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  • MIL-OSI Russia: GUU took part in the discussion of the ECG rating and the role of large families in the development of Russia

    Translation. Region: Russian Federal

    Source: State University of Management – Official website of the State –

    Director of the Center for Assessment and Development of Management Competencies of the State University of Management Anton Velichko, as part of the national standard project “Index of Business Reputation of Entrepreneurs (EKG-rating)”, took part in the work of the Annual All-Russian Scientific and Practical Conference of the D. I. Mendeleyev Institute of Demographic Policy “From the Year of the Family to the Century of the Family”.

    The plenary session of the conference was attended by Deputy Prime Minister of the Russian Federation, Deputy Chairperson of the Presidential Council for the Implementation of State Demographic and Family Policy Tatyana Golikova, Plenipotentiary Representative of the President of the Russian Federation in the Central Federal District, member of the Presidential Council for the Implementation of State Demographic and Family Policy Igor Shchegolev, Head of the Presidential Administration for Public Projects Sergei Novikov, Chairman of the State Fund for Support of Participants of the NVO “Defenders of the Fatherland”, State Secretary – Deputy Minister of Defense of the Russian Federation Anna Tsivileva, Chairperson of the Federation Council Committee on Science, Education and Culture, Executive Secretary of the Presidential Council for the Implementation of State Demographic and Family Policy Liliya Gumerova and others.

    The event was attended by more than 400 representatives of government bodies, scientific, educational and public organizations, and businesses.

    The past Year of the Family allowed us not only to focus on the demographic agenda, but also to understand the fact that the Russian family should never again fall out of the sight of the state and society if we are talking about the preservation and development of the Russian nation and statehood.

    The aim of the conference is to find effective solutions in the area of population conservation and improvement of demographic policy, as well as corporate practices to support families with children.

    The annual All-Russian scientific and practical conference of the D. I. Mendeleyev Institute of Demographic Policy “From the Year of the Family to the Century of the Family” is organized with the support of the Administration of the President of the Russian Federation, the Federation Council of the Federal Assembly of the Russian Federation and the Ministry of Labor and Social Protection of the Russian Federation.

    Subscribe to the TG channel “Our GUU” Date of publication: 04/25/2025

    Центра оценки и развития управленческих компетенций ГУУ Антон Величко в рамках проекта национальный стандарт «Индекс деловой репутации субъектов предпринимательской деятельности (ЭКГ-рейтинг)» принял участие в работе Ежегодной всероссийской научно-практической конференции Института демографической политики имени Д….” data-yashareImage=”https://guu.ru/wp-content/uploads/IMG_9380-scaled.jpg” data-yashareLink=”https://guu.ru/%d0%b3%d1%83%d1%83-%d0%bf%d1%80%d0%b8%d0%bd%d1%8f%d0%bb-%d1%83%d1%87%d0%b0%d1%81%d1%82%d0%b8%d0%b5-%d0%b2-%d0%be%d0%b1%d1%81%d1%83%d0%b6%d0%b4%d0%b5%d0%bd%d0%b8%d0%b8-%d1%8d%d0%ba%d0%b3-%d1%80%d0%b5/”>

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

    MIL OSI Russia News –

  • MIL-OSI: Digitalist Group Plc’s Business Review, 1 January – 31 March 2025

    Source: GlobeNewswire (MIL-OSI)

    DIGITALIST GROUP PLC                    Stock Exchange Release 25.4.2025 at 9:00

    Digitalist Group Plc’s Business Review, 1 January – 31 March 2025

    January–March 2025 (comparable figures for 2024 in parentheses):

    • Turnover: EUR 4.5 million (EUR 3.9 million), increase of 15.6%. 
    • EBITDA: EUR -0.1 million (EUR -0.4 million), -3.0% of turnover (-10.4%).
    • EBIT: EUR -0.3 million (EUR -0.6 million), -5.9% of turnover (-15.8%). 
    • Net income: EUR -1.0 million (EUR -1.0 million), -23.0% of turnover (-27.0%).
    • Earnings per share (diluted and undiluted): EUR -0.00 (EUR -0.00).
    • Number of employees at the end of the review period: 123 (125), reduction of 1.6%.

    CEO’s review

    I am pleased to report that Digitalist Group has started 2025 with improvements in both turnover and profitability compared to the same period last year. Our turnover for the first quarter reached EUR 4.5 million, up from EUR 3.9 million in the first quarter of 2024 — an increase of nearly 16%. This growth reflects our continuing efforts to grow in both Sweden and Finland, underscoring the resilience of our business in these key markets.

    Regarding profitability, our first quarter 2025 EBITDA came in at EUR -0.1 million, showing an improvement compared to EUR -0.4 million for the first quarter of 2024. Although we are still in the negative range, the decreased loss underscores the positive impact of our targeted cost-saving measures and more efficient collaboration within the group. 

    We continue to see steady demand in our Swedish operations, which remain a major revenue driver. While the Finnish market remains challenging, our longstanding relationships in both the public and private sectors have helped us in increasing revenue. We have been able to deliver impactful solutions, even in a difficult environment.

    Building on the launch of Digitalist Private AI Hub, we remain convinced that applied AI will become a cornerstone across our service areas as we continue to innovate and broaden our solutions portfolio.

    Through continued operational efficiency and cost discipline, we are strengthening our financial performance, and we remain cautiously optimistic for the remainder of 2025.

    I would like to express my sincere gratitude to all our employees for their dedication and agility during this period. Our collective efforts have laid a strong foundation for the months ahead. I also extend my thanks to our clients for their continued trust in our capabilities. Together, we are moving Digitalist Group toward a more profitable and sustainable future.

    CEO Magnus Leijonborg

    FUTURE PROSPECTS

    In 2025, it is expected that turnover and EBITDA will improve in comparison with 2024.

    At the time of the business review, the company expects its working capital to be sufficient to cover its requirements over the next 12 months based on the financing support provided by the main owner if needed. 

    EVENTS SINCE THE REVIEW PERIOD

    There have been no significant events since the end of the review period.

    The stock exchange releases and the AGM Notice are on the company’s website at www.digitalist.global/investors/releases.

    DIGITALIST GROUP OYJ

    Board of Directors

    Additional information:

    Digitalist Group Plc

    CEO Magnus Leijonborg, tel. +46 76 315 8422, magnus.leijonborg@digitalistgroup.com

    Chairman of the Board Esa Matikainen, tel. +358 40 506 0080, esa.matikainen@digitalistgroup.com

    Distribution:

    Nasdaq Helsinki Ltd

    Major media

    https://digitalist.global

    Attachment

    The MIL Network –

  • MIL-OSI USA: Senator Murray Meets with Farmworkers and Advocates to Discuss Uptick in ICE Enforcement in Skagit & Whatcom Counties

    US Senate News:

    Source: United States Senator for Washington State Patty Murray
    ***AUDIO HERE; PHOTOS and B-ROLL HERE***
    Burlington, WA— Today, U.S. Senator Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee, met with farmworkers, advocates, and community members in Burlington to listen to their concerns amid a recent spike in U.S. Immigration and Customs Enforcement (ICE) activity—including large-scale raids and the detention of local activists and leaders—in Northwest Washington, particularly in Whatcom and Skagit counties.
    Joining Senator Murray for the meeting were: Don McMoran, Director of WSU Skagit County Extension; Rosalinda Guillen, Founder of Community-to-Community Development; Liz Darrow, Participatory Democracy Program Coordinator at Community-to-Community Development; Manuel Reta, President of the Northwest Washington Hispanic Chamber of Commerce; Gilberto Estrada, Property Manager at the Housing Authority of Skagit County; Jose Ramirez, President of Familias Unidas por la Justicia; Edgar Franks, Political Director at Familias Unidas por la Justicia; and a number of immigrant farmworkers and field workers from the community—including Beatriz Godinez, a field worker whose partner Alfredo “Lelo” Juarez Zeferino, a farmworker and advocate for farmworkers’ rights, was arrested in Sedro Wolley on March 25th while dropping Beatriz off at work at a tulip field. ICE agents smashed Lelo’s window to detain him, he was then taken to an ICE facility in Ferndale before being transported to the Northwest ICE Processing Center (NWIPC) in Tacoma, where he has been held since. In another recent high-profile immigration enforcement action, on April 2nd, officers from multiple federal law enforcement agencies detained 37 workers at Mount Baker Roofing in Bellingham.
    “Washington state’s amazing crops, like apples and cherries don’t just get to the store by magic. Tulips don’t just pick themselves. There is a lot of hard work, skill, and dedicated workers who bring our crops from farms to families. Farmworkers are a part of our economy and part of our communities, and we owe them gratitude, good wages, fair treatment, and safe work environments,” said Senator Murray. “There are so many ways Trump’s policies are going to hurt our workers—from gutting worker safety, to tariffs hurting the entire sector, to slashing investments in rural communities. But I have been especially alarmed by the surge in aggressive ICE raids. The stories from the past few months, across the country and right here in Washington state, are heartbreaking and chilling: people being mistreated by border officials and ICE agents, heartbreaking family deportations, and more.”
    “I firmly believe enforcing our immigration laws does not mean forsaking our bedrock principles like due process or ignoring our common sense and wasting crucial resources by targeting law-abiding people who pose no threat to public safety,” Senator Murray continued. “But that’s exactly what Trump is doing—violating the Constitution, ignoring the courts, and trampling the fundamental values we hold dear as a country to do it. It’s blatantly unlawful, and more than that it is cruel. This is creating so much pain and terror in our communities. It’s separating families, scaring workers, and emboldening racism. Our farmworkers don’t deserve to be treated like criminals—they deserve respect. And I will do everything in my power to lift up your voices, fight for your communities, and hold this administration to account.”
    “Alfredo is my partner… I miss him and I love him, so we want your help,” said Beatriz Godinez, a farmworker whose partner Alfredo “Lelo” Juarez Zeferino was arrested in Sedro Wolley on March 25th while dropping Beatriz off at work at a tulip field. Lelo is currently being held at the Northwest ICE Processing Center (NWIPC) in Tacoma Tacoma. Beatriz shared her story with the help of a translator. “ICE came and broke his window and pushed him against the car and were really rough with him, and put them in their ICE car… Lelo wants to be free so he can take care of his brothers and sisters and work so they can study… [Lelo] says that when he gets out, he wants to continue doing his work in the community and with the union, and he’s really hoping that he can get bond to be free to continue that.”
    “In Washington state, we have taken a lot of leadership as an organization and other Latino voters and participants in the state of Washington, along with Familias Unidas por la Justicia to improve conditions for farmworkers across the state. And we also took leadership in the passage of a bill that created an H-2A Oversight Committee, which we are the only state in the nation that’s trying to provide any kind of oversight and enforcement on this. This relates to the well being and job security of farmworkers in the state, but also protection for the H-2A program which is a very abusive program,” said Rosalinda Guillen, Founder of Community-to-Community Development. “We’ve been overseeing immigration rights and justice for over 20 years. We’ve never seen it like this. It is very aggressive, and we are seeing that Homeland Security is rooting itself in our counties. The numbers of H-2A agents, ICE agents present and the border patrol, and the way that they’re implementing the administration’s removal plan, it’s disrespectful, undignified and plain just not following due process…Because we believe, as I’m sure you know, this isn’t over yet, this is going to continue. And the lack of due process is really concerning all of us in the state of Washington, especially because, you know, we’re a state that did not come out in support of the current administration, so we think that we are being targeted in these two counties specifically because of some of the work of the farmworker union and other proactive organizations supporting due process and democracy in this in the state of Washington.”
    “Everything we do is important to this area. We do the pruning, the picking of all the strawberries, blueberries, blackberries, the cucumbers,” said Jose Ramirez, a farmworker and the President of Familias Unidas por la Justicia, who shared his story with the help of a translator. “We don’t want to be in fear. We’re sad about what happened with Alfredo, and I’ve known Alfredo since he started working in the field when he was 12 years old, and even to this day, he still works in the field. On top of that, he’s also still organizing workers. So, him being detained brings a lot of sadness to us, because the only thing that we’re doing here is nothing bad—we’re working and we’re trying to put our families first and take care of them. We don’t feel comfortable just trying to live our lives. And I can tell you about my own personal experience. Just a couple of days ago, I was getting ready to go to work, and outside of my apartment, I saw two unmarked cars that we think were ICE, in this parking lot. So that’s where I talked to my cousin, who also lives in the same apartment, and told them that we shouldn’t go to work that day. We had to lose that day of work. That’s eight hours of work that and wages that we don’t get, and we on top of that, we already don’t make enough money. So we just lost the day because we felt that, had we stepped out, ICE was going to get us.  and we stepped out… We have 600 members in peak season, 500 to 600 families, that’s what I see. I don’t want ICE to come and start separating families. When I see workers in the field, in any field, I don’t see how they call us criminals—I don’t see that. You see people that are there just harvesting and feeding the world, not just trying to make ends meet or, you know, working, but the people that are there harvesting food and doing everything for bettering the world.”
    “What happened with Lelo we feel was done intentionally to silence farm workers and leaders,” said Edgar Franks, Political Director at Familias Unidas por la Justicia. “Familias Unidas has been one of the unions that has been the most outspoken throughout the state and the country on issues on immigration, on labor, on various issues, on climate. And we feel that, because of that outspokenness, that they might be—the leadership might be a potential risk for being targeted for political reasons. You know, I think that throughout the years, the union has won many battles, political battles. You know, we got a Supreme Court hearing in the state that, for the first time, gave workers the right to paid rest breaks. We got overtime for farm workers here, we passed heat and smoke rules for farmworkers and agriculture workers, emergency COVID rules. All these things were done because of the union… So we feel that those things [that] really make the union leadership as effective as they are, also puts them in a dangerous situation. So we are asking for any kind of protection that can be done to give the workers and that security that they’ll be able to go work, fight for justice, and also be able to go back home to their families at the end of the day, just like everybody else.”
    “Skagit County Agriculture is in a very difficult position in 2025.  Nationwide, farm bankruptcies are up 55 percent in 2024 and many will not survive without everyone working together, including farm labor,” said Don McMoran, Director of WSU Skagit County Extension.
    Senator Murray has championed comprehensive and humane immigration reform throughout her Senate career, repeatedly pushing for legislative solutions that would offer a fair pathway to citizenship for the more than 11 million undocumented immigrants living in America, including Dreamers, farmworkers, and those with Temporary Protected Status. She has long worked on legislative efforts to bring dignity and humanity to our immigration system—from protecting the health and safety of immigrant workers, to recognizing and bolstering America’s historical commitment to refugees and asylum seekers and more. She was outspoken in opposition to the Laken Riley Act, arguing it threatened to  drastically undermine civil liberties and divert resources from detaining true threats to public safety.

    MIL OSI USA News –

  • MIL-OSI USA: ICYMI—Hagerty Joins Kudlow on Fox Business to Discuss Russia-Ukraine War, Tariff Negotiations

    US Senate News:

    Source: United States Senator for Tennessee Bill Hagerty
    NASHVILLE, TN—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 Kudlow on Fox Business to discuss the ongoing negotiations to bring a peace deal to the Russia-Ukraine war, along with President Donald Trump’s strength in tariff negotiations with China.

    *Click the photo above or here to watch*
    Partial Transcript
    Hagerty on Trump’s toughness against Russia: “President Trump has continued not only to retain sanctions in place, but actually enforced them, which the Biden Administration never did. The Biden Administration talked tough, but they did not enforce sanctions. What President Trump has done is actually gone into secondary sanctions. I think you read about the fact that President Trump has gone in and sanctioned a Chinese refinery, the buyer of Russian crude [oil]. That is the way to deal with this. That’s the way to put maximum pressure on Russia, their banks, the purchasers of crude oil. That’s the way to deal with this. He’s doing it. The pressure has been maintained and mounting on Vladimir Putin.”
    Hagerty on weakening Russia by regaining U.S. energy independence: “You’re absolutely right, Dave. And President Trump’s been extremely clear about not only wanting to get back to energy independence, but energy dominance for America. That’s bad for Russia, that’s bad for Iran, that’s bad for Venezuela, but it’s great for our allies and for us.”
    Hagerty on the need to end the Russia-Ukraine war: “I think about the fact that [Treasury Secretary] Scott Bessent traveled to Ukraine to put in place a deal for critical minerals that would’ve engaged our economy with theirs. Zelenskyy said, of course I’ll sign it, but I’d like to wait [until] I get to meet with Vice President [JD] Vance in Munich. He goes to Munich—Vice President Vance is courteous enough to meet with him—and he tells Vice President Vance, I’d like to actually sign it with the president at the White House. We accede to that. We let him come to the White House, and what does he do? He tries to re-trade the deal on international TV in front of everybody. I think it really is amazing. I think how congenial President Trump has been in dealing with both of these parties. He wants to bring this to an end, and I’d like to say this: Dave, every week this waits, we’re losing roughly another 5,000 lives. It’s time for both parties, Russia and Ukraine, to get to the table and bring this to an end […] I don’t know the answer in terms of who’s advising Zelenskyy, and I would say this: had it been [Former President] Joe Biden in that Oval office, in that meeting, it would’ve worked, but it certainly is not going to work with President Trump. He wasn’t going to tolerate that sort of behavior. He wasn’t so hungry for a deal to be celebrating it in the Rose Garden. He sent Zelenskyy home, and he should have.”
    Hagerty on Trump’s strength against Iran’s terror regime: “Well, Dave, I’ll remind you that everyone said that the Abraham Accords couldn’t be done, but President Trump was able to deliver on that. If anybody can deliver peace in the Middle East, it’s Donald Trump. I think the Iranians should understand and appreciate the fact that President Trump is not going to take this anymore. It’s going to be maximum pressure. They are the greatest state sponsors of terror, not only in the region, but in the world. They’re in a very difficult place right now. You mentioned, Dave, oil prices are coming down. That’s not good for Iran, right? We started enforcing sanctions, rather than just talking about it the way the Biden Administration said, that’s not good for Iran. Their economy’s in a tough spot right now. Now is the time to negotiate. Now is the time to end this program of terror, to end their nuclear program, and bring peace back to the Middle East.”
    Hagerty on the tariff negotiations between the U.S. and China: “[China tends] to overplay their hand, whether it’s their use of the Belt and Road Initiative, or whether it’s the situation they find themselves in now, again, retaliating against President Trump when he warned them not to, and find themselves in an extraordinarily difficult box. China has a very export dependent economy. They’ve also not played by the same rules that every other major economy does. They steal intellectual property. They subsidize industries. They need to come to the table now and look to actually make a deal […] I worked very closely with the team that negotiated the phase one deal in the first Administration, because they worked with me on the two trade deals that we did with Japan. They committed, at that point, to $200 billion worth of purchases from America. They fell short. China needs to keep its word; China needs to step up. If you think about what happened during the Covid crisis, if you think about the spy balloon that flew across America, there’s a real issue of trust right now. That issue needs to be resolved. China needs to prove that it’s a reliable partner.”

    MIL OSI USA News –

  • MIL-OSI Economics: Cellulose Fiber kinari—Plant-Derived Biodegradable Molding Material

    Source: Panasonic

    Headline: Cellulose Fiber kinari—
    Plant-Derived Biodegradable Molding Material

    Hideo Yamamoto
    R&D Management Department, Mold & Die Technology CenterManufacturing Innovation DivisionPanasonic Holdings CorporationManagement Department, Mold & Die Business CenterPanasonic Production Engineering Co., Ltd.

    Shin Obinata
    CEO, sekisai inc.

    Rie Noritake
    Organizer,100BANCH

    Eagerness to See What Would Happen Led to Our Collaboration

    Noritake: My curiosity sparked a new collaboration when I wondered what could be created by combining kinari and sekisai’s 3D printing. I was eager to see the outcome. The team sekisai was chosen in 2020 for the GARAGE Program of the 100BANCH incubation initiative hosted by Panasonic. Although all team members were students at the time, they created beautiful pieces of work using 3D printing. Therefore, I asked them to create drinking cups for 100BANCH using kinari.
    Yamamoto: We wanted to prevent the enormous quantity of paper and plastic cups used during an event from ending up as waste. However, we had only a month until the event (laughs).
    Noritake: Although the schedule was tight, they created cups before the event and met our hopes for holding a sustainable event. The material kinari can be handled like plastic but has the feel and texture of a wooden material. We initially regarded kinari as only a sustainable material but then discovered its interesting features only after using it.
    Yamamoto: Cellulose fiber accounts for up to 85% of kinari’s composition. Accordingly, kinari is known to be very environmentally friendly for its ability to significantly reduce the use of petroleum-derived plastic. Moreover, kinari has enhanced strength because it contains cellulose fiber, and it is highly recyclable and less prone to quality degradation when recycled.
    Noritake: With its low environmental impact and high durability for extended usage, kinari is an ideal sustainable material. We assumed that its unique wooden texture would further broaden the material’s applicability, such as using it for larger objects, and this led to collaboration with sekisai.

    Leaf installations made from kinari, a biodegradable material, enhancing the atmosphere of Zone 2

    Excitement at Tackling the Unknown Led to an Abundant Flow of Ideas
    Obinata: I was invited to the project in late 2022. Our mission is to open up the possibilities of 3D printing to people’s lives and society. Over the last two years, we attempted a variety of experiments and expressions with kinari until we achieved the creation of leaf installations. Although kinari looks and feels like wood, it offers flexibility for curvy and complex shaping.
    Yamamoto: I felt excited when they first showed me 3D printed prototypes. In the initial year, I asked them to create partitions and chairs. The creation of such large items was unimaginable with conventional injection molding, which casts materials into molds. At sekisai, you are expanding the potential of 3D printing using various materials and designs. What was your impression of handling kinari, a material made mostly from wood?
    Obinata: Since kinari was a completely new material for us, we had trouble at the beginning. With its specific properties, we repeatedly tested hypotheses and eventually gained the ability to handle it with high accuracy. As we groped in the dark, we consulted with the kinari team members many times.
    Yamamoto: When there were things I couldn’t understand, I asked for advice by chatting within the kinari team. The team members also positively considered new trials of 3D printing. They answered my questions by approaching them with an analytical mind specific to engineers. This process literally applied the principle of making use of collective wisdom. Such a productive atmosphere arose because all of us felt this novel project was exciting.

    Obinata: We forged relationships that enabled us to exchange ideas freely and openly whenever we reached an impasse in 3D printing processes. Although it was a rocky path, we were motivated to join hands and resolve all problems.
    Noritake: As the coordinator, it was my top priority to create the relationships necessary to share the same goal. Hierarchical relationships cannot create new or distinctive products. On many occasions, challenges created ideas that led to new values because all team members worked together to develop quality products while maintaining pride in their own expertise.

    Facilitating the Material’s Cycle along with the Hopes of All People Involved in It
    Yamamoto: We were able to create very beautiful leaf installations. It was a great advance to find that kinari is usable for 3D printing, but our more important and meaningful achievement was to redefine the value behind the material. I hope that people come to understand the comprehensive background of the material’s origin and development through our leaf installations.
    Noritake: Until I came to know kinari, I had thought that resins, or plastics, made no difference. However, kinari looks and feels warm, making me feel attached to it. I may have this kind of feeling because it’s a plant-derived material.
    Obinata: I feel that today’s world needs warmth and imperfection unique to plant-derived materials. In industrialized modern society, we tend to shun imperfect things in an attempt to eliminate errors. As a result, our personal belongings, buildings, and towns are homogenized and standardized, losing the natural local character and warmth that creates affinity. We hope our exhibition will bring this trend into question and spread an interest in, and even amusement at, the virtue of imperfection.
    Noritake: When we created a chair using kinari as a prototype, we faced a problem due to the inclusion of impurities, since kinari is a plant-derived material. Initially, we discussed ways of removing foreign materials. However, the foreign materials created textures that resembled knotty wood in the finished chair. Therefore, we came to regard such imperfection as an attractive feature.
    Yamamoto: It is not technically impossible to remove impurities or smears, but we don’t want to do that for kinari. It may be considered part of our role to come up with ways of using what we receive from nature as is.
    Obinata: That’s right. In today’s society, there is too much pressure to be homogeneous and error-free. However, richness dwells in inhomogeneous or uneven materials, I believe. The material kinari puts the insistence on perfection into question. We want to create products and objects that make people feel attached to appearances specific to plants and the land where the plants grew, as well as the background of the processes that gave shape to the objects in front of their eyes.
    Yamamoto: Using kinari, we hope to give shape to background stories, such as how the wood and bamboo grown in people’s towns are actually formed or used, along with the passion of people who entrusted us with their materials. I believe the 720° cycle, which we must exhibit at the Expo, refers not only to a material cycle but also to conveying the hopes of the people engaged in the creation of our objects.

    Leaf installations floating in the Earth area (left) made of small and soft biodegradable segments (right)

    Noritake: Some materials have been discarded as waste, such as twigs and lumber remnants left at forestry sites and unmanageable overgrown plants like bamboo. It sends an important message to transform materials that were previously treated as a nuisance into something highly valuable. It makes us very happy to think that we can use something that already exists rather than something made from scratch.

    Leaf installation prototypes

    Obinata: Children will encounter many unknown things instead of just the familiar at this Expo. It will be fun to offer them experiences that stimulate their curiosity about things they don’t know. Aligning with our hope for the Expo, our exhibits will be recycled after the exhibition to create other things. Thus, we will be able to say our project was successful only after the recycling is achieved. I hope we hear someone saying, “This object was made using the exhibits displayed at Expo 2025,” at yet another Expo in Japan after a few decades.
    Yamamoto: That would be great. I hope that kinari takes root as a seed that grows into such a future.

    MIL OSI Economics –

  • MIL-Evening Report: ER Report: A Roundup of Significant Articles on EveningReport.nz for April 25, 2025

    ER Report: Here is a summary of significant articles published on EveningReport.nz on April 25, 2025.

    Labor takes large leads in YouGov and Morgan polls as surge continues
    Source: The Conversation (Au and NZ) – By Adrian Beaumont, Election Analyst (Psephologist) at The Conversation; and Honorary Associate, School of Mathematics and Statistics, The University of Melbourne With just eight days until the May 3 federal election, and with in-person early voting well under way, Labor has taken a seven-point lead in a national

    Beating malaria: what can be done with shrinking funds and rising threats
    Source: The Conversation (Au and NZ) – By Taneshka Kruger, UP ISMC: Project Manager and Coordinator, University of Pretoria Healthcare in Africa faces a perfect storm: high rates of infectious diseases like malaria and HIV, a rise in non-communicable diseases, and dwindling foreign aid. In 2021, nearly half of the sub-Saharan African countries relied on

    Open letter to Fijians – ‘why is our country supporting Israel’s heinous crimes in Gaza?’
    Pacific Media Watch The Fijians for Palestine Solidarity Network today condemned the Fiji government’s failure to stand up for international law and justice over the Israeli war on Gaza in their weekly Black Thursday protest. “For the past 18 months, we have made repeated requests to our government to do the bare minimum and enforce

    Scares and stunts in the home stretch: election special podcast
    Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra Michelle Grattan and Amanda Dunn discuss the fourth week of the 2025 election campaign. While the death of Pope Francis interrupted campaigning for a while, the leaders had another debate on Tuesday night and the opposition (belatedly) put out its

    Grattan on Friday: Coalition’s campaign lacks good planning and enough elbow grease
    Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra Whatever the result on May 3, even people within the Liberals think they have run a very poor national campaign. Not just poor, but odd. Nothing makes the point more strongly than this week’s release of the opposition’s defence policy.

    Inside the elaborate farewell to Pope Francis
    Source: The Conversation (Au and NZ) – By Carole Cusack, Professor of Religious Studies, University of Sydney ➡️ View the full interactive version of this article here. Carole Cusack 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

    5 ways to tackle Australia’s backlog of asylum cases
    Source: The Conversation (Au and NZ) – By Daniel Ghezelbash, Professor and Director, Kaldor Centre for International Refugee Law, UNSW Law & Justice, UNSW Sydney People who apply for asylum in Australia face significant delays in having their claims processed. These delays undermine the integrity of the asylum system, erode public confidence and cause significant

    Preference deals can decide the outcome of a seat in an election – but not always
    Source: The Conversation (Au and NZ) – By Adrian Beaumont, Election Analyst (Psephologist) at The Conversation; and Honorary Associate, School of Mathematics and Statistics, The University of Melbourne Every election cycle the media becomes infatuated, even if temporarily, with preference deals between parties. The 2025 election is no exception, with many media reports about preference

    What is preferential voting and how does it work? Your guide to making your vote count
    Source: The Conversation (Au and NZ) – By Robert Hortle, Deputy Director, Tasmanian Policy Exchange, University of Tasmania For each Australian federal election, there are two different ways you get to vote. Whether you vote early, by post or on polling day on May 3, each eligible voter will be given two ballot papers: one

    Back to the fuel guzzlers? Coalition plans to end EV tax breaks would hobble the clean transport transition
    Source: The Conversation (Au and NZ) – By Anna Mortimore, Lecturer, Griffith Business School, Griffith University wedmoment.stock/Shutterstock If elected, the Coalition has pledged to end Labor’s substantial tax break for new zero- or low-emissions vehicles. This, combined with an earlier promise to roll back new fuel efficiency standards, would successfully slow the transition to hybrid

    Many experienced tradies don’t have formal qualifications. Could fast-tracked recognition ease the housing crisis?
    Source: The Conversation (Au and NZ) – By Pi-Shen Seet, Professor of Entrepreneurship and Innovation, Edith Cowan University Once again, housing affordability is at the forefront of an Australian federal election. Both major parties have put housing policies at the centre of their respective campaigns. But there are still concerns too little is being done

    This may be as good as it gets: NZ and Australia face a complicated puzzle when it comes to supermarket prices
    Source: The Conversation (Au and NZ) – By Richard Meade, Adjunct Associate Professor, Centre for Applied Energy Economics and Policy Research, Griffith University Daria Nipot/Shutterstock With ongoing cost of living pressures, the Australian and New Zealand supermarket sectors are attracting renewed political attention on both sides of the Tasman. Allegations of price gouging have become

    The phrase ‘fuzzy wuzzy angels’ is far from affectionate – it reflects 500 years of racism
    Source: The Conversation (Au and NZ) – By Erika K. Smith, Associate Lecturer, School of Social Sciences, Western Sydney University This article contains mention of racist terms in historical context. Every Anzac Day, Australians are presented with narratives that re-inscribe particular versions of our national story. One such narrative persistently claims “fuzzy wuzzy angel” was

    Why AUKUS remains the right strategy for the future defence of Australia
    Source: The Conversation (Au and NZ) – By Jennifer Parker, Adjunct Fellow, Naval Studies at UNSW Canberra, and Expert Associate, National Security College, Australian National University Australian strategic thinking has long struggled to move beyond a narrow view of defence that focuses solely on protecting our shores. However, in today’s world, our economy could be

    Election meme hits and duds – we’ve graded some of the best (and worst) of the campaign so far
    Source: The Conversation (Au and NZ) – By T.J. Thomson, Senior Lecturer in Visual Communication & Digital Media, RMIT University As Australia begins voting in the federal election, we’re awash with political messages. While this of course includes the typical paid ads in newspapers and on TV (those ones with the infamously fast-paced “authorised by”

    Markets are choppy. What should you do with your super if you are near retirement?
    Source: The Conversation (Au and NZ) – By Natalie Peng, Lecturer in Accounting, The University of Queensland Shutterstock For Australians approaching retirement, recent market volatility may feel like more than just a bump in the road. Unlike younger investors, who have time on their side, retirees don’t have the luxury of waiting out downturns. A

    Provocative, progressive and fearless: why Beatrice Faust’s views still resonate in Australia
    Source: The Conversation (Au and NZ) – By Judith Brett, Emeritus Professor of Politics, La Trobe University Beatrice Faust is best remembered as the founder, early in 1972, of the Women’s Electoral Lobby (WEL). Women’s Liberation was already well under way. Betty Friedan had published The Feminine Mystique in 1962, arguing that many women found

    ER Report: A Roundup of Significant Articles on EveningReport.nz for April 24, 2025
    ER Report: Here is a summary of significant articles published on EveningReport.nz on April 24, 2025.

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: RI Delegation Calls Out Trump’s 100 Days of Economic Chaos

    US Senate News:

    Source: United States Senator for Rhode Island Jack Reed

    PROVIDENCE, RI – As President Trump approaches his first 100 days in office at the end of the month, U.S. Senators Jack Reed and Sheldon Whitehouse and Congressmen Seth Magaziner and Gabe Amo gathered in Providence today to highlight the economic chaos and financial damage President Trump has caused for families and small businesses and warn that the President could induce a recession unless he changes course.

    Rhode Island’s Congressional delegation says the Trump Administration, Elon Musk’s so-called Department of Government Efficiency (DOGE), and Congressional Republicans continue to threaten Rhode Islanders’ Social Security benefits, Medicaid coverage, nutrition assistance, and federal investments in science and education in favor of a billionaires-first tax agenda.

    President Trump’s scattershot and indiscriminate tariff plan will force families to pay nearly $5,000 more each year.  It has already wiped out trillions of dollars from the stock market and is raising costs and uncertainty for American families and manufacturers.

    Rhode Island’s Congressional delegation visited Farm Fresh today to discuss the impact Trump’s policies are having on everything from food prices to health care and the instability it’s causing for consumers and businesses alike.

    “Donald Trump is a one man financial crisis and has single-handedly driven down consumer confidence and forced up prices with his reckless tariff taxes.  He inherited an economy that was on the upswing and senselessly decimated it with policies that raised prices, deterred investment, and needlessly triggered financial turmoil.  So far, Trump’s economic policies have been a disaster for Main Street and a nightmare for Wall Street.  Instead of increasing costs on consumers and businesses, President Trump must reverse course and work with Democrats to actually lower prices and get our economy working and growing again,” said Reed.

    “Rhode Island is a small business state, and the Trump Tariffs are saddling many business owners with major economic uncertainty,” said Whitehouse.  “Trump is constantly changing his mind about how and when he’s going to slap tariffs on our allies so Republicans can help pay for big tax cuts for giant corporations and the wealthy.  That leaves small business owners wondering which products they’ll be able to stock and at what cost, and whether they’ll be able to make payroll.”

    “Donald Trump’s first 100 days have been an economic disaster,” said Magaziner.  “This is to be expected from an administration of out-of-touch billionaires with no idea what working people go through on a daily basis.  The Trump Administration’s assault on essential programs even includes education – as they have proposed cutting funding for public schools and job training.  I’ll keep fighting alongside the rest of the Rhode Island Congressional delegation to protect education funding, push back against Trump’s extremism, and stand up for our state.”

    “Over the past 100 days, Donald Trump has unleashed a torrent of chaos and confusion on a number of fronts.  This isn’t fear mongering.  Rhode Islanders are right to be afraid when they see the largest number ever — $880 billion — in proposed cuts to Medicaid,” said Amo.  “Yet Medicaid isn’t just a government program; it’s about universal values.  Make no mistake, as a united delegation, we’ll keep sounding the alarm every day until these harmful proposals are defeated for good.”

    Americans are not buying President Trump’s false claims about the prices of gas, eggs, and other groceries: President Trump claimed that gas costs $1.98 per gallon in some states when the national average price is currently $3.17 per gallon and $2.94 in Rhode Island.  Additionally, Trump claimed egg prices are down 94 percent since he took office.  The national average price of eggs in March 2025 was $6.23 – setting an all-time high for the third straight month.  And elsewhere at the grocery store, Americans are paying more for things like coffee – the average price of coffee in March 2025 was $7.38 – up 15 percent since the beginning of the year, while the national average price of ground beef in March 2025 was $5.79, a 3 percent increase from the previous month.

    “In Rhode Island, nearly 40 percent of our population is food insecure.  This means over 42 million meals missed last year by children, seniors and low-income families. The proposed cuts to the SNAP program will not help Rhode Island to lower these awful numbers. The actions of the current administration, including recent USDA funding terminations, are exacerbating this problem by eliminating programs that connect local food from Rhode Island into schools, and the emergency food system.  Any cuts to SNAP are also cuts to our local economy.  Many local farmers and fishers benefit from SNAP redemption at farmers markets statewide.  It is imperative for the state’s well-being that we empower local farmers, fishers and food producers to be part of the solution to end hunger, raise healthy children and boost our local economy,” said Jesse Rye, Executive Director of Farm Fresh Rhode Island.

    Trump’s trade war has created chaos for the economy, driving prices up for families and small businesses.  The President’s blanket tariffs on nearly every product imported into the U.S., including 25 percent tariffs on Canada, Rhode Island’s biggest international trading partner, has already impeded businesses in our state.  The tariffs have increased the cost of imported goods and raw materials on which small businesses depend.  These rising costs have slowed production, reduced competitiveness, and left business owners scrambling.  International travel to the United States has declined sharply since President Trump returned to office, threatening Rhode Island’s tourism industry in the busy summer months ahead.

    Consumer confidence is down nearly 30 percent and the value of the dollar is down nearly 10 percent since President Trump took office.  Prices on everyday goods are expected to climb, with year-ahead inflation expectations hitting 6.7% in April – the highest reading since 1981.  The stock market has dropped considerably, causing retirement plans and savings to plummet as the risk of a recession skyrockets. 

    The Trump administration and Elon Musk’s Department of Government Efficiency are threatening the stability of Social Security benefits for the over 230,000 Rhode Islanders who receive them through customer service cuts and staff firings and buyouts.  President Trump and Congressional Republicans are also trying to take health care coverage from many of the nearly 330,000 Rhode Islanders – 30 percent of the state’s population – who are enrolled in Medicaid or CHIP.  To pay for trillions in tax cuts for mega-corporations and the wealthy, Republicans are preparing to pass a bill with $880 billion in Medicaid cuts.  Approximately 44 percent of births in Rhode Island are covered by Medicaid, and half?of all Rhode Island kids are enrolled in Medicaid.

    MIL OSI USA News –

  • MIL-OSI: Ambia Energy Honored in the 2025 American Business Awards® for Industry-Leading Growth and Innovation

    Source: GlobeNewswire (MIL-OSI)

    LINDON, Utah, April 24, 2025 (GLOBE NEWSWIRE) — Ambia Energy has been awarded two prestigious honors in the 23rd Annual American Business Awards®. CEO Conner Ruggio received a Gold Stevie® Award for Best Entrepreneur in Energy, while COO Spencer Jensen earned a Silver Stevie® Award for Achievement in Management in Energy.

    The American Business Awards are the USA’s premier business awards program. Honoring organizations of all types and sizes, the Stevies recognize outstanding performances in the workplace worldwide. More than 250 professionals participated as judges in determining this year’s winners.

    Judges commended Ruggio for “an outstanding job leading Ambia through a period of incredible growth,” highlighting his strategic leadership that drove a 139% year-over-year increase, expansion into six new states, and company-wide profitability in 2024. His investment in a fully integrated installation model has strengthened Ambia’s ability to serve customers while staying true to its mission of building meaningful careers and stronger communities—earning praise for making it a priority to “give back to the communities in which you live,” as demonstrated by Ambia’s gift of a free solar system to a homeowner battling cancer.

    Appointed COO in 2023, Spencer Jensen was honored for leading a transformational overhaul of Ambia’s operations. Judges noted his “impressive operational transformation, with exceptional results in growth, efficiency, and resilience during a tough market cycle.” Under his leadership, project design timelines were reduced from 55 days to just one, permitting processes were strengthened, and over 2,000 in-house installations were completed in just over a year—contributing to Ambia’s revenue doubling in 2024. Together, Ruggio and Jensen have not only safeguarded Ambia’s growth during a volatile period but also redefined what’s possible in the solar industry. This recognition reflects the company’s commitment to delivering dependable, high-quality energy solutions that help homeowners take control of their energy future.

    See all 2025 American Business Awards winners at stevieawards.com/aba/2025-stevie-award-winners.

    About Ambia Energy
    Ambia Energy is a leading solar and home improvement company with a mission to help homeowners transform their properties into energy-efficient, sustainable spaces. With a focus on innovation and integrity, Ambia’s success is rooted in its dedication to improving the customer experience, ensuring high-quality installations, and fostering a culture of continuous growth and education among its employees.

    Explore Ambia’s award-winning energy solutions at ambiasolar.com.

    Photos accompanying this announcement are available at: 

    https://www.globenewswire.com/NewsRoom/AttachmentNg/6e001b35-5a5d-4e76-8c4e-7c8ca163efca

    https://www.globenewswire.com/NewsRoom/AttachmentNg/22333e1c-5886-4f06-85e6-bef45d0aaf7d

    The MIL Network –

  • MIL-OSI: Credit Acceptance Welcomes CFPB’s Withdrawal From Lawsuit

    Source: GlobeNewswire (MIL-OSI)

    Southfield, Michigan, April 24, 2025 (GLOBE NEWSWIRE) — Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today that on April 24, 2025, the Consumer Financial Protection Bureau (“CFPB”) filed an unopposed motion to withdraw from the lawsuit that it initiated jointly on January 4, 2023, with the Office of the New York State Attorney General (NYAG) against Credit Acceptance in the United States District Court for the Southern District of New York. As of the filing of the CFPB’s motion, Credit Acceptance’s motion to dismiss the case in its entirety remains fully briefed and pending before the Court. Credit Acceptance expects that, if the CFPB’s motion is granted, the NYAG would be the sole remaining plaintiff, and the case would thus be limited to New York consumers only. 

    As outlined in Credit Acceptance’s motion to dismiss, this lawsuit seeks to create new law through litigation and asserts legal theories that conflict with established statutes. Credit Acceptance believes that actions like this harm hardworking Americans by targeting companies that offer financing to customers with non-prime or non-existent credit. The financing provided by Credit Acceptance and other finance companies through auto dealers is essential to millions of Americans who otherwise would be unable to purchase the cars they need to get to work or school, or obtain quality healthcare or groceries, and otherwise take care of their families. The CFPB’s withdrawal would be a significant step toward ensuring that this lawsuit against Credit Acceptance is not used to sidestep the legislative process and impose sweeping regulatory reform.

    “We are pleased with the CFPB’s decision to withdraw from this case, which we believe never should have been brought in the first place,” stated Erin Kerber, Credit Acceptance’s Chief Legal Officer. “We are proud to have provided over five million people with the opportunity to own a vehicle through our network of dealers. We look forward to millions more consumers having such an opportunity and remain committed to operating with integrity and in compliance with all applicable laws.” 

    About Credit Acceptance  
    We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.  

    Without our financing programs, consumers are often unable to purchase vehicles, or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC. For more information, visit creditacceptance.com. 

    Cautionary Statement Regarding Forward-Looking Information

    We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements. Statements in this release that are not historical facts, such as those using terms like “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “assume,” “forecast,” “estimate,” “intend,” “plan,” “target,” or similar expressions, and those regarding our future results, plans, and objectives, are “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (the “SEC”) on February 12, 2025, and other risk factors discussed herein or listed from time to time in our reports filed with the SEC and the following:

    Industry, Operational, and Macroeconomic Risks

    • Our inability to accurately forecast and estimate the amount and timing of future collections could have a material adverse effect on results of operations.
    • Due to competition from traditional financing sources and non-traditional lenders, we may not be able to compete successfully.
    • Adverse changes in economic conditions, the automobile or finance industries, or the non-prime consumer market could adversely affect our financial position, liquidity, and results of operations, the ability of key vendors that we depend on to supply us with services, and our ability to enter into future financing transactions.
    • Reliance on third parties to administer our ancillary product offerings could adversely affect our business and financial results.
    • We are dependent on our senior management, and the loss of any of these individuals or an inability to hire additional team members could adversely affect our ability to operate profitably.
    • Our reputation is a key asset to our business, and our business may be affected by how we are perceived in the marketplace.
    • An outbreak of contagious disease or other public health emergency could materially and adversely affect our business, financial condition, liquidity, and results of operations.
    • The concentration in several states of automobile dealers who participate in our programs could adversely affect us.
    • Reliance on our outsourced business functions could adversely affect our business.
    • Our ability to hire and retain foreign engineering personnel could be hindered by immigration restrictions.
    • We may be unable to execute our business strategy due to current economic conditions.
    • Natural disasters, climate change, military conflicts, acts of war, terrorist attacks and threats, or the escalation of military activity in response to terrorist attacks or otherwise may negatively affect our business, financial condition, and results of operations.
    • Governmental or market responses to climate change and related environmental issues could have a material adverse effect on our business.
    • A small number of our shareholders have the ability to significantly influence matters requiring shareholder approval and such shareholders have interests which may conflict with the interests of our other security holders.

    Capital and Liquidity Risks

    • We may be unable to continue to access or renew funding sources and obtain capital needed to maintain and grow our business.
    • The terms of our debt limit how we conduct our business.
    • A violation of the terms of our asset-backed secured financings or revolving secured warehouse facilities could have a material adverse impact on our operations.
    • Our substantial debt could negatively impact our business, prevent us from satisfying our debt obligations, and adversely affect our financial condition.
    • We may not be able to generate sufficient cash flows to service our outstanding debt and fund operations and may be forced to take other actions to satisfy our obligations under such debt.
    • Interest rate fluctuations may adversely affect our borrowing costs, profitability, and liquidity.
    • Reduction in our credit rating could increase the cost of our funding from, and restrict our access to, the capital markets and adversely affect our liquidity, financial condition, and results of operations.
    • We may incur substantially more debt and other liabilities. This could exacerbate further the risks associated with our current debt levels.
    • The conditions of the U.S. and international capital markets may adversely affect lenders with which we have relationships, causing us to incur additional costs and reducing our sources of liquidity, which may adversely affect our financial position, liquidity, and results of operations.

    Technology and Cybersecurity Risks

    • Our dependence on technology could have a material adverse effect on our business.
    • We depend on secure information technology, and a breach of our systems or those of our third-party service providers could result in our experiencing significant financial, legal, and reputational exposure and could materially adversely affect our business, financial condition, and results of operations.
    • Our use of electronic contracts could impact our ability to perfect our ownership or security interest in Consumer Loans.
    • Failure to properly safeguard our proprietary business information or confidential consumer and team member personal information could subject us to liability, decrease our profitability, and damage our reputation.

