Cycle: Growth and interest rates in the long run – speech by Chief Economist Paul Conway

    Source: Reserve Bank of New Zealand (video statements)

    Full written version of speech available here: https://www.rbnz.govt.nz/hub/news/2025/01/beyond-the-cycle

    https://www.youtube.com/watch?v=U8yj3nEUO-E

    MIL OSI Video –

  • MIL-OSI United Nations: Aid efforts in Gaza escalate as risks from deadly unexploded ordnance grows

    Source: United Nations 4

    Humanitarian Aid

    As more than 423,000 displaced Palestinians return to their homes in northern Gaza following the opening of key roads, UN agencies are scaling up humanitarian aid and addressing the growing risks posed by unexploded ordnance such as landmines (UXO). 

    “Hope returns to Gaza, but it’s fragile,” said Corinne Fleischer, World Food Programme (WFP) Regional Director for the Middle East and North Africa. “With open crossings and sustained efforts, Gaza’s recovery can take root,” she emphasised.

    The WFP has doubled its aid deliveries, bringing in 22,000 metric tons of food in the past six days – more than the entire supply that entered Gaza in November.

    Scaling up essential services

    UN Spokesperson Stéphane Dujarric highlighted further relief efforts, noting that six fuel tankers were delivered to northern Gaza on Wednesday.

    Aid workers stationed along the Salah ad Din and Al Rashid roads continue to assist people making their way back north to shattered homes, providing food, water, and hygiene kits, with the UN Children’s fund (UNICEF) distributing identification bracelets for children to help families stay connected.

    To support vulnerable groups, the World Health Organization (WHO) has supplied fuel, tents and equipment to establish trauma stabilization points along Al Rashid Road in collaboration with the Palestine Red Crescent Society.

    Meanwhile, efforts to provide emergency nutrition continue, with high-energy biscuits distributed to 19,000 people south of Wadi Gaza and 10,000 in the north.

    Shelter assistance is also being scaled up, with humanitarian partners distributing tents to families – many of whom are returning to homes that have been completely destroyed.

    Water remains a critical concern and aid workers are ramping up water trucking operations. In Rafah alone, 300 cubic meters of potable water – enough for 50,000 people – is being distributed daily.

    Danger underfoot

    Despite the increasing humanitarian response, returning residents face significant risks from UXO contamination.

    The UN Mine Action Service (UNMAS) has warned that between 5 to 10 percent of weapons fired into Gaza have failed to detonate, leaving behind deadly hazards.

    Since October 2023, at least 92 people have been killed or injured by explosive ordnance. Informal reports suggest 24 victims since the ceasefire began, according to Luke Irving, Chief of the UN Mine Action Programme (UNMAS) in the occupied Palestinian territories, briefing the press on Wednesday from the enclave.

    “Humanitarian convoys are finding items more and more, as we reach new areas which we previously could not get to, including large aircraft bombs, mortars, anti-tank weapons, rockets and rifle grenades,” he explained.

    © WFP

    An area of Rafah in the southern Gaza Strip lies in ruins.

    Rubble removal

    To mitigate risks, UNMAS and its partners are conducting awareness sessions, distributing safety leaflets and escorting humanitarian convoys along high-risk routes.

    A newly established UN-led Gaza Debris Management Framework aims to ensure the safe removal of rubble, but progress is being hindered by UXO contamination, exposure to hazardous materials and complex property disputes.

    Several UN agencies are collaborating to address both the environmental and housing concerns associated with these issues.

    Deteriorating situation in West Bank

    Meanwhile, in the occupied West Bank, violence and military operations continue to escalate.

    The UN Office for the Coordination of Humanitarian Affairs (OCHA) has reported a drastic deterioration in the humanitarian situation, particularly in the governorates of Jenin and Tulkarm.

    “We’ve repeatedly expressed our concern over the use of lethal, war-like tactics in law enforcement operations,” Mr. Dujarric said.

    Israeli military operations in these areas have led to significant destruction of civilian infrastructure.

    In Tulkarm, access to water and electricity has been disrupted and initial estimates suggest that nearly 1,000 people have been displaced in recent days.

    Sustained humanitarian access

    With humanitarian efforts scaling up, UN agencies are calling for unhindered access to deliver aid safely and ensure the protection of both civilians and humanitarian workers.

    Mr. Dujarric reiterated the urgent need for safe passage for humanitarian workers, the protection of civilians and the acceleration of reconstruction efforts to support those returning home. 

    Soundcloud

    MIL OSI United Nations News –

  • MIL-OSI: NorthEast Community Bancorp, Inc. Reports Results for the Fourth Quarter and Year Ended December 31, 2024

    Source: GlobeNewswire (MIL-OSI)

    WHITE PLAINS, N.Y., Jan. 29, 2025 (GLOBE NEWSWIRE) — NorthEast Community Bancorp, Inc. (Nasdaq: NECB) (the “Company”), the parent holding company of NorthEast Community Bank (the “Bank”), generated net income of $10.9 million, or $0.83 per basic share and $0.80 per diluted share, for the fourth quarter ended December 31, 2024 compared to net income of $12.1 million, or $0.82 per basic and diluted share, for the fourth quarter ended December 31, 2023. In addition, the Company generated net income of $47.8 million, or $3.64 per basic share and $3.58 per diluted share, for the year ended December 31, 2024 compared to net income of $46.3 million, or $3.32 per basic share and diluted share, for the year ended December 31, 2023.

    Kenneth A. Martinek, Chairman of the Board and Chief Executive Officer, stated “We are pleased to report another quarter of strong earnings due to the strong performance of our loan portfolio.   Despite the challenging high interest rate environment during 2023 that continued into most of 2024, loan demand remained strong with originations and outstanding commitments remaining robust. As has been in the past, construction lending in high demand-high absorption areas continues to be our focus.”

    Highlights for the fourth quarter and the year ended December 31, 2024 are as follows:

    • Performance metrics continue to be strong with a return on average total assets ratio of 2.19%, a return on average shareholders’ equity ratio of 13.80%, and an efficiency ratio of 38.99% for the quarter ended December 31, 2024. For the year ended December 31, 2024, the Company generated a return on average total assets ratio of 2.50%, a return on average shareholders’ equity ratio of 15.83%, and an efficiency ratio of 37.00%.
    • Net interest income increased by $91,000 and $5.6 million, or 0.4% and 5.8%, respectively, for the quarter and year ended December 31, 2024 compared to the same periods in 2023.
    • Our net loans receivable increased by $227.0 million, or 14.3%, to $1.8 billion at December 31, 2024 compared to $1.6 billion at December 31, 2023.

    Balance Sheet Summary

    Total assets increased $246.2 million, or 14.0%, to $2.0 billion at December 31, 2024, from $1.8 billion at December 31, 2023. The increase in assets was primarily due to increases in net loans of $227.0 million, cash and cash equivalents of $9.6 million, equity securities of $3.9 million, real estate owned of $3.7 million, and other assets of $3.3 million.

    Cash and cash equivalents increased $9.6 million, or 14.0%, to $78.3 million at December 31, 2024 from $68.7 million at December 31, 2023. The increase in cash and cash equivalents was a result of an increase in deposits of $270.3 million, partially offset by a decrease in borrowings of $64.0 million, an increase of $227.0 million in net loans, dividends to shareholders of $8.7 million, and stock repurchases of $2.4 million.

    Equity securities increased $3.9 million, or 21.5%, to $22.0 million at December 31, 2024 from $18.1 million at December 31, 2023. The increase in equity securities was attributable to the purchase of $4.0 million in equity securities during the second half of 2024, offset by market depreciation of $109,000 due to market interest rate volatility during the year ended December 31, 2024.

    Securities held-to-maturity decreased $1.2 million, or 7.8%, to $14.6 million at December 31, 2024 from $15.9 million at December 31, 2023 due to $1.2 million in maturities and pay-downs of various investment securities, partially offset by a decrease of $10,000 in the allowance for credit losses for held-to-maturity securities.

    Loans, net of the allowance for credit losses, increased $227.0 million, or 14.3%, to $1.8 billion at December 31, 2024 from $1.6 billion at December 31, 2023. The increase in loans, net of the allowance for credit losses, was primarily due to loan originations of $656.0 million during the year ended December 31, 2024, consisting primarily of $573.8 million in construction loans with respect to which approximately 36.3% of the funds were disbursed at loan closings, with the remaining funds to be disbursed over the terms of the construction loans. In addition, during the year ended December 31, 2024, we originated $54.9 million in commercial and industrial loans, $14.0 million in non-residential loans, $12.6 million in multi-family loans, and $600,000 in mixed-use loans. We also originated $9.2 million in letters of credit.

    Loan originations during the year ended December 31, 2024 resulted in a net increase of $206.8 million in construction loans, $8.6 million in commercial and industrial loans, $8.3 million in non-residential loans, $7.7 million in multi-family loans, and $409,000 in consumer loans. The increase in our loan portfolio was partially offset by decreases of $3.1 million in mixed-use loans and $1.8 million in residential loans, coupled with normal pay-downs and principal reductions.

    The allowance for credit losses related to loans decreased to $4.8 million as of December 31, 2024, from $5.1 million as of December 31, 2023. The decrease in the allowance for credit losses related to loans was due to charge-offs totaling $347,000, offset by provision for credit losses totaling $84,000.  

    Premises and equipment decreased $647,000, or 2.5%, to $24.8 million at December 31, 2024 from $25.5 million at December 31, 2023 primarily due to the depreciation of fixed assets.

    Investments in Federal Home Loan Bank stock decreased $532,000, or 57.3%, to $397,000 at December 31, 2024 from $929,000 at December 31, 2023. The decrease was due primarily to the mandatory redemption of Federal Home Loan Bank stock totaling $630,000 in connection with the maturity of $14.0 million in advances in 2024, offset by purchases of Federal Home Loan Bank stock totaling $98,000 due to the growth of our mortgage loan portfolio.

    Bank owned life insurance (“BOLI”) increased $656,000, or 2.6%, to $25.7 million at December 31, 2024 from $25.1 million at December 31, 2023 due to increases in the BOLI cash value.

    Accrued interest receivable increased $1.2 million, or 9.5%, to $13.5 million at December 31, 2024 from $12.3 million at December 31, 2023 due to an increase in the loan portfolio.

    Real estate owned increased $3.7 million, or 251.6%, to $5.1 million at December 31, 2024 from $1.5 million at December 31, 2023 due to foreclosure of a property, with a book value of $4.4 million, located in the Bronx, New York, offset by charge-offs totaling $689,000 resulting from a decrease in the estimated fair value of a foreclosed property located in Pittsburgh, Pennsylvania.

    Right of use assets — operating decreased $565,000, or 12.4%, to $4.0 million at December 31, 2024 from $4.6 million at December 31, 2023, primarily due to amortization.

    Other assets increased $3.3 million, or 40.5%, to $11.3 million at December 31, 2024 from $8.0 million at December 31, 2023 due to increases of $2.8 million in tax assets, $476,000 in suspense accounts, and $6,000 in miscellaneous assets, partially offset by decreases of $40,000 in prepaid expenses and $2,000 in securities receivables.

    Total deposits increased $270.3 million, or 19.3%, to $1.7 billion at December 31, 2024 from $1.4 billion at December 31, 2023. The increase in deposits was primarily due to the Bank offering competitive interest rates to attract deposits. This resulted in a shift in deposits whereby certificates of deposit increased $239.7 million, or 31.5%, and NOW/money market accounts increased $98.0 million, or 67.4%, partially offset by decreases in savings account balances of $54.3 million, or 28.2%, and non-interest bearing demand deposits of $14.7 million, or 4.9%.

