Parliamentary Appearance by the Governor and the Senior Deputy Governor of the Bank of Canada

MIL-OSI: ConnectOne Bancorp, Inc. Reports Third Quarter 2024 Results; Declares Common and Preferred Dividends

Source: GlobeNewswire (MIL-OSI)

ENGLEWOOD CLIFFS, N.J., Oct. 24, 2024 (GLOBE NEWSWIRE) — ConnectOne Bancorp, Inc. (Nasdaq: CNOB) (the “Company” or “ConnectOne”), parent company of ConnectOne Bank (the “Bank”), today reported net income available to common stockholders of $15.7 million for the third quarter of 2024 compared with $17.5 million for the second quarter of 2024 and $19.9 million for the third quarter of 2023. Included in net income available to common stockholders’ was merger and restructuring pre-tax expenses of $0.7 million for the third quarter of 2024, while there were no such charges during the second quarter of 2024 and the third quarter of 2023. Diluted earnings per share were $0.41 for the third quarter of 2024 compared with $0.46 for the second quarter of 2024 and $0.51 for the third quarter of 2023. Return on average assets was 0.70%, 0.79% and 0.88% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively. Return on average tangible common equity was 6.93%, 7.98% and 9.11% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

Operating net income available to common stockholders, which excludes non-operating items, was $16.1 million for the third quarter of 2024, $17.9 million for the second quarter of 2024 and $20.4 million for the third quarter of 2023. Operating diluted earnings per share were $0.42 for the third quarter of 2024, $0.47 for the second quarter of 2024 and $0.52 for the third quarter of 2023. Operating return on average assets was 0.72%, 0.80% and 0.90% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively. Operating return on average tangible common equity was 7.03%, 8.05% and 9.21% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively. See supplemental tables for a complete reconciliation of GAAP earnings to operating earnings, and other non-GAAP measures.

The decrease in net income available to common stockholders and diluted earnings per share from the second quarter of 2024 was primarily due to a $1.3 million increase in the provision for credit losses, a $1.0 million increase in noninterest expenses, and a $0.6 million decrease in net interest income, partially offset by a $0.7 million decrease in income tax expenses and a $0.3 million increase in noninterest income. The decrease in net income available to common stockholders from the third quarter of 2023 was primarily due to a $2.9 million increase in noninterest expenses, a $2.3 million increase in the provision for credit losses, and a $1.5 million decrease in net interest income, partially offset by a $1.2 million increase in noninterest income and a $1.2 million decrease in income tax expense. The increases in noninterest expenses when compared to the prior sequential quarter and the prior year quarter included the impact of the aforementioned $0.7 million of merger and restructuring expense that occurred during the third quarter of 2024.

“In September, we announced a planned merger with The First of Long Island Corporation, a transaction that we believe will create a truly premier New York-metro community bank,” commented Frank Sorrentino, ConnectOne’s Chairman and Chief Executive Officer. “Our integration planning is off to a good start, the initial regulatory process is underway, and we’re excited about creating a significantly enhanced platform for continued growth across all markets and communities we serve. Further, the economic environment and interest rate outlook confirms our belief that this combination will deliver meaningful benefits to our communities, clients and shareholders. We look forward to updating you on our progress in the months and quarters ahead.”

Mr. Sorrentino added, “Meanwhile, we remain focused and committed to our client-first culture and relationship banking model. During the first nine months of the year, we have actively reduced non-relationship loans from our balance sheet in an effort to improve our loan-to-deposit ratio, diversify our loan mix, and capitalize on the improving interest rate environment.”

“The net interest margin, for the third quarter, on a core basis was flat; however, as a result of the Fed’s 50 basis-point cut in late September, we ended the quarter with a so-called spot margin upwards of 10 basis points wider. And with our liability-sensitive balance sheet, we are positioned to drive increased profitability through the fourth quarter, into 2025 and post-merger completion.”

Dividend Declarations

The Company announced that its Board of Directors declared a cash dividend on both its common stock and its outstanding preferred stock. A cash dividend on common stock of $0.18 per share will be paid on December 2, 2024, to common stockholders of record on November 15, 2024. A dividend of $0.328125 per depositary share, representing a 1/40^th interest in a share of the Company’s 5.25% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, will also be paid on December 2, 2024 to holders of record on November 15, 2024.

Operating Results

Fully taxable equivalent net interest income for the third quarter of 2024 was $61.7 million, a decrease of $0.5 million, or 0.9%, from the second quarter of 2024, due to a five basis-point contraction of the net interest margin to 2.67% from 2.72%. During the third quarter of 2024, average loans decreased $89.4 million, or 1.1% when compared to the second quarter of 2024. The contraction of the net interest margin was primarily due to an increase in average cash balances during the third quarter of 2024, as well as a decrease in loan prepayment fees and nonaccrual loan interest recapture. The net interest margin is expected to increase by 10 basis points or more in the fourth quarter of 2024 reflecting the Fed’s actual and expected rate cuts along with deployment of excess cash-on-hand.

Fully taxable equivalent net interest income for the third quarter of 2024 decreased by $1.5 million, or 2.4%, from the third quarter of 2023. The decrease from the third quarter of 2023 resulted primarily from a nine basis-point contraction in the net interest margin to 2.67% from 2.76%. During the third quarter of 2024, average loans decreased by $45.9 million, or 0.6% when compared to the third quarter of 2023. The contraction of the net interest margin for the third quarter of 2024 when compared to the third quarter of 2023 was primarily attributable to a 40 basis-point increase in the average cost of deposits, including noninterest-bearing deposits, partially offset by a 24 basis-point increase in the loan portfolio yield.

Noninterest income was $4.7 million in the third quarter of 2024, $4.4 million in the second quarter of 2024 and $3.6 million in the third quarter of 2023. The $0.3 million increase in noninterest income for the third quarter of 2024 when compared to the second quarter of 2024 was due to a $0.6 million increase in net gains on equity securities, a $0.4 million increase in BOLI death benefits and a $0.2 million increase in other deposit, loan and other income, partially offset a $0.9 million decrease in net gains on sale of loans held-for-sale. The $1.2 million increase in noninterest income for the third quarter of 2024 when compared to the third quarter of 2023 was due to a $0.7 million increase in net gains on equity securities, a $0.4 million increase in BOLI death benefits received, a $0.2 million increase in BOLI income, a $0.1 million increase in BoeFly income, and a $0.1 million increase in other deposit, loan and other income, partially offset by a decrease in net gains on sale of loans held-for-sale of $0.3 million.

Noninterest expenses were $38.6 million for the third quarter of 2024, $37.6 million for the second quarter of 2024 and $35.8 million for the third quarter of 2023. The $1.0 million increase in noninterest expenses for the third quarter of 2024 when compared to the second quarter of 2024 was primarily due to a $0.7 million increase in merger and restructuring expenses, a $0.3 million increase in information and technology communications, a $0.2 million increase in salaries and employee benefits and a $0.2 million increase in professional and consulting fees, partially offset by decreases in other expenses of $0.4 million. The $2.9 million increase in noninterest expenses for the third quarter of 2024 when compared to the third quarter of 2023 was primarily due to a $1.0 million increase in information technology and communications, a $0.7 million increase in merger and restructuring expenses, a $0.7 million increase in salaries and employee benefits, a $0.3 million increase in professional and consulting, a $0.2 million increase in occupancy and equipment and a $0.1 million increase in marketing and advertising, partially offset by a decrease in other expenses of $0.1 million. The increases in information technology and communications when compared to the second quarter of 2024 and the third quarter of 2023 are attributable to additional investments in technology, equipment, and software. The increase in salaries and employee benefits when compared to the second quarter of 2024 was primarily attributable to increases in incentive-based compensation accruals, partially offset by decreases in payroll tax expenses and other employee benefit expenses. The increase in salaries and employee benefits when compared to the third quarter of 2023 was primarily attributable to increases in incentive-based compensation accruals, and an increase in other employee benefit expenses, partially offset by decreases in stock-compensation expenses.

Income tax expense was $6.0 million for the third quarter of 2024, $6.7 million for the second quarter of 2024 and $7.2 million for the third quarter of 2023. The effective tax rates for the second quarter of 2024, first quarter of 2024 and second quarter of 2023 were 26.0%, 26.0% and 25.2%, respectively.

Asset Quality

The provision for credit losses was $3.8 million for the third quarter of 2024, $2.5 million for the second quarter of 2024 and $1.5 million for the third quarter of 2023. The increase in the current quarter’s provision for credit losses from both the second quarter of 2024 and the third quarter of 2023 was primarily due to increases in specific reserves, partially offset by decreases in general reserves.

Nonperforming assets, which includes nonaccrual loans and other real estate owned (the Bank had no other real estate owned during the periods reported), was $51.3 million as of September 30, 2024, $52.5 million as of December 31, 2023 and $56.1 million as of September 30, 2023. Nonperforming assets as a percentage of total assets was 0.53% as of September 30, 2024, 0.53% as of December 31, 2023 and 0.58% as of September 30, 2023. The ratio of nonaccrual loans to loans receivable was 0.63%, 0.63% and 0.69%, as of September 30, 2024, December 31, 2023 and September 30, 2023, respectively. The annualized net loan charge-offs ratio was 0.17% for the third quarter of 2024, 0.43% for the fourth quarter of 2023 and 0.12% for the third quarter of 2023. The allowance for credit losses represented 1.02%, 0.98%, and 1.08% of loans receivable as of September 30, 2024, December 31, 2023, and September 30, 2023, respectively. The allowance for credit losses as a percentage of nonaccrual loans was 160.8% as of September 30, 2024, 156.1% as of December 31, 2023 and 157.4% as of September 30, 2023. Criticized and classified loans as a percentage of total loans was 2.23% as of September 30, 2024, up from 1.35% as of December 31, 2023 and up from 1.44% as of September 30, 2023. The increase is primarily due to a loan modification of one CRE relationship that was moved to special mention. Loans delinquent 30 to 89 days was 0.16% of loans as of September 30, 2024, down from 0.30% as of December 31, 2023 and up from 0.04% as of September 30, 2023.

Selected Balance Sheet Items

The Company’s total assets were $9.639 billion as of September 30, 2024, compared to $9.856 billion as of December 31, 2023. Loans receivable were $8.112 billion as of September 30, 2024 and $8.345 billion as of December 31, 2023. Total deposits were $7.524 billion as of September 30, 2024 and $7.536 billion as of December 31, 2023.

The Company’s total stockholders’ equity was $1.239 billion as of September 30, 2024 and $1.217 billion as of December 31, 2023. The increase in total stockholders’ equity was primarily attributable to an increase in retained earnings of $28.5 million, partially offset by an increase in accumulated other comprehensive losses of approximately $1.6 million and increases in treasury stock of approximately $5.8 million. As of September 30, 2024, the Company’s tangible common equity ratio and tangible book value per share were 9.71% and $23.85, respectively, compared to 9.25% and $23.14, respectively, as of December 31, 2023. Total goodwill and other intangible assets were $213.3 million as of September 30, 2024, and $214.2 million as of December 31, 2023.

Use of Non-GAAP Financial Measures

In addition to the results presented in accordance with Generally Accepted Accounting Principles (“GAAP”), ConnectOne routinely supplements its evaluation with an analysis of certain non-GAAP measures. ConnectOne believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors in understanding our operating performance and trends. These non-GAAP measures have inherent limitations and are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for an analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of non-GAAP financial measures disclosed in this earnings release to the comparable GAAP measures are provided in the accompanying tables.

Third Quarter 2024 Results Conference Call

Management will also host a conference call and audio webcast at 10:00 a.m. ET on October 24, 2024 to review the Company’s financial performance and operating results. The conference call dial-in number is 1 (646) 307-1963, access code 5504182. Please dial in at least five minutes before the start of the call to register. An audio webcast of the conference call will be available to the public, on a listen-only basis, via the “Investor Relations” link on the Company’s website https://www.ConnectOneBank.com or at http://ir.connectonebank.com.

A replay of the conference call will be available beginning at approximately 1:00 p.m. ET on Thursday, October 24, 2024 and ending on Thursday, October 31, 2024 by dialing 1 (609) 800-9909, access code 5504182. An online archive of the webcast will be available following the completion of the conference call at https://www.ConnectOneBank.com or at http://ir.connectonebank.com.

About ConnectOne Bancorp, Inc.

ConnectOne Bancorp, Inc., is a modern financial services company that operates, through its subsidiary, ConnectOne Bank, and the Bank’s fintech subsidiary, BoeFly, Inc. ConnectOne Bank is a high-performing commercial bank offering a full suite of banking & lending products and services that focus on small to middle-market businesses. BoeFly, Inc. is a fintech marketplace that connects borrowers in the franchise space with funding solutions through a network of partner banks. ConnectOne Bancorp, Inc. is traded on the Nasdaq Global Market under the trading symbol “CNOB,” and information about ConnectOne may be found at https://www.connectonebank.com.

This news release contains certain forward-looking statements which are based on certain assumptions and describe future plans, strategies, and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, those factors set forth in Item 1A – Risk Factors of the Company’s Annual Report on Form 10-K, as filed with the U.S. Securities and Exchange Commission, as supplemented by the Company’s subsequent filings with the U.S. Securities and Exchange Commission, and changes in interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area, changes in accounting principles and guidelines and the impact of the health emergencies and natural disasters on the Company, its employees and operations, and its customers. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which 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.

Investor Contact:
William S. Burns
Senior Executive Vice President & CFO
201.816.4474: bburns@cnob.com

Media Contact:
Shannan Weeks
MikeWorldWide
732.299.7890: sweeks@mww.com

CONNECTONE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(in thousands)

	September 30,			December 31,			September 30,
		2024			2023			2023
	(unaudited)						(unaudited)
ASSETS
Cash and due from banks	$	61,093		$	61,421		$	56,170
Interest-bearing deposits with banks		186,155			181,293			197,128
Cash and cash equivalents		247,248			242,714			253,298

Investment securities		646,713			617,162			581,867
Equity securities		20,399			18,564			17,677

Loans receivable		8,111,976			8,345,145			8,181,109
Less: Allowance for credit losses – loans		82,494			81,974			88,230
Net loans receivable		8,029,482			8,263,171			8,092,879

Investment in restricted stock, at cost		42,772			51,457			49,387
Bank premises and equipment, net		29,068			30,779			28,432
Accrued interest receivable		46,951			49,108			46,795
Bank owned life insurance		242,016			237,644			236,009
Right of use operating lease assets		14,211			12,007			11,229
Goodwill		208,372			208,372			208,372
Core deposit intangibles		4,935			5,874			6,222
Other assets		107,436			118,751			146,718
Total assets	$	9,639,603		$	9,855,603		$	9,678,885

LIABILITIES
Deposits:
Noninterest-bearing	$	1,262,568		$	1,259,364		$	1,224,125
Interest-bearing		6,261,537			6,276,838			6,214,370
Total deposits		7,524,105			7,536,202			7,438,495
Borrowings		742,133			933,579			887,590
Subordinated debentures, net		79,818			79,439			79,313
Operating lease liabilities		15,252			13,171			12,424
Other liabilities		38,799			76,592			72,909
Total liabilities		8,400,107			8,638,983			8,490,731

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS’ EQUITY
Preferred stock		110,927			110,927			110,927
Common stock		586,946			586,946			586,946
Additional paid-in capital		34,995			33,182			32,027
Retained earnings		619,497			590,970			579,776
Treasury stock		(76,116	)		(70,296	)		(68,108	)
Accumulated other comprehensive loss		(36,753	)		(35,109	)		(53,414	)
Total stockholders’ equity		1,239,496			1,216,620			1,188,154
Total liabilities and stockholders’ equity	$	9,639,603		$	9,855,603		$	9,678,885

CONNECTONE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except for per share data)

	Three Months Ended					Nine Months Ended
	09/30/24		09/30/23			09/30/24		09/30/23
Interest income
Interest and fees on loans	$	119,280	$	115,405		$	359,513	$	333,356
Interest and dividends on investment securities:
Taxable		4,740		4,128			13,757		12,386
Tax-exempt		1,119		1,136			3,394		3,475
Dividends		1,048		907			3,390		2,750
Interest on federal funds sold and other short-term investments		4,055		2,110			9,802		9,141
Total interest income		130,242		123,686			389,856		361,108
Interest expense
Deposits		63,785		56,043			186,278		146,844
Borrowings		5,570		5,286			20,952		20,980
Total interest expense		69,355		61,329			207,230		167,824

Net interest income		60,887		62,357			182,626		193,284
Provision for credit losses		3,800		1,500			10,300		5,500
Net interest income after provision for credit losses		57,087		60,857			172,326		187,784

Noninterest income
Deposit, loan and other income		1,817		1,605			5,063		4,553
Income on bank owned life insurance		2,145		1,597			5,486		4,681
Net gains on sale of loans held-for-sale		343		633			2,126		1,232
Net losses (gains) on equity securities		432		(273	)		309		(674	)
Total noninterest income		4,737		3,562			12,984		9,792

Noninterest expenses
Salaries and employee benefits		22,957		22,251			67,809		66,213
Occupancy and equipment		2,889		2,738			8,797		8,176
FDIC insurance		1,800		1,800			5,400		4,465
Professional and consulting		2,147		1,834			5,998		5,960
Marketing and advertising		635		554			1,925		1,642
Information technology and communications		4,464		3,487			13,051		10,192
Merger and restructuring		742		–			742		–
Amortization of core deposit intangibles		297		347			939		1,090
Other expenses		2,710		2,773			8,639		8,366
Total noninterest expenses		38,641		35,784			113,300		106,104

Income before income tax expense		23,183		28,635			72,010		91,472
Income tax expense		6,022		7,228			18,588		23,742
Net income		17,161		21,407			53,422		67,730
Preferred dividends		1,509		1,509			4,527		4,527
Net income available to common stockholders	$	15,652	$	19,898		$	48,895	$	63,203

Earnings per common share:
Basic	$	0.41	$	0.51		$	1.27	$	1.62
Diluted		0.41		0.51			1.27		1.61

ConnectOne’s management believes that the supplemental financial information, including non-GAAP measures provided below, is useful to investors. The non-GAAP measures should not be viewed as a substitute for financial results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP financial measures presented by other companies.

CONNECTONE BANCORP, INC.
SUPPLEMENTAL GAAP AND NON-GAAP FINANCIAL MEASURES

	As of
	Sept. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
		2024			2024			2024			2023			2023
Selected Financial Data	(dollars in thousands)
Total assets	$	9,639,603		$	9,723,731		$	9,853,964		$	9,855,603		$	9,678,885
Loans receivable:
Commercial	$	1,505,743		$	1,491,079		$	1,561,063		$	1,564,768		$	1,464,479
Commercial real estate		3,261,160			3,274,941			3,333,488			3,342,603			3,288,704
Multifamily		2,482,258			2,499,581			2,507,893			2,566,904			2,559,927
Commercial construction		616,087			639,168			646,593			620,496			622,748
Residential		250,249			256,786			254,214			256,041			251,416
Consumer		835			945			850			1,029			936
Gross loans		8,116,332			8,162,500			8,304,101			8,351,841			8,188,210
Net deferred loan fees		(4,356	)		(4,597	)		(6,144	)		(6,696	)		(7,101	)
Loans receivable		8,111,976			8,157,903			8,297,957			8,345,145			8,181,109
Loans held-for-sale		–			435			–			–			–
Total loans	$	8,111,976		$	8,158,338		$	8,297,957		$	8,345,145		$	8,181,109

Investment and equity securities	$	667,112		$	640,322		$	638,854		$	635,726		$	599,544
Goodwill and other intangible assets		213,307			213,604			213,925			214,246			214,594
Deposits:
Noninterest-bearing demand	$	1,262,568		$	1,268,882		$	1,290,523		$	1,259,364		$	1,224,125
Time deposits		2,614,187			2,593,165			2,623,391			2,531,371			2,522,210
Other interest-bearing deposits		3,647,350			3,713,967			3,674,740			3,745,467			3,692,160
Total deposits	$	7,524,105		$	7,576,014		$	7,588,654		$	7,536,202		$	7,438,495

Borrowings	$	742,133		$	756,144		$	877,568		$	933,579		$	887,590
Subordinated debentures (net of debt issuance costs)		79,818			79,692			79,566			79,439			79,313
Total stockholders’ equity		1,239,496			1,224,227			1,216,609			1,216,620			1,188,154

Quarterly Average Balances
Total assets	$	9,742,853		$	9,745,853		$	9,860,753		$	9,690,746		$	9,625,625
Loans receivable:
Commercial	$	1,485,777		$	1,517,446		$	1,552,360		$	1,510,634		$	1,471,006
Commercial real estate (including multifamily)		5,752,467			5,789,498			5,890,853			5,874,854			5,821,794
Commercial construction		628,740			652,227			637,993			630,468			625,640
Residential		252,975			254,284			252,965			253,200			253,114
Consumer		7,887			5,155			5,091			6,006			4,972
Gross loans		8,127,846			8,218,610			8,339,262			8,275,162			8,176,526
Net deferred loan fees		(4,513	)		(5,954	)		(6,533	)		(6,894	)		(7,387	)
Loans receivable		8,123,333			8,212,656			8,332,729			8,268,268			8,169,139
Loans held-for-sale		83			169			99			31			171
Total loans	$	8,123,416		$	8,212,825		$	8,332,828		$	8,268,299		$	8,169,310

Investment and equity securities	$	650,897		$	637,551		$	633,270		$	602,287		$	628,429
Goodwill and other intangible assets		213,502			213,813			214,133			214,472			214,822
Deposits:
Noninterest-bearing demand	$	1,259,912		$	1,256,251		$	1,254,201		$	1,248,132		$	1,275,325
Time deposits		2,625,329			2,587,706			2,567,767			2,495,091			2,606,122
Other interest-bearing deposits		3,747,427			3,721,167			3,696,374			3,747,093			3,723,561
Total deposits	$	7,632,668		$	7,565,124		$	7,518,342		$	7,490,316		$	7,605,008

Borrowings	$	717,586		$	787,256		$	947,003		$	823,123		$	651,112
Subordinated debentures (net of debt issuance costs)		79,735			79,609			79,483			79,356			79,230
Total stockholders’ equity		1,234,724			1,220,621			1,220,818			1,198,389			1,202,647

	Three Months Ended
	Sept. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
		2024			2024			2024			2023			2023
	(dollars in thousands, except for per share data)
Net interest income	$	60,887		$	61,439		$	60,300		$	61,822		$	62,357
Provision for credit losses		3,800			2,500			4,000			2,700			1,500
Net interest income after provision for credit losses		57,087			58,939			56,300			59,122			60,857
Noninterest income
Deposit, loan and other income		1,817			1,654			1,592			1,545			1,605
Income on bank owned life insurance		2,145			1,677			1,664			1,635			1,597
Net gains on sale of loans held-for-sale		343			1,277			506			472			633
Net gains (losses) on equity securities		432			(209	)		86			557			(273	)
Total noninterest income		4,737			4,399			3,848			4,209			3,562
Noninterest expenses
Salaries and employee benefits		22,957			22,721			22,131			22,010			22,251
Occupancy and equipment		2,889			2,899			3,009			2,708			2,738
FDIC insurance		1,800			1,800			1,800			3,900			1,800
Professional and consulting		2,147			1,923			1,928			1,587			1,834
Marketing and advertising		635			613			677			323			554
Information technology and communications		4,464			4,198			4,389			4,148			3,487
Merger and restructuring		742			–			–			–			–
Amortization of core deposit intangible		297			321			321			348			347
Other expenses		2,710			3,119			2,810			2,821			2,773
Total noninterest expenses		38,641			37,594			37,065			37,845			35,784

Income before income tax expense		23,183			25,744			23,083			25,486			28,635
Income tax expense		6,022			6,688			5,878			6,213			7,228
Net income		17,161			19,056			17,205			19,273			21,407
Preferred dividends		1,509			1,509			1,509			1,509			1,509
Net income available to common stockholders	$	15,652		$	17,547		$	15,696		$	17,764		$	19,898

Weighted average diluted common shares outstanding		38,525,484			38,448,594			38,511,747			38,651,391			38,829,681
Diluted EPS (GAAP)	$	0.41		$	0.46		$	0.41		$	0.46		$	0.51

Reconciliation of GAAP Net Income to Operating Net Income:
Net income	$	17,161		$	19,056		$	17,205		$	19,273		$	21,407
Merger and restructuring		742			–			–			–			–
Amoritization of core deposit intangibles		297			321			321			348			347
FDIC special assessment		–			–			–			2,100			–
Net (gains) losses on equity securities		(432	)		209			(86	)		(557	)		273
Tax impact of adjustments		(171	)		(149	)		(66	)		(569	)		(187	)
Operating net income	$	17,597		$	19,437		$	17,374		$	20,595		$	21,840
Preferred dividends		1,509			1,509			1,509			1,509			1,509
Operating net income available to common stockholders	$	16,088		$	17,928		$	15,865		$	19,086		$	20,331

Opearting diluted EPS (non-GAAP)⁽¹⁾	$	0.42		$	0.47		$	0.41		$	0.49		$	0.52

Return on Assets Measures
Average assets	$	9,742,853		$	9,745,853		$	9,860,753		$	9,690,746		$	9,625,625
Return on avg. assets		0.70	%		0.79	%		0.70	%		0.79	%		0.88	%
Operating return on avg. assets (non-GAAP)⁽²⁾		0.72			0.80			0.71			0.84			0.90
_________________________
⁽¹⁾Operating net income available to common stockholders divided by weighted average diluted shares outstanding.
⁽²⁾Operating net income divided by average assets.

	Three Months Ended
	Sept. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
		2024			2024			2024			2023			2023
Return on Equity Measures	(dollars in thousands)
Average stockholders’ equity	$	1,234,724		$	1,220,621		$	1,220,818		$	1,198,389		$	1,202,647
Less: average preferred stock		(110,927	)		(110,927	)		(110,927	)		(110,927	)		(110,927	)
Average common equity	$	1,123,797		$	1,109,694		$	1,109,891		$	1,087,462		$	1,091,720
Less: average intangible assets		(213,502	)		(213,813	)		(214,133	)		(214,472	)		(214,822	)
Average tangible common equity	$	910,295		$	895,881		$	895,758		$	872,990		$	876,898
Return on avg. common equity (GAAP)		5.54	%		6.36	%		5.69	%		6.48	%		7.23	%
Operating return on avg. common equity (non-GAAP)⁽³⁾		5.70			6.50			5.75			6.96			7.39
Return on avg. tangible common equity (non-GAAP)⁽⁴⁾		6.93			7.98			7.15			8.18			9.11
Operating return on avg. tangible common equity (non-GAAP)⁽⁵⁾		7.03			8.05			7.12			8.67			9.20

Efficiency Measures
Total noninterest expenses	$	38,641		$	37,594		$	37,065		$	37,845		$	35,784
Merger and restructuring		(742	)		–			–			–			–
Amortization of core deposit intangibles		(297	)		(321	)		(321	)		(348	)		(347	)
FDIC special assessment		–			–			–			(2,100	)		–
Operating noninterest expense	$	37,602		$	37,273		$	36,744		$	35,397		$	35,437

Net interest income (tax equivalent basis)	$	61,710		$	62,255		$	61,111		$	62,627		$	63,208
Noninterest income		4,737			4,399			3,848			4,209			3,562
Net (gains) losses on equity securities		(432	)		209			(86	)		(557	)		273
Operating revenue	$	66,015		$	66,863		$	64,873		$	66,279		$	67,043

Operating efficiency ratio (non-GAAP)⁽⁶⁾		57.0	%		55.7	%		56.6	%		53.4	%		52.9	%

Net Interest Margin
Average interest-earning assets	$	9,206,038		$	9,210,050		$	9,323,291		$	9,172,165		$	9,089,431
Net interest income (tax equivalent basis)		61,710			62,255			61,111			62,627			63,208
Net interest margin (GAAP)		2.67	%		2.72	%		2.64	%		2.71	%		2.76	%
_________________________
⁽³⁾Operating net income available to common stockholders divided by average common equity.
⁽⁴⁾Net income available to common stockholders, excluding amortization of intangible assets, divided by average tangible common equity.
⁽⁵⁾Operating net income available to common stockholders, divided by average tangible common equity.
⁽⁶⁾Operating noninterest expense divided by operating revenue.

	As of
	Sept. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
		2024			2024			2024			2023			2023
Capital Ratios and Book Value per Share	(dollars in thousands, except for per share data)
Stockholders equity	$	1,239,496		$	1,224,227		$	1,216,609		$	1,216,620		$	1,188,154
Less: preferred stock		(110,927	)		(110,927	)		(110,927	)		(110,927	)		(110,927	)
Common equity	$	1,128,569		$	1,113,300		$	1,105,682		$	1,105,693		$	1,077,227
Less: intangible assets		(213,307	)		(213,604	)		(213,925	)		(214,246	)		(214,594	)
Tangible common equity	$	915,262		$	899,696		$	891,757		$	891,447		$	862,633

Total assets	$	9,639,603		$	9,723,731		$	9,853,964		$	9,855,603		$	9,678,885
Less: intangible assets		(213,307	)		(213,604	)		(213,925	)		(214,246	)		(214,594	)
Tangible assets	$	9,426,296		$	9,510,127		$	9,640,039		$	9,641,357		$	9,464,291

Common shares outstanding		38,368,217			38,365,069			38,333,053			38,519,770			38,621,970

Common equity ratio (GAAP)		11.71	%		11.45	%		11.22	%		11.22	%		11.13	%
Tangible common equity ratio (non-GAAP)⁽⁷⁾		9.71			9.46			9.25			9.25			9.11

Regulatory capital ratios (Bancorp):
Leverage ratio		11.10	%		10.97	%		10.73	%		10.86	%		10.86	%
Common equity Tier 1 risk-based ratio		11.07			10.90			10.70			10.62			10.64
Risk-based Tier 1 capital ratio		12.42			12.25			12.03			11.95			11.98
Risk-based total capital ratio		14.29			14.10			13.88			13.77			13.90

Regulatory capital ratios (Bank):
Leverage ratio		11.43	%		11.29	%		11.10	%		11.20	%		11.23	%
Common equity Tier 1 risk-based ratio		12.79			12.60			12.43			12.31			12.38
Risk-based Tier 1 capital ratio		12.79			12.60			12.43			12.31			12.38
Risk-based total capital ratio		13.77			13.58			13.41			13.28			13.43

Book value per share (GAAP)	$	29.41		$	29.02		$	28.84		$	28.70		$	27.89
Tangible book value per share (non-GAAP)⁽⁸⁾		23.85			23.45			23.26			23.14			22.34

Net Loan Charge-offs (Recoveries):
Net loan charge-offs (recoveries):
Charge-offs	$	3,559		$	3,595		$	3,185		$	8,960		$	2,487
Recoveries		(53	)		(324	)		(23	)		–			(8	)
Net loan charge-offs	$	3,506		$	3,271		$	3,162		$	8,960		$	2,479
Net loan charge-offs as a % of average loans receivable (annualized)		0.17	%		0.16	%		0.15	%		0.43	%		0.12	%

Asset Quality
Nonaccrual loans	$	51,300		$	46,026		$	47,438		$	52,524		$	56,059
Other real estate owned		–			–			–			–			–
Nonperforming assets	$	51,300		$	46,026		$	47,438		$	52,524		$	56,059

Allowance for credit losses – loans (“ACL”)	$	82,494		$	82,077		$	82,869		$	81,974		$	88,230
Loans receivable		8,111,976			8,157,903			8,297,957			8,345,145			8,181,109

Nonaccrual loans as a % of loans receivable		0.63	%		0.56	%		0.57	%		0.63	%		0.69	%
Nonperforming assets as a % of total assets		0.53			0.47			0.48			0.53			0.58
ACL as a % of loans receivable		1.02			1.01			1.00			0.98			1.08
ACL as a % of nonaccrual loans		160.8			178.3			174.7			156.1			157.4
_________________________
⁽⁷⁾Tangible common equity divided by tangible assets.
⁽⁸⁾Tangible common equity divided by common shares outstanding at period-end.

CONNECTONE BANCORP, INC.
NET INTEREST MARGIN ANALYSIS
(dollars in thousands)

	For the Quarter Ended
	September 30, 2024								June 30, 2024									September 30, 2023
	Average									Average									Average
Interest-earning assets:	Balance			Interest			Rate⁽⁷⁾			Balance			Interest			Rate⁽⁷⁾			Balance			Interest			Rate⁽⁷⁾
Investment securities^{(1) (2)}	$	736,946		$	6,157		3.32	%		$	739,591		$	6,102		3.32	%		$	723,408		$	5,566		3.05	%
Loans receivable and loans held-for-sale^{(2) (3) (4)}		8,123,416			119,805		5.87				8,212,825			120,663		5.91				8,169,310			115,954		5.63
Federal funds sold and interest-
bearing deposits with banks		304,009			4,056		5.31				212,811			2,841		5.37				158,155			2,110		5.29
Restricted investment in bank stock		41,667			1,048		10.01				44,823			1,217		10.92				38,558			907		9.33
Total interest-earning assets		9,206,038			131,066		5.66				9,210,050			130,823		5.71				9,089,431			124,537		5.44
Allowance for credit losses		(83,355	)								(84,681	)								(89,966	)
Noninterest-earning assets		620,170									620,484									626,160
Total assets	$	9,742,853								$	9,745,853								$	9,625,625

Interest-bearing liabilities:
Time deposits	$	2,625,329			30,245		4.58			$	2,587,706			28,898		4.49			$	2,606,122			25,437		3.87
Other interest-bearing deposits		3,747,427			33,540		3.56				3,721,167			33,188		3.59				3,723,561			30,606		3.26
Total interest-bearing deposits		6,372,756			63,785		3.98				6,308,873			62,086		3.96				6,329,683			56,043		3.51

Borrowings		717,586			4,239		2.35				787,256			5,150		2.63				651,112			3,950		2.41
Subordinated debentures, net		79,735			1,312		6.55				79,609			1,311		6.62				79,230			1,312		6.57
Finance lease		1,349			20		5.90				1,416			21		5.96				1,603			24		5.94
Total interest-bearing liabilities		7,171,426			69,356		3.85				7,177,154			68,568		3.84				7,061,628			61,329		3.45

Noninterest-bearing demand deposits		1,259,912									1,256,251									1,275,325
Other liabilities		76,791									91,827									86,025
Total noninterest-bearing liabilities		1,336,703									1,348,078									1,361,350
Stockholders’ equity		1,234,724									1,220,621									1,202,647
Total liabilities and stockholders’ equity	$	9,742,853								$	9,745,853								$	9,625,625

Net interest income (tax equivalent basis)					61,710									62,255									63,208
Net interest spread⁽⁵⁾							1.82	%								1.87	%								1.99	%

Net interest margin⁽⁶⁾							2.67	%								2.72	%								2.76	%

Tax equivalent adjustment					(823	)								(816	)								(851	)
Net interest income				$	60,887								$	61,439								$	62,357
_________________________
⁽¹⁾Average balances are calculated on amortized cost.
⁽²⁾Interest income is presented on a tax equivalent basis using 21% federal tax rate.
⁽³⁾Includes loan fee income.
⁽⁴⁾Loans include nonaccrual loans.
⁽⁵⁾Represents difference between the average yield on interest-earning assets and the average cost of interest-bearing.
liabilities and is presented on a tax equivalent basis.
⁽⁶⁾Represents net interest income on a tax equivalent basis divided by average total interest-earning assets.
⁽⁷⁾Rates are annualized.

The MIL Network –

January 25, 2025

MIL-OSI: Valley National Bancorp Announces Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Oct. 24, 2024 (GLOBE NEWSWIRE) — Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the third quarter 2024 of $97.9 million, or $0.18 per diluted common share, as compared to the second quarter 2024 net income of $70.4 million, or $0.13 per diluted common share, and net income of $141.3 million, or $0.27 per diluted common share, for the third quarter 2023. Excluding all non-core income and charges, our adjusted net income (a non-GAAP measure) was $96.8 million, or $0.18 per diluted common share, for the third quarter 2024, $71.6 million, or $0.13 per diluted common share, for the second quarter 2024, and $136.4 million, or $0.26 per diluted common share, for the third quarter 2023. See further details below, including a reconciliation of our non-GAAP adjusted net income, in the “Consolidated Financial Highlights” tables.

Ira Robbins, CEO, commented, “The third quarter’s financial results highlight the significant progress that we continue to make towards achieving our strategic balance sheet goals. On October 23, 2024, we entered into an agreement to sell performing commercial real estate loans expected to total over $800 million at a very modest discount of approximately 1 percent to a single investor. This economically compelling transaction is expected to close in the fourth quarter 2024 and reflects the strength and desirability of our commercial real estate portfolio. We have executed on a variety of strategic transactions this year that have notably strengthened our balance sheet and enhanced our financial flexibility.”

Mr. Robbins continued, “This quarter’s results also indicated the early stages of normalized profitability which we expect will accelerate as we enter 2025. Net interest income and non-interest income both improved meaningfully from the second quarter 2024, and our operating expenses were well-controlled and effectively unchanged on a year-over-year basis. While recent weather events weighed on the sequential provision improvement that we anticipated, our pre-provision earnings continued to improve during the third quarter and could set the stage for more stable results in the near future. And most importantly, our thoughts are with those affected by the recent hurricanes in our Florida markets and the other areas in the southeast. We are strongly committed to supporting our associates, clients and communities throughout the rebuilding and recovery process.”

Key financial highlights for the third quarter 2024:

Net Interest Income and Margin: Net interest income on a tax equivalent basis of $411.8 million for the third quarter 2024 increased $8.8 million compared to the second quarter 2024 and decreased $1.8 million as compared to the third quarter 2023. Our net interest margin on a tax equivalent basis also increased by 2 basis points to 2.86 percent in the third quarter 2024 as compared to 2.84 percent for the second quarter 2024. The increases from the second quarter 2024 were mostly due to continued yield expansion on average loans and additional interest income and higher yields from targeted growth within our available for sale securities portfolio. See the “Net Interest Income and Margin” section below for more details.
Loan Portfolio: Total loans decreased $956.4 million, or 7.6 percent on an annualized basis, to $49.4 billion at September 30, 2024 from June 30, 2024 mostly due to the transfer of performing commercial real estate loans totaling $823.1 million, net of unearned fees, to loans held for sale at September 30, 2024 and normal repayment activity mainly within the commercial real estate non-owner occupied and multi-family loans, as we continue to actively reduce these loan categories. Our commercial and industrial loans grew $320.1 million, or 13.5 percent on an annualized basis, to $9.8 billion at September 30, 2024 from June 30, 2024 due to solid organic growth during the third quarter 2024. Residential mortgage and total consumer loans also increased modestly during the third quarter 2024. See the “Loans” section below for more details.
Deposits: Actual ending balances for deposits increased $283.8 million to $50.4 billion at September 30, 2024 as compared to $50.1 billion at June 30, 2024 mainly due to higher period-end direct commercial customer money market and non-interest bearing deposits, partially offset by a decline in time deposits. See the “Deposits” section below for more details.
Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled $564.7 million and $532.5 million at September 30, 2024 and June 30, 2024, respectively, representing 1.14 percent and 1.06 percent of total loans at each respective date. During the third quarter 2024, we recorded a provision for credit losses for loans of $75.0 million as compared to $82.1 million and $9.1 million for the second quarter 2024 and third quarter 2023, respectively. The third quarter 2024 provision reflects, among other factors, increased quantitative reserves allocated to commercial real estate loans, significant commercial and industrial loan growth and $8.0 million of qualitative reserves related to the estimated impact of Hurricane Helene, which hit Florida in late September 2024.
Credit Quality: Non-accrual loans totaled $296.3 million, or 0.60 percent of total loans at September 30, 2024 as compared to $303.3 million, or 0.60 percent of total loans at June 30, 2024. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased to 0.35 percent of total loans at September 30, 2024 as compared to 0.14 percent at June 30, 2024 largely due to two well-secured commercial real estate loans at various stages of expected collection within the early stage delinquency categories. Net loan charge-offs totaled $42.9 million for the third quarter 2024 as compared to $36.8 million and $5.5 million for the second quarter 2024 and third quarter 2023, respectively. The loan charge-offs in the third quarter 2024 included partial charge-offs totaling a combined $30.1 million related to two commercial real estate loan relationships. See the “Credit Quality” section below for more details.
Non-Interest Income: Non-interest income increased $9.5 million to $60.7 million for the third quarter 2024 as compared to the second quarter 2024 mainly due to increases in other income; wealth management and trust fees; and service charges on deposits totaling $11.2 million, $2.0 million, and $1.6 million, respectively. The increases in the aforementioned categories were partially offset by a $5.8 million mark to market loss (recorded within net losses on sales of loans) associated with the performing commercial real estate loans transferred to loans held for sale at September 30, 2024, as well as lower swap fees related to commercial loan transactions (within capital market fees) and insurance commissions. The increase in other income was mostly the result of income from litigation settlements totaling $7.3 million for the third quarter 2024.
Non-Interest Expense: Non-interest expense decreased $8.0 million to $269.5 million for the third quarter 2024 as compared to the second quarter 2024 largely due to a $6.2 million decrease in technology, furniture and equipment expense and a $3.8 million decrease in professional and legal expenses, partially offset by higher net occupancy expense during the third quarter 2024.
Efficiency Ratio: Our efficiency ratio was 56.13 percent for the third quarter 2024 as compared to 59.62 percent and 56.72 percent for the second quarter 2024 and third quarter 2023, respectively. See the “Consolidated Financial Highlights” tables below for additional information regarding our non-GAAP measures.
Performance Ratios: Annualized return on average assets (ROA), shareholders’ equity (ROE) and tangible ROE were 0.63 percent, 5.70 percent and 8.06 percent for the third quarter 2024, respectively. Annualized ROA, ROE, and tangible ROE, adjusted for non-core income and charges, were 0.62 percent, 5.64 percent and 7.97 percent for the third quarter 2024, respectively. See the “Consolidated Financial Highlights” tables below for additional information regarding our non-GAAP measures.

Net Interest Income and Margin

Net interest income on a tax equivalent basis of $411.8 million for the third quarter 2024 increased $8.8 million compared to the second quarter 2024 and decreased $1.8 million as compared to the third quarter 2023. Interest income on a tax equivalent basis increased $27.1 million to $861.9 million for the third quarter 2024 as compared to the second quarter 2024. The increase was mostly due to higher yields on both new loan originations and adjustable rate loans, as well as higher yields and additional interest income from targeted purchases of taxable investments within the available for sale securities portfolio during the second and third quarter 2024. Total interest expense increased $18.3 million to $450.1 million for the third quarter 2024 as compared to the second quarter 2024 mainly due to an increase in average time deposit balances coupled with higher costs on most interest bearing deposit products. See the “Deposits” and “Other Borrowings” sections below for more details.

Net interest margin on a tax equivalent basis of 2.86 percent for the third quarter 2024 increased by 2 basis points from 2.84 percent for the second quarter 2024 and decreased 5 basis points from 2.91 percent for the third quarter 2023. The increase as compared to the second quarter 2024 was largely driven by the higher yield on average interest earning assets largely offset by an increase in the cost of average interest bearing liabilities. The yield on average interest earning assets increased by 10 basis points to 5.98 percent on a linked quarter basis largely due to higher yielding investment purchases and new loan originations during the second and third quarter 2024. The overall cost of average interest bearing liabilities increased 7 basis points to 4.22 percent for the third quarter 2024 as compared to the second quarter 2024 largely due to higher interest rates on deposits. Our cost of total average deposits was 3.25 percent for the third quarter 2024 as compared to 3.18 percent and 2.94 percent for the second quarter 2024 and the third quarter 2023, respectively.

Loans, Deposits and Other Borrowings

Loans. Total loans decreased $956.4 million, or 7.6 percent on an annualized basis, to $49.4 billion at September 30, 2024 from June 30, 2024. Commercial and industrial loans grew by $320.1 million , or 13.5 percent on an annualized basis, to $9.8 billion at September 30, 2024 from June 30, 2024 largely due to our continued strategic focus on the expansion of new loan production within this category. Total commercial real estate (including construction) loans decreased $1.4 billion to $30.4 billion at September 30, 2024 from June 30, 2024. This decline was primarily driven by the transfer of $823.1 million of commercial real estate loans, net of unearned loan fees, from the loans held for investment portfolio to loans held for sale as of September 30, 2024. In addition, we remained highly selective on new originations and projects in an effort to reduce commercial real estate loan concentrations, mainly within the non-owner occupied and multifamily loan categories. Automobile loan balances increased by $60.9 million, or 13.8 percent on an annualized basis, to $1.8 billion at September 30, 2024 from June 30, 2024 mainly due to continued consumer demand generated by our indirect auto dealer network and low prepayment activity within the portfolio. Other consumer loans decreased $42.4 million, or 15.3 percent on an annualized basis, to $1.1 billion at September 30, 2024 from June 30, 2024 primarily due to the negative impact of the high level of market interest rates on the demand and usage of collateralized personal lines of credit.

Deposits. Actual ending balances for deposits increased $283.8 million to $50.4 billion at September 30, 2024 from June 30, 2024 mainly due to an increase of $358.3 million in savings, NOW and money market deposits and an increase of $36.0 million in non-interest bearing deposits, partially offset by a decrease of $110.5 million in time deposits. Non-interest bearing deposit and savings, NOW and money market deposit balances increased at September 30, 2024 from June 30, 2024 mostly due to increases in national specialized deposits and higher direct commercial customer deposit accounts. Total indirect customer deposits (including both brokered money market and time deposits) totaled $9.1 billion in both September 30, 2024 and June 30, 2024. Non-interest bearing deposits; savings, NOW and money market deposits; and time deposits represented approximately 22 percent, 50 percent and 28 percent of total deposits as of September 30, 2024, respectively, as compared to 22 percent, 49 percent and 29 percent of total deposits as of June 30, 2024, respectively.

Other Borrowings. Short-term borrowings, consisting of securities sold under agreements to repurchase, decreased $5.5 million to $58.3 million at September 30, 2024 from June 30, 2024. Long-term borrowings totaled $3.3 billion at September 30, 2024 and also remained relatively unchanged as compared to June 30, 2024.

Credit Quality

Hurricanes Helene and Milton. In the early stages of the fourth quarter 2024, the credit quality of our Florida loan portfolio has remained resilient in the aftermath of Hurricane Helene, which hit Florida in late September 2024, and Hurricane Milton, which made landfall on October 9, 2024. At this time, there have been relatively few loan concessions (mostly in the form of loan payment deferrals up to 90 days) for distressed borrowers impacted by the hurricanes. However, we continue to assess the impact of the hurricanes on our Florida client base and, where appropriate, we will work constructively with individual borrowers.

Non-Performing Assets (NPAs). Total NPAs, consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets, decreased $7.8 million to $305.1 million at September 30, 2024 as compared to June 30, 2024. Non-accrual loans decreased $7.0 million to $296.3 million at September 30, 2024 as compared to $303.3 million at June 30, 2024. Non-accrual construction and commercial real estate loans decreased $20.7 million and $9.3 million to $24.7 million and $113.8 million, respectively, at September 30, 2024 as compared to June 30, 2024 mainly due to loan payoffs during the third quarter 2024. The decreases in these loan categories were partially offset by two new non-accrual commercial and industrial loans totaling $19.0 million, as well as moderate increases in non-accrual residential mortgage and consumer loans at September 30, 2024. OREO decreased $887 thousand at September 30, 2024 from June 30, 2024 mostly due to the sale of one commercial property, which resulted in the recognition of an immaterial loss for the third quarter 2024.

Accruing Past Due Loans. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased $102.3 million to $174.7 million, or 0.35 percent of total loans, at September 30, 2024 as compared to $72.4 million, or 0.14 percent of total loans at June 30, 2024. Loans 30 to 59 days past due increased $69.1 million to $115.1 million at September 30, 2024 as compared to June 30, 2024 mainly due to a $74.5 million increase in commercial real estate loans, partially offset by a $7.0 million decline in consumer loan delinquencies. The increase in commercial real estate loans 30 to 59 days past due was mostly due to one new delinquent loan totaling $40.9 million, which is expected to be fully repaid, subject to the borrower’s pending sale of certain collateral, as well as a few other new loan delinquencies. Loans 60 to 89 days past due increased $42.9 million to $54.8 million at September 30, 2024 as compared to June 30, 2024 mostly due to one well-secured commercial real estate loan totaling $43.9 million currently in the process of loan modification. Loans 90 days or more past due and still accruing interest decreased $9.7 million to $4.8 million at September 30, 2024 as compared to June 30, 2024 largely due to one $4.0 million construction loan that was fully repaid and one $4.2 million commercial real estate loan that migrated from this past due category to non-accrual loans during the third quarter 2024. All loans 90 days or more past due and still accruing interest are well-secured and in the process of collection.

