Banking – Page 393 – NewzIntel.com

MIL-OSI Economics: Global Sovereign Debt Roundtable — 3rd Cochairs Progress Report

Source: International Monetary Fund

October 23, 2024

Washington, DC: The Global Sovereign Debt Roundtable (GSDR) met today and reviewed progress on the work to improve debt restructuring processes and timelines, and to help address debt vulnerabilities. Participants also discussed priority areas for the work going forward. At the end of the meeting, the International Monetary Fund Managing Director Kristalina Georgieva, World Bank Group President Ajay Banga, and Finance Minister of Brazil Fernando Haddad, co-chairs of the GSDR, issued the attached GSDR 3^rd Cochairs Report as well as the compilation of technical issues discussed by the GSDR so far.

The GSDR brings together debtor countries and official and private creditors with the objective to build common understanding among key stakeholders on debt sustainability and debt restructuring challenges, and ways to address them.

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER: Randa Elnagar

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

@IMFSpokesperson

MIL OSI Economics –

January 25, 2025

MIL-OSI Africa: Ninth Africa Energy Market Place (AEMP) held in Dar es Salaam ahead of key Africa Heads of State Energy Summit scheduled for 28 January in Tanzania

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

DAR ES SALAAM, Tanzania, October 23, 2024/APO Group/ —

Further to an April 2024 pledge by the Presidents of the African Development Bank (www.AfDB.org) and the World Bank to bring electricity access to 300 million people in Africa by 2030, the Tanzanian port city of Dar es Salaam has been selected to host an Africa Heads of State Energy Summit on 28 January 2025.

The summit will convene heads of state and government, ministers, international and regional organisations, and other partners, including the private sector, to agree on a common set of reforms required to support Africa’s overall objective of “achieving universal access to affordable, reliable, sustainable and modern energy by 2030.” This objective aligns with United Nations Sustainable Development Goal 7 and the African Union’s Agenda 2063.

This announcement was made by Dr Kevin Kariuki, Africa Development Bank Vice President for Power, Energy, Climate and Green Growth during the opening of the 9^th Africa Energy Market Place (AEMP).

AEMP is a policy dialogue and investment delivery platform created by the African Development Bank as part of the New Deal on Energy for Africa, the transformative partnership to light up and power Africa by 2025. By bringing together governments, the private sector, and development partners, it works to scale up investments in the African energy sector

In his remarks, Dr Kariuki praised President Samia Suluhu Hassan’s leadership and personal commitment to Tanzania’s, and Africa’s, universal access to modern energy. He observed that increased and accelerated access to modern energy will hasten Tanzania’s economic development. “Accelerated universal access to energy will catalyse Tanzania’s economic development and guarantee an expedited well-lit, powered, prosperous and sustainable energy future for all Tanzanians,” he said.

Jointly organised by the African Development Bank Group and Tanzania’s Ministry of Energy, the AEMP took place in Dar es Salaam, Tanzania on the 16^th and 17^th of October 2024, under the theme Delivering the Clean Cooking Initiatives and National Energy Access Goals. It was officiated by Dr Doto Mashaka Biteko, Tanzania’s deputy prime minister and minister of energy.

Deputy Prime Minister Biteko expressed optimism regarding the AEMP’s potential for policy dialogue, noting that, “Hosting the 9^th Africa Energy Market Place is timely as we prepare for the Africa Heads of State summit which aims to bring together African presidents, the private sector and development partners to facilitate investments to provide electricity access to 300 million people in Africa.”

He said he hoped the discussions at AEMP would shape the executive sessions of the upcoming January summit.

MIL OSI Africa –

January 25, 2025

MIL-Evening Report: Unemployment’s up, house prices are stagnating. But is the Victorian economy doing as badly as it seems?

Source: The Conversation (Au and NZ) – By David Hayward, Emeritus Professor of Public Policy, RMIT University

The early 1990s in Victoria were tough. The economy was contracting severely, the population was shrinking, employment was collapsing and the unemployment rate skyrocketed to the highest in the land.

A long-term Labor government got the blame for allowing state debt to spiral out of control. Victoria, reckoned a popular joke at the time, was “Australia’s Mexico without the sunshine”.

Is it happening all over again?

Some reporting in national media would suggest it is.

The Australian Financial Review has recently run a series on the state, including a piece last week quoting business leaders saying the Victorian economy was in trouble.

Reference was made to the latest unemployment figures as supporting evidence. Victoria’s unemployment rate has risen over the last year, and at 4.4% is now the highest in the country. Rising numbers of company failures and stagnant house prices were also cited.

Earlier in the month, data showing a falling rate of Victorian business start-ups was highlighted, while another Financial Review article examined the decline in the number of conferences. All this was referred to as evidence of a state struggling under the weight of

$8.6 billion in levies [imposed] in [Labor’s] 2023 budget to curb a mountain of state debt that is forecast to reach $188 billion by 2028.

The Australian also ran a feature on Victoria echoing the same themes.

Readers were asked, “What the hell has gone wrong with Victoria?”. Public debt and taxation figured as prominent causes of an economic catastrophe in the making. The Australian deemed the state to be

at best, trapped in stagnation, forcing it to cover falling private investment and expenditure with ever greater public largesse. And at worst […] as the spending and debt build-up sets off the alarms, a vicious spiral is triggered […] until the whole Ponzi scheme collapses.

But are things that bad? What does the economic data actually show?

Some positive signs

It is true that unemployment in Victoria is rising, and is also high compared to the rest of the country. But it has been stable for the last four months, reflecting the impact of interest rate increases over the previous couple of years.

Also, looking back over the last 40 years, the increase has been from a very low base, and remains at an historically low level – and a long way off the highs of the 1990s.

The number of people in the labour force is continuing to grow at a healthy clip. The participation rate is now the highest on record.

Last month, the labour force increased in seasonally adjusted terms by 20,000, and almost all of these additional people ended up in employment.

The growth in employment since the end of the pandemic is notable.

Since January 2023, employment has increased by 268,000, or 8% in seasonally adjusted terms. That’s 37% of the jobs added in the whole of Australia during that time.

Yes, the share of job growth is falling, but it is still higher than the state’s population share, and it is from an unbelievably high base (55% of all jobs created nationally in July were in Victoria).

The Australian Financial Review acknowledged that the latest jobs data were indeed “unexpectedly strong”.

What about business insolvencies?

Victorian insolvencies are on the rise (up 61% in September compared to the same month last year). But so too are they across Australia, with the national number rising at a higher clip (up 70%).

What about the number of conferences in Victoria? We simply cannot be sure whether they are up or down, because there is no consistent data base to settle the matter.

And while Victoria may have fallen behind other states in the number of new startups per 1,000 businesses, the actual number of businesses has increased by more than 31,000, or 3%, since the beginning of the year.

How are house prices and rents holding up?

Yes, house prices are tumbling. In real terms, they are around 20% below their pandemic peak, at least partly caused by a bundle of new property taxes introduced in the 2023/24 state budget to help pay for pandemic-related debt.

But with housing affordability at an all-time low courtesy of high interest rates, that is no bad thing, especially for those keen to buy their first home.

That fall in house prices stands in contrast to a boom in rents over the same time period.

Over the last 12 months, median rents in Victoria have increased by 13.3%, and by 4.3% over the last quarter. In the March quarter, the rental stock fell for the first time on record, perhaps supporting those who see an economy in trouble.

But that fall amounted to barely 10,000 dwellings, or only 2.7% of the stock. Those properties had to be sold to someone, and it is likely many were sold to first time buyers who, in changing tenure, had no net effect on the rental market. A redistribution of wealth like that may be no bad thing.

Debt is high – but so is infrastructure spending

There is no doubt the Victorian economy has been slowing, as has the rest of the country. That is exactly the outcome sought by the Reserve Bank when it pushed up interest rates last year.

But there is little evidence to show Victoria is following the disastrous path of the early 1990s.

Back then, state debt grew alarmingly because of a savage recession. This time round, state debt has grown strongly, but largely to fund a construction pipeline on a scale the state has not seen before.

Infrastructure spending is now running close to $25 billion a year, almost five times what it was a decade ago. There’s a lot of jobs in those numbers, and shortly a lot of that infrastructure will come on line, boosting the state’s economic potential.

There is one other factor driving Victoria’s surprisingly resilient economy. Net international migration increased by 152,000 in the year to March 2024 – almost 30% of the Australian total – driven partly by the return of international students.

Very fast, migration-driven population growth is not being matched by increased output, and the state’s household income per person is continuing its long-term decline, leading some to argue it has become a “poor state”.

Treasurer Tim Pallas will hope that the increase stock of debt-funded infrastructure provides the productivity boost sorely needed to turn that around.

While on several indicators Victoria’s economy is slowing, this largely reflects a national trend. Drilling down into the data shows there are signs of growth, which suggest alarm at this stage is not justified.

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

– ref. Unemployment’s up, house prices are stagnating. But is the Victorian economy doing as badly as it seems? – https://theconversation.com/unemployments-up-house-prices-are-stagnating-but-is-the-victorian-economy-doing-as-badly-as-it-seems-241762

MIL OSI Analysis – EveningReport.nz –

January 25, 2025

MIL-OSI Asia-Pac: Union Minister Shri Rajiv Ranjan Singh set to launch Pandemic Fund Project and 21st Livestock Census Operation on 25th October 2024

Source: Government of India

Union Minister Shri Rajiv Ranjan Singh set to launch Pandemic Fund Project and 21st Livestock Census Operation on 25th October 2024

One Health approach: $25 Million Pandemic Fund focuses on animal health security

Historic 21st Livestock Census to Capture Data on Pastoralist Holdings and Gender Roles in Livestock Rearing

Posted On: 23 OCT 2024 9:26PM by PIB Delhi

The Union Minister of Fisheries, Animal Husbandry, and Dairying, Shri Rajiv Ranjan Singh alias Lalan Singh will launch two pivotal initiatives aimed at strengthening the animal health infrastructure in India: the Pandemic Fund Project on “Animal Health Security Strengthening in India for Pandemic Preparedness and Response” and the 21st Livestock Census operation. The launch will take place on 25th October 2024 at 10:00 AM at Hotel Leela Ambience Convention, Shahdara, New Delhi.

The event will also be graced by the Ministers of State for Fisheries, Animal Husbandry & Dairying, Shri Prof. S.P. Singh Baghel and Shri George Kurian serving as Guests of Honour. The event will also see the participation of distinguished guests including Shri Amitabh Kant, G20 Sherpa; Prof. Dr. V K Paul, Member Health, NITI Aayog; Ms. Alka Upadhyaya, Secretary, Department of Animal Husbandry and Dairying; and Mr. Punya Salila Srivastava, Secretary, Health & Family Welfare.

Pandemic Fund Project

The Pandemic Fund, established under Indonesia’s G20 Presidency, aims to finance critical investments that strengthen pandemic prevention, preparedness, and response (PPR) capacities, with a focus on low- and middle-income countries. India’s $25 million proposal, approved under the Fund’s first call, focuses on animal health security—a crucial component of pandemic preparedness.

This event will highlight the importance of integrating a One Health approach into pandemic response efforts. Five of the six recent public health emergencies declared by the World Health Organization (WHO) have had their origins in animals, further emphasizing that strengthening animal health security is key to reducing zoonotic risks and safeguarding both human and animal populations from future pandemics.

The “Animal Health Security Strengthening in India for Pandemic Preparedness and Response” project is designed to reduce the risk of zoonotic diseases that can potentially spread from animals (both domestic and wildlife) to humans. With pandemic threats looming, this project will play a pivotal role in fortifying India’s animal health infrastructure, ensuring the nation is better prepared for future health crises. The project will be implemented in collaboration with the Asian Development Bank (ADB) as the lead implementing entity, with support from The World Bank and the Food and Agriculture Organization (FAO). The launch of the Animal Health Security Strengthening in India project under the Pandemic Fund marks a significant step in India’s commitment to One Health and pandemic preparedness.

21^st Livestock Census Operation

The Livestock Census (LC) is a crucial exercise that has been conducted every five years since 1919, serving as the backbone for policy formulation and the implementation of various programmes in the Animal Husbandry sector. The Census involves a comprehensive door-to-door survey that captures detailed data on domesticated animals and birds across the nation. Till date 20 Livestock censuses had been conducted and the last census was held in the year 2019.

The rollout of 21^st Livestock Census, scheduled to be conducted during September-December, 2024, will be in collaboration with State/UT Animal Husbandry and Dairying. At all India level around 1 lakh field officials who are mostly veterinarians or para-veterinarians will be involved in the enumeration process. This LC will leverage mobile technology for data collection and transmission. This advancement is expected to enhance the accuracy and efficiency of data collection across all villages and urban wards in the country.

Data on 15 species of Livestock viz. Cattle, Buffalo, Mithun, Yak, Sheep, Goat, Pig, Camel, Horse, Ponies, Mule, Donkey, Dog, Rabbit and Elephant are covered in this census. Other than Livestock, headcount of Poultry Birds viz. Fowl, Duck, Turkey, Geese, Quail, Gini Fowl, Ostrich and Emu will also be taken from each Household/ Household Enterprises/ Non-households/Institution. This LC will capture data on 219 Indigenous breeds of 16 species recognised by ICAR-National Bureau of Animal Genetic Resources (NBAGR). Notably, this will be the first census to independently capture data on livestock holdings by pastoralists and to include information on the gender of individuals primarily involved in livestock rearing.

In addition, the event will also feature the release of important documents aimed at strengthening animal health management in India:

Standard Veterinary Treatment Guidelines: A comprehensive document that outlines best practices for veterinary care, aimed at improving the overall health and productivity of livestock.
Crisis Management Plan for Animal Diseases: A critical resource that provides a framework for managing and responding to outbreaks of animal diseases, ensuring rapid containment and mitigation.

These documents will serve as vital tools for veterinarians, policymakers, and field officials, helping to ensure timely and effective responses to animal health crises and improving disease management protocols.

The Department of Animal Husbandry & Dairying invites all stakeholders to participate in the launch of the Pandemic Fund Project and the 21st Livestock Census Operation, both of which play an essential role in enhancing India’s preparedness against health crises and in fortifying animal health security.

***

AA

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MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI Europe: Briefing – Monetary Dialogue in September 2024: Summary of parliamentary scrutiny activities – 23-10-2024

Source: European Parliament

This briefing provides a summary of all scrutiny activities of the European Parliament related to euro area monetary policy in advance of the September2024 Monetary Dialogue with the European Central Bank (ECB). It covers the topics chosen by the competent Committee and related expertise papers provided in advance of the Dialogue, the topics addressed during the Dialogue, and latest written questions made by Members to the ECB President. The document is published regularly ahead and after each Monetary Dialogue with the ECB.

MIL OSI Europe News –

January 25, 2025

MIL-OSI Asia-Pac: Prime Minister participates in the 16th BRICS Summit

Source: Government of India

Posted On: 23 OCT 2024 5:42PM by PIB Delhi

Prime Minister Shri Narendra Modi participated in the 16th BRICS Summit held under Russia’s Chairship, in Kazan today.

The BRICS leaders had productive discussions including on strengthening multilateralism, countering terrorism, fostering economic growth, pursing sustainable development and bringing spotlight on the concerns of the Global South. The leaders welcomed the 13 new BRICS partner countries.

Prime Minister addressed two sessions of the BRICS Summit. In his address, PM noted that the Summit is happening at a time when the world is undergoing several uncertainties and challenges including conflicts, adverse climatic impacts, and cyber threats, placing greater expectations upon BRICS. PM suggested that the group take a people-centric approach to tackle these challenges. PM also underlined the need for early adoption of a Comprehensive Convention on International Terrorism at the United Nations to combat the menace of terrorism.

PM called upon BRICS to proactively push for global governance reforms. Recalling the Voice of Global South Summits hosted by India during its G-20 Presidency, he stressed that the group must give primacy to the concerns of the Global South. PM noted that the regional presence of the New Development Bank including in GIFT city, India, has created new values and impacts. Highlighting BRICS’ activities to foster economic growth, he emphasized that its efforts on trade facilitation in agriculture, resilient supply chains, e-commerce and Special Economic Zones have generated new opportunities. He underlined the need to prioritise small and medium scale industries. He expressed that the BRICS Startup Forum initiated by India which is to be launched this year would add significant value to the BRICS economic agenda.

Prime Minister elaborated on the recent green initiatives undertaken by India including the International Solar Alliance, Coalition for Disaster Resilient Infrastructure, Mission LIFE and Green Credit initiative announced during COP28. He invited BRICS countries to join these initiatives.

Prime Minister congratulated President Putin for successfully hosting the 16th BRICS Summit and conveyed wishes to Brazil as it takes over the presidency of the group. At the conclusion of the Summit, the leaders adopted the ‘Kazan Declaration’.

Address of PM at the Closed Plenary may be seen here.

Address of PM at the Open Plenary may be seen here.

***

MJPS/SR

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MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI Asia-Pac: English Translation of Prime Minister’s Remarks at the Open Plenary of the 16th BRICS Summit

Source: Government of India

Posted On: 23 OCT 2024 5:22PM by PIB Delhi

Your Highness,
Excellencies,

Ladies and Gentlemen,

Congratulations to President Putin for the excellent organisation of the 16th BRICS Summit.

And, once again, a warm welcome to all the new friends who have joined BRICS. In its new avatar, BRICS accounts for 40 per cent of the world’s humanity and about 30 per cent of the global economy.

In the last nearly two decades, BRICS has achieved many milestones.I am confident that in the times to come, this organisation will emerge as a more effective medium to face global challenges.

I would also like to convey warm greetings to Her Excellency Dilma Rousseff, President of the New Development Bank.

Friends,

In the last ten years, this bank has emerged as an important option for the development needs of the countries of the Global South.The opening of GIFT or Gujarat International Finance Tech City in India as well as regional centres in Africa and Russia has boosted the activities of this bank. And, development projects worth about USD 35 billion have been sanctioned. NDB should continue to work on the basis of the demand driven principle. And, while expanding the bank, ensuring long-term financial sustainability, healthy credit rating and market access should remain a priority.

Friends,

In its new expanded avatar, BRICS has emerged as an economy of more than USD 30 trillion dollars.The BRICS Business Council and the BRICS Women Business Alliance have played a special role in increasing our economic cooperation.

This year, the consensus reached within BRICS on WTO reforms, trade facilitation in Agriculture, resilient supply chains, e-commerce and Special Economic Zones will strengthen our economic cooperation.Amidst all these initiatives, we should also focus on the interests of small and medium scale industries.

I am pleased that the BRICS Startup Forum proposed during India’s presidency in 2021 will be launched this year. The Railway Research Network initiative taken by India is also playing an important role in increasing logistics and supply chain connectivity among BRICS countries. This year, the consensus reached by BRICS countries, in collaboration with UNIDO, to prepare a skilled work force for Industry 4.0 is quite significant.

The BRICS Vaccine R&D Centre launched in 2022 is helping increase health security in all the countries. We would be happy to share India’s successful experience in Digital Health with BRICS partners.

Friends,

Climate Change has been a subject of our common priority.

The consensus reached for the BRICS Open Carbon Market Partnership under Russia’s presidency is welcome. In India too, special emphasis is being laid on green growth, climate resilient infrastructure and green transition. Indeed, India has taken up several initiatives like the International Solar Alliance, Coalition for Disaster Resilient Infrastructure, Mission LiFE i.e. Lifestyle for Environment, Ek Ped Maa Ke Naam or a Tree in the name of mother.

Last year, during COP-28, we started an important initiative called Green Credit.I invite BRICS partners to join these initiatives.

Special emphasis is being laid on the construction of infrastructure in all BRICS countries.

We have established a digital platform called the Gati-Shakti portal to rapidly expand multi-modal connectivity in India. This has helped in integrated infrastructure development planning and implementation and has reduced logistics costs.

We will be happy to share our experiences with all of you.

Friends,

We welcome efforts to increase financial integration among BRICS countries.

Trade in local currencies and smooth cross-border payments will strengthen our economic cooperation. The Unified Payments Interface (UPI) developed by India is a huge success story and has been adopted in many countries.

Last year, together with His Highness Sheikh Mohamed, it was launched in the UAE as well. We can also cooperate with other BRICS countries in this area.

Friends,

India is fully committed to increasing cooperation under BRICS.

Our strong belief in our diversity and multipolarity is our strength. This strength of ours, and our shared belief in humanity, will help in giving a meaningful shape to a prosperous and a bright future for the generations to come.

I thank everyone for today’s very important and valuable discussions.

As the next President of BRICS, I extend my heartfelt best wishes to President Lula. India will give its full support for the success of your BRICS presidency.

Once again, many thanks to President Putin and all the leaders.

DISCLAIMER – This is the approximate translation of Prime Minister’s remarks. Original remarks were delivered

MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI: Hanover Bancorp, Inc. Reports Third Quarter 2024 Results and Declares $0.10 Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

Third Quarter Performance Highlights

Net Income: Net income for the quarter ended September 30, 2024 totaled $3.5 million or $0.48 per diluted share (including Series A preferred shares). Adjusted (non-GAAP) net income (excluding severance and retirement expenses) was $3.7 million or $0.50 per diluted share for the quarter ended September 30, 2024.
Record Non-interest Income: The Company reported record non-interest income of $4.0 million for the quarter ended September 30, 2024, an increase of $0.3 million or 9.17% from the quarter ended June 30, 2024 and $0.2 million or 6.66% from the quarter ended September 30, 2023.
Net Interest Income: Net interest income was $13.1 million for the quarter ended September 30, 2024, an increase of $1.3 million, or 11.04% from the September 30, 2023 quarter.
Net Interest Margin: The Company’s net interest margin during the quarter ended September 30, 2024 increased to 2.37% from 2.29% in the quarter ended September 30, 2023.
Strong Liquidity Position: At September 30, 2024, undrawn liquidity sources, which include cash and unencumbered securities and secured and unsecured funding capacity, totaled $637.1 million or approximately 240% of uninsured deposit balances.
Deposit Activity: Core deposits, consisting of Demand, NOW, Savings and Money Market, increased $71.0 million or 5.14% from December 31, 2023. Total deposits increased $52.9 million or 2.78% from December 31, 2023. Insured and collateralized deposits, which include municipal deposits, accounted for approximately 86% of total deposits at September 30, 2024.
Loan Growth: Loans totaled $2.01 billion, a net increase of $48.6 million or 3.31% annualized, from December 31, 2023. The Company’s commercial real estate concentration ratio continued to improve, decreasing to 397% of capital at September 30, 2024 from 432% of capital at December 31, 2023 and 448% of capital at September 30, 2023. The Company continues to focus loan growth primarily in residential loan products originated for sale to specific buyers in the secondary market, C&I and SBA loans, which strategically enhances our management of liquidity and capital while producing additional non-interest income.
Asset Quality: At September 30, 2024, the Bank’s asset quality remained solid with non-performing loans totaling $15.5 million, representing 0.77% of the total loan portfolio, and the allowance for credit losses equaling 1.17% of total loans. Loans secured by office space accounted for 2.27% of the total loan portfolio with a total balance of $45.5 million, of which less than 1% is located in Manhattan.
Banking Initiatives: At September 30, 2024, the Company’s banking initiatives reflected continuing momentum:
- SBA & USDA Banking: Gains on sale of SBA loans totaled $2.4 million for the quarter ended September 30, 2024, representing a 63.83% increase over the comparable 2023 quarter. Total SBA loans sold were $27.1 million for the quarter ended September 30, 2024, representing a 47.00% increase over the comparable 2023 quarter. Premiums earned on the sale of SBA loans increased to 9.59% for the quarter ended September 30, 2024 from 8.66% for the quarter ended September 30, 2023.
- C&I Banking/Hauppauge Business Banking Center: The C&I Banking Team and the Hauppauge Business Banking Center increased deposits to $96.0 million as of September 30, 2024 from $36.1 million at September 30, 2023. Loan originations tied to this office were $8 million during the quarter. Momentum continues to build with current deposits of $105 million and deposit and C&I loan pipelines related to this office of $43 million and $104 million, respectively.
- Residential Lending: The Bank continues to originate loans for its portfolio while developing the flow origination program launched in late 2023. Of the $27.3 million in closed loans originated in the quarter ended September 30, 2024, $7.4 million were originated for the Bank’s portfolio and reflected a weighted average yield of 7.59% before origination and other fees, which average 50-100 bps per loan, and a weighted average LTV of 61%.
Tangible Book Value Per Share: Tangible book value per share (including Series A preferred shares) was $23.28 at September 30, 2024 compared to $22.51 at December 31, 2023.
Quarterly Cash Dividend: The Company’s Board of Directors approved a $0.10 per share cash dividend on both common and Series A preferred shares payable on November 13, 2024 to stockholders of record on November 6, 2024.
Port Jefferson Branch: The Company has received regulatory approval for the opening of a full-service branch in Port Jefferson, New York. Business development staff have already joined the Company in anticipation of the opening of this location. The Bank expects this site to be fully operational in the first quarter of 2025.

MINEOLA, N.Y., Oct. 23, 2024 (GLOBE NEWSWIRE) — Hanover Bancorp, Inc. (“Hanover” or “the Company” – NASDAQ: HNVR), the holding company for Hanover Community Bank (“the Bank”), today reported results for the quarter ended September 30, 2024 and the declaration of a $0.10 per share cash dividend on both common and Series A preferred shares payable on November 13, 2024 to stockholders of record on November 6, 2024.

Earnings Summary for the Quarter Ended September 30, 2024

The Company reported net income for each of the quarters ended September 30, 2024 and 2023 of $3.5 million or $0.48 per diluted share (including Series A preferred shares). The Company recorded adjusted (non-GAAP) net income (excluding severance and retirement expenses) of $3.7 million or $0.50 per diluted share in the quarter ended September 30, 2024, versus adjusted (non-GAAP) net income (excluding a litigation settlement payment) of $2.8 million or $0.38 per diluted share in the comparable 2023 quarter. Returns on average assets, average stockholders’ equity and average tangible equity were 0.62%, 7.35% and 8.19%, respectively, for the quarter ended September 30, 2024, versus 0.66%, 7.58% and 8.47%, respectively, for the comparable quarter of 2023. Adjusted (non-GAAP) returns, exclusive of severance and retirement expenses on average assets, average stockholders’ equity and average tangible equity were 0.65%, 7.69% and 8.56%, respectively, in the quarter ended September 30, 2024, versus 0.53%, 6.00% and 6.71%, respectively, in the comparable 2023 quarter, exclusive of a litigation settlement payment.

While net interest income and non-interest income increased during the quarter ended September 30, 2024 compared to the September 30, 2023 quarter, this was offset by an increase in non-interest expenses, particularly compensation and benefits, resulting in flat earnings between these periods. The increase in non-interest income is primarily related to the increase in the gain on sale of loans held-for-sale which was partially offset by a decrease in other operating income. In the September 30, 2023 quarter, the Company settled ongoing litigation and received a settlement payment of $975 thousand which was recorded in other operating income. Included in compensation and benefits expense in the third quarter of 2024 was expense related to additional staff for the SBA, C&I Banking and Operations teams and severance payments in August 2024 paid in connection with a loan personnel restructuring initiative. These expenses were offset by lower incentive compensation expense resulting from reduced projected lending activity and lower deferred loan origination costs.

Net interest income was $13.1 million for the quarter ended September 30, 2024, an increase of $1.3 million, or 11.04%, versus the comparable 2023 quarter due to improvement of the Company’s net interest margin to 2.37% in the 2024 quarter from 2.29% in the comparable 2023 quarter. The yield on interest earning assets increased to 6.17% in the 2024 quarter from 5.61% in the comparable 2023 quarter, an increase of 56 basis points that was partially offset by a 58 basis point increase in the cost of interest-bearing liabilities to 4.53% in 2024 from 3.95% in the third quarter of 2023.

Earnings Summary for the Nine Months Ended September 30, 2024

For the nine months ended September 30, 2024, the Company reported net income of $8.4 million or $1.14 per diluted share (including Series A preferred shares), versus $9.8 million or $1.33 per diluted share (including Series A preferred shares) in the comparable 2023 nine-month period. The Company recorded adjusted (non-GAAP) net income (excluding severance and retirement expenses) of $8.6 million or $1.16 per diluted share for the nine months ended September 30, 2024, versus adjusted (non-GAAP) net income (excluding severance and retirement expenses and a litigation settlement payment) of $9.4 million or $1.27 per diluted share in the comparable 2023 nine-month period.

The decrease in net income recorded for the nine months ended September 30, 2024 from the comparable 2023 period resulted from an increase in the provision for credit losses and an increase in non-interest expense, which were partially offset by an increase in non-interest income, consisting primarily of gain on sale of loans held-for-sale. The increase in non-interest expense was primarily attributed to additional staff for the SBA, C&I Banking and Operations teams. The Company’s effective tax rate decreased to 24.50% for the nine months ended September 30, 2024 from 26.03% in the comparable 2023 period.

Net interest income was $39.3 million for the nine months ended September 30, 2024, a slight increase of $0.1 million, or 0.14% from the comparable 2023 period. The Company’s net interest margin was 2.41% in the 2024 period and 2.65% in the comparable 2023 period. The yield on interest earning assets increased to 6.14% in the 2024 period from 5.58% in the comparable 2023 period, an increase of 56 basis points that was offset by a 95 basis point increase in the cost of interest-bearing liabilities to 4.45% in 2024 from 3.50% in the comparable 2023 period due to the rapid and significant rise in interest rates.

Michael P. Puorro, Chairman and Chief Executive Officer, commented on the Company’s quarterly results: “We are pleased with third-quarter results, which reflect the benefits of our diversified revenue streams. Strategic expansion of our C&I banking and government guaranteed lending initiatives continue to deliver sustained results. The success of our Hauppauge Business Banking Center over the last 16 months has yielded exceptional results as evidenced by over $100 million in deposits. Our investment in diversifying our residential lending activities from portfolio originations to including flow originations is gaining momentum. The continued decline in interest rates forecast by many economists is expected to provide sustained net interest margin expansion over the near term, having an anticipated positive impact on earnings. We believe these factors, coupled with our commitment to efficiency across our organization, position us for continued growth and opportunity, particularly in a market with continued consolidation. We continue to strategically seek opportunities to recruit talent and expand our footprint in the underserved Long Island community and wider New York City markets.”

Balance Sheet Highlights

Total assets at September 30, 2024 were $2.33 billion versus $2.27 billion at December 31, 2023. Total securities available for sale at September 30, 2024 were $98.4 million, an increase of $36.9 million from December 31, 2023, primarily driven by growth in U.S. Treasury securities, corporate bonds and mortgage-backed securities.

Total deposits at September 30, 2024 were $1.96 billion, an increase of $52.9 million or 2.78%, compared to $1.90 billion at December 31, 2023. Our loan to deposit ratio was 102% at September 30, 2024 and 103% at December 31, 2023.

Although core deposits, comprised of Demand, NOW, Savings and Money Market, grew to $1.45 billion as of September 30, 2024 from $1.38 billion as of December 31, 2023, Demand deposit balances decreased from $207.8 million to $206.3 million during the same period. This decrease was confined to deposits made by residential loan borrowers in anticipation of residential loan closings. These funds comprise the equity residential borrowers are required to contribute to residential loan closings. The volume of these deposits rise and fall in proportion to the volume of anticipated residential loan closings. As the pace of residential lending increases, the volume of Demand deposits will increase accordingly. Demand deposits, net of balances related to residential loan closings, grew to $181.8 million as of September 30, 2024 from $166.4 million as of December 31, 2023, an increase of 9.28%, underscoring the continued success of our C&I Banking vertical.

The Company had $366.2 million in total municipal deposits at September 30, 2024, at a weighted average rate of 4.24% versus $528.1 million at a weighted average rate of 4.62% at December 31, 2023. The Company’s municipal deposit program is built on long-standing relationships developed in the local marketplace. This core deposit business will continue to provide a stable source of funding for the Company’s lending products at costs lower than those of consumer deposits and market-based borrowings. The Company continues to broaden its municipal deposit base and currently services 39 customer relationships.

Total borrowings at September 30, 2024 were $125.8 million, with a weighted average rate and term of 4.25% and 22 months, respectively. At September 30, 2024 and December 31, 2023, the Company had $107.8 million and $126.7 million, respectively, of term FHLB advances outstanding. The Company had $18.0 million of FHLB overnight borrowings outstanding at September 30, 2024 and none at December 31, 2023. At September 30, 2024 and December 31, 2023, the Company’s borrowings from the Federal Reserve’s Paycheck Protection Program Liquidity Facility (“PPPLF”) were $0 and $2.3 million, respectively. The Company had no borrowings outstanding under lines of credit with correspondent banks at September 30, 2024 and December 31, 2023. The Company utilizes a number of strategies to manage interest rate risk, including interest rate swap agreements which currently provide a benefit to net interest income.

Stockholders’ equity was $192.3 million at September 30, 2024 compared to $184.8 million at December 31, 2023. The $7.5 million increase was primarily due to an increase of $6.2 million in retained earnings and a decrease of $0.3 million in accumulated other comprehensive loss. The increase in retained earnings was due primarily to net income of $8.4 million for the nine months ended September 30, 2024, which was offset by $2.2 million of dividends declared. The accumulated other comprehensive loss at September 30, 2024 was 1.10% of total equity and was comprised of a $1.0 million after tax net unrealized loss on the investment portfolio and a $1.1 million after tax net unrealized loss on derivatives.

Loan Portfolio

For the nine months ended September 30, 2024, the Bank’s loan portfolio grew to $2.01 billion, for an increase of $48.6 million or 3.31% annualized. Growth was concentrated primarily in residential, SBA and C&I loans. At September 30, 2024, the Company’s residential loan portfolio (including home equity) amounted to $745.9 million, with an average loan balance of $483 thousand and a weighted average loan-to-value ratio of 57%. Commercial real estate and multifamily loans totaled $1.09 billion at September 30, 2024, with an average loan balance of $1.5 million and a weighted average loan-to-value ratio of 59%. As will be discussed below, only approximately 37% of the multifamily portfolio is subject to rent regulation. The Company’s commercial real estate concentration ratio continued to improve, decreasing to 397% of capital at September 30, 2024 from 432% of capital at December 31, 2023, with loans secured by office space accounting for 2.27% of the total loan portfolio and totaling $45.5 million. The Company’s loan pipeline with executed term sheets at September 30, 2024 is approximately $142 million, with approximately 97% being niche-residential, conventional C&I and SBA and USDA lending opportunities.

Historically, the Bank generated additional income by strategically originating and selling residential and government guaranteed loans to other financial institutions at premiums, while also retaining servicing rights in some sales. However, with the rapid increases in interest rates in recent years, the appetite among the Bank’s purchasers of residential loans for acquiring pools of loans declined, eliminating the Bank’s ability to sell residential loans in its portfolio on desirable terms. Commencing in late 2023, the Bank initiated development of a flow origination program under which the Bank originates individual loans for sale to specific buyers, thereby positioning the Bank to resume residential loan sales and generate fee income to complement sale premiums earned from the sale of the guaranteed portion of SBA loans. During the quarter ended September 30, 2024, the Company sold $16.5 million of residential loans under this program and recorded gains on sale of loans held-for-sale of $0.4 million. We expect the volume of activity to increase as the year progresses and our flow pipeline continues to build. Because we continue to prioritize the management of liquidity and capital, new business development is largely focused on flow originations over portfolio growth.

The Bank’s investment in government guaranteed lending continues to yield results. During the quarters ended September 30, 2024 and 2023, the Company sold approximately $27.1 million and $18.4 million, respectively, in the government guaranteed portion of SBA loans and recorded gains on sale of loans held-for-sale of $2.4 million and $1.5 million, respectively.

Commercial Real Estate Statistics

A significant portion of the Bank’s commercial real estate portfolio consists of loans secured by Multi-Family and CRE-Investor owned real estate that are predominantly subject to fixed interest rates for an initial period of 5 years. The Bank’s exposure to Land/Construction loans is minor at $9.5 million, all at floating interest rates, and CRE-owner occupied loans have a sizable mix of floating rates. As shown below, these two portfolios have only 11% combined of loans maturing through the balance of 2024 and 2025, with 55% maturing in 2027 alone.

Multi-Family Market Rent Portfolio Fixed Rate Reset/Maturity Schedule								Multi-Family Stabilized Rent Portfolio Fixed Rate Reset/Maturity Schedule
Calendar Period (loan data as of 9/30/24)	# Loans	Total O/S ($000’s omitted)		Avg O/S ($000’s omitted)		Avg Interest Rate		Calendar Period (loan data as of 9/30/24)	# Loans	Total O/S ($000’s omitted)		Avg O/S ($000’s omitted)		Avg Interest Rate

2024	3	$	1,861	$	620	7.07	%	2024	4	$	4,014	$	1,004	5.43	%
2025	9		15,977		1,775	4.16	%	2025	14		19,438		1,388	4.57	%
2026	36		119,170		3,310	3.66	%	2026	20		43,147		2,157	3.67	%
2027	72		178,368		2,477	4.31	%	2027	53		125,417		2,366	4.22	%
2028	18		29,980		1,666	6.16	%	2028	11		9,966		906	7.12	%
2029+	8		5,647		706	7.32	%	2029+	5		2,326		465	6.40	%
Fixed Rate	146		351,003		2,404	4.30	%	Fixed Rate	107		204,308		1,909	4.33	%
Floating Rate	3		457		152	9.56	%	Floating Rate	1		1,804		1,804	6.25	%
Total	149	$	351,460	$	2,359	4.32	%	Total	108	$	206,112	$	1,908	4.34	%

CRE Investor Portfolio Fixed Rate Reset/Maturity Schedule
Calendar Period (loan data as of 9/30/24)	# Loans	Total O/S ($000’s omitted)		Avg O/S ($000’s omitted)		Avg Interest Rate

2024	18	$	30,965	$	1,720	5.56	%
2025	27		18,259		676	5.11	%
2026	33		45,806		1,388	4.85	%
2027	87		149,261		1,716	4.75	%
2028	32		32,826		1,026	6.65	%
2029+	16		6,519		407	6.15	%
Fixed Rate	213		283,636		1,332	5.13	%
Floating Rate	3		12,368		4,123	8.80	%
Total CRE-Inv.	216	$	296,004	$	1,370	5.28	%

Rental breakdown of Multi-Family portfolio

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

Multi-Family Loan Portfolio – Loans by Rent Type
Rent Type	# of Notes	Outstanding Loan Balance		% of Total Multi-Family		Avg Loan Size		LTV		Current DSCR	Avg # of Units
		($000’s omitted)				($000’s omitted)

Market	149	$	351,460	63	%	$	2,359	61.8	%	1.40	11
Location
Manhattan	7	$	17,911	3	%	$	2,559	52.0	%	1.63	15
Other NYC	94	$	246,140	44	%	$	2,619	61.5	%	1.39	10
Outside NYC	48	$	87,409	16	%	$	1,821	64.8	%	1.40	12

Stabilized	108	$	206,112	37	%	$	1,908	63.1	%	1.38	11
Location
Manhattan	7	$	10,892	2	%	$	1,556	53.5	%	1.49	15
Other NYC	89	$	176,115	32	%	$	1,979	63.5	%	1.38	11
Outside NYC	12	$	19,105	3	%	$	1,592	64.7	%	1.40	16

Office Property Exposure

The Bank’s exposure to the Office market is minor at $45 million (2% of all loans), has a 1.8x weighted average DSCR, a 54% weighted average LTV and less than $400 thousand of exposure in Manhattan. The portfolio has no delinquencies, defaults or modifications.

Asset Quality and Allowance for Credit Losses

The Bank’s asset quality ratios remain solid. At September 30, 2024, the Company reported $15.5 million in non-performing loans which represented 0.77% of total loans outstanding. Non-performing loans were $14.5 million at December 31, 2023 and $15.8 million at June 30, 2024.

During the third quarter of 2024, the Bank recorded a provision for credit losses expense of $0.2 million. The September 30, 2024, allowance for credit losses balance was $23.4 million versus $19.7 million at December 31, 2023 and $23.6 million at June 30, 2024. The allowance for credit losses as a percent of total loans was 1.17% at September 30 and June 30, 2024, inclusive of a $2.5 million allowance on an individually analyzed loan, versus 1.00% at December 31, 2023, which does not include the aforementioned $2.5 million allowance.

Net Interest Margin

The Bank’s net interest margin increased to 2.37% for the quarter ended September 30, 2024 from 2.29% in the quarter ended September 30, 2023. The increase from the prior year quarter was primarily related to the increase in the average yield on loans, partially offset by the increase in the average total cost of funds. The Bank’s net interest margin was 2.46% in the quarter ended June 30, 2024, inclusive of $321 thousand or 6 bps related to an interest recovery on the sale of a non-performing loan. There were no such recoveries in the current quarter. Further, contributing to the decrease from the prior linked quarter was an increase in the total cost of interest-bearing deposits primarily related to the delayed timing of the Fed rate cut and our decision to ensure deposit retention via shorter duration products. Despite the linked quarter margin compression, we believe the Company is well positioned for the current or more favorable interest rate environments.

About Hanover Community Bank and Hanover Bancorp, Inc.

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

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

Non-GAAP Disclosure

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

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

Forward-Looking Statements

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

HANOVER BANCORP, INC.
STATEMENTS OF CONDITION (unaudited)
(dollars in thousands)

		September 30,			June 30,			December 31,
			2024			2024			2023
Assets
Cash and cash equivalents		$	141,231		$	141,115		$	177,207
Securities-available for sale, at fair value			98,359			98,813			61,419
Investments-held to maturity			3,828			3,902			4,041
Loans held for sale			16,721			11,615			8,904

Loans, net of deferred loan fees and costs			2,005,813			2,012,954			1,957,199
Less: allowance for credit losses			(23,406	)		(23,644	)		(19,658	)
Loans, net			1,982,407			1,989,310			1,937,541

Goodwill			19,168			19,168			19,168
Premises & fixed assets			16,373			16,541			15,886
Operating lease assets			8,776			9,210			9,754
Other assets			40,951			41,424			36,140
	Assets	$	2,327,814		$	2,331,098		$	2,270,060

Liabilities and stockholders’ equity
Core deposits		$	1,453,444		$	1,477,824		$	1,382,397
Time deposits			504,100			464,105			522,198
Total deposits			1,957,544			1,941,929			1,904,595

Borrowings			125,805			148,953			128,953
Subordinated debentures			24,675			24,662			24,635
Operating lease liabilities			9,472			9,911			10,459
Other liabilities			17,979			15,571			16,588
	Liabilities		2,135,475			2,141,026			2,085,230

Stockholders’ equity			192,339			190,072			184,830
	Liabilities and stockholders’ equity	$	2,327,814		$	2,331,098		$	2,270,060

HANOVER BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(dollars in thousands, except per share data)

		Three Months Ended				Nine Months Ended
		9/30/2024		9/30/2023		9/30/2024		9/30/2023

Interest income		$	34,113	$	28,952	$	99,965	$	82,471
Interest expense			21,011		17,153		60,681		43,243
	Net interest income		13,102		11,799		39,284		39,228
Provision for credit losses ⁽¹⁾			200		500		4,540		1,932
	Net interest income after provision for credit losses		12,902		11,299		34,744		37,296

Loan servicing and fee income			960		681		2,709		2,031
Service charges on deposit accounts			123		75		333		212
Gain on sale of loans held-for-sale			2,834		1,468		7,926		3,515
Gain on sale of investments			–		–		4		–
Other operating income			37		1,483		180		1,679
	Non-interest income		3,954		3,707		11,152		7,437

Compensation and benefits			6,840		5,351		18,901		16,320
Occupancy and equipment			1,799		1,758		5,412		4,882
Data processing			547		516		1,560		1,533
Professional fees			762		800		2,297		2,462
Federal deposit insurance premiums			360		386		1,043		1,101
Other operating expenses			1,930		1,506		5,499		5,152
	Non-interest expense		12,238		10,317		34,712		31,450

	Income before income taxes		4,618		4,689		11,184		13,283
Income tax expense			1,079		1,166		2,740		3,457

	Net income	$	3,539	$	3,523	$	8,444	$	9,826

Earnings per share (“EPS”):⁽²⁾
Basic		$	0.48	$	0.48	$	1.14	$	1.34
Diluted		$	0.48	$	0.48	$	1.14	$	1.33

Average shares outstanding for basic EPS ⁽²⁾⁽³⁾			7,411,064		7,327,345		7,395,758		7,327,836
Average shares outstanding for diluted EPS ⁽²⁾⁽³⁾			7,436,068		7,407,483		7,420,415		7,407,954

⁽¹⁾ CECL was adopted effective 10/1/23. Prior periods were based on the incurred loss methodology.
⁽²⁾ Calculation includes common stock and Series A preferred stock.
⁽³⁾ Average shares outstanding before subtracting participating securities.

Note: Prior period information has been adjusted to conform to current period presentation.

HANOVER BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
QUARTERLY TREND
(dollars in thousands, except per share data)

		Three Months Ended
		9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023

Interest income		$	34,113	$	33,420	$	32,432	$	31,155	$	28,952
Interest expense			21,011		20,173		19,497		18,496		17,153
	Net interest income		13,102		13,247		12,935		12,659		11,799
Provision for credit losses ⁽¹⁾			200		4,040		300		200		500
	Net interest income after provision for credit losses		12,902		9,207		12,635		12,459		11,299

Loan servicing and fee income			960		836		913		778		681
Service charges on deposit accounts			123		114		96		85		75
Gain on sale of loans held-for-sale			2,834		2,586		2,506		2,326		1,468
Gain on sale of investments			–		4		–		–		–
Other operating income			37		82		61		65		1,483
	Non-interest income		3,954		3,622		3,576		3,254		3,707

Compensation and benefits			6,840		6,499		5,562		5,242		5,351
Occupancy and equipment			1,799		1,843		1,770		1,746		1,758
Data processing			547		495		518		530		516
Professional fees			762		717		818		729		800
Federal deposit insurance premiums			360		365		318		375		386
Other operating expenses			1,930		1,751		1,818		2,048		1,506
	Non-interest expense		12,238		11,670		10,804		10,670		10,317

	Income before income taxes		4,618		1,159		5,407		5,043		4,689
Income tax expense			1,079		315		1,346		1,280		1,166

	Net income	$	3,539	$	844	$	4,061	$	3,763	$	3,523

Earnings per share (“EPS”):⁽²⁾
Basic		$	0.48	$	0.11	$	0.55	$	0.51	$	0.48
Diluted		$	0.48	$	0.11	$	0.55	$	0.51	$	0.48

Average shares outstanding for basic EPS ⁽²⁾⁽³⁾			7,411,064		7,399,816		7,376,227		7,324,133		7,327,345
Average shares outstanding for diluted EPS ⁽²⁾⁽³⁾			7,436,068		7,449,110		7,420,926		7,383,529		7,407,483

⁽¹⁾ CECL was adopted effective 10/1/23. Prior periods were based on the incurred loss methodology.
⁽²⁾ Calculation includes common stock and Series A preferred stock.
⁽³⁾ Average shares outstanding before subtracting participating securities.

Note: Prior period information has been adjusted to conform to current period presentation.

HANOVER BANCORP, INC.
CONSOLIDATED NON-GAAP FINANCIAL INFORMATION ⁽¹⁾(unaudited)
(dollars in thousands, except per share data)

	Three Months Ended						Nine Months Ended
	9/30/2024			9/30/2023			9/30/2024			9/30/2023

ADJUSTED NET INCOME:
Net income, as reported	$	3,539		$	3,523		$	8,444		$	9,826
Adjustments:
Litigation settlement payment		–			(975	)		–			(975	)
Severance and retirement expenses		219			–			219			456
Total adjustments, before income taxes		219			(975	)		219			(519	)
Adjustment for reported effective income tax rate		55			(243	)		55			(138	)
Total adjustments, after income taxes		164			(732	)		164			(381	)
Adjusted net income	$	3,703		$	2,791		$	8,608		$	9,445
Basic earnings per share – adjusted	$	0.50		$	0.38		$	1.16		$	1.29
Diluted earnings per share – adjusted	$	0.50		$	0.38		$	1.16		$	1.27

ADJUSTED OPERATING EFFICIENCY RATIO⁽²⁾:
Operating efficiency ratio, as reported		71.75	%		66.53	%		68.83	%		67.39	%
Adjustments:
Litigation settlement payment		0.00	%		4.47	%		0.00	%		1.44	%
Severance and retirement expenses		-1.28	%		0.00	%		-0.43	%		-0.98	%
Adjusted operating efficiency ratio		70.47	%		71.00	%		68.40	%		67.85	%

ADJUSTED RETURN ON AVERAGE ASSETS		0.65	%		0.53	%		0.51	%		0.62	%
ADJUSTED RETURN ON AVERAGE EQUITY		7.69	%		6.00	%		6.04	%		6.93	%
ADJUSTED RETURN ON AVERAGE TANGIBLE EQUITY		8.56	%		6.71	%		6.73	%		7.77	%

⁽¹⁾ A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with U.S. GAAP. While management uses non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP.

⁽²⁾ Excludes gain on sale of securities available for sale.

HANOVER BANCORP, INC.
SELECTED FINANCIAL DATA (unaudited)
(dollars in thousands)

	Three Months Ended						Nine Months Ended
	9/30/2024			9/30/2023			9/30/2024			9/30/2023
Profitability:
Return on average assets		0.62	%		0.66	%		0.50	%		0.64	%
Return on average equity ⁽¹⁾		7.35	%		7.58	%		5.93	%		7.21	%
Return on average tangible equity ⁽¹⁾		8.19	%		8.47	%		6.60	%		8.08	%
Pre-provision net revenue to average assets		0.85	%		0.98	%		0.94	%		1.00	%
Yield on average interest-earning assets		6.17	%		5.61	%		6.14	%		5.58	%
Cost of average interest-bearing liabilities		4.53	%		3.95	%		4.45	%		3.50	%
Net interest rate spread ⁽²⁾		1.64	%		1.66	%		1.69	%		2.08	%
Net interest margin ⁽³⁾		2.37	%		2.29	%		2.41	%		2.65	%
Non-interest expense to average assets		2.15	%		1.94	%		2.08	%		2.06	%
Operating efficiency ratio ⁽⁴⁾		71.75	%		66.53	%		68.83	%		67.39	%

Average balances:
Interest-earning assets	$	2,201,068		$	2,046,502		$	2,175,478		$	1,975,584
Interest-bearing liabilities		1,847,177			1,723,235			1,822,613			1,653,908
Loans		2,019,384			1,840,900			2,006,142			1,802,349
Deposits		1,891,132			1,638,777			1,835,862			1,644,964
Borrowings		150,770			259,549			181,445			186,187


⁽¹⁾ Includes common stock and Series A preferred stock.
⁽²⁾ Represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
⁽³⁾ Represents net interest income divided by average interest-earning assets.
⁽⁴⁾ Represents non-interest expense divided by the sum of net interest income and non-interest income excluding gain on sale of securities available for sale.