    Legal and Regulatory Risks

    • Litigation we are involved in from time to time may adversely affect our financial condition, results of operations, and cash flows.
    • Changes in tax laws and the resolution of uncertain income tax matters could have a material adverse effect on our results of operations and cash flows from operations.
    • The regulations to which we are or may become subject could result in a material adverse effect on our business.

    Other factors not currently anticipated by management may also materially and adversely affect our business, financial condition, and results of operations. We do not undertake, and expressly disclaim any obligation, to update or alter our statements, whether as a result of new information or future events or otherwise, except as required by applicable law.

    The MIL Network –

  • MIL-OSI: Next Hydrogen Reports Q4 2024 and Fiscal 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    MISSISSAUGA, Ontario, April 24, 2025 (GLOBE NEWSWIRE) — Next Hydrogen Solutions Inc. (the “Company” or “Next Hydrogen”) (TSXV:NXH, OTC:NXHSF), a designer and manufacturer of electrolyzers, is pleased to report its financial results for the fourth quarter and full year ended December 31, 2024.

    “Next Hydrogen demonstrated best commercially available cell performance with best-in-class operating range, delivered its second-generation system to a customer site after an extended Factory Acceptance Test, secured a strategically important Green Ammonia project in partnership with GE and Casale, entered the aviation fuels vertical in partnership with Pratt & Whitney and secured funding support from Export Development Canada and existing investors,” said Raveel Afzaal, President & CEO. “With proven technology advantage and globally competitive gigawatt scale manufacturing capacity available through partnering with a leading hydrogen production system manufacturer, our objective is to drive a significant growth in our sales backlog in strategic verticals in 2025.”  

    2024 Financial Highlights

    • Cash balance was $3.5M as of December 31, 2024, compared to $10.9M as of December 31, 2023.
    • Revenue for the year ended December 31, 2024 was $1.4M compared to $1.0M in the same period of the prior year.
    • Net loss and comprehensive loss for the year ended December 31, 2024 was $14.6M compared to $12.0M in the same period of the prior year.

    Management is proud to highlight several recent milestones that demonstrate significant recent progress:

    • In April 2025, Next Hydrogen received a $5M working capital debt facility from the Export Development Canada (“EDC”), of which approximately $3M has been received in cash and the remaining $2M is expected later in the year. Next Hydrogen intends to use the funds where necessary to improve on its technology and for general corporate purposes.
    • Next Hydrogen has achieved over 40,000 hours of data on its test platform driving the significant improvement in cell performance achieved to date.
    • In March 2025, Next Hydrogen partnered with a leading hydrogen production system manufacturer with an existing gigawatt scale manufacturing facility to accelerate the scale-up and commercialization of its water electrolysis technology. This partnership provides Next Hydrogen with world-leading manufacturing capacity and competitively positions it to bid on large-scale projects globally starting in 2026. Next Hydrogen will continue to maintain control over intellectual property and electrolyzer design. The Company also aims to further expand its Canadian operations to ensure flexible supply chain and production that aligns with evolving clean energy policies, driving global green hydrogen adoption.
    • In March 2025, Next Hydrogen received ISO 9001-2015 and ISO 45001-2018 certifications for its 6610 Edwards Boulevard site in Mississauga, Canada. This demonstrates and certifies Next Hydrogen’s standardized quality systems, health and safety management systems, supplier selection processes, and continuous improvement processes. These certifications show that the Company has an efficient operating system capable of scaling to support its expanding customer base.
    • In March 2025, the Company appointed Adarsh Mehta to the Company’s board of directors (the “Board”). Ms. Mehta filled the vacancy on the Board resulting from the resignation of Mr. Matthew Fairlie, who resigned from the Board effective January 15, 2025. Ms. Mehta is VP of Business Development at Jenner Renewable Consulting, with 22 years of experience in renewable energy, leading technical reviews, due diligence, and development for over 2,500MW of wind and solar projects in the Americas. She served on the Canadian Wind Energy Association’s Board from 2008 to 2015 and was Chairperson in 2011. Her extensive expertise in renewable energy and project development is crucial for the Company’s growth.
    • As of December 2024, the Company closed a private placement offering (the “Offering”) and received unsecured convertible debentures (each, a “Debenture”) consisting of about $2.7M principal amount of Debentures. Next Hydrogen intends to use the proceeds of the Offering to invest in its scale-up efforts and for general corporate purposes.
    • In November 2024, Next Hydrogen and Pratt & Whitney announced a collaboration to demonstrate the use of hydrogen in aircraft engines as an enabler for reducing CO2 emissions. This project is partially funded by Canada’s Initiative for Sustainable Aviation Technology (“INSAT”) and will accelerate the Company’s efforts towards high efficiency, low-cost electrolyzers which are needed for establishing hydrogen production infrastructure for aviation fuel.
    • In October 2024, the Company successfully completed a durability test of its second-generation water electrolyzer technology (“GEN2”) electrolysis cells used in the efficient production of green hydrogen. The GEN2 cells will be deployed in Next Hydrogen electrolyzers at customer sites for commercial operation. Next Hydrogen previously reported that it has achieved its energy efficiency targets cell performance of 1.90 V/cell at 1 A/cm2 and 70°C for its GEN2 water electrolyzer technology which exceeded the reported US Department of Energy (“DOE”) technical targets status for energy efficiency. The GEN2 performance achievement has positioned the Company to being the industry leader in electrolysis cell performance.
    • In October 2024, Next Hydrogen welcomed Premier Doug Ford, Associate Minister Sam Oosterhoff, Minister Stephen Lecce, MPP Deepak Anand and MPP Rudy Cuzzetto to their manufacturing facility. This along with the visit from our Deputy Prime Minister (see below) demonstrates the strong alignment between the Company’s work and the national strategy for Canada to be a leader in green hydrogen production.
    • In September 2024, the Company successfully completed an extended Factory Acceptance Test for its GEN2 electrolysis cells. The Company plans to commission the system at an external reference site for market demonstration in 2025.
    • In August 2024, the Company was awarded a contract by the University of Minnesota (“UMN”) for its latest generation electrolysis technology to be installed at the UMN West Central Research and Outreach Center (“WCROC”). The WCROC project is supported by the U.S. Department of Energy’s Advanced Research Project Agency (“ARPA-E”) as well as other partners including RTI International (“RTI”) and will include technologies from Casale SA, RTI, UMN, Nutrien and Shell to demonstrate the production of ammonia from renewable energy targeting emerging energy markets and existing agricultural markets. Next Hydrogen will be supplying its latest third-generation Alkaline Water Electrolyzers featuring further advancements in energy efficiency, current density and operating pressure.
    • In May 2024, the Company was granted a repayable contribution of $2M from Federal Economic Development Agency for Southern Ontario. This non-interest-bearing contribution is intended to support the Company’s growth initiatives aimed at commercialization and business development advancements. The Company continues to be in advanced discussions with FedDev Ontario to help support its activities for 2025 and beyond.
    • In April 2024, Next Hydrogen welcomed former Deputy Prime Minister Chrystia Freeland, MP Kamal Khera and MP Peter Fonseca to their manufacturing facility to announce new investment tax credits which further supported the Canadian clean technology sector. Minister Freeland also stated publicly “Next Hydrogen in Mississauga is changing the game in renewable energy and clean hydrogen production!”

    For a more detailed discussion of Next Hydrogen’s fourth quarter and fiscal 2024 results, please see the Company’s financial statements and management’s discussion and analysis, which are available on the Company’s website at nexthydrogen.com or on SEDAR+ at www.sedarplus.ca.

    In addition, to better understand our achievements from 2024 and the outlook for 2025, please refer to the CEO letter included in the 2024 year-end MD&A.

    About Next Hydrogen

    Founded in 2007, Next Hydrogen is a designer and manufacturer of electrolyzers that use water and electricity as inputs to generate clean hydrogen for use as an energy source. Next Hydrogen’s unique cell design architecture supported by 40 patents enables high current density operations and superior dynamic response to efficiently convert intermittent renewable electricity into green hydrogen on an infrastructure scale. Following successful pilots, Next Hydrogen is scaling up its technology to deliver commercial solutions to decarbonize industrial and transportation sectors.

    Contact Information

    Raveel Afzaal, President and Chief Executive Officer
    Next Hydrogen Solutions Inc.
    Email: rafzaal@nexthydrogen.com
    Phone: 647-961-6620

    www.nexthydrogen.com

    Cautionary Statements

    This news release contains “forward-looking information” and “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the risks associated with the hydrogen industry in general; delays or changes in plans with respect to infrastructure development or capital expenditures; cell efficiency targets; expected order sizes for the product line; customer relationships and customer terms for testing of products at a customer site; the ability of the Corporation to optimize energy efficiencies; the Corporation’s available resources to double its growing backlog; uncertainty with respect to the timing of any contemplated transactions or partnerships, or whether such contemplated transactions or partnerships will be completed at all; whether the uncertainty of estimates and projections relating to costs and expenses; failure to obtain necessary regulatory approvals; health, safety and environmental risks; uncertainties resulting from potential delays or changes in plans with respect to infrastructure developments or capital expenditures; currency exchange rate fluctuations; as well as general economic conditions, stock market volatility; and the ability to access sufficient capital. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, there will be no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.

    The MIL Network –

  • MIL-OSI USA: Cantwell Statement on Resignation of NSF Director Sethuraman Panchanathan

    US Senate News:

    Source: United States Senator for Washington Maria Cantwell

    04.24.25

    Cantwell Statement on Resignation of NSF Director Sethuraman Panchanathan

    EDMONDS, WA – Today, U.S. Senator Maria Cantwell (D-WA), ranking member of the Senate Committee on Commerce, Science, and Transportation and senior member of the Senate Finance Committee, released this statement regarding the resignation of Sethuraman Panchanathan as Director of the U.S. National Science Foundation (NSF):

    “The National Science Foundation 55 percent budget cut is a deliberate dismemberment of America’s innovation engine by Russell Vought and DOGE. This is exactly the type of behavior you would expect from someone seeking to make America weaker and less competitive in the face of its adversaries — it is the type of behavior you would expect from a Chinese Communist Party asset.

    “Don’t blame Panch for stepping down.”

    In April 2023, Sen. Cantwell invited Director Panchanathan to Washington state to discuss opportunities available thanks to the CHIPS & Science Act. At the University of Washington, Panchanathan toured UW’s quantum computing facilities, then joined a forum to discuss diversity in STEM. In Spokane, Panchanathan saw firsthand how Spokane organizations have collaborated to drive the region’s current and future potential as a leader in technology innovation.

    MIL OSI USA News –

  • MIL-OSI USA: Bacon and Crow Introduce Bipartisan Bill to Help Small Business Owners Save Money

    Source: United States House of Representatives – Congressman Don Bacon (2nd District of Nebraska)

    Bacon and Crow Introduce Bipartisan Bill to Help Small Business Owners Save Money
     Small Business Energy Loan Enhancement Act would nearly double the maximum SBA loan amount available for energy efficiency investments

    WASHINGTON — Reps. Don Bacon (R-NE-02) and Jason Crow (D-CO-06) have introduced bipartisan legislation to help small business owners save money by increasing the federal loan amount available for energy efficiency investments. The Small Business Energy Loan Enhancement Act would help business owners looking to make energy efficient upgrades by expanding the maximum allowable cap on SBA 504 loans from $5.5 million to $10 million. 

    Energy costs are one of the largest expenses for commercial buildings, accounting for nearly 40% of total energy consumption in the U.S. However, small businesses often do not have the cash-on-hand to finance large renovations or retrofit projects, and these projects often exceed the U.S. Small Business Administration’s (SBA) current 504 loan cap. 

    “Building businesses of the future means investing in our small businesses today. Rep. Crow and I are reintroducing the Small Business Energy Loan Enhancement Act which will empower small businesses to lower costs and improve their buildings’ operational efficiency,”said Rep. Bacon. “By expanding access to capital for energy-focused investments, this legislation allows small business to freely invest in much needed infrastructure improvements, making business more profitable and sustainable.” 

    Small businesses help create millions of jobs and contribute greatly to our economy. It’s critical that we support small businesses in Colorado and across the country,” said Rep. Crow. “I’m introducing bipartisan legislation to help small businesses save money and be better able to make critical improvements that will help to conserve energy and protect our environment.” 

    The Small Business Energy Loan Enhancement Act is endorsed by Building Owners and Managers Association (BOMA) International. 

    “The Small Business Energy Loan Enhancement Act will make a significant difference across the country, allowing properties to make the necessary investments to reduce energy consumption and bring down energy costs,” said Manuel Moreno, Chair and Chief Elected Officer of the Building Owners and Managers Association (BOMA) 

    International, the professional association representing the commercial real estate sector. “BOMA International is proud to support this bipartisan legislation, and we commend Representatives Crow and Bacon for their leadership on this issue.” 

    ###

    MIL OSI USA News –

  • MIL-OSI: First Savings Financial Group, Inc. Reports Financial Results for the Second Fiscal Quarter Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    JEFFERSONVILLE, Ind., April 24, 2025 (GLOBE NEWSWIRE) — First Savings Financial Group, Inc. (NASDAQ: FSFG – news) (the “Company”), the holding company for First Savings Bank (the “Bank”), today reported net income of $5.5 million, or $0.79 per diluted share, for the quarter ended March 31, 2025, compared to net income of $4.9 million, or $0.72 per diluted share, for the quarter ended March 31, 2024. Excluding nonrecurring items, the Company reported net income of $5.3 million (non-GAAP measure)(1) and net income per diluted share of $0.76 (non-GAAP measure)(1) for the quarter ended March 31, 2025 compared to $3.6 million, or $0.52 per diluted share for the quarter ended March 31, 2024.

    Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated “We are pleased with the second fiscal quarter performance, including the continued improvement in the net interest margin, which has increased eighteen and twenty-one basis points for the three and six months ended, respectively. The SBA Lending segment posted its first profitable quarter since March 2024 and posted a solid level of loans originations and sales. Asset quality improved with nonperforming loans decreasing $3.8 million from the prior quarter and the ratio of nonperforming loans to total gross loans improving to 0.67%, a decrease of twenty basis points from the prior quarter. We are optimistic regarding the remainder of fiscal 2025 as we anticipate further expansion of the net interest margin, continued profitability from the SBA Lending segment, additional sales of home equity lines of credit (“HELOCS”), and stable and strong asset quality. We will continue our focus on customer deposit growth, select loan growth opportunities, preservation of asset quality, and prudent capital and liquidity management. We will also continue to evaluate options and strategies that we believe will maximize shareholder value.”

    (1) Non-GAAP net income and net income per diluted share exclude certain nonrecurring items. A reconciliation to GAAP and discussion of the use of non-GAAP measures is included in the table at the end of this release.

    Results of Operations for the Three Months Ended March 31, 2025 and 2024

    Net interest income increased $1.7 million, or 11.6%, to $16.0 million for the three months ended March 31, 2025 as compared to the same period in 2024. The tax equivalent net interest margin for the three months ended March 31, 2025 was 2.93% as compared to 2.66% for the same period in 2024. The increase in net interest income was due to an increase of $807,000 in interest income and a decrease of $846,000 in interest expense. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release.

    The Company recognized a reversal of provision for credit losses for loans and securities of $357,000 and $1,000, respectively, and a provision for unfunded lending commitments of $123,000 for the three months ended March 31, 2025, compared to a provision for credit losses for loans and securities of $713,000 and $23,000, respectively, and reversal of provision for unfunded lending commitments of $259,000 for the same period in 2024. The reversal of provisions during the 2025 period was due primarily to a decrease in qualitative reserves and $156,000 in net recoveries recognized during the period. The $156,000 in net recoveries during the three months ended March 31, 2025 included $215,000 in net recoveries related to unguaranteed portions of SBA loans. During the three months ended March 31, 2024, the Company recognized net charge-offs of $110,000, of which $15,000 was related to unguaranteed portions of SBA loans. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, decreased $4.2 million from $16.9 million at September 30, 2024 to $12.7 million at March 31, 2025, due primary to a $4.9 million decrease in loan balances guaranteed by the SBA.

    Noninterest income decreased $150,000 for the three months ended March 31, 2025 as compared to the same period in 2024. The decrease was due primarily to a $539,000 decrease in other income, partially offset by a $154,000 increase in service charges on deposit accounts and a $127,000 increase in net gain on sales of SBA loans. The decrease in other income in 2025 was primarily due to $492,000 gain on the sale of mortgage servicing rights during the 2024 period with no corresponding amount for 2025.

    Noninterest expense increased $1.9 million for the three months ended March 31, 2025 as compared to the same period in 2024. The increase was due primarily to increases in compensation and benefits and other operating expenses of $940,000 and $948,000, respectively. The increase in compensation and benefits was primarily due to an increase in bonus and incentive accruals in 2025. The increase in other operating expenses was primarily due a $656,000 reversal of accrued loss contingencies for SBA-guaranteed loans in the 2024 period compared to a reversal of $41,000 for the same period in 2025 and an adjustment to the valuation allowance related to the sale of residential mortgage servicing rights of $247,000 in 2024 with no corresponding amount in 2025.

    The Company recognized income tax expense of $589,000 for the three months ended March 31, 2025 compared to $866,000 for the same period in 2024. The decrease is due primarily to greater utilization of investment tax credits in the 2025 period. The effective tax rate for 2025 was 9.7% compared to 14.9% for 2024. The effective tax rate is well below the statutory tax rate primarily due to the recognition of investment tax credits related to solar projects in both the 2025 and 2024 periods.

    Results of Operations for the Six Months Ended March 31, 2025 and 2024

    The Company reported net income of $11.7 million, or $1.68 per diluted share, for the six months ended March 31, 2025 compared to net income of $5.8 million, or $0.85 per diluted share, for the six months ended March 31, 2024. Excluding nonrecurring items, the Company reported net income of $9.4 million (non-GAAP measure)(1) and net income per diluted share of $1.35 (non-GAAP measure)(1) for the six months ended March 31, 2025 compared to net income of $4.5 million and net income per diluted share of $0.66 for the six months ended March 31, 2024. The core banking segment reported net income of $11.4 million, or $1.64 per diluted share for the six months ended March 31, 2025 compared to net income of $8.6 million and net income per diluted share of $1.25 for the six months ended March 31, 2024. Excluding nonrecurring items, the core banking segment reported net income of $9.1 million (non-GAAP measure)(1), or $1.31 per diluted share (non-GAAP measure)(1) for the six months ended March 31, 2025 compared to net income of $7.7 million and net income per diluted share of $1.12 for the six months ended March 31, 2024.

    Net interest income increased $3.0 million, or 10.6%, to $31.5 million for the six months ended March 31, 2025 as compared to the same period in 2024. The tax equivalent net interest margin for the six months ended March 31, 2025 was 2.84% as compared to 2.68% for the same period in 2024. The increase in net interest income was due to a $4.6 million increase in interest income, partially offset by a $1.6 million increase in interest expense. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release.

    The Company recognized a reversal of provision for credit losses for loans and securities of $848,000 and $7,000, respectively, and a provision for unfunded lending commitments of $169,000 for the six months ended March 31, 2025, compared to a provision for credit losses for loans and securities of $1.2 million and $23,000, respectively, and reversal of provision for unfunded lending commitments of $317,000 for the same period in 2024. The reversal of provisions during the 2025 period was due primarily to the bulk sale of approximately $87.2 million of HELOCS during the period and a decrease in qualitative reserves. The Company recognized net recoveries totaling $38,000 for the six months ended March 31, 2025, of which $164,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $119,000 in 2024, of which $64,000 was related to unguaranteed portions of SBA loans.

    Noninterest income increased $3.2 million for the six months ended March 31, 2025 as compared to the same period in 2024. The increase was due primarily to a $2.5 million net gain on sale of HELOCs in 2025, net gains of $403,000 on the sale of equity securities in 2025 with no corresponding gains for 2024, a $248,000 increase in service charges on deposit accounts, and a $263,000 increase in ATM and interchange fees, slightly offset by a $508,000 decrease in other income due to a $495,000 gain recognized on the sale of mortgage servicing rights during 2024 with no corresponding amount for 2025.

    Noninterest expense increased $824,000 for the six months ended March 31, 2025 as compared to the same period in 2024. The increase was due primarily to increases in other operating expenses and compensation and benefits of $962,000 and $453,000, respectively, partially offset by decreases in professional fees and occupancy and equipment of $454,000 and $380,000, respectively. The increase in other operating expenses was due primarily to a $721,000 reversal of accrued loss contingencies for SBA-guaranteed loans in 2024 compared to a reversal of $148,000 in 2025 and a $400,000 accrued contingent liability associated with employee benefits recognized in 2025 with no corresponding amount in 2024, partially offset by a decrease of $180,000 in 2025 to reverse previously accrued litigation expenses. The increase in compensation and benefits is primarily due to an increase in bonus and incentive accruals in 2025 compared to 2024. The decrease in professional fees and occupancy and equipment is primarily due to the cessation of national mortgage banking operations in the quarter ended December 31, 2023.

    The Company recognized income tax expense of $1.4 million for the six months ended March 31, 2025 compared to $390,000 for the same period in 2024. The increase is due primarily to higher taxable income in the 2025 period, including the aforementioned net gain on sale of loans. The effective tax rate for 2025 was 10.9% compared to 6.3%. The effective tax rate is well below the statutory tax rate primarily due to the recognition of investment tax credits related to solar projects in both the 2025 and 2024 periods.

    Comparison of Financial Condition at March 31, 2025 and September 30, 2024

    Total assets decreased $74.1 million, from $2.45 billion at September 30, 2024 to $2.38 billion at March 31, 2025. Net loans held for investment decreased $83.7 million during the six months ended March 31, 2025 due primarily to the $87.2 million bulk sale of home equity lines of credit.

    Total liabilities decreased $76.2 million due primarily to a decrease in total deposits of $91.7 million, partially offset by an increase in FHLB borrowings of $23.7 million. The decrease in total deposits was due to a decrease in brokered deposits of $112.4 million, due primarily to proceeds from the aforementioned bulk sale of home equity lines of credit and an increase in customer deposits of $20.7 million. As of March 31, 2025, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 31.8% of total deposits and 15.1% of total deposits when excluding public funds insured by the Indiana Public Deposit Insurance Fund.

    Total stockholders’ equity increased $2.1 million, from $177.1 million at September 30, 2024 to $179.2 million at March 31, 2025, due primarily to a $9.6 million increase in retained net income, partially offset by a $8.2 million increase in accumulated other comprehensive loss. The increase in accumulated other comprehensive loss was due primarily to increasing long-term market interest rates during the six months ended March 31, 2025, which resulted in a decrease in the fair value of securities available for sale. At March 31, 2025 and September 30, 2024, the Bank was considered “well-capitalized” under applicable regulatory capital guidelines.

    First Savings Bank is an entrepreneurial community bank headquartered in Jeffersonville, Indiana, which is directly across the Ohio River from Louisville, Kentucky, and operates fifteen depository branches within Southern Indiana. The Bank also has two national lending programs, including single-tenant net lease commercial real estate and SBA lending, with offices located predominately in the Midwest. The Bank is a recognized leader, both in its local communities and nationally for its lending programs. The employees of First Savings Bank strive daily to achieve the organization’s vision, We Expect To Be The BEST community BANK, which fuels our success. The Company’s common shares trade on The NASDAQ Stock Market under the symbol “FSFG.”

    This release may contain forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts; rather, they are statements based on the Company’s current expectations regarding its business strategies and their intended results and its future performance. Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends” and similar expressions.

    Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company’s actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions; changes in market interest rates; changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed in the Company’s periodic filings with the Securities and Exchange Commission.

    Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this release or made elsewhere from time to time by the Company or on its behalf. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.

    Contact:
    Tony A. Schoen, CPA
    Chief Financial Officer
    812-283-0724

     
    FIRST SAVINGS FINANCIAL GROUP, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS
    (Unaudited)
                         
                         
        Three Months Ended   Six Months Ended    
    OPERATING DATA:   March 31,   March 31,    
    (In thousands, except share and per share data)     2025       2024       2025       2024      
                         
    Total interest income   $ 30,823     $ 30,016     $ 63,272     $ 58,671      
    Total interest expense     14,832       15,678       31,819       30,220      
                         
    Net interest income     15,991       14,338       31,453       28,451      
                         
    Provision (credit) for credit losses – loans     (357 )     713       (848 )     1,183      
    Provision (credit) for unfunded lending commitments     123       (259 )     169       (317 )    
    Provision (credit) for credit losses – securities     (1 )     23       (7 )     23      
                         
    Total provision (credit) for credit losses     (235 )     477       (686 )     889      
                         
    Net interest income after provision (credit) for credit losses     16,226       13,861       32,139       27,562      
                         
    Total noninterest income     3,560       3,710       9,663       6,492      
    Total noninterest expense     13,698       11,778       28,641       27,817      
                         
    Income before income taxes     6,088       5,793       13,161       6,237      
    Income tax expense     589       866       1,437       390      
                         
    Net income   $ 5,499     $ 4,927     $ 11,724     $ 5,847      
                         
    Net income per share, basic   $ 0.80     $ 0.72     $ 1.71     $ 0.86      
    Weighted average shares outstanding, basic     6,875,826       6,832,130       6,861,061       6,828,017      
                         
    Net income per share, diluted   $ 0.79     $ 0.72     $ 1.68     $ 0.85      
    Weighted average shares outstanding, diluted     6,960,020       6,859,611       6,961,829       6,849,928      
                         
                         
    Performance ratios (annualized)                    
    Return on average assets     0.93 %     0.84 %     0.98 %     0.50 %    
    Return on average equity     12.24 %     11.96 %     13.15 %     7.38 %    
    Return on average common stockholders’ equity     12.34 %     11.96 %     13.15 %     7.38 %    
    Net interest margin (tax equivalent basis)     2.93 %     2.66 %     2.84 %     2.68 %    
    Efficiency ratio     70.06 %     65.26 %     69.66 %     79.61 %    
                         
                         
                QTD       FYTD
    FINANCIAL CONDITION DATA:   March 31,   December 31,   Increase   September 30,   Increase
    (In thousands, except per share data)     2025       2024     (Decrease)     2024     (Decrease)
                         
    Total assets   $ 2,376,230     $ 2,388,735     $ (12,505 )   $ 2,450,368     $ (74,138 )
    Cash and cash equivalents     28,683       76,224       (47,541 )     52,142       (23,459 )
    Investment securities     244,084       242,634       1,450       249,719       (5,635 )
    Loans held for sale     61,239       24,441       36,798       25,716       35,523  
    Gross loans     1,900,660       1,905,199       (4,539 )     1,985,146       (84,486 )
    Allowance for credit losses     20,484       20,685       (201 )     21,294       (810 )
    Interest earning assets     2,219,504       2,234,258       (14,754 )     2,277,512       (58,008 )
    Goodwill     9,848       9,848       –       9,848       –  
    Core deposit intangibles     316       357       (41 )     398       (82 )
    Loan servicing rights     2,744       2,661       83       2,754       (10 )
    Noninterest-bearing deposits     185,252       183,239       2,013       191,528       (6,276 )
    Interest-bearing deposits (customer)     1,207,159       1,212,527       (5,368 )     1,180,196       26,963  
    Interest-bearing deposits (brokered)     396,770       437,008       (40,238 )     509,157       (112,387 )
    Federal Home Loan Bank borrowings     325,310       295,000       30,310       301,640       23,670  
    Subordinated debt and other borrowings     48,682       48,642       40       48,603       79  
    Total liabilities     2,197,041       2,212,708       (15,667 )     2,273,253       (76,212 )
    Accumulated other comprehensive loss     (19,385 )     (17,789 )     (1,596 )     (11,195 )     (8,190 )
    Total stockholders’ equity     179,189       176,027       3,162       177,115       2,074  
                         
    Book value per share   $ 25.90     $ 25.48       0.42     $ 25.72       0.18  
    Tangible book value per share (non-GAAP) (1)     24.43       24.00       0.43       24.23       0.20  
                         
    Non-performing assets:                    
    Nonaccrual loans – SBA guaranteed   $ 123     $ 4,444     $ (4,321 )   $ 5,036     $ (4,913 )
    Nonaccrual loans     12,597       12,124       473       11,906       691  
    Total nonaccrual loans   $ 12,720     $ 16,568     $ (3,848 )   $ 16,942     $ (4,222 )
    Accruing loans past due 90 days     –       –       –       –       –  
    Total non-performing loans     12,720       16,568       (3,848 )     16,942       (4,222 )
    Foreclosed real estate     444       444       –       444       –  
    Total non-performing assets   $ 13,164     $ 17,012     $ (3,848 )   $ 17,386     $ (4,222 )
                         
    Asset quality ratios:                    
    Allowance for credit losses as a percent of total gross loans     1.08 %     1.09 %     (0.01 %)     1.07 %     0.01 %
    Allowance for credit losses as a percent of nonperforming loans     161.04 %     124.85 %     36.19 %     125.69 %     35.35 %
    Nonperforming loans as a percent of total gross loans     0.67 %     0.87 %     (0.20 %)     0.85 %     (0.18 %)
    Nonperforming assets as a percent of total assets     0.55 %     0.71 %     (0.16 %)     0.71 %     (0.16 %)
                         
    (1) See reconciliation of GAAP and non-GAAP financial measures for additional information relating to calculation of this item.
                         
                         
    RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED):
    The following non-GAAP financial measures used by the Company provide information useful to investors in understanding the Company’s performance. The Company believes the financial measures presented below are important because of their widespread use by investors as a means to evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company’s consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures.
                     
        Three Months Ended   Six Months Ended    
    Net Income   March 31,   March 31,    
    (In thousands)     2025       2024       2025       2024      
                         
    Net income attributable to the Company (non-GAAP)   $ 5,313     $ 3,561     $ 9,367     $ 4,481      
    Plus: Gain on sale of loans, home equity lines of credit, net of tax effect     –       –       1,869       –      
    Plus: Gain on sale of equity securities, net of tax effect     –       –       302       –      
    Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect     –       492       –       492      
    Plus: Adjustment to MSR valuation allowance related to sale, net of tax effect     –       583       –       583      
    Plus: Gain on sale of premises and equipment, net of tax effect     186       90       186       90      
    Plus: Adjustment to previous data processing contract termination accrual, net of tax effect     –       117       –       117      
    Plus: Distribution from equity investment, net of tax effect     –       85       –       85      
    Net income attributable to the Company (GAAP)   $ 5,499     $ 4,927     $ 11,724     $ 5,847      
                         
    Net Income per Share, Diluted                    
                         
    Net income per share attributable to the Company, diluted (non-GAAP)   $ 0.76     $ 0.52     $ 1.35     $ 0.65      
    Plus: Gain on sale of loans, home equity lines of credit, net of tax effect     –       –       0.27       –      
    Plus: Gain on sale of equity securities, net of tax effect     –       –       0.03       –      
    Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect     –       0.07       –       0.07      
    Plus: Adjustment to MSR valuation allowance related to sale, net of tax effect     –       0.08       –       0.08      
    Plus: Gain on sale of premises and equipment, net of tax effect     0.03       0.01       0.03       0.01      
    Plus: Adjustment to previous data processing contract termination accrual, net of tax effect     –       0.02       –       0.02      
    Plus: Distribution from equity investment, net of tax effect     –       0.02       –       0.02      
    Net income per share, diluted (GAAP)   $ 0.79     $ 0.72     $ 1.68     $ 0.85      
                         
    Core Bank Segment Net Income                    
    (In thousands)                    
                         
    Net income attributable to the Core Bank (non-GAAP)   $ 4,883     $ 3,637     $ 9,081     $ 7,685      
    Plus: Gain on sale of loans, home equity lines of credit, net of tax effect     –       –       1,869       –      
    Plus: Gain on sale of equity securities, net of tax effect     –       –       302       –      
    Plus: Adjustment to MSR valuation allowance related to sale, net of tax effect     –       583       –       583      
    Plus: Gain on sale of premises and equipment, net of tax effect     186       90       186       90      
    Plus: Adjustment to previous data processing contract termination accrual, net of tax effect     –       117       –       117      
    Plus: Distribution from equity investment, net of tax effect     –       85       –       85      
    Net income attributable to the Core Bank (GAAP)   $ 5,069     $ 4,511     $ 11,438     $ 8,559      
                         
    Core Bank Segment Net Income per Share, Diluted                    
                         
    Core Bank net income per share, diluted (non-GAAP)   $ 0.70     $ 0.53     $ 1.31     $ 1.12      
    Plus: Gain on sale of loans, home equity lines of credit, net of tax effect     –       –       0.27       –      
    Plus: Gain on sale of equity securities, net of tax effect     –       –       0.03       –      
    Plus: Adjustment to MSR valuation allowance related to sale, net of tax effect     –       0.08       –       0.08      
    Plus: Gain on sale of premises and equipment, net of tax effect     –       0.01       0.03       0.01      
    Plus: Adjustment to previous data processing contract termination accrual, net of tax effect     0.03       0.02       –       0.02      
    Plus: Distribution from equity investment, net of tax effect     –       0.02       –       0.02      
    Core Bank net income per share, diluted (GAAP)   $ 0.73     $ 0.66     $ 1.64     $ 1.25      
                         
                         
    RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED) (CONTINUED):   Three Months Ended   Fiscal Year Ended    
    Efficiency Ratio   March 31,   March 31,    
    (In thousands)     2025       2024       2025       2024      
                         
    Net interest income (GAAP)   $ 15,991     $ 14,338     $ 31,453     $ 28,451      
                         
    Noninterest income (GAAP)     3,560       3,710       9,663       6,492      
                         
    Noninterest expense (GAAP)     13,698       11,778       28,641       27,817      
                         
    Efficiency ratio (GAAP)     70.06 %     65.26 %     69.66 %     79.61 %    
                         
    Noninterest income (GAAP)   $ 3,560     $ 3,710     $ 9,663     $ 6,492      
    Less: Gain on sale of loans, home equity lines of credit     –       –       (2,492 )     –      
    Less: Gain on sale of equity securities     –       –       (403 )     –      
    Less: Gain on sale of premises and equipment     (248 )     (120 )     (248 )     (120 )    
    Less: Adjustment to MSR valuation allowance related to sale     –       (530 )     –       (530 )    
    Less: Distribution from equity investment     –       (113 )     –       (113 )    
    Noninterest income (Non-GAAP)     3,312       2,947       6,520       5,729      
                         
    Noninterest expense (GAAP)   $ 13,698     $ 11,778     $ 28,641     $ 27,817      
    Plus: Adjustment to MSR valuation allowance related to sale     –       247       –       247      
    Plus: Decrease in loss contingency for SBA-guaranteed loans     –       656       –       656      
    Plus: Adjustment to previous data processing contract termination accrual     –       156       –       156      
    Noninterest expense (Non-GAAP)   $ 13,698     $ 12,837     $ 28,641     $ 28,876      
                         
    Efficiency ratio (excluding nonrecurring items) (non-GAAP)     70.96 %     74.27 %     75.42 %     84.48 %    
                         
                         
                QTD       FYTD
    Tangible Book Value Per Share   March 31,   December 31,   Increase   September 30,   Increase
    (In thousands, except share and per share data)     2025       2024     (Decrease)     2024     (Decrease)
                         
    Stockholders’ equity (GAAP)   $ 179,189     $ 176,027     $ 3,162     $ 177,115     $ 2,074  
    Less: goodwill and core deposit intangibles     (10,164 )     (10,205 )     41       (10,246 )     82  
    Tangible stockholders’ equity (non-GAAP)   $ 169,025     $ 165,822     $ 3,203     $ 166,869     $ 2,156  
                         
    Outstanding common shares     6,919,136       6,909,173     $ 9,963       6,887,106     $ 32,030  
                         
    Tangible book value per share (non-GAAP)   $ 24.43     $ 24.00     $ 0.43     $ 24.23     $ 0.20  
                         
    Book value per share (GAAP)   $ 25.90     $ 25.48     $ 0.42     $ 25.72     $ 0.18  
                         
                         
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED):   As of
    Summarized Consolidated Balance Sheets   March 31,   December 31,   September 30,   June 30,   March 31,
    (In thousands, except per share data)     2025       2024       2024       2024       2024  
                         
    Total cash and cash equivalents   $ 28,683     $ 76,224     $ 52,142     $ 42,423     $ 62,969  
    Total investment securities     244,084       242,634       249,719       238,785       240,142  
    Total loans held for sale     61,239       24,441       25,716       125,859       19,108  
    Total loans, net of allowance for credit losses     1,880,176       1,884,514       1,963,852       1,826,980       1,882,458  
    Loan servicing rights     2,744       2,661       2,754       2,860       3,028  
    Total assets     2,376,230       2,388,735       2,450,368       2,393,491       2,364,983  
                         
    Customer deposits   $ 1,392,411     $ 1,395,766     $ 1,371,724     $ 1,312,997     $ 1,239,271  
    Brokered deposits     396,770       437,008       509,157       399,151       548,175  
    Total deposits     1,789,181       1,832,774       1,880,881       1,712,148       1,787,446  
    Federal Home Loan Bank borrowings     325,310       295,000       301,640       425,000       315,000  
                         
    Common stock and additional paid-in capital   $ 28,650     $ 28,382     $ 27,725     $ 27,592     $ 27,475  
    Retained earnings – substantially restricted     182,918       178,526       173,337       170,688       167,648  
    Accumulated other comprehensive loss     (19,385 )     (17,789 )     (11,195 )     (17,415 )     (17,144 )
    Unearned stock compensation     (862 )     (973 )     (901 )     (999 )     (1,096 )
    Less treasury stock, at cost     (12,132 )     (12,119 )     (11,851 )     (11,866 )     (11,827 )
    Total stockholders’ equity     179,189       176,027       177,115       168,000       165,056  
                         
    Outstanding common shares     6,919,136       6,909,173       6,887,106       6,883,656       6,883,160  
                         
                         
        Three Months Ended
    Summarized Consolidated Statements of Income   March 31,   December 31,   September 30,   June 30,   March 31,
    (In thousands, except per share data)     2025       2024       2024       2024       2024  
                         
    Total interest income   $ 30,823     $ 32,449     $ 32,223     $ 31,094     $ 30,016  
    Total interest expense     14,832       16,987       17,146       16,560       15,678  
    Net interest income     15,991       15,462       15,077       14,534       14,338  
    Provision (credit) for credit losses – loans     (357 )     (491 )     1,808       501       713  
    Provision (credit) for unfunded lending commitments     123       46       (262 )     158       (259 )
    Provision (credit) for credit losses – securities     (1 )     (6 )     (86 )     84       23  
    Total provision (credit) for credit losses     (235 )     (451 )     1,460       743       477  
                         
    Net interest income after provision for credit losses     16,226       15,913       13,617       13,791       13,861  
                         
    Total noninterest income     3,560       6,103       2,842       3,196       3,710  
    Total noninterest expense     13,698       14,943       12,642       12,431       11,778  
    Income before income taxes     6,088       7,073       3,817       4,556       5,793  
    Income tax expense (benefit)     589       848       145       483       866  
    Net income     5,499       6,225       3,672       4,073       4,927  
                         
                         
    Net income per share, basic   $ 0.80     $ 0.91     $ 0.54     $ 0.60     $ 0.72  
    Weighted average shares outstanding, basic     6,875,826       6,851,153       6,832,626       6,832,452       6,832,130  
                         
    Net income per share, diluted   $ 0.79     $ 0.89     $ 0.53     $ 0.60     $ 0.72  
    Weighted average shares outstanding, diluted     6,960,020       6,969,223       6,894,532       6,842,336       6,859,611  
                         
                         
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):   Three Months Ended
    Noninterest Income Detail   March 31,   December 31,   September 30,   June 30,   March 31,
    (In thousands)     2025       2024       2024       2024       2024  
                         
    Service charges on deposit accounts   $ 541     $ 567     $ 552     $ 538     $ 387  
    ATM and interchange fees     632       665       642       593       585  
    Net unrealized gain on equity securities     47       78       28       419       6  
    Net gain on equity securities     –       403       –       –       –  
    Net gain on sales of loans, Small Business Administration     1,078       711       647       581       951  
    Net gain on sales of loans, home equity lines of credit     –       2,492       –       –       –  
    Mortgage banking income     104       78       6       49       53  
    Increase in cash surrender value of life insurance     380       361       363       353       333  
    Gain on life insurance     –       108       –       –       –  
    Commission income     255       210       294       220       220  
    Real estate lease income     122       121       122       154       115  
    Net gain (loss) on premises and equipment     –       45       (4 )     –       120  
    Other income     401       264       192       289       940  
    Total noninterest income   $ 3,560     $ 6,103     $ 2,842     $ 3,196     $ 3,710  
                         
                         
        Three Months Ended
        March 31,   December 31,   September 30,   June 30,   March 31,
    Consolidated Performance Ratios (Annualized)     2025       2024       2024       2024       2024  
                         
    Return on average assets     0.93 %     1.02 %     0.61 %     0.69 %     0.92 %
    Return on average equity     12.24 %     14.07 %     8.52 %     9.86 %     13.06 %
    Return on average common stockholders’ equity     12.34 %     14.07 %     8.52 %     9.86 %     13.06 %
    Net interest margin (tax equivalent basis)     2.93 %     2.75 %     2.72 %     2.67 %     2.66 %
    Efficiency ratio     70.06 %     69.29 %     70.55 %     70.11 %     65.26 %
                         
                         
        As of or for the Three Months Ended
        March 31,   December 31,   September 30,   June 30,   March 31,
    Consolidated Asset Quality Ratios     2025       2024       2024       2024       2024  
                         
    Nonperforming loans as a percentage of total loans     0.67 %     0.87 %     0.85 %     0.91 %     0.82 %
    Nonperforming assets as a percentage of total assets     0.55 %     0.71 %     0.71 %     0.72 %     0.68 %
    Allowance for credit losses as a percentage of total loans     1.08 %     1.09 %     1.07 %     1.07 %     1.02 %
    Allowance for credit losses as a percentage of nonperforming loans     161.04 %     124.85 %     125.69 %     118.12 %     124.01 %
    Net charge-offs to average outstanding loans     -0.01 %     0.01 %     0.02 %     0.01 %     0.01 %
                         
                         
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):   Three Months Ended
    Segmented Statements of Income Information   March 31,   December 31,   September 30,   June 30,   March 31,
    (In thousands)     2025       2024       2024       2024       2024  
                         
    Core Banking Segment:                    
    Net interest income   $ 14,259     $ 13,756     $ 14,083     $ 13,590     $ 13,469  
    Provision (credit) for credit losses – loans     (540 )     (745 )     1,339       320       909  
    Provision (credit) for unfunded lending commitments     35       (75 )     78       64       (259 )
    Provision (credit) for credit losses – securities     (1 )     (7 )     (86 )     84       23  
    Net interest income after provision (credit) for credit losses     14,765       14,583       12,752       13,122       12,796  
    Noninterest income     2,242       5,253       2,042       2,474       2,537  
    Noninterest expense     11,486       12,574       10,400       10,192       10,093  
    Income before income taxes     5,521       7,262       4,394       5,404       5,240  
    Income tax expense     452       893       301       689       729  
    Net income   $ 5,069     $ 6,369     $ 4,093     $ 4,715     $ 4,511  
                         
    SBA Lending Segment (Q2):                    
    Net interest income   $ 1,732     $ 1,706     $ 994     $ 944     $ 869  
    Provision (credit) for credit losses – loans     183       255       469       181       (196 )
    Provision (credit) for unfunded lending commitments     88       121       (340 )     94       –  
    Net interest income after provision for credit losses     1,461       1,330       865       669       1,065  
    Noninterest income     1,318       850       800       722       1,173  
    Noninterest expense     2,212       2,369       2,242       2,239       1,685  
    Income (loss) before income taxes     567       (189 )     (577 )     (848 )     553  
    Income tax expense (benefit)     137       (45 )     (156 )     (206 )     137  
    Net income (loss)   $ 430     $ (144 )   $ (421 )   $ (642 )   $ 416  
                         
                         
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):   Three Months Ended
    Segmented Statements of Income Information   March 31,   December 31,   September 30,   June 30,   March 31,
    (In thousands, except percentage data)     2025       2024       2024       2024       2024  
                         
    Net Income (Loss) Per Share by Segment                    
    Net income per share, basic – Core Banking   $ 0.74     $ 0.93     $ 0.60     $ 0.69     $ 0.66  
    Net income (loss) per share, basic – SBA Lending (Q2)     0.06       (0.02 )     (0.06 )     (0.09 )     0.06  
    Total net income (loss) per share, basic   $ 0.80     $ 0.91     $ 0.54     $ 0.60     $ 0.72  
                         
    Net Income (Loss) Per Diluted Share by Segment                    
    Net income per share, diluted – Core Banking   $ 0.73     $ 0.91     $ 0.59     $ 0.69     $ 0.66  
    Net income (loss) per share, diluted – SBA Lending (Q2)     0.06       (0.02 )     (0.06 )     (0.09 )     0.06  
    Total net income (loss) per share, diluted   $ 0.79     $ 0.89     $ 0.53     $ 0.60     $ 0.72  
                         
    Return on Average Assets by Segment (annualized) (3)                    
    Core Banking     0.90 %     1.09 %     0.71 %     0.83 %     0.80 %
    SBA Lending     1.58 %     (0.55 %)     (1.71 %)     (2.91 %)     1.81 %
                         
    Efficiency Ratio by Segment (annualized) (3)                    
    Core Banking     69.61 %     66.15 %     64.50 %     63.45 %     63.06 %
    SBA Lending     72.52 %     92.68 %     124.97 %     134.39 %     82.52 %
                         
                         
        Three Months Ended
    Noninterest Expense Detail by Segment   March 31,   December 31,   September 30,   June 30,   March 31,
    (In thousands)     2025       2024       2024       2024       2024  
                         
    Core Banking Segment:                    
    Compensation   $ 6,637     $ 7,245     $ 5,400     $ 5,587     $ 5,656  
    Occupancy     1,648       1,577       1,554       1,573       1,615  
    Advertising     429       338       399       253       205  
    Other     2,772       3,414       3,047       2,779       2,617  
    Total Noninterest Expense   $ 11,486     $ 12,574     $ 10,400     $ 10,192     $ 10,093  
                         
    SBA Lending Segment (Q2):                    
    Compensation   $ 1,892     $ 1,931     $ 1,854     $ 1,893     $ 1,933  
    Occupancy     50       59       55       51       58  
    Advertising     10       14       17       12       7  
    Other     260       365       316       283       (313 )
    Total Noninterest Expense   $ 2,212     $ 2,369     $ 2,242     $ 2,239     $ 1,685  
                         
                         
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):   Three Months Ended
    SBA Lending (Q2) Data   March 31,   December 31,   September 30,   June 30,   March 31,
    (In thousands, except percentage data)     2025       2024       2024       2024       2024  
                         
    Final funded loans guaranteed portion sold, SBA   $ 15,716     $ 10,785     $ 10,880     $ 7,515     $ 15,144  
                         
    Gross gain on sales of loans, SBA   $ 1,508     $ 1,141     $ 1,029     $ 811     $ 1,443  
    Weighted average gross gain on sales of loans, SBA     9.60 %     10.58 %     9.46 %     10.79 %     9.53 %
                         
    Net gain on sales of loans, SBA (2)   $ 1,078     $ 711     $ 647     $ 581     $ 951  
    Weighted average net gain on sales of loans, SBA     6.86 %     6.59 %     5.95 %     7.73 %     6.28 %
                         
                         
    (2) Inclusive of gains on servicing assets and net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment.
                         