    Federal Reserve Bank borrowings of $50.0 million at December 31, 2023 and Federal Home Loan Bank advances of $14.0 million at December 31, 2023 were paid-off during the year ended December 31, 2024.

    Advance payments by borrowers for taxes and insurance decreased $402,000, or 19.9%, to $1.6 million at December 31, 2024 from $2.0 million at December 31, 2023 due primarily to real estate tax payments for borrowers.

    Lease liability – operating decreased $517,000, or 11.2%, to $4.1 million at December 31, 2024 from $4.6 million at December 31, 2023, primarily due to amortization.

    Accounts payable and accrued expenses increased $972,000, or 7.2%, to $14.5 million at December 31, 2024 from $13.6 million at December 31, 2023 due primarily to increases in dividends payable and other payables of $856,000 and deferred compensation of $729,000, partially offset by decreases in accrued interest expense of $102,000, suspense account for loan closings of $99,000, and accrued expense of $79,000. The allowance for credit losses for off-balance sheet commitments decreased $333,000, or 32.1%, to $704,000 at December 31, 2024 from $1.0 million at December 31, 2023.

    Stockholders’ equity increased $39.7 million, or 14.2% to $319.1 million at December 31, 2024, from $279.3 million at December 31, 2023. The increase in stockholders’ equity was due to net income of $47.8 million for the year ended December 31, 2024, the amortization expense of $2.0 million relating to restricted stock and stock options granted under the Company’s 2022 Equity Incentive Plan, an increase of $1.3 million in earned employee stock ownership plan shares coupled with a reduction of $475,000 in unearned employee stock ownership plan shares, and an exercise of stock options totaling $14,000, partially offset by dividends paid and declared of $8.7 million, stock repurchases and stock repurchase excise taxes totaling $2.5 million, awarding restricted stock totaling $725,000. and $93,000 in other comprehensive income.

    Results of Operations for the Quarter Ended December 31, 2024 and 2023

    Net Interest Income

    Net interest income was $25.3 million for the quarter ended December 31, 2024, as compared to $25.2 million for the quarter ended December 31, 2023. The increase in net interest income of $92,000, or 0.4%, was primarily due to an increase in interest income that exceeded an increase in interest expense.

    The increase in interest income is attributable to increases in the average balances of loans, interest-bearing deposits, and investment securities, partially offset by a decrease in the average balances of FHLB stock. However, the Federal Reserve’s decrease of interest rates starting in September 2024 impacted the yield on our interest earning assets.

    The increase in market interest rates in 2023 that continued until September 2024 also caused an increase in our interest expense. As a result, the increase in interest expense for the quarter ended December 31, 2024 was due to an increase in the cost of funds on our deposits. The increase in interest expense was also due to an increase in the average balances on our certificates of deposits and our interest-bearing demand deposits, offset by a decrease in the average balances on our savings and club deposits and our borrowed money.

    Total interest and dividend income increased $3.3 million, or 9.0%, to $40.5 million for the quarter ended December 31, 2024 from $37.1 million for the quarter ended December 31, 2023. The increase in interest and dividend income was due to an increase in the average balance of interest earning assets of $249.5 million, or 15.0%, to $1.9 billion for the quarter ended December 31, 2024 from $1.7 billion for the quarter ended December 31, 2023, partially offset by a decrease in the yield on interest earning assets by 47 basis points from 8.93% for the quarter ended December 31, 2023 to 8.46% for the quarter ended December 31, 2024.

    Interest expense increased $3.3 million, or 27.3%, to $15.2 million for the quarter ended December 31, 2024 from $11.9 million for the quarter ended December 31, 2023. The increase in interest expense was due to an increase in the cost of interest bearing liabilities by 20 basis points from 4.14% for the quarter ended December 31, 2023 to 4.34% for the quarter ended December 31, 2024 and an increase in average interest bearing liabilities of  $247.3 million, or 21.5%, to $1.4 billion for the quarter ended December 31, 2024 from $1.2 billion for the quarter ended December 31, 2023.

    Our net interest margin decreased 77 basis points, or 12.7%, to 5.29% for the quarter ended December 31, 2024 compared to 6.06% for the quarter ended December 31, 2023. The decrease in the net interest margin was due to an increase in the cost of funds on interest-bearing liabilities and a decrease in the yield on interest-earning assets.

    Credit Loss Expense

    The Company recorded a credit loss expense of $26,000 for the quarter ended December 31, 2024 compared to a credit loss expense of $205,000 for the quarter ended December 31, 2023. The credit loss expense of $26,000 for the quarter ended December 31, 2024 was comprised of credit loss expense for loans of $230,000 due to charge-offs of $232,000 in unpaid overdrafts in our demand deposit accounts, offset by credit loss expense reduction for off-balance sheet commitments of $204,000 primarily attributable to a decrease in the aggregate unfunded off-balance sheet commitments.

    The credit loss expense of $205,000 for the three months ended December 31, 2023 was comprised of credit loss expense for loans of $352,000 and credit loss expense for held-to-maturity investment securities of $6,000, partially offset by credit loss expense reduction for off-balance sheet commitments of $153,000.

    With respect to the allowance for credit losses for loans, we charged-off $232,000 during the quarter ended December 31, 2024 as compared to charge-offs of $27,000 during the quarter ended December 31, 2023. The charge-offs during both periods were against various unpaid overdrafts in our demand deposit accounts.

    We recorded no recoveries from previously charged-off loans during the quarter ended December 31, 2024 and 2023.

    Non-Interest Income

    Non-interest income for the quarter ended December 31, 2024 was $149,000 compared to non-interest income of $1.4 million for the quarter ended December 31, 2023. The decrease of $1.2 million, or 89.2%, in total non-interest income was primarily due to decreases of $1.2 million in unrealized gain (loss) on equity securities, $115,000 in investment advisory fees, and $12,000 in miscellaneous other non-interest income, partially offset by increases of $40,000 from sale/disposition of fixed assets, $14,000 in BOLI income, and $11,000 in other loan fees and service charges.

    The increase in unrealized gain (loss) on equity securities was due to an unrealized loss of $554,000 on equity securities during the quarter ended December 31, 2024 compared to an unrealized gain of $621,000 on equity securities during the quarter ended December 31, 2023. The unrealized loss of $554,000 on equity securities during the quarter ended December 31, 2024 was due to market interest rate volatility during the quarter ended December 31, 2024.

    The decrease in investment advisory fees was due to the disposition in January 2024 of the Bank’s assets relating to the Harbor West Wealth Management Group. As a result of the transaction, the Bank no longer generates investment advisory fees.

    Regarding the sale/disposition of fixed assets, we recorded gains of $22,000 during the quarter ended December 31, 2024 compared to losses of $18,000 during the quarter ended December 31, 2023.  

    The increase in BOLI income of $14,000 was due to an increase in the yield on BOLI assets.

    The increase of $11,000 in other loan fees and service charges was due to an increase of $24,000 in ATM/debit card/ACH fees and an increase of $2,000 in deposit account fees, partially offset by a decrease of $15,000 in other loan fees and loan servicing fees.

    Non-Interest Expense

    Non-interest expense increased $688,000, or 7.5%, to $9.9 million for the quarter ended December 31, 2024 from $9.2 million for the quarter ended December 31, 2023. The increase resulted primarily from increases of $444,000 in salaries and employee benefits, $163,000 in real estate owned expense, $108,000 in outside data processing expense, $79,000 in other operating expense, $18,000 in equipment expense, $7,000 in occupancy expense, and $7,000 in advertising expense, partially offset by a decrease of $138,000 in loss on the disposition of the Bank’s assets relating to the Harbor West Wealth Management Group.

    Income Taxes

    We recorded income tax expense of $4.6 million and $5.1 million for the quarter ended December 31, 2024 and 2023, respectively. For the quarter ended December 31, 2024, we had approximately $205,000 in tax exempt income, compared to approximately $190,000 in tax exempt income for the quarter ended December 31, 2023. Our effective income tax rates were 29.5% for the quarter ended December 31, 2024 and 2023, respectively.

    Results of Operations for the Year Ended December 31, 2024 and 2023

    Net Interest Income

    Net interest income was $102.8 million for the year ended December 31, 2024 as compared to $97.2 million for the year ended December 31, 2023. The increase in net interest income of $5.6 million, or 5.8%, was primarily due to an increase in interest income that exceeded an increase in interest expense.

    The increase in interest income is attributable to increases in loans and interest-bearing deposits, partially offset by decreases in investment securities and FHLB stock. The increase in interest income is also attributable to the Federal Reserve’s interest rate increases during 2023 that continued until September 2024. However, the Federal Reserve’s decrease of interest rates starting in September 2024 impacted the yield on our interest earning assets.

    The increase in market interest rates in 2023 that continued until September 2024 also caused an increase in our interest expense. As a result, the increase in interest expense for the year ended December 31, 2024 was due to an increase in the cost of funds on our deposits and borrowed money. The increase in interest expense was also due to increases in the average balances on our certificates of deposits, our interest-bearing demand deposits, and our borrowed money, offset by a decrease in the average balance of our savings and club deposits.

    Total interest and dividend income increased $27.5 million, or 20.8%, to $160.0 million for the year ended December 31, 2024 from $132.5 million for the year ended December 31, 2023. The increase in interest and dividend income was due to an increase in the average balance of interest earning assets of $312.3 million, or 20.6%, to $1.8 billion for the year ended December 31, 2024 from $1.5 billion for the year ended December 31, 2023 and an increase in the yield on interest earning assets by two basis points from 8.73% for the year ended December 31, 2023 to 8.75% for the year ended December 31, 2024.

    Interest expense increased $21.9 million, or 62.1%, to $57.2 million for the year ended December 31, 2024 from $35.3 million for the year ended December 31, 2023. The increase in interest expense was due to an increase in the cost of interest bearing liabilities by 77 basis points from 3.58% for the year ended December 31, 2023 to 4.35% for the year ended December 31, 2024, and an increase in average interest bearing liabilities of $328.9 million, or 33.3%, to $1.3 billion for the year ended December 31, 2024 from $986.3 million for the year ended December 31, 2023.

    Net interest margin decreased 79 basis points, or 12.3%, for the year ended December 31, 2024 to 5.62% compared to 6.41% for the year ended December 31, 2023.

    Credit Loss Expense

    The Company recorded a credit loss expense reduction totaling $260,000 for the year ended December 31, 2024 compared to a credit loss expense totaling $972,000 for the year ended December 31, 2023. The credit loss expense reduction of $260,000 for the year ended December 31, 2024 was comprised of a credit loss expense reduction for off-balance sheet commitments of $334,000 and a credit loss expense reduction for held-to-maturity investment securities of $10,000, offset by a credit loss expense for loans of $84,000.

    The credit loss expense reduction for off-balance sheet commitments of $334,000 for the year ended December 31, 2024 was primarily attributed to a reduction of $157.6 million in the level of off-balance sheet commitments. The credit loss expense reduction for held-to-maturity investment securities of $10,000 for the year ended December 31, 2024 was primarily attributed to a reduction of $708,000 in the level of applicable held-to-maturity investment securities.

    The credit loss expense for loans of $84,000 for the year ended December 31, 2024 was primarily attributed to charge-offs totaling $347,000, partially offset by favorable trends in the economy.  

    The credit loss expense of $972,000 for the year ended December 31, 2023 was comprised of credit loss expense for loans of $1.5 million and credit loss expense for held-to-maturity investment securities of $5,000, partially offset by a credit loss expense reduction for off-balance sheet commitments of $548,000.