HANOVER BANCORP, INC.
SELECTED FINANCIAL DATA (unaudited)
(dollars in thousands, except share and per share data)

	At or For the Three Months Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023
Asset quality:
Provision for credit losses – loans ⁽¹⁾	$	200		$	3,850		$	300		$	200
Net (charge-offs)/recoveries		(438	)		(79	)		(85	)		677
Allowance for credit losses		23,406			23,644			19,873			19,658
Allowance for credit losses to total loans ⁽²⁾		1.17	%		1.17	%		0.99	%		1.00	%
Non-performing loans	$	15,469		$	15,828		$	14,878		$	14,451
Non-performing loans/total loans		0.77	%		0.79	%		0.74	%		0.74	%
Non-performing loans/total assets		0.66	%		0.68	%		0.64	%		0.64	%
Allowance for credit losses/non-performing loans		151.31	%		149.38	%		133.57	%		136.03	%

Capital (Bank only):
Tier 1 Capital	$	198,196		$	195,703		$	195,889		$	193,324
Tier 1 leverage ratio		8.85	%		8.89	%		8.90	%		9.08	%
Common equity tier 1 capital ratio		12.99	%		12.78	%		12.99	%		13.17	%
Tier 1 risk based capital ratio		12.99	%		12.78	%		12.99	%		13.17	%
Total risk based capital ratio		14.24	%		14.21	%		14.19	%		14.31	%

Equity data:
Shares outstanding ⁽³⁾		7,428,366			7,402,163			7,392,412			7,345,012
Stockholders’ equity	$	192,339		$	190,072		$	189,543		$	184,830
Book value per share ⁽³⁾		25.89			25.68			25.64			25.16
Tangible common equity ⁽³⁾		172,906			170,625			170,080			165,351
Tangible book value per share ⁽³⁾		23.28			23.05			23.01			22.51
Tangible common equity (“TCE”) ratio ⁽³⁾		7.49	%		7.38	%		7.43	%		7.35	%

(1) Excludes $0, $190 thousand, $0 and $0 provision for credit losses on unfunded commitments for the quarters ended 9/30/24, 6/30/24, 3/31/24 and 12/31/23, respectively.
(2) Calculation excludes loans held for sale.
(3) Includes common stock and Series A preferred stock.

Note: Prior period information has been adjusted to conform to current period presentation.

HANOVER BANCORP, INC.
STATISTICAL SUMMARY
QUARTERLY TREND
(unaudited, dollars in thousands, except share data)

	9/30/2024			6/30/2024			3/31/2024			12/31/2023

Loan distribution ⁽¹⁾:
Residential mortgages	$	719,037		$	733,040		$	730,017		$	689,211
Multifamily		557,634			562,503			568,043			572,849
Commercial real estate		529,948			549,725			556,708			561,183
Commercial & industrial		171,899			139,209			123,419			107,912
Home equity		26,825			27,992			26,879			25,631
Consumer		470			485			449			413

Total loans	$	2,005,813		$	2,012,954		$	2,005,515		$	1,957,199

Sequential quarter growth rate		-0.35	%		0.37	%		2.47	%		4.41	%

CRE concentration ratio		397	%		403	%		416	%		432	%

Loans sold during the quarter	$	43,537		$	35,302		$	26,735		$	29,740

Funding distribution:
Demand	$	206,327		$	199,835		$	202,934		$	207,781
N.O.W.		621,880			661,998			708,897			661,276
Savings		53,024			44,821			48,081			47,608
Money market		572,213			571,170			493,123			465,732
Total core deposits		1,453,444			1,477,824			1,453,035			1,382,397
Time		504,100			464,105			464,227			522,198
Total deposits		1,957,544			1,941,929			1,917,262			1,904,595
Borrowings		125,805			148,953			148,953			128,953
Subordinated debentures		24,675			24,662			24,648			24,635

Total funding sources	$	2,108,024		$	2,115,544		$	2,090,863		$	2,058,183

Sequential quarter growth rate – total deposits		0.80	%		1.29	%		0.67	%		9.77	%

Period-end core deposits/total deposits ratio		74.25	%		76.10	%		75.79	%		72.58	%

Period-end demand deposits/total deposits ratio		10.54	%		10.29	%		10.58	%		10.91	%

⁽¹⁾ Excluding loans held for sale

HANOVER BANCORP, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ⁽¹⁾(unaudited)
(dollars in thousands, except share and per share amounts)

	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Tangible common equity
Total equity ⁽²⁾	$	192,339		$	190,072		$	189,543		$	184,830		$	185,907
Less: goodwill		(19,168	)		(19,168	)		(19,168	)		(19,168	)		(19,168	)
Less: core deposit intangible		(265	)		(279	)		(295	)		(311	)		(327	)
Tangible common equity ⁽²⁾	$	172,906		$	170,625		$	170,080		$	165,351		$	166,412

Tangible common equity (“TCE”) ratio
Tangible common equity ⁽²⁾	$	172,906		$	170,625		$	170,080		$	165,351		$	166,412
Total assets		2,327,814			2,331,098			2,307,508			2,270,060			2,149,632
Less: goodwill		(19,168	)		(19,168	)		(19,168	)		(19,168	)		(19,168	)
Less: core deposit intangible		(265	)		(279	)		(295	)		(311	)		(327	)
Tangible assets	$	2,308,381		$	2,311,651		$	2,288,045		$	2,250,581		$	2,130,137
TCE ratio ⁽²⁾		7.49	%		7.38	%		7.43	%		7.35	%		7.81	%

Tangible book value per share
Tangible equity ⁽²⁾	$	172,906		$	170,625		$	170,080		$	165,351		$	166,412
Shares outstanding ⁽²⁾		7,428,366			7,402,163			7,392,412			7,345,012			7,320,419
Tangible book value per share ⁽²⁾	$	23.28		$	23.05		$	23.01		$	22.51		$	22.73

⁽¹⁾ A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with U.S. GAAP. While management uses non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP.

⁽²⁾ Includes common stock and Series A preferred stock.

HANOVER BANCORP, INC.
NET INTEREST INCOME ANALYSIS
For the Three Months Ended September 30, 2024 and 2023
(unaudited, dollars in thousands)

	2024						2023
	Average				Average		Average				Average
	Balance		Interest		Yield/Cost		Balance		Interest		Yield/Cost

Assets:
Interest-earning assets:
Loans	$	2,019,384	$	31,356	6.18	%	$	1,840,900	$	26,059	5.62	%
Investment securities		103,870		1,619	6.20	%		15,232		198	5.16	%
Interest-earning cash		69,204		934	5.37	%		176,884		2,391	5.36	%
FHLB stock and other investments		8,610		204	9.43	%		13,486		304	8.94	%
Total interest-earning assets		2,201,068		34,113	6.17	%		2,046,502		28,952	5.61	%
Non interest-earning assets:
Cash and due from banks		9,360						6,700
Other assets		50,730						53,638
Total assets	$	2,261,158					$	2,106,840

Liabilities and stockholders’ equity:
Interest-bearing liabilities:
Savings, N.O.W. and money market deposits	$	1,209,030	$	13,941	4.59	%	$	985,625	$	10,186	4.10	%
Time deposits		487,377		5,546	4.53	%		478,061		4,060	3.37	%
Total savings and time deposits		1,696,407		19,487	4.57	%		1,463,686		14,246	3.86	%
Borrowings		126,104		1,198	3.78	%		234,936		2,604	4.40	%
Subordinated debentures		24,666		326	5.26	%		24,613		303	4.88	%
Total interest-bearing liabilities		1,847,177		21,011	4.53	%		1,723,235		17,153	3.95	%
Demand deposits		194,725						175,091
Other liabilities		27,826						23,994
Total liabilities		2,069,728						1,922,320
Stockholders’ equity		191,430						184,520
Total liabilities & stockholders’ equity	$	2,261,158					$	2,106,840
Net interest rate spread					1.64	%					1.66	%
Net interest income/margin			$	13,102	2.37	%			$	11,799	2.29	%

HANOVER BANCORP, INC.
NET INTEREST INCOME ANALYSIS
For the Nine Months Ended September 30, 2024 and 2023
(unaudited, dollars in thousands)

	2024						2023
	Average				Average		Average				Average
	Balance		Interest		Yield/Cost		Balance		Interest		Yield/Cost

Assets:
Interest-earning assets:
Loans	$	2,006,142	$	92,217	6.14	%	$	1,802,349	$	75,581	5.61	%
Investment securities		99,363		4,610	6.20	%		15,837		594	5.01	%
Interest-earning cash		60,202		2,445	5.42	%		147,423		5,673	5.14	%
FHLB stock and other investments		9,771		693	9.47	%		9,975		623	8.35	%
Total interest-earning assets		2,175,478		99,965	6.14	%		1,975,584		82,471	5.58	%
Non interest-earning assets:
Cash and due from banks		8,431						8,238
Other assets		50,593						53,720
Total assets	$	2,234,502					$	2,037,542

Liabilities and stockholders’ equity:
Interest-bearing liabilities:
Savings, N.O.W. and money market deposits	$	1,162,587	$	39,541	4.54	%	$	1,026,164	$	27,883	3.63	%
Time deposits		478,581		15,418	4.30	%		441,557		9,657	2.92	%
Total savings and time deposits		1,641,168		54,959	4.47	%		1,467,721		37,540	3.42	%
Borrowings		156,792		4,744	4.04	%		161,588		4,732	3.92	%
Subordinated debentures		24,653		978	5.30	%		24,599		971	5.28	%
Total interest-bearing liabilities		1,822,613		60,681	4.45	%		1,653,908		43,243	3.50	%
Demand deposits		194,694						177,243
Other liabilities		26,944						24,253
Total liabilities		2,044,251						1,855,404
Stockholders’ equity		190,251						182,138
Total liabilities & stockholders’ equity	$	2,234,502					$	2,037,542
Net interest rate spread					1.69	%					2.08	%
Net interest income/margin			$	39,284	2.41	%			$	39,228	2.65	%

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

The MIL Network –

January 25, 2025

MIL-OSI: QCR Holdings, Inc. Announces Net Income of $27.8 Million for the Third Quarter of 2024

Source: GlobeNewswire (MIL-OSI)

Third Quarter 2024 Highlights

Net income of $27.8 million, or $1.64 per diluted share
Adjusted net income of $30.3 million or $1.78 per diluted share (non-GAAP) resulting in an adjusted ROAA (non-GAAP) of 1.35%
Significant increase in net interest income of $3.6 million from the prior quarter, or 6%
Net interest margin expanded by 8 basis points to 3.34% adjusted NIM (TEY) (non-GAAP)
Continued strong capital markets revenue of $16.3 million
Tangible book value (non-GAAP) per share grew $2.35, or 20% annualized
TCE/TA ratio (non-GAAP) improved 24 basis points to 9.24%

MOLINE, Ill., Oct. 23, 2024 (GLOBE NEWSWIRE) — QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced quarterly net income of $27.8 million and diluted earnings per share (“EPS”) of $1.64 for the third quarter of 2024, compared to net income of $29.1 million and diluted EPS of $1.72 for the second quarter of 2024.

Adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the third quarter of 2024 were $30.3 million and $1.78, respectively. For the second quarter of 2024, adjusted net income (non-GAAP) was $29.3 million and adjusted diluted EPS (non-GAAP) was $1.73. For the third quarter of 2023, adjusted net income (non-GAAP) was $25.4 million, and adjusted diluted EPS (non-GAAP) was $1.51.

	For the Quarter Ended
	September 30,		June 30,		September 30,
$ in millions (except per share data)	2024		2024		2023
Net Income	$	27.8	$	29.1	$	25.1
Diluted EPS	$	1.64	$	1.72	$	1.49
Adjusted Net Income (non-GAAP)*	$	30.3	$	29.3	$	25.4
Adjusted Diluted EPS (non-GAAP)*	$	1.78	$	1.73	$	1.51

*Adjusted non-GAAP measurements of financial performance exclude non-core and/or nonrecurring income and expense items that management believes are not reflective of the anticipated future operation of the Company’s business. The Company believes these adjusted measurements provide a better comparison for analysis and may provide a better indicator of future performance. See GAAP to non-GAAP reconciliations.

“We produced exceptional third quarter results, highlighted by our significant growth in net interest income and margin expansion. We also had another quarter of strong capital markets and wealth management revenue,” said Larry J. Helling, Chief Executive Officer. “In addition, we grew core deposits, maintained our excellent asset quality, and significantly increased our tangible book value per share.”

Net Interest Income Grew 6% and Net Interest Margin Expanded 8 Basis Points

Net interest income for the third quarter of 2024 totaled $59.7 million, an increase of $3.6 million from the second quarter of 2024, driven by strong growth in loans and investments combined with margin expansion. Loan yields increased and funding costs were stable. Loan discount accretion was $463 thousand during the third quarter of 2024, an increase of $195 thousand from the prior quarter.

Net interest margin (“NIM”) was 2.90% and NIM on a tax-equivalent yield (“TEY”) basis (non-GAAP) was 3.37% for the third quarter, as compared to 2.82% and 3.27% for the prior quarter, respectively. Adjusted NIM TEY (non-GAAP) of 3.34% for the third quarter of 2024, represented an increase of 8 basis points from 3.26% for the second quarter of 2024.

“Our adjusted NIM, on a tax equivalent yield basis (non-GAAP), expanded by 8 basis points from the second quarter to 3.34% and exceeded the upper end of our guidance range,” said Todd A. Gipple, President and Chief Financial Officer. “We are very pleased with another quarter of NIM expansion. Looking ahead, we anticipate continued growth in net interest income and are guiding to further fourth quarter adjusted NIM TEY (non-GAAP) expansion in a range of between 2 to 7 basis points.”

Strong Noninterest Income Including $16.3 Million of Capital Markets Revenue

Noninterest income for the third quarter of 2024 totaled $27.2 million, a decrease from $30.9 million in the second quarter of 2024. The Company delivered $16.3 million of capital markets revenue in the quarter compared to $17.8 million in the prior quarter. Capital markets revenue was impacted by a $473 thousand loss from the execution of our third securitization during the quarter, a more modest loss than our prior guidance. Wealth management revenue was $4.5 million for the quarter, a 17% annualized increase from the second quarter. Additionally, the Company recorded $2.2 million of income from bank-owned life insurance policy proceeds in the second quarter of 2024 which did not recur during the third quarter of 2024.

“Our capital markets business delivered strong results driven by the swap fees from our low-income housing tax credit (“LIHTC”) lending program. The demand for affordable housing remains strong, which supports the sustainability of our LIHTC lending program,” added Mr. Gipple. “Our LIHTC lending pipelines, and the associated capital markets revenue remain robust. Additionally, our wealth management business continues to grow from new client additions and increased assets under management as we expand our market share.”

During the third quarter, the Company executed a derivative strategy with a notional value of $410 million. These derivatives are designed to safeguard the Company’s regulatory capital ratios against the adverse effects of a significant decline in long-term interest rates. These derivatives are unhedged and are marked-to-market, with gains or losses recorded in noninterest income and reflected as a non-core item. For the quarter, the Company recorded a $414 thousand loss on these derivatives.

Well Controlled Noninterest Expenses of $53.6 Million Impacted by m2 Equipment Finance Decision

Noninterest expense for the third quarter of 2024 totaled $53.6 million, compared to $49.9 million for the second quarter and $51.1 million for the third quarter of 2023. The linked-quarter increase was primarily due to the previously announced one-time restructuring and goodwill impairment charges related to the decision to discontinue offering new loans and leases at m2 Equipment Finance, LLC (“m2”).

“Our core expenses, excluding m2 one-time charges, were $51.2 million, an increase of $1.3 million, and within our guidance range of $49 to $52 million,” said Mr. Gipple. The linked quarter increase in core expenses for the quarter was primarily driven by higher incentive compensation and advertising expenses. Year-to-date core noninterest expenses remain well controlled, having increased only 2% annually. Excluding the one-time charges and other non-core items, the Company’s adjusted efficiency ratio (non-GAAP) was 58.5% in the third quarter.

Strong Core Deposit Growth

During the third quarter of 2024, the Company generated strong deposit growth with core deposits increasing by $166.3 million, or 10.3% annualized, to $6.6 billion. “Year-to-date, core deposits have increased by $398.3 million, which is an annualized growth rate of 8.5%. This is a result of our dedication to expanding market share and building new relationships in our markets,” added Mr. Helling.

Continued Loan Growth

During the third quarter of 2024, the Company’s total loans and leases held for investment increased by $53.5 million to $6.7 billion. At quarter end, the Company held $165.9 million of LIHTC loans held for sale in anticipation of the Company’s next loan securitization.

“Our year-to-date total loan growth excluding the impact of the loans securitized during the third quarter, is 10.5% annualized which was just above our guidance range. Year-to-date loan growth, net of loans securitized, was 5.8% annualized”, added Mr. Helling. “With the continued strength of our markets and healthy pipeline, we are maintaining our loan growth target for the full year 2024 of 8% to 10%, prior to the loan securitizations closed in the third quarter and planned for in the fourth quarter.”

Asset Quality Remains Excellent

The Company’s nonperforming assets (“NPAs”) to total assets ratio was 0.39% on September 30, 2024, unchanged from the prior quarter. NPAs totaled $35.7 million at the end of the third quarter of 2024, a $1.2 million increase from the prior quarter.

The Company’s total criticized loans, a leading indicator of asset quality, declined by $15.3 million on a linked-quarter basis, and the ratio of criticized loans to total loans and leases as of September 30, 2024, improved to 2.20%, as compared to 2.41% as of June 30, 2024. This marks the fourth consecutive quarter of improvement, resulting in a $50 million reduction in total criticized balances.

The Company recorded a total provision for credit losses of $3.5 million during the quarter, representing a decline of $2.0 million from the prior quarter. The reduction in the provision for credit losses during the quarter was primarily due to overall credit quality improvements. Net charge-offs were $3.4 million during the third quarter of 2024, an increase of $1.8 million from the prior quarter. The increase in net charge offs primarily resulted from loans and leases at m2. The allowance for credit losses to total loans held for investment decreased to 1.30% from 1.33% as of the prior quarter.

Continued Strong Capital Levels and Outstanding Tangible Book Value Expansion

As of September 30, 2024, the Company’s tangible common equity to tangible assets ratio (“TCE”) (non-GAAP) increased to 9.24%. The improvement in TCE was driven by strong earnings and an increase in accumulated other comprehensive income (“AOCI”). The total risk-based capital ratio decreased to 13.87% and the common equity tier 1 ratio decreased to 9.79% due to sizable loan and investment growth partially offset by strong earnings. By comparison, these ratios were 9.00%, 14.21%, and 9.92%, respectively, as of June 30, 2024. The Company remains focused on growing its regulatory capital and targeting TCE (non-GAAP) in the top quartile of its peer group.

The Company’s tangible book value per share (non-GAAP) increased significantly by $2.35, or 20% annualized, during the third quarter of 2024. AOCI increased $12.1 million during the third quarter primarily due to declining interest rates. Tangible book value per share (non-GAAP) has grown by $5.19 year-to-date, for an annualized growth rate of nearly 16%. The combination of strong earnings, a modest dividend, and improved AOCI contributed to the improvement in tangible book value per share (non-GAAP).

Conference Call Details
The Company will host an earnings call/webcast tomorrow, October 24, 2024, at 10:00 a.m. Central Time. Dial-in information for the call is toll-free: 888-346-9286 (international 412-317-5253). Participants should request to join the QCR Holdings, Inc. call. The event will be available for replay through October 31, 2024. The replay access information is 877-344-7529 (international 412-317-0088); access code 4892655. A webcast of the teleconference can be accessed on the Company’s News and Events page at www.qcrh.com. An archived version of the webcast will be available at the same location shortly after the live event has ended.

About Us
QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield communities through its wholly owned subsidiary banks. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, Springfield First Community Bank, based in Springfield, Missouri, was acquired by the Company in 2018, and Guaranty Bank, also based in Springfield, Missouri, was acquired by the Company and merged with Springfield First Community Bank in 2022, with the combined entity operating under the Guaranty Bank name. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. The Company has 36 locations in Iowa, Missouri, Wisconsin and Illinois. As of September 30, 2024, the Company had $9.1 billion in assets, $6.8 billion in loans and $7.0 billion in deposits. For additional information, please visit the Company’s website at www.qcrh.com.

Special Note Concerning Forward-Looking Statements. This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “bode”, “predict,” “suggest,” “project”, “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should,” “likely,” “might,” “potential,” “continue,” “annualized,” “target,” “outlook,” as well as the negative forms of those words, or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and international economies (including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or other threats thereof (including the ongoing conflict in the Middle East and the Russian invasion of Ukraine), or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board; (iv) changes in local, state and federal laws, regulations and governmental policies concerning the Company’s general business, including as a result of the upcoming 2024 presidential election or any changes in response to failures of other banks; (vi) increased competition in the financial services sector, including from non-bank competitors such as credit unions and “fintech” companies, and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (ix) the loss of key executives or employees; (x) changes in consumer spending; (xi) unexpected outcomes of existing or new litigation involving the Company; (xii) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) fluctuations in the value of securities held in our securities portfolio; (xiv) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xv) the concentration of large deposits from certain clients who have balances above current Federal Deposit Insurance Corporation insurance limits and may withdraw deposits to diversity their exposure; (xvi) the level of non-performing assets on our balance sheets; (xvii) interruptions involving our information technology and communications systems or third-party servicers; (xviii) breaches or failures of our information security controls or cybersecurity-related incidents, (xix) changes in the interest rates and prepayment rates of the Company’s assets, and (xx) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the Securities and Exchange Commission.

Contact:
Todd A. Gipple
President
Chief Financial Officer
(309) 743-7745
tgipple@qcrh.com


QCR Holding, Inc. Consolidated Financial Highlights (Unaudited)


	As of
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023

	(dollars in thousands)

CONDENSED BALANCE SHEET

Cash and due from banks	$	103,840		$	92,173		$	80,988		$	97,123		$	104,265
Federal funds sold and interest-bearing deposits		159,159			102,262			77,020			140,369			80,650
Securities, net of allowance for credit losses		1,146,046			1,033,199			1,031,861			1,005,528			896,394
Loans receivable held for sale (1)		167,047			246,124			275,344			2,594			278,893
Loans/leases receivable held for investment		6,661,755			6,608,262			6,372,992			6,540,822			6,327,414
Allowance for credit losses		(86,321	)		(87,706	)		(84,470	)		(87,200	)		(87,669	)
Intangibles		11,751			12,441			13,131			13,821			14,537
Goodwill		138,596			139,027			139,027			139,027			139,027
Derivatives		261,913			194,354			183,888			188,978			291,295
Other assets		524,779			531,855			509,768			497,832			495,251
Total assets	$	9,088,565		$	8,871,991		$	8,599,549		$	8,538,894		$	8,540,057

Total deposits	$	6,984,633		$	6,764,667		$	6,806,775		$	6,514,005		$	6,494,852
Total borrowings		660,344			768,671			489,633			718,295			712,126
Derivatives		285,769			221,798			211,677			214,098			320,220
Other liabilities		181,199			180,536			184,122			205,900			184,476
Total stockholders’ equity		976,620			936,319			907,342			886,596			828,383
Total liabilities and stockholders’ equity	$	9,088,565		$	8,871,991		$	8,599,549		$	8,538,894		$	8,540,057

ANALYSIS OF LOAN PORTFOLIO
Loan/lease mix: (2)
Commercial and industrial – revolving	$	387,409		$	362,115		$	326,129		$	325,243		$	299,588
Commercial and industrial – other		1,321,053			1,370,561			1,374,333			1,390,068			1,381,967
Commercial and industrial – other – LIHTC		89,028			92,637			96,276			91,710			105,601
Total commercial and industrial		1,797,490			1,825,313			1,796,738			1,807,021			1,787,156
Commercial real estate, owner occupied		622,072			633,596			621,069			607,365			610,618
Commercial real estate, non-owner occupied		1,103,694			1,082,457			1,055,089			1,008,892			955,552
Construction and land development		342,335			331,454			410,918			477,424			472,695
Construction and land development – LIHTC		913,841			750,894			738,609			943,101			921,359
Multi-family		324,090			329,239			296,245			284,721			282,541
Multi-family – LIHTC		973,682			1,148,244			1,007,321			711,422			874,439
Direct financing leases		19,241			25,808			28,089			31,164			34,401
1-4 family real estate		587,512			583,542			563,358			544,971			539,931
Consumer		144,845			143,839			130,900			127,335			127,615
Total loans/leases	$	6,828,802		$	6,854,386		$	6,648,336		$	6,543,416		$	6,606,307
Less allowance for credit losses		86,321			87,706			84,470			87,200			87,669
Net loans/leases	$	6,742,481		$	6,766,680		$	6,563,866		$	6,456,216		$	6,518,638

ANALYSIS OF SECURITIES PORTFOLIO
Securities mix:
U.S. government sponsored agency securities	$	18,621		$	20,101		$	14,442		$	14,973		$	16,002
Municipal securities		965,810			885,046			884,469			853,645			764,017
Residential mortgage-backed and related securities		53,488			54,708			56,071			59,196			57,946
Asset backed securities		10,455			12,721			14,285			15,423			16,326
Other securities		39,190			38,464			40,539			41,115			43,272
Trading securities (3)		58,685			22,362			22,258			22,368			–
Total securities	$	1,146,249		$	1,033,402		$	1,032,064		$	1,006,720		$	897,563
Less allowance for credit losses		203			203			203			1,192			1,169
Net securities	$	1,146,046		$	1,033,199		$	1,031,861		$	1,005,528		$	896,394

ANALYSIS OF DEPOSITS
Deposit mix:
Noninterest-bearing demand deposits	$	969,348		$	956,445		$	955,167		$	1,038,689		$	1,027,791
Interest-bearing demand deposits		4,715,087			4,644,918			4,714,555			4,338,390			4,416,725
Time deposits		942,847			859,593			875,491			851,950			788,692
Brokered deposits		357,351			303,711			261,562			284,976			261,644
Total deposits	$	6,984,633		$	6,764,667		$	6,806,775		$	6,514,005		$	6,494,852

ANALYSIS OF BORROWINGS
Borrowings mix:
Term FHLB advances	$	145,383		$	135,000		$	135,000		$	135,000		$	135,000
Overnight FHLB advances		230,000			350,000			70,000			300,000			295,000
Other short-term borrowings		2,750			1,600			2,700			1,500			470
Subordinated notes		233,383			233,276			233,170			233,064			232,958
Junior subordinated debentures		48,828			48,795			48,763			48,731			48,698
Total borrowings	$	660,344		$	768,671		$	489,633		$	718,295		$	712,126

(1) Loans with a fair value of $165.9 million, $243.2 million, $274.8 million and $278.0 million have been identified for securitization and are included in LHFS at September 30, 2024, June 30, 2024, March 31, 2024 and September 30, 2023, respectively.
(2) Loan categories with significant LIHTC loan balances have been broken out separately. Total LIHTC balances within the loan/lease portfolio were $2.0 billion at September 30, 2024.
(3) Trading securities consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company.


QCR Holding, Inc. Consolidated Financial Highlights (Unaudited)


	For the Quarter Ended
	September 30,			June 30,		March 31,			December 31,			September 30,
	2024			2024		2024			2023			2023

	(dollars in thousands, except per share data)

INCOME STATEMENT
Interest income	$	125,420		$	119,746	$	115,049		$	112,248		$	108,568
Interest expense		65,698			63,583		60,350			56,512			53,313
Net interest income		59,722			56,163		54,699			55,736			55,255
Provision for credit losses		3,484			5,496		2,969			5,199			3,806
Net interest income after provision for credit losses	$	56,238		$	50,667	$	51,730		$	50,537		$	51,449


Trust fees	$	3,270		$	3,103	$	3,199		$	3,084		$	2,863
Investment advisory and management fees		1,229			1,214		1,101			1,052			947
Deposit service fees		2,294			1,986		2,022			2,008			2,107
Gains on sales of residential real estate loans, net		385			540		382			323			476
Gains on sales of government guaranteed portions of loans, net		–			12		24			24			–
Capital markets revenue		16,290			17,758		16,457			36,956			15,596
Earnings on bank-owned life insurance		814			2,964		868			832			1,807
Debit card fees		1,575			1,571		1,466			1,561			1,584
Correspondent banking fees		507			510		512			465			450
Loan related fee income		949			962		836			845			800
Fair value gain (loss) on derivatives and trading securities		(886	)		51		(163	)		(582	)		(336	)
Other		730			218		154			1,161			299
Total noninterest income	$	27,157		$	30,889	$	26,858		$	47,729		$	26,593


Salaries and employee benefits	$	31,637		$	31,079	$	31,860		$	41,059		$	32,098
Occupancy and equipment expense		6,168			6,377		6,514			6,789			6,228
Professional and data processing fees		4,457			4,823		4,613			4,223			4,456
Restructuring expense		1,954			–		–			–			–
FDIC insurance, other insurance and regulatory fees		1,711			1,854		1,945			2,115			1,721
Loan/lease expense		587			151		378			834			826
Net cost of (income from) and gains/losses on operations of other real estate		(42	)		28		(30	)		38			3
Advertising and marketing		2,124			1,565		1,483			1,641			1,429
Communication and data connectivity		333			318		401			449			478
Supplies		278			259		275			333			335
Bank service charges		603			622		568			761			605
Correspondent banking expense		325			363		305			300			232
Intangibles amortization		690			690		690			716			691
Goodwill impairment		432			–		–			–			–
Payment card processing		785			706		646			836			733
Trust expense		395			379		425			413			432
Other		1,128			674		617			431			814
Total noninterest expense	$	53,565		$	49,888	$	50,690		$	60,938		$	51,081

Net income before income taxes	$	29,830		$	31,668	$	27,898		$	37,328		$	26,961
Federal and state income tax expense		2,045			2,554		1,172			4,473			1,840
Net income	$	27,785		$	29,114	$	26,726		$	32,855		$	25,121

Basic EPS	$	1.65		$	1.73	$	1.59		$	1.96		$	1.50
Diluted EPS	$	1.64		$	1.72	$	1.58		$	1.95		$	1.49


Weighted average common shares outstanding		16,846,200			16,814,814		16,783,348			16,734,080			16,717,303
Weighted average common and common equivalent shares outstanding		16,982,400			16,921,854		16,910,675			16,875,952			16,847,951


QCR Holding, Inc. Consolidated Financial Highlights (Unaudited)


	For the Nine Months Ended
	September 30,			September 30,
	2024			2023

	(dollars in thousands, except per share data)

INCOME STATEMENT
Interest income	$	360,215		$	301,162
Interest expense		189,631			135,892
Net interest income		170,584			165,270
Provision for credit losses		11,949			11,340
Net interest income after provision for credit losses	$	158,635		$	153,930


Trust fees	$	9,572		$	8,613
Investment advisory and management fees		3,544			2,812
Deposit service fees		6,302			6,169
Gains on sales of residential real estate loans, net		1,307			1,288
Gains on sales of government guaranteed portions of loans, net		36			30
Capital markets revenue		50,505			55,109
Securities losses, net		–			(451	)
Earnings on bank-owned life insurance		4,646			3,352
Debit card fees		4,612			4,639
Correspondent banking fees		1,529			1,197
Loan related fee income		2,747			2,221
Fair value loss on derivatives and trading securities		(998	)		(680	)
Other		1,102			656
Total noninterest income	$	84,904		$	84,955


Salaries and employee benefits	$	94,576		$	95,560
Occupancy and equipment expense		19,059			18,242
Professional and data processing fees		13,893			12,048
Post-acquisition compensation, transition and integration costs		–			207
Restructuring expense		1,954			–
FDIC insurance, other insurance and regulatory fees		5,510			5,022
Loan/lease expense		1,116			2,034
Net cost of (income from) and gains/losses on operations of other real estate		(44	)		(64	)
Advertising and marketing		5,172			4,401
Communication and data connectivity		1,052			1,614
Supplies		812			921
Bank service charges		1,793			1,831
Correspondent banking expense		993			663
Intangibles amortization		2,070			2,222
Goodwill impairment		432			–
Payment card processing		2,137			1,820
Trust expense		1,199			983
Other		2,419			2,089
Total noninterest expense	$	154,143		$	149,593

Net income before income taxes	$	89,396		$	89,292
Federal and state income tax expense		5,771			8,589
Net income	$	83,625		$	80,703

Basic EPS	$	4.97		$	4.82
Diluted EPS	$	4.94		$	4.79


Weighted average common shares outstanding		16,814,787			16,731,847
Weighted average common and common equivalent shares outstanding		16,938,309			16,863,203


QCR Holding, Inc. Consolidated Financial Highlights (Unaudited)


	As of and for the Quarter Ended															For the Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	2024			2024			2024			2023			2023			2024			2023

	(dollars in thousands, except per share data)

COMMON SHARE DATA
Common shares outstanding		16,861,108			16,824,985			16,807,056			16,749,254			16,731,646
Book value per common share (1)	$	57.92		$	55.65		$	53.99		$	52.93		$	49.51
Tangible book value per common share (Non-GAAP) (2)	$	49.00		$	46.65		$	44.93		$	43.81		$	40.33
Closing stock price	$	74.03		$	60.00		$	60.74		$	58.39		$	48.52
Market capitalization	$	1,248,228		$	1,009,499		$	1,020,861		$	977,989		$	811,819
Market price / book value		127.81	%		107.82	%		112.51	%		100.31	%		98.00	%
Market price / tangible book value		151.07	%		128.62	%		135.18	%		133.29	%		120.30	%
Earnings per common share (basic) LTM (3)	$	6.93		$	6.78		$	6.75		$	6.78		$	6.65
Price earnings ratio LTM (3)	10.68 x			8.85 x			9.00 x			8.61 x			7.30 x
TCE / TA (Non-GAAP) (4)		9.24	%		9.00	%		8.94	%		8.75	%		8.05	%


CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
Beginning balance	$	936,319		$	907,342		$	886,596		$	828,383		$	822,689
Net income		27,785			29,114			26,726			32,855			25,121
Other comprehensive income (loss), net of tax		12,057			(368	)		(5,373	)		25,363			(19,415	)
Common stock cash dividends declared		(1,012	)		(1,008	)		(1,008	)		(1,004	)		(1,003	)
Other (5)		1,471			1,239			401			999			991
Ending balance	$	976,620		$	936,319		$	907,342		$	886,596		$	828,383


REGULATORY CAPITAL RATIOS (6):
Total risk-based capital ratio		13.87	%		14.21	%		14.30	%		14.29	%		14.48	%
Tier 1 risk-based capital ratio		10.33	%		10.49	%		10.50	%		10.27	%		10.30	%
Tier 1 leverage capital ratio		10.50	%		10.40	%		10.33	%		10.03	%		9.92	%
Common equity tier 1 ratio		9.79	%		9.92	%		9.91	%		9.67	%		9.68	%


KEY PERFORMANCE RATIOS AND OTHER METRICS
Return on average assets (annualized)		1.24	%		1.33	%		1.25	%		1.54	%		1.21	%		1.27	%		1.34	%
Return on average total equity (annualized)		11.55	%		12.63	%		11.83	%		15.42	%		11.99	%		12.00	%		13.18	%
Net interest margin		2.90	%		2.82	%		2.82	%		2.90	%		2.89	%		2.85	%		3.00	%
Net interest margin (TEY) (Non-GAAP)(7)		3.37	%		3.27	%		3.25	%		3.32	%		3.31	%		3.30	%		3.37	%
Efficiency ratio (Non-GAAP) (8)		61.65	%		57.31	%		62.15	%		58.90	%		62.41	%		60.33	%		59.78	%
Gross loans/leases held for investment / total assets		73.30	%		74.48	%		74.11	%		76.60	%		74.09	%		73.30	%		77.36	%
Gross loans/leases held for investment / total deposits		95.38	%		97.69	%		93.63	%		100.41	%		97.42	%		95.38	%		101.72	%
Effective tax rate		6.86	%		8.06	%		4.20	%		11.98	%		6.82	%		6.46	%		9.62	%
Full-time equivalent employees		976			988			986			996			987			976			987


AVERAGE BALANCES
Assets	$	8,968,653		$	8,776,002		$	8,550,855		$	8,535,732		$	8,287,813		$	8,765,913		$	8,041,141
Loans/leases		6,840,527			6,779,075			6,598,614			6,483,572			6,476,512			6,739,773			6,288,343
Deposits		6,858,196			6,687,188			6,595,453			6,485,154			6,342,339			6,714,251			6,272,083
Total stockholders’ equity		962,302			921,986			903,371			852,163			837,734			929,341			816,591



(1) Includes accumulated other comprehensive income (loss).
(2) Includes accumulated other comprehensive income (loss) and excludes intangible assets. See GAAP to Non-GAAP reconciliations.
(3) LTM : Last twelve months.
(4) TCE / TCA : tangible common equity / total tangible assets. See GAAP to non-GAAP reconciliations.
(5) Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation.
(6) Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release.
(7) TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations.
(8) See GAAP to Non-GAAP reconciliations.


QCR Holding, Inc. Consolidated Financial Highlights (Unaudited)



ANALYSIS OF NET INTEREST INCOME AND MARGIN

	For the Quarter Ended
	September 30, 2024						June 30, 2024						September 30, 2023
	Average Balance		Interest Earned or Paid		Average Yield or Cost		Average Balance		Interest Earned or Paid		Average Yield or Cost		Average Balance		Interest Earned or Paid		Average Yield or Cost

	(dollars in thousands)

Fed funds sold	$	12,596	$	173	5.37	%	$	13,065	$	183	5.54	%	$	21,526	$	284	5.23	%
Interest-bearing deposits at financial institutions		145,597		1,915	5.23	%		80,998		1,139	5.66	%		86,807		1,205	5.51	%
Investment securities – taxable		381,285		4,439	4.64	%		377,747		4,286	4.53	%		344,657		3,788	4.38	%
Investment securities – nontaxable (1)		760,645		10,744	5.65	%		704,761		9,462	5.37	%		600,693		6,974	4.64	%
Restricted investment securities		42,546		840	7.73	%		43,398		869	7.92	%		43,590		659	5.91	%
Loans (1)		6,840,527		116,854	6.80	%		6,779,075		112,719	6.69	%		6,476,512		103,428	6.34	%
Total earning assets (1)	$	8,183,196	$	134,965	6.56	%	$	7,999,044	$	128,658	6.46	%	$	7,573,785	$	116,338	6.10	%

Interest-bearing deposits	$	4,739,757	$	42,180	3.54	%	$	4,649,625	$	40,924	3.54	%	$	4,264,208	$	33,563	3.12	%
Time deposits		1,164,560		13,206	4.51	%		1,091,870		12,128	4.47	%		999,488		10,003	3.97	%
Short-term borrowings		2,485		32	5.07	%		1,622		21	5.18	%		1,514		20	5.28	%
Federal Home Loan Bank advances		445,632		5,972	5.24	%		464,231		6,238	5.32	%		425,870		5,724	5.26	%
Subordinated debentures		233,313		3,616	6.20	%		233,207		3,582	6.14	%		232,890		3,307	5.68	%
Junior subordinated debentures		48,806		693	5.56	%		48,774		688	5.58	%		48,678		695	5.59	%
Total interest-bearing liabilities	$	6,634,553	$	65,699	3.93	%	$	6,489,329	$	63,581	3.93	%	$	5,972,648	$	53,312	3.54	%

Net interest income (1)			$	69,266					$	65,077					$	63,026
Net interest margin (2)					2.90	%					2.82	%					2.89	%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)					3.37	%					3.27	%					3.31	%
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)					3.34	%					3.26	%					3.28	%


	For the Nine Months Ended
	September 30, 2024						September 30, 2023
	Average Balance		Interest Earned or Paid		Average Yield or Cost		Average Balance		Interest Earned or Paid		Average Yield or Cost

	(dollars in thousands)

Fed funds sold	$	15,196	$	625	5.40	%	$	19,267	$	741	5.14	%
Interest-bearing deposits at financial institutions		106,195		4,254	5.35	%		83,783		3,151	5.03	%
Investment securities – taxable		377,538		12,986	4.57	%		340,140		10,847	4.24	%
Investment securities – nontaxable (1)		717,284		29,557	5.50	%		599,070		19,892	4.43	%
Restricted investment securities		41,348		2,383	7.57	%		38,817		1,677	5.70	%
Loans (1)		6,739,773		337,244	6.68	%		6,288,343		285,136	6.06	%
Total earning assets (1)	$	7,997,334	$	387,049	6.46	%	$	7,369,420	$	321,444	5.83	%

Interest-bearing deposits	$	4,639,937	$	122,207	3.52	%	$	4,099,789	$	84,565	2.76	%
Time deposits		1,121,508		37,679	4.49	%		1,020,421		27,225	3.57	%
Short-term borrowings		1,846		76	5.47	%		3,588		152	5.66	%
Federal Home Loan Bank advances		421,782		16,948	5.28	%		311,740		11,898	5.03	%
Subordinated debentures		233,207		10,678	6.10	%		232,784		9,922	5.68	%
Junior subordinated debentures		48,774		2,074	5.59	%		48,646		2,129	5.77	%
Total interest-bearing liabilities	$	6,467,054	$	189,662	3.91	%	$	5,716,968	$	135,891	3.17	%

Net interest income (1)			$	197,387					$	185,553
Net interest margin (2)					2.85	%					3.00	%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)					3.30	%					3.37	%
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)					3.28	%					3.34	%


(1) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.
(2) See “Select Financial Data – Subsidiaries” for a breakdown of amortization/accretion included in net interest margin for each period presented.
(3) TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations.


QCR Holding, Inc. Consolidated Financial Highlights (Unaudited)



	As of
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023

	(dollars in thousands, except per share data)

ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES
Beginning balance	$	87,706		$	84,470		$	87,200		$	87,669		$	85,797
Change in ACL for transfer of loans to LHFS		(1,812	)		498			(3,377	)		266			175
Credit loss expense		3,828			4,343			3,736			2,519			3,260
Loans/leases charged off		(3,871	)		(1,751	)		(3,560	)		(3,354	)		(1,816	)
Recoveries on loans/leases previously charged off		470			146			471			100			253
Ending balance	$	86,321		$	87,706		$	84,470		$	87,200		$	87,669


NONPERFORMING ASSETS
Nonaccrual loans/leases	$	33,480		$	33,546		$	29,439		$	32,753		$	34,568
Accruing loans/leases past due 90 days or more		1,298			87			142			86			–
Total nonperforming loans/leases		34,778			33,633			29,581			32,839			34,568
Other real estate owned		369			369			784			1,347			120
Other repossessed assets		542			512			962			–			–
Total nonperforming assets	$	35,689		$	34,514		$	31,327		$	34,186		$	34,688


ASSET QUALITY RATIOS
Nonperforming assets / total assets		0.39	%		0.39	%		0.36	%		0.40	%		0.41	%
ACL for loans and leases / total loans/leases held for investment		1.30	%		1.33	%		1.33	%		1.33	%		1.39	%
ACL for loans and leases / nonperforming loans/leases		248.21	%		260.77	%		285.55	%		265.54	%		253.61	%
Net charge-offs as a % of average loans/leases		0.05	%		0.02	%		0.05	%		0.05	%		0.02	%



INTERNALLY ASSIGNED RISK RATING (1) (2)
Special mention	$	80,121		$	85,096		$	111,729		$	125,308		$	128,052
Substandard (3)		70,022			80,345			70,841			70,425			72,550
Doubtful (3)		–			–			–			–			–
Total Criticized loans (4)	$	150,143		$	165,441		$	182,570		$	195,733		$	200,602

Classified loans as a % of total loans/leases (3)		1.03	%		1.17	%		1.07	%		1.08	%		1.10	%
Total Criticized loans as a % of total loans/leases (4)		2.20	%		2.41	%		2.75	%		2.99	%		3.04	%




(1) During the first quarter of 2024, the Company revised the risk rating scale used for credit quality monitoring.
(2) Amounts exclude the government guaranteed portion, if any. The Company assigns internal risk ratings of Pass for the government guaranteed portion.
(3) Classified loans are defined as loans with internally assigned risk ratings of 10 or 11 (7 or 8 prior to January 1, 2024), regardless of performance, and include loans identified as Substandard or Doubtful.
(4) Total Criticized loans are defined as loans with internally assigned risk ratings of 9, 10, or 11 (6, 7, or 8 prior to January 1, 2024), regardless of performance, and include loans identified as Special Mention, Substandard, or Doubtful.


QCR Holding, Inc. Consolidated Financial Highlights (Unaudited)



			For the Quarter Ended									For the Nine Months Ended
			September 30,			June 30,			September 30,			September 30,			September 30,
		SELECT FINANCIAL DATA – SUBSIDIARIES	2024			2024			2023			2024			2023
			(dollars in thousands)

		TOTAL ASSETS
		Quad City Bank and Trust (1)	$	2,552,962		$	2,559,049		$	2,433,084
		m2 Equipment Finance, LLC		349,166			359,012			336,180
		Cedar Rapids Bank and Trust		2,625,943			2,428,267			2,442,263
		Community State Bank		1,519,585			1,531,109			1,417,250
		Guaranty Bank		2,360,301			2,369,754			2,242,638

		TOTAL DEPOSITS
		Quad City Bank and Trust (1)	$	2,205,465		$	2,100,520		$	1,973,989
		Cedar Rapids Bank and Trust		1,765,964			1,721,564			1,722,905
		Community State Bank		1,269,147			1,188,551			1,132,724
		Guaranty Bank		1,778,453			1,791,448			1,722,861

		TOTAL LOANS & LEASES
		Quad City Bank and Trust (1)	$	2,090,856		$	2,107,605		$	2,005,770
		m2 Equipment Finance, LLC		353,259			363,897			341,041
		Cedar Rapids Bank and Trust		1,743,809			1,736,438			1,750,986
		Community State Bank		1,161,805			1,162,686			1,098,479
		Guaranty Bank		1,832,331			1,847,658			1,751,072

		TOTAL LOANS & LEASES / TOTAL DEPOSITS
		Quad City Bank and Trust (1)		95	%		100	%		102	%
		Cedar Rapids Bank and Trust		99	%		101	%		102	%
		Community State Bank		92	%		98	%		97	%
		Guaranty Bank		103	%		103	%		102	%


		TOTAL LOANS & LEASES / TOTAL ASSETS
		Quad City Bank and Trust (1)		82	%		82	%		82	%
		Cedar Rapids Bank and Trust		66	%		72	%		72	%
		Community State Bank		76	%		76	%		78	%
		Guaranty Bank		78	%		78	%		78	%

		ACL ON LOANS/LEASES HELD FOR INVESTMENT AS A PERCENTAGE OF LOANS/LEASES HELD FOR INVESTMENT
		Quad City Bank and Trust (1)		1.49	%		1.49	%		1.50	%
		m2 Equipment Finance, LLC		4.11	%		3.86	%		3.52	%
		Cedar Rapids Bank and Trust		1.38	%		1.44	%		1.47	%
		Community State Bank		1.06	%		1.14	%		1.28	%
		Guaranty Bank		1.14	%		1.16	%		1.24	%

		RETURN ON AVERAGE ASSETS
		Quad City Bank and Trust (1)		0.76	%		0.88	%		0.97	%		0.81	%		1.00	%
		Cedar Rapids Bank and Trust		2.52	%		2.94	%		2.28	%		2.84	%		2.95	%
		Community State Bank		1.46	%		1.26	%		1.38	%		1.33	%		1.43	%
		Guaranty Bank		1.28	%		1.42	%		1.23	%		1.20	%		1.07	%

		NET INTEREST MARGIN PERCENTAGE (2)
		Quad City Bank and Trust (1)		3.50	%		3.39	%		3.37	%		3.40	%		3.36	%
		Cedar Rapids Bank and Trust		3.88	%		3.75	%		3.78	%		3.80	%		3.83	%
		Community State Bank		3.76	%		3.72	%		3.88	%		3.74	%		3.92	%
		Guaranty Bank (3)		3.12	%		2.99	%		3.06	%		3.03	%		3.22	%

		ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET
		INTEREST MARGIN, NET
		Cedar Rapids Bank and Trust	$	–		$	–		$	–		$	–		$	(8	)
		Community State Bank		(1	)		(1	)		(1	)		(3	)		69
		Guaranty Bank		496			301			572			1,194			1,537
		QCR Holdings, Inc. (4)		(32	)		(32	)		(32	)		(97	)		(97	)

(1	)	Quad City Bank and Trust amounts include m2 Equipment Finance, LLC, as this entity is wholly-owned and consolidated with the Bank. m2 Equipment Finance, LLC is also presented separately for certain (applicable) measurements.
(2	)	Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.
(3	)	Guaranty Bank’s net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 2.94% for the quarter ended September 30, 2024, 2.86% for the quarter ended June 30, 2024 and 2.97% for the quarter ended September 30, 2023.
(4	)	Relates to the trust preferred securities acquired as part of the Guaranty Bank acquisition in 2017 and the Community National Bank acquisition in 2013.