Allowance for Credit Losses for Loans and Unfunded Commitments. The following table summarizes the allocation of the allowance for credit losses to loan categories and the allocation as a percentage of each loan category at September 30, 2024, June 30, 2024 and September 30, 2023:

		September 30, 2024				June 30, 2024				September 30, 2023
				Allocation				Allocation				Allocation
				as a % of				as a % of				as a % of
		Allowance		Loan		Allowance		Loan		Allowance		Loan
		Allocation		Category		Allocation		Category		Allocation		Category
		($ in thousands)
Loan Category:
Commercial and industrial loans		$	166,365	1.70	%	$	149,243	1.57	%	$	133,988	1.44	%
Commercial real estate loans:
	Commercial real estate		249,608	0.93			246,316	0.87			191,562	0.68
	Construction		59,420	1.70			54,777	1.54			53,485	1.40
Total commercial real estate loans			309,028	1.02			301,093	0.95			245,047	0.77
Residential mortgage loans			51,545	0.91			47,697	0.85			44,621	0.80
Consumer loans:
	Home equity		3,303	0.57			3,077	0.54			3,689	0.67
	Auto and other consumer		18,086	0.63			18,200	0.63			14,830	0.52
Total consumer loans			21,389	0.62			21,277	0.62			18,519	0.55
Allowance for loan losses			548,327	1.11			519,310	1.03			442,175	0.88
Allowance for unfunded credit commitments			16,344				13,231				20,170
Total allowance for credit losses for loans		$	564,671			$	532,541			$	462,345
Allowance for credit losses for loans as a % total loans				1.14	%			1.06	%			0.92	%

Our loan portfolio, totaling $49.4 billion at September 30, 2024, had net loan charge-offs totaling $42.9 million for the third quarter 2024 as compared to $36.8 million and $5.5 million for the second quarter 2024 and the third quarter 2023, respectively. Total gross loan charge-offs in the third quarter 2024 included partial charge-offs totaling $30.1 million related to two non-performing commercial real estate loan relationships that had combined specific reserves of $25.9 million within the allowance for loan losses at June 30, 2024.

The allowance for credit losses for loans, comprised of our allowance for loan losses and unfunded credit commitments, as a percentage of total loans was 1.14 percent at September 30, 2024, 1.06 percent at June 30, 2024, and 0.92 percent at September 30, 2023. For the third quarter 2024, the provision for credit losses for loans totaled $75.0 million as compared to $82.1 million and $9.1 million for the second quarter 2024 and third quarter 2023, respectively. The provision for credit losses remained somewhat elevated for the third quarter 2024 largely due to higher quantitative reserves allocated to commercial real estate loans, commercial and industrial loan growth and $8.0 million of qualitative reserves related to the estimated impact of Hurricane Helene.

The allowance for unfunded credit commitments increased to $16.3 million at September 30, 2024 from $13.2 million at June 30, 2024 mainly due to increases in both non-cancellable construction commitments and commercial and industrial standby letters of credit.

As previously noted, we are currently evaluating the impact of Hurricane Milton, and we also continue to evaluate any further impact of Hurricane Helene, on our loan portfolio. While not anticipated based on information currently available, Hurricane Milton and unexpected losses from Hurricane Helene could result in a significant increase to the current hurricane related reserves within the allowance, loan charge-offs and our provision for the fourth quarter 2024.

Capital Adequacy

Valley’s total risk-based capital, common equity Tier 1 capital, Tier 1 capital and Tier 1 leverage capital ratios were 12.56 percent, 9.57 percent, 10.29 percent and 8.40 percent, respectively, at September 30, 2024 as compared to 12.18 percent, 9.55 percent, 9.99 percent and 8.19 percent, respectively, at June 30, 2024. The increases in the total risk-based capital, Tier 1 capital and Tier 1 leverage ratios as compared to June 30, 2024 were largely due to Valley’s issuance of 6.0 million shares of its 8.250 percent Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C on August 5, 2024. Net proceeds to Valley after deducting underwriting discounts, commissions and offering expenses were approximately $144.7 million.

Investor Conference Call

Valley will host a conference call with investors and the financial community at 11:00 AM (ET) today to discuss the third quarter 2024 earnings and related matters. Interested parties should preregister using this link: https://register.vevent.com/register to receive the dial-in number and a personal PIN, which are required to access the conference call. The teleconference will also be webcast live: https://edge.media-server.com and archived on Valley’s website through Monday, December 2, 2024. Investor presentation materials will be made available prior to the conference call at www.valley.com.

About Valley

As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with over $62 billion in assets. Valley is committed to giving people and businesses the power to succeed. Valley operates many convenient branch locations and commercial banking offices across New Jersey, New York, Florida, Alabama, California and Illinois, and is committed to providing the most convenient service, the latest innovations and an experienced and knowledgeable team dedicated to meeting customer needs. Helping communities grow and prosper is the heart of Valley’s corporate citizenship philosophy. To learn more about Valley, go to www.valley.com or call our Customer Care Center at 800-522-4100.

Forward-Looking Statements

The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about our business, new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by such forward-looking terminology as “intend,” “should,” “expect,” “believe,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “would,” “could,” “typically,” “usually,” “anticipate,” “may,” “estimate,” “outlook,” “project” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to:

the impact of market interest rates and monetary and fiscal policies of the U.S. federal government and its agencies in connection with the prolonged inflationary pressures, which could have a material adverse effect on our clients, our business, our employees, and our ability to provide services to our customers;
the impact of unfavorable macroeconomic conditions or downturns, including an actual or threatened U.S. government shutdown, debt default or rating downgrade, instability or volatility in financial markets, unanticipated loan delinquencies, loss of collateral, decreased service revenues, increased business disruptions or failures, reductions in employment, and other potential negative effects on our business, employees or clients caused by factors outside of our control, such as the outcome of the 2024 U.S. presidential election, geopolitical instabilities or events (including the Israel-Hamas war and the escalation and regional expansion thereof); natural and other disasters (including severe weather events, such as Hurricanes Helene and Milton); health emergencies; acts of terrorism; or other external events;
the impact of potential instability within the U.S. financial sector in the aftermath of the banking failures in 2023 and continued volatility thereafter, including the possibility of a run on deposits by a coordinated deposit base, and the impact of the actual or perceived soundness, or concerns about the creditworthiness of other financial institutions, including any resulting disruption within the financial markets, increased expenses, including Federal Deposit Insurance Corporation insurance assessments, or adverse impact on our stock price, deposits or our ability to borrow or raise capital;
the impact of negative public opinion regarding Valley or banks in general that damages our reputation and adversely impacts business and revenues;
changes in the statutes, regulations, policy, or enforcement priorities of the federal bank regulatory agencies;
the loss of or decrease in lower-cost funding sources within our deposit base;
damage verdicts or settlements or restrictions related to existing or potential class action litigation or individual litigation arising from claims of violations of laws or regulations, contractual claims, breach of fiduciary responsibility, negligence, fraud, environmental laws, patent, trademark or other intellectual property infringement, misappropriation or other violation, employment related claims, and other matters;
a prolonged downturn and contraction in the economy, as well as an unexpected decline in commercial real estate values collateralizing a significant portion of our loan portfolio;
higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations, and case law;
the inability to grow customer deposits to keep pace with loan growth;
a material change in our allowance for credit losses under CECL due to forecasted economic conditions and/or unexpected credit deterioration in our loan and investment portfolios;
the need to supplement debt or equity capital to maintain or exceed internal capital thresholds;
changes in our business, strategy, market conditions or other factors that may negatively impact the estimated fair value of our goodwill and other intangible assets and result in future impairment charges;
greater than expected technology related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations;
cyberattacks, ransomware attacks, computer viruses, malware or other cybersecurity incidents that may breach the security of our websites or other systems or networks to obtain unauthorized access to personal, confidential, proprietary or sensitive information, destroy data, disable or degrade service, or sabotage our systems or networks;
results of examinations by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank, the Consumer Financial Protection Bureau (CFPB) and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities;
application of the OCC heightened regulatory standards for certain large insured national banks, and the expenses we will incur to develop policies, programs, and systems that comply with the enhanced standards applicable to us;
our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements, or a decision to increase capital by retaining more earnings;
unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather, pandemics or other public health crises, acts of terrorism or other external events;
our ability to successfully execute our business plan and strategic initiatives; and
unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, risk mitigation strategies, changes in regulatory lending guidance or other factors.

A detailed discussion of factors that could affect our results is included in our SEC filings, including Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2023.

We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in our expectations, except as required by law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

-Tables to Follow-

VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS

SELECTED FINANCIAL DATA

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
($ in thousands, except for share data and stock price)	2024			2024			2023			2024			2023
FINANCIAL DATA:
Net interest income – FTE⁽¹⁾	$	411,812		$	402,984		$	413,657		$	1,209,643		$	1,272,390
Net interest income	$	410,498		$	401,685		$	412,418		$	1,205,731		$	1,268,203
Non-interest income		60,671			51,213			58,664			173,299			173,038
Total revenue		471,169			452,898			471,082			1,379,030			1,441,241
Non-interest expense		269,471			277,497			267,133			827,278			822,270
Pre-provision net revenue		201,698			175,401			203,949			551,752			618,971
Provision for credit losses		75,024			82,070			9,117			202,294			29,604
Income tax expense		28,818			22,907			53,486			84,898			162,410
Net income		97,856			70,424			141,346			264,560			426,957
Dividends on preferred stock		6,117			4,108			4,127			14,344			12,031
Net income available to common shareholders	$	91,739		$	66,316		$	137,219		$	250,216		$	414,926
Weighted average number of common shares outstanding:
Basic		509,227,538			509,141,252			507,650,668			508,904,353			507,580,197
Diluted		511,342,932			510,338,502			509,256,599			510,713,205			509,204,051
Per common share data:
Basic earnings	$	0.18		$	0.13		$	0.27		$	0.49		$	0.82
Diluted earnings		0.18			0.13			0.27			0.49			0.81
Cash dividends declared		0.11			0.11			0.11			0.33			0.33
Closing stock price – high		9.34			8.02			10.30			10.80			12.59
Closing stock price – low		6.58			6.52			7.63			6.52			6.59
FINANCIAL RATIOS:
Net interest margin		2.85	%		2.83	%		2.90	%		2.82	%		2.99	%
Net interest margin – FTE⁽¹⁾		2.86			2.84			2.91			2.83			3.00
Annualized return on average assets		0.63			0.46			0.92			0.57			0.93
Annualized return on avg. shareholders’ equity		5.70			4.17			8.56			5.20			8.72
NON-GAAP FINANCIAL DATA AND RATIOS:⁽²⁾
Basic earnings per share, as adjusted	$	0.18		$	0.13		$	0.26		$	0.50		$	0.84
Diluted earnings per share, as adjusted		0.18			0.13			0.26			0.50			0.84
Annualized return on average assets, as adjusted		0.62	%		0.47	%		0.89	%		0.58	%		0.96	%
Annualized return on average shareholders’ equity, as adjusted		5.64			4.24			8.26			5.27			8.94
Annualized return on avg. tangible shareholders’ equity		8.06			5.95			12.39			7.40			12.71
Annualized return on average tangible shareholders’ equity, as adjusted		7.97			6.05			11.95			7.50			13.04
Efficiency ratio		56.13			59.62			56.72			58.26			55.34

AVERAGE BALANCE SHEET ITEMS:
Assets	$	62,242,022		$	61,518,639		$	61,391,688		$	61,674,588		$	61,050,973
Interest earning assets		57,651,650			56,772,950			56,802,565			57,016,790			56,510,997
Loans		50,126,963			50,020,901			50,019,414			50,131,468			49,120,153
Interest bearing liabilities		42,656,956			41,576,344			40,829,078			41,932,616			39,802,966
Deposits		50,409,234			49,383,209			49,848,446			49,459,617			48,165,152
Shareholders’ equity		6,862,555			6,753,981			6,605,786			6,781,022			6,531,424

	As Of
BALANCE SHEET ITEMS:	September 30,			June 30,			March 31,			December			September 30,
(In thousands)	2024			2024			2024			2023			2023
Assets	$	62,092,332		$	62,058,974		$	61,000,188		$	60,934,974		$	61,183,352
Total loans		49,355,319			50,311,702			49,922,042			50,210,295			50,097,519
Deposits		50,395,966			50,112,177			49,077,946			49,242,829			49,885,314
Shareholders’ equity		6,972,380			6,737,737			6,727,139			6,701,391			6,627,299

LOANS:
(In thousands)
Commercial and industrial	$	9,799,287		$	9,479,147		$	9,104,193		$	9,230,543		$	9,274,630
Commercial real estate:
Non-owner occupied		12,647,649			13,710,015			14,962,851			15,078,464			14,741,668
Multifamily		8,612,936			8,976,264			8,818,263			8,860,219			8,863,529
Owner occupied		5,654,147			5,536,844			4,367,839			4,304,556			4,435,853
Construction		3,487,464			3,545,723			3,556,511			3,726,808			3,833,269
Total commercial real estate		30,402,196			31,768,846			31,705,464			31,970,047			31,874,319
Residential mortgage		5,684,079			5,627,113			5,618,355			5,569,010			5,562,665
Consumer:
Home equity		581,181			566,467			564,083			559,152			548,918
Automobile		1,823,738			1,762,852			1,700,508			1,620,389			1,585,987
Other consumer		1,064,838			1,107,277			1,229,439			1,261,154			1,251,000
Total consumer loans		3,469,757			3,436,596			3,494,030			3,440,695			3,385,905
Total loans	$	49,355,319		$	50,311,702		$	49,922,042		$	50,210,295		$	50,097,519

CAPITAL RATIOS:
Book value per common share	$	13.00		$	12.82		$	12.81		$	12.79		$	12.64
Tangible book value per common share⁽²⁾		9.06			8.87			8.84			8.79			8.63
Tangible common equity to tangible assets⁽²⁾		7.68	%		7.52	%		7.62	%		7.58	%		7.40	%
Tier 1 leverage capital		8.40			8.19			8.20			8.16			8.08
Common equity tier 1 capital		9.57			9.55			9.34			9.29			9.21
Tier 1 risk-based capital		10.29			9.99			9.78			9.72			9.64
Total risk-based capital		12.56			12.18			11.88			11.76			11.68

	Three Months Ended									Nine Months Ended
ALLOWANCE FOR CREDIT LOSSES:	September 30,			June 30,			September 30,			September 30,
($ in thousands)	2024			2024			2023			2024			2023
Allowance for credit losses for loans
Beginning balance	$	532,541		$	487,269		$	458,676		$	465,550		$	483,255
Impact of the adoption of ASU No. 2022-02		—			—			—			—			(1,368	)
Beginning balance, adjusted		532,541			487,269			458,676			465,550			481,887
Loans charged-off:
Commercial and industrial		(7,501	)		(14,721	)		(7,487	)		(36,515	)		(37,399	)
Commercial real estate		(33,292	)		(22,144	)		(255	)		(56,640	)		(2,320	)
Construction		(4,831	)		(212	)		—			(12,637	)		(9,906	)
Residential mortgage		—			—			(20	)		—			(169	)
Total consumer		(2,597	)		(1,262	)		(1,156	)		(5,668	)		(3,024	)
Total loans charged-off		(48,221	)		(38,339	)		(8,918	)		(111,460	)		(52,818	)
Charged-off loans recovered:
Commercial and industrial		3,162			742			3,043			4,586			6,615
Commercial real estate		66			150			5			457			33
Construction		1,535			—			—			1,535			—
Residential mortgage		29			5			30			59			186
Total consumer		521			603			362			1,521			1,513
Total loans recovered		5,313			1,500			3,440			8,158			8,347
Total net charge-offs		(42,908	)		(36,839	)		(5,478	)		(103,302	)		(44,471	)
Provision for credit losses for loans		75,038			82,111			9,147			202,423			24,929
Ending balance	$	564,671		$	532,541		$	462,345		$	564,671		$	462,345
Components of allowance for credit losses for loans:
Allowance for loan losses	$	548,327		$	519,310		$	442,175		$	548,327		$	442,175
Allowance for unfunded credit commitments		16,344			13,231			20,170			16,344			20,170
Allowance for credit losses for loans	$	564,671		$	532,541		$	462,345		$	564,671		$	462,345
Components of provision for credit losses for loans:
Provision for credit losses for loans	$	71,925		$	86,901		$	11,221		$	205,549		$	29,359
Provision (credit) for unfunded credit commitments		3,113			(4,790	)		(2,074	)		(3,126	)		(4,430	)
Total provision for credit losses for loans	$	75,038		$	82,111		$	9,147		$	202,423		$	24,929
Annualized ratio of total net charge-offs to total average loans		0.34	%		0.29	%		0.04	%		0.27	%		0.12	%
Allowance for credit losses for loans as a % of total loans		1.14	%		1.06	%		0.92	%		1.14	%		0.92	%

	As Of
ASSET QUALITY:	September 30,			June 30,			March 31,			December 31,			September 30,
($ in thousands)	2024			2024			2024			2023			2023
Accruing past due loans:
30 to 59 days past due:
Commercial and industrial	$	4,537		$	5,086		$	6,202		$	9,307		$	10,687
Commercial real estate		76,370			1,879			5,791			3,008			8,053
Residential mortgage		19,549			17,389			20,819			26,345			13,159
Total consumer		14,672			21,639			14,032			20,554			15,509
Total 30 to 59 days past due		115,128			45,993			46,844			59,214			47,408
60 to 89 days past due:
Commercial and industrial		1,238			1,621			2,665			5,095			5,720
Commercial real estate		43,926			—			3,720			1,257			2,620
Residential mortgage		6,892			6,632			5,970			8,200			9,710
Total consumer		2,732			3,671			1,834			4,715			1,720
Total 60 to 89 days past due		54,788			11,924			14,189			19,267			19,770
90 or more days past due:
Commercial and industrial		1,786			2,739			5,750			5,579			6,629
Commercial real estate		—			4,242			—			—			—
Construction		—			3,990			3,990			3,990			3,990
Residential mortgage		1,931			2,609			2,884			2,488			1,348
Total consumer		1,063			898			731			1,088			391
Total 90 or more days past due		4,780			14,478			13,355			13,145			12,358
Total accruing past due loans	$	174,696		$	72,395		$	74,388		$	91,626		$	79,536
Non-accrual loans:
Commercial and industrial	$	120,575		$	102,942		$	102,399		$	99,912		$	87,655
Commercial real estate		113,752			123,011			100,052			99,739			83,338
Construction		24,657			45,380			51,842			60,851			62,788
Residential mortgage		33,075			28,322			28,561			26,986			21,614
Total consumer		4,260			3,624			4,438			4,383			3,545
Total non-accrual loans		296,319			303,279			287,292			291,871			258,940
Other real estate owned (OREO)		7,172			8,059			88			71			71
Other repossessed assets		1,611			1,607			1,393			1,444			1,314
Total non-performing assets	$	305,102		$	312,945		$	288,773		$	293,386		$	260,325
Total non-accrual loans as a % of loans		0.60	%		0.60	%		0.58	%		0.58	%		0.52	%
Total accruing past due and non-accrual loans as a % of loans		0.95			0.75			0.72			0.76			0.68
Allowance for losses on loans as a % of non-accrual loans		185.05			171.23			163.33			152.83			170.76

NOTES TO SELECTED FINANCIAL DATA

(1)		Net interest income and net interest margin are presented on a tax equivalent basis using a 21 percent federal tax rate. Valley believes that this presentation provides comparability of net interest income and net interest margin arising from both taxable and tax-exempt sources and is consistent with industry practice and SEC rules.
(2)		Non-GAAP Reconciliations. This press release contains certain supplemental financial information, described in the Notes below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles (“GAAP”) that management uses in its analysis of Valley’s performance. The Company believes that the non-GAAP financial measures provide useful supplemental information to both management and investors in understanding Valley’s underlying operational performance, business and performance trends, and may facilitate comparisons of our current and prior performance with the performance of others in the financial services industry. Management utilizes these measures for internal planning, forecasting and analysis purposes. Management believes that Valley’s presentation and discussion of this supplemental information, together with the accompanying reconciliations to the GAAP financial measures, also allows investors to view performance in a manner similar to management. These non-GAAP financial measures should not be considered in isolation or as a substitute for or superior to financial measures calculated in accordance with U.S. GAAP. These non-GAAP financial measures may also be calculated differently from similar measures disclosed by other companies.

Non-GAAP Reconciliations to GAAP Financial Measures

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
($ in thousands, except for share data)	2024			2024			2023			2024			2023
Adjusted net income available to common shareholders (non-GAAP):
Net income, as reported (GAAP)	$	97,856		$	70,424		$	141,346		$	264,560		$	426,957
Add: FDIC Special assessment ^(a)		—			1,363			—			8,757			—
Add: Losses on available for sale and held to maturity debt securities, net ^(b)		1			4			443			12			476
Add: Restructuring charge ^(c)		—			334			(675	)		954			10,507
Add: Mark to market loss on commercial real estate loans transferred to loans held for sale ^(d)		5,794			—			—			5,794			—
Add: Provision for credit losses for available for sale securities ^(e)		—			—			—			—			5,000
Add: Merger related expenses ^(f)		—			—			—			—			4,133
Less: Litigation settlements ^(g)		(7,334	)		—			—			(7,334	)		—
Less: Gain on sale of commercial premium finance lending division ^(h)		—			—			—			(3,629	)		—
Less: Net gains on sales of office buildings ^(h)		—			—			(6,721	)		—			(6,721	)
Total non-GAAP adjustments to net income		(1,539	)		1,701			(6,953	)		4,554			13,395
Income tax adjustments related to non-GAAP adjustments ⁽ⁱ⁾		437			(482	)		1,970			(1,269	)		(2,378	)
Net income, as adjusted (non-GAAP)	$	96,754		$	71,643		$	136,363		$	267,845		$	437,974
Dividends on preferred stock		6,117			4,108			4,127			14,344			12,031
Net income available to common shareholders, as adjusted (non-GAAP)	$	90,637		$	67,535		$	132,236		$	253,501		$	425,943
__________
(a) Included in the FDIC insurance expense.
(b) Included in gains (losses) on securities transactions, net.
(c) Represents severance expense related to workforce reductions within salary and employee benefits expense.
(d) Included in (losses) gains on sales of loans, net.
(e) Included in provision for credit losses for available for sale and held to maturity securities (tax disallowed).
(f) Included in salary and employee benefits expense during the first quarter 2023.
(g) Represents recoveries from legal settlements included in other income.
(h) Included in gains (losses) on sales of assets, net within non-interest income.
(i) Calculated using the appropriate blended statutory tax rate for the applicable period.

Adjusted per common share data (non-GAAP):
Net income available to common shareholders, as adjusted (non-GAAP)	$	90,637		$	67,535		$	132,236		$	253,501		$	425,943
Average number of shares outstanding		509,227,538			509,141,252			507,650,668			508,904,353			507,580,197
Basic earnings, as adjusted (non-GAAP)	$	0.18		$	0.13		$	0.26		$	0.50		$	0.84
Average number of diluted shares outstanding		511,342,932			510,338,502			509,256,599			510,713,205			509,204,051
Diluted earnings, as adjusted (non-GAAP)	$	0.18		$	0.13		$	0.26		$	0.50		$	0.84
Adjusted annualized return on average tangible shareholders’ equity (non-GAAP):
Net income, as adjusted (non-GAAP)	$	96,754		$	71,643		$	136,363		$	267,845		$	437,974
Average shareholders’ equity	$	6,862,555		$	6,753,981		$	6,605,786		$	6,781,022		$	6,531,424
Less: Average goodwill and other intangible assets		2,008,692			2,016,766			2,042,486			2,016,790			2,051,727
Average tangible shareholders’ equity	$	4,853,863		$	4,737,215		$	4,563,300		$	4,764,232		$	4,479,697
Annualized return on average tangible shareholders’ equity, as adjusted (non-GAAP)		7.97	%		6.05	%		11.95	%		7.50	%		13.04	%

Non-GAAP Reconciliations to GAAP Financial Measures (Continued)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
($ in thousands, except for share data)	2024			2024			2023			2024			2023
Adjusted annualized return on average assets (non-GAAP):
Net income, as adjusted (non-GAAP)	$	96,754		$	71,643		$	136,363		$	267,845		$	437,974
Average assets	$	62,242,022		$	61,518,639		$	61,391,688		$	61,674,588		$	61,050,973
Annualized return on average assets, as adjusted (non-GAAP)		0.62	%		0.47	%		0.89	%		0.58	%		0.96	%
Adjusted annualized return on average shareholders’ equity (non-GAAP):
Net income, as adjusted (non-GAAP)	$	96,754		$	71,643		$	136,363		$	267,845		$	437,974
Average shareholders’ equity	$	6,862,555		$	6,753,981		$	6,605,786		$	6,781,022		$	6,531,424
Annualized return on average shareholders’ equity, as adjusted (non-GAAP)		5.64	%		4.24	%		8.26	%		5.27	%		8.94	%
Annualized return on average tangible shareholders’ equity (non-GAAP):
Net income, as reported (GAAP)	$	97,856		$	70,424		$	141,346		$	264,560		$	426,957
Average shareholders’ equity	$	6,862,555		$	6,753,981		$	6,605,786		$	6,781,022		$	6,531,424
Less: Average goodwill and other intangible assets		2,008,692			2,016,766			2,042,486			2,016,790			2,051,727
Average tangible shareholders’ equity	$	4,853,863		$	4,737,215		$	4,563,300		$	4,764,232		$	4,479,697
Annualized return on average tangible shareholders’ equity (non-GAAP)		8.06	%		5.95	%		12.39	%		7.40	%		12.71	%
Efficiency ratio (non-GAAP):
Non-interest expense, as reported (GAAP)	$	269,471		$	277,497		$	267,133		$	827,278		$	822,270
Less: FDIC Special assessment (pre-tax)		—			1,363			—			8,757			—
Less: Restructuring charge (pre-tax)		—			334			(675	)		954			10,507
Less: Merger-related expenses (pre-tax)		—			—			—			—			4,133
Less: Amortization of tax credit investments (pre-tax)		5,853			5,791			4,191			17,206			13,462
Non-interest expense, as adjusted (non-GAAP)	$	263,618		$	270,009		$	263,617		$	800,361		$	794,168
Net interest income, as reported (GAAP)		410,498			401,685			412,418			1,205,731			1,268,203
Non-interest income, as reported (GAAP)		60,671			51,213			58,664			173,299			173,038
Add: Losses on available for sale and held to maturity securities transactions, net (pre-tax)		1			4			443			12			476
Add: Mark-to-market loss on commercial real estate loans transferred to loans held for sale (pre-tax)		5,794			—			—			5,794			—
Less: Litigation settlements (pre-tax)		(7,334	)		—			—			(7,334	)		—
Less: Gain on sale of premium finance division (pre-tax)		—			—			—			(3,629	)		—
Less: Net gains on sales of office buildings (pre-tax)		—			—			(6,721	)		—			(6,721	)
Non-interest income, as adjusted (non-GAAP)	$	59,132		$	51,217		$	52,386		$	168,142		$	166,793
Gross operating income, as adjusted (non-GAAP)	$	469,630		$	452,902		$	464,804		$	1,373,873		$	1,434,996
Efficiency ratio (non-GAAP)		56.13	%		59.62	%		56.72	%		58.26	%		55.34	%

	As of
	September 30,			June 30,			March 31,			December 31,			September 30,
($ in thousands, except for share data)	2024			2024			2024			2023			2023
Tangible book value per common share (non-GAAP):
Common shares outstanding		509,252,936			509,205,014			508,893,059			507,709,927			507,660,742
Shareholders’ equity (GAAP)	$	6,972,380		$	6,737,737		$	6,727,139		$	6,701,391		$	6,627,299
Less: Preferred stock		354,345			209,691			209,691			209,691			209,691
Less: Goodwill and other intangible assets		2,004,414			2,012,580			2,020,405			2,029,267			2,038,202
Tangible common shareholders’ equity (non-GAAP)	$	4,613,621		$	4,515,466		$	4,497,043		$	4,462,433		$	4,379,406
Tangible book value per common share (non-GAAP)	$	9.06		$	8.87		$	8.84		$	8.79		$	8.63
Tangible common equity to tangible assets (non-GAAP):
Tangible common shareholders’ equity (non-GAAP)	$	4,613,621		$	4,515,466		$	4,497,043		$	4,462,433		$	4,379,406
Total assets (GAAP)		62,092,332			62,058,974			61,000,188			60,934,974			61,183,352
Less: Goodwill and other intangible assets		2,004,414			2,012,580			2,020,405			2,029,267			2,038,202
Tangible assets (non-GAAP)	$	60,087,918		$	60,046,394		$	58,979,783		$	58,905,707		$	59,145,150
Tangible common equity to tangible assets (non-GAAP)		7.68	%		7.52	%		7.62	%		7.58	%		7.40	%

VALLEY NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except for share data)

	September 30,			December 31,
	2024			2023
	(Unaudited)
Assets
Cash and due from banks	$	511,945		$	284,090
Interest bearing deposits with banks		527,960			607,135
Investment securities:
Equity securities		73,071			64,464
Trading debt securities		3,996			3,973
Available for sale debt securities		2,602,260			1,296,576
Held to maturity debt securities (net of allowance for credit losses of $1,076 at September 30, 2024 and $1,205 at December 31, 2023)		3,573,960			3,739,208
Total investment securities		6,253,287			5,104,221
Loans held for sale (includes fair value of $17,153 at September 30, 2024 and $20,640 at December 31, 2023 for loans originated for sale)		843,201			30,640
Loans		49,355,319			50,210,295
Less: Allowance for loan losses		(548,327	)		(446,080	)
Net loans		48,806,992			49,764,215
Premises and equipment, net		356,649			381,081
Lease right of use assets		335,032			343,461
Bank owned life insurance		730,081			723,799
Accrued interest receivable		250,131			245,498
Goodwill		1,868,936			1,868,936
Other intangible assets, net		135,478			160,331
Other assets		1,472,640			1,421,567
Total Assets	$	62,092,332		$	60,934,974
Liabilities
Deposits:
Non-interest bearing	$	11,153,754		$	11,539,483
Interest bearing:
Savings, NOW and money market		25,069,405			24,526,622
Time		14,172,807			13,176,724
Total deposits		50,395,966			49,242,829
Short-term borrowings		58,268			917,834
Long-term borrowings		3,274,340			2,328,375
Junior subordinated debentures issued to capital trusts		57,368			57,108
Lease liabilities		394,971			403,781
Accrued expenses and other liabilities		939,039			1,283,656
Total Liabilities		55,119,952			54,233,583
Shareholders’ Equity
Preferred stock, no par value; 50,000,000 authorized shares:
Series A (4,600,000 shares issued at September 30, 2024 and December 31, 2023)		111,590			111,590
Series B (4,000,000 shares issued at September 30, 2024 and December 31, 2023)		98,101			98,101
Series C (6,000,000 shares issued at September 30, 2024)		144,654			—
Common stock (no par value, authorized 650,000,000 shares; issued 509,252,936 shares at September 30, 2024 and 507,896,910 shares at December 31, 2023)		178,661			178,187
Surplus		5,002,718			4,989,989
Retained earnings		1,551,428			1,471,371
Accumulated other comprehensive loss		(114,772	)		(146,456	)
Treasury stock, at cost (186,983 common shares at December 31, 2023)		—			(1,391	)
Total Shareholders’ Equity		6,972,380			6,701,391
Total Liabilities and Shareholders’ Equity	$	62,092,332		$	60,934,974

VALLEY NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(in thousands, except for share data)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2024			2024			2023			2024			2023
Interest Income
Interest and fees on loans	$	786,680		$	770,964		$	753,638		$	2,329,197		$	2,124,036
Interest and dividends on investment securities:
Taxable		49,700			40,460			32,383			125,957			96,591
Tax-exempt		4,855			4,799			4,585			14,450			15,485
Dividends		5,929			6,341			5,299			19,098			18,001
Interest on federal funds sold and other short-term investments		13,385			10,902			17,113			33,969			66,594
Total interest income		860,549			833,466			813,018			2,522,671			2,320,707
Interest Expense
Interest on deposits:
Savings, NOW and money market		235,371			231,597			201,916			699,474			517,524
Time		174,741			160,442			164,336			486,248			370,398
Interest on short-term borrowings		451			691			5,189			21,754			89,345
Interest on long-term borrowings and junior subordinated debentures		39,488			39,051			29,159			109,464			75,237
Total interest expense		450,051			431,781			400,600			1,316,940			1,052,504
Net Interest Income		410,498			401,685			412,418			1,205,731			1,268,203
(Credit) provision for credit losses for available for sale and held to maturity securities		(14	)		(41	)		(30	)		(129	)		4,675
Provision for credit losses for loans		75,038			82,111			9,147			202,423			24,929
Net Interest Income After Provision for Credit Losses		335,474			319,615			403,301			1,003,437			1,238,599
Non-Interest Income
Wealth management and trust fees		15,125			13,136			11,417			46,191			32,180
Insurance commissions		2,880			3,958			2,336			9,089			7,895
Capital markets		6,347			7,779			7,141			19,796			35,000
Service charges on deposit accounts		12,826			11,212			10,952			35,287			31,970
Gains (losses) on securities transactions, net		47			3			(398	)		99			197
Fees from loan servicing		3,443			2,691			2,681			9,322			8,054
(Losses) gains on sales of loans, net		(3,644	)		884			2,023			(1,142	)		3,752
Gains (losses) on sales of assets, net		55			(2	)		6,653			3,747			6,938
Bank owned life insurance		5,387			4,545			2,709			13,167			7,736
Other		18,205			7,007			13,150			37,743			39,316
Total non-interest income		60,671			51,213			58,664			173,299			173,038
Non-Interest Expense
Salary and employee benefits expense		138,832			140,815			137,292			421,478			431,872
Net occupancy expense		26,973			24,252			24,675			75,548			73,880
Technology, furniture and equipment expense		28,962			35,203			37,320			99,627			106,304
FDIC insurance assessment		14,792			14,446			7,946			47,474			27,527
Amortization of other intangible assets		8,692			8,568			9,741			26,672			30,072
Professional and legal fees		14,118			17,938			17,109			48,521			55,329
Amortization of tax credit investments		5,853			5,791			4,191			17,206			13,462
Other		31,249			30,484			28,859			90,752			83,824
Total non-interest expense		269,471			277,497			267,133			827,278			822,270
Income Before Income Taxes		126,674			93,331			194,832			349,458			589,367
Income tax expense		28,818			22,907			53,486			84,898			162,410
Net Income		97,856			70,424			141,346			264,560			426,957
Dividends on preferred stock		6,117			4,108			4,127			14,344			12,031
Net Income Available to Common Shareholders	$	91,739		$	66,316		$	137,219		$	250,216		$	414,926

VALLEY NATIONAL BANCORP
Quarterly Analysis of Average Assets, Liabilities and Shareholders’ Equity and
Net Interest Income on a Tax Equivalent Basis

	Three Months Ended
	September 30, 2024							June 30, 2024							September 30, 2023
	Average					Avg.		Average					Avg.		Average					Avg.
($ in thousands)	Balance		Interest			Rate		Balance		Interest			Rate		Balance		Interest			Rate
Assets
Interest earning assets:
Loans ⁽¹⁾⁽²⁾	$	50,126,963	$	786,704		6.28	%	$	50,020,901	$	770,987		6.17	%	$	50,019,414	$	753,662		6.03	%
Taxable investments ⁽³⁾		5,977,211		55,629		3.72			5,379,101		46,801		3.48			4,915,778		37,682		3.07
Tax-exempt investments ⁽¹⁾⁽³⁾		573,059		6,145		4.29			575,272		6,075		4.22			620,439		5,800		3.74
Interest bearing deposits with banks		974,417		13,385		5.49			797,676		10,902		5.47			1,246,934		17,113		5.49
Total interest earning assets		57,651,650		861,863		5.98			56,772,950		834,765		5.88			56,802,565		814,257		5.73
Other assets		4,590,372							4,745,689							4,589,123
Total assets	$	62,242,022						$	61,518,639						$	61,391,688
Liabilities and shareholders’ equity
Interest bearing liabilities:
Savings, NOW and money market deposits	$	25,017,504	$	235,371		3.76	%	$	24,848,266	$	231,597		3.73	%	$	23,016,737	$	201,916		3.51	%
Time deposits		14,233,209		174,741		4.91			13,311,381		160,442		4.82			14,880,311		164,336		4.42
Short-term borrowings		81,251		451		2.22			97,502		691		2.83			436,518		5,189		4.75
Long-term borrowings ⁽⁴⁾		3,324,992		39,488		4.75			3,319,195		39,051		4.71			2,495,512		29,159		4.67
Total interest bearing liabilities		42,656,956		450,051		4.22			41,576,344		431,781		4.15			40,829,078		400,600		3.92
Non-interest bearing deposits		11,158,521							11,223,562							11,951,398
Other liabilities		1,563,990							1,964,752							2,005,426
Shareholders’ equity		6,862,555							6,753,981							6,605,786
Total liabilities and shareholders’ equity	$	62,242,022						$	61,518,639						$	61,391,688

Net interest income/interest rate spread ⁽⁵⁾			$	411,812		1.76	%			$	402,984		1.73	%			$	413,657		1.81	%
Tax equivalent adjustment				(1,314	)						(1,299	)						(1,239	)
Net interest income, as reported			$	410,498						$	401,685						$	412,418
Net interest margin ⁽⁶⁾						2.85							2.83							2.90
Tax equivalent effect						0.01							0.01							0.01
Net interest margin on a fully tax equivalent basis ⁽⁶⁾						2.86	%						2.84	%						2.91	%

_________

(1)	Interest income is presented on a tax equivalent basis using a 21 percent federal tax rate.
(2)	Loans are stated net of unearned income and include non-accrual loans.
(3)	The yield for securities that are classified as available for sale is based on the average historical amortized cost.
(4)	Includes junior subordinated debentures issued to capital trusts which are presented separately on the consolidated statements of condition.
(5)	Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.
(6)	Net interest income as a percentage of total average interest earning assets.

SHAREHOLDERS RELATIONS
Requests for copies of reports and/or other inquiries should be directed to Tina Zarkadas, Assistant Vice President, Shareholder Relations Specialist, Valley National Bancorp, 70 Speedwell Avenue, Morristown, New Jersey, 07960, by telephone at (973) 305-3380, by fax at (973) 305-1364 or by e-mail at tzarkadas@valley.com.

Contact:		Michael D. Hagedorn
		Senior Executive Vice President and
		Chief Financial Officer
		973-872-4885

The MIL Network –

January 25, 2025

MIL-OSI Economics: Joint report explores scope for coordinated approaches on climate action, carbon pricing, and policy spillovers

Source: World Trade Organization

The report was presented on the 23rd of October by the Joint Task Force on Climate Action, Carbon Pricing, and Policy Spillovers, convened by the World Trade Organization and joined by the International Monetary Fund, the Organisation for Economic Co-operation and Development, United Nations Trade and Development (UNCTAD), and the World Bank.

Entitled “Working Together for Better Climate Action: Carbon Pricing, Policy Spillovers, and Global Climate Goals,” the report arrives at a time when countries around the world are scaling up actions to curb climate change. Mitigation policies are on the rise, including carbon pricing policies, with 75 carbon taxes and emission trading schemes currently in effect worldwide, covering approximately 24 per cent of global emissions

The report stresses that climate action needs to be stepped up to meet global emission reduction targets, while contributing to broader development goals. It also makes four important contributions to that end:

The report provides a common understanding of carbon pricing metrics to improve transparency on how countries are shifting incentives for decarbonization.
The report examines the composition of climate change mitigation policies, emphasizing the important role of carbon pricing as a cost-effective instrument that also raises revenues.
It outlines how international organizations can support the coordination of policies to foster positive and limit negative cross-border spillovers from climate change mitigation policies. The report also analyses the advantages and disadvantages of carbon border adjustment policies, including their impact on developing countries.
It shows how such coordination can help to scale up climate action by closing the transparency, implementation and ambition gaps.

The report also makes clear that international organizations’ future work can help fill important knowledge gaps. These include a need for more granular and better data on embedded carbon prices and embedded emissions, the design of border adjustment policies and their interoperability, and other approaches to enhance cooperation to increase ambition and ensure a just transition for all.

WTO Director-General Ngozi Okonjo-Iweala said: “Trade-related climate policies are on the rise, with over 5,500 measures linked to climate objectives notified to the WTO from 2009-2022. Such policies lead to cross-border spillovers which can increase trade tensions and retaliatory trade actions. Future work by international organizations should focus on concrete ways to come to the coordination of more ambitious carbon pricing policies which help to close the climate action gap and address their cross-border spillovers. This may require a framework to ensure interoperability between carbon pricing and other climate mitigation policies.”

IMF Managing Director Kristalina Georgieva said: “This joint report of the five institutions highlights why carbon pricing and equivalent policies are important to scale up climate action. Global emissions need to be cut urgently to put the world on track to achieve the Paris goals and global ambition needs to be doubled to quadrupled. Carbon pricing should be an integral part of a well-designed policy mix, complemented with public investment support and sectoral policies, and international coordination on mitigation action could unlock progress.”

OECD Secretary-General Mathias Cormann said: “Countries currently take different approaches to reduce emissions, but achieving net zero requires us to align these efforts for a truly global impact. The OECD’s Inclusive Forum on Carbon Mitigation Approaches, now with 59 members, is bringing together national perspectives and building a common understanding of climate policies and their effects. More coherent and better-coordinated global mitigation policies can help prevent negative cross-border impacts such as carbon leakage or trade distortions, while maximizing opportunities for innovation, cost savings and shared benefits from the climate transition.”

UNCTAD Secretary-General Rebeca Grynspan stated: “To ensure a just and green transition, UNCTAD encourages and supports developing countries in crafting the right policy mix to advance climate mitigation. We are strengthening our research and providing a safe space for dialogue to ensure that climate-related measures, including Border Carbon Adjustments mechanisms (BCAs) are evidence based and minimize negative spillovers on developing countries and other sustainable development goals. This is especially critical for less advanced economies, which often have limited productive capacity, infrastructure for monitoring, verification, reporting, and fiscal space. We are committed to helping developing countries decarbonize and diversify their economies by seizing environmental-related export opportunities and working with our member states to reduce the compliance and trade costs associated with these transitions.”

Axel van Trotsenburg, World Bank’s Senior Managing Director (SMD), said: “Through its technical assistance and financing, the World Bank helps countries make sure climate policies are tailored to each country’s context, capacities, political constraints, and development priorities. We think carbon pricing can play a central role in these policies, because it provides the right incentive for the private sector and creates public revenues to support broad development progress and help vulnerable populations manage the green energy transition. But with every country introducing their own climate policies, there is also a growing need for more cooperation and coordination. The product of in-depth exchanges across five international organizations, this report provides concrete ideas to make sure climate policies are designed in ways that benefit lower-income economies and help them accelerate their development, create jobs, and participate in global value chains.”

The report is available here.

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MIL OSI Economics –

January 25, 2025

MIL-OSI Economics: RBI imposes monetary penalty on The Aurangabad District Central Co-operative Bank Limited, Bihar

Source: Reserve Bank of India

The Reserve Bank of India (RBI) has, by an order dated October 22, 2024, imposed a monetary penalty of ₹1.25 lakh (Rupees One Lakh Twenty Five Thousand only) on The Aurangabad District Central Co-operative Bank Ltd., Bihar (the bank) for contravention of the provisions of section 26A read with section 56 of the Banking Regulation Act, 1949 (BR Act) and non-compliance with certain directions issued by RBI on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’. This penalty has been imposed in exercise of powers vested in RBI, conferred under section 47A(1)(c) read with sections 46(4)(i) and 56 of BR Act and section 25 of the Credit Information Companies (Regulation) Act, 2005.

The statutory inspection of the bank was conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as on March 31, 2023. Based on supervisory findings of contravention of statutory provisions / non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions.

After considering the bank’s reply to the notice and oral submissions made by it during the personal hearing, RBI found, inter alia, that the following charges against the Bank were sustained, warranting imposition of monetary penalty:

The bank had failed to:

transfer eligible amounts to the Depositor Education and Awareness Fund within the prescribed period; and
submit credit information of its borrowers to any of the four Credit Information Companies.

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

(Puneet Pancholy)
Chief General Manager

Press Release: 2024-2025/1363

MIL OSI Economics –

January 25, 2025

MIL-OSI Submissions: WHO – Regional health leaders agree to improve financing to achieve universal health coverage, prioritize digital health

Source: World Health Organization (WHO)

MANILA, 24 October 2024 – Health leaders from nations across Asia and the Pacific today endorsed action frameworks on health financing and digital health at the seventy-fifth session of the World Health Organization (WHO) Regional Committee for the Western Pacific.

Health financing to achieve universal health coverage and sustainable development

Despite recent reforms in health financing, public health spending in the Western Pacific Region remains inadequate to meet growing needs. In many countries, current policies have not yet achieved the goals of equitable service access and financial protection. As a result, families are being pushed into poverty from the financial burden of paying for health services. In 2019 alone, more than 300 million people in the Western Pacific faced catastrophic health costs. Medicines and outpatient care are the primary drivers of out-of-pocket spending, exposing critical coverage gaps in primary health care (PHC) systems.

Increasing public health spending, prioritizing PHC and adopting comprehensive financing strategies to promote health in national development are essential to achieving universal health coverage(UHCUHC) and sustainable development.

The Regional Committee, WHO’s governing body in the Western Pacific, today endorsed the Regional Action Framework for Health Financing to Achieve Universal Health Coverage and Sustainable Development in the Western Pacific. The Framework aims to improve health financing through five action domains: 1) greater reliance on public funding for health; 2) more equitable and efficient health spending; 3) financing PHC now and into the future; 4) strengthening governance for health financing; and 5) promoting health for all in economic and social policy.

Accelerating digital health transformation

The Regional Committee also considered digital health – the use of information and communications technology to manage health and promote well-being – which is playing an increasingly significant role in transforming health care by leveraging technology to increase access to care. Digital health is growing rapidly in the Western Pacific Region. However, these changes bring about new challenges related to governance, coordination with a wide range of actors, sustainable financing, and the ethical and secure use of digital health tools and data.

The Regional Action Framework on Digital Health in the Western Pacificendorsed by the Region’s health leaders today will guide countries and areas in developing national digital health plans. It will also facilitate collaboration with WHO to advance national digital health strategies aligned with country priorities. The Framework calls on countries to prioritize governance, socio-technical infrastructure, financing and economics, digital health solutions, and data in strengthening health systems in the era of digital transformation.

Achieving transformative primary health care

Although more than 45 years have passed since primary health care (PHC) was identified as the cornerstone for achieving Health for All in theDeclaration of Alma-Ata, many health systems in our Region remain hospital-centric, while PHC is understaffed and under resourced. With countries facing rapidly ageing populations, an increased burden of NCDs and health security risks, a worsening economic outlook and other changes, transformative PHC is more critical than ever.

In a panel discussion held at the Regional Committee on Tuesday, delegates from Cambodia and Singapore and a representative of the Asian Development Bank discussed how a transformative PHC approach – which emphasizes keeping people healthy rather than only treating the sick, and the importance of active community engagement and effective communication – can improve health outcomes.

Recognizing the need to support countries in achieving transformative PHC, the Regional Committee in 2022 endorsed the Regional Framework on the Future of Primary Health Care in the Western Pacific. It highlights five strategic areas for health system transformation, covering models of service delivery, individual and community empowerment, the health workforce, health financing and enabling healthy environments. WHO is supporting countries with implementation of the Regional Framework.

Improving oral health

On Wednesday, delegates from Malaysia, Tonga and Vanuatu participated in a panel discussion on oral health. In the Western Pacific Region, the rate of oral diseases such as tooth decay, gum disease and tooth loss has grown by 30% over the past 30 years. One in five adults over the age of 60 has lost all their teeth, causing difficulty in eating, poor nutrition and a lower quality of life.

Oral diseases disproportionally affect poor and disadvantaged populations. But they are mostly preventable and can be treated in their early stages. Left unaddressed, they cause pain and reduce the quality of life of individuals affected. At the population level, they add to the burden of noncommunicable diseases and impact health systems and economies in the Region.

The WHO Global Strategy and Action Plan on Oral Health (2023–2030)was developed in response to a 2021 World Health Assembly resolution calling for a shift in oral health policy planning from traditional restorative dental care to a focus on promoting oral health and preventing oral diseases. WHO is working to accelerate the implementation of the Global Strategy in the Western Pacific, making oral health an integral part of universal health coverage and improving access to essential oral health services for everyone, especially the vulnerable.

Accreditation of non-State actors to attend Regional Committee meetings

The Regional Committee for the Western Pacific also adopted a decision to formalize the procedure for non-State actors that are not already in official relations with WHO to be accredited as observers at their meetings. The decision highlights the valuable role that non-State actors play in society, recognizes their contributions to advancing public health and to supporting the achievement of WHO’s strategic objectives. It marks an important step towards strengthening regional health governance, and a more inclusive approach to knowledge sharing, dialogue and health policy making.

Expected closure of the session, time and place of next year’s meeting

The seventy-fifth session of the Regional Committee for the Western Pacific is expected to conclude tomorrow.

Notes:

The seventy-fifth session of the Western Pacific Regional Committee began on 21 October and is scheduled to conclude on 25 October at WHO’s Regional Office for the Western Pacific in Manila, Philippines. The agenda and timetable are available online. A livestream of proceedings, all other official documents, as well as fact sheets and videos on the issues to be addressed can be accessed here. For real-time updates, follow @WHOWPRO on Facebook, X, Instagram and YouTube and the hashtag #RCM75.

Working with 194 Member States across six regions, WHO is the United Nations specialized agency responsible for public health. Each WHO region has a regional committee – a governing body composed of ministers of health and senior officials from Member States. Each regional committee meets annually to agree on health actions and to chart priorities for WHO’s work.

The WHO Western Pacific Region is home to more than 1.9 billion people across 37 countries and areas: American Samoa (United States of America), Australia, Brunei Darussalam, Cambodia, China, Cook Islands, Fiji, French Polynesia (France), Guam (United States of America), Hong Kong SAR (China), Japan, Kiribati, the Lao People’s Democratic Republic, Macao SAR (China), Malaysia, the Marshall Islands, the Federated States of Micronesia, Mongolia, Nauru, New Caledonia (France), New Zealand, Niue, the Commonwealth of the Northern Mariana Islands (United States of America), Palau, Papua New Guinea, the Philippines, Pitcairn Islands (United Kingdom of Great Britain and Northern Ireland), the Republic of Korea, Samoa, Singapore, Solomon Islands, Tokelau, Tonga, Tuvalu, Vanuatu and Viet Nam, Wallis and Futuna (France).