                         
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):   Three Months Ended
    Summarized Consolidated Average Balance Sheets   March 31,   December 31,   September 30,   June 30,   March 31,
    (In thousands)     2025       2024       2024       2024       2024  
    Interest-earning assets                    
    Average balances:                    
    Interest-bearing deposits with banks   $ 11,851     $ 21,102     $ 16,841     $ 26,100     $ 24,587  
    Loans     1,946,338       2,010,082       1,988,997       1,943,716       1,914,609  
    Investment securities – taxable     102,744       101,960       99,834       101,350       102,699  
    Investment securities – nontaxable     161,579       160,929       158,917       157,991       157,960  
    FRB and FHLB stock     24,986       24,986       24,986       24,986       24,986  
    Total interest-earning assets   $ 2,247,498     $ 2,319,059     $ 2,289,575     $ 2,254,143     $ 2,224,841  
                         
    Interest income (tax equivalent basis):                    
    Interest-bearing deposits with banks   $ 168     $ 210     $ 209     $ 324     $ 261  
    Loans     27,998       29,617       29,450       28,155       27,133  
    Investment securities – taxable     921       914       910       918       923  
    Investment securities – nontaxable     1,719       1,715       1,685       1,665       1,662  
    FRB and FHLB stock     511       493       471       519       499  
    Total interest income (tax equivalent basis)   $ 31,317     $ 32,949     $ 32,725     $ 31,581     $ 30,478  
                         
    Weighted average yield (tax equivalent basis, annualized):                    
    Interest-bearing deposits with banks     5.67 %     3.98 %     4.96 %     4.97 %     4.25 %
    Loans     5.75 %     5.89 %     5.92 %     5.79 %     5.67 %
    Investment securities – taxable     3.59 %     3.59 %     3.65 %     3.62 %     3.59 %
    Investment securities – nontaxable     4.26 %     4.26 %     4.24 %     4.22 %     4.21 %
    FRB and FHLB stock     8.18 %     7.89 %     7.54 %     8.31 %     7.99 %
    Total interest-earning assets     5.57 %     5.68 %     5.72 %     5.60 %     5.48 %
                         
    Interest-bearing liabilities                    
    Interest-bearing deposits   $ 1,653,058     $ 1,671,156     $ 1,563,258     $ 1,572,871     $ 1,549,012  
    Federal Home Loan Bank borrowings     266,975       315,583       378,956       351,227       333,275  
    Subordinated debt and other borrowings     48,656       48,616       48,576       48,537       48,497  
    Total interest-bearing liabilities   $ 1,968,689     $ 2,035,355     $ 1,990,790     $ 1,972,635     $ 1,930,784  
                         
    Interest expense:                    
    Interest-bearing deposits   $ 12,069     $ 13,606     $ 12,825     $ 12,740     $ 12,546  
    Federal Home Loan Bank borrowings     2,001       2,617       3,521       3,021       2,298  
    Subordinated debt and other borrowings     762       764       800       799       833  
    Total interest expense   $ 14,832     $ 16,987     $ 17,146     $ 16,560     $ 15,677  
                         
    Weighted average cost (annualized):                    
    Interest-bearing deposits     2.92 %     3.26 %     3.28 %     3.24 %     3.24 %
    Federal Home Loan Bank borrowings     3.00 %     3.32 %     3.72 %     3.44 %     2.76 %
    Subordinated debt and other borrowings     6.26 %     6.29 %     6.59 %     6.58 %     6.87 %
    Total interest-bearing liabilities     3.01 %     3.34 %     3.45 %     3.36 %     3.25 %
                         
    Net interest income (taxable equivalent basis)   $ 16,485     $ 15,962     $ 15,579     $ 15,021     $ 14,801  
    Less: taxable equivalent adjustment     (494 )     (500 )     (502 )     (487 )     (463 )
    Net interest income   $ 15,991     $ 15,462     $ 15,077     $ 14,534     $ 14,338  
                         
    Interest rate spread (tax equivalent basis, annualized)     2.56 %     2.34 %     2.27 %     2.24 %     2.23 %
                         
    Net interest margin (tax equivalent basis, annualized)     2.93 %     2.75 %     2.72 %     2.67 %     2.66 %

    The MIL Network –

  • MIL-OSI: Calian Announces Appointment to Board of Directors

    Source: GlobeNewswire (MIL-OSI)

    OTTAWA, Ontario, April 24, 2025 (GLOBE NEWSWIRE) — Calian® Group Ltd. (TSX:CGY), a trusted provider of mission-critical solutions for defence, space and healthcare, today announced the appointment of Eric Demirian to its Board of Directors.

    Since 2003, Demirian has served as President of Parklea Capital Inc., a boutique financial and strategy advisory firm, and of Demicap Inc., a private investment firm. He was previously Executive Vice President at Group Telecom Inc. (2000–2003) and a partner at PricewaterhouseCoopers LLP (1983–2000), where he led the Information and Communications Practice. Demirian holds a Bachelor of Business Management from Toronto Metropolitan University and is a CPA, CGA and CA.

    Demirian has been Chair of the Board of Descartes Systems Group Inc. (TSX: DSG, NASDAQ: DSGX) since 2014, having joined the board in 2011 and previously chaired its Audit Committee. He currently serves on Descartes’ Audit and Corporate Governance Committees. He is also a director of IMAX Corporation (NYSE: IMAX) and has held board and audit committee roles at a number of public and private companies, including Enghouse Systems Ltd. (TSX: ENGH), from 2004 through 2025.

    “We are pleased to welcome Eric to our Board. His extensive financial expertise and experience on public company boards bring a depth of knowledge that will be invaluable to Calian. Eric’s proven ability to navigate complex financial landscapes, lead through mergers and acquisitions, and oversee organizations across diverse industries positions him as a strategic asset. His track record of guiding companies through growth and transformation speaks for itself. We are confident that he will be a highly effective and influential board member, with a keen understanding of both operational detail and long-term strategic vision,” said George Weber, Chair of the Board, Calian.

    “I am honored to join Calian’s Board as it continues on its exciting growth journey. I look forward to contributing my experience in scaling businesses and executing growth strategies to support the team and help drive long-term value for shareholders,” stated Demirian.

    Demirian’s appointment is effective immediately. With the recent additions of Josh Blair and Lisa Greatrix in February, the appointment of Demirian brings the total number of board members to 10, of which nine are independent and half are women.

    About Calian

    We keep the world moving forward. Calian® helps people communicate, innovate, learn and lead safe and healthy lives. Every day, our employees live our values of customer commitment, integrity, innovation, respect and teamwork to engineer cannot-fail solutions that solve complex problems. That’s Confidence. Engineered. A stable and growing 40-year company, we are headquartered in Ottawa with offices and projects spanning North American, European and international markets.

    Visit calian.com to learn about innovative healthcare, communications, learning and cybersecurity solutions.

    Product or service names mentioned herein may be the trademarks of their respective owners.

    Media inquiries:
    media@calian.com
    613-599-8600

    Investor Relations inquiries:
    ir@calian.com

    —————————————————————————–

    DISCLAIMER

    Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Such statements are generally accompanied by words such as “intend”, “anticipate”, “believe”, “estimate”, “expect” or similar statements. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price competition; scarce number of qualified professionals; the impact of rapid technological and market change; loss of business or credit risk with major customers; technical risks on fixed price projects; general industry and market conditions and growth rates; international growth and global economic conditions, and including currency exchange rate fluctuations; and the impact of consolidations in the business services industry. For additional information with respect to certain of these and other factors, please see the Company’s most recent annual report and other reports filed by Calian with the Ontario Securities Commission. Calian disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.

    Calian · Head Office · 770 Palladium Drive · Ottawa · Ontario · Canada · K2V 1C8
    Tel: 613.599.8600 · Fax: 613-592-3664 · General info email: info@calian.com

    The MIL Network –

  • MIL-OSI Global: How Pope Francis became a climate change influencer

    Source: The Conversation – UK – By Will de Freitas, Environment + Energy Editor, UK edition

    “The Earth, our home, is beginning to look more and more like an immense pile of filth.” These aren’t the words of a radical sociologist or rogue climate scientist. They aren’t the words of a Conversation editor either. Nor are these:

    “A selfish and boundless thirst for power and material prosperity leads both to the misuse of available natural resources and to the exclusion of the weak and disadvantaged.”

    These are in fact quotes from Pope Francis, who died last weekend.

    This roundup of The Conversation’s climate coverage comes from our award-winning weekly climate action newsletter. Every Wednesday, The Conversation’s environment editor writes Imagine, a short email that goes a little deeper into just one climate issue. Join the 40,000+ readers who’ve subscribed.

    I never thought this job would have me writing newsletters in praise of a papal climate influencer, but here we are. You can read various obits and interesting takes on Pope Francis and what’s next for the Catholic church elsewhere on The Conversation. But here I want to focus on his thoughts on climate change and the impact he had.

    Our common home

    In 2015, two years after becoming pope, Francis published Laudato Si (Praise Be to You), a 183-page papal letter sent to all Catholic bishops on “care for our common home”. It was a significant intervention made just a few months before the climate summit that led to the Paris agreement.

    Writing at the time, sustainability professor Steffen Böhm said that what made it so radical “isn’t just [Pope Francis’s] call to urgently tackle climate change. It’s the fact he openly and unashamedly goes against the grain of dominant social, economic and environment policies.”

    For Böhm, who was then at the University of Essex but now works at Exeter, this radical message “puts him on a confrontation course with global powerbrokers and leaders of national governments, international institutions and multinational corporations”.

    He quotes a section where the Pope says “those who possess more resources [and] power seem seem mostly to be concerned with masking the problems or concealing their symptoms, simply making efforts to reduce some of the negative impacts of climate change”. The Pope warns that “such effects will continue to worsen if we continue with current models of production and consumption”.

    Böhm points out the Pope “might be the only person with both the clout and the desire to meaningfully deliver a message like this”.



    Read more:
    Pope’s climate letter is a radical attack on the logic of the market

    Bernard Laurent of EM Business School in Lyon, says that in France the Pope’s message “managed to bring together both conservative currents – such as the Courant pour une Écologie Humaine (Movement for a Human Ecology), created in 2013 – and more open-minded Catholic intellectuals such as Gaël Giraud, a Jesuit and author of Produire Plus, Polluer Moins : l’Impossible Découplage? (Produce more, Pollute Less: the Impossible Decoupling?)”



    Read more:
    Pope Francis and Laudato Si’: an ecological turning point for the Catholic Church

    Clearly, this was a unique figure able to reach people who might not listen to a Greta Thunberg or an Al Gore.

    But, while it’s great the Paris agreement was signed, it was still filled with the exact sort of market logic and buck-passing – carbon credits, “emit now, clean up later”, and so on – the Pope had criticised a few months previously. And climate change itself only got worse. In the years following, Pope Francis spoke at the UN and published a series of other “exhortations” related to climate change.

    Did any of this make any difference?

    Celia Deane-Drummond is a theology professor at the University of Oxford and director of a research institute named after the 2015 papal letter. In a piece published the same day Pope Francis’s death was announced, she looked at his influence on the global climate movement.

    Deane-Drummond notes Pope Francis’s emphasis on listening to Indigenous people for instance in his lesser-known exhortation Querida Amazonia, which means “beloved Amazonia”, from February 2020.

    “This exhortation resulted from his conversations with Amazonian communities and helped put Indigenous perspectives on the map. Those perspectives helped shape Catholic social teaching in the [papal letter] Fratelli Tutti, which means ‘all brothers and sisters’, published on October 3 2020.”

    A key influencer

    Perhaps the Pope’s biggest influence was on activists rather than policymakers. Deane-Drummond says he was often mentioned by participants in a research project on religion, theology and climate change she was part of.

    “When we asked more than 300 [religious] activists representing six different activist groups who most influenced them to get involved in climate action, 61% named Pope Francis as a key influencer.”

    The 2015 papal letter also gave rise to the Laudato Si movement which Deane-Drummond points out “coordinates climate activism across the globe. It has 900 Catholic organisations as well as 10,000 of what are known as Laudato Si ‘animators’, who are all ambassadors and leaders in their respective communities.”



    Read more:
    Three ways Pope Francis influenced the global climate movement

    There are specific religious arguments he was able to make to appeal to these groups, note Joel Hodge and Antonia Pizzy of Australian Catholic University.

    They write that: “Francis argued combating climate change relied on the ‘ecological conversion’ of the human heart, so that people may recognise the God-given nature of our planet and the fundamental call to care for it. Without this conversion, pragmatic and political measures wouldn’t be able to counter the forces of consumerism, exploitation and selfishness.”



    Read more:
    Pope Francis has died, aged 88. These were his greatest reforms – and controversies

    It’s not an argument that will particularly work on me. But then addressing the climate crisis will require all sorts of people to be persuaded of the need for serious action, including policy wonks, tech bros, radical activists, worried parents and, yes, people motivated by their religion.

    The last pope didn’t have to say anything about the climate crisis. It’s not necessarily in the job description. But it’s a good thing that Pope Francis did speak about it and, as Deane-Drummond says: “We can only hope [the next pope] will build on his legacy and influence political change for the good, from the grassroots frontline right up to the highest global ambitions.”

    – ref. How Pope Francis became a climate change influencer – https://theconversation.com/how-pope-francis-became-a-climate-change-influencer-255086

    MIL OSI – Global Reports –

  • MIL-OSI USA News: Unleashing America’s Offshore Critical Minerals and Resources

    Source: The White House

    class=”has-text-align-left”>By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:

    Section 1.  Background.  The United States has a core national security and economic interest in maintaining leadership in deep sea science and technology and seabed mineral resources.  The United States faces unprecedented economic and national security challenges in securing reliable supplies of critical minerals independent of foreign adversary control.  Vast offshore seabed areas hold critical minerals and energy resources.  These resources are key to strengthening our economy, securing our energy future, and reducing dependence on foreign suppliers for critical minerals.  The United States also controls seabed mineral resources in one of the largest ocean areas of the world.  Our Nation can, through the exercise of existing authorities and by establishing international partnerships, access potentially vast resources in seabed polymetallic nodules; other subsea geologic structures; and coastal deposits containing strategic minerals such as nickel, cobalt, copper, manganese, titanium, and rare earth elements, which are vital to our national security and economic prosperity.
    Our Nation must take immediate action to accelerate the responsible development of seabed mineral resources, quantify the Nation’s endowment of seabed minerals, reinvigorate American leadership in associated extraction and processing technologies, and ensure secure supply chains for our defense, infrastructure, and energy sectors.

    Sec. 2.  Policy.  It is the policy of the United States to advance United States leadership in seabed mineral development by:
    (a)  rapidly developing domestic capabilities for the exploration, characterization, collection, and processing of seabed mineral resources through streamlined permitting without compromising environmental and transparency standards;
    (b)  supporting investment in deep sea science, mapping, and technology;
    (c)  enhancing coordination among executive departments and agencies (agencies) with respect to seabed mineral development activities described in this order;
    (d)  establishing the United States as a global leader in responsible seabed mineral exploration, development technologies, and practices, and as a partner for countries developing seabed mineral resources in areas within their national jurisdictions, including their Exclusive Economic Zones (EEZ);
    (e)  creating a robust domestic supply chain for critical minerals derived from seabed resources to support economic growth, reindustrialization, and military preparedness, including through new processing capabilities; and
    (f)  strengthening partnerships with allies and industry to counter China’s growing influence over seabed mineral resources and to ensure United States companies are well-positioned to support allies and partners interested in developing seabed minerals responsibly in areas within their national jurisdictions, including their EEZs.

    Sec. 3.  Strategic Seabed Critical Mineral Access.  Within 60 days of the date of this order:
    (a)  The Secretary of Commerce shall:
    (i)    acting through the Administrator of the National Oceanic and Atmospheric Administration, and in consultation with the Secretary of State and the Secretary of the Interior, acting through the Director of the Bureau of Ocean Energy Management, expedite the process for reviewing and issuing seabed mineral exploration licenses and commercial recovery permits in areas beyond national jurisdiction under the Deep Seabed Hard Mineral Resources Act (30 U.S.C. 1401 et seq.), consistent with applicable law.  The expedited process, consistent with applicable law, should ensure efficiency, predictability, and competitiveness for American companies;
    (ii)   in coordination with the Secretary of the Interior and the Secretary of Energy, and in consultation with the heads of other relevant agencies, provide a report to the Assistant to the President for Economic Policy, the Chair of the National Energy Dominance Council, and the Vice Chair of the National Energy Dominance Council that identifies:
    (A)  private sector interest and opportunities for seabed mineral resource exploration, mining, and environmental monitoring in the United States Outer Continental Shelf; in areas beyond national jurisdiction; and in areas within the national jurisdictions of certain other nations that express interest in partnering with United States companies on seabed mineral development; and
    (B)  private sector interest and opportunities for polymetallic nodule and other seabed mineral resource processing capacity in the United States or on United States-flagged vessels; and
    (iii)  in consultation with the Secretary of State, the Secretary of the Interior, and the heads of other relevant agencies, and in cooperation with commercial and other non-governmental organizations, develop a plan to map priority areas of the seabed, such as those with abundant or accessible undersea resources, in order to accelerate data collection and characterization, prioritizing areas within the United States Outer Continental Shelf.
    (b)  The Secretary of the Interior shall:
    (i)   establish an expedited process for reviewing and approving permits for prospecting and granting leases for exploration, development, and production of seabed mineral resources within the United States Outer Continental Shelf under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), consistent with applicable law.  The expedited process, consistent with applicable law, should ensure efficiency, predictability, and competitiveness for American companies; and
    (ii)  identify which critical minerals may be derived from seabed resources and coordinate with the Secretary of Defense and the Secretary of Energy to indicate which critical minerals are essential for applications such as defense infrastructure, manufacturing, and energy.
    (c)  The Secretary of Commerce, in coordination with the Secretary of State, the Secretary of the Interior, and the Secretary of Energy, shall:
    (i)   engage with key partners and allies to offer support for seabed mineral resource exploration, extraction, processing, and environmental monitoring in areas within the national jurisdictions of those partners and allies, including by seeking scientific collaboration and commercial development opportunities for United States companies, and by developing a prioritized list of countries for engagement; and
    (ii)  provide a joint report to the Assistant to the President for Economic Policy, the Chair of the National Energy Dominance Council, and the Vice Chair of the National Energy Dominance Council on the feasibility of an international benefit-sharing mechanism for seabed mineral resource extraction and development that occurs in areas beyond the national jurisdiction of any country.
    (d)  The Secretary of Defense and the Secretary of Energy shall:
    (i)    provide a report to the Assistant to the President for Economic Policy, the Chair of the National Energy Dominance Council, and the Vice Chair of the National Energy Dominance Council that addresses the feasibility and any potential benefits or drawbacks of using the National Defense Stockpile for physical or virtual storage of materials derived from seabed polymetallic nodules and of entering offtake agreements for these materials;
    (ii)   in consultation with the Secretary of Commerce, review and revise existing regulations, consistent with applicable law, to support domestic processing capabilities for seabed mineral resources, and explore the use of grant and loan authorities, the Defense Production Act (50 U.S.C. 4501 et seq.), and other procurement and financing authorities for this purpose; and
    (iii)  ensure the Strategic and Critical Materials Board of Directors considers seabed mineral resource developments when recommending a strategy for ensuring a secure supply of materials designated as critical to national security to the Secretary of Defense under the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98 et seq.).
    (e)  The Chief Executive Officer of the United States International Development Finance Corporation, the President of the Export-Import Bank of the United States, the Director of the Trade and Development Agency, and the heads of other relevant agencies shall provide a joint report to the Assistant to the President for Economic Policy, the Chair of the National Energy Dominance Council, and the Vice Chair of the National Energy Dominance Council that identifies tools to support domestic and international seabed mineral resource exploration, extraction, processing, and environmental monitoring.

    Sec. 4.  Definitions.  As used in this order:
    (a)  The term “mineral” means a critical mineral as designated pursuant to 30 U.S.C. 1606(a)(3), as well as uranium, copper, potash, gold, and any other element or compound as determined by the Chair of the National Energy Dominance Council.
    (b)  The term “seabed mineral resources” means polymetallic nodules, cobalt-rich ferromanganese crusts, polymetallic sulfides, heavy mineral sands, phosphorites, and other mineral-bearing materials.
    (c)  The term “processing” includes the concentration, separation, refinement, alloying, and conversion of minerals into usable forms.

    Sec. 5.  General Provisions.  (a)  Nothing in this order shall be construed to impair or otherwise affect:
    (i)   the authority granted by law to an executive department or agency, or the head thereof; or
    (ii)  the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
    (b)  This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
    (c)  This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

    DONALD J. TRUMP

    THE WHITE HOUSE,
        April 24, 2025.

    MIL OSI USA News –

  • MIL-OSI USA News: Fact Sheet: President Donald J. Trump Unleashes America’s Offshore Critical Minerals and Resources

    Source: The White House

    REVITALIZING AMERICAN DOMINANCE IN DEEP SEABED MINERALS: Today, President Donald J. Trump signed a historic Executive Order to restore American dominance in offshore critical minerals and resources.

    • The Order rapidly develops domestic capabilities for exploration, characterization, collection, and processing of critical deep seabed minerals.
      • It establishes the U.S. as a global leader in seabed mineral exploration and development both within and beyond national jurisdiction.
      • It creates a robust domestic supply for critical minerals derived from seabed resources.
      • It strengthens partnerships with allies and industry to counter China’s influence in the seabed mineral resource space.
    • The Order instructs the Secretary of Commerce to expedite the process for reviewing and issuing exploration and commercial recovery permits under the Deep Seabed Hard Mineral Resources Act.
    • The Order directs the Secretary of Commerce, along with the Secretary of Interior and Secretary of Energy, to provide a report identifying:
      • Private sector interest and opportunities for seabed mineral exploration, mining, and monitoring in the U.S. Outer Continental Shelf.
      • Private sector interest and opportunities for nodule and other seabed mineral resource processing capacity in the U.S. or on U.S. flagged vessels.
    • The Order directs the Secretaries of Commerce, State, and Interior to develop a plan to map priority areas of the seabed to accelerate data collection.
    • The Order directs the Secretary of Interior to establish a process for reviewing and approving permits and granting licenses within the U.S. Outer Continental Shelf under the Outer Continental Shelf Lands Act and identify which critical minerals may be derived from seabed resources for defense, infrastructure, and energy purposes in coordination with the Secretaries of Energy and Defense.
    •  The Order directs the Secretaries of Commerce, State, Interior, and Energy to engage with partners and allies for seabed mineral exploration and provide a joint report for the feasibility of an international seabed benefit-sharing mechanism.
    • The Order directs the Secretaries of Defense and Energy to provide a report addressing feasibility of using National Defense Stockpile for nodule-derived minerals; review and revise domestic processing capability for seabed mineral resources and DPA authorities; and have the Strategic and Critical Minerals Board develop a strategy.
    • The Order directs the CEO of U.S. International Development Finance Corporation, President of Export-Import Bank of the U.S., and Director of U.S. Trade and Development Agency to provide a report identifying tools to support domestic and international seabed mineral resource exploration, extraction, processing, and environmental monitoring.

    POSITIONING AMERICA AS A GLOBAL LEADER IN CRITICAL MINERALS: President Trump’s visionary leadership is positioning the United States at the forefront of critical mineral production and innovation.  

    • President Trump recently signed an Executive Order to increase American critical mineral production.
    • President Trump also signed an Executive Order to open a Section 232 investigation to evaluate the impact of imports of these materials on America’s security and resilience.
    • President Trump advanced the Ambler Access Project, a 211-mile industrial road through the Brooks Range foothills that enables commercial mining for copper, zinc and other materials in a remote Arctic area in Northwest Alaska.
    • With this Executive Order, President Trump is accelerating seabed mineral exploration and development to unlock vast offshore resources for America’s economic and strategic advantage.

    MIL OSI USA News –

  • MIL-OSI USA: Press Release: Agencies Withdraw Joint Statements on Crypto-Assets

    Source: US Federal Deposit Insurance Corporation FDIC

    CategoriesBusiness, Commerce, MIL-OSI, United States Federal Government, United States Government, United States of America, US Commerce, US Federal Deposit Insurance Corporation FDIC, US Federal Government, US Insurance Sector, USA

    MIL OSI USA News –

  • MIL-OSI Security: Bank General Counsel Sentenced to 4 Years in Prison for $7.4 Million Embezzlement Scheme

    Source: Office of United States Attorneys

    Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that JAMES BLOSE, 56, of Fairfield, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 48 months of imprisonment, followed by three years of supervised release, for offenses stemming from a decade-long embezzlement scheme at banks where he served as General Counsel and held other high-ranking positions.

    According to court documents and statements made in court, from approximately 2013 to January 2022, Blose was an attorney and held high-ranking positions, including General Counsel, at Hudson Valley Bank and Sterling National Bank.  From approximately January 2022, when Webster Bank acquired Sterling National Bank, until February 2023, Blose served as Executive Vice President and General Counsel and Corporate Secretary at Webster Bank.

    From approximately 2013 until Webster Bank discovered his scheme and his employment was terminated in February 2023, Blose defrauded his employers (“The Bank”) in various ways.  In certain commercial loan transactions where The Bank was the lender, Blose fraudulently retained for himself portions of closing costs, including legal fees.  In certain real estate transactions in which The Bank was the seller, Blose retained portions of the sale proceeds for himself.  For some of the real estate transactions, Blose created false documents in order to hide his theft from The Bank.  Blose also stole from The Bank in other ways.

    As part of the scheme, Blose used his attorney trust accounts to make personal expenditures, and to transfer funds to accounts in the names of business entities he created and controlled, and then used those funds for his personal benefit.  Through this scheme, Blose stole approximately $7.4 million from his employers, and used the stolen funds to purchase a vacation property on Kiawah Island in South Carolina, for construction of his Connecticut home, and for luxury vehicles, jewelry, private jets charters, multiple country club memberships, and other expenses.

    Judge Chatigny will determine restitution after additional court proceedings.

    On December 20, 2024, Blose pleaded guilty to one count of bank fraud and one count of engaging in illegal monetary transactions.

    Blose, who is released on a $250,000 bond, is required to report to prison on June 23

    This investigation was conducted by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection’s Office of the Inspector General.  Financial crimes investigators from Webster Bank assisted the investigation.

    This case was prosecuted by Assistant U.S. Attorney Michael S. McGarry.

    MIL Security OSI –

  • MIL-OSI USA: Senator Murray Hears from Mayors and Business Leaders About How Trump’s Trade War is Hurting Border Communities in Northwest Washington

    US Senate News:

    Source: United States Senator for Washington State Patty Murray

    Canada is Washington’s largest overall trading partner, accounting for nearly $20 billion in imports and $10 billion in exports

    ***AUDIO of full roundtable discussion HERE***

    ***PHOTOS and B-ROLL HERE***

    Blaine, WA — Today, U.S. Senator Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee, held a roundtable discussion on how Trump’s chaotic trade war and senseless tariffs are affecting Washington state’s border communities and local businesses. In the City of Blaine, which is located along the United States-Canada border, retail and service revenue has fallen 40 percent, and the City of Bellingham and other communities near the border are reporting a roughly 20 percent decrease in revenue due to Trump’s trade war and increasing anti-American sentiment from Canadian neighbors.

    Canada is Washington’s largest overall trading partner, accounting for nearly $20 billion in imports and $10 billion in exports. Senator Murray was joined for the discussion by Blaine Mayor Mary Lou Steward; Surrey (Canada) Mayor Brenda Locke; Blaine City Manager Mike Harmon; Dr. Laurie Trautman, Director of the Border Policy Research Institute; and Ali Hayton, Owner of Point Roberts Marketplace.

    On April 2nd, President Trump announced sweeping new tariffs on nearly every country, including a 10 percent baseline tariff on all imported goods, and country-specific so-called reciprocal tariffs. Just hours after the reciprocal tariff rates took effect last Wednesday, Trump abruptly changed his mind and put a 90-day pause on reciprocal tariffs. But Trump is still taxing goods from every country, across the board, at 10 percent at least. Even with his “pause,” Trump’s new tariff rates are still the highest in decades, and are estimated to cost American families more than $4,000 per year—the largest tax increase since 1968.

    “As everyone here knows, the folks just across the border in Canada are not just our neighbors—they are our friends, and some families even span the border. It’s not just personal connections that are strong here, but economic connections. Trade with Canada, and visitors and customers are a crucial part of the local economy,” said Senator Murray. “Yet, every week Trump seems to find a new way to drive a wedge between us and our Canadian allies, and a new way to drive business away from our communities. He’s whipping up a fact-free frenzy about drugs at the Canadian border. The fact is: less than 1 percent of fentanyl intercepted at the U.S. border is from Canada. He has created complete chaos and fear for every day travelers crossing our border. People coming here for work, or just for visits, have been detained. His border theatrics are scaring away tourists and scaring off business. And the pointless, painful trade war is in reality an enormous tax paid by our families.”

    “Trump is pushing away some of our most important trade partners, raising prices for families at the grocery store, and pushing small businesses to the brink—some may even shutter. All of this is incredibly harmful to our communities—it’s not the way we should treat our neighbors, and it’s catastrophic for business too,” Senator Murray continued. “I’m glad to be here to shine a spotlight the real damage Trump is doing with his tariffs, his chaos, and his attempts to bully one of our closest allies for no reason—and to listen to your stories and take them back with me to the other Washington.”

    Washington state has one of the most trade-dependent economies of any state in the country, with 40 percent of jobs tied to international commerce. Washington state is the top U.S. producer of apples, blueberries, hops, pears, spearmint oil, and sweet cherries—all of which risk losing vital export markets due to retaliatory tariffs from key trading partners including Canada. Additionally, more than 12,000 small and medium-sized companies in Washington state export goods and will struggle to absorb the impact of retaliatory tariffs. Trump’s tariffs during his first term were extremely costly for Washington state—for example, India imposed a 20 percent retaliatory tariff on U.S. apples, causing Washington apple shipments to India to fall by 99 percent and growers to lose hundreds of millions of dollars in exports.

    “We really, really depend upon Canadians coming to shop in Blaine. And part of this just is our history… We do have small businesses in town that we like to support, and over the years, the Canadians have come down and supported these immensely, in particular the gas, dairy, and shopping—Amazon parcels that are mail orders. These are all suffering. People are being laid off, and this is hurting us because the Canadian southbound traffic has dropped off to 50 percent of a decrease in the amount of traffic, so this does affect our businesses,” said Mary Lou Steward, Mayor of Blaine. “Sales tax receipts eclipse property tax receipts nearly by two to one, so sales tax is really, really important. And it takes all of Blaine’s property tax plus sales tax receipts to fund our police department… Blaine and Bellingham receive nearly the same number of Canadian visitors, however, those going to Bellingham shop and spend four to one times as much money in Bellingham as they do coming to Blaine to buy gas and eat locally.”

    “Much like during the pandemic, our border communities are being impacted disproportionately, only this time by the antagonistic approach of the Trump Administration towards Canada. These impacts are far reaching and go well beyond the immediate economic damage our communities face, affecting our social connections, and our ability to respond to natural disasters that know no borders,” said Dr. Laurie Trautman, Director of the Border Policy Research Institute. “Cross-border connections with our Canadian neighbors provide immeasurable benefits to our community- supporting our economy and our security. Travel by Canadians has dropped by over 50%, largely due to the antagonism of the Trump Administration, leaving our businesses more vulnerable and our community less secure.”

    “Senator Murray has long stood with Point Roberts, championing our unique needs during the COVID-19 pandemic, when border closures devastated our local economy and isolated our community. Her tireless efforts helped bring much-needed attention to our situation during that crisis, and her commitment remains strong today as we face new challenges brought on by international tariff disputes. Businesses in Point Roberts are struggling to navigate the uncertainty created by these trade tensions. When I reached out to Senator Murray’s office for help, their response was immediate. While it’s unclear exactly what relief might come for Point Roberts and other border towns, today’s meeting — bringing together community leaders from both sides of the border — is a hopeful step forward in rebuilding the longstanding relationships we’ve shared with our Canadian neighbors,” said Ali Hayton, Owner of Point Roberts Marketplace. “We may not yet know what the future holds, but having Senator Murray in our corner makes all the difference. Her leadership, compassion, and steadfast commitment to the people of Point Roberts are deeply appreciated.”

    Senator Murray has been a vocal opponent of Trump’s chaotic trade war and has been lifting up the voices of people in Washington state harmed by this administration’s approach to trade. Senator Murray continues to call on Republicans to end Trump’s trade war—which Congress has the power to do—and take back Congress’ Constitutionally-granted power to impose tariffs. Earlier this month, Senator Murray brought together leaders across Washington state who highlighted how Trump’s ongoing trade war is already a devastating hit to Washington state’s economy, businesses, and our agriculture sector. Senator Murray also took to the Senate floor to lay out how Trump’s chaotic trade war is seriously threatening our economy, American businesses, families’ retirement savings, and so much else. Earlier this week, Senator Murray joined her colleagues in pressing U.S. Trade Representative Ambassador Jamieson Greer on how the Trump administration’s tariffs are affecting farmers across the country. Last week, Senator Murray also held a roundtable discussion in Tacoma with local businesses and ports, toured local businesses in downtown Vancouver, and held a roundtable discussion in Vancouver with local businesses and ports, to highlight how Trump’s chaotic trade war and senseless tariffs are harming the overall economy in Washington state. Earlier this week, Senator Murray met with small business owners in Seattle’s University District to hear how Trump’s tariffs and trade war are harming them.

    MIL OSI USA News –

  • MIL-OSI: TransAlta Corporation Announces Results of the 2025 Annual and Special Meeting of Shareholders and Election of all Directors

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, April 24, 2025 (GLOBE NEWSWIRE) — TransAlta Corporation (TSX: TA) (NYSE: TAC) (“TransAlta” or the “Company”) held its Annual and Special Meeting of Shareholders (“the Meeting”) on April 24, 2025. The total number of common shares represented by shareholders at the Meeting and by proxy was 188,962,557, representing 63.43 per cent of the Company’s outstanding common shares.

    The following resolutions were considered by shareholders:

    Election of Directors

    The eleven director nominees proposed by management were elected.  The votes by ballot were received as follows:

    Nominee Votes For Per cent Against Per cent
    Brian Baker 185,156,967 99.63% 680,871 0.37%
    John P. Dielwart 184,711,189 99.39% 1,126,649 0.61%
    Alan J. Fohrer 183,827,004 98.92% 2,010,834 1.08%
    Laura W. Folse 183,557,637 98.77% 2,280,201 1.23%
    John H. Kousinioris 184,917,419 99.50% 920,419 0.50%
    Candace J. MacGibbon 185,275,486 99.70% 562,352 0.30%
    Thomas M. O’Flynn 169,353,529 91.13% 16,484,309 8.87%
    Bryan D. Pinney 184,445,303 99.25% 1,392,535 0.75%
    James Reid 185,232,712 99.67% 605,126 0.33%
    Manjit K. Sharma 185,215,308 99.67% 622,530 0.33%
    Sandra R. Sharman 183,128,129 98.54% 2,709,709 1.46%
             

    Appointment of Auditors 

    The appointment of Ernst & Young LLP to serve as the auditors for 2025 was approved.  The votes by ballot were received as follows:

    Votes For Per cent Abstained Per cent
    182,794,376 96.74% 6,167,467 3.26%
           

    Advisory Vote on Executive Compensation (also known as “say-on-pay”)

    The non-binding advisory vote on the Company’s approach to executive compensation or say-on-pay was approved.  The votes by ballot were received as follows:

    Votes For Per cent Against Per cent
    183,790,462 98.90% 2,047,376 1.10%
           

    Approval of the Company’s Amended and Restated Shareholder Rights Plan

    The resolution approving the continuation of the Company’s Amended and Restated Shareholder Rights Plan was approved. The votes by ballot were received as follows:

    Votes For Per cent Against Per cent
    181,082,371 97.44% 4,754,201 2.56%
           

    About TransAlta Corporation:

    TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with affordable, energy efficient and reliable power. Today, TransAlta is one of Canada’s largest producers of wind power and Alberta’s largest producer of thermal generation and hydro-electric power. For over 114 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. Our reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 70 per cent reduction in GHG emissions or 22.7 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA.

    For more information about TransAlta, visit our web site at transalta.com.

    For more information:

    Investor Inquiries: Media Inquiries:
    Phone: 1-800-387-3598 in Canada and US Phone: 1-855-255-9184
    Email: investor_relations@transalta.com Email: ta_media_relations@transalta.com

    The MIL Network –

  • MIL-OSI: Provident Financial Services, Inc. Announces First Quarter Earnings and Declares Quarterly Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    ISELIN, N.J., April 24, 2025 (GLOBE NEWSWIRE) — Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $64.0 million, or $0.49 per basic and diluted share for the three months ended March 31, 2025, compared to $48.5 million, or $0.37 per basic and diluted share, for the three months ended December 31, 2024 and $32.1 million, or $0.43 per basic and diluted share, for the three months ended March 31, 2024. Net income for the three months ended March 31, 2025 was negatively impacted by a $2.7 million write-down on a foreclosed property, partially offset by a $624,000 profit on fixed asset sales related to the consolidation of three branches. While there were no transaction costs related to our merger with Lakeland Bancorp, Inc. (“Lakeland”) for the 2025 period, these costs totaled $20.2 million for the three months ended December 31, 2024 and $2.2 million for the three months ended March 31, 2024, respectively.

    Anthony J. Labozzetta, President and Chief Executive Officer commented, “With the integration of Lakeland behind us, we are starting to see the benefits of the transaction come to fruition. We are very pleased with our first quarter financial results and encouraged by the promising start to the year. Despite ongoing uncertainty in the markets, our core businesses, credit quality and risk management remain strong. Our team is focused on building the business, delivering exceptional customer service and creating value for all stakeholders while remaining agile in this rapidly changing economic and regulatory environment.”

    Performance Highlights for the First Quarter of 2025

    • Adjusted for a one-time write-down on a foreclosed property in the current quarter, as well as transaction costs related to the merger with Lakeland in prior quarters, the Company’s annualized adjusted returns on average assets, average equity and average tangible equity(1) were 1.11%, 10.13% and 16.15% for the quarter ended March 31, 2025, compared to 1.05%, 9.53% and 15.39% for the quarter ended December 31, 2024. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 11 of the earnings release.
    • The Company’s annualized adjusted pre-tax, pre-provision returns on average assets, average equity and average tangible equity(2) were 1.61%, 14.63% and 21.18% for the quarter ended March 31, 2025, compared to 1.53%, 13.91% and 20.31% for the quarter ended December 31, 2024. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 11 of the earnings release.
    • The Company’s total commercial and industrial (“C&I”) loan portfolio increased $74.3 million, or 6.5% annualized, to $4.68 billion as of March 31, 2025, from $4.61 billion as of December 31, 2024. Additionally, the Company’s total commercial portfolio increased $150.0 million, or 3.8% annualized to $16.19 billion as of March 31, 2025, from $16.04 billion as of December 31, 2024.
    • The net interest margin increased six basis points to 3.34% for the quarter ended March 31, 2025, from 3.28% for the trailing quarter, while the core net interest margin, which excludes the impact of purchase accounting accretion and amortization, increased nine basis points from the trailing quarter to 2.94%. The average yield on total loans decreased four basis points to 5.95% for the quarter ended March 31, 2025, compared to the trailing quarter, while the average cost of deposits, including non-interest-bearing deposits, decreased 14 basis points to 2.11% for the quarter ended March 31, 2025.
    • The Company recorded a $325,000 provision for credit losses on loans for the quarter ended March 31, 2025, compared to a $7.8 million provision for the trailing quarter. The decrease in the provision for credit losses for the quarter was primarily attributable to the change in a qualitative factor indexed to the forecasted unemployment rate that resulted in a decrease in reserves required on pooled loans within our Current Expected Credit Loss (“CECL”) model. The allowance for credit losses as a percentage of loans decreased to 1.02% as of March 31, 2025, from 1.04% as of December 31, 2024.
    • Insurance Agency income increased $858,000 or 17.9%, versus the same period in 2024, while pre-tax Insurance Agency net income increased $544,000 or 23.3% versus the same period in 2024.
    • As of March 31, 2025, the Company’s loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.77 billion, with a weighted average interest rate of 6.31%.

    Declaration of Quarterly Dividend

    The Company’s Board of Directors declared a quarterly cash dividend of $0.24 per common share payable on May 30, 2025 to stockholders of record as of the close of business on May 16, 2025.

    Results of Operations

    Three months ended March 31, 2025 compared to the three months ended December 31, 2024

    For the three months ended March 31, 2025, net income was $64.0 million, or $0.49 per basic and diluted share, compared to net income of $48.5 million, or $0.37 per basic and diluted share, for the three months ended December 31, 2024.

    Net Interest Income and Net Interest Margin

    Net interest income was $181.7 million for the three months ended March 31, 2025 and the trailing quarter, despite there being two fewer calendar days in the first quarter of 2025, primarily due to favorable repricing of deposits.

    The Company’s net interest margin increased six basis points to 3.34% for the quarter ended March 31, 2025, from 3.28% for the trailing quarter. The weighted average yield on interest-earning assets for the quarter ended March 31, 2025 decreased three basis points to 5.63%, compared to the trailing quarter. The weighted average cost of interest-bearing liabilities for the quarter ended March 31, 2025 decreased 13 basis points from the trailing quarter to 2.90%. The average cost of interest-bearing deposits for the quarter ended March 31, 2025 decreased 17 basis points to 2.64%, compared to 2.81% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 2.11% for the quarter ended March 31, 2025, compared to 2.25% for the trailing quarter. The average cost of borrowed funds for the quarter ended March 31, 2025 was 3.76%, compared to 3.64% for the quarter ended December 31, 2024.

    Provision for Credit Losses on Loans

    For the quarter ended March 31, 2025, the Company recorded a $325,000 provision for credit losses on loans, compared with a provision for credit losses of $7.8 million for the quarter ended December 31, 2024.  The decrease in the provision for credit losses for the quarter was primarily attributable to the change in a qualitative factor indexed to the forecasted unemployment rate that resulted in a decrease in reserves required on pooled loans within our CECL model.  For the three months ended March 31, 2025, net charge-offs totaled $2.0 million, or an annualized four basis points of average loans, compared with net charge-offs of $5.5 million, or an annualized nine basis points of average loans, for the trailing quarter.

    Non-Interest Income and Expense

    For the three months ended March 31, 2025, non-interest income totaled $27.0 million, an increase of $2.9 million, compared to the trailing quarter. Insurance agency income increased $2.4 million to $5.7 million for the three months ended March 31, 2025, compared to the trailing quarter, mainly due to the receipt of contingent commissions and additional business in the current quarter. Additionally, other income increased $920,000 to $2.2 million for the three months ended March 31, 2025, compared to the trailing quarter, primarily due to an increase in profit on fixed asset sales, combined with an increase in net fees on loan-level interest rate swap transactions. Partially offsetting these increases to non-interest income, wealth management income decreased $327,000 to $7.3 million for the three months ended March 31, 2025, compared to the trailing quarter, mainly due to a decrease in the average market value of assets under management during the period, while BOLI income decreased $169,000 for the three months ended March 31, 2025, compared to the trailing quarter, primarily due to decreased equity valuations.

    Non-interest expense totaled $116.3 million for the three months ended March 31, 2025, a decrease of $18.1 million, compared to $134.3 million for the trailing quarter. Merger-related expenses, which were completed at the end of 2024, decreased $20.2 million for the three months ended March 31, 2025, compared to the trailing quarter. Other operating expenses decreased $929,000 to $16.4 million for the three months ended March 31, 2025, compared to $17.4 million for the trailing quarter, largely due to a prior quarter $1.4 million charge for contingent litigation reserves, combined with decreases in professional service and insurance expenses, partially offset by a $2.7 million write-down on a foreclosed property. Partially offsetting these decreases in non-interest expense, compensation and benefits expense increased $2.4 million to $62.4 million for the three months ended March 31, 2025, compared to $59.9 million for the trailing quarter. The increase in compensation and benefit expense was primarily due to increases in salary expense related to company-wide annual merit increases and severance expense, partially offset by a decrease in stock-based compensation. Additionally, net occupancy expense increased $1.4 million to $13.9 million for the three months ended March 31, 2025, compared to the trailing quarter, largely due to seasonal increases in snow removal, utilities and other maintenance costs.