    We charged-off $347,000 during the year ended December 31, 2024 as compared to charge-offs of $313,000 during the year ended December 31, 2023. The charge-offs of $347,000 during the year ended December 31, 2024 were against various unpaid overdrafts in our demand deposit accounts. The charge-offs of $312,000 during the year ended December 31, 2023 were comprised of a charge-off of $159,000 related to three performing construction loans on the same project whereby we sold the loans to a third-party at a loss of $159,000. The remaining charge-offs of $153,000 for the 2023 period were against various unpaid overdrafts in our demand deposit accounts.

    We recorded no recoveries from previously charged-off loans during the year ended December 31, 2024 and 2023.

    Non-Interest Income

    Non-interest income for the year ended December 31, 2024 was $2.8 million compared to non-interest income of $3.7 million for the year ended December 31, 2023. The decrease of $960,000, or 25.6%, in total non-interest income was primarily due to decreases of $458,000 in investment advisory fees, $403,000 in unrealized gains (losses) on equity securities, and $357,000 in BOLI income, partially offset by increases of $207,000 in other loan fees and service charges, $40,000 from sale/disposition of fixed assets, and $11,000 in miscellaneous other non-interest income.

    The decrease in investment advisory fees was due to the disposition in January 2024 of the Bank’s assets relating to the Harbor West Wealth Management Group. As a result of the transaction, the Bank no longer generates investment advisory fees. The decrease in unrealized gain (loss) on equity securities was due to an unrealized loss of $109,000 on equity securities during the year ended December 31, 2024 compared to an unrealized gain of $294,000 on equity securities during the year ended December 31, 2023. The unrealized loss of $109,000 on equity securities during the 2024 period was due to market interest rate volatility during the year ended December 31, 2024.

    The decrease in BOLI income was primarily due to two death claims totaling $1.8 million on BOLI policies that resulted in additional BOLI income of $404,000 in the year ended December 31, 2023.

    The increase of $207,000 in other loan fees and service charges was due to increases of $148,000 in other loan fees and loan servicing fees, $51,000 in ATM/debit card/ACH fees, and $7,000 in deposit account fees.

    Regarding the sale/disposition of fixed assets, we recorded gains of $22,000 during the year ended December 31, 2024 compared to losses of $18,000 during the year ended December 31, 2023.

    Non-Interest Expense

    Non-interest expense increased $3.8 million, or 10.9%, to $39.1 million for the year ended December 31, 2024 from $35.2 million for the year ended December 31, 2023. The increase resulted primarily from increases of $2.1 million in salaries and employee benefits, $879,000 in other operating expense, $638,000 in real estate owned expense, $394,000 in outside data processing expense, and $233,000 in occupancy expense, partially offset by decreases of $165,000 in equipment expense, $138,000 in loss on the disposition of the Bank’s assets relating to the Harbor West Wealth Management Group, and $103,000 in advertising expense.

    Income Taxes

    We recorded income tax expense of $19.0 million and $18.5 million for the year ended December 31, 2024 and 2023, respectively. For the year ended December 31, 2024, we had approximately $802,000 in tax exempt income, compared to approximately $1.1 million in tax exempt income for the year ended December 31, 2023. The decrease in tax exempt income was due to two death claims totaling $1.8 million on BOLI policies during the year ended December 31, 2023. Our effective income tax rates were 28.4% and 28.5% for the year ended December 31, 2024 and 2023, respectively.

    Asset Quality

    Non-performing assets were $5.1 million at December 31, 2024 compared to $5.8 million at December 31, 2023.   At December 31, 2023, we had two non-performing construction loans totaling $4.4 million secured by the same project located in the Bronx, New York. We successfully foreclosed on these two loans on October 21, 2024 and the balances were transferred to foreclosed real estate. As a result, at December 31, 2024, we had two non-performing assets consisting of two foreclosed properties, with one foreclosed property totaling $4.4 million located in the Bronx, New York and one foreclosed property totaling $767,000 located in Pittsburgh, Pennsylvania.

    Our ratio of non-performing assets to total assets remained low at 0.25% at December 31, 2024 as compared to 0.33% at December 31, 2023.

    The Company’s allowance for credit losses related to loans was $4.8 million, or 0.27% of total loans as of December 31, 2024, compared to $5.1 million, or 0.32% of total loans, as of December 31, 2023. Based on a review of the loans that were in the loan portfolio at December 31, 2024, management believes that the allowance for credit losses related to loans is maintained at a level that represents its best estimate of inherent losses in the loan portfolio that were both probable and reasonably estimable.

    In addition, at December 31, 2024, the Company’s allowance for credit losses related to off-balance sheet commitments totaled $704,000 and the allowance for credit losses related to held-to-maturity debt securities totaled $126,000.

    Capital

    The Company’s total stockholders’ equity to assets ratio was 15.87% as of December 31, 2024.   At December 31, 2024, the Company had the ability to borrow $834.7 million from the Federal Reserve Bank of New York, $18.2 million from the Federal Home Loan Bank of New York and $8.0 million from Atlantic Community Bankers Bank.

    The Bank’s capital position remains strong relative to current regulatory requirements and the Bank is considered a well-capitalized institution under the Prompt Corrective Action framework. As of December 31, 2024, the Bank had a tier 1 leverage capital ratio of 14.76% and a total risk-based capital ratio of 14.04%.

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

    The Company commenced its second stock repurchase program on May 30, 2023 whereby the Company will repurchase 1,509,218, or 10%, of the Company’s issued and outstanding common stock. As of December 31, 2024, the Company had repurchased 1,091,174 shares of common stock under its second repurchase program, at a cost of $17.2 million, including commission costs and Federal excise taxes.

    About NorthEast Community Bancorp

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

    Forward Looking Statement

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

       
    CONTACT: Kenneth A. Martinek
      Chairman and Chief Executive Officer
       
    PHONE: (914) 684-2500
       
     
    NORTHEAST COMMUNITY BANCORP, INC.
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (Unaudited)
           
        December 31,   December 31,
           2024       2023 
        (In thousands, except share
        and per share amounts)
    ASSETS            
    Cash and amounts due from depository institutions   $ 13,700     $ 13,394  
    Interest-bearing deposits     64,559       55,277  
    Total cash and cash equivalents     78,259       68,671  
    Certificates of deposit     100       100  
    Equity securities     21,994       18,102  
    Securities held-to-maturity ( net of allowance for credit losses of $126 and $136, respectively )     14,616       15,860  
    Loans receivable     1,813,647       1,586,721  
    Deferred loan (fees) costs, net     (49 )     176  
    Allowance for credit losses     (4,830 )     (5,093 )
    Net loans     1,808,768       1,581,804  
    Premises and equipment, net     24,805       25,452  
    Investments in restricted stock, at cost     397       929  
    Bank owned life insurance     25,738       25,082  
    Accrued interest receivable     13,481       12,311  
    Real estate owned     5,120       1,456  
    Property held for investment     1,370       1,407  
    Right of Use Assets – Operating     4,001       4,566  
    Right of Use Assets – Financing     347       351  
    Other assets     11,302       8,044  
    Total assets   $ 2,010,298     $ 1,764,135  
    LIABILITIES AND STOCKHOLDERS’ EQUITY              
    Liabilities:              
    Deposits:              
    Non-interest bearing   $ 287,135     $ 300,184  
    Interest bearing     1,383,240       1,099,852  
    Total deposits     1,670,375       1,400,036  
    Advance payments by borrowers for taxes and insurance     1,618       2,020  
    Borrowings     –       64,000  
    Lease Liability – Operating     4,108       4,625  
    Lease Liability – Financing     609       571  
    Accounts payable and accrued expenses     14,530       13,558  
    Total liabilities     1,691,240       1,484,810  
                   
    Stockholders’ equity:              
    Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding   $ —     $ —  
    Common stock, $0.01 par value; 75,000,000 shares authorized; 14,016,254 shares and 14,144,856 shares outstanding, respectively     140       142  
    Additional paid-in capital     110,091       109,924  
    Unearned Employee Stock Ownership Plan (“ESOP”) shares     (6,088 )     (6,563 )
    Retained earnings     214,691       175,505  
    Accumulated other comprehensive income     224       317  
    Total stockholders’ equity     319,058       279,325  
    Total liabilities and stockholders’ equity   $ 2,010,298     $ 1,764,135  
                 
    NORTHEAST COMMUNITY BANCORP, INC.
    CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)
     
                             
        Quarter Ended December 31,   Year Ended December 31,
         2024    2023   2024    2023
                    (In thousands, except per share amounts)
    INTEREST INCOME:                        
    Loans   $ 39,081     $ 35,660     $ 153,902     $ 127,486  
    Interest-earning deposits     1,144       1,257       5,202       4,143  
    Securities     247       209       909       859  
    Total Interest Income     40,472       37,126       160,013       132,488  
    INTEREST EXPENSE:                        
    Deposits     15,160       11,131       55,619       34,181  
    Borrowings     5       779       1,564       1,078  
    Financing lease     9       10       38       38  
    Total Interest Expense     15,174       11,920       57,221       35,297  
    Net Interest Income     25,298       25,206       102,792       97,191  
    Provision for (reversal of) credit loss     26       205       (260 )     972  
    Net Interest Income after Provision for (Reversal of) Credit Loss     25,272       25,001       103,052       96,219  
    NON-INTEREST INCOME:                        
    Other loan fees and service charges     485       474       2,098       1,891  
    Gain (loss) on disposition of equipment     22       (18 )     22       (18 )
    Earnings on bank owned life insurance     170       156       656       1,013  
    Investment advisory fees     –       115       –       458  
    Realized and unrealized (loss) gain on equity securities     (554 )     621       (109 )     294  
    Other     26       38       116       105  
    Total Non-Interest Income     149       1,386       2,783       3,743  
    NON-INTEREST EXPENSES:                        
    Salaries and employee benefits     5,204       4,760       20,942       18,839  
    Occupancy expense     712       705       2,828       2,595  
    Equipment     229       211       890       1,055  
    Outside data processing     680       572       2,604       2,210  
    Advertising     108       101       418       521  
    Loss on disposition of business     –       138       –       138  
    Real estate owned expense     204       41       731       93  
    Other     2,785       2,706       10,649       9,770  
    Total Non-Interest Expenses     9,922       9,234       39,062       35,221  
    INCOME BEFORE PROVISION FOR INCOME TAXES     15,499       17,153       66,773       64,741  
    PROVISION FOR INCOME TAXES     4,566       5,052       18,982       18,465  
    NET INCOME   $ 10,933     $ 12,101     $ 47,791     $ 46,276  
                             
    NORTHEAST COMMUNITY BANCORP, INC.
    SELECTED CONSOLIDATED FINANCIAL DATA
    (Unaudited)
                  
        Quarter Ended December 31,   Year Ended December 31,  
         2024     2023     2024    2023  
        (In thousands, except per share amounts)   (In thousands, except per share amounts)  
    Per share data:                              
    Earnings per share – basic   $ 0.83     $ 0.82     $ 3.64     $ 3.32    
    Earnings per share – diluted     0.80       0.82       3.58       3.32    
    Weighted average shares outstanding – basic     13,132       14,720       13,136       13,930    
    Weighted average shares outstanding – diluted     13,582       14,778       13,359       13,936    
    Performance ratios/data:                          
    Return on average total assets     2.19 %     2.77 %     2.50 %     2.90 %  
    Return on average shareholders’ equity     13.80 %     17.49 %     15.83 %     17.09 %  
    Net interest income   $ 25,298     $ 25,206     $ 102,792     $ 97,191    
    Net interest margin     5.29 %     6.06 %     5.62 %     6.41 %  
    Efficiency ratio     38.99 %     34.72 %     37.00 %     34.90 %  
    Net charge-off ratio     0.05 %     0.01 %     0.02 %     0.02 %  
                               