MIL OSI – Submitted News –

January 25, 2025

MIL-OSI United Nations: Secretary-General’s remarks to the 16th BRICS Summit [as delivered]

Source: United Nations secretary general

Excellencies, ladies and gentlemen,

I am grateful to participate in the 16th BRICS Summit.

Collectively, your countries represent nearly half of the world’s population.

And I salute your valuable commitment and support for international problem-solving as clearly reflected in your theme this year.

But no single group and no single country can act alone or in isolation.

It takes a community of nations, working as one global family, to address global challenges.

Challenges like the rising number of conflicts.

The devastation of climate change, pollution and biodiversity loss…

Rising inequalities and lingering poverty and hunger…

A debt crisis that threatens to smother plans for the future of many vulnerable countries…

The fact that fewer than one-fifth of the Sustainable Development Goals are on-track…

A growing digital divide, and a lack of guardrails for artificial intelligence and other frontier technologies…

And a lack of representation and voice for developing countries at global decision-making tables. From the Security Council to the Bretton-Woods institution and beyond. This must change.

September’s Summit of the Future offered a roadmap for strengthening multilateralism, and advancing peace, sustainable development and human rights.

I see four areas for action.

First — finance.

Today’s international financial system is not offering many vulnerable countries the safety net or level of support they need.

The Pact for the Future calls for accelerating reform of the international financial architecture that is outdated, ineffective and unfair.

And it includes a commitment to move forward with an SDG Stimulus to change the business model to substantially increase the lending capacity of Multilateral Development Banks to developing countries.

To recycle more Special Drawing Rights…

To restructure loans for countries drowning in debt…

And to mobilize more international and domestic resources, public and private, for vital investments in developing countries.

Next year’s Conference on Financing for Development and the Summit on Social Development are two milestones to carry these efforts forward.

We must also recognize the importance of South-South cooperation.

It doesn’t replace the commitments and obligations of developed countries.

But it is providing a growing contribution to supporting developing countries in overcoming obstacles to reaching the SDGs.

Second — climate.

Every country has committed to limit temperature rise to 1.5 degrees Celsius.

That requires dramatic action to reduce emissions now — with the G20 in the lead.

COP29 is just weeks away.

That starts the clock for countries to produce new Nationally Determined Contributions plans with 2035 targets that are aligned with the 1.5 degree goal.

COP29 must deliver an ambitious and credible outcome on the new climate finance goal.

Developed countries must also keep promises to double adaptation finance, and ensure meaningful contributions to the Loss and Damage Fund, which was not the case when it was created.

Third — technology.

Every country must be able to access the benefits of technology.

The Global Digital Compact commits to enhanced global cooperation and capacity-building.

It includes the first truly universal agreement on the international governance of Artificial Intelligence to give every country a seat at the AI table.

It calls for an independent international Scientific Panel on AI and initiating a global dialogue on its governance within the United Nations with the participations of all countries.

And it requests options for innovative financing for AI capacity-building in developing countries.

And fourth — peace.

We must strengthen and update the machinery of peace.

This includes reforms to make the United Nations Security Council reflective of today’s world.

The Pact for the Future includes important steps on disarmament — including the first multilateral agreement on nuclear disarmament in more than a decade — and steps that address the weaponization of outer space and the use of lethal autonomous weapons.

Across the board, we need peace.

We need peace in Gaza with an immediate cease-fire, the immediate and unconditional release of all hostages, the effective delivery of humanitarian aid without obstacles, and we need to make irreversible progress to end the occupation and establish the two state solution, as it was recently reaffirmed once again by a UN General Assembly resolution.

We need peace in Lebanon with an immediate cessation of hostilities, moving to the full implementation of Security Council resolution 1701.

We need peace in Ukraine. A just peace in line with the UN Charter, international law and General Assembly resolutions.

We need peace in Sudan, with all parties silencing their guns and committing to a path towards sustainable peace.

Those were the messages I have delivered to the High-Level segment of the General Assembly in September in New York. Unfortunately, they remain valid here and now.

Everywhere, we must uphold the values of the UN Charter, the rule of law, and the principles of sovereignty, territorial integrity and political independence of all States.

Excellencies, ladies and gentlemen,

The Summit of the Future charted a course to strengthen multilateralism for global development and security.

Now we must turn words into deeds and we believe BRICS can play a very important role in this direction.

Thank you.

MIL OSI United Nations News –

January 25, 2025

MIL-OSI: Columbia Financial, Inc. Announces Financial Results for the Third Quarter Ended September 30, 2024

Source: GlobeNewswire (MIL-OSI)

FAIR LAWN, N.J., Oct. 24, 2024 (GLOBE NEWSWIRE) — Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK), the mid-tier holding company for Columbia Bank (“Columbia”), reported net income of $6.2 million, or $0.06 per basic and diluted share, for the quarter ended September 30, 2024, as compared to $9.1 million, or $0.09 per basic and diluted share, for the quarter ended September 30, 2023. The income for the quarter ended September 30, 2024 reflected lower net interest income, mainly due to an increase in interest expense, and higher provision for credit losses, partially offset by higher non-interest income and lower income tax expense.

For the nine months ended September 30, 2024, the Company reported net income of $9.6 million, or $0.09 per basic and diluted share, as compared to $29.5 million, or $0.29 per basic and diluted share, for the nine months ended September 30, 2023. Earnings for the nine months ended September 30, 2024 reflected lower net interest income, mainly due to an increase in interest expense, and higher provision for credit losses, partially offset by higher non-interest income and lower income tax expense. Non-interest income for the 2023 period included a $10.8 million loss on securities transactions.

Mr. Thomas J. Kemly, President and Chief Executive Officer commented: “The third quarter earnings have been challenged by continuing pressure on funding costs. Our net interest margin, which has increased 9 basis points since the first quarter of 2024, and our expense management, we believe, will contribute to improved earnings on a go forward basis. The Company’s balance sheet and capital remain strong. We successfully closed the merger and performed the system conversion of Freehold Bank into Columbia Bank in October 2024. This was the final step of our fourth completed merger over the last five years.”

Results of Operations for the Three Months Ended September 30, 2024 and September 30, 2023

Net income of $6.2 million was recorded for the quarter ended September 30, 2024, a decrease of $2.9 million, or 32.3%, compared to $9.1 million for the quarter ended September 30, 2023. The decrease in net income was primarily attributable to a $3.2 million decrease in net interest income, and a $1.7 million increase in provision for credit losses, partially offset by a $376,000 increase in non-interest income, and a $1.6 million decrease in income tax expense.

Net interest income was $45.3 million for the quarter ended September 30, 2024, a decrease of $3.2 million, or 6.7%, from $48.5 million for the quarter ended September 30, 2023. The decrease in net interest income was primarily attributable to a $20.7 million increase in interest expense on deposits and borrowings, partially offset by a $17.5 million increase in interest income. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields due to market interest rate increases that occurred throughout 2023, and adjustable rate securities and loans tied to various indexes that repriced higher in the 2024 period. The 50 basis point decrease in market rates in September 2024 did not significantly impact the 2024 period results. The increase in interest expense on deposits was driven by the 2023 rate increases and an increase in the average balance of interest-bearing deposits, coupled with the continued intense competition for deposits in the market and the repricing of existing deposits into higher cost products. The increase in interest expense on borrowings was also impacted by an increase in the average balance of borrowings and the increase in interest rates for new borrowings. Prepayment penalties, which are included in interest income on loans, totaled $171,000 for the quarter ended September 30, 2024, compared to $83,000 for the quarter ended September 30, 2023.

The average yield on loans for the quarter ended September 30, 2024 increased 53 basis points to 5.00%, as compared to 4.47% for the quarter ended September 30, 2023, as interest income was influenced by rising interest rates and the average balance of loans. The average yield on securities for the quarter ended September 30, 2024 increased 53 basis points to 2.90%, as compared to 2.37% for the quarter ended September 30, 2023, as new securities purchased during the 2024 period were at higher rates. The average yield on other interest-earning assets for the quarter ended September 30, 2024 increased 81 basis points to 6.72%, as compared to 5.91% for the quarter ended September 30, 2023, due to the rise in average balances and interest rates paid on cash balances and an increase in the dividend rate paid on Federal Home Loan Bank stock.

Total interest expense was $70.6 million for the quarter ended September 30, 2024, an increase of $20.7 million, or 41.6%, from $49.9 million for the quarter ended September 30, 2023. The increase in interest expense was primarily attributable to a 90 basis point increase in the average cost of interest-bearing deposits, coupled with an increase in the average balance of interest-bearing deposits, along with a 17 basis point increase in the average cost of borrowings, coupled with an increase in the average balance of borrowings. Interest expense on deposits increased $16.3 million, or 45.3%, and interest expense on borrowings increased $4.5 million, or 31.9%.

The Company’s net interest margin for the quarter ended September 30, 2024 decreased 22 basis points to 1.84%, when compared to 2.06% for the quarter ended September 30, 2023. The weighted average yield on interest-earning assets increased 53 basis points to 4.70% for the quarter ended September 30, 2024, as compared to 4.17% for the quarter ended September 30, 2023. The average cost of interest-bearing liabilities increased 82 basis points to 3.52% for the quarter ended September 30, 2024, as compared to 2.70% for the quarter ended September 30, 2023. The increase in yields for the quarter ended September 30, 2024 was due to the impact of market interest rate increases in 2023. The net interest margin decreased for the quarter ended September 30, 2024, as the increase in the average cost of interest-bearing liabilities outweighed the increase in the average yield on interest-earning assets. The Company’s net interest margin for the quarter ended September 30, 2024 when compared to the quarter ended March 31, 2024 increased 9 basis points from 1.75% to 1.84%.

The provision for credit losses for the quarter ended September 30, 2024 was $4.1 million, an increase of $1.7 million, from $2.4 million for the quarter ended September 30, 2023. The increase in provision for credit losses during the quarter was primarily attributable to net charge-offs totaling $2.7 million and an increase in the loan performance qualitative factors.

Non-interest income was $9.0 million for the quarter ended September 30, 2024, an increase of $376,000, from $8.6 million for the quarter ended September 30, 2023. The increase was primarily attributable to an increase of $347,000 in demand deposit account fees, mainly related to commercial account treasury services.

Non-interest expense was $42.8 million for the quarter ended September 30, 2024, a decrease of $76,000, from $42.9 million for the quarter ended September 30, 2023. The decrease was primarily attributable to a decrease in compensation and employee benefits expense of $1.0 million, partially offset by an increase in data processing fees of $666,000, and federal deposit insurance premiums of $317,000. The decrease in compensation and employee benefits expense was the result of workforce reduction and lower incentive compensation related to employee cost cutting strategies implemented during 2023 and 2024. Data processing and software expenses increased due to costs related to cybersecurity and technology enhancements, and federal deposit insurance premiums increased due to the 2024 quarter including an increase in a one-time special assessment charge.

Income tax expense was $1.1 million for the quarter ended September 30, 2024, a decrease of $1.6 million, as compared to income tax expense of $2.7 million for the quarter ended September 30, 2023, mainly due to a decrease in pre-tax income. The Company’s effective tax rate was 15.5% and 22.9% for the quarters ended September 30, 2024 and 2023, respectively. The effective tax rate for the 2024 quarter was primarily impacted by permanent income tax differences.

Results of Operations for the Nine Months Ended September 30, 2024 and September 30, 2023

Net income of $9.6 million was recorded for the nine months ended September 30, 2024, a decrease of $19.9 million, or 67.6%, compared to $29.5 million for the nine months ended September 30, 2023. The decrease in net income was primarily attributable to a $29.0 million decrease in net interest income and a $7.9 million increase in provision for credit losses, partially offset by a $9.5 million increase in non-interest income and a $7.8 million decrease in income tax expense.

Net interest income was $131.6 million for the nine months ended September 30, 2024, a decrease of $29.0 million, or 18.1%, from $160.5 million for the nine months ended September 30, 2023. The decrease in net interest income was primarily attributable to a $79.4 million increase in interest expense on deposits and borrowings, partially offset by a $50.4 million increase in interest income. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields due to market interest rate increases that occurred throughout 2023, and adjustable rate securities and loans tied to various indexes that repriced higher in the 2024 period. The 50 basis point decrease in market rates in September 2024 did not significantly impact the 2024 period results. The increase in interest expense on deposits was driven by the 2023 rate increases and an increase in the average balance of interest-bearing deposits, coupled with the continued intense competition for deposits in the market and the repricing of existing deposits into higher cost products. The increase in interest expense on borrowings was also impacted by an increase in the average balance of borrowings and the increase in interest rates for new borrowings. Prepayment penalties, which are included in interest income on loans, totaled $875,000 for the nine months ended September 30, 2024, compared to $339,000 for the nine months ended September 30, 2023.

The average yield on loans for the nine months ended September 30, 2024 increased 55 basis points to 4.91%, as compared to 4.36% for the nine months ended September 30, 2023, as interest income was influenced by higher interest rates and loan growth. The average yield on securities for the nine months ended September 30, 2024 increased 40 basis points to 2.82%, as compared to 2.42% for the nine months ended September 30, 2023, as a number of adjustable rate securities tied to various indexes repriced higher during the nine months, and new securities purchased during the 2024 period were at higher yields. The average yield on other interest-earning assets for the nine months ended September 30, 2024 increased 90 basis points to 6.35%, as compared to 5.45% for the nine months ended September 30, 2023, due to the rise in average balances and interest rates paid on cash balances and an increase in the dividend rate paid on Federal Home Loan Bank stock.

Total interest expense was $206.2 million for the nine months ended September 30, 2024, an increase of $79.4 million, 62.5%, from $126.9 million for the nine months ended September 30, 2023. The increase in interest expense was primarily attributable to a 134 basis point increase in the average cost of interest-bearing deposits, coupled with an increase in the average balance of interest-bearing deposits, along with a 25 basis point increase in the average cost of borrowings, and an increase in the average balance of borrowings. Interest expense on deposits increased $68.7 million, or 84.1%, and interest expense on borrowings increased $10.6 million, or 23.6%.

The Company’s net interest margin for the nine months ended September 30, 2024 decreased 47 basis points to 1.80%, when compared to 2.27% for the nine months ended September 30, 2023. The weighted average yield on interest-earning assets increased 55 basis points to 4.61% for the nine months ended September 30, 2024, as compared to 4.06% for the nine months ended September 30, 2023. The average cost of interest-bearing liabilities increased 118 basis points to 3.47% for the nine months ended September 30, 2024, as compared to 2.29% for the nine months ended September 30, 2023. The increase in yields for the nine months ended September 30, 2024 was due to the impact of market interest rate increases between periods. The net interest margin decreased for the nine months ended September 30, 2024, as the increase in the average cost of interest-bearing liabilities outweighed the increase in the average yield on interest-earning assets.

The provision for credit losses for the nine months ended September 30, 2024 was $11.6 million, an increase of $7.9 million, from $3.6 million for the nine months ended September 30, 2023. The increase in provision for credit losses was primarily attributable to net charge-offs totaling $8.2 million and an increase in the loan performance qualitative factors.

Non-interest income was $25.6 million for the nine months ended September 30, 2024, an increase of $9.5 million, from $16.1 million for the nine months ended September 30, 2023. The increase was primarily attributable to a decrease in the loss on securities transactions of $9.6 million.

Non-interest expense was $134.7 million for the nine months ended September 30, 2024, an increase of $321,000, from $134.4 million for the nine months ended September 30, 2023. The increase was primarily attributable to an increase in federal deposit insurance premiums of $2.1 million, due to the 2024 period including an increase in a one-time special assessment charge. In addition, there was an increase in professional fees of $4.9 million, an increase in data processing and software expenses of $1.1 million, an increase in merger-related expense of $457,000, and an increase in other non-interest expense of $1.2 million, partially offset by a decrease in compensation and employee benefits expense of $9.5 million. Professional fees included an increase in legal, regulatory and compliance-related costs while data processing and software expenses increased due to costs related to cybersecurity and technology enhancements. The decrease in compensation and employee benefits expense was the result of workforce reduction and lower incentive compensation related to employee cost cutting strategies implemented during 2023 and 2024.

Income tax expense was $1.3 million for the nine months ended September 30, 2024, a decrease of $7.8 million, as compared to income tax expense of $9.1 million for the nine months ended September 30, 2023, mainly due to a decrease in pre-tax income. The Company’s effective tax rate was 11.8% and 23.6% for the nine months ended September 30, 2024 and 2023, respectively. The effective tax rate for the 2024 period was also impacted by permanent income tax differences.

Balance Sheet Summary

Total assets increased $40.9 million, or 0.4%, to $10.7 billion at September 30, 2024 as compared to $10.6 billion at December 31, 2023. The increase in total assets was primarily attributable to an increase in debt securities available for sale of $178.9 million, and an increase in other assets of $21.3 million, partially offset by a decrease in cash and cash equivalents of $139.7 million, and a decrease in loans receivable, net, of $20.7 million.

Cash and cash equivalents decreased $139.7 million, or 33.0%, to $283.5 million at September 30, 2024 from $423.2 million at December 31, 2023. The decrease was primarily attributable to purchases of securities of $283.5 million and repurchases of common stock under our stock repurchase program of $5.9 million, partially offset by proceeds from principal repayments on securities of $119.3 million, and repayments on loans receivable.

Debt securities available for sale increased $178.9 million, or 16.4%, to $1.3 billion at September 30, 2024 from $1.1 billion at December 31, 2023. The increase was attributable to the purchases of debt securities available for sale of $266.9 million, consisting primarily of U.S. government obligations and mortgage-backed securities, and a decrease in gross unrealized losses on securities of $34.3 million, partially offset by repayments on securities of $107.8 million, maturities of securities of $10.0 million, and the sale of one corporate debt security with a carrying value of $4.8 million, resulting in a loss of $1.3 million.

Loans receivable, net, decreased $20.7 million, or 0.3%, with a balance of $7.8 billion at both September 30, 2024 and December 31, 2023. One-to-four family real estate loans, multifamily loans, commercial real estate loans, and home equity loans and advances decreased $55.6 million, $10.2 million, $64.3 million, and $5.6 million, respectively, partially offset by increases in construction loans of $67.3 million and commercial business loans of $53.4 million. The allowance for credit losses for loans increased $3.4 million to $58.5 million at September 30, 2024 from $55.1 million at December 31, 2023.

Other assets increased $21.3 million or 6.9%, to $329.7 million at September 30, 2024 compared to $308.4 million at December 31, 2023, primarily due to a $10.4 million increase in the Company’s pension plan balance, as the return on plan assets outpaced the growth in the plan’s obligations and a $12.6 million increase in the Company’s collateral posting with certain of its derivative counterparties.

Total liabilities increased $2.1 million, or 0.02%, totaling $9.6 billion at both September 30, 2024 and December 31, 2023. The increase was primarily attributable to an increase in total deposits of $111.5 million, or 1.4%, partially offset by a decrease in borrowings of $108.1 million, or 7.1%. The increase in total deposits primarily consisted of an increase in certificates of deposit and interest-bearing demand deposits of $195.7 million, and $13.8 million, respectively, partially offset by decreases in non-interest-bearing demand deposits, money market accounts, and savings and club accounts of $31.2 million, $16.3 million, and $50.5 million, respectively. The Bank has priced select certificates of deposit accounts very competitively to the market to attract new customers. The $108.1 million decrease in borrowings was primarily driven by a net decrease in short-term borrowings of $167.8 million and repayments of $175.5 million in maturing long-term borrowings, partially offset by an increase in long-term borrowings of $235.2 million.

Total stockholders’ equity increased $38.8 million, or 3.7%, to $1.1 billion at September 30, 2024 as compared to $1.0 billion at December 31, 2023. The increase in total stockholders’ equity was primarily attributable to net income of $9.6 million, a $5.5 million increase in stock based compensation and an increase of $27.7 million in other comprehensive income, which includes changes in unrealized losses on debt securities available for sale and unrealized gains on swap contracts, net of taxes, included in other comprehensive income. These increases were partially offset by the repurchase of 365,116 shares of common stock at a cost of approximately $5.9 million, or $16.14 per share, under our stock repurchase program. Repurchases have been paused in order to retain capital.

Asset Quality

The Company’s non-performing loans at September 30, 2024 totaled $28.0 million, or 0.36% of total gross loans, as compared to $12.6 million, or 0.16% of total gross loans, at December 31, 2023. The $15.4 million increase in non-performing loans was primarily attributable to an increase in non-performing one-to-four family real estate loans of $4.2 million, an increase in non-performing commercial real estate loans of $6.7 million, and an increase in non-performing commercial business loans of $4.5 million. One borrower with an outstanding $5.7 million commercial real estate loan and a related $3.5 million commercial business loan was placed on non-accrual status, representing approximately 60% of the increase in non-performing loans during the 2024 period. This borrower is a healthcare facility that was acquired by another healthcare provider in 2024. The acquiring entity has strong cash flow, has guaranteed the commercial business loan and has provided cash collateral. The Company has the first lien on the healthcare facility which has a 2024 appraised value of approximately $18.5 million along with additional collateral. One commercial real estate loan for $2.0 million secured by a medical condominium was transferred to other real estate owned in May 2024, and a related commercial business loan to the same borrower for $54,000 was charged-off during the nine months ended September 30, 2024.

The increase in non-performing one-to-four family real estate loans was due to an increase in the number of loans from 17 non-performing loans at December 31, 2023 to 27 loans at September 30, 2024. Non-performing assets as a percentage of total assets totaled 0.28% and 0.12% at September 30, 2024 and December 31, 2023, respectively.

For the quarter ended September 30, 2024, net charge-offs totaled $2.7 million, as compared to $1.7 million in net charge-offs recorded for the quarter ended September 30, 2023. For the nine months ended September 30, 2024, net charge-offs totaled $8.2 million, as compared to $2.3 million in net charge-offs recorded for the nine months ended September 30, 2023. Net charge-offs recorded for the nine months ended September 30, 2024 included charge-offs related to 15 commercial business loans totaling $7.7 million. The majority of these loans have continued making monthly payments, and management expects additional recoveries from these borrowers on a go forward basis.

The Company’s allowance for credit losses on loans was $58.5 million, or 0.75% of total gross loans, at September 30, 2024, compared to $55.1 million, or 0.70% of total gross loans, at December 31, 2023.

Additional Liquidity, Loan, and Deposit Information

The Company services a diverse retail and commercial deposit base through its 68 branches. With approximately 215,000 accounts, the average deposit account balance was approximately $37,000 at September 30, 2024.

Deposit balances are summarized as follows:

	At September 30, 2024					At June 30, 2024
	Balance		Weighted Average Rate			Balance		Weighted Average Rate
	(Dollars in thousands)

Non-interest-bearing demand	$	1,406,152		—	%	$	1,405,441		—	%
Interest-bearing demand		1,980,298		2.41			1,904,483		2.37
Money market accounts		1,239,204		2.92			1,246,663		3.17
Savings and club deposits		649,858		0.79			673,031		0.83
Certificates of deposit		2,682,547		4.45			2,551,929		4.34
Total deposits	$	7,958,059		2.62	%	$	7,781,547		2.56	%

The Company continues to maintain strong liquidity and capital positions. The Company had no outstanding borrowings from the Federal Reserve Discount Window at September 30, 2024. As of September 30, 2024, the Company had immediate access to approximately $2.6 billion of funding, with additional unpledged loan collateral in excess of $1.8 billion.

At September 30, 2024, the Company’s non-performing commercial real estate loans totaled $9.4 million, or 0.12%, of the total loans receivable loan portfolio balance.

The following table presents multifamily real estate, owner occupied commercial real estate, and the components of investor owned commercial real estate loans included in the real estate loan portfolio.

	At September 30, 2024
	(Dollars in thousands)
	Balance		% of Gross Loans			Weighted Average Loan to Value Ratio			Weighted Average Debt Service Coverage
Multifamily Real Estate	$	1,399,000		17.8	%		61.0	%		1.62	x

Owner Occupied Commercial Real Estate	$	683,523		8.7	%		53.6	%		2.10	x

Investor Owned Commercial Real Estate:
Retail / Shopping centers	$	484,121		6.2	%		51.7	%		1.59	x
Mixed Use		211,853		2.7			58.1			1.61
Industrial / Warehouse		389,470		5.0			54.9			1.70
Non-Medical Office		197,768		2.5			54.2			1.64
Medical Office		126,947		1.6			57.9			1.50
Single Purpose		94,497		1.2			54.5			3.23
Other		124,580		1.6			52.0			1.67
Total	$	1,629,236		20.7	%		54.3	%		1.72	x

Total Multifamily and Commercial Real Estate Loans	$	3,711,759		47.2	%		56.7	%		1.75	x

As of September 30, 2024, the Company had less than $1.0 million in loan exposure to office or rent stabilized multifamily loans in New York City.

About Columbia Financial, Inc.

The consolidated financial results include the accounts of Columbia Financial, Inc., its wholly-owned subsidiary Columbia Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries. Columbia Financial, Inc. is a Delaware corporation organized as Columbia Bank’s mid-tier stock holding company. Columbia Financial, Inc. is a majority-owned subsidiary of Columbia Bank, MHC. Columbia Bank is a federally chartered savings bank headquartered in Fair Lawn, New Jersey that operates 68 full-service banking offices and offers traditional financial services to consumers and businesses in its market area.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “projects,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates, higher inflation and their impact on national and local economic conditions; changes in monetary and fiscal policies of the U.S. Treasury, the Board of Governors of the Federal Reserve System and other governmental entities; the impact of legal, judicial and regulatory proceedings or investigations, competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect a borrowers’ ability to service and repay the Company’s loans; the effect of acts of terrorism, war or pandemics,, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; changes in the value of securities in the Company’s portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and securities; legislative changes and changes in government regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s consolidated financial statements will become impaired; cyber-attacks, computer viruses and other technological risks that may breach the security of our systems and allow unauthorized access to confidential information; the inability of third party service providers to perform; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits and effectively manage liquidity; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy, or its integration of acquired financial institutions and businesses, and changes in assumptions used in making such forward-looking statements which are subject to numerous risks and uncertainties, including but not limited to, those set forth in Item 1A of the Company’s Annual Report on Form 10-K and those set forth in the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, all as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

Non-GAAP Financial Measures

Reported amounts are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. Specifically, the Company provides measures based on what it believes are its operating earnings on a consistent basis and excludes material non-routine operating items which affect the GAAP reporting of results of operations. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s core financial results for the periods presented. 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.

The Company also provides measurements and ratios based on tangible stockholders’ equity. These measures are commonly utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.

A reconciliation of GAAP to non-GAAP financial measures are included at the end of this press release. See “Reconciliation of GAAP to Non-GAAP Financial Measures”.


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES Consolidated Statements of Financial Condition (In thousands)

	September 30,		December 31,
	2024		2023
Assets	(Unaudited)
Cash and due from banks	$	283,391	$	423,140
Short-term investments		110		109
Total cash and cash equivalents		283,501		423,249

Debt securities available for sale, at fair value		1,272,464		1,093,557
Debt securities held to maturity, at amortized cost (fair value of $367,559, and $357,177 at September 30, 2024 and December 31, 2023, respectively)		401,331		401,154
Equity securities, at fair value		4,504		4,079
Federal Home Loan Bank stock		75,847		81,022

Loans receivable		7,857,190		7,874,537
Less: allowance for credit losses		58,495		55,096
Loans receivable, net		7,798,695		7,819,441

Accrued interest receivable		41,659		39,345
Office properties and equipment, net		82,248		83,577
Bank-owned life insurance		272,970		268,362
Goodwill and intangible assets		121,569		123,350
Other real estate owned		1,974		—
Other assets		329,741		308,432
Total assets	$	10,686,503	$	10,645,568

Liabilities and Stockholders’ Equity
Liabilities:
Deposits	$	7,958,059	$	7,846,556
Borrowings		1,420,640		1,528,695
Advance payments by borrowers for taxes and insurance		42,793		43,509
Accrued expenses and other liabilities		185,861		186,473
Total liabilities		9,607,353		9,605,233

Stockholders’ equity:
Total stockholders’ equity		1,079,150		1,040,335
Total liabilities and stockholders’ equity	$	10,686,503	$	10,645,568

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES Consolidated Statements of Income (In thousands, except per share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Interest income:	(Unaudited)						(Unaudited)
Loans receivable	$	97,863		$	87,548		$	286,064		$	252,026
Debt securities available for sale and equity securities		9,592			6,147			26,618			21,043
Debt securities held to maturity		2,616			2,434			7,487			7,338
Federal funds and interest-earning deposits		3,850			747			11,872			3,360
Federal Home Loan Bank stock dividends		1,966			1,529			5,759			3,661
Total interest income		115,887			98,405			337,800			287,428
Interest expense:
Deposits		52,196			35,918			150,440			81,733
Borrowings		18,416			13,965			55,805			45,158
Total interest expense		70,612			49,883			206,245			126,891

Net interest income		45,275			48,522			131,555			160,537

Provision for credit losses		4,103			2,379			11,575			3,632

Net interest income after provision for credit losses		41,172			46,143			119,980			156,905

Non-interest income:
Demand deposit account fees		1,695			1,348			4,698			3,815
Bank-owned life insurance		1,669			2,014			5,253			5,670
Title insurance fees		688			629			1,935			1,840
Loan fees and service charges		951			969			3,290			3,366
Loss on securities transactions		—			—			(1,256	)		(10,847	)
Change in fair value of equity securities		(27	)		(81	)		425			249
Gain on sale of loans		459			397			825			1,060
Other non-interest income		3,543			3,326			10,440			10,977
Total non-interest income		8,978			8,602			25,610			16,130

Non-interest expense:
Compensation and employee benefits		27,738			28,765			82,910			92,383
Occupancy		5,594			5,845			17,621			17,337
Federal deposit insurance premiums		1,518			1,201			5,752			3,624
Advertising		766			834			2,053			2,307
Professional fees		2,454			2,490			11,597			6,741
Data processing and software expenses		4,125			3,459			12,006			10,885
Merger-related expenses		23			14			737			280
Other non-interest expense, net		616			302			2,063			861
Total non-interest expense		42,834			42,910			134,739			134,418

Income before income tax expense		7,316			11,835			10,851			38,617

Income tax expense		1,131			2,705			1,281			9,100

Net income	$	6,185		$	9,130		$	9,570		$	29,517

Earnings per share-basic	$	0.06		$	0.09		$	0.09		$	0.29
Earnings per share-diluted	$	0.06		$	0.09		$	0.09		$	0.29
Weighted average shares outstanding-basic		101,623,160			101,968,294			101,673,619			102,993,215
Weighted average shares outstanding-diluted		101,832,048			102,097,491			101,813,253			103,257,616

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES Average Balances/Yields

	For the Three Months Ended September 30,
	2024								2023
	Average Balance			Interest and Dividends		Yield / Cost			Average Balance			Interest and Dividends		Yield / Cost
	(Dollars in thousands)
Interest-earnings assets:
Loans	$	7,791,131		$	97,863		5.00	%	$	7,763,368		$	87,548		4.47	%
Securities		1,676,781			12,208		2.90	%		1,437,944			8,581		2.37	%
Other interest-earning assets		344,560			5,816		6.72	%		152,900			2,276		5.91	%
Total interest-earning assets		9,812,472			115,887		4.70	%		9,354,212			98,405		4.17	%
Non-interest-earning assets		870,155								844,884
Total assets	$	10,682,627							$	10,199,096

Interest-bearing liabilities:
Interest-bearing demand	$	1,970,444		$	14,581		2.94	%	$	2,054,464		$	10,274		1.98	%
Money market accounts		1,250,676			8,256		2.63	%		1,049,277			7,763		2.94	%
Savings and club deposits		658,628			1,313		0.79	%		758,999			691		0.36	%
Certificates of deposit		2,589,190			28,046		4.31	%		2,296,573			17,190		2.97	%
Total interest-bearing deposits		6,468,938			52,196		3.21	%		6,159,313			35,918		2.31	%
FHLB advances		1,497,580			18,249		4.85	%		1,142,484			13,508		4.69	%
Notes payable		—			—		—	%		29,925			297		3.94	%
Junior subordinated debentures		7,028			164		9.28	%		7,315			160		8.68	%
Other borrowings		217			3		5.50	%		—			—		—	%
Total borrowings		1,504,825			18,416		4.87	%		1,179,724			13,965		4.70	%
Total interest-bearing liabilities		7,973,763		$	70,612		3.52	%		7,339,037		$	49,883		2.70	%

Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,411,622								1,498,726
Other non-interest-bearing liabilities		235,990								241,463
Total liabilities		9,621,375								9,079,226
Total stockholders’ equity		1,061,252								1,119,870
Total liabilities and stockholders’ equity	$	10,682,627							$	10,199,096

Net interest income				$	45,275							$	48,522
Interest rate spread							1.18	%							1.47	%
Net interest-earning assets	$	1,838,709							$	2,015,175
Net interest margin							1.84	%							2.06	%
Ratio of interest-earning assets to interest-bearing liabilities		123.06	%							127.46	%

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES Average Balances/Yields

	For the Nine Months Ended September 30,
	2024								2023
	Average Balance			Interest and Dividends		Yield / Cost			Average Balance			Interest and Dividends		Yield / Cost
	(Dollars in thousands)
Interest-earnings assets:
Loans	$	7,789,356		$	286,064		4.91	%	$	7,725,121		$	252,026		4.36	%
Securities		1,618,319			34,105		2.82	%		1,569,999			28,381		2.42	%
Other interest-earning assets		370,749			17,631		6.35	%		172,151			7,021		5.45	%
Total interest-earning assets		9,778,424			337,800		4.61	%		9,467,271			287,428		4.06	%
Non-interest-earning assets		864,036								835,459
Total assets	$	10,642,460							$	10,302,730

Interest-bearing liabilities:
Interest-bearing demand	$	1,972,520		$	41,673		2.82	%	$	2,244,978		$	25,465		1.52	%
Money market accounts		1,235,520			25,349		2.74	%		894,520			15,334		2.29	%
Savings and club deposits		673,930			3,920		0.78	%		819,804			1,384		0.23	%
Certificates of deposit		2,550,634			79,498		4.16	%		2,165,778			39,550		2.44	%
Total interest-bearing deposits		6,432,604			150,440		3.12	%		6,125,080			81,733		1.78	%
FHLB advances		1,507,045			55,316		4.90	%		1,254,637			43,806		4.67	%
Notes payable		—			—		—	%		30,148			895		3.97	%
Junior subordinated debentures		7,023			486		9.24	%		7,377			457		8.28	%
Other borrowings		73			3		5.49	%		—			—		—	%
Total borrowings		1,514,141			55,805		4.92	%		1,292,162			45,158		4.67	%
Total interest-bearing liabilities		7,946,745		$	206,245		3.47	%		7,417,242		$	126,891		2.29	%

Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,406,666								1,572,497
Other non-interest-bearing liabilities		243,848								225,629
Total liabilities		9,597,259								9,215,368
Total stockholders’ equity		1,045,201								1,087,362
Total liabilities and stockholders’ equity	$	10,642,460							$	10,302,730

Net interest income				$	131,555							$	160,537
Interest rate spread							1.15	%							1.77	%
Net interest-earning assets	$	1,831,679							$	2,050,029
Net interest margin							1.80	%							2.27	%
Ratio of interest-earning assets to interest-bearing liabilities		123.05	%							127.64	%

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES Components of Net Interest Rate Spread and Margin

	Average Yields/Costs by Quarter
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Yield on interest-earning assets:
Loans		5.00	%		4.93	%		4.79	%		4.66	%		4.47	%
Securities		2.90			2.89			2.65			2.58			2.37
Other interest-earning assets		6.72			6.30			6.06			5.64			5.91
Total interest-earning assets		4.70	%		4.64	%		4.50	%		4.39	%		4.17	%

Cost of interest-bearing liabilities:
Total interest-bearing deposits		3.21	%		3.14	%		3.02	%		2.76	%		2.31	%
Total borrowings		4.87			4.92			4.98			4.96			4.70
Total interest-bearing liabilities		3.52	%		3.49	%		3.38	%		3.18	%		2.70	%

Interest rate spread		1.18	%		1.15	%		1.12	%		1.21	%		1.47	%
Net interest margin		1.84	%		1.81	%		1.75	%		1.85	%		2.06	%

Ratio of interest-earning assets to interest-bearing liabilities		123.06	%		123.03	%		123.06	%		125.32	%		127.46	%

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES Selected Financial Highlights

	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
SELECTED FINANCIAL RATIOS ⁽¹⁾:
Return on average assets		0.23	%		0.17	%		(0.04	)%		0.25	%		0.36	%
Core return on average assets		0.23	%		0.20	%		0.02	%		0.38	%		0.36	%
Return on average equity		2.32	%		1.77	%		(0.45	)%		2.31	%		3.23	%
Core return on average equity		2.29	%		2.06	%		0.18	%		3.55	%		3.24	%
Core return on average tangible equity		2.58	%		2.34	%		0.20	%		3.99	%		3.64	%
Interest rate spread		1.18	%		1.15	%		1.12	%		1.21	%		1.47	%
Net interest margin		1.84	%		1.81	%		1.75	%		1.85	%		2.06	%
Non-interest income to average assets		0.33	%		0.35	%		0.28	%		0.42	%		0.33	%
Non-interest expense to average assets		1.60	%		1.74	%		1.74	%		1.80	%		1.67	%
Efficiency ratio		78.95	%		86.83	%		91.96	%		84.82	%		75.12	%
Core efficiency ratio		79.14	%		85.34	%		88.39	%		76.93	%		75.09	%
Average interest-earning assets to average interest-bearing liabilities		123.06	%		123.03	%		123.06	%		125.32	%		127.46	%
Net charge-offs to average outstanding loans		0.14	%		0.03	%		0.26	%		0.01	%		0.09	%

⁽¹⁾ Ratios are annualized when appropriate.

ASSET QUALITY DATA:
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
	(Dollars in thousands)

Non-accrual loans	$	28,014		$	25,281		$	22,935		$	12,618		$	15,150
90+ and still accruing		—			—			—			—			—
Non-performing loans		28,014			25,281			22,935			12,618			15,150
Real estate owned		1,974			1,974			—			—			—
Total non-performing assets	$	29,988		$	27,255		$	22,935		$	12,618		$	15,150

Non-performing loans to total gross loans		0.36	%		0.33	%		0.30	%		0.16	%		0.19	%
Non-performing assets to total assets		0.28	%		0.25	%		0.22	%		0.12	%		0.15	%
Allowance for credit losses on loans (“ACL”)	$	58,495		$	57,062		$	55,401		$	55,096		$	54,113
ACL to total non-performing loans		208.81	%		225.71	%		241.56	%		436.65	%		357.18	%
ACL to gross loans		0.75	%		0.73	%		0.71	%		0.70	%		0.69	%

LOAN DATA:
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
	(In thousands)
Real estate loans:
One-to-four family	$	2,737,190		$	2,764,177		$	2,778,932		$	2,792,833		$	2,791,939
Multifamily		1,399,000			1,409,316			1,429,369			1,409,187			1,417,233
Commercial real estate		2,312,759			2,316,252			2,318,178			2,377,077			2,374,488
Construction		510,439			462,880			437,566			443,094			390,940
Commercial business loans		586,447			554,768			538,260			533,041			546,750
Consumer loans:
Home equity loans and advances		261,041			260,427			260,786			266,632			267,016
Other consumer loans		2,877			2,689			2,601			2,801			2,586
Total gross loans		7,809,753			7,770,509			7,765,692			7,824,665			7,790,952
Purchased credit deteriorated loans		11,795			12,150			14,945			15,089			15,228
Net deferred loan costs, fees and purchased premiums and discounts		35,642			36,352			34,992			34,783			34,360
Allowance for credit losses		(58,495	)		(57,062	)		(55,401	)		(55,096	)		(54,113	)
Loans receivable, net	$	7,798,695		$	7,761,949		$	7,760,228		$	7,819,441		$	7,786,427

CAPITAL RATIOS:
	September 30,			December 31,
	2024 ⁽¹⁾			2023
Company:
Total capital (to risk-weighted assets)		14.37	%		14.08	%
Tier 1 capital (to risk-weighted assets)		13.59	%		13.32	%
Common equity tier 1 capital (to risk-weighted assets)		13.50	%		13.23	%
Tier 1 capital (to adjusted total assets)		10.16	%		10.04	%

Columbia Bank:
Total capital (to risk-weighted assets)		14.44	%		14.02	%
Tier 1 capital (to risk-weighted assets)		13.61	%		13.22	%
Common equity tier 1 capital (to risk-weighted assets)		13.61	%		13.22	%
Tier 1 capital (to adjusted total assets)		9.62	%		9.48	%

Freehold Bank:
Total capital (to risk-weighted assets)		25.98	%		22.49	%
Tier 1 capital (to risk-weighted assets)		25.41	%		21.81	%
Common equity tier 1 capital (to risk-weighted assets)		25.41	%		21.81	%
Tier 1 capital (to adjusted total assets)		16.63	%		15.27	%

⁽¹⁾ Estimated ratios at September 30, 2024

Reconciliation of GAAP to Non-GAAP Financial Measures

Book and Tangible Book Value per Share
	September 30,			December 31,
	2024			2023
	(Dollars in thousands)

Total stockholders’ equity	$	1,079,150		$	1,040,335
Less: goodwill		(110,715	)		(110,715	)
Less: core deposit intangible		(9,496	)		(11,155	)
Total tangible stockholders’ equity	$	958,939		$	918,465

Shares outstanding		104,725,436			104,918,905

Book value per share	$	10.30		$	9.92
Tangible book value per share	$	9.16		$	8.75

Reconciliation of Core Net Income
	Three Months Ended September 30,					Nine Months Ended September 30,
	2024			2023		2024		2023
	(In thousands)

Net income	$	6,185		$	9,130	$	9,570	$	29,517
Add: loss on securities transactions, net of tax		—			—		1,130		9,249
Less/add: FDIC special assessment, net of tax		(107	)		—		385		—
Add: severance expense from reduction in workforce, net of tax		—			—		67		1,390
Add: merger-related expenses, net of tax		19			11		691		241
Add: litigation expenses, net of tax		—			—		—		262
Core net income	$	6,097		$	9,141	$	11,843	$	40,659

Return on Average Assets
	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	(Dollars in thousands)

Net income	$	6,185		$	9,130		$	9,570		$	29,517

Average assets	$	10,682,627		$	10,199,096		$	10,642,460		$	10,302,730

Return on average assets		0.23	%		0.36	%		0.12	%		0.38	%

Core net income	$	6,097		$	9,141		$	11,843		$	40,659

Core return on average assets		0.23	%		0.36	%		0.15	%		0.53	%

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

Return on Average Equity
	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	(Dollars in thousands)

Total average stockholders’ equity	$	1,061,252		$	1,119,870		$	1,045,201		$	1,087,362
Add: loss on securities transactions, net of tax		—			—			1,130			9,249
Less/add: FDIC special assessment, net of tax		(107	)		—			385			—
Add: severance expense from reduction in workforce, net of tax		—			—			67			1,390
Add: merger-related expenses, net of tax		19			11			691			241
Add: litigation expenses, net of tax		—			—			—			262
Core average stockholders’ equity	$	1,061,164		$	1,119,881		$	1,047,474		$	1,098,504

Return on average equity		2.32	%		3.23	%		1.22	%		3.63	%

Core return on core average equity		2.29	%		3.24	%		1.51	%		4.95	%

Return on Average Tangible Equity
	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	(Dollars in thousands)

Total average stockholders’ equity	$	1,061,252		$	1,119,870		$	1,045,201		$	1,087,362
Less: average goodwill		(110,715	)		(110,715	)		(110,715	)		(110,715	)
Less: average core deposit intangible		(9,842	)		(12,109	)		(10,391	)		(12,989	)
Total average tangible stockholders’ equity	$	940,695		$	997,046		$	924,095		$	963,658

Core return on average tangible equity		2.58	%		3.64	%		1.71	%		5.64	%

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

Efficiency Ratios
	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	(Dollars in thousands)

Net interest income	$	45,275		$	48,522		$	131,555		$	160,537
Non-interest income		8,978			8,602			25,610			16,130
Total income	$	54,253		$	57,124		$	157,165		$	176,667

Non-interest expense	$	42,834		$	42,910		$	134,739		$	134,418

Efficiency ratio		78.95	%		75.12	%		85.73	%		76.09	%

Non-interest income	$	8,978		$	8,602		$	25,610		$	16,130
Add: loss on securities transactions		—			—			1,256			10,847
Core non-interest income	$	8,978		$	8,602		$	26,866		$	26,977

Non-interest expense	$	42,834		$	42,910		$	134,739		$	134,418
Add/less: FDIC special assessment, net		126			—			(439	)		—
Less: severance expense from reduction in workforce		—			—			(74	)		(1,605	)
Less: merger-related expenses		(23	)		(14	)		(737	)		(280	)
Less: litigation expenses		—			—			—			(317	)
Core non-interest expense	$	42,937		$	42,896		$	133,489		$	132,216

Core efficiency ratio		79.14	%		75.09	%		84.26	%		70.51	%

Columbia Financial, Inc.
Investor Relations Department
(833) 550-0717

The MIL Network –

January 25, 2025

MIL-OSI: Independent Bank Corporation Reports 2024 Third Quarter Results

Source: GlobeNewswire (MIL-OSI)

Third Quarter Highlights

Highlights for the third quarter of 2024 include:

Increases in net interest income of $0.5 million (or 4.9% annualized) from June 30, 2024;
An increase in tangible book value per share of $3.69 (22.3%) over the third quarter of 2023;
Net growth in core deposits of $100.1 million (or 8.9% annualized) from June 30, 2024;
Net growth in loans of $90.4 million (or 9.3% annualized) from June 30, 2024; and
The payment of a 24 cent per share dividend on common stock on August 15, 2024.

GRAND RAPIDS, Mich., Oct. 24, 2024 (GLOBE NEWSWIRE) — Independent Bank Corporation (NASDAQ: IBCP) reported third quarter 2024 net income of $13.8 million, or $0.65 per diluted share, versus net income of $17.5 million, or $0.83 per diluted share, in the prior-year period.

William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “I am proud of our team and very pleased with our third quarter 2024 results, driving organic growth on both sides of the balance sheet. Overall loans increased 9.3% (annualized), while core deposits are up 8.9% (annualized). We were able to generate net interest income growth on both a linked quarter basis and on a year over year quarterly basis. We believe that our expenses continue to be well managed, and we continue to see improved operational scale from strategic investments we have made in recent years. Our credit metrics continue to be excellent, with watch credits and non-performing assets near historic lows. These fundamentals continue to drive good growth in tangible book value per share (22%) compared to the prior year quarter. Based on a robust commercial loan pipeline, the past record of our core group of professionals and the on-going strategic initiative to add talented bankers to our team, we are optimistic about continuing these growth trends for the remainder of the year and into 2025.”

Significant items impacting comparable third quarter 2024 and 2023 results include the following:

Changes in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of $(4.2) million ($(0.16) per diluted share, after taxes) for the three-month period ended September 30, 2024, as compared to $1.6 million ($0.06 per diluted share, after taxes) for the three-months ended September 30, 2023.

Operating Results

The Company’s net interest income totaled $41.9 million during the third quarter of 2024, an increase of $2.4 million, or 6.2% from the year-ago period, and an increase of $0.5 million, or 1.2%, from the second quarter of 2024. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.37% during the third quarter of 2024, compared to 3.23% in the year-ago period, and 3.40% in the second quarter of 2024. The year-over-year quarterly increase in net interest income was due to an increase in average interest-earning assets and the net interest margin. The increase in net interest income compared to the linked quarter was due to an increase in average interest earning assets that was partially offset by a decrease in the net interest margin. Average interest-earning assets were $4.99 billion in the third quarter of 2024, compared to $4.89 billion in the year ago quarter and $4.89 billion in the second quarter of 2024.

Non-interest income totaled $9.5 million for the third quarter of 2024, compared to $15.6 million in the comparable prior year period. This change was primarily due to variances in mortgage banking related revenues.

Net gains on mortgage loans in the third quarters of 2024 and 2023, were approximately $2.2 million and $2.1 million, respectively. The comparative quarterly increase in net gains on mortgage loans was primarily due to an increase in both gain on sale margin on mortgage loans sold and a increase in the volume of mortgage loans sold.

Mortgage loan servicing, net, generated income (expense) of $(3.1) million and $2.7 million in the third quarters of 2024 and 2023, respectively. The significant variance in mortgage loan servicing, net is primarily due to changes in the fair value of capitalized mortgage loan servicing rights associated with changes in interest rates and the associated expected future prepayment levels and expected float rates. Mortgage loan servicing, net activity is summarized in the following table:

	Three months ended						Nine months ended
	9/30/2024			9/30/2023			9/30/2024			9/30/2023
	(In thousands)
Mortgage loan servicing, net:
Revenue, net	$	2,248		$	2,197		$	6,681		$	6,612
Fair value change due to price		(4,155	)		1,556			(1,979	)		3,364
Fair value change due to pay-downs		(1,223	)		(1,085	)		(3,016	)		(2,908	)
Total	$	(3,130	)	$	2,668		$	1,686		$	7,068

Non-interest expenses totaled $32.6 million in the third quarter of 2024, compared to $32.0 million in the year-ago period.

