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Category: Banking

  • MIL-OSI: MRF 2025 Resource Limited Partnership: Closing February 25, 2025 – Maximum $50,000,000

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Jan. 29, 2025 (GLOBE NEWSWIRE) — Middlefield, on behalf of MRF 2025 Resource Limited Partnership (“MRF 2025” or the “Partnership”), is pleased to announce that it has filed a final prospectus relating to the initial public offering of MRF 2025 Class A and Class F units. The offering is being made in each of the provinces of Canada. Closing is scheduled for February 25, 2025.

    The objectives of the Partnership are to provide investors with capital appreciation and significant tax benefits to enhance after-tax returns to limited partners, including the deductibility of 100% of their original investment. The Partnership intends to achieve these objectives by investing in an actively managed, diversified portfolio comprised primarily of equity securities of Canadian companies involved in the resource sector.

    Middlefield is a leading provider of flow-through share funds in Canada and has a strong track record of delivering positive after-tax returns. Since 1983, Middlefield has sponsored 70 public and private flow-through funds and has acted as agent or manager for over $2.5 billion of resource investments.

    The syndicate of agents for the offering is being co-led by CIBC Capital Markets and RBC Capital Markets and includes BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Richardson Wealth Limited, Manulife Securities Incorporated, iA Private Wealth Inc., Canaccord Genuity Corp., Raymond James Ltd. and Wellington-Altus Private Wealth Inc.

    For further information, please visit our website at www.middlefield.com or contact Nancy Tham in our Sales and Marketing Department at 1.888.890.1868.

    This offering is only made by prospectus. The prospectus contains important detailed information about the securities being offered. Copies of the prospectus may be obtained from your CIRO registered financial advisor using the contact information for such advisor. Investors should read the prospectus before making an investment decision.

    The MIL Network –

  • MIL-OSI: Moody Capital Solutions Consolidates Capitalyst Division into Moody, Enhancing Investment Banking Capabilities

    Source: GlobeNewswire (MIL-OSI)

    ATLANTA, Jan. 29, 2025 (GLOBE NEWSWIRE) — Moody Capital Solutions, Inc. (Moody Capital), a leading investment bank based in Atlanta, Georgia, is pleased to announce the consolidation of the Capitalyst Advisory Group division into its operations. This strategic move is aimed at expanding Moody Capital’s investment banking services and integrating Capitalyst’s expertise into its business.

    Richard Kreger, CEO of Moody Capital Solutions, welcomed Katherine Danielson and Todd Bertsch to the team: “We are thrilled to welcome the Capitalyst division into the Moody Capital family. This consolidation aligns with our commitment to providing top-tier investment banking services and strengthens our position in the market.”

    Katherine Danielson, joining Moody Capital Solutions as Managing Director, founded Capitalyst Advisory Group to integrate scalable business practices with a focus on fundraising and successful exits. Katherine brings extensive experience from her leadership roles at Citigroup and Nomura Securities, as well as a dynamic and diverse background. Prior to her career in investment banking, Katherine served for seven years in the U.S. Army as a broadcast journalist, honing her ability to tell compelling stories and communicate effectively under pressure. She also founded the food manufacturing company Zen Monkey Overnight Oatmeal, demonstrating her entrepreneurial acumen and deep understanding of business operations. Katherine holds a Bachelor of Arts in International Relations and Global Studies from the University of Texas and an MBA from Cambridge Judge Business School. On joining Moody Capital, she said: “This is a fantastic opportunity for our team and clients. We look forward to leveraging Moody Capital’s resources and expertise to deliver even greater value and innovative solutions.”

    Todd Bertsch, Managing Director of Capitalyst Advisory Group, brings over 25 years of expertise in investment banking, venture capital, and financial technology. A former leader at Bank of America Merrill Lynch, Cowen Inc., and Weild & Co., Todd has overseen operations generating over $100 million in revenues, specializing in capital raising, M&A, and corporate finance.

    As co-founder of Gateway Financial Technologies, Todd revolutionized trading through direct market access via FIX protocols, positioning the firm as an industry leader. In venture capital, his role as a Venture Partner at VU Venture Partners has helped high-potential ventures secure funding and strategic partnerships.

    Todd’s ability to balance financial, operational, and strategic priorities makes him a trusted advisor to businesses navigating growth. At Capitalyst, he provides tailored fundraising and M&A strategies, helping clients unlock value and achieve sustainable success.

    The consolidation will enable Moody Capital to enhance its service offerings, particularly in the areas of capital raising, mergers and acquisitions, and other investment banking services. The integration of Capitalyst Advisory Group’s talented team will further solidify Moody Capital’s reputation as a premier investment banking firm.

    For more information, please contact: info@moodycapital.com

    About Moody Capital Solutions, Inc.:

    Moody Capital Solutions, Inc. is a leading investment bank providing capital raising, mergers and acquisitions, and other investment banking services. Founded in 2002, Moody Capital is dedicated to delivering exceptional financial solutions to its clients.

    About Capitalyst Advisory Group:

    Capitalyst Advisory Group specializes in providing strategic financial advice and investment banking services to clients across various industries. Known for its innovative approach and commitment to client success, Capitalyst integrates scalable business practices with fundraising and successful exits in mind. Learn more at www.capitalystadvisorygroup.com.

    Contact:
    Moody Capital Solutions, Inc.
    Richard H. Kreger
    (845)448-8857
    info@moodycapital.com

    The MIL Network –

  • MIL-OSI: Juniata Valley Financial Corp. Announces Quarter and Year End December 31, 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Mifflintown, PA, Jan. 29, 2025 (GLOBE NEWSWIRE) — Juniata Valley Financial Corp. (OTCQX:JUVF) (“Juniata”) announced net income for the three months ended December 31, 2024 of $1.5 million compared to net income of $1.7 million for the three months ended December 31, 2023. Earnings per share, basic and diluted, was $0.30 for the three months ended December 31, 2024, compared to $0.33 for the three months ended December 31, 2023. Net income for the year ended December 31, 2024 was $6.2 million compared to net income of $6.6 million for the year ended December 31, 2023. Basic and diluted earnings per share were $1.25 and $1.24, respectively, for the year ended December 31, 2024 compared to basic and diluted earnings per share of $1.32 and $1.31, respectively, for the corresponding 2023 period.

    President’s Message

    President and Chief Executive Officer, Marcie A. Barber stated, “The Federal Reserve Bank rate decreases made in the last four months of 2024 contributed to a reversal in the last quarter of 2024 of the net interest margin compression trend in prior periods. Our net interest margin increased by twelve basis points compared to last year’s fourth quarter. In addition to an improved margin, we are pleased that our strategies to increase non-interest income have been successful resulting in substantial growth in both the fourth quarter of 2024 and the 2024 year. The decrease in fourth quarter net income compared to last year was due to several one-time noninterest expense items. Our credit quality remains strong with nonperforming loans totaling only 0.1% of the total loan portfolio and delinquent and nonperforming loans comprising just 0.4% of the portfolio. We are optimistic heading into 2025 that we can achieve accelerated loan growth while maintaining our excellent credit quality through increased efforts to cultivate loan and deposit relationships outside of our branch footprint coupled with exploring opportunities for expansion.”           

    Financial Results for the 2024 Year

    Return on average assets for the year ended December 31, 2024, was 0.72%, compared to the return on average assets of 0.79% for the year ended December 31, 2023. Return on average equity for the year ended December 31, 2024 was 14.19%, compared to the return on average equity of 18.20% for the year ended December 31, 2023.

    Net interest income was $22.9 million for the year ended December 31, 2024 compared to $22.7 million for 2023. Average interest earning assets increased $15.7 million, or 1.9%, to $853.9 million, for the year ended December 31, 2024, compared to the same period in 2023, due primarily to an increase of $34.6 million, or 6.9%, in average loans. The increase in average loans was partially offset by a decline of $20.1 million, or 6.1%, in average investment securities as the amortization on the mortgage-backed securities portfolio was used to fund loan growth rather than being reinvested into the securities portfolio. Average interest bearing liabilities increased by $14.3 million, or 2.4%, for the year ended December 31, 2024 compared to the comparable 2023 period, due primarily to growth in average time deposits as well as short-term borrowings and repurchase agreements. The yield on average loans increased by 47 basis points for the year ended December 31, 2024 compared to the year ended December 31, 2023, while the costs of average interest bearing deposits increased by 116 basis points, and short- and long-term borrowings and other interest bearing liabilities increased by a total of 85 basis points. These increases were primarily the result of higher market interest rates and competitive pricing pressure between periods. The yield on earning assets increased 39 basis points, to 4.35%, for the year ended December 31, 2024 compared to the year ended December 31, 2023, while the cost to fund interest earning assets with interest bearing liabilities increased 56 basis points, to 2.31%. The net interest margin, on a fully tax equivalent basis, decreased from 2.74% for the year ended December 31, 2023 to 2.71% for the year ended December 31, 2024.

    Juniata recorded a provision for credit losses of $534,000 for the year ended December 31, 2024, compared to a provision for credit losses of $500,000 for the year ended December 31, 2023.

    Non-interest income was $5.8 million for the year ended December 31, 2024 compared to $5.3 million for the year ended December 31, 2023, an increase of 9.5%. Most significantly impacting the comparative year end periods were increases of $391,000 in customer service fees, $98,000 in the change in value of equity securities and $182,000 in fees derived from loan activity. These increases were partially offset by a $105,000 decrease in life insurance proceeds compared to the 2023 period.

    Non-interest expense was $21.0 million for the year ended December 31, 2024 compared to $19.9 million for the year ended December 31, 2023. Most significantly impacting non-interest expense for the comparative year end periods was an increase of $568,000 in employee compensation expense due to annual salary increases, overtime pay from the core conversion in the first quarter of 2024 and having one additional pay period in 2024. Also impacting the comparative year end periods was an increase of $123,000 in occupancy expense due to an increase in rental expense from the early termination of a branch office lease in December 2024, as well as increases of $204,000 in equipment expense and $286,000 in professional fees. These increases were partially offset by a decrease of $227,000 in merger and acquisition expense due to the Path Valley branch acquisition in 2023 with no similar transaction occurring in the 2024 period.

    An income tax provision of $979,000 was recorded for the year ended December 31, 2024 compared to an income tax provision of $970,000 recorded for the year ended December 31, 2023. Juniata qualifies for a federal tax credit for investments in low-income housing partnerships. The tax credit decreased $37,000, or 10.1%, from $366,000 in the year ended December 31, 2023 to $329,000 in the year ended December 31, 2024, due to the completion of the amortization period for one of Juniata’s low-income housing partnership investments in January 2023.

    Financial Results for the Quarter

    Annualized return on average assets for the three months ended December 31, 2024 was 0.70%, compared to 0.79% for the three months ended December 31, 2023. Annualized return on average equity for the three months ended December 31, 2024 was 12.79%, compared to 18.06% for the three months ended December 31, 2023.

    Net interest income was $5.8 million for the three months ended December 31, 2024 compared to $5.6 million for the three months ended December 31, 2023. Average interest earning assets were relatively the same between the comparable three month periods, decreasing by $280,000, to $847.1 million compared to the 2023 period, with average loans increasing $18.9 million, or 3.6%, and average investment securities decreasing $18.7 million, or 5.8%, over the comparable three month periods. Average interest bearing liabilities increased by $15.8 million, or 2.6%, compared to the comparable 2023 period, primarily due to growth in average short-term borrowings and repurchase agreements. When comparing the three months ended December 31, 2024 to the three months ended December 31, 2023, the yield on average loans increased by 36 basis points, and the rates on average time deposits increased by 67 basis points, primarily due to competitive pricing pressures, while the rates on average short- and long-term borrowings and other interest bearing liabilities decreased by 77 basis points, primarily due to a decline in market interest rates between periods. The yield on earning assets increased 29 basis points, to 4.39%, for the three months ended December 31, 2024 compared to same period in 2023, while the cost to fund interest earning assets with interest bearing liabilities increased 18 basis points, to 2.26%. The net interest margin, on a fully tax equivalent basis, increased from 2.64% for the three months ended December 31, 2023, to 2.76% for the three months ended December 31, 2024.

    Juniata recorded a provision for credit losses of $63,000 for the three months ended December 31, 2024 compared to a provision for credit losses of $89,000 for the three months ended December 31, 2023.

    Non-interest income was $1.6 million for the three months ended December 31, 2024 and $1.4 million for the three months ended December 31, 2023, an increase of 12.4%. Most significantly impacting non-interest income in the comparative three month periods were increases of $109,000 in customer service fees and $56,000 in life insurance proceeds, as well as $68,000 in fees derived from loan activity, primarily due to the addition of back-to-back swap fees and an increase in title insurance commissions and letter of credit fees. Partially offsetting these increases was a decrease of $46,000 in the change in value of equity securities due to declines in the market value of community bank stocks owned by Juniata for the three months ended December 31, 2024 compared to the three months ended December 31, 2023.

    Non-interest expense was $5.7 million for the three months ended December 31, 2024, compared to $5.0 million for the three months ended December 31, 2023, an increase of 13.7%. Most significantly impacting non-interest expense for the comparative three month periods was an increase of $212,000 in employee compensation expense, primarily due to an extra pay period in the 2024 period, as well as a $273,000 increase in employee benefits expense due to an increase in medical claims expenses. Also contributing to the increase in non-interest expense between comparative three month periods was an increase of $108,000 in occupancy expenses due to an increase in rental expense from the early termination of a branch office lease in December 2024, as well as increases of $80,000 in equipment expense and $90,000 in professional fees. These increases were partially offset by a decrease of $102,000 in other non-interest expense, primarily due to a decrease in the provision for unfunded commitments during the three months ended December 31, 2024 compared to the three months ended December 31, 2023.

    An income tax provision of $212,000 was recorded for the three months ended December 31, 2024 compared to an income tax provision of $262,000 recorded for the three months ended December 31, 2023. The federal tax credit for investments in low-income housing partnerships was $82,000 in both the three months ended December 31, 2024 and 2023.

    Financial Condition

    Total assets as of December 31, 2024 were $848.9 million, a decrease of $21.7 million, or 2.5%, compared to total assets of $870.6 million at December 31, 2023. Comparing asset balances on December 31, 2024 and December 31, 2023, cash and cash equivalents and total debt securities decreased by $17.9 million and $12.0 million, respectively, while total loans increased by $8.5 million. As of December 31, 2024, short-term borrowings and repurchase agreements decreased by $10.6 million compared to December 31, 2023, and long-term debt decreased by $15.0 million over the same period due to the maturity of a 5-year FHLB advance in May 2024.

    Juniata maintains a strong liquidity position as of December 31, 2024, with additional borrowing capacity with the Federal Home Loan Bank of Pittsburgh of $216.2 million and $51.1 million from the Federal Reserve’s Discount Window. In addition, Juniata has internal authorization for brokered deposits of up to $175.0 million. Juniata had no brokered deposits as of December 31, 2024.

    Subsequent Event

    On January 21, 2025, the Board of Directors declared a cash dividend of $0.22 per share to shareholders of record on February 14, 2025 payable on February 28, 2025.

    Management considers subsequent events occurring after the statement of condition date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company’s consolidated financial statements with the Securities and Exchange Commission. Accordingly, the financial information in this release is subject to change.

    The Juniata Valley Bank, the principal subsidiary of Juniata Valley Financial Corp., is headquartered in Mifflintown, Pennsylvania, with fifteen community offices located in Juniata, Mifflin, Perry, Franklin, McKean and Potter Counties. More information regarding Juniata Valley Financial Corp. and The Juniata Valley Bank can be found online at www.JVBonline.com. Juniata Valley Financial Corp. trades through the OTCQX Best Market under the symbol JUVF.

    Forward-Looking Information
    *This press release may contain “forward looking” information as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect the current views of Juniata’s management with respect to, among other things, future events and Juniata’s financial performance. When words such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” the negative variations of those words or similar expressions are used in this release, Juniata is making forward-looking statements. Such information is based on Juniata’s current expectations, estimates and projections about future events and financial trends affecting the financial condition of its business, many of which, by their nature, are inherently uncertain and beyond the control of Juniata. These statements are not historical facts or guarantees of future performance, events or results and are subject to risks, assumptions and uncertainties that are difficult to predict. If one or more events related to these or other risks or uncertainties materializes, or if underlying assumptions prove to be incorrect, actual results may differ materially from this forward-looking information. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and many factors could affect future financial results. Juniata undertakes no obligation to publicly update or revise forward looking information, whether because of new or updated information, future events, or otherwise. For a more complete discussion of certain risks and uncertainties affecting Juniata, please see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Forward-Looking Statements” set forth in the Juniata’s filings with the Securities and Exchange Commission.

    Financial Statements

    Juniata Valley Financial Corp. and Subsidiary
    Consolidated Statements of Financial Condition

                 
    (Dollars in thousands, except share data)      (Unaudited)       
        December 31, 2024   December 31, 2023
    ASSETS            
    Cash and due from banks   $ 5,064     $ 17,189  
    Interest bearing deposits with banks     5,934       11,741  
    Cash and cash equivalents     10,998       28,930  
                 
    Equity securities     1,189       1,073  
    Debt securities available for sale     64,623       67,564  
    Debt securities held to maturity (fair value $182,773 and $198,147, respectively)     191,627       200,644  
    Restricted investment in bank stock     2,530       1,707  
    Total loans     533,869       525,394  
    Less: Allowance for credit losses     (6,183 )     (5,677 )
    Total loans, net of allowance for credit losses     527,686       519,717  
    Premises and equipment, net     9,382       8,180  
    Bank owned life insurance and annuities     15,214       14,841  
    Investment in low income housing partnerships     832       1,154  
    Core deposit and other intangible assets     258       343  
    Goodwill     9,812       9,812  
    Mortgage servicing rights     69       83  
    Deferred tax asset     9,842       11,319  
    Accrued interest receivable and other assets     4,812       5,188  
    Total assets   $ 848,874     $ 870,555  
    LIABILITIES AND STOCKHOLDERS’ EQUITY              
    Liabilities:              
    Deposits:              
    Non-interest bearing   $ 196,801     $ 197,027  
    Interest bearing     551,156       552,018  
    Total deposits     747,957       749,045  
                 
    Short-term borrowings and repurchase agreements     42,242       52,810  
    Long-term debt     5,000       20,000  
    Other interest bearing liabilities     830       951  
    Accrued interest payable and other liabilities     5,388       7,612  
    Total liabilities     801,417       830,418  
    Commitments and contingent liabilities            
    Stockholders’ Equity:              
    Preferred stock, no par value: Authorized – 500,000 shares, none issued     —       —  
    Common stock, par value $1.00 per share: Authorized 20,000,000 shares; Issued – 5,151,279 shares at December 31, 2024 and December 31, 2023; Outstanding – 5,003,384 shares at December 31, 2024 and 4,991,129 shares at December 31, 2023     5,151       5,151  
    Surplus     24,896       24,924  
    Retained earnings     53,126       51,297  
    Accumulated other comprehensive loss     (33,320 )     (38,640 )
    Cost of common stock in Treasury: 147,895 shares at December 31, 2024; 160,150 shares at December 31, 2023     (2,396 )     (2,595 )
    Total stockholders’ equity     47,457       40,137  
    Total liabilities and stockholders’ equity   $ 848,874     $ 870,555  

    Juniata Valley Financial Corp. and Subsidiary
    Consolidated Statements of Income (Unaudited)

                             
        Three Months Ended   Year Ended
    (Dollars in thousands, except share and per share data)   December 31,    December 31, 
           2024      2023     2024      2023  
    Interest income:                
    Loans, including fees   $ 7,885   $ 7,159     $ 31,109   $ 26,728  
    Taxable securities     1,408     1,509       5,749     6,193  
    Tax-exempt securities     29     30       118     139  
    Other interest income     24     52       140     121  
    Total interest income     9,346     8,750       37,116     33,181  
    Interest expense:                            
    Deposits     2,924     2,633       11,167     8,247  
    Short-term borrowings and repurchase agreements     568     419       2,719     1,733  
    Long-term debt     31     118       268     471  
    Other interest bearing liabilities     8     9       33     38  
    Total interest expense     3,531     3,179       14,187     10,489  
    Net interest income     5,815     5,571       22,929     22,692  
    Provision for credit losses     63     89       534     500  
    Net interest income after provision for credit losses     5,752     5,482       22,395     22,192  
    Non-interest income:                            
    Customer service fees     467     358       1,767     1,376  
    Debit card fee income     450     477       1,752     1,770  
    Earnings on bank-owned life insurance and annuities     62     55       236     222  
    Trust fees     110     85       469     466  
    Commissions from sales of non-deposit products     79     82       388     337  
    Fees derived from loan activity     231     163       682     500  
    Change in value of equity securities     49     95       115     17  
    Gain from life insurance proceeds     56     —       56     161  
    Other non-interest income     101     113       360     472  
    Total non-interest income     1,605     1,428       5,825     5,321  
    Non-interest expense:                            
    Employee compensation expense     2,333     2,121       9,022     8,454  
    Employee benefits     715     442       2,448     2,355  
    Occupancy     433     325       1,412     1,289  
    Equipment     246     166       863     659  
    Data processing expense     719     711       2,881     2,937  
    Professional fees     304     214       1,134     848  
    Taxes, other than income     37     26       191     184  
    FDIC Insurance premiums     140     152       575     504  
    Gain on other real estate owned     —     (16 )     —     (16 )
    Amortization of intangible assets     21     25       85     81  
    Amortization of investment in low-income housing partnerships     80     80       322     353  
    Merger and acquisition expense     —     —       —     227  
    Other non-interest expense     626     728       2,079     2,072  
    Total non-interest expense     5,654     4,974       21,012     19,947  
    Income before income taxes     1,703     1,936       7,208     7,566  
    Income tax provision     212     262       979     970  
    Net income   $ 1,491   $ 1,674     $ 6,229   $ 6,596  
    Earnings per share                            
    Basic   $ 0.30   $ 0.33     $ 1.25   $ 1.32  
    Diluted   $ 0.30   $ 0.33     $ 1.24   $ 1.31  

    The MIL Network –

  • MIL-OSI Canada: Bank of Canada provides operational details for restarting asset purchases to end quantitative tightening

    Source: Bank of Canada

    Today, the Bank of Canada is announcing its plan to complete its balance sheet normalization, ending quantitative tightening. Beginning in early March, the Bank will begin purchasing assets as part of normal balance sheet management. Purchases are intended to replace maturing assets, to offset the growth of currency notes in circulation and to stabilize settlement balances within a range over the course of the year.

    Asset purchases will begin with the restart of the regular term repo program, followed by Government of Canada (GoC) treasury bill purchases to restore a more balanced mix of assets on the Bank’s balance sheet.

    As such, the Bank will restart its term repo program effective March 5, 2025 and operations will be conducted every two weeks. Terms will alternate between 1-month operations and 1- and 3-months operations depending on the week. Initially, term repo operations will range between $2bln and $5bln. The sizes will increase over time as the Bank’s needs for additional assets grow. Final operational details, including the size and specific maturity date of the term repos, will be published 1 week prior to the operation date. See the updated terms and conditions for additional information.

    Treasury bill purchases will resume later this year and be conducted via GoC auctions. Purchase amounts will be announced via the regular call for tender process. The timing for the resumption of treasury bill purchases will ultimately depend on the evolution of the Bank’s balance sheet, including take-up of the term repo program. 

    Purchases of GoC bonds will likely not need to start until towards the end of 2026 at the earliest based on current projections for the Bank’s future asset needs. When they begin, they will be conducted in the secondary market. A subsequent market notice containing operational details will be published well in advance.

    Director
    Financial Markets Department

    Director
    Financial Markets Department

    MIL OSI Canada News –

  • MIL-OSI Canada: Bank of Canada announces an adjustment to the deposit rate and some changes to terms and conditions for Overnight Reverse Repo Operations

    Source: Bank of Canada

    The Bank announced it is making an adjustment to the deposit rate. Effective January 30, the deposit rate will be set at a spread of 5bps below the Bank’s policy interest rate. This change to the monetary policy implementation framework is being made to improve its effectiveness. The intent of this change is to improve the circulation of settlement balances as they decline towards steady state levels over the coming months and support the functioning of short-term funding markets. Adjusting the deposit rate should also help mitigate some of the upward pressure that has been seen on the overnight rate relative to the Bank’s target rate in recent months and help reinforce the effect of the Bank’s Overnight Repo (OR) operations.

    Occasional adjustments to the deposit rate spread may be required in the course of normal operations. These spread adjustments would be considered, among other factors, following a period of sustained and persistent upward, or downward pressure, on CORRA and would be communicated via a market notice. We will assess the impact of this change as the balance sheet continues to evolve and evaluate the need for any additional adjustments to our implementation framework.

    In addition, the Bank is realigning its framework for Overnight Reverse Repo (ORR) operations with that of OR operations. Effective January 30, when they are required, ORR operations will be conducted through a uniform price auction with an aggregate cash value amount offered in each operation of a minimum of $8 billion and individual dealer limits for each ORR of $3 billion. The terms and conditions of ORR operations have been updated to reflect this change and provide further operational details.

    Director
    Financial Markets Department

    Director
    Financial Markets Department

    MIL OSI Canada News –

  • MIL-OSI: Orange County Bancorp, Inc. Announces Strategic Realignment of Internal Divisions to Enhance its Wealth Management Services

    Source: GlobeNewswire (MIL-OSI)

    MIDDLETOWN, N.Y., Jan. 29, 2025 (GLOBE NEWSWIRE) — Orange County Bancorp, Inc. (the “Company” – Nasdaq: OBT), parent company of Orange Bank & Trust Co. (the “Bank”) and Hudson Valley Investment Advisors, Inc., today announced a realignment of internal divisions designed to promote its wealth management services to better meet the evolving needs of its clients. The Company’s asset management arm, Hudson Valley Investment Advisors, Inc., and trust and private banking offerings will be collectively known as Orange Wealth Management.

    The oversight of Orange Wealth Management will be led by Senior Vice President, David P. Dineen. Dineen is currently the head of the Bank’s wealth service sales and will now serve as the Managing Director of Wealth Management. Dineen has successfully overseen the trust and private banking divisions of the Bank since his hiring in February 2022 and has more than 30 years of banking and wealth management experience, making him uniquely qualified for this new role.

    “We recognize that our entrepreneurial clients frequently prioritize business expansion, which can sometimes overshadow their personal financial needs,” said Dineen. “By unifying our core divisions, we can provide a comprehensive wealth management solution, seamlessly integrating investment guidance, estate planning, and personal banking services. This team approach truly embodies the Bank’s tagline: ‘Guiding your business, Growing your wealth’.”

    Orange Wealth Management will provide clients:

    • Personalized Attention: In-person and cell-phone access to a dedicated team of advisors who understand their unique financial circumstances and goals.
    • Enhanced Convenience: A full suite of wealth management services that bring together old-fashioned service with cutting-edge technology.
    • Seamless Integration: A cohesive experience that seamlessly integrates personal and business banking with wealth management services unlike the banking industry’s traditional siloed approach to wealth management and commercial banking.

    “We are thrilled to have David lead this important initiative,” said Michael Gilfeather, President and CEO of Orange Bank & Trust Co. “His extensive experience in the wealth management industry will be invaluable as we continue to expand our offerings and provide exceptional service to our clients through Orange Wealth Management.”

    He continued, “Nationwide, a significant majority of the top 10 percent built their wealth through business ownership. This fact aligns perfectly with our business, since the majority of our Private Banking clientele have also built their wealth through entrepreneurship. With the ‘Great Wealth Transfer’ underway, involving the transfer of more than $80 trillion in assets, this strategic realignment positions us to capitalize on this unprecedented opportunity to garner an increasing wallet share within our marketplace by serving the evolving needs of high-net-worth individuals and their families with generations in mind.”

    The Company purchased Hudson Valley Investment Advisors (HVIA) in 2012 with $465 million in assets under management (AUM). Today, HVIA has more than $1.7 billion in AUM serving the owners, managers and directors of their business banking clientele as well as individual and institutional investors. This vertical provides the company with a consistent and growing fee-based revenue stream that is synergistic with its traditional commercial bank spread based income.

    About Orange County Bancorp, Inc

    Orange County Bancorp, Inc. is the parent company of Orange Bank & Trust Co. and Hudson Valley Investment Advisors, Inc. Orange Bank & Trust Co. is an independent bank that began with the vision of 14 founders more than 125 years ago. It has grown through innovation and an unwavering commitment to its community and business clientele to approximately $2.5 billion in total assets. Hudson Valley Investment Advisors, Inc. is a Registered Investment Advisor in Goshen, N.Y. It was founded in 1996 and acquired by the Company in 2012.

    Forward Looking Statements

    Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward looking statements are subject to numerous risks and uncertainties, including, but not limited to, those related to the real estate and economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, inflation, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, increased levels of loan delinquencies, problem assets and foreclosures, credit risk management, asset-liability management, cybersecurity risks, geopolitical conflicts, public health issues, the financial and securities markets and the availability of and costs associated with sources of liquidity.

    The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the results of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

    Contact: Candice Varetoni
    AVP Marketing Officer
    Orange Bank & Trust Company
    cvaretoni@orangebanktrust.com

    The MIL Network –

  • MIL-OSI: Main Street Financial Services Corp. Announces Earnings for Fourth Quarter of 2024

    Source: GlobeNewswire (MIL-OSI)

    Business Highlights

    • Financial results reflect the second full quarter following the completed merger of Main Street Financial Services Corp. (Main Street) and Wayne Savings Bancshares, Inc. (Wayne) on May 31, 2024.
    • Net income for the fourth quarter of 2024 totaled $3.2 million, or $0.41 per common share
    • Annualized deposit growth of 19.7% for the quarter ended December 31, 2024
    • Reduced reliance on wholesale funding by $40 million during the fourth quarter of 2024
    • Declared cash dividend of $0.14 per share on January 10, 2025

    WOOSTER, Ohio, Jan. 29, 2025 (GLOBE NEWSWIRE) — Main Street Financial Services Corp. (OTCQX: MSWV), (the “Company”), the holding company parent of Main Street Bank Corp. reported a net income of $3.2 million, or $0.41 per common share, for the three months ended December 31, 2024. The return on average equity and return on average assets for the fourth quarter of 2024 was 11.69% and 0.90%, compared to 16.90% and 1.02%, for the fourth quarter of 2023.

    The Company announced a merger of equals transaction with Wayne Savings Bancshares, Inc. (“Legacy Wayne”) on February 23, 2023. On May 31, 2024 (the “Merger Date”), the Company completed the transaction, forming a financial holding company with assets of $1.4 billion. On the Merger Date, Legacy Wayne merged with and into Main Street, with Main Street surviving the merger (the “Merger”). Immediately following the Merger, Main Street’s wholly owned bank subsidiary, Main Street Bank Corp., merged with and into Wayne Savings Community Bank, with Wayne Savings Community Bank surviving the merger. Upon completion of the Merger, Wayne Savings Community Bank was renamed Main Street Bank Corp.

    The Merger was accounted for as a reverse merger using the acquisition method of accounting, therefore, Legacy Wayne was deemed the acquirer for financial reporting purposes, even though Main Street was the legal acquirer. Accordingly, Legacy Wayne’s historical financial statements are the historical financial statements of the combined company for all periods before the Merger Date. Our consolidated statements of income for the quarters ended June 30, 2024, September 30, 2024 and December 31, 2024, include the results from Main Street on and after May 31, 2024. Results for periods before May 31, 2024, reflect only those of Legacy Wayne and do not include the consolidated statements of income of Main Street. Accordingly, comparisons of our results for the quarter ended December 31, 2024, with those of prior periods may not be meaningful. The number of shares issued and outstanding, earnings per share, dividends paid and all references to share quantities of Main Street have been retrospectively adjusted to reflect the equivalent number of shares issued in the Merger.

    President and CEO James R. VanSickle commented, “I am proud of the dedication and hard work displayed by Main Street Bank’s team of community bankers throughout 2024. They have been instrumental in the improvement of our operational efficiencies, enhancement of our customer experience and delivering long-term value for our shareholders. I would like to thank our customers, shareholders and our communities for their confidence in Main Street Bank.”

    Fourth Quarter 2024 Financial Results

    Net interest income was $10.6 million for the quarter ended December 31, 2024, an increase of 103.4% from $5.2 million for the quarter ended December 31, 2023. The net interest margin of 3.19% for the fourth quarter of 2024 increased 46 basis points from 2.73% for the fourth quarter of 2023. Loan yields were 6.12% for the quarter ended December 31, 2024, an increase of 82 basis points when compared to 5.30% for the quarter ended December 31, 2023. The loan yield increase is the result of variable rate loan repricing, new loan originations at current markets rates and purchase accounting accretion on acquired loans. Investment yields increased 122 basis points to 3.59% as of December 31, 2024 when compared to the quarter ended December 31, 2023. The cost of funds for the fourth quarter of 2024, was 2.66%, an increase of 33 basis points when compared to the fourth quarter of 2023. The cost of funds increase is largely due to shifting deposit composition to higher-yielding product offerings and utilizing higher-cost wholesale funding, such FHLB advances. The cost of total deposits was 2.25% for the quarter ended December 31, 2024, a 21 basis point increase when compared to 2.04% for the quarter ended December 31, 2023. The cost of borrowings for the quarter ended December 31, 2024 totaled 5.64%, an increase of 94 basis points when compared to the quarter ended December 31, 2023.

    A provision for credit losses and unfunded commitments of $79,000 was recorded for the quarter ended December 30, 2024. During the quarter, the Company recognized $20,000 in charge-offs and $5,000 in recoveries, reflecting relatively stable asset quality.

    Noninterest income totaled $1.2 million for the quarter ended December 31, 2024, an increase of $148,000, or 14.6%, when compared to the quarter ended December 31, 2023. Noninterest income declined by $435,000 when compared to the quarter ended September 30, 2024. During the quarter ended September 30, 2024, the Company recognized a gain on the sale of investments totaling $702,000.

    Noninterest expense totaled $8.0 million for the quarter ended December 31, 2024, an increase of $4.2 million when compared to the quarter ended December 31, 2023. Noninterest expense increased by $87,000 when compared to the quarter ended September 30, 2024 due to increased incentive compensation and a charge related to the disposition of an REO property. The increase reflects a full quarter of combined expenses after completion of the merger.

    The provision for income taxes for the quarter ended December 31, 2024, decreased by $246,000 compared to the quarter ended September 30, 2024. This reduction was primarily driven by the Company’s reassessment of the West Virginia state income tax impact.

    December 31, 2024 Financial Condition

    At December 31, 2024, the Company had total assets of $1.41 billion with net loan balances totaling $1.11 billion. Loan balances remained relatively unchanged for the quarter ended December 31, 2024. As part of the merger, the Company acquired $430.8 million in loans.

    The allowance for credit losses was $11.8 million at December 31, 2024, compared to $7.3 million at December 31, 2023. The increase is a result of establishing an allowance for credit losses on the acquired non-PCD loan portfolio during the second quarter of 2024. The allowance for credit losses as a percent of total loans was 1.05%, compared to 1.09% as of December 31, 2023. The allowance for credit losses and the related provision for credit losses is based on management’s judgment and evaluation of the loan portfolio. Management believes the current allowance for credit losses is adequate, however, changing economic and other conditions may require future adjustments to the allowance for credit losses.

    Total nonperforming loans (NPLs) was $6.1 million at December 31, 2024, an increase from $0.6 million at December 31, 2023. The NPL to net loan receivable ratio was 0.55% as of December 31, 2024. Past due loan balances of 30 days and more increased from $2.8 million at December 31, 2023, to $13.8 million, or 1.24% of net loans outstanding, at December 31, 2024. The increase in nonperforming and past due loans is due to the impact of the acquired loan portfolio.

    Improvement in Asset Quality Since Merger Announcement: The combined level of classified loans and loans past due 30 or more days for Legacy Wayne and Main Street was $24.4 million and $19.1 as of December 31, 2022. Since the merger announcement on February 23, 2023, the management teams of both Main Street and Wayne invested a great deal of time ensuring our combined organization utilizes strong underwriting standards and proactively monitors credit quality. Main Street sold approximately $15.2 million of loans in August 2023 and April 2024, of which approximately $12.7 million were classified loans. As of December 31, 2024, the resultant Company has $14.8 of classified loans and $13.8 of loans past due 30 or more days.

    Total liabilities increased to $1.30 billion at December 31, 2024 with deposits totaling $1.16 billion and FHLB advances totaling $100.0 million. Deposits grew by $54.3 million, or 19.7% annualized, during the fourth quarter of 2024. As part of the merger, the Company acquired $487.4 million in deposits. As of December 31, 2024, the Company held no brokered deposits compared to $116.7 million at December 31, 2023. The Company leverages FHLB advances for short-term funding needs due to their accessibility and alignment with prevailing market rates. During the fourth quarter of 2024, the Company reduced the reliance on FHLB advances by $40 million.

    Total stockholders’ equity was $110.6 million at December 31, 2024, an increase of $57.7 million when compared to the December 31, 2023 balance. The increase was primarily driven by the merger between Main Street and Wayne. Total stockholders’ equity decreased during the fourth quarter of 2024 primarily from a decrease in accumulated other comprehensive income of $4.7 million and dividends of $1.1 million, partially offset by net income of $3.2 million.

    Main Street Financial Services Corp. is a holding company headquartered in Wooster, Ohio. Its primary subsidiary, Main Street Bank Corp. was founded in 1899 and provides full-service banking, commercial lending, and mortgage services across its branch infrastructure. Today, Main Street Bank Corp. operates 19 branch locations in Wooster, Ohio, Wheeling, West Virginia and other surrounding communities in Ohio and West Virginia. Additional information about Main Street Bank Corp. is available at www.mymainstreetbank.bank.

    Non-GAAP Disclosure
    This press release includes disclosures of the Company’s return on average equity, return on average assets, net income, and efficiency ratios which are excluding costs related to merger activities which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flow that excludes or includes amounts that are required to be disclosed by GAAP. The Company believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and the Company’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP.

    Forward-Looking–Statements
    This release contains forward-looking statements that are not historical facts and that are intended to be “forward-looking statements” as that term is defined by the Private Securities Litigation Reform Act of 1995.  These forward-looking statements may include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions and other statements contained in this release that are not historical facts and pertain to the Company’s future operating results.  When used in this release, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions are generally intended to identify forward-looking statements.  Actual results may differ materially from the results discussed in these forward-looking statements, because such statements are inherently subject to significant assumptions, risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control.  These include but are not limited to: the possibility of adverse economic developments that may, among other things, increase default and delinquency risks in the Company’s loan portfolios; shifts in interest rates; shifts in the rate of inflation; shifts in the demand for the Company’s loan and other products; unforeseen increases in costs and expenses; lower-than-expected revenue or cost savings in connection with acquisitions; changes in accounting policies; changes in the monetary and fiscal policies of the federal government; and changes in laws, regulations and the competitive environment.  Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

    Contact Information:
    Matthew Hartzler
    Senior Vice President, Chief Financial Officer
    (330) 264-5767

       
    MAIN STREET FINANCIAL SERVICES CORP.
    Condensed Consolidated Balance Sheets
    (Dollars in thousands, except share data – unaudited)
       
        December 31, 2024   December 31, 2023
    ASSETS            
                 
    Cash and cash equivalents   $ 54,422     $ 20,884  
    Securities, net (1)   163,819     86,405  
    Loans receivable, net   1,113,900     669,603  
    Federal Home Loan Bank stock   6,445     3,959  
    Premises & equipment, net   10,880     4,904  
    Bank-owned life insurance   22,155     11,706  
    Other assets   37,608     12,486  
    TOTAL ASSETS   $ 1,409,229     $ 809,947  
                 
    LIABILITIES AND STOCKHOLDERS’ EQUITY            
                 
    Deposit accounts   $ 1,156,328     $ 693,126  
    Other short-term borrowings   28,308     8,743  
    Federal Home Loan Bank advances   100,000     47,000  
    Accrued interest payable and other liabilities   13,957     8,111  
    TOTAL LIABILITIES   1,298,593     756,980  
                 
                 
    Common stock (7,801,011 shares of $1.00 par value issued)   7,801     398  
    Additional paid-in capital   56,387     36,715  
    Retained earnings   57,356     55,342  
    Treasury Stock, at cost – 0 shares and 1,777,824 shares at December 31, 2024 and December 31, 2023, respectively.   –     (30,330 )
    Accumulated other comprehensive loss   (10,908 )   (9,158 )
    TOTAL STOCKHOLDERS’ EQUITY   110,636     52,967  
                 
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 1,409,229     $ 809,947  
                 
    (1) Includes available-for-sale and held-to-maturity classifications.
    Note: The December 31, 2023 Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of that date.
    MAIN STREET FINANCIAL SERVICES CORP.
    Condensed Consolidated Statements of Income
    (Dollars in thousands, except share data – unaudited)
                     
        Three Months Ended   Twelve Months Ended
        December 31,   December 31,
          2024       2023       2024       2023  
                     
    Interest income   $ 19,138     $ 9,545     $ 60,334     $ 35,095  
    Interest expense     8,531       4,330       27,665       12,920  
    Net interest income     10,607       5,215       32,669       22,175  
    Provision for credit losses     79       4       4,782       530  
    Net interest income after provision for credit losses     10,528       5,211       27,887       21,645  
    Non-interest income     1,165       1,017       4,158       3,017  
    Non-interest expense                
    Salaries and employee benefits     3,823       1,782       12,511       7,731  
    Net occupancy and equipment expense     1,430       625       4,399       2,431  
    Federal deposit insurance premiums     197       157       637       531  
    Franchise taxes     107       81       464       380  
    Advertising and marketing     237       44       645       223  
    Legal     143       15       651       45  
    Professional fees     260       74       1,924       239  
    ATM network     84       123       557       443  
    Auditing and accounting     130       60       516       240  
    Other     1,539       787       4,165       2,561  
    Total non-interest expense     7,950       3,748       26,469       14,824  
    Income before federal income taxes     3,743       2,480       5,576       9,838  
    Provision for federal income taxes     558       443       873       2,005  
    Net income   $ 3,185     $ 2,037     $ 4,703     $ 7,833  
                     
    Earnings per share                
    Basic   $ 0.41     $ 0.46     $ 0.76     $ 3.56  
    Diluted   $ 0.41     $ 0.46     $ 0.76     $ 3.54  
    MAIN STREET FINANCIAL SERVICES CORP.
    Selected Condensed Consolidated Financial Data
    (Dollars in thousands, except share data – unaudited)
                     
        December   September   June   March
          2024       2024       2024       2024  
                     
    Interest and dividend income   $ 19,138     $ 18,930     $ 12,572     $ 9,694  
    Interest expense     8,531       8,308       6,185       4,641  
    Net interest income     10,607       10,622       6,387       5,053  
    Provision for credit losses     79       109       4,720       (126 )
    Net interest income after provision for credit losses     10,528       10,513       1,666       5,179  
    Non-interest income     1,165       1,600       716       678  
    Non-interest expense     7,950       7,863       6,723       3,934  
    Income before federal income taxes     3,743       4,251       (4,341 )     1,923  
    Provision for federal income taxes     558       804       (873 )     384  
    Net income   $ 3,185     $ 3,446     $ (3,468 )   $ 1,539  
                     
    Earnings per share – basic   $ 0.41     $ 0.44     $ (0.68 )   $ 0.40  
    Earnings per share – diluted   $ 0.41     $ 0.44     $ (0.67 )   $ 0.40  
    Dividends per share   $ 0.14     $ 0.14     $ 0.14     $ 0.14  
    Return on average assets     0.90 %     1.00 %     -1.38 %     0.76 %
    Return on average equity     11.69 %     12.58 %     -17.16 %     11.63 %
    Shares outstanding at quarter end     7,801,011       7,801,011       7,787,055       3,840,575  
    Book value per share   $ 14.18     $ 14.27     $ 13.60     $ 13.81  
    Tangible equity per share   $ 12.13     $ 12.15     $ 11.49     $ 13.36  
                     
                     
        December   September   June   March
          2023       2023       2023       2023  
                     
    Interest and dividend income   $ 9,545     $ 9,078     $ 8,571     $ 7,901  
    Interest expense     4,330       3,673       2,867       2,050  
    Net interest income     5,215       5,405       5,704       5,851  
    Provision for credit losses     4       138       170       218  
    Net interest income after provision for credit losses     5,211       5,267       5,534       5,633  
    Non-interest income     1,017       691       706       603  
    Non-interest expense     3,748       3,733       3,949       3,394  
    Income before federal income taxes     2,480       2,225       2,291       2,842  
    Provision for federal income taxes     443       452       547       563  
    Net income   $ 2,037     $ 1,773     $ 1,744     $ 2,279  
                     
    Earnings per share – basic   $ 0.53     $ 0.46     $ 0.46     $ 0.60  
    Earnings per share – diluted   $ 0.53     $ 0.46     $ 0.45     $ 0.59  
    Dividends per share   $ 0.14     $ 0.14     $ 0.14     $ 0.14  
    Return on average assets     1.02 %     0.91 %     0.92 %     1.23 %
    Return on average equity     16.90 %     14.41 %     14.36 %     19.58 %
    Shares outstanding at quarter end     3,839,702       3,837,609       3,837,085       3,831,939  
    Book value per share   $ 13.80     $ 12.40     $ 12.64     $ 12.51  
    Tangible equity per share   $ 13.35     $ 11.95     $ 12.20     $ 12.06  
    MAIN STREET FINANCIAL SERVICES CORP.
    Non-GAAP reconciliation
    (Dollars in thousands, except per share data – unaudited)
         
      For three months ended   For the twelve months ended
      December,   December,
          2024       2023       2024       2023  
                     
    Net Income as reported – GAAP   $ 3,185     $ 2,037     $ 4,703     $ 7,833  
    Effect of merger related expenses (net of tax benefit)     26       353       5,769       950  
    Net Income non-GAAP   $ 3,211     $ 2,390     $ 10,472     $ 8,783  
                     
    Earnings per share – GAAP   $ 0.41     $ 0.93     $ 0.76     $ 3.56  
    Effect of merger related expenses     0.00       0.16       0.94       0.43  
    Earnings per share non-GAAP   $ 0.41     $ 1.09     $ 1.70     $ 3.99  
                     
    Return on average assets – GAAP     0.90 %     1.02 %     0.41 %     1.02 %
    Effect of merger related expenses     0.01 %     0.18 %     0.50 %     0.12 %
    Return on average assets non-GAAP     0.91 %     1.20 %     0.91 %     1.14 %
                     
    Return on average equity – GAAP     11.69 %     16.90 %     5.58 %     16.27 %
    Effect of merger related expenses     0.09 %     2.93 %     6.84 %     1.97 %
    Return on average equity non-GAAP     11.78 %     19.83 %     12.42 %     18.24 %
                     
    Efficiency Ratio – GAAP     67.54 %     60.14 %     71.87 %     58.42 %
    Effect of merger related expenses     -0.22 %     -5.66 %     -6.73 %     -3.77 %
    Efficiency Ratio non-GAAP     67.32 %     54.48 %     65.14 %     55.07 %

    The MIL Network –

  • MIL-OSI: PLUMAS BANCORP TO ACQUIRE CORNERSTONE COMMUNITY BANCORP

    Source: GlobeNewswire (MIL-OSI)

    RENO, Nev., Jan. 29, 2025 (GLOBE NEWSWIRE) — Plumas Bancorp (“Plumas”) (Nasdaq: PLBC) and Cornerstone Community Bancorp (“Cornerstone”) (OTCPK: CRSB) jointly announce the signing of a definitive merger agreement (the “Agreement”) whereby Plumas will acquire Cornerstone in a stock and cash transaction valued at approximately $64.6 million (the “Transaction”) based on the closing price of $47.76 for Plumas shares on January 28, 2025. On a pro forma consolidated basis, the combined company would have approximately $2.3 billion in assets, $2.0 billion in deposits, $1.5 billion in loans, and operate 19 branches throughout Northern California and Western Nevada.

    Cornerstone, headquartered in Red Bluff, California, is the parent company of Cornerstone Community Bank, a 19-year-old bank with approximately $658 million in assets as of December 31, 2024. Cornerstone Community Bank operates through four branches throughout the Northern California counties of Shasta and Tehama.

    “We are thrilled to announce our merger agreement with Cornerstone,” said Andrew J. Ryback, President and Chief Executive Officer, Plumas Bancorp. “Our companies share a connection to the people and businesses who have built their livelihoods throughout Northern California. Bringing together the team of local experts at Cornerstone Community Bank with Plumas Bank’s technology and small business expertise offers even greater services for the markets we serve. We look forward to providing long-term value to our combined shareholders, clients, team members, and the communities we serve.”

    “We are excited about the opportunity to join forces with Plumas, bringing our banks together to carry on our focus of providing our customers, employees and all of our stakeholders with superior products, services and support,” said Matthew B. Moseley, President and Chief Executive Officer of Cornerstone, who will continue with Plumas following the acquisition. “Gaining access to Plumas’ network of offices and extensive product lines allows us to expand our footprint and offerings beyond the Shasta and Tehama communities we have served for the past 19 years. There are many similarities in our institutions and the small communities we serve. This combination will afford the two organizations the opportunity to utilize our combined years of experience to continue to deliver the outstanding experience our customers have come to expect.”

    Under the terms of the Agreement, each issued and outstanding share of common stock of Cornerstone will be converted into the right to receive 0.6608 shares of common stock of Plumas and $9.75 in cash (subject to adjustment under certain circumstances). Based on the closing price of $47.76 for Plumas shares on January 28, 2025, the Transaction would result in an aggregate consideration of $64.6 million (inclusive of the value to Cornerstone stock option holders) and value of $41.31 per Cornerstone share.

    Giving effect to the merger, Cornerstone shareholders will hold, in the aggregate, approximately 14% of Plumas’ outstanding common stock based on December 31, 2024 data. One current member of the Cornerstone board of directors will join the Plumas board of directors upon the merger.

    Plumas expects the acquisition to be approximately 9% accretive to earnings per share in 2025 and 23% accretive in 2026. Plumas expects dilution to tangible book value per share of approximately 13% at close with a tangible book value earn-back period of less than three years. The boards of directors of Plumas and Cornerstone have approved the proposed merger, which is expected to occur in the second half of 2025 and remains subject to customary closing conditions, including obtaining approval by Cornerstone’s shareholders and bank regulatory authorities.

    Plumas was advised in the Transaction by Raymond James & Associates, Inc. as financial advisor and Sheppard, Mullin, Richter & Hampton LLP as legal counsel. Cornerstone was advised by Performance Trust Capital Partners as financial advisor and Gary Steven Findley & Associates as legal counsel.

    About Plumas Bancorp

    Plumas Bancorp is headquartered in Reno, Nevada. Plumas Bancorp’s principal subsidiary is Plumas Bank, which was founded in 1980. Plumas Bank is a full-service community bank headquartered in Quincy, California. The bank operates fifteen branches: thirteen located in the California counties of Butte, Lassen, Modoc, Nevada, Placer, Plumas, Shasta and Sutter and two branches located in Nevada in the counties of Carson City and Washoe. The bank also operates two loan production offices located in Auburn, California and Klamath Falls, Oregon. Plumas Bank offers a wide range of financial and investment services to consumers and businesses and has received nationwide Preferred Lender status with the United States Small Business Administration. For more information on Plumas Bancorp and Plumas Bank, please visit our website at www.plumasbank.com.

    About Cornerstone Community Bancorp

    Cornerstone Community Bancorp is a bank holding company headquartered in Red Bluff, California and is the parent company for Cornerstone Community Bank, a California state-chartered bank with four locations across the Northern California counties of Shasta and Tehama. Founded in 2006, Cornerstone Community Bank has a proven track record of contributing to the success of the local economies they serve, contributing to the success of the people who live, work, and play in Shasta and Tehama.

    Additional Information About the Proposed Transaction and Where to Find It

    This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.

    Investors and security holders are urged to carefully review and consider each of Plumas’s public filings with the SEC, including but not limited to its Annual Reports on Form 10-K, its Proxy Statements, Current Reports on Form 8-K and Quarterly Reports on Form 10-Q. The documents filed by Plumas with the SEC may be obtained free of charge at Plumas’s website at www.plumasbank.com or at the SEC’s website at www.sec.gov. These documents may also be obtained free of charge from Plumas by requesting them in writing to Plumas Bancorp, 5050 Meadowood Mall Circle, Reno, Nevada 89502; Attention: Shareholder Relations, or by telephone at (775) 786-0907.

    Plumas intends to file a registration statement on Form S-4 with the SEC which will include a proxy statement /prospectus which will be distributed to the shareholders of Cornerstone in connection with their vote on the Transaction. Before making any voting or investment decision, investors and security holders of Cornerstone are urged to carefully read the entire proxy statement/prospectus, when it becomes available, as well as any amendments or supplements, because it will contain important information about the proposed Transaction. Investors and security holders will be able to obtain the proxy statement/prospectus free of charge from the SEC’s website or from Plumas by writing to the address provided in the preceding paragraph.

    The directors, executive officers and certain other members of management and employees at Cornerstone and Plumas may be deemed participants in the solicitation of proxies in favor of the Transaction. Information about the directors and executive officers of Cornerstone will be included in the proxy statement/prospectus regarding the proposed Transaction. Information regarding Plumas’s directors and executive officers is available in Plumas’s definitive proxy statement for its 2024 annual meeting of shareholders filed with the SEC on April 4, 2024, which is available free of charge from Plumas upon request as described above.