    Loan portfolio composition:                December 31, 2024
    		    December 31, 2023
    		  
    One-to-four family               $ 3,472     $ 5,252    
    Multi-family                 206,606       198,927    
    Mixed-use                 26,571       29,643    
    Total residential real estate                 236,649       233,822    
    Non-residential real estate                 29,446       21,130    
    Construction                 1,426,167       1,219,413    
    Commercial and industrial                 119,736       111,116    
    Consumer                 1,649       1,240    
    Gross loans                 1,813,647       1,586,721    
    Deferred loan (fees) costs, net                 (49 )     176    
    Total loans               $ 1,813,598     $ 1,586,897    
    Asset quality data:                          
    Loans past due over 90 days and still accruing               $ –     $ –    
    Non-accrual loans                 –       4,385    
    OREO property                 5,120       1,456    
    Total non-performing assets               $ 5,120     $ 5,841    
                               
    Allowance for credit losses to total loans                 0.27 %     0.32 %  
    Allowance for credit losses to non-performing loans                 0.00 %     116.15 %  
    Non-performing loans to total loans                 0.00 %     0.28 %  
    Non-performing assets to total assets                 0.25 %     0.33 %  
                               
    Bank’s Regulatory Capital ratios:                          
    Total capital to risk-weighted assets                 13.92 %     13.43 %  
    Common equity tier 1 capital to risk-weighted assets                 13.65 %     13.10 %  
    Tier 1 capital to risk-weighted assets                 13.65 %     13.10 %  
    Tier 1 leverage ratio                 14.44 %     14.43 %  
                                   
    NORTHEAST COMMUNITY BANCORP, INC.
    NET INTEREST MARGIN ANALYSIS
    (Unaudited)
                       
        Quarter Ended December 31, 2024   Quarter Ended December 31, 2023
        Average   Interest   Average   Average   Interest   Average
         Balance    and dividend    Yield    Balance    and dividend    Yield
        (In thousands, except yield/cost information)   (In thousands, except yield/cost information)
    Loan receivable gross   $ 1,784,920     $ 39,081     8.76 %   $ 1,545,446     $ 35,660     9.23 %
    Securities     36,817       232     2.52 %     33,124       188     2.27 %
    Federal Home Loan Bank stock     455       15     13.19 %     929       21     9.04 %
    Other interest-earning assets     90,279       1,144     5.07 %     83,436       1,257     6.03 %
    Total interest-earning assets     1,912,471       40,472     8.46 %     1,662,935       37,126     8.93 %
    Allowance for credit losses     (4,833 )                 (4,771 )            
    Non-interest-earning assets     92,422                   87,557              
    Total assets   $ 2,000,060                 $ 1,745,721              
                                         
    Interest-bearing demand deposit   $ 233,112     $ 2,198     3.77 %   $ 118,691     $ 1,026     3.46 %
    Savings and club accounts     137,295       767     2.23 %     206,120       1,404     2.72 %
    Certificates of deposit     1,026,433       12,195     4.75 %     758,928       8,701     4.59 %
    Total interest-bearing deposits     1,396,840       15,160     4.34 %     1,083,739       11,131     4.11 %
    Borrowed money     1,293       14     4.33 %     67,049       789     4.71 %
    Total interest-bearing liabilities     1,398,133       15,174     4.34 %     1,150,788       11,920     4.14 %
    Non-interest-bearing demand deposit     263,711                   298,739              
    Other non-interest-bearing liabilities     21,428                   19,449              
    Total liabilities     1,683,272                   1,468,976              
    Equity     316,788                   276,745              
    Total liabilities and equity   $ 2,000,060                 $ 1,745,721              
                                         
    Net interest income / interest spread         $ 25,298     4.12 %         $ 25,206     4.79 %
    Net interest rate margin                 5.29 %                 6.06 %
    Net interest earning assets   $ 514,338                 $ 512,147              
    Average interest-earning assets to interest-bearing liabilities     136.79 %                 144.50 %            
     
    NORTHEAST COMMUNITY BANCORP, INC.
    NET INTEREST MARGIN ANALYSIS
    (Unaudited)
                       
        Year Ended December 31, 2024   Year Ended December 31, 2023
        Average   Interest   Average   Average   Interest   Average
           Balance      and dividend      Yield   Balance      and dividend      Yield
        (In thousands, except yield/cost information)   (In thousands, except yield/cost information)
    Loan receivable gross   $ 1,701,079     $ 153,902     9.05 %   $ 1,401,492     $ 127,486     9.10 %
    Securities     34,765       839     2.41 %     37,819       777     2.05 %
    Federal Home Loan Bank stock     677       70     10.34 %     984       82     8.33 %
    Other interest-earning assets     92,610       5,202     5.62 %     76,542       4,143     5.41 %
    Total interest-earning assets     1,829,131       160,013     8.75 %     1,516,837       132,488     8.73 %
    Allowance for credit losses     (4,940 )                 (4,676 )            
    Non-interest-earning assets     90,675                   84,287              
    Total assets   $ 1,914,866                 $ 1,596,448              
                                         
    Interest-bearing demand deposit   $ 209,993     $ 8,498     4.05 %   $ 93,426     $ 2,459     2.63 %
    Savings and club accounts     154,430       3,799     2.46 %     248,755       6,777     2.72 %
    Certificates of deposit     917,665       43,322     4.72 %     615,124       24,945     4.06 %
    Total interest-bearing deposits     1,282,088       55,619     4.34 %     957,305       34,181     3.57 %
    Borrowed money     33,117       1,602     4.84 %     29,007       1,116     3.85 %
    Total interest-bearing liabilities     1,315,205       57,221     4.35 %     986,312       35,297     3.58 %
    Non-interest-bearing demand deposit     277,957                   322,185              
    Other non-interest-bearing liabilities     19,739                   17,139              
    Total liabilities     1,612,901                   1,325,636              
    Equity     301,965                   270,812              
    Total liabilities and equity   $ 1,914,866                 $ 1,596,448              
                                         
    Net interest income / interest spread         $ 102,792     4.40 %         $ 97,191     5.15 %
    Net interest rate margin                 5.62 %                 6.41 %
    Net interest earning assets   $ 513,926                 $ 530,525              
    Average interest-earning assets to interest-bearing liabilities     139.08 %                 153.79 %            

    The MIL Network –

  • MIL-OSI: Landmark Bancorp, Inc. Announces Conference Call to Discuss Fourth Quarter 2024 Earnings

    Source: GlobeNewswire (MIL-OSI)

    Manhattan, KS, Jan. 29, 2025 (GLOBE NEWSWIRE) — Landmark Bancorp, Inc. (Nasdaq: LARK) announced that it will release earnings for the fourth quarter of 2024 after the market closes on Tuesday, February 4, 2025. The Company will host a conference call to discuss these results on Wednesday, February 5, 2024 at 10:00 am (CT). Investors may listen to the Company’s earnings call via telephone by dialing (833) 470-1428 and using access code 296482. Investors are encouraged to call the dial-in number at least 5 minutes prior to the scheduled start of the call.

    A replay of the earnings call will be available through February 12, 2025, by dialing (866) 813-9403 and using access code 817329.

    About Landmark

    Landmark Bancorp, Inc., the holding company for Landmark National Bank, is listed on the NASDAQ Global Market under the symbol “LARK.” Headquartered in Manhattan, Kansas, Landmark National Bank is a community banking organization dedicated to providing quality financial and banking services. Landmark National Bank has 29 locations in 23 communities across Kansas: Manhattan (2), Auburn, Dodge City (2), Fort Scott (2), Garden City, Great Bend (2), Hoisington, Iola, Junction City, LaCrosse, Lawrence (2), Lenexa, Louisburg, Mound City, Osage City, Osawatomie, Overland Park, Paola, Pittsburg, Prairie Village, Topeka (2), Wamego and Wellsville, Kansas. Visit www.banklandmark.com for more information.

    Contact:
    Mark A. Herpich
    Chief Financial Officer
    (785) 565-2000

    The MIL Network –

  • MIL-OSI Asia-Pac: Government Approves Mutual Credit Guarantee Scheme to Strengthen MSME Manufacturing Sector, fulfilling the budget announcement of 2024-25

    Source: Government of India

    Government Approves Mutual Credit Guarantee Scheme to Strengthen MSME Manufacturing Sector, fulfilling the budget announcement of 2024-25

    Loans upto Rs. 100 crore for purchase of Plant and Machinery / Equipment are eligible for guarantee coverage giving a boost to manufacturing sector

    Scheme offers 60% guarantee coverage to Member Lending Institutions (MLIs*) for credit facility upto Rs.100 crore sanctioned to eligible MSMEs

    Posted On: 29 JAN 2025 8:35PM by PIB Delhi

    GoI has approved introduction of Mutual Credit Guarantee Scheme for MSMEs (MCGS- MSME) for providing 60% guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs*) for credit facility upto Rs.100 crore sanctioned to eligible MSMEs under MCGS-MSME for purchase of equipment / machinery.

    Salient Features of The Scheme

    • Borrower should be an MSME with valid Udyam Registration Number;
    • Loan amount guaranteed shall not exceed Rs.100 crore
    • Project Cost could be of higher amounts also
    • Minimum cost of equipment /machinery is 75% of project cost
    • Loan upto Rs.50 crore under the Scheme shall have repayment period of upto 8 years with upto 2 years moratorium period on principal instalments. For loans above Rs.50 crore, higher repayment schedule and moratorium period on principal instalments can be considered.
    • Upfront (initial) contribution of 5% of the loan amount shall be deposited at the time of application of guarantee cover
    • Annual Guarantee Fee on loan under the Scheme shall be Nil during the year of sanction. During the next 3 years, it shall be 1.5% p.a. of loan outstanding as on March 31 of previous year. Thereafter, Annual Guarantee Fee shall be 1% p.a. of loan outstanding as on March 31 of previous year

    The Scheme will be applicable to all loans sanctioned under MCGS-MSME during the period of 4 years from the date of issue of operational guidelines of the scheme or till cumulative guarantee of Rs. 7 lakh crore are issued, whichever is earlier.

    Major Impact

    Manufacturing sector currently comprises 17% of the nation’s GDP and over 27.3 million workers. Hon’ble Prime Minister’s has given a call for ‘Make in India, Make for the World’ and has signalled that India is ready and keen to increase the share of manufacturing to 25% of GDP. The Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) is expected to facilitate the availability of credit for purchase of Plant and Machinery / Equipment by MSMEs and give a major boost to manufacturing and thereby to Make in India.

    Background

    Global supply chains are realigning. India is emerging as an alternative supply source given its raw materials, low labour costs, growing manufacturing knowhow, and entrepreneurial ability. One of the major costs involved in manufacturing is the fixed cost of Plant and Machinery (P&M)/ Equipment’s. With availability of credit to expand the installed capacity of manufacturing units, it can be expected that the manufacturing will grow at a faster pace. Also, the need for a credit guarantee scheme for the manufacturing units, particularly for the enterprises in the medium category has been raised by industry associations from time to time. So, to give a boost to manufacturing by facilitating the availability of credit for purchase of Plant and Machinery / Equipment, ‘Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) is being introduced. The scheme will facilitate collateral free loans by banks and financial institutions to MSMEs who are in need of debt capital for their expansion and growth.