    The Company’s annualized adjusted non-interest expense as a percentage of average assets(1) totaled 1.92% for the quarter ended March 31, 2025, compared to 1.90% for the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(1) was 54.43% for the three months ended March 31, 2025, compared to 55.43% for the trailing quarter.

    Income Tax Expense

    For the three months ended March 31, 2025, the Company’s income tax expense was $27.8 million with an effective tax rate of 30.3%, compared with income tax expense of $14.2 million with an effective tax rate of 22.6% for the trailing quarter. The increase in tax expense and the effective tax rate for the three months ended March 31, 2025, compared with the trailing quarter was largely due to an increase in taxable income and a discrete item related to stock-based compensation, combined with a prior quarter $4.2 million tax benefit related to the revaluation of certain deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024.

    Three months ended March 31, 2025 compared to the three months ended March 31, 2024

    For the three months ended March 31, 2025, net income was $64.0 million, or $0.49 per basic and diluted share, compared to net income of $32.1 million, or $0.43 per basic and diluted share, for the three months ended March 31, 2024.

    Net Interest Income and Net Interest Margin

    Net interest income increased $88.1 million to $181.7 million for the three months ended March 31, 2025, from $93.7 million for same period in 2024.  The increase in net interest income was favorably impacted by the net assets added in the May 16, 2024 acquisition of Lakeland and related accretion of purchase accounting adjustments.

    The Company’s net interest margin increased 47 basis points to 3.34% for the quarter ended March 31, 2025, from 2.87% for the same period last year. The weighted average yield on interest-earning assets for the quarter ended March 31, 2025 increased 57 basis points to 5.63%, compared to 5.06% for the quarter ended March 31, 2024. The weighted average cost of interest-bearing liabilities increased 10 basis points for the quarter ended March 31, 2025 to 2.90%, compared to 2.80% for the first quarter of 2024. The average cost of interest-bearing deposits for the quarter ended March 31, 2025 was 2.64%, compared to 2.60% for the same period last year. Average non-interest-bearing demand deposits increased $1.65 billion to $3.72 billion for the quarter ended March 31, 2025, compared to $2.07 billion for the quarter ended March 31, 2024. The average cost of total deposits, including non-interest-bearing deposits, was 2.11% for the quarter ended March 31, 2025, compared with 2.04% for the quarter ended March 31, 2024. The average cost of borrowed funds for the quarter ended March 31, 2025 was 3.76%, compared to 3.60% for the same period last year.

    Provision for Credit Losses on Loans

    For the quarter ended March 31, 2025, the Company recorded a $325,000 provision for credit losses on loans, compared with a $200,000 provision for credit losses on loans for the quarter ended March 31, 2024.  The increase in the provision for credit losses was due to an increase in specific reserves on impaired credits. For the three months ended March 31, 2025, net charge-offs totaled $2.0 million, or an annualized four basis points of average loans, compared with net charge-offs of $971,000, or an annualized four basis points of average loans, for the quarter ended March 31, 2024.

    Non-Interest Income and Expense

    Non-interest income totaled $27.0 million for the quarter ended March 31, 2025, an increase of $6.2 million, compared to the same period in 2024. Fee income increased $3.7 million to $9.7 million for the three months ended March 31, 2025, compared to the prior year quarter, primarily due to increases in deposit fee income, debit card related fee income and commercial loan prepayment fees, resulting from the Lakeland merger. Other income increased $1.4 million to $2.2 million for the three months ended March 31, 2025, compared to the quarter ended March 31, 2024, primarily due to an increase in profit on fixed asset sales, combined with an increase in net fees on loan-level interest rate swap transactions and an increase in gains on sales of mortgage loans. Insurance agency income increased $858,000 to $5.7 million for the three months ended March 31, 2025, compared to the quarter ended March 31, 2024, largely due to an increase in contingency income and business activity, while BOLI income increased $275,000 to $2.1 million for the three months ended March 31, 2025, compared to the prior year quarter, related to the addition of Lakeland’s BOLI, partially offset by a decrease in equity valuations.

    For the three months ended March 31, 2025, non-interest expense totaled $116.3 million, an increase of $44.4 million, compared to the three months ended March 31, 2024. Compensation and benefits expense increased $22.3 million to $62.4 million for three months ended March 31, 2025, compared to $40.0 million for the same period in 2024. The increase was primarily due to the addition of Lakeland, combined with an increase in salary expense associated with Company-wide annual merit increases. Amortization of intangibles increased $8.8 million to $9.5 million for the three months ended March 31, 2024, compared to $705,000 for 2024, largely due to core deposit intangible amortization related to the addition of Lakeland. Other operating expense increased $6.1 million to $16.4 million for the three months ended March 31, 2025, compared to $10.3 million for the three months ended March 31, 2024, largely due to the addition of Lakeland and a $2.7 million write-down on a foreclosed property in the current quarter. Net occupancy expense increased $5.4 million to $13.9 million for the three months ended March 31, 2024, compared to the same period in 2024, primarily due to increased depreciation and maintenance expenses because of the addition of Lakeland. Data processing expense increased $2.8 million to $9.6 million for three months ended March 31, 2025, compared to $6.8 million for the same period in 2024. The increase in data processing expense was primarily due to increases in software service, telecommunication and core service expenses, due to the addition of Lakeland. Additionally, FDIC insurance expense increased $1.1 million to $3.4 million for the three months ended March 31, 2025, compared to the same period in 2024, primarily due to increases in the assessment rate and average assets, as a result of the addition of Lakeland. Partially offsetting these increases in non-interest expense, merger-related expenses, which completed at the end of 2024 decreased $2.2 million for the three months ended March 31, 2025, compared to the same period in 2024.

    The Company’s annualized adjusted non-interest expense as a percentage of average assets(1) was 1.92% for the quarter ended March 31, 2025, compared to 1.99% for the same period in 2024. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(1) was 54.43% for the three months ended March 31, 2025 compared to 60.82% for the same respective period in 2024.

    Income Tax Expense

    For the three months ended March 31, 2025, the Company’s income tax expense was $27.8 million with an effective tax rate of 30.3%, compared with $10.9 million with an effective tax rate of 25.3% for the three months ended March 31, 2024. The increase in tax expense for the three months ended March 31, 2025, compared with the same period last year, was largely the result of an increase in taxable income and an increase in state tax rates as a result of the May 2024 Lakeland merger, as well as a discrete item related to stock-based compensation. The increase in state tax rates is a result of the Company no longer receiving benefit of a reduced New Jersey state rate available for the Company’s REIT and New Jersey investment company subsidiaries. The state of New Jersey allows certain bank subsidiaries with assets under $15 billion to benefit from the lower rate, however due to the Lakeland merger in May of 2024, the $15 billion asset threshold was crossed and the increased New Jersey rate was applicable.

    Asset Quality

    The Company’s total non-performing loans as of March 31, 2025 were $103.2 million, or 0.54% of total loans, compared $72.1 million, or 0.39% of total loans as of December 31, 2024 and $35.5 million, or 0.35% of total loans as of March 31, 2024. The $31.2 million increase in non-performing loans as of March 31, 2025, compared to the trailing quarter, was primarily attributable to two loans: a $20.3 million commercial real estate loan secured by a mixed use property with a current loan-to value of 53% and an $11.5 million construction loan secured by a nearly complete warehouse facility with a current loan-to-value of 62%. These loans have no prior charge-off history and carry no specific reserve allocations. As of March 31, 2025, impaired loans totaled $86.1 million with related specific reserves of $7.9 million, compared with impaired loans totaling $55.4 million with related specific reserves of $7.5 million as of December 31, 2024. As of March 31, 2024, impaired loans totaled $40.1 million with related specific reserves of $8.2 million.

    As of March 31, 2025, the Company’s allowance for credit losses related to the loan held for investment portfolio was 1.02% of total loans, compared to 1.04% and 0.98% as of December 31, 2024 and March 31, 2024, respectively. The allowance for credit losses decreased $1.7 million to $191.8 million as of March 31, 2025, from $193.4 million as of December 31, 2024. The decrease in the allowance for credit losses on loans at March 31, 2025 compared to December 31, 2024 was due to net charge-offs of $2.0 million, partially offset by a $325,000 provision for credit losses.

    The following table shows accruing past due loans and non-accrual loans on the dates indicated, as well as certain asset quality ratios.

        March 31, 2025   December 31, 2024   March 31, 2024  
        Number
    of
    Loans    		   Principal
    Balance
    of Loans    		   Number
    of
    Loans    		   Principal
    Balance
    of Loans    		   Number
    of
    Loans    		   Principal
    Balance
    of Loans    		  
        (Dollars in thousands)
    Accruing past due loans:                          
    30 to 59 days past due:                          
    Commercial mortgage loans   8   $ 13,696     7   $ 8,538     3   $ 5,052    
    Multi-family mortgage loans   1     7,433     —     —     4     12,069    
    Construction loans   —     —     —     —     —     —    
    Residential mortgage loans   27     6,905     22     6,388     11     3,568    
    Total mortgage loans   36     28,034     29     14,926     18     20,689    
    Commercial loans   37     13,472     23     4,248     11     4,493    
    Consumer loans   22     1,604     47     3,152     22     803    
    Total 30 to 59 days past due   95   $ 43,110     99   $ 22,326     51   $ 25,985    
                               
    60 to 89 days past due:                          
    Commercial mortgage loans   2   $ 196     4   $ 3,954     3   $ 1,148    
    Multi-family mortgage loans   —     —     —     —     —     —    
    Construction loans   —     —     —     —     —     —    
    Residential mortgage loans   18     5,009     17     5,049     6     804    
    Total mortgage loans   20     5,205     21     9,003     9     1,952    
    Commercial loans   15     3,743     9     2,377     3     332    
    Consumer loans   12     854     15     856     8     755    
    Total 60 to 89 days past due   47     9,802     45     12,236     20     3,039    
    Total accruing past due loans   142   $ 52,912     144   $ 34,562     71   $ 29,024    
                               
    Non-accrual:                          
    Commercial mortgage loans   18   $ 42,931     17   $ 20,883     8   $ 5,938    
    Multi-family mortgage loans   5     7,294     6     7,498     2     2,355    
    Construction loans   3     18,929     2     13,246     —     —    
    Residential mortgage loans   22     5,246     23     4,535     10     1,647    
    Total mortgage loans   48     74,400     48     46,162     20     9,940    
    Commercial loans   83     27,471     65     24,243     21     36,892    
    Consumer loans   19     1,352     23     1,656     11     760    
    Total non-accrual loans   150   $ 103,223     136   $ 72,061     52   $ 47,592    
                               
    Non-performing loans to total loans         0.54%           0.39%           0.44%    
    Allowance for loan losses to total non-performing loans         185.78%           268.43%           223.63%    
    Allowance for loan losses to total loans         1.02%           1.04%           0.98%    
     

    The increase in accruing past due loans versus the trailing quarter was primarily attributable to two loans: a $10.5 million commercial real estate loan which is expected to be fully resolved in the second quarter through the completion of a pending note sale and a $7.4 million commercial real estate loan that is in the process of refinancing with the Company.

    As of March 31, 2025 and December 31, 2024, the Company held foreclosed assets of $6.8 million and $9.5 million, respectively. Foreclosed assets as of March 31, 2025 were comprised of commercial real estate. Total non-performing assets as of March 31, 2025 increased $28.4 million to $110.0 million, or 0.45% of total assets, from $81.5 million, or 0.34% of total assets as of December 31, 2024. During the three months ended March 31, 2025, there was a write-down of a foreclosed commercial property of $2.7 million based on a contracted sales price. The sale of this property is expected to close in the second quarter of 2025, reducing foreclosed assets by $5.8 million.

    Balance Sheet Summary

    Total assets as of March 31, 2025 were $24.22 billion, a $172.9 million increase from December 31, 2024. The increase in total assets was primarily due to a $132.0 million increase in total loans and a $110.5 million increase in total investments, partially offset by a decrease in intangible and other assets.

    The Company’s loans held for investment portfolio totaled $18.79 billion as of March 31, 2025 and $18.66 billion as of December 31, 2024. The portfolio consisted of the following:

      March 31, 2025   December 31, 2024    
      (Dollars in thousands)
    Mortgage loans:          
    Commercial $ 7,295,651     $ 7,228,078      
    Multi-family   3,458,190       3,382,933      
    Construction   756,356       823,503      
    Residential   1,994,404       2,010,637      
    Total mortgage loans   13,504,601       13,445,151      
    Commercial loans   4,682,902       4,608,600      
    Consumer loans   613,453       613,819      
    Total gross loans   18,800,956       18,667,570      
    Premiums on purchased loans   1,337       1,338      
    Net deferred fees and unearned discounts   (10,922)       (9,538)      
    Total loans $ 18,791,371     $ 18,659,370      
     

    During the three months ended March 31, 2025, the loans held for investment portfolio had net increases of $75.3 million of multi-family loans, $74.3 million of commercial loans and $67.6 million of commercial mortgage loans, partially offset by net decreases of $67.1 million of construction loans and $16.2 million of residential mortgage loans. Total commercial loans, consisting of commercial real estate, multi-family, commercial and construction loans, represented 86.1% of the loan portfolio as of March 31, 2025, compared to 85.9% as of December 31, 2024.

    For the three months ended March 31, 2025, loan funding, including advances on lines of credit, totaled $1.93 billion, compared with $622.7 million for the same period in 2024.

    As of March 31, 2025, the Company’s unfunded loan commitments totaled $2.88 billion, including commitments of $1.75 billion in commercial loans, $517.7 million in construction loans and $141.4 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2024 and March 31, 2024 were $2.73 billion and $1.97 billion, respectively.

    The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.77 billion as of March 31, 2025, compared to $1.79 billion and $1.08 billion as of December 31, 2024 and March 31, 2024, respectively.

    Total investment securities were $3.34 billion as of March 31, 2025, a $110.5 million increase from December 31, 2024. This increase was primarily due to purchases of mortgage-backed and municipal securities and a decrease in unrealized losses on available for sale debt securities.

    Total deposits decreased $175.0 million during the three months ended March 31, 2025, to $18.45 billion. Total savings and demand deposit accounts decreased $172.5 million to $15.28 billion as of March 31, 2025, while total time deposits decreased $2.4 million to $3.17 billion as of March 31, 2025. The decrease in savings and demand deposits consisted of a $142.8 million decrease in interest bearing demand deposits, a $22.0 million decrease in money market deposits and a $8.7 million decrease in savings deposits, partially offset by a $1.1 million increase in non-interest-bearing demand deposits. Within total savings and demand deposits, total municipal deposits decreased $130.8 million to $3.38 billion as of March 31, 2025, mainly due to seasonal outflows. The decrease in time deposits consisted of a $78.6 million decrease in retail time deposits, partially offset by a $76.2 million increase in brokered time deposits.

    Borrowed funds increased $315.8 million during the three months ended March 31, 2025, to $2.34 billion. The increase in borrowings was largely due to asset funding requirements. Borrowed funds represented 9.6% of total assets as of March 31, 2025, an increase from 8.4% as of December 31, 2024.

    Stockholders’ equity increased $57.6 million during the three months ended March 31, 2025, to $2.66 billion, primarily due to net income earned for the period and a decrease in unrealized losses on available for sale debt securities, partially offset by cash dividends paid to stockholders. For the three months ended March 31, 2025, common stock repurchases totaled 99,541 shares at an average cost of $18.19 per share, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. As of March 31, 2025, approximately 873,000 shares remained eligible for repurchase under the current authorization. Book value per share and tangible book value per share(1) as of March 31, 2025 were $20.35 and $14.15, respectively, compared with $19.93 and $13.66, respectively, as of December 31, 2024.

    About the Company

    Provident Financial Services, Inc. is the holding company for Provident Bank, a community-oriented bank offering “Commitment you can count on” since 1839. Provident Bank provides a comprehensive array of financial products and services through its network of branches throughout New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Orange, Queens and Nassau Counties in New York. The Bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc.

    Post Earnings Conference Call

    Representatives of the Company will hold a conference call for investors on Friday, April 25, 2025 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter ended March 31, 2025. The call may be accessed by dialing 1-888-412-4131 (United States Toll Free) and 1-646-960-0134 (United States Local). Speakers will need to enter conference ID code (3610756) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on “Webcast.”

    Forward Looking Statements

    Certain statements contained herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “project,” “intend,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company’s Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, the effects of the recent turmoil in the banking industry, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets, the availability of and costs associated with sources of liquidity, and the impact of a potential shutdown of the federal government.

    The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date they are made. The Company advises readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not assume any duty, and does not undertake, to update any forward-looking statements to reflect events or circumstances after the date of this statement.

    Footnotes

    (1) Annualized adjusted pre-tax, pre-provision return on average assets, annualized return on average tangible equity, tangible book value per share, annualized adjusted non-interest expense as a percentage of average assets and the efficiency ratio are non-GAAP financial measures. Please refer to the Notes following the Consolidated Financial Highlights which contain the reconciliation of GAAP to non-GAAP financial measures and the associated calculations.

                 
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Consolidated Financial Highlights
    (Dollars in Thousands, except share data) (Unaudited)
         
      As of or for the
    Three months ended    		  
      March 31,   December 31,   March 31,  
        2025       2024       2024    
    Statement of Income            
    Net interest income $ 181,728     $ 181,737     $ 93,670    
    Provision for credit losses   638       8,880       186    
    Non-interest income   27,030       24,175       20,807    
    Non-interest expense   116,267       134,323       71,321    
    Income before income tax expense   91,853       62,709       42,970    
    Net income   64,028       48,524       32,082    
    Diluted earnings per share $ 0.49     $ 0.37     $ 0.43    
    Interest rate spread   2.73%       2.63%       2.26%    
    Net interest margin   3.34%       3.28%       2.87%    
                 
    Profitability            
    Annualized return on average assets   1.08%       0.81%       0.92%    
    Annualized adjusted return on average assets (1)   1.11%       1.05%       0.97%    
    Annualized return on average equity   9.84%       7.36%       7.60%    
    Annualized adjusted return on average equity (1)   10.13%       9.53%       8.04%    
    Annualized return on average tangible equity (1)   15.73%       12.21%       10.40%    
    Annualized adjusted return on average tangible equity (1)   16.15%       15.39%       11.16%    
    Annualized adjusted non-interest expense to average assets (3)   1.92%       1.90%       1.99%    
    Efficiency ratio (4)   54.43%       55.43%       60.82%    
                 
    Asset Quality            
    Non-accrual loans $ 103,223     $ 72,061     $ 47,592    
    90+ and still accruing   —       —       —    
    Non-performing loans   103,223       72,061       47,592    
    Foreclosed assets   6,755       9,473       11,324    
    Non-performing assets   109,978       81,534       58,916    
    Non-performing loans to total loans   0.54%       0.39%       0.44%    
    Non-performing assets to total assets   0.45%       0.34%       0.42%    
    Allowance for loan losses $ 191,770     $ 193,432     $ 106,429    
    Allowance for loan losses to total non-performing loans   185.78%       268.43%       223.63%    
    Allowance for loan losses to total loans   1.02%       1.04%       0.98%    
    Net loan charge-offs $ 1,987     $ 5,493     $ 971    
    Annualized net loan charge-offs to average total loans   0.04%       0.12%       0.04%    
                 
    Average Balance Sheet Data            
    Assets $ 24,049,318     $ 23,908,514     $ 14,093,767    
    Loans, net   18,590,877       18,487,443       10,668,992    
    Earning assets   21,946,053       21,760,458       12,862,910    
    Core deposits   15,497,343       15,581,608       9,129,244    
    Borrowings   1,918,069       1,711,806       1,940,981    
    Interest-bearing liabilities   17,297,892       17,093,382       10,074,106    
    Stockholders’ equity   2,638,361       2,624,019       1,698,170    
    Average yield on interest-earning assets   5.63%       5.66%       5.06%    
    Average cost of interest-bearing liabilities   2.90%       3.03%       2.80%    
                 

    Notes and Reconciliation of GAAP and Non-GAAP Financial Measures
    (Dollars in Thousands, except share data)

    The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company’s results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Investors should recognize that the Company’s presentation of these non-GAAP financial measures might not be comparable to similarly titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.

                   
    (1) Annualized Adjusted Return on Average Assets, Equity and Tangible Equity              
        Three Months Ended  
        March 31,   December 31,   March 31,  
          2025       2024       2024    
    Net Income   $ 64,028     $ 48,524     $ 32,082    
    Write-down on ORE property     2,690       —       —    
    Merger-related transaction costs     —       20,184       2,202    
    Less: income tax expense     (809)       (5,819)       (342)    
    Annualized adjusted net income   $ 65,909     $ 62,889     $ 33,942    
    Less: Amortization of Intangibles (net of tax)   $ 6,642     $ 6,649     $ 493    
    Annualized adjusted net income for annualized adjusted return on average tangible equity   $ 72,551     $ 69,538     $ 34,434    
                   
    Annualized Adjusted Return on Average Assets     1.11%       1.05%       0.97%    
    Annualized Adjusted Return on Average Equity     10.13%       9.53%       8.04%    
    Annualized Adjusted Return on Average Tangible Equity     16.15%       15.39%       11.16%    
                   
    (2) Annualized adjusted pre-tax, pre-provision (“PTPP”) returns on average assets, average equity and average tangible equity              
        Three Months Ended  
        March 31,   December 31,   March 31,  
          2025       2024       2024    
    Net income   $ 64,028     $ 48,524     $ 32,082    
    Adjustments to net income:              
    Provision charge (benefit) for credit losses     638       8,880       (320)    
    Write-down on ORE property     2,690       —       —    
    Merger-related transaction costs     —       20,184       2,202    
    Income tax expense     27,825       14,185       10,888    
    PTPP income   $ 95,181     $ 91,773     $ 44,852    
                   
    Annualized adjusted PTPP income   $ 386,012     $ 365,097     $ 180,394    
    Average assets   $ 24,049,318     $ 23,908,514     $ 14,093,767    
    Average equity   $ 2,638,361     $ 2,624,019     $ 1,698,170    
    Average tangible equity   $ 1,822,407     $ 1,797,994     $ 1,240,475    
                   
    Annualized adjusted PTPP return on average assets     1.61%       1.53%       1.28%    
    Annualized adjusted PTPP return on average equity     14.63%       13.91%       10.62%    
    Annualized adjusted PTPP return on average tangible equity     21.18%       20.31%       14.54%    
                   
    (3) Annualized Return on Average Tangible Equity              
        Three Months Ended  
        March 31,   December 31,   March 31,  
          2025       2024       2024    
    Total average stockholders’ equity   $ 2,638,361     $ 2,624,019     $ 1,698,170    
    Less: total average intangible assets     815,954       826,025       457,695    
    Total average tangible stockholders’ equity   $ 1,822,407     $ 1,797,994     $ 1,240,475    
                   
    Net income     64,028       48,524       32,082    
    Less: Amortization of Intangibles, net of tax     6,642       6,649       493    
    Total net income   $ 70,670     $ 55,173     $ 32,575    
                   
    Annualized return on average tangible equity (net income/total average tangible stockholders’ equity)     15.73%       12.21%       10.56%    
                   
    (4) Annualized Adjusted Non-Interest Expense to Average Assets              
        Three Months Ended  
        March 31,   December 31,   March 31,  
          2025       2024       2024    
    Reported non-interest expense   $ 116,267     $ 134,323     $ 71,321    
    Adjustments to non-interest expense:              
    Credit loss (benefit) expense for off-balance sheet credit exposures     —       —       (506)    
    Write-down on ORE property     2,690       —       —    
    Merger-related transaction costs     —       20,184       2,202    
    Adjusted non-interest expense   $ 113,577     $ 114,139     $ 69,625    
                   
    Annualized adjusted non-interest expense   $ 460,618     $ 454,075     $ 280,030    
                   
    Average assets   $ 24,049,318     $ 23,908,514     $ 14,093,767    
                   
    Annualized adjusted non-interest expense/average assets     1.92%       1.90%       1.99%    
                   
    (5) Efficiency Ratio Calculation              
        Three Months Ended  
        March 31,   December 31,   March 31,  
          2025       2024       2024    
    Net interest income   $ 181,728     $ 181,737     $ 93,670    
    Non-interest income     27,030       24,175       20,807    
    Adjustments to non-interest income:              
    Net (gain) loss on securities transactions     (87)       14       1    
    Adjusted non-interest income   $ 26,943     $ 24,189     $ 20,808    
    Total income   $ 208,671     $ 205,926     $ 114,478    
                   
    Adjusted non-interest expense   $ 113,577     $ 114,139     $ 69,625    
                   
    Efficiency ratio (adjusted non-interest expense/income)     54.43%       55.43%       60.82%    
                   
    (6) Book and Tangible Book Value per Share   Three Months Ended  
        March 31,   December 31,   March 31,  
          2025       2024       2024    
    Total stockholders’ equity   $ 2,658,794     $ 2,601,207     $ 1,695,162    
    Less: total intangible assets     809,725       819,230       457,239    
    Total tangible stockholders’ equity   $ 1,849,069     $ 1,781,977     $ 1,237,923    
                   
    Shares outstanding     130,661,195       130,489,493       75,928,193    
                   
    Book value per share (total stockholders’ equity/shares outstanding)   $ 20.35     $ 19.93     $ 22.33    
    Tangible book value per share (total tangible stockholders’ equity/shares outstanding)   $ 14.15     $ 13.66     $ 16.30    
                   
                   
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Consolidated Statements of Financial Condition
    March 31, 2025 (Unaudited) and December 31, 2024
    (Dollars in Thousands)
           
    Assets March 31, 2025   December 31, 2024
    Cash and cash equivalents $ 234,076     $ 205,939  
    Available for sale debt securities, at fair value   2,878,785       2,768,915  
    Held to maturity debt securities, (net of $17,000 allowance as of March 31, 2025 (unaudited) and $14,000 allowance as of December 31, 2024)   314,005       327,623  
    Equity securities, at fair value   19,871       19,110  
    Federal Home Loan Bank stock   126,271       112,767  
    Loans held for sale   149,961       162,453  
    Loans held for investment   18,791,371       18,659,370  
    Less allowance for credit losses   191,770       193,432  
    Net loans   18,749,562       18,628,391  
    Foreclosed assets, net   6,755       9,473  
    Banking premises and equipment, net   115,424       119,622  
    Accrued interest receivable   91,776       91,160  
    Intangible assets   809,725       819,230  
    Bank-owned life insurance   407,986       405,893  
    Other assets   470,523       543,702  
    Total assets $ 24,224,759     $ 24,051,825  
           
    Liabilities and Stockholders’ Equity      
    Deposits:      
    Demand deposits $ 13,612,189     $ 13,775,991  
    Savings deposits   1,670,920       1,679,667  
    Certificates of deposit of $250,000 or more   767,626       789,342  
    Other time deposits   2,398,128       2,378,813  
    Total deposits   18,448,863       18,623,813  
    Mortgage escrow deposits   51,261       42,247  
    Borrowed funds   2,336,191       2,020,435  
    Subordinated debentures   402,853       401,608  
    Other liabilities   326,797       362,515  
    Total liabilities   21,565,965       21,450,618  
           
    Stockholders’ equity:      
    Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued   —       —  
    Common stock, $0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,663,184 shares outstanding as of March 31, 2025 and 130,489,493 outstanding as of December 31, 2024.   1,376       1,376  
    Additional paid-in capital   1,836,665       1,834,495  
    Retained earnings   1,021,266       989,111  
    Accumulated other comprehensive loss   (110,246)       (135,355)  
    Treasury stock   (90,267)       (88,420)  
    Total stockholders’ equity   2,658,794       2,601,207  
    Total liabilities and stockholders’ equity $ 24,224,759     $ 24,051,825  
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Consolidated Statements of Income
    Three months ended March 31, 2025, December 31, 2024 and March 31, 2024
    (Dollars in Thousands, except per share data) (Unaudited)
                 
      Three Months Ended  
      March 31,   December 31,   March 31,  
        2025     2024       2024    
    Interest and dividend income:            
    Real estate secured loans $ 187,054   $ 194,236     $ 107,456    
    Commercial loans   75,819     75,978       36,100    
    Consumer loans   10,158     10,815       4,523    
    Available for sale debt securities, equity securities and Federal Home Loan Bank stock   29,644     27,197       12,330    
    Held to maturity debt securities   1,996     2,125       2,268    
    Deposits, federal funds sold and other short-term investments   675     1,596       1,182    
    Total interest income   305,346     311,947       163,859    
                 
    Interest expense:            
    Deposits   97,420     105,922       52,534    
    Borrowed funds   17,778     15,652       17,383    
    Subordinated debt   8,420     8,636       272    
    Total interest expense   123,618     130,210       70,189    
    Net interest income   181,728     181,737       93,670    
    Provision charge for credit losses   638     8,880       (320)    
    Net interest income after provision for credit losses   181,090     172,857       93,990    
                 
    Non-interest income:            
    Fees   9,655     9,687       5,912    
    Wealth management income   7,328     7,655       7,488    
    Insurance agency income   5,651     3,289       4,793    
    Bank-owned life insurance   2,092     2,261       1,817    
    Net gain (loss) on securities transactions   87     (14)       (1)    
    Other income   2,217     1,297       798    
    Total non-interest income   27,030     24,175       20,807    
                 
    Non-interest expense:            
    Compensation and employee benefits   62,366     59,937       40,048    
    Net occupancy expense   13,927     12,562       8,520    
    Data processing expense   9,605     9,881       6,783    
    FDIC Insurance   3,385     3,411       2,272    
    Amortization of intangibles   9,501     9,511       705    
    Advertising and promotion expense   1,060     1,485       966    
    Merger-related expenses   —     20,184       2,202    
    Other operating expenses   16,423     17,352       10,331    
    Total non-interest expense   116,267     134,323       71,827    
    Income before income tax expense   91,853     62,709       42,970    
    Income tax expense   27,825     14,185       10,888    
    Net income $ 64,028   $ 48,524     $ 32,082    
                 
    Basic earnings per share $ 0.49   $ 0.37     $ 0.43    
    Average basic shares outstanding   130,325,393     130,067,244       75,260,029    
                 
    Diluted earnings per share $ 0.49   $ 0.37     $ 0.43    
    Average diluted shares outstanding   130,380,475     130,163,872       75,275,660    
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Net Interest Margin Analysis
    Quarterly Average Balances
    (Dollars in Thousands) (Unaudited)
      March 31, 2025   December 31, 2024   March 31, 2024
      Average Balance   Interest   Average
    Yield/Cost    		   Average Balance   Interest   Average
    Yield/Cost    		   Average Balance   Interest   Average
    Yield/Cost
    Interest-Earning Assets:                                  
    Deposits $ 80,074   $ 675   4.21%     $ 117,998   $ 1,596   5.38%     $ 87,869   $ 1,182   5.41%  
    Available for sale debt securities   2,827,699     27,621   3.89%       2,720,066     25,064   3.69%       1,673,950     10,022   2.39%  
    Held to maturity debt securities, net (1)   320,036     1,996   2.50%       328,147     2,125   2.59%       357,246     2,268   2.54%  
    Equity securities, at fair value   19,840     —   — %     19,920     —   — %     1,099     —   — %
    Federal Home Loan Bank stock   107,527     2,023   7.53%       86,885     2,134   9.82%       73,754     2,308   12.52%  
    Net loans: (2)                                  
    Total mortgage loans   13,297,168     187,054   5.70%       13,287,942     194,236   5.75%       7,990,218     107,456   5.33%  
    Total commercial loans   4,684,572     75,819   6.56%       4,587,048     75,978   6.54%       2,381,965     36,100   6.03%  
    Total consumer loans   609,137     10,158   6.76%       612,453     10,815   7.02%       296,809     4,523   6.13%  
    Total net loans   18,590,877     273,031   5.95%       18,487,443     281,029   5.99%       10,668,992     148,079   5.51%  
    Total interest-earning assets $ 21,946,053   $ 305,346   5.63%     $ 21,760,458   $ 311,947   5.66%     $ 12,862,910   $ 163,859   5.06%  
                                       
    Non-Interest Earning Assets:                                  
    Cash and due from banks   134,205             159,151             116,563        
    Other assets   1,969,060             1,988,905             1,114,294        
    Total assets $ 24,049,318           $ 23,908,514           $ 14,093,767        
                                       
    Interest-Bearing Liabilities:                                  
    Demand deposits $ 10,095,570   $ 65,433   2.63%     $ 10,115,827   $ 71,265   2.80%     $ 5,894,062   $ 41,566   2.84%  
    Savings deposits   1,682,596     924   0.22%       1,677,725     968   0.23%       1,163,181     637   0.22%  
    Time deposits   3,199,620     31,063   3.94%       3,187,172     33,689   4.21%       1,065,170     10,331   3.90%  
    Total Deposits   14,977,786     97,420   2.64%       14,980,724     105,922   2.81%       8,122,413     52,534   2.60%  
                                       
    Borrowed funds   1,918,069     17,778   3.76%       1,711,806     15,652   3.64%       1,940,981     17,383   3.60%  
    Subordinated debentures   402,037     8,420   8.49%       400,852     8,636   8.57%       10,712     272   10.23%  
    Total interest-bearing liabilities   17,297,892     123,618   2.90%       17,093,382     130,210   3.03%       10,074,106     70,189   2.80%  
                                       
    Non-Interest Bearing Liabilities:                                  
    Non-interest bearing deposits   3,719,177             3,788,056             2,072,001        
    Other non-interest bearing liabilities   393,888             403,057             249,490        
    Total non-interest bearing liabilities   4,113,065             4,191,113             2,321,491        
    Total liabilities   21,410,957             21,284,495             12,395,597        
    Stockholders’ equity   2,638,361             2,624,019             1,698,170        
    Total liabilities and stockholders’ equity $ 24,049,318           $ 23,908,514           $ 14,093,767        
                                       
    Net interest income     $ 181,728           $ 181,737           $ 93,670    
                                       
    Net interest rate spread         2.73%             2.63%             2.26%  
    Net interest-earning assets $ 4,648,161           $ 4,667,076           $ 2,788,804        
                                       
    Net interest margin (3)         3.34%             3.28%             2.87%  
                                       
    Ratio of interest-earning assets to total interest-bearing liabilities 1.27x           1.27x           1.28x        
       
    (1 ) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
    (2 ) Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include loans held for sale and non-accrual loans.
    (3 ) Annualized net interest income divided by average interest-earning assets.
    The following table summarizes the quarterly net interest margin for the previous five quarters.      
      3/31/25   12/31/24   9/30/24   6/30/24   3/31/24
      1st Qtr.   4th Qtr.   3rd Qtr.   2nd Qtr.   1st Qtr.
    Interest-Earning Assets:                  
    Securities 3.86%     3.78%     3.69%     3.40%     2.87%  
    Net loans 5.95%     5.99%     6.21%     6.05%     5.51%  
    Total interest-earning assets 5.63%     5.66%     5.84%     5.67%     5.06%  
                       
    Interest-Bearing Liabilities:                  
    Total deposits 2.64%     2.81%     2.96%     2.84%     2.60%  
    Total borrowings 3.76%     3.64%     3.73%     3.83%     3.60%  
    Total interest-bearing liabilities 2.90%     3.03%     3.19%     3.09%     2.80%  
                       
    Interest rate spread 2.73%     2.63%     2.65%     2.58%     2.26%  
    Net interest margin 3.34%     3.28%     3.31%     3.21%     2.87%  
                       
    Ratio of interest-earning assets to interest-bearing liabilities 1.27x     1.27x     1.26x     1.25x     1.28x  
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Net Interest Margin Analysis
    Average Year to Date Balances
    (Dollars in Thousands) (Unaudited)
                           
      March 31, 2025   March 31, 2024
      Average       Average   Average       Average
      Balance   Interest   Yield/Cost   Balance   Interest   Yield/Cost
    Interest-Earning Assets:                      
    Deposits $ 80,074   $ 675   4.21%     $ 87,869   $ 1,182   5.41%  
    Available for sale debt securities   2,827,699     27,621   3.89%       1,673,950     10,022   2.39%  
    Held to maturity debt securities, net (1)   320,036     1,996   2.50%       357,246     2,268   2.54%  
    Equity securities, at fair value   19,840     —   —%       1,099     —   —%  
    Federal Home Loan Bank stock   107,527     2,023   7.53%       73,754     2,308   12.52%  
    Net loans: (2)                      
    Total mortgage loans   13,297,168     187,054   5.70%       7,990,218     107,456   5.33%  
    Total commercial loans   4,684,572     75,819   6.56%       2,381,965     36,100   6.03%  
    Total consumer loans   609,137     10,158   6.76%       296,809     4,523   6.13%  
    Total net loans   18,590,877     273,031   5.95%       10,668,992     148,079   5.51%  
    Total interest-earning assets $ 21,946,053   $ 305,346   5.63%     $ 12,862,910   $ 163,859   5.06%  
                           
    Non-Interest Earning Assets:                      
    Cash and due from banks   134,205             116,563        
    Other assets   1,969,060             1,114,294        
    Total assets $ 24,049,318           $ 14,093,767        
                           
    Interest-Bearing Liabilities:                      
    Demand deposits $ 10,095,570   $ 65,433   2.63%     $ 5,894,062   $ 41,566   2.84%  
    Savings deposits   1,682,596     924   0.22%       1,163,181     637   0.22%  
    Time deposits   3,199,620     31,063   3.94%       1,065,170     10,331   3.90%  
    Total deposits   14,977,786     97,420   2.64%       8,122,413     52,534   2.60%  
    Borrowed funds   1,918,069     17,778   3.76%       1,940,981     17,383   3.60%  
    Subordinated debentures   402,037     8,420   8.49%       10,712     272   10.23%  
    Total interest-bearing liabilities $ 17,297,892   $ 123,618   2.90%     $ 10,074,106   $ 70,189   2.80%  
                           
    Non-Interest Bearing Liabilities:                      
    Non-interest bearing deposits   3,719,177             2,072,001        
    Other non-interest bearing liabilities   393,888             249,490        
    Total non-interest bearing liabilities   4,113,065             2,321,491        
    Total liabilities   21,410,957             12,395,597        
    Stockholders’ equity   2,638,361             1,698,170        
    Total liabilities and stockholders’ equity $ 24,049,318           $ 14,093,767        
                           
    Net interest income     $ 181,728           $ 93,670    
                           
    Net interest rate spread         2.73%             2.26%  
    Net interest-earning assets $ 4,648,161           $ 2,788,804        
                           
    Net interest margin (3)         3.34%             2.87%  
                           
    Ratio of interest-earning assets to total interest-bearing liabilities 1.27x           1.28x        
                           
                           
    (1) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
    (2) Average outstanding balance are net of the allowance for loan losses, deferred loan fees and expenses, loan premium and discounts and include loans held for sale and non-accrual loans.
    (3) Annualized net interest income divided by average interest-earning assets.
    The following table summarizes the year-to-date net interest margin for the previous three years.
                 
      Three Months Ended  
      March 31, 2025   March 31, 2024   March 31, 2023  
    Interest-Earning Assets:            
    Securities 3.86%     2.87%     2.52%    
    Net loans 5.95%     5.51%     5.12%    
    Total interest-earning assets 5.63%     5.06%     4.63%    
                 
    Interest-Bearing Liabilities:            
    Total deposits 2.64%     2.60%     1.39%    
    Total borrowings 3.76%     3.60%     2.48%    
    Total interest-bearing liabilities 2.90%     2.80%     1.54%    
                 
    Interest rate spread 2.73%     2.26%     3.09%    
    Net interest margin 3.34%     2.87%     3.48%    
                 
    Ratio of interest-earning assets to interest-bearing liabilities 1.27x     1.28x     1.34x    

    CONTACT: Investor Relations, 1-732-590-9300

    The MIL Network –

  • MIL-OSI USA: Gillibrand, Schumer, Torres Push The U.S. Consumer Product Safety Commission To Swiftly Finalize Federal Regulations For Lithium-Ion Batteries; Rule Would Make E-Bikes Safer

    US Senate News:

    Source: United States Senator for New York Kirsten Gillibrand

    Rechargeable Lithium-Ion Batteries Have Caused 1,000+ Fires And 34 Deaths Since 2019 In New York City Alone

    Rulemaking Would Protect Innocent Americans From The Dangers Of Cheap And Defective Imported Lithium-Ion Batteries 

    WASHINGTON, D.C. – Today, U.S. Senator Kirsten Gillibrand, Senate Minority Leader Chuck Schumer, and Representative Ritchie Torres are pushing the U.S. Consumer Product Safety Commission (CPSC) to move forward and finalize federal regulations for lithium-ion batteries by voting in favor of the notice of proposed rulemaking (NPRM) on Wednesday, April 30. CPSC’s decision to move forward on a vote comes after the members sent a letter to CPSC earlier this week advocating for this move.

    Lithium-ion batteries, which are commonly used in e-bikes, electric scooters, and other micromobility devices, are often manufactured abroad without being subject to acceptable safety standards. As a result, they commonly cause fires that lead to property damage or loss of life. Following an indefinite postponement of the meeting to advance federal regulations, the lawmakers called on the CPSC to issue a notice of proposed rulemaking (NPRM) – an official document explaining an agency’s plan to address a particular problem – on lithium-ion batteries as soon as possible in order to protect the lives of Americans who rely on e-bikes and e-scooters. CPSC scheduled a vote on the NPRM yesterday.

    The members noted in the letter, “Last year, we led the effort in Congress to reach a bipartisan compromise that would have authorized the Commission to enact safety standards based upon generally accepted voluntary standards for the use of lithium-ion batteries in micromobility products. We will continue fighting to pass the Setting Consumer Standards for Lithium-Ion Batteries Act, but as the legislation works its way through Congress, the Commission must do all it can to save lives and protect Americans from the poorly-made batteries from China that have caused harm.”

    The full text of the letter is available here and below.

    Dear Acting Chairman Feldman:

     We write to urge the U.S. Consumer Product Safety Commission (the “Commission”) to swiftly issue a notice of proposed rulemaking (“NPRM”) moving the proposed rule to establish a new safety standard for lithium-ion batteries used in micromobility products and electrical systems of micromobility products containing such batteries, which has received bipartisan support and would save countless lives. 

     As you know, last year, we led the effort in Congress to reach a bipartisan compromise that would have authorized the Commission to enact safety standards based upon generally accepted voluntary standards for the use of lithium-ion batteries in micromobility products. We will continue fighting to pass the Setting Consumer Standards for Lithium-Ion Batteries Act but as the legislation works its way through Congress, the Commission must do all it can to save lives and protect Americans from the poorly-made batteries from China that have caused harm.

    To that end, we were pleased to see CPSC formulate proposed safety standards that would address the risk of death and injury associated with lithium-ion batteries used in micromobility product electrical systems. A decisional meeting to issue a NPRM was scheduled for January 29, 2025, but has been indefinitely postponed. Given the public safety benefits that would arise from issuance and finalization of the NPRM, we strongly urge the Commission to move forward with advancing it as soon as possible. Any delay would not only impact consumers across the country, it would also put the safety and lives of our country’s finest heroes, our law enforcement and first responders, in danger. 

    Further, many of these cheap and defective lithium-ion batteries are manufactured in China without being subject to effective safety standards, ultimately causing fires or other safety hazards. In New York City alone, the New York City Fire Department reports rechargeable lithium-ion batteries have caused more than 1,000 fires since 2019, resulting in 523 injuries, 34 deaths & damage to over 650 hundreds of structures. In 2024, there were 279 e-bike and e-mobility device battery fires in NYC, a dramatic increase from the 30 that occurred in 2019. While the Administration and the Commission consider policy options to address economic relations with China, it is critical that the Commission advance this rulemaking as a means of protecting innocent Americans from the dangers of cheap and defective imported lithium-ion batteries.  

    As the Commission continues its work, we stand ready to work together to address this serious public safety concern. Thank you for your prompt attention to this important issue. 