    Cautionary Note Regarding Forward-Looking Statements

    This release contains forward-looking statements regarding Plumas Bancorp (“Plumas”), Cornerstone Community Bancorp (“Cornerstone”) and the combined company and the proposed merger that are forward-looking statements subject to the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include but are not limited to plans, expectations, projections and statements about the benefits of the proposed merger, the timing of completion of the merger, and other statements that are not historical facts. Forward-looking statements involve risks and uncertainties that are difficult to predict. Factors that could cause or contribute to results differing from those in or implied in the forward-looking statements include but are not limited to the occurrence of any event, change or other circumstances that could give rise to the right of Plumas or Cornerstone to terminate the merger agreement; the outcome of any legal proceedings that may be instituted against Plumas or Cornerstone; delays in completing the merger; the failure to obtain necessary regulatory approvals (and the risk that such approvals impose conditions that could adversely affect the combined company or the expected benefits of the merger); the failure of Cornerstone to obtain shareholder approval or Plumas or Cornerstone to satisfy any of the other conditions to the merger on a timely basis or at all; the ability to complete the merger and integration of Plumas and Cornerstone successfully; costs being greater than anticipated; cost savings being less than anticipated; changes in economic conditions; the risk that the merger disrupts the business of the Plumas, Cornerstone or both; difficulties in retaining senior management, employees or customers; and other factors that may affect the future results of Plumas or Cornerstone. Further information regarding Plumas’s risk factors is contained in Plumas’s filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2023. Forward-looking statement made in this release speak only as of the date of this release. Neither Plumas nor Cornerstone undertake any obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

    Investor Relations Contact:

    Jamie Huynh
    AVP, Assistant Corporate Secretary and Investor Relations Coordinator
    Plumas Bank
    Phone: 530.283.7305 ext. 8908
    Email: jamie.huynh@plumasbank.com

    The MIL Network –

  • MIL-OSI: ES Bancshares, Inc. Announces Fourth Quarter 2024 Results; Continues Trend of Net Interest Margin Expansion and Asset Quality

    Source: GlobeNewswire (MIL-OSI)

    STATEN ISLAND, N.Y., Jan. 29, 2025 (GLOBE NEWSWIRE) — ES Bancshares, Inc. (OTCQX: ESBS) (the “Company”) the holding company for Empire State Bank, (the “Bank”) today reported net income of $466 thousand, or $0.03 per diluted common share, for the quarter ended December 31, 2024, compared to a net income of $582 thousand or $0.08 per diluted common share for the quarter ended September 30, 2024.

     
    Key Quarterly Financial Data 2024 Highlights
    Performance Metrics   4Q24     3Q24     4Q23   •The Cost of Funds for the three months ended December 31, 2024, improved to 3.02% from 3.02% in the prior linked quarter.

    •For 3 months ended December 31, 2024, the Company’s net interest margin increased to 2.50% compared to 2.30% for the 3 months ended September 30, 2024.

    •The Company sold $3 million in SBA 7a loan during the quarter, resulting in a gain on loan sale.

    •The Company has replaced $56 million of higher-costing wholesale funding with lower cost organic deposits over the nine-months in 2024.

    •Total Revenues for the quarter ended December 31, 2024, totaled $8.4 million increasing for a second consecutive quarter.
    Return on average assets (%)   0.29     0.36     0.05  
    Return on average equity (%)   3.94     4.98     0.73  
    Return on average tangible equity (%)   3.99     5.04     0.74  
    Net interest margin (%)   2.50     2.30     2.28  
                       
    Income Statement (a)   4Q24     3Q24     4Q23  
    Net interest income $ 3,876   $ 3,567   $ 3,454  
    Non-interest income $ 372   $ 609   $ 322  
    Net income $ 466   $ 582   $ 84  
    Earnings per diluted common share $ 0.03   $ 0.08   $ 0.01  
                       
    Balance Sheet (a)   4Q24     3Q24     4Q23  
    Average total loans $ 566,031   $ 566,031   $ 569,515  
    Average total deposits $ 512,120   $ 512,120   $ 470,394  
    Book value per share $ 6.89   $ 6.85   $ 6.83  
    Tangible book value per share $ 6.81   $ 6.77   $ 6.74  
    (a) In thousands except for per share amounts              
                   

    Phil Guarnieri, Director, and Chief Executive Officer of ES Bancshares said, “We ended 2024 with positive trends over the last two quarters. The downward turn in interest rates has bolstered our net interest income. The Company’s net interest margin increased by twenty basis points, demonstrating growth for the past three quarters. This coupled with our cost containment program has bolstered our core earnings. The Company’s balance sheet and capital position remain a strength for our Company.”

    Selected Balance Sheet Information:

    December 31, 2024 vs. December 31, 2023

    As of December 31, 2024, total assets were $636.6 million, a decrease of $2.1 million, or 0.3%, as compared to total assets of $638.7 million on December 31, 2023. The decrease can be attributed to a slightly smaller loan portfolio.

    Loans receivable, net of Allowance for Credit Losses on Loans totaled $559.3 million, a decrease of 0.8% from December 31, 2023. As of December 31, 2024, the Allowance for Credit Losses on Loans as a percentage of gross loans was 0.91%.

    Nonperforming assets, which includes nonaccrual loans and foreclosed real estate were $5.3 million or 0.84% of total assets, as of December 31, 2024, increasing from $1.4 million or 0.22% of total assets at December 31, 2023. The ratio of nonaccrual loans to loans receivable was 0.94%, as of December 31, 2024, and 0.22% for December 31, 2023. The increase from December 31, 2023, was primarily due to one Commercial Real Estate and one 1-4 family investor loan being placed on non-accrual status. Both loans are deemed to be well collateralized and in total amount to $4.0 million.

    Total liabilities decreased $3.8 million to $589.1 million at December 31, 2024 from $592.9 million at December 31, 2023. The decrease can be attributed to repayments of brokered deposits and Federal Home Loan (FHLB) borrowings partially offset by growth in core deposits. The growth in deposits was driven by an increase in interest-bearing, non-maturity deposit accounts, as well as interest-bearing deposits.

    As of December 31, 2024, the Bank’s Tier 1 capital leverage ratio, common equity tier 1 capital ratio, Tier 1 capital ratio and total capital ratios were 9.31%, 13.68%, 13.68% and 14.93%, respectively, all in excess of the ratios required to be deemed “well-capitalized.” During the Fourth quarter 2024 the Company did not repurchase shares under its stock repurchase program. Book value per common share was $6.89 at December 31, 2024 compared to $6.83 at December 31, 2023. Tangible common book value per share (which represents common equity less goodwill, divided by the number of shares outstanding) was $6.81 at December 31, 2024 compared to $6.74 at December 31, 2023.

    Financial Performance Overview:

    Three Months Ended December 31, 2024, vs. September 30, 2024

    For the three months ended December 31, 2024, the Company net income totaled $466 thousand compared to a net income of $582 thousand for the three months ended September 30, 2024. The decrease can be attributed to lower non-interest income and non-interest expense, partially offset by higher net interest income quarter over quarter.

    Net interest income for the three months ended December 31, 2024, increased $309 thousand, to $3.9 million from $3.6 million at three months ended September 30, 2024. The Company’s net interest margin widened by nine basis points to 2.50% for the three months ended December 31, 2024, as compared to 2.30% for the three months ended September 30, 2024. The increase in margin can be attributed to a reduction in the Company’s average cost for its interest-bearing liabilities.

    There was a $2 thousand provision for credit losses taken for the three months ended December 31, 2024, compared to a reversal for credit losses of $38 thousand for the three months ended September 30, 2024.

    Non-interest income decreased $237 thousand, to $372 thousand for the three months ended December 31, 2024, compared with non-interest income of $609 thousand for the three months ended September 30, 2024. The majority of the decrease can be attributed to lower service charges and fees and no gain on extinguishment of the Company’s subordinated debt, partially offset by the gain on loan sales.

    Non-interest expenses totaled $3.6 million for the three months ended December 31, 2024, compared to $3.4 million for the three months ended September 30, 2024. The largest fluctuations quarter over quarter were due to a $154 thousand increase in other expenses, due to a lack of a recovery of collection expenses that we realized in the September 2024 quarter, an increase in employment search fees, and other expenses. The $92 thousand increase in professional fees, due to higher legal and consulting fees as compared to the quarter ended September 30, 2024.

    Twelve months ended December 31, 2024 vs. December 31, 2023

    For the twelve months ended December 31, 2024, net income totaled $1.1 million in comparison to $1.5 million for the twelve months ended December 31, 2023. The decrease can mainly be attributed to higher costs paid on deposits which increased $5.1 million year over year.

    Net interest income for the twelve months ended December 31, 2024, decreased 11% or $1.8 million, to $14.1 million from $15.9 million at December 31, 2023. The decrease can be attributed to increased interest expense for deposits, partially offset by increased interest income earned on the loan portfolio.

    Provision for credit losses totaled $12 thousand for the twelve months ended December 31, 2024, compared to a $20 thousand provision for the twelve months ended December 31, 2023.

    Non-interest income totaled $1.2 million for the twelve months ended December 31, 2024, compared with noninterest income of $758 thousand for the twelve months ended December 31, 2023. The increase can be attributed to the gain recorded on extinguishment of sub-debt which is partially offset by decreased in gain on sale of loans period over period.

    Operating expenses totaled $14.0 million for the twelve months ended December 31, 2024, compared to $15.0 million for the twelve months ended December 31, 2023, or a decrease of 7.1%. The decrease in non-interest expense can be attributed to initiatives taking effect from the cost-cutting program launched in 2024.

    About ES Bancshares Inc.
    ES Bancshares, Inc. (the “Company”) is incorporated under Maryland law and serves as the holding company for Empire State Bank (the “Bank”). The Company is subject to regulation by the Board of Governors of the Federal Reserve System while the Bank is primarily subject to regulation and supervision by the New York State Department of Financial Services. Currently, the Company does not transact any material business other than through the Bank, its subsidiary.

    The Bank was organized under federal law in 2004 as a national bank regulated by the Office of the Comptroller of the Currency. The Bank’s deposits are insured up to legal limits by the FDIC. In March 2009, the Bank converted its charter to a New York State commercial bank charter. The Bank’s principal business is attracting commercial and retail deposits in New York and investing those deposits primarily in loans, consisting of commercial real estate loans, and other commercial loans including SBA and mortgage loans secured by one-to-four-family residences. In addition, the Bank invests in mortgage-backed securities, securities issued by the U.S. Government and agencies thereof, corporate securities and other investments permitted by applicable law and regulations.

    We operate from our five Banking Center locations, a Loan Production Office and our Corporate Headquarters located in Staten Island, New York. The Company’s website address is www.esbna.com. The Company’s annual report, quarterly earnings releases and all press releases are available free of charge through its website, as soon as reasonably practicable.

    Forward-Looking Statements

    This release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained in this release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as “may”, “will”, “expect”, “believe”, “anticipate”, “estimate” or “continue” or comparable terminology, are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within ES Bancshares, Inc’s. control. The forward-looking statements included in this release are made only as of the date of this release. We have no intention, and do not assume any obligation, to update these forward-looking statements.

    Investor Contact:
    Peggy Edwards, Corporate Secretary
    (845) 451-7825

     
    ES Bancshares, Inc.
    Consolidated Statements of Financial Condition
    (in thousands)
        December 31,   December 31,
    2024   2023
        |—-(unaudited)—-|    
    Assets        
    Cash and cash equivalents $ 26,713     32,728  
    Securities, net   22,336     15,220  
    Loans receivable, net:        
    Real estate mortgage loans   545,569     551,124  
    Commercial and Lines of Credit   14,418     13,301  
    Home Equity and Consumer Loans 398     349  
    Deferred costs   4,084     4,233  
    Allowance for Loan Credit Losses (5,137 )   (5,086 )
    Total loans receivable, net   559,330     563,920  
    Accrued interest receivable   2,628     2,625  
    Investment in restricted stock, at cost   4,335     5,191  
    Goodwill   581     581  
    Bank premises and equipment, net   4,845     5,600  
    Repossessed assets   –     –  
    Right of use lease assets   5,894     6,415  
    Bank Owned Life Insurance   5,489     5,341  
    Other Assets   4,471     1,129  
    Total Assets $ 636,622     638,750  
             
    Liabilities & Stockholders’ Equity        
    Non-Interest-Bearing Deposits   133,268     109,065  
    Interest-Bearing Deposits   359,816     328,479  
    Brokered Deposits   20,750     56,581  
    Total Deposits   513,834     494,125  
    Bond Issue, net of costs   11,787     13,708  
    Borrowed Money   50,084     70,805  
    Lease Liability   6,172     6,672  
    Other Liabilities   7,195     7,578  
    Total Liabilities   589,071     592,888  
    Stockholders’ equity   47,551     45,862  
    Total liabilities and stockholders’ equity $ 636,622     638,750  
     
       
      ES Bancshares, Inc.
      Consolidated Statements of Income
      (in thousands)
                   
      Three Months Ended   Twelve Months Ended
      December 31, 2024 September 30, 2024   December 31, 2023   December 31, 2024 December 31, 2023
      |————–(unaudited)————–|   |—-(unaudited)—-|
    Interest income              
    Loans $ 7,405 $ 7,315     $ 7,059     $ 29,273 $ 26,343
    Securities   224   218       110       678   446
    Other interest-earning assets   373   428       278       1,624   1,418
    Total Interest Income   8,002   7,961       7,447       31,576   28,207
    Interest expense              
    Deposits   3,436   3,674       2,945       14,531   9,052
    Borrowings   690   720       1,048       2,950   3,268
    Total Interest Expense   4,126   4,394       3,993       17,482   12,320
    Net Interest Income   3,876   3,567       3,454       14,094   15,887
    (Rev)Prov for Credit Losses   2   (38 )     (83 )     12   20
    Net Interest Income after (Rev)Prov for Credit Losses   3,874   3,605       3,537       14,082   15,867
    Non-interest income              
    Service charges and fees   192   264       254       828   762
    Gain on loan sales   139   –       30       140   168
    Gain on extinguishment of Sub-debt   –   245       –       245   –
    Other   42   100       38       314   149
    Total non-interest income   372   609       322       1,527   1,080
    Non-interest expenses              
    Compensation and benefits   1,662   1,719       1,745       6,830   7,408
    Occupancy and equipment   618   618       646       2,509   2,656
    Data processing service fees   295   315       357       1,253   1,396
    Professional fees   247   155       357       808   1,104
    FDIC & NYS Banking Assessments   132   100       88       428   272
    Advertising   64   84       101       308   406
    Insurance   56   55       51       208   190
    Other   518   365       405       1,622   1,603
    Total non-interest expense   3,592   3,411       3,750       13,966   15,035
    Income prior to tax expense   654   803       109       1,643   1,912
    Income taxes   188   221       25       539   440
    Net Income $ 466 $ 582     $ 84     $ 1,104 $ 1,472
                   
                       
      ES Bancshares, Inc.
      Average Balance Sheet Data
      For the Three Months Ended (dollars in thousands)
      December 31, 2024 September 30, 2024 June 30, 2024
      Avg Bal Interest Average Avg Bal Interest Average Avg Bal Interest Average
      Rolling Rolling Rolling Rolling Rolling Rolling
    Assets  3 Mos.  3 Mos. Yield/Cost  3 Mos.  3 Mos. Yield/Cost  3 Mos.  3 Mos. Yield/Cost
    Interest-earning assets:                  
    Loans receivable $ 564,745 $ 7,405 5.24 % $ 566,031 $ 7,315 5.17 % $ 569,515 $ 7,059 4.96 %
    Investment securities   22,898   224 3.91 %   22,480   218 3.87 %   15,957   110 2.75 %
    Other interest-earning assets   31,135   373 4.69 %   31,656   428 5.29 %   20,128   278 5.40 %
    Total interest-earning assets   618,778   8,002 5.17 %   620,167   7,961 5.13 %   605,600   7,447 4.92 %
    Non-interest earning assets   18,048       17,919       16,840    
    Total assets $ 636,826     $ 638,086     $ 622,440    
    Liabilities and Stockholders’ Equity                  
    Interest-bearing liabilities:                  
    Interest-bearing checking $ 32,800 $ 27 0.33 % $ 33,512 $ 55 0.65 % $ 25,368 $ 23 0.36 %
    Savings accounts   217,746   1,695 3.09 %   200,248   1,728 3.42 %   123,641   884 2.84 %
    Certificates of deposit   166,368   1,714 4.09 %   173,577   1,891 4.32 %   207,091   2,037 3.90 %
    Total interest-bearing deposits   416,914   3,436 3.27 %   407,337   3,674 3.58 %   356,101   2,945 3.28 %
    Borrowings   50,189   499 3.94 %   52,984   519 3.89 %   76,844   827 4.27 %
    Subordinated debenture   11,784   191 6.43 %   13,726   201 5.81 %   13,705   221 6.41 %
    Total interest-bearing liabilities   478,887   4,126 3.42 %   474,047   4,394 3.68 %   446,649   3,993 3.55 %
    Non-interest-bearing demand deposits   96,011       104,782       114,293    
    Other liabilities   14,580       13,045       15,803    
    Total non-interest-bearing liabilities   110,591       117,827       130,096    
    Stockholders’ equity   47,347       46,211       45,695    
    Total liabilities and stockholders’ equity $ 636,826     $ 638,086     $ 622,440    
    Net interest income   $ 3,874     $ 3,567     $ 3,454  
    Average interest rate spread      1.75 %     1.46 %     1.37 %
    Net interest margin      2.50 %     2.30 %     2.28 %
                       
                       
                   
    Five Quarter Performance Ratio Highlights Three Months Ended
    December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023  
    Performance Ratios (%) – annualized            
    Return(loss) on Average Assets   0.29     0.36     0.10     (0.07 )   0.05  
    Return(loss) on Average Equity   3.94     4.98     1.37     (0.90 )   0.73  
    Return(loss) on Average Tangible Equity   3.99     5.04     1.38     (0.91 )   0.74  
    Efficiency Ratio   84.58     81.70     92.86     101.08     99.31  
    Yields / Costs (%)            
    Average Yield – Interest Earning Assets   5.17     5.13     5.16     5.03     4.92  
    Average Cost – Interest-bearing Liabilities   3.42     3.69     3.86     3.82     3.55  
    Net Interest Margin   2.50     2.30     2.21     2.12     2.28  
    Capital Ratios (%)            
    Equity / Assets   7.47     7.44     7.12     7.34     7.18  
    Tangible Equity / Assets   7.38     7.36     7.03     7.26     7.09  
    Tier I leverage ratio (a)   9.31     9.18     9.30     9.52     9.45  
    Common equity Tier I capital ratio (a)   13.68     13.67     13.81     13.63     13.60  
    Tier 1 Risk-based capital ratio (a)   13.68     13.67     13.81     13.63     13.60  
    Total Risk-based capital ratio (a)   14.93     14.92     15.06     14.88     14.85  
    Stock Valuation            
    Book Value $ 6.89   $ 6.85   $ 6.74   $ 6.75   $ 6.83  
    Tangible Book Value $ 6.81   $ 6.77   $ 6.65   $ 6.67   $ 6.74  
    Shares Outstanding (b)   6,900     6,878     6,884     6,834     6,714  
    Asset Quality (%)            
    ACL / Total Loans   0.91     0.90     0.90     0.89     0.89  
    Non Performing Loans / Total Loans   0.94     0.91     0.22     0.24     0.22  
    Non Performing Assets / Total Assets   0.84     0.81     0.19     0.21     0.22  
                   
    (a) Ratios at Bank level                            (b) Shares information presented in thousands        
                   

    The MIL Network –

  • MIL-OSI: Safe Harbor Financial Commences CEO Succession and Strategic Planning Initiative

    Source: GlobeNewswire (MIL-OSI)

    Sundie Seefried to Immediately Become Co-CEO and Retire in 30 Days; Will Remain on Board of Directors Post-Transition

    Business Transformation Expert, Terry Mendez, Appointed Co-CEO; Will Become CEO Upon Retirement of Seefried

    GOLDEN, Colo., Jan. 29, 2025 (GLOBE NEWSWIRE) — SHF Holdings, Inc., d/b/a Safe Harbor Financial (“Safe Harbor” or the “Company”) (NASDAQ: SHFS), a fintech leader in facilitating financial services and credit facilities to the regulated cannabis industry, announced today that its current CEO, Sundie Seefried, plans to retire in 30 days. Karl A. Racine, chair of the Safe Harbor’s Nominating and Governance Committee, has been overseeing due diligence activities and advising the executive team and the Governance Committee to evaluate both internal and external candidates as part of the process. This strategic approach and review are part of the Company’s long-term growth strategy, ensuring that Safe Harbor continues to maximize shareholder value and executes its strategic vision.

    Sundie Seefried will serve as co-CEO throughout this transition period. The Company signed a three-year executive employment agreement with Terry Mendez to serve as co-CEO and will be appointed CEO upon Seefried’s retirement. Post-transition, Seefried will remain on the Board of Directors.

    During the transition, Mendez will work closely with Safe Harbor’s leadership team and Board of Directors to capture opportunities for innovation and growth, while Seefried will focus on achieving operational continuity. Seefried and Mendez will be the key decision-makers, ensuring that all strategic recommendations are evaluated and presented to the Board, as needed, for approval.

    “We remain committed to thoughtful succession planning and long-term strategic growth, with the goal of capitalizing on optimizing our market position,” said Sundie Seefried, co-CEO of Safe Harbor Financial. “Terry’s experience in business expansion, transformation and strategic advisory will provide a valuable perspective as we explore ways to enhance our operations and maximize shareholder value. I look forward to working closely with him.”

    “At a time when most financial institutions were unwilling to work with the cannabis industry, Safe Harbor emerged as a pioneer, providing essential banking and financial services to the sector for the past decade. We are now looking at the challenges currently facing the industry and determining how we can leverage our people to develop technology that delivers trusted solutions to the marketplace,” said Terry Mendez, co-CEO of Safe Harbor Financial. “I look forward to diving into the business, learning from Sundie and partnering with my fellow operators to deliver value for our shareholders.”

    Terry Mendez brings extensive experience in strategic planning and operational transformation within the information technology and cannabis industries. In his role as founder of Amos Advisory Solutions, Mr. Mendez served as the CEO of both single-state and multi-state cannabis operators successfully leading turnaround efforts. Terry began his career in public accounting with Arthur Andersen and Deloitte & Touche. Previously, he served as the vice president of Finance and global chief accounting officer for Hitachi Vantara, a subsidiary of Hitachi, overseeing 52 countries.

    About Safe Harbor
    Safe Harbor is among the first service providers to offer compliance, monitoring and validation services to financial institutions, providing traditional banking services to cannabis, hemp, CBD, and ancillary operators, making communities safer, driving growth in local economies, and fostering long-term partnerships. Safe Harbor, through its financial institution clients, implements high standards of accountability, transparency, monitoring, reporting and risk mitigation measures while meeting Bank Secrecy Act obligations in line with FinCEN guidance on cannabis-related businesses. Over the past decade, Safe Harbor has facilitated more than $25 billion in deposit transactions for businesses with operations spanning over 41 states and US territories with regulated cannabis markets. For more information, visit www.shfinancial.org.

    Cautionary Statement Regarding Forward-Looking Statements
    Certain information contained in this press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included herein may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Forward-looking statements may include, but are not limited to, statements with respect to trends in the cannabis industry, including proposed changes in U.S and state laws, rules, regulations and guidance relating to Safe Harbor’s services; Safe Harbor’s growth prospects and Safe Harbor’s market size; Safe Harbor’s projected financial and operational performance, including relative to its competitors and historical performance; new product and service offerings Safe Harbor may introduce in the future; the impact volatility in the capital markets, which may adversely affect the price of Safe Harbor’s securities; the outcome of any legal proceedings that may be instituted against Safe Harbor; and other statements regarding Safe Harbor’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “outlook,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Safe Harbor’s filings with the U.S. Securities and Exchange Commission. Safe Harbor undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

    Contact Information
    Safe Harbor Investor Relations
    ir@SHFinancial.org

    KCSA Strategic Communications
    Ellen Mellody
    safeharbor@kcsa.com

    The MIL Network –

  • MIL-OSI: TAB Bank Expands Lender Finance Portfolio with $12 Million Deal for Steel Capital Management

    Source: GlobeNewswire (MIL-OSI)

    OGDEN, Utah, Jan. 29, 2025 (GLOBE NEWSWIRE) — TAB Bank announces the addition of Steel Capital Management, a New York City-based finance company specializing in e-commerce solutions, to its portfolio of Lender Finance clients. TAB Bank has extended a $12 million credit facility to support Steel Capital Management as they provide capital solutions to accelerate growth for Direct-to-Consumer (DTC) companies.

    Steel Capital Management selected TAB Bank because of its expertise in lender finance, flexible financing structures, competitive cost of capital and scalability. The $12 million credit facility will provide Steel Capital Management with the working capital to continue scaling its business and supporting its clients.

    “TAB Bank is looking forward to helping Steel Capital Management continue driving growth and innovation in the e-commerce space by providing a flexible and scalable financing structure,” said Jerry Clinton, Managing Director of Corporate Underwriting at TAB Bank. “Our ability to tailor loans to fit a company’s market and unique needs demonstrates our mission—unlocking dreams with bold financial solutions that lift and empower.”

    Based in New York City, Steel Capital Management was born out of the necessity to help early to mid-stage consumer brands grow by providing alternative financing options. The firm understands recurring industry problems—seasonality, stale inventory, shipping and fulfillment backlogs, and marketing channels changing how they operate—and aims to tailor its investments to address them.

    “TAB Bank has been a pleasure to work with throughout the due diligence, documentation and closing process,” said Michael Hoffman, co-CEO of Steel Capital Management. “The TAB Bank team’s willingness to fit our flexible financing needs demonstrated their commitment to building a long and successful partnership with Steel Capital. We’re confident we’ve found the right partner to continue Steel’s growth.”

    TAB Bank is committed to empowering businesses with innovative financial solutions, including term loans, lines of credit and accounts receivable financing. By tailoring its offerings to fit each client’s specific needs, TAB Bank ensures consistent cash flow and growth opportunities for small and midsize businesses nationwide.

    About TAB Bank
    At TAB Bank, our mission is to unlock dreams with bold financial solutions that empower individuals and businesses nationwide. We are committed to making financial success accessible to everyone through our innovative banking products. Our dedication drives us to continuously improve, ensuring that we meet the evolving needs of our clients with excellence and agility. For over 25 years, we have remained steadfast in offering tailored, technology-enabled solutions designed to simplify and enhance the banking experience. 

    For more information about how we can help you achieve your financial dreams, visit www.TABBank.com.

    Contact Information:
    Trevor Morris
    Director of Marketing
    801-624-5172
    trevor.morris@tabbank.com

    The MIL Network –

  • MIL-OSI Economics: kersten-anlageberatung.de: BaFin warns consumers about website and renewed identity fraud

    Source: Bundesanstalt für Finanzdienstleistungsaufsicht – In English

    The financial supervisory authority BaFin warns offers from the website kersten-anlageberatung.de. The website is almost identical to kersten-anlageberatung.com, which BaFin already warned against on 17 January 2025. BaFin expressly points out that the licensed securities institution Kersten Anlageberatung GmbH contrary to the information in the imprint does not operate the website kersten-anlageberatung.de either. This is yet another case of identity theft.

    Anyone providing financial or investment services in Germany may do so only with authorisation from BaFin. However, some companies offer these services without the necessary authorisation.

    The information provided by BaFin is based on section 37 (4) of the German Banking Act (Kreditwesengesetz – KWG).

    Please be aware:

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

    MIL OSI Economics –

  • MIL-OSI: Blue Foundry Bancorp Reports Fourth Quarter and Year-End 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    RUTHERFORD, N.J., Jan. 29, 2025 (GLOBE NEWSWIRE) — Blue Foundry Bancorp (NASDAQ:BLFY) (the “Company”), the holding company for Blue Foundry Bank (the “Bank”), reported a net loss of $11.9 million, or $0.55 per diluted common share, for the year ended December 31, 2024 compared to a net loss of $7.4 million, or $0.31 per diluted common share for the year ended December 31, 2023.

    The Company reported a net loss of $2.7 million, or $0.13 per diluted common share, for the three months ended December 31, 2024 compared to a net loss of $4.0 million, or $0.19 per diluted common share for the three months ended September 30, 2024, and a net loss of $2.9 million, or $0.13 per diluted common share for the three months ended December 31, 2023.

    James D. Nesci, President and Chief Executive Officer, commented, “We are very pleased with both the deposit and loan growth achieved in the fourth quarter and look to carry this positive momentum into 2025.”

    Mr. Nesci also noted, “Credit quality remained strong and we continue to experience very low charge-offs. Our allowance to credit losses to total loans is 83 basis points and covers non-performing loans by over 2.5 times.”

    Highlights for the fourth quarter of 2024:

    • Loans totaled $1.58 billion, an increase of $32.5 million from the prior quarter end.
    • Deposits increased $24.7 million to $1.34 billion compared to the prior quarter.
    • Uninsured deposits to third-party customers totaled approximately 11% of total deposits at December 31, 2024.
    • Interest income for the quarter was $21.8 million, an increase of $253 thousand, or 1.2%, compared to the prior quarter.
    • Interest expense for the quarter was $12.3 million, a decrease of $133 thousand, or 1.1%, compared to the prior quarter.
    • Net interest margin increased seven basis points from the prior quarter to 1.89%.
    • The release of provision for credit losses of $301 thousand was primarily due to the decrease in unused lines of credit and releases of provision for loans of $37 thousand and for securities of $24 thousand.
    • Tangible book value per share was $14.74. See the “Supplemental Information – Non-GAAP Financial Measures” tables below for additional information regarding our non-GAAP measures.
    • 480,851 shares were repurchased under our share repurchase plans at a weighted average share price of $10.49 per share.
    • Credit metrics remained favorable with non-performing loans to total loans of 0.33%.

    Loans

    The Company continues to diversify its lending portfolio by focusing on growing the higher-yielding commercial portfolio. Gross loans increased $22.8 million during 2024 with increases in commercial real estate loans, construction loans, consumer and other loans, commercial and industrial loans and junior liens of $27.1 million, $25.1 million, $7.2 million, $4.5 million and $2.9 million, respectively, offset in part by reductions in the residential portfolio of $32.7 million and multifamily portfolio of $11.4 million.

    The details of the loan portfolio are below:

        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
        (Unaudited)   (Audited)
        (In thousands)
    Residential   $ 518,243   $ 516,754   $ 526,453   $ 540,427   $ 550,929
    Multifamily     671,116     666,304     671,185     671,011     682,564
    Commercial real estate     259,633     241,711     241,867     244,207     232,505
    Construction and land     85,546     80,081     71,882     63,052     60,414
    Junior liens     25,422     24,174     23,653     22,052     22,503
    Commercial and industrial     16,311     14,228     12,261     13,372     11,768
    Consumer and other     7,211     7,731     83     56     47
    Total loans     1,583,482     1,550,983     1,547,384     1,554,177     1,560,730
    Allowance for credit losses on loans     12,965     13,012     13,027     13,749     14,154
    Loans receivable, net   $ 1,570,517   $ 1,537,971   $ 1,534,357   $ 1,540,428   $ 1,546,576


    Deposits

    At December 31, 2024, total deposits were $1.34 billion, an increase of $98.4 million or 7.91% from December 31, 2023, mostly due to the increases of $110.7 million and $8.4 million in time deposits and NOW and demand accounts, partially offset by decreases in savings and non-interest bearing deposits of $19.0 million and $1.7 million, respectively. The Company’s strategy is to focus on attracting the full banking relationship of small- to medium-sized businesses through an extensive suite of deposit products. While there is strong competition for deposits in the northern New Jersey market, we were able to increase customer deposits by $78.0 million, or 7.0%, during the year. Brokered deposits increased $30.0 million since year end 2023.

    The details of deposits are below:

        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
        (Unaudited)   (Audited)
        (In thousands)
    Non-interest bearing deposits   $ 26,001   $ 22,254   $ 24,733   $ 25,342   $ 27,739
    NOW and demand accounts     369,554     357,503     368,386     373,172     361,139
    Savings     240,426     237,651     246,559     250,298     259,402
    Core deposits     635,981     617,408     639,678     648,812     648,280
    Time deposits     707,339     701,262     671,478     642,372     596,624
    Total deposits   $ 1,343,320   $ 1,318,670   $ 1,311,156   $ 1,291,184   $ 1,244,904


    Financial Performance Overview:            

    Fourth quarter of 2024 compared to the third quarter of 2024

    Net interest income compared to the third quarter of 2024:

    • Net interest income was $9.5 million for the fourth quarter of 2024 compared to $9.1 million for the third quarter of 2024, an increase of $386 thousand.
    • Net interest margin increased by seven basis points to 1.89%.
    • The yield on average interest-earning assets increased five basis points to 4.37%, while the cost of average interest-bearing liabilities decreased six basis points to 2.97% due to a decrease in rates paid on time deposits.
    • Average interest-earning assets increased by $10.1 million and average interest-bearing liabilities increased by $15.4 million.

    Non-interest income compared to the third quarter of 2024:

    • Non-interest income increased $33 thousand primarily due to increase in fees and service charges.

    Non-interest expense compared to the third quarter of 2024:

    • Non-interest expense decreased $386 thousand primarily driven by decreases of $363 thousand in compensation and benefits expenses, $76 thousand in professional fees and $36 thousand in occupancy and equipment, partially offset by an increase in data processing expense of $102 thousand.

    Income tax expense compared to the third quarter of 2024:

    • The Company did not record a tax benefit for the losses incurred during the third or fourth quarter of 2024 due to the full valuation allowance required on its deferred tax assets.
    • The Company’s current tax position reflects the full valuation allowance on its deferred tax assets. At December 31, 2024, the valuation allowance on deferred tax assets was $25.1 million.

    Fourth quarter of 2024 compared to the fourth quarter of 2023

    Net interest income compared to the fourth quarter of 2023:

    • Net interest income was $9.5 million, an increase of $277 thousand.
    • Net interest margin increased five basis point to 1.89%.
    • Yield on average interest-earning assets increased 31 basis points to 4.37%.
    • Cost of average interest-bearing deposits increased 38 basis points to 2.90%, reflecting the competitive rate environment in our primary market.
    • Average loans increased by $7.5 million and average interest-bearing deposits increased by $94.2 million.

    Non-interest income compared to the fourth quarter of 2023:

    • Non-interest income decreased $152 thousand, or 26.57%. The prior year period included gains on sales of loans and securities that were not present in the current period. In addition, there was a decline in fees and service charges from the prior period.

    Non-interest expense compared to the fourth quarter of 2023:

    • Non-interest expense was $12.9 million, an increase of $338 thousand driven by increases in professional services expense, compensation and benefit costs and occupancy and equipment expense of $106 thousand, $56 thousand and $54 thousand, respectively, partially offset by a decrease in advertising expense of $39 thousand. In addition, other expense increased $131 thousand when compared to the fourth quarter of 2023 due in part to increases in business development and postage expenses.

    Income tax expense compared to the fourth quarter of 2023:

    • The Company did not record a tax benefit for the loss incurred during the fourth quarter of 2024 or 2023 due to the full valuation allowance required on its deferred tax assets.
    • The Company’s current tax position reflects the full valuation allowance on its deferred tax assets. At December 31, 2024, the valuation allowance on deferred tax assets was $25.1 million.

    Year ended December 31, 2024 compared to the year ended December 31, 2023

    Net interest income compared to the year ended December 31, 2023:

    • Net interest income was $37.6 million, a decrease of $4.4 million.
    • Net interest margin decreased by 19 basis points to 1.90%.
    • Yield on average interest-earning assets increased 38 basis points to 4.32%.
    • Cost of average interest-bearing deposits increased 92 basis points to 2.89%, due to an increase in higher-cost time deposits and the competitive rate environment in our primary market.
    • Average loans decreased by $16.4 million and average interest-bearing deposits increased by $52.6 million.

    Non-interest income compared to the year ended December 31, 2023:

    • Non-interest income decreased $11 thousand, or 0.61%, largely due to the lack of gain on sale of loans and securities, offset in part by a gain on sale of an REO property in 2024.

    Non-interest expense compared to the year ended December 31, 2023:

    • Non-interest expense was $52.6 million, an increase of $1.0 million, primarily driven by increases in compensation and benefits of $994 thousand, occupancy and equipment of $528 thousand and FDIC premiums of $56 thousand, offset in part by decreases in data processing expense and professional services of $471 thousand and $118 thousand, respectively.

    Income tax expense compared to the year ended December 31, 2023:

    • The Company did not record a tax benefit for the loss incurred during 2024 or 2023 due to the full valuation allowance required on its deferred tax assets.
    • The Company’s current tax position reflects the previously established full valuation allowance on its deferred tax assets. At December 31, 2024, the valuation allowance on deferred tax assets was $25.1 million.

    Balance Sheet Summary:

    December 31, 2024 compared to December 31, 2023

    Securities available-for-sale:

    • Securities available-for-sale increased $13.3 million to $297.0 million due to purchases and a $3.3 million improvement in the unrealized loss position on the portfolio, partially offset by amortization, maturities and calls during the year.

    Other investments:

    • Other investments decreased during 2024 by $2.6 million due to a decrease in FHLB stock as a result of a reduction in FHLB borrowings.

    Total loans:

    • Gross loans held for investment increased $22.8 million to $1.58 billion.
    • Commercial real estate loans increased $27.1 million, construction loans increased $25.1 million, consumer and other category increased $7.2 million and commercial and industrial loans increased $4.5 million, while residential and multifamily loans decreased $32.7 million and $11.4 million, respectively.
    • Loan fundings totaled $108.4 million, including fundings of $35.7 million in commercial real estate loans, $33.7 million in construction loans, $12.2 million in multifamily loans and $11.2 million in commercial and industrial loans. In addition, the Company purchased $21.6 million of conforming residential mortgages in New Jersey and participated in a consumer loan participation of $8.0 million during the year.

    Deposits:

    • Deposits totaled $1.34 billion, an increase of $98.4 million since December 31, 2023, largely the result of increases in customer deposits.
    • Core deposits (defined as non-interest bearing checking, NOW and demand accounts and savings accounts) represented 47.3% of total deposits compared to 48.8% at December 31, 2023, as time deposits increased $110.7 million.
    • The increase in time deposits include $30.0 million in brokered deposits, bringing our total brokered deposit balance to $155.0 million at December 31, 2024.
    • Uninsured and uncollateralized deposits to third-party customers were $147.6 million, or 11% of total deposits, at the end of the fourth quarter.

    Borrowings:

    • FHLB borrowings decreased by $58.0 million to $339.5 million as we were able to pay off short-term borrowings with deposit growth that outpaced asset growth.
    • As of December 31, 2024, the Company had $270.6 million of additional borrowing capacity at the FHLB, $107.7 million in secured lines of credit at the Federal Reserve Bank and $30.0 million of other unsecured lines of credit.

    Capital:

    • Shareholders’ equity decreased by $23.4 million to $332.2 million. The decrease was primarily driven by the repurchase of shares at a cost of $19.4 million. Additionally, the year-to-date loss, partially offset by favorable changes in accumulated other comprehensive income, also contributed to the decrease.
    • Tangible equity to tangible assets was 16.11% and 17.37% at December 31, 2024 and 2023, respectively.
    • Tangible common equity per share outstanding was $14.74 at December 31, 2024 and $14.49 at December 31, 2023.
    • The Bank’s capital ratios remain above the FDIC’s “well capitalized” standards.

    Asset quality:

    • The allowance for credit losses on loans represented 0.83% of total loans at December 31, 2024 compared to 0.91% at December 31, 2023. The allowance for credit losses on loans was 254.02% of non-performing loans compared to 239.98% at December 31, 2023.
    • The Company recorded a release of provision for credit losses of $301 thousand for the fourth quarter of 2024 and a release of provision for credit losses of $1.4 million for the year ended December 31, 2024. For the fourth quarter of 2024, there was a release of provision of $240 thousand, $37 thousand and $24 thousand in the ACL for off-balance-sheet commitments, loans and held-to-maturity securities, respectively. For the year ended December 31, 2024, there was a release of $1.1 million in the ACL for loans, $146 thousand in the ACL for off-balance-sheet commitments and $60 thousand in the ACL for held-to-maturity securities. The release was driven by the impact of the economic forecasts for the key drivers of our loan segments as well as a decrease in off-balance-sheet commitments.
    • Non-performing loans totaled $5.1 million, or 0.33% of total loans at December 31, 2024 compared to $5.9 million, or 0.38% of total loans at December 31, 2023.
    • Net charge-offs were $10 thousand and $46 thousand for the quarter and year ended December 31, 2024, respectively.

    About Blue Foundry

    Blue Foundry Bancorp is the holding company for Blue Foundry Bank, a place where things are made, purpose is formed, and ideas are crafted. Headquartered in Rutherford NJ, with a presence in Bergen, Essex, Hudson, Middlesex, Morris, Passaic, Somerset and Union counties, Blue Foundry Bank is a full-service, innovative bank serving the doers, movers, and shakers in our communities. We offer individuals and businesses alike the tailored products and services they need to build their futures. With a rich history dating back more than 145 years, Blue Foundry Bank has a longstanding commitment to its customers and communities. To learn more about Blue Foundry Bank visit BlueFoundryBank.com or call (888) 931-BLUE. Member FDIC.

    Conference Call Information

    A conference call discussing Blue Foundry’s fourth quarter and year ended December 31, 2024 financial results will be held today, Wednesday, January 29, 2025 at 11:00 a.m. (EST). To listen to the live call, please dial 1-833-470-1428 (toll free) or +1-404-975-4839 (international) and use access code 168429. Participants are encouraged to preregister to listen via webcast at https://events/q4inc.com/attendee/980680589. The conference call will be recorded and will be available on the Company’s website for one month.

    Contact:

    James D. Nesci
    President and Chief Executive Officer
    jnesci@bluefoundrybank.com
    201-972-8900

    Forward Looking Statements

    Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target” and similar expressions.

    Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: inflation and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase in the level of defaults, losses and prepayments on loans we have made and make; general economic conditions, either nationally or in our market areas, that are worse than expected; changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in our market area; our ability to implement and change our business strategies; competition among depository and other financial institutions; adverse changes in the securities or secondary mortgage markets; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements and insurance premiums; changes in monetary or fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; changes in the quality or composition of our loan or investment portfolios; technological changes that may be more difficult or expensive than expected; a failure or breach of our operational or security systems or infrastructure, including cyber-attacks; the inability of third party providers to perform as expected; our ability to manage market risk, credit risk and operational risk in the current economic environment; our ability to enter new markets successfully and capitalize on growth opportunities; our ability to successfully integrate into our operations any assets, liabilities, customers, systems and management personnel we may acquire and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related there to; changes in consumer spending, borrowing and savings habits; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; our ability to retain key employees; the current or anticipated impact of military conflict, terrorism or other geopolitical events; the ability of the U.S. Government to manage federal debt limits; and changes in the financial condition, results of operations or future prospects of issuers of securities that we own.

    Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results 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.

    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Consolidated Statements of Financial Condition
     
        December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023
        (Unaudited)   (Unaudited)   (Audited)
        (In thousands)
    ASSETS            
    Cash and cash equivalents   $ 42,502   $ 76,109   $ 46,025
    Securities available for sale, at fair value     297,028     290,806     283,766
    Securities held to maturity     33,076     33,119     33,254
    Other investments     17,791     18,203     20,346
    Loans, net     1,570,517     1,537,971     1,546,576
    Real estate owned, net     —     —     593
    Interest and dividends receivable     8,014     8,386     7,595
    Premises and equipment, net     29,486     30,161     32,475
    Right-of-use assets     23,470     24,190     25,172
    Bank owned life insurance     22,519     22,399     22,034
    Other assets     16,280     13,749     27,127
    Total assets   $ 2,060,683   $ 2,055,093   $ 2,044,963
                 
    LIABILITIES AND SHAREHOLDERS’ EQUITY            
    Liabilities            
    Deposits   $ 1,343,320   $ 1,318,670   $ 1,244,904
    Advances from the Federal Home Loan Bank     339,500     348,500     397,500
    Advances by borrowers for taxes and insurance     9,356     9,909     8,929
    Lease liabilities     25,168     25,870     26,777
    Other liabilities     11,141     12,845     11,213
    Total liabilities     1,728,485     1,715,794     1,689,323
    Shareholders’ equity     332,198     339,299     355,640
    Total liabilities and shareholders’ equity   $ 2,060,683   $ 2,055,093   $ 2,044,963
    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Consolidated Statements of Operations
    (Dollars in thousands except per share data)
     
        Three months ended   Year Ended December 31,
        December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		     2024       2023  
        (unaudited)   (Unaudited)   (Audited)
    Interest income:                    
    Loans   $ 17,777     $ 17,646     $ 16,907     $ 70,185     $ 65,685  
    Taxable investment income     3,972       3,850       3,327       15,122       12,990  
    Non-taxable investment income     36       36       101       144       430  
    Total interest income     21,785       21,532       20,335       85,451       79,105  
    Interest expense:                    
    Deposits     9,573       9,712       7,755       36,830       24,116  
    Borrowed funds     2,739       2,733       3,384       11,071       13,070  
    Total interest expense     12,312       12,445       11,139       47,901       37,186  
    Net interest income     9,473       9,087       9,196       37,550       41,919  
    (Release of ) provision for credit losses     (301 )     248       156       (1,350 )     (441 )
    Net interest income after (release of ) provision for credit losses     9,774       8,839       9,040       38,900       42,360  
    Non-interest income:                    
    Fees and service charges     306       272       331       1,203       1,164  
    Gain on securities, net     —       —       20       —       20  
    Gain on sale of loans     —       —       72       36       231  
    Other income     114       115       149       555       390  
    Total non-interest income     420       387       572       1,794       1,805  
    Non-interest expense:                    
    Compensation and benefits     6,943       7,306       6,887       29,433       28,439  
    Occupancy and equipment     2,194       2,230       2,140       8,878       8,350  
    Data processing     1,514       1,412       1,510       5,648       6,119  
    Advertising     81       87       120       292       354  
    Professional services     737       813       631       2,903       3,021  
    Federal deposit insurance premiums     226       236       200       855       799  
    Other expense     1,186       1,183       1,055       4,596       4,480  
    Total non-interest expenses     12,881       13,267       12,543       52,605       51,562  
    Loss before income tax expense     (2,687 )     (4,041 )     (2,931 )     (11,911 )     (7,397 )
    Income tax expense     —       —       —       —       —  
    Net loss   $ (2,687 )   $ (4,041 )   $ (2,931 )   $ (11,911 )   $ (7,397 )
    Basic loss per share   $ (0.13 )   $ (0.19 )   $ (0.13 )   $ (0.55 )   $ (0.31 )
    Diluted loss per share   $ (0.13 )   $ (0.19 )   $ (0.13 )   $ (0.55 )   $ (0.31 )
    Weighted average shares outstanding-basic     20,826,845       21,263,482       22,845,252       21,477,429       23,925,724  
    Weighted average shares outstanding-diluted     20,826,845       21,263,482       22,845,252       21,477,429       23,925,724  
    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Consolidated Financial Highlights
    (Dollars in thousands except for share data) (Unaudited)
     
        Three months ended
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Performance Ratios (%)                    
    Loss on average assets     (0.52 )     (0.79 )     (0.47 )     (0.56 )     (0.57 )
    Loss on average equity     (3.17 )     (4.68 )     (2.71 )     (3.23 )     (3.25 )
    Interest rate spread (1)     1.40       1.29       1.43       1.40       1.33  
    Net interest margin (2)     1.89       1.82       1.96       1.92       1.84  
    Efficiency ratio (non-GAAP) (3)     130.20       140.04       130.73       134.19       128.41  
    Average interest-earning assets to average interest-bearing liabilities     120.84       121.37       122.28       122.50       122.93  
    Tangible equity to tangible assets (4)     16.11       16.50       16.88       17.25       17.37  
    Book value per share (5)   $ 14.75     $ 14.76     $ 14.70     $ 14.61     $ 14.51  
    Tangible book value per share (5)   $ 14.74     $ 14.74     $ 14.69     $ 14.60     $ 14.49  
                         
    Asset Quality                    
    Non-performing loans   $ 5,104     $ 5,146     $ 6,208     $ 6,691     $ 5,898  
    Real estate owned, net     —       —       —       593       593  
    Non-performing assets   $ 5,104     $ 5,146     $ 6,208     $ 7,284     $ 6,491  
    Allowance for credit losses on loans to total loans (%)     0.83       0.84       0.84       0.88       0.91  
    Allowance for credit losses on loans to non-performing loans (%)     254.02       252.86       209.84       205.48       239.98  
    Non-performing loans to total loans (%)     0.33       0.33       0.40       0.43       0.38  
    Non-performing assets to total assets (%)     0.25       0.25       0.30       0.36       0.32  
    Net charge-offs to average outstanding loans during the period (%)     —       —       —       —       —  

    (1) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (2) Net interest margin represents net interest income divided by average interest-earning assets.
    (3) Efficiency ratio represents adjusted non-interest expense divided by the sum of net interest income plus non-interest income.
    (4) Tangible equity equals $332.0 million, which excludes intangible assets ($244 thousand of capitalized software). Tangible assets equal $2.06 billion and exclude intangible assets.
    (5) Per share metrics are computed using 22,522,626 total shares outstanding.

    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Analysis of Net Interest Income
    (Unaudited)
     
        Three Months Ended
        December 31, 2024   September 30, 2024   December 31, 2023
        Average Balance   Interest   Average
    Yield/Cost    		   Average Balance   Interest   Average
    Yield/Cost    		   Average Balance   Interest   Average
    Yield/Cost
        (Dollars in thousands)
    Assets:                                    
    Loans (1)   $ 1,557,342   $ 17,777   4.57 %   $ 1,548,962   $ 17,646   4.53 %   $ 1,564,800   $ 16,907   4.29 %
    Mortgage-backed securities     185,382     1,254   2.71 %     181,596     1,186   2.60 %     165,471     904   2.17 %
    Other investment securities     164,392     1,573   3.83 %     173,008     1,527   3.51 %     190,507     1,486   3.09 %
    FHLB stock     17,153     411   9.58 %     17,666     406   9.15 %     20,970     477   9.02 %
    Cash and cash equivalents     68,536     770   4.50 %     61,507     767   4.96 %     45,895     561   4.85 %
    Total interest-bearing assets     1,992,805     21,785   4.37 %     1,982,739     21,532   4.32 %     1,987,643     20,335   4.06 %
    Non-interest earning assets     61,586             61,787             54,918        
    Total assets   $ 2,054,391           $ 2,044,526           $ 2,042,561        
    Liabilities and shareholders’ equity:                                    
    NOW, savings, and money market deposits   $ 614,623     1,988   1.29 %   $ 598,048     1,925   1.28 %   $ 634,257     1,989   1.24 %
    Time deposits     698,801     7,585   4.32 %     688,570     7,787   4.50 %     584,977     5,766   3.91 %
    Interest-bearing deposits     1,313,424     9,573   2.90 %     1,286,618     9,712   3.00 %     1,219,234     7,755   2.52 %
    FHLB advances     335,686     2,739   3.26 %     347,076     2,733   3.13 %     397,643     3,384   3.38 %
    Total interest-bearing liabilities     1,649,110     12,312   2.97 %     1,633,694     12,445   3.03 %     1,616,877     11,139   2.73 %
    Non-interest bearing deposits     24,945             23,421             26,629        
    Non-interest bearing other     43,016             43,713             41,780        
    Total liabilities     1,717,071             1,700,828             1,685,286        
    Total shareholders’ equity     337,320             343,698             357,275        
    Total liabilities and shareholders’ equity   $ 2,054,391           $ 2,044,526           $ 2,042,561        
    Net interest income       $ 9,473           $ 9,087           $ 9,196    
    Net interest rate spread (2)           1.40 %           1.29 %           1.33 %
    Net interest margin (3)           1.89 %           1.82 %           1.84 %

    (1) Average loan balances are net of deferred loan fees and costs, and premiums and discounts, and include non-accrual loans.
    (2) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (3) Net interest margin represents net interest income divided by average interest-earning assets.

    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Analysis of Net Interest Income continued
    (Unaudited)
     
        Year Ended December 31,
          2024       2023  
        Average Balance   Interest   Average
    Yield/Cost    		   Average Balance   Interest   Average
    Yield/Cost
        (Dollar in thousands)
    Assets:                        
    Loans (1)   $ 1,553,143   $ 70,185   4.52 %   $ 1,569,590   $ 65,685   4.18 %
    Mortgage-backed securities     173,691     4,276   2.46 %     172,405     3,693   2.14 %
    Other investment securities     174,172     6,440   3.70 %     195,754     6,010   3.07 %
    FHLB stock     18,038     1,756   9.73 %     21,249     1,582   7.45 %
    Cash and cash equivalents     58,261     2,794   4.80 %     46,245     2,135   4.62 %
    Total interest-bearing assets     1,977,305     85,451   4.32 %     2,005,243     79,105   3.94 %
    Non-interest earning assets     59,832             56,297        
    Total assets   $ 2,037,137           $ 2,061,540        
    Liabilities and shareholders’ equity:                        
    NOW, savings, and money market deposits   $ 610,172     7,803   1.28 %   $ 722,149     8,339   1.15 %
    Time deposits     665,740     29,027   4.36 %     501,124     15,777   3.15 %
    Interest-bearing deposits     1,275,912     36,830   2.89 %     1,223,273     24,116   1.97 %
    FHLB advances     348,306     11,071   3.18 %     396,265     13,070   3.30 %
    Total interest-bearing liabilities     1,624,218     47,901   2.95 %     1,619,538     37,186   2.30 %
    Non-interest bearing deposits     24,980             25,227        
    Non-interest bearing other     42,345             43,868        
    Total liabilities     1,691,543             1,688,633        
    Total shareholders’ equity     345,594             372,907        
    Total liabilities and shareholders’ equity   $ 2,037,137           $ 2,061,540        
    Net interest income       $ 37,550           $ 41,919    
    Net interest rate spread (2)           1.37 %           1.64 %
    Net interest margin (3)           1.90 %           2.09 %

    (1) Average loan balances are net of deferred loan fees and costs, and premiums and discounts, and include non-accrual loans.
    (2) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (3) Net interest margin represents net interest income divided by average interest-earning assets.