    *MLIs – All Scheduled Commercial Banks (SCBs), Non-Banking Financial Companies (NBFCs) and All India Financial institutions (AIFIs), who register with NCGTC under the Scheme.

    ******

    NB/AD

    (Release ID: 2097455) Visitor Counter : 101

    MIL OSI Asia Pacific News –

  • MIL-OSI Europe: Germany: INERATEC’s e-fuel demo plant in Frankfurt gets €70 million from EIB, EU-Commission and Breakthrough energy

    Source: European Investment Bank

    • The Capital injection will finance development of Europe’s first large-scale e-Fuel plant in Frankfurt and further research and development of INERATEC`s e-Fuels.
    • INERATEC`s e-fuels will support compliance with EU regulation requirements to add synthetic aviation fuel to kerosene to decarbonize aviation
    • Financing includes a €30million grant by Breakthrough Energy Catalyst, their first in Germany, underpinning the maturity of INERATEC’S technology 

    The European Investment Bank (EIB) and Breakthrough Energy Catalyst are providing a €70 million funding package through the EU-Catalyst Partnership to INERATEC, a Germany based e-fuel company. The EIB is providing a €40 million venture-debt-loan, backed by the EU`s InvestEU-program, while Breakthrough Energy Catalyst is awarding a grant of €30 million. The package will support the financing of INERATEC’s carbon neutral e-fuel production plant in Frankfurt, as well as further research and development. The Frankfurt plant is set to be Europe`s largest when opening in 2025.

    Long term market growth expected for e-SAF and e-Fuels

    E-fuel production uses CO2 and hydrogen to produce synthetic fuels and chemicals that are carbon neutral or close to carbon neutral when used. They have significant potential in hard-to-decarbonize sectors such as aviation, where commercial demand is underpinned by clear regulation. Therefore, long-term market growth can be expected.

    The EU’s ReFuelEU Aviation regulation requires that aviation fuel suppliers provide jet-fuel with 1.2 per cent minimum synthetic fuel content by 2030, rising to 35 per cent in 2050. Based in Karlsruhe, Germany, INERATEC is well placed for this growing market, offering an efficient, scalable modular design.

    INERATEC’S Frankfurt plant will produce up to 2,500 tons of e-fuels and e-chemicals, including e-sustainable aviation fuel (e-SAF). The plant will also incorporate an upgrading facility, enabling the e-crude oil to be refined into certifiable, ready-to-use sustainable aviation fuel on site. The fuel will support compliance with the EU’s synthetic aviation fuel mandate.

    INERATEC’s Frankfurt plant to show e-Fuel production is possible at scale

    EIB-Vice-President Nicola Beer said: “E-fuels are a crucial part of achieving a competitive net-zero economy, particularly in the mobility and transport sector. Game-changing technologies like Ineratec’s play a vital role in this transition. Together with the European Commission and Breakthrough Energy, through the EIB’s venture debt product, we are supporting an innovative startup in scaling up production and advancing research to make e-fuels a viable, sustainable alternative to fossil fuels.”

    INERATEC CEO Tim Boeltken said: “INERATEC’S Frankfurt production plant will show that e-fuel production is no longer a technological concept but a scalable reality. Reliable production of certifiable e-SAF is possible in the near-term – at commercial scale, that will be a breakthrough for sustainable aviation. This investment from EIB and Breakthrough Energy Catalyst is a sign of confidence in the INERATEC technology and approach.”

    Mario Fernandez, Head of Breakthrough Energy Catalyst, adds: “We are delighted to be working with INERATEC. This ground-breaking project will bring us a decisive step closer to the decarbonisation of aviation.”

    The financing reinforces EIB position as the ‘The Climate Bank’, a priority in the EIB Group’s 2024-2027 Strategic Roadmap, and supports the objectives of the European Commission’s RefuelEU aviation regulations.

    Background information

    EIB

    The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

    The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

    EIB venture debt is a quasi-equity investment product suitable for early and growth stage ventures, combining a long-term loan with an instrument linking the return to the performance of the company. Since 2015, the EIB has invested €6 billion in Venture Debt, backing over 200 companies and realising over 50 exits. With the backing of InvestEU, the EIB aims to support European ventures and scale-ups in the cleantech, deep-tech and life sciences sectors.

    INERATEC is committed to defossilizing and decarbonizing the world. The company produces e-Fuels and e-chemicals: carbon-neutral fossil fuel substitutes for use in the aviation, shipping and chemical industries. Its modular, scalable plants use renewable hydrogen and biogenic CO2 to produce synthetic kerosene, gasoline, diesel, waxes, methanol or natural gas. It is building what will be the world’s largest e-fuels plant to date, in Frankfurt, which will produce up to 2,500 tonnes of ultra-low-carbon aviation fuel per year. The company is based in Karlsruhe, Germany and backed by diverse international investors. www.ineratec.com

    Breakthrough Energy is committed to accelerating the world’s journey to a clean energy future. The organization funds breakthrough technologies, advocates for climate-smart policies, and mobilizes partners around the world to take effective action, accelerating progress at every stage.

    Breakthrough Energy Catalyst is a novel platform that funds and invests in first-of-a-kind commercial projects for emerging climate technologies. By investing in these opportunities, Catalyst seeks to accelerate the adoption of these technologies worldwide and reduce their costs.

    Catalyst currently focuses on five technology areas: clean hydrogen, sustainable aviation fuel, direct air capture, long-duration energy storage, and manufacturing decarbonization. In addition to capital, Catalyst leverages the team’s energy-infrastructure-investing and project-development expertise to work with innovators on advancing their projects from the development stage to funding and ultimately, to construction. Learn more about Breakthrough Energy and Catalyst at breakthroughenergy.org.

    MIL OSI Europe News –

  • MIL-OSI Europe: Written question – Alleged breach of cooling-off period rules for former Commissioners – E-000229/2025

    Source: European Parliament

    Question for written answer  E-000229/2025
    to the Commission
    Rule 144
    Marieke Ehlers (PfE), Auke Zijlstra (PfE), Ton Diepeveen (PfE)

    The Commission has authorised former Commissioner Thierry Breton to join the US company Bank of America. This decision would appear to be at odds with the rules in force, which set a 2-year cooling-off period for former Commissioners, and with Article 245 of the Treaty on the Functioning of the European Union (TFEU).

    The cooling-off period applies to relations that are susceptible to lobbying or a potential conflict of interests.

    Mr Breton appears to demonstrate that his role on the bank’s Global Advisory Council (GAC) will be purely advisory and unremunerated, but does not appear to rule out a conflict of interests.

    • 1.Is an unremunerated job a valid reason for exempting a former Commissioner from the cooling-off period?
    • 2.Does the Commission consider that a ‘purely advisory role’ by definition rules out lobbying?
    • 3.How will the Commission verify whether Mr Breton is engaging in lobbying or not in the exercise of his duties on the GAC, and how will it monitor any conflicts of interest that may arise in the exercise of his duties on the GAC?

    Submitted: 20.1.2025

    Last updated: 29 January 2025

    MIL OSI Europe News –

  • MIL-OSI: Penns Woods Bancorp, Inc. Reports Fourth Quarter 2024 Earnings

    Source: GlobeNewswire (MIL-OSI)

    WILLIAMSPORT, Pa., Jan. 29, 2025 (GLOBE NEWSWIRE) — Penns Woods Bancorp, Inc. (NASDAQ: PWOD)

    Penns Woods Bancorp, Inc. achieved net income of $17.7 million for the twelve months ended December 31, 2024, resulting in basic and diluted earnings per share of $2.35.

    Highlights

    • Net income, as reported under generally accepted accounting principles (GAAP), for the three and twelve months ended December 31, 2024 was $3.7 million and $17.7 million, respectively, compared to $5.6 million and $16.6 million for the same periods of 2023. Results for the three and twelve months ended December 31, 2024 compared to 2023 were impacted by an increase in net interest income of $1.6 million and $3.9 million, respectively, as the cost of funds stabilized. The three and twelve month periods ended December 31, 2024 have been impacted by after-tax merger related expenses of $581,000 resulting from the announced acquisition of the company by Northwest Bancshares, Inc. The disposal of assets related to two former branch properties resulted in a one time after-tax loss of $261,000 for the twelve month period ended December 31, 2024.
    • The allowance for credit losses was impacted for the three and twelve months ended December 31, 2024 by a provision for credit losses of $420,000 and $121,000, respectively, compared to a negative provision for credit losses of $1.7 million and $1.5 million for the 2023 periods. The recognition of a negative provision for credit losses for the 2023 periods was due primarily to a recovery on a commercial loan which positively affected the historical loss rates, and the payoff of a nonperforming commercial loan.
    • Basic and diluted earnings per share for the three months ended December 31, 2024 were $0.50 and $0.49, respectively, while the twelve months ended December 31, 2024 basic and diluted was $2.35. This compares to basic and diluted earnings per share of $0.77 and $2.34, respectively, for the three and twelve month periods ended December 31, 2023.
    • Annualized return on average assets was 0.67% for the three months ended December 31, 2024, compared to 1.02% for the corresponding period of 2023. Return on average assets was 0.80% for the twelve months ended December 31, 2024, compared to 0.79% for the corresponding period of 2023.
    • Annualized return on average equity was 7.28% for the three months ended December 31, 2024, compared to 12.60% for the corresponding period of 2023. Return on average equity was 9.14% for the twelve months ended December 31, 2024, compared to 9.84% for the corresponding period of 2023.

    Net Income

    Net income from core operations (“core earnings”), which is a non-GAAP measure of net income excluding net securities gains or losses, was $4.4 million and $18.4 million, respectively, for the three and twelve months ended December 31, 2024 compared to $5.6 million and $16.7 million for the same periods of 2023. Core earnings per share (non-GAAP) for the three months ended December 31, 2024 were basic $0.58 and diluted $0.57 while basic and diluted for the twelve months ended December 31, 2024 were $2.44. Basic and diluted core earnings per share for the three and twelve month periods of 2023 were $0.77 and $2.36, respectively. Annualized core return on average assets and core return on average equity (non-GAAP) were 0.78% and 8.48%, respectively, for the three months ended December 31, 2024, compared to 1.02% and 12.63% for the corresponding period of 2023. Annualized core return on average assets and core return on average equity (non-GAAP) were 0.83% and 9.46%, respectively, for the twelve months ended December 31, 2024, compared to 0.79% and 9.93% for the corresponding period of 2023. A reconciliation of the non-GAAP financial measures of core earnings, core return on assets, core return on equity, core earnings per share and tangible book value per share to the comparable GAAP financial measures is included at the end of this press release.