    MIL OSI USA News –

  • MIL-OSI USA: Commissioner Kristin N. Johnson: Africa Fintech Summit 2025 Keynote Remarks

    Source: US Commodity Futures Trading Commission

    It is a privilege to join you today to kick-off the Africa Fintech Summit of 2025. Twice a year this convening serves as one of the largest gatherings of Africa’s Fintech Community—connecting entrepreneurs, investors, and regulators during the International Monetary Fund/World Bank spring meeting week in Washington, DC. and in the fall in Africa. My tremendous thanks to the organizers and hosts. 
    As you arrived this morning, I am sure you were able to appreciate the perfect spring weather and blooming cherry blossoms that we ordered for you this week. There are few places in DC that are lovelier this time of year than where we sit, here in Georgetown. 
    In my career, I have learned about entrepreneurship from mentors and clients at the world’s largest investment banks, small start-ups, and family-founded businesses. My family’s history as entrepreneurs and informal investors in community small businesses dates to the mid-1800s here in the United States. Perhaps one day, I will have the opportunity to continue this tradition and help fund the businesses of innovative founders. 
    Today, I am a Commissioner at the U.S. Commodity Futures Trading Commission, nominated by former President Biden and unanimously confirmed by the United States Senate.[1] At the CFTC, we oversee U.S. markets and market participants for derivatives contracts that reference commodities. According to a Bank for International Settlements report, the notional value of the global derivatives market is over $730 trillion.[2] In recent years, courts and Congress have indicated intentions to expand the CFTC’s mandate to include oversight of emerging technologies, including distributed digital ledger technologies commonly referred to as blockchain technologies, digital assets, including cryptocurrencies, and certain platforms within the assemblage of technologies referred to as artificial intelligence. 
    African Fintech Firms Inspire a World of Innovation
    African fintech firms demonstrate curiosity, creativity, and driven commitment to deliver first-rate fintech products and services to consumers and businesses on the continent and around the world.   
    During my time as a CFTC Commissioner, I have traveled to South Africa, Kenya, Zambia, and Ghana to meet with fintech entrepreneurs. I have witnessed first-hand the exceptional creativity and curiosity that drives African fintech entrepreneurs. As you well know from CNBC’s announcement last year, six African fintech firms are among the world’s top fintech companies PalmPay, Flutterwave, Kuda, MTN, Piggvest, and Yoco.[3] African fintech firms have emerged from every corner of the continent. 
    In various stages of development—from incubators to early stages (pre-seed) capital raising to joint ventures with Google, Microsoft, and AWS—African fintech firms enhance financial accessibility, inclusivity, and consumer empowerment. These businesses integrate the most advanced technologies available, reflect global thought leadership in the potential for emerging technologies to reshape access and opportunities for both consumer and commercial finance, and create pathways for inclusion that have inspired creative consumer finance solutions around the globe.
    As you know well, the recipe for entrepreneurial success begins with a great idea. Yet, building opportunities in fast-moving, high-tech markets requires a number of critical inputs as well as conditions to facilitate growth and development. Entrepreneurs or innovators, funders or sources of capital, and, yes, regulators all have an important role to play in promoting responsible innovation and growth. It has been my pleasure to collaborate with regulators around the continent as they consider ways to spur innovation and growth. Last year, during my keynote remarks at the South African Reserve Bank Fintech Summit in Johannesburg[4] and at the beginning of this year in Ghana, I emphasized the opportunities for African fintech firms to innovate using AI in consumer finance. 
    The Rise of AI in Fintech
    As I noted in my opening remarks at The South African Reserve Bank Fintech Summit last year,
    While our markets have long relied upon AI for a variety of risk management and predictive pricing functions, we are witnessing rapid developments beyond reinforcement learning and neural networks in generative AI.
    Increasingly, diverse industries and sectors of our economy identify opportunities to integrate aspects of the assemblage of technologies that we commonly describe as AI or AI technologies. AI enables doctors to diagnose and map diseases earlier, faster, and with greater accuracy than ever before in the history of medicine. Farmers who cultivate crops that feed [] nation[s] may integrate AI to better manage access to vital resources such as freshwater, enabling more efficient irrigation, fertilization, and crop rotation leading to more sustainable farming.
    In our markets, AI offers similar efficiencies for faster trade execution and settlement, more accurate pricing prediction, and more precise risk management oversight. Markets have witnessed increasing adoption of AI including AI-driven investment advising, trade execution, risk management, and market surveillance.[5]
    Financial services firms are fully embracing the powers of AI, making increasingly large investments in infrastructure to support AI and expanding the roster of use cases. One economist estimates that investments in AI may reach $97 billion by 2027.[6] 
    Notable Challenges for Inclusion 
    As AI adoption expands across markets, however, there are a number of notable challenges. For many, the costs of relying on large language models or agentic AI will place these technologies beyond the resources of their businesses. 
    Accessibility and Inclusivity Challenges for Global Competitors 
    The high cost of developing advanced AI technologies and the infrastructure to support their use poses significant accessibility and inclusivity barriers, particularly disadvantaging smaller competitors and institutions in emerging markets. These barriers limit the widespread adoption of AI-driven financial solutions, which can disproportionately affect underserved and economically disadvantaged populations who could most benefit from improved financial services. This can make it exceptionally hard for emerging companies to incorporate AI into their services if the infrastructure does not already exist. To that end, we are seeing private companies form partnerships to make necessary investments to scale up AI capabilities in Africa, like Cassava Technologies, a global technology leader, and their partnership with Nvidia to develop Africa’s first AI factory in South Africa.[7] 
    At the Commission, we have also explored regulatory frameworks addressing AI’s role in financial markets through an ongoing conversation with market participants.[8] The Commission has acknowledged the potential for AI-driven systems to impact consumer protection indirectly through enhanced market integrity and risk management protocols, but it has also acknowledged the dangers that consumers can face.[9] 
    I have repeatedly emphasized the need to establish robust principles-based regulatory frameworks at the Commission to combat consumer-facing issues like AI-enabled market manipulation and fraud, through my repeated emphasis on the need to promote the explainability of AI models, the implementation of data controls and measures to address bias, clear governance frameworks for accountability and testing, and the establishment of an interagency task force and an AI Fraud Task Force to tackle fraud full force.[10] In particular, firms implementing this technology in consumer-facing ways must adhere to existing laws on fairness, transparency, and privacy.
    The Financial Stability Board (FSB) has highlighted the importance of international collaboration in setting standards for responsible AI use, advocating for coordinated frameworks that ensure consumer protection, fairness, and transparency in AI-powered financial services globally.[11] International collaboration amongst regulators can aid in streamlining the growing body of international standards which can be difficult to navigate and present a significant barrier to emerging companies. Meanwhile, countries like Singapore have also made significant strides in regulating and supporting consumer-facing AI applications through initiatives like the Monetary Authority of Singapore’s regulatory sandbox framework, allowing fintech startups to test AI-driven solutions in controlled environments, balancing innovation with consumer protection.[12]
    Africa’s Embrace of AI to Promote Accessibility, Consumer Interaction, and Further Innovation
    Through strategic partnerships between AI startups, larger corporations, and governmental agencies, increased access to advanced AI technologies and traditional financial services have been more readily obtainable. Sitoyo Lopokoiyit, CEO and founder of M-Pesa, and others demonstrate how strategic partnerships, cost-effective approaches, and mobile-first innovations can significantly reduce barriers, enabling broader AI adoption and the growth of consumer inclusive financial services. M-Pesa, a mobile money services platform, which hosts millions of customers and facilitates billions in transactions per year, may be used to deposit money into an account, “store it on … cell phones, send balances using PINs secured by SMS text messages, and enable buyers and sellers of goods to redeem and access purchases as well as deposits for regular money…. M-Pesa represents the potential to develop platforms that give customers access to banking services, reduce transaction costs, and otherwise overcome the endemic frictions that have challenged access to financial services for millions.”[13] 
    M-Pesa’s business model is particularly interesting because of how effectively it has created access for individuals who have historically lacked access to basic financial services. I previously traveled to Kenya to meet with the CEO and President of M-Pesa, as well as central bankers, the governor of the Central Bank of Kenya, and deputy governors and market regulators, to discuss the uptick in retail market participation and the considerations for consumer protection that come with the increased accessibility to financial markets. 
    Conclusion
    Continued partnerships between African fintech innovators, African regulators, and U.S. regulators and institutions can help foster shared growth and technological advancement for both parties. Such collaborations offer significant opportunities, combining African innovation in financial inclusion and mobile technologies with U.S. strengths in regulatory frameworks, research, and infrastructure. These synergistic relationships can enhance global fintech capabilities, drive inclusive economic growth, and promote greater financial stability and consumer protection worldwide.
    Conferences like the one we are participating in today are of vital importance to the notion of collaboration. The issues discussed, the connections made, and the lessons shared here today can help propel markets forward in a way that not only protects the consumer but also empowers the consumer.
    Thank you again for allowing me to join you today. I look forward to hearing from each of the panels and speakers and continuing to develop great relationships with the leading voices in fintech in Africa.

    [1] The thoughts and perspectives that I share with you today are my own; they are not the views and perspectives of my fellow Commissioners, the Commission, or the staff of the CFTC.

    MIL OSI USA News –

  • MIL-OSI: First Western Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    First Quarter 2025 Summary

    • Net income available to common shareholders of $4.2 million in Q1 2025, compared to $2.7 million in Q4 2024
    • Diluted earnings per share of $0.43 in Q1 2025, compared to $0.28 in Q4 2024
    • Net interest income of $17.5 million in Q1 2025, compared to $16.9 million in Q4 2024
    • Net interest margin increased 16 basis points from 2.45% in Q4 2024 to 2.61% in Q1 2025
    • Other real estate owned (“OREO”) decreased $31.5 million from $35.9 million in Q4 2024 to $4.4 million in Q1 2025 due to the sale of two properties for a net gain of $0.5 million
    • Noninterest-bearing deposits increased 9.1% from $375.6 million as of Q4 2024 to $409.7 million as of Q1 2025

    DENVER, April 24, 2025 (GLOBE NEWSWIRE) — First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the first quarter ended March 31, 2025.

    Net income available to common shareholders was $4.2 million, or $0.43 per diluted share, for the first quarter of 2025. This compares to net income of $2.7 million, or $0.28 per diluted share, for the fourth quarter of 2024, and net income of $2.5 million, or $0.26 per diluted share, for the first quarter of 2024.

    Scott C. Wylie, CEO of First Western, commented, “As expected, we generated a significant improvement in our level of profitability in the first quarter. We saw positive trends in many areas including an expansion in our net interest margin, a higher level of non-interest income, an increase in noninterest-bearing deposits, solid loan production, and well managed expenses. We also saw general stability in asset quality while having a substantial reduction in our nonperforming assets following the successful resolution of our two largest OREO properties, which were sold for a net gain.

    “We expect to see a continuation of the positive trends we are seeing, while we also redeploy the cash from the sale of our two largest OREO properties into interest-earning assets. We believe this will continue to result in solid financial performance for our shareholders as we move through the year,” said Mr. Wylie.

       
      For the Three Months Ended
      March 31,   December 31,   March 31,
    (Dollars in thousands, except per share data)   2025       2024       2024  
    Earnings Summary          
    Net interest income $ 17,453     $ 16,908     $ 16,070  
    Less: Provision (release) for credit losses   80       (974 )     72  
    Total non-interest income   7,345       6,459       7,277  
    Total non-interest expense   19,361       20,427       19,696  
    Income before income taxes   5,357       3,914       3,579  
    Income tax expense   1,172       1,166       1,064  
    Net income available to common shareholders   4,185       2,748       2,515  
    Basic earnings per common share   0.43       0.28       0.26  
    Diluted earnings per common share   0.43       0.28       0.26  
               
    Return on average assets (annualized)   0.59 %     0.38 %     0.35 %
    Return on average shareholders’ equity (annualized)   6.63       4.39       4.10  
    Return on tangible common equity (annualized)(1)   7.44       4.98       4.71  
    Net interest margin   2.61       2.45       2.34  
    Efficiency ratio(1)   79.16       80.74       83.68  

    _____________________

    (1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
       

    Operating Results for the First Quarter 2025

    Revenue

    Total income before non-interest expense was $24.7 million for the first quarter of 2025, compared to $24.3 million for the fourth quarter of 2024. Gross revenue(1) was $24.6 million for the first quarter of 2025, compared to $23.8 million for the fourth quarter of 2024. Relative to the fourth quarter of 2024, the increase in total income before non-interest expense was primarily driven by increases in Net interest income, Net gain on mortgage loans, Net gain on other real estate owned, and Net gain on loans held for sale, partially offset by an increase in provision for credit losses and a decrease in Risk management and insurance fees. Relative to the first quarter of 2024, total income before non-interest expense increased 6.0% from $23.3 million and Gross revenue increased 4.7% from $23.5 million. Relative to the first quarter of 2024, the increase in total income before non-interest expense was primarily driven by increases in Net interest income and Net gain on other real estate owned, partially offset by decreases in Bank fees and Trust and investment management fees.

    (1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
       

    Net Interest Income

    Net interest income for the first quarter of 2025 was $17.5 million, an increase of 3.6% from $16.9 million in the fourth quarter of 2024. The increase quarter over quarter was primarily driven by a 16 basis point increase in net interest margin, offset partially by a decline in average interest-earning assets. Relative to the first quarter of 2024, net interest income increased 8.7% from $16.1 million. The increase compared to the first quarter of 2024 was primarily driven by an 27 basis point increase in net interest margin, offset partially by a decline in average interest-earning assets.

    Net Interest Margin

    Net interest margin for the first quarter of 2025 increased 16 basis points to 2.61% from 2.45% reported in the fourth quarter of 2024, primarily due to a decrease in cost of deposits and increase in interest-earning assets yield.

    The yield on interest-earning assets increased 4 basis points to 5.57% from 5.53% reported in the fourth quarter of 2024 and the cost of interest-bearing deposits decreased 19 basis points to 3.59% from 3.78% reported in the fourth quarter of 2024.

    Relative to the first quarter of 2024, net interest margin increased 27 basis points from 2.34%, primarily due to a 32 basis point decrease in total cost of funds.

    Non-interest Income

    Non-interest income for the first quarter of 2025 was $7.3 million, an increase of 12.3% from $6.5 million in the fourth quarter of 2024. The increase was driven primarily by increases in Net gain on other real estate owned, Net gain on mortgage loans, and Net gain on loans held for sale, partially offset by a decrease in Risk management and insurance fees. The increase in Net gain on other real estate was due to the sale of our two largest OREO properties for a net gain of $0.5 million. The increase in Net gain on loans held for sale was due to the reversal of the previous quarter’s write-down on a non-performing loan. This loan was previously classified as held for sale; however, during the quarter it was transferred to held for investment and charged off through the Allowance for credit losses.

    Relative to the first quarter of 2024, non-interest income increased slightly, driven primarily by increases in Net gain on other real estate owned and Net gain on loans accounted for under the fair value option, offset partially by decreases in Trust and investment management fees and Bank fees.

    Non-interest Expense

    Non-interest expense for the first quarter of 2025 was $19.4 million, a decrease of 4.9% from $20.4 million in the fourth quarter of 2024. The decrease was primarily driven by the one-time $1.1 million Other real estate owned (“OREO”) write-down recognized in the fourth quarter of 2024, offset partially by an increase in Salaries and employee benefits.

    Relative to the first quarter of 2024, non-interest expense decreased 1.5% from $19.7 million, driven primarily by a decrease in Professional services due to decreases in legal expenses, audit fees, and FDIC insurance fees, partially offset by increases in Occupancy and equipment expenses and Salaries and employee benefits.

    The Company’s efficiency ratio(1) was 79.2% in the first quarter of 2025, compared with 80.7% in the fourth quarter of 2024 and 83.7% in the first quarter of 2024.

    (1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
       

    Income Taxes

    The Company recorded Income tax expense of $1.2 million for the first quarter of 2025, compared to Income tax expense of $1.2 million for the fourth quarter of 2024 and Income tax expense of $1.1 million for the first quarter of 2024.

    Loans

    Total loans held for investment of $2.43 billion as of March 31, 2025 was flat compared to December 31, 2024. Changes in the quarter included net growth in the commercial real estate and 1 – 4 family residential portfolios, offset by net decreases in the cash, securities, and other and construction and development portfolios. Total average loans were $2.41 billion for the first quarter of 2025, an increase of $21.4 million from $2.39 billion for the fourth quarter of 2024. Relative to the first quarter of 2024, total loans held for investment decreased from $2.48 billion as of March 31, 2024, primarily driven by net decreases in the commercial and industrial, construction and development, and cash, securities, and other portfolios, partially offset by net growth in the 1 – 4 family residential and non-owner occupied commercial real estate portfolios.

    Deposits

    Total deposits were $2.52 billion as of March 31, 2025, an increase of 0.4% from $2.51 billion as of December 31, 2024. Relative to the first quarter of 2024, total deposits decreased from $2.53 billion as of March 31, 2024, driven primarily by a decrease in Noninterest-bearing deposits.

    Borrowings

    Federal Home Loan Bank (“FHLB”) and Federal Reserve borrowings were a combined $51.6 million as of March 31, 2025, a decrease of $5.4 million from $57.0 million as of December 31, 2024. The change when compared to December 31, 2024 was primarily driven by net pay downs on the Company’s FHLB line of credit. Relative to the first quarter of 2024, borrowings decreased $17.9 million from $69.5 million as of March 31, 2024. The decrease in borrowings from March 31, 2024 was primarily driven by BTFP payoffs and net pay downs on the Company’s FHLB line of credit.

    Subordinated notes were $44.6 million as of March 31, 2025, compared to $52.6 million as of December 31, 2024. Subordinated notes decreased $7.8 million from $52.4 million as of March 31, 2024. Relative to the fourth quarter of 2024 and first quarter of 2024, the decrease was due to the call of $8.0 million of subordinated notes that became eligible to call in the first quarter of 2025.

    Assets Under Management

    Assets Under Management (“AUM”) decreased to $7.18 billion as of March 31, 2025, compared to $7.32 billion as of December 31, 2024. The decrease in AUM during the quarter was primarily attributable to net withdrawals throughout the first quarter of 2025. Compared to March 31, 2024, total AUM increased slightly from $7.14 billion.

    Credit Quality

    Non-performing assets totaled $17.1 million, or 0.59% of total assets, as of March 31, 2025, compared to $49.0 million, or 1.68% of total assets, as of December 31, 2024. The decrease in non-performing assets during the quarter was primarily due to the sale of two OREO properties for a net gain of $0.5 million. As of March 31, 2024, non-performing assets totaled $46.0 million, or 1.57% of total assets. Relative to the first quarter of 2024, the decrease in non-performing assets was primarily driven by the sale of two OREO properties, partially offset by additions to non-performing loans. OREO totaled $4.4 million as of March 31, 2025 a decrease of $31.5 million from $35.9 million as of December 31, 2024. As of March 31, 2024, the Company held no OREO.

    Non-performing loans totaled $12.8 million as of March 31, 2025, a decrease of $0.3 million from $13.1 million as of December 31, 2024. The decrease was primarily due to the charge-off of a non-performing loan that had previously been held for sale. As of March 31, 2024, non-performing loans totaled $46.0 million. The decrease when compared to March 31, 2024 was driven by the migration of one loan relationship out of non-performing loans and into OREO, partially offset by additions to non-performing loans.

    During the first quarter of 2025, the Company recorded provision expense of $0.1 million, compared to a provision release of $1.0 million in the fourth quarter of 2024 and provision expense of $0.1 million in the first quarter of 2024.

    Capital

    As of March 31, 2025, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of March 31, 2025, the Bank was classified as “well capitalized,” as summarized in the following table:

       
      March 31,
      2025
    Consolidated Capital  
    Tier 1 capital to risk-weighted assets 10.35 %
    Common Equity Tier 1 (“CET1”) to risk-weighted assets 10.35  
    Total capital to risk-weighted assets 13.15  
    Tier 1 capital to average assets 8.12  
       
    Bank Capital  
    Tier 1 capital to risk-weighted assets 11.76 %
    CET1 to risk-weighted assets 11.76  
    Total capital to risk-weighted assets 12.52  
    Tier 1 capital to average assets 9.24  
         

    Book value per common share increased 1.3% from $26.10 as of December 31, 2024 to $26.44 as of March 31, 2025. Book value per common share increase 3.6% from $25.52 as of March 31, 2024.

    Tangible book value per common share(1) increased 1.6% from $22.83 as of December 31, 2024, to $23.18 as of March 31, 2025. Tangible book value per common share increased 4.4% from $22.21 as of March 31, 2024.

    (1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
       

    Conference Call, Webcast and Slide Presentation

    The Company will host a conference call and webcast at 10:00 a.m. MT/ 12:00 p.m. ET on Friday, April 25, 2025. Telephone access: https://register-conf.media-server.com/register/BI019349e043a94dc394d0159a3c41719d.

    A slide presentation relating to the first quarter 2025 results will be accessible prior to the scheduled conference call. The slide presentation and webcast of the conference call can be accessed on the Events and Presentations page of the Company’s investor relations website at https://myfw.gcs-web.com.

    About First Western

    First Western is a financial services holding company headquartered in Denver, Colorado, with operations in Colorado, Arizona, Wyoming, California, and Montana. First Western and its subsidiaries provide a fully integrated suite of wealth management services on a private trust bank platform, which includes a comprehensive selection of deposit, loan, trust, wealth planning and investment management products and services. First Western’s common stock is traded on the Nasdaq Global Select Market under the symbol “MYFW.” For more information, please visit www.myfw.com.

    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 Common Equity,” “Tangible Common Book Value per Share,” “Return on Tangible Common Equity,” “Efficiency Ratio,” “Gross Revenue,” and “Allowance for Credit Losses to Adjusted Loans”. 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. 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. Reconciliation of non-GAAP financial measures to GAAP financial measures are provided at the end of this press release.

    Forward-Looking Statements

    Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “position,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “opportunity,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Those risks and uncertainties include, without limitation, the lack of soundness of other financial institutions or financial market utilities may adversely affect the Company; the Company’s ability to engage in routine funding and other transactions could be adversely affected by the actions and commercial soundness of other financial institutions; financial institutions are interrelated because of trading, clearing, counterparty or other relationships; defaults by, or even rumors or questions about, one or more financial institutions or financial market utilities, or the financial services industry generally, may lead to market-wide liquidity problems and losses of client, creditor and counterparty confidence and could lead to losses or defaults by other financial institutions, or the Company; integration risks and projected cost savings in connection with acquisitions; the risk of geographic concentration in Colorado, Arizona, Wyoming, California, and Montana; the risk of changes in the economy affecting real estate values and liquidity; the risk in our ability to continue to originate residential real estate loans and sell such loans; risks specific to commercial loans and borrowers; the risk of claims and litigation pertaining to our fiduciary responsibilities; the risk of competition for investment managers and professionals; the risk of fluctuation in the value of our debt securities; the risk of changes in interest rates; the risk of the adequacy of our allowance for credit losses; the risk in our ability to maintain a strong core deposit base or other low-cost funding sources; the risk of weak economic conditions and global trade, including the imposition of tariffs; the risk that legislative or regulatory actions may have a significant adverse effect on our operations. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 7, 2025 (“Form 10-K”), and other documents we file with the SEC from time to time. We urge readers of this news release to review the “Risk Factors” section our Form 10-K and any updates to those risk factors set forth in our subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and our other filings with the SEC. Also, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today’s date, or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

    Contacts:
    Financial Profiles, Inc.
    Tony Rossi
    310-622-8221
    MYFW@finprofiles.com
    IR@myfw.com

       
    First Western Financial, Inc.
    Condensed Consolidated Statements of Income (unaudited)
       
      Three Months Ended
      March 31,   December 31,   March 31,
    (dollars in thousands, except per share amounts)   2025     2024       2024  
    Interest and dividend income:          
    Loans, including fees $ 34,068   $ 34,287     $ 35,139  
    Loans accounted for under the fair value option   111     118       209  
    Investment securities   681     696       603  
    Interest-bearing deposits in other financial institutions   2,221     2,879       2,352  
    Dividends, restricted stock   128     129       95  
    Total interest and dividend income   37,209     38,109       38,398  
               
    Interest expense:          
    Deposits   18,516     19,921       20,622  
    Other borrowed funds   1,240     1,280       1,706  
    Total interest expense   19,756     21,201       22,328  
    Net interest income   17,453     16,908       16,070  
    Less: Provision (release) for credit losses   80     (974 )     72  
    Net interest income, after provision (release) for credit losses   17,373     17,882       15,998  
               
    Non-interest income:          
    Trust and investment management fees   4,677     4,660       4,930  
    Net gain on mortgage loans   1,067     377       1,264  
    Net gain (loss) on loans held for sale   222     (222 )     117  
    Bank fees   422     426       891  
    Risk management and insurance fees   259     1,139       49  
    Income on company-owned life insurance   110     112       105  
    Net gain (loss) on loans accounted for under the fair value option   6     (149 )     (302 )
    Net gain on other real estate owned   459     —       —  
    Unrealized gain (loss) recognized on equity securities   11     (49 )     (6 )
    Other   112     165       229  
    Total non-interest income   7,345     6,459       7,277  
    Total income before non-interest expense   24,718     24,341       23,275  
               
    Non-interest expense:          
    Salaries and employee benefits   11,480     11,237       11,267  
    Occupancy and equipment   2,210     2,100       1,976  
    Professional services   1,704     1,821       2,411  
    Technology and information systems   1,078     1,073       1,010  
    Data processing   1,122     1,029       948  
    Marketing   216     397       194  
    Amortization of other intangible assets   51     56       57  
    Other   1,500     2,714       1,833  
    Total non-interest expense   19,361     20,427       19,696  
    Income before income taxes   5,357     3,914       3,579  
    Income tax expense   1,172     1,166       1,064  
    Net income available to common shareholders $ 4,185   $ 2,748     $ 2,515  
    Earnings per common share:          
    Basic $ 0.43   $ 0.28     $ 0.26  
    Diluted   0.43     0.28       0.26  
                         
                         
               
    First Western Financial, Inc.
    Condensed Consolidated Balance Sheets (unaudited)
               
      March 31,   December 31,   March 31,
    (dollars in thousands)   2025       2024       2024  
    Assets          
    Cash and cash equivalents:          
    Cash and due from banks $ 15,924     $ 9,770     $ 8,136  
    Interest-bearing deposits in other financial institutions   255,658       226,271       249,753  
    Total cash and cash equivalents   271,582       236,041       257,889  
               
    Held-to-maturity debt securities (fair value of $67,479, $68,161 and $64,908, respectively), net of allowance for credit losses of $71   73,775       75,724       72,303  
    Correspondent bank stock, at cost   5,968       5,864       4,461  
    Mortgage loans held for sale, at fair value   10,557       25,455       10,470  
    Loans held for sale, at fair value   —       251       —  
    Loans (includes $6,112, $7,283, and $11,922 measured at fair value, respectively)   2,425,367       2,425,565       2,475,524  
    Allowance for credit losses   (17,956 )     (18,330 )     (24,630 )
    Loans, net   2,407,411       2,407,235       2,450,894  
    Premises and equipment, net   24,554       24,129       24,869  
    Accrued interest receivable   10,623       10,364       11,919  
    Accounts receivable   4,505       4,763       4,980  
    Other receivables   4,608       5,710       5,254  
    Other real estate owned, net   4,385       35,929       —  
    Goodwill and other intangible assets, net   31,576       31,627       31,797  
    Deferred tax assets, net   2,856       3,079       5,695  
    Company-owned life insurance   17,071       16,961       16,635  
    Other assets   36,829       35,905       35,051  
    Total assets $ 2,906,300     $ 2,919,037     $ 2,932,217  
               
    Liabilities          
    Deposits:          
    Noninterest-bearing $ 409,696     $ 375,603     $ 434,236  
    Interest-bearing   2,105,701       2,138,606       2,097,734  
    Total deposits   2,515,397       2,514,209       2,531,970  
    Borrowings:          
    Federal Home Loan Bank and Federal Reserve borrowings   51,612       57,038       69,484  
    Subordinated notes   44,621       52,565       52,397  
    Accrued interest payable   2,371       1,995       2,415  
    Other liabilities   35,744       40,908       30,423  
    Total liabilities   2,649,745       2,666,715       2,686,689  
               
    Shareholders’ Equity          
    Total shareholders’ equity   256,555       252,322       245,528  
    Total liabilities and shareholders’ equity $ 2,906,300     $ 2,919,037     $ 2,932,217  
                           
                           
               
    First Western Financial, Inc.
    Consolidated Financial Summary (unaudited)
               
      March 31,   December 31,   March 31,
    (dollars in thousands)   2025       2024       2024  
    Loan Portfolio          
    Cash, Securities, and Other(1) $ 101,078     $ 120,005     $ 151,178  
    Consumer and Other   16,688       17,333       18,556  
    Construction and Development   291,133       315,686       333,284  
    1-4 Family Residential   971,179       960,354       910,129  
    Non-Owner Occupied CRE   636,820       614,384       562,862  
    Owner Occupied CRE   182,417       173,223       194,338  
    Commercial and Industrial   223,197       220,501       297,573  
    Total   2,422,512       2,421,486       2,467,920  
    Loans accounted for under the fair value option   6,280       7,508       12,276  
    Total loans held for investment   2,428,792       2,428,994       2,480,196  
    Deferred (fees) costs and unamortized premiums/(unaccreted discounts), net(2)   (3,425 )     (3,429 )     (4,672 )
    Loans (includes $6,112, $7,283, and $11,922 measured at fair value, respectively) $ 2,425,367     $ 2,425,565     $ 2,475,524  
    Mortgage loans held for sale   10,557       25,455       10,470  
    Loans held for sale   —       251       —  
               
    Deposit Portfolio          
    Money market deposit accounts $ 1,566,737     $ 1,513,605     $ 1,503,598  
    Time deposits   379,533       471,415       442,834  
    Interest checking accounts   144,980       139,374       132,415  
    Savings accounts   14,451       14,212       18,887  
    Total interest-bearing deposits   2,105,701       2,138,606       2,097,734  
    Noninterest-bearing accounts   409,696       375,603       434,236  
    Total deposits $ 2,515,397     $ 2,514,209     $ 2,531,970  

    ____________________

    (1) Includes PPP loans of $1.6 million as of March 31, 2025, $2.1 million as of December 31, 2024, and $3.8 million as of March 31, 2024.
    (2) Includes fair value adjustments on loans held for investment accounted for under the fair value option.
       
       
    First Western Financial, Inc.
    Consolidated Financial Summary (unaudited) (continued)
       
      As of or for the Three Months Ended
      March 31,   December 31,   March 31,
    (dollars in thousands)   2025       2024       2024  
    Average Balance Sheets          
    Assets          
    Interest-earning assets:          
    Interest-bearing deposits in other financial institutions $ 198,294     $ 236,152     $ 177,523  
    Debt securities   75,592       77,464       74,666  
    Correspondent bank stock   5,806       5,738       4,451  
    Gross loans   2,407,482       2,386,070       2,490,300  
    Mortgage loans held for sale   13,593       26,623       6,752  
    Loans held at fair value   6,846       8,136       13,134  
    Total interest-earning assets   2,707,613       2,740,183       2,766,826  
    Noninterest-earning assets   145,479       161,783       100,170  
    Total assets $ 2,853,092     $ 2,901,966     $ 2,866,996  
               
    Liabilities and Shareholders’ Equity          
    Interest-bearing liabilities:          
    Interest-bearing deposits $ 2,090,505     $ 2,095,204     $ 2,008,246  
    FHLB and Federal Reserve borrowings   51,885       54,428       92,195  
    Subordinated notes   52,495       52,528       52,360  
    Total interest-bearing liabilities   2,194,885       2,202,160       2,152,801  
    Noninterest-bearing liabilities:          
    Noninterest-bearing deposits   363,922       403,433       446,457  
    Other liabilities   41,656       45,889       22,250  
    Total noninterest-bearing liabilities   405,578       449,322       468,707  
    Total shareholders’ equity   252,629       250,484       245,488  
    Total liabilities and shareholders’ equity $ 2,853,092     $ 2,901,966     $ 2,866,996  
               
    Yields/Cost of funds (annualized)          
    Interest-bearing deposits in other financial institutions   4.54 %     4.85 %     5.33 %
    Debt securities   3.65       3.57       3.25  
    Correspondent bank stock   8.94       8.94       8.58  
    Loans   5.71       5.65       5.66  
    Loan held at fair value   6.58       5.77       6.40  
    Mortgage loans held for sale   5.46       6.02       6.79  
    Total interest-earning assets   5.57       5.53       5.58  
    Interest-bearing deposits   3.59       3.78       4.13  
    Total deposits   3.06       3.17       3.38  
    FHLB and Federal Reserve borrowings   3.92       3.96       4.23  
    Subordinated notes   5.70       5.59       5.66  
    Total interest-bearing liabilities   3.65       3.83       4.17  
    Net interest margin   2.61       2.45       2.34  
    Net interest rate spread   1.92       1.70       1.41  
                           
                           
       
    First Western Financial, Inc.
    Consolidated Financial Summary (unaudited) (continued)
       
      As of or for the Three Months Ended
      March 31,   December 31,   March 31,
    (dollars in thousands, except share and per share amounts)   2025       2024       2024  
    Asset Quality          
    Non-performing loans $ 12,758     $ 13,052     $ 46,044  
    Non-performing assets   17,143       48,981       46,044  
    Net charge-offs (recoveries)   566       (270 )     —  
    Non-performing loans to total loans   0.53 %     0.54 %     1.86 %
    Non-performing assets to total assets   0.59       1.68       1.57  
    Allowance for credit losses to non-performing loans   140.74       140.44       53.49  
    Allowance for credit losses to total loans   0.74       0.76       1.00  
    Allowance for credit losses to adjusted loans(1)   0.74       0.76       1.00  
    Net charge-offs (recoveries) to average loans   0.02       (0.01 )     —  
               
    Assets Under Management $ 7,176,624     $ 7,321,147     $ 7,141,453  
               
    Market Data          
    Book value per share at period end $ 26.44     $ 26.10     $ 25.52  
    Tangible book value per common share(1)   23.18       22.83       22.21  
    Weighted average outstanding shares, basic   9,704,419       9,665,621       9,621,309  
    Weighted average outstanding shares, diluted   9,798,591       9,794,797       9,710,764  
    Shares outstanding at period end   9,704,320       9,667,142       9,621,309  
               
    Consolidated Capital          
    Tier 1 capital to risk-weighted assets   10.35 %     10.07 %     9.77 %
    CET1 to risk-weighted assets   10.35       10.07       9.77  
    Total capital to risk-weighted assets   13.15       13.12       13.15  
    Tier 1 capital to average assets   8.12       7.88       7.73  
               
    Bank Capital          
    Tier 1 capital to risk-weighted assets   11.76 %     11.41 %     11.00 %
    CET1 to risk-weighted assets   11.76       11.41       11.00  
    Total capital to risk-weighted assets   12.52       12.10       12.02  
    Tier 1 capital to average assets   9.24       8.94       8.70  

    ________________________

    (1) Represents a Non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
       
       
    First Western Financial, Inc.
    Consolidated Financial Summary (unaudited) (continued)
       
    Reconciliations of Non-GAAP Financial Measures
       
      As of or for the Three Months Ended
      March 31,   December 31,   March 31,
    (dollars in thousands, except share and per share amounts)   2025       2024       2024  
    Tangible Common          
    Total shareholders’ equity $ 256,555     $ 252,322     $ 245,528  
    Less: goodwill and other intangibles, net   31,576       31,627       31,797  
    Tangible common equity $ 224,979     $ 220,695     $ 213,731  
               
    Common shares outstanding, end of period   9,704,320       9,667,142       9,621,309  
    Tangible common book value per share $ 23.18     $ 22.83     $ 22.21  
    Net income available to common shareholders   4,185       2,748       2,515  
    Return on tangible common equity (annualized)   7.44 %     4.98 %     4.71 %
               
    Efficiency          
    Non-interest expense $ 19,361     $ 20,427     $ 19,696  
    Less: OREO expenses and write-downs   (80 )     1,222       —  
    Adjusted non-interest expense $ 19,441     $ 19,205     $ 19,696  
               
    Total income before non-interest expense $ 24,718     $ 24,341     $ 23,275  
    Less: unrealized gain (loss) recognized on equity securities   11       (49 )     (6 )
    Less: net gain (loss) on loans accounted for under the fair value option   6       (149 )     (302 )
    Less: net gain (loss) on loans held for sale   222       (222 )     117  
    Plus: provision (release) for credit losses   80       (974 )     72  
    Gross revenue $ 24,559     $ 23,787     $ 23,538  
    Efficiency ratio   79.16 %     80.74 %     83.68 %
                           

    The MIL Network –

  • MIL-OSI: NBT Bancorp Inc. Announces First Quarter 2025 Net Income

    Source: GlobeNewswire (MIL-OSI)

    NORWICH, N.Y., April 24, 2025 (GLOBE NEWSWIRE) — NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three months ended March 31, 2025.

    Net income for the first quarter of 2025 was $36.7 million, or $0.77 per diluted common share, compared to $33.8 million, or $0.71 per diluted common share, for the first quarter of 2024, and $36.0 million, or $0.76 per diluted common share, for the fourth quarter of 2024. Operating diluted earnings per share(1), a non-GAAP measure, was $0.80 for the first quarter of 2025, compared to $0.68 for the first quarter of 2024 and $0.77 for the fourth quarter of 2024.

    CEO Comments

    “Growth in both net interest income and noninterest income compared to the prior quarter and the first quarter of 2024 resulted in the generation of positive operating leverage by our team in the first quarter of 2025.” said NBT President and Chief Executive Officer Scott A. Kingsley. “Our capital position remains a key strength as we execute on strategic growth initiatives. We recently added new banking locations in South Burlington, VT and Webster, NY, and we look forward to completing our planned merger with Evans Bancorp, Inc. in early May. The addition of over 200 experienced bankers and 18 locations from Evans will firmly establish NBT’s presence in Buffalo and Rochester, Upstate New York’s two largest markets by population.”

    First Quarter 2025 Financial Highlights

    Net Income
    • Net income was $36.7 million and diluted earnings per share was $0.77
    Net Interest Income / NIM
    • Net interest income on a fully taxable equivalent (“FTE”) basis was $107.2 million, an increase of $1.1 million from the prior quarter(1)
    • Net interest margin (“NIM”) on an FTE basis was 3.44%(1), an increase of 10 basis points (“bps”) from the prior quarter
    • Included in FTE net interest income was $2.2 million of acquisition-related net accretion, which was down $0.4 million from the fourth quarter of 2024
    • Earning asset yields of 4.95% were down 1 bp from the prior quarter
    • Total cost of funds of 1.60% was down 11 bps from the prior quarter
    Noninterest Income
    • Noninterest income was $47.6 million, an increase of 12.7% from the fourth quarter of 2024, excluding net securities gains (losses)
    Loans and Credit Quality
    • Period end total loans were $9.98 billion as of March 31, 2025, up $10.4 million, or 0.4% annualized, from December 31, 2024
    • Net charge-offs to average loans was 0.27% annualized
    • Nonperforming loans to total loans was 0.48%
    • Allowance for loan losses to total loans was 1.17%
    Deposits
    • Deposits were $11.71 billion as of March 31, 2025, up $161.8 million, or 1.4%, from December 31, 2024
    • Total cost of deposits was 1.49% for the first quarter of 2025, down 11 bps from the fourth quarter of 2024
    Capital
    • Stockholders’ equity was $1.57 billion as of March 31, 2025
    • Tangible book value per share(2) was $24.74 at March 31, 2025
    • Tangible equity to assets of 8.68%(1)
    • CET1 ratio of 12.12%; Leverage ratio of 10.39%


    Loans

    • Period end total loans were $9.98 billion at March 31, 2025, compared to $9.97 billion at December 31, 2024.
    • Period end total loans increased $10.4 million from December 31, 2024. Total commercial loans increased $23.9 million to $5.33 billion while total consumer loans decreased $13.6 million to $4.65 billion. Excluding the other consumer and residential solar portfolios, which are in a planned run-off status, period end loans increased $40.5 million, or 1.8% annualized. Residential real estate loan balances decreased $14.7 million from December 31, 2024 primarily due to seasonally lower originations and market conditions. In addition, the Company originated and sold $7.4 million of 30-year fixed rate mortgages in the first quarter of 2025.

    Deposits

    • Total deposits at March 31, 2025 were $11.71 billion, compared to $11.55 billion at December 31, 2024. The $161.8 million increase in deposits from December 31, 2024 was primarily due to the inflow of seasonal municipal deposits during the quarter.
    • The loan to deposit ratio was 85.2% at March 31, 2025, compared to 86.3% at December 31, 2024.

    Net Interest Income and Net Interest Margin

    • Net interest income for the first quarter of 2025 was $107.2 million, an increase of $1.1 million, or 1.1%, from the fourth quarter of 2024 and an increase of $12.0 million, or 12.7%, from the first quarter of 2024. The increase in net interest income from the fourth quarter of 2024 resulted primarily from a decrease in the cost of deposits, partially offset by lower yields on loans and two fewer days in the first quarter of 2025.
    • The NIM on an FTE basis for the first quarter of 2025 was 3.44%, an increase of 10 bps from the fourth quarter of 2024. This increase was driven by the decrease in the cost of interest-bearing deposits. The NIM on an FTE basis increased 30 bps from the first quarter of 2024 due to higher average balances of earning assets and the yields on those assets, lower average balances of short-term borrowings and the decrease in the cost of interest-bearing deposits.
    • Earning asset yields for the three months ended March 31, 2025 decreased 1 bp from the prior quarter to 4.95%. Loan yields for the three months ended March 31, 2025 decreased 3 bps from the prior quarter to 5.62% primarily due to the repricing of $2.1 billion in variable rate loans from the 25 bps federal funds rate decrease in December, partially offset by loans originating at higher rates than portfolio yields during the quarter. Earnings asset yields increased 11 bps from the same quarter in the prior year as new loan yields were priced higher than portfolio yields. Average earning assets were consistent with the fourth quarter of 2024 due to the decrease in short-term interest-bearing accounts being mostly offset by an increase in securities and organic loan growth. Average earning assets grew $427.5 million, or 3.5%, from the first quarter of 2024 due to growth in average loans and securities.
    • Total cost of deposits, including noninterest bearing deposits, was 1.49% for the first quarter of 2025, a decrease of 11 bps from the prior quarter and a decrease of 12 bps from the same period in the prior year.
    • Total cost of funds for the three months ended March 31, 2025 was 1.60%, a decrease of 11 bps from the prior quarter and a decrease of 19 bps from the first quarter of 2024.

    Asset Quality and Allowance for Loan Losses

    • Net charge-offs to total average loans for the first quarter of 2025 was 27 bps compared to 23 bps in the prior quarter primarily due to an increase in consumer net charge-offs. Included in net charge-offs for the first quarter of 2025 was a $2.1 million write-down of a nonperforming commercial real estate loan to the estimated fair value.
    • Nonperforming assets to total assets was 0.35% at March 31, 2025, compared to 0.38% at December 31, 2024.
    • Provision expense for the three months ended March 31, 2025 was $7.6 million, compared to $2.2 million for the fourth quarter of 2024. The increase in provision expense from the prior quarter was primarily due to the deterioration in economic forecasts and a higher level of net charge-offs partially offset by the run-off of the other consumer and residential solar portfolios.
    • The allowance for loan losses was $117.0 million, or 1.17% of total loans, at March 31, 2025, compared to $116.0 million, or 1.16% of total loans, at December 31, 2024.
    • The reserve for unfunded loan commitments was $4.5 million at March 31, 2025, compared to $4.4 million at December 31, 2024.

    Noninterest Income                

    • Total noninterest income, excluding securities gains (losses), was $47.6 million for the three months ended March 31, 2025, up $5.4 million, or 12.7%, from the fourth quarter of 2024, and up $4.3 million, or 10.1%, from the first quarter of 2024.
    • Retirement plan administration fees were up $2.9 million from the prior quarter and increased $1.6 million from the first quarter of 2024. The increase from the prior quarter was due to higher seasonal activity-based fees in the first quarter and the additional revenue from both organic growth and the acquisition of a small third-party administrator (“TPA”) business in the fourth quarter of 2024. The increase from the first quarter of 2024 was driven by the additional revenue from new customer plans, the TPA acquisition and higher market values of assets under administration.
    • Wealth management fees were consistent with the prior quarter and increased $1.2 million from the first quarter of 2024. The increase from the first quarter of 2024 was driven by market performance and growth in new customer accounts.
    • Insurance revenues increased $0.9 million from the fourth quarter of 2024 due to organic growth, higher levels of policy renewals and first quarter seasonality.
    • Bank owned life insurance income increased from both the fourth quarter of 2024 and the first quarter of 2024 due to a $1.3 million nonrecurring gain.

    Noninterest Expense        

    • Total noninterest expense was $99.9 million for the first quarter of 2025, compared to $100.8 million for the fourth quarter of 2024 and $91.8 million for the first quarter of 2024. Total noninterest expense decreased 1.1% compared to the previous quarter and increased 7.5% from the first quarter of 2024, excluding $1.2 million of acquisition expenses in the first quarter of 2025 and $1.0 million in the fourth quarter of 2024, respectively.
    • Salaries and benefits decreased 1.7% from the prior quarter driven by lower medical and other benefit costs, lower levels of incentive compensation and lower salaries due to two fewer payroll days in the quarter, partially offset by seasonally higher payroll taxes and stock-based compensation expenses. The increase from the first quarter of 2024 was driven by merit pay increases which were effective annually in March, an increase in employees supporting growth in our markets and higher medical and other benefit costs.
    • Occupancy costs increased $1.2 million from the prior quarter primarily due to seasonal maintenance and utilities costs. The $0.9 million increase from the first quarter of 2024 was driven by higher seasonal maintenance and utilities given the harsher winter and higher facilities costs related to new banking locations.
    • Other expense decreased $1.7 million from the prior quarter and was consistent with the first quarter of 2024. The decrease from the previous quarter was driven by timing of expenses and Company initiatives in the fourth quarter of 2024.

    Income Taxes

    • The effective tax rate for the first quarter of 2025 was 22.2% which was up from 21.7% for the first quarter of 2024 primarily due to a lower level of tax-exempt income as a percentage of total taxable income.

    Capital

    • Tangible common equity to tangible assets(1) was 8.68% at March 31, 2025. Tangible book value per share(2) was $24.74 at March 31, 2025 and $23.88 at December 31, 2024.
    • Stockholders’ equity increased $39.6 million from December 31, 2024 driven by net income generation of $36.7 million and a $20.3 million decrease in accumulated other comprehensive loss reflecting the change in the fair value of securities available for sale, partially offset by dividends declared of $16.1 million.
    • As of March 31, 2025, CET1 capital ratio of 12.12%, leverage ratio of 10.39% and total risk-based capital ratio of 15.24%.

    Stock Repurchase

    • The Company did not purchase shares of its common stock during the three months ended March 31, 2025. The Company may repurchase shares of its common stock from time to time to mitigate the potential dilutive effects of stock-based incentive plans and other potential uses of common stock for corporate purposes. As of March 31, 2025, there were 1,992,400 shares available under the Company’s share repurchase program.

    Evans Bancorp, Inc. Merger

    • NBT and Evans anticipate completing the previously announced merger on May 2, 2025 simultaneously with the core system conversion, pending customary closing conditions. Evans had assets of $2.19 billion, deposits of $1.87 billion and net loans of $1.76 billion as of December 31, 2024. Pursuant to the merger agreement, NBT will acquire 100% of the outstanding shares of Evans in exchange for common shares of NBT. The exchange ratio will be fixed at 0.91 NBT shares for each share of Evans.

    Conference Call and Webcast

    The Company will host a conference call at 10:00 a.m. (Eastern) Friday, April 25, 2025, to review the first quarter 2025 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company’s Event Calendar page at www.nbtbancorp.com/bn/presentations-events.html#events and will be archived for twelve months.