    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Adjusted Pre-Provision Net Loss (Non-GAAP)
    (Dollars in thousands except per share data) (Unaudited)

    This press release contains certain supplemental financial information, described in the table below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles (“GAAP”) that management uses in its analysis of Blue Foundry’s performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding Blue Foundry’s financial results. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and Blue Foundry strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

    Net loss, as presented in the Consolidated Statements of Operations, includes the provision for credit losses and income tax expense while pre-provision net loss does not.

        Three months ended
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Pre-provision net loss and efficiency ratio, as adjusted:                
    Net interest income   $ 9,473     $ 9,087     $ 9,573     $ 9,417     $ 9,196  
    Other income     420       387       536       451       572  
          9,893       9,474       10,109       9,868       9,768  
    Operating expenses, as reported     12,881       13,267       13,215       13,242       12,543  
    Pre-provision net loss, as adjusted   $ (2,988 )   $ (3,793 )   $ (3,106 )   $ (3,374 )   $ (2,775 )
    Efficiency ratio     130.2 %     140.0 %     130.7 %     134.2 %     128.4 %
                         
    Core deposits:                    
    Total deposits   $ 1,343,320     $ 1,318,670     $ 1,311,156     $ 1,291,184     $ 1,244,904  
    Less: time deposits     707,339       701,262       671,478       642,372       596,624  
    Core deposits   $ 635,981     $ 617,408     $ 639,678     $ 648,812     $ 648,280  
    Core deposits to total deposits     47.3 %     46.8 %     48.8 %     50.2 %     52.1 %
                         
    Total assets   $ 2,060,683     $ 2,055,093     $ 2,045,452     $ 2,027,787     $ 2,044,963  
    Less: intangible assets     244       300       386       473       557  
    Tangible assets   $ 2,060,439     $ 2,054,793     $ 2,045,066     $ 2,027,314     $ 2,044,406  
                         
    Tangible equity:                    
    Shareholders’ equity   $ 332,198     $ 339,299     $ 345,597     $ 350,156     $ 355,640  
    Less: intangible assets     244       300       386       473       557  
    Tangible equity   $ 331,954     $ 338,999     $ 345,211     $ 349,683     $ 355,083  
                         
    Tangible equity to tangible assets     16.11 %     16.50 %     16.88 %     17.25 %     17.37 %
                         
    Tangible book value per share:                    
    Tangible equity   $ 331,954     $ 338,999     $ 345,211     $ 349,683     $ 355,083  
    Shares outstanding     22,522,626       22,990,908       23,505,357       23,958,888       24,509,950  
    Tangible book value per share   $ 14.74     $ 14.74     $ 14.69     $ 14.60     $ 14.49  

    The MIL Network –

  • MIL-OSI: CALIFORNIA BANCORP REPORTS NET INCOME OF $16.8 MILLION FOR THE FOURTH QUARTER AND $5.4 MILLION FOR THE FULL YEAR OF 2024

    Source: GlobeNewswire (MIL-OSI)

    San Diego, Calif., Jan. 29, 2025 (GLOBE NEWSWIRE) — California BanCorp (“us,” “we,” “our,” or the “Company”) (NASDAQ: BCAL), the holding company for California Bank of Commerce, N.A. (the “Bank”) announces its consolidated financial results for the fourth quarter and full year of 2024.

    The Company reported net income of $16.8 million, or $0.51 per diluted share, for the fourth quarter of 2024, compared to a net loss of $16.5 million, or $0.59 per diluted share for the third quarter of 2024, and net income of $4.4 million, or $0.24 per diluted share for the fourth quarter of 2023. The Company reported net income of $5.4 million, or $0.22 per diluted share, for the full year of 2024, compared to net income of $25.9 million, or $1.39 per diluted share for the full year of 2023.

    “I’m pleased to report our strong fourth quarter earnings of $16.8 million, the result of a full quarter of combined operations after our July 31, 2024, merger close,” said David Rainer, Executive Chairman of the Company and Bank. “We continue to derisk our consolidated balance sheet and are making significant headway in reducing our exposure in the Sponsor Finance portfolio. Additionally, we are rapidly reducing our reliance on brokered deposits, which despite the reduction of the high-yielding Sponsor Finance product, has allowed us to maintain a consistent, strong net interest margin. We are focused on building tangible book value, which increased to $11.71 in the fourth quarter, up $0.43 from the prior quarter, and up $0.79 in the five months since the merger close. While we are pleased to report these strong financial results, we, along with all our fellow Southern California residents, have been through a very difficult period due to the recent wildfires and we are working with all our constituents to assist them in any way we can.”

    “On behalf of the Company and the Bank, I want to express our condolences to all our neighbors, clients and employees that have been affected by the recent Southern California wildfires,” said Steven Shelton, CEO of the Company and the Bank. “You are in our thoughts and prayers and will remain so as we work to rebuild and recover going forward. Except for the one-day closure of one branch as a precautionary measure for the safety of our employees, I’m pleased to report there were no other disruptions to our operations and all other offices remained open. We are fortunate to report that the fires are expected to have a minimal impact on our loan portfolio, and we continue to focus on providing outstanding service to our combined client base throughout California, and on building shareholder value.”

    Fourth Quarter 2024 Highlights

    • Net income of $16.8 million or $0.51 diluted earnings per share for the fourth quarter; adjusted net income (non-GAAP1) was $17.2 million or $0.53 per share for the fourth quarter.
    • Net interest margin of 4.61%, compared with 4.43% in the prior quarter; average total loan yield of 6.84% compared with 6.79% in the prior quarter.
    • Reversal of provision for credit losses of $3.8 million for the fourth quarter, compared with a provision for credit losses of $23.0 million for the prior quarter, of which $21.3 million was due to the day one provision for credit losses on non-purchased credit deteriorated (“non-PCD”) loans and unfunded loan commitments related to the merger with California BanCorp (the “Merger”).
    • Return on average assets of 1.60%, compared with (1.82)% in the prior quarter.
    • Return on average common equity of 13.21%, compared with (15.28)% in the prior quarter.
    • Efficiency ratio (non-GAAP1) of 57.4% compared with 98.9% in the prior quarter; excluding Merger related expenses the efficiency ratio was 55.9%, compared with 60.5% in the prior quarter.
    • Tangible book value per common share (“TBV”) (non-GAAP1) of $11.71 at December 31, 2024, up $0.43 from $11.28 at September 30, 2024.
    • Total assets of $4.03 billion at December 31, 2024, compared with $4.36 billion at September 30, 2024.
    • Total loans, including loans held for sale of $3.16 billion at December 31, 2024, compared with $3.23 billion at September 30, 2024.
    • Nonperforming assets to total assets ratio of 0.76% at December 31, 2024, compared with 0.68% at September 30, 2024.
    • Allowance for credit losses (“ACL”) was 1.71% of total loans held for investment at December 31, 2024; allowance for loan losses (“ALL”) was 1.61% of total loans held for investment at December 31, 2024.
    • Total deposits of $3.40 billion at December 31, 2024, decreased $342.2 million or 9.1% compared with $3.74 billion at September 30, 2024.
    • Noninterest-bearing demand deposits of $1.26 billion at December 31, 2024, a decrease of $111.3 million or 8.1% from September 30, 2024; noninterest bearing deposits represented 37.0% of total deposits, compared with $1.37 billion, or 36.6% of total deposits at September 30, 2024.
    • Total brokered deposits of $121.1 million, a decrease of $101.5 million from September 30, 2024.
    • Cost of deposits was 1.87%, compared with 2.09% in the prior quarter.
    • Cost of funds was 1.99%, compared with 2.19% in the prior quarter.
    • The Company’s preliminary capital exceeds minimums required to be “well-capitalized,” the highest regulatory capital category.

    Full Year 2024 Highlights

    • Merger closed on July 31, 2024, whereby predecessor California BanCorp (“CALB”) merged with and into the Company and California Bank of Commerce merged with and into the Bank. CALB had total loans of $1.43 billion, total assets of $1.91 billion, and total deposits of $1.64 billion. The Merger created a bank holding company with approximately $4.25 billion in assets and 14 branches across California, with approximately 300 employees serving our communities. Total aggregate consideration paid for the Merger was approximately $216.6 million and resulted in approximately $74.7 million of preliminary goodwill, subject to adjustment in accordance with ASC 805.
    • Net income of $5.4 million, down $20.5 million, or 79.0% from the prior year largely due to the after-tax one-time day one provision for credit losses related to non-PCD loans and unfunded loan commitments of $15.0 million and merger related expenses of $12.0 million; adjusted net income (non-GAAP1) was $32.4 million or $1.32 per share for the year.
    • Diluted earnings per share of $0.22, down $1.17, or 84.2% from the prior year.
    • Total loan interest income increased to $160.0 million, up $46.0 million or 40.4% from the prior year largely due to the Merger.
    • Net interest margin of 4.28% for 2024, compared with 4.33% in the prior year; average loan yield was 6.55%, up from 5.94% in the prior year.
    • Efficiency ratio (non-GAAP1) of 76.6%, compared to 61.3% in the prior year; excluding merger related expenses the efficiency ratio was 63.8%, compared with 61.3% in the prior year.
    • Provision for credit losses of $21.7 million, of which $21.3 million was due to the day one provision for credit losses on non-PCD loans and unfunded loan commitments in connection with the Merger, compared to $915 thousand for the year ended December 31, 2023.
    • Total assets of $4.03 billion, up $1.7 billion or 70.8% from December 31, 2023, largely due to the Merger.
    • Total loans, including loans held for sale, increased to $3.16 billion, up $1.2 billion from December 31, 2023, largely due to the Merger, with the fair value of the acquired loans totaling $1.36 billion.
    • Total deposits of $3.40 billion, up $1.46 billion from December 31, 2023, largely due to the $1.64 billion of deposits acquired in the Merger.
    • Noninterest-bearing demand deposits were $1.26 billion, representing 37.0% of total deposits, compared to $675.1 million, or 34.7% of total deposits at December 31, 2023.
    • Cost of deposits was 2.01%, up from 1.37% in the prior year.
    • Tangible book value per common share (“TBV”) (non-GAAP1) of $11.71 at December 31, 2024, down $1.85 from December 31, 2023.

    Fourth Quarter Operating Results

    Net Income

    Net income for the fourth quarter of 2024 was $16.8 million, or $0.51 per diluted share, compared with a net loss of $16.5 million, or a loss of $0.59 per diluted share in the third quarter of 2024. Our third quarter results were negatively impacted by a day one $15.0 million after-tax current expected credit losses (“CECL”)-related provision for credit losses on non-PCD loans and unfunded loan commitments related to the merger, or $0.54 loss per diluted share, and $10.6 million of after-tax merger expenses, or $0.38 loss per diluted share. Pre-tax, pre-provision income (non-GAAP1) for the fourth quarter was $19.4 million, an increase of $19.0 million from the prior quarter. Excluding the merger and related expenses, the adjusted pre-tax, pre-provision income (non-GAAP1) for the fourth quarter was $20.1 million, an increase of $5.0 million from the prior quarter. The net income and diluted earnings per share increases for all of the periods presented were largely driven by the Merger and the operating results since the closing date of the Merger.

    Net Interest Income and Net Interest Margin

    Net interest income for the fourth quarter of 2024 was $44.5 million, compared with $36.9 million in the prior quarter. The increase in net interest income was primarily due to an $8.4 million increase in total interest and dividend income, partially offset by an $832 thousand increase in total interest expense in the fourth quarter of 2024, as compared to the prior quarter. During the fourth quarter of 2024, loan interest income increased $7.3 million, of which $6.1 million was related to accretion income from the net purchase accounting discounts on acquired loans, total debt securities income increased $10 thousand, and interest and dividend income from other financial institutions increased $1.2 million. The increase in interest income was mainly due to reporting a full quarter of combined operations for the fourth quarter of 2024 and primarily driven by the mix of interest-earning assets added by the Merger and the impact of the accretion and amortization of fair value interest rate marks. Average total interest-earning assets increased $526.5 million in the fourth quarter of 2024, the result of a $401.3 million increase in average total loans, a $260.4 million increase in average deposits in other financial institutions and a $5.8 million increase in average restricted stock investments and other bank stock, partially offset by a $1.3 million decrease in average total debt securities and a $139.8 million decrease in average Fed funds sold/resale agreements. The increase in interest expense for the fourth quarter of 2024 was primarily due to a $466 thousand increase in interest expense on interest-bearing deposits, the result of a $217.9 million increase in average interest-bearing deposits, coupled with a $17.2 million increase in average subordinated debt, partially offset by a 22 basis point decrease in average interest-bearing deposit costs, and a $9 thousand decrease in interest expense on Federal Home Loan Bank (“FHLB”) borrowings, the result of a $611 thousand decrease in average FHLB borrowings in the fourth quarter of 2024.

    Net interest margin for the fourth quarter of 2024 was 4.61%, compared with 4.43% in the prior quarter. The increase was primarily related to a 20 basis point decrease in the cost of funds, partially offset by a one basis point decrease in the total interest-earning assets yield. The yield on total average interest-earning assets in the fourth quarter of 2024 was 6.48%, compared with 6.49% in the prior quarter. The yield on average total loans in the fourth quarter of 2024 was 6.84%, an increase of five basis points from 6.79% in the prior quarter. Accretion income from the net purchase accounting discounts on acquired loans was $6.1 million, increasing the yield on average total loans by 76 basis points; the net amortization expense from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium increased the interest expense by $467 thousand, the combination of which increased the net interest margin by 58 basis points in the fourth quarter of 2024.

    Cost of funds for the fourth quarter of 2024 was 1.99%, a decrease of 20 basis points from 2.19% in the prior quarter. The decrease was primarily driven by a 22 basis point decrease in the cost of average interest-bearing deposits, and an increase in average noninterest-bearing deposits, partially offset by an increase of 26 basis points in the cost of total borrowings, which was driven primarily by the amortization expense of $559 thousand from the purchase accounting discounts on acquired subordinated debt which increased the cost on total borrowing by 320 basis points. Average noninterest-bearing demand deposits increased $251.7 million to $1.28 billion and represented 36.3% of total average deposits for the fourth quarter of 2024, compared with $1.03 billion and 33.6%, respectively, in the prior quarter; average interest-bearing deposits increased $217.9 million to $2.26 billion during the fourth quarter of 2024. The total cost of deposits in the fourth quarter of 2024 was 1.87%, a decrease of 22 basis points from 2.09% in the prior quarter. The cost of total interest-bearing deposits decreased primarily due to the Company’s deposit repricing strategy and the ongoing pay off of high cost brokered deposits and California State certificates of deposit in the fourth quarter of 2024.

    Average total borrowings increased $16.6 million to $69.4 million in the fourth quarter of 2024, primarily due to an increase of $17.2 million in average subordinated debt acquired in the Merger, partially offset by a decrease of $611 thousand in average FHLB borrowings during the fourth quarter of 2024. The average cost of total borrowings was 7.97% for the fourth quarter of 2024, up from 7.71% in the prior quarter.

    (Reversal of) Provision for Credit Losses

    The Company recorded a reversal of provision for credit losses of $3.8 million in the fourth quarter of 2024, compared to a provision for credit losses of $23.0 million in the prior quarter. The decrease was largely related to the third quarter provision for credit losses including the effects of the Merger, and the resulting one-time initial provision for credit losses on acquired non-PCD loans of $18.5 million and unfunded loan commitments of $2.7 million. Total net charge-offs were $154.0 thousand in the fourth quarter of 2024, which included $103 thousand from an acquired consumer solar loan portfolio and $51 thousand from a commercial real-estate loan. The provision for credit losses in the fourth quarter of 2024 included a $1.0 million reversal of provision for unfunded loan commitments related to the decrease in unfunded loan commitments during the fourth quarter of 2024, coupled with lower loss rates, offset by higher average funding rates used to estimate the allowance for credit losses on unfunded commitments. Total unfunded loan commitments decreased $108.6 million to $925.3 million at December 31, 2024, compared to $1.03 billion in unfunded loan commitments at September 30, 2024.

    The reversal of provision for credit losses for loans held for investment in the fourth quarter of 2024 was $2.9 million, a decrease of $22.6 million for the fourth quarter of 2024 from a provision for credit losses of $19.7 million in the prior quarter. The decrease was driven primarily by the third quarter amount including the one-time initial provision for credit losses on acquired non-PCD loans and decreases in legacy special mention loans and loans held for investment. Additionally, qualitative factors, coupled with changes in the portfolio mix and in the reasonable and supportable forecast, primarily related to the economic outlook for California, which were partially offset by an increase in legacy substandard accruing loans, were factors related to the decrease in the provision for credit losses. The Company’s management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it has appropriately provisioned for the current environment.

    Noninterest Income

    The Company recorded noninterest income of $1.0 million in the fourth quarter of 2024, a decrease of $170 thousand compared to $1.2 million in the third quarter of 2024. The Company reported a loss on sale of loans of $1.1 million, related to the sale of certain Sponsor Finance loans, in the fourth quarter of 2024, compared to a gain on sale of loans of $8 thousand in the prior quarter. There was no gain on SBA 7A loan sales in the third and fourth quarters of 2024. Bank owned life insurance income of $823 thousand in the fourth quarter of 2024 increased $425 thousand from the prior quarter. Service charges and fees on deposit accounts of $911 thousand in the fourth quarter of 2024 decreased $225 thousand from the prior quarter, related to the one-time waiver of analysis charges for certain deposit accounts in light of the core system conversion. Other charges and fees income increased to $208 thousand in the fourth quarter of 2024, compared to a loss of $450 thousand in the prior quarter, primarily related to a $614 thousand valuation allowance on other real estate owned (“OREO”) due to a decline in the fair value of the underlying property in the third quarter of 2024. No comparable valuation allowance on OREO was recorded in the fourth quarter of 2024.

    Noninterest Expense

    Total noninterest expense for the fourth quarter of 2024 was $26.1 million, a decrease of $11.6 million from total noninterest expense of $37.7 million in the prior quarter, which was largely due to the decrease in merger related expenses.

    Salaries and employee benefits increased $689 thousand during the quarter to $16.1 million. The increase in salaries and employee benefits was primarily related to the growth in headcount due to the Merger, partially offset by the third quarter amount including the one-time costs associated with non-continuing directors, executives and employees of $1.4 million. Merger and related expenses in connection with the Merger decreased $14.0 million during the quarter to $643 thousand. Data processing and communications of $2.0 million in the fourth quarter of 2024 increased by $424 thousand, due primarily to increases in transaction volume from both organic growth and the Merger. Intangible assets amortization of $1.1 million in the fourth quarter of 2024 increased by $373 thousand, due primarily to a full quarter of amortization of the core deposit intangible asset acquired in the Merger, compared with only two months of amortization of the asset in the prior quarter. Other expenses of $2.1 million in the fourth quarter of 2024 increased by $443 thousand, due primarily to higher loan related expenses, customer service related expenses, travel expenses and insurance expenses.

    Efficiency ratio (non-GAAP1) for the fourth quarter of 2024 was 57.4%, compared to 98.9% in the prior quarter. Excluding the merger and related expenses of $643 thousand and $14.6 million, the efficiency ratio (non-GAAP1) for the fourth and third quarters of 2024 would have been 55.9% and 60.5%, respectively.

    Income Tax

    In the fourth quarter of 2024, the Company’s income tax expense was $6.5 million, compared with a $6.1 million income tax benefit in the third quarter of 2024. The effective rate was 27.9% for the fourth quarter of 2024 and 26.9% for the third quarter of 2024. The increase in the effective tax rate for the fourth quarter of 2024 was primarily attributable to the impact of the non-tax deductible portion of the merger expenses and the vesting and exercise of equity awards combined with changes in the Company’s stock price over time, partially offset by the impact of the tax on the excess executive compensation.

    Balance Sheet

    Assets

    Total assets at December 31, 2024 were $4.03 billion, a decrease of $331.1 million or 7.6% from September 30, 2024. The decrease in total assets from the prior quarter was primarily related to a decrease in cash and cash equivalents of $226.3 million and a decrease in loans, including loans held for sale, of $77.1 million as compared to the prior quarter. These decreases primarily relate to the decreases in wholesale funding sources and the Sponsor Finance portfolio from loan sales and payoffs.

    Loans

    Total loans held for investment were $3.14 billion at December 31, 2024, a decrease of $60.5 million, compared to September 30, 2024, primarily the result of Sponsor Finance loans sales and loan payoffs in the amount of $90.8 million. During the fourth quarter of 2024, there were new originations of $128.5 million and net advances of $25.6 million, offset by loan sales and payoffs of $214.5 million, and the partial charge-off of loans in the amount of $154 thousand. Total loans secured by real estate decreased by $5.1 million, construction and land development loans decreased by $20.6 million, commercial real estate and other loans increased by $11.8 million, 1-4 family residential loans increased by $11.9 million and multifamily loans decreased by $8.1 million. Commercial and industrial loans decreased by $54.5 million, and consumer loans decreased by $1.0 million. The Company had $17.2 million in loans held for sale at December 31, 2024, compared to $33.7 million at September 30, 2024.

    Deposits

    Total deposits at December 31, 2024 were $3.40 billion, a decrease of $342.2 million from September 30, 2024. The decrease primarily consisted of $111.3 million noninterest-bearing demand deposits, $73.9 million interest-bearing non-maturity deposits, and $157.0 million time deposits. Noninterest-bearing demand deposits at December 31, 2024, were $1.26 billion, or 37.0% of total deposits, compared with $1.37 billion, or 36.6% of total deposits at September 30, 2024. At December 31, 2024, total interest-bearing deposits were $2.14 billion, compared to $2.37 billion at September 30, 2024. At December 31, 2024, total brokered time deposits were $121.1 million, compared to $222.6 million at September 30, 2024. The Company offers the Insured Cash Sweep (ICS) product, Certificate of Deposit Account Registry Service (CDARS), and Reich & Tang Deposit Solutions (R&T) network, all of which provide reciprocal deposit placement services to fully qualified large customer deposits for FDIC insurance among other participating banks. At December 31, 2024, total reciprocal deposits were $754.4 million, or 22.2% of total deposits at December 31, 2024, compared to $839.7 million , or 22.4% of total deposits at September 30, 2024.

    Federal Home Loan Bank (“FHLB”) and Liquidity

    At December 31, 2024 and September 30, 2024, the Company had no overnight FHLB borrowings. There were no outstanding Federal Reserve Discount Window borrowings at December 31, 2024 or September 30, 2024.

    At December 31, 2024, the Company had available borrowing capacity from an FHLB secured line of credit of approximately $753.9 million and available borrowing capacity from the Federal Reserve Discount Window of approximately $318.5 million. The Company also had available borrowing capacity from four unsecured credit lines from correspondent banks of approximately $90.5 million at December 31, 2024, with no outstanding borrowings. Total available borrowing capacity was $1.16 billion at December 31, 2024. Additionally, the Company had unpledged liquid securities at fair value of approximately $129.4 million and cash and cash equivalents of $388.2 million at December 31, 2024.

    Asset Quality

    Total non-performing assets increased slightly to $30.6 million, or 0.76% of total assets at December 31, 2024, compared with $29.8 million, or 0.68% of total assets at September 30, 2024.

    There were no loans downgraded to nonaccrual during the fourth quarter of 2024. Non-performing assets in the fourth quarter of 2024 included OREO, net of valuation allowance, of $4.1 million related to a multifamily building, the same balance as the prior quarter.

    Total non-performing loans increased slightly to $26.5 million, or 0.85% of total loans held for investment at December 31, 2024, compared with $25.7 million, or 0.80% of total loans held for investment at September 30, 2024.

    Special mention loans decreased by $24.1 million during the fourth quarter of 2024 to $69.3 million, including $25.5 million of non-PCD loans and $10.1 million of purchase credit deteriorated (“PCD”) loans, at December 31, 2024. The decrease in the special mention loans was due mostly to a $9.0 million payoff, $24.5 million in downgrades to substandard accruing loans and $8.4 million in upgrades to Pass loans, partially offset by $18.1 million in downgrades from Pass loans. Substandard loans increased by $13.6 million during the fourth quarter of 2024 to $117.9 million, including $11.0 million of non-PCD loans, $55.9 million PCD loans and $14.1 million nonaccrual PCD loans, at December 31, 2024. The increase in the substandard loans was due primarily to $29.8 million in downgrades and $2.9 million in net advances, partially offset by a $17.3 million in payoffs, $1.7 million in upgrades to Pass and $103 thousand in charge-offs.

    The Company had $150 thousand in consumer solar loans that were over 90 days past due and still accruing interest at December 31, 2024, compared to $37 thousand in such delinquencies at September 30, 2024.

    There were $12.2 million in loan delinquencies (30-89 days past due, excluding nonaccrual loans) at December 31, 2024, compared to $19.1 million in such loan delinquencies at September 30, 2024.

    The allowance for credit losses, which is comprised of the allowance for loan losses (“ALL”) and reserve for unfunded loan commitments, totaled $53.6 million at December 31, 2024, compared to $57.6 million at September 30, 2024. The $4.0 million decrease in the allowance for credit losses included a $2.9 million and $968 thousand reversal of provision for credit losses for the loan portfolio and reserve for unfunded loan commitments, respectively, partially offset by total net charge-offs of $145 thousand for the quarter ended December 31, 2024.

    The ALL was $50.5 million, or 1.61% of total loans held for investment at December 31, 2024, compared with $53.6 million, or 1.67% at September 30, 2024.

    Capital

    Tangible book value (non-GAAP1) per common share at December 31, 2024, was $11.71, compared with $11.28 at September 30, 2024. In the fourth quarter of 2024, tangible book value was primarily impacted by net income of $16.8 million for the fourth quarter, stock-based compensation expense, and an increase in net of tax unrealized losses on available-for-sale debt securities. Other comprehensive losses related to unrealized losses, net of taxes, on available-for-sale debt securities increased by $3.8 million to $6.6 million at December 31, 2024, from $2.9 million at September 30, 2024. The increase in the unrealized losses, net of taxes, on available-for-sale debt securities was attributable to non-credit related factors , including an increase in bond prices at the long end of the yield curve, even as the Federal Reserve decreased the Fed funds rate by 25 basis points in December 2024. Tangible common equity (non-GAAP1) as a percentage of total tangible assets (non-GAAP1) at December 31, 2024, increased to 9.69% from 8.58% in the prior quarter, and unrealized losses, net of taxes, on available-for-sale debt securities as a percentage of tangible common equity (non-GAAP1) at December 31, 2024 increased to 1.8% from 0.8% in the prior quarter.

    The Company’s preliminary capital exceeds minimums required to be “well-capitalized” at December 31, 2024.

    ABOUT CALIFORNIA BANCORP

    California BanCorp (NASDAQ: BCAL) is a registered bank holding company headquartered in San Diego, California. California Bank of Commerce, N.A., a national banking association chartered under the laws of the United States (the “Bank”) and regulated by the Office of Comptroller of the Currency, is a wholly owned subsidiary of California BanCorp. Established in 2001 and headquartered in San Diego, California, the Bank offers a range of financial products and services to individuals, professionals, and small to medium-sized businesses through its 14 branch offices and four loan production offices serving Northern and Southern California. The Bank’s solutions-driven, relationship-based approach to banking provides accessibility to decision makers and enhances value through strong partnerships with its clients. Additional information is available at www.bankcbc.com.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

    In addition to historical information, this release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and other matters that are not historical facts. Examples of forward-looking statements include, among others, statements regarding expectations, plans or objectives for future operations, products or services, loan recoveries, projections, expectations regarding the adequacy of reserves for credit losses and statements about the benefits of the Merger, as well as forecasts relating to financial and operating results or other measures of economic performance. Forward-looking statements reflect management’s current view about future events and involve risks and uncertainties that may cause actual results to differ from those expressed in the forward-looking statement or historical results. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and often include the words or phrases such as “aim,” “can,” “may,” “could,” “predict,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “hope,” “intend,” “plan,” “potential,” “project,” “will likely result,” “continue,” “seek,” “shall,” “possible,” “projection,” “optimistic,” and “outlook,” and variations of these words and similar expressions.

    Factors that could cause or contribute to results differing from those in or implied in the forward-looking statements include but are not limited to risk related to the Merger, including the risks that costs may be greater than anticipated, cost savings may be less than anticipated, and difficulties in retaining senior management, employees or customers, the impact of bank failures or other adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks, changes in real estate markets and valuations; the impact on financial markets from geopolitical conflicts; inflation, interest rate, market and monetary fluctuations and general economic conditions, either nationally or locally in the areas in which the Company conducts business; increases in competitive pressures among financial institutions and businesses offering similar products and services; general credit risks related to lending, including changes in the value of real estate or other collateral, the financial condition of borrowers, the effectiveness of our underwriting practices and the risk of fraud; higher than anticipated defaults in the Company’s loan portfolio; changes in management’s estimate of the adequacy of the allowance for credit losses or the factors the Company uses to determine the allowance for credit losses; changes in demand for loans and other products and services offered by the Company; the
    costs and outcomes of litigation; legislative or regulatory changes or changes in accounting principles, policies or guidelines and other risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”) and other documents the Company may file with the SEC from time to time.

    Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and other documents the Company files with the SEC from time to time.

    Any forward-looking statement made in this release is based only on information currently available to management and speaks only as of the date on which it is made. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements or to conform such forward-looking statements to actual results or to changes in its opinions or expectations, except as required by law.

    California BanCorp and Subsidiary
    Financial Highlights (Unaudited)

        At or for the
    Three Months Ended    		     At or for the
    Year Ended    		  
        December 31,
    2024    		     September 30,
    2024    		     December 31,
    2023    		     December 31,
    2024    		     December 31,
    2023    		  
        ($ in thousands except share and per share data)  
    EARNINGS      
    Net interest income   $ 44,541     $ 36,942     $ 22,559     $ 122,984     $ 94,138  
    (Reversal of) provision for credit losses   $ (3,835 )   $ 22,963     $ 824     $ 21,690     $ 915  
    Noninterest income (expense)   $ 1,004     $ 1,174     $ (102 )   $ 4,760     $ 3,379  
    Noninterest expense   $ 26,125     $ 37,680     $ 15,339     $ 97,791     $ 59,746  
    Income tax expense (benefit)   $ 6,483     $ (6,063 )   $ 1,882     $ 2,830     $ 10,946  
    Net income (loss)   $ 16,772     $ (16,464 )   $ 4,412     $ 5,433     $ 25,910  
    Pre-tax pre-provision income (1)   $ 19,420     $ 436     $ 7,118     $ 29,953     $ 37,771  
    Adjusted pre-tax pre-provision income (1)   $ 20,063     $ 15,041     $ 7,118     $ 46,241     $ 37,771  
    Diluted earnings (loss) per share   $ 0.51     $ (0.59 )   $ 0.24     $ 0.22     $ 1.39  
    Shares outstanding at period end     32,265,935       32,142,427       18,369,115       32,265,935       18,369,115  
                                             
    PERFORMANCE RATIOS                                        
    Return on average assets     1.60 %     (1.82 )%     0.75 %     0.18 %     1.12 %
    Adjusted return on average assets (1)     1.64 %     1.01 %     0.75 %     1.05 %     1.12 %
    Return on average common equity     13.21 %     (15.28 )%     6.21 %     1.43 %     9.48 %
    Adjusted return on average common equity (1)     13.57 %     8.44 %     6.21 %     8.53 %     9.48 %
    Yield on total loans     6.84 %     6.79 %     6.08 %     6.55 %     5.94 %
    Yield on interest earning assets     6.48 %     6.49 %     5.85 %     6.26 %     5.69 %
    Cost of deposits     1.87 %     2.09 %     1.81 %     2.01 %     1.37 %
    Cost of funds     1.99 %     2.19 %     1.95 %     2.12 %     1.46 %
    Net interest margin     4.61 %     4.43 %     4.05 %     4.28 %     4.33 %
    Efficiency ratio (1)     57.36 %     98.86 %     68.30 %     76.55 %     61.27 %
    Adjusted efficiency ratio (1)     55.95 %     60.54 %     68.30 %     63.80 %     61.27 %
        As of  
        December 31,
    2024    		     September 30,
    2024    		     December 31,
    2023    		  
        ($ in thousands except share and per share data)  
    CAPITAL      
    Tangible equity to tangible assets (1)     9.69 %     8.58 %     10.73 %
    Book value (BV) per common share   $ 15.86     $ 15.50     $ 15.69  
    Tangible BV per common share (1)   $ 11.71     $ 11.28     $ 13.56  
                             
    ASSET QUALITY                        
    Allowance for loan losses (ALL)   $ 50,540     $ 53,552     $ 22,569  
    Reserve for unfunded loan commitments   $ 3,103     $ 4,071     $ 933  
    Allowance for credit losses (ACL)   $ 53,643     $ 57,623     $ 23,502  
    Allowance for loan losses to nonperforming loans     1.90 x     2.08 x     1.74 x
    ALL to total loans held for investment     1.61 %     1.67 %     1.15 %
    ACL to total loans held for investment     1.71 %     1.80 %     1.20 %
    30-89 days past due, excluding nonaccrual loans   $ 12,232     $ 19,110     $ 19  
    Over 90 days past due, excluding nonaccrual loans   $ 150     $ 37     $ —  
    Special mention loans   $ 69,339     $ 93,448     $ 2,996  
    Special mention loans to total loans held for investment     2.21 %     2.92 %     0.15 %
    Substandard loans   $ 117,926     $ 104,298     $ 19,502  
    Substandard loans to total loans held for investment     3.76 %     3.26 %     1.00 %
    Nonperforming loans   $ 26,536     $ 25,698     $ 13,004  
    Nonperforming loans to total loans held for investment     0.85 %     0.80 %     0.66 %
    Other real estate owned, net   $ 4,083     $ 4,083     $ —  
    Nonperforming assets   $ 30,619     $ 29,781     $ 13,004  
    Nonperforming assets to total assets     0.76 %     0.68 %     0.55 %
                             
    END OF PERIOD BALANCES                        
    Total loans, including loans held for sale   $ 3,156,345     $ 3,233,418     $ 1,964,791  
    Total assets   $ 4,031,654     $ 4,362,767     $ 2,360,252  
    Deposits   $ 3,398,760     $ 3,740,915     $ 1,943,556  
    Loans to deposits     92.9 %     86.4 %     101.1 %
    Shareholders’ equity   $ 511,836     $ 498,064     $ 288,152  
    (1 ) Non-GAAP measure. See – GAAP to Non-GAAP reconciliation.

    California BanCorp and Subsidiary
    Financial Highlights (Unaudited)

        At or for the
    Three Months Ended    		     At or for the
    Year Ended    		  
    ALLOWANCE for CREDIT LOSSES   December 31,
    2024    		     September 30,
    2024    		     December 31,
    2023    		     December 31,
    2024    		     December 31,
    2023    		  
        ($ in thousands)  
    Allowance for loan losses                                        
    Balance at beginning of period   $ 53,552     $ 23,788     $ 22,705     $ 22,569     $ 17,099  
    Adoption of ASU 2016-13 (1)     —       —       —       —       5,027  
    Initial Allowance for PCD loans     —       11,216       —       11,216       —  
    (Reversal of) provision for credit losses (2)     (2,867 )     19,711       1,131       19,520       1,731  
    Charge-offs     (154 )     (1,163 )     (1,267 )     (2,774 )     (1,303 )
    Recoveries     9       —       —       9       15  
    Net charge-offs     (145 )     (1,163 )     (1,267 )     (2,765 )     (1,288 )
    Balance, end of period   $ 50,540     $ 53,552     $ 22,569     $ 50,540     $ 22,569  
    Reserve for unfunded loan commitments (3)                                        
    Balance, beginning of period   $ 4,071     $ 819     $ 1,240     $ 933     $ 1,310  
    Adoption of ASU 2016-13 (1)     —       —       —       —       439  
    (Reversal of) provision for credit losses (4)     (968 )     3,252       (307 )     2,170       (816 )
    Balance, end of period     3,103       4,071       933       3,103       933  
    Allowance for credit losses   $ 53,643     $ 57,623     $ 23,502     $ 53,643     $ 23,502  
                                             
    ALL to total loans held for investment     1.61 %     1.67 %     1.15 %     1.61 %     1.15 %
    ACL to total loans held for investment     1.71 %     1.80 %     1.20 %     1.71 %     1.20 %
    Net charge-offs to average total loans     (0.02 )%     (0.17 )%     (0.26 )%     (0.11 )%     (0.07 )%
    (1 ) Represents the impact of adopting ASU 2016-13, Financial Instruments – Credit Losses on January 1, 2023. As a result of adopting ASU 2016-13, our methodology to compute our allowance for credit losses is based on a current expected credit loss methodology, rather than the previously applied incurred loss methodology.
    (2 ) Includes $18.5 million for the three months ended September 30, 2024 and year ended December 31, 2024 related to the initial provision for credit losses for non-PCD loans acquired in the Merger.
    (3 ) Included in “Accrued interest and other liabilities” on the consolidated balance sheet.
    (4 ) Includes $2.7 million for the three months ended September 30, 2024 and year ended December 31, 2024 related to the initial provision for credit losses on unfunded commitments acquired in the Merger.

    California BanCorp and Subsidiary
    Balance Sheets (Unaudited)

        December 31,
    2024    		     September 30,
    2024    		     December 31,
    2023    		  
        ($ in thousands)  
    ASSETS                  
    Cash and due from banks   $ 60,471     $ 115,165     $ 33,008  
    Federal funds sold & interest-bearing balances     327,691       499,258       53,785  
    Total cash and cash equivalents     388,162       614,423       86,793  
                             
    Debt securities available-for-sale, at fair value (amortized cost of $151,429, $163,384 and $136,366 at December 31, 2024, September 30, 2024 and December 31, 2023)     142,001       159,330       130,035  
    Debt securities held-to-maturity, at cost (fair value of $47,823, $49,487 and $50,432 at December 31, 2024, September 30, 2024 and December 31, 2023)     53,280       53,364       53,616  
    Loans held for sale     17,180       33,704       7,349  
    Loans held for investment:                        
    Construction & land development     227,325       247,934       243,521  
    1-4 family residential     164,401       152,540       143,903  
    Multifamily     243,993       252,134       221,247  
    Other commercial real estate     1,767,727       1,755,908       1,024,243  
    Commercial & industrial     710,970       765,472       320,142  
    Other consumer     24,749       25,726       4,386  
    Total loans held for investment     3,139,165       3,199,714       1,957,442  
    Allowance for credit losses – loans     (50,540 )     (53,552 )     (22,569 )
    Total loans held for investment, net     3,088,625       3,146,162       1,934,873  
                             
    Restricted stock at cost     30,829       27,394       16,055  
    Premises and equipment     13,595       13,996       13,270  
    Right of use asset     14,350       15,310       9,291  
    Other real estate owned, net     4,083       4,083       —  
    Goodwill     111,787       112,515       37,803  
    Intangible assets     22,271       23,031       1,195  
    Bank owned life insurance     66,636       66,180       38,918  
    Deferred taxes, net     43,127       45,644       11,137  
    Accrued interest and other assets     35,728       47,631       19,917  
    Total assets   $ 4,031,654     $ 4,362,767     $ 2,360,252  
                             
    LIABILITIES AND SHAREHOLDERS’ EQUITY                        
    Deposits:                        
    Noninterest-bearing demand   $ 1,257,007     $ 1,368,303     $ 675,098  
    Interest-bearing NOW accounts     673,589       781,125       381,943  
    Money market and savings accounts     1,182,927       1,149,268       636,685  
    Time deposits     285,237       442,219       249,830  
    Total deposits     3,398,760       3,740,915       1,943,556  
                             
    Borrowings     69,725       69,142       102,865  
    Operating lease liability     18,310       19,211       12,117  
    Accrued interest and other liabilities     33,023       35,435       13,562  
    Total liabilities     3,519,818       3,864,703       2,072,100  
                             
    Shareholders’ Equity:                        
    Common stock – 50,000,000 shares authorized, no par value; issued and outstanding 32,265,935, 32,142,427 and 18,369,115 at December 31, 2024, September 30, 2024 and December 31, 2023)     442,469       441,684       222,036  
    Retained earnings     76,008       59,236       70,575  
    Accumulated other comprehensive loss – net of taxes     (6,641 )     (2,856 )     (4,459 )
    Total shareholders’ equity     511,836       498,064       288,152  
    Total liabilities and shareholders’ equity   $ 4,031,654     $ 4,362,767     $ 2,360,252  

    California BanCorp and Subsidiary
    Income Statements – Quarterly and Year-to-Date (Unaudited)

        Three Months Ended     Year Ended  
        December 31,
    2024    		     September 30,
    2024    		     December 31,
    2023    		     December 31,
    2024    		     December 31,
    2023    		  
        ($ in thousands except share and per share data)  
    INTEREST AND DIVIDEND INCOME                                        
    Interest and fees on loans   $ 54,791     $ 47,528     $ 29,968     $ 159,960     $ 113,951  
    Interest on debt securities     1,698       1,687       991       5,827       3,497  
    Interest on tax-exempted debt securities     305       306       353       1,223       1,655  
    Interest and dividends from other institutions     5,764       4,606       1,257       12,788       4,419  
    Total interest and dividend income     62,558       54,127       32,569       179,798       123,522  
                                             
    INTEREST EXPENSE                                        
    Interest on NOW, savings, and money market accounts     12,447       11,073       6,606       37,329       20,161  
    Interest on time deposits     4,179       5,087       2,331       15,432       6,704  
    Interest on borrowings     1,391       1,025       1,073       4,053       2,519  
    Total interest expense     18,017       17,185       10,010       56,814       29,384  
    Net interest income     44,541       36,942       22,559       122,984       94,138  
                                             
    (Reversal of) provisions for credit losses (1)     (3,835 )     22,963       824       21,690       915  
    Net interest income after (reversal of) provision for credit losses     48,376       13,979       21,735       101,294       93,223  
                                             
    NONINTEREST INCOME                                        
    Service charges and fees on deposit accounts     911       1,136       507       3,140       1,946  
    (Loss) gain on sale of loans     (1,095 )     8       —       (672 )     831  
    Bank owned life insurance income     823       398       253       1,748       946  
    Servicing and related income on loans     157       82       17       307       240  
    Loss on sale of debt securities     —       —       (1,008 )     —       (974 )
    Loss on sale of building and related fixed assets     —       —       —       (19 )     —  
    Other charges and fees     208       (450 )     129       256       390  
    Total noninterest income (expense)     1,004       1,174       (102 )     4,760       3,379  
                                             
    NONINTEREST EXPENSE                                        
    Salaries and employee benefits     16,074       15,385       9,598       49,845       39,249  
    Occupancy and equipment expenses     2,314       2,031       1,678       7,242       6,231  
    Data processing     1,960       1,536       1,158       5,832       4,534  
    Legal, audit and professional     817       669       1,161       2,559       3,211  
    Regulatory assessments     436       544       320       1,714       1,508  
    Director and shareholder expenses     458       520       207       1,410       849  
    Merger and related expenses     643       14,605       —       16,288       —  
    Intangible assets amortization     1,060       687       80       1,877       389  
    Other real estate owned expense     220       3       —       5,246       —  
    Other expense     2,143       1,700       1,137       5,778       3,775  
    Total noninterest expense     26,125       37,680       15,339       97,791       59,746  
    Income (loss) before income taxes     23,255       (22,527 )     6,294       8,263       36,856  
    Income tax expense (benefit)     6,483       (6,063 )     1,882       2,830       10,946  
    Net income (loss)   $ 16,772     $ (16,464 )   $ 4,412     $ 5,433     $ 25,910  
                                             
    Net income (loss) per share – basic   $ 0.52     $ (0.59 )   $ 0.24     $ 0.22     $ 1.42  
    Net income (loss) per share – diluted   $ 0.51     $ (0.59 )   $ 0.24     $ 0.22     $ 1.39  
    Weighted average common shares-diluted     32,698,714       27,705,844       18,727,519       24,623,397       18,656,742  
    Pre-tax, pre-provision income (2)   $ 19,420     $ 436     $ 7,118     $ 29,953     $ 37,771  
    (1 ) Included (reversal of) provision for unfunded loan commitments of $(1.0) million, $3.3 million and $(307) thousand for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively, and $2.2 million and $(816) thousand for the years ended December 31, 2024 and 2023, respectively
    (2 ) Non-GAAP measure. See – GAAP to Non-GAAP reconciliation.

    California BanCorp and Subsidiary
    Average Balance Sheets and Yield Analysis
    (Unaudited)

        Three Months Ended  
        December 31, 2024     September 30, 2024     December 31, 2023  
        Average Balance     Income/
    Expense    		     Yield/
    Cost    		     Average Balance     Income/
    Expense    		     Yield/
    Cost    		     Average Balance     Income/
    Expense    		     Yield/
    Cost    		  
        ($ in thousands)  
    Assets                                                      
    Interest-earning assets:                                                                        
    Total loans   $ 3,184,918     $ 54,791       6.84   %   $ 2,783,581     $ 47,528       6.79 %   $ 1,954,396     $ 29,968       6.08 %
    Taxable debt securities     147,895       1,698       4.57   %     149,080       1,687       4.50 %     113,375       991       3.47 %
    Tax-exempt debt securities (1)     53,607       305       2.87   %     53,682       306       2.87 %     58,644       353       3.02 %
    Deposits in other financial institutions     422,032       5,123       4.83   %     161,616       2,215       5.45 %     56,313       759       5.35 %
    Fed funds sold/resale agreements     3,353       38       4.51   %     143,140       1,886       5.24 %     9,008       125       5.51 %
    Restricted stock investments and other bank stock     30,341       603       7.91   %     24,587       505       8.17 %     16,394       373       9.03 %
    Total interest-earning assets     3,842,146       62,558       6.48   %     3,315,686       54,127       6.49 %     2,208,130       32,569       5.85 %
    Total noninterest-earning assets     326,601                       277,471                       137,193                  
    Total assets   $ 4,168,747                     $ 3,593,157                     $ 2,345,323                  
                                                                             
    Liabilities and Shareholders’ Equity                                                                        
    Interest-bearing liabilities:                                                                        
    Interest-bearing NOW accounts   $ 704,017     $ 3,784       2.14   %   $ 617,373     $ 2,681       1.73 %   $ 362,579     $ 1,860       2.04 %
    Money market and savings accounts     1,192,692       8,663       2.89   %     999,322       8,392       3.34 %     669,391       4,746       2.81 %
    Time deposits     359,111       4,179       4.63   %     421,241       5,087       4.80 %     208,700       2,331       4.43 %
    Total interest-bearing deposits     2,255,820       16,626       2.93   %     2,037,936       16,160       3.15 %     1,240,670       8,937       2.86 %
    Borrowings:                                                                        
    FHLB advances     —       —       — %       611       9       5.86 %     56,380       802       5.64 %
    Subordinated debt     69,420       1,391       7.97   %     52,246       1,016       7.74 %     17,854       271       6.02 %
    Total borrowings     69,420       1,391       7.97   %     52,857       1,025       7.71 %     74,234       1,073       5.73 %
    Total interest-bearing liabilities     2,325,240       18,017       3.08   %     2,090,793       17,185       3.27 %     1,314,904       10,010       3.02 %
                                                                             
    Noninterest-bearing liabilities:                                                                        
    Noninterest-bearing deposits (2)     1,283,591                       1,031,844                       721,169                  
    Other liabilities     55,007                       41,962                       27,178                  
    Shareholders’ equity     504,909                       428,558                       282,072                  
    Total Liabilities and Shareholders’ Equity   $ 4,168,747                     $ 3,593,157                     $ 2,345,323                  
                                                                             
    Net interest spread                     3.40   %                     3.22 %                     2.83 %
    Net interest income and margin           $ 44,541       4.61   %           $ 36,942       4.43 %           $ 22,559       4.05 %
    Cost of deposits   $ 3,539,411     $ 16,626       1.87   %   $ 3,069,780     $ 16,160       2.09 %   $ 1,961,839     $ 8,937       1.81 %
    Cost of funds   $ 3,608,831     $ 18,017       1.99   %   $ 3,122,637     $ 17,185       2.19 %   $ 2,036,073     $ 10,010       1.95 %
    (1 ) Tax-exempt debt securities yields are presented on a tax equivalent basis using a 21% tax rate.
    (2 ) Average noninterest-bearing deposits represent 36.27%, 33.61% and 36.76% of average total deposits for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively.

    California BanCorp and Subsidiary
    Average Balance Sheets and Yield Analysis
    (Unaudited)

        Year Ended  
        December 31, 2024     December 31, 2023  
        Average Balance     Income/
    Expense    		     Yield/
    Cost    		     Average Balance     Income/
    Expense    		     Yield/
    Cost    		  
        ($ in thousands)  
    Assets                                    
    Interest-earning assets:                                                
    Total loans   $ 2,443,127     $ 159,960       6.55 %   $ 1,918,443     $ 113,951       5.94 %
    Taxable debt securities     136,984       5,827       4.25 %     107,021       3,497       3.27 %
    Tax-exempt debt securities (1)     53,721       1,223       2.88 %     65,674       1,655       3.19 %
    Deposits in other financial institutions     171,939       8,692       5.06 %     46,826       2,434       5.20 %
    Fed funds sold/resale agreements     43,990       2,319       5.27 %     18,114       923       5.10 %
    Restricted stock investments and other bank stock     22,137       1,777       8.03 %     15,930       1,062       6.67 %
    Total interest-earning assets     2,871,898       179,798       6.26 %     2,172,008       123,522       5.69 %
    Total noninterest-earning assets     224,018                       134,225                  
    Total assets   $ 3,095,916                     $ 2,306,233                  
                                                     
    Liabilities and Shareholders’ Equity                                                
    Interest-bearing liabilities:                                                
    Interest-bearing NOW accounts   $ 511,425     $ 10,644       2.08 %   $ 308,537     $ 5,161       1.67 %
    Money market and savings accounts     911,684       26,685       2.93 %     673,176       15,000       2.23 %
    Time deposits     324,249       15,432       4.76 %     180,219       6,704       3.72 %
    Total interest-bearing deposits     1,747,358       52,761       3.02 %     1,161,932       26,865       2.31 %
    Borrowings:                                                
    FHLB advances     19,543       1,103       5.64 %     26,390       1,434       5.43 %
    Subordinated debt     39,479       2,950       7.47 %     17,818       1,085       6.09 %
    Total borrowings     59,022       4,053       6.87 %     44,208       2,519       5.70 %
    Total interest-bearing liabilities     1,806,380       56,814       3.15 %     1,206,140       29,384       2.44 %
                                                     
    Noninterest-bearing liabilities:                                                
    Noninterest-bearing deposits (2)     873,043                       801,882                  
    Other liabilities     36,677                       24,865                  
    Shareholders’ equity     379,816                       273,346                  
    Total Liabilities and Shareholders’ Equity   $ 3,095,916                     $ 2,306,233                  
                                                     
    Net interest spread                     3.11 %                     3.25 %
    Net interest income and margin           $ 122,984       4.28 %           $ 94,138       4.33 %
    Cost of deposits   $ 2,620,401     $ 52,761       2.01 %   $ 1,963,814     $ 26,865       1.37 %
    Cost of funds   $ 2,679,423     $ 56,814       2.12 %   $ 2,008,022     $ 29,384       1.46 %
    (1 ) Tax-exempt debt securities yields are presented on a tax equivalent basis using a 21% tax rate.
    (2 ) Average noninterest-bearing deposits represent 33.32%, and 40.83% of average total deposits for the year ended December 31, 2024 and December 31, 2023, respectively.

    California BanCorp and Subsidiary
    GAAP to Non-GAAP Reconciliation
    (Unaudited)

    The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: (1) adjusted net income (loss), (2) efficiency ratio, (3) adjusted efficiency ratio, (4) pre-tax pre-provision income, (5) adjusted pre-tax pre-provision income, (6) average tangible common equity, (7) adjusted return on average assets, (8) adjusted return on average equity, (9) return on average tangible common equity, (10) adjusted return on average tangible common equity, (11) tangible common equity, (12) tangible assets, (13) tangible common equity to tangible asset ratio, and (14) tangible book value per share. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures.