    Net Interest Margin

    The net interest margin for the three and twelve months ended December 31, 2024 was 2.98% and 2.83% respectively, compared to 2.73% and 2.80% for the corresponding periods of 2023. The increase in the net interest margin for the three month period was driven by an increase in the rate collected on interest-earning assets of 34 basis points (“bps”), while the decrease in the net interest margin for the twelve month period was driven by a 74 bps increase in the rate paid on interest-bearing liabilities. The overall increase in interest rates over the periods resulted in increases to both the yield on the earnings asset portfolio and the rate paid on interest-bearing liabilities. Driving the increase in the yield and interest income on the earning assets portfolio was the repricing of legacy assets coupled with portfolio growth. The average loan portfolio balance increased $47.4 million and $106.9 million, respectively, for the three and twelve month periods ended December 31, 2024 compared to the same periods of 2023 as the average yield on the portfolio increased 31 bps and 61 bps, resulting in an increase in taxable equivalent interest income of $2.0 million and $16.5 million, for the periods. The three and twelve month periods ended December 31, 2024 were impacted by an increase of 57 bps and 66 bps in the yield earned on the securities portfolio as legacy securities matured with the funds reinvested at higher rates, which resulted in an increase in taxable equivalent interest income of $285,000 and $1.5 million, respectively. Short-term borrowings decreased leading to a decrease of $1.8 million and $3.9 million, respectively, in expense for the three and twelve month periods ended December 31, 2024 compared to the same periods of 2023. The rate paid on interest-bearing deposits increased 37 bps and 96 bps, respectively, or $2.1 million and $13.8 million in expense, for the three and twelve month periods ended December 31, 2024 compared to the corresponding periods of 2023 due to the rate environment, an increase in competition for deposits, and a migration of deposit balances from core deposits to higher rate time deposits. The rates paid on time deposits significantly contributed to the increase in funding costs as rates paid for the three and twelve month periods ended December 31, 2024 compared to the same periods of 2023 increased 29 bps and 87 bps, respectively, or $1.7 million and $9.9 million in expense, as deposit gathering campaigns continued to focus on time deposits with a maturity of five to twenty-four months. In addition, brokered deposits have been utilized to assist with funding the loan portfolio growth and contributed to the increase in time deposit funding costs, while lowering the reliance on higher cost short-term borrowings.

    Assets

    Total assets increased to $2.2 billion at December 31, 2024, an increase of $27.5 million compared to December 31, 2023.  Net loans increased $36.9 million to $1.9 billion at December 31, 2024 compared to December 31, 2023, as continued emphasis was placed on commercial loan growth and indirect auto lending. The investment portfolio decreased $10.7 million from December 31, 2023 to December 31, 2024.

    Non-performing Loans

    The ratio of non-performing loans to total loans ratio increased to 0.47% at December 31, 2024 from 0.17% at December 31, 2023, as non-performing loans increased to $8.9 million at December 31, 2024 from $3.1 million at December 31, 2023. The majority of non-performing loans involve loans that are either in a secured position and have sureties with a strong underlying financial position or have been classified as individually evaluated loans that have a specific allocation recorded within the allowance for credit losses. Net loan charge offs of $228,000 and $540,000 for the three and twelve months ended December 31, 2024, respectively, impacted the allowance for credit losses, which was 0.63% of total loans at December 31, 2024 compared to 0.62% at December 31, 2023. Exposure to non-owner occupied office space is minimal at $14.1 million at December 31, 2024 with none of these loans being delinquent.

    Deposits

    Deposits increased $116.6 million to $1.7 billion at December 31, 2024 compared to December 31, 2023. Noninterest-bearing deposits decreased $14.2 million to $456.9 million at December 31, 2024 compared to December 31, 2023.  Core deposits declined $17.8 million as deposits migrated from core deposit accounts into time deposits as market rates and competition for deposits increased. Core deposit gathering efforts remained focused on increasing the utilization of electronic (internet and mobile) deposit banking by our customers. Core deposits have remained stable at $1.2 billion over the past five quarters. Interest-bearing deposits increased $130.8 million from December 31, 2023 to December 31, 2024 due to growth in the time deposit portfolio of $80.8 million as customers sought a higher rate of interest. Brokered deposit balances increased $53.6 million to $178.3 million at December 31, 2024 as this funding source was utilized to supplement funding loan portfolio growth, while reducing the need to draw upon available borrowing lines. A campaign to attract time deposits with a maturity of five to twenty-four months commenced during the latter part of 2022 and has continued throughout 2023 and 2024 with current efforts centered on five months.

    Shareholders’ Equity

    Shareholders’ equity increased $13.7 million to $205.2 million at December 31, 2024 compared to December 31, 2023.  During the three and twelve months ended December 31, 2024 there were no shares issued under the previously disclosed registered at-the-market offering. A total 31,066 shares for net proceeds of $632,000 were issued as part of the Dividend Reinvestment Plan during the twelve months ended December 31, 2024. Accumulated other comprehensive loss of $5.3 million at December 31, 2024 decreased from a loss of $9.2 million at December 31, 2023 as a result of a decrease in net unrealized loss on available for sale securities to $4.6 million at December 31, 2024 from a net unrealized loss of $6.4 million at December 31, 2023, coupled with a decrease in loss of $2.0 million in the defined benefit plan obligation. The current level of shareholders’ equity equates to a book value per share of $27.16 at December 31, 2024 compared to $25.51 at December 31, 2023, and an equity to asset ratio of 9.19% at December 31, 2024 and 8.69% at December 31, 2023. Tangible book value per share (a non-GAAP measure) increased to $24.97 at December 31, 2024 compared to $23.29 at December 31, 2023. Dividends declared for the three and twelve months ended December 31, 2024 and 2023 were $0.32 and $1.28 per share.

    Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates sixteen branch offices providing financial services in Lycoming, Clinton, Centre, Montour, Union, and Blair Counties, and Luzerne Bank, which operates eight branch offices providing financial services in Luzerne County, and United Insurance Solutions, LLC, which offers insurance products.  Investment and insurance products are offered through Jersey Shore State Bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.

    NOTE:  This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).  Management uses the non-GAAP measure of net income from core operations in its analysis of the company’s performance. This measure, as used by the Company, adjusts net income determined in accordance with GAAP to exclude the effects of special items, including significant gains or losses that are unusual in nature such as net securities gains and losses. Because these certain items and their impact on the Company’s performance are difficult to predict, management believes presentation of financial measures excluding the impact of such items provides useful supplemental information in evaluating the operating results of the Company’s core businesses. These disclosures should not be viewed as a substitute for net income determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

    This press release may contain certain “forward-looking statements” including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are statements other than statements of historical fact.  The Company cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company herein: (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company’s organization, compensation and benefit plans; (iii) the effect on the Company’s competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; (v) the effects of health emergencies, including the spread of infectious diseases or pandemics; (vi) the effect of changes in the business cycle and downturns in the local, regional or national economies; or (vii) any potential adverse events or developments resulting from the merger agreement, dated December 16, 2024, between Penns Woods Bancorp, Inc. and Northwest Bancshares, Inc., including, without limitation, any event, change, or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement or the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or to successfully integrate the business and operations of Jersey Shore State Bank and Luzerne Bank with those of Northwest Savings Bank after closing.  For a list of other factors which could affect the Company’s results, see the Company’s filings with the Securities and Exchange Commission, including “Item 1A.  Risk Factors,” set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

    You should not place undue reliance on any forward-looking statements.  These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise.  The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

    Previous press releases and additional information can be obtained from the Company’s website at www.pwod.com.

    Contact: Richard A. Grafmyre, Chief Executive Officer
      110 Reynolds Street
      Williamsport, PA 17702
      570-322-1111 e-mail: pwod@pwod.com
     
    PENNS WOODS BANCORP, INC.
    CONSOLIDATED BALANCE SHEET
    (UNAUDITED)
     
        December 31,
    (In Thousands, Except Share and Per Share Data)     2024       2023     % Change
    ASSETS:                
    Noninterest-bearing cash           $         19,989     $         28,969             (31.00 ) %
    Interest-bearing balances in other financial institutions                     8,983               8,493             5.77   %
    Total cash and cash equivalents                     28,972               37,462             (22.66 ) %
                     
    Investment debt securities, available for sale, at fair value                     184,542               190,945             (3.35 ) %
    Investment equity securities, at fair value                     1,111               1,122             (0.98 ) %
    Restricted investment in bank stock                     20,032               24,323             (17.64 ) %
    Loans held for sale                     3,266               3,993             (18.21 ) %
    Loans                     1,877,078               1,839,764             2.03   %
    Allowance for credit losses                     (11,848 )             (11,446 )           3.51   %
    Loans, net                     1,865,230               1,828,318             2.02   %
    Premises and equipment, net                     27,789               30,250             (8.14 ) %
    Accrued interest receivable                     11,114               11,044             0.63   %
    Bank-owned life insurance                     45,681               33,867             34.88   %
    Investment in limited partnerships                     6,691               7,815             (14.38 ) %
    Goodwill                     16,450               16,450             —   %
    Intangibles                     107               210             (49.05 ) %
    Operating lease right of use asset             2,811               2,512             11.90   %
    Deferred tax asset                     3,493               4,655             (24.96 ) %
    Other assets                     15,049               11,843             27.07   %
    TOTAL ASSETS           $         2,232,338     $         2,204,809             1.25   %
                     
    LIABILITIES:                
    Interest-bearing deposits           $         1,249,145     $         1,118,320             11.70   %
    Noninterest-bearing deposits                     456,936               471,173             (3.02 ) %
    Total deposits                     1,706,081               1,589,493             7.33   %
                    %
    Short-term borrowings                     42,200               145,926             (71.08 ) %
    Long-term borrowings                     254,588               252,598             0.79   %
    Accrued interest payable                     4,664               3,814             22.29   %
    Operating lease liability                     2,889               2,570             12.41   %
    Other liabilities                     16,685               18,852             (11.49 ) %
    TOTAL LIABILITIES                     2,027,107               2,013,253             0.69   %
                     
    SHAREHOLDERS’ EQUITY:                
    Preferred stock, no par value, 3,000,000 shares authorized; no shares issued                     —               —     n/a
    Common stock, par value $5.55, 22,500,000 shares authorized; 8,066,968 and 8,019,219 shares issued; 7,556,743 and 7,508,994 shares outstanding                     44,815               44,550             0.59   %
    Additional paid-in capital                     63,193               61,733             2.37   %
    Retained earnings                     115,331               107,238             7.55   %
    Accumulated other comprehensive loss:                
    Net unrealized loss on available for sale securities                     (4,567 )             (6,396 )           28.60   %
    Defined benefit plan                     (726 )             (2,754 )           73.64   %
    Treasury stock at cost, 510,225 shares                     (12,815 )             (12,815 )           —   %
    TOTAL SHAREHOLDERS’ EQUITY                     205,231               191,556             7.14   %
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY           $         2,232,338     $         2,204,809             1.25   %
     
    PENNS WOODS BANCORP, INC.
    CONSOLIDATED STATEMENT OF INCOME
    (UNAUDITED)
     
        Three Months Ended December 31,   Twelve Months Ended December 31,
    (In Thousands, Except Share and Per Share Data)     2024       2023     % Change
    		     2024       2023     % Change
    INTEREST AND DIVIDEND INCOME:                                
    Loans including fees           $         25,759     $         23,720             8.60   %   $         99,780     $         83,291             19.80   %
    Investment securities:                                
    Taxable                     1,826               1,476             23.71   %             7,039               5,346             31.67   %
    Tax-exempt                     59               107             (44.86 ) %             292               517             (43.52 ) %
    Dividend and other interest income                     607               614             (1.14 ) %             2,587               2,441             5.98   %
    TOTAL INTEREST AND DIVIDEND INCOME                     28,251               25,917             9.01   %             109,698               91,595             19.76   %
                                     
    INTEREST EXPENSE:                                
    Deposits                     9,523               7,445             27.91   %             35,962               22,131             62.50   %
    Short-term borrowings                     479               2,317             (79.33 ) %             4,503               8,401             (46.40 ) %
    Long-term borrowings                     2,686               2,207             21.70   %             10,353               6,099             69.75   %
    TOTAL INTEREST EXPENSE                     12,688               11,969             6.01   %             50,818               36,631             38.73   %
                                     
    NET INTEREST INCOME                     15,563               13,948             11.58   %             58,880               54,964             7.12   %
                                     
    PROVISION (RECOVERY) FOR CREDIT LOSSES                      420               (1,742 )           124.11   %             121               (1,479 )           108.18   %
                                     