    Corporate Overview

    NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $13.86 billion at March 31, 2025. The Company primarily operates through NBT Bank, N.A., a full-service community bank, and through two financial services companies. NBT Bank, N.A. has 157 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine and Connecticut. EPIC Retirement Plan Services, based in Rochester, NY, is a national benefits administration firm. NBT Insurance Agency, LLC, based in Norwich, NY, is a full-service insurance agency. More information about NBT and its divisions is available online at: www.nbtbancorp.com, www.nbtbank.com, www.epicrps.com and www.nbtbank.com/Insurance.

    Forward-Looking Statements

    This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of phrases such as “anticipate,” “believe,” “expect,” “forecasts,” “projects,” “will,” “can,” “would,” “should,” “could,” “may,” or other similar terms. There are a number of factors, many of which are beyond the Company’s control, that could cause actual results to differ materially from those contemplated by the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) local, regional, national and international economic conditions, including actual or potential stress in the banking industry, and the impact they may have on the Company and its customers, and the Company’s assessment of that impact; (2) changes in the level of nonperforming assets and charge-offs; (3) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (4) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board (“FRB”) and international trade disputes (including threatened or implemented tariffs imposed by the U.S. and threatened or implemented tariffs imposed by foreign countries in retaliation); (5) inflation, interest rate, securities market and monetary fluctuations; (6) political instability; (7) acts of war, including international military conflicts, or terrorism; (8) the timely development and acceptance of new products and services and the perceived overall value of these products and services by users; (9) changes in consumer spending, borrowing and saving habits; (10) changes in the financial performance and/or condition of the Company’s borrowers; (11) technological changes; (12) acquisition and integration of acquired businesses; (13) the possibility that NBT and Evans may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or at all or to successfully integrate Evans operations and those of NBT; (14) the ability to increase market share and control expenses; (15) changes in the competitive environment among financial holding companies; (16) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which the Company and its subsidiaries must comply, including those under the Dodd-Frank Act, and the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018; (17) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; (18) changes in the Company’s organization, compensation and benefit plans; (19) the costs and effects of legal and regulatory developments, including the resolution of legal proceedings or regulatory or other governmental inquiries, and the results of regulatory examinations or reviews; (20) greater than expected costs or difficulties related to the integration of new products and lines of business; and (21) the Company’s success at managing the risks involved in the foregoing items.

    The Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made, and advises readers that various factors, including, but not limited to, those described above and other factors discussed in the Company’s annual and quarterly reports previously filed with the SEC, could affect the Company’s financial performance and could cause the Company’s actual results or circumstances for future periods to differ materially from those anticipated or projected.

    Unless required by law, the Company does not undertake, and specifically disclaims any obligations to, publicly release any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

    Non-GAAP Measures

    This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as a reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provide useful information that is important to an understanding of the results of the Company’s core business as well as provide information standard in the financial institution industry. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Amounts previously reported in the consolidated financial statements are reclassified whenever necessary to conform to current period presentation.

    Contact: Scott A. Kingsley, President and CEO
      Annette L. Burns, Executive Vice President and CFO
      NBT Bancorp Inc.
      52 South Broad Street
      Norwich, NY 13815
      607-337-6589
       
    NBT Bancorp Inc. and Subsidiaries            
    Selected Financial Data            
    (unaudited, dollars in thousands except per share data)          
                 
        2025     2024    
      1st Q 4th Q 3rd Q 2nd Q 1st Q  
    Profitability (reported)            
    Diluted earnings per share $ 0.77   $ 0.76   $ 0.80   $ 0.69   $ 0.71    
    Weighted average diluted common shares outstanding   47,477,391     47,505,760     47,473,417     47,382,814     47,370,145    
    Return on average assets(3)   1.08 %   1.04 %   1.12 %   0.98 %   1.02 %  
    Return on average equity(3)   9.68 %   9.44 %   10.21 %   9.12 %   9.52 %  
    Return on average tangible common equity(1)(3)   13.63 %   13.36 %   14.54 %   13.23 %   13.87 %  
    Net interest margin(1)(3)   3.44 %   3.34 %   3.27 %   3.18 %   3.14 %  
                 
        2025     2024    
      1st Q 4th Q 3rd Q 2nd Q 1st Q  
    Profitability (operating)            
    Diluted earnings per share(1) $ 0.80   $ 0.77   $ 0.80   $ 0.69   $ 0.68    
    Return on average assets(1)(3)   1.11 %   1.06 %   1.12 %   0.98 %   0.97 %  
    Return on average equity(1)(3)   9.95 %   9.60 %   10.23 %   9.14 %   9.04 %  
    Return on average tangible common equity(1)(3)   13.99 %   13.57 %   14.56 %   13.26 %   13.20 %  
                 
        2025     2024    
      1st Q 4th Q 3rd Q 2nd Q 1st Q  
    Balance sheet data            
    Short-term interest-bearing accounts $ 37,385   $ 78,973   $ 231,671   $ 35,207   $ 156,632    
    Securities available for sale   1,704,677     1,574,664     1,509,338     1,439,445     1,418,471    
    Securities held to maturity   836,833     842,921     854,941     878,909     890,863    
    Net loans   9,863,267     9,853,910     9,787,541     9,733,847     9,572,777    
    Total assets   13,864,251     13,786,666     13,839,552     13,501,909     13,439,199    
    Total deposits   11,708,511     11,546,761     11,588,278     11,271,459     11,195,289    
    Total borrowings   312,977     414,983     456,666     476,082     518,190    
    Total liabilities   12,298,476     12,260,525     12,317,572     12,039,954     11,997,784    
    Stockholders’ equity   1,565,775     1,526,141     1,521,980     1,461,955     1,441,415    
                 
    Capital            
    Equity to assets   11.29 %   11.07 %   11.00 %   10.83 %   10.73 %  
    Tangible equity ratio(1)   8.68 %   8.42 %   8.36 %   8.11 %   7.98 %  
    Book value per share $ 33.13   $ 32.34   $ 32.26   $ 31.00   $ 30.57    
    Tangible book value per share(2) $ 24.74   $ 23.88   $ 23.83   $ 22.54   $ 22.07    
    Leverage ratio   10.39 %   10.24 %   10.29 %   10.16 %   10.09 %  
    Common equity tier 1 capital ratio   12.12 %   11.93 %   11.86 %   11.70 %   11.68 %  
    Tier 1 capital ratio   13.02 %   12.83 %   12.77 %   12.61 %   12.61 %  
    Total risk-based capital ratio   15.24 %   15.03 %   15.02 %   14.88 %   14.87 %  
    Common stock price (end of period) $ 42.90   $ 47.76   $ 44.23   $ 38.60   $ 36.68    
                 
    NBT Bancorp Inc. and Subsidiaries          
    Asset Quality and Consolidated Loan Balances          
    (unaudited, dollars in thousands)          
               
        2025     2024  
      1st Q 4th Q 3rd Q 2nd Q 1st Q
    Asset quality          
    Nonaccrual loans $ 44,829   $ 45,819   $ 33,338   $ 34,755   $ 35,189  
    90 days past due and still accruing   2,862     5,798     3,981     3,333     2,600  
    Total nonperforming loans   47,691     51,617     37,319     38,088     37,789  
    Other real estate owned   308     182     127     74     –  
    Total nonperforming assets   47,999     51,799     37,446     38,162     37,789  
    Allowance for loan losses   117,000     116,000     119,500     120,500     115,300  
               
    Asset quality ratios          
    Allowance for loan losses to total loans   1.17 %   1.16 %   1.21 %   1.22 %   1.19 %
    Total nonperforming loans to total loans   0.48 %   0.52 %   0.38 %   0.39 %   0.39 %
    Total nonperforming assets to total assets   0.35 %   0.38 %   0.27 %   0.28 %   0.28 %
    Allowance for loan losses to total nonperforming loans   245.33 %   224.73 %   320.21 %   316.37 %   305.12 %
    Past due loans to total loans(4)   0.32 %   0.34 %   0.36 %   0.30 %   0.33 %
    Net charge-offs to average loans(3)   0.27 %   0.23 %   0.16 %   0.15 %   0.19 %
               
        2025     2024  
      1st Q 4th Q 3rd Q 2nd Q 1st Q
    Loan net charge-offs by line of business          
    Commercial $ 2,109   $ 2,542   $ 807   $ (8 ) $ 772  
    Residential real estate and home equity   (25 )   (25 )   (64 )   (76 )   (32 )
    Indirect auto   1,155     675     725     747     665  
    Residential solar and other consumer   3,315     2,517     2,452     3,036     3,274  
      Total loan net charge-offs $ 6,554   $ 5,709   $ 3,920   $ 3,699   $ 4,679  
               
        2025     2024  
      1st Q 4th Q 3rd Q 2nd Q 1st Q
    Allowance for loan losses as a percentage of loans by segment        
    Commercial & industrial   0.76 %   0.73 %   0.73 %   0.76 %   0.79 %
    Commercial real estate   1.02 %   0.95 %   1.01 %   1.00 %   0.97 %
    Residential real estate   1.00 %   1.00 %   1.00 %   0.98 %   0.89 %
    Auto   0.72 %   0.81 %   0.83 %   0.85 %   0.81 %
    Residential solar and other consumer   3.61 %   3.64 %   3.69 %   3.78 %   3.63 %
      Total   1.17 %   1.16 %   1.21 %   1.22 %   1.19 %
               
        2025     2024  
      1st Q 4th Q 3rd Q 2nd Q 1st Q
    Loans by line of business          
    Commercial & industrial $ 1,436,990   $ 1,426,482   $ 1,458,926   $ 1,397,935   $ 1,353,446  
    Commercial real estate   3,890,115     3,876,698     3,792,498     3,784,214     3,646,739  
    Residential real estate   2,127,588     2,142,249     2,143,766     2,134,875     2,133,289  
    Home equity   331,400     334,268     328,687     326,556     328,673  
    Indirect auto   1,309,084     1,273,253     1,235,175     1,225,786     1,190,734  
    Residential solar and other consumer   885,090     916,960     947,989     984,981     1,035,196  
      Total loans $ 9,980,267   $ 9,969,910   $ 9,907,041   $ 9,854,347   $ 9,688,077  
               
    NBT Bancorp Inc. and Subsidiaries      
    Consolidated Balance Sheets      
    (unaudited, in thousands)      
           
      March 31, December 31,  
      2025 2024  
    Assets      
    Cash and due from banks $ 216,698 $ 205,083  
    Short-term interest-bearing accounts   37,385   78,973  
    Equity securities, at fair value   41,561   42,372  
    Securities available for sale, at fair value   1,704,677   1,574,664  
    Securities held to maturity (fair value $756,404 and $749,945, respectively)   836,833   842,921  
    Federal Reserve and Federal Home Loan Bank stock   32,117   33,957  
    Loans held for sale   13,628   9,744  
    Loans   9,980,267   9,969,910  
    Less allowance for loan losses   117,000   116,000  
      Net loans $ 9,863,267 $ 9,853,910  
    Premises and equipment, net   81,598   80,840  
    Goodwill   362,663   362,663  
    Intangible assets, net   34,249   36,360  
    Bank owned life insurance   271,723   272,657  
    Other assets   367,852   392,522  
    Total assets $ 13,864,251 $ 13,786,666  
           
    Liabilities and stockholders’ equity      
    Demand (noninterest bearing) $ 3,399,393 $ 3,446,068  
    Savings, NOW and money market   6,858,372   6,658,188  
    Time   1,450,746   1,442,505  
      Total deposits $ 11,708,511 $ 11,546,761  
    Short-term borrowings   85,597   162,942  
    Long-term debt   4,605   29,644  
    Subordinated debt, net   121,579   121,201  
    Junior subordinated debt   101,196   101,196  
    Other liabilities   276,988   298,781  
      Total liabilities $ 12,298,476 $ 12,260,525  
           
    Total stockholders’ equity $ 1,565,775 $ 1,526,141  
           
    Total liabilities and stockholders’ equity $ 13,864,251 $ 13,786,666  
           
    NBT Bancorp Inc. and Subsidiaries          
    Quarterly Consolidated Statements of Income          
    (unaudited, in thousands except per share data)          
               
        2025     2024  
      1st Q 4th Q 3rd Q 2nd Q 1st Q
    Interest, fee and dividend income          
    Interest and fees on loans $ 138,052   $ 141,103   $ 141,991 $ 136,606   $ 133,146  
    Securities available for sale   10,262     8,773     7,815   7,562     7,124  
    Securities held to maturity   4,914     4,931     5,042   5,190     5,303  
    Other   1,176     2,930     1,382   1,408     1,364  
      Total interest, fee and dividend income $ 154,404   $ 157,737   $ 156,230 $ 150,766   $ 146,937  
    Interest expense          
    Deposits $ 42,588   $ 46,815   $ 49,106 $ 46,688   $ 44,339  
    Short-term borrowings   866     918     1,431   2,899     3,421  
    Long-term debt   266     293     292   291     290  
    Subordinated debt   1,822     1,816     1,810   1,806     1,800  
    Junior subordinated debt   1,639     1,790     1,922   1,908     1,913  
      Total interest expense $ 47,181   $ 51,632   $ 54,561 $ 53,592   $ 51,763  
    Net interest income $ 107,223   $ 106,105   $ 101,669 $ 97,174   $ 95,174  
    Provision for loan losses   7,554     2,209     2,920   8,899     5,579  
      Net interest income after provision for loan losses $ 99,669   $ 103,896   $ 98,749 $ 88,275   $ 89,595  
    Noninterest income          
    Service charges on deposit accounts $ 4,243   $ 4,411   $ 4,340 $ 4,219   $ 4,117  
    Card services income   5,317     5,652     5,897   5,587     5,195  
    Retirement plan administration fees   15,858     12,924     14,578   14,798     14,287  
    Wealth management   10,946     10,842     10,929   10,173     9,697  
    Insurance services   4,761     3,883     4,913   3,848     4,388  
    Bank owned life insurance income   3,397     2,271     1,868   1,834     2,352  
    Net securities (losses) gains   (104 )   222     476   (92 )   2,183  
    Other   3,034     2,221     2,773   2,865     3,173  
      Total noninterest income $ 47,452   $ 42,426   $ 45,774 $ 43,232   $ 45,392  
    Noninterest expense          
    Salaries and employee benefits $ 60,694   $ 61,749   $ 59,641 $ 55,393   $ 55,704  
    Technology and data services   10,238     10,220     9,920   9,249     9,750  
    Occupancy   9,027     7,786     7,754   7,671     8,098  
    Professional fees and outside services   4,952     4,843     4,871   4,565     4,853  
    Amortization of intangible assets   2,111     2,080     2,062   2,133     2,168  
    Reserve for unfunded loan commitments   90     (125 )   250   (380 )   (450 )
    Acquisition expenses   1,221     988     543   –     –  
    Other   11,567     13,234     10,704   10,957     11,650  
      Total noninterest expense $ 99,900   $ 100,775   $ 95,745 $ 89,588   $ 91,773  
    Income before income tax expense $ 47,221   $ 45,547   $ 48,778 $ 41,919   $ 43,214  
    Income tax expense   10,476     9,542     10,681   9,203     9,391  
       Net income $ 36,745   $ 36,005   $ 38,097 $ 32,716   $ 33,823  
    Earnings Per Share          
    Basic $ 0.78   $ 0.76   $ 0.81 $ 0.69   $ 0.72  
    Diluted $ 0.77   $ 0.76   $ 0.80 $ 0.69   $ 0.71  
               
    NBT Bancorp Inc. and Subsidiaries                      
    Average Quarterly Balance Sheets                      
    (unaudited, dollars in thousands)                      
                           
        Average Balance Yield / Rates Average Balance Yield / Rates Average Balance Yield / Rates Average Balance Yield / Rates Average Balance Yield / Rates
        Q1 – 2025 Q4 – 2024 Q3 – 2024 Q2 – 2024 Q1 – 2024
    Assets                      
    Short-term interest-bearing accounts   $ 63,198 4.51 % $ 184,988 5.27 % $ 62,210 4.87 % $ 48,861 5.48 % $ 47,972 4.48 %
    Securities taxable(1)     2,402,772 2.30 %   2,317,034 2.10 %   2,266,930 1.99 %   2,280,767 1.97 %   2,278,029 1.91 %
    Securities tax-exempt(1)(5)     220,210 3.60 %   211,493 3.46 %   217,251 3.47 %   226,032 3.56 %   230,468 3.58 %
    FRB and FHLB stock     33,469 5.73 %   33,261 5.75 %   35,395 6.97 %   40,283 7.41 %   42,296 7.89 %
    Loans(1)(6)     9,981,487 5.62 %   9,957,879 5.65 %   9,865,412 5.74 %   9,772,014 5.63 %   9,674,892 5.54 %
    Total interest-earning assets   $ 12,701,136 4.95 % $ 12,704,655 4.96 % $ 12,447,198 5.01 % $ 12,367,957 4.92 % $ 12,273,657 4.84 %
    Other assets     1,088,069     1,093,419     1,072,277     1,064,487     1,055,386  
    Total assets   $ 13,789,205   $ 13,798,074   $ 13,519,475   $ 13,432,444   $ 13,329,043  
    Liabilities and stockholders’ equity                      
    Money market deposit accounts   $ 3,496,552 3.04 % $ 3,504,937 3.27 % $ 3,342,845 3.68 % $ 3,254,252 3.65 % $ 3,129,160 3.56 %
    NOW deposit accounts     1,682,265 0.84 %   1,664,960 0.91 %   1,600,547 0.87 %   1,603,695 0.78 %   1,600,288 0.75 %
    Savings deposits     1,571,673 0.05 %   1,561,703 0.05 %   1,566,316 0.05 %   1,586,753 0.05 %   1,607,659 0.04 %
    Time deposits     1,450,846 3.55 %   1,446,798 3.85 %   1,442,424 4.00 %   1,391,062 4.00 %   1,352,559 4.00 %
    Total interest-bearing deposits   $ 8,201,336 2.11 % $ 8,178,398 2.28 % $ 7,952,132 2.46 % $ 7,835,762 2.40 % $ 7,689,666 2.32 %
    Federal funds purchased     2,278 4.45 %   – –     2,609 5.34 %   29,945 5.56 %   19,769 5.53 %
    Repurchase agreements     107,496 2.87 %   116,408 3.13 %   98,035 2.80 %   86,405 1.55 %   82,419 1.55 %
    Short-term borrowings     7,033 4.61 %   174 4.57 %   48,875 5.74 %   155,159 5.58 %   213,390 5.34 %
    Long-term debt     27,674 3.90 %   29,657 3.93 %   29,696 3.91 %   29,734 3.94 %   29,772 3.92 %
    Subordinated debt, net     121,331 6.09 %   120,967 5.97 %   120,594 5.97 %   120,239 6.04 %   119,873 6.04 %
    Junior subordinated debt     101,196 6.57 %   101,196 7.04 %   101,196 7.56 %   101,196 7.58 %   101,196 7.60 %
    Total interest-bearing liabilities   $ 8,568,344 2.23 % $ 8,546,800 2.40 % $ 8,353,137 2.60 % $ 8,358,440 2.58 % $ 8,256,085 2.52 %
    Demand deposits     3,385,080     3,438,194     3,389,894     3,323,906     3,356,607  
    Other liabilities     296,983     295,292     292,446     306,747     286,749  
    Stockholders’ equity     1,538,798     1,517,788     1,483,998     1,443,351     1,429,602  
    Total liabilities and stockholders’ equity   $ 13,789,205   $ 13,798,074   $ 13,519,475   $ 13,432,444   $ 13,329,043  
    Interest rate spread     2.72 %   2.56 %   2.41 %   2.34 %   2.32 %
    Net interest margin (FTE)(1)     3.44 %   3.34 %   3.27 %   3.18 %   3.14 %
                           
                 
    (1) The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release:  
                 
      Non-GAAP measures          
      (unaudited, dollars in thousands except per share data)          
                 
          2025     2024  
        1st Q 4th Q 3rd Q 2nd Q 1st Q
      Operating net income          
      Net income $ 36,745   $ 36,005   $ 38,097   $ 32,716   $ 33,823  
      Acquisition expenses   1,221     988     543     –     –  
      Securities losses (gains)   104     (222 )   (476 )   92     (2,183 )
      Adjustments to net income $ 1,325   $ 766   $ 67   $ 92   $ (2,183 )
      Adjustments to net income (net of tax) $ 1,020   $ 604   $ 52   $ 72   $ (1,703 )
      Operating net income $ 37,765   $ 36,609   $ 38,149   $ 32,788   $ 32,120  
      Operating diluted earnings per share $ 0.80   $ 0.77   $ 0.80   $ 0.69   $ 0.68  
                 
          2025     2024  
        1st Q 4th Q 3rd Q 2nd Q 1st Q
      FTE adjustment          
      Net interest income $ 107,223   $ 106,105   $ 101,669   $ 97,174   $ 95,174  
      Add: FTE adjustment   636     619     639     658     658  
      Net interest income (FTE) $ 107,859   $ 106,724   $ 102,308   $ 97,832   $ 95,832  
      Average earning assets $ 12,701,136   $ 12,704,655   $ 12,447,198   $ 12,367,957   $ 12,273,657  
      Net interest margin (FTE)(3)   3.44 %   3.34 %   3.27 %   3.18 %   3.14 %
                 
      Interest income for tax-exempt securities and loans have been adjusted to an FTE basis using the statutory Federal income tax rate of 21%.
                 
          2025     2024  
        1st Q 4th Q 3rd Q 2nd Q 1st Q
      Tangible equity to tangible assets          
      Total equity $ 1,565,775   $ 1,526,141   $ 1,521,980   $ 1,461,955   $ 1,441,415  
      Intangible assets   396,912     399,023     397,853     398,686     400,819  
      Total assets $ 13,864,451   $ 13,786,666   $ 13,839,552   $ 13,501,909   $ 13,439,199  
      Tangible equity to tangible assets   8.68 %   8.42 %   8.36 %   8.11 %   7.98 %
                 
          2025     2024  
        1st Q 4th Q 3rd Q 2nd Q 1st Q
      Return on average tangible common equity          
      Net income $ 36,745   $ 36,005   $ 38,097   $ 32,716   $ 33,823  
      Amortization of intangible assets (net of tax)   1,583     1,560     1,547     1,600     1,626  
      Net income, excluding intangibles amortization $ 38,328   $ 37,565   $ 39,644   $ 34,316   $ 35,449  
                 
      Average stockholders’ equity $ 1,538,798   $ 1,517,788   $ 1,483,998   $ 1,443,351   $ 1,429,602  
      Less: average goodwill and other intangibles   398,233     399,139     399,113     399,968     401,756  
      Average tangible common equity $ 1,140,565   $ 1,118,649   $ 1,084,885   $ 1,043,383   $ 1,027,846  
      Return on average tangible common equity(3)   13.63 %   13.36 %   14.54 %   13.23 %   13.87 %
                 
    (2) Non-GAAP measure – Stockholders’ equity less goodwill and intangible assets divided by common shares outstanding.  
    (3) Annualized.          
    (4) Total past due loans, defined as loans 30 days or more past due and in an accrual status.    
    (5) Securities are shown at average amortized cost.          
    (6) For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.

    This press release was published by a CLEAR® Verified individual.

    The MIL Network –

  • MIL-OSI: MidWestOne Financial Group, Inc. Reports Financial Results For the First Quarter of 2025

    Source: GlobeNewswire (MIL-OSI)

    IOWA CITY, Iowa, April 24, 2025 (GLOBE NEWSWIRE) — MidWestOne Financial Group, Inc. (Nasdaq: MOFG) (“we,” “our,” or the “Company”) today reported results for the first quarter of 2025.

    First Quarter 2025 Summary1

    • Net income of $15.1 million, or $0.73 per diluted common share.
      • Net interest margin (tax equivalent) was 3.44%;2 core net interest margin expanded 10 basis points (“bps”) to 3.36%.2
      • Noninterest expenses were $36.3 million; efficiency ratio was 59.38%.2
      • Return on average assets of 1.00%.
    • Criticized loans ratio improved 54 bps to 5.47%; nonperforming assets ratio improved 7 bps to 0.33%.
    • Tangible book value per share of $23.36,2 an increase of 4.4%.
    • Common equity tier 1 (“CET1”) capital ratio improved 24 bps to 10.97%.

    CEO Commentary

    Charles (Chip) Reeves, Chief Executive Officer of the Company, commented, “We are pleased with the continued execution of our strategic plan initiatives despite a more uncertain economic environment. Our return on average assets eclipsed 1% for the second straight quarter driven by disciplined balance sheet management, core net interest margin expansion of 10 bps2 and solid expense control. Loan growth was flat in the quarter, somewhat softer than anticipated, due to pay-offs and latter quarter market volatility. The majority of our asset quality metrics improved significantly, led by reductions in nonperforming assets and criticized loans. Net charge-offs increased to 29 basis points, with the majority of the increase due to a partial charge-off on a previously reserved CRE loan as we prepare for resolution. Driven by earnings and lower accumulated other comprehensive loss, tangible book value per share increased 4.4% to $23.362 and the CET1 ratio grew to 10.97%, edging closer to our target range of 11.0%-11.50%.

    Thank you to our team members who continued to execute well and serve our customers amidst market volatility. We are pleased with the transformation of our company and our solid foundation of increased capital, earnings power, asset quality, and a premium core deposit franchise position us well for uncertain economic times and the remainder of 2025.”

    1 First Quarter Summary compares to the fourth quarter of 2024 (the “linked quarter”) unless noted.
    2 Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

        As of or for the quarter ended
    (Dollars in thousands, except per share amounts and as noted)   March 31,   December 31,   March 31,
        2025       2024       2024  
    Financial Results            
    Revenue   $ 57,575     $ 59,775     $ 44,481  
    Credit loss expense     1,687       1,291       4,689  
    Noninterest expense     36,293       37,372       35,565  
    Net income     15,138       16,330       3,269  
    Adjusted earnings(3)     15,301       16,112       4,504  
    Per Common Share            
    Diluted earnings per share   $ 0.73     $ 0.78     $ 0.21  
    Adjusted earnings per share(3)     0.73       0.77       0.29  
    Book value     27.85       26.94       33.53  
    Tangible book value(3)     23.36       22.37       27.14  
    Balance Sheet & Credit Quality            
    Loans In millions   $ 4,304.2     $ 4,315.6     $ 4,414.6  
    Investment securities In millions     1,305.5       1,328.4       1,862.2  
    Deposits In millions     5,489.1       5,478.0       5,585.2  
    Net loan charge-offs In millions     3.1       0.7       0.2  
    Allowance for credit losses ratio     1.25 %     1.28 %     1.27 %
    Selected Ratios            
    Return on average assets     1.00 %     1.03 %     0.20 %
    Net interest margin, tax equivalent(3)     3.44 %     3.43 %     2.33 %
    Return on average equity     10.74 %     11.53 %     2.49 %
    Return on average tangible equity(3)     13.75 %     14.80 %     4.18 %
    Efficiency ratio(3)     59.38 %     59.06 %     71.28 %
                             

    REVENUE REVIEW

    Revenue               Change   Change
                  1Q25 vs   1Q25 vs
    (Dollars in thousands)   1Q25   4Q24   1Q24   4Q24   1Q24
    Net interest income   $           47,439   $         48,938   $        34,731   (3)%   37 %
    Noninterest income                 10,136               10,837                9,750   (6)%   4 %
    Total revenue, net of interest expense   $           57,575   $         59,775   $        44,481   (4)%   29 %
                                 

    Total revenue for the first quarter of 2025 decreased $2.2 million from the fourth quarter of 2024 due to lower net interest income and noninterest income during the quarter. When compared to the first quarter of 2024, total revenue increased $13.1 million, due to higher net interest income and higher noninterest income.

    Net interest income of $47.4 million for the first quarter of 2025 decreased $1.5 million from the fourth quarter of 2024, due to lower earning asset volumes and yields, partially offset by lower funding volumes and costs. When compared to the first quarter of 2024, net interest income increased $12.7 million, due to higher earning asset yields and lower funding volumes and costs, partially offset by lower earning asset volumes.

    The Company’s tax equivalent net interest margin was 3.44%3 in the first quarter of 2025, compared to 3.43%3 in the fourth quarter of 2024, driven by lower funding costs, partially offset by a decline in earning asset yields. Interest bearing liability costs during the first quarter of 2025 decreased 11 bps to 2.41%, due to reductions of short-term borrowings, interest bearing deposits, and long-term debt costs of 78 bps, 10 bps, and 7 bps, to 3.75%, 2.31%, and 6.41%, respectively, from the fourth quarter of 2024.

    The Company’s tax equivalent net interest margin was 3.44%3 in the first quarter of 2025, compared to 2.33%3 in the first quarter of 2024, driven by higher earning asset yields and lower interest-bearing liability costs. Total earning assets yield increased 79 bps from the first quarter of 2024, primarily due to increases of 192 bps and 20 bps in total investment securities and loan yields, respectively. Interest bearing liability costs decreased 34 bps to 2.41%, due to short-term borrowing costs of 3.75%, long-term debt costs of 6.41%, and interest-bearing deposit costs of 2.31%, which decreased 107 bps, 45 bps, and 14 bps, respectively, from the first quarter of 2024.

    3 Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

    Noninterest Income             Change   Change
                1Q25 vs   1Q25 vs
    (In thousands) 1Q25   4Q24   1Q24   4Q24   1Q24
    Investment services and trust activities $ 3,544     $ 3,779   $ 3,503     (6)%   1 %
    Service charges and fees   2,131       2,159     2,144     (1)%   (1)%
    Card revenue   1,744       1,833     1,943     (5)%   (10)%
    Loan revenue   1,194       1,841     856     (35)%   39 %
    Bank-owned life insurance   1,057       719     660     47 %   60 %
    Investment securities gains, net   33       161     36     (80)%   (8)%
    Other   433       345     608     26 %   (29)%
    Total noninterest income $ 10,136     $ 10,837   $ 9,750     (6)%   4 %
                       
    MSR adjustment (included above in Loan revenue) $ (213 )   $ 164   $ (368 )   (230)%   (42)%
                                 

    Noninterest income for the first quarter of 2025 decreased $0.7 million from the linked quarter, primarily due to declines of $0.6 million and $0.2 million in loan revenue and investment services and trust activities revenue, respectively. The decrease in loan revenue was reflective of an unfavorable change in the fair value of our mortgage servicing rights of $0.4 million, coupled with a decrease in Small Business Administration (“SBA”) gain on sale revenue of $0.3 million. The decrease in investment services and trust activities revenue was driven by a decline in assets under administration due to market volatility. Partially offsetting these decreases was an increase of $0.3 million in bank-owned life insurance revenue, due primarily to $0.4 million of death benefit recognized in the first quarter of 2025.

    Noninterest income for the first quarter of 2025 increased $0.4 million from the first quarter of 2024 due primarily to increases of $0.4 million and $0.3 million in bank-owned life insurance and loan revenue, respectively. The bank-owned life insurance increase was due primarily to the death benefit noted above. The increase in loan revenue was due primarily to the mortgage servicing right valuation adjustment, coupled with higher SBA gain on sale revenue and other loan income. Partially offsetting these increases were decreases of $0.2 million in each of card revenue and other revenue.

    EXPENSE REVIEW

    Noninterest Expense             Change   Change
                1Q25 vs   1Q25 vs
    (In thousands) 1Q25   4Q24   1Q24   4Q24   1Q24
    Compensation and employee benefits $ 21,212   $ 20,684   $ 20,930   3 %   1 %
    Occupancy expense of premises, net   2,588     2,772     2,813   (7)%   (8)%
    Equipment   2,426     2,688     2,600   (10)%   (7)%
    Legal and professional   2,226     2,534     2,059   (12)%   8 %
    Data processing   1,698     1,719     1,360   (1)%   25 %
    Marketing   552     793     598   (30)%   (8)%
    Amortization of intangibles   1,408     1,449     1,637   (3)%   (14)%
    FDIC insurance   917     980     942   (6)%   (3)%
    Communications   159     154     196   3 %   (19)%
    Foreclosed assets, net   74     56     358   32 %   (79)%
    Other   3,033     3,543     2,072   (14)%   46 %
         Total noninterest expense $ 36,293   $ 37,372   $ 35,565   (3)%   2 %
                               
    Merger-related Expenses          
             
    (In thousands) 1Q25   4Q24   1Q24
    Compensation and employee benefits $                 —   $                 —   $               241
    Occupancy expense of premises, net                     —                       —                     152
    Equipment                     —                       21                     149
    Legal and professional                     40                       —                     573
    Data processing                     —                       10                       61
    Marketing                     —                       —                       32
    Communications                     —                       —                         1
    Other                     —                       —                     105
    Total merger-related expenses $                 40   $                 31   $            1,314
                     

    Noninterest expense for the first quarter of 2025 decreased $1.1 million from the linked quarter, primarily due to decreases in other noninterest expense, legal and professional, equipment, and occupancy expense of premises, net, of $0.5 million, $0.3 million, $0.3 million, and $0.2 million, respectively. The primary drivers of the decrease in other noninterest expense were declines in fraud loss expense of $0.3 million and customer deposit costs of $0.1 million. The $0.3 million decrease in legal and professional expense was primarily driven by lower litigation-related legal costs. The decrease in equipment of $0.3 million was primarily driven by fewer small equipment purchases, while the decrease in occupancy expense of premises, net was due primarily to lower property tax expense. Partially offsetting these decreases was an increase of $0.5 million in compensation and employee benefits which reflected an increase in equity compensation and payroll tax expenses.

    Noninterest expense for the first quarter of 2025 increased $0.7 million from the first quarter of 2024 primarily due to increases in other noninterest expense, data processing, and compensation and employee benefits of $1.0 million, $0.3 million and $0.3 million, respectively. The increase in other noninterest expense was due primarily to customer deposit costs while the increase in data processing was driven core banking system costs. The increase in compensation and employee benefits was primarily driven by medical benefits expenses, wages expense, and incentive expense due to improved performance. Partially offsetting these identified increases was a decline of $1.3 million in merger-related expenses.

    The Company’s effective tax rate was 22.7% in the first quarter of 2025 and the linked quarter. The effective income tax rate for the full year 2025 is expected to be 22-23%.

    BALANCE SHEET REVIEW

    Total assets were $6.25 billion at March 31, 2025, compared to $6.24 billion at December 31, 2024 and $6.75 billion at March 31, 2024. The increase from December 31, 2024 was primarily due to higher cash balances, partially offset by lower securities balances. Compared to March 31, 2024, the decrease was primarily driven by the sale of assets associated with our Florida banking operations in the second quarter of 2024 coupled with the pay-off of Bank Term Funding Program (“BTFP”) borrowings with proceeds received from securities sales transactions in the fourth quarter of 2024.

    Loans Held for Investment March 31, 2025   December 31, 2024   March 31, 2024  
    (Dollars in thousands) Balance   % of Total   Balance   % of Total   Balance   % of Total  
    Commercial and industrial $1,140,138   26.5 % $1,126,813   26.1 % $1,105,718   25.0 %
    Agricultural 131,409   3.1   119,051   2.8   113,029   2.6  
    Commercial real estate                        
    Construction and development 293,280   6.8   324,896   7.5   403,571   9.1  
    Farmland 180,633   4.2   182,460   4.2   184,109   4.2  
    Multifamily 421,204   9.8   423,157   9.8   409,504   9.3  
    Other 1,425,062   33.0   1,414,168   32.7   1,440,645   32.7  
    Total commercial real estate 2,320,179   53.8   2,344,681   54.2   2,437,829   55.3  
    Residential real estate                        
    One-to-four family first liens 471,688   11.0   477,150   11.1   495,408   11.2  
    One-to-four family junior liens 182,346   4.2   179,232   4.2   182,001   4.1  
    Total residential real estate 654,034   15.2   656,382   15.3   677,409   15.3  
    Consumer 58,424   1.4   68,700   1.6   80,661   1.8  
    Loans held for investment, net of unearned income $4,304,184   100.0 % $4,315,627   100.0 % $4,414,646   100.0 %
                             
    Total commitments to extend credit $1,080,300       $1,080,737       $1,230,612      

    Loans held for investment, net of unearned income, decreased $11.4 million, or 0.3%, to $4.30 billion from $4.32 billion at December 31, 2024, primarily due to the reclassification of $11.0 million of credit card receivables to loans held for sale in the first quarter of 2025. Management expects the credit card portfolio sale to close in the fourth quarter of 2025.

    Loans held for investment, net of unearned income, decreased $110.5 million, or 2.5%, to $4.30 billion from $4.41 billion at March 31, 2024. The decrease from the first quarter of 2024 was driven primarily by the sale of loans associated with our Florida banking operations in the second quarter of 2024, partially offset by organic loan growth and higher line of credit usage.

    Investment Securities March 31, 2025   December 31, 2024   March 31, 2024  
    (Dollars in thousands) Balance   % of Total   Balance   % of Total   Balance   % of Total  
    Available for sale $1,305,530   100.0 % $1,328,433   100.0 % $797,230   42.8 %
    Held to maturity —   — % —   — % 1,064,939   57.2 %
    Total investment securities $1,305,530       $1,328,433       $1,862,169      

    Investment securities at March 31, 2025 were $1.31 billion, decreasing $22.9 million from December 31, 2024 and decreasing $556.6 million from March 31, 2024. The decrease from the fourth quarter of 2024 was primarily due to principal cash flows received from scheduled payments, calls, and maturities. The decrease from the first quarter of 2024 stemmed primarily from the sale of debt securities in connection with a balance sheet repositioning, as well as principal cash flows received from scheduled payments, calls, and maturities. 

    Deposits March 31, 2025   December 31, 2024   March 31, 2024  
    (Dollars in thousands) Balance   % of Total   Balance   % of Total   Balance   % of Total  
    Noninterest bearing deposits $903,714   16.5 % $951,423   17.4 % $920,764   16.5 %
    Interest checking deposits 1,283,328   23.3   1,258,191   22.9   1,349,823   24.2  
    Money market deposits 1,002,066   18.3   1,053,988   19.2   1,122,717   20.1  
    Savings deposits 877,348   16.0   820,549   15.0   728,276   13.0  
    Time deposits of $250 and under 818,012   14.9   826,793   15.1   787,851   14.1  
    Total core deposits 4,884,468   89.0   4,910,944   89.6   4,909,431   87.9  
    Brokered time deposits 200,000   3.6   200,000   3.7   205,000   3.7  
    Time deposits over $250 404,674   7.4   367,038   6.7   470,805   8.4  
    Total deposits $5,489,142   100.0 % $5,477,982   100.0 % $5,585,236   100.0 %

    Total deposits increased $11.2 million, or 0.2%, to $5.49 billion, from $5.48 billion at December 31, 2024. Total deposits decreased $96.1 million, or 1.7%, from $5.59 billion at March 31, 2024, primarily due to the deposits transferred in the sale of our Florida banking operations, partially offset by organic deposit growth in our targeted metropolitan markets.

    Borrowed Funds March 31, 2025   December 31, 2024   March 31, 2024  
    (Dollars in thousands) Balance   % of Total   Balance   % of Total   Balance   % of Total  
    Short-term borrowings $1,482   1.3 % $3,186   2.7 % $422,988   77.6 %
    Long-term debt 111,398   98.7 % 113,376   97.3 % 122,066   22.4 %
    Total borrowed funds $112,880       $116,562       $545,054      

    Borrowed funds were $112.9 million at March 31, 2025, a decrease of $3.7 million from December 31, 2024 and a decrease of $432.2 million from March 31, 2024. The decrease compared to the linked quarter was due to lower customer repurchase agreement volumes and scheduled payments on long-term debt. The decrease compared to March 31, 2024 was primarily due to the pay-off of $405.0 million of BTFP borrowings and $13.0 million of a revolving credit facility, as well as scheduled payments on long-term debt.

    Capital March 31,   December 31,   March 31,
    (Dollars in thousands) 2025 (1)     2024       2024  
    Total shareholders’ equity $ 579,625     $ 559,696     $ 528,040  
    Accumulated other comprehensive loss   (63,098 )     (72,762 )     (60,804 )
    MidWestOneFinancial Group, Inc. Consolidated          
    Tier 1 leverage to average assets ratio   9.50 %     9.15 %     8.16 %
    Common equity tier 1 capital to risk-weighted assets ratio   10.97 %     10.73 %     8.98 %
    Tier 1 capital to risk-weighted assets ratio   11.84 %     11.59 %     9.75 %
    Total capital to risk-weighted assets ratio   14.34 %     14.07 %     11.97 %
    MidWestOneBank          
    Tier 1 leverage to average assets ratio   10.42 %     10.12 %     9.36 %
    Common equity tier 1 capital to risk-weighted assets ratio   13.02 %     12.86 %     11.20 %
    Tier 1 capital to risk-weighted assets ratio   13.02 %     12.86 %     11.20 %
    Total capital to risk-weighted assets ratio   14.21 %     14.02 %     12.25 %
    (1) Regulatory capital ratios for March 31, 2025 are preliminary          
               

    Total shareholders’ equity at March 31, 2025 increased $19.9 million from December 31, 2024, driven primarily by an increase in retained earnings and a decrease in accumulated other comprehensive loss. Total shareholders’ equity at March 31, 2025 increased $51.6 million from March 31, 2024, primarily due to increases in common stock and additional pain-in-capital stemming from the common equity capital raise in the third quarter of 2024, partially offset by a decrease in retained earnings.

    On April 22, 2025, the Board of Directors of the Company declared a cash dividend of $0.2425 per common share. The dividend is payable June 16, 2025, to shareholders of record at the close of business on June 2, 2025.

    No common shares were repurchased by the Company during the period December 31, 2024 through March 31, 2025 or for the subsequent period through April 24, 2025. The current share repurchase program allows for the repurchase of up to $15.0 million of the Company’s common shares. As of March 31, 2025, $15.0 million remained available under this program.

    CREDIT QUALITY REVIEW

    Credit Quality As of or For the Three Months Ended
    March 31,   December 31,   March 31,
    (Dollars in thousands)   2025       2024       2024  
    Credit loss expense related to loans $ 1,787     $ 1,891     $ 4,589  
    Net charge-offs   3,087       691       189  
    Allowance for credit losses   53,900       55,200       55,900  
    Pass $ 4,068,707     $ 4,056,361     $ 4,098,102  
    Special Mention   121,494       148,462       152,604  
    Classified   113,983       110,804       163,940  
    Criticized   235,477       259,266       316,544  
    Loans greater than 30 days past due and accruing $ 6,119     $ 9,378     $ 8,772  
    Nonperforming loans $ 17,470     $ 21,847     $ 29,267  
    Nonperforming assets   20,889       25,184       33,164  
    Net charge-off ratio(1)   0.29 %     0.06 %     0.02 %
    Classified loans ratio(2)   2.65 %     2.57 %     3.71 %
    Criticized loans ratio(3)   5.47 %     6.01 %     7.17 %
    Nonperforming loans ratio(4)   0.41 %     0.51 %     0.66 %
    Nonperforming assets ratio(5)   0.33 %     0.40 %     0.49 %
    Allowance for credit losses ratio(6)   1.25 %     1.28 %     1.27 %
    Allowance for credit losses to nonaccrual loans ratio(7)   309.47 %     254.32 %     197.53 %
    (1) Net charge-off ratio is calculated as annualized net charge-offs divided by the sum of average loans held for investment, net of unearned income and average loans held for sale, during the period.
    (2) Classified loans ratio is calculated as classified loans divided by loans held for investment, net of unearned income, at the end of the period.
    (3) Criticized loans ratio is calculated as criticized loans divided by loans held for investment, net of unearned income, at the end of the period.
    (4) Nonperforming loans ratio is calculated as nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period.
    (5) Nonperforming assets ratio is calculated as nonperforming assets divided by total assets at the end of the period.
    (6) Allowance for credit losses ratio is calculated as allowance for credit losses divided by loans held for investment, net of unearned income, at the end of the period.
    (7) Allowance for credit losses to nonaccrual loans ratio is calculated as allowance for credit losses divided by nonaccrual loans at the end of the period.
     

    Nonperforming loans and nonperforming assets ratios improved 10 bps and 7 bps, to 0.41% and 0.33%, respectively, compared to the linked quarter. In addition, special mention loan balances decreased $27.0 million, or 18%, while classified loan balances remained relatively stable with an increase of $3.2 million, or 3%. When compared to the same period of the prior year, the nonperforming loans and nonperforming asset ratios improved 25 bps and 16 bps, respectively, while the classified loan ratio improved 106 bps. Special mention loan balances decreased $31.1 million, or 20%. The net charge-off ratio increased 23 bps from the linked quarter and 27 bps from the same period in the prior year.

    As of March 31, 2025, the allowance for credit losses was $53.9 million and the allowance for credit losses ratio was 1.25%, compared with $55.2 million and 1.28%, respectively, at December 31, 2024. Credit loss expense of $1.7 million in the first quarter of 2025 primarily reflected additional reserve on pooled loans, offset by a reduction of $0.1 million in the reserve for unfunded loan commitments.

    Nonperforming Loans Roll Forward Nonaccrual   90+ Days Past Due
    & Still Accruing    		   Total
    (Dollars in thousands)    
    Balance at December 31, 2024 $21,705   $142   $21,847
    Loans placed on nonaccrual or 90+ days past due & still accruing 3,121   225   3,346
    Proceeds related to repayment or sale (4,158)   —   (4,158)
    Loans returned to accrual status or no longer past due (336)   (49)   (385)
    Charge-offs (2,774)   (259)   (3,033)
    Transfers to foreclosed assets (141)   —   (141)
    Transfer to nonaccrual —   (6)   (6)
    Balance at March 31, 2025 $17,417   $53   $17,470


    CONFERENCE CALL DETAILS

    The Company will host a conference call for investors at 11:00 a.m. CT on Friday, April 25, 2025. To participate, you may pre-register for this call utilizing the following link: https://www.netroadshow.com/events/login?show=29396e9f&confId=80376. After pre-registering for this event you will receive your access details via email. On the day of the call, you are also able to dial 1-833-470-1428 using an access code of 527448 at least fifteen minutes before the call start time. If you are unable to participate on the call, a replay will be available until July 24, 2025 by calling 1-866-813-9403 and using the replay access code of 162684. A transcript of the call will also be available on the Company’s web site (www.midwestonefinancial.com) within three business days of the call.