        Three Months Ended     Year Ended  
        December 31,
    2024    		     September 30,
    2024    		     December 31,
    2023    		     December 31,
    2024    		     December 31,
    2023    		  
        ($ in thousands)  
    Adjusted net income                                        
    Net income (loss)   $ 16,772     $ (16,464 )   $ 4,412     $ 5,433     $ 25,910  
    Add: After-tax Day1 provision for non PCD loans and unfunded loan commitments (1)     —       14,978       —       14,978       —  
    Add: After-tax merger and related expenses (1)     453       10,576       —       11,988       —  
    Adjusted net income (non-GAAP)   $ 17,225     $ 9,090     $ 4,412     $ 32,399     $ 25,910  
                                             
    Efficiency Ratio                                        
    Noninterest expense   $ 26,125     $ 37,680     $ 15,339     $ 97,791     $ 59,746  
    Deduct: Merger and related expenses     643       14,605       —       16,288       —  
    Adjusted noninterest expense     25,482       23,075       15,339       81,503       59,746  
                                             
    Net interest income     44,541       36,942       22,559       122,984       94,138  
    Noninterest income (expense)     1,004       1,174       (102 )     4,760       3,379  
    Total net interest income and noninterest income   $ 45,545     $ 38,116     $ 22,457     $ 127,744     $ 97,517  
    Efficiency ratio (non-GAAP)     57.4 %     98.9 %     68.3 %     76.6 %     61.3 %
    Adjusted efficiency ratio (non-GAAP)     55.9 %     60.5 %     68.3 %     63.8 %     61.3 %
                                             
    Pre-tax pre-provision income                                        
    Net interest income   $ 44,541     $ 36,942     $ 22,559     $ 122,984     $ 94,138  
    Noninterest income (expense)     1,004       1,174       (102 )     4,760       3,379  
    Total net interest income and noninterest income     45,545       38,116       22,457       127,744       97,517  
    Less: Noninterest expense     26,125       37,680       15,339       97,791       59,746  
    Pre-tax pre-provision income (non-GAAP)     19,420       436       7,118       29,953       37,771  
    Add: Merger and related expenses     643       14,605       —       16,288       —  
    Adjusted pre-tax pre-provision income (non-GAAP)   $ 20,063     $ 15,041     $ 7,118     $ 46,241     $ 37,771  
    (1 ) After-tax Day 1 provision for non-PCD loans and unfunded commitments and merger and related expenses are presented using a 29.56% tax rate.
        Three Months Ended     Year Ended  
        December 31,
    2024    		     September 30,
    2024    		     December 31,
    2023    		     December 31,
    2024    		     December 31,
    2023    		  
        ($ in thousands)  
    Return on Average Assets, Equity, and Tangible Equity                              
    Net income (loss)   $ 16,772     $ (16,464 )   $ 4,412     $ 5,433     $ 25,910  
    Adjusted net income (non-GAAP)   $ 17,225     $ 9,090     $ 4,412     $ 32,399     $ 25,910  
                                             
    Average assets   $ 4,168,747     $ 3,593,157     $ 2,345,323     $ 3,095,916     $ 2,306,233  
    Average shareholders’ equity     504,909       428,558       282,072       379,816       273,346  
    Less: Average intangible assets     135,073       104,409       39,035       79,366       39,195  
    Average tangible common equity (non-GAAP)   $ 369,836     $ 324,149     $ 243,037     $ 300,450     $ 234,151  
                                             
    Return on average assets     1.60 %     (1.82 %)     0.75 %     0.18 %     1.12 %
    Adjusted return on average assets (non-GAAP)     1.64 %     1.01 %     0.75 %     1.05 %     1.12 %
    Return on average equity     13.21 %     (15.28 %)     6.21 %     1.43 %     9.48 %
    Adjusted return on average equity (non-GAAP)     13.57 %     8.44 %     6.21 %     8.53 %     9.48 %
    Return on average tangible common equity (non-GAAP)     18.04 %     (20.21 %)     7.20 %     1.81 %     11.07 %
    Adjusted return on average tangible common equity (non-GAAP)     18.53 %     11.16 %     7.20 %     10.78 %     11.07 %
        December 31,
    2024    		     December 31,
    2023    		  
        ($ in thousands except share and per share data)  
    Tangible Common Equity Ratio/Tangible Book Value Per Share                
    Shareholders’ equity   $ 511,836     $ 288,152  
    Less: Intangible assets     134,058       38,998  
    Tangible common equity (non-GAAP)   $ 377,778     $ 249,154  
                     
    Total assets   $ 4,031,654     $ 2,360,252  
    Less: Intangible assets     134,058       38,998  
    Tangible assets (non-GAAP)   $ 3,897,596     $ 2,321,254  
                     
    Equity to asset ratio     12.70 %     12.21 %
    Tangible common equity to tangible asset ratio (non-GAAP)     9.69 %     10.73 %
    Book value per share   $ 15.86     $ 15.69  
    Tangible book value per share (non-GAAP)   $ 11.71     $ 13.56  
    Shares outstanding     32,265,935       18,369,115  

    INVESTOR RELATIONS CONTACT
    Kevin Mc Cabe
    California Bank of Commerce, N.A.
    kmccabe@bankcbc.com
    818.637.7065

    1 Reconciliations of non–U.S. generally accepted accounting principles (“GAAP”) measures are set forth at the end of this press release.

    The MIL Network –

  • MIL-OSI: GCM Grosvenor to Present at the Bank of America Securities Financial Services Conference on February 12, 2025

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, Jan. 29, 2025 (GLOBE NEWSWIRE) — GCM Grosvenor (Nasdaq: GCMG), a global alternative asset management solutions provider, will present at the Bank of America Securities Financial Services Conference on Wednesday, February 12, 2025, at 2:40 p.m. ET.  

    A link to the live audio webcast of the presentation is available on GCM Grosvenor’s public shareholders website and the event website. For those unable to listen to the live audio webcast, a replay will be available within 24 hours after the conclusion of the live event. 

    About GCM Grosvenor 
    GCM Grosvenor (Nasdaq: GCMG) is a global alternative asset management solutions provider with approximately $80 billion in assets under management across private equity, infrastructure, real estate, credit, and absolute return investment strategies. The firm has specialized in alternatives for more than 50 years and is dedicated to delivering value for clients by leveraging its cross-asset class and flexible investment platform. GCM Grosvenor’s experienced team of approximately 550 professionals serves a global client base of institutional and individual investors. The firm is headquartered in Chicago, with offices in New York, Toronto, London, Frankfurt, Tokyo, Hong Kong, Seoul and Sydney. For more information, visit: gcmgrosvenor.com. 

    Source: GCM Grosvenor  

    Public Shareholders Contact 
    Stacie Selinger 
    sselinger@gcmlp.com 
    312-506-6583 

    Media Contact 
    Tom Johnson and Abigail Ruck
    H/Advisors Abernathy 
    tom.johnson@h-advisors.global / abigail.ruck@h-advisors.global 
    212-371-5999 

    The MIL Network –

  • MIL-OSI: Hanover Bancorp, Inc. Reports 2024 Full Year And Fourth Quarter Results Highlighted by Fourth Quarter Robust Margin Expansion and Record Non-interest Income

    Source: GlobeNewswire (MIL-OSI)

    Fourth Quarter Performance Highlights

    • Net Income: Net income for the quarter ended December 31, 2024 totaled $3.9 million or $0.52 per diluted share (including Series A preferred shares).
    • Record Non-interest Income: The Company reported record non-interest income of $4.2 million for the quarter ended December 31, 2024, an increase of $0.2 million or 5.89% from the quarter ended September 30, 2024 and $0.9 million or 28.67% from the quarter ended December 31, 2023.
    • Net Interest Income: Net interest income was $13.8 million for the quarter ended December 31, 2024, an increase of $0.7 million or 5.39% from the quarter ended September 30, 2024 and $1.1 million, or 9.08% from the quarter ended December 31, 2023.
    • Net Interest Margin: The Company’s net interest margin during the quarter ended December 31, 2024 increased to 2.53% from 2.37% in the quarter ended September 30, 2024 and 2.40% in the quarter ended December 31, 2023.
    • Strong Liquidity Position: At December 31, 2024, undrawn liquidity sources, which include cash and unencumbered securities and secured and unsecured funding capacity, totaled $713.1 million, or approximately 283% of uninsured deposit balances.
    • Deposit Activity: Core deposits, consisting of Demand, NOW, Savings and Money Market, increased $3.1 million or 0.84% annualized from September 30, 2024 and $74.1 million or 5.36% from December 31, 2023. Demand deposits increased $5.3 million or 10.33% annualized from September 30, 2024 and $3.9 million or 1.86% from December 31, 2023. Total deposits increased $49.7 million or 2.61% from December 31, 2023. Insured and collateralized deposits, which include municipal deposits, accounted for approximately 87% of total deposits at December 31, 2024.
    • Loan Diversification Strategy: The continued success in loan diversification resulted in C&I loans increasing by $61.0 million, or 56.52%, year over year, increasing to 8.51% of total loans at December 31, 2024. In addition, the commercial real estate concentration ratio improved, declining from 432% of capital at December 31, 2023 to 385% of capital at December 31, 2024. The Company continues to focus loan growth primarily in residential loan products originated for sale to specific buyers in the secondary market, C&I and SBA loans, which strategically enhances our management of liquidity and capital while producing additional non-interest income.
    • Asset Quality: At December 31, 2024, the Bank’s asset quality remained solid with non-performing loans totaling $16.4 million, representing 0.82% of the total loan portfolio, while the allowance for credit losses was 1.15% of total loans. Loans secured by office space accounted for 2.45% of the total loan portfolio with a total balance of $48.7 million, of which less than 1% is located in Manhattan.
    • Banking Initiatives: At December 31, 2024, the Company’s banking initiatives reflected continuing momentum:
      • SBA & USDA Banking: Gains on sale of SBA loans totaled $2.5 million for the quarter ended December 31, 2024, representing a 9.76% increase over the comparable 2023 quarter. Total SBA loans sold were $30.9 million for the quarter ended December 31, 2024, representing a 3.98% increase over the comparable 2023 quarter. Premiums earned on the sale of SBA loans increased to 9.06% for the quarter ended December 31, 2024 from 8.26% for the quarter ended December 31, 2023.
      • C&I Banking/Hauppauge Business Banking Center: The C&I Banking Team and the Hauppauge Business Banking Center increased deposits to $96.4 million as of December 31, 2024 from $44.9 million at December 31, 2023. This growth has continued since year end, with these deposits reaching $104 million at January 27, 2025. Loan originations tied to this office were $33.5 million during the fourth quarter of 2024 and $88.4 million for the full year. Momentum continues to build with deposit and C&I loan pipelines related to this office of $43 million and $112 million, respectively.
      • Residential Lending: The Bank continues to originate loans for its portfolio and for sale in the secondary market under its recently developed flow origination program. Of the $26.1 million in closed loans originated in the quarter ended December 31, 2024, $11.7 million were originated for the Bank’s portfolio and reflected a weighted average yield of 6.88% before origination and other fees, which average 50-100 bps per loan, and a weighted average LTV of 62%. The remaining $14.4 million of closed loans were originated for sale in the secondary market. Under this program, the Bank produced total gains of $0.5 million and a resulting premium of 2.42% in the fourth quarter of 2024.
    • Technology: The Company expects to complete a core processing system conversion from its existing provider to FIS Horizon on or about February 15, 2025. This conversion is expected to deliver immediate and tangible benefits to the Bank’s operations and customers, offering material improvements in user interfaces, functionality and efficiency that will better support our commitment to a digital forward future on better financial terms.
    • Tangible Book Value Per Share: Tangible book value per share (including Series A preferred shares) was $23.86 at December 31, 2024, an increase of 9.97% annualized from $23.28 at September 30, 2024 and 6.00% from $22.51 at December 31, 2023.
    • Quarterly Cash Dividend: The Company’s Board of Directors approved a $0.10 per share cash dividend on both common and Series A preferred shares payable on February 19, 2025 to stockholders of record on February 12, 2025.

    MINEOLA, N.Y., Jan. 29, 2025 (GLOBE NEWSWIRE) — Hanover Bancorp, Inc. (“Hanover” or “the Company” – NASDAQ: HNVR), the holding company for Hanover Community Bank (“the Bank”), today reported results for the quarter and year ended December 31, 2024 and the declaration of a $0.10 per share cash dividend on both common and Series A preferred shares payable on February 19, 2025 to stockholders of record on February 12, 2025.

    Earnings Summary for the Quarter Ended December 31, 2024

    The Company reported net income for the quarter ended December 31, 2024 of $3.9 million or $0.52 per diluted share (including Series A preferred shares), versus $3.8 million or $0.51 per diluted share (including Series A preferred shares) in the quarter ended December 31, 2023. Returns on average assets, average stockholders’ equity and average tangible equity were 0.70%, 7.98% and 8.87%, respectively, for the quarter ended December 31, 2024, versus 0.69%, 8.10% and 9.06%, respectively, for the comparable quarter of 2023.

    While net interest income and non-interest income increased during the quarter ended December 31, 2024 compared to the quarter ended December 31, 2023, these gains were partially offset by an increase in non-interest expenses, particularly compensation and benefits. The increase in non-interest income is primarily related to the increases in the gain on sale of loans held-for-sale and loan servicing and fee income. This increase is reflective of the strengthening of secondary market premiums in connection with sales of SBA loans and the gains on the recently developed residential loan flow program. The increase in compensation and benefits expense in the fourth quarter of 2024 versus the comparable 2023 quarter was primarily related to lower deferred loan origination costs that were offset by lower incentive compensation expense resulting from reduced lending activity.

    Net interest income was $13.8 million for the quarter ended December 31, 2024, an increase of $1.1 million, or 9.08%, versus the comparable 2023 quarter due to improvement of the Company’s net interest margin to 2.53% in the 2024 quarter from 2.40% in the comparable 2023 quarter. The yield on interest earning assets increased to 6.06% in the 2024 quarter from 5.91% in the comparable 2023 quarter, an increase of 15 basis points that was partially offset by a 5 basis point increase in the cost of interest-bearing liabilities to 4.24% in 2024 from 4.19% in the fourth quarter of 2023. The increase in the net interest margin was a result of the recent reductions in the Fed Funds effective rate and the liability sensitive nature of the Bank’s balance sheet.

    Earnings Summary for the Year Ended December 31, 2024

    For the year ended December 31, 2024, the Company reported net income of $12.3 million or $1.66 per diluted share (including Series A preferred shares), versus $13.6 million or $1.84 per diluted share (including Series A preferred shares) a year ago.

    The decrease in net income recorded for the year ended December 31, 2024 from the comparable 2023 period resulted from an increase in the provision for credit losses and an increase in non-interest expense, which were partially offset by an increase in non-interest income. The year-over-year increase in the provision for credit losses was primarily related to the recording of a $4.0 million provision for credit losses in the June 2024 quarter that was mainly attributable to an ACL on an individually evaluated loan of $2.5 million and $1.1 million related to ongoing enhancements to the CECL model. The increase in non-interest income is primarily related to the increases in the gain on sale of loans held-for-sale and loan servicing and fee income which were partially offset by a decrease in other operating income. In September 2023, the Company settled ongoing litigation and received a settlement payment of $975 thousand which was recorded in other operating income. The increase in non-interest expense was primarily attributed to additional staff for the SBA, C&I Banking and Operations teams. The Company’s effective tax rate decreased to 24.62% for the year ended December 31, 2024 from 25.85% in the comparable 2023 period.

    Net interest income was $53.1 million for the year ended December 31, 2024, an increase of $1.2 million, or 2.32% from the comparable 2023 period. The Company’s net interest margin was 2.44% in 2024 and 2.59% in 2023. The yield on interest earning assets increased to 6.12% in 2024 from 5.67% in 2023, an increase of 45 basis points that was offset by a 72 basis point increase in the cost of interest-bearing liabilities to 4.40% in 2024 from 3.68% in 2023 due to the rapid and significant rise in market interest rates.

    Our imminent core system conversion is expected to position us to compete more effectively across all lines of business, as customers expect greater convenience and technological capabilities, and will enable the Bank to realize operational efficiencies while maximizing our customer appeal. The substantial improvement in features and functionality expected with the conversion will be achieved on better financial terms than under our current system, enabling us to realize a material gain in performance with no adverse impact to operating expenses.

    Michael P. Puorro, Chairman and Chief Executive Officer, commented on the Company’s quarterly results: “We are pleased with fourth-quarter results. Notable increases in net interest margin, tangible book value, returns on average assets and average tangible equity complemented further improvement in our CRE concentration ratio and sound credit quality, bringing 2024 to a well-rounded conclusion. Building on this momentum, we enter 2025 with strong loan and deposit pipelines across our critical verticals, including C&I, SBA and Residential Banking and the benefit of diversified income streams. Ongoing performance will be enhanced by our pending core system conversion, which will deliver tangible operational efficiencies and customer benefits, and could be positively impacted by further Federal Open Market Committee (“FOMC”) rate decreases, an improved yield curve, a favorable banking environment and potential qualification for the Russell 2000, which would increase institutional ownership and enhance the liquidity of our stock. We continue to focus on scaling our key verticals while maintaining prudent expense management, which we believe will increase shareholder value through enhanced performance.”

    Balance Sheet Highlights

    Total assets at December 31, 2024 were $2.31 billion versus $2.27 billion at December 31, 2023. Total securities available for sale at December 31, 2024 were $83.8 million, an increase of $22.3 million from December 31, 2023, primarily driven by growth in U.S. Treasury securities, corporate bonds and mortgage-backed securities.

    Total deposits at December 31, 2024 were $1.95 billion, an increase of $49.7 million or 2.61%, compared to $1.90 billion at December 31, 2023. Our loan to deposit ratio was 102% at December 31, 2024 and 103% at December 31, 2023.

    The Company had $509.3 million in total municipal deposits at December 31, 2024, at a weighted average rate of 3.72% versus $528.1 million at a weighted average rate of 4.62% at December 31, 2023. The Company’s municipal deposit program is built on long-standing relationships developed in the local marketplace. This core deposit business will continue to provide a stable source of funding for the Company’s lending products at costs lower than those of consumer deposits and market-based borrowings. The Company continues to broaden its municipal deposit base and currently services 39 customer relationships.

    Total borrowings at December 31, 2024 were $107.8 million, with a weighted average rate and term of 4.11% and 23 months, respectively. At December 31, 2024 and 2023, the Company had $107.8 million and $126.7 million, respectively, of term FHLB advances outstanding. The Company had no FHLB overnight borrowings outstanding at December 31, 2024 and 2023. At December 31, 2024 the Company had no borrowings outstanding from the Federal Reserve’s Paycheck Protection Program Liquidity Facility (“PPPLF”), while at December 31, 2023 the Company had $2.3 million in borrowings from the PPPLF. The Company had no borrowings outstanding under lines of credit with correspondent banks at December 31, 2024 and 2023.

    Stockholders’ equity was $196.6 million at December 31, 2024 compared to $184.8 million at December 31, 2023. The $11.8 million increase was primarily due to an increase of $9.4 million in retained earnings and a decrease of $1.1 million in accumulated other comprehensive loss. The increase in retained earnings was due primarily to net income of $12.3 million for the year ended December 31, 2024, which was offset by $2.9 million of dividends declared. The accumulated other comprehensive loss at December 31, 2024 was 0.68% of total equity and was comprised of a $1.0 million after tax net unrealized loss on the investment portfolio and a $0.3 million after tax net unrealized loss on derivatives.

    Loan Portfolio

    For the year ended December 31, 2024, the Bank’s loan portfolio grew to $1.99 billion, an increase of $28.3 million or 1.45%. Growth was concentrated primarily in residential, SBA and C&I loans. At December 31, 2024, the Company’s residential loan portfolio (including home equity) amounted to $729.3 million, with an average loan balance of $483 thousand and a weighted average loan-to-value ratio of 57%. Commercial real estate and multifamily loans totaled $1.09 billion at December 31, 2024, with an average loan balance of $1.5 million and a weighted average loan-to-value ratio of 59%. As will be discussed below, approximately 37% of the multifamily portfolio is subject to rent regulation. The Company’s commercial real estate concentration ratio continued to improve, decreasing to 385% of capital at December 31, 2024 from 432% of capital at December 31, 2023, with loans secured by office space accounting for 2.45% of the total loan portfolio and totaling $48.7 million. The Company’s loan pipeline with executed term sheets at December 31, 2024 is approximately $237 million, with approximately 89% being niche-residential, conventional C&I and SBA & USDA lending opportunities.

    The Bank’s investments in diversification continue to deliver results, with the volume of SBA & USDA loans originated for sale and the volume of residential loans originated for sale sustaining momentum. During the quarter ended December 31, 2024, the Company sold $19.1 million of residential loans under this program and recorded gains on sale of loans held-for-sale of $0.5 million. During the quarters ended December 31, 2024 and 2023, the Company sold approximately $30.9 million and $29.7 million, respectively, in the government guaranteed portion of SBA loans and recorded gains on sale of loans held-for-sale of $2.5 million and $2.3 million, respectively. We expect the volume of activity to increase in 2025. Because we continue to prioritize the management of liquidity and capital, new business development with respect to residential and SBA & USDA lending is largely focused on originations for sale over portfolio growth. Conversely, portfolio growth is the primary focus of our C&I Banking initiative, which continues to drive deposit and loan growth at our Hauppauge Business Banking Center and will expand with the pending launch of our Port Jefferson branch.

    Commercial Real Estate Statistics

    A significant portion of the Bank’s commercial real estate portfolio consists of loans secured by Multi-Family and CRE-Investor owned real estate that are predominantly subject to fixed interest rates for an initial period of 5 years. The Bank’s exposure to Land/Construction loans is minor at $13.5 million, all at floating interest rates, and CRE-owner occupied loans have a mix of floating rates. As shown below, 23% of the loan balances in these combined portfolios will mature in 2025 and 2026, with another 55% maturing in 2027.

    Multi-Family Market Rent Portfolio Fixed Rate Reset/Maturity Schedule   Multi-Family Stabilized Rent Portfolio Fixed Rate Reset/Maturity Schedule
    Calendar Period   # Loans   Total O/S ($000’s omitted)   Avg O/S ($000’s omitted)   Avg Interest Rate   Calendar Period   # Loans   Total O/S ($000’s omitted)   Avg O/S ($000’s omitted)   Avg Interest Rate
                                                     
    2025   10   $ 16,416   $ 1,642   4.30 %   2025   14   $ 19,527   $ 1,395   4.82 %
    2026   36     118,503     3,292   3.66 %   2026   20     42,901     2,145   3.67 %
    2027   71     176,490     2,486   4.30 %   2027   53     124,773     2,354   4.22 %
    2028   18     29,858     1,659   6.15 %   2028   12     10,221     852   7.14 %
    2029   6     4,957     826   7.70 %   2029   4     4,346     1,087   6.38 %
    2030+   2     639     320   4.47 %   2030+   4     1,169     292   5.41 %
    Fixed Rate   143     346,863     2,426   4.29 %   Fixed Rate   107     202,937     1,897   4.36 %
    Floating Rate   3     716     239   9.22 %   Floating Rate   —     —     —   — %
    Total   146   $ 347,579   $ 2,381   4.30 %   Total   107   $ 202,937   $ 1,897   4.36 %
    CRE Investor Portfolio Fixed Rate Reset/Maturity Schedule
    Calendar Period   # Loans   Total O/S ($000’s omitted)   Avg O/S ($000’s omitted)   Avg Interest Rate
                           
    2025   30   $ 23,439   $ 781   6.12 %
    2026   33     44,679     1,354   4.87 %
    2027   90     163,358     1,815   5.03 %
    2028   30     31,803     1,060   6.63 %
    2029   4     2,378     595   7.03 %
    2030+   12     5,745     479   6.24 %
    Fixed Rate   199     271,402     1,364   5.33 %
    Floating Rate   10     27,103     2,710   8.95 %
    Total CRE-Inv.   209   $ 298,505   $ 1,428   5.66 %


    Rental breakdown of Multi-Family portfolio

    The table below segments our portfolio of loans secured by Multi-Family properties based on rental terms and location. As shown below, 63% of the combined portfolio is secured by properties subject to free market rental terms, which is the dominant tenant type. Both the Market Rent and Stabilized Rent segments of our portfolio present very similar average borrower profiles. The portfolio is primarily located in the New York City boroughs of Brooklyn, the Bronx and Queens.

    Multi-Family Loan Portfolio – Loans by Rent Type
    Rent Type   # of Notes   Outstanding Loan Balance   % of Total Multi-Family   Avg Loan Size   LTV   Current DSCR   Avg # of Units
            ($000’s omitted)         ($000’s omitted)              
                                         
    Market   146   $ 347,579   63 %   $ 2,381   61.6 %   1.39   11
    Location                                    
    Manhattan   7   $ 17,840   3 %   $ 2,549   51.9 %   1.62   15
    Other NYC   93   $ 244,408   44 %   $ 2,628   61.2 %   1.38   10
    Outside NYC   46   $ 85,331   16 %   $ 1,855   64.8 %   1.39   13
                                         
    Stabilized   107   $ 202,937   37 %   $ 1,897   62.4 %   1.39   12
    Location                                    
    Manhattan   6   $ 9,035   2 %   $ 1,506   44.7 %   1.59   17
    Other NYC   89   $ 174,888   32 %   $ 1,965   63.2 %   1.38   11
    Outside NYC   12   $ 19,014   3 %   $ 1,584   64.4 %   1.40   16

    Office Property Exposure

    The Bank’s exposure to the Office market is minor at $49 million. The pool has a 1.28x weighted average DSCR, a 53% weighted average LTV and less than $400,000 of exposure in Manhattan.

    Asset Quality and Allowance for Credit Losses

    At December 31, 2024, the Bank’s asset quality remained solid with non-performing loans totaling $16.4 million which represented 0.82% of total loans outstanding. Non-performing loans were $14.5 million at December 31, 2023 and $15.4 million at September 30, 2024.

    During the fourth quarter of 2024, the Bank recorded a provision for credit losses expense of $0.4 million. The December 31, 2024, allowance for credit losses balance was $22.8 million versus $19.7 million at December 31, 2023 and $23.4 million at September 30, 2024. The allowance for credit losses as a percent of total loans was 1.15% at December 31, 2024 and 1.17% at September 30, 2024, inclusive of a $3.2 million allowance on individually analyzed loans, versus 1.00% at December 31, 2023, which does not include the aforementioned $3.2 million allowance.

    Net Interest Margin

    The Bank’s net interest margin increased to 2.53% for the quarter ended December 31, 2024 compared to 2.37% in the quarter ended September 30, 2024 and 2.40% in the quarter ended December 31, 2023 due to the recent reductions in the Fed Funds effective rate and the liability sensitive nature of the Bank’s balance sheet.

    About Hanover Community Bank and Hanover Bancorp, Inc.

    Hanover Bancorp, Inc. (NASDAQ: HNVR), is the bank holding company for Hanover Community Bank, a community commercial bank focusing on highly personalized and efficient services and products responsive to client needs. Management and the Board of Directors are comprised of a select group of successful local businesspeople who are committed to the success of the Bank by knowing and understanding the metro-New York area’s financial needs and opportunities. Backed by state-of-the-art technology, Hanover offers a full range of financial services. Hanover offers a complete suite of consumer, commercial, and municipal banking products and services, including multi-family and commercial mortgages, residential loans, business loans and lines of credit. Hanover also offers its customers access to 24-hour ATM service with no fees attached, free checking with interest, telephone banking, advanced technologies in mobile and internet banking for our consumer and business customers, safe deposit boxes and much more. The Company’s corporate administrative office is located in Mineola, New York where it also operates a full-service branch office along with additional branch locations in Garden City Park, Hauppauge, Forest Hills, Flushing, Sunset Park, Rockefeller Center and Chinatown, New York, and Freehold, New Jersey, with a new branch opening in Port Jefferson, New York in the first quarter of 2025.

    Hanover Community Bank is a member of the Federal Deposit Insurance Corporation and is an Equal Housing/Equal Opportunity Lender. For further information, call (516) 548-8500 or visit the Bank’s website at www.hanoverbank.com.

    Non-GAAP Disclosure

    This discussion includes non-GAAP financial measures, including the Company’s tangible common equity (“TCE”) ratio, TCE, tangible assets, tangible book value per share, return on average tangible equity and efficiency ratio. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes that the presentation of non-GAAP financial measures provides both management and investors with a greater understanding of the Company’s operating results and trends in addition to the results measured in accordance with GAAP, and provides greater comparability across time periods. While management uses non-GAAP financial measures in its analysis of the Company’s performance, this information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures used by other financial institutions.

    With respect to the calculations of and reconciliations of TCE, tangible assets, TCE ratio and tangible book value per share, reconciliations to the most comparable U.S. GAAP measures are provided in the tables that follow.

    Forward-Looking Statements

    This release may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “should,” “plan,” “estimate,” “predict,” “continue,” and “potential” or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Hanover Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Hanover Bancorp, Inc. may turn out to be incorrect. They can be affected by inaccurate assumptions that Hanover Bancorp, Inc. might make or by known or unknown risks and uncertainties, including those discussed in our Annual Report on Form 10-K under Item 1A – Risk Factors, as updated by our subsequent filings with the Securities and Exchange Commission. Further, the adverse effect of health emergencies or natural disasters on the Company, its customers, and the communities where it operates may adversely affect the Company’s business, results of operations and financial condition for an indefinite period of time. Consequently, no forward-looking statement can be guaranteed. Hanover Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release or to conform these statements to actual events.

    Investor and Press Contact:
    Lance P. Burke
    Chief Financial Officer
    (516) 548-8500

    HANOVER BANCORP, INC.            
    STATEMENTS OF CONDITION (unaudited)            
    (dollars in thousands)            
                   
                   
        December 31,   September 30,   December 31,  
          2024       2024       2023    
    Assets              
    Cash and cash equivalents $ 162,857     $ 141,231     $ 177,207    
    Securities-available for sale, at fair value   83,755       98,359       61,419    
    Investments-held to maturity   3,758       3,828       4,041    
    Loans held for sale   12,404       16,721       8,904    
                   
    Loans, net of deferred loan fees and costs   1,985,524       2,005,813       1,957,199    
    Less: allowance for credit losses   (22,779 )     (23,406 )     (19,658 )  
    Loans, net   1,962,745       1,982,407       1,937,541    
                   
    Goodwill     19,168       19,168       19,168    
    Premises & fixed assets   15,337       16,373       15,886    
    Operating lease assets   8,337       8,776       9,754    
    Other assets   43,749       40,951       36,140    
      Assets $ 2,312,110     $ 2,327,814     $ 2,270,060    
                   
    Liabilities and stockholders’ equity            
    Core deposits $ 1,456,513     $ 1,453,444     $ 1,382,397    
    Time deposits   497,770       504,100       522,198    
    Total deposits   1,954,283       1,957,544       1,904,595    
                   
    Borrowings   107,805       125,805       128,953    
    Subordinated debentures   24,689       24,675       24,635    
    Operating lease liabilities   9,025       9,472       10,459    
    Other liabilities   19,670       17,979       16,588    
      Liabilities   2,115,472       2,135,475       2,085,230    
                   
    Stockholders’ equity   196,638       192,339       184,830    
      Liabilities and stockholders’ equity $ 2,312,110     $ 2,327,814     $ 2,270,060    
                   
    HANOVER BANCORP, INC.                
    CONSOLIDATED STATEMENTS OF INCOME (unaudited)              
    (dollars in thousands, except per share data)                
                       
        Three Months Ended   Year Ended  
        12/31/2024   12/31/2023   12/31/2024   12/31/2023  
                       
    Interest income $ 33,057   $ 31,155   $ 133,022   $ 113,626  
    Interest expense   19,249     18,496     79,930     61,739  
      Net interest income   13,808     12,659     53,092     51,887  
    Provision for credit losses   400     200     4,940     2,132  
      Net interest income after provision for credit losses   13,408     12,459     48,152     49,755  
                       
    Loan servicing and fee income   981     778     3,690     2,809  
    Service charges on deposit accounts   136     85     469     297  
    Gain on sale of loans held-for-sale   3,014     2,326     10,940     5,841  
    Gain on sale of investments   27     –     31     –  
    Other operating income   29     65     209     1,744  
      Non-interest income   4,187     3,254     15,339     10,691  
                       
    Compensation and benefits   6,699     5,242     25,600     21,562  
    Occupancy and equipment   1,810     1,746     7,222     6,628  
    Data processing   536     530     2,096     2,063  
    Professional fees   782     729     3,079     3,191  
    Federal deposit insurance premiums   375     375     1,418     1,476  
    Other operating expenses   2,198     2,048     7,697     7,200  
      Non-interest expense   12,400     10,670     47,112     42,120  
                       
      Income before income taxes   5,195     5,043     16,379     18,326  
    Income tax expense   1,293     1,280     4,033     4,737  
                       
      Net income $ 3,902   $ 3,763   $ 12,346   $ 13,589  
                       
    Earnings per share (“EPS”):(1)                
    Basic $ 0.53   $ 0.51   $ 1.67   $ 1.85  
    Diluted $ 0.52   $ 0.51   $ 1.66   $ 1.84  
                       
    Average shares outstanding for basic EPS (1)(2)   7,427,583     7,324,133     7,403,758     7,326,903  
    Average shares outstanding for diluted EPS (1)(2)   7,456,471     7,383,529     7,432,741     7,386,299  
                       
    (1) Calculation includes common stock and Series A preferred stock.              
    (2) Average shares outstanding before subtracting participating securities.              
                       
    Note: Prior period information has been adjusted to conform to current period presentation.          
    HANOVER BANCORP, INC.                    
    CONSOLIDATED STATEMENTS OF INCOME (unaudited)                  
    QUARTERLY TREND                    
    (dollars in thousands, except per share data)                    
                           
        Three Months Ended  
        12/31/2024   9/30/2024   6/30/2024   3/31/2024   12/31/2023  
                           
    Interest income $ 33,057   $ 34,113   $ 33,420   $ 32,432   $ 31,155  
    Interest expense   19,249     21,011     20,173     19,497     18,496  
      Net interest income   13,808     13,102     13,247     12,935     12,659  
    Provision for credit losses   400     200     4,040     300     200  
      Net interest income after provision for credit losses   13,408     12,902     9,207     12,635     12,459  
                           
    Loan servicing and fee income   981     960     836     913     778  
    Service charges on deposit accounts   136     123     114     96     85  
    Gain on sale of loans held-for-sale   3,014     2,834     2,586     2,506     2,326  
    Gain on sale of investments   27     –     4     –     –  
    Other operating income   29     37     82     61     65  
      Non-interest income   4,187     3,954     3,622     3,576     3,254  
                           
    Compensation and benefits   6,699     6,840     6,499     5,562     5,242  
    Occupancy and equipment   1,810     1,799     1,843     1,770     1,746  
    Data processing   536     547     495     518     530  
    Professional fees   782     762     717     818     729  
    Federal deposit insurance premiums   375     360     365     318     375  
    Other operating expenses   2,198     1,930     1,751     1,818     2,048  
      Non-interest expense   12,400     12,238     11,670     10,804     10,670  
                           
      Income before income taxes   5,195     4,618     1,159     5,407     5,043  
    Income tax expense   1,293     1,079     315     1,346     1,280  
                           
      Net income $ 3,902   $ 3,539   $ 844   $ 4,061   $ 3,763  
                           
    Earnings per share (“EPS”):(1)                    
    Basic $ 0.53   $ 0.48   $ 0.11   $ 0.55   $ 0.51  
    Diluted $ 0.52   $ 0.48   $ 0.11   $ 0.55   $ 0.51  
                           
    Average shares outstanding for basic EPS (1)(2)   7,427,583     7,411,064     7,399,816     7,376,227     7,324,133  
    Average shares outstanding for diluted EPS (1)(2)   7,456,471     7,436,068     7,449,110     7,420,926     7,383,529  
                           
    (1) Calculation includes common stock and Series A preferred stock.                  
    (2) Average shares outstanding before subtracting participating securities.                  
                           
    Note: Prior period information has been adjusted to conform to current period presentation.              
    HANOVER BANCORP, INC.                
    SELECTED FINANCIAL DATA (unaudited)              
    (dollars in thousands)                
                     
                     
      Three Months Ended   Year Ended  
      12/31/2024   12/31/2023   12/31/2024   12/31/2023  
    Profitability:                
    Return on average assets   0.70 %     0.69 %     0.55 %     0.66 %  
    Return on average equity (1)   7.98 %     8.10 %     6.45 %     7.44 %  
    Return on average tangible equity (1)   8.87 %     9.06 %     7.18 %     8.33 %  
    Pre-provision net revenue to average assets   1.00 %     0.97 %     0.95 %     0.99 %  
    Yield on average interest-earning assets   6.06 %     5.91 %     6.12 %     5.67 %  
    Cost of average interest-bearing liabilities   4.24 %     4.19 %     4.40 %     3.68 %  
    Net interest rate spread (2)   1.82 %     1.72 %     1.72 %     1.99 %  
    Net interest margin (3)   2.53 %     2.40 %     2.44 %     2.59 %  
    Non-interest expense to average assets   2.21 %     1.97 %     2.11 %     2.04 %  
    Operating efficiency ratio (4)   69.01 %     67.05 %     68.88 %     67.31 %  
                     
    Average balances:                
    Interest-earning assets $ 2,169,595     $ 2,090,839     $ 2,174,000     $ 2,004,634    
    Interest-bearing liabilities   1,804,700       1,751,330       1,818,110       1,678,464    
    Loans   2,003,686       1,910,409       2,005,524       1,829,586    
    Deposits   1,853,828       1,767,753       1,840,378       1,675,913    
    Borrowings   153,126       170,793       174,327       182,307    
                     
                     
    (1) Includes common stock and Series A preferred stock.              
    (2) Represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
    (3) Represents net interest income divided by average interest-earning assets.          
    (4) Represents non-interest expense divided by the sum of net interest income and non-interest income excluding gain on sale of securities available for sale.
    HANOVER BANCORP, INC.                
    SELECTED FINANCIAL DATA (unaudited)                
    (dollars in thousands, except share and per share data)              
                     
      At or For the Three Months Ended  
      12/31/2024   9/30/2024   6/30/2024   3/31/2024  
    Asset quality:                
    Provision for credit losses – loans (1) $ 400     $ 200     $ 3,850     $ 300    
    Net (charge-offs)/recoveries   (1,027 )     (438 )     (79 )     (85 )  
    Allowance for credit losses   22,779       23,406       23,644       19,873    
    Allowance for credit losses to total loans (2)   1.15 %     1.17 %     1.17 %     0.99 %  
    Non-performing loans $ 16,368     $ 15,365     $ 15,828     $ 14,878    
    Non-performing loans/total loans   0.82 %     0.77 %     0.79 %     0.74 %  
    Non-performing loans/total assets   0.71 %     0.66 %     0.68 %     0.64 %  
    Allowance for credit losses/non-performing loans   139.17 %     152.33 %     149.38 %     133.57 %  
                     
    Capital (Bank only):                
    Tier 1 Capital $ 201,744     $ 198,196     $ 195,703     $ 195,889    
    Tier 1 leverage ratio   9.13 %     8.85 %     8.89 %     8.90 %  
    Common equity tier 1 capital ratio   13.32 %     12.99 %     12.78 %     12.99 %  
    Tier 1 risk based capital ratio   13.32 %     12.99 %     12.78 %     12.99 %  
    Total risk based capital ratio   14.58 %     14.24 %     14.21 %     14.19 %  
                     
    Equity data:                
    Shares outstanding (3)   7,427,127       7,428,366       7,402,163       7,392,412    
    Stockholders’ equity $ 196,638     $ 192,339     $ 190,072     $ 189,543    
    Book value per share (3)   26.48       25.89       25.68       25.64    
    Tangible common equity (3)   177,220       172,906       170,625       170,080    
    Tangible book value per share (3)   23.86       23.28       23.05       23.01    
    Tangible common equity (“TCE”) ratio (3)   7.73 %     7.49 %     7.38 %     7.43 %  
                     
    (1) Excludes $0, $0, $190 thousand and $0 provision for credit losses on unfunded commitments for the quarters ended 12/31/24,
    9/30/24, 6/30/24 and 3/31/24, respectively.                
    (2) Calculation excludes loans held for sale.                
    (3) Includes common stock and Series A preferred stock.                
                     
    Note: Prior period information has been adjusted to conform to current period presentation.          
    HANOVER BANCORP, INC.                
    STATISTICAL SUMMARY                
    QUARTERLY TREND                
    (unaudited, dollars in thousands, except share data)              
                       
        12/31/2024   9/30/2024   6/30/2024   3/31/2024  
                       
    Loan distribution (1):                
    Residential mortgages $ 702,832     $ 719,037     $ 733,040     $ 730,017    
    Multifamily     550,570       557,634       562,503       568,043    
    Commercial real estate   536,288       529,948       549,725       556,708    
    Commercial & industrial   168,909       171,899       139,209       123,419    
    Home equity   26,422       26,825       27,992       26,879    
    Consumer     503       470       485       449    
                       
    Total loans $ 1,985,524     $ 2,005,813 $ 2,012,954     $ 2,005,515    
                       
    Sequential quarter growth rate   -1.01 %     -0.35 %     0.37 %     2.47 %  
                       
    CRE concentration ratio   385 %     397 %     403 %     416 %  
                       
    Loans sold during the quarter $ 53,499     $ 43,537     $ 35,302     $ 26,735    
                       
    Funding distribution:                
    Demand   $ 211,656     $ 206,327     $ 199,835     $ 202,934    
    N.O.W.     692,890       621,880       661,998       708,897    
    Savings     48,885       53,024       44,821       48,081    
    Money market   503,082       572,213       571,170       493,123    
    Total core deposits   1,456,513       1,453,444       1,477,824       1,453,035    
    Time     497,770       504,100       464,105       464,227    
    Total deposits   1,954,283       1,957,544       1,941,929       1,917,262    
    Borrowings   107,805       125,805       148,953       148,953    
    Subordinated debentures   24,689       24,675       24,662       24,648    
                       
    Total funding sources $ 2,086,777     $ 2,108,024 $ 2,115,544     $ 2,090,863    
                       
    Sequential quarter growth rate – total deposits   -0.17 %     0.80 %     1.29 %     0.67 %  
                       
    Period-end core deposits/total deposits ratio   74.53 %     74.25 %     76.10 %     75.79 %  
                       
    Period-end demand deposits/total deposits ratio   10.83 %     10.54 %     10.29 %     10.58 %  
                       
    (1) Excluding loans held for sale                
    HANOVER BANCORP, INC.                    
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1)(unaudited)          
    (dollars in thousands, except share and per share amounts)              
                         
                         
      12/31/2024   9/30/2024   6/30/2024   3/31/2024   12/31/2023  
    Tangible common equity                    
    Total equity (2) $ 196,638     $ 192,339     $ 190,072     $ 189,543     $ 184,830    
    Less: goodwill   (19,168 )     (19,168 )     (19,168 )     (19,168 )     (19,168 )  
    Less: core deposit intangible   (250 )     (265 )     (279 )     (295 )     (311 )  
    Tangible common equity (2) $ 177,220     $ 172,906     $ 170,625     $ 170,080     $ 165,351    
                         
    Tangible common equity (“TCE”) ratio                  
    Tangible common equity (2) $ 177,220     $ 172,906     $ 170,625     $ 170,080     $ 165,351    
    Total assets   2,312,110       2,327,814       2,331,098       2,307,508       2,270,060    
    Less: goodwill   (19,168 )     (19,168 )     (19,168 )     (19,168 )     (19,168 )  
    Less: core deposit intangible   (250 )     (265 )     (279 )     (295 )     (311 )  
    Tangible assets $ 2,292,692     $ 2,308,381     $ 2,311,651     $ 2,288,045     $ 2,250,581    
    TCE ratio (2)   7.73 %     7.49 %     7.38 %     7.43 %     7.35 %  
                         
    Tangible book value per share                    
    Tangible equity (2) $ 177,220     $ 172,906     $ 170,625     $ 170,080     $ 165,351    
    Shares outstanding (2)   7,427,127       7,428,366       7,402,163       7,392,412       7,345,012    
    Tangible book value per share (2) $ 23.86     $ 23.28     $ 23.05     $ 23.01     $ 22.51    
                         
    (1) A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with U.S. GAAP. While management uses non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP.  
                         
    (2) Includes common stock and Series A preferred stock.  
    HANOVER BANCORP, INC.                      
    NET INTEREST INCOME ANALYSIS                      
    For the Three Months Ended December 31, 2024 and 2023                    
    (unaudited, dollars in thousands)                      
                           
                           
        2024       2023  
      Average       Average   Average       Average
      Balance   Interest   Yield/Cost Balance   Interest   Yield/Cost
                           
    Assets:                      
    Interest-earning assets:                      
    Loans $ 2,003,686   $ 30,753   6.11 %   $ 1,910,409   $ 28,394   5.90 %
    Investment securities   94,886     1,381   5.79 %     56,834     940   6.56 %
    Interest-earning cash   62,850     747   4.73 %     114,033     1,570   5.46 %
    FHLB stock and other investments   8,173     176   8.57 %     9,563     251   10.41 %
    Total interest-earning assets   2,169,595     33,057   6.06 %     2,090,839     31,155   5.91 %
    Non interest-earning assets:                      
    Cash and due from banks   8,973             7,429        
    Other assets   50,068             50,677        
    Total assets $ 2,228,636           $ 2,148,945        
                           
    Liabilities and stockholders’ equity:                      
    Interest-bearing liabilities:                      
    Savings, N.O.W. and money market deposits $ 1,152,755   $ 11,916   4.11 %   $ 1,039,062   $ 11,547   4.41 %
    Time deposits   498,819     5,642   4.50 %     541,475     5,231   3.83 %
    Total savings and time deposits   1,651,574     17,558   4.23 %     1,580,537     16,778   4.21 %
    Borrowings   128,446     1,365   4.23 %     146,167     1,392   3.78 %
    Subordinated debentures   24,680     326   5.25 %     24,626     326   5.25 %
    Total interest-bearing liabilities   1,804,700     19,249   4.24 %     1,751,330     18,496   4.19 %
    Demand deposits   202,254             187,216        
    Other liabilities   27,168             26,031        
    Total liabilities   2,034,122             1,964,577        
    Stockholders’ equity   194,514             184,368        
    Total liabilities & stockholders’ equity $ 2,228,636           $ 2,148,945        
    Net interest rate spread         1.82 %           1.72 %
    Net interest income/margin     $ 13,808   2.53 %       $ 12,659   2.40 %
                           
    HANOVER BANCORP, INC.                      
    NET INTEREST INCOME ANALYSIS                      
    For the Years Ended December 31, 2024 and 2023                    
    (unaudited, dollars in thousands)                      
                           
                           
        2024       2023  
      Average       Average   Average       Average
      Balance   Interest   Yield/Cost Balance   Interest   Yield/Cost
                           
    Assets:                      
    Interest-earning assets:                      
    Loans $ 2,005,524   $ 122,970 6.13 %   $ 1,829,586   $ 103,975 5.68 %
    Investment securities   98,238     5,992   6.10 %     26,171     1,534   5.86 %
    Interest-earning cash   60,868     3,191   5.24 %     139,006     7,243   5.21 %
    FHLB stock and other investments   9,370     869   9.27 %     9,871     874   8.85 %
    Total interest-earning assets   2,174,000     133,022   6.12 %     2,004,634     113,626   5.67 %
    Non interest-earning assets:                      
    Cash and due from banks   8,567             8,034        
    Other assets   50,461             52,953        
    Total assets $ 2,233,028           $ 2,065,621        
                           
    Liabilities and stockholders’ equity:                      
    Interest-bearing liabilities:                      
    Savings, N.O.W. and money market deposits $ 1,160,115   $ 51,457   4.44 %   $ 1,029,415   $ 39,430   3.83 %
    Time deposits   483,668     21,060   4.35 %     466,742     14,888   3.19 %
    Total savings and time deposits   1,643,783     72,517   4.41 %     1,496,157     54,318   3.63 %
    Borrowings   149,667     6,109   4.08 %     157,701     6,124   3.88 %
    Subordinated debentures   24,660     1,304   5.29 %     24,606     1,297   5.27 %
    Total interest-bearing liabilities   1,818,110     79,930   4.40 %     1,678,464     61,739   3.68 %
    Demand deposits   196,595             179,756        
    Other liabilities   27,000             24,701        
    Total liabilities   2,041,705             1,882,921        
    Stockholders’ equity   191,323             182,700        
    Total liabilities & stockholders’ equity $ 2,233,028           $ 2,065,621        
    Net interest rate spread         1.72 %           1.99 %
    Net interest income/margin     $ 53,092   2.44 %       $ 51,887   2.59 %
                           

    The MIL Network –

  • MIL-OSI Economics: W&T Offshore Announces Closing of $350 Million Senior Second Lien Notes Offering And Additional Strengthening of Balance Sheet

    Source: W & T Offshore Inc

    Headline: W&T Offshore Announces Closing of $350 Million Senior Second Lien Notes Offering And Additional Strengthening of Balance Sheet

    HOUSTON, Jan. 29, 2025 (GLOBE NEWSWIRE) — W&T Offshore, Inc. (NYSE: WTI) (“W&T Offshore” or the “Company”) today announced the closing, on January 28, 2025, of its previously announced offering of $350 million in aggregate principal amount of 10.750% Senior Second Lien Notes due 2029 (the “Notes”) at par in a private offering that is exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), and receipt of proceeds from a previously-announced insurance settlement. In conjunction with the issuance of the Notes, the Company entered into a credit agreement with certain lenders and other parties which provides the Company a revolving credit facility of $50 million.

    • Closed $350 million of Notes;
      • Lowered the interest rate from the previous 11.750% Senior Second Lien Notes due 2026 (the “2026 Senior Second Lien Notes”) by one hundred basis points;
      • Repaid $114.2 million outstanding under the term loan provided by Munich Re Risk Financing, Inc., as lender (the “MRE Term Loan”);
    • Entered into a new credit agreement for a $50 million revolving credit facility through July 2028 that is undrawn and replaces the previous credit facility provided by Calculus Lending, LLC; and
    • Received in cash $58.2 million of the previously announced $58.5 million insurance settlement related to the Mobile Bay 78-1 well, with the remainder expected shortly, which further bolsters W&T’s balance sheet.

    Tracy W. Krohn, Chairman and Chief Executive Officer, commented, “We have begun 2025 with several positive events that improve W&T’s financial position. Over the past month, we have strengthened the balance sheet by closing the new senior second lien notes offering, entering into a new revolving credit facility and collecting our insurance settlement. I would like to thank our banks for running such a smooth process. The new senior second lien notes, which received improved credit ratings from S&P and Moody’s, had a broad distribution. This included international investors and was significantly oversubscribed, further demonstrating the investment community’s confidence in W&T’s underlying asset base. We are likewise pleased to now have access to the bank revolver market again. With pathways in place to bring additional fields back online and our successful actions to enhance our balance sheet, we are well-positioned for success moving forward.”

    The Company has used a portion of the proceeds from the Notes offering, along with cash on hand to, (i) purchase for cash pursuant to a tender offer, such of the Company’s outstanding 2026 Senior Second Lien Notes that were validly tendered pursuant to the terms thereof (the “Tender Offer”), (ii) repay outstanding amounts under the MRE Term Loan, (iii) fund the full redemption amount for an August 1, 2025 redemption of the remaining 2026 Senior Second Lien Notes not validly tendered and accepted for purchase in the Tender Offer and (iv) pay premiums, fees and expenses related to the offering of Notes, the Tender Offer, the redemption of the remaining 2026 Senior Second Lien Notes, the satisfaction and discharge of the indenture governing the 2026 Senior Second Lien Notes and the repayment of the MRE Term Loan. On the closing date of the offering of the Notes, the Company completed all actions necessary to satisfy and discharge the indenture governing the 2026 Senior Second Lien Notes.

    On January 28, 2025, in conjunction with the issuance of the Notes, the Company entered into a credit agreement (the “Credit Agreement”), by and among the Company, as borrower, Texas Capital Bank, as Administrative Agent, lender and L/C Issuer, TCBI Securities, Inc., doing business as Texas Capital Securities, as Lead Arranger and Bookrunner, the other lenders named therein and other parties thereto which provides the Company a revolving credit and letter of credit facility (the “Credit Facility”), with initial lending commitments of $50 million with a letter of credit sublimit of $10 million. The Credit Facility matures on July 28, 2028.

    The Credit Facility is guaranteed by each of the Company’s wholly owned direct and indirect subsidiaries (the “Guarantors”) and is secured by a first-priority lien on substantially all of the natural gas and oil properties and personal property assets of the Company and the Guarantors, other than the Company’s membership interest in its Unrestricted Subsidiaries (as defined in the Credit Agreement) and minority ownership in certain joint venture entities. Certain future-formed or acquired majority-owned domestic subsidiaries of the Company may also be required to guarantee the Credit Facility and grant a security interest in substantially all of their natural gas and oil properties and personal property assets to secure the obligations under the Credit Facility.

    This press release is being issued for informational purposes only and does not constitute an offer to purchase or a solicitation of an offer to sell the 2026 Senior Second Lien Notes, and it does not constitute a notice of redemption of the 2026 Senior Second Lien Notes.

    The Notes and the related guarantees have not been and will not be registered under the Securities Act or any other securities laws, and the Notes and the related guarantees may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. The Notes and the related guarantees are being offered only to persons reasonably believed to be qualified institutional buyers in the United States under Rule 144A and to non-U.S. investors outside the United States pursuant to Regulation S.