QCR Holding, Inc. Consolidated Financial Highlights (Unaudited)


	As of
	September 30,			June 30,			March 31,			December 31,			September 30,
GAAP TO NON-GAAP RECONCILIATIONS	2024			2024			2024			2023			2023
	(dollars in thousands, except per share data)
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)

Stockholders’ equity (GAAP)	$	976,620		$	936,319		$	907,342		$	886,596		$	828,383
Less: Intangible assets		150,347			151,468			152,158			152,848			153,564
Tangible common equity (non-GAAP)	$	826,273		$	784,851		$	755,184		$	733,748		$	674,819

Total assets (GAAP)	$	9,088,565		$	8,871,991		$	8,599,549		$	8,538,894		$	8,540,057
Less: Intangible assets		150,347			151,468			152,158			152,848			153,564
Tangible assets (non-GAAP)	$	8,938,218		$	8,720,523		$	8,447,391		$	8,386,046		$	8,386,493

Tangible common equity to tangible assets ratio (non-GAAP)		9.24	%		9.00	%		8.94	%		8.75	%		8.05	%



(1) This ratio is a non-GAAP financial measure. The Company’s management believes that this measurement is important to many investors in the marketplace who are interested in changes period-to-period in common equity. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to stockholders’ equity and total assets, which are the most directly comparable GAAP financial measures.


QCR Holding, Inc. Consolidated Financial Highlights (Unaudited)


GAAP TO NON-GAAP RECONCILIATIONS	For the Quarter Ended															For the Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
ADJUSTED NET INCOME (1)	2024			2024			2024			2023			2023			2024			2023
	(dollars in thousands, except per share data)

Net income (GAAP)	$	27,785		$	29,114		$	26,726		$	32,855		$	25,121		$	83,625		$	80,703

Less non-core items (post-tax) (2):
Income:
Securities gains (losses), net		–			–			–			–			–			–			(356	)
Fair value gain (loss) on derivatives, net		(542	)		(145	)		(144	)		(460	)		(265	)		(830	)		(537	)
Total non-core income (non-GAAP)	$	(542	)	$	(145	)	$	(144	)	$	(460	)	$	(265	)	$	(830	)	$	(893	)

Expense:
Goodwill impairment		432			–			–			–			–			432			–
Post-acquisition compensation, transition and integration costs		–			–			–			–			–			–			164
Restructuring expense		1,544			–			–			–			–			1,544
Total non-core expense (non-GAAP)	$	1,976		$	–		$	–		$	–		$	–		$	1,976		$	164

Adjusted net income (non-GAAP) (1)	$	30,303		$	29,259		$	26,870		$	33,315		$	25,386		$	86,431		$	81,760

ADJUSTED EARNINGS PER COMMON SHARE (1)

Adjusted net income (non-GAAP) (from above)	$	30,303		$	29,259		$	26,870		$	33,315		$	25,386		$	86,431		$	81,760

Weighted average common shares outstanding		16,846,200			16,814,814			16,783,348			16,734,080			16,717,303			16,814,787			16,731,847
Weighted average common and common equivalent shares outstanding		16,982,400			16,921,854			16,910,675			16,875,952			16,847,951			16,938,309			16,863,203

Adjusted earnings per common share (non-GAAP):
Basic	$	1.80		$	1.74		$	1.60		$	1.99		$	1.52		$	5.14		$	4.89
Diluted	$	1.78		$	1.73		$	1.59		$	1.97		$	1.51		$	5.10		$	4.85

ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1)

Adjusted net income (non-GAAP) (from above)	$	30,303		$	29,259		$	26,870		$	33,315		$	25,386		$	86,431		$	81,760

Average Assets	$	8,968,653		$	8,776,002		$	8,550,855		$	8,535,732		$	8,287,813		$	8,765,913		$	8,041,141

Adjusted return on average assets (annualized) (non-GAAP)		1.35	%		1.33	%		1.26	%		1.56	%		1.23	%		1.31	%		1.36	%
Adjusted return on average equity (annualized) (non-GAAP)		12.60	%		12.69	%		11.90	%		15.64	%		12.12	%		12.40	%		13.35	%

NET INTEREST MARGIN (TEY) (3)

Net interest income (GAAP)	$	59,722		$	56,163		$	54,699		$	55,736		$	55,255		$	170,584		$	165,270
Plus: Tax equivalent adjustment (4)		9,544			8,914			8,377			7,954			7,771			26,803			20,283
Net interest income – tax equivalent (Non-GAAP)	$	69,266		$	65,077		$	63,076		$	63,690		$	63,026		$	197,387		$	185,553
Less: Acquisition accounting net accretion		463			268			363			673			539			1,094			1,501
Adjusted net interest income	$	68,803		$	64,809		$	62,713		$	63,017		$	62,487		$	196,293		$	184,052

Average earning assets	$	8,183,196		$	7,999,044		$	7,807,720		$	7,631,035		$	7,573,785		$	7,997,334		$	7,369,420

Net interest margin (GAAP)		2.90	%		2.82	%		2.82	%		2.90	%		2.89	%		2.85	%		3.00	%
Net interest margin (TEY) (Non-GAAP)		3.37	%		3.27	%		3.25	%		3.32	%		3.31	%		3.30	%		3.37	%
Adjusted net interest margin (TEY) (Non-GAAP)		3.34	%		3.26	%		3.24	%		3.29	%		3.28	%		3.28	%		3.34	%

EFFICIENCY RATIO (5)

Noninterest expense (GAAP)	$	53,565		$	49,888		$	50,690		$	60,938		$	51,081		$	154,143		$	149,593

Net interest income (GAAP)	$	59,722		$	56,163		$	54,699		$	55,736		$	55,255		$	170,584		$	165,270
Noninterest income (GAAP)		27,157			30,889			26,858			47,729			26,593			84,904			84,955
Total income	$	86,879		$	87,052		$	81,557		$	103,465		$	81,848		$	255,488		$	250,225

Efficiency ratio (noninterest expense/total income) (Non-GAAP)		61.65	%		57.31	%		62.15	%		58.90	%		62.41	%		60.33	%		59.78	%
Adjusted efficiency ratio (core noninterest expense/core total income) (Non-GAAP)		58.45	%		57.19	%		62.01	%		58.57	%		62.15	%		59.16	%		59.43	%




(1) Adjusted net income, adjusted earnings per common share, adjusted return on average assets and average equity are non-GAAP financial measures. The Company’s management believes that these measurements are important to investors as they exclude non-core or non-recurring income and expense items, therefore, they provide a more realistic run-rate for future periods. In compliance with applicable rules of the SEC, these non-GAAP measures are reconciled to net income, which is the most directly comparable GAAP financial measure.
(2) Non-core or non-recurring items (post-tax) are calculated using an estimated effective federal tax rate of 21% with the exception of goodwill impairment which is not deductible for tax.
(3) Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.
(4) Net interest margin (TEY) is a non-GAAP financial measure. The Company’s management utilizes this measurement to take into account the tax benefit associated with certain loans and securities. It is also standard industry practice to measure net interest margin using tax-equivalent measures. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net interest income, which is the most directly comparable GAAP financial measure. In addition, the Company calculates net interest margin without the impact of acquisition accounting net accretion as this can fluctuate and it’s difficult to provide a more realistic run-rate for future periods.
(5) Efficiency ratio is a non-GAAP measure. The Company’s management utilizes this ratio to compare to industry peers. The ratio is used to calculate overhead as a percentage of revenue. In compliance with the applicable rules of the SEC, this non-GAAP measure is reconciled to noninterest expense, net interest income and noninterest income, which are the most directly comparable GAAP financial measures.

The MIL Network –

January 25, 2025

MIL-OSI: Western New England Bancorp, Inc. Reports Results for Three and Nine Months Ended September 30, 2024 and Declares Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

WESTFIELD, Mass., Oct. 23, 2024 (GLOBE NEWSWIRE) — Western New England Bancorp, Inc. (the “Company” or “WNEB”) (NasdaqGS: WNEB), the holding company for Westfield Bank (the “Bank”), announced today the unaudited results of operations for the three and nine months ended September 30, 2024. For the three months ended September 30, 2024, the Company reported net income of $1.9 million, or $0.09 per diluted share, compared to net income of $4.5 million, or $0.21 per diluted share, for the three months ended September 30, 2023. On a linked quarter basis, net income was $1.9 million, or $0.09 per diluted share, as compared to net income of $3.5 million, or $0.17 per diluted share, for the three months ended June 30, 2024. For the nine months ended September 30, 2024, net income was $8.4 million, or $0.40 per diluted share, compared to net income of $12.6 million, or $0.58 per diluted share, for the nine months ended September 30, 2023.

The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.07 per share on the Company’s common stock. The dividend will be payable on or about November 21, 2024 to shareholders of record on November 7, 2024.

James C. Hagan, President and Chief Executive Officer, commented, “We believe our Company continues to be well positioned with strong capital and access to various liquidity sources. Our financial performance has been largely impacted by the unprecedented interest rate cycle and higher funding costs in response to the sustained increase in interest rates over the last 18-24 months. While it remains unclear whether the recent decrease in interest rates represents an end to this trend, the balance sheet is positioned to benefit from this decrease and the challenge will begin to subside as our liabilities begin to reprice lower. As we continue to manage the balance sheet in this uncertain interest rate environment, we remain focused on expense management initiatives to mitigate top line pressures and improve efficiencies over the Company’s long-term. The Company also continues to focus on our core business to grow loans and deposits as well as retention of our customers. Total deposits increased $80.5 million, or 3.8%, and total loans increased $21.7 million, or 1.1%, from year-end. Our asset quality remains strong, with nonperforming loans to total loans of 0.24% at September 30, 2024.”

Hagan concluded, “The Company is considered to be well-capitalized as defined by the regulators and we remain disciplined in our capital management strategies. During the nine months ended September 30, 2024, we repurchased 714,282 shares of the Company’s common stock at an average price per share of $7.61. We continue to believe that buying back shares represents a prudent use of the Company’s capital and we are pleased to be able to continue to return value to shareholders through share repurchases. Although the banking environment has been challenged, our capital management strategies have been critical to sustaining growth in book value per share, which increased $0.44, or 4.0%, while tangible book value per share increased $0.43, or 4.2%, to $10.73. The management team remains focused and well positioned to serve our community and to enhance shareholder value over the long term.”

Key Highlights:

Loans and Deposits

At September 30, 2024, total loans were $2.0 billion and increased $21.7 million, or 1.1%, from December 31, 2023. The increase in total loans was due to an increase in commercial real estate loans of $3.0 million, or 0.3%, an increase in residential real estate loans, including home equity loans, of $26.4 million, or 3.7%, partially offset by a decrease in commercial and industrial loans of $7.0 million, or 3.2%.

At September 30, 2024, total deposits were $2.2 billion and increased $80.5 million, or 3.8%, from December 31, 2023. Core deposits, which the Company defines as all deposits except time deposits, decreased $8.3 million, or 0.5%, from $1.5 billion, or 71.5% of total deposits, at December 31, 2023, to $1.5 billion, or 68.5% of total deposits at September 30, 2024. Time deposits increased $88.8 million, or 14.5%, from $611.4 million at December 31, 2023 to $700.2 million at September 30, 2024. Brokered time deposits, which are included in time deposits, totaled $1.7 million at September 30, 2024 and at December 31, 2023. The loan-to-deposit ratio decreased from 94.6% at December 31, 2023 to 92.1% at September 30, 2024.

Liquidity

The Company’s liquidity position remains strong with solid core deposit relationships, cash, unencumbered securities, a diversified deposit base and access to diversified borrowing sources. At September 30, 2024, the Company had $1.1 billion in immediately available liquidity, compared to $615.0 million in uninsured deposits, or 27.7% of total deposits, representing a coverage ratio of 183%. Uninsured deposits of the Bank’s customers are eligible for FDIC pass-through insurance if the customer opens an IntraFi Insured Cash Sweep (“ICS”) account or a reciprocal time deposit through the Certificate of Deposit Account Registry System (“CDARS”). IntraFi allows for up to $250.0 million per customer of pass-through FDIC insurance, which would more than cover each of the Bank’s deposit customers if such customer desired to have such pass-through insurance.

Allowance for Loan Losses and Credit Quality

At September 30, 2024, the allowance for credit losses was $20.0 million, or 0.97% of total loans and 409.5% of nonperforming loans, compared to $20.3 million, or 1.00% of total loans and 315.6% of nonperforming loans at December 31, 2023. At September 30, 2024, nonperforming loans totaled $4.9 million, or 0.24% of total loans, compared to $6.4 million, or 0.32% of total loans, at December 31, 2023. Total delinquent loans decreased $1.7 million, or 28.3%, from $6.0 million, or 0.30% of total loans, at December 31, 2023 to $4.3 million, or 0.21% of total loans, at September 30, 2024. At September 30, 2024 and December 31, 2023, the Company did not have any other real estate owned.

Net Interest Margin

The net interest margin was 2.40% for the three months ended September 30, 2024 compared to 2.42% for the three months ended June 30, 2024. The net interest margin, on a tax-equivalent basis, was 2.42% for the three months ended September 30, 2024, compared to 2.44% for the three months ended June 30, 2024.

Stock Repurchase Program

On June 10, 2024, the Company announced the completion of its previously authorized stock repurchase plan (the “2022 Plan”) pursuant to which the Company was authorized to repurchase up to 1.1 million shares, or approximately 5% of its outstanding common stock, as of the date the 2022 Plan was adopted. On May 22, 2024, the Board of Directors authorized a new stock repurchase plan (the “2024 Plan”) under which the Company may repurchase up to 1.0 million shares, or approximately 4.6%, of the Company’s then-outstanding shares of common stock.

During the three months ended September 30, 2024, the Company repurchased 244,441 shares of common stock under the 2024 Plan, with an average price per share of $8.18. During the nine months ended September 30, 2024, the Company repurchased 714,282 shares of common stock with an average price per share of $7.61. As of September 30, 2024, there were 692,318 shares of common stock available for repurchase under the 2024 Plan.

The repurchase of shares under the stock repurchase program is administered through an independent broker. The shares of common stock repurchased under the 2024 Plan have been and will continue to be purchased from time to time at prevailing market prices, through open market or privately negotiated transactions, or otherwise, depending upon market conditions. There is no guarantee as to the exact number, or value, of shares that will be repurchased by the Company, and the Company may discontinue repurchases at any time that the Company’s management (“Management”) determines additional repurchases are not warranted. The timing and amount of additional share repurchases under the 2024 Plan will depend on a number of factors, including the Company’s stock price performance, ongoing capital planning considerations, general market conditions, and applicable legal requirements.

Book Value and Tangible Book Value

The Company’s book value per share was $11.40 at September 30, 2024 compared to $10.96 at December 31, 2023, while tangible book value per share, a non-GAAP financial measure, increased $0.43, or 4.2%, from $10.30 at December 31, 2023 to $10.73 at September 30, 2024. See pages 19-21 for the related tangible book value calculation and a reconciliation of GAAP to non-GAAP financial measures.

Net Income for the Three Months Ended September 30, 2024 Compared to the Three Months Ended June 30, 2024

The Company reported net income of $1.9 million, or $0.09 per diluted share, for the three months ended September 30, 2024, compared to net income of $3.5 million, or $0.17 per diluted share, for the three months ended June 30, 2024. Net interest income increased $258,000, or 1.8%, the provision for credit losses increased $1.2 million, non-interest income decreased $693,000, or 18.1%, and non-interest expense increased $92,000, or 0.6%. Return on average assets and return on average equity were 0.29% and 3.19%, respectively, for the three months ended September 30, 2024, compared to 0.55% and 6.03%, respectively, for the three months ended June 30, 2024.

Net Interest Income and Net Interest Margin

On a sequential quarter basis, net interest income, our primary driver of revenues, increased $258,000, or 1.8%, to $14.7 million for the three months ended September 30, 2024, from $14.5 million for the three months ended June 30, 2024. The increase in net interest income was primarily due to an increase in interest income of $1.0 million, or 3.9%, partially offset by an increase in interest expense of $780,000, or 6.3%.

The net interest margin was 2.40% for the three months ended September 30, 2024, compared to 2.42% for the three months ended June 30, 2024. The net interest margin, on a tax-equivalent basis, was 2.42% for the three months ended September 30, 2024, compared to 2.44% for the three months ended June 30, 2024. The decrease in the net interest margin was primarily due to an increase in the average cost of interest-bearing liabilities, which was partially offset by an increase in the average yield on interest-earning assets. During the three months ended September 30, 2024 and the three months ended June 30, 2024, the Company had a fair value hedge which contributed to an increase in the net interest margin of seven basis points. Excluding the interest income attributed to the fair value hedge, the net interest margin was 2.33% and 2.35%, for the three months ended September 30, 2024 and the three months ended June 30, 2024, respectively. The fair value hedge is scheduled to mature in October of 2024.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.54% for the three months ended September 30, 2024, compared to 4.49% for the three months ended June 30, 2024. The average loan yield, without the impact of tax-equivalent adjustments, was 4.90% for the three months ended September 30, 2024, compared to 4.85% for the three months ended June 30, 2024. During the three months ended September 30, 2024, average interest-earning assets increased $40.6 million, or 1.7% to $2.4 billion, primarily due to an increase in average loans of $21.5 million, or 1.1%, an increase in average short-term investments, consisting of cash and cash equivalents, $17.7 million, or 123.6%, and an increase in average other investments of $1.6 million, or 11.0%.

The average cost of total funds, including non-interest bearing accounts and borrowings, increased eight basis points from 2.16% for the three months ended June 30, 2024 to 2.24% for the three months ended September 30, 2024. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased six basis points to 0.93% for the three months ended September 30, 2024, from 0.87% for the three months ended June 30, 2024. The average cost of time deposits increased five basis points from 4.39% for the three months ended June 30, 2024 to 4.44% for the three months ended September 30, 2024. The average cost of borrowings, including subordinated debt, increased five basis points from 5.00% for the three months ended June 30, 2024 to 5.05% for the three months ended September 30, 2024. Average demand deposits, an interest-free source of funds, increased $10.4 million, or 1.9%, from $548.8 million, or 25.7% of total average deposits, for the three months ended June 30, 2024, to $559.2 million, or 25.7% of total average deposits, for the three months ended September 30, 2024.

Provision for (Reversal of) Credit Losses

During the three months ended September 30, 2024, the Company recorded a provision for credit losses of $941,000, compared to a reversal for credit losses of $294,000 during the three months ended June 30, 2024. The provision for credit losses includes a provision for credit losses on loans of $609,000 and a reserve on unfunded loan commitments of $332,000. The increase in the provision for credit losses on loans was due to changes in the economic environment and related adjustments to the quantitative components of the CECL methodology as well as growth in the loan portfolio. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. The increase in reserves on unfunded loan commitments was due to an increase in commercial real estate unfunded loan commitments of $33.5 million, or 20.7%, from $161.8 million at June 30, 2024 to $195.3 million at September 30, 2024. Management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

During the three months ended September 30, 2024, the Company recorded net charge-offs of $98,000, compared to net charge-offs of $10,000 for the three months ended June 30, 2024.

Non-Interest Income

On a sequential quarter basis, non-interest income decreased $693,000, or 18.1%, to $3.1 million for the three months ended September 30, 2024, from $3.8 million for the three months ended June 30, 2024. Service charges and fees on deposits were $2.3 million for the three months ended September 30, 2024 and the three months ended June 30, 2024. Income from bank-owned life insurance (“BOLI”) decreased $32,000, or 6.4%, from the three months ended June 30, 2024 to $470,000, for the three months ended September 30, 2024. During the three months ended September 30, 2024, the Company reported $74,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the three months ended June 30, 2024. During the three months ended September 30, 2024, the Company sold $20.1 million in fixed rate residential loans to the secondary market and reported income from mortgage banking activities of $246,000 and did not have comparable income during the three months ended June 30, 2024. During the three months ended September 30, 2024 and the three months ended June 30, 2024, the Company reported unrealized gains on marketable equity securities of $10,000 and $4,000, respectively. During the three months ended June 30, 2024, the Company reported a gain on non-marketable equity investments of $987,000 and did not have comparable gains or losses from non-marketable equity investments during the three months ended September 30, 2024.

Non-Interest Expense

For the three months ended September 30, 2024, non-interest expense increased $92,000, or 0.6%, to $14.4 million from $14.3 million for the three months ended June 30, 2024. Salaries and employee benefits increased $211,000, or 2.7%, to $8.1 million, software expenses increased $46,000, or 8.1%, data processing expense increased $23,000, or 2.7%, FDIC insurance expense increased $15,000, or 4.6%, and debit card and ATM processing fees increased $6,000, or 0.9%. During the same period, these increases were partially offset by a decrease in professional fees of $41,000, or 7.1%, a decrease in advertising expense of $68,000, or 20.1%, a decrease in occupancy expense of $1,000, or 0.1%, and a decrease in other non-interest expense of $99,000, or 7.0%.

For the three months ended September 30, 2024, the efficiency ratio was 80.6%, compared to 78.2% for the three months ended June 30, 2024. For the three months ended September 30, 2024, the adjusted efficiency ratio, a non-GAAP financial measure, was 80.7% compared to 82.7% for the three months ended June 30, 2024. The increases in the efficiency ratio and the adjusted efficiency ratio were driven by lower revenues, defined as the sum of net interest income and non-interest income, during the three months ended September 30, 2024. See pages 19-21 for the related adjusted efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

Income tax expense for the three months ended September 30, 2024 was $618,000, or an effective tax rate of 24.5%, compared to $771,000, or an effective tax rate of 18.0%, for the three months ended June 30, 2024. The increase in the effective tax rate for the three months ended September 30, 2024 was driven by the Company’s projections of pre-tax income for the year ending December 31, 2024.

Net Income for the Three Months Ended September 30, 2024 Compared to the Three Months Ended September 30, 2023.

The Company reported net income of $1.9 million, or $0.09 per diluted share, for the three months ended September 30, 2024, compared to net income of $4.5 million, or $0.21 per diluted share, for the three months ended September 30, 2023. Net interest income decreased $1.7 million, or 10.1%, provision for credit losses increased $587,000, non-interest income decreased $471,000, or 13.0%, and non-interest expense increased $288,000, or 2.0%, during the same period. Return on average assets and return on average equity were 0.29% and 3.19%, respectively, for the three months ended September 30, 2024, compared to 0.70% and 7.60%, respectively, for the three months ended September 30, 2023.

Net Interest Income and Net Interest Margin

Net interest income decreased $1.7 million, or 10.1%, to $14.7 million, for the three months ended September 30, 2024, from $16.4 million for the three months ended September 30, 2023. The decrease in net interest income was due to an increase in interest expense of $3.6 million, or 37.8%, partially offset by an increase in interest and dividend income of $1.9 million, or 7.5%. Interest expense on deposits increased $3.5 million, or 44.9%, and interest expense on borrowings increased $133,000, or 7.3%. The increase in interest expense was a result of competitive pricing on deposits due to the continued higher interest rate environment and the unfavorable shift in the deposit mix from low cost core deposits to high cost time deposits.

The net interest margin was 2.40% for the three months ended September 30, 2024, compared to 2.70% for the three months ended September 30, 2023. The net interest margin, on a tax-equivalent basis, was 2.42% for the three months ended September 30, 2024, compared to 2.72% for the three months ended September 30, 2023. The decrease in the net interest margin was primarily due to an increase in the average cost of interest-bearing liabilities and the unfavorable shift in the deposit mix from low cost core deposits to high cost time deposits, which was partially offset by an increase in the average yield on interest-earning assets. During the three months ended September 30, 2024 and the three months ended September 30, 2023, the Company had a fair value hedge which contributed to an increase in the net interest margin of seven basis points. Excluding the interest income from the fair value hedge, the net interest margin was 2.33% and 2.64%, for the three months ended September 30, 2024 and three months ended September 30, 2023, respectively. The fair value hedge is scheduled to mature in October of 2024.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.54% for the three months ended September 30, 2024, compared to 4.28% for the three months ended September 30, 2023. The average loan yield, without the impact of tax-equivalent adjustments, was 4.90% for the three months ended September 30, 2024, compared to 4.64% for the three months ended September 30, 2023. During the three months ended September 30, 2024, average interest-earning assets increased $38.2 million, or 1.6% to $2.4 billion, primarily due to an increase in average loans of $31.3 million, or 1.6%, an increase in average short-term investments, consisting of cash and cash equivalents, of $9.7 million, or 43.4%, an increase in average other investments of $3.7 million, or 30.8%, partially offset by a decrease in average securities of $6.5 million, or 1.8%.

The average cost of total funds, including non-interest bearing accounts and borrowings, increased 60 basis points from 1.64% for the three months ended September 30, 2023 to 2.24% for the three months ended September 30, 2024. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 23 basis points to 0.93% for the three months ended September 30, 2024, from 0.70% for the three months ended September 30, 2023. The average cost of time deposits increased 98 basis points from 3.46% for the three months ended September 30, 2023 to 4.44% for the three months ended September 30, 2024. The average cost of borrowings, including subordinated debt, increased 24 basis points from 4.81% for the three months ended September 30, 2023 to 5.05% for the three months ended September 30, 2024. Average demand deposits, an interest-free source of funds, decreased $32.7 million, or 5.5%, from $591.9 million, or 27.5% of total average deposits, for the three months ended September 30, 2023, to $559.2 million, or 25.7% of total average deposits, for the three months ended September 30, 2024.

Provision for Credit Losses

During the three months ended September 30, 2024, the Company recorded a provision for credit losses of $941,000, compared to a provision for credit losses of $354,000, during the three months ended September 30, 2023. The increase was primarily due to an increase in the loan portfolio, specifically unfunded commercial real estate loan commitments, as well as changes in the economic environment and related adjustments to the quantitative components of the CECL methodology. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

The Company recorded net charge-offs of $98,000 for the three months ended September 30, 2024, as compared to net charge-offs of $78,000 for the three months ended September 30, 2023.

Non-Interest Income

Non-interest income decreased $471,000, or 13.0%, from $3.6 million for the three months ended September 30, 2023 to $3.1 million for the three months ended September 30, 2024. Service charges and fees on deposits increased $196,000, or 9.1%, and income from BOLI increased $16,000, or 3.5%, from the three months ended September 30, 2023 to the three months ended September 30, 2024. During the three months ended September 30, 2024, the Company reported $74,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the three months ended September 30, 2023. During the three months ended September 30, 2024, the Company reported income of $246,000 in mortgage banking activities due to the sale of fixed rate residential loans and did not have comparable income during the three months ended September 30, 2023. During the three months ended September 30, 2024, the Company reported $10,000 in unrealized gains of marketable equity securities and did not have comparable income during the three months ended September 30, 2023. During the three months ended September 30, 2023, the Company reported a gain on non-marketable equity investments of $238,000 and did not have comparable non-interest income during the three months ended September 30, 2024. During the three months ended September 30, 2023, non-interest income included a non-taxable gain of $778,000 on BOLI death benefits. The Company did not have comparable income during the three months ended September 30, 2024. During the three months ended September 30, 2023, the Company reported a loss on the sales of premises and equipment of $3,000 and did not have comparable expense during the three months ended September 30, 2024.

Non-Interest Expense

For the three months ended September 30, 2024, non-interest expense increased $288,000, or 2.0%, to $14.4 million from $14.1 million, for the three months ended September 30, 2023. Salaries and employee benefits increased $157,000, or 2.0%, to $8.1 million, debit card and ATM processing fees increased $87,000, or 15.5%, software expenses increased $83,000, or 15.7%, occupancy expense increased $58,000, or 5.0%, data processing expense increased $45,000, or 5.5%, other non-interest income increased $54,000, or 4.3%, and furniture and equipment related expenses increased $1,000, or 0.2%. These increases were partially offset by a decrease in professional fees of $103,000, or 16.0%, a decrease in advertising expense of $91,000, or 25.1%, and a decrease in FDIC insurance expense of $3,000, or 0.9%.

For the three months ended September 30, 2024, the efficiency ratio was 80.6%, compared to 70.6% for the three months ended September 30, 2023. For the three months ended September 30, 2024, the adjusted efficiency ratio, a non-GAAP financial measure, was 80.7% compared to 74.4% for the three months ended September 30, 2023. The increases in the efficiency ratio and the non-GAAP adjusted efficiency ratio were driven by lower revenues during the three months ended September 30, 2024, compared to the three months ended September 30, 2023. See pages 19-21 for the related adjusted efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

Income tax expense for the three months ended September 30, 2024 was $618,000, or an effective tax rate of 24.5%, compared to $1.0 million, or an effective tax rate of 18.7%, for the three months ended September 30, 2023. The effective tax rate for the three months ended September 30, 2023 included $778,000 in non-taxable BOLI death benefits.

Net Income for the Nine Months Ended September 30, 2024 Compared to the Nine Months Ended September 30, 2023

For the nine months ended September 30, 2024, the Company reported net income of $8.4 million, or $0.40 per diluted share, compared to $12.6 million, or $0.58 per diluted share, for the nine months ended September 30, 2023. Return on average assets and return on average equity were 0.44% and 4.74% for the nine months ended September 30, 2024, respectively, compared to 0.66% and 7.19% for the nine months ended September 30, 2023, respectively.

Net Interest Income and Net Interest Margin

During the nine months ended September 30, 2024, net interest income decreased $7.2 million, or 13.9%, to $44.5 million, compared to $51.7 million for the nine months ended September 30, 2023. The decrease in net interest income was due to an increase in interest expense of $14.1 million, or 62.3%, partially offset by an increase in interest and dividend income of $6.9 million, or 9.3%. The $14.1 million increase in interest expense was primarily due to an increase of $12.9 million, or 72.3%, in interest expense on deposits as a result of competitive pricing and an unfavorable shift in the deposit mix from low cost core deposits to high cost time deposits.

The net interest margin for the nine months ended September 30, 2024 was 2.46%, compared to 2.88% during the nine months ended September 30, 2023. The net interest margin, on a tax-equivalent basis, was 2.48% for the nine months ended September 30, 2024, compared to 2.90% for the nine months ended September 30, 2023. The decrease in the net interest margin was primarily due to an increase in the average cost of interest-bearing liabilities and the unfavorable shift in the deposit mix from low cost core to high cost time deposits, which was partially offset by an increase in the average yield on interest-earning assets. During the nine months ended September 30, 2024 and the nine months ended September 30, 2023, the Company had a fair value hedge which contributed to an increase in the net interest margin of seven and three basis points, respectively. Excluding the interest income from the fair value hedge, the net interest margin was 2.39% and 2.85%, for the nine months ended September 30, 2024 and the nine months ended September 30, 2023, respectively. The fair value hedge is scheduled to mature in October of 2024.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.49% for the nine months ended September 30, 2024, compared to 4.14% for the nine months ended September 30, 2023. The average loan yield, without the impact of tax-equivalent adjustments, was 4.86% for the nine months ended September 30, 2024, compared to 4.49% for the nine months ended September 30, 2023. During the nine months ended September 30, 2024, average interest-earning assets increased $14.5 million, or 0.6%, to $2.4 billion, from the same period in 2023. The increase was primarily due to an increase in average loans of $23.4 million, or 1.2%, an increase in average short-term investments, consisting of cash and cash equivalents, of $5.7 million, or 44.2%, and an increase in other interest-earning assets of $1.7 million, or 13.7%, partially offset by a decrease in average securities of $16.3 million, or 4.4%.

The average cost of total funds, including non-interest bearing accounts and borrowings, increased 80 basis points from 1.32% for the nine months ended September 30, 2023 to 2.12% for the nine months ended September 30, 2024. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 24 basis points to 0.86% for the nine months ended September 30, 2024, from 0.62% for the nine months ended September 30, 2023. The average cost of time deposits increased 160 basis points from 2.72% for the nine months ended September 30, 2023 to 4.32% for the nine months ended September 30, 2024. The average cost of borrowings, including subordinated debt, increased 15 basis points from 4.84% for the nine months ended September 30, 2023 to 4.99% for the nine months ended September 30, 2024. Average demand deposits, an interest-free source of funds, decreased $52.1 million, or 8.6%, from $607.3 million, or 28.0% of total average deposits, for the nine months ended September 30, 2023, to $555.3 million, or 25.8% of total average deposits, for the nine months ended September 30, 2024.

Provision for Credit Losses

During the nine months ended September 30, 2024, the Company recorded a provision for credit losses of $97,000, compared to a provision for credit losses of $386,000 during the nine months ended September 30, 2023. The decrease was primarily due to changes in the loan mix as well as economic environment and related adjustments to the quantitative components of the CECL methodology. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

During the nine months ended September 30, 2024, the Company recorded net charge-offs of $41,000 compared to net charge-offs of $1.9 million for the nine months ended September 30, 2023. The charge-offs during the nine months ended September 30, 2023 were related to one commercial relationship acquired in October 2016 from Chicopee Bancorp, Inc. The Company recorded a $1.9 million charge-off on the relationship, which represented the non-accretable credit mark that was required to be grossed-up to the loan’s amortized cost basis with a corresponding increase to the allowance for credit losses under the CECL implementation.

Non-Interest Income

For the nine months ended September 30, 2024, non-interest income increased $1.5 million, or 17.9%, from $8.2 million during the nine months ended September 30, 2023 to $9.6 million. Service charges and fees on deposits increased $328,000, or 5.0%, and income from BOLI increased $37,000, or 2.7%.

During the nine months ended September 30, 2024, the Company reported a gain of $987,000 on non-marketable equity investments, compared to a gain of $590,000 during the nine months ended September 30, 2023. During the nine months ended September 30, 2024, the Company reported income of $246,000 from mortgage banking activities due to the sale of fixed rate residential real estate loans and did not have comparable income during the nine months ended September 30, 2023. During the nine months ended September 30, 2024, the Company reported $74,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the nine months ended September 30, 2023. During the nine months ended September 30, 2024, the Company reported $22,000 in unrealized gains of marketable equity securities and did not have comparable income during the nine months ended September 30, 2023. Gains and losses from the investment portfolio vary from quarter to quarter based on market conditions, as well as the related yield curve and valuation changes. During the nine months ended September 30, 2024, the Company reported a loss on the sales of premises and equipment of $6,000 compared to $3,000 during the nine months ended September 30, 2023. During the nine months ended September 30, 2023, the Company recorded a $1.1 million final termination expense related to the defined benefit pension plan (the “DB Plan”) termination. The Company did not have comparable income or expense during the nine months ended September 30, 2024. During the nine months ended September 30, 2023, non-interest income included a non-taxable gain of $778,000 on BOLI death benefits. The Company did not have comparable income during the nine months ended September 30, 2024.

Non-Interest Expense

For the nine months ended September 30, 2024, non-interest expense decreased $63,000, or 0.1%, to $43.5 million, compared to $43.6 million for the nine months ended September 30, 2023. The decrease in non-interest expense was primarily due to a decrease in professional fees of $513,000, or 23.3%, a decrease in salaries and employee benefits of $218,000, or 0.9%, a decrease in advertising expense of $159,000, or 14.2%, a decrease in other non-interest expense of $120,000, or 2.9%, and a decrease in furniture and equipment related expense of $10,000, or 0.7%. These decreases were partially offset by an increase in software related expenses of $309,000, or 19.7%, an increase in debit card and ATM processing fees of $264,000, or 16.7%, an increase in data processing of $208,000, or 8.8%, an increase in FDIC insurance expense of $88,000, or 9.0%, and an increase in occupancy expense of $88,000, or 2.4%.

For the nine months ended September 30, 2024, the efficiency ratio was 80.3%, compared to 72.7% for the nine months ended September 30, 2023. For the nine months ended September 30, 2024, the adjusted efficiency ratio, a non-GAAP financial measure, was 81.8% compared to 73.0% for the nine months ended September 30, 2023. The increases in the efficiency ratio and the non-GAAP adjusted efficiency ratio were driven by lower revenues during the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023. See pages 19-21 for the related adjusted efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

Income tax expense for the nine months ended September 30, 2024 was $2.2 million, representing an effective tax rate of 20.9%, compared to $3.4 million, representing an effective tax rate of 21.3%, for nine months ended September 30, 2023.

Balance Sheet

At September 30, 2024, total assets were $2.6 billion, an increase of $75.9 million, or 3.0%, from December 31, 2023. The increase in total assets was primarily due to an increase in cash and cash equivalents of $44.0 million, or 152.4%, an increase in total loans of $21.7 million, or 1.1%, and an increase in investment securities of $8.7 million, or 2.4%.

Investments

At September 30, 2024, the investment securities portfolio totaled $369.4 million, or 14.0% of total assets, compared to $360.7 million, or 14.1%, of total assets, at December 31, 2023. At September 30, 2024, the Company’s available-for-sale (“AFS”) securities portfolio, recorded at fair market value, increased $18.8 million, or 13.7%, from $137.1 million at December 31, 2023 to $155.9 million. The held-to-maturity (“HTM”) securities portfolio, recorded at amortized cost, decreased $10.1 million, or 4.5%, from $223.4 million at December 31, 2023 to $213.3 million at September 30, 2024.

At September 30, 2024, the Company reported unrealized losses on the AFS securities portfolio of $24.6 million, or 13.6% of the amortized cost basis of the AFS securities portfolio, compared to unrealized losses of $29.2 million, or 17.5% of the amortized cost basis of the AFS securities at December 31, 2023. At September 30, 2024, the Company reported unrealized losses on the HTM securities portfolio of $30.7 million, or 14.4%, of the amortized cost basis of the HTM securities portfolio, compared to $35.7 million, or 16.0% of the amortized cost basis of the HTM securities portfolio at December 31, 2023.

The securities in which the Company may invest are limited by regulation. Federally chartered savings banks have authority to invest in various types of assets, including U.S. Treasury obligations, securities of various government-sponsored enterprises, mortgage-backed securities, certain certificates of deposit of insured financial institutions, repurchase agreements, overnight and short-term loans to other banks, corporate debt instruments and marketable equity securities. The securities, with the exception of $4.6 million in corporate bonds, are issued by the United States government or government-sponsored enterprises and are therefore either explicitly or implicitly guaranteed as to the timely payment of contractual principal and interest. These positions are deemed to have no credit impairment, therefore, the disclosed unrealized losses with the securities portfolio relate primarily to changes in prevailing interest rates. In all cases, price improvement in future periods will be realized as the issuances approach maturity.

Management regularly reviews the portfolio for securities in an unrealized loss position. At September 30, 2024 and December 31, 2023, the Company did not record any credit impairment charges on its securities portfolio and attributed the unrealized losses primarily due to fluctuations in general interest rates or changes in expected prepayments and not due to credit quality. The primary objective of the Company’s investment portfolio is to provide liquidity and to secure municipal deposit accounts while preserving the safety of principal. The Company expects to strategically redeploy available cash flows from the securities portfolio to fund loan growth and deposit outflows.

Total Loans

Total loans increased $21.7 million, or 1.1%, from December 31, 2023, to $2.0 billion at September 30, 2024. The increase in total loans was due to an increase in commercial real estate loans of $3.0 million, or 0.3%, an increase in residential real estate loans, including home equity loans, of $26.4 million, or 3.7%, partially offset by a decrease in commercial and industrial loans of $7.0 million, or 3.2%. During the three months ended September 30, 2024, the Company sold $20.1 million in fixed rate residential loans to the secondary market with servicing retained.

The following table presents the summary of the loan portfolio by the major classification of the loan at the periods indicated:

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

Commercial real estate loans:
Non-owner occupied	$	878,265	$	881,643
Owner-occupied		204,524		198,108
Total commercial real estate loans		1,082,789		1,079,751

Residential real estate loans:
Residential		631,649		612,315
Home equity		116,923		109,839
Total residential real estate loans		748,572		722,154

Commercial and industrial loans		210,390		217,447

Consumer loans		4,631		5,472
Total gross loans		2,046,382		2,024,824
Unamortized premiums and net deferred loans fees and costs		2,620		2,493
Total loans	$	2,049,002	$	2,027,317

Credit Quality

Management continues to closely monitor the loan portfolio for any signs of deterioration in borrowers’ financial condition and also in light of speculation that commercial real estate values may deteriorate as the market continues to adjust to higher vacancies and interest rates. We continue to proactively take steps to mitigate risk in our loan portfolio.

Total delinquency was $4.3 million, or 0.21% of total loans, at September 30, 2024, compared to $6.0 million, or 0.30% of total loans at December 31, 2023. At September 30, 2024, nonperforming loans totaled $4.9 million, or 0.24% of total loans, compared to $6.4 million, or 0.32% of total loans, at December 31, 2023. Total nonperforming assets totaled $4.9 million, or 0.18% of total assets, at September 30, 2024, compared to $6.4 million, or 0.25% of total assets, at December 31, 2023. At September 30, 2024 and December 31, 2023, there were no loans 90 or more days past due and still accruing interest. At September 30, 2024 and December 31, 2023, the Company did not have any other real estate owned.

At September 30, 2024, the allowance for credit losses as a percentage of total loans was 0.97% as compared to 1.00% at December 31, 2023. At September 30, 2024, the allowance for credit losses as a percentage of nonperforming loans was 409.5% as compared to 315.6% at December 31, 2023.

Total classified loans, defined as special mention and substandard loans, increased $3.7 million, or 9.4%, from $39.5 million, or 1.9% of total loans, at December 31, 2023 to $43.2 million, or 2.1%, of total loans at September 30, 2024. We continue to maintain diversity among property types and within our geographic footprint. More details on the diversification of the loan portfolio are available in the supplementary earnings presentation.

Deposits

Total deposits increased $80.5 million, or 3.8%, from $2.1 billion at December 31, 2023 to $2.2 billion at September 30, 2024. Core deposits, which the Company defines as all deposits except time deposits, decreased $8.3 million, or 0.5%, from $1.5 billion, or 71.5% of total deposits, at December 31, 2023, to $1.5 billion, or 68.5% of total deposits, at September 30, 2024. Non-interest-bearing deposits decreased $10.9 million, or 1.9%, to $568.7 million, money market accounts increased $1.5 million, or 0.2%, to $635.8 million, savings accounts decreased $8.2 million, or 4.4%, to $179.2 million and interest-bearing checking accounts increased $9.3 million, or 7.1%, to $140.3 million. Time deposits increased $88.8 million, or 14.5%, from $611.4 million at December 31, 2023 to $700.2 million at September 30, 2024. Brokered time deposits, which are included in time deposits, totaled $1.7 million at September 30, 2024 and at December 31, 2023.

The table below is a summary of our deposit balances for the periods noted:

	September 30, 2024		June 30, 2024		December 31, 2023
	(Dollars in thousands)
Core Deposits:
Demand accounts	$	568,685	$	553,329	$	579,595
Interest-bearing accounts		140,332		149,100		131,031
Savings accounts		179,214		186,171		187,405
Money market accounts		635,824		611,501		634,361
Total Core Deposits	$	1,524,055	$	1,500,101	$	1,532,392

Time Deposits:		700,151		671,708		611,352
Total Deposits:	$	2,224,206	$	2,171,809	$	2,143,744

During the nine months ended September 30, 2024, the Company continued to experience an unfavorable shift in deposit mix from low cost core deposits to high cost time deposits as customers continue to migrate to higher deposit rates. The Company continues to focus on the maintenance, development, and expansion of its core deposit base to meet funding requirements and liquidity needs, with an emphasis on retaining a long-term customer relationship base by competing for and retaining deposits in our local market. At September 30, 2024, the Bank’s uninsured deposits represented 27.7% of total deposits, compared to 26.8% at December 31, 2023.

FHLB and Subordinated Debt

At September 30, 2024, total borrowings decreased $4.1 million, or 2.6%, from $156.5 million at December 31, 2023 to $152.4 million. Short-term borrowings decreased $11.7 million, or 72.7%, to $4.4 million, compared to $16.1 million at December 31, 2023. Long-term borrowings increased $7.6 million, or 6.3%, from $120.6 million at December 31, 2023 to $128.3 million at September 30, 2024. At September 30, 2024 and December 31, 2023, borrowings also consisted of $19.7 million in fixed-to-floating rate subordinated notes.

The Company utilized the Bank Term Funding Program (“BTFP”), which was created in March 2023 to enhance banking system liquidity by allowing institutions to pledge certain securities at par value and borrow at a rate of ten basis points over the one-year overnight index swap rate. The BTFP was available to federally insured depository institutions in the U.S., with advances having a term of up to one year with no prepayment penalties. The BTFP ceased extending new advances in March 2024. At December 31, 2023, the Company’s outstanding balance under the BTFP was $90.0 million. There were no outstanding balance under the BTFP at September 30, 2024.

As of September 30, 2024, the Company had $452.0 million of additional borrowing capacity at the Federal Home Loan Bank, $404.9 million of additional borrowing capacity under the Federal Reserve Bank Discount Window and $25.0 million of other unsecured lines of credit with correspondent banks.

Capital

At September 30, 2024, shareholders’ equity was $240.7 million, or 9.1% of total assets, compared to $237.4 million, or 9.3% of total assets, at December 31, 2023. The change was primarily attributable to a decrease in accumulated other comprehensive loss of $3.4 million, cash dividends paid of $4.5 million, repurchase of shares at a cost of $5.6 million, partially offset by net income of $8.4 million. At September 30, 2024, total shares outstanding were 21,113,408.

The Company’s regulatory capital ratios continue to be strong and in excess of regulatory minimum requirements to be considered well-capitalized as defined by regulators and internal Company targets. Total Risk-Based Capital Ratio was 14.4% at September 30, 2024 and 14.7% at December 31, 2023. The Bank’s Tier 1 Leverage Ratio to adjusted average assets was 9.61% at September 30, 2024 and 9.62% at December 31, 2023.

Dividends

Although the Company has historically paid quarterly dividends on its common stock and currently intends to continue to pay such dividends, the Company’s ability to pay such dividends depends on a number of factors, including restrictions under federal laws and regulations on the Company’s ability to pay dividends, and as a result, there can be no assurance that dividends will continue to be paid in the future.

About Western New England Bancorp, Inc.

Western New England Bancorp, Inc. is a Massachusetts-chartered stock holding company and the parent company of Westfield Bank, CSB Colts, Inc., Elm Street Securities Corporation, WFD Securities, Inc. and WB Real Estate Holdings, LLC. Western New England Bancorp, Inc. and its subsidiaries are headquartered in Westfield, Massachusetts and operate 25 banking offices throughout western Massachusetts and northern Connecticut. To learn more, visit our website at www.westfieldbank.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the Company’s financial condition, liquidity, results of operations, future performance, and business. Forward-looking statements may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” and “potential.” Examples of forward-looking statements include, but are not limited to, estimates with respect to our financial condition, results of operations and business that are subject to various factors which could cause actual results to differ materially from these estimates. These factors include, but are not limited to:

unpredictable changes in general economic conditions, financial markets, fiscal, monetary and regulatory policies, including actual or potential stress in the banking industry;
the duration and scope of potential pandemics, including the emergence of new variants and the response thereto;
unstable political and economic conditions which could materially impact credit quality trends and the ability to generate loans and gather deposits;
inflation and governmental responses to inflation, including recent sustained increases and potential future increases in interest rates that reduce margins;
the effect on our operations of governmental legislation and regulation, including changes in accounting regulation or standards, the nature and timing of the adoption and effectiveness of new requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Basel guidelines, capital requirements and other applicable laws and regulations;
significant changes in accounting, tax or regulatory practices or requirements;
new legal obligations or liabilities or unfavorable resolutions of litigation;
disruptive technologies in payment systems and other services traditionally provided by banks;
the highly competitive industry and market area in which we operate;
changes in business conditions and inflation;
operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks;
failure or circumvention of our internal controls or procedures;
changes in the securities markets which affect investment management revenues;
increases in Federal Deposit Insurance Corporation deposit insurance premiums and assessments;
the soundness of other financial services institutions which may adversely affect our credit risk;
certain of our intangible assets may become impaired in the future;
new lines of business or new products and services, which may subject us to additional risks;
changes in key management personnel which may adversely impact our operations;
severe weather, natural disasters, acts of war or terrorism and other external events which could significantly impact our business; and
other risk factors detailed from time to time in our SEC filings.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from the results discussed in these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by law.

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Net Income and Other Data (Dollars in thousands, except per share data) Unaudited)

	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,
		2024			2024			2024			2023			2023			2024			2023
INTEREST AND DIVIDEND INCOME:
Loans	$	25,134		$	24,340		$	24,241		$	23,939		$	23,451		$	73,715		$	67,230
Securities		2,121			2,141			2,114			2,094			2,033			6,376			6,276
Other investments		189			148			136			140			166			473			418
Short-term investments		396			173			113			597			251			682			424
Total interest and dividend income		27,840			26,802			26,604			26,770			25,901			81,246			74,348

INTEREST EXPENSE:
Deposits		11,165			10,335			9,293			8,773			7,704			30,793			17,876
Short-term borrowings		71			186			283			123			117			540			1,466
Long-term debt		1,622			1,557			1,428			1,444			1,444			4,607			2,513
Subordinated debt		254			254			254			254			253			762			760
Total interest expense		13,112			12,332			11,258			10,594			9,518			36,702			22,615

Net interest and dividend income		14,728			14,470			15,346			16,176			16,383			44,544			51,733

PROVISION FOR (REVERSAL OF) CREDIT LOSSES		941			(294	)		(550	)		486			354			97			386

Net interest and dividend income after provision for (reversal of) credit losses		13,787			14,764			15,896			15,690			16,029			44,447			51,347

NON-INTEREST INCOME:
Service charges and fees on deposits		2,341			2,341			2,219			2,283			2,145			6,901			6,573
Income from bank-owned life insurance		470			502			453			432			454			1,425			1,388
Unrealized gain (loss) on marketable equity securities		10			4			8			(1	)		–			22			–
Gain on sale of mortgages		246			–			–			–			–			246			–
Gain on non-marketable equity investments		–			987			–			–			238			987			590
Loss on disposal of premises and equipment		–			–			(6	)		–			(3	)		(6	)		(3	)
Loss on defined benefit plan termination		–			–			–			–			–			–			(1,143	)
Gain on bank-owned life insurance death benefit		–			–			–			–			778			–			778
Other income		74			–			–			–			–			74			–
Total non-interest income		3,141			3,834			2,674			2,714			3,612			9,649			8,183

NON-INTEREST EXPENSE:
Salaries and employees benefits		8,112			7,901			8,244			7,739			7,955			24,257			24,475
Occupancy		1,217			1,218			1,363			1,198			1,159			3,798			3,710
Furniture and equipment		483			483			484			494			482			1,450			1,460
Data processing		869			846			862			788			824			2,577			2,369
Software		612			566			699			598			529			1,877			1,568
Debit/ATM card processing expense		649			643			552			559			562			1,844			1,580
Professional fees		540			581			569			674			643			1,690			2,203
FDIC insurance		338			323			410			338			341			1,071			983
Advertising		271			339			349			377			362			959			1,118
Other		1,315			1,414			1,250			2,020			1,261			3,979			4,099
Total non-interest expense		14,406			14,314			14,782			14,785			14,118			43,502			43,565

INCOME BEFORE INCOME TAXES		2,522			4,284			3,788			3,619			5,523			10,594			15,965

INCOME TAX PROVISION		618			771			827			1,108			1,033			2,216			3,408
NET INCOME	$	1,904		$	3,513		$	2,961		$	2,511		$	4,490		$	8,378		$	12,557

Basic earnings per share	$	0.09		$	0.17		$	0.14		$	0.12		$	0.21		$	0.40		$	0.58
Weighted average shares outstanding		20,804,162			21,056,173			21,180,968			21,253,452			21,560,940			21,013,003			21,631,067
Diluted earnings per share	$	0.09		$	0.17		$	0.14		$	0.12		$	0.21		$	0.40		$	0.58
Weighted average diluted shares outstanding		20,933,833			21,163,762			21,271,323			21,400,664			21,680,113			21,122,208			21,681,251

Other Data:
Return on average assets (1)		0.29	%		0.55	%		0.47	%		0.39	%		0.70	%		0.44	%		0.66	%
Return on average equity (1)		3.19	%		6.03	%		5.04	%		4.31	%		7.60	%		4.74	%		7.19	%
Efficiency ratio		80.62	%		78.20	%		82.03	%		78.27	%		70.61	%		80.27	%		72.71	%
Adjusted efficiency ratio (2)		80.67	%		82.68	%		82.04	%		78.26	%		74.38	%		81.79	%		72.98	%
Net interest margin		2.40	%		2.42	%		2.57	%		2.64	%		2.70	%		2.46	%		2.88	%
Net interest margin, on a fully tax-equivalent basis		2.42	%		2.44	%		2.59	%		2.66	%		2.72	%		2.48	%		2.90	%
(1) Annualized.
(2) The adjusted efficiency ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gain on non-marketable equity investments, loss on disposal of premises and equipment, loss on defined benefit plan termination and gain on bank-owned life insurance death benefit.