    ABOUT MIDWESTONE FINANCIAL GROUP, INC.

    MidWestOne Financial Group, Inc. is a financial holding company headquartered in Iowa City, Iowa. MidWestOne is the parent company of MidWestOne Bank, which operates banking offices in Iowa, Minnesota, Wisconsin, and Colorado. MidWestOne provides electronic delivery of financial services through its website, MidWestOne.bank. MidWestOne Financial Group, Inc. trades on the Nasdaq Global Select Market under the symbol “MOFG”.

    Cautionary Note Regarding Forward-Looking Statements

    This release contains certain “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our representatives may, from time to time, make written or oral statements that are “forward-looking” and provide information other than historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These factors include, among other things, the factors listed below. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “should,” “could,” “would,” “plans,” “goals,” “intend,” “project,” “estimate,” “forecast,” “may” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, these statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Additionally, we undertake no obligation to update any statement in light of new information or future events, except as required under federal securities law.

    Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following: (1) the effects of changes in interest rates, including on our net income and the value of our securities portfolio; (2) fluctuations in the value of our investment securities; (3) effects on the U.S. economy resulting from the implementation of proposed policies and executive orders, including the imposition of tariffs, changes in immigration policy, changes to regulatory or other governmental agencies, changes in foreign policy and tax regulations; (4) volatility of rate-sensitive deposits; (5) asset/liability matching risks and liquidity risks; (6) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds; (7) the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; (8) credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures and future monetary policies of the Federal Reserve in response thereto on economic conditions and our business, resulting in an increase in the allowance for credit losses, an increase in the credit loss expense, and a reduction in net earnings; (9) the sufficiency of the allowance for credit losses to absorb the amount of expected losses inherent in our existing loan portfolio; (10) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (11) credit risks and risks from concentrations (by type of borrower, collateral, geographic area and by industry) within our loan portfolio; (12) changes in the economic environment, competition, or other factors that may affect our ability to acquire loans or influence the anticipated growth rate of loans and deposits and the quality of the loan portfolio and loan and deposit pricing; (13) governmental monetary and fiscal policies; (14) new or revised general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business, including the risk of a recession; (15) the imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and value of the agricultural or other products of our borrowers; (16) war or terrorist activities, including ongoing conflicts in the Middle East and the Russian invasion of Ukraine, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets; (17) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, and including changes in interpretation or prioritization of such laws and regulations; (18) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (19) the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, financial technology companies, and other financial institutions operating in our markets or elsewhere or providing similar services; (20) changes in the business and economic conditions generally and in the financial services industry, and the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in prior bank failures; (21) the occurrence of fraudulent activity, breaches, or failures of our or our third party vendors’ information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (22) the ability to attract and retain key executives and employees experienced in banking and financial services; (23) our ability to adapt successfully to technological changes to compete effectively in the marketplace; (24) operational risks, including data processing system failures and fraud; (25) the costs, effects and outcomes of existing or future litigation or other legal proceedings and regulatory actions; (26) the risks of mergers or branch sales (including the sale of our Florida banking operations and the acquisition of Denver Bankshares, Inc.), including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions; (27) the economic impacts on the Company and its customers of climate change, natural disasters and exceptional weather occurrences, such as: tornadoes, floods and blizzards; and (28) other risk factors detailed from time to time in Securities and Exchange Commission filings made by the Company.

    MIDWESTONE FINANCIAL GROUP, INC.
    FIVE QUARTER CONSOLIDATED BALANCE SHEETS

      March 31,   December 31,   September 30,   June 30,   March 31,
    (In thousands)   2025       2024       2024       2024       2024  
    ASSETS                  
    Cash and due from banks $            68,545     $            71,803     $            72,173     $            66,228     $            68,430  
    Interest earning deposits in banks              182,360                  133,092                  129,695                    35,340                    29,328  
    Federal funds sold                       —                           —                           —                           —                            4  
    Total cash and cash equivalents              250,905                  204,895                  201,868                  101,568                    97,762  
    Debt securities available for sale at fair value           1,305,530               1,328,433               1,623,104                  771,034                  797,230  
    Held to maturity securities at amortized cost                       —                           —                           —               1,053,080               1,064,939  
    Total securities           1,305,530               1,328,433               1,623,104               1,824,114               1,862,169  
    Loans held for sale                13,836                         749                      3,283                      2,850                      2,329  
    Gross loans held for investment           4,315,546               4,328,413               4,344,559               4,304,619               4,433,258  
    Unearned income, net              (11,362 )                (12,786 )                (15,803 )                (17,387 )                (18,612 )
    Loans held for investment, net of unearned income           4,304,184               4,315,627               4,328,756               4,287,232               4,414,646  
    Allowance for credit losses              (53,900 )                (55,200 )                (54,000 )                (53,900 )                (55,900 )
    Total loans held for investment, net           4,250,284               4,260,427               4,274,756               4,233,332               4,358,746  
    Premises and equipment, net                90,031                    90,851                    90,750                    91,793                    95,986  
    Goodwill                69,788                    69,788                    69,788                    69,388                    71,118  
    Other intangible assets, net                23,611                    25,019                    26,469                    27,939                    29,531  
    Foreclosed assets, net                  3,419                      3,337                      3,583                      6,053                      3,897  
    Other assets              246,990                  252,830                  258,881                  224,621                  226,477  
    Total assets $       6,254,394     $       6,236,329     $       6,552,482     $       6,581,658     $       6,748,015  
    LIABILITIES                       
    Noninterest bearing deposits $          903,714     $          951,423     $          917,715     $          882,472     $          920,764  
    Interest bearing deposits           4,585,428               4,526,559               4,451,012               4,529,947               4,664,472  
    Total deposits           5,489,142               5,477,982               5,368,727               5,412,419               5,585,236  
    Short-term borrowings                  1,482                      3,186                  410,630                  414,684                  422,988  
    Long-term debt              111,398                  113,376                  115,051                  114,839                  122,066  
    Other liabilities                72,747                    82,089                    95,836                    96,430                    89,685  
    Total liabilities           5,674,769               5,676,633               5,990,244               6,038,372               6,219,975  
    SHAREHOLDERS’ EQUITY                       
    Common stock                21,580                    21,580                    21,580                    16,581                    16,581  
    Additional paid-in capital              414,258                  414,987                  414,965                  300,831                  300,845  
    Retained earnings              227,790                  217,776                  206,490                  306,030                  294,066  
    Treasury stock              (20,905 )                (21,885 )                (21,955 )                (22,021 )                (22,648 )
    Accumulated other comprehensive loss              (63,098 )                (72,762 )                (58,842 )                (58,135 )                (60,804 )
    Total shareholders’ equity              579,625                  559,696                  562,238                  543,286                  528,040  
    Total liabilities and shareholders’ equity $       6,254,394     $       6,236,329     $       6,552,482     $       6,581,658     $       6,748,015  
                                           

    MIDWESTONE FINANCIAL GROUP, INC.
    FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME

      Three Months Ended
      March 31,   December 31,   September 30,   June 30,   March 31,
    (In thousands, except per share data)   2025     2024     2024       2024     2024
    Interest income                  
    Loans, including fees $            59,462   $            62,458   $            62,521     $            61,643   $            57,947
    Taxable investment securities                13,327                  11,320                   8,779                     9,228                   9,460
    Tax-exempt investment securities                    703                      728                   1,611                     1,663                   1,710
    Other                 1,247                   3,761                      785                        242                      418
    Total interest income                74,739                  78,267                  73,696                    72,776                  69,535
    Interest expense                  
    Deposits                25,484                  27,324                  29,117                    28,942                  27,726
    Short-term borrowings                      25                      115                   5,043                     5,409                   4,975
    Long-term debt                 1,791                   1,890                   2,015                     2,078                   2,103
    Total interest expense                27,300                  29,329                  36,175                    36,429                  34,804
    Net interest income                47,439                  48,938                  37,521                    36,347                  34,731
    Credit loss expense                 1,687                   1,291                   1,535                     1,267                   4,689
    Net interest income after credit loss expense                45,752                  47,647                  35,986                    35,080                  30,042
    Noninterest income                  
    Investment services and trust activities                 3,544                   3,779                   3,410                     3,504                   3,503
    Service charges and fees                 2,131                   2,159                   2,170                     2,156                   2,144
    Card revenue                 1,744                   1,833                   1,935                     1,907                   1,943
    Loan revenue                 1,194                   1,841                      760                     1,525                      856
    Bank-owned life insurance                 1,057                      719                      879                        668                      660
    Investment securities gains (losses), net                      33                      161              (140,182 )                        33                        36
    Other                    433                      345                      640                    11,761                      608
    Total noninterest income (loss)                10,136                  10,837              (130,388 )                  21,554                   9,750
    Noninterest expense                  
    Compensation and employee benefits                21,212                  20,684                  19,943                    20,985                  20,930
    Occupancy expense of premises, net                 2,588                   2,772                   2,443                     2,435                   2,813
    Equipment                 2,426                   2,688                   2,486                     2,530                   2,600
    Legal and professional                 2,226                   2,534                   2,261                     2,253                   2,059
    Data processing                 1,698                   1,719                   1,580                     1,645                   1,360
    Marketing                    552                      793                      619                        636                      598
    Amortization of intangibles                 1,408                   1,449                   1,470                     1,593                   1,637
    FDIC insurance                    917                      980                      923                     1,051                      942
    Communications                    159                      154                      159                        191                      196
    Foreclosed assets, net                      74                        56                      330                        138                      358
    Other                 3,033                   3,543                   3,584                     2,304                   2,072
    Total noninterest expense                36,293                  37,372                  35,798                    35,761                  35,565
    Income (loss) before income tax expense                19,595                  21,112              (130,200 )                  20,873                   4,227
    Income tax expense (benefit)                 4,457                   4,782                (34,493 )                   5,054                      958
    Net income (loss) $            15,138   $            16,330   $          (95,707 )   $            15,819   $             3,269
                       
    Earnings (loss) per common share                  
    Basic $               0.73   $               0.79   $              (6.05 )   $               1.00   $               0.21
    Diluted $               0.73   $               0.78   $              (6.05 )   $               1.00   $               0.21
    Weighted average basic common shares outstanding                20,797                  20,776                  15,829                    15,763                  15,723
    Weighted average diluted common shares outstanding                20,849                  20,851                  15,829                    15,781                  15,774
    Dividends paid per common share $            0.2425   $            0.2425   $            0.2425     $            0.2425   $            0.2425
                                   

    MIDWESTONE FINANCIAL GROUP, INC.
    FINANCIAL STATISTICS

      As of or for the Three Months Ended
      March 31,   December 31,   March 31,
    (Dollars in thousands, except per share amounts)   2025       2024       2024  
    Earnings:          
    Net interest income $ 47,439     $ 48,938     $ 34,731  
    Noninterest income   10,136       10,837       9,750  
    Total revenue, net of interest expense   57,575       59,775       44,481  
    Credit loss expense   1,687       1,291       4,689  
    Noninterest expense   36,293       37,372       35,565  
    Income before income tax expense   19,595       21,112       4,227  
    Income tax expense   4,457       4,782       958  
    Net income $ 15,138     $ 16,330     $ 3,269  
    Adjusted earnings(1) $ 15,301     $ 16,112     $ 4,504  
    Per Share Data:          
    Diluted earnings $ 0.73     $ 0.78     $ 0.21  
    Adjusted earnings(1)   0.73       0.77       0.29  
    Book value   27.85       26.94       33.53  
    Tangible book value(1)   23.36       22.37       27.14  
    Ending Balance Sheet:          
    Total assets $ 6,254,394     $ 6,236,329     $ 6,748,015  
    Loans held for investment, net of unearned income   4,304,184       4,315,627       4,414,646  
    Total securities   1,305,530       1,328,433       1,862,169  
    Total deposits   5,489,142       5,477,982       5,585,236  
    Short-term borrowings   1,482       3,186       422,988  
    Long-term debt   111,398       113,376       122,066  
    Total shareholders’ equity   579,625       559,696       528,040  
    Average Balance Sheet:          
    Average total assets $ 6,168,546     $ 6,279,975     $ 6,635,379  
    Average total loans   4,290,710       4,307,583       4,298,216  
    Average total deposits   5,398,819       5,464,900       5,481,114  
    Financial Ratios:          
    Return on average assets   1.00 %     1.03 %     0.20 %
    Return on average equity   10.74 %     11.53 %     2.49 %
    Return on average tangible equity(1)   13.75 %     14.80 %     4.18 %
    Efficiency ratio(1)   59.38 %     59.06 %     71.28 %
    Net interest margin, tax equivalent(1)   3.44 %     3.43 %     2.33 %
    Loans to deposits ratio   78.41 %     78.78 %     79.04 %
    CET1 Ratio   10.97 %     10.73 %     8.98 %
    Common equity ratio   9.27 %     8.97 %     7.83 %
    Tangible common equity ratio(1)   7.89 %     7.57 %     6.43 %
    Credit Risk Profile:          
    Total nonperforming loans $ 17,470     $ 21,847     $ 29,267  
    Nonperforming loans ratio   0.41 %     0.51 %     0.66 %
    Total nonperforming assets $ 20,889     $ 25,184     $ 33,164  
    Nonperforming assets ratio   0.33 %     0.40 %     0.49 %
    Net charge-offs $ 3,087     $ 691     $ 189  
    Net charge-off ratio   0.29 %     0.06 %     0.02 %
    Allowance for credit losses $ 53,900     $ 55,200     $ 55,900  
    Allowance for credit losses ratio   1.25 %     1.28 %     1.27 %
    Allowance for credit losses to nonaccrual ratio   309.47 %     254.32 %     197.53 %
               
    (1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.
     

    MIDWESTONE FINANCIAL GROUP, INC.
    AVERAGE BALANCE SHEET AND YIELD ANALYSIS

      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
    (Dollars in thousands) Average
    Balance    		   Interest
    Income/
    Expense    		   Average
    Yield/
    Cost    		   Average
    Balance    		   Interest
    Income/
    Expense    		   Average
    Yield/
    Cost    		   Average Balance   Interest
    Income/
    Expense    		   Average
    Yield/
    Cost
    ASSETS                                  
    Loans, including fees (1)(2)(3) $4,290,710   $60,443   5.71%   $4,307,583   $63,443   5.86%   $4,298,216   $58,867   5.51%
    Taxable investment securities 1,207,844   13,327   4.47%   1,080,716   11,320   4.17%   1,557,603   9,460   2.44%
    Tax-exempt investment securities (2)(4) 105,563   865   3.32%   109,183   896   3.26%   328,736   2,097   2.57%
    Total securities held for investment(2) 1,313,407   14,192   4.38%   1,189,899   12,216   4.08%   1,886,339   11,557   2.46%
    Other 124,133   1,247   4.07%   309,904   3,761   4.83%   30,605   418   5.49%
    Total interest earning assets(2) $5,728,250   $75,882   5.37%   $5,807,386   $79,420   5.44%   $6,215,160   $70,842   4.58%
    Other assets 440,296           472,589           420,219        
    Total assets $6,168,546           $6,279,975           $6,635,379        
    LIABILITIES AND SHAREHOLDERS’ EQUITY                                  
    Interest checking deposits $1,240,586   $2,127   0.70%   $1,252,481   $2,205   0.70%   $1,301,470   $2,890   0.89%
    Money market deposits 1,002,743   6,333   2.56%   1,046,571   7,197   2.74%   1,102,543   8,065   2.94%
    Savings deposits 835,731   3,057   1.48%   799,931   3,158   1.57%   694,143   2,047   1.19%
    Time deposits 1,397,595   13,967   4.05%   1,410,542   14,764   4.16%   1,446,981   14,724   4.09%
    Total interest bearing deposits 4,476,655   25,484   2.31%   4,509,525   27,324   2.41%   4,545,137   27,726   2.45%
    Securities sold under agreements to repurchase 2,705   5   0.75%   3,640   8   0.87%   5,330   11   0.83%
    Other short-term borrowings —   20   —%   6,465   107   6.58%   409,525   4,964   4.88%
    Total short-term borrowings 2,705   25   3.75%   10,105   115   4.53%   414,855   4,975   4.82%
    Long-term debt 113,364   1,791   6.41%   116,018   1,890   6.48%   123,266   2,103   6.86%
    Total borrowed funds 116,069   1,816   6.35%   126,123   2,005   6.32%   538,121   7,078   5.29%
    Total interest bearing liabilities $4,592,724   $27,300   2.41%   $4,635,648   $29,329   2.52%   $5,083,258   $34,804   2.75%
    Noninterest bearing deposits 922,164           955,375           935,977        
    Other liabilities 82,280           125,536           88,611        
    Shareholders’ equity 571,378           563,416           527,533        
    Total liabilities and shareholders’ equity $6,168,546           $6,279,975           $6,635,379        
    Net interest income(2)     $48,582           $50,091           $36,038    
    Net interest spread(2)         2.96%           2.92%           1.83%
    Net interest margin(2)         3.44%           3.43%           2.33%
                                       
    Total deposits(5) $5,398,819   $25,484   1.91%   $5,464,900   $27,324   1.99%   $5,481,114   $27,726   2.03%
    Cost of funds(6)         2.01%           2.09%           2.33%
    (1) Average balance includes nonaccrual loans.
    (2) Tax equivalent. The federal statutory tax rate utilized was 21%.
    (3) Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $256 thousand, $456 thousand, and $237 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. Loan purchase discount accretion was $1.2 million, $2.5 million, and $1.2 million for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. Tax equivalent adjustments were $981 thousand, $985 thousand, and $920 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The federal statutory tax rate utilized was 21%.
    (4) Interest income includes tax equivalent adjustments of $162 thousand, $168 thousand, and $387 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The federal statutory tax rate utilized was 21%.
    (5) Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits.
    (6) Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds.
       

    Non-GAAP Measures

    This earnings release contains non-GAAP measures for tangible common equity, tangible book value per share, tangible common equity ratio, return on average tangible equity, net interest margin (tax equivalent), core net interest margin, loan yield (tax equivalent), core yield on loans, efficiency ratio, adjusted earnings and adjusted earnings per share. Management believes these measures provide investors with useful information regarding the Company’s profitability, financial condition and capital adequacy, consistent with how management evaluates the Company’s financial performance. The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP measure.

    Tangible Common Equity/Tangible Book Value                    
    per Share/Tangible Common Equity Ratio   March 31,   December 31,   September 30,   June 30,   March 31,
    (Dollars in thousands, except per share data)     2025       2024       2024       2024       2024  
    Total shareholders’ equity   $ 579,625     $ 559,696     $ 562,238     $ 543,286     $ 528,040  
    Intangible assets, net     (93,399 )     (94,807 )     (96,257 )     (97,327 )     (100,649 )
    Tangible common equity   $ 486,226     $ 464,889     $ 465,981     $ 445,959     $ 427,391  
                         
    Total assets   $ 6,254,394     $ 6,236,329     $ 6,552,482     $ 6,581,658     $ 6,748,015  
    Intangible assets, net     (93,399 )     (94,807 )     (96,257 )     (97,327 )     (100,649 )
    Tangible assets   $ 6,160,995     $ 6,141,522     $ 6,456,225     $ 6,484,331     $ 6,647,366  
                         
    Book value per share   $ 27.85     $ 26.94     $ 27.06     $ 34.44     $ 33.53  
    Tangible book value per share(1)   $ 23.36     $ 22.37     $ 22.43     $ 28.27     $ 27.14  
    Shares outstanding     20,815,715       20,777,485       20,774,919       15,773,468       15,750,471  
                         
    Common equity ratio     9.27 %     8.97 %     8.58 %     8.25 %     7.83 %
    Tangible common equity ratio(2)     7.89 %     7.57 %     7.22 %     6.88 %     6.43 %
                                             

    (1) Tangible common equity divided by shares outstanding. 
    (2) Tangible common equity divided by tangible assets.  

        Three Months Ended
    Return on Average Tangible Equity   March 31,   December 31,   March 31,
    (Dollars in thousands)     2025       2024       2024  
    Net income   $ 15,138     $ 16,330     $ 3,269  
    Intangible amortization, net of tax(1)     1,047       1,075       1,228  
    Tangible net income   $ 16,185     $ 17,405     $ 4,497  
                 
    Average shareholders’ equity   $ 571,378     $ 563,416     $ 527,533  
    Average intangible assets, net     (94,169 )     (95,498 )     (95,296 )
    Average tangible equity   $ 477,209     $ 467,918     $ 432,237  
                 
    Return on average equity     10.74 %     11.53 %     2.49 %
    Return on average tangible equity(2)     13.75 %     14.80 %     4.18 %
                             

    (1) The income tax rate utilized was the blended marginal tax rate.  
    (2) Annualized tangible net income divided by average tangible equity.

    Net Interest Margin, Tax Equivalent/
    Core Net Interest Margin    		   Three Months Ended
      March 31,   December 31,   March 31,
    (Dollars in thousands)     2025       2024       2024  
    Net interest income   $ 47,439     $ 48,938     $ 34,731  
    Tax equivalent adjustments:            
    Loans(1)     981       985       920  
    Securities(1)     162       168       387  
    Net interest income, tax equivalent   $ 48,582     $ 50,091     $ 36,038  
    Loan purchase discount accretion     (1,166 )     (2,496 )     (1,152 )
    Core net interest income   $ 47,416     $ 47,595     $ 34,886  
                 
    Net interest margin     3.36 %     3.35 %     2.25 %
    Net interest margin, tax equivalent(2)     3.44 %     3.43 %     2.33 %
    Core net interest margin(3)     3.36 %     3.26 %     2.26 %
    Average interest earning assets   $ 5,728,250     $ 5,807,386     $ 6,215,160  
                             

    (1) The federal statutory tax rate utilized was 21%.  
    (2) Annualized tax equivalent net interest income divided by average interest earning assets.  
    (3) Annualized core net interest income divided by average interest earning assets.   

          Three Months Ended
    Loan Yield, Tax Equivalent / Core Yield on Loans   March 31,   December 31,   March 31,
    (Dollars in thousands)     2025       2024       2024  
    Loan interest income, including fees     $ 59,462     $ 62,458     $ 57,947  
    Tax equivalent adjustment(1)       981       985       920  
    Tax equivalent loan interest income     $ 60,443     $ 63,443     $ 58,867  
    Loan purchase discount accretion       (1,166 )     (2,496 )     (1,152 )
    Core loan interest income     $ 59,277     $ 60,947     $ 57,715  
                   
    Yield on loans       5.62 %     5.77 %     5.42 %
    Yield on loans, tax equivalent(2)       5.71 %     5.86 %     5.51 %
    Core yield on loans(3)       5.60 %     5.63 %     5.40 %
    Average loans     $ 4,290,710     $ 4,307,583     $ 4,298,216  
                               

    (1) The federal statutory tax rate utilized was 21%.  
    (2) Annualized tax equivalent loan interest income divided by average loans.  
    (3) Annualized core loan interest income divided by average loans.  

          Three Months Ended
    Efficiency Ratio   March 31,   December 31,   March 31,
    (Dollars in thousands)     2025       2024       2024  
    Total noninterest expense     $ 36,293     $ 37,372     $ 35,565  
    Amortization of intangibles       (1,408 )     (1,449 )     (1,637 )
    Merger-related expenses       (40 )     (31 )     (1,314 )
    Noninterest expense used for efficiency ratio     $ 34,845     $ 35,892     $ 32,614  
                   
    Net interest income, tax equivalent(1)     $ 48,582     $ 50,091     $ 36,038  
    Plus: Noninterest income       10,136       10,837       9,750  
    Less: Investment securities gains, net       33       161       36  
    Net revenues used for efficiency ratio     $ 58,685     $ 60,767     $ 45,752  
                   
    Efficiency ratio (2)       59.38 %     59.06 %     71.28 %
                               

    (1) The federal statutory tax rate utilized was 21%.    
    (2) Noninterest expense adjusted for amortization of intangibles and merger-related expenses divided by the sum of tax equivalent net interest income, noninterest income and net investment securities gains.  

          Three Months Ended
    Adjusted Earnings   March 31,   December 31,   March 31,
    (Dollars in thousands, except per share data)     2025       2024     2024  
    Net income     $         15,138     $         16,330   $           3,269  
    Less: Investment securities gains, net of tax(1)                        25                      119                      27  
    Less: Mortgage servicing rights (loss) gain, net of tax(1)                     (158 )                    122                   (276 )
    Plus: Merger-related expenses, net of tax(1)                        30                        23                    986  
    Adjusted earnings     $         15,301     $         16,112   $           4,504  
                   
    Weighted average diluted common shares outstanding                 20,849                 20,851               15,774  
                   
    Earnings per common share – diluted     $             0.73     $             0.78   $             0.21  
    Adjusted earnings per common share(2)     $             0.73     $             0.77   $             0.29  
                             

    (1) The income tax rate utilized was the blended marginal tax rate.      
    (2) Adjusted earnings divided by weighted average diluted common shares outstanding.  

    Category: Earnings

    This news release may be downloaded from Corporate Profile | MidWestOne Financial Group, Inc.

    Source: MidWestOne Financial Group, Inc.

    Industry: Banks

    Contact:

      Charles N. Reeves Barry S. Ray
      Chief Executive Officer Chief Financial Officer
      319.356.5800   319.356.5800
         

    The MIL Network –

  • MIL-OSI: South Plains Financial, Inc. Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    LUBBOCK, Texas, April 24, 2025 (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 March 31, 2025.

    First Quarter 2025 Highlights

    • Net income for the first quarter of 2025 was $12.3 million, compared to $16.5 million for the fourth quarter of 2024 and $10.9 million for the first quarter of 2024.
    • Diluted earnings per share for the first quarter of 2025 was $0.72, compared to $0.96 for the fourth quarter of 2024 and $0.64 for the first quarter of 2024.
    • Average cost of deposits for the first quarter of 2025 was 219 basis points, compared to 229 basis points for the fourth quarter of 2024 and 241 basis points for the first quarter of 2024.
    • Net interest margin, on a tax-equivalent basis, was 3.81% for the first quarter of 2025, compared to 3.75% for the fourth quarter of 2024 and 3.56% for the first quarter of 2024.
    • Nonperforming assets to total assets were 0.16% at March 31, 2025, compared to 0.58% at December 31, 2024 and 0.10% at March 31, 2024.
    • Return on average assets for the first quarter of 2025 was 1.16%, compared to 1.53% for the fourth quarter of 2024 and 1.04% for the first quarter of 2024.
    • Tangible book value (non-GAAP) per share was $26.05 as of March 31, 2025, compared to $25.40 as of December 31, 2024 and $23.56 as of March 31, 2024.
    • The consolidated total risk-based capital ratio, common equity tier 1 risk-based capital ratio, and tier 1 leverage ratio at March 31, 2025 were 17.93%, 13.59%, and 12.04%, respectively.

    Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “We delivered strong first quarter results highlighted by solid deposit growth, healthy margin expansion as our cost of funds continued to improve, and loan growth that was in line with our expectations. Additionally, the credit quality of our loan portfolio continued to strengthen in the quarter which is a testament to our conservative culture and proactive approach to managing credit. While the outlook is uncertain, we believe that we are in an advantageous position relative to our peers and are actively looking to expand in both our metropolitan and rural markets. We have the liquidity, capital, and team to take advantage of opportunities that come our way. While the economy may slow and businesses may reduce their risk appetites, we will be ready to meet the needs of our customers in these uncertain times. We will also continue to add experienced lenders who fit our culture and want to bring their customers to a better, more stable bank. However, we will maintain our conservative credit culture and will never sacrifice credit quality for growth as we work to maintain the strong credit quality of our loan portfolio. While we see many opportunities to continue growing the Bank, we believe our share price does not reflect the value that we are creating. As a result, we spent $8.3 million to repurchase 250,000 shares in the first quarter, leaving approximately $7 million under our previously announced share repurchase program.”

    Results of Operations, Quarter Ended March 31, 2025

    Net Interest Income

    Net interest income was $38.5 million for the first quarter of 2025, compared to $38.5 million for the fourth quarter of 2024 and $35.4 million for the first quarter of 2024. Net interest margin, calculated on a tax-equivalent basis, was 3.81% for the first quarter of 2025, compared to 3.75% for the fourth quarter of 2024 and 3.56% for the first quarter of 2024. The average yield on loans was 6.67% for the first quarter of 2025, compared to 6.69% for the fourth quarter of 2024 and 6.53% for the first quarter of 2024. The average cost of deposits was 219 basis points for the first quarter of 2025, which is 10 basis points lower than the fourth quarter of 2024 and 22 basis points lower than the first quarter of 2024.

    Interest income was $59.9 million for the first quarter of 2025, compared to $61.3 million for the fourth quarter of 2024 and $58.7 million for the first quarter of 2024. Interest income decreased $1.4 million in the first quarter of 2025 from the fourth quarter of 2024, which was primarily comprised of a decrease of $692 thousand in loan interest income and a decrease of $408 thousand in interest income on other earning assets. The decline in interest income was due primarily to fewer days in the first quarter as compared to the fourth quarter of 2024. Interest income increased $1.2 million in the first quarter of 2025 compared to the first quarter of 2024. This increase was primarily due to an increase of average loans of $60.0 million and higher loan interest rates during the period, resulting in growth of $1.6 million in loan interest income.

    Interest expense was $21.4 million for the first quarter of 2025, compared to $22.8 million for the fourth quarter of 2024 and $23.4 million for the first quarter of 2024. Interest expense decreased $1.4 million compared to the fourth quarter of 2024 and decreased $2.0 million compared to the first quarter of 2024. The $1.4 million decrease was primarily as a result of a 19 basis point decline in the cost of interest-bearing deposits and fewer days in the quarter, partially offset by an increase of $50.0 million in average interest-bearing deposits in the first quarter of 2025 as compared to the fourth quarter of 2024. The $2.0 million decrease was primarily as a result of a 34 basis point decline in the cost of interest-bearing deposits, partially offset by an increase of $83.4 million in average interest-bearing deposits in the first quarter of 2025 as compared to the first quarter of 2024.

    Noninterest Income and Noninterest Expense

    Noninterest income was $10.6 million for the first quarter of 2025, compared to $13.3 million for the fourth quarter of 2024 and $11.4 million for the first quarter of 2024. The decrease from the fourth quarter of 2024 was primarily due to a decrease of $2.8 million in mortgage banking revenues, mainly as a result of a decrease of $3.0 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value decreased in the first quarter of 2025. The decrease in noninterest income for the first quarter of 2025 as compared to the first quarter of 2024 was primarily due to a decrease of $1.8 million in mortgage banking activities revenue mainly from a decrease of $1.6 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value decreased in the first quarter of 2025. This decrease in mortgage banking activities revenue was partially offset by growth in service charges on deposits revenue and bank card services and interchange revenue.

    Noninterest expense was $33.0 million for the first quarter of 2025, compared to $29.9 million for the fourth quarter of 2024 and $31.9 million for the first quarter of 2024. The $3.1 million increase from the fourth quarter of 2024 was largely the result of an increase of $2.1 million in personnel expenses, primarily from annual salary adjustments, increased health insurance costs as the fourth quarter of 2024 included annual rebates received, and increased annual incentive compensation expense. There were also increases in net occupancy expense, professional service expenses, and the ineffectiveness related to fair value hedges on municipal securities. The increase in noninterest expense for the first quarter of 2025 as compared to the first quarter of 2024 was largely the result of an increase of $453 thousand in personnel expenses, largely a result of annual salary adjustments.

    Loan Portfolio and Composition

    Loans held for investment were $3.08 billion as of March 31, 2025, compared to $3.06 billion as of December 31, 2024 and $3.01 billion as of March 31, 2024. The increase of $20.8 million, or 2.7% annualized, during the first quarter of 2025 as compared to the fourth quarter of 2024 occurred primarily as a result of organic loan growth experienced in commercial owner-occupied real estate loans and commercial goods and services loans, partially offset by a seasonal decrease in agricultural production loans. As of March 31, 2025, loans held for investment increased $64.1 million, or 2.1%, from March 31, 2024, primarily attributable to organic loan growth, occurring broadly across the real estate and commercial loan segments, partially offset by decreases in auto loans and other consumer loans.

    Deposits and Borrowings

    Deposits totaled $3.79 billion as of March 31, 2025, compared to $3.62 billion as of December 31, 2024 and $3.64 billion as of March 31, 2024. Deposits increased by $171.6 million, or 4.7%, in the first quarter of 2025 from December 31, 2024. Deposits increased by $153.9 million, or 4.2%, at March 31, 2025 as compared to March 31, 2024. Noninterest-bearing deposits were $966.5 million as of March 31, 2025, compared to $935.5 million as of December 31, 2024 and $974.2 million as of March 31, 2024. Noninterest-bearing deposits represented 25.5% of total deposits as of March 31, 2025. The quarterly change in total deposits was mainly due to a seasonal increase of $70.2 million in public fund deposits and strong organic growth in retail and commercial deposits. The year-over-year increase in total deposits was primarily the result of continued organic growth in retail and commercial deposits.

    Asset Quality

    The Company recorded a provision for credit losses in the first quarter of 2025 of $420 thousand, compared to $1.2 million in the fourth quarter of 2024 and $830 thousand in the first quarter of 2024. The provision during the first quarter of 2025 was largely attributable to net charge-off activity and increased loan balances, partially offset by improved credit quality as noted below in the nonperforming assets to total assets ratio.

    The ratio of allowance for credit losses to loans held for investment was 1.40% as of March 31, 2025, compared to 1.42% as of December 31, 2024 and 1.40% as of March 31, 2024.

    The ratio of nonperforming assets to total assets was 0.16% as of March 31, 2025, compared to 0.58% as of December 31, 2024 and 0.10% as of March 31, 2024. A $19.0 million credit was placed back on accrual status at the end of the first quarter of 2025, based on sustained payment performance and improved credit structure. This credit was repaid in full subsequent to March 31, 2025. Annualized net charge-offs were 0.07% for the first quarter of 2025, compared to 0.11% for the fourth quarter of 2024 and 0.13% for the first quarter of 2024.

    Capital

    Book value per share increased to $27.33 at March 31, 2025, compared to $26.67 at December 31, 2024. The change was primarily driven by $9.8 million of net income after dividends paid and by an increase in accumulated other comprehensive income of $2.7 million, partially offset by stock repurchases of $8.3 million. The tangible common equity to tangible assets ratio (non-GAAP) decreased 28 basis points to 9.64% in the first quarter of 2025, largely due to growth of $173.0 million in tangible assets.

    Conference Call

    South Plains will host a conference call to discuss its first quarter 2025 financial results today, April 24, 2025, 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 13752910. The replay will be available until May 8, 2025.

    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 uncertainty in the banking industry as a whole; 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 a continuation of the elevated interest rate environment or further reductions in interest rates and a resulting decline in net interest income; the lingering inflationary pressures, and the risk of the resurgence of elevated levels of inflation, 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; adverse changes in customer spending and savings habits; declines in commercial real estate values and prices; a deterioration of the credit rating for U.S. long-term sovereign debt or 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, including as a result of changes in U.S. presidential administrations or Congress; the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts and the resulting impact on the Company and its customers; 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 costs related to the 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
      March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Selected Income Statement Data:                            
    Interest income $ 59,922     $ 61,324     $ 61,640     $ 59,208     $ 58,727  
    Interest expense   21,395       22,776       24,346       23,320       23,359  
    Net interest income   38,527       38,548       37,294       35,888       35,368  
    Provision for credit losses   420       1,200       495       1,775       830  
    Noninterest income   10,625       13,319       10,635       12,709       11,409  
    Noninterest expense   33,030       29,948       33,128       32,572       31,930  
    Income tax expense   3,408       4,222       3,094       3,116       3,143  
    Net income   12,294       16,497       11,212       11,134       10,874  
    Per Share Data (Common Stock):                            
    Net earnings, basic $ 0.75     $ 1.01     $ 0.68     $ 0.68     $ 0.66  
    Net earnings, diluted   0.72       0.96       0.66       0.66       0.64  
    Cash dividends declared and paid   0.15       0.15       0.14       0.14       0.13  
    Book value   27.33       26.67       27.04       25.45       24.87  
    Tangible book value (non-GAAP)   26.05       25.40       25.75       24.15       23.56  
    Weighted average shares outstanding, basic   16,415,862       16,400,361       16,386,079       16,425,360       16,429,919  
    Weighted average shares outstanding, dilutive   17,065,599       17,161,646       17,056,959       16,932,077       16,938,857  
    Shares outstanding at end of period   16,235,647       16,455,826       16,386,627       16,424,021       16,431,755  
    Selected Period End Balance Sheet Data:                            
    Cash and cash equivalents $ 536,300     $ 359,082     $ 471,167     $ 298,006     $ 371,939  
    Investment securities   571,527       577,240       606,889       591,031       599,869  
    Total loans held for investment   3,075,860       3,055,054       3,037,375       3,094,273       3,011,799  
    Allowance for credit losses   42,968       43,237       42,886       43,173       42,174  
    Total assets   4,405,209       4,232,239       4,337,659       4,220,936       4,218,993  
    Interest-bearing deposits   2,826,055       2,685,366       2,720,880       2,672,948       2,664,397  
    Noninterest-bearing deposits   966,464       935,510       998,480       951,565       974,174  
    Total deposits   3,792,519       3,620,876       3,719,360       3,624,513       3,638,571  
    Borrowings   110,400       110,354       110,307       110,261       110,214  
    Total stockholders’ equity   443,743       438,949       443,122       417,985       408,712  
    Summary Performance Ratios:                            
    Return on average assets (annualized)   1.16 %     1.53 %     1.05 %     1.07 %     1.04 %
    Return on average equity (annualized)   11.30 %     14.88 %     10.36 %     10.83 %     10.72 %
    Net interest margin(1)   3.81 %     3.75 %     3.65 %     3.63 %     3.56 %
    Yield on loans   6.67 %     6.69 %     6.68 %     6.60 %     6.53 %
    Cost of interest-bearing deposits   2.93 %     3.12 %     3.36 %     3.33 %     3.27 %
    Efficiency ratio   66.90 %     57.50 %     68.80 %     66.72 %     67.94 %
    Summary Credit Quality Data:                            
    Nonperforming loans $ 6,467     $ 24,023     $ 24,693     $ 23,452     $ 3,380  
    Nonperforming loans to total loans held for investment   0.21 %     0.79 %     0.81 %     0.76 %     0.11 %
    Other real estate owned $ 600     $ 530     $ 973     $ 755     $ 862  
    Nonperforming assets to total assets   0.16 %     0.58 %     0.59 %     0.57 %     0.10 %
    Allowance for credit losses to total loans held for investment   1.40 %     1.42 %     1.41 %     1.40 %     1.40 %
    Net charge-offs to average loans outstanding (annualized)   0.07 %     0.11 %     0.11 %     0.10 %     0.13 %
      As of and for the quarter ended
      March 31
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Capital Ratios:                            
    Total stockholders’ equity to total assets   10.07 %     10.37 %     10.22 %     9.90 %     9.69 %
    Tangible common equity to tangible assets (non-GAAP)   9.64 %     9.92 %     9.77 %     9.44 %     9.22 %
    Common equity tier 1 to risk-weighted assets   13.59 %     13.53 %     13.25 %     12.61 %     12.67 %
    Tier 1 capital to average assets   12.04 %     12.04 %     11.76 %     11.81 %     11.51 %
    Total capital to risk-weighted assets   17.93 %     17.86 %     17.61 %     16.86 %     17.00 %

    (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
      March 31, 2025   March 31, 2024
           
      Average
    Balance    		   Interest   Yield/Rate   Average
    Balance    		   Interest   Yield/Rate
    Assets                                          
    Loans $ 3,074,568     $ 50,577       6.67 %   $ 3,014,537     $ 48,940       6.53 %
    Debt securities – taxable   510,354       4,692       3.73 %     554,081       5,511       4.00 %
    Debt securities – nontaxable   153,229       1,014       2.68 %     156,254       1,024       2.64 %
    Other interest-bearing assets   386,979       3,859       4.04 %     298,969       3,475       4.67 %
                                               
    Total interest-earning assets   4,125,130       60,142       5.91 %     4,023,841       58,950       5.89 %
    Noninterest-earning assets   171,683                     184,293                
                                               
    Total assets $ 4,296,813                   $ 4,208,134                
                                               
    Liabilities & stockholders’ equity                                          
    NOW, Savings, MMDA’s $ 2,302,344       15,511       2.73 %   $ 2,285,981       17,997       3.17 %
    Time deposits   441,895       4,316       3.96 %     374,852       3,666       3.93 %
    Short-term borrowings   3       –       0.00 %     3       –       0.00 %
    Notes payable & other long-term borrowings   –       –       0.00 %     –       –       0.00 %
    Subordinated debt   63,984       835       5.29 %     63,798       835       5.26 %
    Junior subordinated deferrable interest debentures   46,393       733       6.41 %     46,393       861       7.46 %
                                               
    Total interest-bearing liabilities   2,854,619       21,395       3.04 %     2,771,027       23,359       3.39 %
    Demand deposits   934,775                     958,334                
    Other liabilities   66,073                     70,860                
    Stockholders’ equity   441,346                     407,913                
                                               
    Total liabilities & stockholders’ equity $ 4,296,813                   $ 4,208,134                
                                               
    Net interest income         $ 38,747                   $ 35,591        
    Net interest margin(2)                   3.81 %                     3.56 %

    (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
      March 31,
    2025    		   December 31,
    2024
               
    Assets          
    Cash and due from banks $ 56,006     $ 54,114  
    Interest-bearing deposits in banks   480,294       304,968  
    Securities available for sale   571,527       577,240  
    Loans held for sale   13,931       20,542  
    Loans held for investment   3,075,860       3,055,054  
    Less:  Allowance for credit losses   (42,968 )     (43,237 )
    Net loans held for investment   3,032,892       3,011,817  
    Premises and equipment, net   50,873       52,951  
    Goodwill   19,315       19,315  
    Intangible assets   1,569       1,720  
    Mortgage servicing rights   24,906       26,292  
    Other assets   153,896       163,280  
    Total assets $ 4,405,209     $ 4,232,239  
               
    Liabilities and Stockholders’ Equity          
    Noninterest-bearing deposits $ 966,464     $ 935,510  
    Interest-bearing deposits   2,826,055       2,685,366  
    Total deposits   3,792,519       3,620,876  
    Subordinated debt   64,007       63,961  
    Junior subordinated deferrable interest debentures   46,393       46,393  
    Other liabilities   58,547       62,060  
    Total liabilities   3,961,466       3,793,290  
    Stockholders’ Equity          
    Common stock   16,236       16,456  
    Additional paid-in capital   89,799       97,287  
    Retained earnings   395,652       385,827  
    Accumulated other comprehensive income (loss)   (57,944 )     (60,621 )
    Total stockholders’ equity   443,743       438,949  
    Total liabilities and stockholders’ equity $ 4,405,209     $ 4,232,239  

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

      Three Months Ended
      March 31,
    2025    		   March 31,
    2024
                   
    Interest income:              
    Loans, including fees $ 50,570     $ 48,932  
    Other   9,352       9,795  
    Total interest income   59,922       58,727  
    Interest expense:              
    Deposits   19,827       21,663  
    Subordinated debt   835       835  
    Junior subordinated deferrable interest debentures   733       861  
    Other   –       –  
    Total interest expense   21,395       23,359  
    Net interest income   38,527       35,368  
    Provision for credit losses   420       830  
    Net interest income after provision for credit losses   38,107       34,538  
    Noninterest income:              
    Service charges on deposits   2,141       1,813  
    Income from insurance activities   28       34  
    Mortgage banking activities   2,113       3,945  
    Bank card services and interchange fees   3,379       3,061  
    Other   2,964       2,556  
    Total noninterest income   10,625       11,409  
    Noninterest expense:              
    Salaries and employee benefits   19,441       18,988  
    Net occupancy expense   4,027       3,920  
    Professional services   1,730       1,483  
    Marketing and development   905       754  
    Other   6,927       6,785  
    Total noninterest expense   33,030       31,930  
    Income before income taxes   15,702       14,017  
    Income tax expense   3,408       3,143  
    Net income $ 12,294     $ 10,874  

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

      As of
      March 31,
    2025    		   December 31,
    2024
                   
    Loans:              
    Commercial Real Estate $ 1,126,800     $ 1,119,063  
    Commercial – Specialized   366,796       388,955  
    Commercial – General   584,705       557,371  
    Consumer:              
    1-4 Family Residential   569,799       566,400  
    Auto Loans   261,629       254,474  
    Other Consumer   64,090       64,936  
    Construction   102,041       103,855  
    Total loans held for investment $ 3,075,860     $ 3,055,054  

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

      As of
      March 31,
    2025    		   December 31,
    2024
                   
    Deposits:              
    Noninterest-bearing deposits $ 966,464     $ 935,510  
    NOW & other transaction accounts   1,302,642       498,718  
    MMDA & other savings   1,082,596       1,741,988  
    Time deposits   440,817       444,660  
    Total deposits $ 3,792,519     $ 3,620,876  

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

      For the quarter ended
      March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Pre-tax, pre-provision income                                      
    Net income $ 12,294     $ 16,497     $ 11,212     $ 11,134     $ 10,874  
    Income tax expense   3,408       4,222       3,094       3,116       3,143  
    Provision for credit losses   420       1,200       495       1,775       830  
    Pre-tax, pre-provision income $ 16,122     $ 21,919     $ 14,801     $ 16,025     $ 14,847  
      As of
      March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Tangible common equity                            
    Total common stockholders’ equity $ 443,743     $ 438,949     $ 443,122     $ 417,985     $ 408,712  
    Less:  goodwill and other intangibles   (20,884 )     (21,035 )     (21,197 )     (21,379 )     (21,562 )
                                 
    Tangible common equity $ 422,859     $ 417,914     $ 421,925     $ 396,606     $ 387,150  
                                 
    Tangible assets                            
    Total assets $ 4,405,209     $ 4,232,239     $ 4,337,659     $ 4,220,936     $ 4,218,993  
    Less:  goodwill and other intangibles   (20,884 )     (21,035 )     (21,197 )     (21,379 )     (21,562 )
                                 
    Tangible assets $ 4,384,325     $ 4,211,204     $ 4,316,462     $ 4,199,557     $ 4,197,431  
                                 
    Shares outstanding   16,235,647       16,455,826       16,386,627       16,424,021       16,431,755  
                                 
    Total stockholders’ equity to total assets   10.07 %     10.37 %     10.22 %     9.90 %     9.69 %
    Tangible common equity to tangible assets   9.64 %     9.92 %     9.77 %     9.44 %     9.22 %
    Book value per share $ 27.33     $ 26.67     $ 27.04     $ 25.45     $ 24.87  
    Tangible book value per share $ 26.05     $ 25.40     $ 25.75     $ 24.15     $ 23.56  

    The MIL Network –

  • MIL-OSI: Middlefield Banc Corp. Reports 2025 Three-Month Financial Results

    Source: GlobeNewswire (MIL-OSI)

    MIDDLEFIELD, Ohio, April 24, 2025 (GLOBE NEWSWIRE) — Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the three months ended March 31, 2025.