    This press release is being issued for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a sale of the Notes, the related guarantees, or any other securities, nor does it constitute an offer to sell, a solicitation of an offer to buy or a sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

    ABOUT W&T OFFSHORE

    W&T Offshore, Inc. is an independent oil and natural gas producer with operations offshore in the Gulf of Mexico and has grown through acquisitions, exploration and development. As of September 30, 2024, the Company had working interests in 53 fields in federal and state waters (which include 46 fields in federal waters and 7 in state waters). The Company has under lease approximately 673,100 gross acres (515,400 net acres) spanning across the outer continental shelf off the coasts of Louisiana, Texas, Mississippi and Alabama, with approximately 514,000 gross acres on the conventional shelf, approximately 153,500 gross acres in the deepwater and 5,600 gross acres in Alabama state waters. A majority of the Company’s daily production is derived from wells it operates.

    FORWARD-LOOKING AND CAUTIONARY STATEMENTS

    This press release contains 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. All statements other than statements of historical facts included in this release regarding the Company’s financial position, operating and financial performance, and potential to return fields back to production are forward-looking statements. When used in this release, forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “continue,” “anticipate,” “target,” “could,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or other words and similar expressions that convey the uncertainty of future events or outcomes, although not all forward-looking statements contain such identifying words. Items contemplating or making assumptions about actual or potential future production and sales, prices, market size, and trends or operating results also constitute such forward-looking statements.

    These forward-looking statements are based on the Company’s current expectations and assumptions about future events and speak only as of the date of this release. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond the Company’s control. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, as results actually achieved may differ materially from expected results described in these statements. The Company does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements, unless required by law.

    Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially including, among other things, the regulatory environment, including availability or timing of, and conditions imposed on, obtaining and/or maintaining permits and approvals, including those necessary for drilling and/or development projects; the impact of current, pending and/or future laws and regulations, and of legislative and regulatory changes and other government activities, including those related to permitting, drilling, completion, well stimulation, operation, maintenance or abandonment of wells or facilities, managing energy, water, land, greenhouse gases or other emissions, protection of health, safety and the environment, or transportation, marketing and sale of the Company’s products; inflation levels; global economic trends, geopolitical risks and general economic and industry conditions, such as the global supply chain disruptions and the government interventions into the financial markets and economy in response to inflation levels and world health events; volatility of oil, NGL and natural gas prices; the global energy future, including the factors and trends that are expected to shape it, such as concerns about climate change and other air quality issues, the transition to a low-emission economy and the expected role of different energy sources; supply of and demand for oil, natural gas and NGLs, including due to the actions of foreign producers, importantly including OPEC and other major oil producing companies (“OPEC+”) and change in OPEC+’s production levels; disruptions to, capacity constraints in, or other limitations on the pipeline systems that deliver the Company’s oil and natural gas and other processing and transportation considerations; inability to generate sufficient cash flow from operations or to obtain adequate financing to fund capital expenditures, meet the Company’s working capital requirements or fund planned investments; price fluctuations and availability of natural gas and electricity; the Company’s ability to use derivative instruments to manage commodity price risk; the Company’s ability to meet the Company’s planned drilling schedule, including due to the Company’s ability to obtain permits on a timely basis or at all, and to successfully drill wells that produce oil and natural gas in commercially viable quantities; uncertainties associated with estimating proved reserves and related future cash flows; the Company’s ability to replace the Company’s reserves through exploration and development activities; drilling and production results, lower–than–expected production, reserves or resources from development projects or higher–than–expected decline rates; the Company’s ability to obtain timely and available drilling and completion equipment and crew availability and access to necessary resources for drilling, completing and operating wells; changes in tax laws; effects of competition; uncertainties and liabilities associated with acquired and divested assets; the Company’s ability to make acquisitions and successfully integrate any acquired businesses; asset impairments from commodity price declines; large or multiple customer defaults on contractual obligations, including defaults resulting from actual or potential insolvencies; geographical concentration of the Company’s operations; the creditworthiness and performance of the Company’s counterparties with respect to its hedges; impact of derivatives legislation affecting the Company’s ability to hedge; failure of risk management and ineffectiveness of internal controls; catastrophic events, including tropical storms, hurricanes, earthquakes, pandemics and other world health events; environmental risks and liabilities under U.S. federal, state, tribal and local laws and regulations (including remedial actions); potential liability resulting from pending or future litigation; the Company’s ability to recruit and/or retain key members of the Company’s senior management and key technical employees; information technology failures or cyberattacks; and governmental actions and political conditions, as well as the actions by other third parties that are beyond the Company’s control, and other factors discussed in W&T Offshore’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q found at www.sec.gov or at the Company’s website at www.wtoffshore.com under the Investor Relations section.

    CONTACT:

    Al Petrie
    Investor Relations Coordinator
    investorrelations@wtoffshore.com
    713-297-8024

    Sameer Parasnis
    Executive Vice President and Chief Financial Officer
    sparasnis@wtoffshore.com
    713-513-8654

    Source: W&T Offshore, Inc.

    Source: W&T Offshore, Inc.

    Released January 29, 2025

    MIL OSI Economics –

  • MIL-OSI Banking: Monetary developments in the euro area: December 2024

    Source: European Central Bank

    29 January 2025

    Components of the broad monetary aggregate M3

    The annual growth rate of the broad monetary aggregate M3 decreased to 3.5% in December 2024 from 3.8% in November, averaging 3.6% in the three months up to December. The components of M3 showed the following developments. The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, increased to 1.8% in December from 1.5% in November. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) decreased to 4.5% in December from 6.1% in November. The annual growth rate of marketable instruments (M3-M2) decreased to 16.3% in December from 17.0% in November.

    Chart 1

    Monetary aggregates

    (annual growth rates)

    Data for monetary aggregates

    Looking at the components’ contributions to the annual growth rate of M3, the narrower aggregate M1 contributed 1.1 percentage points (up from 1.0 percentage points in November), short-term deposits other than overnight deposits (M2-M1) contributed 1.3 percentage points (down from 1.8 percentage points) and marketable instruments (M3-M2) contributed 1.0 percentage points (as in the previous month).

    Among the holding sectors of deposits in M3, the annual growth rate of deposits placed by households stood at 3.5% in December, unchanged from the previous month, while the annual growth rate of deposits placed by non-financial corporations increased to 2.9% in December from 2.3% in November. Finally, the annual growth rate of deposits placed by investment funds other than money market funds decreased to 7.4% in December from 7.9% in November.

    Counterparts of the broad monetary aggregate M3

    The annual growth rate of M3 in December 2024, as a reflection of changes in the items on the monetary financial institution (MFI) consolidated balance sheet other than M3 (counterparts of M3), can be broken down as follows: net external assets contributed 3.6 percentage points (as in the previous month), claims on the private sector contributed 1.7 percentage points (up from 1.2 percentage points), claims on general government contributed -0.4 percentage points (down from -0.3 percentage points), longer-term liabilities contributed -1.8 percentage points (down from -1.6 percentage points), and the remaining counterparts of M3 contributed 0.5 percentage points (down from 0.9 percentage points).

    Chart 2

    Contribution of the M3 counterparts to the annual growth rate of M3

    (percentage points)

    Data for contribution of the M3 counterparts to the annual growth rate of M3

    Claims on euro area residents

    The annual growth rate of total claims on euro area residents increased to 0.9% in December 2024 from 0.7% in the previous month. The annual growth rate of claims on general government was -1.0% in December, compared with -0.7% in November, while the annual growth rate of claims on the private sector increased to 1.7% in December from 1.3% in November.

    The annual growth rate of adjusted loans to the private sector (i.e. adjusted for loan transfers and notional cash pooling) increased to 2.0% in December from 1.5% in November. Among the borrowing sectors, the annual growth rate of adjusted loans to households increased to 1.1% in December from 0.9% in November, while the annual growth rate of adjusted loans to non-financial corporations increased to 1.5% in December from 1.0% in November.

    Chart 3

    Adjusted loans to the private sector

    (annual growth rates)

    Data for adjusted loans to the private sector

    Notes:

    • Data in this press release are adjusted for seasonal and end-of-month calendar effects, unless stated otherwise.
    • “Private sector” refers to euro area non-MFIs excluding general government.
    • Hyperlinks lead to data that may change with subsequent releases as a result of revisions. Figures shown in annex tables are a snapshot of the data as at the time of the current release.

    MIL OSI Global Banks –

  • MIL-OSI Europe: REPORT on European Central Bank – annual report 2024 – A10-0003/2025

    Source: European Parliament

    MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    on European Central Bank – annual report 2024

    (2024/2054(INI))

    The European Parliament,

    – having regard to the 2023 Annual Report of the European Central Bank (ECB),

    – having regard to the ECB’s feedback of 18 April 2024 on the input provided by Parliament as part of its resolution on the ECB’s 2022 Annual Report[1],

    – having regard to the Statute of the European System of Central Banks (ESCB) and of the ECB, in particular Articles 2, 15 and 21 thereof,

    – having regard to Articles 119, 123(1), 125, 127(1) and (2), 130, 282(2) and 284(3) of the Treaty on the Functioning of the European Union (TFEU),

    – having regard to Articles 3 and 13 of the Treaty on European Union (TEU),

    – having regard to the Eurosystem staff macroeconomic projections for the euro area of 7 March 2024, 6 June 2024, 12 September 2024, and 12 December 2024,

    – having regard to the decisions taken by the ECB Governing Council of 25 January 2024, 7 March 2024, 11 April 2024, 6 June 2024, 18 July 2024, 12 September 2024, 17 October 2024 and 12 December 2024,

    – having regard to Eurostat’s inflation estimate of 18 December 2024,

    – having regard to the Commission’s Autumn 2024 Economic Forecast published on 26 November 2024,

    – having regard to the World Economic Outlook of the International Monetary Fund (IMF) of October 2024,

    – having regard to the monetary dialogues with the President of the ECB, Christine Lagarde, of 15 February 2024, 30 September 2024 and 4 December 2024,

    – having regard to its decision of 1 June 2023 on the arrangements in the form of an exchange of letters between the European Parliament and the ECB on structuring the practices for interaction in the area of central banking[2],

    – having regard to the European Pillar of Social Rights,

    – having regard to the approval of the transmission protection instrument (TPI) by the ECB Governing Council of 21 July 2022,

    – having regard to the Commission proposal of 28 June 2023 for a regulation of the European Parliament and of the Council on the establishment of the digital euro (COM(2023)0369),

    – having regard to the ECB’s first progress report of 24 June 2024 and second progress report of 2 December 2024 on the digital euro preparation phase,

    – having regard to the four ECB progress reports of 13 July 2023, 24 April 2023, 21 December 2022 and 29 September 2022 on the digital euro investigation phase,

    – having regard to the ECB monetary policy strategy review launched on 23 January 2020 and concluded on 8 July 2021, and to the upcoming 2025 monetary policy strategy assessment,

    – having regard to the ECB’s operational framework review published on 13 March 2024,

    – having regard to the ECB annual report on the international role of the euro of June 2024,

    – having regard to the results of the ECB’s first-ever cyber resilience stress test of 26 July 2024,

    – having regard to the ECB’s Financial Stability Review published on 20 November 2024,

    – having regard to the publication of the revised Capital Requirements Regulation[3] (‘CRR III’) and Capital Requirements Directive[4] (‘CRD VI’) in the Official Journal of the European Union on 19 June 2024,

    – having regard to the results of the ECB’s climate risk stress test of 8 July 2022,

    – having regard to the 2024 update of the ECB’s Environmental Statement,

    – having regard to the ECB’s Climate and Nature Plan 2024-2025,

    – having regard to Rule 142(1) of its Rules of Procedure,

    – having regard to Rule 55 of its Rules of Procedure,

    – having regard to the report of the Committee on Economic and Monetary Affairs (A10-0003/2025),

    A. whereas, according to Eurostat, harmonised index of consumer prices (HICP) inflation reached a level of 2.2 % in the euro area in November 2024;

    B. whereas, according to the December 2024 Eurosystem staff macroeconomic projections for the euro area, HICP inflation is projected to decline to 2.1 % in 2025, 1.9 % in 2026, and to increase to 2.1 % in 2027[5];

    C. whereas the ECB’s primary objective is to maintain price stability, which it has defined as a level of inflation of 2 % over the medium term;

    D. whereas the ECB should support the general economic policies of the EU, thereby contributing to the achievement of the objectives of the EU as laid down in Article 3 TEU;

    E. whereas the ECB is politically independent, which means that neither EU institutions and agencies nor Member State governments should seek to influence it;

    F. whereas the ECB can take decisions to fulfil its primary objective of maintaining price stability without political interference other than being held accountable;

    G. whereas political independence requires the ECB to refrain from taking political actions;

    H. whereas Article 123 TFEU and Article 21 of the Statute of the ESCB and of the ECB prohibit the direct monetary financing of governments; whereas the ECB may purchase debt securities on the secondary market if this is necessary to pursue its objectives;

    I. whereas the Eurosystem has been built on the principle of monetary dominance;

    J. whereas the principal payments from maturing securities purchased under the asset purchase programme (APP) are no longer reinvested and the principal payments from maturing securities purchased under the pandemic emergency purchase programme (PEPP) will no longer be reinvested from January 2025;

    K. whereas bank reserves held by credit institutions at the ECB amounted to EUR 3 trillion in December 2024;

    L. whereas the euro is the second most important currency globally;

    M. whereas the ECB is accountable to Parliament as the EU institution representing EU citizens; whereas this accountability has been maintained at the highest level, with the regular organisation of the Monetary Dialogue, the ECB President’s regular appearances at Parliament plenary sittings and various visits and meetings between Members of Parliament and ECB board members;

    General overview

    1. Welcomes the role of the ECB in safeguarding monetary and financial stability, which is a necessary precondition for growth and economic stability; underlines that the ECB is the institution responsible for maintaining price stability in the euro area in this regard; notes that, ‘without prejudice to the objective of price stability, the ESCB shall support the general economic policies in the Union’ as laid down in Article 127 TFEU;

    2. Underlines that the statutory independence of the ECB, as laid down in the Treaties, is a prerequisite for it to fulfil its mandate, which is to maintain price stability in the euro area and thereby contribute to economic growth, competitiveness and job creation;

    3. Highlights the importance of the ECB’s political independence, which should remain untouched; stresses that this independence requires the ECB to in turn refrain from taking political actions; welcomes the institutional cooperation, thereby stressing the importance of the corresponding level of accountability to Parliament;

    4. Invites the ECB and the European Parliament to make full use of the accountability and transparency arrangements and, where possible, further enhance these arrangements, without prejudice to the ECB’s independence;

    5. Recognises the ECB’s efforts to bring inflation back down to levels commensurate with its target of 2 % over the medium term;

    6. Stresses that both the ECB’s monetary policy, delivering on its mandate, and fiscal policies, should work in tandem to help European citizens and households, as well as small businesses;

    7. Takes note of the disparities between Member States with regard to inflation levels above or below the ECB’s 2 % target; emphasises that inflation diminishes the purchasing power of fixed incomes, savings and pensions and that it distorts the signalling function of prices, that ensures an efficient allocation of resources, thereby having a negative impact on economic stability;

    8. Stresses that inflation triggered a ‘cost of living crisis’ for EU citizens; emphasises therefore the imperative of reducing inflation to its target rate of 2 %; notes that high inflation levels disproportionally affect lower-income households that spend a higher proportion of their budget on necessities; stresses that bringing headline and core inflation back down to their target levels is therefore also important to maintaining social cohesion;

    9. Regrets that core inflation still remains high in the euro area (2.7 % in November 2024), with only one euro area Member State reporting core inflation rates below 2 % in November 2024; recalls that this situation generates economic uncertainty, discourages savings and increases citizens’ living costs, particularly affecting those on fixed and limited incomes;

    10. Stresses that keeping interest rates too high could harm economic growth; calls on the ECB not to lower interest rates too quickly, given the risk that inflation levels could start increasing again while inflation is already above 2 %; highlights the key role that inflation expectations play and that excessive volatility in inflation rates might distort inflation expectations; invites the ECB to assess the impact of interest rate changes on different economic sectors, among them capital-intensive sectors;

    11. Acknowledges that the monetary policy decisions taken by the Governing Council of the ECB since the inflation crisis stemming from the rise in energy prices have put inflation on a path which is compatible with the achievement of the objective of price stability, while avoiding a serious deterioration in economic activity or employment;

    12. Recalls that the Eurosystem was built on the principle of monetary dominance and that the economic and monetary union therefore requires solid fiscal policies in the Member States in order to be able to respond to external shocks; recalls the need for adequate implementation of the new fiscal framework to ensure the credibility of fiscal policies at the level of the economic and monetary union; notes that sufficient fiscal space also allows Member States to respond to external shocks; notes the flexibility provided by the new fiscal rules in this regard; points out that Member States can enhance their resilience to external shocks through fiscal measures as well as with growth-enhancing reforms;

    13. Recalls that prudent fiscal policies by the Member States can complement the ECB’s efforts to keep inflation low and thereby protect incomes; highlights that addressing excessive public deficit and debt levels is crucial to maintaining a stable economy, sustainable growth and to having the policy space available for governments to respond to adverse shocks; notes in this respect the recent findings of the Financial Stability Review concerning high levels of national debt;

    14. Notes that the ECB’s monetary policies aimed at delivering its primary mandate are subject to a proportionality assessment; notes that the proportionality assessment takes into account the impact of monetary policy measures on the broader economy and economic policies;

    Monetary policy

    15. Strongly welcomes the fact that headline inflation has come down from its peak of 10.6 % in October 2022 to 2.2 % in November 2024;

    16. Welcomes the decrease in core inflation from its peak of 7.6 % in March 2023 to 2.7 % in November 2024, but expresses its unease at its historically and persistently high level; notes with concern that high core inflation could translate into higher headline inflation numbers;

    17. Notes that it has taken the ECB more than three years to achieve a level of inflation that is commensurate with its target level of 2 %; recalls in this regard the ECB’s incorrect assessment that inflation was expected to be only transitory;

    18. Stresses that supply shocks, primarily originating from external sources, were among the key drivers of the inflation surges; recognises that monetary policy has a more direct effect on inflation levels when it stems primarily from demand factors rather than supply factors;

    19. Welcomes the ECB’s efforts to regularly update its models; invites the ECB to  continue reviewing and improving its models and their role in its policymaking in light of the subpar performance of the models in recent years, in order to learn from previous crises, particularly to better distinguish between demand-driven and supply-side sources of inflation; stresses that economic supply shocks can arise from many sources, among others geopolitical events, climate-related or natural disasters and cyberattacks;

    20. Stresses that the inclusion of owner-occupied housing (OOH) in the HICP is desirable for reasons of both representativeness and comparability across countries in the euro area; calls for an acceleration of the roadmap in order to ensure the rapid inclusion of OOH data in the HICP; welcomes the Governing Council of the ECB’s commitment to consider both in its monetary policy assessments and decisions also the available inflation measures regarding the quarterly stand-alone OOH index;

    21. Supports the ECB’s decision to scale back its asset purchase programmes, so as to balance market liquidity conditions and inflation levels, in view of the excess liquidity in the market and decreased levels of inflation; welcomes the fact that the asset portfolio under the ECB’s purchasing programmes has been on a downward trend since 2023;

    22. Underlines that interest on commercial banks’ holdings of bank reserves resulted  in the Eurosystem paying more than EUR 120 billion interest to credit institutions in 2023, amounting to at least 0.8 % of euro area GDP; considers this is a significant subsidy to the banking sector; asks the ECB to mitigate this issue;

    23. Stresses that the ECB’s purchase programmes are unconventional policies applicable only during crisis periods that, if not carefully implemented, risk contravening the prohibition on monetary financing under Article 123(1) TFEU; invites the ECB to continue monitoring the gradual reduction of its balance sheet, to limit prolonged potential destabilising effects in the euro area, while monitoring the growth and competitiveness of the EU’s economy; invites the ECB to share insights on the impact of the purchasing programmes on the functioning of financial markets, including the impact on pension funds and pension insurance cooperation;

    24. Stresses that an even transmission of monetary policy is vital to the achievement of the ECB’s price stability mandate; underlines that excessive divergence in sovereign yields makes credit conditions inconsistent with the uniform transmission of monetary policy and makes reducing public debt exceedingly difficult; takes note of the establishment of the transmission protection instrument (TPI) in July 2022 as a tool to support the effective transmission of monetary policy;

    25. Stresses that diverging interest rates in the euro area are – in the absence of any serious financial disturbances – generally the result of different risk premiums on government bonds reflecting, among other factors, different approaches to fiscal policy; notes that TPI interventions may conceal underlying fiscal challenges; stresses that TPI should be used under the conditions set by the ECB only to address financial market stress unrelated to economic fundamentals; calls on Member States to conduct responsible fiscal policies and ensure sustainable debt levels, thereby ensuring their resilience against current and future shocks;

    Digital euro

    26. Welcomes the ECB’s progress on the digital euro project and its ongoing dialogue with Parliament; underscores that the digital euro should deliver clear added value to European citizens, including enhanced strategic autonomy in payments, a higher level of competition in the retail payment market, potential to foster innovation in payments and finance, improved financial inclusion and a reliable offline backup payment system; calls on the ECB to clearly communicate these benefits in order to foster public trust and awareness; notes that the EU co-legislators will need to strike the right balance, among others, on holding limits, privacy concerns, competition with private payment solutions and usability in a business context;

    27. Considers that the digital euro will only become a success story if it provides tangible added value for European citizens that they can understand; notes that currently many European citizens either have not heard about the digital euro project or remain sceptical; invites the ECB, together with relevant stakeholders, to launch a broad information campaign on the digital euro in order to allay citizens’ concerns;

    28. Reiterates that the digital euro will serve as complement to physical cash, that it should not replace cash and that cash will remain widely available and accessible at all times in order to ensure a plurality of means of payment; welcomes, in that context, the proposal for a regulation on the use of euro cash as legal tender;

    29. Stresses the need for a cost-based compensation model for the banking sector, which is tasked with the practical implementation of the digital euro project; recalls that the compensation model must guarantee a euro that is free of charge for its users;

    30. Calls on the ECB to take due account of financial stability concerns and potential changes in the structure of the financial sector resulting from the introduction of the digital euro; recalls the importance of holding limits, in order not to create additional risks for banks’ balance sheets, especially during crises;

    31. Calls on the ECB to prioritise robust privacy safeguards, establishing them as a gold standard for privacy for central bank digital currency (CBDC), to secure public confidence and address citizens’ concerns regarding data protection and autonomy;

    Secondary objectives

    32. Stresses that the EU’s secondary objectives are indeterminate as currently specified by the Treaties; notes that the supportive nature of the ECB’s secondary objectives complements the primary mandate; according to the Treaties, the EU’s aim is to promote peace, its values and the well-being of its peoples, create balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment;

    33. Recalls that without prejudice to the ECB’s primary mandate, the Treaties require it to support the general economic policies of the Union; calls on the ECB to adhere to its mandate when interpreting or acting upon its secondary objectives; stresses that overstepping this mandate touches on the independence of the ECB; considers that maintaining price stability and stable macroeconomic conditions is conducive to creating the right conditions for the implementation of the EU’s general economic policy objectives;

    34. Stresses that the ECB’s secondary objectives are best achieved when operating in a stable macroeconomic environment based on predictable price levels that encourages investment; calls on the ECB to include a specific chapter in its annual report explaining how it has interpreted and implemented its secondary objectives;

    35. Stresses that the ECB should prevent distortions in the signalling function of prices that ensures an efficient allocation of resources; invites the ECB to further assess to what extent climate change affects its ability to maintain price stability;

    36. Insists that the ECB respect the market neutrality approach in its monetary operations;

    37. Notes that the ECB’s actions to decarbonise its corporate bond holdings have not strictly followed a market neutral approach;

    38. Invites the ECB to review its policies to ensure that these measures promote EU competitiveness whereas such actions should in no way jeopardise the primary objective of the ECB;

    39. Calls on the ECB to use all its available tools to ensure that banks take all financial and external risks, including climate and geopolitical risks, seriously; welcomes the ECB’s activities to further enhance the Eurosystem’s risk assessment tools and capabilities in order to better include climate- and environment-related risks, particularly because climate change and extreme weather phenomena could lead to greater price volatility, especially in the agri-food sector; invites the ECB to continue its work on climate risk stress tests developed to assess the resilience of banks and corporations in the face of climate transition risk;

    40. Notes the Climate and nature plan 2024-2025; invites the ECB to draft a Geopolitics plan 2025-2030 in order to better understand the implications of war and conflict on price stability and treat all potential sources of external shocks equally;

    Other aspects

    41. Underlines that a strengthened international role of the euro would lead to lower interest rates in the euro area, increased status for the EU on the international stage and enhanced macroeconomic stability; recalls that strengthening the international role of the euro would contribute to enhancing the EU’s strategic autonomy;

    42. Calls on the ECB to look into strengthening the international role of the euro with a view to enhancing its attractiveness as a reserve currency and support market-driven shifts in this direction; notes that the completion of the economic and monetary union could foster the international role of the euro;

    43. Notes the ECB’s support for the establishment of a fully fledged European deposit insurance scheme; acknowledges that risk-sharing and risk-reduction are interlinked;

    44. Welcomes the attention that the ECB pays to the risks of cyberattacks; calls on the ECB to ensure the safety and security of the monetary system for its users, especially in the light of ongoing geopolitical developments;

    45. Considers that financial stability is a prerequisite for effective monetary policy and a resilient financial system; welcomes the finalisation of the Basel III framework and its implementation from 1 January 2025, as it has the potential to strengthen the resilience of the banking sector in this regard; notes, however, the delays in implementation and lack of clarity with regard to implementation by a certain number of other jurisdictions, resulting in an uneven level playing field at the global level;

    46. Acknowledges the ECB’s concern regarding the rise of the shadow banking sector and the risk it may pose to financial stability;

    47. Encourages collaboration with the Member States and national central banks on financial literacy programmes to empower individuals and businesses to make informed financial decisions;

    48. Regrets that only two members of the ECB’s Executive Board and Governing Council are women; reiterates that the nominations to the Executive Board should be gender-balanced, with shortlists submitted to Parliament; urges the euro area Member States to improve the principles of gender equality in their appointment procedures, so that both genders have equal opportunities to serve as governors of their respective national central banks;

    49. Reiterates that ECB appointments should be based on objective merit and competence assessment processes;

    50. Supports the aim of the ECB to increase female representation by encouraging women to advance in this field; therefore welcomes initiatives such as the ECB Women in Economics Scholarship;

    51. Highlights that the latest Financial Stability Review released by the ECB in November 2024 raises concerns over the possibility of an AI-related asset price bubble given the concentration among a few large AI beneficiary firms;

    52. Calls for the further enhancement of the ECB’s internal whistleblowing framework to bring it into line with the EU Whistleblower Directive;

    53. Invites the ESCB to continue and strengthen its dialogues with national parliaments, which it believes would strengthen the legitimacy and policies of the ESCB;

    °

    ° °

    54. Instructs its President to forward this resolution to the Council, the Commission and the European Central Bank.

    MIL OSI Europe News –

  • MIL-OSI Europe: EIB Global lends €125 million to finance SES’s medium earth orbit satellites

    Source: European Investment Bank

    • EIB Global loan will partially fund SES’s continued O3b mPOWER medium earth orbit fleet expansion, enabling additional capacity worldwide.
    • The O3b mPOWER satellite network aims to bridge the urban-rural digital divide, supporting objectives of the EU’s Global Gateway initiative and the EU Space Programme 2021-2027.

    The European Investment Bank’s global arm, EIB Global, has signed a €125 million loan agreement with SES, a provider of satellite-enabled content and connectivity solutions, for three satellites of its second-generation medium earth orbit (MEO) system, O3b mPOWER. SES has already launched eight of 13 O3b mPOWER satellites, which operate 8 000 km away from the Earth, delivering high throughput and flexibility.

    The loan will enable SES to provide enhanced broadband connectivity through its MEO system, reaching underserved and remote areas across Africa, Asia and Latin America. It will also help close the urban-rural digital divide and improve access to essential services like education, healthcare and e-governance.

    “Digital connectivity is essential for economic and social development, particularly in regions where access to broadband is limited. By fostering enhanced connectivity, this collaboration with SES will not only help to bridge the digital divide, but will also unlock new opportunities by improving quality of life for millions of people. The project will also help strengthen Europe’s independence in the area of access to space-based data traffic – reflecting the EIB’s commitment to supporting Europe’s strategic autonomy in the domains of space and global connectivity,” said EIB Vice-President Robert de Groot.

    Sandeep Jalan, Chief Financial Officer at SES, said, “We are pleased to have secured this term loan from the EIB, which reflects their confidence in our business and network and underscores our ability to secure funding from diverse sources while bolstering SES’s financial foundation. This agreement further enables us to deliver high-performance, multi-orbit connectivity services securely and reliably to our customers worldwide.”

    The loan aligns with the European Union’s Global Gateway initiative, which promotes investment in secure and sustainable infrastructure to connect people and improve lives around the world. It is also part of the EIB’s activities related to the EU Space Programme 2021-2027, strengthening Europe’s position in space technology and innovation.

    Background information

    About EIB Global

    The EIB is the long-term lending institution of the European Union, owned by the Member States. It finances investments that contribute to EU policy objectives.

    EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. We aim to support €100 billion of investment by the end of 2027 – around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through our offices across the world.

    About SES

    SES has a bold vision to deliver amazing experiences everywhere on Earth by distributing the highest quality video content and providing seamless data connectivity services around the world. As a provider of global content and connectivity solutions, SES owns and operates a geosynchronous orbit fleet and medium earth orbit (GEO-MEO) constellation of satellites, offering a combination of global coverage and high-performance services. Using its intelligent, cloud-enabled network, SES delivers high-quality connectivity solutions anywhere on land, at sea or in the air, and is a trusted partner to telecommunications companies, mobile network operators, governments, connectivity and cloud service providers, broadcasters, video platform operators and content owners around the world. The company is headquartered in Luxembourg and listed on Paris and Luxembourg stock exchanges (Ticker: SESG).

    MIL OSI Europe News –

  • MIL-OSI Europe: Belgium: UZ Leuven gets support from EIB for modernisation and expansion

    Source: European Investment Bank

    UZ Leuven to benefit from €230 million lending agreement between KU Leuven and the European Investment Bank (EIB), to finance its infrastructure plans up to 2031. The works will cover an overhaul of the main Health Sciences campus Gasthuisberg in Leuven. A well-planned layout of medical departments and supporting services will allow for optimised patient- and workflows.

    UZ Leuven’s “Health Sciences Campus 2.0” masterplan foresees works on the intensive care units, operating theatres, imaging, nuclear medicine and ambulatory care facilities such as endoscopy and dentistry, as well as works on the pharmacy.

    The European Investment Bank will support UZ Leuven 2022-2031 investment plan with a €230 million loan to the Catholic University Leuven (KU Leuven). The hospital will use the financing to support its masterplan of adapting the infrastructure on existing campuses to current research and medical care requirements.

    The financing supports UZ Leuven’s “Health Sciences campus 2.0” masterplan, which will further transform its campus into an innovation ecosystem, in-line with Flanders’ ambition to support and develop its knowledge economy, in close collaboration with the KU Leuven. The intensive care units and operating theatres will benefit from new facilities to substitute aging buildings, allowing also to better connect and integrate them with other parts of the care site, including the new construction featuring, hospitalisation facilities and the extension for oncological care.

    The loan will also be used to finance research facilities for nuclear medicine, the tissue and biobank facility, as well as a new production site for the hospital pharmacy in Leuven. Next to the investments in the expansion, modernisation and renovation of parts of the Gasthuisberg campus, the EIB loan will also support further renewal of UZ Leuven’s rehabilitation campus Pellenberg, for both hospitalisation and one-day care.

    EIB Vice-President Robert de Groot said: “UZ Leuven’s plans will not only help the hospital cater for profound changes to existing care models, it will also further integrate the facilities in the knowledge and innovation ecosystem that Leuven is creating. This is the EIB’s second financing for Leuven’s hospital campus, showing the commitment of the EIB in supporting social infrastructure and financing projects that have a positive impact on citizens.”

    “UZ Leuven and KU Leuven greatly appreciate the essential support from EIB. This financing allows us, together with VIPA resources and internal funding, to establish state of the art facilities for both our top patient care programs as well as our research and innovation infrastructure. This way, as a university hospital, we can continue to push boundaries for our patients.” said UZ Leuven CEO prof. dr. Paul Herijgers.

    Background information:

    The European Investment Bank (EIB) is the EU institution for long-term loans. Its shares are held by the 27 EU Member States, with 5.2% owned by Belgium. The EIB makes long-term financing available for sound investments that contribute towards the EU’s policy objectives. In 2023 the EIB provided over €2.1 billion in financing for Belgian projects.

    UZ Leuven is affiliated with KU Leuven university and is the largest tertiary care university hospital in Belgium, tracing its origins to the Sint-Pieter Hospital, established in the heart of the City of Leuven in 1080. Consisting of the Gasthuisberg, Pellenberg and Sint-Rafaël (city) campuses, it’s one of the leading university hospitals in Europe, providing more than 1,800 beds which are served by almost 10,000 employees. Gasthuisberg is the main campus and contains all the highly specialised services, connected to the biomedical facilities of KU Leuven.

     

    MIL OSI Europe News –

  • MIL-OSI: First Northwest Bancorp Reports Fourth Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    PORT ANGELES, Wash., Jan. 29, 2025 (GLOBE NEWSWIRE) — First Northwest Bancorp (Nasdaq: FNWB) (“First Northwest” or the “Company”) today reported a net loss of $2.8 million for the fourth quarter of 2024, compared to a net loss of $2.0 million for the third quarter of 2024 and a net loss of $5.5 million for the fourth quarter of 2023. Basic and diluted loss per share were $0.32 for the fourth quarter of 2024, compared to basic and diluted loss per share of $0.23 for the third quarter of 2024 and basic and diluted loss per share of $0.62 for the fourth quarter of 2023.

    In the fourth quarter of 2024, the Company recorded adjusted pre-tax, pre-provision net revenue (“PPNR”)(1) of $1.2 million, compared to a $49,000 adjusted PPNR loss for the preceding quarter and adjusted PPNR of $327,000 for the fourth quarter of 2023.

    The Board of Directors of First Northwest declared a quarterly cash dividend of $0.07 per common share, payable on February 28, 2025, to shareholders of record as of the close of business on February 14, 2025.

    Quote from First Northwest President and CEO, Matthew P. Deines:
    “Although financial results in 2024 were adversely impacted by elevated credit costs, we are optimistic for continued improvement in asset quality in early 2025. During the fourth quarter, our pre-provision net revenue (1) grew to $1.2 million with modest margin improvement as we successfully reduced FHLB borrowings. As we look ahead to 2025, we are laser focused on growing core commercial and retail customer relationships while resolving problem assets, improving profitability and maintaining our strong capital position. Highlights for 2024 include the termination of our compliance Consent Order with the FDIC, reduction of core operating expenses and improvement in our liquidity position with the loan to deposit ratio below 100% at year-end. I’d like to thank all our employees for their efforts and contributions in 2024, and for making a positive impact in the communities we serve.”

    Key Points for Fourth Quarter and Going Forward

    Provision for credit losses:

    • The Company recorded a $3.8 million provision for credit losses on loans in the fourth quarter of 2024, primarily due to charge-offs of six commercial business loans. This compares to loan credit loss provisions of $3.1 million for the preceding quarter and $1.2 million for the fourth quarter of 2023. 
    • We believe the reserve on individually analyzed loans does not represent a universal decline in the collectability of all loans in the portfolio. We continue to work on resolution plans for all troubled borrowers. The provision for credit losses on loans had a significant negative impact on net income for the fourth quarter of 2024.

    First Fed Bank’s (“First Fed” or the “Bank”) balance sheet restructure continues to have a positive impact:

    • The fair value hedge on loans, tied to the compounded overnight index swap using the secured overnight financing rate index, which was established in the first quarter of 2024, added $1.1 million to interest income for the year. The hedge successfully reduced the Bank’s liability sensitivity, and lowered the overall interest rate risk profile. The hedge also enhanced earnings due to a favorable contract position during the 2024 interest rate environment. The Bank expects to maintain a positive carry on its derivative for up to an additional 25-basis points of rate cuts. 
    • During 2024, bank-owned life insurance policies (“BOLI”) were reinvested into higher yielding products. In the fourth quarter of 2024, a $8.5 million policy was surrendered and reinvested into a policy earning 6.01% and a $922,000 policy earning 1.64% was exchanged and reinvested into a policy earning 3.99%. Total policy conversions during 2024 increased the annual pre-tax net yield earned on the total BOLI portfolio by 74-basis points. The remaining surrender transaction is expected to be completed during the first quarter of 2025. 
    • Investment security purchases during the fourth quarter of 2024 totaled $47.1 million, carrying a weighted-average yield of 6.7% at purchase and a weighted-average life of 3.1 years. The annualized interest income on these securities is anticipated to provide $2.6 million in revenue for 2025.

    (1) See reconciliation of Non-GAAP Financial Measures later in this release.

    Selected Quarterly Financial Ratios:

      As of or For the Quarter Ended  
      December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		  
    Performance ratios: (1)                              
    Return on average assets   -0.51 %   -0.36 %   -0.40 %   0.07 %   -1.03 %
    Adjusted PPNR return on average assets (2)   0.22     -0.01     0.10     0.34     -0.06  
    Return on average equity   -6.92     -4.91     -5.47     0.98     -14.05  
    Net interest margin (3)   2.73     2.70     2.76     2.76     2.84  
    Efficiency ratio (4)   92.2     100.3     72.3     88.8     150.8  
    Equity to total assets   6.89     7.13     7.17     7.17     7.42  
    Book value per common share $ 16.45   $ 17.17   $ 16.81   $ 17.00   $ 16.99  
    Tangible performance ratios: (1)                              
    Tangible common equity to tangible assets (2)   6.83 %   7.06 %   7.10 %   7.10 %   7.35 %
    Return on average tangible common equity (2)   -6.99     -4.96     -5.53     0.99     -14.20  
    Tangible book value per common share (2) $ 16.29   $ 17.00   $ 16.64   $ 16.83   $ 16.83  
    Capital ratios (First Fed): (5)                              
    Tier 1 leverage   9.4 %   9.4 %   9.4 %   9.7 %   9.9 %
    Common equity Tier 1 capital   12.4     12.2     12.4     12.6     13.1  
    Total risk-based   13.6     13.4     13.5     13.6     14.1  
    (1 ) Performance ratios are annualized, where appropriate.
    (2 ) See reconciliation of Non-GAAP Financial Measures later in this release.
    (3 ) Net interest income divided by average interest-earning assets.
    (4 ) Total noninterest expense as a percentage of net interest income and total other noninterest income.
    (5 ) Current period capital ratios are preliminary and subject to finalization of the FDIC Call Report.


    Adjusted Pre-tax, Pre-Provision Net Revenue     (1)

    Adjusted PPNR for the fourth quarter of 2024 increased $1.3 million to $1.2 million, compared to an adjusted PPNR loss of $49,000 for the preceding quarter, and increased $1.5 million from an adjusted PPNR $327,000 loss in the fourth quarter one year ago.

        For the Quarter Ended   For the Year Ended  
    (Dollars in thousands)   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023    		  
    Net interest income   $ 14,137   $ 14,020   $ 14,235   $ 13,928   $ 14,195   $ 56,320   $ 61,432  
    Total noninterest income     1,300     1,779     7,347     2,188     (2,929 )   12,614     4,020  
    Total revenue     15,437     15,799     21,582     16,116     11,266     68,934     65,452  
    Total noninterest expense     14,233     15,848     15,609     14,303     16,990     59,993     61,454  
    PPNR (1)     1,204     (49 )   5,973     1,813     (5,724 )   8,941     3,998  
    Selected nonrecurring adjustments to PPNR                                            
    Less: Net gain on sale of premises and equipment     —     —     7,919     —     —     7,919     —  
    Sale leaseback taxes and assessments included in occupancy and equipment     —     —     (359 )   —     —     (359 )   —  
    Net loss on sale of investment securities     —     —     (2,117 )   —     (5,397 )   (2,117 )   (5,397 )
    Adjusted PPNR (1)   $ 1,204   $ (49 ) $ 530   $ 1,813   $ (327 ) $ 3,498   $ 9,395  

    (1) See reconciliation of Non-GAAP Financial Measures later in this release.

    • Total interest income was relatively unchanged at $28.2 million for the fourth quarter of 2024, compared to the previous quarter, and increased $1.9 million compared to $26.3 million in the fourth quarter of 2023. Interest income decreased in the fourth quarter of 2024 primarily due to a decrease in the income earned on the securities derivative combined with lower FHLB dividends and reduced interest income received on Company deposit accounts. Higher yields on performing loans during the fourth quarter of 2024 were partially offset by nonaccrual interest adjustments totaling $46,000. Interest and fees on loans increased year-over-year as the loan portfolio grew. Loan yields increased over the prior year due to higher rates on new originations as well as the repricing of variable and adjustable-rate loans.
    • The net interest margin increased to 2.73% for the fourth quarter of 2024, from 2.70% for the prior quarter, and decreased 11-basis points from 2.84% for the fourth quarter of 2023. The Company reported reduced rates and declining volume of borrowings during the quarter which lowered costs; however, these savings were partially offset by an increase in cost due to a higher volume of customer deposits. The decrease in net interest margin from the same quarter one year ago is due to higher funding costs for deposits and borrowed funds. 
    • Noninterest income included a $1.8 million write down on an equity investment in an organization that is involved in a lawsuit, partially offset by a $1.5 million BOLI death benefit payment received due to the passing of an employee. 
    • Noninterest expense for the fourth quarter of 2024 decreased mainly due to a $1.2 million reduction in compensation related to nonrecurring payouts in the previous quarter combined with a reduced incentive accrual and lower headcount in the fourth quarter of 2024. FDIC assessment, state taxes, advertising and other discretionary spending also decreased from the previous quarter.

    Allowance for Credit Losses on Loans (“ACLL”) and Credit Quality

    The allowance for credit losses on loans (“ACLL”) decreased $1.5 million to $20.5 million at December 31, 2024, from $22.0 million at September 30, 2024. The ACLL as a percentage of total loans was 1.21% at December 31, 2024, a decrease from 1.27% at September 30, 2024, and an increase from 1.05% one year earlier. The pooled loan reserve decreased $1.5 million during the fourth quarter of 2024, primarily due to the decreases in multi-family, construction, and consumer loan balances combined with decreases resulting from lower loss factors applied to commercial business and commercial real estate loans, partially offset by higher loss factors applied to one-to-four family and other consumer loans.

    Nonperforming loans totaled $30.5 million at December 31, 2024, an increase of $139,000 from September 30, 2024. ACLL to nonperforming loans decreased to 67% at December 31, 2024, from 72% at September 30, 2024, and 94% at December 31, 2023. This ratio continued to decline as higher balances of real estate loans are included in nonperforming assets with no significant corresponding increase to the ACLL as these collateral dependent loans were considered adequately reserved for based on information available at each period end.

    Classified loans decreased $4.4 million to $42.5 million at December 31, 2024, from $46.9 million at September 30, 2024, primarily due to charge-offs totaling $3.9 million on six commercial business loans during the fourth quarter. An $11.4 million construction loan relationship, which became a classified loan in the fourth quarter of 2022; an $8.1 million commercial construction loan relationship, which became classified in the second quarter of 2024; and a $6.2 million commercial loan relationship, which became classified in the fourth quarter of 2023, account for 61% of the classified loan balance at December 31, 2024. The Bank has exercised legal remedies, including the appointment of a third-party receiver and foreclosure actions, to liquidate the underlying collateral to satisfy the real estate loans in two of these three collateral-dependent relationships. The Bank is also closely monitoring a group of commercial business loans that have similar collateral, with 15 loans totaling $2.2 million included in classified loans at December 31, 2024, and an additional eight loans totaling $2.8 million included in the special mention risk grading category.

      For the Quarter Ended  
    ACLL ($ in thousands) December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		  
    Balance at beginning of period $ 21,970   $ 19,343   $ 17,958   $ 17,510   $ 16,945  
    Charge-offs:                              
    Construction and land   (411 )   —     (3,978 )   —     —  
    Home equity   —     —     —     —     1  
    Auto and other consumer   (364 )   (492 )   (832 )   (806 )   (655 )
    Commercial business   (4,596 )   (24 )   (2,643 )   (33 )   —  
    Total charge-offs   (5,371 )   (516 )   (7,453 )   (839 )   (654 )
    Recoveries:                              
    One-to-four family   —     42     —     2     5  
    Commercial real estate   2     —     —     —     —  
    Home equity   —     —     —     —     10  
    Auto and other consumer   52     24     198     46     42  
    Commercial business   36     —     —     —     —  
    Total recoveries   90     66     198     48     57  
    Net loan charge-offs   (5,281 )   (450 )   (7,255 )   (791 )   (597 )
    Provision for credit losses   3,760     3,077     8,640     1,239     1,162  
    Balance at end of period $ 20,449   $ 21,970   $ 19,343   $ 17,958   $ 17,510  
                                   
    Average total loans   1,708,232     1,718,402     1,717,830     1,678,656     1,645,418  
    Annualized net charge-offs to average outstanding loans   1.23 %   0.10 %   1.70 %   0.19 %   0.14 %
    Asset Quality ($ in thousands) December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		  
    Nonaccrual loans:                              
    One-to-four family $ 1,477   $ 1,631   $ 1,750   $ 1,237   $ 1,844  
    Multi-family   —     —     708     708     —  
    Commercial real estate   5,598     5,634     14     22     28  
    Construction and land   19,544     19,382     19,292     14,440     14,986  
    Home equity   55     116     118     121     123  
    Auto and other consumer   700     894     746     1,012     786  
    Commercial business   3,141     2,719     1,003     1,941     877  
    Total nonaccrual loans   30,515     30,376     23,631     19,481     18,644  
    Other real estate owned   —     —     —     —     —  
    Total nonperforming assets $ 30,515   $ 30,376   $ 23,631   $ 19,481   $ 18,644  
                                   
    Nonaccrual loans as a % of total loans (1)   1.80 %   1.75 %   1.39 %   1.14 %   1.12 %
    Nonperforming assets as a % of total assets (2)   1.37     1.35     1.07     0.87     0.85  
    ACLL as a % of total loans   1.21     1.27     1.14     1.05     1.05  
    ACLL as a % of nonaccrual loans   67.01     72.33     81.85     92.18     93.92  
    Total past due loans to total loans   1.98     1.92     1.45     1.91     0.94  
    (1 ) Nonperforming loans consists of nonaccruing loans and accruing loans more than 90 days past due.
    (2 ) Nonperforming assets consists of nonperforming loans (which include nonaccruing loans and accruing loans more than 90 days past due), real estate owned and repossessed assets.


    Financial Condition and Capital

    Investment securities increased $29.5 million, or 9.5%, to $340.3 million at December 31, 2024, compared to $310.9 million three months earlier, and increased $44.7 million compared to $295.6 million at December 31, 2023. The market value of the portfolio decreased $5.8 million during the fourth quarter of 2024. The estimated average life of the securities portfolio was approximately 6.9 years at December 31, 2024, 7.4 years at the prior quarter end and 7.7 years at the end of the fourth quarter of 2023. The effective duration of the portfolio was approximately 3.9 years at December 31, 2024, compared to 3.9 years at the prior quarter end and 4.8 years at the end of the fourth quarter of 2023. Investment purchases at the beginning of 2024 were primarily floating rate securities to take advantage of higher short-term rates above those offered on cash at that time and to reduce our liability sensitivity. Purchases in the fourth quarter were primarily fixed to rebalance our securities portfolio position for 2025.

    Investment Securities ($ in thousands)  December 31,
    2024    		    September 30,
    2024    		    December 31,
    2023    		   Three Month
    % Change    		   One Year
    % Change    		  
    Available for Sale at Fair Value                          
    Municipal bonds $ 77,876   $ 81,363   $ 87,761   -4.3 % -11.3 %
    U.S. government agency issued asset-backed securities (ABS agency)   12,876     13,296     11,782   -3.2   9.3  
    Corporate issued asset-backed securities (ABS corporate)   16,122     16,391     5,286   -1.6   205.0  
    Corporate issued debt securities (Corporate debt)   54,491     54,058     51,454   0.8   5.9  
    U.S. Small Business Administration securities (SBA)   8,666     9,317     —   -7.0   100.0  
    Mortgage-backed securities:                          
    U.S. government agency issued mortgage-backed securities (MBS agency)   98,697     78,549     63,247   25.7   56.1  
    Non-agency issued mortgage-backed securities (MBS non-agency)   71,616     57,886     76,093   23.7   -5.9  
    Total securities available for sale $ 340,344   $ 310,860   $ 295,623   9.5   15.1  

    Net loans, excluding loans held for sale, decreased $39.2 million, or 2.3%, to $1.68 billion at December 31, 2024, from $1.71 billion at September 30, 2024, and increased $32.7 million, or 2.0%, from $1.64 billion one year prior. Construction loans that converted into fully amortizing loans during the quarter totaled $18.3 million. Loan payoffs of $73.9 million, regular payments of $35.3 million and charge-offs totaling $5.3 million outpaced new loan funding totaling $55.6 million and draws on existing loans totaling $19.7 million.

    Loans ($ in thousands)  December 31,
    2024    		    September 30,
    2024    		    December 31,
    2023    		   Three Month
    % Change    		   One Year
    % Change    		  
    Real Estate:                          
    One-to-four family $ 395,315   $ 395,792   $ 378,432   -0.1 % 4.5 %
    Multi-family   332,596     353,813     333,094   -6.0   -0.1  
    Commercial real estate   390,379     376,008     387,983   3.8   0.6  
    Construction and land   78,110     95,709     129,691   -18.4   -39.8  
    Total real estate loans   1,196,400     1,221,322     1,229,200   -2.0   -2.7  
    Consumer:                          
    Home equity   79,054     76,960     69,403   2.7   13.9  
    Auto and other consumer   268,876     281,198     249,130   -4.4   7.9  
    Total consumer loans   347,930     358,158     318,533   -2.9   9.2  
    Commercial business   151,493     155,327     112,295   -2.5   34.9  
    Total loans receivable   1,695,823     1,734,807     1,660,028   -2.2   2.2  
    Less:                          
    Derivative basis adjustment   188     (1,579 )   —   111.9   100.0  
    Allowance for credit losses on loans   20,449     21,970     17,510   -6.9   16.8  
    Total loans receivable, net $ 1,675,186   $ 1,714,416   $ 1,642,518   -2.3   2.0  

    Total deposits decreased $23.6 million to $1.69 billion at December 31, 2024, compared to $1.71 billion at September 30, 2024, and increased $11.1 million, or 0.7%, compared to $1.68 billion one year ago. During the fourth quarter of 2024, total customer deposit balances decreased $2.8 million and brokered deposit balances decreased $20.8 million. Overall, the current rate environment continues to contribute to greater competition for deposits. As a result, the Bank continues offering deposit rate specials to attract new funds.

    Deposits ($ in thousands)  December 31,
    2024    		    September 30,
    2024    		    December 31,
    2023    		   Three Month
    % Change    		   One Year
    % Change    		  
    Noninterest-bearing demand deposits $ 256,416   $ 252,999   $ 252,083   1.4 % 1.7 %
    Interest-bearing demand deposits   164,891     167,202     169,418   -1.4   -2.7  
    Money market accounts   413,822     433,307     362,205   -4.5   14.3  
    Savings accounts   205,055     212,763     242,148   -3.6   -15.3  
    Certificates of deposit, customer   464,928     441,665     443,412   5.3   4.9  
    Certificates of deposit, brokered   182,914     203,705     207,626   -10.2   -11.9  
    Total deposits $ 1,688,026   $ 1,711,641   $ 1,676,892   -1.4   0.7  

    Total shareholders’ equity decreased to $153.9 million at December 31, 2024, compared to $160.8 million three months earlier, due to a decrease in the after-tax fair market values of the available-for-sale investment securities portfolio of $4.5 million, a net loss of $2.8 million and dividends declared of $656,000, partially offset by an increase in the after-tax fair market values of derivatives of $952,000.

    Capital levels for both the Company and its operating bank, First Fed, remain in excess of applicable regulatory requirements and the Bank was categorized as “well-capitalized” at December 31, 2024. Preliminary calculations of Common Equity Tier 1 and Total Risk-Based Capital Ratios at December 31, 2024, were 12.4% and 13.6%, respectively.

    First Northwest continued to return capital to our shareholders through cash dividends during the fourth quarter of 2024. The Company paid cash dividends totaling $656,000 in the fourth quarter of 2024. No shares of common stock were repurchased under the Company’s April 2024 Stock Repurchase Plan (“Repurchase Plan”) during the quarter ended December 31, 2024. There are 846,123 shares that remain available for repurchase under the Repurchase Plan.

    Awards/Recognition
    The Company received several accolades as a leader in the community in the last year.

    In September 2024, the First Fed team was recognized in the 2024 Best of Olympic Peninsula surveys, winning Best Bank and Best Lender in Clallam County; Best Bank and Best Financial Advisor in the West End; and Best Lender in Jefferson County. First Fed was also a finalist for Best Bank, Best Customer Service, Best Employer and Best Financial Advisor in Jefferson County; Best Customer Service, Best Employer and Best Financial Advisor in Clallam County; and Best Customer Service and Best Employer in the West End.
    In May 2024, First Fed, along with the First Fed Community Foundation, were honored to be ranked second on the Puget Sound Business Journal Midsize Corporate Philanthropists list.
    In October 2023, the First Fed team was honored to bring home the Gold for Best Bank in the Best of the Northwest survey hosted by Bellingham Alive for the second year in a row.
    In September 2023, the First Fed team was recognized in the 2023 Best of Olympic Peninsula surveys as a finalist for Best Employer in Kitsap County and Best Bank and Best Financial Institution in Bainbridge.