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands) (Unaudited)

	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
Cash and cash equivalents	$	72,802		$	53,458		$	22,613		$	28,840		$	62,267
Securities available-for-sale, at fair value		155,889			135,089			138,362			137,115			130,709
Securities held to maturity, at amortized cost		213,266			217,632			221,242			223,370			225,020
Marketable equity securities, at fair value		252			233			222			196			–
Federal Home Loan Bank of Boston and other restricted stock – at cost		7,143			7,143			3,105			3,707			3,063

Loans		2,049,002			2,026,226			2,025,566			2,027,317			2,014,820
Allowance for credit losses		(19,955	)		(19,444	)		(19,884	)		(20,267	)		(19,978	)
Net loans		2,029,047			2,006,782			2,005,682			2,007,050			1,994,842

Bank-owned life insurance		76,570			76,100			75,598			75,145			74,713
Goodwill		12,487			12,487			12,487			12,487			12,487
Core deposit intangible		1,531			1,625			1,719			1,813			1,906
Other assets		71,492			75,521			76,206			74,848			79,998
TOTAL ASSETS	$	2,640,479		$	2,586,070		$	2,557,236		$	2,564,571		$	2,585,005

Total deposits	$	2,224,206		$	2,171,809		$	2,143,747		$	2,143,744		$	2,176,303
Short-term borrowings		4,390			6,570			11,470			16,100			8,890
Long-term debt		128,277			128,277			120,646			120,646			121,178
Subordinated debt		19,741			19,731			19,722			19,712			19,702
Securities pending settlement		2,513			102			–			–			2,253
Other liabilities		20,697			23,104			25,855			26,960			25,765
TOTAL LIABILITIES		2,399,824			2,349,593			2,321,440			2,327,162			2,354,091

TOTAL SHAREHOLDERS’ EQUITY		240,655			236,477			235,796			237,409			230,914
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,640,479		$	2,586,070		$	2,557,236		$	2,564,571		$	2,585,005

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Other Data (Dollars in thousands, except per share data) (Unaudited)

	Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Shares outstanding at end of period		21,113,408			21,357,849			21,627,690			21,666,807			21,927,242

Operating results:
Net interest income	$	14,728		$	14,470		$	15,346		$	16,176		$	16,383
Provision for (reversal of) credit losses		941			(294	)		(550	)		486			354
Non-interest income		3,141			3,834			2,674			2,714			3,612
Non-interest expense		14,406			14,314			14,782			14,785			14,118
Income before income provision for income taxes		2,522			4,284			3,788			3,619			5,523
Income tax provision		618			771			827			1,108			1,033
Net income		1,904			3,513			2,961			2,511			4,490

Performance Ratios:
Net interest margin		2.40	%		2.42	%		2.57	%		2.64	%		2.70	%
Net interest margin, on a fully tax-equivalent basis		2.42	%		2.44	%		2.59	%		2.66	%		2.72	%
Interest rate spread		1.60	%		1.66	%		1.85	%		1.96	%		2.07	%
Interest rate spread, on a fully tax-equivalent basis		1.62	%		1.67	%		1.86	%		1.98	%		2.09	%
Return on average assets		0.29	%		0.55	%		0.47	%		0.39	%		0.70	%
Return on average equity		3.19	%		6.03	%		5.04	%		4.31	%		7.60	%
Efficiency ratio (GAAP)		80.62	%		78.20	%		82.03	%		78.27	%		70.61	%
Adjusted efficiency ratio (non-GAAP) ⁽¹⁾		80.67	%		82.68	%		82.04	%		78.26	%		74.38	%

Per Common Share Data:
Basic earnings per share	$	0.09		$	0.17		$	0.14		$	0.12		$	0.21
Earnings per diluted share		0.09			0.17			0.14			0.12			0.21
Cash dividend declared		0.07			0.07			0.07			0.07			0.07
Book value per share		11.40			11.07			10.90			10.96			10.53
Tangible book value per share (non-GAAP) ⁽²⁾		10.73			10.41			10.25			10.30			9.87

Asset Quality:
30-89 day delinquent loans	$	3,059		$	3,270		$	3,000		$	4,605		$	4,097
90 days or more delinquent loans		1,253			2,280			1,716			1,394			1,527
Total delinquent loans		4,312			5,550			4,716			5,999			5,624
Total delinquent loans as a percentage of total loans		0.21	%		0.27	%		0.23	%		0.30	%		0.28	%
Nonperforming loans	$	4,873		$	5,845		$	5,837		$	6,421		$	6,290
Nonperforming loans as a percentage of total loans		0.24	%		0.29	%		0.29	%		0.32	%		0.31	%
Nonperforming assets as a percentage of total assets		0.18	%		0.23	%		0.23	%		0.25	%		0.24	%
Allowance for credit losses as a percentage of nonperforming loans		409.50	%		332.66	%		340.65	%		315.64	%		317.62	%
Allowance for credit losses as a percentage of total loans		0.97	%		0.96	%		0.98	%		1.00	%		0.99	%
Net loan charge-offs (recoveries)	$	98		$	10		$	(67	)	$	136		$	78
Net loan charge-offs (recoveries) as a percentage of average loans		0.00	%		0.00	%		0.00	%		0.01	%		0.00	%

____________________________
(1) The adjusted efficiency ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gain on non-marketable equity investments, loss on disposal of premises and equipment, loss on defined benefit plan termination and gain on bank-owned life insurance death benefit.
(2) Tangible book value per share (non-GAAP) represents the value of the Company’s tangible assets divided by its current outstanding shares.

The following table sets forth the information relating to our average balances and net interest income for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023 and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

	Three Months Ended
	September 30, 2024								June 30, 2024							September 30, 2023
	Average						Average Yield/		Average					Average Yield/		Average					Average Yield/
	Balance		Interest				Cost⁽⁸⁾		Balance		Interest			Cost⁽⁸⁾		Balance		Interest			Cost⁽⁸⁾
	(Dollars in thousands)
ASSETS:
Interest-earning assets
Loans(1)(2)	$	2,038,593		$	25,253		4.93	%	$	2,017,127	$	24,454		4.88	%	$	2,007,267	$	23,568		4.66	%
Securities(2)		354,696			2,121		2.38			354,850		2,141		2.43			361,216		2,033		2.23
Other investments		15,904			189		4.73			14,328		148		4.15			12,155		166		5.42
Short-term investments(3)		32,043			396		4.92			14,328		173		4.86			22,349		251		4.46
Total interest-earning assets		2,441,236			27,959		4.56			2,400,633		26,916		4.51			2,402,987		26,018		4.30
Total non-interest-earning assets		153,585								156,701							156,503
Total assets	$	2,594,821							$	2,557,334						$	2,559,490

LIABILITIES AND EQUITY:
Interest-bearing liabilities
Interest-bearing checking accounts	$	131,133			271		0.82		$	131,449		253		0.77		$	144,792		269		0.74
Savings accounts		179,844			38		0.08			185,690		51		0.11			195,020		41		0.08
Money market accounts		621,340			3,172		2.03			622,062		2,930		1.89			656,066		2,488		1.50
Time deposit accounts		688,797			7,684		4.44			650,054		7,101		4.39			563,135		4,906		3.46
Total interest-bearing deposits		1,621,114			11,165		2.74			1,589,255		10,335		2.62			1,559,013		7,704		1.96
Borrowings		153,317			1,947		5.05			160,484		1,997		5.00			149,507		1,814		4.81
Interest-bearing liabilities		1,774,431			13,112		2.94			1,749,739		12,332		2.83			1,708,520		9,518		2.21
Non-interest-bearing deposits		559,224								548,781							591,933
Other non-interest-bearing liabilities		23,466								24,453							24,504
Total non-interest-bearing liabilities		582,690								573,234							616,437
Total liabilities		2,357,121								2,322,973							2,324,957
Total equity		237,700								234,361							234,533
Total liabilities and equity	$	2,594,821							$	2,557,334						$	2,559,490
Less: Tax-equivalent adjustment(2)					(119	)						(114	)						(117	)
Net interest and dividend income				$	14,728						$	14,470						$	16,383
Net interest rate spread(4)							1.60	%						1.66	%						2.07	%
Net interest rate spread, on a tax-equivalent basis(5)							1.62	%						1.67	%						2.09	%
Net interest margin(6)							2.40	%						2.42	%						2.70	%
Net interest margin, on a tax-equivalent basis(7)							2.42	%						2.44	%						2.72	%
Ratio of average interest-earning assets to average interest-bearing liabilities							137.58	%						137.20	%						140.65	%

The following tables set forth the information relating to our average balances and net interest income for the nine months ended September 30, 2024 and 2023 and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

	Nine Months Ended September 30,
	2024							2023
	Average Balance		Interest			Average Yield/ Cost⁽⁸⁾		Average Balance		Interest			Average Yield/ Cost⁽⁸⁾

	(Dollars in thousands)
ASSETS:
Interest-earning assets
Loans(1)(2)	$	2,025,858	$	74,058		4.88	%	$	2,002,485	$	67,586		4.51	%
Securities(2)		356,340		6,376		2.39			372,623		6,276		2.25
Other investments		14,248		473		4.43			12,528		418		4.46
Short-term investments(3)		18,634		682		4.89			12,922		424		4.39
Total interest-earning assets		2,415,080		81,589		4.51			2,400,558		74,704		4.16
Total non-interest-earning assets		154,894							154,525
Total assets	$	2,569,974						$	2,555,083

LIABILITIES AND EQUITY:
Interest-bearing liabilities
Interest-bearing checking accounts	$	132,708		759		0.76	%	$	142,716		780		0.73	%
Savings accounts		183,872		128		0.09			207,513		142		0.09
Money market accounts		623,216		8,689		1.86			711,173		6,813		1.28
Time deposit accounts		655,700		21,217		4.32			498,193		10,141		2.72
Total interest-bearing deposits		1,595,496		30,793		2.58			1,559,595		17,876		1.53
Short-term borrowings and long-term debt		158,183		5,909		4.99			130,796		4,739		4.84
Total interest-bearing liabilities		1,753,679		36,702		2.80			1,690,391		22,615		1.79
Non-interest-bearing deposits		555,253							607,338
Other non-interest-bearing liabilities		24,931							23,886
Total non-interest-bearing liabilities		580,184							631,224

Total liabilities		2,333,863							2,321,615
Total equity		236,111							233,468
Total liabilities and equity	$	2,569,974						$	2,555,083
Less: Tax-equivalent adjustment (2)				(343	)						(356	)
Net interest and dividend income			$	44,544						$	51,733
Net interest rate spread (4)						1.70	%						2.35	%
Net interest rate spread, on a tax-equivalent basis (5)						1.71	%						2.37	%
Net interest margin (6)						2.46	%						2.88	%
Net interest margin, on a tax-equivalent basis (7)						2.48	%						2.90	%
Ratio of average interest-earning assets to average interest-bearing liabilities						137.72	%						142.01	%

(1) Loans, including nonaccrual loans, are net of deferred loan origination costs and unadvanced funds.
(2) Loan and securities income are presented on a tax-equivalent basis using a tax rate of 21%. The tax-equivalent adjustment is deducted from tax-equivalent net interest and dividend income to agree to the amount reported on the consolidated statements of net income.
(3) Short-term investments include federal funds sold.
(4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5) Net interest rate spread, on a tax-equivalent basis, represents the difference between the tax-equivalent weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(6) Net interest margin represents net interest and dividend income as a percentage of average interest-earning assets.
(7) Net interest margin, on a tax-equivalent basis, represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets.
(8) Annualized.

Reconciliation of Non-GAAP to GAAP Financial Measures

The Company believes that certain non-GAAP financial measures provide information to investors that is useful in understanding its results of operations and financial condition. Because not all companies use the same calculation, this presentation may not be comparable to other similarly titled measures calculated by other companies. A reconciliation of these non-GAAP financial measures is provided below.

	For the quarter ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
	(Dollars in thousands)

Loan interest (no tax adjustment)	$	25,134		$	24,340		$	24,241		$	23,939		$	23,451
Tax-equivalent adjustment		119			114			110			113			117
Loan interest (tax-equivalent basis)	$	25,253		$	24,454		$	24,351		$	24,052		$	23,568

Net interest income (no tax adjustment)	$	14,728		$	14,470		$	15,346		$	16,176		$	16,383
Tax equivalent adjustment		119			114			110			113			117
Net interest income (tax-equivalent basis)	$	14,847		$	14,584		$	15,456		$	16,289		$	16,500

Average interest-earning assets	$	2,441,236		$	2,400,633		$	2,403,086		$	2,427,112		$	2,402,987
Net interest margin (no tax adjustment)		2.40	%		2.42	%		2.57	%		2.64	%		2.70	%
Net interest margin, tax-equivalent		2.42	%		2.44	%		2.59	%		2.66	%		2.72	%

Book Value per Share (GAAP)	$	11.40		$	11.07		$	10.90		$	10.96		$	10.53
Non-GAAP adjustments:
Goodwill		(0.59	)		(0.58	)		(0.58	)		(0.58	)		(0.57	)
Core deposit intangible		(0.08	)		(0.08	)		(0.07	)		(0.08	)		(0.09	)
Tangible Book Value per Share (non-GAAP)	$	10.73		$	10.41		$	10.25		$	10.30		$	9.87

	For the quarter ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
	(Dollars in thousands)

Efficiency Ratio:
Non-interest Expense (GAAP)	$	14,406		$	14,314		$	14,782		$	14,785		$	14,118

Net Interest Income (GAAP)	$	14,728		$	14,470		$	15,346		$	16,176		$	16,383

Non-interest Income (GAAP)	$	3,141		$	3,834		$	2,674		$	2,714		$	3,612
Non-GAAP adjustments:
Unrealized (gains) losses on marketable equity securities		(10	)		(4	)		(8	)		1			–
Gain on non-marketable equity investments		–			(987	)		–			–			(238	)
Loss on disposal of premises and equipment		–			–			6			–			3
Gain on bank-owned life insurance death benefit		–			–			–			–			(778	)
Non-interest Income for Adjusted Efficiency Ratio (non-GAAP)	$	3,131		$	2,843		$	2,672		$	2,715		$	2,599
Total Revenue for Adjusted Efficiency Ratio (non-GAAP)	$	17,859		$	17,313		$	18,018		$	18,891		$	18,982

Efficiency Ratio (GAAP)		80.62	%		78.20	%		82.03	%		78.27	%		70.61	%

Adjusted Efficiency Ratio (Non-interest Expense (GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP))		80.67	%		82.68	%		82.04	%		78.26	%		74.38	%

	For the nine months ended
	9/30/2024			9/30/2023
	(Dollars in thousands)

Loan income (no tax adjustment)	$	73,715		$	67,230
Tax-equivalent adjustment		343			356
Loan income (tax-equivalent basis)	$	74,058		$	67,586

Net interest income (no tax adjustment)	$	44,544		$	51,733
Tax equivalent adjustment		343			356
Net interest income (tax-equivalent basis)	$	44,887		$	52,089

Average interest-earning assets	$	2,415,080		$	2,400,558
Net interest margin (no tax adjustment)		2.46	%		2.88	%
Net interest margin, tax-equivalent		2.48	%		2.90	%

Adjusted Efficiency Ratio:
Non-interest Expense (GAAP)	$	43,502		$	43,565

Net Interest Income (GAAP)	$	44,544		$	51,733

Non-interest Income (GAAP)	$	9,649		$	8,183
Non-GAAP adjustments:
Unrealized gains on marketable equity securities		(22	)		–
Loss on disposal of premises and equipment, net		6			3
Gain on bank-owned life insurance		–			(778	)
Gain on non-marketable equity investments		(987	)		(590	)
Loss on defined benefit plan curtailment		–			1,143
Non-interest Income for Adjusted Efficiency Ratio (non-GAAP)	$	8,646		$	7,961
Total Revenue for Adjusted Efficiency Ratio (non-GAAP)	$	53,190		$	59,694

Efficiency Ratio (GAAP)		80.27	%		72.71	%

Adjusted Efficiency Ratio (Non-interest Expense (GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP))		81.79	%		72.98	%

For further information contact:
James C. Hagan, President and CEO
Guida R. Sajdak, Executive Vice President and CFO
Meghan Hibner, First Vice President and Investor Relations Officer
413-568-1911

The MIL Network –

January 25, 2025

MIL-OSI USA: RI Department of State to Host ‘Spooky State House’ on October 29

Source: US State of Rhode Island

PROVIDENCE, RI � Friendly frights, ghost stories, and lots of Halloween treats will soon return to the Rhode Island State House!

This year’s Spooky State House will take place on Tuesday, October 29. Trick-or-treaters are welcome to stop by the Rhode Island State House (82 Smith Street, Providence) between 5:30 p.m. and 7 p.m.

Those who dare to brave the halls of the Spooky State House will be greeted by decorations and treats from the offices of Secretary of State Gregg M. Amore, Governor Dan McKee, Lieutenant Governor Sabina Matos, Attorney General Peter F. Neronha, General Treasurer James A. Diossa, the Rhode Island Senate, and the Rhode Island House of Representatives.

Costumes are encouraged and admission is free. This is a family-friendly event; all ages are welcome. Attendees are encouraged to bring a non-perishable food item for the Rhode Island Community Food Bank.

More information is available through the Facebook event: https://www.facebook.com/share/nJ6hFxaVBNweY4XP/

RSVPs are not required.

###

MIL OSI USA News –

January 25, 2025

MIL-OSI: South Plains Financial, Inc. Reports Third Quarter 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

LUBBOCK, Texas, Oct. 23, 2024 (GLOBE NEWSWIRE) — South Plains Financial, Inc. (NASDAQ:SPFI) (“South Plains” or the “Company”), the parent company of City Bank (“City Bank” or the “Bank”), today reported its financial results for the quarter ended September 30, 2024.

Third Quarter 2024 Highlights

Net income for the third quarter of 2024 was $11.2 million, compared to $11.1 million for the second quarter of 2024 and $13.5 million for the third quarter of 2023.
Diluted earnings per share for the third quarter of 2024 was $0.66, compared to $0.66 for the second quarter of 2024 and $0.78 for the third quarter of 2023.
Average cost of deposits for the third quarter of 2024 was 247 basis points, compared to 243 basis points for the second quarter of 2024 and 207 basis points for the third quarter of 2023.
Net interest margin, calculated on a tax-equivalent basis, was 3.65% for the third quarter of 2024, compared to 3.63% for the second quarter of 2024 and 3.52% for the third quarter of 2023.
Nonperforming assets to total assets were 0.59% at September 30, 2024, compared to 0.57% at June 30, 2024 and 0.12% at September 30, 2023.
Return on average assets for the third quarter of 2024 was 1.05% annualized, compared to 1.07% annualized for the second quarter of 2024 and 1.27% annualized for the third quarter of 2023.
Tangible book value (non-GAAP) per share was $25.75 as of September 30, 2024, compared to $24.15 as of June 30, 2024 and $21.07 as of September 30, 2023.
The consolidated total risk-based capital ratio, Common Equity Tier 1 risk-based capital ratio, and Tier 1 leverage ratio at September 30, 2024 were 17.61%, 13.25%, and 11.76%, respectively. These ratios significantly exceeded the minimum regulatory levels necessary to be deemed “well-capitalized”.

Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “I’m pleased with our third quarter results, which I believe demonstrate that the Bank is performing at a high level. We remain well capitalized and focused on managing our loan portfolio as the credit environment continues to normalize. Against this backdrop, we are maintaining our credit discipline and not stretching to chase loan growth. We are also building liquidity as we expect the Federal Reserve to continue reducing their market interest rate to stimulate economic growth looking to the year ahead. Importantly, we are seeing a level of optimism from our customers that we have not seen over the last seven to eight quarters and our new business production pipeline is the strongest that it has been in more than two years. Looking forward, we remain confident in the credit profile of our loan portfolio and are cautiously optimistic that we will see loan growth accelerate in the quarters ahead. Additionally, we are beginning to see deposit cost pressures ease, which we expect will be supportive of our net interest margin as well as continued deposit growth.”

Results of Operations, Quarter Ended September 30, 2024

Net Interest Income

Net interest income was $37.3 million for the third quarter of 2024, compared to $35.9 million for the second quarter of 2024 and $35.7 million for the third quarter of 2023. Net interest margin, calculated on a tax-equivalent basis, was 3.65% for the third quarter of 2024, compared to 3.63% for the second quarter of 2024 and 3.52% for the third quarter of 2023. The average yield on loans was 6.68% for the third quarter of 2024, compared to 6.60% for the second quarter of 2024 and 6.10% for the third quarter of 2023. The average cost of deposits was 247 basis points for the third quarter of 2024, which is 4 basis points higher than the second quarter of 2024 and 40 basis points higher than the third quarter of 2023.

Interest income was $61.6 million for the third quarter of 2024, compared to $59.2 million for the second quarter of 2024 and $56.5 million for the third quarter of 2023. Interest income increased $2.4 million in the third quarter of 2024 from the second quarter of 2024, which was primarily comprised of an increase of $934 thousand in loan interest income and an increase of $1.5 million in interest income on other interest-earning assets. The growth in loan interest income was due to a rise of 8 basis points in the yield on loans, partially offset by a decrease in average loans of $12.7 million. The increase in interest income on other interest-earning assets was predominately a result of increased liquidity from growth in deposits and a net decrease in loans during the third quarter. Interest income increased $5.1 million in the third quarter of 2024 compared to the third quarter of 2023. This increase was primarily due to an increase of average loans of $64.2 million and higher market interest rates during the period, resulting in growth of $5.3 million in loan interest income.

Interest expense was $24.3 million for the third quarter of 2024, compared to $23.3 million for the second quarter of 2024 and $20.8 million for the third quarter of 2023. Interest expense increased $1.0 million compared to the second quarter of 2024 and increased $3.5 million compared to the third quarter of 2023. The $1.0 million increase was primarily as a result of growth in average interest-bearing deposits of $64.4 million. The $3.5 million increase was primarily as a result of growth in average interest-bearing deposits of $111.2 million and a 43 basis point increase in the cost of interest-bearing liabilities.

Noninterest Income and Noninterest Expense

Noninterest income was $10.6 million for the third quarter of 2024, compared to $12.7 million for the second quarter of 2024 and $12.3 million for the third quarter of 2023. The decrease from the second quarter of 2024 was primarily due to a decrease of $1.5 million in mortgage banking revenues, mainly from a decrease of $1.4 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value declined in the third quarter of 2024. Additionally, there was a decrease of $750 thousand in bank card services and interchange revenue mainly as a result of incentives received during the second quarter of 2024 and a decrease of $315 thousand in income from investments in Small Business Investment Companies. The decrease in noninterest income for the third quarter of 2024 as compared to the third quarter of 2023 was primarily due to a decrease of $2.7 million in mortgage banking activities revenue mainly from a decline of $2.7 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value declined in the third quarter of 2024. Further, there was approximately $700 thousand in insurance proceeds received for property damage in the third quarter of 2024, which affected other noninterest income in both period comparisons.

Noninterest expense was $33.1 million for the third quarter of 2024, compared to $32.6 million for the second quarter of 2024 and $31.5 million for the third quarter of 2023. The $556 thousand increase from the second quarter of 2024 was largely the result of a rise of $226 thousand in net occupancy expenses, primarily from increased utilities, growth of $155 thousand in marketing and development expenses, and smaller increases in other noninterest expenses – including operational and fraud losses, losses on disposal of fixed assets, settlements, and charitable donations. These increases were partially offset by a decrease of $432 thousand in personnel costs as there was an additional $350 thousand in accrued expense in the second quarter related to incentive-based compensation. The increase in noninterest expense for the third quarter of 2024 as compared to the third quarter of 2023 was largely the result of an increase of $274 thousand in IT and data services related to the Company’s cloud project, an increase of $247 thousand in professional services mainly from legal expenses, and smaller increases in other noninterest expenses – including losses on disposal of fixed assets, settlements, and charitable donations.

Loan Portfolio and Composition

Loans held for investment were $3.04 billion as of September 30, 2024, compared to $3.09 billion as of June 30, 2024 and $2.99 billion as of September 30, 2023. The $56.9 million, or 1.8%, decrease during the third quarter of 2024 as compared to the second quarter of 2024 occurred primarily as a result of the expected payoff of a $16 million short-term bridge note that was originated in the second quarter of 2024, the early payoff of a $17 million residential land development loan, and an $18 million decrease in consumer auto loans. As of September 30, 2024, loans held for investment increased $43.8 million, or 1.5%, from September 30, 2023, primarily attributable to strong organic loan growth, occurring mainly in multi-family property loans, direct-energy loans, and single-family property loans, partially offset by decreases in consumer auto loans and construction, land, and development loans.

Deposits and Borrowings

Deposits totaled $3.72 billion as of September 30, 2024, compared to $3.62 billion as of June 30, 2024 and $3.62 billion as of September 30, 2023. Deposits increased by $94.8 million, or 2.6%, in the third quarter of 2024 from June 30, 2024. As of September 30, 2024, deposits increased $98.7 million, or 2.7%, from September 30, 2023. Noninterest-bearing deposits were $998.5 million as of September 30, 2024, compared to $951.6 million as of June 30, 2024 and $1.05 billion as of September 30, 2023. Noninterest-bearing deposits represented 26.9% of total deposits as of September 30, 2024. The quarterly change in total deposits was mainly due to organic growth in both noninterest-bearing and interest-bearing deposits. The year-over-year increase in total deposits was primarily the result of organic growth in interest-bearing deposits, given the overall focus in the banking industry on improving liquidity, partially offset by a decline in noninterest-bearing deposits.

Asset Quality

The Company recorded a provision for credit losses in the third quarter of 2024 of $495 thousand, compared to $1.8 million in the second quarter of 2024 and a negative provision of $700 thousand in the third quarter of 2023. The provision during the third quarter of 2024 was largely attributable to net charge-off activity, partially offset by decreased loan balances.

The ratio of allowance for credit losses to loans held for investment was 1.41% as of September 30, 2024, compared to 1.40% as of June 30, 2024 and 1.41% as of September 30, 2023.

The ratio of nonperforming assets to total assets was 0.59% as of September 30, 2024, compared to 0.57% as of June 30, 2024 and 0.12% as of September 30, 2023. The previously disclosed $20.0 million multi-family property credit, which was placed on nonaccrual status in the second quarter of 2024 after the maturity date was accelerated, was subsequently modified during the third quarter. The modification included more stringent credit metrics. Although the loan remains in nonaccrual status, the loan continues to pay as agreed and is showing improving credit trends. Annualized net charge-offs were 0.11% for the third quarter of 2024, compared to 0.10% for the second quarter of 2024 and 0.05% for the third quarter of 2023.

Capital

Book value per share increased to $27.04 at September 30, 2024, compared to $25.45 at June 30, 2024. The change was primarily driven by $8.9 million of net income after dividends paid and an increase in accumulated other comprehensive income (“AOCI”) of $16.6 million. The increase in AOCI was attributed to the after-tax increase in fair value of our available for sale securities, net of fair value hedges, as a result of decreases in long-term market interest rates during the period. Tangible common equity to tangible assets (non-GAAP) increased 33 basis points to 9.77% in the third quarter of 2024.

Conference Call

South Plains will host a conference call to discuss its third quarter 2024 financial results today, October 23, 2024, at 5:00 p.m., Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-407-9716 (international callers please dial 1-201-493-6779) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call and conference materials will be available on the Company’s website at https://www.spfi.bank/news-events/events.

A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed on the investor section of the Company’s website as well as by dialing 1-844-512-2921 (international callers please dial 1-412-317-6671). The pin to access the telephone replay is 13749147. The replay will be available until November 6, 2024.

About South Plains Financial, Inc.

South Plains is the bank holding company for City Bank, a Texas state-chartered bank headquartered in Lubbock, Texas. City Bank is one of the largest independent banks in West Texas and has additional banking operations in the Dallas, El Paso, Greater Houston, the Permian Basin, and College Station, Texas markets, and the Ruidoso, New Mexico market. South Plains provides a wide range of commercial and consumer financial services to small and medium-sized businesses and individuals in its market areas. Its principal business activities include commercial and retail banking, along with investment, trust and mortgage services. Please visit https://www.spfi.bank for more information.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Pre-Tax, Pre-Provision Income. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures.

We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies.

A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release.

Available Information

The Company routinely posts important information for investors on its web site (under www.spfi.bank and, more specifically, under the News & Events tab at www.spfi.bank/news-events/press-releases). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD (Fair Disclosure) promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, investors should monitor the Company’s web site, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.

The information contained on, or that may be accessed through, the Company’s web site is not incorporated by reference into, and is not a part of, this document.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect South Plains’ current views with respect to future events and South Plains’ financial performance. Any statements about South Plains’ expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. South Plains cautions that the forward-looking statements in this press release are based largely on South Plains’ expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond South Plains’ control. Factors that could cause such changes include, but are not limited to, the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from bank failures and any continuation of uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits in our market areas and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to the current elevated interest rate environment or future reductions in interest rates and a resulting decline in net interest income; the resurgence of elevated levels of inflation or inflationary pressures, in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt, deficit and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events; the impact of changes in U.S. presidential administrations or Congress; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential increased regulatory requirements and costs related to the transition and physical impacts of climate change; current or future litigation, regulatory examinations or other legal and/or regulatory actions; and changes in applicable laws and regulations. Additional information regarding these risks and uncertainties to which South Plains’ business and future financial performance are subject is contained in South Plains’ most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of such documents, and other documents South Plains files or furnishes with the SEC from time to time, which are available on the SEC’s website, www.sec.gov. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements due to additional risks and uncertainties of which South Plains is not currently aware or which it does not currently view as, but in the future may become, material to its business or operating results. Due to these and other possible uncertainties and risks, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Any forward-looking statements presented herein are made only as of the date of this press release, and South Plains does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, new information, the occurrence of unanticipated events, or otherwise, except as required by applicable law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.

Contact:	Mikella Newsom, Chief Risk Officer and Secretary
	(866) 771-3347
	investors@city.bank

Source: South Plains Financial, Inc.


South Plains Financial, Inc. Consolidated Financial Highlights – (Unaudited) (Dollars in thousands, except share data)

	As of and for the quarter ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Selected Income Statement Data:
Interest income	$	61,640		$	59,208		$	58,727		$	57,236		$	56,528
Interest expense		24,346			23,320			23,359			22,074			20,839
Net interest income		37,294			35,888			35,368			35,162			35,689
Provision for credit losses		495			1,775			830			600			(700	)
Noninterest income		10,635			12,709			11,409			9,146			12,277
Noninterest expense		33,128			32,572			31,930			30,597			31,489
Income tax expense		3,094			3,116			3,143			2,787			3,683
Net income		11,212			11,134			10,874			10,324			13,494
Per Share Data (Common Stock):
Net earnings, basic	$	0.68		$	0.68		$	0.66		$	0.63		$	0.80
Net earnings, diluted		0.66			0.66			0.64			0.61			0.78
Cash dividends declared and paid		0.14			0.14			0.13			0.13			0.13
Book value		27.04			25.45			24.87			24.80			22.39
Tangible book value (non-GAAP)		25.75			24.15			23.56			23.47			21.07
Weighted average shares outstanding, basic		16,386,079			16,425,360			16,429,919			16,443,908			16,842,594
Weighted average shares outstanding, dilutive		17,056,959			16,932,077			16,938,857			17,008,892			17,354,182
Shares outstanding at end of period		16,386,627			16,424,021			16,431,755			16,417,099			16,600,442
Selected Period End Balance Sheet Data:
Cash and cash equivalents	$	471,167		$	298,006		$	371,939		$	330,158		$	352,424
Investment securities		606,889			591,031			599,869			622,762			584,969
Total loans held for investment		3,037,375			3,094,273			3,011,799			3,014,153			2,993,563
Allowance for credit losses		42,886			43,173			42,174			42,356			42,075
Total assets		4,337,659			4,220,936			4,218,993			4,204,793			4,186,440
Interest-bearing deposits		2,720,880			2,672,948			2,664,397			2,651,952			2,574,361
Noninterest-bearing deposits		998,480			951,565			974,174			974,201			1,046,253
Total deposits		3,719,360			3,624,513			3,638,571			3,626,153			3,620,614
Borrowings		110,307			110,261			110,214			110,168			122,493
Total stockholders’ equity		443,122			417,985			408,712			407,114			371,716
Summary Performance Ratios:
Return on average assets (annualized)		1.05	%		1.07	%		1.04	%		0.99	%		1.27	%
Return on average equity (annualized)		10.36	%		10.83	%		10.72	%		10.52	%		14.01	%
Net interest margin ⁽¹⁾		3.65	%		3.63	%		3.56	%		3.52	%		3.52	%
Yield on loans		6.68	%		6.60	%		6.53	%		6.29	%		6.10	%
Cost of interest-bearing deposits		3.36	%		3.33	%		3.27	%		3.14	%		2.93	%
Efficiency ratio		68.80	%		66.72	%		67.94	%		68.71	%		65.34	%
Summary Credit Quality Data:
Nonperforming loans	$	24,693		$	23,452		$	3,380		$	5,178		$	4,783
Nonperforming loans to total loans held for investment		0.81	%		0.76	%		0.11	%		0.17	%		0.16	%
Other real estate owned		973			755			862			912			242
Nonperforming assets to total assets		0.59	%		0.57	%		0.10	%		0.14	%		0.12	%
Allowance for credit losses to total loans held for investment		1.41	%		1.40	%		1.40	%		1.41	%		1.41	%
Net charge-offs to average loans outstanding (annualized)		0.11	%		0.10	%		0.13	%		0.08	%		0.05	%

	As of and for the quarter ended
	September 30 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Capital Ratios:
Total stockholders’ equity to total assets		10.22	%		9.90	%		9.69	%		9.68	%		8.88	%
Tangible common equity to tangible assets (non-GAAP)		9.77	%		9.44	%		9.22	%		9.21	%		8.40	%
Common equity tier 1 to risk-weighted assets		13.25	%		12.61	%		12.67	%		12.41	%		12.19	%
Tier 1 capital to average assets		11.76	%		11.81	%		11.51	%		11.33	%		11.13	%
Total capital to risk-weighted assets		17.61	%		16.86	%		17.00	%		16.74	%		16.82	%

(1) Net interest margin is calculated as the annual net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.


South Plains Financial, Inc. Average Balances and Yields – (Unaudited) (Dollars in thousands)

	For the Three Months Ended
	September 30, 2024							September 30, 2023

	Average Balance		Interest		Yield/Rate			Average Balance		Interest		Yield/Rate
Assets
Loans	$	3,069,900	$	51,513		6.68	%	$	3,005,699	$	46,250		6.10	%
Debt securities – taxable		524,641		5,300		4.02	%		561,068		5,422		3.83	%
Debt securities – nontaxable		154,806		1,016		2.61	%		159,577		1,054		2.62	%
Other interest-bearing assets		336,887		4,032		4.76	%		325,201		4,031		4.92	%

Total interest-earning assets		4,086,234		61,861		6.02	%		4,051,545		56,757		5.56	%
Noninterest-earning assets		172,922							177,216

Total assets	$	4,259,156						$	4,228,761

Liabilities & stockholders’ equity
NOW, Savings, MMDA’s	$	2,247,299		18,143		3.21	%	$	2,223,014		16,061		2.87	%
Time deposits		431,307		4,510		4.16	%		344,395		2,904		3.35	%
Short-term borrowings		3		–		0.00	%		3		–		0.00	%
Notes payable & other long-term borrowings		–		–		0.00	%		–		–		0.00	%
Subordinated debt		63,891		835		5.20	%		76,077		1,012		5.28	%
Junior subordinated deferrable interest debentures		46,393		858		7.36	%		46,393		862		7.37	%

Total interest-bearing liabilities		2,788,893		24,346		3.47	%		2,689,882		20,839		3.07	%
Demand deposits		976,048							1,071,175
Other liabilities		63,661							85,713
Stockholders’ equity		430,554							381,991

Total liabilities & stockholders’ equity	$	4,259,156						$	4,228,761

Net interest income			$	37,515						$	35,918
Net interest margin ⁽²⁾						3.65	%						3.52	%

(1) Average loan balances include nonaccrual loans and loans held for sale.
(2) Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.


South Plains Financial, Inc. Average Balances and Yields – (Unaudited) (Dollars in thousands)

	For the Nine Months Ended
	September 30, 2024							September 30, 2023

	Average Balance		Interest		Yield/Rate			Average Balance		Interest		Yield/Rate
Assets
Loans	$	3,055,679	$	151,031		6.60	%	$	2,892,887	$	128,724		5.95	%
Debt securities – taxable		537,425		16,096		4.00	%		574,159		16,027		3.73	%
Debt securities – nontaxable		155,489		3,062		2.63	%		194,492		3,870		2.66	%
Other interest-bearing assets		287,192		10,052		4.68	%		212,384		7,010		4.41	%

Total interest-earning assets		4,035,785		180,241		5.97	%		3,873,922		155,631		5.37	%
Noninterest-earning assets		176,230							183,149

Total assets	$	4,212,015						$	4,057,071

Liabilities & stockholders’ equity
NOW, Savings, MMDA’s	$	2,251,569		53,792		3.19	%	$	2,090,250		38,529		2.46	%
Time deposits		399,646		12,153		4.06	%		309,250		6,239		2.70	%
Short-term borrowings		3		–		0.00	%		111		5		6.02	%
Notes payable & other long-term borrowings		–		–		0.00	%		–		–		0.00	%
Subordinated debt		63,845		2,505		5.24	%		76,031		3,037		5.34	%
Junior subordinated deferrable interest debentures		46,393		2,575		7.41	%		46,393		2,402		6.92	%

Total interest-bearing liabilities		2,761,456		71,025		3.44	%		2,522,035		50,212		2.66	%
Demand deposits		964,829							1,085,345
Other liabilities		68,458							74,865
Stockholders’ equity		417,272							374,826

Total liabilities & stockholders’ equity	$	4,212,015						$	4,057,071

Net interest income			$	109,216						$	105,419
Net interest margin ⁽²⁾						3.61	%						3.64	%

(1) Average loan balances include nonaccrual loans and loans held for sale.
(2) Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.


South Plains Financial, Inc. Consolidated Balance Sheets (Unaudited) (Dollars in thousands)

	As of
	September 30, 2024			December 31, 2023

Assets
Cash and due from banks	$	60,863		$	62,821
Interest-bearing deposits in banks		410,304			267,337
Securities available for sale		606,889			622,762
Loans held for sale		11,389			14,499
Loans held for investment		3,037,375			3,014,153
Less: Allowance for credit losses		(42,886	)		(42,356	)
Net loans held for investment		2,994,489			2,971,797
Premises and equipment, net		53,323			55,070
Goodwill		19,315			19,315
Intangible assets		1,882			2,429
Mortgage servicing rights		24,573			26,569
Other assets		154,632			162,194
Total assets	$	4,337,659		$	4,204,793

Liabilities and Stockholders’ Equity
Noninterest-bearing deposits	$	998,480		$	974,201
Interest-bearing deposits		2,720,880			2,651,952
Total deposits		3,719,360			3,626,153
Subordinated debt		63,914			63,775
Junior subordinated deferrable interest debentures		46,393			46,393
Other liabilities		64,870			61,358
Total liabilities		3,894,537			3,797,679
Stockholders’ Equity
Common stock		16,386			16,417
Additional paid-in capital		97,367			97,107
Retained earnings		371,782			345,264
Accumulated other comprehensive income (loss)		(42,413	)		(51,674	)
Total stockholders’ equity		443,122			407,114
Total liabilities and stockholders’ equity	$	4,337,659		$	4,204,793


South Plains Financial, Inc. Consolidated Statements of Income (Unaudited) (Dollars in thousands)

	Three Months Ended					Nine Months Ended
	September 30, 2024		September 30, 2023			September 30, 2024		September 30, 2023

Interest income:
Loans, including fees	$	51,505	$	46,242		$	151,008	$	128,703
Other		10,135		10,286			28,567		26,094
Total interest income		61,640		56,528			179,575		154,797
Interest expense:
Deposits		22,653		18,965			65,945		44,768
Subordinated debt		835		1,012			2,505		3,037
Junior subordinated deferrable interest debentures		858		862			2,575		2,402
Other		–		–			–		5
Total interest expense		24,346		20,839			71,025		50,212
Net interest income		37,294		35,689			108,550		104,585
Provision for credit losses		495		(700	)		3,100		4,010
Net interest income after provision for credit losses		36,799		36,389			105,450		100,575
Noninterest income:
Service charges on deposits		2,023		1,840			5,785		5,286
Income from insurance activities		28		30			92		1,478
Mortgage banking activities		1,890		4,602			9,232		12,146
Bank card services and interchange fees		3,302		3,157			10,415		10,156
Gain on sale of subsidiary		—		290			—		33,778
Other		3,392		2,358			9,229		7,236
Total noninterest income		10,635		12,277			34,753		70,080
Noninterest expense:
Salaries and employee benefits		18,767		18,709			56,954		61,400
Net occupancy expense		4,255		4,111			12,204		12,246
Professional services		1,807		1,560			5,028		4,924
Marketing and development		1,015		853			2,629		2,573
Other		7,284		6,256			20,815		23,206
Total noninterest expense		33,128		31,489			97,630		104,349
Income before income taxes		14,306		17,177			42,573		66,306
Income tax expense		3,094		3,683			9,353		13,885
Net income	$	11,212	$	13,494		$	33,220	$	52,421


South Plains Financial, Inc. Loan Composition (Unaudited) (Dollars in thousands)

	As of
	September 30, 2024		December 31, 2023

Loans:
Commercial Real Estate	$	1,120,448	$	1,081,056
Commercial – Specialized		406,255		372,376
Commercial – General		526,448		517,361
Consumer:
1-4 Family Residential		562,401		534,731
Auto Loans		253,509		305,271
Other Consumer		65,789		74,168
Construction		102,525		129,190
Total loans held for investment	$	3,037,375	$	3,014,153


South Plains Financial, Inc. Deposit Composition (Unaudited) (Dollars in thousands)

	As of
	September 30, 2024		December 31, 2023

Deposits:
Noninterest-bearing deposits	$	998,480	$	974,201
NOW & other transaction accounts		496,176		562,066
MMDA & other savings		1,780,337		1,722,170
Time deposits		444,367		367,716
Total deposits	$	3,719,360	$	3,626,153


South Plains Financial, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in thousands)

	For the quarter ended
	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Pre-tax, pre-provision income
Net income	$	11,212	$	11,134	$	10,874	$	10,324	$	13,494
Income tax expense		3,094		3,116		3,143		2,787		3,683
Provision for credit losses		495		1,775		830		600		(700	)
Pre-tax, pre-provision income	$	14,801	$	16,025	$	14,847	$	13,711	$	16,477

Efficiency Ratio
Noninterest expense	$	33,128		$	32,572		$	31,930		$	30,597		$	31,489

Net interest income		37,294			35,888			35,368			35,162			35,689
Tax equivalent yield adjustment		221			223			223			225			229
Noninterest income		10,635			12,709			11,409			9,146			12,277
Total income		48,150			48,820			47,000			44,533			48,195

Efficiency ratio		68.80	%		66.72	%		67.94	%		68.71	%		65.34	%

Noninterest expense	$	33,128		$	32,572		$	31,930		$	30,597		$	31,489
Less: Subsidiary transaction and related expenses		—			—			—			—			—
Less: net loss on sale of securities		—			—			—			—			—
Adjusted noninterest expense		33,128			32,572			31,930			30,597			31,489

Total income		48,150			48,820			47,000			44,533			48,195
Less: gain on sale of subsidiary		—			—			—			—			(290	)
Adjusted total income		48,150			48,820			47,000			44,533			47,905

Adjusted efficiency ratio		68.80	%		66.72	%		67.94	%		68.71	%		65.73	%

	As of
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Tangible common equity
Total common stockholders’ equity	$	443,122		$	417,985		$	408,712		$	407,114		$	371,716
Less: goodwill and other intangibles		(21,197	)		(21,379	)		(21,562	)		(21,744	)		(21,936	)

Tangible common equity	$	421,925		$	396,606		$	387,150		$	385,370		$	349,780

Tangible assets
Total assets	$	4,337,659		$	4,220,936		$	4,218,993		$	4,204,793		$	4,186,440
Less: goodwill and other intangibles		(21,197	)		(21,379	)		(21,562	)		(21,744	)		(21,936	)

Tangible assets	$	4,316,462		$	4,199,557		$	4,197,431		$	4,183,049		$	4,164,504

Shares outstanding		16,386,627			16,424,021			16,431,755			16,417,099			16,600,442

Total stockholders’ equity to total assets		10.22	%		9.90	%		9.69	%		9.68	%		8.88	%
Tangible common equity to tangible assets		9.77	%		9.44	%		9.22	%		9.21	%		8.40	%
Book value per share	$	27.04		$	25.45		$	24.87		$	24.80		$	22.39
Tangible book value per share	$	25.75		$	24.15		$	23.56		$	23.47		$	21.07

The MIL Network –

January 25, 2025

MIL-OSI: Eagle Bancorp, Inc. Announces Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

BETHESDA, Md., Oct. 23, 2024 (GLOBE NEWSWIRE) — Eagle Bancorp, Inc. (“Eagle”, the “Company”) (NASDAQ: EGBN), the Bethesda-based holding company for EagleBank, one of the largest community banks in the Washington D.C. area, reported its unaudited results for the third quarter ended September 30, 2024.

Eagle reported net income of $21.8 million or $0.72 per share for the third quarter 2024, compared to a net loss of $83.8 million during the second quarter in which the Company recorded a $104.2 million impairment in the value of goodwill. Operating net income¹ in the second quarter, adjusted to exclude the impairment charge on goodwill, was $20.4 million or $0.67 per share per diluted share. Pre-provision net revenue (“PPNR”)¹ in the third quarter was $35.2 million compared to a pre-provision net loss of $69.8 million for the prior quarter, or $34.4 million of PPNR when adjusted to exclude the impairment charge on goodwill¹.

The $1.4 million increase in operating net income¹ over the prior quarter is attributed to a positive variance of $2.2 million related to the change in provision for unfunded commitments; $1.6 million increase in non-interest income; and a $490 thousand increase in net interest income, offset by a $1.3 million increase in operating non-interest expense, adjusted to exclude the impairment charge on goodwill, and a $1.1 million increase in provision for credit losses.

“We continue to strategically position the Company for future growth as evidenced by actions taken during the quarter with the refinancing of our maturing subordinated debt and the recalibration of our common dividend strategy,” said Susan G. Riel, President and Chief Executive Officer of the Company. “We announced the addition of Evelyn Lee to our senior leadership as our Chief Lending Officer for our commercial lending team. As a 25 year banker in the Washington D.C. market, I am excited about accomplishing our strategic goal of continuing to build out our commercial banker group and pursuing diversification of the loan portfolio and growing our relationship deposits,” added Ms. Riel.

Eric R. Newell, Chief Financial Officer of the Company said, “Raising senior debt in the third quarter demonstrates the confidence debt investors have in our vision and the future of the Company. Operating performance was stable from last quarter evidenced by operating net income¹ increasing $1.4 million to $21.8 million in the third quarter. We continued to build our reserve for credit losses, with coverage as a percentage of total held for investment loans at 1.40% increasing 7 basis points from last quarter. Common equity tier one capital increased to 14.5% and our tangible common equity¹ ratio exceeds 10%.”

Ms. Riel added, “I thank all of our employees for their hard work and their commitment to a culture of respect, diversity and inclusion in both the workplace and the communities we serve.”