The Company recorded income tax expense of $3.5 million in the third quarter of 2024. This compares to an income tax expense of $4.1 million in the third quarter of 2023. The changes in income tax expense principally reflect changes in pre-tax earnings in 2024 relative to 2023.

Asset Quality

A breakdown of non-performing loans by loan type is as follows:

	9/30/2024			12/31/2023			9/30/2023
Loan Type	(Dollars in thousands)
Commercial	$	59		$	28		$	31
Mortgage		6,525			6,425			6,137
Installment		666			970			801
Sub total		7,250			7,423			6,969
Less – government guaranteed loans		2,102			2,191			2,254
Total non-performing loans	$	5,148		$	5,232		$	4,715
Ratio of non-performing loans to total portfolio loans		0.13	%		0.14	%		0.13	%
Ratio of non-performing assets to total assets		0.11	%		0.11	%		0.10	%
Ratio of allowance for credit losses to total non-performing loans		1115.85	%		1044.69	%		1176.99	%

The provision for credit losses was an expense of $1.49 million and $1.35 million in the third quarters of 2024 and 2023, respectively. We recorded loan net charge offs (recoveries) of $0.31 million and $(0.18) million in the third quarters of 2024 and 2023, respectively. At September 30, 2024, the allowance for credit losses for loans totaled $57.4 million, or 1.46% of total portfolio loans compared to $54.7 million, or 1.44% of total portfolio loans at December 31, 2023.

Balance Sheet, Capital and Liquidity

Total assets were $5.26 billion at September 30, 2024, a decrease of $4.5 million from December 31, 2023. Loans, excluding loans held for sale, were $3.94 billion at September 30, 2024, compared to $3.79 billion at December 31, 2023. Deposits totaled $4.63 billion at September 30, 2024, an increase of $4.0 million from December 31, 2023. This increase is primarily due to increases in savings and interest-bearing checking, reciprocal and time deposits that were partially offset by a decrease in non-interest bearings deposits and brokered time deposits.

Cash and cash equivalents totaled $121.6 million at September 30, 2024, versus $169.8 million at December 31, 2023. Securities available for sale (“AFS”) totaled $589.0 million at September 30, 2024, versus $679.4 million at December 31, 2023.

Total shareholders’ equity was $452.4 million at September 30, 2024, or 8.60% of total assets compared to $404.4 million or 7.68% at December 31, 2023. Tangible common equity totaled $422.5 million at September 30, 2024, or $20.22 per share compared to $374.1 million or $17.96 per share at December 31, 2023. The increase in shareholder equity as well as tangible common equity are primarily the result of earnings retention and a decrease in accumulated other comprehensive loss.

The Company’s wholly owned subsidiary, Independent Bank, remains significantly above “well capitalized” for regulatory purposes with the following ratios:

Regulatory Capital Ratios	9/30/2024			12/31/2023			Well Capitalized Minimum

Tier 1 capital to average total assets		9.36	%		8.80	%		5.00	%
Tier 1 common equity to risk-weighted assets		11.74	%		11.21	%		6.50	%
Tier 1 capital to risk-weighted assets		11.74	%		11.21	%		8.00	%
Total capital to risk-weighted assets		13.00	%		12.46	%		10.00	%

At September 30, 2024, in addition to liquidity available from our normal operating, funding, and investing activities, we had unused credit lines with the FHLB and FRB of approximately $1.11 billion and $471.7 million, respectively. We also had approximately $771.3 million in fair value of unpledged securities AFS and HTM at September 30, 2024 which could be pledged for an estimated additional borrowing capacity at the FHLB and FRB of approximately $718.0 million.

Share Repurchase Plan

On December 19, 2023, the Board of Directors of the Company authorized the 2024 share repurchase plan. Under the terms of the 2024 share repurchase plan, the Company is authorized to purchase up to 1,100,000 shares, or approximately 5% of its then outstanding common stock. The repurchase plan is authorized to last through December 31, 2024. The Company did not repurchase any shares of common stock during the first nine months of 2024.

Earnings Conference Call

Brad Kessel, President and CEO, Gavin Mohr, CFO and Joel Rahn, EVP – Commercial Banking will review the quarterly results in a conference call for investors and analysts beginning at 11:00 am ET on Thursday, October 24, 2024.

To participate in the live conference call, please dial 1-833-470-1428 (Access Code # 957797). Also, the conference call will be accessible through an audio webcast with user-controlled slides via the following site/URL: https://events.q4inc.com/attendee/824908063.

A playback of the call can be accessed by dialing 1-866-813-9403 (Access Code # 159381). The replay will be available through October 31, 2024.

About Independent Bank Corporation

Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $5.3 billion. Founded as First National Bank of Ionia in 1864, Independent Bank Corporation operates a branch network across Michigan’s Lower Peninsula through one state-chartered bank subsidiary. This subsidiary (Independent Bank) provides a full range of financial services, including commercial banking, mortgage lending, consumer banking, investments and insurance. Independent Bank Corporation is committed to providing exceptional personal service and value to its customers, stockholders and the communities it serves.

For more information, please visit our Web site at: IndependentBank.com.

Forward-Looking Statements
This presentation contains forward-looking statements, which are any statements or information that are not historical facts. These forward-looking statements include statements about our anticipated future revenue and expenses and our future plans and prospects.

Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. For example, deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding to us, lead to a tightening of credit, and increase stock price volatility. Our results could also be adversely affected by changes in interest rates; increases in unemployment rates; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of our investment securities; legal and regulatory developments; changes in customer behavior and preferences; breaches in data security; and management’s ability to effectively manage the multitude of risks facing our business. Key risk factors that could affect our future results are described in more detail in our Annual Report on Form 10-K for the year ended December 31, 2023 and the other reports we file with the SEC, including under the heading “Risk Factors.” Investors should not place undue reliance on forward-looking statements as a prediction of our future results.

Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Consolidated Statements of Financial Condition

	September 30, 2024			December 31, 2023
	(Unaudited)
	(In thousands, except share amounts)
Assets
Cash and due from banks	$	61,503		$	68,208
Interest bearing deposits		60,057			101,573
Cash and Cash Equivalents		121,560			169,781
Securities available for sale		588,950			679,350
Securities held to maturity (fair value of $314,638 at September 30, 2024 and $318,606 at December 31, 2023)		343,362			353,988
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		16,099			16,821
Loans held for sale, carried at fair value		14,029			12,063
Loans
Commercial		1,825,247			1,679,731
Mortgage		1,511,400			1,485,872
Installment		605,640			625,298
Total Loans		3,942,287			3,790,901
Allowance for credit losses		(57,444	)		(54,658	)
Net Loans		3,884,843			3,736,243
Other real estate and repossessed assets, net		781			569
Property and equipment, net		35,250			35,523
Bank-owned life insurance		54,017			54,341
Capitalized mortgage loan servicing rights, carried at fair value		40,204			42,243
Other intangibles		1,617			2,004
Goodwill		28,300			28,300
Accrued income and other assets		130,256			132,500
Total Assets	$	5,259,268		$	5,263,726
Liabilities and Shareholders’ Equity
Deposits
Non-interest bearing	$	1,023,739		$	1,076,093
Savings and interest-bearing checking		1,947,571			1,905,701
Reciprocal		995,469			832,020
Time		620,446			524,325
Brokered time		39,650			284,740
Total Deposits		4,626,875			4,622,879
Other borrowings		—			50,026
Subordinated debt		39,567			39,510
Subordinated debentures		39,779			39,728
Accrued expenses and other liabilities		100,678			107,134
Total Liabilities		4,806,899			4,859,277

Shareholders’ Equity
Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding		—			—
Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 20,893,800 shares at September 30, 2024 and 20,835,633 shares at December 31, 2023		318,216			317,483
Retained earnings		192,405			159,108
Accumulated other comprehensive loss		(58,252	)		(72,142	)
Total Shareholders’ Equity		452,369			404,449
Total Liabilities and Shareholders’ Equity	$	5,259,268		$	5,263,726

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations

	Three Months Ended								Nine Months Ended
	September 30,			June 30,			September 30,		September 30,
	2024			2024			2023		2024			2023
	(Unaudited)
	(In thousands, except per share amounts)
Interest Income
Interest and fees on loans	$	58,410		$	56,786		$	51,419	$	170,239		$	143,392
Interest on securities
Taxable		4,502			4,713			5,865		14,466			17,668
Tax-exempt		3,404			3,400			3,409		10,195			9,775
Other investments		2,018			1,439			1,739		4,898			3,481
Total Interest Income		68,334			66,338			62,432		199,798			174,316
Interest Expense
Deposits		24,462			22,876			20,743		70,148			51,964
Other borrowings and subordinated debt and debentures		2,018			2,116			2,262		6,253			6,134
Total Interest Expense		26,480			24,992			23,005		76,401			58,098
Net Interest Income		41,854			41,346			39,427		123,397			116,218
Provision for credit losses		1,488			19			1,350		2,251			6,827
Net Interest Income After Provision for Credit Losses		40,366			41,327			38,077		121,146			109,391
Non-interest Income
Interchange income		4,146			3,401			4,100		10,698			10,660
Service charges on deposit accounts		3,085			2,937			3,309		8,894			9,300
Net gains (losses) on assets
Mortgage loans		2,177			1,333			2,099		4,874			5,475
Equity securities at fair value		(8	)		2,693			—		2,685			—
Securities available for sale		(145	)		—			—		(414	)		(222	)
Mortgage loan servicing, net		(3,130	)		2,091			2,668		1,686			7,068
Other		3,383			2,717			3,435		8,818			9,298
Total Non-interest Income		9,508			15,172			15,611		37,241			41,579
Non-interest Expense
Compensation and employee benefits		20,048			21,251			19,975		62,069			59,916
Data processing		3,379			3,257			3,071		9,891			8,953
Occupancy, net		1,893			1,886			1,971		5,853			5,975
Interchange expense		1,149			1,127			1,119		3,373			3,222
Furniture, fixtures and equipment		932			948			927		2,834			2,782
FDIC deposit insurance		664			695			677		2,141			2,209
Loan and collection		657			699			520		1,868			1,718
Advertising		581			788			360		1,860			1,286
Legal and professional		687			544			543		1,717			1,623
Communications		519			499			568		1,633			1,871
Costs (recoveries) related to unfunded lending commitments		113			(137	)		451		(676	)		76
Other		1,961			1,776			1,854		5,546			5,610
Total Non-interest Expense		32,583			33,333			32,036		98,109			95,241
Income Before Income Tax		17,291			23,166			21,652		60,278			55,729
Income tax expense		3,481			4,638			4,109		11,949			10,405
Net Income	$	13,810		$	18,528		$	17,543	$	48,329		$	45,324
Net Income Per Common Share
Basic	$	0.66		$	0.89		$	0.84	$	2.31		$	2.16
Diluted	$	0.65		$	0.88		$	0.83	$	2.29		$	2.14

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Selected Financial Data

	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
	(unaudited)
	(Dollars in thousands except per share data)
Three Months Ended
Net interest income	$	41,854		$	41,346		$	40,197		$	40,111		$	39,427
Provision for credit losses		1,488			19			744			(617	)		1,350
Non-interest income		9,508			15,172			12,561			9,097			15,611
Non-interest expense		32,583			33,333			32,193			31,878			32,036
Income before income tax		17,291			23,166			19,821			17,947			21,652
Income tax expense		3,481			4,638			3,830			4,204			4,109
Net income	$	13,810		$	18,528		$	15,991		$	13,743		$	17,543

Basic earnings per share	$	0.66		$	0.89		$	0.77		$	0.66		$	0.84
Diluted earnings per share		0.65			0.88			0.76			0.65			0.83
Cash dividend per share		0.24			0.24			0.24			0.23			0.23

Average shares outstanding		20,896,019			20,901,741			20,877,067			20,840,680			20,922,431
Average diluted shares outstanding		21,115,273			21,105,387			21,079,607			21,049,030			21,114,445

Performance Ratios
Return on average assets		1.04	%		1.44	%		1.24	%		1.04	%		1.34	%
Return on average equity		12.54			17.98			15.95			14.36			18.68
Efficiency ratio (1)		62.82			61.49			60.26			64.27			57.52

As a Percent of Average Interest-Earning Assets (1)
Interest income		5.48	%		5.45	%		5.34	%		5.29	%		5.10	%
Interest expense		2.11			2.05			2.04			2.03			1.87
Net interest income		3.37			3.40			3.30			3.26			3.23

Average Balances
Loans	$	3,909,954		$	3,849,199		$	3,810,526		$	3,764,752		$	3,694,534
Securities		933,750			944,435			999,140			1,027,240			1,071,211
Total earning assets		4,985,842			4,893,367			4,910,669			4,928,697			4,892,208
Total assets		5,275,623			5,181,317			5,201,452			5,233,666			5,192,114
Deposits		4,616,119			4,531,917			4,561,645			4,612,797			4,577,796
Interest bearing liabilities		3,689,684			3,611,972			3,627,446			3,635,771			3,554,179
Shareholders’ equity		438,077			414,549			403,225			379,614			372,667

(1) Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Selected Financial Data (continued)

	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
	(unaudited)
	(Dollars in thousands except per share data)
End of Period
Capital
Tangible common equity ratio		8.08	%		7.63	%		7.41	%		7.15	%		6.67	%
Tangible common equity ratio excluding accumulated other comprehensive loss		8.99			8.76			8.57			8.31			8.20
Average equity to average assets		8.30			8.00			7.75			7.25			7.18
Total capital to risk-weighted assets (2)		14.25			14.21			13.85			13.71			13.58
Tier 1 capital to risk-weighted assets (2)		12.06			12.01			11.65			11.50			11.37
Common equity tier 1 capital to risk-weighted assets (2)		11.16			11.09			10.73			10.58			10.44
Tier 1 capital to average assets (2)		9.63			9.59			9.29			9.03			8.94
Common shareholders’ equity per share of common stock	$	21.65		$	20.60		$	19.88		$	19.41		$	17.99
Tangible common equity per share of common stock		20.22			19.16			18.44			17.96			16.53
Total shares outstanding		20,893,800			20,899,358			20,903,677			20,835,633			20,850,455

Selected Balances
Loans	$	3,942,287		$	3,851,889		$	3,839,965		$	3,790,901		$	3,741,486
Securities		932,312			936,194			963,577			1,033,338			1,043,540
Total earning assets		4,964,784			4,979,555			4,949,496			4,954,696			4,884,720
Total assets		5,259,268			5,277,500			5,231,255			5,263,726			5,200,018
Deposits		4,626,875			4,614,328			4,582,414			4,622,879			4,585,612
Interest bearing liabilities		3,682,482			3,694,025			3,677,060			3,676,050			3,573,187
Shareholders’ equity		452,369			430,459			415,570			404,449			374,998

(2) September 30, 2024 are Preliminary.

Reconciliation of Non-GAAP Financial Measures
Independent Bank Corporation

Independent Bank Corporation believes non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate the adequacy of common equity and performance trends. Tangible common equity is used by the Company to measure the quality of capital.

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
	(Dollars in thousands)
Net Interest Margin, Fully Taxable Equivalent (“FTE”)

Net interest income	$	41,854		$	39,427		$	123,397		$	116,218
Add: taxable equivalent adjustment		158			202			513			722
Net interest income – taxable equivalent	$	42,012		$	39,629		$	123,910		$	116,940
Net interest margin (GAAP) (1)		3.35	%		3.21	%		3.34	%		3.25	%
Net interest margin (FTE) (1)		3.37	%		3.23	%		3.35	%		3.26	%

(1) Annualized.

Tangible Common Equity Ratio

	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
	(Dollars in thousands)
Common shareholders’ equity	$	452,369		$	430,459		$	415,570		$	404,449		$	374,998
Less:
Goodwill		28,300			28,300			28,300			28,300			28,300
Other intangibles		1,617			1,746			1,875			2,004			2,141
Tangible common equity		422,452			400,413			385,395			374,145			344,557
Addition:
Accumulated other comprehensive loss for regulatory purposes		52,454			65,030			65,831			66,344			86,507
Tangible common equity excluding other comprehensive loss adjustments	$	474,906		$	465,443		$	451,226		$	440,489		$	431,064

Total assets	$	5,259,268		$	5,277,500		$	5,231,255		$	5,263,726		$	5,200,018
Less:
Goodwill		28,300			28,300			28,300			28,300			28,300
Other intangibles		1,617			1,746			1,875			2,004			2,141
Tangible assets		5,229,351			5,247,454			5,201,080			5,233,422			5,169,577
Addition:
Net unrealized losses on available for sale securities and derivatives, net of tax		52,454			65,030			65,831			66,344			86,507
Tangible assets excluding other comprehensive loss adjustments	$	5,281,805		$	5,312,484		$	5,266,911		$	5,299,766		$	5,256,084

Common equity ratio		8.60	%		8.16	%		7.94	%		7.68	%		7.21	%
Tangible common equity ratio		8.08	%		7.63	%		7.41	%		7.15	%		6.67	%
Tangible common equity ratio excluding other comprehensive loss		8.99	%		8.76	%		8.57	%		8.31	%		8.20	%

Tangible Common Equity per Share of Common Stock:

Common shareholders’ equity	$	452,369		$	430,459		$	415,570		$	404,449		$	374,998
Tangible common equity	$	422,452		$	400,413		$	385,395		$	374,145		$	344,557
Shares of common stock outstanding (in thousands)		20,894			20,899			20,904			20,836			20,850

Common shareholders’ equity per share of common stock	$	21.65		$	20.60		$	19.88		$	19.41		$	17.99
Tangible common equity per share of common stock	$	20.22		$	19.16		$	18.44		$	17.96		$	16.53

The tangible common equity ratio removes the effect of goodwill and other intangible assets from capital and total assets. Tangible common equity per share of common stock removes the effect of goodwill and other intangible assets from common shareholders’ equity per share of common stock.

Contact:	William B. Kessel, President and CEO, 616.447.3933
	Gavin A. Mohr, Chief Financial Officer, 616.447.3929

The MIL Network –

January 25, 2025

MIL-OSI: Hanmi Financial Declares Cash Dividend of $0.25 per share

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, Oct. 24, 2024 (GLOBE NEWSWIRE) — Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today announced that its Board of Directors declared a cash dividend on its common stock for the 2024 fourth quarter of $0.25 per share. The dividend will be paid on November 20, 2024, to stockholders of record as of the close of business on November 4, 2024.

About Hanmi Financial Corporation
Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 32 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.

Forward-Looking Statements

This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:

a failure to maintain adequate levels of capital and liquidity to support our operations;
general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;
volatility and deterioration in the credit and equity markets;
changes in consumer spending, borrowing and savings habits;
availability of capital from private and government sources;
demographic changes;
competition for loans and deposits and failure to attract or retain loans and deposits;
inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding;
our ability to enter new markets successfully and capitalize on growth opportunities;
the current or anticipated impact of military conflict, terrorism or other geopolitical events;
the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;
risks of natural disasters;
legal proceedings and litigation brought against us;
a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
the failure to maintain current technologies;
risks associated with Small Business Administration loans;
failure to attract or retain key employees;
our ability to access cost-effective funding;
changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
fluctuations in real estate values;
changes in accounting policies and practices;
changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests;
strategic transactions we may enter into;
the adequacy of and changes in the methodology for computing our allowance for credit losses;
our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses;
changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements;
our ability to control expenses; and
cyber security and fraud risks against our information technology and those of our third-party providers and vendors.

In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.

Investor Contacts:
Romolo (Ron) Santarosa
Senior Executive Vice President & Chief Financial Officer
213-427-5636

Lisa Fortuna
Investor Relations
Financial Profiles, Inc.
lfortuna@finprofiles.com
310-622-8251

Source: Hanmi Bank

The MIL Network –

January 25, 2025

MIL-OSI: Equipment Leasing and Finance Association CapEx Finance Index: September 2024

Source: GlobeNewswire (MIL-OSI)

********************************************************************************************************
Note to readers: ELFA has updated the name of the Monthly Leasing and Finance Index (MLFI-25) to the CapEx Finance Index (CFI) to better reflect what it measures and how it impacts the broader U.S. economy.
********************************************************************************************************

WASHINGTON, Oct. 24, 2024 (GLOBE NEWSWIRE) —

Demand for equipment picked up. New business volume grew by $10.0 billion from August to September, a monthly increase of 2.2% before rounding. Growth in business volume has been uneven in 2024 but continues to hover around historic highs. The September release suggests that equipment investment continued to expand at a healthy pace at the end of the third quarter.

Bank lending drove new business growth. The sub-index for business volume at banks grew by 10.9% from August to September, which was more than enough to offset the contraction in activity at captives and independents, which declined by 2.3% and 9.8%, respectively. The figure below shows that bank activity has lagged other sources over the last few years, but the latest data suggests that banks may be easing back into the lending and leasing market.

Lenders continue to add headcount. The 12-month change in employment was just over 1.0%, slightly slowing from the 1.2% pace recorded in August. Employment has been a source of strength this year, following nearly five years of persistent declines in headcount.

Credit approvals remained steady. The percentage of credit applications approved ticked down 0.7 percentage points to 75.6%. The approval rate has been hovering around 75% for most of 2024.

Lender balance sheets improved for a second consecutive month. The percentage of credit lines over 30 days past due and charge-offs declined. Both have been trending up over the last two years as borrowing conditions tightened due to the rapid increase in interest rates.

Industry Confidence
The Monthly Confidence Index from ELFA’s affiliate, the Equipment Leasing & Finance Foundation, is 61.8 in October, steady with the September index of 61.9, which was the highest level since January 2022.

Industry Voices

“Our latest CapEx Finance Survey showed that equipment demand continued to defy high interest rates in September. The uptick in bank lending was particularly encouraging and is something I will be watching closely as we approach the end of the year. I wouldn’t be surprised if the next few surveys show a cooling in lending volumes as election uncertainty peaks and some businesses wait for rates to drop further. That said, balance sheets continued to improve, and the percentage of approved new credit applications remained healthy, signs that lenders and borrowers are in a great position to weather any gusts that might come along in the fourth quarter.”
ELFA President and CEO, Leigh Lytle

“A healthy increase in YOY business volume, especially in August and September, validates our 12-month increase in headcount as we continue strengthening our value proposition for all of CEFI’s stakeholders. A decreasing interest rate environment driving increased business volume and net interest margin will enhance bottom-line returns for CEFI and the industry until competitors become more aggressive.” Ricardo E. Rios, CFA, CLFP, President & COO, Commercial Equipment Finance, Inc (CEFI)

About ELFA’s CFI
The CFI is the only near-real-time index that reflects capex, or the volume of commercial equipment financed in the U.S. It is released monthly from Washington, D.C., one day before the U.S. Department of Commerce’s durable goods report. This financial indicator complements reports like the Institute for Supply Management Index, providing a comprehensive view of productive assets in the U.S. economy—equipment produced, acquired and financed. The CFI consists of two years of business activity data from 25 participating companies. For more details, including methodology and participants, visit www.elfaonline.org/CFI.

About ELFA
The Equipment Leasing and Finance Association (ELFA) represents financial services companies and manufacturers in the $1 trillion U.S. equipment finance sector. ELFA’s 575 member companies provide essential financing that helps businesses acquire the equipment they need to operate and grow. Learn how equipment finance contributes to businesses’ success, U.S. economic growth, manufacturing and jobs at http://www.elfaonline.org.

Media/Press Contact: Amy Vogt, Vice President, Communications and Marketing, ELFA, avogt@elfaonline.org

Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/cee789e6-c777-4190-9b5d-4361b6712379

https://www.globenewswire.com/NewsRoom/AttachmentNg/721cf1e0-33c3-4767-882b-bceb720b01b1

The MIL Network –

January 25, 2025

MIL-OSI: Oma Savings Bank Plc’s Financial reporting and AGM in 2025

Source: GlobeNewswire (MIL-OSI)

OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE 24 OCTOBER 2024 AT 15.00 P.M. EET, FINANCIAL CALENDAR

Oma Savings Bank Plc’s Financial reporting and AGM in 2025

Oma Savings Bank Plc (OmaSp) will publish financial information in 2025 as follows:

10 February 2025 Financial Statements Release for 2024
5 May 2025 Interim Report January-March 2025
4 August 2025 Interim Report January-June 2025
3 November 2025 Interim Report January-September 2025

The 2024 Financial Statements, Annual Report, Sustainability Report and Auditor’s Report will be published week 11. The Annual General Meeting is planned to be held on Tuesday 8 April in 2025. The Board of Directors will convene the Annual General Meeting separately.

Oma Savings Bank Plc

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

DISTRIBUTION
Nasdaq Helsinki Ltd
Major media
www.omasp.fi

OmaSp is a solvent and profitable Finnish bank. About 500 professionals provide nationwide services through OmaSp’s 46 branch offices and digital service channels to over 200,000 private and corporate customers. OmaSp focuses primarily on retail banking operations and provides its clients with a broad range of banking services both through its own balance sheet as well as by acting as an intermediary for its partners’ products. The intermediated products include credit, investment and loan insurance products. OmaSp is also engaged in mortgage banking operations.

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

The MIL Network –

January 25, 2025

MIL-OSI: Paycor Welcomes Industry Leader Dru Armstrong, CEO of AffiniPay, to Board of Directors

Source: GlobeNewswire (MIL-OSI)

CINCINNATI, Oct. 24, 2024 (GLOBE NEWSWIRE) — Paycor HCM, Inc. (Nasdaq: PYCR) (“Paycor”), a leading provider of human capital management (HCM) software, today announced the election of Dru Armstrong to its Board of Directors, effective October 23, 2024.

Ms. Armstrong brings a wealth of leadership experience to Paycor’s board, currently serving as Chief Executive Officer of AffiniPay, a leading provider of practice management software, integrated payments, and embedded fintech solutions. Her expertise spans software-as-a-service (SaaS), embedded technology, and adjacent payment industries, aligning closely with Paycor’s current and potential growth strategies.

“Dru’s proven track record in driving technology companies to exponential growth, coupled with her strategic financial leadership, will be invaluable to our board,” said Raul Villar, Jr., CEO of Paycor. “Her deep industry knowledge and experience in scaling SaaS businesses will be crucial as we continue to innovate and expand our HCM offerings. Additionally, Dru’s commitment to fostering diverse, inclusive workplaces aligns perfectly with our company values.”

With over 20 years of experience in the technology sector, Ms. Armstrong has proven success in building high-performing teams, driving product innovation and accelerating growth. She has been named a Top 25 Women Leader in PE-Backed Software Companies for 2024 by Calibre One and featured in American Banker’s 2024 list of Most Influential Women in Fintech. Additionally, she is widely regarded as a thought leader on innovation, diversity, equity and inclusion, and verticalized software.

“Paycor is at the forefront of transforming how leaders leverage HCM technology to drive success,” said Armstrong. “I’m thrilled to join the board at this pivotal time and look forward to contributing my experience in scaling SaaS companies and navigating complex financial landscapes. Together, we’ll push the boundaries of innovation in HCM solutions, helping organizations build high-performing teams and achieve their full potential in today’s dynamic business environment.”

About Paycor
Paycor’s HR, payroll, and talent platform connects leaders to people, data, and expertise. We help leaders drive engagement and retention by giving them tools to coach, develop, and grow employees. We give them unprecedented insights into their operational data with a unified HCM experience that can seamlessly connect to other mission-critical technology. By providing expert guidance and consultation, we help them achieve business results and become an extension of their teams. Learn more at paycor.com.

Investor Relations:
Rachel White
513-954-7388
IR@paycor.com

Media Relations:
Carly Pennekamp
513-954-7282
PR@paycor.com

The MIL Network –

January 25, 2025

MIL-OSI: First Merchants Corporation Announces Third Quarter 2024 Earnings per Share

Source: GlobeNewswire (MIL-OSI)

MUNCIE, Ind., Oct. 24, 2024 (GLOBE NEWSWIRE) — First Merchants Corporation (NASDAQ – FRME)

Third Quarter 2024 Highlights:

Net income available to common stockholders was $48.7 million and diluted earnings per common share totaled $0.84, compared to $55.9 million and $0.94 in the third quarter of 2023, and $39.5 million and $0.68 in the second quarter of 2024. Excluding the loss from repositioning of the available for sale securities portfolio, adjusted net income was $55.6 million or $0.95 per share for the third quarter of 2024.
Strong capital position with Common Equity Tier 1 Capital Ratio of 11.25% and Tangible Common Equity to Tangible Assets Ratio of 8.76%.
Net interest margin was 3.23% compared to 3.16% on a linked quarter basis.
Total loans grew $15.5 million, or 0.5% annualized, on a linked quarter basis, and $385.1 million, or 3.1% during the last twelve months.
Total deposits grew by $83.7 million, or 2.3% annualized, on a linked quarter basis after normalizing for $287.7 million of deposits reclassified to held for sale.
Nonperforming assets to total assets were 35 basis points compared to 36 basis points on a linked quarter basis.
The efficiency ratio totaled 53.76% for the quarter.
Announced sale of five Illinois branches and certain loans and deposits to Old Second National Bank on August 27, 2024.

“We are pleased with our third quarter results and the focused momentum that we are building,” said Mark Hardwick, Chief Executive Officer. “The pending sale of five non-core Illinois branches, restructure of the securities portfolio, and successful completion of four major technology initiatives provides us with the opportunity to reprioritize our core markets and introduce innovative customer acquisition strategies.”

Third Quarter Financial Results:

First Merchants Corporation (the “Corporation”) has reported third quarter 2024 net income available to common stockholders of $48.7 million compared to $55.9 million during the same period in 2023. Diluted earnings per common share for the period totaled $0.84 compared to the third quarter of 2023 result of $0.94. Excluding the $9.1 million pre-tax loss from repositioning of the available for sale securities portfolio, adjusted net income was $55.6 million, or $0.95 diluted earnings per common share for the third quarter of 2024.

During the quarter, the Corporation signed a definitive agreement to sell five Illinois branches along with certain loans and deposits, representing an exit from suburban Chicago markets. Loans of $9.2 million, deposits of $287.7 million and fixed assets of $3.4 million have been moved to held for sale categories as of September 30, 2024. The transaction is expected to close in the fourth quarter of this year.

Total assets equaled $18.3 billion as of quarter-end and loans totaled $12.7 billion. During the past twelve months, total loans grew by $385.1 million, or 3.1%. On a linked quarter basis, loans grew $15.5 million, or 0.5%, with growth primarily in commercial & industrial loans.

Investments totaling $3.7 billion decreased $51.6 million, or 1.4%, during the last twelve months and decreased $90.9 million, or 9.7% annualized, on a linked quarter basis. The decline during the quarter was due to $158.9 million in sales of available for sale securities with a weighted average tax-equivalent yield of 2.85%, partially offset by an increase in the securities portfolio valuation.

Total deposits were $14.4 billion as of quarter-end and decreased by $281.5 million, or 1.9%, over the past twelve months. The decline was primarily due to $287.7 million of deposits being reclassified to held for sale. Excluding this impact, deposits increased by $6.2 million. On a linked quarter basis, deposits grew organically by $83.7 million or 2.3%. The loan to deposit ratio increased to 88.0% at period end from 86.8% in the prior quarter, primarily due to the reclassification of deposits to held for sale as previously described.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $187.8 million as of quarter-end, or 1.48% of total loans, a decrease of $1.7 million from prior quarter. Loan charge-offs, net of recoveries totaled $6.7 million and provision for loans of $5.0 million was recorded during the quarter. Reserves for unfunded commitments totaled $19.5 million and remained unchanged from the prior quarter. Non-performing assets to total assets were 35 basis points for the third quarter of 2024, a decrease of one basis point compared to 36 basis points in the prior quarter.

Net interest income totaled $131.1 million for the quarter, an increase of $2.5 million, or 2.0%, compared to prior quarter and a decrease of $2.3 million, or 1.7%, compared to the third quarter of 2023. Fully-tax equivalent net interest margin was 3.23%, an increase of 7 basis points compared to the second quarter of 2024, and a decrease of 6 basis points compared to the third quarter of 2023. The increase in net interest margin compared to the second quarter was due to higher earning asset yields.

Non-interest income totaled $24.9 million for the quarter, a decrease of $6.5 million, or 20.6%, compared to the second quarter of 2024 and a decrease of $3.0 million, or 6.7% from the third quarter of 2023. The decrease from second quarter of 2024 was driven by realized losses on sales of available for sale securities associated with the repositioning of the bond portfolio, partially offset by increases in gains on sales of mortgage loans and earnings on cash surrender value of life insurance.

Non-interest expense totaled $94.6 million for the quarter, an increase of $3.2 million from the second quarter of 2024 and an increase of $0.8 million from the third quarter of 2023. The increase from the linked quarter was from higher salaries and employee benefits primarily driven by higher incentives.

The Corporation’s total risk-based capital ratio equaled 13.18%, common equity tier 1 capital ratio equaled 11.25%, and the tangible common equity ratio totaled 8.76%. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

CONFERENCE CALL

First Merchants Corporation will conduct a third quarter earnings conference call and web cast at 11:30 a.m. (ET) on Thursday, October 24, 2024.

To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register.vevent.com/register/BI34430e309ed545808c7c8195f36e86b6)

To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/6grv3upw) during the time of the call. A replay of the webcast will be available until October 24, 2025.

Detailed financial results are reported on the attached pages.

About First Merchants Corporation

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

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

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

Forward-Looking Statements

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


CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)	September 30,
		2024			2023
ASSETS
Cash and due from banks	$	84,719		$	125,173
Interest-bearing deposits		359,126			348,639
Investment securities, net of allowance for credit losses of $245,000 and $245,000		3,662,145			3,713,724
Loans held for sale		40,652			30,972
Loans		12,646,808			12,271,422
Less: Allowance for credit losses – loans		(187,828	)		(205,782	)
Net loans		12,458,980			12,065,640
Premises and equipment		129,582			132,441
Federal Home Loan Bank stock		41,716			41,797
Interest receivable		92,055			90,011
Goodwill and other intangibles		733,601			741,283
Cash surrender value of life insurance		304,613			306,106
Other real estate owned		5,247			6,480
Tax asset, deferred and receivable		86,732			135,521
Other assets		348,384			340,476
TOTAL ASSETS	$	18,347,552		$	18,078,263
LIABILITIES
Deposits:
Noninterest-bearing	$	2,334,197		$	2,554,984
Interest-bearing		12,030,903			12,091,592
Total Deposits		14,365,100			14,646,576
Borrowings:
Federal funds purchased		30,000			—
Securities sold under repurchase agreements		124,894			152,537
Federal Home Loan Bank advances		832,629			713,384
Subordinated debentures and other borrowings		93,562			158,665
Total Borrowings		1,081,085			1,024,586
Deposits and other liabilities held for sale		288,476			—
Interest payable		18,089			16,473
Other liabilities		292,429			297,984
Total Liabilities		16,045,179			15,985,619
STOCKHOLDERS’ EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized — 600 cumulative shares
Issued and outstanding – 125 cumulative shares		125			125
Preferred Stock, Series A, no par value, $2,500 liquidation preference:
Authorized — 10,000 non-cumulative perpetual shares
Issued and outstanding – 10,000 non-cumulative perpetual shares		25,000			25,000
Common Stock, $.125 stated value:
Authorized — 100,000,000 shares
Issued and outstanding – 58,117,115 and 59,398,022 shares		7,265			7,425
Additional paid-in capital		1,192,683			1,234,402
Retained earnings		1,229,125			1,132,962
Accumulated other comprehensive loss		(151,825	)		(307,270	)
Total Stockholders’ Equity		2,302,373			2,092,644
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	18,347,552		$	18,078,263


CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended						Nine Months Ended
(Dollars In Thousands, Except Per Share Amounts)	September 30,						September 30,
		2024			2023			2024			2023
INTEREST INCOME
Loans receivable:
Taxable	$	206,680		$	191,705		$	606,116		$	550,314
Tax-exempt		8,622			8,288			25,242			23,757
Investment securities:
Taxable		9,263			8,590			27,062			26,563
Tax-exempt		13,509			13,947			40,733			44,296
Deposits with financial institutions		2,154			5,884			11,642			9,685
Federal Home Loan Bank stock		855			719			2,569			2,281
Total Interest Income		241,083			229,133			713,364			656,896
INTEREST EXPENSE
Deposits		98,856			85,551			296,292			209,437
Federal funds purchased		329			—			455			1,420
Securities sold under repurchase agreements		700			797			2,377			2,624
Federal Home Loan Bank advances		8,544			6,896			21,715			20,775
Subordinated debentures and other borrowings		1,544			2,506			5,781			7,303
Total Interest Expense		109,973			95,750			326,620			241,559
NET INTEREST INCOME		131,110			133,383			386,744			415,337
Provision for credit losses		5,000			2,000			31,500			2,000
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		126,110			131,383			355,244			413,337
NONINTEREST INCOME
Service charges on deposit accounts		8,361			7,975			24,482			23,147
Fiduciary and wealth management fees		8,525			7,394			25,550			22,653
Card payment fees		5,121			4,716			14,360			14,425
Net gains and fees on sales of loans		6,764			5,517			15,159			11,548
Derivative hedge fees		736			516			1,488			2,336
Other customer fees		344			384			1,231			1,643
Earnings on cash surrender value of life insurance		2,755			1,761			6,276			5,145
Net realized losses on sales of available for sale securities		(9,114	)		(1,650	)		(9,165	)		(4,613	)
Other income		1,374			1,229			3,457			2,874
Total Noninterest Income		24,866			27,842			82,838			79,158
NONINTEREST EXPENSES
Salaries and employee benefits		55,223			55,566			165,730			167,778
Net occupancy		6,994			6,837			21,052			20,770
Equipment		6,949			5,698			19,774			18,005
Marketing		1,836			2,369			4,807			4,780
Outside data processing fees		7,150			6,573			21,111			19,290
Printing and office supplies		378			333			1,085			1,150
Intangible asset amortization		1,772			2,182			5,500			6,561
FDIC assessments		3,720			2,981			11,285			7,117
Other real estate owned and foreclosure expenses		942			677			1,849			1,575
Professional and other outside services		3,035			3,833			10,809			12,191
Other expenses		6,630			6,805			19,975			20,950
Total Noninterest Expenses		94,629			93,854			282,977			280,167
INCOME BEFORE INCOME TAX		56,347			65,371			155,105			212,328
Income tax expense		7,160			9,005			18,052			31,021
NET INCOME		49,187			56,366			137,053			181,307
Preferred stock dividends		468			468			1,406			1,406
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	48,719		$	55,898		$	135,647		$	179,901
Per Share Data:
Basic Net Income Available to Common Stockholders	$	0.84		$	0.95		$	2.32		$	3.04
Diluted Net Income Available to Common Stockholders	$	0.84		$	0.94		$	2.31		$	3.03
Cash Dividends Paid to Common Stockholders	$	0.35		$	0.34		$	1.04		$	1.00
Average Diluted Common Shares Outstanding (in thousands)		58,289			59,503			58,629			59,465


FINANCIAL HIGHLIGHTS
(Dollars in thousands)	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023
NET CHARGE-OFFS	$	6,709		$	20,365		$	48,606		$	22,495

AVERAGE BALANCES:
Total Assets	$	18,360,580		$	18,152,239		$	18,374,370		$	18,115,504
Total Loans		12,680,166			12,287,632			12,592,907			12,264,787
Total Earning Assets		16,990,358			16,947,669			17,042,540			16,913,965
Total Deposits		14,702,454			14,735,592			14,826,056			14,627,448
Total Stockholders’ Equity		2,251,547			2,154,232			2,232,419			2,126,005

FINANCIAL RATIOS:
Return on Average Assets		1.07	%		1.24	%		0.99	%		1.33	%
Return on Average Stockholders’ Equity		8.66			10.38			8.10			11.28
Return on Tangible Common Stockholders’ Equity		13.39			16.54			12.64			18.10
Average Earning Assets to Average Assets		92.54			93.36			92.75			93.37
Allowance for Credit Losses – Loans as % of Total Loans		1.48			1.67			1.48			1.67
Net Charge-offs as % of Average Loans (Annualized)		0.21			0.66			0.51			0.24
Average Stockholders’ Equity to Average Assets		12.26			11.87			12.15			11.74
Tax Equivalent Yield on Average Earning Assets		5.82			5.55			5.72			5.32
Interest Expense/Average Earning Assets		2.59			2.26			2.56			1.90
Net Interest Margin (FTE) on Average Earning Assets		3.23			3.29			3.16			3.42
Efficiency Ratio		53.76			53.91			55.54			52.60
Tangible Common Book Value Per Share	$	26.64		$	22.43		$	26.64		$	22.43


NONPERFORMING ASSETS
(Dollars In Thousands)	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
Nonaccrual Loans	$	59,088		$	61,906		$	62,478		$	53,580		$	53,102
Other Real Estate Owned and Repossessions		5,247			4,824			4,886			4,831			6,480
Nonperforming Assets (NPA)		64,335			66,730			67,364			58,411			59,582
90+ Days Delinquent		14,105			1,686			2,838			172			89
NPAs & 90 Day Delinquent	$	78,440		$	68,416		$	70,202		$	58,583		$	59,671

Allowance for Credit Losses – Loans	$	187,828		$	189,537		$	204,681		$	204,934		$	205,782
Quarterly Net Charge-offs		6,709			39,644			2,253			3,148			20,365
NPAs / Actual Assets %		0.35	%		0.36	%		0.37	%		0.32	%		0.33	%
NPAs & 90 Day / Actual Assets %		0.43	%		0.37	%		0.38	%		0.32	%		0.33	%
NPAs / Actual Loans and OREO %		0.51	%		0.53	%		0.54	%		0.47	%		0.48	%
Allowance for Credit Losses – Loans / Actual Loans (%)		1.48	%		1.50	%		1.64	%		1.64	%		1.67	%
Net Charge-offs as % of Average Loans (Annualized)		0.21	%		1.26	%		0.07	%		0.10	%		0.66	%


CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
ASSETS
Cash and due from banks	$	84,719		$	105,372		$	100,514		$	112,649		$	125,173
Interest-bearing deposits		359,126			168,528			410,497			436,080			348,639
Investment securities, net of allowance for credit losses		3,662,145			3,753,088			3,783,574			3,811,364			3,713,724
Loans held for sale		40,652			32,292			15,118			18,934			30,972
Loans		12,646,808			12,639,650			12,465,582			12,486,027			12,271,422
Less: Allowance for credit losses – loans		(187,828	)		(189,537	)		(204,681	)		(204,934	)		(205,782	)
Net loans		12,458,980			12,450,113			12,260,901			12,281,093			12,065,640
Premises and equipment		129,582			133,245			132,706			133,896			132,441
Federal Home Loan Bank stock		41,716			41,738			41,758			41,769			41,797
Interest receivable		92,055			97,546			92,550			97,664			90,011
Goodwill and other intangibles		733,601			735,373			737,144			739,101			741,283
Cash surrender value of life insurance		304,613			306,379			306,028			306,301			306,106
Other real estate owned		5,247			4,824			4,886			4,831			6,480
Tax asset, deferred and receivable		86,732			107,080			101,121			99,883			135,521
Other assets		348,384			367,845			331,006			322,322			340,476
TOTAL ASSETS	$	18,347,552		$	18,303,423		$	18,317,803		$	18,405,887		$	18,078,263
LIABILITIES
Deposits:
Noninterest-bearing	$	2,334,197		$	2,303,313		$	2,338,364		$	2,500,062		$	2,554,984
Interest-bearing		12,030,903			12,265,757			12,546,220			12,321,391			12,091,592
Total Deposits		14,365,100			14,569,070			14,884,584			14,821,453			14,646,576
Borrowings:
Federal funds purchased		30,000			147,229			—			—			—
Securities sold under repurchase agreements		124,894			100,451			130,264			157,280			152,537
Federal Home Loan Bank advances		832,629			832,703			612,778			712,852			713,384
Subordinated debentures and other borrowings		93,562			93,589			118,612			158,644			158,665
Total Borrowings		1,081,085			1,173,972			861,654			1,028,776			1,024,586
Deposits and other liabilities held for sale		288,476			—			—			—			—
Interest payable		18,089			18,554			19,262			18,912			16,473
Other liabilities		292,429			329,302			327,500			289,033			297,984
Total Liabilities		16,045,179			16,090,898			16,093,000			16,158,174			15,985,619
STOCKHOLDERS’ EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized — 600 cumulative shares
Issued and outstanding – 125 cumulative shares		125			125			125			125			125
Preferred Stock, Series A, no par value, $2,500 liquidation preference:
Authorized — 10,000 non-cumulative perpetual shares
Issued and outstanding – 10,000 non-cumulative perpetual shares		25,000			25,000			25,000			25,000			25,000
Common Stock, $.125 stated value:
Authorized — 100,000,000 shares
Issued and outstanding		7,265			7,256			7,321			7,428			7,425
Additional paid-in capital		1,192,683			1,191,193			1,208,447			1,236,506			1,234,402
Retained earnings		1,229,125			1,200,930			1,181,939			1,154,624			1,132,962
Accumulated other comprehensive loss		(151,825	)		(211,979	)		(198,029	)		(175,970	)		(307,270	)
Total Stockholders’ Equity		2,302,373			2,212,525			2,224,803			2,247,713			2,092,644
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	18,347,552		$	18,303,423		$	18,317,803		$	18,405,887		$	18,078,263


CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
INTEREST INCOME
Loans receivable:
Taxable	$	206,680		$	201,413		$	198,023		$	197,523		$	191,705
Tax-exempt		8,622			8,430			8,190			8,197			8,288
Investment securities:
Taxable		9,263			9,051			8,748			8,644			8,590
Tax-exempt		13,509			13,613			13,611			13,821			13,947
Deposits with financial institutions		2,154			2,995			6,493			8,034			5,884
Federal Home Loan Bank stock		855			879			835			771			719
Total Interest Income		241,083			236,381			235,900			236,990			229,133
INTEREST EXPENSE
Deposits		98,856			99,151			98,285			96,655			85,551
Federal funds purchased		329			126			—			1			—
Securities sold under repurchase agreements		700			645			1,032			827			797
Federal Home Loan Bank advances		8,544			6,398			6,773			6,431			6,896
Subordinated debentures and other borrowings		1,544			1,490			2,747			3,013			2,506
Total Interest Expense		109,973			107,810			108,837			106,927			95,750
NET INTEREST INCOME		131,110			128,571			127,063			130,063			133,383
Provision for credit losses		5,000			24,500			2,000			1,500			2,000
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		126,110			104,071			125,063			128,563			131,383
NONINTEREST INCOME
Service charges on deposit accounts		8,361			8,214			7,907			7,690			7,975
Fiduciary and wealth management fees		8,525			8,825			8,200			8,187			7,394
Card payment fees		5,121			4,739			4,500			4,437			4,716
Net gains and fees on sales of loans		6,764			5,141			3,254			4,111			5,517
Derivative hedge fees		736			489			263			1,049			516
Other customer fees		344			460			427			237			384
Earnings on cash surrender value of life insurance		2,755			1,929			1,592			3,202			1,761
Net realized losses on sales of available for sale securities		(9,114	)		(49	)		(2	)		(2,317	)		(1,650	)
Other income (loss)		1,374			1,586			497			(152	)		1,229
Total Noninterest Income		24,866			31,334			26,638			26,444			27,842
NONINTEREST EXPENSES
Salaries and employee benefits		55,223			52,214			58,293			60,967			55,566
Net occupancy		6,994			6,746			7,312			9,089			6,837
Equipment		6,949			6,599			6,226			6,108			5,698
Marketing		1,836			1,773			1,198			2,647			2,369
Outside data processing fees		7,150			7,072			6,889			5,875			6,573
Printing and office supplies		378			354			353			402			333
Intangible asset amortization		1,772			1,771			1,957			2,182			2,182
FDIC assessments		3,720			3,278			4,287			7,557			2,981
Other real estate owned and foreclosure expenses		942			373			534			1,743			677
Professional and other outside services		3,035			3,822			3,952			3,981			3,833
Other expenses		6,630			7,411			5,934			7,552			6,805
Total Noninterest Expenses		94,629			91,413			96,935			108,103			93,854
INCOME BEFORE INCOME TAX		56,347			43,992			54,766			46,904			65,371
Income tax expense		7,160			4,067			6,825			4,425			9,005
NET INCOME		49,187			39,925			47,941			42,479			56,366
Preferred stock dividends		468			469			469			469			468
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	48,719		$	39,456		$	47,472		$	42,010		$	55,898
Per Share Data:
Basic Net Income Available to Common Stockholders	$	0.84		$	0.68		$	0.80		$	0.71		$	0.95
Diluted Net Income Available to Common Stockholders	$	0.84		$	0.68		$	0.80		$	0.71		$	0.94
Cash Dividends Paid to Common Stockholders	$	0.35		$	0.35		$	0.34		$	0.34		$	0.34
Average Diluted Common Shares Outstanding (in thousands)		58,289			58,328			59,273			59,556			59,503
FINANCIAL RATIOS:
Return on Average Assets		1.07	%		0.87	%		1.04	%		0.92	%		1.24	%
Return on Average Stockholders’ Equity		8.66			7.16			8.47			7.89			10.38
Return on Tangible Common Stockholders’ Equity		13.39			11.29			13.21			12.75			16.54
Average Earning Assets to Average Assets		92.54			92.81			92.91			93.62			93.36
Allowance for Credit Losses – Loans as % of Total Loans		1.48			1.50			1.64			1.64			1.67
Net Charge-offs as % of Average Loans (Annualized)		0.21			1.26			0.07			0.10			0.66
Average Stockholders’ Equity to Average Assets		12.26			12.02			12.17			11.58			11.87
Tax Equivalent Yield on Average Earning Assets		5.82			5.69			5.65			5.64			5.55
Interest Expense/Average Earning Assets		2.59			2.53			2.55			2.48			2.26
Net Interest Margin (FTE) on Average Earning Assets		3.23			3.16			3.10			3.16			3.29
Efficiency Ratio		53.76			53.84			59.21			63.26			53.91
Tangible Common Book Value Per Share	$	26.64		$	25.10		$	25.07		$	25.06		$	22.43


LOANS
(Dollars In Thousands)	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
Commercial and industrial loans	$	4,041,217		$	3,949,817		$	3,722,365		$	3,670,948		$	3,490,953
Agricultural land, production and other loans to farmers		238,743			239,926			234,431			263,414			233,838
Real estate loans:
Construction		814,704			823,267			941,726			957,545			1,022,261
Commercial real estate, non-owner occupied		2,251,351			2,323,533			2,368,360			2,400,839			2,360,596
Commercial real estate, owner occupied		1,152,751			1,174,195			1,137,894			1,162,083			1,153,707
Residential		2,366,943			2,370,905			2,316,490			2,288,921			2,257,385
Home equity		641,188			631,104			618,258			617,571			609,352
Individuals’ loans for household and other personal expenditures		158,480			162,089			161,459			168,388			176,523
Public finance and other commercial loans		981,431			964,814			964,599			956,318			966,807
Loans		12,646,808			12,639,650			12,465,582			12,486,027			12,271,422
Allowance for credit losses – loans		(187,828	)		(189,537	)		(204,681	)		(204,934	)		(205,782	)
NET LOANS	$	12,458,980		$	12,450,113		$	12,260,901		$	12,281,093		$	12,065,640


DEPOSITS
(Dollars In Thousands)	September 30,		June 30,		March 31,		December 31,		September 30,
		2024		2024		2024		2023		2023
Demand deposits	$	7,678,510	$	7,757,679	$	7,771,976	$	7,965,862	$	7,952,040
Savings deposits		4,302,236		4,339,161		4,679,593		4,516,433		4,572,162
Certificates and other time deposits of $100,000 or more		1,277,833		1,415,131		1,451,443		1,408,985		1,280,607
Other certificates and time deposits		802,949		889,949		901,280		849,906		761,196
Brokered certificates of deposits¹		303,572		167,150		80,292		80,267		80,571
TOTAL DEPOSITS²	$	14,365,100	$	14,569,070	$	14,884,584	$	14,821,453	$	14,646,576

^{1 –} Total brokered deposits of $838.3 million, which includes brokered CD’s of $303.6 million at September 30, 2024.
² – Total deposits at September 30, 2024 excludes $287.7 million of deposits reclassified to Deposits and other liabilities held for sale related to the pending Illinois branch sale.


CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
	For the Three Months Ended
	September 30, 2024						September 30, 2023
	Average Balance		Interest Income / Expense		Average Rate		Average Balance		Interest Income / Expense		Average Rate
ASSETS
Interest-bearing deposits	$	252,113	$	2,154	3.42	%	$	502,967	$	5,884	4.68	%
Federal Home Loan Bank stock		41,730		855	8.20			41,826		719	6.88
Investment Securities: ⁽¹⁾
Taxable		1,789,526		9,263	2.07			1,817,219		8,590	1.89
Tax-exempt ⁽²⁾		2,226,823		17,100	3.07			2,298,025		17,655	3.07
Total Investment Securities		4,016,349		26,363	2.63			4,115,244		26,245	2.55
Loans held for sale		31,991		483	6.04			24,227		386	6.37
Loans: ⁽³⁾
Commercial		8,699,733		164,922	7.58			8,456,527		153,993	7.28
Real estate mortgage		2,183,095		24,333	4.46			2,079,067		21,618	4.16
Installment		832,222		16,942	8.14			827,318		15,708	7.59
Tax-exempt ⁽²⁾		933,125		10,914	4.68			900,493		10,491	4.66
Total Loans		12,680,166		217,594	6.86			12,287,632		202,196	6.58
Total Earning Assets		16,990,358		246,966	5.82	%		16,947,669		235,044	5.55	%
Total Non-Earning Assets		1,370,222						1,204,570
TOTAL ASSETS	$	18,360,580					$	18,152,239
LIABILITIES
Interest-Bearing Deposits:
Interest-bearing deposits	$	5,455,298	$	40,450	2.97	%	$	5,425,829	$	37,780	2.79	%
Money market deposits		2,974,188		25,950	3.49			2,923,798		23,607	3.23
Savings deposits		1,425,047		4,208	1.18			1,641,338		3,844	0.94
Certificates and other time deposits		2,499,655		28,248	4.52			2,106,910		20,320	3.86
Total Interest-Bearing Deposits		12,354,188		98,856	3.20			12,097,875		85,551	2.83
Borrowings		1,071,440		11,117	4.15			1,032,180		10,199	3.95
Total Interest-Bearing Liabilities		13,425,628		109,973	3.28			13,130,055		95,750	2.92
Noninterest-bearing deposits		2,348,266						2,637,717
Other liabilities		335,139						230,235
Total Liabilities		16,109,033						15,998,007
STOCKHOLDERS’ EQUITY		2,251,547						2,154,232
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	18,360,580		109,973			$	18,152,239		95,750
Net Interest Income (FTE)			$	136,993					$	139,294
Net Interest Spread (FTE) ⁽⁴⁾					2.54	%					2.63	%

Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets					5.82	%					5.55	%
Interest Expense / Average Earning Assets					2.59	%					2.26	%
Net Interest Margin (FTE) ⁽⁵⁾					3.23	%					3.29	%

⁽¹⁾ Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
⁽²⁾ Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2024 and 2023. These totals equal $5,883 and $5,911 for the three months ended September 30, 2024 and 2023, respectively.
⁽³⁾ Non accruing loans have been included in the average balances.
⁽⁴⁾ Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
⁽⁵⁾ Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.


CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
	For the Nine Months Ended
	September 30, 2024						September 30, 2023
	Average Balance		Interest Income / Expense		Average Rate		Average Balance		Interest Income / Expense		Average Rate
ASSETS
Interest-bearing deposits	$	383,007	$	11,642	4.05	%	$	340,887	$	9,685	3.79	%
Federal Home Loan Bank stock		41,748		2,569	8.20			41,160		2,281	7.39
Investment Securities: ⁽¹⁾
Taxable		1,787,119		27,062	2.02			1,872,267		26,563	1.89
Tax-exempt ⁽²⁾		2,237,759		51,561	3.07			2,394,864		56,071	3.12
Total Investment Securities		4,024,878		78,623	2.60			4,267,131		82,634	2.58
Loans held for sale		27,735		1,242	5.97			22,398		1,046	6.23
Loans: ⁽³⁾
Commercial		8,659,088		484,979	7.47			8,515,148		444,422	6.96
Real estate mortgage		2,159,738		70,489	4.35			2,008,852		60,354	4.01
Installment		825,060		49,406	7.98			833,133		44,492	7.12
Tax-exempt ⁽²⁾		921,286		31,952	4.62			885,256		30,072	4.53
Total Loans		12,592,907		638,068	6.76			12,264,787		580,386	6.31
Total Earning Assets		17,042,540		730,902	5.72	%		16,913,965		674,986	5.32	%
Total Non-Earning Assets		1,331,830						1,201,539
TOTAL ASSETS	$	18,374,370					$	18,115,504
LIABILITIES
Interest-Bearing deposits:
Interest-bearing deposits	$	5,487,106	$	120,935	2.94	%	$	5,412,482	$	97,016	2.39	%
Money market deposits		3,018,526		80,563	3.56			2,812,891		55,868	2.65
Savings deposits		1,497,620		11,485	1.02			1,730,110		10,693	0.82
Certificates and other time deposits		2,447,684		83,309	4.54			1,821,408		45,860	3.36
Total Interest-Bearing Deposits		12,450,936		296,292	3.17			11,776,891		209,437	2.37
Borrowings		990,022		30,328	4.08			1,144,368		32,122	3.74
Total Interest-Bearing Liabilities		13,440,958		326,620	3.24			12,921,259		241,559	2.49
Noninterest-bearing deposits		2,375,120						2,850,557
Other liabilities		325,873						217,683
Total Liabilities		16,141,951						15,989,499
STOCKHOLDERS’ EQUITY		2,232,419						2,126,005
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	18,374,370		326,620			$	18,115,504		241,559
Net Interest Income (FTE)			$	404,282					$	433,427
Net Interest Spread (FTE) ⁽⁴⁾					2.48	%					2.83	%

Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets					5.72	%					5.32	%
Interest Expense / Average Earning Assets					2.56	%					1.90	%
Net Interest Margin (FTE) ⁽⁵⁾					3.16	%					3.42	%

⁽¹⁾ Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
⁽²⁾ Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2024 and 2023. These totals equal $17,538 and $18,090 for the nine months ended September 30, 2024 and 2023, respectively.
⁽³⁾ Non accruing loans have been included in the average balances.
⁽⁴⁾ Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
⁽⁵⁾ Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.


ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE – NON-GAAP
(Dollars In Thousands, Except Per Share Amounts)	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
		2024			2024			2024			2023			2023			2024			2023
Net Income Available to Common Stockholders – GAAP	$	48,719		$	39,456		$	47,472		$	42,010		$	55,898		$	135,647		$	179,901
Adjustments:
PPP loan income		—			—			—			(7	)		(8	)		—			(42	)
Net realized losses on sales of available for sale securities		9,114			49			2			2,317			1,650			9,165			4,613
Non-core expenses^1,2		—			—			3,481			12,682			—			3,481			—
Tax on adjustments		(2,220	)		(12	)		(848	)		(3,652	)		(403	)		(3,081	)		(1,121	)
Adjusted Net Income Available to Common Stockholders – Non-GAAP	$	55,613		$	39,493		$	50,107		$	53,350		$	57,137		$	145,212		$	183,351

Average Diluted Common Shares Outstanding (in thousands)		58,289			58,328			59,273			59,556			59,503			58,629			59,465

Diluted Earnings Per Common Share – GAAP	$	0.84		$	0.68		$	0.80		$	0.71		$	0.94		$	2.31		$	3.03
Adjustments:
PPP loan income		—			—			—			—			—			—			—
Net realized losses on sales of available for sale securities		0.15			—			—			0.04			0.03			0.16			0.07
Non-core expenses^1,2		—			—			0.06			0.21			—			0.06			—
Tax on adjustments		(0.04	)		—			(0.01	)		(0.06	)		(0.01	)		(0.05	)		(0.02	)
Adjusted Diluted Earnings Per Common Share – Non-GAAP	$	0.95		$	0.68		$	0.85		$	0.90		$	0.96		$	2.48		$	3.08

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


NET INTEREST MARGIN (“NIM”), ADJUSTED
(Dollars in Thousands, Except Per Share Amounts)
	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
		2024			2024			2024			2023			2023			2024			2023
Net Interest Income (GAAP)	$	131,110		$	128,571		$	127,063		$	130,063		$	133,383		$	386,744		$	415,337
Fully Taxable Equivalent (“FTE”) Adjustment		5,883			5,859			5,795			5,853			5,911			17,538			18,090
Net Interest Income (FTE) (non-GAAP)	$	136,993		$	134,430		$	132,858		$	135,916		$	139,294		$	404,282		$	433,427

Average Earning Assets (GAAP)	$	16,990,358		$	17,013,984		$	17,123,851		$	17,222,714		$	16,947,669		$	17,042,540		$	16,913,965
Net Interest Margin (GAAP)		3.09	%		3.02	%		2.97	%		3.02	%		3.15	%		3.03	%		3.27	%
Net Interest Margin (FTE) (non-GAAP)		3.23	%		3.16	%		3.10	%		3.16	%		3.29	%		3.16	%		3.42	%


RETURN ON TANGIBLE COMMON EQUITY – NON-GAAP
(Dollars In Thousands)	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
		2024			2024			2024			2023			2023			2024			2023
Total Average Stockholders’ Equity (GAAP)	$	2,251,547		$	2,203,361		$	2,242,139		$	2,130,993		$	2,154,232		$	2,232,419		$	2,126,005
Less: Average Preferred Stock		(25,125	)		(25,125	)		(25,125	)		(25,125	)		(25,125	)		(25,125	)		(25,125	)
Less: Average Intangible Assets, Net of Tax		(729,581	)		(730,980	)		(732,432	)		(734,007	)		(735,787	)		(730,993	)		(737,476	)
Average Tangible Common Equity, Net of Tax (Non-GAAP)	$	1,496,841		$	1,447,256		$	1,484,582		$	1,371,861		$	1,393,320		$	1,476,301		$	1,363,404

Net Income Available to Common Stockholders (GAAP)	$	48,719		$	39,456		$	47,472		$	42,010		$	55,898		$	135,647		$	179,901
Plus: Intangible Asset Amortization, Net of Tax		1,399			1,399			1,546			1,724			1,724			4,345			5,182
Tangible Net Income (Non-GAAP)	$	50,118		$	40,855		$	49,018		$	43,734		$	57,622		$	139,992		$	185,083

Return on Tangible Common Equity (Non-GAAP)		13.39	%		11.29	%		13.21	%		12.75	%		16.54	%		12.64	%		18.10	%

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

SOURCE: First Merchants Corporation, Muncie, Indiana

The MIL Network –

January 25, 2025

MIL-OSI Africa: Cassava Republic Press named the inaugural winner of Afreximbank’s CANEX Prize for Publishing in Africa, 2024

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

ALGIERS, Algeria, October 24, 2024/APO Group/ —

Afreximbank’s (www.Afreximbank.com) CANEX Prize for Publishing in Africa, a partnership between the CANEX Book Factory and the Narrative Landscape Press Limited announced Cassava Republic Press, Nigeria as its inaugural winner for the 2024 CANEX Prize for Publishing in Africa.

The award, which celebrates excellence in African publishing, recognised Cassava Republic Press for their book Female Fear Factory: Unveiling Patriarchy’s Culture of Violence by Pumla Dineo Gqola. The book was recognised for its striking cover design, elegant layout, and reader-friendly text. It was also lauded for its imaginative approach to gender issues, offering a compelling contribution to feminist literature.

Female Fear Factory explores how patriarchal society fosters violence against women, providing both a sobering account of this violence and a hopeful vision for the work of feminists worldwide. The award, which included a $20,000 prize, was presented at CANEX WKND 2024 in Algiers, Algeria, during a dinner hosted by the Honourable Soraya Mouloudji, Algeria’s Minister of Culture and Arts.

The CANEX Prize for Publishing in Africa, launched in Cairo in November 2023 on the sidelines of the Intra African Trade Fair (IATF2023), aims to promote a vibrant literary culture across Global Africa and foster a sustainable business ecosystem in the literary sector. CANEX, initiated by Afreximbank in 2020, serves as a key driver for development and job creation in Africa, recognising the opportunities within the creative and cultural industries.

The award evaluates entries based on the quality of writing, editing, and production, with particular emphasis on books printed and produced in Africa, as well as those published in indigenous African languages. This year, 85 entries were received from 49 publishers across Africa, representing a diverse range of languages, including English, French, Portuguese, and Swahili. From these submissions, the prize administrators selected five finalists for their exceptional work. The finalists included:

Cassava Republic Press (Nigeria), shortlisted for Female Fear Factory: Unravelling Patriarchy’s Culture of Violence by Pumla Dineo Gqola, was praised for its “solid cover design, elegant layout, and contribution to feminist literature.” Layla Mohamed, Editor at Cassava Republic, received the award on behalf of the publishing house.
Jacana Media (South Africa) was honoured for Paperless by Buntu Siwisa, which the judges described as “a beautifully written story of the hidden lives of migrant workers in Africa.” Kelly Mawa, Publishing Assistant at Jacana Media, accepted the award on behalf of the company.
Kachifo Limited (Nigeria), recognised for Half Hour Hara by Ugo Anidi, was celebrated for being “a delightful and engaging children’s story” with “well-crafted illustrations.” Coco Anetor-Sokei, Managing Editor, collected the award for Kachifo Limited.
La Case des Lucioles (Côte d’Ivoire), shortlisted for Reine Or by Fatou Sy, was praised for its “brave design and theatrical presentation.”
Masobe Books (Nigeria) was shortlisted for When We Were Fireflies by Abubakar Adam Ibrahim, which the judges commended for its “meticulous writing and eye-catching cover design.” Othuke Ominiabohs, Managing Director, received the medal for Masobe Books.

The awards were presented to the finalists by Honourable Mouloudji and Mrs. Kanayo Awani, Executive Vice President of the Intra-African Trade Bank at Afreximbank.

Speaking at the award ceremony, the Chair of The Judges, Dr Wale Okediran said;

“In line with our mandate to ‘judge the book as a physical object while also paying attention to its editorial work, including topical relevance and editorial risk’, the judges recognised the selected books as having met the required standard of ‘exceptional work and professionalism.”

The CANEX Prize for Publishing in Africa rewards the best trade book publishers in Africa. A prize of $20,000 is awarded to the publisher – selected from a shortlist of five (5) finalists – of the best trade book (defined as books published for a general audience, including fiction, non-fiction, and poetry; and excluding textbooks and academic books) published in the year in question. Additionally, the remaining four (4) finalists in the shortlist are awarded the amount of $2,000 each.

MIL OSI Africa –

January 25, 2025

MIL-OSI Africa: Secretary-General’s remarks to the 16th BRICS Summit [as delivered]

Source: United Nations – English

xcellencies, ladies and gentlemen,

I am grateful to participate in the 16th BRICS Summit.

Collectively, your countries represent nearly half of the world’s population.

And I salute your valuable commitment and support for international problem-solving as clearly reflected in your theme this year.

But no single group and no single country can act alone or in isolation.

It takes a community of nations, working as one global family, to address global challenges.

Challenges like the rising number of conflicts.

The devastation of climate change, pollution and biodiversity loss…

Rising inequalities and lingering poverty and hunger…

A debt crisis that threatens to smother plans for the future of many vulnerable countries…

The fact that fewer than one-fifth of the Sustainable Development Goals are on-track…

A growing digital divide, and a lack of guardrails for artificial intelligence and other frontier technologies…

And a lack of representation and voice for developing countries at global decision-making tables. From the Security Council to the Bretton-Woods institution and beyond. This must change.

September’s Summit of the Future offered a roadmap for strengthening multilateralism, and advancing peace, sustainable development and human rights.

I see four areas for action.

First — finance.

Today’s international financial system is not offering many vulnerable countries the safety net or level of support they need.

The Pact for the Future calls for accelerating reform of the international financial architecture that is outdated, ineffective and unfair.

And it includes a commitment to move forward with an SDG Stimulus to change the business model to substantially increase the lending capacity of Multilateral Development Banks to developing countries.

To recycle more Special Drawing Rights…

To restructure loans for countries drowning in debt…

And to mobilize more international and domestic resources, public and private, for vital investments in developing countries.

Next year’s Conference on Financing for Development and the Summit on Social Development are two milestones to carry these efforts forward.

We must also recognize the importance of South-South cooperation.

It doesn’t replace the commitments and obligations of developed countries.

But it is providing a growing contribution to supporting developing countries in overcoming obstacles to reaching the SDGs.

Second — climate.

Every country has committed to limit temperature rise to 1.5 degrees Celsius.

That requires dramatic action to reduce emissions now — with the G20 in the lead.

COP29 is just weeks away.

That starts the clock for countries to produce new Nationally Determined Contributions plans with 2035 targets that are aligned with the 1.5 degree goal.

COP29 must deliver an ambitious and credible outcome on the new climate finance goal.

Developed countries must also keep promises to double adaptation finance, and ensure meaningful contributions to the Loss and Damage Fund, which was not the case when it was created.

Third — technology.

Every country must be able to access the benefits of technology.

The Global Digital Compact commits to enhanced global cooperation and capacity-building.

It includes the first truly universal agreement on the international governance of Artificial Intelligence to give every country a seat at the AI table.

It calls for an independent international Scientific Panel on AI and initiating a global dialogue on its governance within the United Nations with the participations of all countries.

And it requests options for innovative financing for AI capacity-building in developing countries.

And fourth — peace.

We must strengthen and update the machinery of peace.

This includes reforms to make the United Nations Security Council reflective of today’s world.

The Pact for the Future includes important steps on disarmament — including the first multilateral agreement on nuclear disarmament in more than a decade — and steps that address the weaponization of outer space and the use of lethal autonomous weapons.

Across the board, we need peace.

We need peace in Gaza with an immediate cease-fire, the immediate and unconditional release of all hostages, the effective delivery of humanitarian aid without obstacles, and we need to make irreversible progress to end the occupation and establish the two state solution, as it was recently reaffirmed once again by a UN General Assembly resolution.

We need peace in Lebanon with an immediate cessation of hostilities, moving to the full implementation of Security Council resolution 1701.

We need peace in Ukraine. A just peace in line with the UN Charter, international law and General Assembly resolutions.

We need peace in Sudan, with all parties silencing their guns and committing to a path towards sustainable peace.

Those were the messages I have delivered to the High-Level segment of the General Assembly in September in New York. Unfortunately, they remain valid here and now.

Everywhere, we must uphold the values of the UN Charter, the rule of law, and the principles of sovereignty, territorial integrity and political independence of all States.

Excellencies, ladies and gentlemen,

The Summit of the Future charted a course to strengthen multilateralism for global development and security.

Now we must turn words into deeds and we believe BRICS can play a very important role in this direction.

Thank you.

MIL OSI Africa –

January 25, 2025

MIL-OSI Canada: Parliamentary Appearance by the Governor and the Senior Deputy Governor of the Bank of Canada

Source: Bank of Canada

October 29, 2024

OTTAWA – On Tuesday, October 29, 2024, the Governor of the Bank of Canada, Tiff Macklem, will appear before the House of Commons Standing Committee on Finance. He will be accompanied by Senior Deputy Governor Carolyn Rogers.

Time: 15:30 (Eastern Time)
Place: Parliament of Canada
West Block, Room 025-B
Ottawa, Ontario
Distribution: The Governor’s opening statement will be published on the Bank’s website at 15:30 (ET).
Media Availability: There will be no media activity following the appearance.
Webcast: Audio and video webcasts of the appearance will be accessible from the Parliament of Canada’s website.
Note: For more information, please contact Media Relations.

MIL OSI Canada News –

January 25, 2025

MIL-OSI China: BRICS countries enhance cooperation through close economic, trade exchanges

Source: People’s Republic of China – State Council News

BEIJING, Oct. 24 — Economic and trade ties among BRICS countries are becoming increasingly close, and China is playing an important role in driving mutually beneficial BRICS cooperation.

The term BRIC was initially coined in 2001 as a concept referring to the emerging market economies of Brazil, Russia, India and China. With South Africa’s inclusion in 2010, BRICS officially took shape.

Following last year’s expansion, the BRICS grouping now represents approximately 30 percent of global GDP, nearly half of the world’s population, and one-fifth of global trade. It has become the world’s most important platform for solidarity and cooperation among emerging markets and developing countries.

The 16th BRICS Summit, held Tuesday to Thursday in Kazan, Russia, has drawn global attention and is believed to bring new economic and trade cooperation opportunities between China and other BRICS nations.

China’s foreign trade with other BRICS member countries reached 4.62 trillion yuan (648 billion U.S. dollars) in the first nine months of 2024, a year-on-year increase of 5.1 percent, customs data showed.

The trade growth can be attributed to a high degree of economic complementarity, as well as China’s commitment to high-level opening up and the free trade agreements between China and other BRICS countries, said Hong Yong, a researcher with the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce.

In the industrial sector, China’s exports of steel and textile raw materials to other BRICS nations grew by 8.6 percent and 13.4 percent year on year in the first three quarters.

During the same period, China’s exports of intermediate goods such as integrated circuits, tablet display modules and aircraft parts to other BRICS countries achieved double-digit growth, helping other BRICS members boost their emerging industries.

Trade in agricultural products has also been robust. In the first three quarters, over 80 percent of poultry and frozen pollack and over 50 percent of crabs imported by China came from BRICS members.

“For BRICS countries, trade cooperation is not only conducive to promoting technological exchanges and innovation but also to bringing more development opportunities for member countries and even the world,” Hong added.

Regarding the financial sector, the New Development Bank is a flagship project of BRICS cooperation. As the first multilateral development bank established by emerging economies, the Shanghai-headquartered institution provides financing support for infrastructure development, clean energy, environmental protection, and the building of cyber infrastructure across BRICS countries.

Funding a raft of projects ranging from India’s urban rail to Brazil’s wind power complexes, the bank has cumulatively approved loans of 35 billion U.S. dollars for more than 100 projects to date.

Building on its commitment to multilateralism, BRICS has taken practical steps to unlock the potential of economic and trade cooperation and create new growth areas. These include policy coordination and joint initiatives to enhance trade and investment opportunities among member states.

At the 14th BRICS Economic and Foreign Trade Ministers’ Meeting held in Moscow in July, participants agreed to step up exchanges and cooperation in emerging areas such as global value chains, digital technologies and special economic zones, conduct practical cooperation in green product standards, electronic documentation and e-commerce, and strengthen policy exchanges, capacity building and best practice sharing.

By enhancing economic and trade exchanges, BRICS countries have capitalized on their complementary advantages, serving as an important force to oppose trade protectionism and promote global economic growth, noted Liu Ying, a researcher with the Chongyang Institute for Financial Studies, Renmin University of China.

MIL OSI China News –

January 25, 2025

MIL-OSI China: BRICS charts path at milestone summit, Xi offers five suggestions

Source: People’s Republic of China – State Council News

KAZAN, Russia, Oct. 24 — Heels clicked and shoes shuffled across the media center floors at the BRICS Kazan summit on Wednesday, as journalists from around the world rushed to cover the landmark first in-person summit since the group’s expansion.

Amid global uncertainties, BRICS embarked on a new chapter, cementing its growing influence on the world stage. Chinese President Xi Jinping, addressing the leaders in an expanded format, put forward five suggestions: building a BRICS committed to peace, innovation, green development, justice, and closer people-to-people exchanges.

“We must build on this milestone summit to set off anew and forge ahead with one heart and one mind,” Xi said. “China is willing to work with all BRICS countries to open a new horizon in the high-quality development of greater BRICS cooperation.”

This year’s summit also marked another major progress with the decision to invite a number of nations as partner countries, further advancing the group’s development.

The growing interest from countries seeking to join BRICS cooperation each year demonstrates that in today’s troubled world, BRICS is important and essential, said Bunn Nagara, director and senior fellow at Belt and Road Initiative Caucus for Asia-Pacific.

“China, led by President Xi, has contributed significantly to BRICS’ success with a progressive and enlightened approach,” said Nagara.

During Wednesday’s meetings, leaders exchanged views on BRICS cooperation and key international issues under the theme “Strengthening Multilateralism for Just Global Development and Security,” focusing on global and regional security, sustainable development, climate change, and reforms in global economic governance.

A major emphasis of the summit was the call for increased funding to support sustainable development in developing countries. Egyptian President Abdel-Fattah al-Sisi said BRICS is set to “strengthen a multipolar international system,” particularly through “innovative and effective” financing for these countries.

Russian President Vladimir Putin, who chaired the Kazan summit, said that “the trend for the BRICS’ leading role in the global economy will only strengthen.”

He warned against the ongoing risks from geopolitical tensions and the rise of unilateral sanctions and protectionism, emphasizing “a key task is to promote the use of national currencies to finance trade and investment.”

Brazilian President Luiz Inacio Lula da Silva, who participated in the summit via video link due to a head injury, echoed this sentiment. “It’s not about replacing our currencies, but we need to work so that the multipolar order we aim for is reflected in the international financial system,” said Lula.

BRICS has already made strides with the New Development Bank (NDB), headquartered in Shanghai. The BRICS countries agreed on Wednesday to support the NDB in implementing its general strategy for 2022-2026 and in expanding local currency financing.

In a declaration issued at the 16th BRICS Summit, they also agreed to jointly build the NDB into a new type of multilateral development bank for the 21st century, support its further expansion of membership, and expedite the review of membership applications from BRICS countries in accordance with its general strategy and related policies.

The BRICS countries are also encouraged to strengthen financial cooperation and promote local currency settlement, according to the declaration.

During the summit, leaders also emphasized the need for a fairer global order for the Global South. South African President Cyril Ramaphosa said that BRICS is an inclusive formation capable of changing the trajectory of the Global South. “To do this we must realize the full potential of our economic partnership, to ensure sustainable development for all and not just for some,” he said.

“The period of unilateralism is coming to an end,” added Iranian President Masoud Pezeshkian, calling for a more equitable global system.

Several speakers also highlighted the need for differentiated responsibilities in addressing climate change, urging that developing nations’ emissions reduction efforts should align with their capacities.

BRICS, initially known as “BRIC” when it was coined in 2001 by Jim O’Neill, former chief economist at Goldman Sachs, originally represented emerging market economies of Brazil, Russia, India, and China. South Africa joined in 2010, officially forming BRICS.

In a recent interview with Xinhua, O’Neill acknowledged the need for policymakers to collaborate in creating an optimal system that benefits all. “I think as we pass through time, we will find a new equilibrium where countries will be more at ease with what other countries are doing,” he said.

Other than the new full members joining on Jan. 1, 2024, over 30 countries, including Thailand, Malaysia, Türkiye and Azerbaijan, have either formally applied for or expressed interest in BRICS membership. Many other developing countries are seeking deeper cooperation with the group.

Observers view BRICS as a vital platform for developing countries to pursue growth. Ahmed Al-Ali, a political and strategic researcher at the Gulf Research Center in Dubai, noted that BRICS aims to foster a more equitable, effective, and rational international system.

It will play a crucial role in promoting development and growth opportunities for Global South countries while ensuring the sustainability of economic and social progress, said Al-Ali.

Echoing that view, Sithembiso Bhengu, a senior research fellow with the Sociology Department, University of Johannesburg, said, “The BRICS mechanism presents real possibilities for making the globe a fairer community of nations, with possibilities for mutual support and cooperation towards our respective goals in modernization and development.”

MIL OSI China News –

January 25, 2025

MIL-OSI: ACNB Corporation Reports 2024 Third Quarter Financial Results

Source: GlobeNewswire (MIL-OSI)

GETTYSBURG, Pa., Oct. 24, 2024 (GLOBE NEWSWIRE) — ACNB Corporation (NASDAQ: ACNB) (“ACNB” or the “Corporation”), financial holding company for ACNB Bank and ACNB Insurance Services, Inc., announced net income of $7.2 million, or $0.84 diluted earnings per share, for the three months ended September 30, 2024 compared to net income of $9.0 million, or $1.06 diluted earnings per share, for the three months ended September 30, 2023 and net income of $11.3 million, or $1.32 diluted earnings per share, for the three months ended June 30, 2024. Financial results for the three months ended September 30, 2024 were impacted by $1.1 million in merger-related expense due to the pending acquisition of Traditions Bancorp, Inc. Financial results for the three month period ended June 30, 2024 were impacted by a $3.2 million reversal of the provisions for credit losses and unfunded commitments.

2024 Third Quarter Highlights

Return on average assets was 1.17% and return on average equity was 9.63% for the three months ended September 30, 2024. Core return on average assets¹ was 1.32% and core return on average equity¹ was 10.81% for the three months ended September 30, 2024.

Fully taxable equivalent (“FTE”) net interest margin was 3.77% for the three months ended September 30, 2024 compared to 3.82% for the three months ended June 30, 2024 and 4.01% for the three months ended September 30, 2023.

Total non-performing loans to total loans, net of unearned income, was 0.39% at September 30, 2024 compared to 0.19% at June 30, 2024 and 0.22% at September 30, 2023. The increase in non-performing loans to total loans, net of unearned income, for the three months ended September 30, 2024 was the result of one long-standing commercial relationship in the healthcare industry, comprised of both owner-occupied commercial real estate and commercial and industrial loans, that moved into non-performing loan status during the current quarter.

Net charge-offs to average loans outstanding (annualized) were 0.01% for the three months ended September 30, 2024 and 0.00% for the three months ended June 30, 2024 compared to 0.03% for the three months ended September 30, 2023.

Tangible common equity to tangible assets ratio¹ of 10.74% at September 30, 2024 compared to 9.84% at June 30, 2024 and 8.65% at September 30, 2023. The net unrealized loss on the available for sale securities portfolio was $36.8 million at September 30, 2024 compared to a net unrealized loss of $52.7 million at June 30, 2024 and a net unrealized loss of $75.2 million at September 30, 2023.

ACNB and ACNB Bank capital levels remain well in excess of ACNB’s internal minimums and those required to be categorized as a well-capitalized institution by our bank regulators.

“We are once again pleased to share strong operating results for the third quarter of 2024. Our continued focus on profitability and asset quality as evidenced by our return on average assets and return on average equity are a testament to the continued focus on our strategic objectives,” said James P. Helt, ACNB Corporation President and Chief Executive Officer.

“During the third quarter, we were also pleased to announce the strategic acquisition of Traditions Bancorp, Inc. This acquisition will create the largest community bank in Pennsylvania with assets less than $5 billion and enhances our presence in York County and expands our branch footprint in neighboring Lancaster County. We are excited to welcome Traditions as ACNB continues to expand our market presence. This strategic acquisition will complement our current operations with profitable growth opportunities in adjacent markets while contributing to the Corporation’s established commitment of enhancing long-term shareholder value.”

Mr. Helt continued, “As we look forward to the remainder of 2024 and the start of a new year in 2025, we are excited that our strong foundation based on community banking principles combined with the growth opportunities now before us through our strategic planning objectives will enable us to continue to deliver on our commitment to our stakeholders.”

Net Interest Income and Margin

Net interest income for the three months ended September 30, 2024 totaled $20.9 million, a decrease of $803 thousand, or 3.7%, compared to the three months ended September 30, 2023 driven by a decrease in the FTE net interest margin over the same period. The FTE net interest margin for the three months ended September 30, 2024 was 3.77%, a decrease of 24 basis points from 4.01% for the three months ended September 30, 2023. The decrease in FTE net interest margin was driven primarily by an increase in long-term borrowings and promotional time deposit balances and costs. Total average borrowings increased $132.5 million for the three months ended September 30, 2024 compared to the same period in September 30, 2023. The average rate paid on total borrowings was 4.31% for the three months ended September 30, 2024, an increase of 48 basis points from the three months ended September 30, 2023. Total average interest-bearing deposits decreased $54.4 million, or 3.9%, for the three months ended September 30, 2024 compared to September 30, 2023; however, average time deposit balances increased $45.9 million due to ongoing promotions. The average rate paid on interest-bearing deposits was 0.92% for the three months ended September 30, 2024, an increase of 66 basis points from the three months ended September 30, 2023.

Net interest income for the three months ended September 30, 2024 totaled $20.9 million, a decrease of $22 thousand, or 0.1%, compared to $21.0 million for the three months ended June 30, 2024 driven by a decrease in the FTE net interest margin over the same period. The FTE net interest margin for the three months ended September 30, 2024 decreased 5 basis points from 3.82% for the three months ended June 30, 2024. The decrease in FTE net interest margin was driven primarily by the recognition of nonaccrual interest income related to a specific large relationship during the three months ended June 30, 2024 and increases in the cost of average interest-bearing deposits during the three months ended September 30, 2024. Excluding nonaccrual interest income related to the payoff of a specific large relationship, the FTE net interest margin was 3.79% for the three months ended June 30, 2024. The average rate paid on interest-bearing deposits was 0.92% for the three months ended September 30, 2024, an increase of 13 basis points from the three months ended June 30, 2024.

Noninterest Income

Noninterest income for the three months ended September 30, 2024 was $6.8 million, an increase of $536 thousand, or 8.5%, from the three months ended September 30, 2023. Wealth management income for the three months ended September 30, 2024 was $1.2 million, an increase of $235 thousand from the three months ended September 30, 2023 driven primarily by portfolio market appreciation, estate income and new business generation. Insurance commissions for the three months ended September 30, 2024 were $2.8 million, an increase of $158 thousand from the three months ended September 30, 2023 driven primarily by growth in commissions on policy renewals and new business in the current quarter. Gain from mortgage loans held for sale totaled $112 thousand for the three months ended September 30, 2024 compared to none for the three months ended September 30, 2023.

Noninterest income for the three months ended September 30, 2024 increased $406 thousand, or 6.3%, from the three months ended June 30, 2024. The increase was driven primarily by increases in wealth management income driven by higher estate income and other income driven by annual check ordering incentives received during the three months ended September 30, 2024. Additionally, there was a higher volume of mortgages sold in the current quarter, which resulted in a higher gain from mortgage loans held for sale for the three months ended September 30, 2024 compared to the three months ended June 30, 2024.

Noninterest Expense

Noninterest expense for the three months ended September 30, 2024 was $18.2 million, an increase of $1.9 million, or 11.7%, from the three months ended September 30, 2023. The increase was driven primarily by merger-related and salaries and employee benefits expenses. The increase in merger-related expense was driven primarily by professional service expenses incurred for the Traditions acquisition and totaled $1.1 million for the three months ended September 30, 2024. Salaries and employee benefits expense increased $948 thousand driven primarily by $682 thousand in higher employee health insurance expense and $273 thousand higher base wages. In addition, equipment expense increased $144 thousand driven primarily by higher core processing expenses and incremental purchases of office equipment. Partially offsetting these increases, professional services decreased $208 thousand for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 driven primarily by lower recruiting expenses for talent acquisition and consulting expenses. Marketing and corporate relations declined $60 thousand in the current quarter primarily due to rebranding expenses incurred for the three months ended September 30, 2023.

Noninterest expense for the three months ended September 30, 2024 increased $1.9 million, or 11.3%, from the three months ended June 30, 2024. The increase was driven primarily by merger-related and salaries and employee benefits expenses. Merger-related expense totaled $1.1 million for the three months ended September 30, 2024 compared to $23 thousand for the three months ended June 30, 2024. Salaries and employee benefits expense increased $591 thousand during the three months ended September 30, 2024 compared to the three months ended June 30, 2024 driven primarily by higher employee health insurance expense of $519 thousand. Additionally, equipment expense increased $128 thousand driven primarily by higher core processing and software maintenance expenses coupled with incremental purchases of office equipment. Professional services expense decreased $120 thousand during the three months ended September 30, 2024 compared to the three months ended June 30, 2024 driven primarily by lower transfer agent and audit expenses.

Loans and Asset Quality

Total loans outstanding were $1.68 billion at September 30, 2024, a decrease of $2.5 million, or 0.1%, from June 30, 2024 and an increase of $61.1 million, or 3.8%, from September 30, 2023. The decrease from June 30, 2024 was driven primarily by real estate construction. The increase from September 30, 2023 was driven primarily by growth in the commercial real estate portfolio in our core markets. Growth in the commercial real estate portfolio was spread throughout the Bank’s geographic footprint and across various property types. The commercial real estate portfolio grew $59.2 million, or 6.6%, in 2024. The collateral for these loans is primarily spread across our Pennsylvania and Maryland market areas. Despite the intense competition in the Corporation’s market areas, management continues to focus on asset quality and disciplined underwriting standards in the loan origination process.

Asset quality metrics continue to be stable. The provision for credit losses was $81 thousand and the provision for unfunded commitments was $40 thousand for the three months ended September 30, 2024 compared to a reversal to the provision for credit losses of $3.0 million and a reversal to the provision for unfunded commitments of $259 thousand for the three months ended June 30, 2024. For the three months ended September 30, 2023, there was a provision for credit losses of $250 thousand and a $171 thousand reversal to the provision for unfunded commitments. The increase in the provision for credit losses and unfunded commitments for the three months ended September 30, 2024 compared to the prior quarter was driven primarily by a $3.2 million reversal of the provision for credit losses and unfunded commitments in the prior quarter and one long-standing commercial relationship in the healthcare industry, comprised of both owner-occupied commercial real estate and commercial and industrial loans, that moved into non-performing loan status during the current quarter.

Non-performing loans were $6.6 million, or 0.39%, of total loans, net of unearned income, at September 30, 2024 compared to $3.1 million, or 0.19%, of total loans at June 30, 2024 and $3.6 million, or 0.22%, of total loans at September 30, 2023. The increase in non-performing loans at September 30, 2024 compared to the prior quarter was primarily the result of one long-standing commercial relationship in the healthcare industry, comprised of both owner-occupied commercial real estate and commercial and industrial loans, that moved into non-performing loan status during the current quarter. Annualized net charge-offs for the three months ended September 30, 2024 were 0.01% of total average loans compared to 0.00% and 0.03% for the three months ended June 30, 2024 and September 30, 2023, respectively.

Deposits and Borrowings

Deposits totaled $1.79 billion at September 30, 2024, a decrease of $47.3 million, or 2.6%, since June 30, 2024 and a decrease of $160.0 million, or 8.2%, from September 30, 2023. Included in total deposits were $1.33 billion interest-bearing deposits at September 30, 2024 which decreased $31.0 million, or 2.3%, from June 30, 2024 and decreased $58.0 million, or 4.2%, from September 30, 2023. Time deposits, included in interest-bearing deposits, increased $1.3 million, or 0.5%, and $43.5 million, or 20.4%, since June 30, 2024 and September 30, 2023, respectively. Total noninterest-bearing deposits were $463.5 million at September 30, 2024 compared to $479.7 million at June 30, 2024 and $565.5 million at September 30, 2023.

Total borrowings were $293.1 million at September 30, 2024, a decrease of $11.2 million, or 3.7%, compared to June 30, 2024 and an increase of $139.7 million, or 91.1%, compared to September 30, 2023. A $25.0 million short-term borrowing was paid off during the quarter. The average rate on total borrowings was 4.31% for the three months ended September 30, 2024 compared to 4.48% for the three months ended June 30, 2024 and 3.83% for the three months ended September 30, 2023.

Stockholders’ Equity, Dividends and Share Repurchases

Total stockholders’ equity was $306.8 million at September 30, 2024 compared to $289.3 million at June 30, 2024 and $255.6 million at September 30, 2023. Tangible book value² per share was $29.90, $27.82 and $23.80 at September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

As announced on Form 8-K on October 16, 2024, the Board of Directors approved and declared a regular quarterly cash dividend of $0.32 per share of ACNB Corporation common stock payable on December 13, 2024, to shareholders of record as of November 29, 2024. This per share amount reflects a $0.02, or 6.7%, increase over the same quarter of 2023.

ACNB repurchased 2,642 shares of ACNB common stock during the three months ended September 30, 2024.

About ACNB Corporation

ACNB Corporation, headquartered in Gettysburg, PA, is the $2.42 billion financial holding company for the wholly-owned subsidiaries of ACNB Bank, Gettysburg, PA, and ACNB Insurance Services, Inc., Westminster, MD. Originally founded in 1857, ACNB Bank serves its marketplace with banking and wealth management services, including trust and retail brokerage, via a network of 27 community banking offices and two loan offices located in the Pennsylvania counties of Adams, Cumberland, Franklin, Lancaster and York and the Maryland counties of Baltimore, Carroll and Frederick. ACNB Insurance Services, Inc. is a full-service insurance agency with licenses in 46 states. The agency offers a broad range of property, casualty, health, life and disability insurance serving personal and commercial clients through office locations in Westminster and Jarrettsville, MD, and Gettysburg, PA. For more information regarding ACNB Corporation and its subsidiaries, please visit investor.acnb.com.