    We recommend reading this earnings release in conjunction with the Fourth Quarter 2024 Investor Presentation, located at http://investor.ourfirstfed.com/quarterly-reports and included as an exhibit to our January 29, 2025, Current Report on Form 8-K.

    About the Company
    First Northwest Bancorp (Nasdaq: FNWB) is a financial holding company engaged in investment activities including the business of its subsidiary, First Fed Bank. First Fed is a Pacific Northwest-based financial institution which has served its customers and communities since 1923. Currently First Fed has 16 locations in Washington state including 12 full-service branches. First Fed’s business and operating strategy is focused on building sustainable earnings by delivering a full array of financial products and services for individuals, small businesses, non-profit organizations and commercial customers. In 2022, First Northwest made an investment in The Meriwether Group, LLC, a boutique investment banking and accelerator firm. Additionally, First Northwest focuses on strategic partnerships to provide modern financial services such as digital payments and marketplace lending. First Northwest Bancorp was incorporated in 2012 and completed its initial public offering in 2015 under the ticker symbol FNWB. The Company is headquartered in Port Angeles, Washington.

    Forward-Looking Statements
    Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, expectations of the business environment in which we operate, projections of future performance, perceived opportunities in the market, potential future credit experience, including our ability to collect, the outcome of litigation and statements regarding our mission and vision, and include, but are not limited to, statements about our plans, objectives, expectations and intentions that are not historical facts, and other statements often identified by words such as “believes,” “expects,” “anticipates,” “estimates,” or similar expressions. These forward-looking statements are based upon current management beliefs and expectations and may, therefore, involve risks and uncertainties, many of which are beyond our control. Our actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide variety of factors including, but not limited to: increased competitive pressures; changes in the interest rate environment; the credit risks of lending activities; pressures on liquidity, including as a result of withdrawals of deposits or declines in the value of our investment portfolio; changes in general economic conditions and conditions within the securities markets; legislative and regulatory changes; and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q under the section entitled “Risk Factors,” and other filings with the Securities and Exchange Commission (“SEC”),which are available on our website at www.ourfirstfed.com and on the SEC’s website at www.sec.gov.

    Any of the forward-looking statements that we make in this press release and in the other public statements we make may turn out to be incorrect because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Because of these and other uncertainties, our actual future results may be materially different from those expressed or implied in any forward-looking statements made by or on our behalf and the Company’s operating and stock price performance may be negatively affected. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for 2024 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect the Company’s operations and stock price performance.

    For More Information Contact:
    Matthew P. Deines, President and Chief Executive Officer
    Geri Bullard, EVP, Chief Financial Officer and Chief Operating Officer
    IRGroup@ourfirstfed.com
    360-457-0461

    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands, except share data) (Unaudited)
     
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		  
    ASSETS                                
    Cash and due from banks   $ 16,811   $ 17,953   $ 19,184   $ 15,562   $ 19,845  
    Interest-earning deposits in banks     55,637     64,769     63,995     61,784     103,324  
    Investment securities available for sale, at fair value     340,344     310,860     306,714     325,955     295,623  
    Loans held for sale     472     378     1,086     988     753  
    Loans receivable (net of allowance for credit losses on loans $20,449, $21,970, $19,343, $17,958, and $17,510)     1,675,186     1,714,416     1,677,764     1,692,774     1,642,518  
    Federal Home Loan Bank (FHLB) stock, at cost     14,435     14,435     13,086     15,876     13,664  
    Accrued interest receivable     8,159     8,939     9,466     8,909     7,894  
    Premises held for sale, net     —     —     —     6,751     18,049  
    Premises and equipment, net     10,129     10,436     10,714     11,028     —  
    Servicing rights on sold loans, at fair value     3,281     3,584     3,740     3,820     3,793  
    Bank-owned life insurance, net     41,150     41,429     41,113     34,681     40,578  
    Equity and partnership investments     13,229     14,912     15,085     15,121     14,794  
    Goodwill and other intangible assets, net     1,082     1,083     1,084     1,085     1,086  
    Deferred tax asset, net     13,738     10,802     12,216     12,704     13,001  
    Right-of-use (“ROU”) asset, net     17,001     17,315     17,627     5,841     6,047  
    Prepaid expenses and other assets     21,352     24,175     23,088     27,141     20,828  
    Total assets   $ 2,232,006   $ 2,255,486   $ 2,215,962   $ 2,240,020   $ 2,201,797  
                                     
    LIABILITIES AND SHAREHOLDERS’ EQUITY                                
    Deposits   $ 1,688,026   $ 1,711,641   $ 1,708,288   $ 1,666,624   $ 1,676,892  
    Borrowings     336,014     334,994     302,575     371,455     320,936  
    Accrued interest payable     3,295     2,153     3,143     2,830     3,396  
    Lease liability, net     17,535     17,799     18,054     6,227     6,428  
    Accrued expenses and other liabilities     31,770     25,625     23,717     29,980     29,545  
    Advances from borrowers for taxes and insurance     1,484     2,485     1,304     2,398     1,260  
    Total liabilities     2,078,124     2,094,697     2,057,081     2,079,514     2,038,457  
                                     
    Shareholders’ Equity                                
    Preferred stock, $0.01 par value, authorized 5,000,000 shares, no shares issued or outstanding     —     —     —     —     —  
    Common stock, $0.01 par value, 75,000,000 shares authorized; issued and outstanding at each period end: 9,353,348; 9,365,979; 9,453,247; 9,442,796; and 9,611,876     93     94     94     94     96  
    Additional paid-in capital     93,357     93,218     93,985     93,763     95,784  
    Retained earnings     97,198     100,660     103,322     106,202     107,349  
    Accumulated other comprehensive loss, net of tax     (30,172 )   (26,424 )   (31,597 )   (32,465 )   (32,636 )
    Unearned employee stock ownership plan (ESOP) shares     (6,594 )   (6,759 )   (6,923 )   (7,088 )   (7,253 )
    Total shareholders’ equity     153,882     160,789     158,881     160,506     163,340  
    Total liabilities and shareholders’ equity   $ 2,232,006   $ 2,255,486   $ 2,215,962   $ 2,240,020   $ 2,201,797  
    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Dollars in thousands, except per share data) (Unaudited)
     
        For the Quarter Ended   For the Year Ended  
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023    		  
    INTEREST INCOME                                            
    Interest and fees on loans receivable   $ 23,716   $ 23,536   $ 23,733   $ 22,767   $ 22,083   $ 93,752   $ 84,614  
    Interest on investment securities     3,658     3,786     3,949     3,632     3,393     15,025     13,279  
    Interest on deposits in banks     550     582     571     645     581     2,348     2,126  
    FHLB dividends     273     302     358     282     252     1,215     880  
    Total interest income     28,197     28,206     28,611     27,326     26,309     112,340     100,899  
    INTEREST EXPENSE                                            
    Deposits     11,175     10,960     10,180     10,112     8,758     42,427     27,019  
    Borrowings     2,885     3,226     4,196     3,286     3,356     13,593     12,448  
    Total interest expense     14,060     14,186     14,376     13,398     12,114     56,020     39,467  
    Net interest income     14,137     14,020     14,235     13,928     14,195     56,320     61,432  
    PROVISION FOR CREDIT LOSSES                                            
    Provision for credit losses on loans     3,760     3,077     8,640     1,239     1,162     16,716     2,357  
    (Recapture of) provision for credit losses on unfunded commitments     (105 )   57     99     (269 )   (10 )   (218 )   (1,034 )
    Provision for credit losses     3,655     3,134     8,739     970     1,152     16,498     1,323  
    Net interest income after provision for credit losses     10,482     10,886     5,496     12,958     13,043     39,822     60,109  
    NONINTEREST INCOME                                            
    Loan and deposit service fees     1,054     1,059     1,076     1,102     1,068     4,291     4,341  
    Sold loan servicing fees and servicing rights mark-to-market     (115 )   10     74     219     276     188     676  
    Net gain on sale of loans     52     58     150     52     33     312     438  
    Net loss on sale of investment securities     —     —     (2,117 )   —     (5,397 )   (2,117 )   (5,397 )
    Net gain on sale of premises and equipment     —     —     7,919     —     —     7,919     —  
    Increase in cash surrender value of bank-owned life insurance     328     315     293     243     260     1,179     928  
    Income from death benefit on bank-owned life insurance, net     1,536     —     —     —     —     1,536     —  
    Other (loss) income     (1,555 )   337     (48 )   572     831     (694 )   3,034  
    Total noninterest income     1,300     1,779     7,347     2,188     (2,929 )   12,614     4,020  
    NONINTEREST EXPENSE                                            
    Compensation and benefits     7,367     8,582     8,588     8,128     7,397     32,665     31,209  
    Data processing     2,065     2,085     2,008     1,944     2,107     8,102     8,170  
    Occupancy and equipment     1,559     1,553     1,799     1,240     1,262     6,151     4,858  
    Supplies, postage, and telephone     296     360     317     293     351     1,266     1,433  
    Regulatory assessments and state taxes     460     548     457     513     376     1,978     1,635  
    Advertising     362     409     377     309     235     1,457     2,706  
    Professional fees     813     698     684     910     1,119     3,105     3,738  
    FDIC insurance premium     491     533     473     386     418     1,883     1,357  
    Other expense     820     1,080     906     580     3,725     3,386     6,348  
    Total noninterest expense     14,233     15,848     15,609     14,303     16,990     59,993     61,454  
    Loss before provision (benefit) for income taxes     (2,451 )   (3,183 )   (2,766 )   843     (6,876 )   (7,557 )   2,675  
    Provision (benefit) for income taxes     359     (1,203 )   (547 )   447     (1,354 )   (944 )   549  
    Net (loss) income   $ (2,810 ) $ (1,980 ) $ (2,219 ) $ 396   $ (5,522 ) $ (6,613 ) $ 2,286  
                                                 
    Basic and diluted (loss) earnings per common share   $ (0.32 ) $ (0.23 ) $ (0.25 ) $ 0.04   $ (0.62 ) $ (0.75 ) $ 0.26  
                                                 
    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    ADDITIONAL INFORMATION
    (Dollars in thousands) (Unaudited)
     
    Selected Loan Detail   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		  
    Construction and land loans breakout                                
    1-4 Family construction   $ 39,319   $ 43,125   $ 56,514   $ 69,075   $ 68,029  
    Multifamily construction     15,407     29,109     43,341     45,776     50,431  
    Nonresidential construction     16,857     17,500     1,015     3,374     3,756  
    Land and development     6,527     5,975     6,403     7,122     7,475  
    Total construction and land loans   $ 78,110   $ 95,709   $ 107,273   $ 125,347   $ 129,691  
                                     
    Auto and other consumer loans breakout                                
    Triad Manufactured Home loans   $ 128,231   $ 129,600   $ 110,510   $ 105,525   $ 105,057  
    Woodside auto loans     117,968     126,129     131,151     128,072     124,401  
    First Help auto loans     14,283     15,971     17,427     8,326     4,516  
    Other auto loans     1,647     2,064     2,690     3,313     4,158  
    Other consumer loans     6,747     7,434     23,845     23,598     10,998  
    Total auto and other consumer loans   $ 268,876   $ 281,198   $ 285,623   $ 268,834   $ 249,130  
                                     
    Commercial business loans breakout                                
    Northpointe Bank MPP   $ 36,230   $ 38,155   $ 9,150   $ 15,047   $ 9,502  
    Secured lines of credit     35,701     37,686     28,862     41,014     35,815  
    Unsecured lines of credit     1,717     1,571     1,133     1,001     456  
    SBA loans     7,044     7,219     7,146     8,944     9,115  
    Other commercial business loans     70,801     70,696     70,803     70,291     57,407  
    Total commercial business loans   $ 151,493   $ 155,327   $ 117,094   $ 136,297   $ 112,295  
    Loans by Collateral and Unfunded Commitments   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		  
    One-to-four family construction   $ 44,468   $ 51,607   $ 49,440   $ 70,100   $ 60,211  
    All other construction and land     34,290     45,166     58,346     55,286     69,484  
    One-to-four family first mortgage     466,046     469,053     434,840     436,543     426,159  
    One-to-four family junior liens     15,090     14,701     13,706     12,608     12,250  
    One-to-four family revolving open-end     51,481     48,459     44,803     45,536     42,479  
    Commercial real estate, owner occupied:                                
    Health care     29,129     29,407     29,678     29,946     22,523  
    Office     17,756     17,901     19,215     17,951     18,468  
    Warehouse     14,948     11,645     14,613     14,683     14,758  
    Other     78,170     64,535     56,292     55,063     61,304  
    Commercial real estate, non-owner occupied:                                
    Office     49,417     49,770     50,158     53,099     53,548  
    Retail     49,591     49,717     50,101     50,478     51,384  
    Hospitality     61,919     62,282     62,628     66,982     67,332  
    Other     81,640     82,573     84,428     93,040     94,822  
    Multi-family residential     333,419     354,118     350,382     339,907     333,428  
    Commercial business loans     77,381     86,904     79,055     90,781     76,920  
    Commercial agriculture and fishing loans     21,833     15,369     14,411     10,200     5,422  
    State and political subdivision obligations     369     404     405     405     405  
    Consumer automobile loans     133,789     144,036     151,121     139,524     132,877  
    Consumer loans secured by other assets     131,429     132,749     129,293     122,895     108,542  
    Consumer loans unsecured     3,658     4,411     5,209     6,415     7,712  
    Total loans   $ 1,695,823   $ 1,734,807   $ 1,698,124   $ 1,711,442   $ 1,660,028  
                                     
    Unfunded commitments under lines of credit or existing loans   $ 163,827   $ 166,446   $ 155,005   $ 148,736   $ 149,631  
    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    NET INTEREST MARGIN ANALYSIS
    (Dollars in thousands) (Unaudited)
     
        Three Months Ended December 31,  
        2024   2023  
        Average   Interest         Average   Interest        
        Balance   Earned/   Yield/   Balance   Earned/   Yield/  
        Outstanding   Paid   Rate   Outstanding   Paid   Rate  
        (Dollars in thousands)  
    Interest-earning assets:                                      
    Loans receivable, net (1) (2)   $ 1,688,239   $ 23,716     5.59 % $ 1,628,718   $ 22,083     5.38 %
    Investment securities     313,759     3,658     4.64     297,020     3,393     4.53  
    FHLB dividends     11,762     273     9.23     12,514     252     7.99  
    Interest-earning deposits in banks     45,358     550     4.82     41,974     581     5.49  
    Total interest-earning assets (3)     2,059,118     28,197     5.45     1,980,226     26,309     5.27  
    Noninterest-earning assets     146,384                 147,429              
    Total average assets   $ 2,205,502               $ 2,127,655              
    Interest-bearing liabilities:                                      
    Interest-bearing demand deposits   $ 162,954   $ 210     0.51   $ 172,013   $ 197     0.45  
    Money market accounts     442,481     2,773     2.49     362,366     1,351     1.48  
    Savings accounts     206,605     721     1.39     247,744     963     1.54  
    Certificates of deposit, customer     461,136     4,925     4.25     424,722     4,197     3.92  
    Certificates of deposit, brokered     192,018     2,546     5.27     172,214     2,050     4.72  
    Total interest-bearing deposits (4)     1,465,194     11,175     3.03     1,379,059     8,758     2.52  
    Advances     236,576     2,491     4.19     256,560     2,962     4.58  
    Subordinated debt     39,504     394     3.97     39,425     394     3.96  
    Total interest-bearing liabilities     1,741,274     14,060     3.21     1,675,044     12,114     2.87  
    Noninterest-bearing deposits (4)     256,715                 259,845              
    Other noninterest-bearing liabilities     45,953                 36,795              
    Total average liabilities     2,043,942                 1,971,684              
    Average equity     161,560                 155,971              
    Total average liabilities and equity   $ 2,205,502               $ 2,127,655              
                                           
    Net interest income         $ 14,137               $ 14,195        
    Net interest rate spread                 2.24                 2.40  
    Net earning assets   $ 317,844               $ 305,182              
    Net interest margin (5)                 2.73                 2.84  
    Average interest-earning assets to average interest-bearing liabilities     118.3 %               118.2 %            

    (1) The average loans receivable, net balances include nonaccrual loans.
    (2) Interest earned on loans receivable includes net deferred fees (costs) of $103,000 and ($151,000) for the three months ended December 31, 2024 and 2023, respectively.
    (3) Includes interest-earning deposits (cash) at other financial institutions.
    (4) Cost of all deposits, including noninterest-bearing demand deposits, was 2.58% and 2.12% for the three months ended December 31, 2024 and 2023, respectively.
    (5) Net interest income divided by average interest-earning assets.

    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    ADDITIONAL INFORMATION
    (Dollars in thousands) (Unaudited)

    Non-GAAP Financial Measures
    This press release contains financial measures that are not in conformity with generally accepted accounting principles in the United States of America (“GAAP”). Non-GAAP measures are presented where management believes the information will help investors understand the Company’s results of operations or financial position and assess trends. Where non-GAAP financial measures are used, the comparable GAAP financial measure is also provided. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP performance measures that may be presented by other companies. Other banking companies may use names similar to those the Company uses for the non-GAAP financial measures the Company discloses, but may calculate them differently. Investors should understand how the Company and other companies each calculate their non-GAAP financial measures when making comparisons. Reconciliations of the GAAP and non-GAAP measures are presented below.

    Calculations Based on PPNR and Adjusted PPNR:

        For the Quarter Ended   For the Year Ended  
    (Dollars in thousands)   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023    		  
    Net (loss) income   $ (2,810 ) $ (1,980 ) $ (2,219 ) $ 396   $ (5,522 ) $ (6,613 ) $ 2,286  
    Plus: provision for credit losses     3,655     3,134     8,739     970     1,152     16,498     1,323  
    Provision (benefit) for income taxes     359     (1,203 )   (547 )   447     (1,354 )   (944 )   549  
    PPNR (1)     1,204     (49 )   5,973     1,813     (5,724 )   8,941     4,158  
    Selected nonrecurring adjustments to PPNR                                            
    Less: Net gain on sale of premises and equipment     —     —     7,919     —     —     7,919     —  
    Sale leaseback taxes and assessments included in occupancy and equipment     —     —     (359 )   —     —     (359 )   —  
    Net loss on sale of investment securities     —     —     (2,117 )   —     (5,397 )   (2,117 )   (5,397 )
    Adjusted PPNR (1)   $ 1,204   $ (49 ) $ 530   $ 1,813   $ (327 ) $ 3,498   $ 9,555  
                                                 
    Average total assets   $ 2,205,502   $ 2,209,333   $ 2,219,370   $ 2,166,187   $ 2,127,655   $ 2,200,138   $ 2,109,200  
    Return on average assets (GAAP)     -0.51 %   -0.36 %   -0.40 %   0.07 %   -1.03 %   -0.30 %   0.11 %
    Adjusted PPNR return on average assets (Non-GAAP) (1)     0.22 %   -0.01 %   0.10 %   0.34 %   -0.06 %   0.16 %   0.45 %
    (1) We believe these non-GAAP metrics are useful to evaluate the relative strength of the Company’s performance.
    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    ADDITIONAL INFORMATION
    (Dollars in thousands) (Unaudited)
     
    Calculations Based on Tangible Common Equity:
     
        For the Quarter Ended   For the Year 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)  
    Total shareholders’ equity   $ 153,882   $ 160,789   $ 158,881   $ 160,506   $ 163,340   $ 153,882   $ 163,340  
    Less: Goodwill and other intangible assets     1,082     1,083     1,084     1,085     1,086     1,082     1,086  
    Disallowed non-mortgage loan servicing rights     423     489     517     489     481     423     481  
    Total tangible common equity   $ 152,377   $ 159,217   $ 157,280   $ 158,932   $ 161,773   $ 152,377   $ 161,773  
                                                 
    Total assets   $ 2,232,006   $ 2,255,486   $ 2,215,962   $ 2,240,020   $ 2,201,797   $ 2,232,006   $ 2,201,797  
    Less: Goodwill and other intangible assets     1,082     1,083     1,084     1,085     1,086     1,082     1,086  
    Disallowed non-mortgage loan servicing rights     423     489     517     489     481     423     481  
    Total tangible assets   $ 2,230,501   $ 2,253,914   $ 2,214,361   $ 2,238,446   $ 2,200,230   $ 2,230,501   $ 2,200,230  
                                                 
    Average shareholders’ equity   $ 161,560   $ 160,479   $ 163,079   $ 161,867   $ 155,971   $ 161,742   $ 159,413  
    Less: Average goodwill and other intangible assets     1,083     1,084     1,085     1,085     1,086     1,084     1,087  
    Average disallowed non-mortgage loan servicing rights     489     517     489     481     608     494     670  
    Total average tangible common equity   $ 159,988   $ 158,878   $ 161,505   $ 160,301   $ 154,277   $ 160,164   $ 157,656  
                                                 
    Net (loss) income   $ (2,810 ) $ (1,980 ) $ (2,219 ) $ 396   $ (5,522 ) $ (6,613 ) $ 2,286  
    Common shares outstanding     9,353,348     9,365,979     9,453,247     9,442,796     9,611,876     9,353,348     9,611,876  
    GAAP Ratios:                                            
    Equity to total assets     6.89 %   7.13 %   7.17 %   7.17 %   7.42 %   6.89 %   7.42 %
    Return on average equity     -6.92 %   -4.91 %   -5.47 %   0.98 %   -14.05 %   -4.09 %   1.43 %
    Book value per common share   $ 16.45   $ 17.17   $ 16.81   $ 17.00   $ 16.99   $ 16.45   $ 16.99  
    Non-GAAP Ratios:                                            
    Tangible common equity to tangible assets (1)     6.83 %   7.06 %   7.10 %   7.10 %   7.35 %   6.83 %   7.35 %
    Return on average tangible common equity (1)     -6.99 %   -4.96 %   -5.53 %   0.99 %   -14.20 %   -4.13 %   1.45 %
    Tangible book value per common share (1)   $ 16.29   $ 17.00   $ 16.64   $ 16.83   $ 16.83   $ 16.29   $ 16.83  
    (1 ) We believe these non-GAAP metrics provide an important measure with which to analyze and evaluate financial condition and capital strength. In addition, we believe that use of tangible equity and tangible assets improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles.

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    ST. LOUIS, Jan. 29, 2025 (GLOBE NEWSWIRE) — Stifel Financial Corp. (NYSE: SF) today reported net revenues of $1.36 billion for the three months ended December 31, 2024, compared with $1.15 billion a year ago. Net income available to common shareholders of $234.7 million, or $2.09 per diluted common share, compared with $153.2 million, or $1.38 per diluted common share for the fourth quarter of 2023. Non-GAAP net income available to common shareholders of $249.7 million, or $2.23 per diluted common share for the fourth quarter of 2024.

    Net revenues of $4.97 billion for the year ended December 31, 2024 compared to $4.35 billion a year ago. Net income available to common shareholders of $694.1 million, or $6.25 per diluted common share, compared with $485.3 million, or $4.28 per diluted common share in 2023. Non-GAAP net income available to common shareholders of $755.9 million, or $6.81 per diluted common share in 2024.

    Ronald J. Kruszewski, Chairman and Chief Executive Officer, said “Stifel generated record net revenue and the second highest earnings per share in our history in 2024. The fact that we accomplished this level of performance in a year when our Institutional segment was rebounding from a very difficult operating environment in 2023 is a testament to the strength and diversity of our business model. Given our long history of profitable growth, Stifel is well positioned to capitalize on improving market conditions in 2025 and to achieve our short and long term targets.”

    Full Year Highlights

    • The Company reported record net revenues of $4.97 billion driven by higher investment banking revenues, asset management revenues, and transactional revenues, partially offset by lower net interest income.
    • Non-GAAP net income available to common shareholders of $6.81.
    • Record asset management revenues, up 18% over 2023.
    • Record client assets of $501.4 billion, up 13% over 2023.
    • Recruited 100 financial advisors during the year, including 34 experienced employee advisors and 12 experienced independent advisors.
    • Non-GAAP pre-tax margin of 20%.
    • Return on average tangible common equity (ROTCE) (5) of 23%.
    • Tangible book value per common share (7) of $34.99, up 12% from prior year.


    Fourth Quarter Highlights

    • Quarterly record net revenues of $1.36 billion.
    • Non-GAAP net income available to common shareholders of $2.23.
    • Investment banking revenue increased 48% over the year-ago quarter, driven by higher advisory and capital raising revenues.
      • Capital raising revenues increased 50% over the year-ago quarter.
      • Advisory revenues increased 47% over the year-ago quarter.
    • Non-GAAP pre-tax margin of 21%.
    • Annualized ROTCE (5) of 28%.

    Other Highlights

    • Board of Directors authorized a 10% increase in common stock dividend starting in the first quarter of 2025.
    • Announced the acquisition of Bryan, Garnier, & Co.
    Financial Summary (Unaudited)
    (000s) 4Q 2024 4Q 2023 FY 2024 FY 2023
    GAAP Financial Highlights:      
    Net revenues $1,364,682   $1,146,379   $4,970,320   $4,348,944  
    Net income (1) $234,685   $153,164   $694,098   $485,255  
    Diluted EPS (1) $2.09   $1.38   $6.25   $4.28  
    Comp. ratio 58.3%   58.8%   58.7%   58.7%  
    Non-comp. ratio 22.2%   23.2%   22.6%   25.1%  
    Pre-tax margin 19.5%   18.0%   18.7%   16.2%  
    Non-GAAP Financial Highlights:      
    Net revenues $1,364,721   $1,146,419   $4,971,051   $4,348,958  
    Net income (1)(2) $249,710   $166,587   $755,896   $531,524  
    Diluted EPS (1) (2) $2.23   $1.50   $6.81   $4.68  
    Comp. ratio (2) 58.0%   58.0%   58.0%   58.0%  
    Non-comp. ratio (2) 21.3%   22.6%   21.9%   24.3%  
    Pre-tax margin (3) 20.7%   19.4%   20.1%   17.7%  
    ROCE (4) 20.1%   14.6%   15.9%   11.5%  
    ROTCE (5) 28.3%   21.3%   22.7%   16.6%  
    Global Wealth Management (assets and loans in millions)  
    Net revenues $865,209   $766,028   $3,283,960   $3,049,962  
    Pre-tax net income $316,318   $301,360   $1,207,942   $1,215,822  
    Total client assets $501,402   $444,318      
    Fee-based client assets $192,705   $165,301      
    Bank loans, net (6) $21,311   $19,730      
    Institutional Group        
    Net revenues $478,335   $359,292   $1,592,833   $1,226,317  
    Equity $280,159   $200,915   $926,729   $709,286  
    Fixed Income $198,176   $158,377   $666,104   $517,031  
    Pre-tax net income $95,681   $7,771   $223,400   $2,100  

    Global Wealth Management

    Fourth Quarter Results

    Global Wealth Management reported record net revenues of $865.2 million for the three months ended December 31, 2024 compared with $766.0 million during the fourth quarter of 2023. Pre-tax net income was $316.3 million compared with $301.4 million in the fourth quarter of 2023.

    Highlights

    • Client assets of $501.4 billion, up 13% over the year-ago quarter.
    • Fee-based client assets of $192.7 billion, up 17% over the year-ago quarter.
    • Recruited 8 financial advisors during the quarter, including 4 experienced employee advisors with total trailing 12 month production of $8 million.

    Net revenues increased 13% from a year ago:

    • Transactional revenues increased 18% over the year-ago quarter reflecting an increase in client activity.
    • Asset management revenues increased 23% over the year-ago quarter reflecting higher asset values as a result of improved market conditions and net cash inflows.
    • Net interest income decreased 1% from the year-ago quarter primarily as a result of lower rates, partially offset by balance sheet growth.

    Total Expenses:

    • Compensation expense as percent of net revenues increased to 48.5% primarily as a result of higher compensable revenues.
    • Provision for credit losses was primarily impacted by loan growth and a deterioration in certain loans, partially offset by a slightly better macroeconomic forecast.
    • Non-compensation operating expenses as a percent of net revenues increased to 14.9% primarily as a result of higher litigation-related expenses and an increase in the provision for credit losses, partially offset by revenue growth.
    Summary Results of Operations  
    (000s) 4Q 2024 4Q 2023  
    Net revenues $865,209   $766,028    
    Transactional revenues   200,564     169,471    
    Asset management   405,800     330,498    
    Net interest income   254,337     257,920    
    Investment banking   5,198     4,562    
    Other income   (690)     3,577    
    Total expenses $548,891   $464,668    
    Compensation expense   419,466     359,376    
    Provision for credit losses   11,893     (37)    
    Non-comp. opex   117,532     105,329    
    Pre-tax net income $316,318   $301,360    
    Compensation ratio   48.5%     46.9%    
    Non-compensation ratio   14.9%     13.8%    
    Pre-tax margin   36.6%     39.3%    

    Institutional Group

    Fourth Quarter Results

    Institutional Group reported net revenues of $478.3 million for the three months ended December 31, 2024 compared with $359.3 million during the fourth quarter of 2023. Pre-tax net income was $95.7 million compared with $7.8 million in the fourth quarter of 2023.

    Highlights

    Investment banking revenues increased 49% from a year ago:

    • Advisory revenues of $189.9 million increased 47% from the year-ago quarter driven by higher levels of completed advisory transactions.
    • Fixed income capital raising revenues increased 53% over the year-ago quarter primarily driven by higher bond issuances.
    • Equity capital raising revenues increased 52% over the year-ago quarter driven by higher volumes.

    Fixed income transactional revenues increased 16% from a year ago:

    • Fixed income transactional revenues increased from the year-ago quarter driven by improved client engagement and realized trading gains.

    Equity transactional revenues increased 5% from a year ago:

    • Equity transactional revenues increased from the year-ago quarter primarily driven by an increase in equities trading commissions.

    Total Expenses:

    • Compensation expense as a percent of net revenues decreased to 58.6% primarily as a result of higher revenues.
    • Non-compensation operating expenses as a percent of net revenues decreased to 21.4% primarily as a result of revenue growth.
    Summary Results of Operations  
    (000s)  4Q 2024  4Q 2023  
    Net revenues $478,335   $359,292    
    Investment banking   299,221     201,102    
    Advisory   189,912     129,378    
    Fixed income capital raising   61,424     40,214    
    Equity capital raising   47,885     31,510    
    Fixed income transactional   118,700     102,019    
    Equity transactional   59,409     56,501    
    Other   1,005     (330)    
    Total expenses $382,654   $351,521    
    Compensation expense   280,261     248,970    
    Non-comp. opex.   102,393     102,551    
    Pre-tax net income $95,681   $7,771    
    Compensation ratio   58.6%     69.3%    
    Non-compensation ratio   21.4%     28.5%    
    Pre-tax margin   20.0%     2.2%    

    Global Wealth Management

    Full Year Results

    Global Wealth Management reported record net revenues of $3.3 billion for the year ended December 31, 2024 compared with $3.0 billion in 2023. Pre-tax net income of $1.2 billion decreased 1% from 2023.

    Highlights

    • Recruited 100 financial advisors during the year, including 34 experienced employee advisors and 12 experienced independent advisors with total trailing 12 month production of $37 million.

    Net revenues increased 8% from prior year:

    • Transactional revenues increased 15% from prior year reflecting an increase in client activity.
    • Asset management revenues increased 18% from prior year reflecting higher asset values as a result of improved market conditions and net cash inflows.
    • Net interest income decreased 11% from prior year primarily driven by changes in the deposit mix, partially offset by lending growth and higher rates.

    Total Expenses:

    • Compensation expense as a percent of net revenues increased to 48.9% primarily as a result of higher compensable revenues.
    • Provision for credit losses was primarily impacted by loan growth and a deterioration in certain loans, partially offset by a slightly better macroeconomic forecast.
    • Non-compensation operating expenses as a percent of net revenues increased to 14.3% primarily as a result of higher litigation-related expenses and an increase in the provision for credit losses, partially offset by revenue growth.
    Summary Results of Operations  
    (000s) FY 2024 FY 2023  
    Net revenues $3,283,960   $3,049,962    
    Transactional revenues   752,352     654,231    
    Asset management   1,536,296     1,299,361    
    Net interest income   967,712     1,086,628    
    Investment banking   21,475     16,680    
    Other income   6,125     (6,938)    
    Total expenses $2,076,018   $1,834,140    
    Compensation expense   1,605,148     1,415,210    
    Provision for credit losses   25,102     22,699    
    Non-comp. opex   445,768     396,231    
    Pre-tax net income $1,207,942   $1,215,822    
    Compensation ratio   48.9%     46.4%    
    Non-compensation ratio   14.3%     13.7%    
    Pre-tax margin   36.8%     39.9%    

    Institutional Group

    Full Year Results

    Institutional Group reported net revenues of $1.6 billion for the year ended December 31, 2024 compared with $1.2 billion in 2023. Pre-tax net income was $223.4 million compared with $2.1 million in 2023.

    Highlights

    Investment banking revenues increased 36% from prior year:

    • Advisory revenues of $577.4 million increased 24% from prior year driven by higher levels of completed advisory transactions.
    • Fixed income capital raising revenues increased 48% from prior year driven by an increase in our corporate debt issuance business.
    • Equity capital raising revenues increased 74% from prior year driven by higher volumes.

    Fixed income transactional revenues increased 27% from prior year:

    • Fixed income transactional revenues increased from prior year driven by improved client engagement, market volatility, and realized trading gains.

    Equity transactional revenues increased 7% from prior year:

    • Equity transactional revenues increased from prior year driven by an increase in equities trading commissions.

    Total Expenses:

    • Compensation expense as a percent of net revenues decreased to 60.2% primarily as a result of higher revenues.
    • Non-compensation operating expenses as a percent of net revenues decreased to 25.8% as a result of revenue growth and expense discipline.
    Summary Results of Operations  
    (000s)  FY 2024 FY 2023  
    Net revenues $1,592,833   $1,226,317    
    Investment banking   973,356     714,575    
    Advisory   577,432     465,588    
    Fixed income capital raising   209,047     141,647    
    Equity capital raising   186,877     107,340    
    Fixed income transactional   393,013     308,393    
    Equity transactional   215,223     201,413    
    Other   11,241     1,936    
    Total expenses $1,369,433   $1,224,217    
    Compensation expense   959,602     841,671    
    Non-comp. opex.   409,831     382,546    
    Pre-tax net income $223,400   $2,100    
    Compensation ratio   60.2%     68.6%    
    Non-compensation ratio   25.8%     31.2%    
    Pre-tax margin   14.0%     0.2%    

    Other Matters

    Highlights

    • Total assets increased $2.1 billion, or 6%, over the year-ago quarter.
    • The Board of Directors approved a 10% increase in the quarterly dividend to $0.46 per common share starting in the first quarter of 2025.
    • The Company repurchased $45.5 million of its outstanding common stock during the fourth quarter. During 2024, the Company repurchased $242.6 million of its outstanding common stock.
    • Weighted average diluted shares outstanding increased from the year-ago quarter as a result of the increase in share price and a decrease in share repurchases over the comparable period.
    • The effective tax rate was primarily impacted by the benefit related to the tax impact on stock-based compensation.
    • The Board of Directors declared a $0.42 quarterly dividend per share payable on December 16, 2024 to common shareholders of record on December 2, 2024.
    • The Board of Directors declared a quarterly dividend on the outstanding shares of the Company’s preferred stock payable on December 16, 2024 to shareholders of record on December 2, 2024.
      4Q 2024 4Q 2023 FY 2024 FY 2023
    Common stock repurchases      
    Repurchases (000s) $45,461   $141,138   $242,628   $518,296  
    Number of shares (000s)   408     2,345     3,140     8,475  
    Average price $111.30   $60.18   $77.28   $61.16  
    Period end shares (000s)   102,171     101,062     102,171     101,062  
    Weighted average diluted shares outstanding (000s)   112,089     111,330     110,975     113,453  
    Effective tax rate   8.3%     21.1%     21.2%     26.1%  
    Stifel Financial Corp. (8)
    Tier 1 common capital ratio   15.4%     14.2%      
    Tier 1 risk based capital ratio   18.2%     17.2%      
    Tier 1 leverage capital ratio   11.4%     10.5%      
    Tier 1 capital (MM) $4,331   $3,916      
    Risk weighted assets (MM) $23,742   $22,748      
    Average assets (MM) $38,073   $37,451      
    Quarter end assets (MM) $39,896   $37,727      
    Agency Rating Outlook    
    Fitch Ratings BBB+ Stable    
    S&P Global Ratings BBB Stable    

    Conference Call Information

    Stifel Financial Corp. will host its fourth quarter and full year 2024 financial results conference call on Wednesday, January 29, 2025, at 9:30 a.m. Eastern Time. The conference call may include forward-looking statements.

    All interested parties are invited to listen to Stifel’s Chairman and CEO, Ronald J. Kruszewski, by dialing (866) 409-1555 and referencing conference ID 7408307. A live audio webcast of the call, as well as a presentation highlighting the Company’s results, will be available through the Company’s web site, www.stifel.com. For those who cannot listen to the live broadcast, a replay of the broadcast will be available through the above-referenced web site beginning approximately one hour following the completion of the call.

    Company Information

    Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel’s broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners and Miller Buckfire business divisions; Keefe, Bruyette & Woods, Inc.; and Stifel Independent Advisors, LLC; in Canada through Stifel Nicolaus Canada Inc.; and in the United Kingdom and Europe through Stifel Nicolaus Europe Limited. The Company’s broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Company’s website at www.stifel.com. For global disclosures, please visit www.stifel.com/investor-relations/press-releases.

    A financial summary follows. Financial, statistical and business-related information, as well as information regarding business and segment trends, is included in the financial supplement. Both the earnings release and the financial supplement are available online in the Investor Relations section at www.stifel.com/investor-relations.

    The information provided herein and in the financial supplement, including information provided on the Company’s earnings conference calls, may include certain non-GAAP financial measures. The definition of such measures or reconciliation of such measures to the comparable U.S. GAAP figures are included in this earnings release and the financial supplement, both of which are available online in the Investor Relations section at www.stifel.com/investor-relations.

    Cautionary Note Regarding Forward-Looking Statements

    This earnings release contains certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this earnings release not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements in this earnings release are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things, the following possibilities: the ability to successfully integrate acquired companies or the branch offices and financial advisors; a material adverse change in financial condition; the risk of borrower, depositor, and other customer attrition; a change in general business and economic conditions; changes in the interest rate environment, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation and regulation; other economic, competitive, governmental, regulatory, geopolitical, and technological factors affecting the companies’ operations, pricing, and services; and other risk factors referred to from time to time in filings made by Stifel Financial Corp. with the Securities and Exchange Commission. For information about the risks and important factors that could affect the Company’s future results, financial condition and liquidity, see “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Forward-looking statements speak only as to the date they are made. The Company disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

    Summary Results of Operations (Unaudited)

      Three Months Ended   Year Ended
    (000s, except per share amounts) 12/31/2024 12/31/2023 % Change 9/30/2024 % Change 12/31/2024 12/31/2023 % Change
    Revenues:                
    Commissions $ 203,786 $ 173,614 17.4   $ 183,445 11.1   $ 756,024 $ 673,597 12.2  
    Principal transactions   174,887   154,377 13.3     137,089 27.6     604,564   490,440 23.3  
    Investment banking   304,419   205,664 48.0     243,182 25.2     994,831   731,255 36.0  
    Asset management   405,825   330,536 22.8     382,616 6.1     1,536,674   1,299,496 18.3  
    Other income   3,294   9,687 (66.0 )   18,705 (82.4 )   43,129   8,747 393.1  
    Operating revenues   1,092,211   873,878 25.0     965,037 13.2     3,935,222   3,203,535 22.8  
    Interest revenue   500,661   516,213 (3.0 )   510,823 (2.0 )   2,016,464   1,955,745 3.1  
    Total revenues   1,592,872   1,390,091 14.6     1,475,860 7.9     5,951,686   5,159,280 15.4  
    Interest expense   228,190   243,712 (6.4 )   251,192 (9.2 )   981,366   810,336 21.1  
    Net revenues   1,364,682   1,146,379 19.0     1,224,668 11.4     4,970,320   4,348,944 14.3  
    Non-interest expenses:                
    Compensation and benefits   795,750   674,437 18.0     718,065 10.8     2,916,229   2,554,581 14.2  
    Non-compensation operating expenses   302,731   265,947 13.8     289,945 4.4     1,125,647   1,087,671 3.5  
    Total non-interest expenses   1,098,481   940,384 16.8     1,008,010 9.0     4,041,876   3,642,252 11.0  
    Income before income taxes   266,201   205,995 29.2     216,658 22.9     928,444   706,692 31.4  
    Provision for income taxes   22,196   43,511 (49.0 )   58,153 (61.8 )   197,065   184,156 7.0  
    Net income   244,005   162,484 50.2     158,505 53.9     731,379   522,536 40.0  
    Preferred dividends   9,320   9,320 0.0     9,320 0.0     37,281   37,281 0.0  
    Net income available to common shareholders $ 234,685 $ 153,164 53.2   $ 149,185 57.3   $ 694,098 $ 485,255 43.0  
    Earnings per common share:                
    Basic $ 2.26 $ 1.47 53.7   $ 1.43 58.0   $ 6.67 $ 4.55 46.6  
    Diluted $ 2.09 $ 1.38 51.4   $ 1.34 56.0   $ 6.25 $ 4.28 46.0  
    Cash dividends declared per common share $ 0.42 $ 0.36 16.7   $ 0.42 0.0   $ 1.68 $ 1.44 16.7  
    Weighted average number of common shares outstanding:          
    Basic   103,856   103,934 (0.1 )   103,966 (0.1 )   104,066   106,661 (2.4 )
    Diluted   112,089   111,330 0.7     110,994 1.0     110,975   113,453 (2.2 )

    Non-GAAP Financial Measures (9)

      Three Months Ended Year Ended
    (000s, except per share amounts) 12/31/2024 12/31/2023 12/31/2024 12/31/2023
    GAAP net income $244,005   $162,484   $731,379   $522,536  
    Preferred dividend   9,320     9,320     37,281     37,281  
    Net income available to common shareholders   234,685     153,164     694,098     485,255  
             
    Non-GAAP adjustments:        
    Merger-related (10)   16,820     16,921     60,745     63,222  
    Restructuring and severance (11)   (430)     —     10,792     —  
    Provision for income taxes (12)   (1,365)     (3,498)     (9,739)     (16,953)  
    Total non-GAAP adjustments   15,025     13,423     61,798     46,269  
    Non-GAAP net income available to common shareholders $249,710   $166,587   $755,896   $531,524  
             
    Weighted average diluted shares outstanding   112,089     111,330     110,975     113,453  
             
    GAAP earnings per diluted common share $2.18   $1.46   $6.59   $4.61  
    Non-GAAP adjustments   0.14     0.12     0.56     0.40  
    Non-GAAP earnings per diluted common share $2.32   $1.58   $7.15   $5.01  
             
    GAAP earnings per diluted common share available to common shareholders $2.09   $1.38   $6.25   $4.28  
    Non-GAAP adjustments   0.14     0.12     0.56     0.40  
    Non-GAAP earnings per diluted common share available to common shareholders $2.23   $1.50   $6.81   $4.68  


    GAAP to Non-GAAP Reconciliation     (9)

      Three Months Ended Year Ended
    (000s) 12/31/2024 12/31/2023 12/31/2024 12/31/2023
    GAAP compensation and benefits $795,750   $674,437   $2,916,229   $2,554,581  
    As a percentage of net revenues   58.3%     58.8%     58.7%     58.7%  
    Non-GAAP adjustments:        
    Merger-related (10)   (4,641)     (9,203)     (22,039)     (32,150)  
    Restructuring and severance (11)   430     —     (10,792)     —  
    Total non-GAAP adjustments   (4,211)     (9,203)     (32,831)     (32,150)  
    Non-GAAP compensation and benefits $791,539   $665,234   $2,883,398   $2,522,431  
    As a percentage of non-GAAP net revenues   58.0%     58.0%     58.0%     58.0%  
             
    GAAP non-compensation expenses $302,731   $265,947   $1,125,647   $1,087,671  
    As a percentage of net revenues   22.2%     23.2%     22.6%     25.1%  
    Non-GAAP adjustments:        
    Merger-related (10)   (12,140)     (7,678)     (37,975)     (31,058)  
    Non-GAAP non-compensation expenses $290,591   $258,269   $1,087,672   $1,056,613  
    As a percentage of non-GAAP net revenues   21.3%     22.6%     21.9%     24.3%  
    Total adjustments $16,390   $16,921   $71,537   $63,222  

    Footnotes

    (1)   Represents available to common shareholders.

    (2)   Reconciliations of the Company’s GAAP results to these non-GAAP measures are discussed within and under “Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliation.”

    (3)   Non-GAAP pre-tax margin is calculated by adding total non-GAAP adjustments and dividing it by non-GAAP net revenues. See “Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliation.”

    (4)   Return on average common equity (“ROCE”) is calculated by dividing annualized net income applicable to common shareholders by average common shareholders’ equity or, in the case of non-GAAP ROCE, calculated by dividing non-GAAP net income applicable to commons shareholders by average common shareholders’ equity.

    (5)   Return on average tangible common equity (“ROTCE”) is calculated by dividing annualized net income applicable to common shareholders by average tangible shareholders’ equity or, in the case of non-GAAP ROTCE, calculated by dividing non-GAAP net income applicable to common shareholders by average tangible common equity. Tangible common equity, also a non-GAAP financial measure, equals total common shareholders’ equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets. Average deferred taxes on goodwill and intangible assets was $80.3 million and $71.1 million as of December 31, 2024 and 2023, respectively.

    (6)   Includes loans held for sale.

    (7)   Tangible book value per common share represents shareholders’ equity (excluding preferred stock) divided by period end common shares outstanding. Tangible common shareholders’ equity equals total common shareholders’ equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets.

    (8)   Capital ratios are estimates at time of the Company’s earnings release, January 29, 2025.

    (9)   The Company prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S. GAAP). The Company may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude, or include, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial measures disclosed by the Company are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing the Company’s financial condition or operating results. These measures are not in accordance with, or a substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever the Company refers to a non-GAAP financial measure, it will also define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the non-GAAP financial measure it references and such comparable U.S. GAAP financial measure.

    (10)   Primarily related to charges attributable to integration-related activities, signing bonuses, amortization of restricted stock awards, debentures, and promissory notes issued as retention, additional earn-out expense, and amortization of intangible assets acquired. These costs were directly related to acquisitions of certain businesses and are not representative of the costs of running the Company’s on-going business.

    (11)   The Company recorded severance costs associated with workforce reductions in certain of its foreign subsidiaries.

    (12)   Primarily represents the Company’s effective tax rate for the period applied to the non-GAAP adjustments.

    Media Contact: Neil Shapiro (212) 271-3447 | Investor Contact: Joel Jeffrey (212) 271- 3610 | www.stifel.com/investor-relations 

    The MIL Network –

  • MIL-OSI: Fidelity D & D Bancorp, Inc. Reports 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    DUNMORE, Pa., Jan. 29, 2025 (GLOBE NEWSWIRE) — Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking subsidiary, The Fidelity Deposit and Discount Bank (“the Company”), announced its unaudited, consolidated financial results for the three and twelve month periods ended December 31, 2024.

    Unaudited Financial Information

    Net income recorded for the year ended December 31, 2024 was $20.8 million, or $3.60 diluted earnings per share, compared to $18.2 million, or $3.19 diluted earnings per share, for the year ended December 31, 2023. The $2.6 million, or 14% increase in net income resulted primarily from the $7.6 million increase in non-interest income for 2024 compared to 2023. During 2023, the Company sold available-for-sale securities resulting in a $6.5 million loss, $5.1 million net of tax, which was the primary reason for the change in non-interest income. This was partially offset by the $3.7 million increase in non-interest expense.

    Net income for the quarter ended December 31, 2024 was $5.8 million, or $1.01 diluted earnings per share, compared to $0.5 million, or $0.08 diluted earnings per share, for the quarter ended December 31, 2023. The $5.3 million increase in net income stemmed from a $6.5 million loss, $5.1 million net of tax, on the sale of securities which lowered non-interest income for the fourth quarter of 2023. This is coupled with a $1.5 million increase in net interest income to $16.4 million in the fourth quarter of 2024, compared to $14.9 million in the same quarter of 2023. These increases are offset by a $1.6 million increase in non-interest expense.

    “We are pleased to post solid performance in Q4, attributable to the execution of our strategic initiatives and improvement in our net interest margin,” said Dan Santaniello, President and CEO. “Strong deposit and lending growth, along with positive balance sheet trends and credit metrics contributed to the achievement of year end asset balances of $2.6 billion and $20.8 million in net income. I would like to thank our bankers for their efforts and dedication in continuing to serve our clients, our shareholders and our communities well, positioning us for a strong 2025.”

    Consolidated Year-To-Date Operating Results Overview

    Net interest income was $61.9 million for the year ended December 31, 2024 compared to $62.1 million for the year ended December 31, 2023. The $0.2 million, or less than 1%, decline was the result of interest expense growing faster than interest income. On the asset side, the loan portfolio caused interest income growth by producing $12.6 million more in interest income primarily from an increase of 45 basis points in the fully-taxable equivalent (“FTE”) loan yields on $106.1 million in higher average balances. On the funding side, total interest expense increased by $13.4 million due to an increase in interest expense paid on deposits of $14.2 million from a 72 basis point higher rate paid on a $111.0 million larger average balance of interest-bearing deposits, partially offset by a decrease in interest expense on borrowings of $0.8 million for the twelve months ended December 31, 2024 compared to the same period in 2023.

    The overall cost of interest-bearing liabilities was 2.60% for the twelve months ended December 31, 2024 compared to 1.93% for the twelve months ended December 31, 2023. The cost of funds increased 55 basis points to 1.99% for the twelve months ended December 31, 2024 from 1.44% for the same period of 2023. The FTE yield on interest-earning assets was 4.62% for the year ended December 31, 2024, an increase of 44 basis points from the 4.18% for the same period of 2023. The Company’s FTE (non-GAAP measurement) net interest spread was 2.02% for the twelve months ended December 31, 2024, a decrease of 23 basis points from the 2.25% recorded for the same period of 2023. FTE net interest margin decreased by 9 basis points to 2.72% for the twelve months ended December 31, 2024 from 2.81% for the same 2023 period due to the increase of 67 basis points in rates paid on interest-bearing liabilities growing at a faster pace than the increase of 44 basis points in yields on interest-earning assets.

    For the year ended December 31, 2024, the provision for credit losses on loans was $1.3 million and the provision for credit losses on unfunded commitments was $0.1 million, compared to a $1.5 million provision for credit losses on loans and a $0.2 million net benefit for the provision for unfunded commitments for the year ended December 31, 2023. For the year ended December 31, 2024, the decrease in the provision for credit losses on loans compared to the prior year period was due to lower net charge-offs coupled with improved economic forecast assumptions. For the year ended December 31, 2024, the increase in the provision for credit losses on unfunded commitments compared to the prior period was due to growth in unfunded commitments, specifically in commercial construction commitments.

    Total non-interest income for the year ended December 31, 2024 was $19.0 million, an increase of $7.6 million, or 67%, from $11.4 million for the year ended December 31, 2023. The primary driver of the large increase was a $6.5 million loss recognized on the sale of securities during 2023. The remaining $1.1 million increase resulted from increases of $0.6 million in additional trust fiduciary fees, $0.3 million in additional service charges on loans, $0.2 million more in debit card interchange fees and $0.1 million higher fees from financial services. Partially offsetting these increases, the Company received $0.3 million in recoveries from acquired charged-off loans during 2023. Additionally, the Company experienced a decrease of $0.2 million in fees from commercial loans with interest rate hedges compared to 2023.

    Non-interest expenses increased to $55.5 million for the year ended December 31, 2024, an increase of $3.6 million, or 7%, from $51.9 million for the year ended December 31, 2023. Salaries and benefits expense increased $3.2 million due to an increase in employees and incentive-based compensation throughout the year ended December 31, 2024. There were additional increases throughout the period in professional fees of $0.6 million, and PA shares tax of $0.3 million. The increases were partially offset by $0.5 million less in fraud losses and $0.3 million less advertising and marketing expenses.

    The provision for income taxes increased $1.0 million during 2024 compared to 2023 due to $3.6 million higher income before taxes.

    Consolidated Fourth Quarter Operating Results Overview

    Net interest income was $16.4 million for the fourth quarter of 2024, a 10% increase over the $14.9 million earned for the fourth quarter of 2023. The $1.5 million increase in net interest income resulted from the increase of $3.2 million in interest income primarily due to a $131.7 million increase in the average balance of interest-earning assets and a 32 basis point increase in the FTE yield. The loan portfolio had the biggest impact, producing a $3.2 million increase in interest income from $132.1 million in higher quarterly average balances and an increase of 37 basis points in the FTE loan yield. Slightly offsetting the higher interest income is a $1.7 million increase in interest expense due to a 24 basis point increase in the rates paid on interest-bearing liabilities coupled with a $152.4 million quarter-over-quarter increase in average interest-bearing deposit balances. The largest contributor to the increase in interest expense was due to growth in average balances and a 31 basis point increase in the rates paid on interest-bearing deposits.