Third Quarter 2024 Highlights

The Company repaid $70 million of maturing subordinated debt and issued $77.7 million of 10% unsecured senior debt maturing September 30, 2029.
During the quarter, the Company announced a recalibration of the common stock dividend to $0.165 per share from $0.45 per share in the second quarter an action estimated to retain an additional $32 million of capital annually to meet growth and investment objectives.
The ACL as a percentage of total loans held for investment was 1.40% at quarter-end; up from 1.33% at the prior quarter-end. Performing office coverage² was 4.55% at quarter-end; as compared to 4.05% at the prior quarter-end.
Nonperforming assets increased $38.2 million to $137.1 million as of September 30, 2024 and were 1.22% of total assets compared to 0.88% as of June 30, 2024. Inflows to non-performing loans in the quarter totaled $45.5 million offset by $9 million of outflows, of which $5 million was the loan held for sale at June 30, 2024 and an increase of other real estate owned of $2.0 million. The inflows were predominantly associated with $27.3 million in mixed use land loans and $17.9 million in an assisted living facility loan.
Substandard loans declined $17.0 million to $391.3 million and special mention loans increased $57.1 million to $365.0 million at September 30, 2024.
Net charge-offs for the third quarter were 0.26% compared to 0.11% for the second quarter 2024. Of the total $5.3 million of net charge offs in the quarter, $3.8 million is associated with a senior living property that has not stabilized.
The net interest margin (“NIM”) decreased slightly to 2.37% for the third quarter 2024, compared to 2.40% for the prior quarter, primarily due to continued decline in average non-interest bearing deposits. Net interest income increased $490 thousand from the second quarter to $71.8 million in the third quarter.
At quarter-end, the common equity ratio, tangible common equity ratio¹, and common equity tier 1 capital (to risk-weighted assets) ratio were 10.86%, 10.86%, and 14.54%, respectively.
Total estimated insured deposits at quarter-end were $6.4 billion, or 74.5% of deposits, stable from the second quarter total of 72.5% of deposits.
Total on-balance sheet liquidity and available capacity was $4.6 billion at quarter-end compared to $4.0 billion at June 30, 2024.

Income Statement

Net interest income was $71.8 million for the third quarter 2024, compared to $71.4 million for the prior quarter. The increase in net interest income was primarily driven by an increase in the average balances of deposits held with other banks and average loans partially offset by higher average interest-bearing deposits and higher rates paid on those deposits in the third quarter from the prior quarter.
Provision for credit losses was $10.1 million for the third quarter 2024, compared to $9.0 million for the prior quarter. The increase in the provision quarter over quarter reflects higher net charge-offs in the third quarter from the prior quarter. Reserve for unfunded commitments was a reversal of $1.6 million due to lower unfunded commitments in our construction portfolio. This compared to a reserve for unfunded commitments in the prior quarter of $0.6 million.
Noninterest income was $6.95 million for the third quarter 2024, compared to $5.33 million for the prior quarter. The primary driver for the increase was higher swap fee income.
Noninterest expense was $43.6 million for the third quarter 2024, compared to $146.5 million for the prior quarter. The decrease over the comparative quarters was primarily due to a goodwill impairment charge of $104.2 million in the second quarter 2024. When excluding the goodwill impairment charge, the increase quarter over quarter was associated with increased FDIC insurance expense.

Loans and Funding

Total loans were $8.0 billion at September 30, 2024, down 0.4% from the prior quarter-end. The decrease in total loans was driven by a reduction in commercial loans and income producing commercial real estate loans from the prior quarter-end, partially offset by increased fundings of ongoing construction projects for commercial and residential properties.
At September 30, 2024, income-producing commercial real estate loans secured by office properties other than owner-occupied properties were 10.8% of the total loan portfolio, down from 11.3% at the prior quarter-end.

Total deposits at quarter-end were $8.5 billion, up $273.5 million, or 3.3%, from the prior quarter-end. The increase was primarily attributable to an increase in time deposits from the company’s digital acquisition channel. Period end deposits have increased $165 million when compared to prior year comparable period end of September 30, 2023.
Other short-term borrowings were $1.2 billion at September 30, 2024, down 25.3% from the prior quarter-end as maturing FHLB borrowings were paid down with increased cash from deposits.

Asset Quality

Allowance for credit losses was 1.40% of total loans held for investment at September 30, 2024, compared to 1.33% at the prior quarter-end. Performing office coverage was 4.55% at quarter-end; as compared to 4.05% at the prior quarter-end.
Net charge-offs were $5.3 million for the quarter compared to $2.3 million in the second quarter of 2024.
Nonperforming assets were $137.1 million at September 30, 2024.
- NPAs as a percentage of assets were 1.22% at September 30, 2024, compared to 0.88% at the prior quarter-end. At September 30, 2024, other real estate owned consisted of four properties with an aggregate carrying value of $2.7 million. The increase in NPAs was predominantly associated with $27.3 million in mixed use land loans and $17.9 million in an assisted living facility loan.
- Loans 30-89 days past due were $56.3 million at September 30, 2024, compared to $8.4 million at the prior quarter-end. Of the total increase, $25 million was brought current subsequent to quarter-end.

Capital

Total shareholders’ equity was $1.2 billion at September 30, 2024, up 4.8% from the prior quarter-end. The increase in shareholders’ equity of $56.0 million was primarily due to increased valuations of available-for-sale securities and an increase in retained earnings.
Book value per share and Tangible book value per share³ was $40.61, up $1.86 from the prior quarter-end.

Additional financial information: The financial information that follows provides more detail on the Company’s financial performance for the three months ended September 30, 2024 as compared to the three months ended June 30, 2024 and September 30, 2023, as well as eight quarters of trend data. Persons wishing additional information should refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and other reports filed with the SEC.

About Eagle Bancorp: The Company is the holding company for EagleBank, which commenced operations in 1998. The Bank is headquartered in Bethesda, Maryland, and operates through twelve banking offices and four lending offices located in Suburban Maryland, Washington, D.C. and Northern Virginia. The Company focuses on building relationships with businesses, professionals and individuals in its marketplace, and is committed to a culture of respect, diversity, equity and inclusion in both its workplace and the communities in which it operates.

Conference call: Eagle Bancorp will host a conference call to discuss its third quarter 2024 financial results on Thursday, October 24, 2024 at 10:00 a.m. Eastern Time.

The listen-only webcast can be accessed at:

https://edge.media-server.com/mmc/p/79xpxyi2
For analysts who wish to participate in the conference call, please register at the following URL:
https://register.vevent.com/register/BI6cdce3c45a9f49219ea94a6f7c9fa083

A replay of the conference call will be available on the Company’s website through November 7, 2024: https://www.eaglebankcorp.com/

Forward-looking statements: This press release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as “may,” “will,” “can,” “anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,” “continue,” “should,” “could,” “strive,” “feel” and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company’s market (including volatility in interest rates and interest rate policy; the current inflationary environment; competitive factors) and other conditions (such as the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks), which by their nature are not susceptible to accurate forecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein. For details on factors that could affect these expectations, see the risk factors and other cautionary language included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and in other periodic and current reports filed with the SEC. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company’s past results are not necessarily indicative of future performance, and nothing contained herein is meant to or should be considered and treated as earnings guidance of future quarters’ performance projections. All information is as of the date of this press release. Any forward-looking statements made by or on behalf of the Company speak only as to the date they are made. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

Eagle Bancorp, Inc.
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share data)

	Three Months Ended
	September 30,			June 30,			September 30,
		2024			2024			2023
Interest Income
Interest and fees on loans	$	139,836		$	137,616		$	132,273
Interest and dividends on investment securities		12,578			12,405			13,732
Interest on balances with other banks and short-term investments		21,296			19,568			15,067
Interest on federal funds sold		103			142			77
Total interest income		173,813			169,731			161,149
Interest Expense
Interest on deposits		81,190			76,846			70,929
Interest on customer repurchase agreements		332			330			311
Interest on other short-term borrowings		20,448			21,202			18,152
Interest on long-term borrowings	$	—			—			1,038
Total interest expense		101,970			98,378			90,430
Net Interest Income		71,843			71,353			70,719
Provision for Credit Losses		10,094			8,959			5,644
Provision (Reversal) for Credit Losses for Unfunded Commitments		(1,593	)		608			(839	)
Net Interest Income After Provision for Credit Losses		63,342			61,786			65,914

Noninterest Income
Service charges on deposits		1,747			1,653			1,631
Gain on sale of loans		20			37			(5	)
Net gain on sale of investment securities		3			3			5
Increase in cash surrender value of bank-owned life insurance		731			709			669
Other income		4,450			2,930			4,047
Total noninterest income		6,951			5,332			6,347
Noninterest Expense
Salaries and employee benefits		21,675			21,770			21,549
Premises and equipment expenses		2,794			2,894			3,095
Marketing and advertising		1,588			1,662			768
Data processing		3,435			3,495			3,194
Legal, accounting and professional fees		3,433			2,705			2,162
FDIC insurance		7,399			5,917			3,342
Goodwill impairment		—			104,168			—
Other expenses		3,290			3,880			3,523
Total noninterest expense		43,614			146,491			37,633
(Loss) Income Before Income Tax Expense		26,679			(79,373	)		34,628
Income Tax Expense		4,864			4,429			7,245
Net (Loss) Income	$	21,815		$	(83,802	)	$	27,383

(Loss) Earnings Per Common Share
Basic	$	0.72		$	(2.78	)	$	0.91
Diluted	$	0.72		$	(2.78	)	$	0.91

Eagle Bancorp, Inc.
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands, except per share data)
	September 30,			June 30,			September 30,
		2024			2024			2023
Assets
Cash and due from banks	$	16,383		$	10,803		$	8,625
Federal funds sold		9,610			5,802			13,611
Interest-bearing deposits with banks and other short-term investments		584,491			526,228			235,819
Investment securities available-for-sale at fair value (amortized cost of $1,550,038, $1,613,659, and $1,732,722, respectively, and allowance for credit losses of $17, $17 and $17, respectively)		1,433,006			1,584,435			1,474,945
Investment securities held-to-maturity at amortized cost, net of allowance for credit losses of $1,237, $2,012 and $2,010, respectively (fair value of $868,425, $856,275 and $923,313, respectively)		961,925			982,955			1,032,485
Federal Reserve and Federal Home Loan Bank stock		37,728			54,274			25,689
Loans held for sale		—			5,000			—
Loans		7,970,269			8,001,739			7,916,391
Less: allowance for credit losses		(111,867	)		(106,301	)		(83,332	)
Loans, net		7,858,402			7,895,438			7,833,059
Premises and equipment, net		8,291			8,788			11,216
Operating lease right-of-use assets		15,167			16,250			20,151
Deferred income taxes		74,381			86,236			98,987
Bank-owned life insurance		115,064			114,333			112,234
Goodwill and intangible assets, net		21			129			105,239
Other real estate owned		2,743			773			1,487
Other assets		167,840			174,396			190,667
Total Assets	$	11,285,052		$	11,465,840		$	11,164,214
Liabilities and Shareholders’ Equity
Liabilities
Deposits:
Noninterest-bearing demand	$	1,609,823		$	1,693,955		$	2,072,665
Interest-bearing transaction		903,300			1,123,980			932,779
Savings and money market		3,316,819			3,165,314			3,129,773
Time deposits		2,710,908			2,284,099			2,241,089
Total deposits		8,540,850			8,267,348			8,376,306
Customer repurchase agreements		32,040			39,220			25,689
Other short-term borrowings		1,240,000			1,659,979			1,300,001
Long-term borrowings		75,812			—			69,887
Operating lease liabilities		18,755			20,016			24,422
Reserve for unfunded commitments		5,060			6,653			6,183
Other liabilities		147,111			139,348			145,842
Total Liabilities		10,059,628			10,132,564			9,948,330
Shareholders’ Equity
Common stock, par value $0.01 per share; shares authorized 100,000,000, shares issued and outstanding 30,173,200 30,180,482, and 30,185,732, respectively		298			297			296
Additional paid-in capital		382,284			380,142			372,394
Retained earnings		967,019			949,863			1,054,699
Accumulated other comprehensive loss		(124,177	)		(160,843	)		(211,505	)
Total Shareholders’ Equity		1,225,424			1,169,459			1,215,884
Total Liabilities and Shareholders’ Equity	$	11,285,052		$	11,302,023		$	11,164,214

Loan Mix and Asset Quality (Dollars in thousands)

	September 30,					June 30,					September 30,
		2024					2024					2023
	Amount		%			Amount		%			Amount		%
Loan Balances – Period End:
Commercial	$	1,154,349		14	%	$	1,238,261		15	%	$	1,418,760		18	%
PPP loans		348		—	%		407		—	%		588		—	%
Income producing – commercial real estate		4,155,120		52	%		4,217,525		53	%		4,147,301		52	%
Owner occupied – commercial real estate		1,276,240		16	%		1,263,714		16	%		1,182,959		15	%
Real estate mortgage – residential		57,223		1	%		61,338		1	%		76,511		1	%
Construction – commercial and residential		1,174,591		15	%		1,063,764		13	%		904,282		11	%
Construction – C&I (owner occupied)		100,662		1	%		99,526		1	%		129,616		2	%
Home equity		51,567		1	%		52,773		1	%		53,917		1	%
Other consumer		169		—	%		4,431		—	%		2,457		—	%
Total loans	$	7,970,269		100	%	$	8,001,739		100	%	$	7,916,391		100	%

	Three Months Ended or As Of
	September 30,		June 30,		September 30,
		2024		2024		2023
Asset Quality:
Net charge-offs	$	5,303	$	2,285	$	340
Nonperforming loans	$	134,371	$	98,169	$	70,148
Other real estate owned	$	2,743	$	773	$	1,757
Nonperforming assets	$	137,114	$	98,942	$	71,905
Special mention	$	364,983	$	307,906	$	158,182
Substandard	$	391,301	$	408,311	$	219,001

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Prior Quarter (Unaudited)
(Dollars in thousands)

	Three Months Ended
	September 30, 2024								June 30, 2024
	Average Balance			Interest		Average Yield/Rate			Average Balance			Interest		Average Yield/Rate
ASSETS
Interest earning assets:
Interest-bearing deposits with other banks and other short-term investments	$	1,577,464		$	21,296		5.37	%	$	1,455,007		$	19,568		5.41	%
Loans held for sale ⁽¹⁾		4,936			1		0.08	%		8,045			100		5.00	%
Loans ^{(1) (2)}	$	8,026,524			139,835		6.93	%		8,003,206			137,516		6.91	%
Investment securities available-for-sale ⁽²⁾		1,479,598			7,336		1.97	%		1,478,856			7,048		1.92	%
Investment securities held-to-maturity ⁽²⁾		974,366			5,242		2.14	%		995,274			5,357		2.16	%
Federal funds sold		10,003			103		4.10	%		13,058			142		4.37	%
Total interest earning assets		12,072,891		$	173,813		5.73	%		11,953,446		$	169,731		5.71	%
Total noninterest earning assets		397,006								510,725
Less: allowance for credit losses		(108,998	)							(102,671	)
Total noninterest earning assets		288,008								408,054
TOTAL ASSETS	$	12,360,899							$	12,361,500

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest bearing liabilities:
Interest-bearing transaction	$	1,656,676		$	14,596		3.51	%	$	1,636,795		$	16,100		3.96	%
Savings and money market		3,254,128			34,896		4.27	%		3,321,001			33,451		4.05	%
Time deposits		2,517,944			31,698		5.01	%		2,215,693			27,295		4.95	%
Total interest bearing deposits		7,428,748			81,190		4.35	%		7,173,489			76,846		4.31	%
Customer repurchase agreements		38,045			332		3.47	%		38,599			330		3.44	%
Other short-term borrowings		1,615,867			20,448		5.03	%		1,682,684			21,202		5.07	%
Long-term borrowings		824			—		—	%		—			—		—	%
Total interest bearing liabilities		9,083,484		$	101,970		4.47	%		8,894,772		$	98,378		4.45	%
Noninterest bearing liabilities:
Noninterest bearing demand		1,915,666								2,051,777
Other liabilities		160,272								151,324
Total noninterest bearing liabilities		2,075,938								2,203,101
Shareholders’ equity		1,201,477								1,263,627
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	12,360,899							$	12,361,500
Net interest income				$	71,843							$	71,353
Net interest spread							1.26	%							1.26	%
Net interest margin							2.37	%							2.40	%
Cost of funds							3.69	%							3.61	%

(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.9 million and $4.8 million for the three months ended September 30, 2024 and June 30, 2024, respectively.
(2) Interest and fees on loans and investments exclude tax equivalent adjustments.

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Year Ago Quarter (Unaudited)
(Dollars in thousands)

	Three Months Ended September 30,
		2024								2023
	Average Balance			Interest		Average Yield/Rate			Average Balance			Interest		Average Yield/Rate
ASSETS
Interest earning assets:
Interest bearing deposits with other banks and other short-term investments	$	1,577,464		$	21,296		5.37	%	$	1,127,451		$	15,067		5.30	%
Loans held for sale ⁽¹⁾		4,936			1		0.08	%		—			—		—	%
Loans ^{(1) (2)}		8,026,524			139,835		6.93	%		7,795,144			132,273		6.73	%
Investment securities available-for-sale ⁽²⁾		1,479,598			7,336		1.97	%		1,554,348			8,126		2.07	%
Investment securities held-to-maturity ⁽²⁾		974,366			5,242		2.14	%		1,047,515			5,606		2.12	%
Federal funds sold		10,003			103		4.10	%		7,728			77		3.95	%
Total interest earning assets		12,072,891		$	173,813		5.73	%		11,532,186		$	161,149		5.54	%
Total noninterest earning assets		397,006								489,683
Less: allowance for credit losses		(108,998	)							(78,964	)
Total noninterest earning assets		288,008								410,719
TOTAL ASSETS	$	12,360,899							$	11,942,905

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest bearing liabilities:
Interest bearing transaction	$	1,656,676		$	14,596		3.51	%	$	1,421,522		$	12,785		3.57	%
Savings and money market		3,254,128			34,896		4.27	%		3,113,755			32,855		4.19	%
Time deposits		2,517,944			31,698		5.01	%		2,162,582			25,289		4.64	%
Total interest bearing deposits		7,428,748			81,190		4.35	%		6,697,859			70,929		4.20	%
Customer repurchase agreements		38,045			332		3.47	%		36,082			311		3.42	%
Other short-term borrowings		1,615,867			20,448		5.03	%		1,610,097			19,190		4.73	%
Long-term borrowings		824			—		—	%		—			—		—	%
Total interest bearing liabilities		9,083,484		$	101,970		4.47	%		8,344,038		$	90,430		4.30	%
Noninterest bearing liabilities:
Noninterest bearing demand		1,915,666								2,248,782
Other liabilities		160,272								114,923
Total noninterest bearing liabilities		2,075,938								2,363,705
Shareholders’ equity		1,201,477								1,235,162
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	12,360,899							$	11,942,905
Net interest income				$	71,843							$	70,719
Net interest spread							1.26	%							1.24	%
Net interest margin							2.37	%							2.43	%
Cost of funds							3.69	%							3.39	%

(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.9 million and $4.1 million for the three months ended September 30, 2024 and 2023, respectively.
(2) Interest and fees on loans and investments exclude tax equivalent adjustments.

Eagle Bancorp, Inc.
Statements of Operations and Highlights Quarterly Trends (Unaudited)
(Dollars in thousands, except per share data)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			June 30,			March 31,			December 31,
Income Statements:		2024			2024			2024			2023			2023			2023			2023			2022
Total interest income	$	173,813		$	169,731		$	175,602		$	167,421		$	161,149		$	156,510		$	140,247		$	129,130
Total interest expense		101,970			98,378			100,904			94,429			90,430			84,699			65,223			43,530
Net interest income		71,843			71,353			74,698			72,992			70,719			71,811			75,024			85,600
Provision (reversal) for credit losses		10,094			8,959			35,175			14,490			5,644			5,238			6,164			(464	)
Provision (reversal) for credit losses for unfunded commitments		(1,593	)		608			456			(594	)		(839	)		318			848			161
Net interest income after provision for (reversal of) credit losses		63,342			61,786			39,067			59,096			65,914			66,255			68,012			85,903
Noninterest income before investment gain (loss)		6,948			5,329			3,585			2,891			6,342			8,593			3,721			5,326
Net gain (loss) on sale of investment securities		3			3			4			3			5			2			(21	)		3
Total noninterest income		6,951			5,332			3,589			2,894			6,347			8,595			3,700			5,329
Salaries and employee benefits		21,675			21,770			21,726			18,416			21,549			21,957			24,174			23,691
Premises and equipment expenses		2,794			2,894			3,059			2,967			3,095			3,227			3,317			3,292
Marketing and advertising		1,588			1,662			859			1,071			768			884			636			1,290
Goodwill impairment		—			104,168			—			—			—			—			—			—
Other expenses		17,557			15,997			14,353			14,644			12,221			11,910			12,457			10,645
Total noninterest expense		43,614			146,491			39,997			37,098			37,633			37,978			40,584			38,918
(Loss) income before income tax expense		26,679			(79,373	)		2,659			24,892			34,628			36,872			31,128			52,314
Income tax expense		4,864			4,429			2,997			4,667			7,245			8,180			6,894			10,121
Net (loss) income	$	21,815		$	(83,802	)	$	(338	)	$	20,225		$	27,383		$	28,692		$	24,234		$	42,193
Per Share Data:
(Loss) earnings per weighted average common share, basic	$	0.72		$	(2.78	)	$	(0.01	)	$	0.68		$	0.91		$	0.94		$	0.78		$	1.32
(Loss) earnings per weighted average common share, diluted	$	0.72		$	(2.78	)	$	(0.01	)	$	0.67		$	0.91		$	0.94		$	0.78		$	1.32
Weighted average common shares outstanding, basic		30,173,852			30,185,609			30,068,173			29,925,557			29,910,218			30,454,766			31,109,267			31,819,631
Weighted average common shares outstanding, diluted		30,241,699			30,185,609			30,068,173			29,966,962			29,944,692			30,505,468			31,180,346			31,898,619
Actual shares outstanding at period end		30,173,200			30,180,482			30,185,732			29,925,612			29,917,982			29,912,082			31,111,647			31,346,903
Book value per common share at period end	$	40.61		$	38.75		$	41.72		$	42.58		$	40.64		$	40.78		$	39.92		$	39.18
Tangible book value per common share at period end ⁽¹⁾	$	40.61		$	38.74		$	38.26		$	39.08		$	37.12		$	37.29		$	36.57		$	35.86
Dividend per common share	$	0.165		$	0.45		$	0.45		$	0.45		$	0.45		$	0.45		$	0.45		$	0.45
Performance Ratios (annualized):
Return on average assets		0.70	%		(2.73	)%		(0.01	)%		0.65	%		0.91	%		0.96	%		0.86	%		1.49	%
Return on average common equity		7.22	%		(26.67	)%		(0.11	)%		6.48	%		8.80	%		9.24	%		7.92	%		13.57	%
Return on average tangible common equity ⁽¹⁾		7.22	%		(28.96	)%		(0.11	)%		7.08	%		9.61	%		10.08	%		8.65	%		14.82	%
Net interest margin		2.37	%		2.40	%		2.43	%		2.45	%		2.43	%		2.49	%		2.77	%		3.14	%
Efficiency ratio ⁽²⁾		55.4	%		191.0	%		51.1	%		48.9	%		48.8	%		47.2	%		51.6	%		42.8	%
Other Ratios:
Allowance for credit losses to total loans ⁽³⁾		1.40	%		1.33	%		1.25	%		1.08	%		1.05	%		1.00	%		1.01	%		0.97	%
Allowance for credit losses to total nonperforming loans		83	%		110	%		109	%		131	%		119	%		268	%		1,160	%		1,151	%
Nonperforming assets to total assets		1.22	%		0.88	%		0.79	%		0.57	%		0.64	%		0.28	%		0.08	%		0.08	%
Net charge-offs (recoveries) (annualized) to average total loans ⁽³⁾		0.26	%		0.11	%		1.07	%		0.60	%		0.02	%		0.29	%		0.05	%		0.05	%
Tier 1 capital (to average assets)		10.94	%		10.58	%		10.26	%		10.73	%		10.96	%		10.84	%		11.42	%		11.63	%
Total capital (to risk weighted assets)		15.74	%		15.07	%		14.87	%		14.79	%		14.54	%		14.51	%		14.74	%		14.94	%
Common equity tier 1 capital (to risk weighted assets)		14.54	%		13.92	%		13.80	%		13.90	%		13.68	%		13.55	%		13.75	%		14.03	%
Tangible common equity ratio ⁽¹⁾		10.86	%		10.35	%		10.03	%		10.12	%		10.04	%		10.21	%		10.36	%		10.18	%
Average Balances (in thousands):
Total assets	$	12,360,899		$	12,361,500		$	12,784,470		$	12,283,303		$	11,942,905		$	11,960,111		$	11,426,056		$	11,255,956
Total earning assets	$	12,072,891		$	11,953,446		$	12,365,497		$	11,837,722		$	11,532,186		$	11,546,050		$	11,004,817		$	10,829,703
Total loans ⁽³⁾	$	8,026,524		$	8,003,206		$	7,988,941		$	7,963,074		$	7,795,144		$	7,790,555		$	7,712,023		$	7,379,198
Total deposits	$	9,344,414		$	9,225,266		$	9,501,661		$	9,471,369		$	8,946,641		$	8,514,938		$	8,734,125		$	9,524,139
Total borrowings	$	1,654,736		$	1,721,283		$	1,832,947		$	1,401,917		$	1,646,179		$	2,102,507		$	1,359,463		$	411,060
Total shareholders’ equity	$	1,201,477		$	1,263,627		$	1,289,656		$	1,238,763		$	1,235,162		$	1,245,647		$	1,240,978		$	1,233,705

(1) A reconciliation of non-GAAP financial measures to the nearest GAAP measure is provided in the tables that accompany this document.
(2) Computed by dividing noninterest expense by the sum of net interest income and noninterest income.
(3) Excludes loans held for sale.

GAAP Reconciliation to Non-GAAP Financial Measures (unaudited)
(dollars in thousands, except per share data)

	September 30,			June 30,			September 30,
		2024			2024			2023
Tangible common equity
Common shareholders’ equity	$	1,225,424		$	1,169,459		$	1,215,884
Less: Intangible assets		(21	)		(129	)		(105,239	)
Tangible common equity	$	1,225,403		$	1,169,330		$	1,110,645

Tangible common equity ratio
Total assets	$	11,285,052		$	11,302,023		$	11,164,214
Less: Intangible assets		(21	)		(129	)		(105,239	)
Tangible assets	$	11,285,031		$	11,301,894		$	11,058,975

Tangible common equity ratio		10.86	%		10.35	%		10.04	%

Per share calculations
Book value per common share	$	40.61		$	38.75		$	40.64
Less: Intangible book value per common share		—			(0.01	)		(3.52	)
Tangible book value per common share	$	40.61		$	38.74		$	37.12

Shares outstanding at period end		30,173,200			30,180,482			29,917,982

	Three Months Ended
	September 30,			June 30,			September 30,
		2024			2024			2023
Average tangible common equity
Average common shareholders’ equity	$	1,201,477		$	1,263,627		$	1,235,162
Less: Average intangible assets		(24	)		(99,827	)		(104,639	)
Average tangible common equity	$	1,201,453		$	1,163,800		$	1,130,523

Return on average tangible common equity
Net (loss) income	$	21,815		$	(83,802	)	$	27,383
Return on average tangible common equity		7.22	%	(28.96)%				9.61	%

Net (loss) income	$	21,815		$	(83,802	)	$	27,383
Add back of goodwill impairment	$	—			104,168			—
Operating net (loss) income (Non-GAAP)		21,815			20,366			27,383
Operating Return on average tangible common equity (Non-GAAP)		7.22	%		7.04	%		9.61	%

Efficiency ratio
Net interest income	$	71,843		$	71,353		$	70,719
Noninterest income		6,951			5,332			6,347
Operating revenue	$	78,794		$	76,685		$	77,066
Noninterest expense	$	43,614		$	146,491		$	37,633
Add back of goodwill impairment		—			(104,168	)		—
Operating Noninterest expense (Non-GAAP)		43,614			42,323			37,633

Efficiency ratio		55.35	%		191.03	%		48.83	%
Operating Efficiency ratio (Non-GAAP)		55.35	%		55.19	%		48.83	%

Pre-provision net revenue
Net interest income	$	71,843		$	71,353		$	70,719
Noninterest income		6,951			5,332			6,347
Less: Noninterest expense		(43,614	)		(146,491	)		(37,633	)
Pre-provision net revenue	$	35,180		$	(69,806	)	$	39,433

Pre-provision net revenue	$	35,180		$	(69,806	)	$	39,433
Add back of goodwill impairment	$	—		$	104,168		$	—
Operating Pre-provision net revenue (Non-GAAP)	$	35,180		$	34,362		$	39,433

Tangible common equity, tangible common equity to tangible assets (the “tangible common equity ratio”), tangible book value per common share, average tangible common equity, annualized return on average tangible common equity, and the operating annualized return on average tangible common equity are non-GAAP financial measures derived from GAAP based amounts. The Company calculates the tangible common equity ratio by excluding the balance of intangible assets from common shareholders’ equity, or tangible common equity, and dividing by tangible assets. The Company calculates tangible book value per common share by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which the Company calculates by dividing common shareholders’ equity by common shares outstanding. The Company calculates the annualized return on average tangible common equity ratio by dividing net income available to common shareholders by average tangible common equity, which is calculated by excluding the average balance of intangible assets from the average common shareholders’ equity. The Company calculates the operating annualized return on average tangible common equity ratio by dividing operating net income available to common shareholders, which adds back the goodwill impairment, by average tangible common equity, which is calculated by excluding the average balance of intangible assets from the average common shareholders’ equity. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company. Further related to other measures, tangible equity is a measure that is consistent with the calculation of capital for bank regulatory purposes, which excludes intangible assets from the calculation of risk based ratios, and as such is useful for investors, regulators, management and others to evaluate capital adequacy and to compare against other financial institutions.

The efficiency ratio is a non-GAAP measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and GAAP noninterest income. The efficiency ratio measures a bank’s overhead as a percentage of its revenue. The Company believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling operational activities. Further, the operating efficiency ratio is measured by dividing non-GAAP noninterest expense, which excludes the goodwill impairment, by the sum of GAAP net interest income and GAAP noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.

Pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses from the sum of net interest income and noninterest income. The Company considers this information important to shareholders because it illustrates revenue excluding the impact of provisions and reversals to the allowance for credit losses on loans. Operating pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses with the impact of the goodwill impairment added back from the sum of net interest income and noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.

	Three Months Ended
	September 30,		June 30,			September 30,
		2024		2024			2023
Net (loss) income	$	21,815	$	(83,802	)	$	27,383
Add back of goodwill impairment		—		104,168			—
Operating Net (loss) income (Non-GAAP)	$	21,815	$	20,366		$	27,383

(Loss) earnings per share (diluted)⁴	$	0.72	$	(2.78	)	$	0.91
Add back of goodwill impairment per share (diluted)		—		3.45			—
Operating earnings (loss) per share (diluted) (Non-GAAP)	$	0.72	$	0.67		$	0.91

Operating net (loss) income and operating (loss) earnings per share (diluted) are non-GAAP financial measures derived from GAAP based amounts. The Company calculates operating net (loss) income by excluding from net (loss) income the one-time goodwill impairment of $104.2 million. During the second quarter of 2024, the Company performed an annual impairment test as a result of management’s evaluation of current economic conditions, and concluded that goodwill had become impaired, which resulted in an impairment charge of $104.2 million to reduce the carrying value of the Company’s goodwill to zero. The Company calculates operating earnings (loss) per share (diluted) by dividing the one-time goodwill impairment of $104.2 million by the weighted average shares outstanding (diluted) for the three and six months ended June 30, 2024. The Company considers this information important to shareholders because operating net (loss) income and operating (loss) earnings per share (diluted) provides investors insight into how Company earnings changed exclusive of the impairment charge to allow investors to better compare the Company’s performance against historical periods. The table above provides a reconciliation of operating net income (loss) and operating earnings (loss) per share (diluted) to the nearest GAAP measure.

_______________¹ A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measure that accompany this document.
²Calculated as the ACL attributable to loans collateralized by performing office properties as a percentage of total loans.
³ A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measure that accompany this document.
⁴ For periods ended with a net loss, anti-dilutive financial instruments have been excluded from the calculation of GAAP diluted EPS. Operating diluted EPS calculations include the impact of outstanding equity-based awards for all periods.

EAGLE BANCORP, INC.
CONTACT:
Eric R. Newell
240.497.1796

For the September 30, 2024 Earnings Presentation, click http://ml.globenewswire.com/Resource/Download/d55e221f-6ef9-45bd-8784-011bf19dce58

The MIL Network –

January 25, 2025

MIL-OSI USA: ICYMI—Hagerty Joins Mornings With Maria on Fox Business to Discuss BRICS Summit, Biden-Harris Emboldening China, Stablecoin Bill

US Senate News:

Source: United States Senator for Tennessee Bill Hagerty
NEW YORK CITY—United States Senator Bill Hagerty (R-TN), a member of the Senate Banking and Foreign Relations Committees and former U.S. Ambassador to Japan, yesterday joined Mornings With Maria on Fox Business to discuss yesterday’s BRICS Summit, the Biden-Harris Administration’s weakness towards China, and his stablecoin legislation to establish a clear regulatory framework for the regulation and supervision of stablecoin issuers.

*Click the photo above or here to watch*
Partial Transcript
Hagerty on the BRICS Summit: “Were it not for the tremendous leadership void that exists today because of America’s exit from the international stage, we wouldn’t be seeing this happen. And under President [Donald] Trump, this would have never happened. They’ve expanded BRICS now to 32 nations, as you’ve said. This is all about Vladimir Putin trying to find a way to get around the type of sanctions regime that we will come back and put in place once President Trump is back in office. Interestingly, I noticed that the UN Secretary General Gutierrez is going to be there in Russia for this event. You know, were this event held anywhere else, Gutierrez, I think, would be obligated to enforce the arrest warrant that his own international criminal court has put out for Putin. It’s just shocking to me that these nations would step up and participate in this, and that Gutierrez himself would be involved in a situation where Iran is actually going to be brought into this group. It’s amazing. The only common bond, it seems, is that America’s not part of it, and they want to demonstrate their pushback. And the fact that the UN is engaged in this as well [is] really quite shocking and disturbing to me as it should be to all of us.”
Hagerty on China’s economic leverage against BRICS nations: “You mentioned China; that is another common bond here: China’s economic ties and leverage over these countries with the Belt and Road Initiative and the fact that they’re buying oil from Iran and from Russia. That is another common bond that these guys share. But if you think about how the Harris Administration would respond, look no further than what they did with the spy balloon that they allowed to fly over the entirety of the United States of America. And then send four cabinet members over to kowtow, just to beg them to come to San Francisco for a meeting, I’m very concerned. Americans should be deeply concerned what would happen and should Kamala Harris be put in a position to stand up to Xi. I’ve been with President Trump when he’s met with Xi. Xi respects Trump. President Trump will bring respect and order back to these types of relationships. I cannot imagine how Kamala Harris would stand up to that type of pressure.”
Hagerty on Obama’s former AG suing the Pentagon on behalf of a Chinse company: “This is exactly why President Trump has said we must drain the swamp. This is just another example of the revolving door. And the fact is that the first time this DJI was cited was back in 2017 when President Trump was in office—the Army took them down then—there’s no way that Loretta Lynch would be bringing the suit under the Trump Administration. But again, they’re trying to squeeze everything in that they can in the last days, the waning days of this Administration. You’ve got to ask yourself: who are they working for? Because every one of the foreign policies that Biden and Harris have pursued basically make China the net winner. We’ve got to stop this […] Ever since 2018, that’s been the case, because that’s what the Chinese National Security law says. Chinese companies that collect data anywhere in the world need to and have to expose that data to the Chinese intelligence services when asked. So, of course, that’s what it means. That’s the vulnerability that was seen back in the Trump Administration; that seems to be something that Loretta Lynch wants to undo and make these Chinese companies have access to the most sensitive data that our U.S. military would pick up. It’s unconscionable that she’d do this […] Barack Obama’s top law enforcement officer, the former Attorney General, is the one defending this Chinese company trying to get them off of this list, when she knows the exposure [and] the national security risk that would pose to America. It is just shocking.”
Hagerty on his stablecoin legislation to establish clear regulatory framework: “As you mentioned, this builds upon some excellent work that was done in the House of Representatives. I’ve come in and made some adjustments that I think it’ll make it easier to get through both bodies [in Congress]. The impact of this, though, actually gets back to the beginning of the story that you and I talked about. You think about the efforts that Vladimir Putin and these BRICS nations undertaking to get around the United States as the reserve currency of the world. This will actually strengthen our posture as a reserve currency. It will increase demand, not only for U.S. treasuries, but also the stablecoins will increase demand for U.S. dollars on a global basis. We need the proper regulatory framework in place here in America—we need legal certainty—the Biden and Harris Administration have done everything they can to destroy that sort of legal certainty. This will begin to chip away at the Democrats’ war on cryptocurrency and put us back in the driver’s seat when it comes to maintaining the reserve currency status that the dollar has enjoyed and should continue to enjoy […] The assumption is very clear that this legislation will move through and be ripe for a new Administration.”

MIL OSI USA News –

January 25, 2025

MIL-OSI: Horizon Bancorp, Inc. Reports Third Quarter 2024 Results, Including EPS of $0.41 and Continued Profitability Improvement, as well as Accretive Balance Sheet Initiatives

Source: GlobeNewswire (MIL-OSI)

MICHIGAN CITY, Ind., Oct. 23, 2024 (GLOBE NEWSWIRE) — (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three and nine months ended September 30, 2024.

Net income for the three months ended September 30, 2024 was $18.2 million, or $0.41 per diluted share, compared to net income of $14.1 million, or $0.32, for the second quarter of 2024 and compared to net income of $16.2 million, or $0.37 per diluted share, for the third quarter of 2023.

Net income for the nine months ended September 30, 2024 was $46.3 million, or $1.05 per diluted share, compared to net income of $53.2 million, or $1.21, for the nine months ended September 30, 2023.

Third Quarter 2024 Highlights

Net interest income increased for the fourth consecutive quarter to $46.9 million, compared to $45.3 million in the linked quarter of 2024. Net interest margin, on a fully taxable equivalent (“FTE”) basis¹, expanded for the fourth consecutive quarter to 2.66%, compared to 2.64% in the linked quarter of 2024.

Total loans held for investment (“HFI”) were $4.8 billion at September 30, 2024, relatively unchanged from June 30, 2024 balances. However, consistent with the Company’s stated growth strategy, the commercial portfolio showed continued organic growth momentum during the quarter, which was offset with planned run-off of lower-yielding indirect auto loans in the consumer loan portfolio.

Positive deposit growth of 1.7% during the quarter, to $5.7 billion at period end. The quarter was highlighted by stable non-interest bearing deposit balances and growth in core relationship consumer and commercial portfolios.

Credit quality remains strong, with annualized net charge offs of 0.03% of average loans during the third quarter. Non-performing assets to total assets of 0.32% remains well within expected ranges, with no material change in the loss outlook. Provision for loan losses of $1.0 million reflects continued positive credit performance.

“Horizon continues to execute well on its key strategic initiatives of consistently improving our operating performance through a more productive balance sheet, growth in non-interest income and continued disciplined in our operating model. As a result, we are optimistic on the positive momentum of the franchise through year-end 2024 and into 2025. During the quarter, our commercial team was able to deliver another quarter of quality loan growth, even coming off a strong end to the second quarter. The strength of Horizon’s core deposit franchise showed solid performance, and our credit metrics remain well managed. These efforts led to a third consecutive quarter of sequential growth in pre-tax pre-provision income,” President and Chief Executive Officer Thomas M. Prame said. “Importantly, we continue our efforts to optimize our business model, and are pleased to announce the repositioning of a portion of our securities portfolio and the intended sale of our mortgage warehouse business during the fourth quarter. These shareholder accretive actions are expected to yield sustainable improvement in the profitability of our business that will be evident in the fourth quarter, and positively impact Horizon’s financial performance in 2025.”

^{_________________________
1} Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Accretive Fourth Quarter 2024 Strategic Actions

Horizon announced strategic actions taking place in the fourth quarter of 2024, which are designed to simplify its business, strengthen the balance sheet and improve long-term structural profitability. In October, the Company completed the repositioning of about $325 million of available-for-sale securities. Additionally, the Company has signed a letter of intent to sell its mortgage warehouse business, which is expected to generate a gain-on-sale. Details on these actions, the use of proceeds, and the expected financial impact are available in the Company’s third quarter 2024 investor presentation published at investor.horizonbank.com.


Financial Highlights
(Dollars in Thousands Except Share and Per Share Data and Ratios, Unaudited)
	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023
Income statement:
Net interest income	$	46,910		$	45,279		$	43,288		$	42,257		$	42,090
Credit loss expense		1,044			2,369			805			1,274			263
Non-interest income		11,511			10,485			9,929			(20,449	)		11,830
Non-interest expense		39,272			37,522			37,107			39,330			36,168
Income tax expense		(75	)		1,733			1,314			6,419			1,284
Net income	$	18,180		$	14,140		$	13,991		$	(25,215	)	$	16,205

Per share data:
Basic earnings per share	$	0.42		$	0.32		$	0.32		$	(0.58	)	$	0.37
Diluted earnings per share		0.41			0.32			0.32			(0.58	)		0.37
Cash dividends declared per common share		0.16			0.16			0.16			0.16			0.16
Book value per common share		17.27			16.62			16.49			16.47			15.89
Market value – high		16.57			12.74			14.44			14.65			12.68
Market value – low		11.89			11.29			11.75			9.33			9.90
Weighted average shares outstanding – Basic		43,712,059			43,712,059			43,663,610			43,649,585			43,646,609
Weighted average shares outstanding – Diluted		44,112,321			43,987,187			43,874,036			43,649,585			43,796,069
Common shares outstanding (end of period)		43,712,059			43,712,059			43,726,380			43,652,063			43,648,501

Key ratios:
Return on average assets		0.92	%		0.73	%		0.72	%	(1.27) %				0.81	%
Return on average stockholders’ equity		9.80			7.83			7.76			(14.23	)		8.99
Total equity to total assets		9.52			9.18			9.18			9.06			8.71
Total loans to deposit ratio		83.92			85.70			82.78			78.01			76.52
Allowance for credit losses to HFI loans		1.10			1.08			1.09			1.13			1.14
Annualized net charge-offs of average total loans⁽¹⁾		0.03			0.05			0.04			0.07			0.07
Efficiency ratio		67.22			67.29			69.73			180.35			67.08

Key metrics (Non-GAAP)⁽²⁾:
Net FTE interest margin		2.66	%		2.64	%		2.50	%		2.43	%		2.41	%
Return on average tangible common equity		12.65			10.18			10.11			(18.76	)		11.79
Tangible common equity to tangible assets		7.58			7.22			7.20			7.08			6.72
Tangible book value per common share	$	13.46		$	12.80		$	12.65		$	12.60		$	12.00


⁽¹⁾ Average total loans includes loans held for investment and held for sale.
⁽²⁾ Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.

Income Statement Highlights

Net Interest Income

Net interest income was $46.9 million in the third quarter of 2024, compared to $45.3 million in the second quarter of 2024, driven by net growth in average interest earning assets of $117.5 million and continued net FTE interest margin expansion during the quarter. Horizon’s net FTE interest margin¹ was 2.66% for the third quarter of 2024, compared to 2.64% for the second quarter of 2024, attributable to the favorable mix shift in average interest earning assets toward higher-yielding loans and in the average funding mix toward lower-cost deposit balances. Interest accretion from the fair value of acquired loans did not contribute significantly to the third quarter net interest income, or net FTE interest margin.

Provision for Credit Losses

During the third quarter of 2024, the Company recorded a provision for credit losses of $1.0 million. This compares to a provision for credit losses of $2.4 million during the second quarter of 2024, and $0.3 million during the third quarter of 2023. The decrease in the provision for credit losses during the third quarter of 2024 when compared with the second quarter of 2024 was primarily attributable to less total loan growth in the current quarter relative to the prior quarter.

For the third quarter of 2024, the allowance for credit losses included net charge-offs of $0.4 million, or an annualized 0.03% of average loans outstanding, compared to net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding for the second quarter of 2024, and net charge-offs of $0.7 million, or an annualized 0.07% of average loans outstanding, in the third quarter of 2023.

The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.10% at September 30, 2024, compared to 1.08% at June 30, 2024 and 1.14% at September 30, 2023.

Non-Interest Income

For the Quarter Ended	September 30,		June 30,		March 31,		December 31,			September 30,
(Dollars in Thousands)	2024		2024		2024		2023			2023
Non-interest Income
Service charges on deposit accounts	$	3,320	$	3,130	$	3,214	$	3,092		$	3,086
Wire transfer fees		123		113		101		103			120
Interchange fees		3,511		3,826		3,109		3,224			3,186
Fiduciary activities		1,394		1,372		1,315		1,352			1,206
Gains (losses) on sale of investment securities		—		—		—		(31,572	)		—
Gain on sale of mortgage loans		1,622		896		626		951			1,582
Mortgage servicing income net of impairment		412		450		439		724			631
Increase in cash value of bank owned life insurance		349		318		298		658			1,055
Other income		780		380		827		1,019			964
Total non-interest income	$	11,511	$	10,485	$	9,929	$	(20,449	)	$	11,830

Total non-interest income was $11.5 million in the third quarter of 2024, compared to $10.5 million in the second quarter of 2024, due primarily to higher realized gains on sale of mortgage loans and increased other income.

^{_________________________
1} Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Non-Interest Expense

For the Quarter Ended	September 30,		June 30,		March 31,		December 31,		September 30,
(Dollars in Thousands)	2024		2024		2024		2023		2023
Non-interest Expense
Salaries and employee benefits	$	21,829	$	20,583	$	20,268	$	21,877	$	20,058
Net occupancy expenses		3,207		3,192		3,546		3,260		3,283
Data processing		2,977		2,579		2,464		2,942		2,999
Professional fees		676		714		607		772		707
Outside services and consultants		3,677		3,058		3,359		2,394		2,316
Loan expense		1,034		1,038		719		1,345		1,120
FDIC insurance expense		1,204		1,315		1,320		1,200		1,300
Core deposit intangible amortization		844		844		872		903		903
Other losses		297		515		16		508		188
Other expense		3,527		3,684		3,936		4,129		3,294
Total non-interest expense	$	39,272	$	37,522	$	37,107	$	39,330	$	36,168

Total non-interest expense was $39.3 million in the third quarter of 2024, compared with $37.5 million in the second quarter of 2024. The increase in non-interest expense during the third quarter of 2024 was primarily driven by a $1.2 million increase in salaries and employee benefits expense, which is partially attributable to a legacy benefits program expense, and a $0.6 million increase in outside services and consultants expense related to strategic initiatives.

Income Taxes

Horizon’s effective tax rate was -0.4% for the third quarter of 2024, as compared to 10.9% for the second quarter of 2024. The decrease in the effective tax rate during the third quarter was primarily due to an increase in net realizable tax credits for the current year, which reduced the Company’s estimated annual effective tax rate.

Balance Sheet

Total assets increased by $14.9 million, or 0.2%, to $7.93 billion as of September 30, 2024, from $7.91 billion as of June 30, 2024. The increase in total assets is primarily due to increases in federal funds sold of $79.5 million, or 230.6%, to $113.9 million as of September 30, 2024, compared to $34.5 million as of June 30, 2024. The increase in federal funds sold during the period was partially offset by a decrease in other assets of $46.6 million, or 28.1%, to $119.0 million as of September 30, 2024, from $165.7 million as of June 30, 2024.

Total investment securities remained unchanged, at $2.4 billion as of September 30, 2024, compared to June 30, 2024, as the positive market impact to available for sale securities was offset by normal pay-downs and maturities. There were no purchases of investment securities during the third quarter of 2024.

Total loans HFI and loans held for sale were relatively consistent at $4.8 billion as of September 30, 2024 compared to $4.8 billion as of June 30, 2024, as growth in commercial loans of $9.5 million were offset by a decline in consumer loans of $43.3 million.

Total deposit balances increased by $96.9 million, or 1.7%, to $5.7 billion as of September 30, 2024 when compared to balances as of June 30, 2024. Non-interest bearing deposit balances were essentially unchanged during the quarter.

Total borrowings decreased by $86.4 million, or 7.0%, to $1.1 billion as of September 30, 2024, primarily related to the repayment of a portion of Federal Home Loan Bank advances, when compared to balances as of June 30, 2024.

Capital

The following table presents the consolidated regulatory capital ratios of the Company for the previous three quarters:

For the Quarter Ended	September 30,			June 30,			March 31,			December 31,
	2024*			2024			2024**			2023**
Consolidated Capital Ratios
Total capital (to risk-weighted assets)		13.52	%		13.41	%		13.75	%		14.04	%
Tier 1 capital (to risk-weighted assets)		11.70	%		11.59	%		11.89	%		12.13	%
Common equity tier 1 capital (to risk-weighted assets)		10.74	%		10.63	%		10.89	%		11.11	%
Tier 1 capital (to average assets)		9.01	%		9.02	%		8.91	%		8.61	%
*Preliminary estimate – may be subject to change
**Prior periods were previously revised (see disclosure in Form 10-Q for the quarterly period ending June 30, 2024)

As of September 30, 2024, the ratio of total stockholders’ equity to total assets is 9.52%. Book value per common share was $17.27, increasing $0.65 during the third quarter of 2024.

Tangible common equity¹ totaled $588.5 million at September 30, 2024, and the ratio of tangible common equity to tangible assets¹ was 7.58% at September 30, 2024, up from 7.22% at June 30, 2024. Tangible book value, which excludes intangible assets from total equity, per common share¹ was $13.46, increasing $0.66 during the third quarter of 2024.

Credit Quality

As of September 30, 2024, total non-accrual loans increased by $5.3 million, or 29.0%, from June 30, 2024, to 0.49% of total loans HFI. Total non-performing assets increased $5.1 million, or 25.0%, to $25.6 million, compared to $20.5 million as of June 30, 2024. The ratio of non-performing assets to total assets increased to 0.32% compared to 0.26% as of June 30, 2024.

As of September 30, 2024, net charge-offs decreased by $0.2 million to $0.4 million, compared to $0.6 million as of June 30, 2024 and remain just 0.03% annualized of average loans.