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

ACNB #2024-17
October 24, 2024


ACNB Corporation Financial Highlights Selected Financial Data by Respective Quarter End (Unaudited)

(Dollars in thousands, except per share data)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
BALANCE SHEET DATA
Assets	$	2,420,914		$	2,457,753		$	2,414,288		$	2,418,847		$	2,388,522
Investment securities		483,604			483,868			490,626			517,221			501,063
Total loans, net of unearned income		1,677,112			1,679,600			1,664,980			1,627,988			1,615,966
Allowance for credit losses		(17,214	)		(17,162	)		(20,172	)		(19,969	)		(19,264	)
Deposits		1,791,317			1,838,588			1,835,224			1,861,813			1,951,359
Allowance for unfunded commitments		1,349			1,310			1,569			1,719			1,962
Borrowings		293,091			304,286			272,605			252,174			153,388
Stockholders’ equity		306,755			289,331			279,920			277,461			255,638
INCOME STATEMENT DATA
Interest and dividend income	$	27,241		$	26,869		$	25,974		$	25,284		$	24,234
Interest expense		6,299			5,905			5,381			3,791			2,489
Net interest income		20,942			20,964			20,593			21,493			21,745
Provision for (reversal of ) credit losses		81			(2,990	)		223			786			250
Provision for (reversal of) unfunded commitments		40			(259	)		(151	)		(242	)		(171	)
Net interest income after provisions for credit losses and unfunded commitments		20,821			24,213			20,521			20,949			21,666
Noninterest income		6,833			6,427			5,667			970			6,297
Noninterest expenses		18,244			16,391			17,662			17,173			16,336
Income before income taxes		9,410			14,249			8,526			4,746			11,627
Provision for income taxes		2,206			2,970			1,758			649			2,583
Net income	$	7,204		$	11,279		$	6,768		$	4,097		$	9,044
PROFITABILITY RATIOS
Total loans, net of unearned income to deposits		93.62	%		91.35	%		90.72	%		87.44	%		82.81	%
Return on average assets (annualized)		1.17			1.86			1.12			0.68			1.52
Return on average equity (annualized)		9.63			16.12			9.76			6.09			13.84
Efficiency ratio³		60.56			58.61			66.18			62.48			56.97
FTE Net interest margin		3.77			3.82			3.77			3.93			4.01
Yield on average earning assets		4.90			4.89			4.74			4.62			4.46
Yield on investment securities		2.59			2.65			2.70			2.36			2.24
Yield on total loans		5.56			5.53			5.37			5.29			5.16
Cost of funds		1.19			1.12			1.02			0.71			0.47
PER SHARE DATA
Diluted earnings per share	$	0.84		$	1.32		$	0.80		$	0.48		$	1.06
Cash dividends paid per share		0.32			0.32			0.30			0.30			0.28
Tangible book value per share³		29.90			27.82			26.70			26.44			23.80
Tangible book value per share³(excluding AOCI)⁴		33.87			33.28			32.21			31.74			31.43
CAPITAL RATIOS⁵
Tier 1 leverage ratio		12.46	%		12.25	%		11.91	%		11.57	%		11.97	%
Common equity tier 1 ratio		16.07			15.78			15.40			15.16			15.30
Tier 1 risk based capital ratio		16.36			16.07			15.69			15.45			15.59
Total risk based capital ratio		18.15			17.86			17.68			17.41			17.49
CREDIT QUALITY
Net charge-offs to average loans outstanding (annualized)		0.01	%		0.00	%		0.00	%		0.02	%		0.03	%
Total non-performing loans to total loans, net of unearned income⁶		0.39			0.19			0.24			0.26			0.22
Total non-performing assets to total assets⁷		0.29			0.14			0.18			0.19			0.17
Allowance for credit losses to total loans, net of unearned income		1.03			1.02			1.21			1.23			1.19


Consolidated Balance Sheet (Unaudited)

(Dollars in thousands, except per share data)	September 30, 2024			June 30, 2024			March 31, 2024
ASSETS
Cash and due from banks	$	24,636		$	26,681		$	17,395
Interest-bearing deposits with banks		33,456			59,593			35,740
Total Cash and Cash Equivalents		58,092			86,274			53,135
Equity securities with readily determinable fair values		947			919			918
Investment securities available for sale, at estimated fair value		418,079			418,364			425,114
Investment securities held to maturity, at amortized cost (fair value $59,038, $57,026, and $58,084)		64,578			64,585			64,594
Loans held for sale		1,080			1,801			88
Total loans, net of unearned income		1,677,112			1,679,600			1,664,980
Less: Allowance for credit losses		(17,214	)		(17,162	)		(20,172	)
Loans, net		1,659,898			1,662,438			1,644,808
Premises and equipment, net		25,542			25,760			25,916
Right of use asset		2,110			2,278			2,447
Restricted investment in bank stocks		10,853			11,853			10,877
Investment in bank-owned life insurance		81,344			80,841			80,348
Investments in low-income housing partnerships		909			940			971
Goodwill		44,185			44,185			44,185
Intangible assets, net		8,142			8,446			8,761
Foreclosed assets held for resale		406			406			467
Other assets		44,749			48,663			51,659
Total Assets	$	2,420,914		$	2,457,753		$	2,414,288

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Noninterest-bearing	$	463,501		$	479,726		$	499,583
Interest-bearing		1,327,816			1,358,862			1,335,641
Total Deposits		1,791,317			1,838,588			1,835,224
Short-term borrowings		37,769			48,974			17,303
Long-term borrowings		255,322			255,312			255,302
Lease liability		2,110			2,278			2,447
Allowance for unfunded commitments		1,349			1,310			1,569
Other liabilities		26,292			21,960			22,523
Total Liabilities		2,114,159			2,168,422			2,134,368

Stockholders’ Equity:
Preferred Stock, $2.50 par value; 20,000,000 shares authorized; no shares outstanding at September 30, 2024, June 30, 2024 and March 31, 2024		—			—			—
Common stock, $2.50 par value; 20,000,000 shares authorized; 8,940,133, 8,934,495, and 8,928,441 shares issued; 8,548,625, 8,545,629, and 8,539,575 shares outstanding at September 30, 2024, June 30, 2024 and March 31, 2024, respectively		22,344			22,330			22,315
Treasury stock, at cost; 391,508, at September 30, 2024, and 388,866 at both June 30, 2024 and March 31, 2024		(11,203	)		(11,101	)		(11,101	)
Additional paid-in capital		98,697			98,230			97,818
Retained earnings		230,752			226,271			217,712
Accumulated other comprehensive loss		(33,835	)		(46,399	)		(46,824	)
Total Stockholders’ Equity		306,755			289,331			279,920
Total Liabilities and Stockholders’ Equity	$	2,420,914		$	2,457,753		$	2,414,288


Consolidated Income Statements (Unaudited)

	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands, except per share data)	2024		2023			2024			2023
INTEREST AND DIVIDEND INCOME
Loans, including fees
Taxable	$	23,108	$	20,285		$	67,253		$	58,130
Tax-exempt		311		361			943			1,069
Investment securities:
Taxable		2,617		2,477			8,193			8,451
Tax-exempt		284		284			852			883
Dividends		251		104			739			196
Other		670		723			2,104			2,627
Total Interest and Dividend Income		27,241		24,234			80,084			71,356
INTEREST EXPENSE
Deposits		3,112		928			7,915			1,887
Short-term borrowings		204		439			847			564
Long-term borrowings		2,983		1,122			8,823			2,078
Total Interest Expense		6,299		2,489			17,585			4,529
Net Interest Income		20,942		21,745			62,499			66,827
Provision for (reversal of) credit losses		81		250			(2,686	)		74
Provision for (reversal of) unfunded commitments		40		(171	)		(370	)		226
Net Interest Income after Provisions for (Reversal of) Credit Losses and Unfunded Commitments		20,821		21,666			65,555			66,527
NONINTEREST INCOME
Insurance commissions		2,787		2,629			7,649			7,371
Service charges on deposits		1,048		1,000			3,060			2,951
Wealth management		1,188		953			3,219			2,772
ATM debit card charges		828		845			2,488			2,502
Earnings on investment in bank-owned life insurance		503		473			1,473			1,399
Gain from mortgage loans held for sale		112		—			194			31
Net gains (losses) on sales or calls of investment securities		—		—			69			(739	)
Net gains (losses) on equity securities		28		(27	)		19			(22	)
Gain on assets held for sale		—		14			—			337
Other		339		410			756			873
Total Noninterest Income		6,833		6,297			18,927			17,475
NONINTEREST EXPENSES
Salaries and employee benefits		11,017		10,069			32,611			30,335
Equipment		1,698		1,554			4,997			4,784
Net occupancy		945		942			3,066			2,981
Professional services		409		617			1,554			1,600
FDIC and regulatory		365		388			1,088			932
Other tax		360		323			1,086			965
Intangible assets amortization		304		352			940			1,072
Supplies and postage		236		229			610			633
Marketing and corporate relations		99		159			275			472
Merger-related		1,137		—			1,160			—
Other		1,674		1,703			4,910			5,125
Total Noninterest Expenses		18,244		16,336			52,297			48,899
Income Before Income Taxes		9,410		11,627			32,185			35,103
Provision for income taxes		2,206		2,583			6,934			7,512
Net Income	$	7,204	$	9,044		$	25,251		$	27,591
PER SHARE DATA
Basic earnings	$	0.85	$	1.06		$	2.97		$	3.24
Diluted earnings	$	0.84	$	1.06		$	2.96		$	3.23
Weighted average shares basic		8,507,140		8,517,917			8,500,860			8,518,006
Weighted average shares diluted		8,545,578		8,551,545			8,532,691			8,544,732


Average Balances, Income and Expenses, Yields and Rates

	Three months ended								Three months ended								Three months ended								Three months ended								Three months ended
	September 30, 2024								June 30, 2024								March 31, 2024								December 31, 2023								September 30, 2023
(Dollars in thousands)	Average Balance			Interest⁸			Yield/ Rate		Average Balance			Interest⁸			Yield/ Rate		Average Balance			Interest⁸			Yield/ Rate		Average Balance			Interest⁸			Yield/ Rate		Average Balance			Interest⁸			Yield/ Rate
ASSETS
Loans:
Taxable	$	1,618,879		$	23,108		5.68	%	$	1,612,380		$	22,675		5.66	%	$	1,573,109		$	21,470		5.49	%	$	1,559,411		$	21,303		5.42	%	$	1,520,134		$	20,285		5.29	%
Tax-exempt		62,401			394		2.51			64,276			396		2.48			65,825			404		2.47			69,058			425		2.44			73,995			457		2.45
Total Loans⁹		1,681,280			23,502		5.56			1,676,656			23,071		5.53			1,638,934			21,874		5.37			1,628,469			21,728		5.29			1,594,129			20,742		5.16
Investment Securities:
Taxable		441,135			2,868		2.59			442,390			2,913		2.65			467,466			3,151		2.71			453,713			2,669		2.33			466,402			2,581		2.20
Tax-exempt		54,549			359		2.62			54,644			359		2.64			54,740			359		2.64			54,835			361		2.61			55,027			359		2.59
Total Investments¹⁰		495,684			3,227		2.59			497,034			3,272		2.65			522,206			3,510		2.70			508,548			3,030		2.36			521,429			2,940		2.24
Interest-bearing deposits with banks		48,794			670		5.46			50,851			684		5.41			54,156			750		5.57			50,225			691		5.46			53,324			723		5.38
Total Earning Assets		2,225,758			27,399		4.90			2,224,541			27,027		4.89			2,215,296			26,134		4.74			2,187,242			25,449		4.62			2,168,882			24,405		4.46
Cash and due from banks		21,684								21,041								20,540								21,578								23,783
Premises and equipment		25,716								25,903								26,102								25,983								25,980
Other assets		184,105								187,937								187,075								191,329								165,821
Allowance for credit losses		(17,147	)							(20,124	)							(19,963	)							(19,232	)							(19,101	)
Total Assets	$	2,440,116							$	2,439,298							$	2,429,050							$	2,406,900							$	2,365,365
LIABILITIES
Interest-bearing demand deposits	$	518,368		$	552		0.42	%	$	513,163		$	275		0.22	%	$	512,701		$	264		0.21	%	$	560,510		$	275		0.19	%	$	571,314		$	185		0.13	%
Money markets		246,653			692		1.12			248,191			613		0.99			248,297			536		0.87			274,226			707		1.02			245,899			312		0.50
Savings deposits		318,291			26		0.03			327,274			30		0.04			335,215			29		0.03			348,244			28		0.03			366,398			30		0.03
Time deposits		258,053			1,842		2.84			263,045			1,725		2.64			244,481			1,331		2.19			221,778			798		1.43			212,159			401		0.75
Total Interest-Bearing Deposits		1,341,365			3,112		0.92			1,351,673			2,643		0.79			1,340,694			2,160		0.65			1,404,758			1,808		0.51			1,395,770			928		0.26
Short-term borrowings		38,666			204		2.10			37,256			304		3.28			47,084			339		2.90			56,872			334		2.33			66,942			439		2.60
Long-term borrowings		255,316			2,983		4.65			255,305			2,958		4.66			248,701			2,882		4.66			137,026			1,649		4.77			94,554			1,122		4.71
Total Borrowings		293,982			3,187		4.31			292,561			3,262		4.48			295,785			3,221		4.38			193,898			1,983		4.06			161,496			1,561		3.83
Total Interest-Bearing Liabilities		1,635,347			6,299		1.53			1,644,234			5,905		1.44			1,636,479			5,381		1.32			1,598,656			3,791		0.94			1,557,266			2,489		0.63
Noninterest-bearing demand deposits		477,350								485,351								486,648								519,797								541,995
Other liabilities		29,946								28,348								26,904								21,648								6,820
Stockholders’ Equity		297,473								281,365								279,019								266,799								259,284
Total Liabilities and Stockholders’ Equity	$	2,440,116							$	2,439,298							$	2,429,050							$	2,406,900							$	2,365,365
Taxable Equivalent Net Interest Income					21,100								21,122								20,753								21,658								21,916
Taxable Equivalent Adjustment					(158	)							(158	)							(160	)							(165	)							(171	)
Net Interest Income				$	20,942							$	20,964							$	20,593							$	21,493							$	21,745
Cost of Funds							1.19	%							1.12	%							1.02	%							0.71	%							0.47	%
FTE Net Interest Margin							3.77	%							3.82	%							3.77	%							3.93	%							4.01	%


Average Balances, Income and Expenses, Yields and Rates

	Nine Months Ended September 30, 2024								Nine Months Ended September 30, 2023
(Dollars in thousands)	Average Balance			Interest¹¹			Yield/ Rate		Average Balance			Interest¹¹			Yield/ Rate
ASSETS
Loans:
Taxable	$	1,601,520		$	67,253		5.61	%	$	1,479,690		$	58,130		5.25	%
Tax-exempt		64,161			1,194		2.49			75,657			1,353		2.39
Total Loans¹²		1,665,681			68,447		5.49			1,555,347			59,483		5.11
Investment Securities:
Taxable		450,297			8,932		2.65			507,061			8,647		2.28
Tax-exempt		54,644			1,078		2.64			55,307			1,118		2.70
Total Investments¹³		504,941			10,010		2.65			562,368			9,765		2.32
Interest-bearing deposits with banks		51,258			2,104		5.48			71,645			2,627		4.90
Total Earning Assets		2,221,880			80,561		4.84			2,189,360			71,875		4.39
Cash and due from banks		21,091								30,891
Premises and equipment		25,939								26,415
Other assets		186,330								159,544
Allowance for credit losses		(19,071	)							(18,807	)
Total Assets	$	2,436,169							$	2,387,403
LIABILITIES
Interest-bearing demand deposits	$	514,757		$	1,092		0.28	%	$	580,180		$	690		0.16	%
Money markets		247,710			1,841		0.99			276,154			277		0.13
Savings deposits		326,895			84		0.03			385,753			94		0.03
Time deposits		255,203			4,898		2.56			234,951			826		0.47
Total Interest-Bearing Deposits		1,344,565			7,915		0.79			1,477,038			1,887		0.17
Short-term borrowings		40,993			847		2.76			47,852			564		1.58
Long-term borrowings		253,116			8,823		4.66			58,333			2,078		4.76
Total Borrowings		294,109			9,670		4.39			106,185			2,642		3.33
Total Interest-Bearing Liabilities		1,638,674			17,585		1.43			1,583,223			4,529		0.38
Noninterest-bearing demand deposits		483,095								550,206
Other liabilities		28,406								(2,552	)
Stockholders’ Equity		285,994								256,526
Total Liabilities and Stockholders’ Equity	$	2,436,169							$	2,387,403
Taxable Equivalent Net Interest Income					62,976								67,346
Taxable Equivalent Adjustment					(477	)							(519	)
Net Interest Income				$	62,499							$	66,827
Cost of Funds							1.11	%							0.28	%
FTE Net Interest Margin							3.79	%							4.11	%

Non-GAAP Reconciliation
Note: The Corporation has presented the following non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation’s results of operations and financial condition. These non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation’s industry. Investors should recognize that the Corporation’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other corporations. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety.

	Three Months Ended
(Dollars in thousands, except per share data)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Tangible book value per share
Stockholders’ equity	$	306,755		$	289,331		$	279,920		$	277,461		$	255,638
Less: Goodwill and intangible assets		(52,327	)		(52,631	)		(52,946	)		(53,267	)		(53,619	)
Tangible common stockholders’ equity (numerator)	$	254,428		$	236,700		$	226,974		$	224,194		$	202,019
Shares outstanding, less unvested shares, end of period (denominator)		8,510,187			8,507,191			8,501,137			8,478,460			8,488,446
Tangible book value per share	$	29.90		$	27.82		$	26.70		$	26.44		$	23.80
Tangible book value per share (excluding AOCI)
Tangible common stockholders’ equity	$	254,428		$	236,700		$	226,974		$	224,194		$	202,019
Less: AOCI		(33,835	)		(46,399	)		(46,824	)		(44,909	)		(64,767	)
Tangible equity (excluding AOCI)	$	288,263		$	283,099		$	273,798		$	269,103		$	266,786
Tangible book value per share (excluding AOCI)	$	33.87		$	33.28		$	32.21		$	31.74		$	31.43
Tangible common equity to tangible assets (TCE/TA Ratio)
Tangible common stockholders’ equity (numerator)	$	254,428		$	236,700		$	226,974		$	224,194		$	202,019
Total assets	$	2,420,914		$	2,457,753		$	2,414,288		$	2,418,847		$	2,388,522
Less: Goodwill and intangible assets		(52,327	)		(52,631	)		(52,946	)		(53,267	)		(53,619	)
Total tangible assets (denominator)	$	2,368,587		$	2,405,122		$	2,361,342		$	2,365,580		$	2,334,903
Tangible common equity to tangible assets		10.74	%		9.84	%		9.61	%		9.48	%		8.65	%
Efficiency Ratio
Noninterest expense	$	18,244		$	16,391		$	17,662		$	17,173		$	16,336
Less: Intangible amortization		304			315			321			352			352
Less: Merger-related expense		1,137			23			—			—			—
Noninterest expense (numerator)	$	16,803		$	16,053		$	17,341		$	16,821		$	15,984
Net interest income	$	20,942		$	20,964		$	20,593		$	21,493		$	21,745
Plus: Total noninterest income		6,833			6,427			5,667			970			6,297
Less: Net gains (losses) on sales or calls of securities		—			—			69			(4,501	)		—
Less: Net gains (losses) on equity securities		28			1			(10	)		40			(27	)
Less: Gain on assets held for sale		—			—			—			—			14
Total revenue (denominator)	$	27,747		$	27,390		$	26,201		$	26,924		$	28,055
Efficiency ratio		60.56	%		58.61	%		66.18	%		62.48	%		56.97	%

Non-GAAP Reconciliation

Note: The Corporation has presented the following non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation’s results of operations and financial condition. These non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation’s industry. Investors should recognize that the Corporation’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other corporations. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety.

(Dollars in thousands)	Three Months Ended September 30, 2024
Core return on average assets
Net income	$	7,204
Merger-related expense, net of taxes		879
Core net income (numerator)	$	8,083
Average assets (denominator)	$	2,440,116
Core return on average assets		1.32	%

Core return on average equity
Core net income (numerator)	$	8,083
Average equity (denominator)	$	297,473
Core return on average equity		10.81	%

^¹ Non-GAAP financial measure. Please refer to the calculation on the pages titled “Non-GAAP Reconciliation” at the end of this document.
^² Non-GAAP financial measure. Please refer to the calculation on the pages titled “Non-GAAP Reconciliation” at the end of this document.
^³ Non-GAAP financial measure. Please refer to the calculation on the pages titled “Non-GAAP Reconciliation” at the end of this document.
^⁴ Accumulated Other Comprehensive Loss.
^⁵ Regulatory capital ratios as of September 30, 2024 are preliminary.
^⁶ Non-performing Loans consists of loans on nonaccrual status and loans greater than 90 days past due and still accruing interest.
^⁷ Non-performing Assets consists of Non-performing Loans and Foreclosed assets held for resale.
^⁸ Income on interest-earning assets has been computed on a fully taxable equivalent (FTE) basis using the 21% federal income tax statutory rate.
^⁹ Average balances include non-accrual loans and are net of unearned income.
^¹⁰ Average balances of investment securities is computed at fair value.
^¹¹ Income on interest-earning assets has been computed on a fully taxable equivalent basis (FTE) using the 21% federal income tax statutory rate.
^¹² Average balances include non-accrual loans and are net of unearned income.
^¹³ Average balances of investment securities is computed at fair value.


Contact:	Jason H. Weber
	EVP/Treasurer &
	Chief Financial Officer
	717.339.5090
	jweber@acnb.com

The MIL Network –

January 25, 2025

MIL-OSI: HomeTrust Bancshares, Inc. Announces Financial Results for the Third Quarter of the Year Ending December 31, 2024 and an Increase in the Quarterly Dividend

Source: GlobeNewswire (MIL-OSI)

ASHEVILLE, N.C., Oct. 24, 2024 (GLOBE NEWSWIRE) — HomeTrust Bancshares, Inc. (NASDAQ: HTBI) (“Company”), the holding company of HomeTrust Bank (“Bank”), today announced preliminary net income for the third quarter of the year ending December 31, 2024 and an increase in its quarterly cash dividend.

For the quarter ended September 30, 2024 compared to the quarter ended June 30, 2024:

net income was $13.1 million compared to $12.4 million;
diluted earnings per share (“EPS”) were $0.76 compared to $0.73;
annualized return on assets (“ROA”) was 1.17% compared to 1.13%;
annualized return on equity (“ROE”) was 9.76% compared to 9.58%;
net interest margin was 4.00% compared to 4.08%;
provision for credit losses was $3.0 million compared to $4.3 million; and
quarterly cash dividends continued at $0.11 per share totaling $1.9 million for both periods.

For the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023:

net income was $40.6 million compared to $36.6 million;
diluted EPS were $2.37 compared to $2.18;
annualized ROA was 1.22% compared to 1.15%;
annualized ROE was 10.39% compared to 10.56%;
net interest margin was 4.03% compared to 4.29%;
provision for credit losses was $8.4 million compared to $11.7 million;
tax-free death benefit proceeds from life insurance were $1.1 million for both periods; and
cash dividends of $0.33 per share totaling $5.6 million compared to $0.30 per share totaling $5.1 million.

Results for the nine months ended September 30, 2023 include the impact of the merger of Quantum Capital Corp. (“Quantum”) into the Company effective February 12, 2023. The addition of Quantum contributed total assets of $656.7 million, including loans of $561.9 million, and $570.6 million of deposits, all reflecting the impact of purchase accounting adjustments. Merger-related expenses of $4.7 million were recognized during the nine months ended September 30, 2023, while a $5.3 million provision for credit losses was recognized during the same period to establish allowances for credit losses on both Quantum’s loan portfolio and off-balance-sheet credit exposure.

The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.12 per common share, reflecting a $0.01, or 9.0%, increase over the previous quarter’s dividend. This is the sixth increase of the quarterly dividend since the Company initiated cash dividends in November 2018. The dividend is payable on November 27, 2024 to shareholders of record as of the close of business on November 14, 2024.

“We are pleased to report another quarter of strong financial results,” said Hunter Westbrook, President and Chief Executive Officer. “We maintained our top quartile net interest margin, our ninth straight quarter at 4.00% or more. In addition, noninterest income and expense were both in line with prior quarters. Our provision for credit losses of $3.0 million included an additional $2.2 million as a reserve build for the potential impact of Hurricane Helene upon our loan portfolio. We have begun working with our loan customers on payment deferrals of up to six months, and although we aren’t currently aware of any collectability issues, we will continue assessing the impact of the storm upon our customer base.

“As you know, many of the communities we serve were affected by this storm, impacting both our employees and customers. I’d first like to thank our employees who have assisted in maintaining bank operations while also tending to their personal and familial responsibilities. It has been amazing to watch the teamwork, collaboration and personal sacrifice across all areas of the Bank as we remained functionally operational throughout the storm, including our electronic banking services and online operations. Currently, all of our banking locations are open with most of the affected areas in our markets recovering well and operating close to normal. As for our customers in the affected areas, it will take time to assess, react and recover from Hurricane Helene. We are committed to working with them to provide the banking support needed for their businesses and homes.

“Lastly, I am thankful for the Company’s financial strength and geographic diversification which we have built over the last decade, with respect to both our employees and customer base, which provides the foundation to overcome unforeseen events such as this storm. We remain optimistic as we work together to continue the recovery.”

WEBSITE: WWW.HTB.COM

Comparison of Results of Operations for the Three Months Ended September 30, 2024 and June 30, 2024
Net Income. Net income totaled $13.1 million, or $0.76 per diluted share, for the three months ended September 30, 2024 compared to $12.4 million, or $0.73 per diluted share, for the three months ended June 30, 2024, an increase of $694,000, or 5.6%. Results for the three months ended September 30, 2024 were positively impacted by a decrease of $1.3 million in the provision for credit losses. Details of the changes in the various components of net income are further discussed below.

Net Interest Income. The following table presents the distribution of average assets, liabilities and equity, as well as interest income earned on average interest-earning assets and interest expense paid on average interest-bearing liabilities. All average balances are daily average balances. Nonaccruing loans have been included in the table as loans carrying a zero yield.

	Three Months Ended
	September 30, 2024							June 30, 2024
(Dollars in thousands)	Average Balance Outstanding			Interest Earned / Paid		Yield / Rate		Average Balance Outstanding			Interest Earned / Paid		Yield / Rate
Assets
Interest-earning assets
Loans receivable⁽¹⁾	$	3,899,460		$	63,305	6.46	%	$	3,885,222		$	62,161	6.43	%
Debt securities available for sale		140,246			1,616	4.58			134,334			1,495	4.48
Other interest-earning assets⁽²⁾		144,931			1,728	4.74			140,376			1,758	5.04
Total interest-earning assets		4,184,637			66,649	6.34			4,159,932			65,414	6.32
Other assets		264,579							266,983
Total assets	$	4,449,216						$	4,426,915
Liabilities and equity
Interest-bearing liabilities
Interest-bearing checking accounts	$	548,024		$	1,278	0.93	%	$	586,396		$	1,445	0.99	%
Money market accounts		1,335,798			10,757	3.20			1,298,177			10,221	3.17
Savings accounts		182,618			40	0.09			188,028			41	0.09
Certificate accounts		1,012,765			11,617	4.56			902,864			9,976	4.44
Total interest-bearing deposits		3,079,205			23,692	3.06			2,975,465			21,683	2.93
Junior subordinated debt		10,079			235	9.28			10,054			234	9.36
Borrowings		40,399			648	6.38			87,315			1,331	6.13
Total interest-bearing liabilities		3,129,683			24,575	3.12			3,072,834			23,248	3.04
Noninterest-bearing deposits		719,710							769,016
Other liabilities		65,097							63,503
Total liabilities		3,914,490							3,905,353
Stockholders’ equity		534,726							521,562
Total liabilities and stockholders’ equity	$	4,449,216						$	4,426,915
Net earning assets	$	1,054,954						$	1,087,098
Average interest-earning assets to average interest-bearing liabilities		133.71	%						135.38	%
Non-tax-equivalent
Net interest income				$	42,074						$	42,166
Interest rate spread						3.22	%						3.28	%
Net interest margin⁽³⁾						4.00	%						4.08	%
Tax-equivalent⁽⁴⁾
Net interest income				$	42,442						$	42,520
Interest rate spread						3.25	%						3.32	%
Net interest margin⁽³⁾						4.03	%						4.11	%

^{(1)  Average loans receivable balances include loans held for sale and nonaccruing loans.}
^{(2)  Average other interest-earning assets consist of FRB stock, FHLB stock, SBIC investments and deposits in other banks.}
^{(3)  Net interest income divided by average interest-earning assets.}
^{(4)  Tax-equivalent results include adjustments to interest income of $368 and $354 for the three months ended September 30, 2024 and June 30, 2024, respectively, calculated based on a combined federal and state tax rate of 24%.}

Total interest and dividend income for the three months ended September 30, 2024 increased $1.2 million, or 1.9%, compared to the three months ended June 30, 2024, which was driven by a $1.1 million, or 1.8%, increase in loan interest income primarily due to the difference in the number of days in each quarter. Accretion income on acquired loans of $640,000 and $678,000 was recognized during the same periods, respectively, and was included in interest income on loans.

Total interest expense for the three months ended September 30, 2024 increased $1.3 million, or 5.7%, compared to the three months ended June 30, 2024. The increase was primarily the result of increases in the average balances of money market and certificate accounts, partially offset by a decline in average borrowings outstanding.

The following table shows the effects that changes in average balances (volume), including the difference in the number of days in the periods compared, and average interest rates (rate) had on the interest earned on interest-earning assets and interest paid on interest-bearing liabilities:

	Increase / (Decrease) Due to						Total Increase / (Decrease)
(Dollars in thousands)	Volume			Rate			Total Increase / (Decrease)
Interest-earning assets
Loans receivable	$	916		$	228		$	1,144
Debt securities available for sale		83			38			121
Other interest-earning assets		76			(106	)		(30	)
Total interest-earning assets		1,075			160			1,235
Interest-bearing liabilities
Interest-bearing checking accounts		(81	)		(86	)		(167	)
Money market accounts		413			123			536
Savings accounts		(1	)		—			(1	)
Certificate accounts		1,341			300			1,641
Junior subordinated debt		3			(2	)		1
Borrowings		(708	)		25			(683	)
Total interest-bearing liabilities		967			360			1,327
Decrease in net interest income							$	(92	)

Provision for Credit Losses. The provision for credit losses is the amount of expense that, based on our judgment, is required to maintain the allowance for credit losses (“ACL”) at an appropriate level under the current expected credit losses model.

The following table presents a breakdown of the components of the provision for credit losses:

	Three Months Ended
(Dollars in thousands)	September 30, 2024			June 30, 2024			$ Change			% Change
Provision for credit losses
Loans	$	2,990		$	4,300		$	(1,310	)	(30	)%
Off-balance-sheet credit exposure		(15	)		(40	)		25		63
Total provision for credit losses	$	2,975		$	4,260		$	(1,285	)	(30	)%

For the quarter ended September 30, 2024, the “loans” portion of the provision for credit losses was the result of the following, offset by net charge-offs of $4.1 million during the quarter:

$0.4 million benefit driven by changes in the loan mix.
$1.2 million provision due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments. Included in this change was the addition of a $2.2 million qualitative allocation for the potential impact of Hurricane Helene upon our loan portfolio.
$1.9 million decrease in specific reserves on individually evaluated loans as we charged-off specific reserves which had previously been established.

For the quarter ended June 30, 2024, the “loans” portion of the provision for credit losses was the result of the following, in addition to net charge-offs of $2.6 million during the quarter:

$0.1 million provision driven by changes in the loan mix.
$0.4 million benefit due to changes in the projected economic forecast and changes in qualitative adjustments.
$2.0 million increase in specific reserves on individually evaluated loans which was proportional to the increase in the associated loan balances which increased from $8.3 million to $16.3 million quarter-over-quarter, concentrated in the equipment finance and SBA portfolios.

For the quarters ended September 30, 2024 and June 30, 2024, the amounts recorded for off-balance-sheet credit exposure were the result of changes in the balance of loan commitments, loan mix and projected economic forecast as outlined above.

Noninterest Income. Noninterest income for the three months ended September 30, 2024 increased $169,000, or 2.1%, when compared to the quarter ended June 30, 2024. Changes in the components of noninterest income are discussed below:

	Three Months Ended
(Dollars in thousands)	September 30, 2024		June 30, 2024		$ Change			% Change
Noninterest income
Service charges and fees on deposit accounts	$	2,336	$	2,354	$	(18	)	(1	)%
Loan income and fees		684		647		37		6
Gain on sale of loans held for sale		1,900		1,828		72		4
Bank owned life insurance (“BOLI”) income		828		807		21		3
Operating lease income		1,637		1,591		46		3
Other		897		886		11		1
Total noninterest income	$	8,282	$	8,113	$	169		2	%

Gain on sale of loans held for sale: The increase was primarily driven by residential mortgage loans sold during the period. There were $21.7 million of residential mortgage loans originated for sale which were sold during the current quarter with gains of $479,000 compared to $21.3 million sold with gains of $351,000 in the prior quarter, with the improvement in profitability due to movement in interest rates. There were $54.6 million of HELOCs sold for a gain of $414,000 compared to $32.9 million sold with gains of $457,000 in the prior quarter. There were $12.9 million in sales of the guaranteed portion of SBA commercial loans with gains of $1.0 million for the quarter compared to $12.7 million sold and gains of $1.1 million for the prior quarter. Our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in a gain of $18,000 for the quarter ended September 30, 2024 versus a loss of $58,000 for the quarter ended June 30, 2024.

Noninterest Expense. Noninterest expense for the three months ended September 30, 2024 increased $375,000, or 1.2%, when compared to the three months ended June 30, 2024. Changes in the components of noninterest expense are discussed below:

	Three Months Ended
(Dollars in thousands)	September 30, 2024		June 30, 2024		$ Change			% Change
Noninterest expense
Salaries and employee benefits	$	17,082	$	16,608	$	474		3	%
Occupancy expense, net		2,436		2,419		17		1
Computer services		3,192		3,116		76		2
Telephone, postage and supplies		547		580		(33	)	(6	)
Marketing and advertising		408		606		(198	)	(33	)
Deposit insurance premiums		589		531		58		11
Core deposit intangible amortization		567		567		—		—
Other		5,764		5,783		(19	)	—
Total noninterest expense	$	30,585	$	30,210	$	375		1	%

Salaries and employee benefits: The quarter-over-quarter increase was primarily the result of executive pay increases effective this quarter and additional stock incentive expense associated with the vesting of performance-based equity awards.
Marketing and advertising: The decrease in expense was the result of both differences in the timing of when expenses were incurred quarter-over-quarter as well as a reduction in traditional media advertising (print, billboards, etc.) in favor of digital platforms at lower costs.

Income Taxes. The amount of income tax expense is influenced by the amount of pre-tax income, tax-exempt income, changes in the statutory rate and the effect of changes in valuation allowances maintained against deferred tax benefits. The effective tax rates for the three months ended September 30, 2024 and June 30, 2024 were 21.9% and 21.4%, respectively.

Comparison of Results of Operations for the Nine Months Ended September 30, 2024 and September 30, 2023
Net Income. Net income totaled $40.6 million, or $2.37 per diluted share, for the nine months ended September 30, 2024 compared to $36.6 million, or $2.18 per diluted share, for the nine months ended September 30, 2023, an increase of $4.0 million, or 11.0%. The results for the nine months ended September 30, 2024 were positively impacted by a decrease of $3.3 million in the provision for credit losses, a $1.4 million increase in noninterest income, and a $2.6 million decrease in noninterest expense, partially offset by a $2.0 million decrease in net interest income and a $1.3 million increase in income tax expense. Details of the changes in the various components of net income are further discussed below.

Net Interest Income. The following table presents the distribution of average assets, liabilities and equity, as well as interest income earned on average interest-earning assets and interest expense paid on average interest-bearing liabilities. All average balances are daily average balances. Nonaccruing loans have been included in the table as loans carrying a zero yield.

	Nine Months Ended
	September 30, 2024							September 30, 2023
(Dollars in thousands)	Average Balance Outstanding			Interest Earned / Paid		Yield / Rate		Average Balance Outstanding			Interest Earned / Paid		Yield / Rate
Assets
Interest-earning assets
Loans receivable⁽¹⁾	$	3,883,040		$	185,418	6.38	%	$	3,684,518		$	162,526	5.90	%
Debt securities available for sale		133,779			4,424	4.42			155,884			3,780	3.24
Other interest-earning assets⁽²⁾		138,956			5,576	5.36			137,065			5,356	5.22
Total interest-earning assets		4,155,775			195,418	6.28			3,977,467			171,662	5.77
Other assets		276,516							266,867
Total assets	$	4,432,291						$	4,244,334
Liabilities and equity
Interest-bearing liabilities
Interest-bearing checking accounts	$	574,954		$	4,149	0.96	%	$	627,200		$	3,241	0.69	%
Money market accounts		1,305,217			30,642	3.14			1,206,119			18,604	2.06
Savings accounts		187,447			124	0.09			218,683			143	0.09
Certificate accounts		934,702			30,778	4.40			649,755			14,967	3.08
Total interest-bearing deposits		3,002,320			65,693	2.92			2,701,757			36,955	1.83
Junior subordinated debt		10,054			705	9.37			8,428			563	8.93
Borrowings		76,823			3,550	6.17			158,965			6,634	5.58
Total interest-bearing liabilities		3,089,197			69,948	3.02			2,869,150			44,152	2.06
Noninterest-bearing deposits		766,110							857,315
Other liabilities		55,217							54,513
Total liabilities		3,910,524							3,780,978
Stockholders’ equity		521,767							463,356
Total liabilities and stockholders’ equity	$	4,432,291						$	4,244,334
Net earning assets	$	1,066,578						$	1,108,317
Average interest-earning assets to average interest-bearing liabilities		134.53	%						138.63	%
Non-tax-equivalent
Net interest income				$	125,470						$	127,510
Interest rate spread						3.26	%						3.71	%
Net interest margin⁽³⁾						4.03	%						4.29	%
Tax-equivalent
Net interest income				$	126,542						$	128,413
Interest rate spread						3.30	%						3.74	%
Net interest margin⁽³⁾						4.07	%						4.32	%

^{(1)  Average loans receivable balances include loans held for sale and nonaccruing loans.}
^{(2)  Average other interest-earning assets consist of FRB stock, FHLB stock, SBIC investments and deposits in other banks.}
^{(3)  Net interest income divided by average interest-earning assets.}
^{(4)  Tax-equivalent results include adjustments to interest income of $1,072 and $903 for the nine months ended September 30, 2024 and September 30, 2023, respectively, calculated based on a combined federal and state tax rate of 24%.}

Total interest and dividend income for the nine months ended September 30, 2024 increased $23.8 million, or 13.8%, compared to the nine months ended September 30, 2023, which was driven by a $22.9 million, or 14.1%, increase in interest income on loans. Accretion income on acquired loans of $2.0 million and $1.7 million was recognized during the same periods, respectively, and was included in interest income on loans. The overall increase in average yield on interest-earning assets was the result of both higher average balances and rising interest rates.

Total interest expense for the nine months ended September 30, 2024 increased $25.8 million, or 58.4%, compared to the nine months ended September 30, 2023. The change was primarily the result of increases in the cost of funds across all funding sources driven by higher market interest rates and increases in the average balances of money market and certificate accounts, partially offset by a decline in average borrowings outstanding.

The following table shows the effects that changes in average balances (volume), including the difference in the number of days in the periods compared, and average interest rates (rate) had on the interest earned on interest-earning assets and interest paid on interest-bearing liabilities:

	Increase / (Decrease) Due to					Total Increase / (Decrease)
(Dollars in thousands)	Volume			Rate		Total Increase / (Decrease)
Interest-earning assets
Loans receivable	$	8,927		$	13,965	$	22,892
Debt securities available for sale		(532	)		1,176		644
Other interest-earning assets		79			141		220
Total interest-earning assets		8,474			15,282		23,756
Interest-bearing liabilities
Interest-bearing checking accounts		(266	)		1,174		908
Money market accounts		1,557			10,481		12,038
Savings accounts		(20	)		1		(19	)
Certificate accounts		6,592			9,219		15,811
Junior subordinated debt		109			33		142
Borrowings		(3,425	)		341		(3,084	)
Total interest-bearing liabilities		4,547			21,249		25,796
Decrease in net interest income						$	(2,040	)

Provision for Credit Losses. The following table presents a breakdown of the components of the provision for credit losses:

	Nine Months Ended
(Dollars in thousands)	September 30, 2024			September 30, 2023			$ Change			% Change
Provision for credit losses
Loans	$	8,435		$	12,120		$	(3,685	)	(30	)%
Off-balance-sheet credit exposure		(35	)		(385	)		350		91
Total provision for credit losses	$	8,400		$	11,735		$	(3,335	)	(28	)%

For the nine months ended September 30, 2024, the “loans” portion of the provision for credit losses was the result of net charge-offs of $8.9 million during the period, partially offset by a $0.4 million benefit due to changes in the loan mix.

For the nine months ended September 30, 2023, the “loans” portion of the provision for credit losses was the result of the following, in addition to net charge-offs of $3.9 million during the period:

$4.9 million provision to establish an allowance on Quantum’s loan portfolio.
$3.0 million provision due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments.
$0.3 million increase in specific reserves on individually evaluated credits.

For the nine months ended September 30, 2024 and September 30, 2023, the amounts recorded for off-balance-sheet credit exposure were the result of changes in the balance of loan commitments, loan mix and projected economic forecast as outlined above.

Noninterest Income. Noninterest income for the nine months ended September 30, 2024 increased $1.4 million, or 5.8%, when compared to the same period last year. Changes in the components of noninterest income are discussed below:

	Nine Months Ended
(Dollars in thousands)	September 30, 2024			September 30, 2023		$ Change			% Change
Noninterest income
Service charges and fees on deposit accounts	$	6,839		$	6,967	$	(128	)	(2	)%
Loan income and fees		2,009			1,913		96		5
Gain on sale of loans held for sale		5,185			4,213		972		23
BOLI income		3,470			2,844		626		22
Operating lease income		5,087			4,515		572		13
Gain (loss) on sale of premises and equipment		(9	)		982		(991	)	(101	)
Other		2,625			2,391		234		10
Total noninterest income	$	25,206		$	23,825	$	1,381		6	%

Gain on sale of loans held for sale: The increase in the gain on sale of loans held for sale was primarily driven by residential mortgage and SBA loans sold during the period. During the nine months ended September 30, 2024, there were $58.3 million of residential mortgage loans originated for sale which were sold with gains of $1.1 million compared to $48.7 million sold with gains of $633,000 for the corresponding period in the prior year, with the improvement in profitability due to movement in interest rates. There were $38.5 million of sales of the guaranteed portion of SBA commercial loans with gains of $3.1 million compared to $41.1 million sold and gains of $2.6 million for the corresponding period in the prior year. There were $95.4 million of HELOCs sold during the current period for a gain of $887,000 compared to $66.4 million sold and gains of $552,000 for the corresponding period in the prior year. Our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in a gain of $15,000 for the nine months ended September 30, 2024 versus a gain of $426,000 for the nine months ended September 30, 2023.
BOLI income: The increase was due to higher yielding policies as a result of restructuring the portfolio at the end of the prior calendar year.
Operating lease income: The increase in operating lease income was the result of $1.7 million in additional contractual earnings on a higher average outstanding balance of the associated contracts, partially offset by losses incurred on previously leased equipment, where we recognized a net loss of $1.3 million for the nine months ended September 30, 2024 versus a net loss of $210,000 in the same period last year.
Gain (loss) on sale of premises and equipment: During the nine months ended September 30, 2023, two properties were sold for a combined gain of $982,000. No material disposal activity occurred during the nine months ended September 30, 2024.

Noninterest Expense. Noninterest expense for the nine months ended September 30, 2024 decreased $2.6 million, or 2.8%, when compared to the same period last year. Changes in the components of noninterest expense are discussed below:

	Nine Months Ended
(Dollars in thousands)	September 30, 2024		September 30, 2023		$ Change			% Change
Noninterest expense
Salaries and employee benefits	$	50,666	$	49,436	$	1,230		2	%
Occupancy expense, net		7,292		7,556		(264	)	(3	)
Computer services		9,396		9,386		10		—
Telephone, postage and supplies		1,712		1,942		(230	)	(12	)
Marketing and advertising		1,659		1,555		104		7
Deposit insurance premiums		1,674		1,878		(204	)	(11	)
Core deposit intangible amortization		1,896		2,324		(428	)	(18	)
Merger-related expenses		—		4,741		(4,741	)	(100	)
Other		16,364		14,490		1,874		13
Total noninterest expense	$	90,659	$	93,308	$	(2,649	)	(3	)%

Salaries and employee benefits: The increase was primarily the result of pay increases, partially offset by reductions in incentive pay.
Core deposit intangible amortization: The intangible recorded associated with the Quantum merger is being amortized on an accelerated basis, so the rate of amortization slowed year-over-year.
Merger-related expenses: The prior period included expenses associated with the Company’s merger with Quantum. No such expenses were incurred in the nine months ended September 30, 2024.
Other: The increase period-over-period was primarily driven by $1.7 million of additional depreciation expense on equipment subject to operating leases.

Income Taxes. The amount of income tax expense is influenced by the amount of pre-tax income, tax-exempt income, changes in the statutory rate and the effect of changes in valuation allowances maintained against deferred tax benefits. The effective tax rates for the nine months ended September 30, 2024 and September 30, 2023 were 21.3% and 21.0%, respectively.

Balance Sheet Review
Total assets decreased by $35.3 million to $4.6 billion and total liabilities decreased by $75.5 million to $4.1 billion, respectively, at September 30, 2024 as compared to December 31, 2023. The majority of these changes were the result of an increase in deposits, which, combined with the collection of BOLI redemption proceeds and cash and cash equivalents, were used to fund growth in loans and pay down borrowings.

Stockholders’ equity increased $40.1 million to $540.0 million at September 30, 2024 as compared to December 31, 2023. Activity within stockholders’ equity included $40.6 million in net income and $4.5 million in stock-based compensation and stock option exercises, partially offset by $5.6 million in cash dividends declared. In addition, the improvement in the accumulated other comprehensive income was driven by a $1.6 million reduction of the unrealized loss on available for sale securities as a result of a decrease in market interest rates.

As of September 30, 2024, the Bank was considered “well capitalized” in accordance with its regulatory capital guidelines and exceeded all regulatory capital requirements.

Asset Quality
The ACL on loans was $48.1 million, or 1.30% of total loans, at September 30, 2024 compared to $48.6 million, or 1.34% of total loans, at December 31, 2023. The drivers of this change are discussed in the “Comparison of Results of Operations for the Nine Months Ended September 30, 2024 and September 30, 2023 – Provision for Credit Losses” section above.

Net loan charge-offs totaled $8.9 million for the nine months ended September 30, 2024 compared to $3.9 million for the same period last year. As discussed in previous quarters, the increase in net charge-offs has been concentrated in our equipment finance portfolio, primarily smaller over-the-road truck loans, with net charge-offs of $5.1 million during the nine months ended September 30, 2024. In response, during the first quarter of calendar year 2024 the Company elected to cease further originations within the transportation sector of equipment finance loans. In spite of the increase, annualized net charge-offs as a percentage of average assets for the loan portfolio as a whole were 0.31% for the nine months ended September 30, 2024, in line with the Company’s historical experience, as compared to 0.14% for the nine months ended September 30, 2023.

Nonperforming assets, made up of nonaccrual loans and repossessed assets, increased by $10.4 million, or 54.0%, to $29.8 million, or 0.64% of total assets, at September 30, 2024 compared to $19.3 million, or 0.41% of total assets, at December 31, 2023. Consistent with the change in net charge-offs, equipment finance loans made up the largest portion of nonperforming assets at $8.5 million and $6.5 million, respectively, at these same dates. In addition, owner occupied commercial real estate totaled $7.2 million and $912,000, respectively, at these same dates. These increases were mainly the result of a $3.1 million medical equipment relationship and $5.1 million owner occupied commercial real estate (OO CRE) relationship; however, in both cases losses are not currently anticipated. The ratio of nonperforming loans to total loans was 0.78% at September 30, 2024 compared to 0.53% at December 31, 2023.

The ratio of classified assets to total assets increased to 0.99% at September 30, 2024 from 0.90% at December 31, 2023 as classified assets increased $4.1 million, or 9.8%, to $46.1 million at September 30, 2024 compared to $42.0 million at December 31, 2023. The largest portfolios of classified assets at September 30, 2024 included $11.7 million of non-owner occupied commercial real estate loans, $8.4 million of equipment finance loans, $7.1 million of SBA loans, $6.0 million of 1-4 family residential real estate loans, and $6.0 million of OO CRE loans.

About HomeTrust Bancshares, Inc.
HomeTrust Bancshares, Inc. is the holding company for the Bank. As of September 30, 2024, the Company had assets of $4.6 billion. The Bank, founded in 1926, is a North Carolina state chartered, community-focused financial institution committed to providing value added relationship banking with over 30 locations as well as online/mobile channels. Locations include: North Carolina (the Asheville metropolitan area, the “Piedmont” region, Charlotte and Raleigh/Cary), South Carolina (Greenville and Charleston), East Tennessee (Kingsport/Johnson City, Knoxville and Morristown), Southwest Virginia (the Roanoke Valley) and Georgia (Greater Atlanta).

Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but instead are based on certain assumptions including statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, assumptions and statements about future economic performance and projections of financial items. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated or implied by forward-looking statements. The factors that could result in material differentiation include, but are not limited to, the impact of bank failures or adverse developments involving other banks and related negative press about the banking industry in general on investor and depositor sentiment; the remaining effects of the COVID-19 pandemic on general economic and financial market conditions and on public health, both nationally and in the Company’s market areas; natural disasters, including the effects of Hurricane Helene; expected revenues, cost savings, synergies and other benefits from merger and acquisition activities might not be realized to the extent anticipated, within the anticipated time frames, or at all, costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected, and goodwill impairment charges might be incurred; increased competitive pressures among financial services companies; changes in the interest rate environment; changes in general economic conditions, both nationally and in our market areas; legislative and regulatory changes; and the effects of inflation, a potential recession, and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other documents filed with or furnished to the Securities and Exchange Commission – which are available on the Company’s website at www.htb.com and on the SEC’s website at www.sec.gov. Any of the forward-looking statements that the Company makes in this press release or in the documents the Company files with or furnishes to the SEC are based upon management’s beliefs and assumptions at the time they are made and may turn out to be wrong because of inaccurate assumptions, the factors described above or other factors that management cannot foresee. The Company does not undertake, and specifically disclaims 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.

Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023⁽¹⁾			September 30, 2023
Assets
Cash	$	18,980		$	18,382		$	16,134		$	18,307		$	18,090
Interest-bearing deposits		274,497			275,808			364,359			328,833			306,924
Cash and cash equivalents		293,477			294,190			380,493			347,140			325,014
Certificates of deposit in other banks		29,290			32,131			33,625			34,722			35,380
Debt securities available for sale, at fair value		140,552			134,135			120,807			126,950			134,348
FHLB and FRB stock		18,384			19,637			13,691			18,393			19,612
SBIC investments, at cost		15,489			15,462			14,568			13,789			14,586
Loans held for sale, at fair value		2,968			1,614			2,764			3,359			4,616
Loans held for sale, at the lower of cost or fair value		189,722			224,976			220,699			198,433			200,834
Total loans, net of deferred loan fees and costs		3,698,892			3,701,454			3,648,152			3,640,022			3,659,914
Allowance for credit losses – loans		(48,131	)		(49,223	)		(47,502	)		(48,641	)		(47,417	)
Loans, net		3,650,761			3,652,231			3,600,650			3,591,381			3,612,497
Premises and equipment, net		69,603			69,880			70,588			70,937			72,463
Accrued interest receivable		17,523			18,412			16,944			16,902			16,513
Deferred income taxes, net		10,100			10,512			11,222			11,796			9,569
BOLI		90,021			89,176			88,369			88,257			106,059
Goodwill		34,111			34,111			34,111			34,111			34,111
Core deposit intangibles, net		7,162			7,730			8,297			9,059			9,918
Other assets		68,130			66,667			67,183			107,404			56,477
Total assets	$	4,637,293		$	4,670,864		$	4,684,011		$	4,672,633		$	4,651,997
Liabilities and stockholders’ equity
Liabilities
Deposits	$	3,761,588		$	3,707,779		$	3,799,807		$	3,661,373		$	3,640,961
Junior subordinated debt		10,096			10,070			10,045			10,021			9,995
Borrowings		260,013			364,513			291,513			433,763			452,263
Other liabilities		65,592			64,874			69,473			67,583			64,367
Total liabilities		4,097,289			4,147,236			4,170,838			4,172,740			4,167,586
Stockholders’ equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued or outstanding		—			—			—			—			—
Common stock, $0.01 par value, 60,000,000 shares authorized⁽²⁾		175			175			175			174			174
Additional paid in capital		175,495			172,907			172,919			172,366			171,663
Retained earnings		368,383			357,147			346,598			333,401			321,799
Unearned Employee Stock Ownership Plan (“ESOP”) shares		(4,099	)		(4,232	)		(4,364	)		(4,497	)		(4,629	)
Accumulated other comprehensive income (loss)		50			(2,369	)		(2,155	)		(1,551	)		(4,596	)
Total stockholders’ equity		540,004			523,628			513,173			499,893			484,411
Total liabilities and stockholders’ equity	$	4,637,293		$	4,670,864		$	4,684,011		$	4,672,633		$	4,651,997

^{(1) Derived from audited financial statements.}
^{(2) Shares of common stock issued and outstanding were 17,514,922 at September 30, 2024; 17,437,326 at June 30, 2024; 17,444,787 at March 31, 2024; 17,387,069 at December 31, 2023; and 17,380,307 at September 30, 2023.}

Consolidated Statements of Income (Unaudited)

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2024		June 30, 2024		September 30, 2024			September 30, 2023
Interest and dividend income
Loans	$	63,305	$	62,161	$	185,418		$	162,526
Debt securities available for sale		1,616		1,495		4,424			3,780
Other investments and interest-bearing deposits		1,728		1,758		5,576			5,356
Total interest and dividend income		66,649		65,414		195,418			171,662
Interest expense
Deposits		23,692		21,683		65,693			36,955
Junior subordinated debt		235		234		705			563
Borrowings		648		1,331		3,550			6,634
Total interest expense		24,575		23,248		69,948			44,152
Net interest income		42,074		42,166		125,470			127,510
Provision for credit losses		2,975		4,260		8,400			11,735
Net interest income after provision for credit losses		39,099		37,906		117,070			115,775
Noninterest income
Service charges and fees on deposit accounts		2,336		2,354		6,839			6,967
Loan income and fees		684		647		2,009			1,913
Gain on sale of loans held for sale		1,900		1,828		5,185			4,213
BOLI income		828		807		3,470			2,844
Operating lease income		1,637		1,591		5,087			4,515
Gain (loss) on sale of premises and equipment		—		—		(9	)		982
Other		897		886		2,625			2,391
Total noninterest income		8,282		8,113		25,206			23,825
Noninterest expense
Salaries and employee benefits		17,082		16,608		50,666			49,436
Occupancy expense, net		2,436		2,419		7,292			7,556
Computer services		3,192		3,116		9,396			9,386
Telephone, postage and supplies		547		580		1,712			1,942
Marketing and advertising		408		606		1,659			1,555
Deposit insurance premiums		589		531		1,674			1,878
Core deposit intangible amortization		567		567		1,896			2,324
Merger-related expenses		—		—		—			4,741
Other		5,764		5,783		16,364			14,490
Total noninterest expense		30,585		30,210		90,659			93,308
Income before income taxes		16,796		15,809		51,617			46,292
Income tax expense		3,684		3,391		11,020			9,712
Net income	$	13,112	$	12,418	$	40,597		$	36,580

Per Share Data

	Three Months Ended				Nine Months Ended
	September 30, 2024		June 30, 2024		September 30, 2024		September 30, 2023
Net income per common share⁽¹⁾
Basic	$	0.77	$	0.73	$	2.38	$	2.19
Diluted	$	0.76	$	0.73	$	2.37	$	2.18
Average shares outstanding
Basic		16,931,793		16,883,028		16,891,619		16,532,335
Diluted		17,027,824		16,904,098		16,938,328		16,553,319
Book value per share at end of period	$	30.83	$	30.03	$	30.83	$	27.87
Tangible book value per share at end of period⁽²⁾	$	28.57	$	27.73	$	28.57	$	25.47
Cash dividends declared per common share	$	0.11	$	0.11	$	0.33	$	0.30
Total shares outstanding at end of period		17,514,922		17,437,326		17,514,922		17,380,307

^{(1) Basic and diluted net income per common share have been prepared in accordance with the two-class method.}
^{(2) See Non-GAAP reconciliations below for adjustments.}

Selected Financial Ratios and Other Data

	Three Months Ended				Nine Months Ended
	September 30, 2024		June 30, 2024		September 30, 2024		September 30, 2023
Performance ratios⁽¹⁾
Return on assets (ratio of net income to average total assets)	1.17	%	1.13	%	1.22	%	1.15	%
Return on equity (ratio of net income to average equity)	9.76		9.58		10.39		10.56
Yield on earning assets	6.34		6.32		6.28		5.77
Rate paid on interest-bearing liabilities	3.12		3.04		3.02		2.06
Average interest rate spread	3.22		3.28		3.26		3.71
Net interest margin⁽²⁾	4.00		4.08		4.03		4.29
Average interest-earning assets to average interest-bearing liabilities	133.71		135.38		134.53		138.63
Noninterest expense to average total assets	2.73		2.74		2.73		2.94
Efficiency ratio	60.74		60.08		60.17		61.66
Efficiency ratio – adjusted⁽³⁾	60.30		59.66		60.19		58.98

^{(1)  Ratios are annualized where appropriate.}
^{(2)  Net interest income divided by average interest-earning assets.}
^{(3)  See Non-GAAP reconciliations below for adjustments.}

	At or For the Three Months Ended
	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Asset quality ratios
Nonperforming assets to total assets⁽¹⁾	0.64	%	0.54	%	0.43	%	0.41	%	0.25	%
Nonperforming loans to total loans⁽¹⁾	0.78		0.68		0.55		0.53		0.32
Total classified assets to total assets	0.99		0.91		0.80		0.90		0.76
Allowance for credit losses to nonperforming loans⁽¹⁾	166.51		194.80		235.18		251.60		400.41
Allowance for credit losses to total loans	1.30		1.33		1.30		1.34		1.30
Net charge-offs to average loans (annualized)	0.42		0.27		0.24		0.29		0.27
Capital ratios
Equity to total assets at end of period	11.64	%	11.21	%	10.96	%	10.70	%	10.41	%
Tangible equity to total tangible assets⁽²⁾	10.88		10.44		10.18		9.91		9.60
Average equity to average assets	12.02		11.78		11.51		11.03		10.84

^{(1) Nonperforming assets include nonaccruing loans and repossessed assets. There were no accruing loans more than 90 days past due at the dates indicated. At September 30, 2024, $8.7 million, or 30.4%, of nonaccruing loans were current on their loan payments as of that date.}
^{(2) See Non-GAAP reconciliations below for adjustments.}

Loans

(Dollars in thousands)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Commercial real estate loans
Construction and land development	$	300,905		$	316,050		$	304,727		$	305,269		$	352,143
Commercial real estate – owner occupied		544,689			545,631			532,547			536,545			526,534
Commercial real estate – non-owner occupied		881,340			892,653			881,143			875,694			880,348
Multifamily		114,155			92,292			89,692			88,623			83,430
Total commercial real estate loans		1,841,089			1,846,626			1,808,109			1,806,131			1,842,455
Commercial loans
Commercial and industrial		286,809			266,136			243,732			237,255			237,366
Equipment finance		443,033			461,010			462,649			465,573			470,387
Municipal leases		158,560			152,509			151,894			150,292			147,821
Total commercial loans		888,402			879,655			858,275			853,120			855,574
Residential real estate loans
Construction and land development		63,016			70,679			85,840			96,646			103,381
One-to-four family		627,845			621,196			605,570			584,405			560,399
HELOCs		194,909			188,465			184,274			185,878			185,289
Total residential real estate loans		885,770			880,340			875,684			866,929			849,069
Consumer loans		83,631			94,833			106,084			113,842			112,816
Total loans, net of deferred loan fees and costs		3,698,892			3,701,454			3,648,152			3,640,022			3,659,914
Allowance for credit losses – loans		(48,131	)		(49,223	)		(47,502	)		(48,641	)		(47,417	)
Loans, net	$	3,650,761		$	3,652,231		$	3,600,650		$	3,591,381		$	3,612,497

Deposits

(Dollars in thousands)	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Core deposits
Noninterest-bearing accounts	$	684,501	$	683,346	$	773,901	$	784,950	$	827,362
NOW accounts		534,517		561,789		600,561		591,270		602,804
Money market accounts		1,345,289		1,311,940		1,308,467		1,246,807		1,195,482
Savings accounts		179,762		185,499		191,302		194,486		202,971
Total core deposits		2,744,069		2,742,574		2,874,231		2,817,513		2,828,619
Certificates of deposit		1,017,519		965,205		925,576		843,860		812,342
Total	$	3,761,588	$	3,707,779	$	3,799,807	$	3,661,373	$	3,640,961

Non-GAAP Reconciliations
In addition to results presented in accordance with generally accepted accounting principles utilized in the United States (“GAAP”), this earnings release contains certain non-GAAP financial measures, which include: the efficiency ratio, tangible book value, tangible book value per share and the tangible equity to tangible assets ratio. The Company believes these non-GAAP financial measures and ratios as presented are useful for both investors and management to understand the effects of certain items and provide an alternative view of its performance over time and in comparison to its competitors. These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for total stockholders’ equity or operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

Set forth below is a reconciliation to GAAP of the Company’s efficiency ratio:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2024		June 30, 2024		September 30, 2024			September 30, 2023
Noninterest expense	$	30,585	$	30,210	$	90,659		$	93,308
Less: merger expense		—		—		—			4,741
Noninterest expense – adjusted	$	30,585	$	30,210	$	90,659		$	88,567

Net interest income	$	42,074	$	42,166	$	125,470		$	127,510
Plus: tax-equivalent adjustment		368		354		1,072			903
Plus: noninterest income		8,282		8,113		25,206			23,825
Less: BOLI death benefit proceeds in excess of cash surrender value		—		—		1,143			1,092
Less: loss (gain) on sale of premises and equipment		—		—		(9	)		982
Net interest income plus noninterest income – adjusted	$	50,724	$	50,633	$	150,614		$	150,164

Efficiency ratio	60.74	%	60.08	%	60.17	%	61.66	%
Efficiency ratio – adjusted	60.30	%	59.66	%	60.19	%	58.98	%

Set forth below is a reconciliation to GAAP of tangible book value and tangible book value per share:

	As of
(Dollars in thousands, except per share data)	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Total stockholders’ equity	$	540,004	$	523,628	$	513,173	$	499,893	$	484,411
Less: goodwill, core deposit intangibles, net of taxes		39,626		40,063		40,500		41,086		41,748
Tangible book value	$	500,378	$	483,565	$	472,673	$	458,807	$	442,663
Common shares outstanding		17,514,922		17,437,326		17,444,787		17,387,069		17,380,307
Book value per share	$	30.83	$	30.03	$	29.42	$	28.75	$	27.87
Tangible book value per share	$	28.57	$	27.73	$	27.10	$	26.39	$	25.47

Set forth below is a reconciliation to GAAP of tangible equity to tangible assets:

	As of
(Dollars in thousands)	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Tangible equity⁽¹⁾	$	500,378	$	483,565	$	472,673	$	458,807	$	442,663
Total assets		4,637,293		4,670,864		4,684,011		4,672,633		4,651,997
Less: goodwill, core deposit intangibles, net of taxes		39,626		40,063		40,500		41,086		41,748
Total tangible assets	$	4,597,667	$	4,630,801	$	4,643,511	$	4,631,547	$	4,610,249

Tangible equity to tangible assets

10.88

%

10.44

%

10.18

%

9.91

%

9.60

%

^{(1) Tangible equity (or tangible book value) is equal to total stockholders’ equity less goodwill and core deposit intangibles, net of related deferred tax liabilities.}

The MIL Network –

January 25, 2025

MIL-OSI: West Bancorporation, Inc. Announces Third Quarter 2024 Financial Results and Declares Quarterly Dividend

Source: GlobeNewswire (MIL-OSI)

WEST DES MOINES, Iowa, Oct. 24, 2024 (GLOBE NEWSWIRE) — West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent company of West Bank, today reported third quarter 2024 net income of $6.0 million, or $0.35 per diluted common share, compared to second quarter 2024 net income of $5.2 million, or $0.31 per diluted common share, and third quarter 2023 net income of $5.9 million, or $0.35 per diluted common share. On October 23, 2024, the Company’s Board of Directors declared a regular quarterly dividend of $0.25 per common share. The dividend is payable on November 20, 2024, to stockholders of record on November 6, 2024.

David Nelson, President and Chief Executive Officer of the Company, commented, “Our third quarter results include moderate growth in loans and core deposits along with an increase in quarterly net interest income and net interest margin. Our credit quality remains pristine as a result of our disciplined loan growth and credit risk management practices. The ratio of nonperforming assets to total assets remains negligible at 0.01%.”

David Nelson added, “West Bank is focused on initiatives that will drive sustained core profitability. Those initiatives are centered around our culture of building strong relationships and providing exceptional personal service to drive growth in both commercial and consumer banking services.”

Third Quarter 2024 Financial Highlights

	Quarter Ended September 30, 2024		Nine Months Ended September 30, 2024
Net income (in thousands)	$5,952		$16,953
Return on average equity		10.41%		10.18%
Return on average assets		0.60%		0.59%
Efficiency ratio (a non-GAAP measure)		63.28%		64.16%
Nonperforming assets to total assets		0.01%		0.01%

Third Quarter 2024 Compared to Second Quarter 2024 Overview

Loans increased $22.4 million in the third quarter of 2024, or 3.0 percent annualized. The increase is primarily due to the funding of previously committed construction loans.
A provision for credit losses on loans of $1.0 million was recorded in the third quarter of 2024, compared to no provision in the second quarter of 2024. A negative provision for credit losses on unfunded commitments of $1.0 million was recorded in the third quarter of 2024, compared to no provision in the second quarter of 2024. The provision for loans in the third quarter of 2024 was primarily due to changes in the forecasted loss rates due to increases in forecasted unemployment rates. The negative provision for unfunded commitments was primarily due to the decline in unfunded commitments resulting primarily from the funding of construction loans.
The allowance for credit losses to total loans was 0.97 percent and 0.95 percent at September 30, 2024 and June 30, 2024, respectively. Nonaccrual loans at September 30, 2024 consisted of two loans with a total balance of $233 thousand, compared to three loans with a balance of $521 thousand at June 30, 2024.
Deposits increased $97.6 million, or 3.1 percent, in the third quarter of 2024. Brokered deposits totaled $425.9 million at September 30, 2024, compared to $370.3 million at June 30, 2024, an increase of $55.6 million. Excluding brokered deposits, deposits increased $42.0 million during the third quarter of 2024. As of September 30, 2024, estimated uninsured deposits, which exclude deposits in the IntraFi^® reciprocal network, brokered deposits and public funds protected by state programs, accounted for approximately 27.8 percent of total deposits.
Borrowed funds decreased to $438.8 million at September 30, 2024, compared to $525.5 million at June 30, 2024. The decrease was primarily due to the balance of federal funds purchased and other short-term borrowings decreasing to $0 as of September 30, 2024, from $85.5 million as of June 30, 2024 as a result of growth in deposits.
The efficiency ratio (a non-GAAP measure) was 63.28 percent for the third quarter of 2024, compared to 67.14 percent for the second quarter of 2024. The improvement in the efficiency ratio was primarily due to the increase in net interest income. In the third quarter of 2024, the increase in interest income on loans outpaced the increase in interest expense on deposits and borrowed funds.
Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 1.91 percent for the third quarter of 2024, compared to 1.86 percent for the second quarter of 2024. Net interest income for the third quarter of 2024 was $18.0 million, compared to $17.2 million for the second quarter of 2024.
The tangible common equity ratio was 5.90 percent as of September 30, 2024, compared to 5.65 percent as of June 30, 2024. The increase in the tangible common equity ratio was driven by retained net income and the decrease in accumulated other comprehensive loss, which was primarily the result of the increase in the market value of our available for sale investment portfolio.

Third Quarter 2024 Compared to Third Quarter 2023 Overview

Loans increased $171.4 million at September 30, 2024, or 6.0 percent, compared to September 30, 2023. The increase is primarily due to increases in commercial real estate loans and the funding of previously committed construction loans.
Deposits increased to $3.3 billion at September 30, 2024, compared to $2.8 billion at September 30, 2023. Included in deposits were brokered deposits totaling $425.9 million at September 30, 2024, compared to $237.0 million at September 30, 2023. Brokered deposits were used to reduce short-term borrowed funds and to fund loan growth. Excluding brokered deposits, deposits increased $334.2 million, or 13.3 percent, as of September 30, 2024, compared to September 30, 2023. Deposit growth included a mix of public funds and commercial and consumer deposits.
Borrowed funds decreased to $438.8 million at September 30, 2024, compared to $705.1 million at September 30, 2023. The decrease was primarily attributable to a decrease of $261.5 million in federal funds purchased and other short-term borrowings as a result of growth in deposits.
The efficiency ratio (a non-GAAP measure) was 63.28 percent for the third quarter of 2024, compared to 60.83 percent for the third quarter of 2023. The increase in the efficiency ratio in the third quarter of 2024 compared to the third quarter of 2023 was primarily due to the increase in noninterest expense, partially offset by an increase in net interest income. Occupancy and equipment expense increased primarily due to the occupancy costs associated with the Company’s newly constructed headquarters.
Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 1.91 percent for both the third quarter of 2024 and the third quarter of 2023. Net interest income for the third quarter of 2024 was $18.0 million, compared to $16.6 million for the third quarter of 2023.

The Company filed its report on Form 10-Q with the Securities and Exchange Commission today. Please refer to that document for a more in-depth discussion of the Company’s financial results. The Form 10-Q is available on the Investor Relations section of West Bank’s website at www.westbankstrong.com.

The Company will discuss its results in a conference call scheduled for 2:00 p.m. Central Time on Thursday, October 24, 2024. The telephone number for the conference call is 800-715-9871. The conference ID for the conference call is 7846129. A recording of the call will be available until November 7, 2024, by dialing 800-770-2030. The conference ID for the replay call is 7846129, followed by the # key.

About West Bancorporation, Inc. (Nasdaq: WTBA)

West Bancorporation, Inc. is headquartered in West Des Moines, Iowa. Serving customers since 1893, West Bank, a wholly-owned subsidiary of West Bancorporation, Inc., is a community bank that focuses on lending, deposit services, and trust services for small- to medium-sized businesses and consumers. West Bank has six offices in the Des Moines, Iowa metropolitan area, one office in Coralville, Iowa, and four offices in Minnesota in the cities of Rochester, Owatonna, Mankato and St. Cloud.

Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may appear throughout this report. These forward-looking statements are generally identified by the words “believes,” “expects,” “intends,” “anticipates,” “projects,” “future,” “confident,” “may,” “should,” “will,” “strategy,” “plan,” “opportunity,” “will be,” “will likely result,” “will continue” or similar references, or references to estimates, predictions or future events. Such forward-looking statements are based upon certain underlying assumptions, risks and uncertainties. Because of the possibility that the underlying assumptions are incorrect or do not materialize as expected in the future, actual results could differ materially from these forward-looking statements. Risks and uncertainties that may affect future results include: interest rate risk, including the effects of changes in interest rates; fluctuations in the values of the securities held in our investment portfolio, including as a result of changes in interest rates; competitive pressures, including from non-bank competitors such as credit unions, “fintech” companies and digital asset service providers; pricing pressures on loans and deposits; our ability to successfully manage liquidity risk; changes in credit and other risks posed by the Company’s loan portfolio, including declines in commercial or residential real estate values or changes in the allowance for credit losses dictated by new market conditions, accounting standards or regulatory requirements; the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; changes in local, national and international economic conditions, including the level and impact of inflation and possible recession; the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in recent bank failures; changes in legal and regulatory requirements, limitations and costs including in response to the recent bank failures; changes in customers’ acceptance of the Company’s products and services; the occurrence of fraudulent activity, breaches or failures of our or our third-party partners’ information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; unexpected outcomes of existing or new litigation involving the Company; the monetary, trade and other regulatory policies of the U.S. government; acts of war or terrorism, including the ongoing Israeli-Palestinian conflict and the Russian invasion of Ukraine, widespread disease or pandemics, or other adverse external events; risks related to climate change and the negative impact it may have on our customers and their businesses; changes to U.S. tax laws, regulations and guidance; potential changes in federal policy and at regulatory agencies as a result of the upcoming 2024 presidential election; talent and labor shortages; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update such forward-looking statements to reflect current or future events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

For more information contact:
Jane Funk, Executive Vice President, Treasurer and Chief Financial Officer (515) 222-5766


WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	As of
CONDENSED BALANCE SHEETS	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Assets
Cash and due from banks	$	34,157		$	27,994		$	27,071		$	33,245		$	18,819
Interest-bearing deposits		123,646			121,825			120,946			32,112			1,802
Securities available for sale, at fair value		597,745			588,452			605,735			623,919			609,365
Federal Home Loan Bank stock, at cost		17,195			21,065			26,181			22,957			26,691
Loans		3,021,221			2,998,774			2,980,133			2,927,535			2,849,777
Allowance for credit losses		(29,419	)		(28,422	)		(28,373	)		(28,342	)		(28,147	)
Loans, net		2,991,802			2,970,352			2,951,760			2,899,193			2,821,630
Premises and equipment, net		106,771			101,965			95,880			86,399			75,675
Bank-owned life insurance		44,703			44,416			44,138			43,864			43,589
Other assets		72,547			89,046			90,981			84,069			104,329
Total assets	$	3,988,566		$	3,965,115		$	3,962,692		$	3,825,758		$	3,701,900

Liabilities and Stockholders’ Equity
Deposits	$	3,278,553		$	3,180,922		$	3,065,030		$	2,973,779		$	2,755,529
Federal funds purchased and other short-term borrowings		—			85,500			198,500			150,270			261,510
Other borrowings		438,814			439,998			441,183			442,367			443,552
Other liabilities		35,846			34,812			34,223			34,299			37,376
Stockholders’ equity		235,353			223,883			223,756			225,043			203,933
Total liabilities and stockholders’ equity	$	3,988,566		$	3,965,115		$	3,962,692		$	3,825,758		$	3,701,900

	For the Quarter Ended
AVERAGE BALANCES	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Assets	$	3,973,824		$	3,964,109		$	3,812,199		$	3,706,497		$	3,679,541
Loans		2,991,272			2,994,492			2,949,672			2,857,594			2,813,213
Deposits		3,258,669			3,123,282			2,956,635			2,878,676			2,764,184
Stockholders’ equity		227,513			219,771			219,835			201,920			215,230


WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	As of
LOANS	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Commercial	$	512,884		$	526,589		$	544,293		$	531,594		$	529,293
Real estate:
Construction, land and land development		520,516			496,864			465,247			413,477			399,253
1-4 family residential first mortgages		89,749			92,230			108,065			106,688			89,713
Home equity		17,140			15,264			14,020			14,618			12,429
Commercial		1,870,132			1,856,301			1,839,580			1,854,510			1,812,816
Consumer and other		14,261			15,234			12,844			10,930			10,123
		3,024,682			3,002,482			2,984,049			2,931,817			2,853,627
Net unamortized fees and costs		(3,461	)		(3,708	)		(3,916	)		(4,282	)		(3,850	)
Total loans	$	3,021,221		$	2,998,774		$	2,980,133		$	2,927,535		$	2,849,777
Less: allowance for credit losses		(29,419	)		(28,422	)		(28,373	)		(28,342	)		(28,147	)
Net loans	$	2,991,802		$	2,970,352		$	2,951,760		$	2,899,193		$	2,821,630

CREDIT QUALITY
Pass	$	3,016,493		$	2,994,310		$	2,983,618		$	2,931,377		$	2,853,100
Watch		7,956			7,651			142			144			184
Substandard		233			521			289			296			343
Doubtful		—			—			—			—			—
Total loans	$	3,024,682		$	3,002,482		$	2,984,049		$	2,931,817		$	2,853,627

DEPOSITS
Noninterest-bearing demand	$	525,332		$	530,441		$	521,377		$	548,726		$	551,688
Interest-bearing demand		438,402			443,658			449,946			481,207			417,802
Savings and money market – non-brokered		1,481,840			1,483,264			1,315,698			1,315,741			1,249,309
Money market – brokered		123,780			97,259			119,840			124,335			99,282
Total nonmaturity deposits		2,569,354			2,554,622			2,406,861			2,470,009			2,318,081
Time – non-brokered		407,109			353,269			381,646			322,694			299,683
Time – brokered		302,090			273,031			276,523			181,076			137,765
Total time deposits		709,199			626,300			658,169			503,770			437,448
Total deposits	$	3,278,553		$	3,180,922		$	3,065,030		$	2,973,779		$	2,755,529

BORROWINGS
Federal funds purchased and other short-term borrowings	$	—		$	85,500		$	198,500		$	150,270		$	261,510
Subordinated notes, net		79,828			79,762			79,697			79,631			79,566
Federal Home Loan Bank advances		315,000			315,000			315,000			315,000			315,000
Long-term debt		43,986			45,236			46,486			47,736			48,986
Total borrowings	$	438,814		$	525,498		$	639,683		$	592,637		$	705,062

STOCKHOLDERS’ EQUITY
Preferred stock	$	—		$	—		$	—		$	—		$	—
Common stock		3,000			3,000			3,000			3,000			3,000
Additional paid-in capital		34,960			34,322			33,685			34,197			33,487
Retained earnings		275,724			273,981			272,997			271,369			271,025
Accumulated other comprehensive loss		(78,331	)		(87,420	)		(85,926	)		(83,523	)		(103,579	)
Total stockholders’ equity	$	235,353		$	223,883		$	223,756		$	225,043		$	203,933


WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	For the Quarter Ended
CONSOLIDATED STATEMENTS OF INCOME	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023			September 30, 2023
Interest income:
Loans, including fees	$	42,504	$	41,700	$	40,196	$	38,208		$	36,756
Securities:
Taxable		3,261		3,394		3,416		3,521			3,427
Tax-exempt		806		808		810		869			880
Interest-bearing deposits		2,041		1,666		148		85			29
Total interest income		48,612		47,568		44,570		42,683			41,092
Interest expense:
Deposits		26,076		23,943		21,559		20,024			17,156
Federal funds purchased and other short-term borrowings		115		1,950		2,183		2,024			3,165
Subordinated notes		1,112		1,105		1,108		1,114			1,113
Federal Home Loan Bank advances		2,748		2,718		2,325		2,482			2,329
Long-term debt		601		622		645		678			695
Total interest expense		30,652		30,338		27,820		26,322			24,458
Net interest income		17,960		17,230		16,750		16,361			16,634
Credit loss expense		—		—		—		500			200
Net interest income after credit loss expense		17,960		17,230		16,750		15,861			16,434
Noninterest income:
Service charges on deposit accounts		459		462		460		476			463
Debit card usage fees		500		490		458		488			495
Trust services		828		794		776		782			831
Increase in cash value of bank-owned life insurance		287		278		274		275			262
Loan swap fees		—		—		—		—			431
Realized securities losses, net		—		—		—		(431	)		—
Other income		285		322		331		308			340
Total noninterest income		2,359		2,346		2,299		1,898			2,822
Noninterest expense:
Salaries and employee benefits		6,823		7,169		6,489		6,468			6,696
Occupancy and equipment		1,926		1,852		1,447		1,499			1,359
Data processing		771		754		714		723			703
Technology and software		722		731		700		676			573
FDIC insurance		711		631		519		475			439
Professional fees		239		244		257		235			254
Director fees		223		236		199		240			196
Other expenses		1,477		1,577		1,543		1,845			1,685
Total noninterest expense		12,892		13,194		11,868		12,161			11,905
Income before income taxes		7,427		6,382		7,181		5,598			7,351
Income taxes		1,475		1,190		1,372		1,073			1,445
Net income	$	5,952	$	5,192	$	5,809	$	4,525		$	5,906

Basic earnings per common share	$	0.35	$	0.31	$	0.35	$	0.27		$	0.35
Diluted earnings per common share	$	0.35	$	0.31	$	0.35	$	0.27		$	0.35


WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	For the Nine Months Ended
CONSOLIDATED STATEMENTS OF INCOME	September 30, 2024		September 30, 2023
Interest income:
Loans, including fees	$	124,400	$	104,715
Securities:
Taxable		10,071		10,175
Tax-exempt		2,424		2,648
Interest-bearing deposits		3,855		84
Total interest income		140,750		117,622
Interest expense:
Deposits		71,578		46,772
Federal funds purchased and other short-term borrowings		4,248		7,508
Subordinated notes		3,325		3,328
Federal Home Loan Bank advances		7,791		5,212
Long-term debt		1,868		2,132
Total interest expense		88,810		64,952
Net interest income		51,940		52,670
Credit loss expense		—		200
Net interest income after credit loss expense		51,940		52,470
Noninterest income:
Service charges on deposit accounts		1,381		1,383
Debit card usage fees		1,448		1,492
Trust services		2,398		2,286
Increase in cash value of bank-owned life insurance		839		769
Loan swap fees		—		431
Gain from bank-owned life insurance		—		691
Other income		938		1,116
Total noninterest income		7,004		8,168
Noninterest expense:
Salaries and employee benefits		20,481		20,592
Occupancy and equipment		5,225		4,008
Data processing		2,239		2,067
Technology and software		2,153		1,665
FDIC insurance		1,861		1,275
Professional fees		740		791
Director fees		658		652
Other expenses		4,597		5,400
Total noninterest expense		37,954		36,450
Income before income taxes		20,990		24,188
Income taxes		4,037		4,576
Net income	$	16,953	$	19,612

Basic earnings per common share	$	1.01	$	1.17
Diluted earnings per common share	$	1.00	$	1.17


WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)

	As of and for the Quarter Ended															For the Nine Months Ended
COMMON SHARE DATA	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			September 30, 2024			September 30, 2023
Earnings per common share (basic)	$	0.35		$	0.31		$	0.35		$	0.27		$	0.35		$	1.01		$	1.17
Earnings per common share (diluted)		0.35			0.31			0.35			0.27			0.35			1.00			1.17
Dividends per common share		0.25			0.25			0.25			0.25			0.25			0.75			0.75
Book value per common share⁽¹⁾		13.98			13.30			13.31			13.46			12.19
Closing stock price		19.01			17.90			17.83			21.20			16.31
Market price/book value⁽²⁾		135.98	%		134.59	%		133.96	%		157.50	%		133.80	%
Price earnings ratio⁽³⁾		13.65			14.36			12.77			19.79			11.75
Annualized dividend yield⁽⁴⁾		5.26	%		5.59	%		5.61	%		4.72	%		6.13	%

REGULATORY CAPITAL RATIOS
Consolidated:
Total risk-based capital ratio		11.95	%		11.85	%		11.78	%		11.88	%		11.96	%
Tier 1 risk-based capital ratio		9.39			9.30			9.23			9.30			9.37
Tier 1 leverage capital ratio		8.15			8.08			8.36			8.50			8.58
Common equity tier 1 ratio		8.83			8.74			8.67			8.74			8.80
West Bank:
Total risk-based capital ratio		12.73	%		12.66	%		12.63	%		12.76	%		12.89	%
Tier 1 risk-based capital ratio		11.86			11.79			11.76			11.89			12.01
Tier 1 leverage capital ratio		10.29			10.25			10.65			10.86			11.00
Common equity tier 1 ratio		11.86			11.79			11.76			11.89			12.01

KEY PERFORMANCE RATIOS AND OTHER METRICS
Return on average assets⁽⁵⁾		0.60	%		0.53	%		0.61	%		0.48	%		0.64	%		0.59	%		0.72	%
Return on average equity⁽⁶⁾		10.41			9.50			10.63			8.89			10.89			10.18			12.22
Net interest margin^(7)(13)		1.91			1.86			1.88			1.87			1.91			1.88			2.05
Yield on interest-earning assets^(8)(13)		5.16			5.13			4.99			4.87			4.70			5.10			4.56
Cost of interest-bearing liabilities		3.84			3.83			3.70			3.60			3.38			3.79			3.09
Efficiency ratio^(9)(13)		63.28			67.14			62.04			64.66			60.83			64.16			59.52
Nonperforming assets to total assets⁽¹⁰⁾		0.01			0.01			0.01			0.01			0.01
ACL ratio⁽¹¹⁾		0.97			0.95			0.95			0.97			0.99
Loans/total assets		75.75			75.63			75.20			76.52			76.98
Loans/total deposits		92.15			94.27			97.23			98.44			103.42
Tangible common equity ratio⁽¹²⁾		5.90			5.65			5.65			5.88			5.51

(1)	Includes accumulated other comprehensive loss.
(2)	Closing stock price divided by book value per common share.
(3)	Closing stock price divided by annualized earnings per common share (basic).
(4)	Annualized dividend divided by period end closing stock price.
(5)	Annualized net income divided by average assets.
(6)	Annualized net income divided by average stockholders’ equity.
(7)	Annualized tax-equivalent net interest income divided by average interest-earning assets.
(8)	Annualized tax-equivalent interest income on interest-earning assets divided by average interest-earning assets.
(9)	Noninterest expense (excluding other real estate owned expense and write-down of premises) divided by noninterest income (excluding net securities gains/losses and gains/losses on disposition of premises and equipment) plus tax-equivalent net interest income.
(10)	Total nonperforming assets divided by total assets.
(11)	Allowance for credit losses on loans divided by total loans.
(12)	Common equity less intangible assets (none held) divided by tangible assets.
(13)	A non-GAAP measure.

NON-GAAP FINANCIAL MEASURES

This report contains references to financial measures that are not defined in GAAP. Such non-GAAP financial measures include the Company’s presentation of net interest income and net interest margin on a fully taxable equivalent (FTE) basis and the presentation of the efficiency ratio on an adjusted and FTE basis, excluding certain income and expenses. Management believes these non-GAAP financial measures provide useful information to both management and investors to analyze and evaluate the Company’s financial performance. These measures are considered standard measures of comparison within the banking industry. Additionally, management believes providing measures on a FTE basis enhances the comparability of income arising from taxable and nontaxable sources. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. These non-GAAP disclosures should not be considered an alternative to the Company’s GAAP results. The following table reconciles the non-GAAP financial measures of net interest income and net interest margin on a fully taxable equivalent basis and efficiency ratio on an adjusted and FTE basis.


(in thousands)	For the Quarter Ended															For the Nine Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			September 30, 2024			September 30, 2023
Reconciliation of net interest income and net interest margin on a FTE basis to GAAP:
Net interest income (GAAP)	$	17,960		$	17,230		$	16,750		$	16,361		$	16,634		$	51,940		$	52,670
Tax-equivalent adjustment ⁽¹⁾		29			55			82			95			113			166			396
Net interest income on a FTE basis (non-GAAP)		17,989			17,285			16,832			16,456			16,747			52,106			53,066
Average interest-earning assets		3,749,688			3,731,674			3,595,954			3,487,799			3,478,053			3,692,647			3,458,606
Net interest margin on a FTE basis (non-GAAP)		1.91	%		1.86	%		1.88	%		1.87	%		1.91	%		1.88	%		2.05	%

Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP:
Net interest income on a FTE basis (non-GAAP)	$	17,989		$	17,285		$	16,832		$	16,456		$	16,747		$	52,106		$	53,066
Noninterest income		2,359			2,346			2,299			1,898			2,822			7,004			8,168
Adjustment for realized securities losses, net		—			—			—			431			—			—			—
Adjustment for losses on disposal of premises and equipment, net		26			21			—			24			3			47			5
Adjusted income		20,374			19,652			19,131			18,809			19,572			59,157			61,239
Noninterest expense		12,892			13,194			11,868			12,161			11,905			37,954			36,450
Efficiency ratio on an adjusted and FTE basis (non-GAAP) ⁽²⁾		63.28	%		67.14	%		62.04	%		64.66	%		60.83	%		64.16	%		59.52	%

(1)

Computed on a tax-equivalent basis using a federal income tax rate of 21 percent, adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt securities and loans. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results, as it enhances the comparability of income arising from taxable and nontaxable sources.

(2)

The efficiency ratio expresses noninterest expense as a percent of fully taxable equivalent net interest income and noninterest income, excluding specific noninterest income and expenses. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the Company’s financial performance. It is a standard measure of comparison within the banking industry. A lower ratio is more desirable.

The MIL Network –

January 25, 2025

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

Source: GlobeNewswire (MIL-OSI)

FAIRFIELD, N.J., Oct. 24, 2024 (GLOBE NEWSWIRE) — Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported net income for the quarter ended September 30, 2024 of $6.1 million, or $0.10 per diluted share, compared to a GAAP net loss of $90.1 million, or $1.45 per diluted share, for the quarter ended June 30, 2024. The net loss for the quarter ended June 30, 2024 included a goodwill impairment of $95.3 million, as previously disclosed. Excluding this item, net income for the quarter ended September 30, 2024 increased $496,000 from adjusted net income of $5.6 million for the quarter ended June 30, 2024.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on November 20, 2024, to stockholders of record as of November 6, 2024.

Craig L. Montanaro, President and Chief Executive Officer, commented, “I’m pleased to report that this quarter saw our net interest margin reach its inflection point and begin to ascend. Despite four basis points of quarterly compression, each successive month of the quarter reflected an increase in our net interest margin. The recent fed funds rate reduction of 50 basis points has already begun translating into a cost of funds benefit in October. Additional fed funds rate cuts, which the market is anticipating, will be a positive catalyst for our liability-sensitive balance sheet.”

Mr. Montanaro continued, “Regarding asset quality, our loan portfolio remains strong. Minimal exposure to New York City rent-regulated multifamily and office real estate, coupled with our robust commercial real estate ACL coverage ratios and peer-leading charge-off ratios, leaves us well-positioned in the current environment.”

Balance Sheet

Total assets were $7.77 billion at September 30, 2024, an increase of $88.9 million, or 1.2%, from June 30, 2024.
Investment securities totaled $1.20 billion at September 30, 2024, a decrease of $5.5 million, or 0.5%, from June 30, 2024.
Loans receivable totaled $5.78 billion at September 30, 2024, an increase of $51.5 million, or 0.9%, from June 30, 2024, primarily reflecting growth in one- to four-family residential mortgage loans and construction loans.
Deposits were $5.47 billion at September 30, 2024, an increase of $312.4 million, or 6.1%, from June 30, 2024. This increase was largely the result of a reallocation from Federal Home Loan Bank (“FHLB”) advances into brokered certificates of deposits, due to the relatively more favorable economics of brokered deposits compared to advances.
Borrowings were $1.48 billion at September 30, 2024, a decrease of $229.9 million, or 13.4%, from June 30, 2024, primarily reflecting a decrease in FHLB borrowings offset by an increase in brokered certificates of deposits, as noted above.
At September 30, 2024, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.06 billion, an increase of $240.0 million from June 30, 2024, and represents 26.5% of total assets.

Earnings

Net Interest Income and Net Interest Margin

Net interest margin contracted four basis points to 1.80% for the quarter ended September 30, 2024. The decrease for the quarter was driven by increases in the cost and average balances of interest-bearing deposits and a decrease in the average balance of interest-earning assets, partially offset by decreases in the average balances of interest-bearing borrowings and higher yields on interest-earning assets.
For the quarter ended September 30, 2024, net interest income decreased $830,000 to $32.4 million from $33.3 million for the quarter ended June 30, 2024. Included in net interest income for the quarters ended September 30, 2024 and June 30, 2024, respectively, was purchase accounting accretion of $649,000 and $612,000, and loan prepayment penalty income of $52,000 and $366,000.

Non-Interest Income

Non-interest income decreased $1.2 million to income of $4.6 million for the quarter ended September 30, 2024, from $5.8 million for the quarter ended June 30, 2024. Included in non-interest income for the quarter ended June 30, 2024 was a non-recurring contract renewal bonus of $750,000 and $1.1 million in non-recurring payments on two life insurance policies, partially offset by a $392,000 non-recurring exchange charge related to the December 2023 Bank Owned Life Insurance (“BOLI”) restructure. No such non-recurring items were recorded during the quarter ended September 30, 2024.
Income from BOLI decreased $642,000 to $2.6 million for the quarter ended September 30, 2024 from $3.2 million for the quarter ended June 30, 2024, primarily driven by the non-recurring items recorded for the quarter ended June 30, 2024, as disclosed above.

Non-Interest Expense

For the quarter ended September 30, 2024, non-interest expense decreased $96.8 million, or 76.5%, to $29.8 million from $126.6 million for the quarter ended June 30, 2024, driven by a non-cash goodwill impairment recognized in the prior comparative period. Excluding the goodwill impairment, adjusted non-interest expense increased $605,000 from $29.2 million, primarily driven by increases in salary and benefits expense and other expense.
Salary and benefits expense increased $232,000 primarily driven by annual merit increases and higher payroll taxes, partially offset by a non-recurring decrease in stock-based compensation.
Other expense increased $344,000 primarily driven by an increase of $243,000 in the provision for credit losses on off balance sheet commitments.

Income Taxes

Income tax expense totaled $1.1 million for the quarter ended September 30, 2024, compared to an income tax benefit of $917,000 for the quarter ended June 30, 2024. The increase in income tax expense was primarily due to higher pre-tax income in the current quarter, coupled with a partial reversal of the deferred tax liability associated with the previously recorded goodwill impairment in the prior quarter.

Asset Quality

The balance of non-performing assets remained steady at $39.9 million, or 0.51% of total assets, at September 30, 2024, and $39.9 million, or 0.52% of total assets, at June 30, 2024, respectively.
Net charge-offs totaled $124,000, or 0.01% of average loans, on an annualized basis, for the quarter ended September 30, 2024, compared to $3.5 million, or 0.25% of average loans, on an annualized basis, for the quarter ended June 30, 2024.
For the quarter ended September 30, 2024, the Company recorded a provision for credit losses of $108,000, compared to $3.5 million for the quarter ended June 30, 2024. The provision for credit loss expense for the quarter ended September 30, 2024 was primarily driven by loan growth.
The allowance for credit losses (“ACL”) was $44.9 million, or 0.78% of total loans, at September 30, 2024 and remained unchanged from June 30, 2024.

Capital

For the quarter ended September 30, 2024, book value per share decreased $0.06, or 0.5%, to $11.64 while tangible book value per share decreased $0.05, or 0.5%, to $9.85.
At September 30, 2024, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $76.0 million, partially offset by after-tax unrealized gains on derivatives of $11.0 million. After-tax net unrecognized losses on securities held to maturity of $8.2 million were not reflected in total stockholders’ equity.
At September 30, 2024, the Company’s tangible equity to tangible assets ratio equaled 8.31% and the regulatory capital ratios of both the Company and the Bank were in excess of the levels required by federal banking regulators to be classified as “well-capitalized” under regulatory guidelines.

This earnings release should be read in conjunction with Kearny Financial Corp.’s Q1 2025 Investor Presentation, a copy of which is available through the Investor Relations link located at the bottom of the page of our website at www.kearnybank.com and via a Current Report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.

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

Category: Earnings

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


Linked-Quarter Comparative Financial Analysis

Kearny Financial Corp. Consolidated Balance Sheets (Unaudited)

(Dollars and Shares in Thousands, Except Per Share Data)	September 30, 2024			June 30, 2024			Variance or Change			Variance or Change Pct.
Assets
Cash and cash equivalents	$	155,574		$	63,864		$	91,710		143.6	%
Securities available for sale		1,070,811			1,072,833			(2,022	)	-0.2	%
Securities held to maturity		132,256			135,742			(3,486	)	-2.6	%
Loans held-for-sale		8,866			6,036			2,830		46.9	%
Loans receivable		5,784,246			5,732,787			51,459		0.9	%
Less: allowance for credit losses on loans		(44,923	)		(44,939	)		(16	)	—%
Net loans receivable		5,739,323			5,687,848			51,475		0.9	%
Premises and equipment		45,189			44,940			249		0.6	%
Federal Home Loan Bank stock		57,706			80,300			(22,594	)	-28.1	%
Accrued interest receivable		29,467			29,521			(54	)	-0.2	%
Goodwill		113,525			113,525			—		—	%
Core deposit intangible		1,805			1,931			(126	)	-6.5	%
Bank owned life insurance		300,186			297,874			2,312		0.8	%
Deferred income taxes, net		50,131			50,339			(208	)	-0.4	%
Other assets		67,540			98,708			(31,168	)	-31.6	%
Total assets	$	7,772,379		$	7,683,461		$	88,918		1.2	%

Liabilities
Deposits:
Non-interest-bearing	$	592,099		$	598,366		$	(6,267	)	-1.0	%
Interest-bearing		4,878,413			4,559,757			318,656		7.0	%
Total deposits		5,470,512			5,158,123			312,389		6.1	%
Borrowings		1,479,888			1,709,789			(229,901	)	-13.4	%
Advance payments by borrowers for taxes		17,824			17,409			415		2.4	%
Other liabilities		52,618			44,569			8,049		18.1	%
Total liabilities		7,020,842			6,929,890			90,952		1.3	%

Stockholders’ Equity
Common stock		646			644			2		0.3	%
Paid-in capital		493,523			493,680			(157	)	—	%
Retained earnings		342,522			343,326			(804	)	-0.2	%
Unearned ESOP shares		(20,430	)		(20,916	)		486		2.3	%
Accumulated other comprehensive loss		(64,724	)		(63,163	)		(1,561	)	-2.5	%
Total stockholders’ equity		751,537			753,571			(2,034	)	-0.3	%
Total liabilities and stockholders’ equity	$	7,772,379		$	7,683,461		$	88,918		1.2	%

Consolidated capital ratios
Equity to assets		9.67	%		9.81	%		-0.14	%
Tangible equity to tangible assets ⁽¹⁾		8.31	%		8.43	%		-0.12	%

Share data
Outstanding shares		64,580			64,434			146		0.2	%
Book value per share	$	11.64		$	11.70		$	(0.06	)	-0.5	%
Tangible book value per share ⁽²⁾	$	9.85		$	9.90		$	(0.05	)	-0.5	%

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


Kearny Financial Corp. Consolidated Statements of Income (Loss) (Unaudited)

(Dollars and Shares in Thousands, Except Per Share Data)	Three Months Ended						Variance or Change			Variance or Change Pct.
(Dollars and Shares in Thousands, Except Per Share Data)	September 30, 2024			June 30, 2024			Variance or Change			Variance or Change Pct.
Interest income
Loans	$	66,331		$	65,819		$	512		0.8	%
Taxable investment securities		14,384			14,802			(418	)	-2.8	%
Tax-exempt investment securities		71			80			(9	)	-11.3%
Other interest-earning assets		2,466			2,289			177		7.7	%
Total interest income		83,252			82,990			262		0.3	%

Interest expense
Deposits		35,018			32,187			2,831		8.8	%
Borrowings		15,788			17,527			(1,739	)	-9.9	%
Total interest expense		50,806			49,714			1,092		2.2	%
Net interest income		32,446			33,276			(830	)	-2.5	%
Provision for credit losses		108			3,527			(3,419	)	-96.9	%
Net interest income after provision for credit losses		32,338			29,749			2,589		8.7	%

Non-interest income
Fees and service charges		635			580			55		9.5	%
Gain on sale of loans		200			111			89		80.2	%
Income from bank owned life insurance		2,567			3,209			(642	)	-20.0	%
Electronic banking fees and charges		391			1,130			(739	)	-65.4	%
Other income		833			776			57		7.3	%
Total non-interest income		4,626			5,806			(1,180	)	-20.3	%

Non-interest expense
Salaries and employee benefits		17,498			17,266			232		1.3	%
Net occupancy expense of premises		2,798			2,738			60		2.2	%
Equipment and systems		3,860			3,785			75		2.0	%
Advertising and marketing		342			480			(138	)	-28.8	%
Federal deposit insurance premium		1,563			1,532			31		2.0	%
Directors’ compensation		361			360			1		0.3	%
Goodwill impairment		—			97,370			(97,370	)	-100.0	%
Other expense		3,364			3,020			344		11.4	%
Total non-interest expense		29,786			126,551			(96,765	)	-76.5	%
Income (loss) before income taxes		7,178			(90,996	)		98,174		107.9	%
Income taxes		1,086			(917	)		2,003		-218.4	%
Net income (loss)	$	6,092		$	(90,079	)	$	96,171		106.8	%

Net income (loss) per common share (EPS)
Basic	$	0.10		$	(1.45	)	$	1.55
Diluted	$	0.10		$	(1.45	)	$	1.55

Dividends declared
Cash dividends declared per common share	$	0.11		$	0.11		$	—
Cash dividends declared	$	6,896		$	6,903		$	(7	)
Dividend payout ratio		113.2	%		-7.7	%		120.9	%

Weighted average number of common shares outstanding
Basic		62,389			62,254			135
Diluted		62,420			62,254			166


Kearny Financial Corp. Average Balance Sheet Data (Unaudited)

(Dollars in Thousands)	Three Months Ended						Variance or Change			Variance or Change Pct.
(Dollars in Thousands)	September 30, 2024			June 30, 2024			Variance or Change			Variance or Change Pct.
Assets
Interest-earning assets:
Loans receivable, including loans held for sale	$	5,761,593		$	5,743,008		$	18,585		0.3	%
Taxable investment securities		1,314,945			1,343,541			(28,596	)	-2.1	%
Tax-exempt investment securities		12,244			13,737			(1,493	)	-10.9	%
Other interest-earning assets		131,981			128,257			3,724		2.9	%
Total interest-earning assets		7,220,763			7,228,543			(7,780	)	-0.1	%
Non-interest-earning assets		467,670			466,537			1,133		0.2	%
Total assets	$	7,688,433		$	7,695,080		$	(6,647	)	-0.1	%

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand	$	2,282,608		$	2,310,521		$	(27,913	)	-1.2	%
Savings		668,240			631,622			36,618		5.8	%
Certificates of deposit		1,755,589			1,613,798			141,791		8.8	%
Total interest-bearing deposits		4,706,437			4,555,941			150,496		3.3	%
Borrowings:
Federal Home Loan Bank advances		1,325,583			1,507,192			(181,609	)	-12.0	%
Other borrowings		237,011			228,461			8,550		3.7	%
Total borrowings		1,562,594			1,735,653			(173,059	)	-10.0	%
Total interest-bearing liabilities		6,269,031			6,291,594			(22,563	)	-0.4	%
Non-interest-bearing liabilities:
Non-interest-bearing deposits		599,095			589,438			9,657		1.6	%
Other non-interest-bearing liabilities		69,629			62,978			6,651		10.6	%
Total non-interest-bearing liabilities		668,724			652,416			16,308		2.5	%
Total liabilities		6,937,755			6,944,010			(6,255	)	-0.1	%
Stockholders’ equity		750,678			751,070			(392	)	-0.1	%
Total liabilities and stockholders’ equity	$	7,688,433		$	7,695,080		$	(6,647	)	-0.1	%

Average interest-earning assets to average interest-bearing liabilities		115.18	%		114.89	%		0.29	%	0.3	%


Kearny Financial Corp. Performance Ratio Highlights (Unaudited)
	Three Months Ended				Variance or Change
	September 30, 2024		June 30, 2024		Variance or Change
Average yield on interest-earning assets:
Loans receivable, including loans held for sale	4.61	%	4.58	%	0.03	%
Taxable investment securities	4.38	%	4.41	%	-0.03	%
Tax-exempt investment securities ⁽¹⁾	2.32	%	2.32	%	—	%
Other interest-earning assets	7.47	%	7.14	%	0.33	%
Total interest-earning assets	4.61	%	4.59	%	0.02	%

Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand	3.13	%	3.06	%	0.07	%
Savings	1.05	%	0.63	%	0.42	%
Certificates of deposit	3.51	%	3.35	%	0.16	%
Total interest-bearing deposits	2.98	%	2.83	%	0.15	%
Borrowings:
Federal Home Loan Bank advances	3.82	%	3.86	%	-0.04	%
Other borrowings	5.28	%	5.24	%	0.04	%
Total borrowings	4.04	%	4.04	%	—	%
Total interest-bearing liabilities	3.24	%	3.16	%	0.08	%

Interest rate spread ⁽²⁾	1.37	%	1.43	%	-0.06	%
Net interest margin ⁽³⁾	1.80	%	1.84	%	-0.04	%

Non-interest income to average assets (annualized)	0.24	%	0.30	%	-0.06	%
Non-interest expense to average assets (annualized)	1.55	%	6.58	%	-5.03	%

Efficiency ratio ⁽⁴⁾	80.35	%	323.81	%	-243.46	%

Return on average assets (annualized)	0.32	%	-4.68	%	5.00	%
Return on average equity (annualized)	3.25	%	-47.97	%	51.22	%
Return on average tangible equity (annualized) ⁽⁵⁾	3.89	%	3.33	%	0.56	%