    The overall cost of interest-bearing liabilities was 2.60% for the fourth quarter of 2024, an increase of 24 basis points from the 2.36% paid for the fourth quarter of 2023. The cost of funds increased 21 basis points to 2.00% for the fourth quarter of 2024 from 1.79% for the fourth quarter of 2023. The Company’s FTE (non-GAAP measurement) net interest spread was 2.08% for the fourth quarter of 2024, up 8 basis points from the 2.00% recorded for the fourth quarter of 2023. FTE net interest margin increased by 12 basis points to 2.78% for the three months ended December 31, 2024 from 2.66% for the same 2023 period due to the increase of 32 basis points in the yields on interest-earning assets growing slightly faster than increase of 24 basis points in rates paid on interest-bearing liabilities.

    For the three months ended December 31, 2024, the provision for credit losses on loans was $0.2 million partially offset by a $0.1 million net benefit in the provision for unfunded commitments, compared to a $0.1 million provision for credit losses on loans and a $0.1 million net benefit in the provision for credit losses on unfunded loan commitments for the three months ended December 31, 2023. For the three months ended December 31, 2024, the increase in the provision for credit losses on loans compared to the prior year period was due to higher net charge-offs compared to the same period of 2023. For the three months ended December 31, 2024, the $0.1 million net benefit for credit losses on unfunded commitments, which was unchanged from the prior year period, was due to a reduction in unfunded commitments as funds were advanced during the quarter.

    Total non-interest income increased $6.8 million to $4.8 million in the fourth quarter of 2024 compared to the same period of 2023 primarily due to the $6.5 million loss recognized on the sale of securities during the fourth quarter of 2023. Additionally, the Company experienced an increase of $0.2 million in trust fiduciary activities revenue.

    Non-interest expenses increased $1.6 million, or 12%, for the fourth quarter of 2024 to $14.4 million from $12.8 million for the same quarter of 2023. The increase in non-interest expenses was primarily due to $1.2 million increase in salaries and benefits expense from higher salaries related to new hires and banker incentives. There were also increases in professional services of $0.3 million, data center services of $0.1 million, and PA shares tax of $0.1 million.

    The provision for income taxes increased $1.2 million during the fourth quarter of 2024 primarily due to the higher level of operating income compared to the fourth quarter of 2023.

    Consolidated Balance Sheet & Asset Quality Overview

    The Company’s total assets grew to $2.6 billion as of December 31, 2024, an increase of $81.5 million from December 31, 2023. The increase resulted from $114.3 million in growth in the loans and leases portfolio during the twelve months ended December 31, 2024. Asset growth was offset by a decline in cash and cash equivalents by $28.6 million and a decrease in the investment portfolio by $11.1 million. The decline in the investment portfolio was primarily due to $22.0 million in paydowns partially offset by a $15.4 million in purchases within the available-for-sale securities portfolio. As of December 31, 2024, the market value of held-to-maturity securities decreased by $2.6 million compared to December 31, 2023, bringing the portfolio down to a $31.2 million unrealized loss position.

    During the same time period, total liabilities increased $67.0 million, or 3%. Deposit growth of $182.4 million was utilized to fund loan growth and pay-off of short-term borrowings as of December 31, 2024. The Company experienced an increase of $110.4 million in money market deposits and an increase of $125.9 million in time deposits due to promotional rates offered as a result of market competition. The growth in these products was partially offset by a decrease of $53.9 million in checking and savings account balances as of December 31, 2024. This decrease resulted primarily from declines experienced in average balances per checking and saving account, even though the number of accounts in each product grew throughout 2024. Also as of December 31, 2024, checking deposit balances remained at more than half of total deposits. As of December 31, 2024, the ratio of insured and collateralized deposits to total deposits was approximately 76%.

    Shareholders’ equity increased $14.5 million, or 8%, to $204.0 million at December 31, 2024 from $189.5 million at December 31, 2023. The increase was caused by $11.9 million higher retained earnings from net income of $20.8 million plus a $0.9 million, after tax, improvement in accumulated other comprehensive income from lower net unrealized losses recorded on available-for-sale securities, partially offset by $8.9 million in cash dividends paid to shareholders. An additional $1.7 million was recorded from the issuance of common stock under the Company’s stock plans and stock-based compensation expense. At December 31, 2024, there were no credit losses on available-for-sale and held-to-maturity debt securities. Accumulated other comprehensive income (loss) is excluded from regulatory capital ratios. The Company remains well capitalized with Tier 1 capital at 9.22% of total average assets as of December 31, 2024. Total risk-based capital was 14.78% of risk-weighted assets and Tier 1 risk-based capital was 13.60% of risk-weighted assets as of December 31, 2024. Tangible book value per share was $31.98 at December 31, 2024 compared to $29.57 at December 31, 2023. Tangible common equity was 7.16% of total assets at December 31, 2024 compared to 6.79% at December 31, 2023.

    Asset Quality

    Total non-performing assets were $7.8 million, or 0.30% of total assets at December 31, 2024, compared to $3.3 million, or 0.13% of total assets at December 31, 2023. Past due and non-accrual loans to total loans were 0.71% at December 31, 2024 compared to 0.46% at December 31, 2023. Net charge-offs to average total loans were 0.03% at December 31, 2024 compared to 0.04% at December 31, 2023.

    About Fidelity D & D Bancorp, Inc. and The Fidelity Deposit and Discount Bank

    Fidelity D & D Bancorp, Inc. has built a strong history as trusted financial advisor to the clients served by The Fidelity Deposit and Discount Bank (“Fidelity Bank”). Fidelity Bank continues its mission of exceeding client expectations through a unique banking experience. It operates 21 full-service offices throughout Lackawanna, Luzerne, Lehigh and Northampton Counties and a Fidelity Bank Wealth Management Office in Schuylkill County. Fidelity Bank provides a digital banking experience online at www.bankatfidelity.com, through the Fidelity Mobile Banking app, and in the Client Care Center at 1-800-388-4380. Additionally, the Bank offers full-service Wealth Management & Brokerage Services, a Mortgage Center, and a full suite of personal and commercial banking products and services. Part of the Company’s vision is to serve as the best bank for the community, which was accomplished by having provided over 5,960 hours of volunteer time and over $1.3 million in donations to non-profit organizations directly within the markets served throughout 2024. Fidelity Bank’s deposits are insured by the Federal Deposit Insurance Corporation up to the full extent permitted by law.

    Non-GAAP Financial Measures

    The Company uses non-GAAP financial measures to provide information useful to the reader in understanding its operating performance and trends, and to facilitate comparisons with the performance of other financial institutions. Management uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities. The Company’s non-GAAP financial measures and key performance indicators may differ from the non-GAAP financial measures and key performance indicators other financial institutions use to measure their performance and trends. Non-GAAP financial measures should be supplemental to GAAP used to prepare the Company’s operating results and should not be read in isolation or relied upon as a substitute for GAAP measures. Reconciliations of non-GAAP financial measures to GAAP are presented in the tables below.

    Interest income was adjusted to recognize the income from tax exempt interest-earning assets as if the interest was taxable, fully-taxable equivalent (“FTE”), in order to calculate certain ratios within this document. This treatment allows a uniform comparison among yields on interest-earning assets. Interest income was FTE adjusted, using the corporate federal tax rate of 21% for 2024 and 2023.

    Forward-looking statements

    Certain of the matters discussed in this press release constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and as such may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. The words “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” and similar expressions are intended to identify such forward-looking statements.

    The Company’s actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation:

      ■ local, regional and national economic conditions and changes thereto;
      ■ the short-term and long-term effects of inflation, and rising costs to the Company, its customers and on the economy;
      ■ the risks of changes and volatility of 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;
      ■ securities markets and monetary fluctuations and volatility;
      ■ disruption of credit and equity markets;
      ■ impacts of the capital and liquidity requirements of the Basel III standards and other regulatory pronouncements, regulations and rules;
      ■ governmental monetary and fiscal policies, as well as legislative and regulatory changes;
      ■ effects of short- and long-term federal budget and tax negotiations and their effect on economic and business conditions;
      ■ the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;
      ■ the impact of new or changes in existing laws and regulations, including laws and regulations concerning taxes, banking, securities and insurance and their application with which the Company and its subsidiaries must comply;
      ■ the effect 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;
      ■ the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market area and elsewhere, including institutions operating locally, regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the internet;
      ■  the effects of economic conditions of any pandemic, epidemic or other health-related crisis such as COVID-19 and responses thereto on current customers and the operations of the Company, specifically the effect of the economy on loan customers’ ability to repay loans;
      ■  the effects of bank failures, banking system instability, deposit fluctuations, loan and securities value changes;
      ■  technological changes;
      ■  the interruption or breach in security of our information systems, continually evolving cybersecurity and other technological risks and attacks resulting in failures or disruptions in customer account management, general ledger processing and loan or deposit updates and potential impacts resulting therefrom including additional costs, reputational damage, regulatory penalties, and financial losses;
      ■  acquisitions and integration of acquired businesses;
      ■  the 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; and
      ■  the risk that our analyses of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful.

    The Company cautions readers not to place undue reliance on forward-looking statements, which reflect analyses only as of the date of this release. The Company has no obligation to update any forward-looking statements to reflect events or circumstances after the date of this release.

    For more information please visit our investor relations web site located through www.bankatfidelity.com.

    FIDELITY D & D BANCORP, INC.
    Unaudited Condensed Consolidated Balance Sheets
    (dollars in thousands)
     
    At Period End:   December 31, 2024     December 31, 2023  
    Assets                
    Cash and cash equivalents   $ 83,353     $ 111,949  
    Investment securities     557,221       568,273  
    Restricted investments in bank stock     3,961       3,905  
    Loans and leases     1,800,856       1,686,555  
    Allowance for credit losses on loans     (19,666 )     (18,806 )
    Premises and equipment, net     35,914       34,232  
    Life insurance cash surrender value     58,069       54,572  
    Goodwill and core deposit intangible     20,504       20,812  
    Other assets     44,404       41,667  
                     
    Total assets   $ 2,584,616     $ 2,503,159  
                     
    Liabilities                
    Non-interest-bearing deposits   $ 533,935     $ 536,143  
    Interest-bearing deposits     1,806,885       1,622,282  
    Total deposits     2,340,820       2,158,425  
    Short-term borrowings     –       117,000  
    Secured borrowings     6,266       7,372  
    Other liabilities     33,561       30,883  
    Total liabilities     2,380,647       2,313,680  
                     
    Shareholders’ equity     203,969       189,479  
                     
    Total liabilities and shareholders’ equity   $ 2,584,616     $ 2,503,159  
    Average Year-To-Date Balances:   December 31, 2024     December 31, 2023  
    Assets                
    Cash and cash equivalents   $ 55,773     $ 35,462  
    Investment securities     557,537       597,359  
    Restricted investments in bank stock     3,960       4,212  
    Loans and leases     1,741,349       1,635,286  
    Allowance for credit losses on loans     (19,391 )     (18,680 )
    Premises and equipment, net     35,580       32,215  
    Life insurance cash surrender value     56,455       54,085  
    Goodwill and core deposit intangible     20,641       20,977  
    Other assets     41,755       44,180  
                     
    Total assets   $ 2,493,659     $ 2,405,096  
                     
    Liabilities                
    Non-interest-bearing deposits   $ 527,825     $ 558,962  
    Interest-bearing deposits     1,697,529       1,586,527  
    Total deposits     2,225,354       2,145,489  
    Short-term borrowings     32,446       49,860  
    Secured borrowings     6,830       7,489  
    Other liabilities     32,471       29,881  
    Total liabilities     2,297,101       2,232,719  
                     
    Shareholders’ equity     196,558       172,377  
                     
    Total liabilities and shareholders’ equity   $ 2,493,659     $ 2,405,096  
    FIDELITY D & D BANCORP, INC.
    Unaudited Condensed Consolidated Statements of Income
    (dollars in thousands)
     
        Three Months Ended     Twelve Months Ended  
        Dec. 31, 2024     Dec. 31, 2023     Dec. 31, 2024     Dec. 31, 2023  
    Interest income                                
    Loans and leases   $ 24,584     $ 21,406     $ 93,269     $ 80,629  
    Securities and other     3,475       3,434       13,753       13,206  
                                     
    Total interest income     28,059       24,840       107,022       93,835  
                                     
    Interest expense                                
    Deposits     (11,468 )     (9,232 )     (43,165 )     (28,945 )
    Borrowings and debt     (217 )     (707 )     (1,992 )     (2,843 )
                                     
    Total interest expense     (11,685 )     (9,939 )     (45,157 )     (31,788 )
                                     
    Net interest income     16,374       14,901       61,865       62,047  
                                     
    Provision for credit losses on loans     (250 )     (111 )     (1,325 )     (1,491 )
    Net benefit (provision) for credit losses on unfunded loan commitments     85       65       (140 )     165  
    Non-interest income (loss)     4,847       (1,944 )     19,013       11,405  
    Non-interest expense     (14,395 )     (12,804 )     (55,541 )     (51,870 )
                                     
    Income before income taxes     6,661       107       23,872       20,256  
                                     
    (Provision) benefit for income taxes     (826 )     361       (3,078 )     (2,046 )
    Net income   $ 5,835     $ 468     $ 20,794     $ 18,210  
        Three Months Ended  
        Dec. 31, 2024     Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024     Dec. 31, 2023  
    Interest income                                        
    Loans and leases   $ 24,584     $ 24,036     $ 22,516     $ 22,133     $ 21,406  
    Securities and other     3,475       3,263       3,523       3,492       3,434  
                                             
    Total interest income     28,059       27,299       26,039       25,625       24,840  
                                             
    Interest expense                                        
    Deposits     (11,468 )     (11,297 )     (10,459 )     (9,941 )     (9,232 )
    Borrowings and debt     (217 )     (571 )     (463 )     (741 )     (707 )
                                             
    Total interest expense     (11,685 )     (11,868 )     (10,922 )     (10,682 )     (9,939 )
                                             
    Net interest income     16,374       15,431       15,117       14,943       14,901  
                                             
    Provision for credit losses on loans     (250 )     (675 )     (275 )     (125 )     (111 )
    Net benefit (provision) for credit losses on unfunded loan commitments     85       (135 )     (140 )     50       65  
    Non-interest income (loss)     4,847       4,979       4,615       4,572       (1,944 )
    Non-interest expense     (14,395 )     (13,840 )     (13,616 )     (13,689 )     (12,804 )
                                             
    Income before income taxes     6,661       5,760       5,701       5,751       107  
                                             
    (Provision) benefit for income taxes     (826 )     (793 )     (766 )     (694 )     361  
    Net income   $ 5,835     $ 4,967     $ 4,935     $ 5,057     $ 468  
    FIDELITY D & D BANCORP, INC.
    Unaudited Condensed Consolidated Balance Sheets
    (dollars in thousands)
     
    At Period End:   Dec. 31, 2024     Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024     Dec. 31, 2023  
    Assets                                        
    Cash and cash equivalents   $ 83,353     $ 120,169     $ 78,085     $ 72,733     $ 111,949  
    Investment securities     557,221       559,819       552,495       559,016       568,273  
    Restricted investments in bank stock     3,961       3,944       3,968       3,959       3,905  
    Loans and leases     1,800,856       1,795,548       1,728,509       1,697,299       1,686,555  
    Allowance for credit losses on loans     (19,666 )     (19,630 )     (18,975 )     (18,886 )     (18,806 )
    Premises and equipment, net     35,914       36,057       35,808       34,899       34,232  
    Life insurance cash surrender value     58,069       57,672       57,278       54,921       54,572  
    Goodwill and core deposit intangible     20,504       20,576       20,649       20,728       20,812  
    Other assets     44,404       41,778       42,828       44,227       41,667  
                                             
    Total assets   $ 2,584,616     $ 2,615,933     $ 2,500,645     $ 2,468,896     $ 2,503,159  
                                             
    Liabilities                                        
    Non-interest-bearing deposits   $ 533,935     $ 549,710     $ 527,572     $ 537,824     $ 536,143  
    Interest-bearing deposits     1,806,885       1,792,796       1,641,558       1,678,172       1,622,282  
    Total deposits     2,340,820       2,342,506       2,169,130       2,215,996       2,158,425  
    Short-term borrowings     –       25,000       98,120       25,000       117,000  
    Secured borrowings     6,266       6,323       7,237       7,299       7,372  
    Other liabilities     33,561       34,843       30,466       28,966       30,883  
    Total liabilities     2,380,647       2,408,672       2,304,953       2,277,261       2,313,680  
                                             
    Shareholders’ equity     203,969       207,261       195,692       191,635       189,479  
                                             
    Total liabilities and shareholders’ equity   $ 2,584,616     $ 2,615,933     $ 2,500,645     $ 2,468,896     $ 2,503,159  
    Average Quarterly Balances:   Dec. 31, 2024     Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024     Dec. 31, 2023  
    Assets                                        
    Cash and cash equivalents   $ 67,882     $ 41,991     $ 58,351     $ 54,887     $ 42,176  
    Investment securities     560,453       554,578       551,445       563,674       558,423  
    Restricted investments in bank stock     3,957       3,965       3,983       3,934       3,854  
    Loans and leases     1,797,023       1,763,254       1,707,598       1,696,669       1,664,905  
    Allowance for credit losses on loans     (20,050 )     (19,323 )     (19,171 )     (19,013 )     (19,222 )
    Premises and equipment, net     36,065       36,219       35,433       34,591       33,629  
    Life insurance cash surrender value     57,919       57,525       55,552       54,796       54,449  
    Goodwill and core deposit intangible     20,529       20,602       20,677       20,759       20,844  
    Other assets     41,454       41,734       42,960       40,871       46,028  
                                             
    Total assets   $ 2,565,232     $ 2,500,545     $ 2,456,828     $ 2,451,168     $ 2,405,086  
                                             
    Liabilities                                        
    Non-interest-bearing deposits   $ 538,506     $ 522,827     $ 530,048     $ 519,856     $ 533,663  
    Interest-bearing deposits     1,769,265       1,702,187       1,670,211       1,647,615       1,616,826  
    Total deposits     2,307,771       2,225,014       2,200,259       2,167,471       2,150,489  
    Short-term borrowings     10,326       37,220       28,477       53,952       48,490  
    Secured borrowings     6,297       6,429       7,269       7,335       7,412  
    Other liabilities     34,695       31,999       30,734       32,434       30,745  
    Total liabilities     2,359,089       2,300,662       2,266,739       2,261,192       2,237,136  
                                             
    Shareholders’ equity     206,143       199,883       190,089       189,976       167,950  
                                             
    Total liabilities and shareholders’ equity   $ 2,565,232     $ 2,500,545     $ 2,456,828     $ 2,451,168     $ 2,405,086  
    FIDELITY D & D BANCORP, INC.
    Selected Financial Ratios and Other Financial Data
     
        Three Months Ended  
        Dec. 31, 2024     Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024     Dec. 31, 2023  
    Selected returns and financial ratios                                        
    Basic earnings per share   $ 1.02     $ 0.87     $ 0.86     $ 0.88     $ 0.08  
    Diluted earnings per share   $ 1.01     $ 0.86     $ 0.86     $ 0.88     $ 0.08  
    Dividends per share   $ 0.40     $ 0.38     $ 0.38     $ 0.38     $ 0.38  
    Yield on interest-earning assets (FTE)*     4.68 %     4.68 %     4.58 %     4.52 %     4.36 %
    Cost of interest-bearing liabilities     2.60 %     2.70 %     2.58 %     2.51 %     2.36 %
    Cost of funds     2.00 %     2.08 %     1.96 %     1.93 %     1.79 %
    Net interest spread (FTE)*     2.08 %     1.98 %     2.00 %     2.01 %     2.00 %
    Net interest margin (FTE)*     2.78 %     2.70 %     2.71 %     2.69 %     2.66 %
    Return on average assets     0.90 %     0.79 %     0.81 %     0.83 %     0.08 %
    Pre-provision net revenue to average assets*     1.06 %     1.05 %     1.00 %     0.96 %     0.03 %
    Return on average equity     11.26 %     9.89 %     10.44 %     10.71 %     1.10 %
    Return on average tangible equity*     12.50 %     11.02 %     11.72 %     12.02 %     1.26 %
    Efficiency ratio (FTE)*     65.48 %     65.33 %     66.47 %     67.56 %     63.74 %
    Expense ratio     1.48 %     1.41 %     1.47 %     1.50 %     2.43 %
        Years ended  
        Dec. 31, 2024     Dec. 31, 2023  
    Basic earnings per share   $ 3.63     $ 3.21  
    Diluted earnings per share   $ 3.60     $ 3.19  
    Dividends per share   $ 1.54     $ 1.46  
    Yield on interest-earning assets (FTE)*     4.62 %     4.18 %
    Cost of interest-bearing liabilities     2.60 %     1.93 %
    Cost of funds     1.99 %     1.44 %
    Net interest spread (FTE)*     2.02 %     2.25 %
    Net interest margin (FTE)*     2.72 %     2.81 %
    Return on average assets     0.83 %     0.76 %
    Pre-provision net revenue to average assets*     1.02 %     0.90 %
    Return on average equity     10.58 %     10.56 %
    Return on average tangible equity*     11.82 %     12.03 %
    Efficiency ratio (FTE)*     66.19 %     62.67 %
    Expense ratio     1.47 %     1.69 %
    FIDELITY D & D BANCORP, INC.
    Selected Financial Ratios and Other Financial Data
     
    Non-GAAP Measures   Three Months Ended     Twelve Months Ended  
    (dollars in thousands except per share data)   Dec. 31, 2024     Dec. 31, 2023     Dec. 31, 2024     Dec. 31, 2023  
    Net income   $ 5,835     $ 468     $ 20,794     $ 18,210  
    Loss (gain) on the sale of available-for-sale debt securities, net of income taxes     –       5,109       –       5,110  
    Adjusted net income*   $ 5,835     $ 5,577     $ 20,794     $ 23,320  
    Adjusted basic earnings per share*   $ 1.02     $ 0.98     $ 3.63     $ 4.11  
    Adjusted diluted earnings per share*   $ 1.01     $ 0.97     $ 3.60     $ 4.08  
    Adjusted return on average assets*     0.90 %     0.92 %     0.83 %     0.97 %
    Adjusted return on average tangible equity*     12.51 %     15.04 %     11.82 %     15.40 %
    Other financial data   At period end:  
    (dollars in thousands except per share data)   Dec. 31, 2024     Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024     Dec. 31, 2023  
    Assets under management   $ 921,994     $ 942,190     $ 906,861     $ 900,964     $ 876,287  
    Book value per share   $ 35.56     $ 36.13     $ 34.12     $ 33.41     $ 33.22  
    Tangible book value per share*   $ 31.98     $ 32.55     $ 30.52     $ 29.80     $ 29.57  
    Equity to assets     7.89 %     7.92 %     7.83 %     7.76 %     7.57 %
    Tangible common equity ratio*     7.16 %     7.19 %     7.06 %     6.98 %     6.79 %
    Allowance for credit losses on loans to:                                        
    Total loans     1.09 %     1.09 %     1.10 %     1.11 %     1.12 %
    Non-accrual loans   2.68x     2.77x     2.75x     5.31x     5.68x  
    Non-accrual loans to total loans     0.41 %     0.39 %     0.40 %     0.21 %     0.20 %
    Non-performing assets to total assets     0.30 %     0.29 %     0.28 %     0.15 %     0.13 %
    Net charge-offs to average total loans     0.03 %     0.02 %     0.03 %     0.01 %     0.04 %
                                             
    Capital Adequacy Ratios                                        
    Total risk-based capital ratio     14.78 %     14.56 %     14.69 %     14.68 %     14.67 %
    Common equity tier 1 risk-based capital ratio     13.60 %     13.38 %     13.52 %     13.47 %     13.42 %
    Tier 1 risk-based capital ratio     13.60 %     13.38 %     13.52 %     13.47 %     13.42 %
    Leverage ratio     9.22 %     9.30 %     9.30 %     9.15 %     9.15 %

    * Non-GAAP Financial Measures – see reconciliations below

    FIDELITY D & D BANCORP, INC.
    Reconciliations of Non-GAAP Financial Measures to GAAP
           
    Reconciliations of Non-GAAP Measures to GAAP   Three Months Ended  
    (dollars in thousands)   Dec. 31, 2024     Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024     Dec. 31, 2023  
    FTE net interest income (non-GAAP)                                        
    Interest income (GAAP)   $ 28,059     $ 27,299     $ 26,039     $ 25,625     $ 24,840  
    Adjustment to FTE     764       775       751       747       664  
    Interest income adjusted to FTE (non-GAAP)     28,823       28,074       26,790       26,372       25,504  
    Interest expense (GAAP)     11,685       11,868       10,922       10,682       9,939  
    Net interest income adjusted to FTE (non-GAAP)   $ 17,138       16,206     $ 15,868       15,690       15,565  
                                             
    Efficiency Ratio (non-GAAP)                                        
    Non-interest expenses (GAAP)   $ 14,395     $ 13,840     $ 13,616     $ 13,689     $ 12,804  
                                             
    Net interest income (GAAP)     16,374       15,431       15,117       14,943       14,901  
    Plus: taxable equivalent adjustment     764       775       751       747       664  
    Non-interest income (GAAP)     4,847       4,979       4,615       4,572       (1,944 )
    Less: (Loss) gain on sales of securities     –       –       –       –       (6,467 )
    Net interest income (FTE) plus adjusted non-interest income (non-GAAP)   $ 21,985     $ 21,185     $ 20,483     $ 20,262     $ 20,088  
    Efficiency ratio (non-GAAP) (1)     65.47 %     65.33 %     66.48 %     67.56 %     63.74 %
    (1) The reported efficiency ratio is a non-GAAP measure calculated by dividing non-interest expense by the sum of net interest income, on an FTE basis, and adjusted non-interest (loss) income.                                        
                                             
    Tangible Book Value per Share/Tangible Common Equity Ratio (non-GAAP)                                        
    Total assets (GAAP)   $ 2,584,616     $ 2,615,933     $ 2,500,645     $ 2,468,896     $ 2,503,159  
    Less: Intangible assets, primarily goodwill     (20,504 )     (20,576 )     (20,649 )     (20,728 )     (20,812 )
    Tangible assets     2,564,112       2,595,357       2,479,996       2,448,168       2,482,347  
    Total shareholders’ equity (GAAP)     203,969       207,261       195,692       191,635       189,479  
    Less: Intangible assets, primarily goodwill     (20,504 )     (20,576 )     (20,649 )     (20,728 )     (20,812 )
    Tangible common equity     183,465       186,685       175,043       170,907       168,667  
                                             
    Common shares outstanding, end of period     5,736,252       5,736,025       5,735,728       5,735,732       5,703,636  
    Tangible Common Book Value per Share   $ 31.98     $ 32.55     $ 30.52     $ 29.80     $ 29.57  
    Tangible Common Equity Ratio     7.16 %     7.19 %     7.06 %     6.98 %     6.79 %
                                             
    Pre-Provision Net Revenue to Average Assets                                        
    Income before taxes (GAAP)   $ 6,661     $ 5,760     $ 5,701     $ 5,751     $ 107  
    Plus: Provision for credit losses     165       810       415       75       47  
    Total pre-provision net revenue (non-GAAP)     6,826       6,570       6,116       5,826       154  
    Total (annualized) (non-GAAP)   $ 27,157     $ 26,423     $ 24,600     $ 23,432     $ 609  
                                             
    Average assets   $ 2,565,232     $ 2,500,545     $ 2,456,828     $ 2,451,168     $ 2,405,086  
    Pre-Provision Net Revenue to Average Assets (non-GAAP)     1.06 %     1.05 %     1.00 %     0.96 %     0.03 %
    FIDELITY D & D BANCORP, INC.
    Reconciliations of Non-GAAP Financial Measures to GAAP
     
    Reconciliations of Non-GAAP Measures to GAAP   Years ended  
    (dollars in thousands)   Dec. 31, 2024     Dec. 31, 2023  
    FTE net interest income (non-GAAP)                
    Interest income (GAAP)   $ 107,022     $ 93,835  
    Adjustment to FTE     3,036       2,850  
    Interest income adjusted to FTE (non-GAAP)     110,058       96,685  
    Interest expense (GAAP)     45,157       31,788  
    Net interest income adjusted to FTE (non-GAAP)   $ 64,901       64,897  
                     
    Efficiency Ratio (non-GAAP)                
    Non-interest expenses (GAAP)   $ 55,541     $ 51,870  
                     
    Net interest income (GAAP)     61,865       62,047  
    Plus: taxable equivalent adjustment     3,036       2,850  
    Non-interest income (GAAP)     19,013       11,405  
    Less: (Loss) gain on sales of securities     –       (6,468 )
    Net interest income (FTE) plus non-interest income (non-GAAP)   $ 83,914     $ 82,770  
    Efficiency ratio (non-GAAP) (1)     66.19 %     62.67 %
    (1) The reported efficiency ratio is a non-GAAP measure calculated by dividing non-interest expense by the sum of net interest income, on an FTE basis, and adjusted non-interest (loss) income.                
                     
    Pre-Provision Net Revenue to Average Assets                
    Income before taxes (GAAP)   $ 23,873     $ 20,256  
    Plus: Provision for credit losses     1,465       1,327  
    Total pre-provision net revenue (non-GAAP)   $ 25,338     $ 21,583  
                     
    Average assets   $ 2,493,659     $ 2,405,096  
    Pre-Provision Net Revenue to Average Assets (non-GAAP)     1.02 %     0.90 %
    Contacts:  
       
    Daniel J. Santaniello Salvatore R. DeFrancesco, Jr.
    President and Chief Executive Officer Treasurer and Chief Financial Officer
    570-504-8035 570-504-8000

    The MIL Network –

  • MIL-OSI: Aktia’s Financial Statement Release 2024 will be published on Wednesday 12 February 2025 at 8.00 a.m.

    Source: GlobeNewswire (MIL-OSI)

    Aktia Bank Plc
    Press release
    29 January 2025 at 1.30 p.m.

    Aktia’s Financial Statement Release 2024 will be published on Wednesday 12 February 2025 at 8.00 a.m.

    Aktia’s Financial Statement Release 2024 will be published on Wednesday 12 February 2025 at 8.00 a.m. (EET). The Financial Statement Release is available at Aktia’s website www.aktia.com after the publication.

    Briefing for analysts, investors and media

    Aktia’s briefing for analysts, investors and media will be held in English at Little Finlandia’s Oksa-hall (Karamzininranta 4, Helsinki) on Wednesday 12 February 2025 at 10.30 a.m. Aktia’s CEO Aleksi Lehtonen and CFO Sakari Järvelä will be presenting the results. Attendees are kindly asked to register before 5 February 2025 by email at the address ir@aktia.fi.

    The briefing can be seen live as a webcast or as a recording after the briefing at https://aktia.events.inderes.com/q4-report-2024. Questions can be asked in writing during the live webcast.

    The presentation material in English is available at Aktia’s website www.aktia.com before the briefing.

    Aktia Bank Plc

    Further information:
    Oscar Taimitarha, Director, Investor Relations, tel. +358 40 562 2315

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

    Aktia är en finländsk kapitalförvaltare, bank och livförsäkrare som har skapat välstånd och välfärd generation efter generation redan under 200 års tid. Vi tillhandahåller våra kunder digitala tjänster i ett flertal kanaler och ger personlig service på våra verksamhetsställen i huvudstadsregionen samt i Åbo-, Tammerfors-, Vasa- och Uleåborgsregionerna. Vår belönade kapitalförvaltnings fonder säljs även internationellt. Vi sysselsätter ca 850 personer på olika håll i Finland. Aktias förvaltade kundtillgångar (AuM) uppgick 30.9.2024 till 14,3 miljarder euro och balansomslutningen till 12,0 miljarder euro. Aktias aktie noteras på Nasdaq Helsinki Oy (AKTIA). aktia.com.

    The MIL Network –

  • MIL-OSI Russia: Growing by leaps and bounds – credit card rates in Russia reach 40%

    Translartion. Region: Russians Fedetion –

    Sours: Mainfin Bank –

    Why have credit card rates risen to record highs in Russia?

    Rate increase credit cards – a trend expected in the second half of 2024. The average cost of servicing credit cards has come close to 40% per annum for a number of reasons:

    increase in the key rate – in six months the Central Bank of the Russian Federation raised the rate from 16 to 21% per annum; low profitability on previously concluded contracts – due to high rates banks are trying to increase the marginality of portfolios; reduction of grace periods – previously banks offered borrowers a long interest-free period, but such conditions do not correspond to the new reality; revision of the procedure for calculating the APR by individual creditors – previously the regulator caught banks in the incorrect determination of the indicator.

    By the end of 2024, the average cost of lending in the bank card segment increased to 38.8%, over 12 months the indicator increased by almost 10%. Similar dynamics are observed in other industries – PSC by loans cash increased by 9% (to 37.5%), car loans – by 5% (up to 24%), mortgage programs, including loans with state support – by 7% (up to 18%).

    What does the credit card market have in store for the foreseeable future?

    Experts are confident that the cost of using borrowed funds on credit cards will continue to grow in the coming months – Russians can expect an increase in the indicator by another 3-5 percentage points. At the same time, much depends on the decision of the Central Bank of the Russian Federation on the key rate – the next meeting will be held on February 14: it is difficult to predict the dynamics yet, since the situation on the market is ambiguous.

    “In the second half of the year, it was not difficult to predict the growth of the key rate, but now the decision of the Central Bank of the Russian Federation is not so predictable, so banks will not rush to revise the conditions – the change in tariffs will occur after the regulator’s meeting,” the experts noted.

    Russians who continue to use credit cards even with high interest rates are advised to offset costs through loyalty programs – receive cashback and bonuses, including from the bank’s partners, and also try to pay off debt during the grace period.

    12:00 28.01.2025

    Source:

    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: //Mainfin.ru/novosti/rastut-kak-on-grooves-boards-on-loans-cards-in-rf-dostille-40

    MIL OSI Russia News –

  • MIL-OSI Russia: Sobyanin: Construction of a school on the territory of the Tushino airfield has been completed

    Translartion. Region: Russians Fedetion –

    Source: Moscow Government – Government of Moscow –

    A school has been completed on the territory of the former Tushino airfield. The building on Volokolamsk Highway has created a comfortable and safe space for 825 children to study. This was reported in his telegram channel written by Sergei Sobyanin.

    “Universal and specialized classrooms were created for teachers and students, as well as a creative space similar to a university campus with laboratory and research complexes. The central element of the school is the atrium, which can be used as an assembly hall or an event venue. The building’s design is the winner of the 2023 Moscow Architecture and Urban Development Award in the educational facilities category,” said Sergei Sobyanin.

    Source: Sergei Sobyanin’s Telegram channel @mos_sobyanin

    The construction of a new school building at 75v Volokolamskoe Shosse began in May 2022 and was completed in January 2025. It was built at the expense of the investor, Asterus, the developer of the Ália residential complex, which is implementing a project to create a modern residential area with an educational hub on the territory of the former Tushino airfield.

    In addition to the school building, it will include children’s educational routes and a Coastal Park, organized according to the concept of a forest school, where adults and young city residents will be able to gain a variety of experiences interacting with living nature.

    The investor will donate the new educational building to the capital’s education system free of charge; it will become part of the complex of School No. 58.

    School with atrium

    The building was constructed according to the design of an architectural bureau that won the 2023 Moscow City Prize in architecture and urban planning in the nomination “Best Architectural and Urban Planning Solution for a School”.

    The building has four floors and one underground floor. Its area is more than 12 thousand square meters. It has created a comfortable and safe space for studying for 825 schoolchildren of grades 1-11, including a barrier-free environment for children with disabilities.

    The school building fits harmoniously into the surrounding landscape. Visually, it consists of two blocks – for primary and secondary schools. The facades with panoramic windows were made in yellow, white and gray colors to emphasize the features of the complex volumetric composition and highlight large elements in the structure of the building, assembled like a construction set.

    The design of the classrooms differs depending on the age of the students: a more formal design was created for older students and a brighter one for younger students. The walls of the school are decorated with images of function graphs, chains of molecules and diagrams of sound waves. Cryptograms were used in the design of the corridors, which facilitate navigation around the building.

    The central element of the building is the atrium — a multifunctional and multi-light space with increased ceiling height. It can be used as a lecture hall, an assembly hall or a venue for events. In addition, the atrium can serve as a comfortable space for relaxation. In fact, it will become a kind of heart of the school. At the same time, special acoustic panels will absorb possible noise, so neither loud music nor children’s laughter in the atrium will interfere with classes in the classrooms.

    In addition to 33 universal and specialized classrooms, students and teachers will have access to a creative space similar to a university campus, including laboratory and research complexes. The building also houses a media library, creative workshops, gyms, and much more.

    A sports core was set up on the school grounds: circular and straight running tracks, playgrounds for playing sports (basketball, football, volleyball), as well as recreation areas with a playground for students in grades 5-11, where a shade canopy and small play equipment were installed. In addition, an educational and experimental unit with greenhouses was located next to the school.

    The new school is scheduled to accept its first students on September 1, 2025.

    “Mathematical vertical” and pre-professional classes

    The new educational space will feature a combination of classical programs of in-depth training in the academic model of specialized education with practice-oriented engineering and technical classes, which the school implements jointly with partners (STEM approach) in the context of integrated support from a strong psychological service. Close attention will be paid to the involvement of children in sports, the use of available sports infrastructure, and the development of a school sports club.

    The school’s partners in developing the engineering and technical direction will be the state corporation Rostec and leading technical universities: Bauman Moscow State Technical University, MIREA – Russian Technological University and Moscow Aviation Institute (National Research University).

    The school plans to open classes with a mathematical and natural science focus as part of the city project “Mathematical Vertical” for students in grades seven through nine, as well as pre-professional classes (10th and 11th) as part of the city projects “Engineering Class in a Moscow School” and “IT Class in a Moscow School”.

    The focus on practical tasks and project work will be a special feature of the profile training of schoolchildren. The educational process provides for an individual approach to the children.

    Thus, the plans include introducing students to advanced professions in the field of engineering and motivating them to master professions that are in demand in the metropolis labor market. It is also planned to implement practice-oriented training based on additional pre-professional training courses, partnerships with universities and employers as part of the Rostec state corporation. In addition, it is planned to involve children in project and research activities in the field of modern engineering. Excursions, guest classes, master classes and the like will be held for schoolchildren, for example, off-site classes at the enterprises of the Rostec state corporation, as well as scientific events.

    Graduates of the school who have completed pre-profile engineering classes are planned to be considered as a priority for further training within the framework of targeted programs of the Rostec state corporation, such as Wings of Rostec, Code of Rostec, Rostec. Biotechmed.

    Medalists and winners of the Olympics

    School No. 58, created in 2019, currently includes two educational buildings on Tvardovskogo and Letnaya streets — a school building and a preschool building. It has 741 students, including 598 schoolchildren and 143 preschoolers. The workforce consists of 82 employees, including 60 teaching staff.

    The system of additional education includes programs of various focus areas: natural science, technical, physical education and sports, and social and humanitarian. The coverage of students by additional education is 95 percent.

    In the 2023/2024 academic year, 71 eleventh-graders graduated. Of these, 23 people (32 percent) were awarded the federal medal “For Special Achievements in Studies” (gold and silver), 11 people (15 percent) – the Moscow medal “For Special Achievements in Studies”. Based on the results of the Unified State Exam, 31 graduates (44 percent) received 250 points or higher in three subjects. Two graduates scored 100 points in English and mathematics.

    Last academic year, 60 children were also awarded diplomas of winners and prize winners of the municipal stage of the All-Russian School Olympiad. 34 students took part in the regional stage, of which 10 people became prize winners. Eight children received the title of prize winners of the Moscow School Olympiad. Teams of 10th and 11th grades became winners and prize winners of programming Olympiads (for example, PROD) and various hackathons.

    New schools and kindergartens

    Since 2011, 648 educational facilities have been built in Moscow, including 450 kindergartens and 198 schools. Of these, 327 were financed from the city budget and 321 from extra-budgetary funds. Plans call for the construction of about 200 new educational facilities by 2027.

    Sergei Sobyanin spoke about the development of the territory of the former Tushino airfield

    Program “My District”. Pokrovskoe-Streshnevo

    Program “My area”, developed on the initiative of Sergei Sobyanin, is the largest project for the comprehensive improvement and development of urban areas. Its goal is to create comfortable living conditions for Muscovites, regardless of their place of residence.

    More than 67 thousand people live in Pokrovskoe-Streshnevo, located in the North-West Administrative District. In recent years, much has been done here to improve the quality of life of the townspeople.

    The ground metro has arrived here — the second Moscow Central Diameter with the stations Trikotazhnaya, Tushinskaya and the city stations Shchukinskaya and Streshnevo. Convenient approaches and approaches from residential buildings have been arranged to them. At Shchukinskaya and Tushinskaya, you can transfer to the Tagansko-Krasnopresnenskaya metro line, and from Streshnevo — transfer to the station of the same name on the Moscow Central Circle.

    The reconstruction of Volokolamskoe Shosse with a radical upgrade of the interchange on the Moscow Ring Road has been completed. As a result, traffic has accelerated on one of the busiest outbound highways, and it has also improved on the northwestern section of the Moscow Ring Road. And thanks to the new U-turn overpass on Volokolamskoe Shosse towards Shchukino, it has been possible to significantly reduce the excess mileage of vehicles. In addition, Volokolamskoe Shosse has been improved – it has turned into a highway with comfortable transfers with convenient stops and pedestrian crossings.

    Seven new ground transportation routes were organized in the district. More than 50 modern bus stops were installed.

    Three charging stations of the Energy of Moscow project have been equipped for electric vehicles. Fans of cycling can use 44 bicycle parking areas and three city bike rental stations.

    The Skhodnya River Bank Park was improved, where water obstacles for rowers to train were installed on the territory of the rowing base. The Khimki River Valley Park, the embankment along the Skhodnensky Canal (left bank) from the Western Bridge to the Moscow Canal, as well as the squares near the Gzhel Moscow State Academic Dance Theater and in front of the S.G. Stroganov Russian State University of Art and Industry were put in order. In addition, 43 courtyards were improved.

    Water obstacles for slalom have been installed at the rowing base in the Skhodnya River Bank ParkMajor improvement works on Volokolamsk highway completed

    A large and significant project was the development of the natural and historical park “Pokrovskoye-Streshnevo”. During the work, the idea of its conditional division into several functional zones was implemented. Thus, a natural, ecological and educational, leisure and recreational, sports and historical and cultural parks appeared. The main and central part of “Pokrovskoye-Streshnevo” remained a natural reserve zone, and the places of active recreation were moved closer to residential areas and transport highways. In the park, the outdated infrastructure was updated and new infrastructure was created for a comfortable and safe stay of city residents, including the arrangement of 16 playgrounds, 23 sports areas, 16 gazebos for picnics.

    In the historical and cultural part of the park, the restoration of the estate ensemble is currently underway. The regular garden has been recreated, the facade work on the main house, the greenhouse and the fence with turrets has been completed, and the interiors are being restored. All elements of the architectural ensemble will be carefully restored using archival photos and drawings and adapted for modern use.

    Parquet flooring to be recreated in Pokrovskoe-Streshnevo estate

    An important event for the development of healthcare was the opening of a new treatment and diagnostic complex of the Infectious Diseases Clinical Hospital No. 1. These are three buildings with Meltzer boxes, which have no analogues in the country in terms of equipment and level of comfort.

    Sergei Sobyanin announced the imminent opening of a new complex of infectious diseases hospital No. 1The new complex of the Infectious Diseases Hospital No. 1 will become the best specialized hospital in Russia – Sergei Sobyanin

    As part of the modernization of the outpatient sector, a comprehensive reconstruction of the main building of Children’s Clinic No. 94 (Vishnevaya Street, Building 20, Building 2) has been completed and work is underway in Branch No. 3 of Clinic No. 115 (Dolgov Street, Building 1, Building 4).

    The multifunctional sports complex “Chkalov Arena” is popular with the city residents. It houses an ice arena, a universal sports hall, choreography halls and other areas where professionals and amateurs train. The new physical culture and health complex on Tushinskaya Street (house 16a) is also in demand among the residents of the district.

    Completed a comprehensive renovation of the sports and fitness complex on Gabrichevsky Street with modern sports equipment. They plan to build a multifunctional Sports Palace with an ice arena, a swimming pool, a multi-purpose hall and a gym at the address: Volokolamskoe Shosse, Building 71/10.

    For communication, leisure and creativity of the older generation, the Moscow Longevity Center of the Pokrovskoe-Streshnevo district was opened at the address: Svobody Street, Building 8/4, Building 1. Routine repairs were carried out at Children’s Libraries No. 232 (1st Tushinsky Proezd, Building 4), No. 236 (Bolshaya Naberezhnaya Street, Building 15) and Library No. 234 (Gabrichevsky Street, Building 8).

    Renovation in Pokrovskoe-Streshnevo

    In Pokrovskoe-Streshnevo, 48 buildings are included in the renovation program; about 8.3 thousand Muscovites will move into new modern apartments. The stages of resettlement have been determined:

    — first stage (2020–2024) — three houses have been resettled and demolished (the task has been fully completed);

    — the second stage (2025–2028) — resettlement of another 25 houses (eight of them are in the process of resettlement);

    — the third stage (2029–2032) — resettlement of 20 houses.

    Eight territories have been selected for resettlement of residents. Residential complexes have already been built on two of them. Design and urban planning documentation is being prepared for another six sites.

    Sergei Sobyanin included nine new sites in the renovation programA house will appear in Pokrovskoe-Streshnevo under the renovation program

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

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

    https: //vv.mos.ru/mayor/tkhemes/12326050/

    MIL OSI Russia News –

  • MIL-OSI: Southside Bancshares, Inc. Announces Financial Results for the Fourth Quarter and Year Ended December 31, 2024

    Source: GlobeNewswire (MIL-OSI)

    • Fourth quarter net income of $21.8 million;
    • Fourth quarter earnings per diluted common share of $0.71;
    • Annualized return on fourth quarter average assets of 1.03%;
    • Annualized return on fourth quarter average tangible common equity of 14.12%(1); and
    • Nonperforming assets decreased to 0.04% of total assets.

    TYLER, Texas, Jan. 29, 2025 (GLOBE NEWSWIRE) — Southside Bancshares, Inc. (“Southside” or the “Company”) (NYSE: SBSI) today reported its financial results for the quarter and year ended December 31, 2024.  Southside reported net income of $21.8 million for the three months ended December 31, 2024, an increase of $4.5 million, or 25.8%, compared to $17.3 million for the same period in 2023.  Earnings per diluted common share increased $0.14, or 24.6%, to $0.71 for the three months ended December 31, 2024, from $0.57 for the same period in 2023.  The annualized return on average shareholders’ equity for the three months ended December 31, 2024, was 10.54%, compared to 9.31% for the same period in 2023.  The annualized return on average assets was 1.03% for the three months ended December 31, 2024, compared to 0.85% for the same period in 2023.

    “For the year ended December 31, 2024, net income increased $1.8 million to $88.5 million when compared to 2023, earnings per share increased $0.09 to $2.91, and the return on average tangible common equity was 14.92%. For 2024, loan growth was 3.0% and linked quarter loans increased $83.5 million, or 7.3% annualized, most of which occurred in December,” stated Lee R. Gibson, Chief Executive Officer of Southside.  “We recorded losses of $540,000 associated with two branch closures during 2024. Linked quarter our net interest margin decreased 12 basis points. Asset quality metrics remain solid with the nonperforming assets to total assets ratio decreasing to 0.04%.  Late fourth quarter loan growth combined with anticipated mid-single digit 2025 loan growth should lead to an increasing net interest margin during 2025.”

    Operating Results for the Three Months Ended December 31, 2024

    Net income was $21.8 million for the three months ended December 31, 2024, compared to $17.3 million for the same period in 2023, an increase of $4.5 million, or 25.8%.  Earnings per diluted common share were $0.71 and $0.57 for the three months ended December 31, 2024 and 2023, respectively.  The increase in net income was a result of the increase in noninterest income and the decrease in the provision for credit losses, partially offset by increases in noninterest expense and income tax expense and a decrease in net interest income.  Annualized returns on average assets and average shareholders’ equity for the three months ended December 31, 2024 were 1.03% and 10.54%, respectively, compared to 0.85% and 9.31%, respectively, for the three months ended December 31, 2023.  Our efficiency ratio and tax-equivalent efficiency ratio(1) were 56.08% and 54.00%, respectively, for the three months ended December 31, 2024, compared to 53.30% and 50.86%, respectively, for the three months ended December 31, 2023, and 53.94% and 51.90%, respectively, for the three months ended September 30, 2024. 

    Net interest income for the three months ended December 31, 2024 was $53.7 million, a decrease of $0.8 million, or 1.4%, from the same period in 2023.  The decrease in net interest income was due to the decrease in the average yield of interest earning assets and increases in the average rate paid on and average balance of our interest bearing liabilities, partially offset by the increase in the average balance of interest earning assets.  Linked quarter, net interest income decreased $1.8 million, or 3.2%, compared to $55.5 million for the three months ended September 30, 2024, due to the decrease in the average yield of interest earning assets, partially offset by the decrease in the average rate paid on our interest bearing liabilities, the increase in the average balance of interest earning assets and the change in the mix of our interest bearing liabilities.

    Our net interest margin and tax-equivalent net interest margin(1) decreased to 2.70% and 2.83%, respectively, for the three months ended December 31, 2024, compared to 2.83% and 2.99%, respectively, for the same period in 2023.  Linked quarter, net interest margin and tax-equivalent net interest margin(1) decreased from 2.82% and 2.95%, respectively, for the three months ended September 30, 2024.

    Noninterest income was $12.3 million for the three months ended December 31, 2024, an increase of $9.8 million, or 391.0%, compared to $2.5 million for the same period in 2023. The increase was due to a decrease in net loss on sale of securities available for sale (“AFS”) and an increase in other noninterest income, partially offset by a decrease in bank owned life insurance (“BOLI”) income. The decrease in net loss on sale of securities AFS was due to a net loss of $10.4 million for the three months ended December 31, 2023, related to the strategic repositioning of the securities portfolio. On a linked quarter basis, noninterest income increased $4.1 million, or 50.3%, compared to the three months ended September 30, 2024.  The increase was primarily due to an increase in other noninterest income and a decrease in net loss on sale of securities AFS.  The increase in other noninterest income was primarily due to an increase in swap fee income for the three months ended December 31, 2024, and an impairment charge of $868,000 on the sale of approximately $10 million of AFS municipal securities and the unwind of the related fair value swaps realized during the three months ended September 30, 2024.

    Noninterest expense increased $3.0 million, or 8.5%, to $38.2 million for the three months ended December 31, 2024, compared to $35.2 million for the same period in 2023, due to increases in salaries and employee benefits, other noninterest expense, professional fees and software and data processing expense, partially offset by decreases in advertising, travel and entertainment expense.  On a linked quarter basis, noninterest expense increased by $1.8 million, or 5.0%, compared to the three months ended September 30, 2024, due to increases in salaries and employee benefits expense, other noninterest expense and professional fees.

    Income tax expense increased $2.5 million, or 111.2%, for the three months ended December 31, 2024, compared to the same period in 2023.  On a linked quarter basis, income tax expense increased $0.3 million, or 6.1%.  Our effective tax rate (“ETR”) increased to 17.6% for the three months ended December 31, 2024, compared to 11.3% for the three months ended December 31, 2023.  On a linked quarter basis, the ETR was 17.6% for both the three months ended September 30, 2024 and December 31, 2024.  The higher ETR for the three months ended December 31, 2024 compared to the same period in 2023, was primarily due to a decrease in net tax-exempt income as a percentage of pre-tax income.

    Operating Results for the Year Ended December 31, 2024

    Net income was $88.5 million for the year ended December 31, 2024, compared to $86.7 million for the same period in 2023, an increase of $1.8 million, or 2.1%.  Earnings per diluted common share were $2.91 for the year ended December 31, 2024, compared to $2.82 for the same period in 2023, an increase of 3.2%.  The increase in net income was primarily a result of the increase in noninterest income, decrease in provision for credit losses and the increase in net interest income, partially offset by the increases in noninterest expense and income tax expense.  Returns on average assets and average shareholders’ equity for the year ended December 31, 2024 were 1.06% and 11.03%, respectively, compared to 1.11% and 11.50%, respectively, for the year ended December 31, 2023.  Our efficiency ratio and tax-equivalent efficiency ratio(1) were 55.69% and 53.52%, respectively, for the year ended December 31, 2024, compared to 53.81% and 51.30%, respectively, for the year ended December 31, 2023. 

    Net interest income was $216.1 million for the year ended December 31, 2024, compared to $215.0 million for the same period in 2023, an increase of $1.1 million, or 0.5%, due to increases in the average balance and the average yield of interest earning assets, partially offset by increases in the average rate paid on and average balance of our interest bearing liabilities.

    Our net interest margin and tax-equivalent net interest margin(1) were 2.74% and 2.88%, respectively, for the year ended December 31, 2024, compared to 2.92% and 3.09%, respectively, for the same period in 2023.

    Noninterest income was $41.7 million for the year ended December 31, 2024, an increase of $5.9 million, or 16.5%, compared to $35.8 million for the same period in 2023.  The increase was primarily due to a decrease in net loss on sale of securities AFS and an increase in brokerage services income, partially offset by decreases in the net gain on sale of equity securities, BOLI income and deposit services income.