    NET INTEREST INCOME AFTER PROVISION (RECOVERY) OF CREDIT LOSSES                     15,143               15,690             (3.49 ) %             58,759               56,443             4.10   %
                                     
    NON-INTEREST INCOME:                                
    Service charges                     516               533             (3.19 ) %             2,067               2,090             (1.10 ) %
    Net debt securities losses, available for sale                     (9 )             (68 )           86.76   %             (49 )             (193 )           74.61   %
    Net equity securities (losses) gains                     (35 )             50             (170.00 ) %             (11 )             15             (173.33 ) %
    Bank-owned life insurance                     303               171             77.19   %             1,159               1,063             9.03   %
    Gain on sale of loans                     463               314             47.45   % .           1,484               1,046             41.87   %
    Insurance commissions                     128               113             13.27   %             553               529             4.54   %
    Brokerage commissions                     163               127             28.35   %             684               575             18.96   %
    Loan broker income                     543               264             105.68   %             1,384               992             39.52   %
    Debit card income                     385               333             15.62   %             1,437               1,328             8.21   %
    Other                     253               384             (34.11 ) %             910               930             (2.15 ) %
    TOTAL NON-INTEREST INCOME                     2,710               2,221             22.02   %             9,618               8,375             14.84   %
                                     
    NON-INTEREST EXPENSE:                                
    Salaries and employee benefits                     7,032               6,284             11.90   %             26,256               25,062             4.76   %
    Occupancy                     758               746             1.61   %             3,152               3,168             (0.51 ) %
    Furniture and equipment                     1,233               889             38.70   %             3,669               3,392             8.17   %
    Software amortization                     339               250             35.60   %             996               843             18.15   %
    Pennsylvania shares tax                     351               275             27.64   %             1,373               1,082             26.89   %
    Professional fees                     523               640             (18.28 ) %             2,177               2,953             (26.28 ) %
    Federal Deposit Insurance Corporation deposit insurance                     385               456             (15.57 ) %             1,564               1,578             (0.89 ) %
    Marketing                     74               90             (17.78 ) %             283               684             (58.63 ) %
    Intangible amortization                     25               25             —   %             102               117             (12.82 ) %
    Merger expense                     735               —     n/a             735               —     n/a
    Other                     1,525               1,342             13.64   %             6,177               5,617             9.97   %
    TOTAL NON-INTEREST EXPENSE                     12,980               10,997             18.03   %             46,484               44,496             4.47   %
    INCOME BEFORE INCOME TAX PROVISION                     4,873               6,914             (29.52 ) %             21,893               20,322             7.73   %
    INCOME TAX PROVISION                     1,132               1,359             (16.70 ) %             4,154               3,714             11.85   %
    NET INCOME AVAILABLE TO COMMON SHAREHOLDERS’   $         3,741     $         5,555             (32.66 ) %   $         17,739     $         16,608             6.81   %
    EARNINGS PER SHARE – BASIC            $         0.50     $         0.77             (35.06 ) %   $         2.35     $         2.34             0.43   %
    EARNINGS PER SHARE – DILUTED           $         0.49     $         0.77             (36.36 ) %   $         2.35     $         2.34             0.43   %
    WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC                     7,555,168               7,255,222             4.13   %             7,535,397               7,112,450             5.95   %
    WEIGHTED AVERAGE SHARES OUTSTANDING – DILUTED                     7,693,185               7,255,222             6.04   %             7,543,111               7,112,450             6.06   %
     
    PENNS WOODS BANCORP, INC.
    AVERAGE BALANCES AND INTEREST RATES 
    (UNAUDITED)
     
        Three Months Ended
        December 31, 2024   December 31, 2023
    (Dollars in Thousands)   Average 
    Balance (1)    		   Interest   Average 
    Rate    		   Average 
    Balance (1)    		   Interest   Average 
    Rate
    ASSETS:                        
    Tax-exempt loans (3)           $         69,967     $         453             2.58   %   $         68,234     $         478             2.78   %
    All other loans                     1,806,212               25,401             5.59   %             1,760,509               23,342             5.26   %
    Total loans (2)                     1,876,179               25,854             5.48   %             1,828,743               23,820             5.17   %
                             
    Taxable securities                     199,868               2,277             4.63   %             193,744               1,932             4.04   %
    Tax-exempt securities (3)                     11,317               75             2.70   %             18,041               135             3.03   %
    Total securities                     211,185               2,352             4.53   %             211,785               2,067             3.96   %
                             
    Interest-bearing balances in other financial institutions                     13,136               156             4.72   %             11,795               158             5.31   %
                             
    Total interest-earning assets                     2,100,500               28,362             5.38   %             2,052,323               26,045             5.04   %
                             
    Other assets                     137,840                       130,421          
                             
    TOTAL ASSETS           $         2,238,340             $         2,182,744          
                             
    LIABILITIES AND SHAREHOLDERS’ EQUITY:                        
    Savings           $         209,300               266             0.51   %   $         222,740               229             0.41   %
    Super Now deposits                     220,792               1,070             1.93   %             227,113               1,129             1.97   %
    Money market deposits                     323,181               2,656             3.27   %             293,542               2,217             3.00   %
    Time deposits                     504,683               5,531             4.36   %             377,516               3,870             4.07   %
    Total interest-bearing deposits                     1,257,956               9,523             3.01   %             1,120,911               7,445             2.64   %
                             
    Short-term borrowings                     38,495               479             4.96   %             163,088               2,317             5.63   %
    Long-term borrowings                     256,521               2,686             4.17   %             235,998               2,207             3.71   %
    Total borrowings                     295,016               3,165             4.27   %             399,086               4,524             4.50   %
                             
    Total interest-bearing liabilities                     1,552,972               12,688             3.25   %             1,519,997               11,969             3.12   %
                             
    Demand deposits                     454,612                       457,546          
    Other liabilities                     25,218                       28,786          
    Shareholders’ equity                     205,538                       176,415          
                             
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY           $         2,238,340             $         2,182,744          
    Interest rate spread (3)                           2.13   %                   1.92   %
    Net interest income/margin (3)               $         15,674             2.98   %       $         14,076             2.73   %
    1. Information on this table has been calculated using average daily balance sheets to obtain average balances.
    2. Non-accrual loans have been included with loans for the purpose of analyzing net interest earnings.
    3. Income and rates on fully taxable equivalent basis include an adjustment for the difference between annual income from tax-exempt obligations and the taxable equivalent of such income at the standard tax rate of 21%.
       
        Three Months Ended December 31,
          2024       2023  
    Total interest income           $         28,251     $         25,917  
    Total interest expense                     12,688               11,969  
    Net interest income (GAAP)                     15,563               13,948  
    Tax equivalent adjustment                     111               128  
    Net interest income (fully taxable equivalent) (non-GAAP)           $         15,674     $         14,076  
     
    PENNS WOODS BANCORP, INC.
    AVERAGE BALANCES AND INTEREST RATES 
    (UNAUDITED)
     
        Twelve Months Ended
        December 31, 2024   December 31, 2023
    (Dollars in Thousands)   Average 
    Balance (1)    		   Interest   Average 
    Rate    		   Average 
    Balance (1)    		   Interest   Average 
    Rate
    ASSETS:                        
    Tax-exempt loans (3)           $         69,448     $         1,943             2.80   %   $         66,863     $         1,849             2.77   %
    All other loans                     1,796,096               98,245             5.47   %             1,691,742               81,830             4.84   %
    Total loans (2)                     1,865,544               100,188             5.37   %             1,758,605               83,679             4.76   %
                             
    Taxable securities                     202,934               9,072             4.47   %             189,804               7,263             3.83   %
    Tax-exempt securities (3)                     13,045               370             2.84   %             23,872               654             2.74   %
    Total securities                     215,979               9,442             4.37   %             213,676               7,917             3.71   %
                             
    Interest-bearing balances in other financial institutions                     11,074               554             5.00   %             10,916               524             4.80   %
                             
    Total interest-earning assets                     2,092,597               110,184             5.27   %             1,983,197               92,120             4.65   %
                             
    Other assets                     132,720                       131,704          
                             
    TOTAL ASSETS           $         2,225,317             $         2,114,901          
                             
    LIABILITIES AND SHAREHOLDERS’ EQUITY:                        
    Savings           $         215,107               1,077             0.50   %   $         231,000               685             0.30   %
    Super Now deposits                     218,932               4,373             2.00   %             276,868               4,155             1.50   %
    Money market deposits                     311,836               10,390             3.33   %             292,755               7,024             2.40   %
    Time deposits                     460,869               20,122             4.37   %             293,252               10,267             3.50   %
    Total interest-bearing deposits                     1,206,744               35,962             2.98   %             1,093,875               22,131             2.02   %
                             
    Short-term borrowings                     82,046               4,503             5.49   %             157,140               8,401             5.36   %
    Long-term borrowings                     256,850               10,353             4.03   %             186,094               6,099             3.28   %
    Total borrowings                     338,896               14,856             4.40   %             343,234               14,500             4.23   %
                             
    Total interest-bearing liabilities                     1,545,640               50,818             3.29   %             1,437,109               36,631             2.55   %
                             
    Demand deposits                     454,878                       477,828          
    Other liabilities                     30,680                       31,243          
    Shareholders’ equity                     194,119                       168,721          
                             
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY           $         2,225,317             $         2,114,901          
    Interest rate spread (3)                           1.98   %                   2.10   %
    Net interest income/margin (3)               $         59,366             2.83   %       $         55,489             2.80   %
    1. Information on this table has been calculated using average daily balance sheets to obtain average balances.
    2. Non-accrual loans have been included with loans for the purpose of analyzing net interest earnings.
    3. Income and rates on fully taxable equivalent basis include an adjustment for the difference between annual income from tax-exempt obligations and the taxable equivalent of such income at the standard tax rate of 21%.
       
        Twelve months ended December 31,
          2024       2023  
    Total interest income           $         109,698     $         91,595  
    Total interest expense                     50,818               36,631  
    Net interest income (GAAP)                     58,880               54,964  
    Tax equivalent adjustment                     486               525  
    Net interest income (fully taxable equivalent) (non-GAAP)           $         59,366     $         55,489  
    (Dollars in Thousands, Except Per Share Data, Unaudited)   Quarter Ended
        12/31/2024   9/30/2024   6/30/2024   3/31/2024   12/31/2023
    Operating Data                    
    Net income           $         3,741       $         4,801       $         5,390       $         3,808       $         5,555    
    Net interest income                     15,563                 15,056                 14,515                 13,746                 13,948    
    Provision (recovery) for credit losses                     420                 740                 (1,177 )               138                 (1,742 )  
    Net security (losses) gains                     (44 )               36                 (19 )               (33 )               (18 )  
    Non-interest income, excluding net security (losses) gains                     2,754                 2,385                 2,044                 2,495                 2,239    
    Non-interest expense                     12,980                 10,884                 10,996                 11,623                 10,997    
                         
    Performance Statistics                    
    Net interest margin                     2.98   %             2.88   %             2.83   %             2.69   %             2.73   %
    Annualized cost of total deposits                     2.22   %             2.27   %             2.14   %             2.01   %             1.89   %
    Annualized non-interest income to average assets                     0.48   %             0.43   %             0.37   %             0.45   %             0.41   %
    Annualized non-interest expense to average assets                     2.32   %             1.95   %             1.98   %             2.10   %             2.02   %
    Annualized return on average assets                     0.67   %             0.86   %             0.97   %             0.69   %             1.02   %
    Annualized return on average equity                     7.28   %             9.60   %             11.12   %             8.03   %             12.60   %
    Annualized net loan charge-offs (recoveries) to average loans     0.05   %     0.07   %     (0.09 ) %     0.08   %     (0.05 ) %
    Net charge-offs (recoveries)                      228                 328                 (396 )               380                 (209 )  
    Efficiency ratio                     70.73   %             62.26   %             66.25   %             71.41   %             67.78   %
                         