^{_________________________
1} Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Earnings Conference Call

As previously announced, Horizon will host a conference call to review its third quarter financial results and operating performance.

Participants may access the live conference call on October 24, 2024 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833-974-2379 from the United States, 866-450-4696 from Canada or 1-412-317-5772 from international locations and requesting the “Horizon Bancorp Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

A telephone replay of the call will be available approximately one hour after the end of the conference through November 1, 2024. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada or 1–412–317-0088 from other international locations, and entering the access code 9847279.

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $7.9 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon’s retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana’s Michigan City, is available at horizonbank.com and investor.horizonbank.com.

Use of Non-GAAP Financial Measures

Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures relating to net income, diluted earnings per share, pre-tax, pre-provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. We believe that this shows the impact of such events as acquisition-related purchase accounting adjustments and swap termination fees, among others we have identified in our reconciliations. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business and financial results without giving effect to the purchase accounting impacts and one-time costs of acquisitions and non–recurring items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. See the tables and other information below and contained elsewhere in this press release for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures.

Forward Looking Statements

This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; macroeconomic conditions and their impact on Horizon and its customers; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict and the Israel and Hamas conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.


	Condensed Consolidated Statements of Income
	(Dollars in Thousands Except Per Share Data, Unaudited)
	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
Interest Income
Loans receivable	$	75,488		$	71,880	$	66,954	$	65,583		$	63,003	$	214,322	$	178,961
Investment securities – taxable		8,133			7,986		7,362		8,157			8,788		23,481		26,253
Investment securities – tax-exempt		6,310			6,377		6,451		6,767			7,002		19,138		21,617
Other		957			738		4,497		3,007			1,332		6,192		1,960
Total interest income		90,888			86,981		85,264		83,514			80,125		263,133		228,791
Interest Expense
Deposits		30,787			28,447		27,990		27,376			24,704		87,224		58,481
Borrowed funds		11,131			11,213		11,930		11,765			11,224		34,274		30,713
Subordinated notes		830			829		831		870			880		2,490		2,641
Junior subordinated debentures issued to capital trusts		1,230			1,213		1,225		1,246			1,227		3,668		3,469
Total interest expense		43,978			41,702		41,976		41,257			38,035		127,656		95,304
Net Interest Income		46,910			45,279		43,288		42,257			42,090		135,477		133,487
Provision for loan losses		1,044			2,369		805		1,274			263		4,218		1,185
Net Interest Income after Provision for Loan Losses		45,866			42,910		42,483		40,983			41,827		131,259		132,302
Non-interest Income
Service charges on deposit accounts		3,320			3,130		3,214		3,092			3,086		9,664		9,135
Wire transfer fees		123			113		101		103			120		337		345
Interchange fees		3,511			3,826		3,109		3,224			3,186		10,446		9,637
Fiduciary activities		1,394			1,372		1,315		1,352			1,206		4,081		3,728
Gains (losses) on sale of investment securities		—			—		—		(31,572	)		—		—		(480	)
Gain on sale of mortgage loans		1,622			896		626		951			1,582		3,144		3,372
Mortgage servicing income net of impairment		412			450		439		724			631		1,301		1,984
Increase in cash value of bank owned life insurance		349			318		298		658			1,055		965		3,051
Other income		780			380		827		1,019			964		1,987		1,675
Total non-interest income		11,511			10,485		9,929		(20,449	)		11,830		31,925		32,447
Non-interest Expense
Salaries and employee benefits		21,829			20,583		20,268		21,877			20,058		62,680		58,932
Net occupancy expenses		3,207			3,192		3,546		3,260			3,283		9,945		10,095
Data processing		2,977			2,579		2,464		2,942			2,999		8,020		8,684
Professional fees		676			714		607		772			707		1,997		1,873
Outside services and consultants		3,677			3,058		3,359		2,394			2,316		10,094		7,548
Loan expense		1,034			1,038		719		1,345			1,120		2,791		3,635
FDIC insurance expense		1,204			1,315		1,320		1,200			1,300		3,839		2,680
Core deposit intangible amortization		844			844		872		903			903		2,560		2,709
Other losses		297			515		16		508			188		828		543
Other expense		3,527			3,684		3,936		4,129			3,294		11,147		10,255
Total non-interest expense		39,272			37,522		37,107		39,330			36,168		113,901		106,954
Income /(Loss) Before Income Taxes		18,105			15,873		15,305		(18,796	)		17,489		49,283		57,795
Income tax expense		(75	)		1,733		1,314		6,419			1,284		2,972		4,599
Net Income /(Loss)	$	18,180		$	14,140	$	13,991	$	(25,215	)	$	16,205	$	46,311	$	53,196
Basic Earnings /(Loss) Per Share	$	0.42		$	0.32	$	0.32	$	(0.58	)	$	0.37	$	1.06	$	1.22
Diluted Earnings/(Loss) Per Share		0.41			0.32		0.32		(0.58	)		0.37		1.05		1.21

	Condensed Consolidated Balance Sheets
	(Dollars in Thousands)
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Assets
Interest earning assets
Federal funds sold	$	113,912		$	34,453		$	161,704		$	401,672		$	71,576
Interest earning deposits		12,107			4,957			9,178			12,071			4,718
Interest earning time deposits		735			1,715			1,715			2,205			2,207
Federal Home Loan Bank stock		53,826			53,826			53,826			34,509			34,509
Investment securities, available for sale		541,170			527,054			535,319			547,251			865,168
Investment securities, held to maturity		1,888,379			1,904,281			1,925,725			1,945,638			1,966,483
Loans held for sale		2,069			2,440			922			1,418			2,828
Gross loans held for investment (HFI)		4,803,996			4,822,840			4,618,175			4,417,630			4,359,002
Total Interest earning assets		7,416,194			7,351,566			7,306,564			7,362,394			7,306,491
Non-interest earning assets
Allowance for credit losses		(52,881	)		(52,215	)		(50,387	)		(50,029	)		(49,699	)
Cash		108,815			106,691			100,206			112,772			98,843
Cash value of life insurance		37,115			36,773			36,455			36,157			149,212
Other assets		119,026			165,656			160,593			177,061			152,280
Goodwill		155,211			155,211			155,211			155,211			155,211
Other intangible assets		11,067			11,910			12,754			13,626			14,530
Premises and equipment, net		93,544			93,695			94,303			94,583			94,716
Interest receivable		39,366			43,240			40,008			38,710			37,850
Total non-interest earning assets		511,263			560,961			549,143			578,091			652,943
Total assets	$	7,927,457		$	7,912,527		$	7,855,707		$	7,940,485		$	7,959,434
Liabilities
Savings and money market deposits	$	3,420,827		$	3,364,726		$	3,350,673		$	3,369,149		$	3,322,788
Time deposits		1,220,653			1,178,389			1,136,121			1,179,739			1,250,606
Borrowings		1,142,744			1,229,165			1,219,812			1,217,020			1,214,016
Repurchase agreements		122,399			128,169			139,309			136,030			142,494
Subordinated notes		55,703			55,668			55,634			55,543			59,007
Junior subordinated debentures issued to capital trusts		57,423			57,369			57,315			57,258			57,201
Total interest earning liabilities		6,019,749			6,013,486			5,958,864			6,014,739			6,046,112
Non-interest bearing deposits		1,085,535			1,087,040			1,093,076			1,116,005			1,126,703
Interest payable		11,400			11,240			7,853			22,249			16,281
Other liabilities		55,951			74,096			74,664			68,680			76,969
Total liabilities		7,172,635			7,185,862			7,134,457			7,221,673			7,266,065
Stockholders’ Equity
Preferred stock		—			—			—			—			—
Common stock		—			—			—			—			—
Additional paid-in capital		358,453			357,673			356,599			356,400			355,478
Retained earnings		454,050			442,977			435,927			429,021			461,325
Accumulated other comprehensive income (loss)		(57,681	)		(73,985	)		(71,276	)		(66,609	)		(123,434	)
Total stockholders’ equity		754,822			726,665			721,250			718,812			693,369
Total liabilities and stockholders’ equity	$	7,927,457		$	7,912,527		$	7,855,707		$	7,940,485		$	7,959,434

	Loans and Deposits
	(Dollars in Thousands, Unaudited)
	September 30,		June 30,		March 31,		December 31,		September 30,		% Change
	2024		2024		2024		2023		2023		Q3’24 vs Q2’24			Q3’24 vs Q3’23
Commercial:
Commercial real estate	$	2,105,459	$	2,117,772	$	1,984,723	$	1,962,097	$	1,916,056		(1	)%		10	%
Commercial & Industrial		808,600		786,788		765,043		712,863		673,188		3	%		20	%
Total commercial		2,914,059		2,904,560		2,749,766		2,674,960		2,589,244		—	%		13	%
Residential Real estate		801,356		797,956		782,071		681,136		675,399		—	%		19	%
Mortgage warehouse		80,437		68,917		56,548		45,078		65,923		17	%		22	%
Consumer		1,008,144		1,051,407		1,029,790		1,016,456		1,028,436		(4	)%		(2	)%
Total loans held for investment		4,803,996		4,822,840		4,618,175		4,417,630		4,359,002		—	%		10	%
Loans held for sale		2,069		2,440		922		1,418		2,828		(15	)%		(27	)%
Total loans	$	4,806,065	$	4,825,280	$	4,619,097	$	4,419,048	$	4,361,830		—	%		10	%

Deposits:
Interest bearing deposits
Savings and money market deposits	$	3,420,827	$	3,364,726	$	3,350,673	$	3,369,149	$	3,322,788		2	%		3	%
Time deposits		1,220,653		1,178,389		1,136,121		1,179,739		1,250,606		4	%		(2	)%
Total Interest bearing deposits		4,641,480		4,543,115		4,486,794		4,548,888		4,573,394		2	%		1	%
Non-interest bearing deposits
Non-interest bearing deposits		1,085,535		1,087,040		1,093,076		1,116,005		1,126,703		—	%		(4	)%
Total deposits	$	5,727,015	$	5,630,155	$	5,579,870	$	5,664,893	$	5,700,097		2	%		—	%

	Average Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended
	September 30, 2024								June 30, 2024								September 30, 2023
	Average Balance			Interest⁽⁴⁾		Average Rate⁽⁴⁾			Average Balance			Interest⁽⁴⁾		Average Rate⁽⁴⁾			Average Balance			Interest⁽⁴⁾		Average Rate⁽⁴⁾
Assets
Interest earning assets
Federal funds sold	$	64,743		$	860		5.28	%	$	47,805		$	645		5.43	%	$	92,305		$	1,247		5.36	%
Interest earning deposits		8,781			97		4.39	%		7,662			93		4.88	%		8,018			85		4.21	%
Federal Home Loan Bank stock		53,826			1,607		11.88	%		53,827			1,521		11.36	%		34,509			618		7.10	%
Investment securities – taxable ⁽¹⁾		1,301,830			6,526		1.99	%		1,309,305			6,465		1.99	%		1,650,081			8,170		1.96	%
Investment securities – non-taxable ⁽¹⁾		1,125,295			7,987		2.82	%		1,132,065			8,072		2.87	%		1,220,998			8,863		2.88	%
Total investment securities		2,427,125			14,513		2.38	%		2,441,370			14,537		2.39	%		2,871,079			17,033		2.35	%
Loans receivable ^{(2) (3)}		4,775,788			75,828		6.32	%		4,662,124			72,208		6.23	%		4,280,700			63,254		5.89	%
Total interest earning assets	$	7,330,263		$	92,905		5.04	%	$	7,212,788		$	89,004		4.96	%	$	7,286,611		$	82,237		4.59	%
Non-interest earning assets
Cash and due from banks	$	108,609							$	108,319							$	100,331
Allowance for credit losses		(52,111	)							(50,334	)							(49,705	)
Other assets		471,259								508,555								587,514
Total average assets	$	7,858,020							$	7,779,328							$	7,924,751

Liabilities and Stockholders’ Equity
Interest bearing liabilities
Interest bearing deposits	$	3,386,177		$	18,185		2.14	%	$	3,334,490		$	16,814		2.03	%	$	3,267,594		$	12,661		1.54	%
Time deposits		1,189,148			12,602		4.22	%		1,134,590			11,633		4.12	%		1,271,104			12,043		3.76	%
Borrowings		1,149,952			10,221		3.54	%		1,184,172			10,278		3.49	%		1,180,452			10,399		3.50	%
Repurchase agreements		123,524			910		2.93	%		125,144			935		3.00	%		136,784			825		2.39	%
Subordinated notes		55,681			830		5.93	%		55,647			829		5.99	%		58,983			880		5.92	%
Junior subordinated debentures issued to capital trusts		57,389			1,230		8.53	%		57,335			1,213		8.51	%		57,166			1,227		8.52	%
Total interest bearing liabilities	$	5,961,871		$	43,978		2.93	%	$	5,891,378		$	41,702		2.85	%	$	5,972,083		$	38,035		2.53	%
Non-interest bearing liabilities
Demand deposits	$	1,083,214							$	1,080,676							$	1,159,241
Accrued interest payable and other liabilities		74,563								80,942								77,942
Stockholders’ equity		738,372								726,332								715,485
Total average liabilities and stockholders’ equity	$	7,858,020							$	7,779,328							$	7,924,751
Net FTE interest income (non-GAAP) ⁽⁵⁾				$	48,927							$	47,302							$	44,202
Less FTE adjustments ⁽⁴⁾					2,017								2,023								2,112
Net Interest Income				$	46,910							$	45,279							$	42,090
Net FTE interest margin (Non-GAAP) ⁽⁴⁾⁽⁵⁾							2.66	%							2.64	%							2.41	%

⁽¹⁾ Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
⁽²⁾ Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
⁽³⁾ Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
⁽⁴⁾ Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company’s performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate
⁽⁵⁾ Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

	Credit Quality
	(Dollars in Thousands Except Ratios, Unaudited)
	Quarter Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			% Change
	2024			2024			2024			2023			2023			3Q24 vs 2Q24			3Q24 vs 3Q23
Non-accrual loans
Commercial	$	6,830		$	4,321		$	5,493		$	7,362		$	6,919			58	%		(1	)%
Residential Real estate		9,529			8,489			8,725			8,058			7,644			12	%		25	%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		7,208			5,453			4,835			4,290			4,493			32	%		60	%
Total non-accrual loans		23,567			18,263			19,053			19,710			19,056			29	%		24	%
90 days and greater delinquent – accruing interest		819			1,039			108			559			392			(21	)%		109	%
Total non-performing loans		24,386			19,302			19,161			20,269			19,448			26	%		25	%

Other real estate owned
Commercial	$	1,158		$	1,111		$	1,124		$	1,124		$	1,287			4	%		(10	)%
Residential Real estate		—			—			—			182			32			—	%		(100	)%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		36			57			50			205			72			(37	)%		(50	)%
Total other real estate owned	$	1,194		$	1,168		$	1,174		$	1,511		$	1,391			2	%		(14	)%

Total non-performing assets	$	25,580		$	20,470		$	20,335		$	21,780		$	20,839			25	%		23	%

Loan data:
Accruing 30 to 89 days past due loans	$	18,087		$	19,785		$	15,154		$	16,595		$	13,089			(9	)%		38	%
Substandard loans		59,775			51,221			47,469			49,526			47,563			17	%		26	%
Net charge-offs (recoveries)
Commercial		(55	)		57			(57	)		233			142			(196	)%		(139	)%
Residential Real estate		(9	)		(4	)		(5	)		21			(39	)		(125	)%		77	%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		439			534			488			531			619			(18	)%		(29	)%
Total net charge-offs		375			587			426			785			722			(36	)%		(48	)%

Allowance for credit losses
Commercial		32,854			31,941			30,514			29,736			29,472			3	%		11	%
Residential Real estate		2,675			2,588			2,655			2,503			2,794			3	%		(4	)%
Mortgage warehouse		862			736			659			481			714			17	%		21	%
Consumer		16,490			16,950			16,559			17,309			16,719			(3	)%		(1	)%
Total allowance for credit losses	$	52,881		$	52,215		$	50,387		$	50,029		$	49,699			1	%		6	%

Credit quality ratios
Non-accrual loans to HFI loans		0.49	%		0.38	%		0.41	%		0.45	%		0.44	%
Non-performing assets to total assets		0.32	%		0.26	%		0.26	%		0.27	%		0.26	%
Annualized net charge-offs of average total loans		0.03	%		0.05	%		0.04	%		0.07	%		0.07	%
Allowance for credit losses to HFI loans		1.10	%		1.08	%		1.09	%		1.13	%		1.14	%

Non–GAAP Reconciliation of Net Fully-Taxable Equivalent (“FTE”) Interest Margin
(Dollars in Thousands, Unaudited)
		Three Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
Interest income (GAAP)	(A)	$	90,888		$	86,981		$	85,264		$	83,514		$	80,125
Taxable-equivalent adjustment:
Investment securities – tax exempt ⁽¹⁾			1,677			1,695			1,715			1,799			1,861
Loan receivable ⁽²⁾			340			328			353			314			251
Interest income (non-GAAP)	(B)		92,905			89,004			87,332			85,627			82,237
Interest expense (GAAP)	(C)		43,978			41,702			41,976			41,257			38,035
Net interest income (GAAP)	(D) =(A) – (C)		46,910			45,279			43,288			42,257			42,090
Net FTE interest income (non-GAAP)	(E) = (B) – (C)		48,927			47,302			45,356			44,370			44,202
Average interest earning assets	(F)		7,330,263			7,212,788			7,293,559			7,239,034			7,286,611
Net FTE interest margin (non-GAAP)	(G) = (E*) / (F)		2.66	%		2.64	%		2.50	%		2.43	%		2.41	%

⁽¹⁾ The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
⁽²⁾ The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
*Annualized

Non–GAAP Reconciliation of Return on Average Tangible Common Equity
(Dollars in Thousands, Unaudited)
		Three Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023

Net income (loss) (GAAP)	(A)	$	18,180		$	14,140		$	13,991		$	(25,215	)	$	16,205

Average stockholders’ equity	(B)		738,372			726,332			725,083			702,793			715,485
Average intangible assets	(C)		166,819			167,659			168,519			169,401			170,301
Average tangible equity (Non-GAAP)	(D) = (B) – (C)	$	571,553		$	558,673		$	556,564		$	533,392		$	545,184
Return on average tangible common equity (“ROACE”) (non-GAAP)	(E) = (A*) / (D)		12.65	%		10.18	%		10.11	%	(18.76		)%		11.79	%
*Annualized

Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
(Dollars in Thousands, Unaudited)
		Three Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
Total stockholders’ equity (GAAP)	(A)	$	754,822		$	726,665		$	721,250		$	718,812		$	693,369
Intangible assets (end of period)	(B)		166,278			167,121			167,965			168,837			169,741
Total tangible common equity (non-GAAP)	(C) = (A) – (B)	$	588,544		$	559,544		$	553,285		$	549,975		$	523,628

Total assets (GAAP)	(D)		7,927,457			7,912,527			7,855,707			7,940,485			7,959,434
Intangible assets (end of period)	(B)		166,278			167,121			167,965			168,837			169,741
Total tangible assets (non-GAAP)	(E) = (D) – (B)	$	7,761,179		$	7,745,406		$	7,687,742		$	7,771,648		$	7,789,693

Tangible common equity to tangible assets (Non-GAAP)	(G) = (C) / (E)		7.58	%		7.22	%		7.20	%		7.08	%		6.72	%

Non–GAAP Reconciliation of Tangible Book Value Per Share
(Dollars in Thousands, Unaudited)
		Three Months Ended
		September 30,		June 30,		March 31,		December 31,		September 30,
		2024		2024		2024		2023		2023
Total stockholders’ equity (GAAP)	(A)	$	754,822	$	726,665	$	721,250	$	718,812	$	693,369
Intangible assets (end of period)	(B)		166,278		167,121		167,965		168,837		169,741
Total tangible common equity (non-GAAP)	(C) = (A) – (B)	$	588,544	$	559,544	$	553,285	$	549,975	$	523,628
Common shares outstanding	(D)		43,712,059		43,712,059		43,726,380		43,652,063		43,648,501

Tangible book value per common share (non-GAAP)	(E) = (C) / (D)	$	13.46	$	12.80	$	12.65	$	12.60	$	12.00

Contact:	John R. Stewart, CFA
	EVP, Chief Financial Officer
Phone:	(219) 814–5833
Fax:	(219) 874–9280
Date:	October 23, 2024

The MIL Network –

January 25, 2025

MIL-OSI: Univest Financial Corporation Reports Third Quarter Results

Source: GlobeNewswire (MIL-OSI)

SOUDERTON, Pa., Oct. 23, 2024 (GLOBE NEWSWIRE) — Univest Financial Corporation (“Univest” or the “Corporation”) (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. (the “Bank”) and its insurance, investments and equipment financing subsidiaries, announced net income for the quarter ended September 30, 2024 was $18.6 million, or $0.63 diluted earnings per share, compared to net income of $17.0 million, or $0.58 diluted earnings per share, for the quarter ended September 30, 2023.

Loans
Gross loans and leases increased $45.9 million, or 0.7% (2.8% annualized), from June 30, 2024, primarily due to increases in commercial real estate and residential mortgage loans, partially offset by decreases in construction and commercial loans. Gross loans and leases increased $163.5 million, or 2.5% (3.3% annualized), from December 31, 2023, primarily due to increases in commercial, commercial real estate and residential mortgage loans, partially offset by a decrease in construction loans.

Deposits and Liquidity
Total deposits increased $358.8 million, or 5.5% (22.0% annualized), from June 30, 2024, primarily due to seasonal increases in public funds partially offset by decreases in commercial, consumer and brokered deposits. Total deposits increased $478.4 million, or 7.5% (10.0% annualized), from December 31, 2023, primarily due to increases in commercial, brokered, and seasonal public funds deposits. Noninterest-bearing deposits totaled $1.3 billion and represented 19.3% of total deposits at September 30, 2024, compared to $1.4 billion representing 21.5% of total deposits at June 30, 2024. Unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, totaled $1.4 billion at September 30, 2024 and June 30, 2024. This represented 20.3% of total deposits at September 30, 2024, compared to 22.1% at June 30, 2024.

As of September 30, 2024, the Corporation reported on balance sheet cash and cash equivalents totaling $504.7 million. The Corporation and its subsidiaries had committed borrowing capacity of $3.6 billion at September 30, 2024, of which $1.8 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $468.0 million at September 30, 2024. Future availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will.

Net Interest Income and Margin
Net interest income of $53.2 million for the third quarter of 2024 decreased $386 thousand, or 0.7%, from the third quarter of 2023 and increased $2.2 million, or 4.3%, from the second quarter of 2024. The decrease in net interest income for the three months ended September 30, 2024 compared to the same period in the prior year reflects the continued pressure on the cost of deposits due to the shift of balances from lower to higher cost deposit products which exceeded the increase in interest income from asset yield expansion and the increase in average interest-earning assets. However, we continue to see indicators of stabilization in cost of funds and our funding mix. The increase in net interest income for the three months ended September 30, 2024 compared to the three months ended June 30, 2024 was due to higher average balances of interest-earning assets and increased yields on these assets, partially offset by higher interest-bearing liability balances and costs.

Net interest margin, on a tax-equivalent basis, was 2.82% for the third quarter of 2024, compared to 2.84% for the second quarter of 2024 and 2.96% for the third quarter of 2023. Excess liquidity reduced net interest margin by approximately nine basis points for the quarter ended September 30, 2024 compared to approximately two basis points for the quarter ended June 30, 2024 and approximately four basis points for the quarter ended September 30, 2023. Excluding the impact of excess liquidity, the net interest margin, on a tax-equivalent basis, was 2.91% for the quarter ended September 30, 2024 compared to 2.86% for the quarter ended June 30, 2024 and 3.00% for the quarter ended September 30, 2023.

Noninterest Income
Noninterest income for the quarter ended September 30, 2024 was $20.2 million, an increase of $1.5 million, or 7.8%, from the comparable period in the prior year.

Investment advisory commission and fee income increased $476 thousand, or 9.8%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to increased assets under management and supervision driven by new business and market appreciation. Insurance commission and fee income increased $386 thousand, or 8.0%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to an increase in commercial lines premiums. Other income increased $1.2 million, or 512.3%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to an increase of $705 thousand in gains on the sale of Small Business Administration loans.

Other service fee income decreased $1.2 million, or 39.9%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to a $785 thousand valuation allowance recorded on mortgage servicing rights driven by the increase in prepayment speed assumptions as a result of the decrease in interest rates during the quarter. Additionally, net servicing fees on sold mortgage loans decreased by $307 thousand, primarily attributable to the sale of mortgage servicing rights associated with $591.1 million of serviced loans in the first quarter of 2024 and increased amortization driven by prepayments.

Noninterest Expense
Noninterest expense for the quarter ended September 30, 2024 was $48.6 million, a decrease of $436 thousand, or 0.9%, from the comparable period in the prior year.

Other expense decreased $808 thousand, or 11.0%, for the quarter ended September 30, 2024 primarily due to decreases in retirement plan costs, insurance expense, recruiter fees, and bank shares tax expense.

Professional fees decreased $184 thousand, or 10.4%, for the quarter ended September 30, 2024 primarily driven by a reduction in consultant fees. Deposit insurance premiums decreased $161 thousand, or 12.8%, for the quarter ended September 30, 2024 driven by an improvement in the financial ratios that contribute to our deposit insurance assessment rate.

Salaries, benefits and commissions increased $724 thousand, or 2.4%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to increases in salary expense and an increase in incentive compensation due to increased profitability, partially offset by an increase in compensation capitalized driven by higher loan production.

Tax Provision
The effective income tax rate was 20.6% for the quarter ended September 30, 2024, compared to an effective tax rate of 20.0% for the quarter ended September 30, 2023. The effective tax rates for the three months ended September 30, 2024 and 2023 reflected the benefits of tax-exempt income from investments in municipal securities and loans and leases. The increase in effective tax rate in the quarter was primarily due to increases in state tax rates.

Asset Quality and Provision for Credit Losses
Nonperforming assets totaled $36.6 million at September 30, 2024 and June 30, 2024, and $40.1 million at September 30, 2023.

Net loan and lease charge-offs were $820 thousand for the three months ended September 30, 2024 compared to $809 thousand and $969 thousand for the three months ended June 30, 2024 and September 30, 2023, respectively.

The provision for credit losses was $1.4 million for the three months ended September 30, 2024 compared to $707 thousand and $2.0 million for the three months ended June 30, 2024 and September 30, 2023, respectively. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.28% at September 30, 2024, June 30, 2024 and September 30, 2023.

Dividend and Share Repurchases
On October 23, 2024, Univest declared a quarterly cash dividend of $0.21 per share to be paid on November 20, 2024 to shareholders of record as of November 6, 2024. During the quarter ended September 30, 2024, the Corporation repurchased 156,728 shares of common stock at an average price of $26.47 per share. Including brokerage fees and excise tax, the average price per share was $26.76. As of September 30, 2024, 539,646 shares are available for repurchase under the Share Repurchase Plan. On October 23, 2024, the Corporation’s Board of Directors approved an increase of 1,000,000 shares available for repurchase under the Corporation’s share repurchase program.

Conference Call
Univest will host a conference call to discuss third quarter 2024 results on Thursday, October 24, 2024 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=27c257f2&confId=71976. The general public can access the call by dialing 1-833-470-1428; using Access Code 752766. A replay of the conference call will be available through December 24, 2024 by dialing 1-866-813-9403; using Access Code 807549.

About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $8.2 billion in assets and $5.3 billion in assets under management and supervision through its Wealth Management lines of business at September 30, 2024. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations primarily in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices and online at www.univest.net.

This press release and the reports Univest files with the Securities and Exchange Commission often contain “forward-looking statements” relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business, prospects and strategies of Univest. These forward-looking statements involve certain risks and uncertainties in that there are a number of important factors that could cause Univest’s future financial condition, results of operations, business, prospects or strategies to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition and demand for financial services in our market area; (2) inflation and/or changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations and/or lead to higher operating costs and higher costs we pay to retain and attract deposits; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and/or credit loss provisions; (4) changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; (5) our ability to access cost-effective funding; (6) changes in economic conditions nationally and in our market, including potential recessionary conditions and the levels of unemployment in our market area; (7) economic assumptions or changes in our methodology, either of which may impact our allowance for credit losses calculation; (8) legislative, regulatory, accounting or tax changes; (9) monetary and fiscal policies of the U.S. government, including the policies of the Board of Governors of the Federal Reserve System; (10) technological issues that may adversely affect our operations or those of our customers; (11) a failure or breach in our operational or security systems or infrastructure, including cyberattacks; (12) changes in the securities markets; (13) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (14) our ability to enter into new markets successfully and capitalize on growth opportunities and/or (15) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission.

(UVSP – ER)

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
September 30, 2024
(Dollars in thousands)

Balance Sheet (Period End)	09/30/24			06/30/24			03/31/24			12/31/23			09/30/23
ASSETS
Cash and due from banks	$	78,346		$	66,808		$	49,318		$	72,815		$	68,900
Interest-earning deposits with other banks		426,354			124,103			152,288			176,984			221,441
Cash and cash equivalents		504,700			190,911			201,606			249,799			290,341
Investment securities held-to-maturity		137,681			140,112			143,474			145,777			149,451
Investment securities available for sale, net of allowance for credit losses		354,100			342,776			350,819			351,553			334,538
Investments in equity securities		2,406			2,995			3,355			3,293			4,054
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost		40,235			37,438			37,394			40,499			42,417
Loans held for sale		17,131			28,176			13,188			11,637			16,473
Loans and leases held for investment		6,730,734			6,684,837			6,579,086			6,567,214			6,574,958
Less: Allowance for credit losses, loans and leases		(86,041	)		(85,745	)		(85,632	)		(85,387	)		(83,837	)
Net loans and leases held for investment		6,644,693			6,599,092			6,493,454			6,481,827			6,491,121
Premises and equipment, net		47,411			48,174			48,739			51,441			51,287
Operating lease right-of-use assets		29,260			29,985			30,702			31,795			31,053
Goodwill		175,510			175,510			175,510			175,510			175,510
Other intangibles, net of accumulated amortization		7,158			7,701			7,473			10,950			11,079
Bank owned life insurance		138,744			137,823			137,896			131,344			130,522
Accrued interest and other assets		106,708			114,753			102,958			95,203			100,220
Total assets	$	8,205,737		$	7,855,446		$	7,746,568		$	7,780,628		$	7,828,066

LIABILITIES
Noninterest-bearing deposits	$	1,323,953		$	1,397,308		$	1,401,806		$	1,468,320		$	1,432,559
Interest-bearing deposits:		5,530,195			5,098,014			5,003,552			4,907,461			5,006,606
Total deposits		6,854,148			6,495,322			6,405,358			6,375,781			6,439,165
Short-term borrowings		8,256			11,781			4,816			6,306			14,676
Long-term debt		225,000			250,000			250,000			310,000			320,000
Subordinated notes		149,136			149,011			148,886			148,761			148,636
Operating lease liabilities		32,246			33,015			33,744			34,851			34,017
Accrued expenses and other liabilities		59,880			62,180			60,095			65,721			64,374
Total liabilities		7,328,666			7,001,309			6,902,899			6,941,420			7,020,868

SHAREHOLDERS’ EQUITY
Common stock, $5 par value: 48,000,000 shares authorized and 31,556,799 shares issued		157,784			157,784			157,784			157,784			157,784
Additional paid-in capital		301,262			300,166			298,914			301,066			300,171
Retained earnings		512,938			500,482			488,790			474,691			464,634
Accumulated other comprehensive loss, net of tax benefit		(41,623	)		(54,124	)		(54,740	)		(50,646	)		(71,586	)
Treasury stock, at cost		(53,290	)		(50,171	)		(47,079	)		(43,687	)		(43,805	)
Total shareholders’ equity		877,071			854,137			843,669			839,208			807,198
Total liabilities and shareholders’ equity	$	8,205,737		$	7,855,446		$	7,746,568		$	7,780,628		$	7,828,066


	For the three months ended,															For the nine months ended,
Balance Sheet (Average)	09/30/24			06/30/24			03/31/24			12/31/23			09/30/23			09/30/24		09/30/23
Assets	$	8,005,265		$	7,721,540		$	7,696,575		$	7,865,634		$	7,693,983		$	7,808,514	$	7,453,070
Investment securities, net of allowance for credit losses		493,334			493,140			500,983			489,587			506,341			495,810		513,704
Loans and leases, gross		6,730,791			6,640,536			6,577,365			6,594,233			6,537,169			6,649,860		6,359,498
Deposits		6,641,324			6,353,752			6,303,854			6,470,141			6,222,710			6,433,737		5,968,659
Shareholders’ equity		864,406			844,572			842,546			814,941			811,515			850,559		802,541

Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
September 30, 2024
(Dollars in thousands)

Summary of Major Loan and Lease Categories (Period End)	09/30/24			06/30/24			03/31/24			12/31/23			09/30/23
Commercial, financial and agricultural	$	1,044,043		$	1,055,332		$	1,014,568		$	989,723		$	1,050,004
Real estate-commercial		3,442,083			3,373,889			3,283,729			3,302,798			3,275,140
Real estate-construction		285,616			313,229			379,995			394,462			427,561
Real estate-residential secured for business purpose		530,674			532,628			524,196			517,002			516,471
Real estate-residential secured for personal purpose		969,562			952,665			922,412			909,015			861,122
Real estate-home equity secured for personal purpose		182,901			179,150			177,446			179,282			176,855
Loans to individuals		26,794			26,430			27,200			27,749			27,331
Lease financings		249,061			251,514			249,540			247,183			240,474
Total loans and leases held for investment, net of deferred income		6,730,734			6,684,837			6,579,086			6,567,214			6,574,958
Less: Allowance for credit losses, loans and leases		(86,041	)		(85,745	)		(85,632	)		(85,387	)		(83,837	)
Net loans and leases held for investment	$	6,644,693		$	6,599,092		$	6,493,454		$	6,481,827		$	6,491,121


Asset Quality Data (Period End)	09/30/24			06/30/24			03/31/24			12/31/23			09/30/23
Nonaccrual loans and leases, including nonaccrual loans held for sale*	$	15,319		$	16,200		$	20,363		$	20,527		$	18,085
Accruing loans and leases 90 days or more past due		310			205			268			534			2,135
Total nonperforming loans and leases		15,629			16,405			20,631			21,061			20,220
Other real estate owned		20,915			20,007			19,220			19,032			19,916
Repossessed assets		79			149			167			–			–
Total nonperforming assets	$	36,623		$	36,561		$	40,018		$	40,093		$	40,136
Nonaccrual loans and leases / Loans and leases held for investment		0.23	%		0.24	%		0.31	%		0.31	%		0.28	%
Nonperforming loans and leases / Loans and leases held for investment		0.23	%		0.25	%		0.31	%		0.32	%		0.31	%
Nonperforming assets / Total assets		0.45	%		0.47	%		0.52	%		0.52	%		0.51	%

Allowance for credit losses, loans and leases	$	86,041		$	85,745		$	85,632		$	85,387		$	83,837
Allowance for credit losses, loans and leases / Loans and leases held for investment		1.28	%		1.28	%		1.30	%		1.30	%		1.28	%
Allowance for credit losses, loans and leases / Nonaccrual loans and leases		561.66	%		529.29	%		420.53	%		415.97	%		463.57	%
Allowance for credit losses, loans and leases / Nonperforming loans and leases		550.52	%		522.68	%		415.06	%		405.43	%		414.62	%
*Includes a $5.8 million loan held for sale at September 30, 2023.

	For the three months ended,															For the nine months ended,
	09/30/24			06/30/24			03/31/24			12/31/23			09/30/23			09/30/24			09/30/23
Net loan and lease charge-offs	$	820		$	809		$	1,406		$	1,074		$	969		$	3,035		$	4,323
Net loan and lease charge-offs (annualized)/Average loans and leases		0.05	%		0.05	%		0.09	%		0.06	%		0.06	%		0.06	%		0.09	%

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
September 30, 2024
(Dollars in thousands, except per share data)
	For the three months ended,										For the nine months ended,
For the period:	09/30/24		06/30/24		03/31/24		12/31/23		09/30/23		09/30/24		09/30/23
Interest income	$	106,438	$	99,832	$	98,609	$	101,232	$	97,106	$	304,879	$	270,498
Interest expense		53,234		48,805		47,142		48,472		43,516		149,181		103,261
Net interest income		53,204		51,027		51,467		52,760		53,590		155,698		167,237
Provision for credit losses		1,414		707		1,432		1,931		2,024		3,553		8,839
Net interest income after provision for credit losses		51,790		50,320		50,035		50,829		51,566		152,145		158,398
Noninterest income:
Trust fee income		2,110		2,008		2,108		1,943		1,910		6,226		5,789
Service charges on deposit accounts		2,037		1,982		1,871		1,960		1,816		5,890		5,088
Investment advisory commission and fee income		5,319		5,238		5,194		4,561		4,843		15,751		14,303
Insurance commission and fee income		5,238		5,167		7,201		4,596		4,852		17,606		16,447
Other service fee income		1,815		3,044		6,415		2,967		3,020		11,274		9,414
Bank owned life insurance income		921		1,086		842		823		806		2,849		2,362
Net gain on sales of investment securities		18		–		–		–		–		18		–
Net gain on mortgage banking activities		1,296		1,710		939		809		1,216		3,945		2,880
Other income		1,396		745		1,025		961		228		3,166		1,921
Total noninterest income		20,150		20,980		25,595		18,620		18,691		66,725		58,204
Noninterest expense:
Salaries, benefits and commissions		30,702		30,187		31,338		29,321		29,978		92,227		90,867
Net occupancy		2,723		2,679		2,872		2,751		2,594		8,274		7,935
Equipment		1,107		1,088		1,111		1,066		1,087		3,306		3,066
Data processing		4,154		4,161		4,495		4,444		4,189		12,810		12,355
Professional fees		1,579		1,466		1,688		1,768		1,763		4,733		5,373
Marketing and advertising		490		715		416		632		555		1,621		1,548
Deposit insurance premiums		1,097		1,098		1,135		1,350		1,258		3,330		3,475
Intangible expenses		164		188		187		212		220		539		726
Restructuring charges		–		–		–		189		–		–		1,330
Other expense		6,536		7,126		6,832		7,313		7,344		20,494		21,641
Total noninterest expense		48,552		48,708		50,074		49,046		48,988		147,334		148,316
Income before taxes		23,388		22,592		25,556		20,403		21,269		71,536		68,286
Income tax expense		4,810		4,485		5,251		4,149		4,253		14,546		13,436
Net income	$	18,578	$	18,107	$	20,305	$	16,254	$	17,016	$	56,990	$	54,850
Net income per share:
Basic	$	0.64	$	0.62	$	0.69	$	0.55	$	0.58	$	1.95	$	1.86
Diluted	$	0.63	$	0.62	$	0.69	$	0.55	$	0.58	$	1.94	$	1.86
Dividends declared per share	$	0.21	$	0.21	$	0.21	$	0.21	$	0.21	$	0.63	$	0.63
Weighted average shares outstanding		29,132,948		29,246,977		29,413,999		29,500,147		29,479,066		29,264,161		29,410,852
Period end shares outstanding		29,081,108		29,190,640		29,337,919		29,511,721		29,508,128		29,081,108		29,508,128

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
September 30, 2024

	For the three months ended,															For the nine months ended,
Profitability Ratios (annualized)	09/30/24			06/30/24			03/31/24			12/31/23			09/30/23			09/30/24			09/30/23

Return on average assets		0.92	%		0.94	%		1.06	%		0.82	%		0.88	%		0.97	%		0.98	%
Return on average assets, excluding restructuring		0.92	%		0.94	%		1.06	%		0.83	%		0.88	%		0.97	%		1.00	%
charges (1)
Return on average shareholders’ equity		8.55	%		8.62	%		9.69	%		7.91	%		8.32	%		8.95	%		9.14	%
Return on average shareholders’ equity, excluding		8.55	%		8.62	%		9.69	%		7.99	%		8.32	%		8.95	%		9.31	%
restructuring charges (1)
Return on average tangible common equity (1)(3)		10.84	%		11.01	%		12.38	%		10.23	%		10.77	%		11.40	%		11.87	%
Return on average tangible common equity, excluding		10.84	%		11.01	%		12.38	%		10.32	%		10.77	%		11.40	%		12.10	%
restructuring charges (1)(3)
Net interest margin (FTE)		2.82	%		2.84	%		2.88	%		2.84	%		2.96	%		2.85	%		3.22	%
Efficiency ratio (2)		65.7	%		67.1	%		64.6	%		68.3	%		67.3	%		65.8	%		65.3	%
Efficiency ratio, excluding restructuring charges (1)(2)		65.7	%		67.1	%		64.6	%		68.0	%		67.3	%		65.8	%		64.7	%

Capitalization Ratios

Dividends declared to net income		33.0	%		33.9	%		30.5	%		38.1	%		36.4	%		32.4	%		33.8	%
Shareholders’ equity to assets (Period End)		10.69	%		10.87	%		10.89	%		10.79	%		10.31	%		10.69	%		10.31	%
Tangible common equity to tangible assets (1)		8.71	%		8.81	%		8.80	%		8.70	%		8.22	%		8.71	%		8.22	%
Common equity book value per share	$	30.16		$	29.26		$	28.76		$	28.44		$	27.36		$	30.16		$	27.36
Tangible common equity book value per share (1)	$	24.05		$	23.17		$	22.70		$	22.41		$	21.32		$	24.05		$	21.32

Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio		9.53	%		9.74	%		9.65	%		9.36	%		9.43	%		9.53	%		9.43	%
Common equity tier 1 risk-based capital ratio		10.88	%		10.72	%		10.71	%		10.58	%		10.32	%		10.88	%		10.32	%
Tier 1 risk-based capital ratio		10.88	%		10.72	%		10.71	%		10.58	%		10.32	%		10.88	%		10.32	%
Total risk-based capital ratio		14.27	%		14.09	%		14.11	%		13.90	%		13.58	%		14.27	%		13.58	%

(1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance measures is included below.
(2) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income.
(3) Net income before amortization of intangibles to average tangible common equity.

Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
	For the Three Months Ended,
Tax Equivalent Basis	September 30, 2024							June 30, 2024
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	270,724		$	3,624	5.33	%	$	84,546		$	1,108	5.27	%
Obligations of state and political subdivisions*		1,283			7	2.17			1,269			7	2.22
Other debt and equity securities		492,051			3,706	3.00			491,871			3,741	3.06
Federal Home Loan Bank, Federal Reserve Bank and other stock		38,769			742	7.61			37,286			700	7.55
Total interest-earning deposits, investments and other interest-earning assets		802,827			8,079	4.00			614,972			5,556	3.63

Commercial, financial, and agricultural loans		997,465			18,459	7.36			983,615			17,447	7.13
Real estate—commercial and construction loans		3,592,556			52,672	5.83			3,549,206			50,577	5.73
Real estate—residential loans		1,692,361			21,127	4.97			1,660,489			20,413	4.94
Loans to individuals		26,651			549	8.20			26,821			542	8.13
Tax-exempt loans and leases		232,159			2,565	4.40			230,495			2,476	4.32
Lease financings		189,599			3,275	6.87			189,910			3,105	6.58
Gross loans and leases		6,730,791			98,647	5.83			6,640,536			94,560	5.73
Total interest-earning assets		7,533,618			106,726	5.64			7,255,508			100,116	5.55
Cash and due from banks		62,902							56,387
Allowance for credit losses, loans and leases		(86,517	)						(86,293	)
Premises and equipment, net		47,989							48,725
Operating lease right-of-use assets		29,620							30,344
Other assets		417,653							416,869
Total assets	$	8,005,265						$	7,721,540

Liabilities:
Interest-bearing checking deposits	$	1,215,166		$	8,824	2.89	%	$	1,094,150		$	7,311	2.69	%
Money market savings		1,849,628			21,213	4.56			1,692,759			19,131	4.55
Regular savings		727,395			878	0.48			759,960			929	0.49
Time deposits		1,491,560			17,255	4.60			1,422,113			16,134	4.56
Total time and interest-bearing deposits		5,283,749			48,170	3.63			4,968,982			43,505	3.52

Short-term borrowings		8,210			1	0.05			29,506			242	2.30
Long-term debt		247,826			2,781	4.46			250,000			2,777	4.47
Subordinated notes		149,068			2,282	6.09			148,943			2,281	6.16
Total borrowings		405,104			5,064	4.97			428,449			5,300	4.98
Total interest-bearing liabilities		5,688,853			53,234	3.72			5,397,431			48,805	3.64
Noninterest-bearing deposits		1,357,575							1,384,770
Operating lease liabilities		32,627							33,382
Accrued expenses and other liabilities		61,804							61,385
Total liabilities		7,140,859							6,876,968
Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)		7,046,428				3.01			6,782,201				2.89

Shareholders’ Equity:
Common stock		157,784							157,784
Additional paid-in capital		300,565							299,426
Retained earnings and other equity		406,057							387,362
Total shareholders’ equity		864,406							844,572
Total liabilities and shareholders’ equity	$	8,005,265						$	7,721,540
Net interest income				$	53,492						$	51,311

Net interest spread						1.92							1.91
Effect of net interest-free funding sources						0.90							0.93
Net interest margin						2.82	%						2.84	%
Ratio of average interest-earning assets to average interest-bearing liabilities		132.43	%						134.43	%

* Obligations of states and political subdivisions are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $897 thousand and $698 thousand for the three months ended September 30, 2024 and June 30, 2024,, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended September 30, 2024 and June 30, 2024 have been calculated using the Corporation’s federal applicable rate of 21.0%.

Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
	For the Three Months Ended September 30,
Tax Equivalent Basis	2024							2023
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	270,724		$	3,624	5.33	%	$	143,109		$	1,865	5.17	%
Obligations of state and political subdivisions*		1,283			7	2.17			2,281			16	2.78
Other debt and equity securities		492,051			3,706	3.00			504,060			3,540	2.79
Federal Home Loan Bank, Federal Reserve Bank and other stock		38,769			742	7.61			40,406			712	6.99
Total interest-earning deposits, investments and other interest-earning assets		802,827			8,079	4.00			689,856			6,133	3.53

Commercial, financial, and agricultural loans		997,465			18,459	7.36			995,355			17,545	6.99
Real estate—commercial and construction loans		3,592,556			52,672	5.83			3,552,709			49,548	5.53
Real estate—residential loans		1,692,361			21,127	4.97			1,543,360			18,270	4.70
Loans to individuals		26,651			549	8.20			26,538			525	7.85
Tax-exempt loans and leases		232,159			2,565	4.40			234,685			2,430	4.11
Lease financings		189,599			3,275	6.87			184,522			2,928	6.30
Gross loans and leases		6,730,791			98,647	5.83			6,537,169			91,246	5.54
Total interest-earning assets		7,533,618			106,726	5.64			7,227,025			97,379	5.35
Cash and due from banks		62,902							62,673
Allowance for credit losses, loans and leases		(86,517	)						(83,827	)
Premises and equipment, net		47,989							52,071
Operating lease right-of-use assets		29,620							31,647
Other assets		417,653							404,394
Total assets	$	8,005,265						$	7,693,983

Liabilities:
Interest-bearing checking deposits	$	1,215,166		$	8,824	2.89	%	$	1,070,063		$	6,703	2.49	%
Money market savings		1,849,628			21,213	4.56			1,645,210			17,850	4.30
Regular savings		727,395			878	0.48			828,672			861	0.41
Time deposits		1,491,560			17,255	4.60			1,140,622			11,668	4.06
Total time and interest-bearing deposits		5,283,749			48,170	3.63			4,684,567			37,082	3.14

Short-term borrowings		8,210			1	0.05			93,028			1,117	4.76
Long-term debt		247,826			2,781	4.46			320,000			3,036	3.76
Subordinated notes		149,068			2,282	6.09			148,568			2,281	6.09
Total borrowings		405,104			5,064	4.97			561,596			6,434	4.55
Total interest-bearing liabilities		5,688,853			53,234	3.72			5,246,163			43,516	3.29
Noninterest-bearing deposits		1,357,575							1,538,143
Operating lease liabilities		32,627							34,788
Accrued expenses and other liabilities		61,804							63,374
Total liabilities		7,140,859							6,882,468
Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)		7,046,428				3.01			6,784,306				2.54

Shareholders’ Equity:
Common stock		157,784							157,784
Additional paid-in capital		300,565							299,575
Retained earnings and other equity		406,057							354,156
Total shareholders’ equity		864,406							811,515
Total liabilities and shareholders’ equity	$	8,005,265						$	7,693,983
Net interest income				$	53,492						$	53,863

Net interest spread						1.92							2.06
Effect of net interest-free funding sources						0.90							0.90
Net interest margin						2.82	%						2.96	%
Ratio of average interest-earning assets to average interest-bearing liabilities		132.43	%						137.76	%

* Obligations of states and political subdivisions are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $897 thousand and $563 thousand for the three months ended September 30, 2024 and 2023, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended September 30, 2024 and 2023 have been calculated using the Corporation’s federal applicable rate of 21.0%.

Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
	For the Nine Months Ended September 30,
Tax Equivalent Basis	2024							2023
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	159,114		$	6,341	5.32	%	$	79,630		$	2,856	4.80	%
Obligations of state and political subdivisions*		1,500			26	2.32			2,284			48	2.81
Other debt and equity securities		494,310			11,094	3.00			511,420			10,547	2.76
Federal Home Loan Bank, Federal Reserve Bank and other stock		38,392			2,166	7.54			39,664			2,102	7.09
Total interest-earning deposits, investments and other interest-earning assets		693,316			19,627	3.78			632,998			15,553	3.29

Commercial, financial, and agricultural loans		972,003			52,429	7.21			997,590			50,002	6.70
Real estate—commercial and construction loans		3,572,375			153,890	5.75			3,447,551			137,929	5.35
Real estate—residential loans		1,657,142			61,095	4.92			1,478,871			51,216	4.63
Loans to individuals		26,928			1,639	8.13			26,859			1,453	7.23
Tax-exempt loans and leases		231,679			7,505	4.33			233,211			7,159	4.10
Lease financings		189,733			9,549	6.72			175,416			8,128	6.20
Gross loans and leases		6,649,860			286,107	5.75			6,359,498			255,887	5.38
Total interest-earning assets		7,343,176			305,734	5.56			6,992,496			271,440	5.19
Cash and due from banks		58,070							59,811
Allowance for credit losses, loans and leases		(86,435	)						(81,829	)
Premises and equipment, net		49,098							52,067
Operating lease right-of-use assets		30,359							31,384
Other assets		414,246							399,141
Total assets	$	7,808,514						$	7,453,070

Liabilities:
Interest-bearing checking deposits	$	1,163,526		$	24,353	2.80	%	$	980,725		$	15,259	2.08	%
Money market savings		1,749,592			59,564	4.55			1,532,318			43,020	3.75
Regular savings		752,336			2,712	0.48			900,448			2,375	0.35
Time deposits		1,384,576			47,019	4.54			845,635			22,231	3.51
Total time and interest-bearing deposits		5,050,030			133,648	3.54			4,259,126			82,885	2.60

Short-term borrowings		15,919			248	2.08			195,606			7,094	4.85
Long-term debt		263,380			8,441	4.28			245,366			6,438	3.51
Subordinated notes		148,944			6,844	6.14			148,444			6,844	6.16
Total borrowings		428,243			15,533	4.85			589,416			20,376	4.62
Total interest-bearing liabilities		5,478,273			149,181	3.64			4,848,542			103,261	2.85
Noninterest-bearing deposits		1,383,707							1,709,533
Operating lease liabilities		33,389							34,548
Accrued expenses and other liabilities		62,586							57,906
Total liabilities		6,957,955							6,650,529
Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)		6,861,980				2.90			6,558,075				2.11

Shareholders’ Equity:
Common stock		157,784							157,784
Additional paid-in capital		300,224							299,550
Retained earnings and other equity		392,551							345,207
Total shareholders’ equity		850,559							802,541
Total liabilities and shareholders’ equity	$	7,808,514						$	7,453,070
Net interest income				$	156,553						$	168,179

Net interest spread						1.92							2.34
Effect of net interest-free funding sources						0.93							0.88
Net interest margin						2.85	%						3.22	%
Ratio of average interest-earning assets to average interest-bearing liabilities		134.04	%						144.22	%

* Obligations of states and political subdivisions are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $2.0 million and $1.7 million for the nine months ended September 30, 2024 and 2023, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the nine months ended September 30, 2024 and 2023 have been calculated using the Corporation’s federal applicable rate of 21.0%.

Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
September 30, 2024

(Dollars in thousands)
Industry Description	Total Outstanding Balance		% of Commercial Loan Portfolio
CRE – Retail	$	458,230	8.6	%
Animal Production		384,554	7.2	%
CRE – Multi-family		340,181	6.4	%
CRE – 1-4 Family Residential Investment		295,454	5.6	%
CRE – Office		294,508	5.6	%
CRE – Industrial / Warehouse		254,019	4.8	%
Hotels & Motels (Accommodation)		186,130	3.5	%
Specialty Trade Contractors		180,486	3.4	%
Nursing and Residential Care Facilities		167,467	3.2	%
Education		167,282	3.2	%
Motor Vehicle and Parts Dealers		129,799	2.4	%
Repair and Maintenance		127,927	2.4	%
Merchant Wholesalers, Durable Goods		125,009	2.4	%
Homebuilding (tract developers, remodelers)		120,040	2.2	%
CRE – Mixed-Use – Residential		110,137	2.1	%
Crop Production		104,343	2.0	%
Wood Product Manufacturing		93,505	1.8	%
Food Services and Drinking Places		88,178	1.7	%
Real Estate Lenders, Secondary Market Financing		85,171	1.6	%
Rental and Leasing Services		79,876	1.5	%
Religious Organizations, Advocacy Groups		73,802	1.4	%
Fabricated Metal Product Manufacturing		72,794	1.4	%
CRE – Mixed-Use – Commercial		72,268	1.4	%
Administrative and Support Services		71,787	1.4	%
Personal and Laundry Services		71,184	1.3	%
Merchant Wholesalers, Nondurable Goods		69,363	1.3	%
Amusement, Gambling, and Recreation Industries		69,052	1.3	%
Miniwarehouse / Self-Storage		65,176	1.2	%
Food Manufacturing		61,472	1.1	%
Truck Transportation		52,570	1.0	%
Industries with >$50 million in outstandings	$	4,471,764	84.3	%
Industries with <$50 million in outstandings	$	830,652	15.7	%
Total Commercial Loans	$	5,302,416	100.0	%


Consumer Loans and Lease Financings	Total Outstanding Balance
Real Estate-Residential Secured for Personal Purpose		969,562
Real Estate-Home Equity Secured for Personal Purpose		182,901
Loans to Individuals		26,794
Lease Financings		249,061
Total – Consumer Loans and Lease Financings	$	1,428,318

Total	$	6,730,734

Univest Financial Corporation
Non-GAAP Reconciliation
September 30, 2024

Non-GAAP to GAAP Reconciliation
Management uses non-GAAP measures in its analysis of the Corporation’s performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of the Corporation. See the table below for additional information on non-GAAP measures used throughout this earnings release.

	As of or for the three months ended,															As of or for the nine months ended,
(Dollars in thousands)	09/30/24			06/30/24			03/31/24			12/31/23			09/30/23			09/30/24			09/30/23
Restructuring charges (a)	$	–		$	–		$	–		$	189		$	–		$	–		$	1,330
Tax effect of restructuring charges		–			–			–			(40	)		–			–			(279	)
Restructuring charges, net of tax	$	–		$	–		$	–		$	149		$	–		$	–		$	1,051

Net income	$	18,578		$	18,107		$	20,305		$	16,254		$	17,016		$	56,990		$	54,850
Amortization of intangibles, net of tax		130			149			148			167			174			426			574
Net income before amortization of intangibles	$	18,708		$	18,256		$	20,453		$	16,421		$	17,190		$	57,416		$	55,424

Shareholders’ equity	$	877,071		$	854,137		$	843,669		$	839,208		$	807,198		$	877,071		$	807,198
Goodwill		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)
Other intangibles (b)		(2,147	)		(2,157	)		(2,273	)		(2,405	)		(2,558	)		(2,147	)		(2,558	)
Tangible common equity	$	699,414		$	676,470		$	665,886		$	661,293		$	629,130		$	699,414		$	629,130

Total assets	$	8,205,737		$	7,855,446		$	7,746,568		$	7,780,628		$	7,828,066		$	8,205,737		$	7,828,066
Goodwill		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)
Other intangibles (b)		(2,147	)		(2,157	)		(2,273	)		(2,405	)		(2,558	)		(2,147	)		(2,558	)
Tangible assets	$	8,028,080		$	7,677,779		$	7,568,785		$	7,602,713		$	7,649,998		$	8,028,080		$	7,649,998

Average shareholders’ equity	$	864,406		$	844,572		$	842,546		$	814,941		$	811,515		$	850,559		$	802,541
Average goodwill		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)
Average other intangibles (b)		(2,086	)		(2,222	)		(2,318	)		(2,477	)		(2,680	)		(2,209	)		(2,913	)
Average tangible common equity	$	686,810		$	666,840		$	664,718		$	636,954		$	633,325		$	672,840		$	624,118

(a) Associated with branch optimization and headcount rationlization expense management strategies
(b) Amount does not include mortgage servicing rights

The MIL Network –

January 25, 2025

MIL-OSI: Origin Bancorp, Inc. Announces Declaration of Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

RUSTON, La., Oct. 23, 2024 (GLOBE NEWSWIRE) — Origin Bancorp, Inc. (NYSE: OBK) (“Origin”), the holding company for Origin Bank, today announced that on October 23, 2024, its board of directors declared a quarterly cash dividend of $0.15 per share of its common stock. The cash dividend will be paid on November 29, 2024, to stockholders of record as of the close of business on November 15, 2024.

About Origin Bancorp, Inc.

Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana. Origin’s wholly owned bank subsidiary, Origin Bank, was founded in 1912 in Choudrant, Louisiana. Deeply rooted in Origin’s history is a culture committed to providing personalized relationship banking to businesses, municipalities, and personal clients to enrich the lives of the people in the communities it serves. Origin provides a broad range of financial services and currently operates more than 60 locations from Dallas/Fort Worth, East Texas, Houston, North Louisiana, Mississippi, South Alabama and the Florida Panhandle. For more information, visit www.origin.bank.

Forward-Looking Statements

When used in filings by Origin Bancorp, Inc. (the “Company”) with the Securities and Exchange Commission (the “SEC”), in the Company’s press releases or other public or stockholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases “anticipates,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” and “would” or variations of such terms are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. Factors that might cause such a difference include among other things: the expected payment date of its quarterly cash dividend; changes in economic conditions; other legislative changes generally; changes in policies by regulatory agencies; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses; the Company’s ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company’s market area; competition; and changes in management’s business strategies and other factors set forth in the Company’s filings with the SEC.

The Company does not undertake and specifically declines any obligation – to update or revise any forward-looking statements to reflect events or circumstances that occur after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Contact Information
Investor Relations
Chris Reigelman
318-497-3177
chris@origin.bank

Media Contact
Ryan Kilpatrick
318-232-7472
rkilpatrick@origin.bank

The MIL Network –

January 25, 2025

MIL-OSI: Brookline Bancorp Announces Third Quarter Results

Source: GlobeNewswire (MIL-OSI)

Net Income of $20.1 million, EPS of $0.23

Quarterly Dividend of $0.135

BOSTON, Oct. 23, 2024 (GLOBE NEWSWIRE) — Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income and operating earnings after tax (non-GAAP) of $20.1 million, or $0.23 per basic and diluted share, for the third quarter of 2024, compared to net income of $16.4 million, or $0.18 per basic and diluted share, and operating earnings after tax (non-GAAP) of $17.0 million, or $0.19 per basic and diluted share, for the second quarter of 2024, and net income and operating earnings after tax (non-GAAP) of $22.7 million, or $0.26 per basic and diluted share, for the third quarter of 2023.

“Our Company experienced improved performance in the third quarter,” commented Paul Perrault, Chairman and CEO, who continued, “As we move into the final months of 2024, we are confident our experienced bankers’ ability to continue to deliver exceptional service to our customers will be better reflected in our profitability as interest rates normalize.”

BALANCE SHEET

Total assets at September 30, 2024 were $11.7 billion, representing an increase of $41.4 million from $11.6 billion at June 30, 2024, and an increase of $496.2 million from September 30, 2023. At September 30, 2024, total loans and leases were $9.8 billion, representing an increase of $34.1 million from June 30, 2024, and an increase of $374.5 million from September 30, 2023.

Total investment securities at September 30, 2024 decreased $1.0 million to $855.4 million from $856.4 million at June 30, 2024, and decreased $25.0 million from $880.4 million at September 30, 2023. Total cash and cash equivalents at September 30, 2024 increased $64.8 million to $407.9 million from $343.1 million at June 30, 2024, and increased $246.9 million from $161.0 million at September 30, 2023. As of September 30, 2024, total investment securities and total cash and cash equivalents represented 10.8 percent of total assets, compared to 10.3 percent and 9.3 percent as of June 30, 2024 and September 30, 2023, respectively.

Total deposits at September 30, 2024 decreased $4.8 million to $8.7 billion from June 30, 2024. Despite the decrease during the quarter, customer deposits increased $103.2 million, offset by a $107.9 million decrease in brokered deposits. Total deposits increased $166.3 million from $8.6 billion at September 30, 2023, primarily driven by growth in customer deposits. The increase in customer deposits quarter to date included a $43.5 million increase in demand checking accounts.

Total borrowed funds at September 30, 2024 increased $68.1 million to $1.5 billion from June 30, 2024, and increased $362.5 million from $1.1 billion at September 30, 2023.

The ratio of stockholders’ equity to total assets was 10.54 percent at September 30, 2024, compared to 10.30 percent at June 30, 2024, and 10.36 percent at September 30, 2023. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.50 percent at September 30, 2024, as compared to 8.23 percent at June 30, 2024, and 8.16 percent at September 30, 2023. Tangible book value per common share (non-GAAP) increased $0.36 from $10.53 at June 30, 2024 to $10.89 at September 30, 2024, and increased $0.87 from $10.02 at September 30, 2023.

NET INTEREST INCOME

Net interest income increased $3.0 million to $83.0 million during the third quarter of 2024 from $80.0 million for the quarter ended June 30, 2024. The net interest margin increased 7 basis points to 3.07 percent for the three months ended September 30, 2024 from 3.00 percent for the three months ended June 30, 2024, primarily driven by higher yields on loans and leases partially offset by higher funding costs.

NON-INTEREST INCOME

Total non-interest income for the quarter ended September 30, 2024 decreased $0.1 million to $6.3 million from $6.4 million for the quarter ended June 30, 2024.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $4.8 million for the quarter ended September 30, 2024, compared to $5.6 million for the quarter ended June 30, 2024. The decrease in provision was largely driven by improving economic forecasts partially offset by an increase in specific reserves on nonperforming credits.

Total net charge-offs for the third quarter of 2024 were $3.8 million, compared to $8.4 million in the second quarter of 2024. The $3.8 million in net charge-offs was driven by $2.6 million in equipment financing, largely within specialty vehicle. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 16 basis points for the third quarter of 2024 from 35 basis points for the second quarter of 2024.

The allowance for loan and lease losses represented 1.31 percent of total loans and leases at September 30, 2024, compared to 1.25 percent at June 30, 2024, and 1.27 percent at September 30, 2023.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.73 percent at September 30, 2024, an increase from 0.62 percent at June 30, 2024. Total nonaccrual loans and leases increased $10.5 million to $71.2 million at September 30, 2024 from $60.7 million at June 30, 2024. The increase was driven by one equipment financing relationship of $9.3 million which has been reserved at 55 percent. The ratio of nonperforming assets to total assets was 0.62 percent at September 30, 2024, an increase from 0.54 percent at June 30, 2024. Total nonperforming assets increased $10.1 million to $72.8 million at September 30, 2024 from $62.7 million at June 30, 2024.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended September 30, 2024 decreased $1.2 million to $57.9 million from $59.2 million for the quarter ended June 30, 2024. Excluding the one time restructuring charge taken in the second quarter of $0.8 million, non-interest expense decreased $0.4 million primarily due to a reduction in advertising and marketing expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 24.7 percent and 24.6 percent for the three and nine months ended September 30, 2024 compared to 24.4 percent for the three months ended June 30, 2024 and 21.4 percent and 20.3 percent for the three and nine months ended September 30, 2023.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets increased to 0.70 percent during the third quarter 2024 from 0.57 percent for the second quarter of 2024.

The annualized return on average stockholders’ equity increased to 6.63 percent during the third quarter of 2024 from 5.49 percent for the second quarter of 2024. The annualized return on average tangible stockholders’ equity increased to 8.44 percent for the third quarter of 2024 from 7.04 percent for the second quarter of 2024.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended September 30, 2024. The dividend will be paid on November 29, 2024 to stockholders of record on November 15, 2024.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, October 24, 2024 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company’s website, www.brooklinebancorp.com. To listen to the call and view the Company’s Earnings Presentation, please join the call via https://events.q4inc.com/attendee/314623001. To listen to the call without access to the slides, interested parties may dial 833-470-1428 (United States) or 404-975-4839 (internationally) and ask for the Brookline Bancorp, Inc. conference call (Access Code 414186). A recorded playback of the call will be available for one week following the call on the Company’s website under “Investor Relations” or by dialing 866-813-9403 (United States) or 929-458-6194 (internationally) and entering the passcode: 898921.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $11.7 billion in assets and branch locations in Massachusetts, Rhode Island, and the Lower Hudson Valley of New York State, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and PCSB Bank (the “banks”). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England and the Lower Hudson Valley of New York State. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com and www.pcsb.com.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission (“SEC”), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company’s control. These include, but are not limited to, changes in interest rates; general economic conditions (including inflation and concerns about liquidity) on a national basis or in the local markets in which the Company operates; turbulence in the capital and debt markets; competitive pressures from other financial institutions; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in the value of securities and other assets in the Company’s investment portfolio; increases in loan and lease default and charge-off rates; the adequacy of allowances for loan and lease losses; decreases in deposit levels that necessitate increases in borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, and future pandemics; changes in regulation; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions and adverse economic developments; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; and changes in assumptions used in making such forward-looking statements. Forward-looking statements involve risks and uncertainties which are difficult to predict. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

BASIS OF PRESENTATION

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

NON-GAAP FINANCIAL MEASURES

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

INVESTOR RELATIONS:

Contact:	Carl M. Carlson
	Brookline Bancorp, Inc.
	Co-President and Chief Financial and Strategy Officer
	(617) 425-5331
	carl.carlson@brkl.com

BROOKLINE BANCORP, INC. AND SUBSIDIARIES Selected Financial Highlights (Unaudited)

	At and for the Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	83,008		$	80,001		$	81,588		$	83,555		$	84,070
Provision for credit losses on loans	4,832			5,607			7,423			3,851			2,947
Provision (credit) for credit losses on investments	(172)			(39)			(44)			(76)			84
Non-interest income	6,348			6,396			6,284			8,027			5,508
Non-interest expense	57,948			59,184			61,014			59,244			57,679
Income before provision for income taxes	26,748			21,645			19,479			28,563			28,868
Net income	20,142			16,372			14,665			22,888			22,701

Performance Ratios:
Net interest margin (1)	3.07		%	3.00		%	3.06		%	3.15		%	3.18		%
Interest-rate spread (1)	2.26		%	2.14		%	2.21		%	2.39		%	2.45		%
Return on average assets (annualized)	0.70		%	0.57		%	0.51		%	0.81		%	0.81		%
Return on average tangible assets (annualized) (non-GAAP)	0.72		%	0.59		%	0.53		%	0.83		%	0.83		%
Return on average stockholders’ equity (annualized)	6.63		%	5.49		%	4.88		%	7.82		%	7.78		%
Return on average tangible stockholders’ equity (annualized) (non-GAAP)	8.44		%	7.04		%	6.26		%	10.12		%	10.09		%
Efficiency ratio (2)	64.85		%	68.50		%	69.44		%	64.69		%	64.39		%

Per Common Share Data:
Net income — Basic	$	0.23		$	0.18		$	0.16		$	0.26		$	0.26
Net income — Diluted	0.23			0.18			0.16			0.26			0.26
Cash dividends declared	0.135			0.135			0.135			0.135			0.135
Book value per share (end of period)	13.81			13.48			13.43			13.48			13.03
Tangible book value per share (end of period) (non-GAAP)	10.89			10.53			10.47			10.50			10.02
Stock price (end of period)	10.09			8.35			9.96			10.91			9.11

Balance Sheet:
Total assets	$	11,676,721		$	11,635,292		$	11,542,731		$	11,382,256		$	11,180,555
Total loans and leases	9,755,236			9,721,137			9,655,086			9,641,589			9,380,782
Total deposits	8,732,271			8,737,036			8,718,653			8,548,125			8,566,013
Total stockholders’ equity	1,230,362			1,198,480			1,194,231			1,198,644			1,157,871

Asset Quality:
Nonperforming assets	$	72,821		$	62,683		$	42,489		$	45,324		$	51,540
Nonperforming assets as a percentage of total assets	0.62		%	0.54		%	0.37		%	0.40		%	0.46		%
Allowance for loan and lease losses	$	127,316		$	121,750		$	120,124		$	117,522		$	119,081
Allowance for loan and lease losses as a percentage of total loans and leases	1.31		%	1.25		%	1.24		%	1.22		%	1.27		%
Net loan and lease charge-offs	$	3,808		$	8,387		$	8,781		$	7,141		$	10,974
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)	0.16		%	0.35		%	0.36		%	0.30		%	0.47		%

Capital Ratios:
Stockholders’ equity to total assets	10.54		%	10.30		%	10.35		%	10.53		%	10.36		%
Tangible stockholders’ equity to tangible assets (non-GAAP)	8.50		%	8.23		%	8.25		%	8.39		%	8.16		%

(1) Calculated on a fully tax-equivalent basis.
(2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited)

	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	82,168		$	60,067		$	45,708		$	34,514		$	33,506
Short-term investments	325,721			283,017			256,178			98,513			127,495
Total cash and cash equivalents	407,889			343,084			301,886			133,027			161,001
Investment securities available-for-sale	855,391			856,439			865,798			916,601			880,412
Total investment securities	855,391			856,439			865,798			916,601			880,412
Allowance for investment security losses	(186		)	(359		)	(398		)	(441		)	(517		)
Net investment securities	855,205			856,080			865,400			916,160			879,895
Loans and leases held-for-sale	—			—			6,717			—			—
Loans and leases:
Commercial real estate loans	5,779,290			5,782,111			5,755,239			5,764,529			5,669,768
Commercial loans and leases	2,453,038			2,443,530			2,416,904			2,399,668			2,241,375
Consumer loans	1,522,908			1,495,496			1,482,943			1,477,392			1,469,639
Total loans and leases	9,755,236			9,721,137			9,655,086			9,641,589			9,380,782
Allowance for loan and lease losses	(127,316		)	(121,750		)	(120,124		)	(117,522		)	(119,081		)
Net loans and leases	9,627,920			9,599,387			9,534,962			9,524,067			9,261,701
Restricted equity securities	82,675			78,963			74,709			77,595			65,460
Premises and equipment, net of accumulated depreciation	86,925			88,378			89,707			89,853			90,476
Right-of-use asset operating leases	41,934			35,691			33,133			30,863			31,619
Deferred tax asset	50,827			60,032			60,484			56,952			74,491
Goodwill	241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net of accumulated amortization	19,162			20,830			22,499			24,207			26,172
Other real estate owned and repossessed assets	1,579			1,974			1,817			1,694			299
Other assets	261,383			309,651			310,195			286,616			348,219
Total assets	$	11,676,721		$	11,635,292		$	11,542,731		$	11,382,256		$	11,180,555
*LIABILITIES AND STOCKHOLDERS’ EQUITY*
Deposits:
Demand checking accounts	$	1,681,858		$	1,638,378		$	1,629,371		$	1,678,406		$	1,745,137
NOW accounts	637,374			647,370			654,748			661,863			647,476
Savings accounts	1,736,989			1,735,857			1,727,893			1,669,018			1,625,804
Money market accounts	2,041,185			2,073,557			2,065,569			2,082,810			2,161,359
Certificate of deposit accounts	1,819,353			1,718,414			1,670,147			1,574,855			1,491,844
Brokered deposit accounts	815,512			923,460			970,925			881,173			894,393
Total deposits	8,732,271			8,737,036			8,718,653			8,548,125			8,566,013
Borrowed funds:
Advances from the FHLB	1,345,003			1,265,079			1,150,153			1,223,226			899,304
Subordinated debentures and notes	84,293			84,258			84,223			84,188			84,152
Other borrowed funds	68,251			80,125			127,505			69,256			151,612
Total borrowed funds	1,497,547			1,429,462			1,361,881			1,376,670			1,135,068
Operating lease liabilities	43,266			37,102			34,235			31,998			32,807
Mortgagors’ escrow accounts	14,456			17,117			16,245			17,239			12,578
Reserve for unfunded credits	6,859			11,400			15,807			19,767			21,497
Accrued expenses and other liabilities	151,960			204,695			201,679			189,813			254,721
Total liabilities	10,446,359			10,436,812			10,348,500			10,183,612			10,022,684
Stockholders’ equity:
Common stock, $0.01 par value; 200,000,000 shares authorized; 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, and 96,998,075 shares issued, respectively	970			970			970			970			970
Additional paid-in capital	901,562			904,775			903,726			902,659			901,376
Retained earnings	453,555			445,560			441,285			438,722			427,937
Accumulated other comprehensive income	(38,081		)	(61,693		)	(60,841		)	(52,798		)	(81,541		)
Treasury stock, at cost;
7,015,843, 7,373,009, 7,354,399, 7,354,399 and 7,350,981 shares, respectively	(87,644		)	(91,132		)	(90,909		)	(90,909		)	(90,871		)
Total stockholders’ equity	1,230,362			1,198,480			1,194,231			1,198,644			1,157,871
Total liabilities and stockholders’ equity	$	11,676,721		$	11,635,292		$	11,542,731		$	11,382,256		$	11,180,555

BROOKLINE BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited)
	Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	149,643		$	145,585		$	145,265		$	142,948		$	136,561
Debt securities	6,473			6,480			6,878			6,945			6,799
Restricted equity securities	1,458			1,376			1,492			1,333			1,310
Short-term investments	1,986			1,914			1,824			1,093			2,390
Total interest and dividend income	159,560			155,355			155,459			152,319			147,060
Interest expense:
Deposits	59,796			59,721			56,884			54,034			49,116
Borrowed funds	16,756			15,633			16,987			14,730			13,874
Total interest expense	76,552			75,354			73,871			68,764			62,990
Net interest income	83,008			80,001			81,588			83,555			84,070
Provision for credit losses on loans	4,832			5,607			7,423			3,851			2,947
Provision (credit) for credit losses on investments	(172		)	(39		)	(44		)	(76		)	84
Net interest income after provision for credit losses	78,348			74,433			74,209			79,780			81,039
Non-interest income:
Deposit fees	2,353			3,001			2,897			3,064			3,024
Loan fees	464			702			789			515			639
Loan level derivative income, net	—			106			437			778			376
Gain on sales of loans and leases held-for-sale	415			130			—			410			225
Other	3,116			2,457			2,161			3,260			1,244
Total non-interest income	6,348			6,396			6,284			8,027			5,508
Non-interest expense:
Compensation and employee benefits	35,130			34,762			36,629			35,401			33,491
Occupancy	5,343			5,551			5,769			5,127			4,983
Equipment and data processing	6,831			6,732			7,031			7,245			6,766
Professional services	2,143			1,745			1,900			1,442			2,368
FDIC insurance	2,118			2,025			1,884			1,839			2,152
Advertising and marketing	859			1,504			1,574			758			1,174
Amortization of identified intangible assets	1,668			1,669			1,708			1,965			1,955
Merger and restructuring expense	—			823			—			—			—
Other	3,856			4,373			4,519			5,467			4,790
Total non-interest expense	57,948			59,184			61,014			59,244			57,679
Income before provision for income taxes	26,748			21,645			19,479			28,563			28,868
Provision for income taxes	6,606			5,273			4,814			5,675			6,167
Net income	$	20,142		$	16,372		$	14,665		$	22,888		$	22,701
Earnings per common share:
Basic	$	0.23		$	0.18		$	0.16		$	0.26		$	0.26
Diluted	$	0.23		$	0.18		$	0.16		$	0.26		$	0.26
Weighted average common shares outstanding during the period:
Basic	89,033,463			88,904,692			88,894,577			88,867,159			88,795,270
Diluted	89,319,611			89,222,315			89,181,508			89,035,505			88,971,210
Dividends paid per common share	$	0.135		$	0.135		$	0.135		$	0.135		$	0.135

BROOKLINE BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited)

	Nine Months Ended September 30,
	2024			2023
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	440,493		$	390,791
Debt securities	19,831			22,703
Restricted equity securities	4,326			4,238
Short-term investments	5,724			7,236
Total interest and dividend income	470,374			424,968
Interest expense:
Deposits	176,401			121,631
Borrowed funds	49,376			47,181
Total interest expense	225,777			168,812
Net interest income	244,597			256,156
Provision for credit losses on loans	17,862			34,017
Provision (credit) for credit losses on investments	(255		)	415
Net interest income after provision for credit losses	226,990			221,724
Non-interest income:
Deposit Fees	8,251			8,547
Loan Fees	1,955			1,521
Loan level derivative income, net	543			3,112
Gain on investment securities, net	—			1,704
Gain on sales of loans and leases held-for-sale	545			2,171
Other	7,734			6,852
Total non-interest income	19,028			23,907
Non-interest expense:
Compensation and employee benefits	106,521			103,494
Occupancy	16,663			15,076
Equipment and data processing	20,594			19,759
Professional services	5,788			5,784
FDIC insurance	6,027			6,005
Advertising and marketing	3,937			3,966
Amortization of identified intangible assets	5,045			5,875
Merger and restructuring expense	823			7,411
Other	12,748			12,910
Total non-interest expense	178,146			180,280
Income before provision for income taxes	67,872			65,351
Provision for income taxes	16,693			13,240
Net income	$	51,179		$	52,111
Earnings per common share:
Basic	$	0.58		$	0.59
Diluted	$	0.57		$	0.59
Weighted average common shares outstanding during the period:
Basic	88,944,569			88,016,190
Diluted	89,241,470			88,253,361
Dividends paid per common share	$	0.405		$	0.405

BROOKLINE BANCORP, INC. AND SUBSIDIARIES Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	11,595		$	11,659		$	18,394		$	19,608		$	23,263
Multi-family mortgage	1,751			—			—			—			1,318
Construction	—			—			—			—			2,316
Total commercial real estate loans	13,346			11,659			18,394			19,608			26,897

Commercial	15,734			16,636			3,096			3,886			5,406
Equipment financing	37,223			27,128			13,668			14,984			13,974
Total commercial loans and leases	52,957			43,764			16,764			18,870			19,380

Residential mortgage	3,862			4,495			4,563			4,292			4,249
Home equity	1,076			790			950			860			713
Other consumer	1			1			1			—			2
Total consumer loans	4,939			5,286			5,514			5,152			4,964

Total nonaccrual loans and leases	71,242			60,709			40,672			43,630			51,241

Other real estate owned	780			780			780			780			—
Other repossessed assets	799			1,194			1,037			914			299
Total nonperforming assets	$	72,821		$	62,683		$	42,489		$	45,324		$	51,540

Loans and leases past due greater than 90 days and still accruing	$	16,091		$	4,994		$	363		$	228		$	1,175

Nonperforming loans and leases as a percentage of total loans and leases	0.73		%	0.62		%	0.42		%	0.45		%	0.55		%
Nonperforming assets as a percentage of total assets	0.62		%	0.54		%	0.37		%	0.40		%	0.46		%

PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	121,750		$	120,124		$	117,522		$	119,081		$	125,817
Charge-offs	(4,183		)	(8,823		)	(5,390		)	(7,722		)	(10,978		)
Recoveries	375			436			309			581			4
Net charge-offs	(3,808		)	(8,387		)	(5,081		)	(7,141		)	(10,974		)
Provision for loan and lease losses excluding unfunded commitments *	9,374			10,013			7,683			5,582			4,238
Allowance for loan and lease losses at end of period	$	127,316		$	121,750		$	120,124		$	117,522		$	119,081

Allowance for loan and lease losses as a percentage of total loans and leases	1.31		%	1.25		%	1.24		%	1.22		%	1.27		%

NET CHARGE-OFFS:
Commercial real estate loans	$	—		$	3,819		$	606		$	1,087		$	(3	)
Commercial loans and leases **	3,797			4,571			8,179			6,061			10,958
Consumer loans	11			(3		)	(4		)	(7		)	19
Total net charge-offs	$	3,808		$	8,387		$	8,781		$	7,141		$	10,974

Net loan and lease charge-offs as a percentage of average loans and leases (annualized)	0.16		%	0.35		%	0.36		%	0.30		%	0.47		%

*Provision for loan and lease losses does not include (credit) provision of $(4.5 million), $(4.4 million), $(0.3 million), $(1.7 million), and $(1.3) million for credit losses on unfunded commitments during the three months ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.
** The balance at March 31, 2024 includes a $3.7 million charge-off on a letter of credit which impacted the provision.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES Average Yields / Costs (Unaudited)
	Three Months Ended
	September 30, 2024						June 30, 2024						September 30, 2023
	Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (1)		Average Yield/ Cost
	(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2)	$	853,924	$	6,516	3.05	%	$	846,469	$	6,510	3.08	%	$	887,612	$	6,840	3.08	%
Restricted equity securities (2)	75,225		1,459		7.76	%	71,696		1,375		7.67	%	67,824		1,310		7.73	%
Short-term investments	145,838		1,986		5.44	%	143,800		1,914		5.33	%	172,483		2,390		5.54	%
Total investments	1,074,987		9,961		3.71	%	1,061,965		9,799		3.69	%	1,127,919		10,540		3.74	%
Loans and Leases:
Commercial real estate loans (3)	5,772,456		83,412		5.65	%	5,754,901		81,565		5.61	%	5,667,373		78,750		5.44	%
Commercial loans (3)	1,079,084		18,440		6.69	%	1,069,154		17,672		6.54	%	939,492		15,295		6.38	%
Equipment financing (3)	1,353,649		26,884		7.94	%	1,374,217		26,255		7.64	%	1,280,033		23,331		7.29	%
Consumer loans (3)	1,505,095		21,123		5.60	%	1,488,587		20,291		5.46	%	1,471,985		19,237		5.21	%
Total loans and leases	9,710,284		149,859		6.17	%	9,686,859		145,783		6.02	%	9,358,883		136,613		5.84	%
Total interest-earning assets	10,785,271		159,820		5.93	%	10,748,824		155,582		5.79	%	10,486,802		147,153		5.61	%
Non-interest-earning assets	666,067						704,570						693,833
Total assets	$	11,451,338					$	11,453,394					$	11,180,635

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	639,561	1,115		0.69	%	$	659,351	1,111		0.68	%	$	681,929	1,159		0.67	%
Savings accounts	1,738,756		12,098		2.77	%	1,731,388		11,874		2.76	%	1,557,911		8,859		2.26	%
Money market accounts	2,038,048		15,466		3.02	%	2,026,780		15,520		3.08	%	2,177,528		15,785		2.88	%
Certificates of deposit	1,768,026		20,054		4.51	%	1,699,510		18,717		4.43	%	1,444,269		12,128		3.33	%
Brokered deposit accounts	841,067		11,063		5.23	%	958,146		12,499		5.25	%	882,351		11,185		5.03	%
Total interest-bearing deposits	7,025,458		59,796		3.39	%	7,075,175		59,721		3.39	%	6,743,988		49,116		2.89	%
Borrowings
Advances from the FHLB	1,139,049		14,366		4.94	%	1,049,609		12,894		4.86	%	954,989		11,706		4.80	%
Subordinated debentures and notes	84,276		1,378		6.54	%	84,241		1,375		6.53	%	84,134		1,378		6.55	%
Other borrowed funds	53,102		1,012		7.58	%	103,753		1,364		5.29	%	117,531		790		2.67	%
Total borrowings	1,276,427		16,756		5.14	%	1,237,603		15,633		5.00	%	1,156,654		13,874		4.69	%
Total interest-bearing liabilities	8,301,885		76,552		3.67	%	8,312,778		75,354		3.65	%	7,900,642		62,990		3.16	%
Non-interest-bearing liabilities:
Demand checking accounts	1,669,092						1,646,869						1,794,225
Other non-interest-bearing liabilities	264,324						300,362						318,041
Total liabilities	10,235,301						10,260,009						10,012,908
Stockholders’ equity	1,216,037						1,193,385						1,167,727
Total liabilities and equity	$	11,451,338					$	11,453,394					$	11,180,635
Net interest income (tax-equivalent basis) /Interest-rate spread (4)			83,268		2.26	%			80,228		2.14	%			84,163		2.45	%
Less adjustment of tax-exempt income			260						227						93
Net interest income			$	83,008					$	80,001					$	84,070
Net interest margin (5)					3.07	%					3.00	%					3.18	%

(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on nonaccrual status are included in the average balances.
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES Average Yields / Costs (Unaudited)
	Nine Months Ended
	September 30, 2024						September 30, 2023
	Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (1)		Average Yield/ Cost
	(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2)	$	864,501	$	19,953	3.08	%	$	971,855	$	22,905	3.14	%
Restricted equity securities (2)	74,422		4,327		7.75	%	74,000		4,238		7.64	%
Short-term investments	140,156		5,724		5.44	%	183,295		7,236		5.26	%
Total investments	1,079,079		30,004		3.71	%	1,229,150		34,379		3.73	%
Loans and Leases:
Commercial real estate loans (3)	5,763,065		246,026		5.61	%	5,629,600		225,999		5.29	%
Commercial loans (3)	1,058,312		53,619		6.66	%	915,420		42,814		6.17	%
Equipment financing (3)	1,367,380		80,034		7.80	%	1,253,512		66,901		7.12	%
Consumer loans (3)	1,492,213		61,392		5.49	%	1,469,025		55,210		5.01	%
Total loans and leases	9,680,970		441,071		6.07	%	9,267,557		390,924		5.62	%
Total interest-earning assets	10,760,049		471,075		5.84	%	10,496,707		425,303		5.40	%
Non-interest-earning assets	678,235						698,273
Total assets	$	11,438,284					$	11,194,980

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	656,879	3,487		0.71	%	$	741,951	3,129		0.56	%
Savings accounts	1,721,518		35,324		2.74	%	1,365,541		17,290		1.69	%
Money market accounts	2,047,011		46,940		3.06	%	2,227,404		41,914		2.52	%
Certificates of deposit	1,697,477		55,443		4.36	%	1,394,338		29,605		2.84	%
Brokered deposit accounts	898,455		35,207		5.23	%	798,800		29,693		4.97	%
Total interest-bearing deposits	7,021,340		176,401		3.36	%	6,528,034		121,631		2.49	%
Borrowings
Advances from the FHLB	1,117,809		41,893		4.92	%	1,135,845		40,524		4.70	%
Subordinated debentures and notes	84,241		4,130		6.54	%	84,098		4,095		6.49	%
Other borrowed funds	83,195		3,353		5.38	%	120,825		2,562		2.83	%
Total borrowings	1,285,245		49,376		5.05	%	1,340,768		47,181		4.64	%
Total interest-bearing liabilities	8,306,585		225,777		3.63	%	7,868,802		168,812		2.87	%
Non-interest-bearing liabilities:
Demand checking accounts	1,646,932						1,857,429
Other non-interest-bearing liabilities	280,947						301,543
Total liabilities	10,234,464						10,027,774
Stockholders’ equity	1,203,820						1,167,206
Total liabilities and equity	$	11,438,284					$	11,194,980
Net interest income (tax-equivalent basis) /Interest-rate spread (4)			245,298		2.21	%			256,491		2.53	%
Less adjustment of tax-exempt income			701						335
Net interest income			$	244,597					$	256,156
Net interest margin (5)					3.05	%					3.27	%

(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on nonaccrual status are included in the average balances.
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES Non-GAAP Financial Information (Unaudited)
										At and for the Nine Months Ended September 30,
										2024			2023
Reconciliation Table – Non-GAAP Financial Information										(Dollars in Thousands Except Share Data)

Reported Pretax Income										$	67,872		$	65,351
Less:
Security gains										—			1,704
Add:
Day 1 PCSB CECL provision										—			16,744
Merger and restructuring expense										823			7,411
Operating Pretax Income										$	68,695		$	87,802
Effective tax rate										24.6		%	20.3		%
Provision for income taxes										16,895			17,789
Operating earnings after tax										$	51,800		$	70,013

Operating earnings per common share:
Basic										$	0.58		$	0.80
Diluted										$	0.58		$	0.79

Weighted average common shares outstanding during the period:
Basic										88,944,569			88,016,190
Diluted										89,241,470			88,253,361

Return on average assets *										0.60		%	0.62		%
Less:
Security gains (after-tax) *										—		%	0.02		%
Add:
Day 1 PCSB CECL provision (after-tax) *										—		%	0.16		%
Merger and restructuring expense (after-tax) *										0.01		%	0.07		%
Operating return on average assets *										0.61		%	0.83		%

Return on average tangible assets *										0.61		%	0.64		%
Less:
Security gains (after-tax) *										—		%	0.02		%
Add:
Day 1 PCSB CECL provision (after-tax) *										—		%	0.16		%
Merger and restructuring expense (after-tax) *										0.01		%	0.07		%
Operating return on average tangible assets *										0.62		%	0.85		%


Return on average stockholders’ equity *										5.67		%	5.95		%
Less:
Security gains (after-tax) *										—		%	0.16		%
Add:
Day 1 PCSB CECL provision (after-tax) *										—		%	1.53		%
Merger and restructuring expense (after-tax) *										0.07		%	0.68		%
Operating return on average stockholders’ equity *										5.74		%	8.00		%


Return on average tangible stockholders’ equity *										7.25		%	7.76		%
Less:
Security gains (after-tax) *										—		%	0.20		%
Add:
Day 1 PCSB CECL provision (after-tax) *										—		%	1.99		%
Merger and restructuring expense (after-tax) *										0.09		%	0.88		%
Operating return on average tangible stockholders’ equity *										7.34		%	10.43		%

* Ratios at and for the nine months ended are annualized.
There was no non-operating activity for the three months ended September 30, 2024 and September 30,2023, respectively.

	At and for the Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
	(Dollars in Thousands)

Net income, as reported	$	20,142		$	16,372		$	14,665		$	22,888		$	22,701

Average total assets	$	11,451,338		$	11,453,394		$	11,417,185		$	11,271,941		$	11,180,635
Less: Average goodwill and average identified intangible assets, net	261,188			262,859			264,536			266,225			268,199
Average tangible assets	$	11,190,150		$	11,190,535		$	11,152,649		$	11,005,716		$	10,912,436

Return on average tangible assets (annualized)	0.72		%	0.59		%	0.53		%	0.83		%	0.83		%

Average total stockholders’ equity	$	1,216,037		$	1,193,385		$	1,201,904		$	1,170,776		$	1,167,727
Less: Average goodwill and average identified intangible assets, net	261,188			262,859			264,536			266,225			268,199
Average tangible stockholders’ equity	$	954,849		$	930,526		$	937,368		$	904,551		$	899,528

Return on average tangible stockholders’ equity (annualized)	8.44		%	7.04		%	6.26		%	10.12		%	10.09		%

Total stockholders’ equity	$	1,230,362		$	1,198,480		$	1,194,231		$	1,198,644		$	1,157,871
Less:
Goodwill	241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net	19,162			20,830			22,499			24,207			26,172
Tangible stockholders’ equity	$	969,978		$	936,428		$	930,510		$	933,215		$	890,477

Total assets	$	11,676,721		$	11,635,292		$	11,542,731		$	11,382,256		$	11,180,555
Less:
Goodwill	241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net	19,162			20,830			22,499			24,207			26,172
Tangible assets	$	11,416,337		$	11,373,240		$	11,279,010		$	11,116,827		$	10,913,161

Tangible stockholders’ equity to tangible assets	8.50		%	8.23		%	8.25		%	8.39		%	8.16		%

Tangible stockholders’ equity	$	969,978		$	936,428		$	930,510		$	933,215		$	890,477

Number of common shares issued	96,998,075			96,998,075			96,998,075			96,998,075			96,998,075
Less:
Treasury shares	7,015,843			7,373,009			7,354,399			7,354,399			7,350,981
Unvested restricted shares	883,789			713,443			749,099			749,099			780,859
Number of common shares outstanding	89,098,443			88,911,623			88,894,577			88,894,577			88,866,235

Tangible book value per common share	$	10.89		$	10.53		$	10.47		$	10.50		$	10.02

PDF available: http://ml.globenewswire.com/Resource/Download/6045e36a-2e9d-4b3a-b6a1-f895169b0f2d

The MIL Network –

January 25, 2025

MIL-OSI: Juniata Valley Financial Corp. Announces Results for the Quarter Ended September 30, 2024

Source: GlobeNewswire (MIL-OSI)

Mifflintown, PA, Oct. 23, 2024 (GLOBE NEWSWIRE) — Juniata Valley Financial Corp. (OTCQX:JUVF) (“Juniata”) announced net income for the three months ended September 30, 2024 of $1.6 million compared to net income of $1.8 million for the three months ended September 30, 2023. Earnings per share, basic and diluted, was $0.33 during the three months ended September 30, 2024 compared to $0.36 during the three months ended September 30, 2023. Net income was $4.7 million for the nine months ended September 30, 2024 compared to $4.9 million for the nine months ended September 30, 2023. Earnings per share, basic and diluted, was $0.95 for the nine months ended September 30, 2024 compared to $0.98 for the nine months ended September 30, 2023.

President’s Message

President and Chief Executive Officer, Marcie A. Barber stated, “We are pleased to report solid third quarter net income. These results were accomplished, in part, through disciplined pricing of both loans and deposits. Efforts to contain funding costs, coupled with loan growth, resulted in a 2.0% increase in net interest income compared to the corresponding 2023 quarter despite continued competition for deposits. With the reduction of the Fed Funds rate by 50 basis points in mid-September and anticipated future rate cuts, we remain optimistic that net interest margin compression appears to have abated. Additionally, our focus on fee income resulted in an increase of 11.1% in noninterest income compared to fee income for the same quarter in 2023. Asset quality remains strong with delinquent and nonperforming loans comprising only 0.2% of total loans, unchanged from the previous quarter. We are continually working toward expanding loan and deposit relationships outside of our branch footprint while optimizing our branch network to provide outstanding customer service through improvement in efficiencies.”

Financial Results Year-to-Date

Annualized return on average assets for the nine months ended September 30, 2024, was 0.73%, a decrease of 7.6% compared to the annualized return on average assets of 0.79% for the nine months ended September 30, 2023. Annualized return on average equity for the nine months ended September 30, 2024 was 14.70%, a decrease of 19.5% compared to the annualized return on average equity of 18.25% for the nine months ended September 30, 2023.

Net interest income was $17.1 million during both the nine months ended September 30, 2024 and 2023. Average earning assets increased $21.1 million, or 2.5%, to $856.2 million, during the nine months ended September 30, 2024, compared to the same period in 2023, due primarily to an increase of $39.9 million, or 8.0%, in average loans. The increase in average loans was partially offset by a decline of $20.6 million, or 6.2%, in average investment securities as principal paydowns on the mortgage-backed securities portfolio were used to fund loan growth rather than being reinvested into the securities portfolio. Average interest bearing liabilities increased by $19.5 million, or 3.3%, during the nine months ended September 30, 2024 compared to the comparable 2023 period, due to growth in average time deposits, repurchase agreements and short-term borrowings, with this growth partially funding loan growth. The yield on earning assets increased 42 basis points, to 4.33%, due to a 51 basis point increase in the yield on average loans in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023, while the cost to fund interest earning assets with interest bearing liabilities increased 68 basis points, to 2.31%. The net interest margin, on a fully tax equivalent basis, decreased from 2.77% during the nine months ended September 30, 2023, to 2.70% during the nine months ended September 30, 2024.

Juniata recorded a provision for credit losses of $471,000 for the nine months ended September 30, 2024 compared to a provision for credit losses of $411,000 for the nine months ended September 30, 2023.

Non-interest income was $4.2 million during the nine months ended September 30, 2024 compared to $3.9 million during the nine months ended September 30, 2023, an increase of 8.4%. Most significantly impacting the comparative nine month periods were increases of $282,000 in customer service fees, $144,000 in the change in value of equity securities and $115,000 in fees derived from loan activity, the latter primarily due to increases in title insurance commissions and guidance line and service fees. These increases were partially offset by a $161,000 decrease in life insurance proceeds as no proceeds were recorded in the 2024 period.

Non-interest expense was $15.4 million during the nine months ended September 30, 2024 compared to $15.0 million during the nine months ended September 30, 2023, an increase of 2.6%. Most significantly impacting non-interest expense in the comparative nine month periods were increases of $356,000 in salary expense due to annual salary increases and overtime pay from the core conversion in the first quarter of 2024, as well as increases of $124,000 in equipment expense and $196,000 in professional fees, primarily due to an increase in audit expenses. These increases were partially offset by decreases of $180,000 in employee benefits expense, due to a decline in medical claims expense, and $227,000 recorded in the 2023 period due to the merger and acquisition expense incurred in connection with the Path Valley branch acquisition.

An income tax provision of $767,000 was recorded during the nine months ended September 30, 2024 compared to an income tax provision of $708,000 recorded during the nine months ended September 30, 2023. Juniata qualifies for a federal tax credit for investments in low-income housing partnerships. The tax credit decreased from $284,000 in the nine months ended September 30, 2023 to $247,000 in the nine months ended September 30, 2024 due to the completion of the amortization period for one of Juniata’s low-income housing partnership investments in January 2023.

Financial Results for the Quarter

Annualized return on average assets for the three months ended September 30, 2024 was 0.76%, a decrease of 10.6%, compared to 0.85% for the three months ended September 30, 2023. Annualized return on average equity for the three months ended September 30, 2024 was 14.72%, a decrease of 25.7%, compared to 19.81% for the three months ended September 30, 2023.

Net interest income was $5.8 million for the three months ended September 30, 2024 compared to $5.7 million for the three months ended September 30, 2023. Average earning assets increased $11.2 million, or 1.3%, to $853.1 million during the three months ended September 30, 2024, compared to the same period in 2023, primarily due to an increase of $30.2 million, or 5.9%, in average loans, partially offset by a decline of $19.9 million, or 6.1%, in average investment securities due primarily to principal paydowns on the mortgage-backed securities portfolio. Average interest bearing liabilities increased by $7.6 million, or 1.3%, compared to the corresponding 2023 period, primarily due to increases in average time deposits, repurchase agreements and short-term borrowings. The yield on earning assets increased 39 basis points, to 4.41%, during the three months ended September 30, 2024 compared to same period in 2023, while the cost to fund interest earning assets with interest bearing liabilities increased 51 basis points, to 2.38%. The net interest margin, on a fully tax equivalent basis, increased from 2.71% during the three months ended September 30, 2023, to 2.73% during the three months ended September 30, 2024.

Juniata recorded a provision for credit losses of $232,000 for the three months ended September 30, 2024 compared to a provision for credit losses of $121,000 for the three months ended September 30, 2023. For the 2024 period, this increase was due primarily to an updated loss driver analysis for the allowance for credit losses calculation and not a result of deteriorated asset quality, which remains strong.

Non-interest income was $1.4 million for the three months ended September 30, 2024, an increase of 11.1%, compared to $1.3 million for the three months ended September 30, 2023. Most significantly impacting non-interest income in the comparative three month periods were increases of $117,000 in customer service fees and $84,000 in the change in value of equity securities. Partially offsetting these increases in the comparative three month periods was a decrease of $35,000 in fees derived from loan activity primarily due to decreases in title insurance commissions and the derivative credit adjustment.