    Noninterest expense was $147.1 million for the year ended December 31, 2024, compared to $140.6 million for the same period in 2023, an increase of $6.6 million, or 4.7%.  The increase was primarily due to increases in salaries and employee benefits, software and data processing expense and other noninterest expense, partially offset by decreases in advertising, travel and entertainment expense and amortization of intangibles.

    Income tax expense increased $4.4 million, or 30.8%, for the year ended December 31, 2024, compared to the same period in 2023.  Our ETR was approximately 17.6% and 14.3% for the year ended December 31, 2024 and 2023, respectively.  The higher ETR for the year ended December 31, 2024, as compared to the same period in 2023, was primarily due to a decrease in net tax-exempt income as a percentage of pre-tax income.

    Balance Sheet Data

    At December 31, 2024, Southside had $8.52 billion in total assets, compared to $8.28 billion at December 31, 2023 and $8.36 billion at September 30, 2024.

    Loans at December 31, 2024 were $4.66 billion, an increase of $137.1 million, or 3.0%, compared to $4.52 billion at December 31, 2023.  Linked quarter, loans increased $83.5 million, or 1.8%, due to increases of $157.1 million in commercial real estate loans and $4.3 million in commercial loans. These increases were partially offset by decreases of $48.0 million in construction loans, $15.0 million in 1-4 family residential loans, $11.1 million in municipal loans and $3.8 million in loans to individuals.

    Securities at December 31, 2024 were $2.81 billion, an increase of $209.8 million, or 8.1%, compared to $2.60 billion at December 31, 2023.  Linked quarter, securities increased $116.3 million, or 4.3%, from $2.70 billion at September 30, 2024. 

    Deposits at December 31, 2024 were $6.65 billion, an increase of $104.6 million, or 1.6%, compared to $6.55 billion at December 31, 2023.  Linked quarter, deposits increased $218.5 million, or 3.4%, from $6.44 billion at September 30, 2024.  During the three months ended December 31, 2024, public fund deposits increased $156.8 million, or 14.6%, compared to September 30, 2024.

    At December 31, 2024, we had 178,662 total deposit accounts with an average balance of $33,000.  Our estimated uninsured deposits were 38.1% of total deposits as of December 31, 2024.  When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 19.5% as of December 31, 2024.  Our noninterest bearing deposits represent approximately 20.4% of total deposits. Linked quarter, our cost of interest bearing deposits decreased nine basis points from 3.01% in the prior quarter to 2.92%.  Linked quarter, our cost of total deposits decreased seven basis points from 2.38% in the prior quarter to 2.31%.

    Our cost of interest bearing deposits increased 64 basis points, from 2.34% for the year ended December 31, 2023, to 2.98% for the year ended December 31, 2024. Our cost of total deposits increased 59 basis points, from 1.77% for the year ended December 31, 2023, to 2.36% for the year ended December 31, 2024.

    Capital Resources and Liquidity

    Our capital ratios and contingent liquidity sources remain solid.  During the fourth quarter ended December 31, 2024, we did not purchase any common stock pursuant to our Stock Repurchase Plan.  Under this plan, repurchases of our outstanding common stock may be carried out in open market purchases, privately negotiated transactions or pursuant to any trading plan that might be adopted in accordance with Rule 10b5-1 of The Securities Exchange Act of 1934, as amended.  The Company has no obligation to repurchase any shares under the Stock Repurchase Plan and may modify, suspend or discontinue the plan at any time.  We have not purchased any common stock pursuant to the Stock Repurchase Plan subsequent to December 31, 2024. 

    As of December 31, 2024, our total available contingent liquidity, net of current outstanding borrowings, was $2.23 billion, consisting of FHLB advances, Federal Reserve Discount Window and correspondent bank lines of credit.

    Asset Quality

    Nonperforming assets at December 31, 2024 were $3.6 million, or 0.04% of total assets, a decrease of $0.4 million, or 10.3%, compared to $4.0 million, or 0.05% of total assets, at December 31, 2023.  Linked quarter, nonperforming assets decreased $4.1 million, or 53.1%, from $7.7 million at September 30, 2024 due to a $4.1 million decrease in nonaccrual loans primarily from the payoff of one commercial real estate loan. Classified loans totaled $48.0 million on December 31, 2024, compared to $42.0 million at September 30, 2024 and $19.2 million at December 31, 2023.

    The allowance for loan losses totaled $44.9 million, or 0.96% of total loans, at December 31, 2024, compared to $44.3 million, or 0.97% of total loans, at September 30, 2024.  The allowance for loan losses was $42.7 million, or 0.94% of total loans, at December 31, 2023.

    For the three months ended December 31, 2024, we recorded a provision for credit losses for loans of $1.6 million, compared to a provision of $2.2 million and $2.3 million for the three months ended December 31, 2023 and September 30, 2024, respectively. Net charge-offs were $1.0 million for the three months ended December 31, 2024, compared to net charge-offs of $1.3 million and $0.4 million for the three months ended December 31, 2023 and September 30, 2024, respectively. Net charge-offs were $1.9 million for the year ended December 31, 2024, compared to net charge-offs of $2.8 million for the year ended December 31, 2023.

    We recorded a reversal of provision for credit losses on off-balance-sheet credit exposures of $0.2 million for the three months ended December 31, 2024, compared to a provision for credit losses on off-balance-sheet credit exposures $0.1 million for both of the three-month periods ended December 31, 2023 and September 30, 2024.  We recorded a reversal of provision for credit losses for off-balance-sheet credit exposures of $0.8 million for the year ended December 31, 2024, compared to a provision for credit losses on off-balance-sheet credit exposures of $0.2 million for the year ended December 31, 2023.  The balance of the allowance for off-balance-sheet credit exposures was $3.1 million and $3.9 million at December 31, 2024 and 2023, respectively, and is included in other liabilities.

    Dividend

    Southside Bancshares, Inc. declared a fourth quarter cash dividend of $0.36 per share on November 7, 2024, which was paid on December 6, 2024, to all shareholders of record as of November 21, 2024.

    _______________

    (1)  Refer to “Non-GAAP Financial Measures” below and to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for more information and for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.

    Conference Call

    Southside’s management team will host a conference call to discuss its fourth quarter and year ended December 31, 2024 financial results on Wednesday, January 29, 2025 at 11:00 a.m. CST.  The conference call can be accessed by webcast, for listen-only mode, on the company website, https://investors.southside.com, under Events.

    Those interested in participating in the question and answer session, or others who prefer to call-in, can register at https://register.vevent.com/register/BI54b435198f6143e589b32994aed51233 to receive the dial-in number and unique code to access the conference call seamlessly. While not required, it is recommended that those wishing to participate, register 10 minutes prior to the conference call to ensure a more efficient registration process.

    For those unable to attend the live event, a webcast recording will be available on the company website, https://investors.southside.com, for at least 30 days, beginning approximately two hours following the conference call.

    Non-GAAP Financial Measures

    Our accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry.  However, certain non-GAAP measures are used by management to supplement the evaluation of our performance.  These include the following fully taxable-equivalent measures (“FTE”): (i) Net interest income (FTE), (ii) net interest margin (FTE), (iii) net interest spread (FTE), and (iv) efficiency ratio (FTE), which include the effects of taxable-equivalent adjustments using a federal income tax rate of 21% to increase tax-exempt interest income to a tax-equivalent basis.  Interest income earned on certain assets is completely or partially exempt from federal income tax.  As such, these tax-exempt instruments typically yield lower returns than taxable investments.

    Net interest income (FTE), net interest margin (FTE) and net interest spread (FTE).  Net interest income (FTE) is a non-GAAP measure that adjusts for the tax-favored status of net interest income from certain loans and investments and is not permitted under GAAP in the consolidated statements of income.  We believe that this measure is the preferred industry measurement of net interest income and that it enhances comparability of net interest income arising from taxable and tax-exempt sources.  The most directly comparable financial measure calculated in accordance with GAAP is our net interest income.  Net interest margin (FTE) is the ratio of net interest income (FTE) to average earning assets.  The most directly comparable financial measure calculated in accordance with GAAP is our net interest margin.  Net interest spread (FTE) is the difference in the average yield on average earning assets on a tax-equivalent basis and the average rate paid on average interest bearing liabilities.  The most directly comparable financial measure calculated in accordance with GAAP is our net interest spread.

    Efficiency ratio (FTE).  The efficiency ratio (FTE) is a non-GAAP measure that provides a measure of productivity in the banking industry.  This ratio is calculated to measure the cost of generating one dollar of revenue.  The ratio is designed to reflect the percentage of one dollar which must be expended to generate that dollar of revenue.  We calculate this ratio by dividing noninterest expense, excluding amortization expense on intangibles and certain nonrecurring expense by the sum of net interest income (FTE) and noninterest income, excluding net gain (loss) on sale of securities available for sale and certain nonrecurring impairments.  The most directly comparable financial measure calculated in accordance with GAAP is our efficiency ratio.

    These non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently.  Whenever we present a non-GAAP financial measure in an SEC filing, we are also required to present the most directly comparable financial measure calculated and presented in accordance with GAAP and reconcile the differences between the non-GAAP financial measure and such comparable GAAP measure.

    Management believes adjusting net interest income, net interest margin and net interest spread to a fully taxable-equivalent basis is a standard practice in the banking industry as these measures provide useful information to make peer comparisons.  Tax-equivalent adjustments are reflected in the respective earning asset categories as listed in the “Average Balances with Average Yields and Rates” tables.

    A reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.

    About Southside Bancshares, Inc.

    Southside Bancshares, Inc. is a bank holding company with approximately $8.52 billion in assets as of December 31, 2024, that owns 100% of Southside Bank.  Southside Bank currently has 53 branches in Texas and operates a network of 72 ATMs/ITMs.  

    To learn more about Southside Bancshares, Inc., please visit our investor relations website at https://investors.southside.com.  Our investor relations site provides a detailed overview of our activities, financial information and historical stock price data.  To receive email notification of company news, events and stock activity, please register on the website under Resources and Investor Email Alerts.  Questions or comments may be directed to Lindsey Bailes at (903) 630-7965, or lindsey.bailes@southside.com.

    Forward-Looking Statements

    Certain statements of other than historical fact that are contained in this press release and in other written materials, documents and oral statements issued by or on behalf of the Company may be considered to be “forward-looking statements” within the meaning of and subject to the safe harbor protections of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date.  These statements may include words such as “expect,” “estimate,” “project,” “anticipate,” “appear,” “believe,” “could,” “should,” “may,” “might,” “will,” “would,” “seek,” “intend,” “probability,” “risk,” “goal,” “target,” “objective,” “plans,” “potential,” and similar expressions.  Forward-looking statements are statements with respect to the Company’s beliefs, plans, expectations, objectives, goals, anticipations, assumptions, estimates, intentions and future performance and are subject to significant known and unknown risks and uncertainties, which could cause the Company’s actual results to differ materially from the results discussed in the forward-looking statements.  For example, benefits of the Share Repurchase Plan, trends in asset quality, capital, liquidity, the Company’s ability to sell nonperforming assets, expense reductions, planned operational efficiencies and earnings from growth and certain market risk disclosures, including the impact of interest rates and our expectations regarding rate increases, tax reform, inflation, the impacts related to or resulting from other economic factors are based upon information presently available to management and are dependent on choices about key model characteristics and assumptions and are subject to various limitations.  By their nature, certain of the market risk disclosures are only estimates and could be materially different from what actually occurs in the future.  Accordingly, our results could materially differ from those that have been estimated.  The most significant factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, interest rate fluctuations and general economic concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity in a rapidly changing and unpredictable market, labor shortages and changes in interest rates by the Federal Reserve.

    Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, under “Part I – Item 1. Forward Looking Information” and “Part I – Item 1A. Risk Factors” and in the Company’s other filings with the Securities and Exchange Commission.  The Company disclaims any obligation to update any factors or to announce publicly the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

    Southside Bancshares, Inc.
    Consolidated Financial Summary (Unaudited)
    (Dollars in thousands)
       
      As of
        2024       2023  
      Dec 31,   Sep 30,   Jun 30,   Mar 31,   Dec 31,
    ASSETS                  
    Cash and due from banks $        91,409     $      130,147     $      114,283     $        96,744     $      122,021  
    Interest earning deposits          281,945              333,825              272,469              307,257              391,719  
    Federal funds sold            52,807                22,325                65,244                65,372                46,770  
    Securities available for sale, at estimated fair value       1,533,894           1,408,437           1,405,944           1,405,221           1,296,294  
    Securities held to maturity, at net carrying value       1,279,234           1,288,403           1,305,975           1,306,898           1,307,053  
    Total securities       2,813,128           2,696,840           2,711,919           2,712,119           2,603,347  
    Federal Home Loan Bank stock, at cost            33,818                40,291                32,991                27,958                11,936  
    Loans held for sale              1,946                     768                  1,352                     756                10,894  
    Loans       4,661,597           4,578,048           4,589,365           4,577,368           4,524,510  
    Less: Allowance for loan losses          (44,884 )            (44,276 )            (42,407 )            (43,557 )            (42,674 )
    Net loans       4,616,713           4,533,772           4,546,958           4,533,811           4,481,836  
    Premises & equipment, net          141,648              138,811              138,489              139,491              138,950  
    Goodwill          201,116              201,116              201,116              201,116              201,116  
    Other intangible assets, net              1,754                  2,003                  2,281                  2,588                  2,925  
    Bank owned life insurance          138,313              137,489              136,903              136,604              136,330  
    Other assets          142,851              124,876              133,697              130,047              137,070  
    Total assets $   8,517,448     $   8,362,263     $   8,357,702     $   8,353,863     $   8,284,914  
                       
    LIABILITIES AND SHAREHOLDERS’ EQUITY                  
    Noninterest bearing deposits $   1,357,152     $   1,377,022     $   1,366,924     $   1,358,827     $   1,390,407  
    Interest bearing deposits       5,297,096           5,058,680           5,129,008           5,186,933           5,159,274  
    Total deposits       6,654,248           6,435,702           6,495,932           6,545,760           6,549,681  
    Other borrowings and Federal Home Loan Bank borrowings          808,352              865,856              763,700              770,151              722,468  
    Subordinated notes, net of unamortized debt
    issuance costs    		            92,042                92,006                91,970                93,913                93,877  
    Trust preferred subordinated debentures, net of unamortized debt issuance costs            60,274                60,273                60,272                60,271                60,270  
    Other liabilities            90,590              103,172              144,858                95,846                85,330  
              Total liabilities       7,705,506           7,557,009           7,556,732           7,565,941           7,511,626  
    Shareholders’ equity          811,942              805,254              800,970              787,922              773,288  
    Total liabilities and shareholders’ equity $   8,517,448     $   8,362,263     $   8,357,702     $   8,353,863     $   8,284,914  
    Southside Bancshares, Inc.
    Consolidated Financial Highlights (Unaudited)
    (Dollars and shares in thousands, except per share data)
       
      Three Months Ended
        2024       2023  
      Dec 31,   Sep 30,   Jun 30,   Mar 31,   Dec 31,
    Income Statement:                  
    Total interest and dividend income $    101,689     $ 105,703     $ 104,186     $ 102,758     $    98,939  
    Total interest expense          47,982          50,239          50,578           49,410            44,454  
    Net interest income          53,707          55,464          53,608           53,348            54,485  
    Provision for (reversal of) credit losses            1,384            2,389             (485 )                58              2,281  
    Net interest income after provision for (reversal of) credit losses          52,323          53,075          54,093           53,290            52,204  
    Noninterest income                  
    Deposit services            6,084            6,199            6,157             5,985              6,305  
    Net gain (loss) on sale of securities available for sale                 —          (1,929  )           (563 )              (18 )        (10,386 )
    Gain (loss) on sale of loans               138               115               220              (436 )               178  
    Trust fees            1,773            1,628            1,456             1,336              1,431  
    Bank owned life insurance               848               857            1,767                784              2,602  
    Brokerage services            1,054            1,068            1,081             1,014                 944  
    Other            2,384               233            1,439             1,059              1,427  
    Total noninterest income          12,281            8,171          11,557             9,724              2,501  
    Noninterest expense                  
    Salaries and employee benefits          22,960          22,233          21,984           23,113            21,152  
    Net occupancy            3,629            3,613            3,750             3,362              3,474  
    Advertising, travel & entertainment               884               734               795                950              1,127  
    ATM expense               378               412               368                325                 318  
    Professional fees            1,645            1,206            1,075             1,154              1,315  
    Software and data processing            2,931            2,951            2,860             2,856              2,644  
    Communications               320               423               410                449                 435  
    FDIC insurance               931               939               977                943                 892  
    Amortization of intangibles               249               278               307                337                 370  
    Other            4,232            3,543            3,239             3,392              3,456  
    Total noninterest expense          38,159          36,332          35,765           36,881            35,183  
    Income before income tax expense          26,445          24,914          29,885           26,133            19,522  
    Income tax expense            4,659            4,390            5,212             4,622              2,206  
    Net income $      21,786     $ 20,524     $ 24,673     $   21,511     $    17,316  
                       
    Common Share Data:      
    Weighted-average basic shares outstanding          30,343          30,286          30,280           30,262            30,235  
    Weighted-average diluted shares outstanding          30,459          30,370          30,312           30,305            30,276  
    Common shares outstanding end of period          30,379          30,308          30,261           30,284            30,249  
    Earnings per common share                  
    Basic $          0.72     $      0.68     $      0.81     $       0.71     $        0.57  
    Diluted              0.71              0.68              0.81               0.71                 0.57  
    Book value per common share            26.73            26.57            26.47             26.02              25.56  
    Tangible book value per common share            20.05            19.87            19.75             19.29              18.82  
    Cash dividends paid per common share              0.36              0.36              0.36               0.36                0.37  
                       
    Selected Performance Ratios:                  
    Return on average assets   1.03 %     0.98 %     1.19 %     1.03 %     0.85 %
    Return on average shareholders’ equity   10.54       10.13       12.46       11.02       9.31  
    Return on average tangible common equity (1)   14.12       13.69       16.90       15.07       13.10  
    Average yield on earning assets (FTE) (1)   5.24       5.51       5.45       5.38       5.30  
    Average rate on interest bearing liabilities   3.12       3.28       3.32       3.22       3.04  
    Net interest margin (FTE) (1)   2.83       2.95       2.87       2.86       2.99  
    Net interest spread (FTE) (1)   2.12       2.23       2.13       2.16       2.26  
    Average earning assets to average interest bearing liabilities   129.55       128.51       128.62       127.71       131.65  
    Noninterest expense to average total assets   1.80       1.73       1.72       1.77       1.73  
    Efficiency ratio (FTE) (1)   54.00       51.90       52.71       55.54       50.86  
    (1) Refer to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
    Southside Bancshares, Inc.
    Consolidated Financial Highlights (Unaudited)
    (Dollars in thousands)
       
      Three Months Ended
        2024       2023  
      Dec 31,   Sep 30,   Jun 30,   Mar 31,   Dec 31,
    Nonperforming Assets: $      3,589     $         7,656     $         6,918     $         7,979     $         4,001  
    Nonaccrual loans          3,185                 7,254                 6,110                 7,709                 3,889  
    Accruing loans past due more than 90 days               —                      —                      —                      —                      —  
    Restructured loans                 2                      —                    145                    151                      13  
    Other real estate owned             388                    388                    648                    119                      99  
    Repossessed assets               14                      14                      15                      —                      —  
                       
    Asset Quality Ratios:                  
    Ratio of nonaccruing loans to:                  
    Total loans   0.07 %     0.16 %     0.13 %     0.17 %     0.09 %
    Ratio of nonperforming assets to:                  
    Total assets   0.04       0.09       0.08       0.10       0.05  
    Total loans   0.08       0.17       0.15       0.17       0.09  
    Total loans and OREO   0.08       0.17       0.15       0.17       0.09  
    Ratio of allowance for loan losses to:                  
    Nonaccruing loans   1,409.23       610.37       694.06       565.01       1,097.30  
    Nonperforming assets   1,250.60       578.32       613.00       545.90       1,066.58  
    Total loans   0.96       0.97       0.92       0.95       0.94  
    Net charge-offs (recoveries) to average loans outstanding   0.08       0.04       0.02       0.03       0.11  
                       
    Capital Ratios:                  
    Shareholders’ equity to total assets   9.53       9.63       9.58       9.43       9.33  
    Common equity tier 1 capital   13.04       13.07       12.72       12.43       12.28  
    Tier 1 risk-based capital   14.07       14.12       13.76       13.47       13.32  
    Total risk-based capital   16.49       16.59       16.16       15.92       15.73  
    Tier 1 leverage capital   9.67       9.61       9.40       9.22       9.39  
    Period end tangible equity to period end tangible assets (1)   7.33       7.38       7.33       7.17       7.04  
    Average shareholders’ equity to average total assets   9.76       9.67       9.52       9.35       9.13  
    (1) Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
    Southside Bancshares, Inc.
    Consolidated Financial Highlights (Unaudited)
    (Dollars in thousands)
       
      Three Months Ended
        2024       2023  
    Loan Portfolio Composition Dec 31,   Sep 30,   Jun 30,   Mar 31,   Dec 31,
    Real Estate Loans:                  
    Construction $         537,827     $         585,817     $         546,040     $         599,464     $        789,744  
    1-4 Family Residential             740,396                 755,406                 738,037                 720,508                696,738  
    Commercial          2,579,735              2,422,612              2,472,771              2,413,345             2,168,451  
    Commercial Loans             363,167                 358,854                 359,807                 358,053                366,893  
    Municipal Loans             390,968                 402,041                 416,986                 427,225                441,168  
    Loans to Individuals               49,504                   53,318                   55,724                   58,773                  61,516  
    Total Loans $      4,661,597     $      4,578,048     $      4,589,365     $      4,577,368     $     4,524,510  
                       
    Summary of Changes in Allowances:                  
    Allowance for Loan Losses                  
    Balance at beginning of period $           44,276     $           42,407     $           43,557     $           42,674     $          41,760  
    Loans charged-off               (1,232 )                    (773 )                    (721 )                    (634 )                (1,572 )
    Recoveries of loans charged-off                    277                        365                        444                        347                       284  
      Net loans (charged-off) recovered                  (955 )                    (408 )                    (277 )                    (287 )                (1,288 )
    Provision for (reversal of) loan losses                 1,563                     2,277                      (873 )                   1,170                    2,202  
    Balance at end of period $           44,884     $           44,276     $           42,407     $           43,557     $          42,674  
                       
    Allowance for Off-Balance-Sheet Credit Exposures                  
    Balance at beginning of period $             3,320     $             3,208     $             2,820     $             3,932     $            3,853  
    Provision for (reversal of) off-balance-sheet credit exposures                  (179 )                      112                        388                   (1,112 )                       79  
    Balance at end of period $             3,141     $             3,320     $             3,208     $             2,820     $            3,932  
    Total Allowance for Credit Losses $           48,025     $           47,596     $           45,615     $           46,377     $          46,606  
    Southside Bancshares, Inc.
    Consolidated Financial Highlights (Unaudited)
    (Dollars in thousands)
       
      Year ended
      December 31,
        2024       2023  
    Income Statement:      
    Total interest and dividend income $        414,336     $        359,741  
    Total interest expense            198,209                144,714  
    Net interest income            216,127                215,027  
    Provision for (reversal of) credit losses                3,346                    9,154  
    Net interest income after provision for (reversal of) credit losses            212,781                205,873  
    Noninterest income      
    Deposit services              24,425                  25,497  
    Net gain (loss) on sale of securities available for sale              (2,510 )              (15,976 )
    Net gain on sale of equity securities                     —                    5,058  
    Gain (loss) on sale of loans                     37                       563  
    Trust fees                6,193                    5,910  
    Bank owned life insurance                4,256                    5,823  
    Brokerage services                4,217                    3,305  
    Other                5,115                    5,654  
    Total noninterest income              41,733                  35,834  
    Noninterest expense      
    Salaries and employee benefits              90,290                  85,625  
    Net occupancy              14,354                  14,694  
    Advertising, travel & entertainment                3,363                    4,093  
    ATM expense                1,483                    1,351  
    Professional fees                5,080                    5,351  
    Software and data processing              11,598                    9,395  
    Communications                1,602                    1,469  
    FDIC insurance                3,790                    3,558  
    Amortization of intangibles                1,171                    1,697  
    Other              14,406                  13,345  
    Total noninterest expense            147,137                140,578  
    Income before income tax expense            107,377                101,129  
    Income tax expense              18,883                  14,437  
    Net income $          88,494     $          86,692  
    Common Share Data:      
    Weighted-average basic shares outstanding              30,293                  30,704  
    Weighted-average diluted shares outstanding              30,369                  30,759  
    Common shares outstanding end of period              30,379                  30,249  
    Earnings per common share      
    Basic $              2.92     $              2.82  
    Diluted                  2.91                      2.82  
    Book value per common share                26.73                    25.56  
    Tangible book value per common share                20.05                    18.82  
    Cash dividends paid per common share                  1.44                      1.42  
           
    Selected Performance Ratios:      
    Return on average assets   1.06 %     1.11 %
    Return on average shareholders’ equity   11.03       11.50  
    Return on average tangible common equity (1)   14.92       16.03  
    Average yield on earning assets (FTE) (1)   5.40       5.06  
    Average rate on interest bearing liabilities   3.24       2.64  
    Net interest margin (FTE) (1)   2.88       3.09  
    Net interest spread (FTE) (1)   2.16       2.42  
    Average earning assets to average interest bearing liabilities   128.60       134.07  
    Noninterest expense to average total assets   1.76       1.80  
    Efficiency ratio (FTE) (1)   53.52       51.30  
    (1) Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
    Southside Bancshares, Inc.
    Consolidated Financial Highlights (Unaudited)
    (Dollars in thousands)
       
      Year ended
      December 31,
        2024       2023  
    Nonperforming Assets: $           3,589     $           4,001  
    Nonaccrual loans               3,185                   3,889  
    Accruing loans past due more than 90 days                    —                        —  
    Restructured loans                      2                        13  
    Other real estate owned                  388                        99  
    Repossessed assets                    14                        —     
           
    Asset Quality Ratios:      
    Ratio of nonaccruing loans to:      
    Total loans   0.07 %     0.09 %
    Ratio of nonperforming assets to:      
    Total assets   0.04       0.05  
    Total loans   0.08       0.09  
    Total loans and OREO   0.08       0.09  
    Ratio of allowance for loan losses to:      
    Nonaccruing loans   1,409.23       1,097.30  
    Nonperforming assets   1,250.60       1,066.58  
    Total loans   0.96       0.94  
    Net charge-offs (recoveries) to average loans outstanding   0.04       0.06  
           
    Capital Ratios:      
    Shareholders’ equity to total assets   9.53       9.33  
    Common equity tier 1 capital   13.04       12.28  
    Tier 1 risk-based capital   14.07       13.32  
    Total risk-based capital   16.49       15.73  
    Tier 1 leverage capital   9.67       9.39  
    Period end tangible equity to period end tangible assets (1)   7.33       7.04  
    Average shareholders’ equity to average total assets   9.58       9.63  
    (1) Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
      Year ended
      December 31,
    Loan Portfolio Composition   2024       2023  
    Real Estate Loans:      
    Construction $        537,827     $        789,744  
    1-4 Family Residential            740,396                696,738  
    Commercial         2,579,735             2,168,451  
    Commercial Loans            363,167                366,893  
    Municipal Loans            390,968                441,168  
    Loans to Individuals              49,504                  61,516  
    Total Loans $     4,661,597     $     4,524,510  
           
    Summary of Changes in Allowances:      
    Allowance for Loan Losses      
    Balance at beginning of period $          42,674     $          36,515  
    Loans charged-off               (3,360 )                (4,204 )
    Recoveries of loans charged-off                1,433                    1,454  
      Net loans (charged-off) recovered               (1,927 )                (2,750 )
    Provision for (reversal of) loan losses                4,137                    8,909  
    Balance at end of period $          44,884     $          42,674  
           
    Allowance for Off-Balance-Sheet Credit Exposures      
    Balance at beginning of period $            3,932     $            3,687  
    Provision for (reversal of) off-balance-sheet credit exposures                  (791 )                     245  
    Balance at end of period $            3,141     $            3,932  
    Total Allowance for Credit Losses $          48,025     $          46,606  

    The tables that follow show average earning assets and interest bearing liabilities together with the average yield on the earning assets and the average rate of the interest bearing liabilities for the periods presented.  The interest and related yields presented are on a fully taxable-equivalent basis and are therefore non-GAAP measures.  See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliation” for more information.

    Southside Bancshares, Inc.
    Average Balances and Average Yields and Rates (Annualized) (Unaudited)
    (Dollars in thousands)
     
      Three Months Ended
      December 31, 2024   September 30, 2024
      Average Balance   Interest   Average Yield/Rate   Average Balance   Interest   Average Yield/Rate
    ASSETS                      
    Loans (1) $   4,604,175     $        70,155   6.06 %   $   4,613,028     $        72,493   6.25 %
    Loans held for sale             1,562                       23   5.86 %                   871                      11   5.02 %
    Securities:                      
    Taxable investment securities (2)          784,321                  6,949   3.52 %            791,914                 7,150   3.59 %
    Tax-exempt investment securities (2)       1,138,271                10,793   3.77 %         1,174,445                11,825   4.01 %
    Mortgage-backed and related securities (2)       1,031,187                12,043   4.65 %            886,325                11,976   5.38 %
    Total securities       2,953,779                29,785   4.01 %         2,852,684                30,951   4.32 %
    Federal Home Loan Bank stock, at cost, and equity investments            37,078                     591   6.34 %              41,159                    582   5.63 %
    Interest earning deposits          273,656                  3,160   4.59 %            281,313                 3,798   5.37 %
    Federal funds sold            43,121                     508   4.69 %              33,971                    488   5.71 %
    Total earning assets       7,913,371              104,222   5.24 %         7,823,026              108,323   5.51 %
    Cash and due from banks          102,914                      100,578          
    Accrued interest and other assets          454,387                      455,091          
    Less:  Allowance for loan losses          (44,418 )                     (42,581 )        
    Total assets $   8,426,254             $   8,336,114          
    LIABILITIES AND SHAREHOLDERS’ EQUITY                      
    Savings accounts $      594,196                  1,456   0.97 %   $      598,116                 1,490   0.99 %
    Certificates of deposit       1,187,800                13,537   4.53 %         1,087,613                12,647   4.63 %
    Interest bearing demand accounts       3,459,122                23,468   2.70 %         3,409,911                24,395   2.85 %
    Total interest bearing deposits       5,241,118                38,461   2.92 %         5,095,640                38,532   3.01 %
    Federal Home Loan Bank borrowings          572,993                  5,557   3.86 %            618,708                 6,488   4.17 %
    Subordinated notes, net of unamortized debt issuance costs            92,024                     945   4.09 %              91,988                    937   4.05 %
    Trust preferred subordinated debentures, net of unamortized debt issuance costs            60,274                  1,095   7.23 %              60,273                 1,180   7.79 %
    Repurchase agreements            80,891                     782   3.85 %              83,297                    899   4.29 %
    Other borrowings            61,196                  1,142   7.42 %            137,482                 2,203   6.37 %
    Total interest bearing liabilities       6,108,496                47,982   3.12 %         6,087,388                50,239   3.28 %
    Noninterest bearing deposits       1,383,204                   1,344,165          
    Accrued expenses and other liabilities          112,320                        98,331          
    Total liabilities       7,604,020                   7,529,884          
    Shareholders’ equity          822,234                      806,230          
    Total liabilities and shareholders’ equity $   8,426,254             $   8,336,114          
    Net interest income (FTE)     $        56,240           $        58,084    
    Net interest margin (FTE)         2.83 %           2.95 %
    Net interest spread (FTE)         2.12 %           2.23 %
    1. Interest on loans includes net fees on loans that are not material in amount.
    2. For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.

    Note:  As of December 31, 2024 and September 30, 2024, loans totaling $3.2 million and $7.3 million, respectively, were on nonaccrual status.  Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.

    Southside Bancshares, Inc.
    Average Balances and Average Yields and Rates (Annualized) (Unaudited)
    (Dollars in thousands)
     
      Three Months Ended
      June 30, 2024   March 31, 2024
      Average
    Balance    		   Interest   Average Yield/
    Rate    		   Average
    Balance    		   Interest   Average Yield/
    Rate
    ASSETS                      
    Loans (1) $   4,595,980     $        70,293   6.15 %   $   4,559,602     $        68,849   6.07 %
    Loans held for sale             1,489                       24   6.48 %                8,834                      18   0.82 %
    Securities:                      
    Taxable investment securities (2)          783,856                  7,009   3.60 %            780,423                 6,967   3.59 %
    Tax-exempt investment securities (2)       1,254,097                12,761   4.09 %         1,285,922                13,168   4.12 %
    Mortgage-backed and related securities (2)          830,504                11,084   5.37 %            764,713                10,119   5.32 %
    Total securities       2,868,457                30,854   4.33 %         2,831,058                30,254   4.30 %
    Federal Home Loan Bank stock, at cost, and equity investments            40,467                     573   5.69 %              40,063                    333   3.34 %
    Interest earning deposits          300,047                  4,105   5.50 %            380,181                 5,202   5.50 %
    Federal funds sold            75,479                  1,021   5.44 %              62,599                    838   5.38 %
    Total earning assets       7,881,919              106,870   5.45 %         7,882,337              105,494   5.38 %
    Cash and due from banks          110,102                      114,379          
    Accrued interest and other assets          424,323                      441,783          
    Less:  Allowance for loan losses          (43,738 )                     (42,973 )        
    Total assets $   8,372,606             $   8,395,526          
    LIABILITIES AND SHAREHOLDERS’ EQUITY                      
    Savings accounts $      604,753                  1,454   0.97 %   $      604,529                 1,424   0.95 %
    Certificates of deposit       1,020,099                11,630   4.59 %            941,947                10,341   4.42 %
    Interest bearing demand accounts       3,513,068                25,382   2.91 %         3,634,936                26,433   2.92 %
    Total interest bearing deposits       5,137,920                38,466   3.01 %         5,181,412                38,198   2.97 %
    Federal Home Loan Bank borrowings          606,851                  6,455   4.28 %            607,033                 5,950   3.94 %
    Subordinated notes, net of unamortized debt issuance costs            92,017                     936   4.09 %              93,895                    956   4.10 %
    Trust preferred subordinated debentures, net of unamortized debt issuance costs            60,271                  1,171   7.81 %              60,270                 1,175   7.84 %
    Repurchase agreements            88,007                     955   4.36 %              92,177                    967   4.22 %
    Other borrowings          143,169                  2,595   7.29 %            137,287                 2,164   6.34 %
    Total interest bearing liabilities       6,128,235                50,578   3.32 %         6,172,074                49,410   3.22 %
    Noninterest bearing deposits       1,346,274                   1,338,384          
    Accrued expenses and other liabilities          101,399                      100,014          
    Total liabilities       7,575,908                   7,610,472          
    Shareholders’ equity          796,698                      785,054          
    Total liabilities and shareholders’ equity $   8,372,606             $   8,395,526          
    Net interest income (FTE)     $        56,292           $        56,084    
    Net interest margin (FTE)         2.87 %           2.86 %
    Net interest spread (FTE)         2.13 %           2.16 %
    1. Interest on loans includes net fees on loans that are not material in amount.
    2. For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.

    Note:  As of June 30, 2024 and March 31, 2024, loans totaling $6.1 million and $7.7 million, respectively, were on nonaccrual status.  Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.

    Southside Bancshares, Inc.
    Average Balances and Average Yields and Rates (Annualized) (Unaudited)
    (Dollars in thousands)
     
      Three Months Ended
      December 31, 2023
      Average
    Balance    		   Interest   Average Yield/
    Rate
    ASSETS          
    Loans (1) $   4,473,618     $        67,886   6.02 %
    Loans held for sale             1,858                       27   5.77 %
    Securities:          
    Taxable investment securities (2)          852,023                  7,970   3.71 %
    Tax-exempt investment securities (2)       1,456,187                15,688   4.27 %
    Mortgage-backed and related securities (2)          581,548                  6,865   4.68 %
    Total securities       2,889,758                30,523   4.19 %
    Federal Home Loan Bank stock, at cost, and equity investments            24,674                     296   4.76 %
    Interest earning deposits          150,763                  2,054   5.41 %
    Federal funds sold            93,149                  1,286   5.48 %
    Total earning assets       7,633,820              102,072   5.30 %
    Cash and due from banks          110,380          
    Accrued interest and other assets          374,120          
    Less:  Allowance for loan losses          (41,822 )        
    Total assets $   8,076,498          
    LIABILITIES AND SHAREHOLDERS’ EQUITY          
    Savings accounts $      610,453                  1,432   0.93 %
    Certificates of deposit          910,759                  9,691   4.22 %
    Interest bearing demand accounts       3,469,120                24,498   2.80 %
    Total interest bearing deposits       4,990,332                35,621   2.83 %
    Federal Home Loan Bank borrowings          262,709                  1,430   2.16 %
    Subordinated notes, net of unamortized debt issuance costs            93,859                     965   4.08 %
    Trust preferred subordinated debentures, net of unamortized debt issuance costs            60,269                  1,195   7.87 %
    Repurchase agreements            96,622                  1,008   4.14 %
    Other borrowings          294,683                  4,235   5.70 %
    Total interest bearing liabilities       5,798,474                44,454   3.04 %
    Noninterest bearing deposits       1,424,961          
    Accrued expenses and other liabilities          115,388          
    Total liabilities       7,338,823          
    Shareholders’ equity          737,675          
    Total liabilities and shareholders’ equity $   8,076,498          
    Net interest income (FTE)     $        57,618    
    Net interest margin (FTE)         2.99 %
    Net interest spread (FTE)         2.26 %
    1. Interest on loans includes net fees on loans that are not material in amount.
    2. For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.

    Note:  As of December 31, 2023, loans totaling $3.9 million were on nonaccrual status.  Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.

    Southside Bancshares, Inc.
    Average Balances and Average Yields and Rates (Unaudited)
    (Dollars in thousands)
     
      Year ended
      December 31, 2024   December 31, 2023
      Average
    Balance    		   Interest   Average Yield/
    Rate    		   Average
    Balance    		   Interest   Average Yield/
    Rate
    ASSETS                      
    Loans (1) $ 4,593,280     $    281,790   6.13 %   $ 4,300,138     $    247,431   5.75 %
    Loans held for sale            3,179                     76   2.39 %              1,681                     96   5.71 %
    Securities:                      
    Taxable investment securities (2)        785,145              28,075   3.58 %          845,907              31,186   3.69 %
    Tax-exempt investment securities (2)     1,212,844              48,547   4.00 %       1,554,519              64,568   4.15 %
    Mortgage-backed and related securities (2)        878,623              45,222   5.15 %          470,692              19,450   4.13 %
    Total securities     2,876,612            121,844   4.24 %       2,871,118            115,204   4.01 %
    Federal Home Loan Bank stock, at cost, and equity investments          39,688                2,079   5.24 %            24,971                1,185   4.75 %
    Interest earning deposits        308,628              16,265   5.27 %            83,343                4,364   5.24 %
    Federal funds sold          53,709                2,855   5.32 %            79,948                4,124   5.16 %
    Total earning assets     7,875,096            424,909   5.40 %       7,361,199            372,404   5.06 %
    Cash and due from banks        106,965                    107,018          
    Accrued interest and other assets        443,733                    397,860          
    Less:  Allowance for loan losses         (43,428 )                   (37,890 )        
    Total assets $ 8,382,366             $ 7,828,187          
    LIABILITIES AND SHAREHOLDERS’ EQUITY                      
    Savings accounts $    600,375                5,824   0.97 %   $    636,603                5,633   0.88 %
    Certificates of deposit     1,059,793              48,155   4.54 %          862,211              30,906   3.58 %
    Interest bearing demand accounts     3,503,878              99,678   2.84 %       3,122,319              71,618   2.29 %
    Total interest bearing deposits     5,164,046            153,657   2.98 %       4,621,133            108,157   2.34 %
    Federal Home Loan Bank borrowings        601,366              24,450   4.07 %          276,584                6,777   2.45 %
    Subordinated notes, net of unamortized debt issuance costs          92,478                3,774   4.08 %            96,024                3,920   4.08 %
    Trust preferred subordinated debentures, net of unamortized debt issuance costs          60,272                4,621   7.67 %            60,267                4,504   7.47 %
    Repurchase agreements          86,071                3,603   4.19 %            91,132                3,431   3.76 %
    Other borrowings        119,672                8,104   6.77 %          345,544              17,925   5.19 %
    Total interest bearing liabilities     6,123,905            198,209   3.24 %       5,490,684            144,714   2.64 %
    Noninterest bearing deposits     1,353,065                 1,485,896          
    Accrued expenses and other liabilities        102,778                      97,509          
    Total liabilities     7,579,748                 7,074,089          
    Shareholders’ equity        802,618                    754,098          
    Total liabilities and shareholders’ equity $ 8,382,366             $ 7,828,187          
    Net interest income (FTE)     $    226,700           $    227,690    
    Net interest margin (FTE)         2.88 %           3.09 %
    Net interest spread (FTE)         2.16 %           2.42 %
    1. Interest on loans includes net fees on loans that are not material in amount.
    2. For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.

    Note:  As of December 31, 2024 and 2023, loans totaling $3.2 million and $3.9 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.

    The following tables set forth the reconciliation of return on average common equity to return on average tangible common equity, book value per share to tangible book value per share, net interest income to net interest income adjusted to a fully taxable-equivalent basis assuming a 21% marginal tax rate for interest earned on tax-exempt assets such as municipal loans and investment securities, along with the calculation of total revenue, adjusted noninterest expense, efficiency ratio (FTE), net interest margin (FTE) and net interest spread (FTE) for the applicable periods presented.

    Southside Bancshares, Inc.
    Non-GAAP Reconciliation (Unaudited)
    (Dollars and shares in thousands, except per share data)
     
        Three Months Ended   Year ended
          2024       2023       2024       2023  
        Dec 31,   Sep 30,   Jun 30,   Mar 31,   Dec 31,   Dec 31,   Dec 31,
    Reconciliation of return on average common
    equity to return on average tangible common
    equity:    		                            
    Net income   $     21,786     $     20,524     $     24,673     $     21,511     $     17,316     $     88,494     $     86,692  
    After-tax amortization expense               196                 220                 243                 266                 292                 925              1,341  
    Adjusted net income available to common shareholders   $     21,982     $     20,744     $     24,916     $     21,777     $     17,608     $     89,419     $     88,033  
                                 
    Average shareholders’ equity   $   822,234     $   806,230     $   796,698     $   785,054     $   737,675     $   802,618     $   754,098  
    Less: Average intangibles for the period       (203,020 )       (203,288 )       (203,581 )       (203,910 )       (204,267 )       (203,448 )       (204,887 )
       Average tangible shareholders’ equity   $   619,214     $   602,942     $   593,117     $   581,144     $   533,408     $   599,170     $   549,211  
                                 
    Return on average tangible common equity     14.12 %     13.69 %     16.90 %     15.07 %     13.10 %     14.92 %     16.03 %
                                 
    Reconciliation of book value per share to tangible book value per share:                            
    Common equity at end of period   $   811,942     $   805,254     $   800,970     $   787,922     $   773,288     $   811,942     $   773,288  
    Less: Intangible assets at end of period       (202,870 )       (203,119 )       (203,397 )       (203,704 )       (204,041 )       (202,870 )       (204,041 )
    Tangible common shareholders’ equity at end of period   $   609,072     $   602,135     $   597,573     $   584,218     $   569,247     $   609,072     $   569,247  
                                 
    Total assets at end of period   $ 8,517,448     $ 8,362,263     $ 8,357,702     $ 8,353,863     $ 8,284,914     $ 8,517,448     $ 8,284,914  
    Less: Intangible assets at end of period       (202,870 )       (203,119 )       (203,397 )       (203,704 )       (204,041 )       (202,870 )       (204,041 )
    Tangible assets at end of period   $ 8,314,578     $ 8,159,144     $ 8,154,305     $ 8,150,159     $ 8,080,873     $ 8,314,578     $ 8,080,873  
                                 
    Period end tangible equity to period end tangible assets     7.33 %     7.38 %     7.33 %     7.17 %     7.04 %     7.33 %     7.04 %
                                 
    Common shares outstanding end of period           30,379            30,308             30,261            30,284             30,249             30,379             30,249  
    Tangible book value per common share   $      20.05     $      19.87     $      19.75     $      19.29     $      18.82     $      20.05     $      18.82  
                                 
    Reconciliation of efficiency ratio to efficiency ratio (FTE), net interest margin to net interest margin (FTE) and net interest spread to net interest spread (FTE):                            
    Net interest income (GAAP)   $     53,707     $     55,464     $     53,608     $     53,348     $     54,485     $   216,127     $   215,027  
    Tax-equivalent adjustments:                            
    Loans               598                 608                 633                 656                 680              2,495              2,724  
    Tax-exempt investment securities            1,935              2,012              2,051              2,080              2,453              8,078              9,939  
    Net interest income (FTE) (1)           56,240             58,084             56,292             56,084             57,618           226,700           227,690  
    Noninterest income           12,281              8,171             11,557              9,724              2,501             41,733             35,834  
    Nonrecurring income (2)               (25 )            2,797                (576 )                 18              8,376              2,214              7,370  
    Total revenue   $     68,496     $     69,052     $     67,273     $     65,826     $     68,495     $   270,647     $   270,894  
                                 
    Noninterest expense   $     38,159     $     36,332     $     35,765     $     36,881     $     35,183     $   147,137     $   140,578  
    Pre-tax amortization expense              (249 )              (278 )              (307 )              (337  )              (370 )           (1,171 )           (1,697 )
    Nonrecurring expense (3)              (919 )              (219 )                   2                   17                   22             (1,119 )                 78  
    Adjusted noninterest expense   $     36,991     $     35,835     $     35,460     $     36,561     $     34,835     $   144,847     $   138,959  
                                 
    Efficiency ratio     56.08 %     53.94 %     54.90 %     57.95 %     53.30 %     55.69 %     53.81 %
    Efficiency ratio (FTE) (1)     54.00 %     51.90 %     52.71 %     55.54 %     50.86 %     53.52 %     51.30 %
                                 
    Average earning assets   $ 7,913,371     $ 7,823,026     $ 7,881,919     $ 7,882,337     $ 7,633,820     $ 7,875,096     $ 7,361,199  
                                 
    Net interest margin     2.70 %     2.82 %     2.74 %     2.72 %     2.83 %     2.74 %     2.92 %
    Net interest margin (FTE) (1)     2.83 %     2.95 %     2.87 %     2.86 %     2.99 %     2.88 %     3.09 %
                                 
    Net interest spread     1.99 %     2.10 %     2.00 %     2.02 %     2.10 %     2.02 %     2.25 %
    Net interest spread (FTE) (1)     2.12 %     2.23 %     2.13 %     2.16 %     2.26 %     2.16 %     2.42 %
    1. These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures.
    2. These adjustments may include net gain or loss on sale of securities available for sale, net gain on sale of equity securities, BOLI income related to death benefits realized and other investment income or loss in the periods where applicable.
    3. These adjustments may include foreclosure expenses and branch closure expenses, in the periods where applicable.

    The MIL Network –

  • MIL-OSI Economics: Private Placement of Non-Convertible Debentures (NCDs) with maturity period of more than one year by HFCs – Review of guidelines

    Source: Reserve Bank of India

    RBI/2024-25/107
    DOR.FIN.REC.No.58/03.10.136/2024-25

    January 29, 2025

    All Housing Finance Companies (HFCs)

    Dear Sir/ Madam,

    Private Placement of Non-Convertible Debentures (NCDs) with maturity period of more than one year by HFCs – Review of guidelines

    Please refer to Chapter XI of Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 wherein guidelines on private placement of NCDs by HFCs have been prescribed.

    2. On a review, it has been decided that the Guidelines on Private Placement of NCDs (with maturity more than one year) by NBFCs, as contained in para 58 of the Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023 (as amended from time to time) shall be applicable, mutatis-mutandis, to HFCs. Accordingly, the existing guidelines under Chapter XI of Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 stand repealed. The revised guidelines shall be applicable to all fresh private placements of NCDs (with maturity more than one year) by HFCs from the date of this circular.

    3. The Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 is being modified as detailed in Annex.

    Yours faithfully,

    (J.P. Sharma)
    Chief General Manager

    Annex to circular no.DOR.FIN.REC.No.58/03.10.136/2024-25 dated January 29, 2025

    Annex

    New paragraph

    56A. The instructions regarding “Raising Money through Private Placement by NBFCs” as contained in para 58 of the Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023 (as amended from time to time) shall be applicable, mutatis-mutandis, to HFCs.

    Deleted Paragraphs

    Paragraphs 57 to 68A under Chapter XI of Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 stand deleted.

    MIL OSI Economics –

  • MIL-OSI Africa: Africa Energy Summit, leaders commit to energy transformation with more than $50billion backing from global partners

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

    DAR ES SALAAM, Tanzania, January 29, 2025/APO Group/ —

    Thirty African Heads of State and government today committed to concrete reforms and actions to expand access to reliable, affordable, and sustainable electricity to power economic growth, improve quality of life, and drive job creation across the continent. The leaders pledged their commitment in a declaration during the two-day Mission 300 Africa Energy Summit in the Tanzanian commercial capital, Dar es Salaam. Mission 300 partners pledged more than $50 billion in support of increasing energy access across Africa.

    The Dar es Salaam Energy Declaration represents a key milestone in addressing the energy gap in Africa, where more than 600 million people currently live without electricity. The commitments in the Declaration are a critical piece of the Mission 300 initiative, which unites governments, development banks, partners, philanthropies, and the private sector to connect 300 million Africans to electricity by 2030. The Declaration will now be submitted to the African Union Summit in February for adoption.

    By addressing the fundamental challenge of energy access, Mission 300 serves as the cornerstone of the jobs agenda for Africa’s growing youth population and the foundation for future development.

    Twelve countries—Chad, Côte d’Ivoire, Democratic Republic of Congo, Liberia, Madagascar, Malawi, Mauritania, Niger, Nigeria, Senegal, Tanzania, and Zambia—presented detailed National Energy Compacts that set targets to scale up electricity access, increase the use of renewable energy and attract additional private capital. These country-specific plans are time-bound, rooted in data, endorsed at the highest level and focus on affordable power generation, expanding connections, and regional integration. They aim to boost utility efficiency, attract private investment, and expand clean cooking solutions. Deploying satellite and electronic mapping technologies, these compacts identify the most cost-effective solutions to bring electricity to underserved areas.

    “Tanzania is honored to have hosted such a monumental summit to discuss how, as leaders, we will be able to deliver on our promise to our citizens to provide power and clean cooking solutions that will transform lives and economies,” said H.E. Dr. Samia Suluhu Hassan, President of the United Republic of Tanzania.

    Implementing the National Energy Compacts will require political will, long-term vision and the full support from Mission 300 partners. Governments are paving the way through comprehensive reforms, complemented by increased concessional financing and strategic partnerships with philanthropies and development banks to catalyze increased private sector investment.

    Dr. Akinwumi A. Adesina, President of the African Development Bank Group, emphasized the need for decisive action to accelerate electrification across the continent. “Critical reforms will be needed to expand the share of renewables, improve utility performance utilities, ensure transparency in licensing and power purchase agreements, and establish predictable tariff regimes that reflect production costs. Our collective effort is to support you, heads of state and government, in developing and implementing clear, country-led national energy compacts to deliver on your visions for electricity in your respective countries.”

    “Access to electricity is a fundamental human right. Without it, countries and people cannot thrive,” said Ajay Banga, President of the World Bank Group. “Our mission to provide electricity to half of the 600 million people in Africa without access is a critical first step. To succeed, we must embrace a simple truth: no one can do it alone. Governments, businesses, philanthropies, and development banks each have a role—and only through collaboration can we achieve our goal.”

    During the summit, partners announced a series of commitments:

    • African Development Bank Group and the World Bank Group plan to allocate $48 billion in financing for Mission 300 through 2030, which may evolve to fit implementation needs
    • Agence Francaise de Development (AFD): €1 billion to support energy access in Africa
    • Asian Infrastructure Investment Bank (AIIB): $1 billion to $1.5 billion to support Mission 300
    • Islamic Development Bank (IsDB) Group: $2.65 billion in support of Mission 300 and energy access in Africa from 2025-2030
    • OPEC Fund: An initial commitment of $1 billion in support of Mission 300 with additional financing to follow
    • World Bank Group and the African Development Bank Group: Launched Zafiri, an investment company that supports private sector-led solutions, such as renewable mini-grids and solar home systems. Zafiri anchor partners will invest up to $300 million in the first phase and mobilize up to $1 billion to address the persistent equity gap in Africa in these markets.

    The firm commitments made by governments and partners at the summit demonstrate the unique power of the Mission 300 partnership. By combining government reforms, increased financing, and leveraging public-private partnerships, African countries are positioned to turn plans into action, delivering tangible benefits to millions of people.

    The Mission 300 Africa Energy Summit was hosted by the United Republic of Tanzania, the African Union, the African Development Bank Group (AfDB), and the World Bank Group (WBG), with support from the Rockefeller Foundation, ESMAP, Global Energy Alliance for People and Planet (GEAPP), Sustainable Energy for All (SEforALL) and the Sustainable Energy Fund for Africa.

    MIL OSI Africa –