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


Five-Quarter Financial Trend Analysis

Kearny Financial Corp. Consolidated Balance Sheets

(Dollars and Shares in Thousands, Except Per Share Data)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
	(Unaudited)			(Audited)			(Unaudited)			(Unaudited)			(Unaudited)
Assets
Cash and cash equivalents	$	155,574		$	63,864		$	71,027		$	73,860		$	57,219
Securities available for sale		1,070,811			1,072,833			1,098,655			1,144,175			1,215,633
Securities held to maturity		132,256			135,742			139,643			141,959			143,730
Loans held-for-sale		8,866			6,036			4,117			14,030			3,934
Loans receivable		5,784,246			5,732,787			5,758,336			5,745,629			5,736,049
Less: allowance for credit losses on loans		(44,923	)		(44,939	)		(44,930	)		(44,867	)		(46,872	)
Net loans receivable		5,739,323			5,687,848			5,713,406			5,700,762			5,689,177
Premises and equipment		45,189			44,940			45,053			45,928			46,868
Federal Home Loan Bank stock		57,706			80,300			81,347			83,372			81,509
Accrued interest receivable		29,467			29,521			31,065			30,258			29,766
Goodwill		113,525			113,525			210,895			210,895			210,895
Core deposit intangible		1,805			1,931			2,057			2,189			2,323
Bank owned life insurance		300,186			297,874			296,493			256,064			294,491
Deferred income taxes, net		50,131			50,339			47,225			46,116			56,500
Other real estate owned		—			—			—			11,982			12,956
Other assets		67,540			98,708			100,989			136,242			129,865
Total assets	$	7,772,379		$	7,683,461		$	7,841,972		$	7,897,832		$	7,974,866

Liabilities
Deposits:
Non-interest-bearing	$	592,099		$	598,366		$	586,089		$	584,130		$	595,141
Interest-bearing		4,878,413			4,559,757			4,622,961			4,735,500			4,839,027
Total deposits		5,470,512			5,158,123			5,209,050			5,319,630			5,434,168
Borrowings		1,479,888			1,709,789			1,722,178			1,667,055			1,626,933
Advance payments by borrowers for taxes		17,824			17,409			17,387			16,742			16,907
Other liabilities		52,618			44,569			44,279			46,427			47,324
Total liabilities		7,020,842			6,929,890			6,992,894			7,049,854			7,125,332

Stockholders’ Equity
Common stock		646			644			644			645			652
Paid-in capital		493,523			493,680			493,187			493,297			497,269
Retained earnings		342,522			343,326			440,308			439,755			460,464
Unearned ESOP shares		(20,430	)		(20,916	)		(21,402	)		(21,889	)		(22,375	)
Accumulated other comprehensive loss		(64,724	)		(63,163	)		(63,659	)		(63,830	)		(86,476	)
Total stockholders’ equity		751,537			753,571			849,078			847,978			849,534
Total liabilities and stockholders’ equity	$	7,772,379		$	7,683,461		$	7,841,972		$	7,897,832		$	7,974,866

Consolidated capital ratios
Equity to assets		9.67	%		9.81	%		10.83	%		10.74	%		10.65	%
Tangible equity to tangible assets ⁽¹⁾		8.31	%		8.43	%		8.34	%		8.26	%		8.20	%

Share data
Outstanding shares		64,580			64,434			64,437			64,445			65,132
Book value per share	$	11.64		$	11.70		$	13.18		$	13.16		$	13.04
Tangible book value per share ⁽²⁾	$	9.85		$	9.90		$	9.87		$	9.85		$	9.77

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


Kearny Financial Corp. Supplemental Balance Sheet Highlights (Unaudited)

(Dollars in Thousands)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Loan portfolio composition:
Commercial loans:
Multi-family mortgage	$	2,646,187		$	2,645,851		$	2,645,195		$	2,651,274		$	2,699,151
Nonresidential mortgage		950,771			948,075			965,539			947,287			946,801
Commercial business		145,984			142,747			147,326			144,134			149,229
Construction		227,327			209,237			229,457			221,933			230,703
Total commercial loans		3,970,269			3,945,910			3,987,517			3,964,628			4,025,884
One- to four-family residential mortgage		1,768,230			1,756,051			1,741,644			1,746,065			1,689,051
Consumer loans:
Home equity loans		44,741			44,104			42,731			43,517			42,896
Other consumer		2,965			2,685			3,198			2,728			2,644
Total consumer loans		47,706			46,789			45,929			46,245			45,540
Total loans, excluding yield adjustments		5,786,205			5,748,750			5,775,090			5,756,938			5,760,475
Unaccreted yield adjustments		(1,959	)		(15,963	)		(16,754	)		(11,309	)		(24,426	)
Loans receivable, net of yield adjustments		5,784,246			5,732,787			5,758,336			5,745,629			5,736,049
Less: allowance for credit losses on loans		(44,923	)		(44,939	)		(44,930	)		(44,867	)		(46,872	)
Net loans receivable	$	5,739,323		$	5,687,848		$	5,713,406		$	5,700,762		$	5,689,177

Asset quality:
Nonperforming assets:
Accruing loans – 90 days and over past due	$	—		$	—		$	—		$	—		$	—
Nonaccrual loans		39,854			39,882			39,546			28,089			37,912
Total nonperforming loans		39,854			39,882			39,546			28,089			37,912
Nonaccrual loans held-for-sale		—			—			—			9,700			—
Other real estate owned		—			—			—			11,982			12,956
Total nonperforming assets	$	39,854		$	39,882		$	39,546		$	49,771		$	50,868

Nonperforming loans (% total loans)		0.69	%		0.70	%		0.69	%		0.49	%		0.66	%
Nonperforming assets (% total assets)		0.51	%		0.52	%		0.50	%		0.63	%		0.64	%

Classified loans	$	119,534		$	118,700		$	115,772		$	94,676		$	98,616

Allowance for credit losses on loans (ACL):
ACL to total loans		0.78	%		0.78	%		0.78	%		0.78	%		0.81	%
ACL to nonperforming loans		112.72	%		112.68	%		113.61	%		159.73	%		123.63	%
Net charge-offs	$	124		$	3,518		$	286		$	4,110		$	2,107
Average net charge-off rate (annualized)		0.01	%		0.25	%		0.02	%		0.29	%		0.15	%


Kearny Financial Corp. Supplemental Balance Sheet Highlights (Unaudited)

(Dollars in Thousands)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Funding composition:
Deposits:
Non-interest-bearing deposits	$	592,099		$	598,367		$	586,089		$	584,130		$	595,141
Interest-bearing demand		2,247,685			2,308,915			2,349,032			2,347,262			2,236,573
Savings		681,709			643,481			630,456			646,182			689,163
Certificates of deposit (retail)		1,215,746			1,199,127			1,235,261			1,283,676			1,300,382
Certificates of deposit (brokered and listing service)		733,273			408,234			408,212			458,380			612,909
Interest-bearing deposits		4,878,413			4,559,757			4,622,961			4,735,500			4,839,027
Total deposits		5,470,512			5,158,124			5,209,050			5,319,630			5,434,168

Borrowings:
Federal Home Loan Bank advances		1,209,888			1,534,789			1,457,178			1,432,055			1,456,933
Overnight borrowings		270,000			175,000			265,000			235,000			170,000
Total borrowings		1,479,888			1,709,789			1,722,178			1,667,055			1,626,933

Total funding	$	6,950,400		$	6,867,913		$	6,931,228		$	6,986,685		$	7,061,101

Loans as a % of deposits		105.1	%		110.4	%		109.8	%		107.4	%		104.8	%
Deposits as a % of total funding		78.7	%		75.1	%		75.2	%		76.1	%		77.0	%
Borrowings as a % of total funding		21.3	%		24.9	%		24.8	%		23.9	%		23.0	%

Uninsured deposits:
Uninsured deposits (reported) ⁽¹⁾	$	1,799,726		$	1,772,623		$	1,760,740		$	1,813,122		$	1,734,288
Uninsured deposits (adjusted) ⁽²⁾	$	773,375		$	764,447		$	718,026		$	694,510		$	683,265

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


Kearny Financial Corp. Consolidated Statements of Income (Loss) (Unaudited)

	Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Interest income
Loans	$	66,331		$	65,819		$	64,035		$	63,384		$	62,769
Taxable investment securities		14,384			14,802			15,490			16,756			16,265
Tax-exempt investment securities		71			80			85			84			87
Other interest-earning assets		2,466			2,289			2,475			2,401			2,047
Total interest income		83,252			82,990			82,085			82,625			81,168

Interest expense
Deposits		35,018			32,187			32,320			30,340			27,567
Borrowings		15,788			17,527			15,446			16,446			14,441
Total interest expense		50,806			49,714			47,766			46,786			42,008
Net interest income		32,446			33,276			34,319			35,839			39,160
Provision for credit losses		108			3,527			349			2,105			245
Net interest income after provision for credit losses		32,338			29,749			33,970			33,734			38,915

Non-interest income
Fees and service charges		635			580			657			624			748
Loss on sale and call of securities		—			—			—			(18,135	)		—
Gain (loss) on sale of loans		200			111			(712	)		104			215
Loss on sale of other real estate owned		—			—			—			(974	)		—
Income from bank owned life insurance		2,567			3,209			3,039			1,162			1,666
Electronic banking fees and charges		391			1,130			464			396			367
Other income		833			776			755			811			1,014
Total non-interest income		4,626			5,806			4,203			(16,012	)		4,010

Non-interest expense
Salaries and employee benefits		17,498			17,266			16,911			17,282			17,761
Net occupancy expense of premises		2,798			2,738			2,863			2,674			2,758
Equipment and systems		3,860			3,785			3,823			3,814			3,801
Advertising and marketing		342			480			387			301			228
Federal deposit insurance premium		1,563			1,532			1,429			1,495			1,524
Directors’ compensation		361			360			360			393			393
Goodwill impairment		—			97,370			—			—			—
Other expense		3,364			3,020			3,286			3,808			3,309
Total non-interest expense		29,786			126,551			29,059			29,767			29,774
Income (loss) before income taxes		7,178			(90,996	)		9,114			(12,045	)		13,151
Income taxes		1,086			(917	)		1,717			1,782			3,309
Net income (loss)	$	6,092		$	(90,079	)	$	7,397		$	(13,827	)	$	9,842

Net income (loss) per common share (EPS)
Basic	$	0.10		$	(1.45	)	$	0.12		$	(0.22	)	$	0.16
Diluted	$	0.10		$	(1.45	)	$	0.12		$	(0.22	)	$	0.16

Dividends declared
Cash dividends declared per common share	$	0.11		$	0.11		$	0.11		$	0.11		$	0.11
Cash dividends declared	$	6,896		$	6,903		$	6,844		$	6,882		$	6,989
Dividend payout ratio		113.2	%		-7.7	%		92.5	%		-49.8	%		71.0	%

Weighted average number of common shares outstanding
Basic		62,389			62,254			62,205			62,299			63,014
Diluted		62,420			62,254			62,211			62,299			63,061


Kearny Financial Corp. Average Balance Sheet Data (Unaudited)

	Three Months Ended
(Dollars in Thousands)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Assets
Interest-earning assets:
Loans receivable, including loans held-for-sale	$	5,761,593		$	5,743,008		$	5,752,477		$	5,726,321		$	5,788,074
Taxable investment securities		1,314,945			1,343,541			1,382,064			1,509,165			1,516,393
Tax-exempt investment securities		12,244			13,737			14,614			15,025			15,483
Other interest-earning assets		131,981			128,257			125,155			139,740			130,829
Total interest-earning assets		7,220,763			7,228,543			7,274,310			7,390,251			7,450,779
Non-interest-earning assets		467,670			466,537			577,411			554,335			568,723
Total assets	$	7,688,433		$	7,695,080		$	7,851,721		$	7,944,586		$	8,019,502

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand	$	2,282,608		$	2,310,521		$	2,378,831		$	2,301,169		$	2,245,831
Savings		668,240			631,622			635,226			664,926			719,508
Certificates of deposit		1,755,589			1,613,798			1,705,513			1,824,316			1,968,512
Total interest-bearing deposits		4,706,437			4,555,941			4,719,570			4,790,411			4,933,851
Borrowings:
Federal Home Loan Bank advances		1,325,583			1,507,192			1,428,801			1,513,497			1,386,473
Other borrowings		237,011			228,461			210,989			142,283			158,098
Total borrowings		1,562,594			1,735,653			1,639,790			1,655,780			1,544,571
Total interest-bearing liabilities		6,269,031			6,291,594			6,359,360			6,446,191			6,478,422
Non-interest-bearing liabilities:
Non-interest-bearing deposits		599,095			589,438			581,870			597,294			612,251
Other non-interest-bearing liabilities		69,629			62,978			65,709			62,387			66,701
Total non-interest-bearing liabilities		668,724			652,416			647,579			659,681			678,952
Total liabilities		6,937,755			6,944,010			7,006,939			7,105,872			7,157,374
Stockholders’ equity		750,678			751,070			844,782			838,714			862,128
Total liabilities and stockholders’ equity	$	7,688,433		$	7,695,080		$	7,851,721		$	7,944,586		$	8,019,502

Average interest-earning assets to average interest-bearing liabilities		115.18	%		114.89	%		114.39	%		114.65	%		115.01	%


Kearny Financial Corp. Performance Ratio Highlights
	Three Months Ended
	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Average yield on interest-earning assets:
Loans receivable, including loans held-for-sale	4.61	%	4.58	%	4.45	%	4.43	%	4.34	%
Taxable investment securities	4.38	%	4.41	%	4.48	%	4.44	%	4.29	%
Tax-exempt investment securities ⁽¹⁾	2.32	%	2.32	%	2.32	%	2.25	%	2.25	%
Other interest-earning assets	7.47	%	7.14	%	7.91	%	6.87	%	6.26	%
Total interest-earning assets	4.61	%	4.59	%	4.51	%	4.47	%	4.36	%

Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand	3.13	%	3.06	%	3.08	%	2.91	%	2.58	%
Savings	1.05	%	0.63	%	0.46	%	0.44	%	0.47	%
Certificates of deposit	3.51	%	3.35	%	3.11	%	2.82	%	2.49	%
Total interest-bearing deposits	2.98	%	2.83	%	2.74	%	2.53	%	2.23	%
Borrowings:
Federal Home Loan Bank advances	3.82	%	3.86	%	3.55	%	3.82	%	3.54	%
Other borrowings	5.28	%	5.24	%	5.22	%	5.65	%	5.46	%
Total borrowings	4.04	%	4.04	%	3.77	%	3.97	%	3.74	%
Total interest-bearing liabilities	3.24	%	3.16	%	3.00	%	2.90	%	2.59	%

Interest rate spread ⁽²⁾	1.37	%	1.43	%	1.51	%	1.57	%	1.77	%
Net interest margin ⁽³⁾	1.80	%	1.84	%	1.89	%	1.94	%	2.10	%

Non-interest income to average assets (annualized)	0.24	%	0.30	%	0.21	%	-0.81	%	0.20	%
Non-interest expense to average assets (annualized)	1.55	%	6.58	%	1.48	%	1.50	%	1.49	%

Efficiency ratio ⁽⁴⁾	80.35	%	323.81	%	75.43	%	150.13	%	68.97	%

Return on average assets (annualized)	0.32	%	-4.68	%	0.38	%	-0.70	%	0.49	%
Return on average equity (annualized)	3.25	%	-47.97	%	3.50	%	-6.59	%	4.57	%
Return on average tangible equity (annualized) ⁽⁵⁾	3.89	%	3.33	%	4.68	%	-8.84	%	6.07	%

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

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


Kearny Financial Corp. Reconciliation of GAAP to Non-GAAP (Unaudited)

	Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Adjusted net income:
Net income (loss) (GAAP)	$	6,092		$	(90,079	)	$	7,397		$	(13,827	)	$	9,842
Non-recurring transactions – net of tax:
Net effect of sale and call of securities		—			—			—			12,876			—
Net effect of bank-owned life insurance restructure		—			392			—			6,286			—
Goodwill impairment		—			95,283			—			—			—
Adjusted net income	$	6,092		$	5,596		$	7,397		$	5,335		$	9,842

Calculation of pre-tax, pre-provision net revenue:
Net income (loss) (GAAP)	$	6,092		$	(90,079	)	$	7,397		$	(13,827	)	$	9,842
Adjustments to net income (GAAP):
Provision for income taxes		1,086			(917	)		1,717			1,782			3,309
Provision for credit losses		108			3,527			349			2,105			245
Pre-tax, pre-provision net revenue (non-GAAP)	$	7,286		$	(87,469	)	$	9,463		$	(9,940	)	$	13,396

Adjusted earnings per share:
Weighted average common shares – basic		62,389			62,254			62,205			62,299			63,014
Weighted average common shares – diluted		62,420			62,330			62,211			62,367			63,061

Earnings per share – basic (GAAP)	$	0.10		$	(1.45	)	$	0.12		$	(0.22	)	$	0.16
Earnings per share – diluted (GAAP)	$	0.10		$	(1.45	)	$	0.12		$	(0.22	)	$	0.16

Adjusted earnings per share – basic (non-GAAP)	$	0.10		$	0.09		$	0.12		$	0.09		$	0.16
Adjusted earnings per share – diluted (non-GAAP)	$	0.10		$	0.09		$	0.12		$	0.09		$	0.16

Pre-tax, pre-provision net revenue per share:
Pre-tax, pre-provision net revenue per share – basic (non-GAAP)	$	0.12		$	(1.41	)	$	0.15		$	(0.16	)	$	0.21
Pre-tax, pre-provision net revenue per share – diluted (non-GAAP)	$	0.12		$	(1.40	)	$	0.15		$	(0.16	)	$	0.21

Adjusted return on average assets:
Total average assets	$	7,688,433		$	7,695,080		$	7,851,721		$	7,944,586		$	8,019,502

Return on average assets (GAAP)		0.32	%		-4.68	%		0.38	%		-0.70	%		0.49	%
Adjusted return on average assets (non-GAAP)		0.32	%		0.29	%		0.38	%		0.27	%		0.49	%

Adjusted return on average equity:
Total average equity	$	750,678		$	751,070		$	844,782		$	838,714		$	862,128

Return on average equity (GAAP)		3.25	%		-47.97	%		3.50	%		-6.59	%		4.57	%
Adjusted return on average equity (non-GAAP)		3.25	%		2.98	%		3.50	%		2.54	%		4.57	%


Kearny Financial Corp. Reconciliation of GAAP to Non-GAAP (Unaudited)

	Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Adjusted return on average tangible equity:
Total average equity	$	750,678		$	751,070		$	844,782		$	838,714		$	862,128
Less: average goodwill		(113,525	)		(113,525	)		(210,895	)		(210,895	)		(210,895	)
Less: average other intangible assets		(1,886	)		(2,006	)		(2,138	)		(2,277	)		(2,411	)
Total average tangible equity	$	635,267		$	635,539		$	631,749		$	625,542		$	648,822

Return on average tangible equity (non-GAAP)		3.89	%		3.33	%		4.68	%		-8.84	%		6.07	%
Adjusted return on average tangible equity (non-GAAP)		3.89	%		3.58	%		4.68	%		3.41	%		6.07	%

Adjusted non-interest expense ratio:
Non-interest expense (GAAP)	$	29,786		$	126,551		$	29,059		$	29,767		$	29,774
Non-recurring transactions:
Goodwill impairment		—			(97,370	)		—			—			—
Non-interest expense (non-GAAP)	$	29,786		$	29,181		$	29,059		$	29,767		$	29,774

Non-interest expense ratio (GAAP)		1.55	%		6.58	%		1.48	%		1.50	%		1.49	%
Adjusted non-interest expense ratio (non-GAAP)		1.55	%		1.52	%		1.48	%		1.50	%		1.49	%

Adjusted efficiency ratio:
Non-interest expense (non-GAAP)	$	29,786		$	29,181		$	29,059		$	29,767		$	29,774

Net interest income (GAAP)	$	32,446		$	33,276		$	34,319		$	35,839		$	39,160
Total non-interest income (GAAP)		4,626			5,806			4,203			(16,012	)		4,010
Non-recurring transactions:
Net effect of sale and call of securities		—			—			—			18,135			—
Net effect of bank-owned life insurance restructure		—			392			—			573			—
Total revenue (non-GAAP)	$	37,072		$	39,474		$	38,522		$	38,535		$	43,170

Efficiency ratio (GAAP)		80.35	%		323.81	%		75.43	%		150.13	%		68.97	%
Adjusted efficiency ratio (non-GAAP)		80.35	%		73.92	%		75.43	%		77.25	%		68.97	%

The MIL Network –

January 25, 2025

MIL-OSI Global: Proof that immigrants fuel the US economy is found in the billions they send back home

Source: The Conversation – USA – By Ernesto Castañeda, Professor, American University

Migrant workers pick strawberries during harvest south of San Francisco, Calif. Visions of America/Joe Sohm/Universal Images Group via Getty Images

Donald Trump has vowed to deport millions of immigrants if he is elected to a second term, claiming that, among other things, foreign-born workers take jobs from others. His running mate JD Vance has echoed those anti-immigrant views.

Researchers, however, generally agree that massive deportations would hurt the U.S. economy, perhaps even triggering a recession.

Social scientists and analysts tend to concur that immigration — both documented and undocumented — spurs economic growth. But it is almost impossible to calculate directly how much immigrants contribute to the economy. That’s because we don’t know the earnings of every immigrant worker in the United States.

We do, however, have a good idea of how much they send back to their home countries – more than US$81 billion in 2022, according to the World Bank. And we can use this figure to indirectly calculate the total economic value of immigrant labor in the U.S.

Economic contributions are likely underestimated

I conducted a study with researchers at the Center for Latin American and Latino Studies and the Immigration Lab at American University to quantify how much immigrants contribute to the U.S. economy based on their remittances, or money sent back home.

Several studies indicate that remittances constitute 17.5% of immigrants’ income.

Given that, we estimate that the immigrants who remitted in 2022 had take-home wages of over $466 billion. Assuming their take-home wages are around 21% of the economic value of what they produce for the businesses they work for – like workers in similar entry-level jobs in restaurants and construction – then immigrants added a total of $2.2 trillion to the U.S. economy yearly.

That is about 8% of the gross domestic product of the United States and close to the entire GDP of Canada in 2022 – the world’s ninth-largest economy.

Immigration strengthens the US

Beyond its sheer value, this figure tells us something important about immigrant labor: The main beneficiaries of immigrant labor are the U.S. economy and society.

The $81 billion that immigrants sent home in 2022 is a tiny fraction of their total economic value of $2.2 trillion. The vast majority of immigrant wages and productivity – 96% – stayed in the United States.

Remittances from the U.S. represent a substantial income source for the people who receive them. But they do not represent a siphoning of U.S. dollars, as Trump has implied when he called remittances “welfare” for people in other countries and suggested taxing them to pay for the construction of a border wall.

The economic contributions of U.S. immigrants are likely to be even more substantial than what we calculate.

For one thing, the World Bank’s estimate of immigrant remittances is probably an undercount, since many immigrants send money abroad with people traveling to their home countries.

In prior research, my colleagues and I have also found that some groups of immigrants are less likely to remit than others.

One is white-collar professionals – immigrants with careers in banking, science, technology and education, for example. Unlike many undocumented immigrants, white-collar professionals typically have visas that allow them to bring their families with them, so they do not need to send money abroad to cover their household expenses back home.

Immigrants who have been working in the country for decades and have more family in the country also tend to send remittances less often.

Both of these groups have higher earnings, and their specialized contributions are not included in our $2.2 trillion estimate.

A Somali business owner stocks her store in Lewiston, Maine.
Tom Williams/CQ Roll Call

Additionally, our estimates do not account for the economic growth stimulated by immigrants when they spend money in the U.S., creating demand, generating jobs and starting businesses that hire immigrants and locals.

For example, we calculate the contributions of Salvadoran immigrants and their children alone added roughly $223 billion to the U.S. economy in 2023. That’s about 1% of the country’s entire GDP.

Considering that the U.S. economy grew by about 2% in 2022 and 2023, that’s a substantial sum.

These figures are a reminder that the financial success of the U.S. relies on immigrants and their labor.

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

– ref. Proof that immigrants fuel the US economy is found in the billions they send back home – https://theconversation.com/proof-that-immigrants-fuel-the-us-economy-is-found-in-the-billions-they-send-back-home-227542

MIL OSI – Global Reports –

January 25, 2025

MIL-OSI Europe: Corruption risk assessment in focus of OSCE seminar in Turkmenistan

Source: Organization for Security and Co-operation in Europe – OSCE

Headline: Corruption risk assessment in focus of OSCE seminar in Turkmenistan

Participants during an OSCE-organized seminar on interagency co-operation and co-ordination in corruption risk assessment, Ashgabat, 23 October 2024, OSCE (OSCE) Photo details

Interagency co-operation and co-ordination in corruption risk assessment and implementation of the United Nations Convention Against Corruption’s (UNCAC) were addressed at an OSCE-organized seminar that took place in Ashgabat on 23 and 24 October 2024.
The seminar presented best practices of OSCE participating States in strengthening inter-agency co-operation in preventing and combating corruption.
An international expert from Moldova provided the participants with a comprehensive overview of the principles and requirements of the United Nations Convention against Corruption and of the process of self-assessment of the implementation of the Convention.
“Corruption, as a key threat to good governance, democratic processes and fair business practices, also poses a major impediment to progress in trade and connectivity,” said Olivera Zurovac-Kuzman, Economic and Environmental Officer of the OSCE Centre in Ashgabat.
“The OSCE Centrе in Ashgabat is actively collaborating with the Government of Turkmenistan on anti-corruption and related issues and stands ready to support efforts to improve public administration, promote transparency and accountability, and foster inter-agency co-operation and co-ordination in preventing and combating corruption,” stressed Zurovac-Kuzman.
Participants shared their views on how to enhance inter-agency co-operation and co-ordination of actions on key areas of the UN Convention against Corruption and examined parallel financial investigations as a tool to counteract and fight corruption. Special attention was paid to identification, tracing and seizure of criminal assets, pre-seizure planning and management of seized and confiscated assets.
The two-day event brought together representatives of Ministry of Finance and Economy Turkmenistan, Ministry of Adalat (Justice), State Customs Service, Central Bank, and Mejlis (Parliament), as well as the Union of Industrialists and Entrepreneurs and other relevant institutions.

MIL OSI Europe News –

January 25, 2025

MIL-OSI: Marex Group plc Announces Pricing of the Public Offering

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Oct. 24, 2024 (GLOBE NEWSWIRE) — Marex Group plc (“Marex”) (Nasdaq: MRX), the diversified global financial services platform, today announces the pricing of the public offering (the “Offering”) of 8,472,333 ordinary shares by certain selling shareholders (the “Selling Shareholders”) at $24.00 per share. In connection with the Offering, the Selling Shareholders have granted the underwriters a 30-day option to purchase up to an additional 1,270,849 ordinary shares.

Marex is not selling any ordinary shares in the Offering and will not receive any proceeds from any sale of shares by the Selling Shareholders. The Offering is expected to close on October 25, 2024, subject to customary closing conditions.

Barclays, Goldman Sachs & Co. LLC, Jefferies and Keefe, Bruyette & Woods, a Stifel Company, are acting as joint lead book-running managers and as representatives of the underwriters for the proposed Offering. Citigroup, UBS Investment Bank, Piper Sandler & Co. and Berenberg are acting as bookrunners for the Offering. Drexel Hamilton and Loop Capital Markets are acting as co-managers for the Offering.

The proposed Offering is being made only by means of a prospectus. Copies of the prospectus relating to the proposed Offering may be obtained from:

Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at 1-888-603-5847, or by email at barclaysprospectus@broadridge.com;
Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, via telephone: 1-866-471-2526, or via email: prospectus-ny@ny.email.gs.com;
Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by phone at (877) 821-7388, or by email at Prospectus_Department@Jefferies.com; or
Keefe, Bruyette & Woods Inc., 787 Seventh Avenue, Fourth Floor, New York, NY 10019, attention: Equity Capital Markets, or by calling toll free at (800) 966-1559 or emailing USCapitalMarkets@kbw.com.

A registration statement on Form F-1 relating to the Offering has been filed with, and was declared effective by, the U.S. Securities and Exchange Commission (the “SEC”).This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including the expected closing date of the Offering. In some cases, these forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation: subdued commodity market activity or pricing levels; the effects of geopolitical events, terrorism and wars, such as the effect of Russia’s military action in Ukraine, on market volatility, global macroeconomic conditions and commodity prices; changes in interest rate levels; the risk of our clients and their related financial institutions defaulting on their obligations to us; regulatory, reputational and financial risks as a result of our international operations; software or systems failure, loss or disruption of data or data security failures; an inability to adequately hedge our positions and limitations on our ability to modify contracts and the contractual protections that may be available to us in OTC derivatives transactions; market volatility, reputational risk and regulatory uncertainty related to commodity markets, equities, fixed income, foreign exchange and cryptocurrency; the impact of climate change and the transition to a lower carbon economy on supply chains and the size of the market for certain of our energy products; the impact of changes in judgments, estimates and assumptions made by management in the application of our accounting policies on our reported financial condition and results of operations; lack of sufficient financial liquidity; if we fail to comply with applicable law and regulation, we may be subject to enforcement or other action, forced to cease providing certain services or obliged to change the scope or nature of our operations; significant costs, including adverse impacts on our business, financial condition and results of operations, and expenses associated with compliance with relevant regulations; and if we fail to remediate the material weaknesses we identified in our internal control over financial reporting or prevent material weaknesses in the future, the accuracy and timing of our financial statements may be impacted, which could result in material misstatements in our financial statements or failure to meet our reporting obligations and subject us to potential delisting, regulatory investments or civil or criminal sanctions, and other risks discussed under the caption “Risk Factors” in our Registration Statement filed on Form F-1 with the SEC on October 21, 2024 and our other reports filed with the SEC.

The forward-looking statements made in this release relate only to events or information as of the date on which the statements are made in this release. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

The MIL Network –

January 25, 2025

MIL-OSI: Foresight Financial Group to Become Region’s Largest Locally Headquartered Bank

Source: GlobeNewswire (MIL-OSI)

WINNEBAGO, Ill., Oct. 24, 2024 (GLOBE NEWSWIRE) — Foresight Financial Group today announced that, in partnership with each of its six bank brands including German American State Bank, State Bank of Herscher, Lena State Bank, State Bank of Davis, Northwest Bank, and State Bank, that it will be consolidating its six bank charters into one, making it the region’s largest locally headquartered and operated bank in Winnebago County, while maintaining its market share dominance in Stephenson County. Each of the six charters will retain their unique market brand names post consolidation.

This is the next step in the organization’s ongoing work to enhance operational efficiencies across the Foresight family, streamlining processes, eliminating duplication, and standardizing best practices to deliver enhanced value to the customers and communities it serves. In addition, customers will benefit from a significant increase in lending limits for borrowers, increased depth in staffing resources, and an even greater access to cutting edge treasury management, commercial, and agricultural lending services and professionals. This move makes Foresight Financial Group the region’s largest locally headquartered and locally managed bank with assets in excess of $1.6 billion as of September 30, 2024. All six brands and their customers will benefit from the collective capabilities of Foresight while maintaining their local approach to service.

“By streamlining our processes through charter consolidation, we’ll be able to bring offerings to our markets more quickly and reinvest in the products, technologies, and services that best meet the needs of our customers,” said Peter Morrison, CEO of Foresight Financial Group. “As a locally headquartered and managed bank, decisions will still be made by those bankers that have been in our communities for years and who possess the firsthand knowledge of local market conditions that is so vital to customer success.”

“We’ve been focused on creating operational efficiencies across the Foresight family and have already realized significant benefits for our banks and customers,” said Jeff Hultman, President of Foresight Financial Group. “The charter consolidation is the next step in that process, which will reduce workloads on the individual banks, allowing them to focus on the personal connections in their local communities that are central to their success.”

Each of the Foresight Bank brands will maintain their local identities and staff. Our goal is to retain our current talent while making minimal adjustments to positions to fully align all six charters into one; customers will continue to work with the people they know and trust. Each bank will continue to meet the needs of its community and customers with the added benefit of the standards, procedures, policies, and best practices from across the Foresight family.

The charter consolidation will begin in late 2024 and the operational consolidation of the charters will be complete in 2025.

About Foresight Financial

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

Forward-Looking Statements

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

FOR INFORMATION CONTACT:		Peter Q. Morrison CEO 815-847-7500		Todd J. James CFO 815-847-7500

The MIL Network –

January 25, 2025

MIL-OSI: The Victory Bancorp, Inc., Announces 2024 Third Quarter Earnings

Source: GlobeNewswire (MIL-OSI)

LIMERICK, Pa., Oct. 24, 2024 (GLOBE NEWSWIRE) — The Victory Bancorp, Inc. (OTCQX: VTYB), the holding company for The Victory Bank, announced unaudited results for the quarter ended September 30, 2024.

Joseph W. Major, Bank Leader and Chief Executive Officer, stated, “Our third quarter results reflect consistent growth and improved earnings. Our commitment to providing top-notch banking services is central to our strategy which we implement by hiring skilled and dedicated bankers who offer trusted advice and exceptional personal service to our clients. Our focus is on maintaining disciplined pricing and credit underwriting practices as we expand the Bank. This diligence not only strengthens our institution but also benefits the communities we serve.”

As of September 30, 2024, deposits rose to $398.2 million, up from $358.2 million a year earlier—a 10.8% increase. Net loans increased by 12.7%, reaching $395.2 million, compared to $351.9 million on the same date last year. Total assets grew by $49.1 million to $467.9 million, marking an 11.9% increase over the past year. Overall credit quality remained strong, with very low levels of non-performing and non-accrual loans. Because of these excellent credit metrics, third quarter provision for loan losses decreased to $71 thousand, down from $75 thousand in the 3^rd quarter of 2023. Notably, non-performing assets fell significantly from $2.2 million at the end of 2023 to $209 thousand as of September 30, 2024.

Third Quarter 2024 Highlights compared to Third Quarter 2023

Net Loans increased 12.7% to $395.2 million from $351.9 million at September 30, 2023
$2.9 million increase in stockholders’ equity
$0.065 per share cash dividend paid to shareholders
Net interest margin at the Bank was 3.58% for the quarter
Net income of $586 thousand, totaling approximately $0.29 per common share fully diluted
Book value per share as of September 30, 2024 was $14.89
Total assets increased by $49.1 million from September 30, 2023 to $467.9 million as of September 30, 2024
Credit quality is outstanding

Capital Insights and Credit Quality:

Nonaccrual loans decreased in the third quarter of 2024, from $2.2 million at year end 2023 to $206 thousand in the current quarter.
Non-performing assets to total assets rose slightly from 0.01% in the linked quarter to 0.04% in the current quarter.
Delinquencies greater than 30 days were 0.05% of total loans as of September 30, 2024, down from 0.68% as of December 31, 2023.
The bank’s ACL ratio was 0.91% as of September 30, 2024, down slightly from 0.94% at year-end 2023. The September 30, 2024 ACL covered non-performing loans 17.5 times, an increase from 1.6 times at year-end 2023.
The bank remains well capitalized.

Victory Bancorp, Inc. is traded on the OTCQX market under the symbol VTYB (https://www.otcmarkets.com) and is the parent company of The Victory Bank, a Pennsylvania state-chartered commercial bank headquartered in Limerick, Pennsylvania, which is located just outside the Philadelphia market in Montgomery County. The Victory Bank was established in 2008 as a specialized business lender that provides high-quality banking services to small and mid-sized businesses and professionals through its three offices located in Montgomery and Berks Counties, Pennsylvania. Additional information about Victory Bancorp is available on its website, VictoryBank.com.

This presentation may contain forward-looking statements (within the meaning of Private Securities Litigation Reform Act of 1995). Actual results may differ materially from the results discussed in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation or regulation; and other economic; competitive, governmental, regulatory, and technological factors affecting the Company’s operations, pricing, products, and services.

Contact:

Joseph W. Major,
Chairman and Chief Executive Officer

Robert H. Schultz,
Chief Financial Officer, Chief Operating Officer

The Victory Bancorp, Inc.
548 N. Lewis Rd.
Limerick, PA 19468

CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)
(dollars in thousands, except per share data)
		September 30,		December 31,		September 30,
Selected Financial Data		2024		2023		2023
Investment securities	$	46,110	$	47,931	$	47,335
Loans, net of allowance for loan losses		395,213		364,383		351,926
Total assets		467,939		442,163		418,843
Deposits		398,169		364,032		358,207
Borrowings		24,692		36,200		19,750
Subordinated debt		12,851		12,830		12,824
Stockholders’ equity	$	29,437	$	27,948	$	26,548
Book value per common share	$	14.89	$	14.17	$	13.47
Allowance/loans		0.91%		0.94%		0.94%
Nonperforming assets/total assets		0.04%		0.49%		0.01%

		3 Months Ended
		September 30,		December 31,		September 30,
Selected Operations Data		2024		2023		2023
Interest income	$	7,526	$	6,680	$	6,298
Interest expense		4,064		3,337		2,955
Net interest income		3,462		3,343		3,343
Provision for loan losses		71		170		75
Other income		239		210		143
Other expense		2,895		2,748		2,826
Income before income taxes		735		635		585
Income taxes		(149)		(160)		(39)
Net income	$	586	$	475	$	546
Earnings per common share (basic)	$	0.30	$	0.24	$	0.28
Earnings per common share (diluted)	$	0.29	$	0.23	$	0.26
Return on average assets (annualized)		0.50%		0.45%		0.53%
Return on average equity (annualized)		8.14%		6.97%		8.05%
Net charge-offs(recoveries)/average loans		0.01%		0.00%		0.00%

The MIL Network –

January 25, 2025

MIL-OSI: Real Estate Split Corp. Announces Successful Overnight Offering

Source: GlobeNewswire (MIL-OSI)

Not for distribution to U.S. Newswire Services or for dissemination in the United States.

TORONTO, Oct. 24, 2024 (GLOBE NEWSWIRE) — Real Estate Split Corp. (TSX: RS and RS.PR.A) (the “Company”), is pleased to announce a successful overnight treasury offering of class A and preferred shares (the “Class A Shares” and “Preferred Shares”, respectively). Gross proceeds of the offering are expected to be approximately $46.4 million.

The offering is expected to close on or about Wednesday, October 30, 2024 and is subject to certain closing conditions including approval by the Toronto Stock Exchange.

The Class A Shares were offered at a price of $12.90 per Class A Share to yield 12.1% and the Preferred Shares were offered at a price of $10.10 per Preferred Share to yield 4.4% to maturity. The Class A Share and Preferred Share offering prices were determined so as to be non-dilutive to the most recently calculated net asset value per unit of the Company (calculated as at October 22, 2024), as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the offering.

The Company has been designed to provide investors with a diversified, actively managed, high conviction portfolio comprised of securities of leading North American real estate companies.

The Company’s investment objectives for the:

Class A Shares are to provide holders with:

(i) non-cumulative monthly cash distributions; and
(ii) the opportunity for capital appreciation through exposure to the portfolio

Preferred Shares are to:

(i) provide holders with fixed cumulative preferential quarterly cash distributions; and
(ii) return the original issue price of $10.00 to holders upon maturity.

Middlefield Capital Corporation provides investment management advice to the Company.

The syndicate of agents for the offering was co-led by CIBC Capital Markets, RBC Capital Markets, and Scotiabank, and included Canaccord Genuity Corp., Hampton Securities Limited, National Bank Financial Inc., BMO Nesbitt Burns Inc., iA Private Wealth Inc., Raymond James Ltd., Manulife Wealth Inc., Ventum Financial Corp., Wellington-Altus Private Wealth Inc., Desjardins Securities Inc., and Research Capital Corporation.

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.

A short form base shelf prospectus containing important detailed information about the securities being offered has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. Copies of the short form base shelf prospectus may be obtained from a member of the syndicate. The Company intends to file a supplement to the short form base shelf prospectus, and investors should read the short form base shelf prospectus and the prospectus supplement before making an investment decision. There will not be any sale or any acceptance of an offer to buy the securities being offered until the prospectus supplement has been filed with the securities commissions or similar authorities in each of the provinces and territories of Canada.

The MIL Network –

January 25, 2025

MIL-OSI China: Xi advocates high-quality development of greater BRICS cooperation at milestone summit

Source: People’s Republic of China – State Council News

Xi advocates high-quality development of greater BRICS cooperation at milestone summit

KAZAN, Russia, Oct. 24 — Chinese President Xi Jinping on Wednesday called on BRICS countries to work for the high-quality development of greater BRICS cooperation as leaders gathered here for the 16th BRICS Summit.

In his address to the summit, Xi emphasized the need for BRICS countries to seize the historical opportunity and work together to strengthen solidarity and cooperation among Global South nations.

STRENGTHENING SOLIDARITY

During a small-group meeting, President Xi welcomed new members to the BRICS family and extended invitations to many other countries to become partner countries.

Xi pointed out that the enlargement of BRICS is a major milestone in its development history, and a landmark event in the evolution of the international situation. It is for their shared pursuit and for the overarching trend of peace and development that BRICS countries have come together, he said.

Stressing that the world is undergoing accelerated changes unseen in a century, marked by new trends of multipolarity and the risks of a “new Cold War,” Xi said BRICS countries should seize the historical opportunity, take proactive steps, remain committed to the original aspiration and mission of openness, inclusiveness and win-win cooperation, conform to the general trend of the rise of the Global South, seek common ground while reserving differences, work in concert to further consolidate common values, safeguard common interests, and strengthen BRICS countries through unity.

“We must work together to build BRICS into a primary channel for strengthening solidarity and cooperation among Global South nations and a vanguard for advancing global governance reform,” Xi said.

Xi stressed that the more turbulent the world is, the more BRICS countries should uphold the banner of peace, development and win-win cooperation, refining the essence of BRICS and demonstrating its strength. BRICS countries should raise the voice of peace, advocating a new path to security that features dialogue over confrontation and partnership over alliance.

Xi also urged BRICS countries to jointly pursue a path of development, advocate a universally beneficial and inclusive economic globalization, and stay committed to the principle of common development. He said BRICS countries should consolidate the foundation of cooperation, deepen cooperation in traditional areas such as agriculture, energy, minerals, economy and trade, expand cooperation in emerging areas such as green, low-carbon and artificial intelligence, and safeguard trade, investment and financial security.

ADVANCING DEVELOPMENT

As the high-profile gathering unfolded amid global uncertainties, BRICS embarked on a new chapter, cementing its growing influence on the world stage.

President Xi, addressing the leaders in an expanded format, put forward five suggestions: building a BRICS committed to peace, innovation, green development, justice, and closer people-to-people exchanges.

“We must build on this milestone summit to set off anew and forge ahead with one heart and one mind,” Xi said. “China is willing to work with all BRICS countries to open a new horizon in the high-quality development of greater BRICS cooperation.”

This year’s summit also marked another major milestone with the decision to invite a number of nations as partner countries, further advancing the group’s development.

During Wednesday’s meetings, leaders exchanged views on BRICS cooperation and crucial international issues of shared concern under the theme “Strengthening Multilateralism for Just Global Development and Security.” Central to their discussions were global and regional security, sustainable development, climate change, and reforms in global economic governance.

A notable focus of the summit was the call for increased funding to support the sustainable development of developing countries. Egyptian President Abdelfattah al-Sisi said that BRICS aims to “strengthen a multipolar international system,” particularly through facilitating “innovative and effective” financing for developing nations.

Russian President Vladimir Putin said that “the trend for the BRICS’ leading role in the global economy will only strengthen.” He cautioned against the ongoing risks posed by geopolitical tensions, unilateral sanctions, and protectionism. “A key task is to promote the use of national currencies to finance trade and investment,” Putin said.

Brazilian President Luiz Inacio Lula da Silva, who participated in the summit via video link due to a head injury, said, “It’s not about replacing our currencies, but we need to work so that the multipolar order we aim for is reflected in the international financial system.”

BRICS has already made strides with the New Development Bank (NDB), headquartered in Shanghai. On Wednesday, the BRICS countries agreed to support the NDB in implementing its general strategy for 2022-2026 and in expanding local currency financing.

In a declaration issued at the 16th BRICS Summit, they also agreed to jointly build the NDB into a new type of multilateral development bank for the 21st century, support its further expansion of membership, and expedite the review of membership applications from BRICS countries in accordance with its general strategy and related policies.

Leaders also advocated for a fairer global order for the Global South. South African President Cyril Ramaphosa said that BRICS is an inclusive bloc capable of changing the trajectory of the Global South. “To do this we must realize the full potential of our economic partnership, to ensure sustainable development for all and not just for some,” he said.

“The period of unilateralism is coming to an end,” said Iranian President Masoud Pezeshkian, calling for a more equitable global system.

GROWING APPEAL

The term BRIC was initially coined in 2001 by Jim O’Neill, former chief economist at Goldman Sachs, as an investment concept referring to emerging market economies of Brazil, Russia, India and China. With South Africa’s inclusion in 2010, BRICS officially took shape.

In a recent interview with Xinhua, O’Neill acknowledged the need for policymakers to collaborate in creating an optimal system that benefits all. “I think as we pass through time, we will find a new equilibrium where countries will be more at ease with what other countries are doing,” he said.

In recent years, BRICS has garnered attention from countries around the world. Over 30 countries, including Thailand, Malaysia, Türkiye, and Azerbaijan, have either formally applied for or expressed interest in joining the group. Many other developing countries are also seeking stronger cooperation with BRICS.

The growing interest from countries seeking to join BRICS cooperation each year demonstrates that in today’s troubled world, BRICS is not only important but essential, said Bunn Nagara, director and senior fellow at the Belt and Road Initiative Caucus for Asia-Pacific.

“China, led by President Xi, has contributed significantly to BRICS’ success with a progressive and enlightened approach,” said Nagara.

BRICS is seen as a vital platform for developing countries to pursue growth and address global imbalances.

The enlargement of BRICS is “important in tipping the financial and technological balance in favor of the majority Global South rather than the minority Global North,” Webby Kalikiti, a lecturer and researcher at the Department of History, University of Zambia noted. He believed that the future of the world depends on the cooperative energies of all countries and the transition to a multipolar world.

Ahmed Al-Ali, a political and strategic researcher at the Gulf Research Center in Dubai, believed that BRICS aims to foster a more equitable, effective, and rational international system.

It will play a crucial role in promoting development and growth opportunities for Global South countries, while also ensuring the sustainability of economic and social progress, said Al-Ali.

Similarly, Sithembiso Bhengu, a senior research fellow with the Sociology Department, University of Johannesburg said that “the BRICS mechanism presents real possibilities for making the globe a fairer community of nations, with possibilities for mutual support and cooperation towards our respective goals in modernization and development.”

MIL OSI China News –

January 25, 2025

MIL-OSI United Nations: Secretary-General’s video message to the Virtual Launch of the UNEP Emissions Gap Report

Source: United Nations secretary general

Download the video: https://s3.amazonaws.com/downloads2.unmultimedia.org/public/video/evergr…

The message of today’s Emissions Gap report is clear:

We are teetering on a planetary tight rope.

Either leaders bridge the emissions gap, or we plunge headlong into climate disaster – with the poorest and most vulnerable suffering the most.

This report shows annual greenhouse gas emissions at an all-time high – rising 1.3 per cent last year. They must fall 9 per cent each year to 2030 to limit global temperature rise to 1.5 degrees Celsius and avoid the very worst of climate change.

Current policies are taking us towards a catastrophic 3.1 degrees Celsius temperature rise by the end of the century.

As this report rightly puts it, people and planet cannot afford more hot air.

The emissions gap is not an abstract notion. There is a direct link between increasing emissions and increasingly frequent and intense climate disasters.

Around the world, people are paying a terrible price.

Record emissions mean record sea temperatures supercharging monster hurricanes;

Record heat is turning forests into tinder boxes and cities into saunas;

Record rains are resulting in biblical floods.

Today’s report shows affordable, existing technologies can achieve the emissions reductions we need to 2030 and 2035 to meet the 1.5 degree limit.

But only with a surge in ambition and support.

The upcoming United Nations climate conference – COP29 – must drive progress in two ways.

First, COP29 starts the clock for countries to deliver new national climate action plans – or NDCs – by next year.

Governments have agreed to align these plans with 1.5 degrees.

That means they must drive down all greenhouse gas emissions and cover the whole economy – pushing progress in every sector.

And they must wean us off our fossil fuel addiction: showing how governments will phase them out – fast and fairly; and contributing to global goals to accelerate renewables rollout and halt and reverse deforestation.

The largest economies – the G20 members, responsible for around 80 per cent of all emissions – must lead. I urge first-movers to come forward.

Second, finance will be front and centre at COP29.

Developing countries urgently need serious support to accelerate the transition to clean energy and deal with the violent weather they are already facing.

COP29 must agree a new finance goal that unlocks the trillions of dollars they need. And provides confidence it will be delivered.

We know the price of climate inaction is far greater.

This would require a significant increase in concessional public finance, that can be complemented by innovative sources, such as fossil fuel extraction levies.

The COP29 outcome must also send clear signals, to drive action on debt relief and reform of the Multilateral Development Banks to make them bigger and bolder.

Today’s Emissions Gap report is clear: we’re playing with fire; but there can be no more playing for time.

We’re out of time.

Closing the emissions gap means closing the ambition gap, the implementation gap, and the finance gap.

Starting at COP29.

Thank you.

MIL OSI United Nations News –

January 25, 2025

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