Non-interest expense was $5.1 million for the three months ended September 30, 2024, compared to $4.8 million for the three months ended September 30, 2023, an increase of 7.2%. Most significantly impacting non-interest expense in the comparative three month periods was an increase of $126,000 in employee benefits expense, due primarily to an increase in medical claims expenses, as well as an increase of $86,000 in both equipment expenses and professional fees. These increases were partially offset by a decrease of $47,000 in the provision for unfunded commitments during the three months ended September 30, 2024 compared to the three months ended September 30, 2023.

An income tax provision of $270,000 was recorded during the three months ended September 30, 2024 compared to an income tax provision of $310,000 recorded during the three months ended September 30, 2023.

Financial Condition

Total assets as of September 30, 2024 were $858.0 million, a decrease of $12.6 million, or 1.5%, compared to total assets of $870.6 million at December 31, 2023. Cash and cash equivalents decreased by $17.0 million, or 58.8%, as of September 30, 2024 compared to December 31, 2023, as cash was used primarily to fund the growth in total loans, which increased by $12.4 million, or 2.4% as of September 30, 2024 compared to year-end 2023. Total deposits increased by $3.9 million, or 0.5%, as of September 30, 2024 compared to December 31, 2023 while short-term borrowings and repurchase agreements decreased by $7.1 million, or 13.4%, as overnight borrowings replaced a 5-year FHLB advance that matured in May 2024, leading to the $15.0 million, or 75.0%, decline in long-term debt.

Juniata maintained a strong liquidity position as of September 30, 2024, with additional borrowing capacity with the Federal Home Loan Bank of Pittsburgh of $242.5 million and $17.3 million in additional borrowing capacity from the Federal Reserve’s Discount Window. In addition, Juniata has access to brokered deposits through two third parties but had no brokered deposits outstanding as of September 30, 2024.

Subsequent Event

On October 15, 2024, the Board of Directors declared a cash dividend of $0.22 per share to shareholders of record on November 15, 2024, payable on November 29, 2024.

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

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

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

Financial Statements

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


(Dollars in thousands, except share data)	(Unaudited)
	September 30, 2024			December 31, 2023
ASSETS
Cash and due from banks	$	6,152		$	17,189
Interest bearing deposits with banks		5,783			11,741
Cash and cash equivalents		11,935			28,930

Equity securities		1,139			1,073
Debt securities available for sale		66,299			67,564
Debt securities held to maturity (fair value $193,108 and $198,147, respectively)		193,762			200,644
Restricted investment in bank stock		1,885			1,707
Total loans		538,250			525,394
Less: Allowance for credit losses		(6,124	)		(5,677	)
Total loans, net of allowance for credit losses		532,126			519,717
Premises and equipment, net		9,514			8,180
Bank owned life insurance and annuities		15,038			14,841
Investment in low income housing partnerships		912			1,154
Core deposit and other intangible assets		279			343
Goodwill		9,812			9,812
Mortgage servicing rights		76			83
Deferred tax asset		9,950			11,319
Accrued interest receivable and other assets		5,229			5,188
Total assets	$	857,956		$	870,555
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Non-interest bearing	$	197,474		$	197,027
Interest bearing		555,440			552,018
Total deposits		752,914			749,045

Short-term borrowings and repurchase agreements		45,721			52,810
Long-term debt		5,000			20,000
Other interest bearing liabilities		823			951
Accrued interest payable and other liabilities		6,956			7,612
Total liabilities		811,414			830,418
Commitments and contingent liabilities
Stockholders’ Equity:
Preferred stock, no par value: Authorized – 500,000 shares, none issued		—			—
Common stock, par value $1.00 per share: Authorized 20,000,000 shares; Issued – 5,151,279 shares at September 30, 2024 and December 31, 2023; Outstanding – 5,003,384 shares at September 30, 2024 and 4,991,129 shares at December 31, 2023		5,151			5,151
Surplus		24,860			24,924
Retained earnings		52,736			51,297
Accumulated other comprehensive loss		(33,809	)		(38,640	)
Cost of common stock in Treasury: 147,895 shares at September 30, 2024; 160,150 shares at December 31, 2023		(2,396	)		(2,595	)
Total stockholders’ equity		46,542			40,137
Total liabilities and stockholders’ equity	$	857,956		$	870,555

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


	Three Months Ended					Nine Months Ended
(Dollars in thousands, except share and per share data)	September 30,					September 30,
	2024		2023			2024		2023
Interest income:
Loans, including fees	$	7,979	$	6,940		$	23,224	$	19,569
Taxable securities		1,421		1,525			4,341		4,684
Tax-exempt securities		30		36			89		109
Other interest income		24		24			116		69
Total interest income		9,454		8,525			27,770		24,431
Interest expense:
Deposits		2,879		2,286			8,243		5,614
Short-term borrowings and repurchase agreements		741		431			2,151		1,314
Long-term debt		31		119			237		353
Other interest bearing liabilities		8		9			25		29
Total interest expense		3,659		2,845			10,656		7,310
Net interest income		5,795		5,680			17,114		17,121
Provision for credit losses		232		121			471		411
Net interest income after provision for credit losses		5,563		5,559			16,643		16,710
Non-interest income:
Customer service fees		473		356			1,300		1,018
Debit card fee income		428		436			1,302		1,293
Earnings on bank-owned life insurance and annuities		60		57			174		167
Trust fees		108		123			359		381
Commissions from sales of non-deposit products		98		87			309		255
Fees derived from loan activity		101		136			445		330
Change in value of equity securities		70		(14	)		66		(78	)
Gain from life insurance proceeds		—		—			—		161
Other non-interest income		107		120			265		366
Total non-interest income		1,445		1,301			4,220		3,893
Non-interest expense:
Employee compensation expense		2,249		2,167			6,689		6,333
Employee benefits		555		429			1,733		1,913
Occupancy		320		312			979		964
Equipment		248		162			617		493
Data processing expense		684		699			2,162		2,226
Professional fees		297		211			830		634
Taxes, other than income		60		(7	)		154		158
FDIC Insurance premiums		141		157			435		352
Amortization of intangible assets		22		25			64		56
Amortization of investment in low-income housing partnerships		81		81			242		273
Merger and acquisition expense		—		18			—		227
Other non-interest expense		444		505			1,453		1,344
Total non-interest expense		5,101		4,759			15,358		14,973
Income before income taxes		1,907		2,101			5,505		5,630
Income tax provision		270		310			767		708
Net income	$	1,637	$	1,791		$	4,738	$	4,922
Earnings per share
Basic	$	0.33	$	0.36		$	0.95	$	0.98
Diluted	$	0.33	$	0.36		$	0.95	$	0.98

The MIL Network –

January 25, 2025

MIL-OSI USA: Boozman Joins Legislation to Protect Survivors of Abortion

US Senate News:

Source: United States Senator for Arkansas – John Boozman
WASHINGTON––U.S. Senator John Boozman (R-AR) joined Senator James Lankford (R-OK) to introduce the Born–Alive Abortion Survivors Protection Act to protect newborns who survive abortions by requiring they receive care from health care practitioners.
The Born-Alive Abortion Survivors Protection Act adds clear expectations of care, hospital transfer requirements, mandatory reporting, private rights of action for moms and reasonable criminal penalties for health care professionals who violate the law. Current law does not provide measures to enforce the protection of these infants, which has allowed the current practice of leaving a child to die after a botched abortion to continue.
“As a society, we should always uphold the dignity of every life. Neglecting to provide life-saving care after a failed abortion is a cruel and inhumane violation of the oath every medical provider swears by to ‘do no harm,’” said Boozman. “I am proud to join my colleagues to protect vulnerable babies regardless of the circumstances of their birth.”
“No child should be denied medical care simply because they are ‘unwanted.’ Today, if an abortion procedure fails and a child is born alive, doctors can just ignore the crying baby on the table and watch them slowly die of neglect. That’s not an abortion, that’s infanticide,” said Lankford.
This legislation is endorsed by March for Life Action, American Association of Pro-Life OBGYNs Action, Susan B. Anthony Pro-Life America, Concerned Women for America LAC, National Right to Life, the Ethics and Religious Liberty Commission, Live Action, Americans United for Life, Family Research Council, Students for Life Action, Alliance Defending Freedom, U.S. Conference of Catholic Bishops, Heritage Action, Family Policy Alliance, Human Coalition, Liberty Council Action, Ethics and Public Policy Center, Christian Employers Alliance, Advancing American Freedom, Focus on the Family, First Rights Global, AdvanceUSA, Coalition for Jewish Values, National Association of Evangelicals, Eagle Forum, Christian Legal Society, Christian Medical and Dental Associations, Faith and Freedom Coalition, Christ Medicus Foundation, Christians Engaged, Children’s AIDS Funds International, Capability Consulting and Catholic Health Care Leadership Alliance.
The Born–Alive Abortion Survivors Protection Act is cosponsored by Senate Majority Leader John Thune (R-SD) and Senators Jim Banks (R-IN), Cindy Hyde-Smith (R-MS), Jim Risch (R-ID), Cynthia Lummis (R-WY), Katie Britt (R-AL), Mitch McConnell (R-KY), Roger Wicker, (R-MS), Marsha Blackburn (R-TN), Mike Crapo (R-ID), Deb Fischer (R-NE), Chuck Grassley (R-IA), John Hoeven (R-ND), Roger Marshall, M.D. (R-KS), Thom Tillis (R-NC), Ted Budd (R-NC), Tim Scott (R-SC), Ron Johnson (R-WI), Tim Sheehy (R-MT), Tommy Tuberville (R-AL), Bill Hagerty (R-TN), John Curtis (R-UT), Todd Young (R-IN), Pete Ricketts (R-NE), Kevin Cramer (R-ND), John Barrasso (R-WY), John Kennedy (R-LA), John Cornyn (R-TX), Bill Cassidy, M.D. (R-LA), Mike Rounds (R-SD), Joni Ernst (R-IA), Rick Scott (R-FL), Steve Daines (R-MT), Markwayne Mullin (R-OK), Lindsey Graham (R-SC), Ted Cruz (R-TX), Eric Schmitt (R-MO), Mike Lee (R-UT), Dan Sullivan (R-AK), Jerry Moran (R-KS), Tom Cotton (R-AR), Josh Hawley (R-MO) and Dave McCormick (R-PA).
Click here to read the text of the legislation.

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Boozman, Wicker Introduce Legislation to Block Taxpayer Funded Abortions

US Senate News:

Source: United States Senator for Arkansas – John Boozman
WASHINGTON ––U.S. Senators John Boozman (R-AR) and Roger Wicker (R-MS) introduced the No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act to make the Hyde Amendment, which prevents the use of taxpayer dollars to fund abortions, permanent.
Under current law, the Hyde Amendment must be reauthorized by Congress every year.
“There has a been longstanding, bipartisan agreement that Americans should not be forced to subsidize abortions with their hard-earned tax dollars,” said Boozman. “Recent attempts to undermine that standard are troubling and we should set a standard across the federal government that protects the consciences of millions in the pro-life community.
“Millions of Americans share my belief that unborn life should be protected in the womb. Using taxpayer dollars to fund abortions is wrong,” Wicker said. “My Senate Republican colleagues, and I will continue fighting to preserve life.”
The legislation is also cosponsored by Senate Majority Leader John Thune (R-SD) and Senators James Lankford (R-OK), Cindy Hyde-Smith (R-MS), Jim Banks (R-IN), John Barrasso (R-WY), Marsha Blackburn (R-TN), Katie Britt (R-AL), Ted Budd (R-NC), Shelly Moore Capito (R-WV), Bill Cassidy, M.D. (R-LA), John Cornyn (R-TX), Tom Cotton (R-AR), Kevin Cramer (R-ND), Mike Crapo (R-ID), Ted Cruz (R-TX), John Curtis (R-UT), Steve Daines (R-MT), Joni Ernst (R-IA), Deb Fischer (R-NE), Lindsey Graham (R-SC), Chuck Grassley (R-IA), Bill Hagerty (R-TN), Josh Hawley (R-MO), John Hoeven (R-ND), Ron Johnson (R-WI), Jim Justice (R-WV), John Kennedy (R-LA), Mike Lee (R-UT), Cynthia Lummis (R-WY), Roger Marshall, M.D. (R-KS), Mitch McConnell (R-KY), Jerry Moran (R-KS), Markwayne Mullin (R-OK), Pete Ricketts (R-NE), Jim Risch (R-ID), Mike Rounds (R-SD), Eric Schmitt (R-MO), Rick Scott (R-FL), Tim Scott (R-SC), Tim Sheehy (R-MT), Dan Sullivan (R-AK), Thom Tillis (R-NC), Tommy Tuberville (R-AL) and Todd Young (R-IN).
Companion legislation was introduced in the U.S. House of Representatives by Congressman Chris Smith (R-NJ-04).
The No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act of 2025is endorsed by multiple pro-life groups. Here’s what they are saying about the bill.
“No matter which party holds power in Washington, Americans should never be forced to fund the violence of abortion with their tax dollars. For nearly 50 years, the Hyde Amendment and its family of policies have protected babies in the womb and their mothers from abortion by prohibiting taxpayer funding of abortion on demand. Despite Americans’ strong support of this policy, pro-abortion members of Congress attack the Hyde family in every spending bill. The No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act would finally apply Hyde principles permanently across the whole federal government, including stopping abortion subsidies in Obamacare,” said Vice President of Government Affairs of Susan B. Anthony Pro-Life America Marilyn Musgrave.
“This Act rightly prevents hard-earned taxpayer dollars from paying for harmful abortions. We at March for Life Action will continue to advocate for legislation that ensures our taxpayer dollars promote life-saving, pro-women, and pro-family policies,” said March for Life Action President Jeanne F. Mancini.

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Kennedy, Lee introduce bill to permanently stop funding for abortions overseas

US Senate News:

Source: United States Senator John Kennedy (Louisiana)
WASHINGTON – Sen. John Kennedy (R-La.), a member of the Senate Judiciary Committee, joined Sen. Mike Lee (R-Utah) in introducing the Protecting Life in Foreign Assistance Act.
The bill would permanently codify the Protecting Life in Global Health Assistance policy (formerly the Mexico City Policy), which forbids the funding of foreign non-governmental organizations that perform or promote abortions. The Mexico City Policy was first instituted by Pres. Ronald Reagan and has since been rescinded and reinstated by various presidential administrations. Pres. Donald Trump expanded this policy to close previously existing loopholes and renamed it the Protecting Life in Global Health Assistance policy.
“America shouldn’t fund abortions in foreign countries—no matter which party holds the White House. It’s time for Congress to show some moral clarity on this issue once and for all by passing this bill,” said Kennedy.
“In our quest to build a society where every precious human life is protected, we cannot allow the tax dollars of American families to be used against the most vulnerable people in our country and across the world: the unborn,” said Lee.
Sens. Ted Budd (R-N.C.), Marsha Blackburn (R-Tenn.), Kevin Cramer (R-N.D.), Pete Ricketts (R-Neb.), Jim Banks (R-Ind.), Tim Scott (R-S.C.), John Cornyn (R-Texas), Deb Fischer (R-Neb.), Tommy Tuberville (R-Ala.), Todd Young (R-Ind.) and Ron Johnson (R-Wis.) cosponsored the legislation.
Text of the Protecting Life in Foreign Assistance Act is available here.

MIL OSI USA News –

January 25, 2025

MIL-OSI Russia: Moscow Metro – Virtual Troika, FPS, and Biometrics: How Moscow’s Ticketing System Changed in 2024

Source: Moscow Metro

Maksim Liksutov reported that digital payment methods for public transport are gaining popularity. For example, virtual Troika cards have been used over 2.5 million times already. This year, passengers have issued more than 120,000 such cards.

Moscow Metro.

Linking Bank Cards in the Moscow Metro App

The service allows users to pay for previous trips in just a couple of clicks, removing their card from the stop-list. You can also view the history of your card’s use on public transport. Passengers have linked nearly 250,000 bank cards in the app.

Biometric Payment on the MCD (Moscow Central Diameters)

In 2024, biometric payment became available at the Nakhabino, Kalanchyovskaya, Likhobory, and Zelenograd-Kryukovo stations. All passengers registered in the system can pay for travel using biometrics on the Diameters.

Faster Payments System (FPS)

This Russian service has been implemented in ticket offices and vending machines of the Moscow Metro. Passengers can use it to buy or top up their Troika card or Muscovite card using a smartphone of any manufacturer.

Biometric Payment for Students

Students now have the option to pay for travel on the metro and MCC (Moscow Central Circle) using biometrics. This convenient payment method is available to over 550,000 students in Moscow.

Virtual Troika Card

This service allows you to pay for travel with any smartphone on all types of public transport. With a virtual “Troika,” passengers spend less than a minute from buying a ticket to validating their ride.

Online Top-Up Activation for Troika Cards

Yellow terminals are no longer needed! Based on passenger requests, automatic activation of online top-ups for Troika and Muscovite cards has been implemented at metro and MCC turnstiles. Additionally, the service has been implemented in open beta on all 3,000 tram validators.

“The city’s ticketing system fully meets the needs of passengers. We offer innovative solutions that are unparalleled in the world in terms of scale and convenience. For example, biometric payment. In addition, in 2024, on the instructions of the Mayor of Moscow, Sergey Sobyanin, new digital services were launched in transport, which made trips even more convenient. Next year, we will continue to develop the most advanced domestic solutions for passengers,” — said Maksim Liksutov.

MIL OSI Russia News –

January 25, 2025

MIL-OSI: Oak Valley Bancorp Reports 4th Quarter Results and Announces Cash Dividend

Source: GlobeNewswire (MIL-OSI)

OAKDALE, Calif., Jan. 24, 2025 (GLOBE NEWSWIRE) — Oak Valley Bancorp (NASDAQ: OVLY) (the “Company”), the bank holding company for Oak Valley Community Bank and their Eastern Sierra Community Bank division, recently reported unaudited consolidated financial results. For the three months ended December 31, 2024, consolidated net income was $6,008,000 or $0.73 per diluted share (EPS), as compared to $7,324,000, or $0.89 EPS, for the prior quarter and $5,865,000, or $0.71 EPS for the same period a year ago. Consolidated net income for the year ended December 31, 2024, totaled $24,948,000, or $3.02 EPS, representing a decrease of 19.1% compared to $30,848,000, or $3.75 EPS for 2023. The decrease in QTD earnings compared to the prior quarter is related to loan recoveries which resulted in the reversal of credit loss provision of $1,620,000 recorded during the third quarter of 2024. The increase over the same period a year ago is related to a credit loss provision of $1,130,000 recorded during the fourth quarter of 2023, corresponding to macro-economic conditions and loan growth of $100.8 million during the fourth quarter of 2023. Despite the positive variance related to the reversal of credit loss provisions, 2024 YTD earnings decreased compared to 2023 due to an increase in deposit interest expense and general operating expenses.

“We are pleased to report another solid year of earnings and commend our team on their commitment to a culture of relationship banking built on a foundation of sound credit quality standards,” stated Chris Courtney, Chief Executive Officer.

Net interest income was $17,846,000 and $70,034,000 for the fourth quarter and year ended December 31, 2024, respectively, compared to $17,655,000 during the prior quarter, $17,914,000 for the fourth quarter of 2023, and $75,802,000 for the year ended December 31, 2023. The QTD increase compared to prior quarter is due to an increase of $39.6 million in average earning assets. The QTD and YTD decreases compared to 2023 is due to an increase in deposit interest expense. The average cost of funds increased to 0.78% in 2024, compared to 0.28% in 2023. The higher interest expense was partially offset by loan growth of $90.0 million, or 8.8%, year-over-year.

Net interest margin was 4.00% and 4.07% (non-GAAP measure, see financial table footnote 1 below) for the fourth quarter and year ended December 31, 2024, respectively, as compared to 4.04% for the prior quarter, 4.15% for the fourth quarter of 2023, and 4.33% for the year ended December 31, 2023. The interest margin decrease compared to prior periods is the result of increased deposit interest expense as described above.

Non-interest income for the fourth quarter and year ended December 31, 2024, totaled $1,430,000 and $6,555,000, respectively, compared to $1,846,000 during the prior quarter, $1,755,000 for the fourth quarter of 2023, and $6,631,000 for the year ended December 31, 2023. The QTD and YTD decreases from prior periods was primarily due to unrealized market value changes on equity securities.

Non-interest expense for the fourth quarter and year ended December 31, 2024, totaled $11,548,000 and $46,017,000, respectively, compared to $11,324,000 during the prior quarter, $10,760,000 for the fourth quarter of 2023 and $41,157,000 for the year ended December 31, 2023. The fourth quarter increases are related to audit, data processing, and consulting among other general operating expense increases. The year-to-date increase compared to 2023 corresponds to staffing expense and general operating costs, including advertising, audit and software licensing, related to servicing the loan and deposit portfolios.

Total assets were $1.90 billion at December 31, 2024, essentially flat compared to September 30, 2024, and an increase of $58.2 million over December 31, 2023. Gross loans were $1.11 billion as of December 31, 2024, an increase of $31.4 million from September 30, 2024, and $90.0 million from December 31, 2023. The Company’s total deposits were $1.70 billion as of December 31, 2024, an increase of $5.4 million from September 30, 2024, and $45.2 million from December 31, 2023. Our liquidity position remains strong as evidenced by $168.8 million in cash and cash equivalents balances at December 31, 2024.

Non-performing assets (“NPA”) remained at zero as of December 31, 2024, as they were for all of 2024 and 2023. The allowance for credit losses (“ACL”) as a percentage of gross loans decreased to 1.04% at December 31, 2024, compared to 1.07% at September 30, 2024 and 1.07% at December 31, 2023. The decrease was related to macro-economic conditions and other credit-related factors that resulted in a favorable output from our CECL credit risk model, combined with loan growth of $31.4 million during the quarter. Given industry concerns of credit risk specific to commercial real estate, management has performed a thorough analysis of this segment within the ACL computation, concluding that the credit loss reserves relative to gross loans remains at acceptable levels, and credit quality remains stable.

The Board of Directors of Oak Valley Bancorp at their January 21, 2025 meeting, declared the payment of a cash dividend of $0.30 per share of common stock to its shareholders of record at the close of business on February 3, 2025. The payment date will be February 14, 2025 and will amount to approximately $2,507,000. This is the first dividend payment made by the Company in 2025.

Oak Valley Bancorp operates Oak Valley Community Bank & their Eastern Sierra Community Bank division, through which it offers a variety of loan and deposit products to individuals and small businesses. They currently operate through 18 conveniently located branches: Oakdale, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, Tracy, Sacramento, Roseville, two branches in Sonora, three branches in Modesto, and three branches in their Eastern Sierra division, which includes Bridgeport, Mammoth Lakes, and Bishop.

For more information, call 1-866-844-7500 or visit www.ovcb.com.

This press release includes forward-looking statements about the corporation for which the corporation claims the protection of safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.

Forward-looking statements are based on management’s knowledge and belief as of today and include information concerning the corporation’s possible or assumed future financial condition, and its results of operations and business. Forward-looking statements are subject to risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include fluctuations in interest rates, government policies and regulations (including monetary and fiscal policies), legislation, economic conditions, including increased energy costs in California, credit quality of borrowers, operational factors, and competition in the geographic and business areas in which the company conducts its operations. All forward-looking statements included in this press release are based on information available at the time of the release, and the Company assumes no obligation to update any forward-looking statement.

Contact:		Chris Courtney/Rick McCarty
Phone:		(209) 848-2265
		www.ovcb.com


Oak Valley Bancorp
Financial Highlights (unaudited)

($ in thousands, except per share)		4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			4th Quarter
Selected Quarterly Operating Data:			2024			2024			2024			2024			2023

	Net interest income	$	17,846		$	17,655		$	17,292		$	17,241		$	17,914
	(Reversal of) provision for credit losses		–			(1,620	)		–			–			1,130
	Non-interest income		1,430			1,846			1,760			1,519			1,755
	Non-interest expense		11,548			11,324			11,616			11,529			10,760
	Net income before income taxes		7,728			9,797			7,436			7,231			7,779
	Provision for income taxes		1,720			2,473			1,547			1,504			1,914
	Net income	$	6,008		$	7,324		$	5,889		$	5,727		$	5,865

	Earnings per common share – basic	$	0.73		$	0.89		$	0.72		$	0.70		$	0.72
	Earnings per common share – diluted	$	0.73		$	0.89		$	0.71		$	0.69		$	0.71
	Dividends paid per common share	$	–		$	0.225		$	–		$	0.225		$	–
	Return on average common equity		12.86	%		16.54	%		14.19	%		13.86	%		16.44	%
	Return on average assets		1.25	%		1.56	%		1.30	%		1.26	%		1.27	%
	Net interest margin (1)		4.00	%		4.04	%		4.11	%		4.09	%		4.15	%
	Efficiency ratio (2)		59.91	%		58.07	%		60.97	%		61.46	%		54.71	%

Capital – Period End
	Book value per common share	$	21.95		$	22.18		$	20.55		$	19.97		$	20.03

Credit Quality – Period End
	Nonperforming assets / total assets		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
	Credit loss reserve / gross loans		1.04	%		1.07	%		1.04	%		1.05	%		1.07	%

Period End Balance Sheet
($ in thousands)
	Total assets	$	1,900,604		$	1,900,455		$	1,840,521		$	1,805,739		$	1,842,422
	Gross loans		1,106,535			1,075,138			1,070,036			1,039,509			1,016,579
	Nonperforming assets		–			–			–			–			–
	Allowance for credit losses		11,460			11,479			11,121			10,922			10,896
	Deposits		1,695,690			1,690,301			1,644,748			1,612,400			1,650,534
	Common equity		183,436			185,393			171,799			166,916			166,092

Non-Financial Data
	Full-time equivalent staff		223			222			223			219			222
	Number of banking offices		18			18			18			18			18

Common Shares outstanding
	Period end		8,357,211			8,358,711			8,359,556			8,359,556			8,293,168
	Period average – basic		8,224,504			8,221,475			8,219,699			8,209,617			8,200,177
	Period average – diluted		8,278,427			8,263,790			8,248,295			8,244,648			8,236,897

Market Ratios
	Stock Price	$	29.25		$	26.57		$	24.97		$	24.78		$	29.95
	Price/Earnings		10.09			7.52			8.69			8.86			10.55
	Price/Book		1.33			1.20			1.22			1.24			1.50

(1) This is a non-GAAP measure because its computed on a fully tax equivalent basis using a marginal federal tax rate of 21%.
(2) This ratio was changed to GAAP basis as of the quarter ended December 31, 2024, and all prior periods have been restated accordingly.



		YEAR ENDED DECEMBER 31,
Profitability			2024			2023
($ in thousands, except per share)
	Net interest income	$	70,034		$	75,802
	(Reversal of) provision for credit losses		(1,620	)		970
	Non-interest income		6,555			6,631
	Non-interest expense		46,017			41,157
	Net income before income taxes		32,192			40,306
	Provision for income taxes		7,244			9,458
	Net income	$	24,948		$	30,848

	Earnings per share – basic	$	3.04		$	3.76
	Earnings per share – diluted	$	3.02		$	3.75
	Dividends paid per share	$	0.45		$	0.32
	Return on average equity		14.39	%		21.87	%
	Return on average assets		1.35	%		1.64	%
	Net interest margin (1)		4.07	%		4.33	%
	Efficiency ratio (2)		60.08	%		49.93	%

Capital – Period End
	Book value per share	$	21.95		$	20.03

Credit Quality – Period End
	Nonperforming assets/ total assets		0.00	%		0.00	%
	Credit loss reserve/ gross loans		1.04	%		1.07	%

Period End Balance Sheet
($ in thousands)
	Total assets	$	1,900,604		$	1,842,422
	Gross loans		1,106,535			1,016,579
	Nonperforming assets		–			–
	Allowance for credit losses		11,460			10,896
	Deposits		1,695,690			1,650,534
	Stockholders’ equity		183,436			166,092

Non-Financial Data
	Full-time equivalent staff		223			222
	Number of banking offices		18			18

Common Shares outstanding
	Period end		8,357,211			8,293,168
	Period average – basic		8,218,846			8,193,874
	Period average – diluted		8,258,857			8,230,892

Market Ratios
	Stock Price	$	29.25		$	29.95
	Price/Earnings		9.64			7.96
	Price/Book		1.33			1.50

	(1) This is a non-GAAP measure because its computed on a fully tax equivalent basis using a marginal federal tax rate of 21%.
	(2) This ratio was changed to GAAP basis as of the year ended December 31, 2024, and the prior period has been restated accordingly.

The MIL Network –

January 25, 2025

MIL-OSI Security: FBI Akron and Hudson Police Release New Images Related to Bank Robbery

Source: Federal Bureau of Investigation (FBI) State Crime News

AKRON, OH—The FBI Akron Resident Agency and the Hudson Police Department are renewing their request seeking the public’s assistance in identifying a male subject in connection to an April 6, 2024 robbery at Key Bank, 120 W. Streetsboro Street, Hudson. The request comes as law enforcement recently released images of the vehicle the robbery suspect entered when he fled the bank.

The vehicle is described as a dark color Kia Sorento SUV. There is reason to believe the suspect was driven to and from the bank by an accomplice. The FBI is asking anyone with information about the suspect, the vehicle, or potential accomplice(s) to the crime, to contact the FBI.

The subject is described as:

White Male
Approximately 6 feet tall
Wearing a dark jacket, blue jeans, black hat, black medical mask, and black sneakers.

On April 6, 2024, at approximately 10:29 a.m., the subject entered the bank, approached the victim teller, and produced a demand note. He then fled the bank with an undisclosed amount of money and entered the Kia Sorento SUV.

The FBI encourages anyone with information to contact the FBI at 1-800-CALL-FBI (1-800-225-5324). Your identity can remain anonymous when submitting tips to the FBI.

MIL Security OSI –

January 25, 2025

MIL-OSI USA: ICYMI—Hagerty Joins Varney & Co. on Fox Business to Discuss Debanking Conservatives, Support for Hegseth, Panama Canal

US Senate News:

Source: United States Senator for Tennessee Bill Hagerty
WASHINGTON—United States Senator Bill Hagerty (R-TN), a member of the Senate Appropriations, Banking, and Foreign Relations Committees and former U.S. Ambassador to Japan, today joined Varney & Co. on Fox Business to discuss the egregious debanking of conservatives, his strong support for Pete Hegseth, and President Donald Trump’s concerns about China’s influence on the Panama Canal.

*Click the photo above or here to watch*
Partial Transcript
Hagerty on banks debanking conservatives: “I certainly side with President Trump on this one because I’ve seen it myself. Look, you’ve got these big banks that have DEI and ESG narratives that they’re trying to follow. You’ve got regulators; I think that’s the most pernicious aspect of this. You’ve got regulators here in Washington, bank supervisors that don’t have to put out a written warning. What they have to do is suggest that perhaps there’s some reputational risk associated with a particular entity or a particular customer, even Barron Trump has had difficulty getting a bank account. I think President Trump has felt this in his own family. Christian ministry groups are having a difficult time. It’s absolutely amazing to me and, I think, to all Americans that the banking system isn’t open and available to everybody in America. We’re going to change that. Now that the gavel has shifted here in the Senate, the Banking Committee is under Republican control. We fully intend to take supervisory action to get a very hard look at this. And on the Executive Branch side, I can guarantee you President Trump is going to dig into this too. It’s got to come to an end.”
Hagerty on his strong support for Pete Hegseth: “Pete is also a hometown favorite for me. He’s from Tennessee. I’ve been friends with Pete for years; I’m delighted to see him into this position. I think if anybody watched the four and a half hours of Pete’s confirmation hearing, what they’ve seen is somebody that’s patriotic, someone that’s bright, someone that’s energetic. Pete’s the type of person that’s going to be transformative at the Pentagon at a time when we really need it. Pete has been clear: he’s going to be focused on lethality and competence, not on pronouns. And he is going to be the type of person that inspires, that helps us recruit and retain the type of military personnel that we need. We’re in a great deficit right now; that’s about to change when Pete Hegseth becomes our next Secretary of Defense, which he will […] [Pete has] the warfighter’s mentality. He understands what they need, and I think he’s going to be a shot in the arm for the Pentagon. It really is going to be a good, positive move.”
Hagerty on the Panama Canal: “David, as you well know, Chinese entities have contracts and operate on both ends of the Panama Canal. I don’t think [President] Jimmy Carter ever anticipated this when he gave the Panama Canal away. This is a strategic asset that was built with American dollars and American lives, frankly. And it’s something that we need to take very seriously. I’ve negotiated with President Trump in the past when I was U.S. Ambassador to Japan. He delivered the U.S.-Japan Trade Agreement, the U.S.-Japan Digital Trade Agreement; I was deeply involved in those negotiations. And one of the things I know for sure is [that] you don’t get ahead of the president.”

MIL OSI USA News –

January 25, 2025

MIL-OSI Banking: Find out which games won 2024 Xbox Excellence Awards

Source: Microsoft

Headline: Find out which games won 2024 Xbox Excellence Awards

Amazing games are at the heart of our mission to bring the joy and community of gaming to everyone on the planet. Now, more screens than ever can be an Xbox, and those screens are lit up by the incredible portfolio of games brought to life by talented developers around the world. These teams create unforgettable gaming experiences that engage and inspire players of all ages. As a thank you to the creators of those games, and to shine a light on the games that players loved in 2024, today we’re announcing the recipients of the 2024 Xbox Excellence Awards.

With over a thousand games launching annually on Xbox consoles, PC and cloud, this could be a case of simply picking a panel to decide – but the Excellence Awards are all about how you engaged with Xbox over the last year. To assemble the list, we selected four key categories which are indicators of players’ passion, engagement, and love for these games. Those four categories are:

Store Rating: Highest-rated content across our stores released in 2024, with a minimum of 500 ratings.
Player Engagement: Games with the highest average hours per player within the first six weeks of release.
Daily Active Users: Games, expansions, or major updates with the highest single-day active users in 2024. You may notice games that weren’t released in 2024 in this list – that’s because they got a significant update last year.
Units Sold: Top-selling content across Xbox and Microsoft stores.

The final list represents a diverse collection of titles produced by studios comprised of anywhere from tens to thousands of developers, located in 15 different countries worldwide. You can find the titles for each category – listed alphabetically – below.

Store Rating	Player Engagement	Daily Active Users	Units Sold
Balatro	Dragon Age: The Veilguard	Apex Legends	7 Days to Die
Banishers: Ghosts of New Eden	Dragon’s Dogma 2	Call of Duty: Black Ops 6	Avatar: Frontiers of Pandora
Botany Manor	EA Sports College Football 25	Dead Island 2	Call of Duty: Black Ops 6
Like a Dragon: Infinite Wealth	EA Sports FC 25	Diablo IV: Vessel of Hatred	Dragon Age: The Veilguard
Little Kitty, Big City	F1 Manager 2024	EA Sports College Football 25	Dragon Ball: Sparking! Zero
Lollipop Chainsaw RePop	Farming Simulator 25	EA Sports FC 25	Dragon’s Dogma 2
Metaphor: ReFantazio	Final Fantasy XIV: Dawntrail	Elden Ring Shadow of the Erdtree	EA Sports College Football 25
Nobody Wants to Die	House Flipper 2	Fallout 4	EA Sports FC 25
Persona 3 Reload	Like a Dragon: Infinite Wealth	Fortnite	EA Sports Madden NFL 25
Poppy Playtime: Chapter 1, 2, 3	Metaphor: ReFantazio	Forza Horizon 5	Farming Simulator 25
Return to Grace	MLB The Show 24	Grand Theft Auto Online	Microsoft Flight Simulator 2024
Rounds	NBA 2K25	Indiana Jones and the Great Circle	MLB The Show 24
Senua’s Saga: Hellblade II	New World: Aeternum	Marvel Rivals	NBA 2K25
Shin Megami Tensei V: Vengeance	NHL 25	Minecraft	NHL 25
Sonic x Shadow Generations	Path of Exile 2	MLB The Show 24	Palworld
Still Wakes the Deep	Shin Megami Tensei V: Vengeance	Palworld	Phasmophobia
The Lord of the Rings: Return to Moria	Skull and Bones	Roblox	Star Wars Outlaws
The Outlast Trials	Star Wars Outlaws	Rocket League	The Lord of the Rings: Return to Moria
Unicorn Overlord	Warhammer 40,000: Space Marine 2	S.T.A.L.K.E.R. 2 Heart of Chornobyl	Warhammer 40,000: Space Marine 2
Warhammer 40,000: Space Marine 2	WWE 2K24	Tom Clancy’s Rainbow Six Siege	WWE 2K24

Developers and publishers will receive their trophies shortly, so be on the lookout to see how they celebrate!

Thinking of joining the many players that helped these games become award winners? Take a look at our collection of games that have received an Xbox Excellence Award for 2024 on the Xbox Store.

MIL OSI Global Banks –

January 25, 2025

MIL-OSI Europe: Answer to a written question – Housing crisis in the European Union – E-002099/2024(ASW)

Source: European Parliament

To address the housing crisis and promote more affordable and sustainable housing in the EU, the Commission will launch the first-ever European Affordable Housing Plan.

The plan will offer technical assistance to cities and Member States, focus on investment and skills needed and support the construction sector.

To promote investments in affordable and sustainable housing, the Commission will set up, together with the European Investment Bank, a pan-European investment platform.

The Commission will work closely with international financial institutions, national promotional banks and institutions and other stakeholders in this work.

The European Social Fund Plus (ESF+) and the European Regional Development Fund (ERDF) can support Member States in implementing principle 19 of the European Pillar of Social Rights ‘Housing and assistance for homeless people’.

While ESF+ actions can include integrated support services for access to housing, including social housing, the ERDF focuses on the provision and improvement of physical housing infrastructure, including through energy efficiency measures.

Moreover, Cohesion policy offers possibilities to use ESF+ and ERDF for housing initiatives in an integrated manner, addressing both the infrastructure and services dimensions.

Young people often struggle to afford housing. ESF+ provides targeted support for the youth through programs combining housing assistance with employment or education opportunities, addressing multiple needs to foster independence.

The existing EU legislative framework, notably initiatives of the Fit for 55 package, sets policies and measures contributing to affordable and sustainable housing. Its implementation is key and will be a priority.

MIL OSI Europe News –

January 25, 2025

MIL-OSI Asia-Pac: Union Home Minister and Minister of Cooperation Shri Amit Shah addresses the inaugural function of the International Year of Cooperatives-2025 in Mumbai, Maharashtra

Source: Government of India (2)

Union Home Minister and Minister of Cooperation Shri Amit Shah addresses the inaugural function of the International Year of Cooperatives-2025 in Mumbai, Maharashtra

Under the leadership of Prime Minister Narendra Modi, cooperatives will pave the way for employment and prosperity for agriculture and rural areas in the coming days

Under the leadership of PM Modi, the double engine government of Maharashtra will make the state a hub of cooperatives in a true sense

Celebrating Year of Cooperatives in India will significantly expand cooperatives across the country

During the International Year of Cooperatives, efforts will be made to increase the reach of cooperatives and to connect every person with cooperatives

Under the leadership of PM Modi, the cooperative sector of India is moving forward with the principles of social harmony, equality and inclusiveness

The cooperative sector running on the principle of ‘Cooperation Amongst Cooperatives’ will be economically self-reliant across the country

The ‘umbrella organization’ will integrate activities like digital banking, mobile banking, online transactions and trade with foreign countries with the Urban Cooperative Bank

Soon, all cooperative banks will be equipped with the services of regular banks, which will lead to the development of cooperative banking

Posted On: 24 JAN 2025 8:53PM by PIB Delhi

Union Home Minister and Minister of Cooperation Shri Amit Shah today addressed the inaugural function of International Year of Cooperatives 2025 in Mumbai, Maharashtra. Shri Amit Shah also inaugurated the corporate office of the National Urban Cooperative Finance and Development Corporation (NUCFDC). On this occasion, Minister of State for Cooperation Shri Murlidhar Mohol, Maharashtra Deputy Chief Ministers Shri Eknath Shinde and Shri Ajit Pawar, along with the Secretary of the Ministry of Cooperation, Dr. Ashish Kumar Bhutani, and several other dignitaries were present.

In his address, Union Home Minister and Minister of Cooperation Shri Amit Shah said that Prime Minister Shri Narendra Modi recently inaugurated the International Year of Cooperatives 2025. He mentioned that the Ministry of Cooperation has outlined a 12-month program to celebrate the Year of Cooperatives in India, which is being inaugurated today. He said that India will celebrate the Year of Cooperatives in a way that will significantly advance the cooperative movement across the country. He emphasized that during the International Year of Cooperatives, efforts will be made to expand the cooperative sector, bring transparency within it, strengthen cooperative institutions, increase the reach of cooperatives to new areas, and connect every individual in India to some form of cooperation.

Shri Shah stated that by December 31, 2025, when the UN International Year of Cooperatives concludes, the growth of India’s cooperative movement will be both symmetric and inclusive, and the goal of “Sahkar Se Samriddhi” will be largely achieved. He further noted that the cooperative sector will play a significant role in achieving the two major goals set by Prime Minister Shri Narendra Modi: becoming the third-largest economic power in the world and transforming into a fully developed nation by 2047. He added that the cooperative sector will advance on the principles of social harmony, equality, and inclusivity.

The Union Home Minister and Minister of Cooperation said that the virtual inauguration of the umbrella organization for cooperative banks, the National Urban Cooperative Finance and Development Corporation (NUCFDC), took place today. He stated that this organization will provide multidimensional benefits to the urban cooperative sector. He added that within the next three years, all our scheduled cooperative banks will be equipped with services equivalent to those offered by national and private banks, which will significantly expand the scope of their services. Along with this, the focus will also be on better utilization of resources, improving banking processes, and unifying the accounting systems of all cooperative banks. Shri Shah mentioned that India currently has a total of 1,465 urban cooperative banks, nearly half of which are located in Gujarat and Maharashtra. The country also has 49 scheduled banks and over 8.25 lakh cooperative institutions.

Union Minister of Cooperation stated that in the coming days, the principle of ‘Cooperation Amongst Cooperatives’ will be implemented across the nation. The ‘umbrella organization’ will do the work of integrating activities like digital banking, mobile banking, online transactions and trade with foreign countries with the Urban Cooperative Bank. All transactions and financial activities of cooperative institutions will be conducted exclusively through cooperative banks. Shri Shah emphasized that once the principle of Cooperation Amongst Cooperatives is effectively grounded in all states, it will lead to significant success, enabling the cooperative sector to achieve economic self-reliance.

Shri Amit Shah stated that the Modi government has resolved several issues concerning urban cooperative banks with the Reserve Bank of India. He mentioned that in the coming days, strengthening the umbrella organization will help increase trust and business while removing all obstacles. He also highlighted that the training program for the 10,000 M-PACS (Multipurpose Primary Agricultural Cooperative Societies) formed under the new bylaws is starting today, marking a new beginning. He further mentioned that the goal is to establish a PACS in every village panchayat across the country. To ensure the viability of PACS, model bylaws have been created, which have been accepted by all states.

Shri Shah stated that under the model bylaws, PACS can now engage in a variety of new activities. He mentioned that the Modi government has spent Rs. 2,500 crore to provide computers and software to each PACS and has made efforts to link these various activities with PACS. He emphasized that to make this initiative successful, technology must be adopted. He also said that by bringing professionalism into PACS, the entire cooperative sector can be strengthened through them.

Union Minister of Cooperation emphasized the importance of involving youth proficient in modern technology to make cooperatives self-reliant, whether in banks or PACS. He expressed confidence that the combined efforts of the ‘double engine government’ led by Prime Minister Shri Narendra Modi, along with Shri Devendra Fadnavis, Shri Eknath Shinde, and Shri Ajit Pawar, would transform Maharashtra into a true hub of cooperative excellence. He said that cooperatives can be a source of employment in every village.

Shri Amit Shah highlighted the significant support extended by the Modi government to the cooperative sector, noting that the introduction of ethanol production has boosted the profitability of sugar mills. He mentioned that to ensure better prices for sugar, Prime Minister Modi recently approved the export of 10 lakh tonnes of sugar, benefiting Maharashtra’s cooperative sugar mills the most. He further stated that the Modi government is committed to advancing the cooperative sector and has introduced a ranking system to achieve this goal. The rankings will cover seven key areas: PACS, dairy, fisheries, urban cooperative banks, housing credit societies, credit cooperatives, and Khadi Village Industries. Shri Shah explained that the ranking system is based on several parameters, including audits, activities, services, financial performance, infrastructure, and branding, collectively weighted for 100 marks. This system aims to enhance transparency and reliability, ensuring that banks can confidently provide funding to PACS based on these rankings in the future.

Union Home Minister and Minister of Cooperation stated that under the leadership of Prime Minister Shri Narendra Modi, the government is advancing with the vision of ‘Sahkar Se Samriddhi’ (Prosperity through cooperation) and “Samriddhi se Aatmanirbharta” , which is self-reliance through prosperity. He announced the initiation of three key projects at the event: the inauguration of the International Year of Cooperative (IYC) 2025 related event calendar, the launch of the office for the umbrella organization of Urban Cooperative Banks – NUCFDC, and the first training session for 10,000 new MPACS members. Shri Amit Shah also revealed that in the upcoming budget session, the government will announce the establishment of the Tribhuvan National Cooperative University, named after the eminent cooperative leader of Gujarat, Shri Tribhuvan Das Patel. This university will focus on producing skilled professionals for various sectors. He expressed confidence that, under Prime Minister Modi’s leadership, the cooperative sector will drive employment and prosperity in agriculture, rural areas, and among the youth in the coming days.

*****

Raj / Vivek / Priyabhanshu / Pankaj

(Release ID: 2095982) Visitor Counter : 74

Read this release in: Hindi

MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI Europe: Greece gets EIB policy support for regions affected by lignite phase-out

Source: European Investment Bank

EIB Advisory supports five Greek regions in social and green transformation projects following the gradual phase-out of lignite in Greece’s energy production
The goal is to improve living standards through investments in renewable energy, reskilling and urban development
The EIB Advisory service is supported by the InvestEU Advisory Hub

The European Investment Bank (EIB) will advise five regions in Greece for investment programmes aimed at mitigating the social and economic impacts of lignite phase-out and facilitating the country’s transition to climate neutrality.

Through the InvestEU Advisory Hub, the EIB will assist Western Macedonia, Megalopolis in the Peloponnese, Crete, and the North and South Aegean Islands, address economic and social aspects of the green transition.

The EIB’s technical assistance, which is valued initially at €2.75 million, will be offered to the five regions. Greece plans to end, by 2026, the use of lignite which generates about a third of the country’s electricity, as it has been proven to be more harmful than other fossil fuels, causing climate change. The EIB have already previously provided similar support to help Germany, Poland and the Czech Republic cope with the permanent closure of lignite mines.

“The European Investment Bank remains focused in its commitment to support Greece in addressing the complex challenges of the green transition, ensuring no region is left behind,” said EIB Vice-President Yannis Tsakiris. “Through the Advisory Hub, we are equipping the five regions with the technical expertise necessary to design and implement long-term investment plans, that will drive social and economic cohesion, foster renewable energy projects, and create sustainable job opportunities. This collaboration is a vital step toward mitigating the socio-economic impacts of the lignite phase-out while laying the groundwork for a climate-neutral future.”

The EIB’s advisory services aim to:

Support and develop investment programmes that aim to revitalize and strengthen local economies.
Enhance institutional frameworks by providing training and sharing best practices from other EU Member States.
Ensure effective project management and compliance with EU standards.
Assist the regions in preparing grant applications, with a submission deadline of 11 September 2025, to secure the necessary funding.

The accord, which comes under the InvestEU programme, builds on the Greek government’s commitment to social and economic cohesion efforts across the country and to align with European Union goals. It is also part of the European Green Deal and the Just Transition Mechanism (JTM), which aim to transform the European Union into the world’s first climate-neutral region by 2050 through mobilizing €100 billion in investments to assist areas most affected by the transition to low-carbon and climate-resilient economies.

The regions receiving this support are covered by Greece’s “Just Transition Plan”. Following, are more details about the five areas:

Western Macedonia: Historically Greece’s energy powerhouse, it is heavily impacted by coal plant decommissioning. The main goal for the next day is to transform it into an “alternative clean energy hub” and to attract investment in new and dynamic sectors of national importance.
Megalopolis, Peloponnese: Renowned for lignite mining and power generation, requiring a transition to sustainable energy sources. The main goal is to promote the area as an “entrepreneurship hub” with an emphasis on new and innovative productive activities around the bioeconomy value chain (agriculture, circular and digital economy)
Crete: Focuses on integrating renewable energy sources and phasing out autonomous power plants. Additionally, the goal is to achieve “greener” development for the island and transform its business activities into more sustainable models.
North Aegean Islands: Relies on agriculture and tourism, with necessary investments in sustainable practices, including the blue economy, as well as the phasing out of autonomous power plants.
South Aegean Islands: The transformation of the tourism-driven economy is anticipated, while promoting green development initiatives and supporting the growth of business activities related to the clean energy value chain

EIB’s role in supporting a climate-neutral Europe

As the EU’s climate bank, the EIB plays a critical role in financing and advising projects under the Sustainable Europe Investment Plan (SEIP). The SEIP’s objective is to mobilise €1trillion in sustainable investments by 2030, with the JTM serving as a cornerstone for ensuring a just and inclusive transition across Europe.

About InvestEU

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. Through advisory support offered to project developers, the InvestEU Advisory Hub mproves the quality of investment projects and their alignment with the EU long term policy goals.

Background information

About the EIB

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

Approximately half of the EIB’s financing within the EU is directed towards cohesion regions, where the per capita income is lower. This underscores the Bank’s commitment to foster inclusive growth and converge the living standards.

MIL OSI Europe News –

January 25, 2025

Category: Banking

IMF Communications Department

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Union Minister Shri Rajiv Ranjan Singh set to launch Pandemic Fund Project and 21st Livestock Census Operation on 25th October 2024One Health approach: $25 Million Pandemic Fund focuses on animal health security

Union Minister Shri Rajiv Ranjan Singh set to launch Pandemic Fund Project and 21st Livestock Census Operation on 25th October 2024

One Health approach: $25 Million Pandemic Fund focuses on animal health security