    Per Share Data                    
    Basic earnings per share           $         0.50       $         0.64       $         0.72       $         0.51       $         0.77    
    Diluted earnings per share                     0.49                 0.64                 0.72                 0.51                 0.77    
    Dividend declared per share                     0.32                 0.32                 0.32                 0.32                 0.32    
    Book value                     27.16                 26.96                 26.13                 25.72                 25.51    
    Tangible book value (Non-GAAP)                     24.97                 24.77                 23.93                 23.50                 23.29    
    Common stock price:                    
    High                     34.06                 23.98                 21.08                 22.64                 23.64    
    Low                     23.74                 19.29                 17.17                 18.44                 20.05    
    Close                     30.39                 23.79                 20.55                 19.41                 22.51    
    Weighted average common shares:                    
    Basic                     7,555                 7,544                 7,529                 7,513                 7,255    
    Fully Diluted                     7,693                 7,544                 7,529                 7,513                 7,255    
    End-of-period common shares:                    
    Issued                     8,067                 8,065                 8,052                 8,036                 8,019    
    Treasury                     (510 )               (510 )               (510 )               (510 )               (510 )  
    (Dollars in Thousands, Unaudited)   Quarter Ended
        12/31/2024   9/30/2024   6/30/2024   3/31/2024   12/31/2023
    Financial Condition Data:                    
    General                    
    Total assets           $         2,232,338       $         2,259,250       $         2,234,617       $         2,210,116       $         2,204,809    
    Loans, net                     1,865,230                 1,863,586                 1,855,054                 1,843,805                 1,828,318    
    Goodwill                     16,450                 16,450                 16,450                 16,450                 16,450    
    Intangibles                     107                 133                 158                 184                 210    
    Total deposits                     1,706,081                 1,700,321                 1,648,093                 1,618,562                 1,589,493    
    Noninterest-bearing                     456,936                 452,922                 461,092                 471,451                 471,173    
    Savings                     208,340                 211,560                 218,354                 220,932                 219,287    
    NOW                     212,687                 218,279                 209,906                 208,073                 214,888    
    Money Market                     308,977                 321,614                 320,101                 299,916                 299,353    
    Time Deposits                     340,844                 328,294                 310,187                 292,372                 260,067    
    Brokered Deposits                     178,297                 167,652                 128,453                 125,818                 124,725    
    Total interest-bearing deposits                     1,249,145                 1,247,399                 1,187,001                 1,147,111                 1,118,320    
                         
    Core deposits*                     1,186,940                 1,204,375                 1,209,453                 1,200,372                 1,204,701    
    Shareholders’ equity                     205,231                 203,694                 197,087                 193,517                 191,556    
                         
    Asset Quality                    
    Non-performing loans           $         8,904       $         7,940       $         6,784       $         7,958       $         3,148    
    Non-performing loans to total assets                     0.40   %             0.35   %             0.30   %             0.36   %             0.14   %
    Allowance for credit losses on loans                     11,848                 11,588                 11,234                 11,542                 11,446    
    Allowance for credit losses on loans to total loans                     0.63   %             0.62   %             0.60   %             0.62   %             0.62   %
    Allowance for credit losses on loans to non-performing loans                     133.06   %             145.94   %             165.60   %             145.04   %             363.60   %
    Non-performing loans to total loans                     0.47   %             0.42   %             0.36   %             0.43   %             0.17   %
                         
    Capitalization                    
    Shareholders’ equity to total assets                     9.19   %             9.02   %             8.82   %             8.76   %             8.69   %
                                                       
    * Core deposits are defined as total deposits less time deposits and brokered deposits.
     
    Reconciliation of GAAP and Non-GAAP Financial Measures
    (UNAUDITED)
     
        Three Months Ended December 31,   Twelve Months Ended December 31,
    (Dollars in Thousands, Except Per Share Data, Unaudited)    2024    2023    2024    2023
    GAAP net income           $         3,741       $         5,555       $         17,739       $         16,608    
    Net securities losses, net of tax                     35                 14                 47                 141    
    Merger expenses, net of tax                     581                 —                 581                 —    
    Non-GAAP core earnings           $         4,357       $         5,569       $         18,367       $         16,749    
                     
        Three Months Ended December 31,   Twelve Months Ended December 31,
         2024    2023    2024    2023
    Return on average assets (ROA)                     0.67   %             1.02   %             0.80   %             0.79   %
    Net securities losses, net of tax                     0.01   %             —   %             —   %             —   %
    Merger expenses, net of tax                     0.10   %             —   %             0.03   %             —   %
    Non-GAAP core ROA                     0.78   %             1.02   %             0.83   %             0.79   %
                     
        Three Months Ended December 31,   Twelve Months Ended December 31,
         2024    2023    2024    2023
    Return on average equity (ROE)                     7.28   %             12.60   %             9.14   %             9.84   %
    Net securities losses, net of tax                     0.07   %             0.03   %             0.02   %             0.09   %
    Merger expenses, net of tax                     1.13   %             —   %             0.30   %             —   %
    Non-GAAP core ROE                     8.48   %             12.63   %             9.46   %             9.93   %
                     
        Three Months Ended December 31,   Twelve Months Ended December 31,
         2024    2023    2024    2023
    Basic earnings per share (EPS)           $         0.50       $         0.77       $         2.35       $         2.34    
    Net securities losses, net of tax                     —                 —                 0.01                 0.02    
    Merger expenses, net of tax                     0.08                 —                 0.08                 —    
    Non-GAAP basic core EPS           $         0.58       $         0.77       $         2.44       $         2.36    
             
        Three Months Ended December 31,   Twelve Months Ended December 31,
         2024    2023    2024    2023
    Diluted EPS           $         0.49       $         0.77       $         2.35       $         2.34    
    Net securities losses, net of tax                     —                 —                 0.01                 0.02    
    Merger expenses, net of tax                     0.08                 —                 0.08                 —    
    Non-GAAP diluted core EPS           $         0.57       $         0.77       $         2.44       $         2.36    
    (Dollars in Thousands, Except Share and Per Share Data, Unaudited)   Quarter Ended
        12/31/2024   9/30/2024   6/30/2024   3/31/2024   12/31/2023
    Total shareholders’ equity           $         205,231     $         203,694     $         197,087     $         193,517     $         191,556  
    Goodwill                     (16,450 )             (16,450 )             (16,450 )             (16,450 )             (16,450 )
    Intangibles                     (107 )             (133 )             (158 )             (184 )             (210 )
    Tangible shareholders’ equity           $         188,674     $         187,111     $         180,479     $         176,883     $         174,896  
                         
    Shares outstanding                     7,556,743               7,554,488               7,541,474               7,525,372               7,508,994  
                         
    Book value per share           $         27.16     $         26.96     $         26.13     $         25.72     $         25.51  
    Tangible book value per share (Non-GAAP)           $         24.97     $         24.77     $         23.93     $         23.50     $         23.29  
                                             

    The MIL Network –

  • MIL-OSI Canada: Supporting Jasper’s recovery

    Source: Government of Canada regional news (2)

    MIL OSI Canada News –

  • MIL-OSI Security: Defendant Extradited To Face Charges Related To International Bank Fraud And Money Laundering Ring That Caused Over $60 Million In Losses

    Source: Office of United States Attorneys

    Members of the Charged Conspiracy Opened Bank Accounts for Over 1,000 Fake Businesses to Receive and Launder the Proceeds of Fraudulent Schemes, Causing Actual Losses of Over $60 Million and Intended Losses of Over $150 Million

    Danielle R. Sassoon, the United States Attorney for the Southern District of New York, and Patrick J. Freaney, the Special Agent in Charge of the New York Field Office of the United States Secret Service (“USSS”), announced today that ERICK JASON VICTORIA-BRTIO was extradited from the Dominican Republic and will appear in a federal courtroom in Manhattan later today.  VICTORIA-BRITO is charged in a two-count Indictment with conspiring to commit bank fraud and money laundering from December 2017 through November 2022.  In connection with the scheme, VICTORIA-BRITO and other members of the charged conspiracy registered over 1,000 fake businesses, used those fake businesses to open bank accounts to receive money stolen through business e-mail compromise schemes, and then laundered that money.  Members of the conspiracy caused over $60 million in actual losses and attempted to steal over $150 million.

    U.S. Attorney Danielle R. Sassoon said: “As we allege, Erick Jason Victoria-Brito and his co-conspirators ran an international bank fraud and money laundering scheme designed to help carry out business email compromise scams. These scams cause significant harm to businesses, nonprofits, and even local governments.  As the successful extradition of Erick Jason Victoria-Brito shows, this Office and our partners will not rest until every individual responsible is held accountable.” 

    USSS Special Agent in Charge Patrick J. Freaney said: “This alleged scheme rained down financial ruin upon unwitting businesses and individuals. While the suspects operated with impunity across the nation and beyond, the U.S. Secret Service and its partners remained steadfast in building a strong case — no matter where the evidence took them. I commend the investigators and prosecutors for their commitment to  disrupting this type of insidious fraud on behalf of all those victimized by it.”

    As alleged in the Indictment, Superseding Indictments, and court filings:[1]

    From at least December 2017 through at least November 2022, a group of individuals perpetrated a massive, international bank-fraud and money-laundering scheme (the “Fraud and Money Laundering Scheme”) designed to obtain and launder the proceeds of business e-mail compromise schemes.  In a business email compromise scheme, a scheme member fraudulently induces a company or individual to send money to a bank account controlled by that scheme member or the scheme member’s compatriots. 

    The Fraud and Money Laundering Scheme operated across borders and preyed on businesses large and small. Between 2020 and 2021 alone, participants in the scheme stole tens of millions of dollars, targeting victims that included a major American sports organization, a publicly traded healthcare company, and a prominent international nonprofit organization, along with multiple city governments, law firms, construction companies, and investment funds. Participants in the Fraud and Money Laundering Scheme registered over 1,000 fake businesses, then used those businesses to open bank accounts. Those bank accounts then received the proceeds of business email compromise schemes. Once the stolen funds reached those fraudulent bank accounts, participants in the Fraud and Money Laundering Scheme worked quickly to take advantage of the international banking system by either withdrawing the money or helping to launder it by wiring it to overseas banks, thereby preventing victims from recouping their losses. The co-conspirators accomplished that primarily by wiring stolen money to banks in China, outside the reach of American banks. During the course of the charged conduct, members of the conspiracy participated in inflicting over $60 million in actual losses and attempted to inflict losses of over $150 million.

    *                *                *

    VICTORIA-BRITO, 30, of Hollywood, Florida, is charged with one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison, and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.

    The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

    Ms. Sassoon praised the outstanding investigative work of the New York City Police Department, USSS, U.S. Postal Inspection Service, and Homeland Security Investigations.  Ms. Sassoon further thanked the U.S. Treasury Inspector General for Tax Administration, the Federal Bureau of Investigation, and Internal Revenue Service-Criminal Investigations for their assistance.

    This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Thomas S. Burnett and Amanda C. Weingarten are in charge of the prosecution.

    The charges contained in the Indictment and Superseding Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
     

    [1] As the introductory phrase signifies, the entirety of the text of the Indictment and Superseding Indictment, and the description of the Indictment and Superseding Indictment set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation.

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