    2025 Three-Month Financial Highlights (on a year-over-year basis):

      ● Earnings per share increased 17.6% year-over-year to $0.60 per diluted share
      ● Net interest margin expanded 15 basis points to 3.69%
      ● Return on average assets (annualized) increased 12 basis points year-over-year to 1.04%
      ● Asset quality improved from the 2024 fourth quarter with nonperforming assets to total assets decreasing by 6 basis points to 1.56%
      ● First quarter dividend payment increased 5% to $0.21 per share
         

    “The first quarter of 2025 was a strong period of growth, profitability and value creation for Middlefield,” stated Ronald L. Zimmerly, Jr., President and Chief Executive Officer. “Total loans increased by 4% year-over-year to a record $1.55 billion, driven by stable economic trends within our Ohio markets, the strength of our balance sheet, and the continued execution of our strategic initiatives.  The 15-basis point expansion in our net interest margin is encouraging, reflecting our disciplined approach to pricing and ongoing efforts to reduce our cost of funds.  As a result, net income expanded by 15.9% year-over-year to $4.8 million, delivering a strong return on average assets of 1.04% and supporting a 5.5% increase in tangible book value per share(1), which reached $21.29 as of March 31, 2025.” (1) See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.

    “During the quarter, we made significant upgrades to our infrastructure to support our multi-year technology road map. Additional investments in our physical footprint and back-office capabilities are planned throughout the year as we continue to strengthen Middlefield’s platform and support our long-term growth. We believe 2025 will be another good year of profitable expansion, reflecting our commitment to disciplined underwriting, community banking values, and ongoing reinvestment in the business,” concluded Mr. Zimmerly.

    Income Statement
    Net interest income for the three months ended March 31, 2025, increased $1.1 million to $16.1 million, compared to $15.0 million for the same period last year. The increase was driven by strong loan growth and the impact of rate cuts on our short-term borrowings. The net interest margin for the three months ended March 31, 2025, was 3.69%, compared to 3.54% last year. 

    For the three months ended March 31, 2025, noninterest income increased $148,000 to $1.9 million, compared to $1.8 million for the same period in 2024.

    Noninterest expense for the three months ended March 31, 2025, was $12.2 million, compared to $12.0 million for the same period in 2024. 

    Net income for the three months ended March 31, 2025, was $4.8 million, or $0.60 per diluted share, compared to $4.2 million, or $0.51 per diluted share, for the same period last year. 

    For the three months ended March 31, 2025, pre-tax, pre-provision net income was $5.8 million, compared to $4.8 million for the same period last year. (See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.)

    Balance Sheet
    Total assets at March 31, 2025, increased 3.9% to $1.89 billion, compared to $1.82 billion at March 31, 2024. Total loans at March 31, 2025, were $1.55 billion, compared to $1.49 billion at March 31, 2024. The 4.0% year-over-year increase in total loans was primarily due to higher residential real estate loans, home equity lines of credit, and non-owner occupied loans, partially offset by a reduction in construction and other loans.

    The investment securities available-for-sale portfolio was $165.0 million at March 31, 2025, compared with $167.9 million at March 31, 2024.

    Total liabilities at March 31, 2025, increased 3.9% to $1.67 billion, compared to $1.61 billion at March 31, 2024. Total deposits at March 31, 2025, were $1.54 billion, compared to $1.45 billion at March 31, 2024. The 6.4% year-over-year increase in deposits was primarily due to growth in money market and interest-bearing demand deposits, partially offset by declines in time and noninterest-bearing demand deposit accounts. Noninterest-bearing demand deposits were 24.0% of total deposits at March 31, 2025, compared to 27.0% at March 31, 2024. At March 31, 2025, the Company had brokered deposits of $92.4 million, compared to $90.4 million at March 31, 2024.

    Michael C. Ranttila, Chief Financial Officer, stated, “We remain focused on proactively managing our funding sources to support loan growth, while optimizing our cost of funds. At March 31, 2025, we reduced our balance of Federal Home Loan Bank advances by $62.4 million from December 31, 2024, and ended the first quarter with $346.9 million in additional borrowing capacity. The combination of high levels of potentially liquid assets, cash flows from operations, and additional borrowing capacity continues to provide us with excellent liquidity levels to support our long-term growth strategies and our legacy of returning excess capital to shareholders.”

    Middlefield’s CRE portfolio included the following categories at March 31, 2025:

                Percent of     Percent of     Weighted Average  
    (Dollar amounts in thousands)   Balance     CRE Portfolio     Loan Portfolio     Loan-to-Value  
                                     
    Multi-Family   $ 88,737       12.9 %     5.7 %     61.3 %
    Owner Occupied                                
    Real Estate and Rental and Leasing     61,835       9.0 %     4.0 %     55.7 %
    Other Services (except Public Administration)     32,815       4.8 %     2.1 %     54.1 %
    Manufacturing     18,397       2.7 %     1.2 %     44.7 %
    Agriculture, Forestry, Fishing and Hunting     12,628       1.8 %     0.8 %     36.4 %
    Other     59,737       8.6 %     3.9 %     54.0 %
    Total Owner Occupied   $ 185,412       26.9 %     12.0 %        
    Non-Owner Occupied                                
    Real Estate and Rental and Leasing     343,169       49.9 %     22.1 %     55.5 %
    Accommodation and Food Services     40,039       5.8 %     2.6 %     55.9 %
    Health Care and Social Assistance     19,328       2.8 %     1.2 %     65.5 %
    Manufacturing     7,428       1.1 %     0.5 %     49.5 %
    Other     3,657       0.6 %     0.2 %     85.4 %
    Total Non-Owner Occupied   $ 413,621       60.2 %     26.6 %        
    Total CRE   $ 687,770       100.0 %     44.3 %        
                                     

    Stockholders’ Equity and Dividends
    At March 31, 2025, stockholders’ equity was $213.8 million, compared to $205.6 million at March 31, 2024. The 4.0% year-over-year increase in stockholders’ equity was primarily from higher retained earnings, partially offset by an increase in the unrealized losses on the available-for-sale investment portfolio. On a per-share basis, shareholders’ equity at March 31, 2025, was $26.46, compared to $25.48 at March 31, 2024.

    At March 31, 2025, tangible stockholders’ equity(1) was $172.1 million, compared to $162.8 million at March 31, 2024. On a per-share basis, tangible stockholders’ equity(1) was $21.29 at March 31, 2025, compared to $20.18 at March 31, 2024. (1)See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.

    For the three months ended March 31, 2025, the Company declared cash dividends of $0.21 per share, totaling $1.7 million. Beginning in the first quarter of 2025, the Company increased the quarterly cash dividend by $0.01 or 5% from the previous quarter’s $0.20 per share cash dividend.  

    For the three months ended March 31, 2025, the Company did not repurchase any shares of its common stock.  The Company repurchased 43,858 shares of its common stock, at an average price of $24.00 per share during the same period in 2024. 

    At March 31, 2025, the Company’s equity-to-assets ratio was 11.32%, compared to 11.32% at March 31, 2024.

    Asset Quality

    For the 2025 first quarter, the Company recorded a provision for credit losses of $95,000, compared to a recovery of credit losses of $136,000 for the same period of 2024.  

    Net recoveries were $209,000, or (0.06%) of average loans, annualized, for the 2025 first quarter, compared to net recoveries of $68,000, or (0.02%) of average loans, annualized, for the same period of 2024.      

    Nonperforming loans at March 31, 2025, were $29.6 million, compared to $10.8 million at March 31, 2024. The increase in nonperforming assets is primarily the result of a $12.4 million loan moved to nonaccrual in the 2024 third quarter. The allowance for credit losses at March 31, 2025, stood at $22.4 million, or 1.44% of total loans, compared to $21.1 million, or 1.41% of total loans at March 31, 2024. The increase in the allowance for credit losses was mainly from changes in projected loss drivers, prepayment assumptions, curtailment expectations over the reasonable and supportable forecast period, and geographic footprint of unemployment data, as well as an overall increase in total loans.

    Mr. Ranttila continued, “Asset quality remains stable, with nonperforming assets to total assets of 1.56% at March 31, 2025, compared to 1.62% at December 31, 2024.  Nonperforming assets at March 31, 2025, included two relationships that moved into nonaccrual status in the second quarter of 2024 and one that moved into nonaccrual status in the third quarter of 2024.  We remain well reserved for potential credit losses with an allowance for credit losses to total loans of 1.44% at March 31, 2025, compared to 1.48% at December 31, 2024, and 1.41% at March 31, 2024.  We continue to expect stable economic activity across our Central, Western, and Northeast Ohio markets that will support loan demand and asset quality throughout 2025.” 

    About Middlefield Banc Corp.

    Middlefield Banc Corp., headquartered in Middlefield, Ohio, is the Bank holding Company of The Middlefield Banking Company, with total assets of $1.89 billion at March 31, 2025. The Bank operates 21 full-service banking centers and an LPL Financial® brokerage office serving Ada, Beachwood, Bellefontaine, Chardon, Cortland, Dublin, Garrettsville, Kenton, Mantua, Marysville, Middlefield, Newbury, Orwell, Plain City, Powell, Solon, Sunbury, Twinsburg, and Westerville. The Bank also operates a Loan Production Office in Mentor, Ohio.

    Additional information is available at www.middlefieldbank.bank.

    NON-GAAP FINANCIAL MEASURES

    This press release includes disclosure of Middlefield Banc Corp.’s tangible book value per share, return on average tangible equity, and pre-tax, pre-provision for loan losses income, which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts required to be disclosed by GAAP. Middlefield Banc Corp. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Middlefield Banc Corp.’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. The reconciliations of non-GAAP financial measures are included in the following Consolidated Financial Highlights tables below.

    FORWARD-LOOKING STATEMENTS
    This press release of Middlefield Banc Corp. and the reports Middlefield Banc Corp. files with the Securities and Exchange Commission often contain “forward-looking statements” relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of Middlefield Banc Corp. These forward-looking statements involve certain risks and uncertainties. There are several important factors that could cause Middlefield Banc Corp.’s future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) a significant increase in competitive pressures among financial institutions; (2) changes in the interest rate environment that may reduce interest margins; (3) changes in prepayment speeds, charge-offs and loan loss provisions; (4) less favorable than expected general economic conditions; (5) legislative or regulatory changes that may adversely affect businesses in which Middlefield Banc Corp. is engaged; (6) technological issues which may adversely affect Middlefield Banc Corp.’s financial operations or customers; (7) changes in the securities markets; or (8) risk factors mentioned in the reports and registration statements Middlefield Banc Corp. files with the Securities and Exchange Commission. Middlefield Banc Corp. undertakes no obligation to release revisions to these forward-looking statements or to reflect events or circumstances after the date of this press release.

    Company Contact: Investor and Media Contact:
    Ronald L. Zimmerly, Jr.
    President and Chief Executive Officer
    Middlefield Banc Corp.
    (419) 673-1217
    rzimmerly@middlefieldbank.com      		 Andrew M. Berger
    Managing Director
    SM Berger & Company, Inc.
    (216) 464-6400
    andrew@smberger.com  
       

    MIDDLEFIELD BANC CORP.
    Consolidated Selected Financial Highlights
    (Dollar amounts in thousands, unaudited)

        March 31,     December 31,     September 30,     June 30,     March 31,  
    Balance Sheets (period end)   2025     2024     2024     2024     2024  
    ASSETS                                        
    Cash and due from banks   $ 56,150     $ 46,037     $ 61,851     $ 50,496     $ 44,816  
    Federal funds sold     10,720       9,755       12,022       1,762       1,438  
    Cash and cash equivalents     66,870       55,792       73,873       52,258       46,254  
    Investment securities available for sale, at fair value     165,014       165,802       169,895       166,424       167,890  
    Other investments     1,021       855       895       881       907  
    Loans held for sale     –       –       249       –       –  
    Loans:                                        
    Commercial real estate:                                        
    Owner occupied     185,412       181,447       187,313       182,809       178,543  
    Non-owner occupied     413,621       412,291       407,159       385,648       398,845  
    Multifamily     88,737       89,849       94,798       86,951       81,691  
    Residential real estate     351,274       353,442       345,748       337,121       331,480  
    Commercial and industrial     235,547       229,034       213,172       234,702       227,433  
    Home equity lines of credit     147,154       143,379       137,761       131,047       129,287  
    Construction and other     122,653       103,608       111,550       132,530       135,716  
    Consumer installment     5,951       6,564       7,030       6,896       7,131  
    Total loans     1,550,349       1,519,614       1,504,531       1,497,704       1,490,126  
    Less allowance for credit losses     22,401       22,447       22,526       21,795       21,069  
    Net loans     1,527,948       1,497,167       1,482,005       1,475,909       1,469,057  
    Premises and equipment, net     22,339       20,565       20,528       20,744       21,035  
    Goodwill     36,356       36,356       36,356       36,356       36,356  
    Core deposit intangibles     5,361       5,611       5,869       6,126       6,384  
    Bank-owned life insurance     34,866       35,259       35,049       34,802       34,575  
    Accrued interest receivable and other assets     28,581       35,952       32,916       34,686       34,210  
    TOTAL ASSETS   $ 1,888,356     $ 1,853,359     $ 1,857,635     $ 1,828,186     $ 1,816,668  
        March 31,     December 31,     September 30,     June 30,     March 31,  
        2025     2024     2024     2024     2024  
    LIABILITIES                                        
    Deposits:                                        
    Noninterest-bearing demand   $ 369,492     $ 377,875     $ 390,933     $ 387,024     $ 390,185  
    Interest-bearing demand     222,953       208,291       218,002       206,542       209,015  
    Money market     481,664       414,074       376,619       355,630       318,823  
    Savings     189,943       197,749       199,984       192,472       196,721  
    Time     275,673       247,704       327,231       327,876       332,165  
    Total deposits     1,539,725       1,445,693       1,512,769       1,469,544       1,446,909  
    Federal Home Loan Bank advances     110,000       172,400       106,000       125,000       137,000  
    Other borrowings     11,609       11,660       11,711       11,762       11,812  
    Accrued interest payable and other liabilities     13,229       13,044       16,450       15,092       15,372  
    TOTAL LIABILITIES     1,674,563       1,642,797       1,646,930       1,621,398       1,611,093  
    STOCKHOLDERS’ EQUITY                                        
    Common stock, no par value; 25,000,000 shares authorized, 9,960,503                                        
    shares issued, 8,081,193 shares outstanding as of March 31, 2025     162,195       161,999       161,916       161,823       161,823  
    Additional paid-in capital     515       246       108       –       –  
    Retained earnings     112,432       109,299       106,067       105,342       102,791  
    Accumulated other comprehensive loss     (20,440 )     (20,073 )     (16,477 )     (19,468 )     (18,130 )
    Treasury stock, at cost; 1,879,310 shares as of March 31, 2025     (40,909 )     (40,909 )     (40,909 )     (40,909 )     (40,909 )
    TOTAL STOCKHOLDERS’ EQUITY     213,793       210,562       210,705       206,788       205,575  
                                             
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 1,888,356     $ 1,853,359     $ 1,857,635     $ 1,828,186     $ 1,816,668  
                                             

    MIDDLEFIELD BANC CORP.
    Consolidated Selected Financial Highlights
    (Dollar amounts in thousands, unaudited)

        For the Three Months Ended  
        March 31,     December 31,     September 30,     June 30,     March 31,  
    Statements of Income   2025     2024     2024     2024     2024  
                                             
    INTEREST AND DIVIDEND INCOME                                        
    Interest and fees on loans   $ 23,387     $ 23,308     $ 23,441     $ 23,422     $ 22,395  
    Interest-earning deposits in other institutions     291       320       348       386       437  
    Federal funds sold     155       151       143       122       152  
    Investment securities:                                        
    Taxable interest     530       528       528       505       467  
    Tax-exempt interest     960       961       962       966       972  
    Dividends on stock     150       170       191       198       189  
    Total interest and dividend income     25,473       25,438       25,613       25,599       24,612  
    INTEREST EXPENSE                                        
    Deposits     7,885       8,582       8,792       8,423       7,466  
    Short-term borrowings     1,347       1,128       1,575       1,920       1,993  
    Other borrowings     143       173       173       173       184  
    Total interest expense     9,375       9,883       10,540       10,516       9,643  
    NET INTEREST INCOME     16,098       15,555       15,073       15,083       14,969  
    Provision for (recovery of) credit losses     95       (177 )     2,234       87       (136 )
    NET INTEREST INCOME AFTER PROVISION                                        
    FOR (RECOVERY OF) CREDIT LOSSES     16,003       15,732       12,839       14,996       15,105  
    NONINTEREST INCOME                                        
    Service charges on deposit accounts     989       1,068       959       971       909  
    Gain (Loss) on equity securities     (34 )     56       14       (27 )     (52 )
    Earnings on bank-owned life insurance     493       230       246       227       227  
    Gain on sale of loans     24       64       56       69       10  
    Revenue from investment services     268       237       206       269       204  
    Gross rental income     –       1       –       –       67  
    Other income     204       258       262       251       431  
    Total noninterest income     1,944       1,914       1,743       1,760       1,796  
                                             
    NONINTEREST EXPENSE                                        
    Salaries and employee benefits     6,557       5,996       6,201       6,111       6,333  
    Occupancy expense     687       596       627       601       552  
    Equipment expense     225       221       203       261       240  
    Data processing costs     1,271       1,174       1,214       1,135       1,217  
    Ohio state franchise tax     399       390       399       397       397  
    Federal deposit insurance expense     267       293       255       256       251  
    Professional fees     598       611       539       557       558  
    Advertising expense     364       371       283       508       419  
    Software amortization expense     90       83       74       21       22  
    Core deposit intangible amortization     249       258       257       258       258  
    Gross other real estate owned expenses     –       –       –       –       99  
    Other expense     1,486       1,810       1,819       1,797       1,619  
    Total noninterest expense     12,193       11,803       11,871       11,902       11,965  
                                             
    Income before income taxes     5,754       5,843       2,711       4,854       4,936  
    Income taxes     924       995       371       690       769  
                                             
    NET INCOME   $ 4,830     $ 4,848     $ 2,340     $ 4,164     $ 4,167  
                                             
    PTPP (1)   $ 5,849     $ 5,666     $ 4,945     $ 4,941     $ 4,800  
    (1)  See section “GAAP to Non-GAAP Reconciliations” for the reconciliation of GAAP performance measures to non-GAAP measures.
     

    MIDDLEFIELD BANC CORP.
    Consolidated Selected Financial Highlights
    (Dollar amounts in thousands, except per share and share amounts, unaudited)

        For the Three Months Ended  
        March 31,     December 31,     September 30,     June 30,     March 31,  
        2025     2024     2024     2024     2024  
    Per common share data                                        
    Net income per common share – basic   $ 0.60     $ 0.60     $ 0.29     $ 0.52     $ 0.52  
    Net income per common share – diluted   $ 0.60     $ 0.60     $ 0.29     $ 0.52     $ 0.51  
    Dividends declared per share   $ 0.21     $ 0.20     $ 0.20     $ 0.20     $ 0.20  
    Book value per share (period end)   $ 26.46     $ 26.08     $ 26.11     $ 25.63     $ 25.48  
    Tangible book value per share (period end) (1) (2)   $ 21.29     $ 20.88     $ 20.87     $ 20.37     $ 20.18  
    Dividends declared   $ 1,697     $ 1,616     $ 1,615     $ 1,613     $ 1,613  
    Dividend yield     3.05 %     2.84 %     2.76 %     3.34 %     3.37 %
    Dividend payout ratio     35.13 %     33.33 %     69.02 %     38.74 %     38.71 %
    Average shares outstanding – basic     8,078,805       8,071,905       8,071,032       8,067,144       8,091,203  
    Average shares outstanding – diluted     8,097,545       8,092,357       8,086,872       8,072,499       8,096,317  
    Period ending shares outstanding     8,081,193       8,073,708       8,071,032       8,067,144       8,067,144  
                                             
    Selected ratios                                        
    Return on average assets (Annualized)     1.04 %     1.04 %     0.50 %     0.91 %     0.92 %
    Return on average equity (Annualized)     9.22 %     9.19 %     4.45 %     8.15 %     8.16 %
    Return on average tangible common equity (1) (3)     11.48 %     11.50 %     5.58 %     10.29 %     10.30 %
    Efficiency (4)     65.22 %     65.05 %     67.93 %     67.97 %     68.68 %
    Equity to assets at period end     11.32 %     11.36 %     11.34 %     11.31 %     11.32 %
    Noninterest expense to average assets     0.65 %     0.63 %     0.66 %     0.64 %     0.66 %
    (1)  See section “GAAP to Non-GAAP Reconciliations” for the reconciliation of GAAP performance measures to non-GAAP measures.
    (2)  Calculated by dividing tangible common equity by shares outstanding.
    (3)  Calculated by dividing annualized net income for each period by average tangible common equity.
    (4)  The efficiency ratio is calculated by dividing noninterest expense less amortization of intangibles by the sum of net interest income on a fully taxable equivalent basis plus noninterest income.
     
        For the Three Months Ended  
        March 31,     December 31,     September 30,     June 30,     March 31,  
    Yields   2025     2024     2024     2024     2024  
    Interest-earning assets:                                        
    Loans receivable (1)     6.17 %     6.12 %     6.19 %     6.27 %     6.11 %
    Investment securities (1) (2)     3.69 %     3.63 %     3.62 %     3.59 %     3.52 %
    Interest-earning deposits with other banks     3.57 %     4.23 %     4.27 %     4.59 %     4.88 %
    Total interest-earning assets     5.81 %     5.78 %     5.84 %     5.92 %     5.77 %
    Deposits:                                        
    Interest-bearing demand deposits     2.13 %     2.07 %     2.16 %     1.93 %     1.86 %
    Money market deposits     3.38 %     3.81 %     3.93 %     3.95 %     3.81 %
    Savings deposits     0.82 %     0.75 %     0.71 %     0.64 %     0.58 %
    Certificates of deposit     3.93 %     4.21 %     4.49 %     4.57 %     4.06 %
    Total interest-bearing deposits     2.82 %     3.05 %     3.17 %     3.15 %     2.88 %
    Non-Deposit Funding:                                        
    Borrowings     4.58 %     4.93 %     5.54 %     5.60 %     5.61 %
    Total interest-bearing liabilities     3.01 %     3.21 %     3.41 %     3.45 %     3.23 %
    Cost of deposits     2.10 %     2.24 %     2.33 %     2.30 %     2.08 %
    Cost of funds     2.30 %     2.41 %     2.58 %     2.61 %     2.42 %
    Net interest margin (3)     3.69 %     3.56 %     3.46 %     3.51 %     3.54 %
    (1)  Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were determined using an effective tax rate of 21%.
    (2)  Yield is calculated on the basis of amortized cost.
    (3)  Net interest margin represents net interest income as a percentage of average interest-earning assets.
     

    MIDDLEFIELD BANC CORP.
    Consolidated Selected Financial Highlights
    (unaudited)

        For the Three Months Ended  
        March 31,     December 31,     September 30,     June 30,     March 31,  
    Asset quality data   2025     2024     2024     2024     2024  
    (Dollar amounts in thousands, unaudited)                                        
    Nonperforming assets (1)   $ 29,550     $ 29,984     $ 30,078     $ 15,961     $ 10,831  
                                             
    Allowance for credit losses   $ 22,401     $ 22,447     $ 22,526     $ 21,795     $ 21,069  
    Allowance for credit losses/total loans     1.44 %     1.48 %     1.50 %     1.46 %     1.41 %
    Net charge-offs (recoveries):                                        
    Quarter-to-date   $ (209 )   $ 151     $ 1,382     $ (29 )   $ (68 )
    Year-to-date     (209 )     1,436       1,285       (97 )     (68 )
    Net charge-offs (recoveries) to average loans, annualized:                                        
    Quarter-to-date     (0.06 %)     0.04 %     0.36 %     (0.01 %)     (0.02 %)
    Year-to-date     (0.06 %)     0.10 %     0.11 %     (0.01 %)     (0.02 %)
                                             
    Nonperforming loans/total loans     1.91 %     1.97 %     2.00 %     1.07 %     0.73 %
    Allowance for credit losses/nonperforming loans     75.81 %     74.86 %     74.89 %     136.55 %     194.52 %
    Nonperforming assets/total assets     1.56 %     1.62 %     1.62 %     0.87 %     0.60 %
    (1) Nonperforming assets consist of nonperforming loans.
     

    MIDDLEFIELD BANC CORP.
    GAAP to Non-GAAP Reconciliations

    Reconciliation of Common Stockholders’ Equity to Tangible Common Equity   For the Three Months Ended  
    (Dollar amounts in thousands, unaudited)   March 31,     December 31,     September 30,     June 30,     March 31,  
        2025     2024     2024     2024     2024  
                                             
    Stockholders’ equity   $ 213,793     $ 210,562     $ 210,705     $ 206,788     $ 205,575  
    Less goodwill and other intangibles     41,717       41,967       42,225       42,482       42,740  
    Tangible common equity   $ 172,076     $ 168,595     $ 168,480     $ 164,306     $ 162,835  
                                             
    Shares outstanding     8,081,193       8,073,708       8,071,032       8,067,144       8,067,144  
    Tangible book value per share   $ 21.29     $ 20.88     $ 20.87     $ 20.37     $ 20.18  
                                             
    Reconciliation of Average Equity to Return on Average Tangible Common Equity   For the Three Months Ended  
                                             
        March 31,     December 31,     September 30,     June 30,     March 31,  
        2025     2024     2024     2024     2024  
                                             
    Average stockholders’ equity   $ 212,465     $ 209,864     $ 209,096     $ 205,379     $ 205,342  
    Less average goodwill and other intangibles     41,839       42,092       42,350       42,607       42,654  
    Average tangible common equity   $ 170,626     $ 167,772     $ 166,746     $ 162,772     $ 162,688  
                                             
    Net income   $ 4,830     $ 4,848     $ 2,340     $ 4,164     $ 4,167  
    Return on average tangible common equity (annualized)     11.48 %     11.50 %     5.58 %     10.29 %     10.30 %
                                             
    Reconciliation of Pre-Tax Pre-Provision Income (PTPP)   For the Three Months Ended  
                                             
        March 31,     December 31,     September 30,     June 30,     March 31,  
        2025     2024     2024     2024     2024  
                                             
    Net income   $ 4,830     $ 4,848     $ 2,340     $ 4,164     $ 4,167  
    Add income taxes     924       995       371       690       769  
    Add provision for (recovery of) credit losses     95       (177 )     2,234       87       (136 )
    PTPP   $ 5,849     $ 5,666     $ 4,945     $ 4,941     $ 4,800  
                                             

    MIDDLEFIELD BANC CORP.
    Average Balance Sheets
    (Dollar amounts in thousands, unaudited)

        For the Three Months Ended  
        March 31,     March 31,  
        2025     2024  
        Average             Average     Average             Average  
        Balance     Interest     Yield/Cost     Balance     Interest     Yield/Cost  
    Interest-earning assets:                                                
    Loans receivable (1)   $ 1,537,337     $ 23,387       6.17 %   $ 1,476,543     $ 22,395       6.11 %
    Investment securities (1) (2)     191,996       1,490       3.69 %     191,851       1,439       3.56 %
    Interest-earning deposits with other banks (3)     67,661       596       3.57 %     64,139       778       4.88 %
    Total interest-earning assets     1,796,994       25,473       5.81 %     1,732,533       24,612       5.78 %
    Noninterest-earning assets     84,542                       90,151                  
    Total assets   $ 1,881,536                     $ 1,822,684                  
    Interest-bearing liabilities:                                                
    Interest-bearing demand deposits   $ 220,192     $ 1,154       2.13 %   $ 211,009     $ 978       1.86 %
    Money market deposits     458,446       3,816       3.38 %     298,479       2,827       3.81 %
    Savings deposits     192,931       388       0.82 %     201,080       290       0.58 %
    Certificates of deposit     261,006       2,527       3.93 %     333,871       3,371       4.06 %
    Short-term borrowings     120,238       1,347       4.54 %     144,357       1,993       5.55 %
    Other borrowings     11,639       143       4.98 %     11,840       184       6.25 %
    Total interest-bearing liabilities     1,264,452       9,375       3.01 %     1,200,636       9,643       3.23 %
    Noninterest-bearing liabilities:                                                
    Noninterest-bearing demand deposits     390,354                       400,209                  
    Other liabilities     14,265                       16,497                  
    Stockholders’ equity     212,465                       205,342                  
    Total liabilities and stockholders’ equity   $ 1,881,536                     $ 1,822,684                  
    Net interest income           $ 16,098                     $ 14,969          
    Interest rate spread (4)                     2.80 %                     2.55 %
    Net interest margin (5)                     3.69 %                     3.54 %
    Ratio of average interest-earning assets to average interest-bearing liabilities                     142.12 %                     144.30 %
                                                     
    (1) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $272 and  $281 for the three months ended March 31, 2025 and 2024, respectively.
    (2) Yield is calculated on the basis of amortized cost.
    (3) Includes dividends received on restricted stock.
    (4) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.
    (5) Net interest margin represents net interest income as a percentage of average interest-earning assets.
     
        For the Three Months Ended  
        March 31,     December 31,  
        2025     2024  
        Average             Average     Average             Average  
        Balance     Interest     Yield/Cost     Balance     Interest     Yield/Cost  
    Interest-earning assets:                                                
    Loans receivable (1)   $ 1,537,337     $ 23,387       6.17 %   $ 1,517,051     $ 23,308       6.12 %
    Investment securities (1) (2)     191,996       1,490       3.69 %     191,390       1,489       3.63 %
    Interest-earning deposits with other banks (3)     67,661       596       3.57 %     60,241       641       4.23 %
    Total interest-earning assets     1,796,994       25,473       5.81 %     1,768,682       25,438       5.78 %
    Noninterest-earning assets     84,542                       88,205                  
    Total assets   $ 1,881,536                     $ 1,856,887                  
    Interest-bearing liabilities:                                                
    Interest-bearing demand deposits   $ 220,192     $ 1,154       2.13 %   $ 216,492     $ 1,126       2.07 %
    Money market deposits     458,446       3,816       3.38 %     393,298       3,768       3.81 %
    Savings deposits     192,931       388       0.82 %     197,257       373       0.75 %
    Certificates of deposit     261,006       2,527       3.93 %     313,582       3,315       4.21 %
    Short-term borrowings     120,238       1,347       4.54 %     93,200       1,128       4.81 %
    Other borrowings     11,639       143       4.98 %     11,690       173       5.89 %
    Total interest-bearing liabilities     1,264,452       9,375       3.01 %     1,225,519       9,883       3.21 %
    Noninterest-bearing liabilities:                                                
    Noninterest-bearing demand deposits     390,354                       404,428                  
    Other liabilities     14,265                       17,076                  
    Stockholders’ equity     212,465                       209,864                  
    Total liabilities and stockholders’ equity   $ 1,881,536                     $ 1,856,887                  
    Net interest income           $ 16,098                     $ 15,555          
    Interest rate spread (4)                     2.80 %                     2.57 %
    Net interest margin (5)                     3.69 %                     3.56 %
    Ratio of average interest-earning assets to average interest-bearing liabilities                     142.12 %                     144.32 %
    (1)  Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $272 and $280 for the three months ended March 31, 2025 and December 31, 2024, respectively.
    (2) Yield is calculated on the basis of amortized cost.
    (3) Includes dividends received on restricted stock.
    (4) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.
    (5) Net interest margin represents net interest income as a percentage of average interest-earning assets.

    The MIL Network –

  • MIL-OSI: USCB Financial Holdings, Inc. Reports Record Fully Diluted EPS of $0.38 for Q1 2025, a 65% increase over same period last year; ROAA of 1.19% and ROAE of 14.15%

    Source: GlobeNewswire (MIL-OSI)

    MIAMI, April 24, 2025 (GLOBE NEWSWIRE) — USCB Financial Holdings, Inc. (the “Company”) (NASDAQ: USCB), the holding company for U.S. Century Bank (the “Bank”), reported net income of $7.7 million or $0.38 per fully diluted share for the three months ended March 31, 2025, compared with net income of $4.6 million or $0.23 per fully diluted share for the same period in 2024.

    “We are proud to report a record quarter, highlighted by fully diluted EPS of $0.38. This performance reflects solid execution across all of our strategic priorities including annualized double-digit loan and deposit growth, maintaining disciplined pricing, clean asset quality, and strong cost controls. Our return on average assets was 1.19%, the highest since the fourth quarter of 2021,” said Luis de la Aguilera. Chairman, President and CEO. “Our continued focus on asset quality, profitability, and growing the Bank in a safe and sound manner has positioned the Company well to navigate the current challenging market and economic environment with confidence and resilience.”

    Unless otherwise stated, all percentage comparisons in the bullet points below are calculated at or for the quarter ended March 31, 2025 compared to at or for the quarter ended March 31, 2024 and annualized where appropriate.

    Profitability

    • Annualized return on average assets for the quarter ended March 31, 2025 was 1.19% compared to 0.76% for the first quarter of 2024.
    • Annualized return on average stockholders’ equity for the quarter ended March 31, 2025 was 14.15% compared to 9.61% for the first quarter of 2024.
    • The efficiency ratio for the quarter ended March 31, 2025 was 52.79% compared to 63.41% for the first quarter of 2024.
    • Net interest margin for the quarter ended March 31, 2025 was 3.10% compared to 2.62% for the first quarter of 2024.
    • Net interest income before provision for credit losses was $19.1 million for the quarter ended March 31, 2025, an increase of $4.0 million or 26.1% compared to $15.2 million for the same period in 2024.

    Balance Sheet

    • Total assets were $2.7 billion at March 31, 2025, representing an increase of $188.2 million or 7.6% from $2.5 billion at March 31, 2024.
    • Total loans held for investment were $2.0 billion at March 31, 2025, representing an increase of $215.0 million or 11.8% from $1.8 billion at March 31, 2024.
    • Total deposits were $2.3 billion at March 31, 2025, representing an increase of $206.8 million or 9.8% from $2.1 billion at March 31, 2024.
    • Total stockholders’ equity was $225.1 million at March 31, 2025, representing an increase of $30.1 million or 15.4% from $195.0 million at March 31, 2024. Total stockholders’ equity included accumulated comprehensive loss of $41.1 million at March 31, 2025 compared to accumulated comprehensive loss of $45.4 million at March 31, 2024.

    Asset Quality

    • The allowance for credit losses (“ACL”) increased by $3.3 million to $24.7 million at March 31, 2025 from $21.5 million at March 31, 2024.
    • The ACL represented 1.22% of total loans at March 31, 2025 and 1.18% at March 31, 2024.
    • The provision for credit loss was $681 thousand for the quarter ended March 31, 2025, an increase of $271 thousand compared to $410 thousand for the same period in 2024.
    • The ratio of non-performing loans to total loans was 0.20% at March 31, 2025 and 0.03% at March 31, 2024. Non-performing loans totaled $4.2 million at March 31, 2025 and $456 thousand at March 31, 2024.

    Non-interest Income and Non-interest Expense

    • Non-interest income was $3.7 million for the three months ended March 31, 2025, an increase of $1.3 million or 50.8% compared to $2.5 million for the same period in 2024.
    • Non-interest expense was $12.1 million for the three months ended March 31, 2025, an increase of $0.9 million or 7.9% compared to $11.2 million for the same period in 2024.

    Capital

    • On April 21, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.10 per share of the Company’s Class A common stock. The dividend will be paid on June 5, 2025 to shareholders of record at the close of business on May 15, 2025.
    • As of March 31, 2025, total risk-based capital ratios for the Company and the Bank were 13.72% and 13.65%, respectively.
    • Tangible book value per common share (a non-GAAP measure) was $11.23 at March 31, 2025, representing increase of $0.42 or 3.9% from $10.81 at December 31, 2024. At March 31, 2025, tangible book value per common share was negatively affected by ($2.05) per share due to an accumulated comprehensive loss of $41.1 million mostly due to changes in the market value of the Company’s available for sale securities. At December 31, 2024, tangible book value per common share was negatively affected by ($2.24) per share due to an accumulated comprehensive loss of $44.5 million.

    Conference Call and Webcast

    The Company will host a conference call on Friday, April 25, 2025, at 11:00 a.m. Eastern Time to discuss the Company’s unaudited financial results for the quarter ended March 31, 2025. To access the conference call, dial (833) 816-1416 (U.S. toll-free) and ask to join the USCB Financial Holdings Call.

    Additionally, interested parties can listen to a live webcast of the call in the “Investor Relations” section of the Company’s website at www.uscentury.com. An archived version of the webcast will be available in the same location shortly after the live call has ended.

    About USCB Financial Holdings, Inc.

    USCB Financial Holdings, Inc. is the bank holding company for U.S. Century Bank. Established in 2002, U.S. Century Bank is one of the largest community banks headquartered in Miami, and one of the largest community banks in the State of Florida. U.S. Century Bank is rated 5-Stars by BauerFinancial, the nation’s leading independent bank rating firm. U.S. Century Bank offers customers a wide range of financial products and services and supports numerous community organizations, including the Greater Miami Chamber of Commerce, the South Florida Hispanic Chamber of Commerce, and ChamberSouth. For more information about us or to find a banking center near you, please call (305) 715-5200 or visit www.uscentury.com.

    Forward-Looking Statements

    This earnings release may contain statements that are not historical in nature and are intended to be, and are hereby identified as, forward-looking statements for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are those that are not historical facts. The words “may,” “will,” “anticipate,” “could,” “should,” “would,” “believe,” “contemplate,” “expect,” “aim,” “plan,” “estimate,” “seek,” “continue,” and “intend,”, the negative of these terms, as well as other similar words and expressions of the future, are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements related to our projected growth, anticipated future financial performance, and management’s long-term performance goals, as well as statements relating to the anticipated effects on our results of operations and financial condition from expected or potential developments or events, or business and growth strategies, including anticipated internal growth and balance sheet restructuring.

    These forward-looking statements involve significant risks and uncertainties that could cause our actual results to differ materially from those anticipated in such statements. Potential risks and uncertainties include, but are not limited to:

    • the strength of the United States economy in general and the strength of the local economies in which we conduct operations;
    • our ability to successfully manage interest rate risk, credit risk, liquidity risk, and other risks inherent to our industry;
    • the accuracy of our financial statement estimates and assumptions, including the estimates used for our credit loss reserve and deferred tax asset valuation allowance;
    • the efficiency and effectiveness of our internal control procedures and processes;
    • our ability to comply with the extensive laws and regulations to which we are subject, including the laws for each jurisdiction where we operate;
    • adverse changes or conditions in capital and financial markets, including actual or potential stresses in the banking industry;
    • deposit attrition and the level of our uninsured deposits;
    • legislative or regulatory changes and changes in accounting principles, policies, practices or guidelines, including the on-going effects of the Current Expected Credit Losses (“CECL”) standard;
    • the lack of a significantly diversified loan portfolio and the concentration in the South Florida market, including the risks of geographic, depositor, and industry concentrations, including our concentration in loans secured by real estate, in particular, commercial real estate;
    • the effects of climate change;
    • the concentration of ownership of our common stock;
    • fluctuations in the price of our common stock;
    • our ability to fund or access the capital markets at attractive rates and terms and manage our growth, both organic growth as well as growth through other means, such as future acquisitions;
    • inflation, interest rate, unemployment rate, and market and monetary fluctuations;
    • the effects of potential new or increased tariffs and trade restrictions
    • impacts of international hostilities and geopolitical events;
    • increased competition and its effect on the pricing of our products and services as well as our interest rate spread and net interest margin;
    • the loss of key employees;
    • the effectiveness of our risk management strategies, including operational risks, including, but not limited to, client, employee, or third-party fraud and security breaches; and
    • other risks described in this earnings release and other filings we make with the Securities and Exchange Commission (“SEC”).

    All forward-looking statements are necessarily only estimates of future results, and there can be no assurance  that actual results will not differ materially from expectations. Therefore, you are cautioned not to place undue reliance on any forward-looking statements. Further, forward-looking statements included in this earnings release are made only as of the date hereof, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events, unless required to do so under the federal securities laws. You should also review the risk factors described in the reports the Company filed or will file with the SEC.

    Non-GAAP Financial Measures

    This earnings release includes financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). This financial information includes certain operating performance measures. Management has included these non-GAAP measures because it believes these measures may provide useful supplemental information for evaluating the Company’s operations and underlying performance trends. Further, management uses these measures in managing and evaluating the Company’s business and intends to refer to them in discussions about our operations and performance. Operating performance measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures can be found in the ‘Non-GAAP Reconciliation Tables’ included in the exhibits to this earnings release.

    All numbers included in this press release are unaudited unless otherwise noted.

    Contacts:

    Investor Relations
    InvestorRelations@uscentury.com

    Media Relations
    Martha Guerra-Kattou
    MGuerra@uscentury.com

     
    USCB FINANCIAL HOLDINGS, INC.
    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
    (Dollars in thousands, except per share data)
                   
      Three Months Ended March 31,
      2025   2024
    Interest income:              
    Loans, including fees $ 30,245     $ 26,643  
    Investment securities   3,024       2,811  
    Interest-bearing deposits in financial institutions   709       1,433  
    Total interest income   33,978       30,887  
    Interest expense:              
    Interest-bearing checking deposits   338       369  
    Savings and money market deposits   9,335       10,394  
    Time deposits   3,918       3,294  
    FHLB advances and other borrowings   1,272       1,672  
    Total interest expense   14,863       15,729  
    Net interest income before provision for credit losses   19,115       15,158  
    Provision for credit losses   681       410  
    Net interest income after provision for credit losses   18,434       14,748  
    Non-interest income:              
    Service fees   2,331       1,651  
    Gain on sale of loans held for sale, net   525       67  
    Other non-interest income   860       746  
    Total non-interest income   3,716       2,464  
    Non-interest expense:              
    Salaries and employee benefits   7,636       6,310  
    Occupancy   1,284       1,314  
    Regulatory assessments and fees   421       433  
    Consulting and legal fees   193       592  
    Network and information technology services   505       507  
    Other operating expense   2,013       2,018  
    Total non-interest expense   12,052       11,174  
    Net income before income tax expense   10,098       6,038  
    Income tax expense   2,440       1,426  
    Net income $ 7,658     $ 4,612  
    Per share information:              
    Net income per common share, basic $ 0.38     $ 0.23  
    Net income per common share, diluted $ 0.38     $ 0.23  
    Cash dividends declared $ 0.10     $ 0.05  
    Weighted average shares outstanding:              
    Common shares, basic   20,020,933       19,633,330  
    Common shares, diluted   20,319,535       19,698,258  
                   
     
    USCB FINANCIAL HOLDINGS, INC.
    SELECTED FINANCIAL DATA (UNAUDITED)
    (Dollars in thousands, except per share data)
                                 
      As of or For the Three Months Ended
      3/31/2025   12/31/2024   9/30/2024   6/30/2024   3/31/2024
    Income statement data:                            
    Net interest income $ 19,115     $ 19,358     $ 18,109     $ 17,311     $ 15,158  
    Provision for credit losses   681       1,030       931       786       410  
    Net interest income after provision for credit losses   18,434       18,328       17,178       16,525       14,748  
    Service fees   2,331       2,667       2,544       1,977       1,651  
    Gain on sale of securities available for sale, net   –       –       –       14       –  
    Gain on sale of loans held for sale, net   525       154       109       417       67  
    Other income   860       806       785       803       746  
    Total non-interest income   3,716       3,627       3,438       3,211       2,464  
    Salaries and employee benefits   7,636       7,930       7,200       7,353       6,310  
    Occupancy   1,284       1,337       1,341       1,266       1,314  
    Regulatory assessments and fees   421       405       452       476       433  
    Consulting and legal fees   193       552       161       263       592  
    Network and information technology services   505       494       513       479       507  
    Other operating expense   2,013       2,136       1,787       1,723       2,018  
    Total non-interest expense   12,052       12,854       11,454       11,560       11,174  
    Net income before income tax expense   10,098       9,101       9,162       8,176       6,038  
    Income tax expense   2,440       2,197       2,213       1,967       1,426  
    Net income $ 7,658     $ 6,904     $ 6,949     $ 6,209     $ 4,612  
    Per share information:                            
    Net income per common share, basic $ 0.38     $ 0.35     $ 0.35     $ 0.32     $ 0.23  
    Net income per common share, diluted $ 0.38     $ 0.34     $ 0.35     $ 0.31     $ 0.23  
    Cash dividends declared $ 0.10     $ 0.05     $ 0.05     $ 0.05     $ 0.05  
    Balance sheet data (at period-end):                            
    Cash and cash equivalents $ 97,984     $ 77,035     $ 38,486     $ 77,261     $ 126,546  
    Securities available-for-sale $ 275,139     $ 260,221     $ 259,527     $ 236,444     $ 259,992  
    Securities held-to-maturity $ 161,790     $ 164,694     $ 167,001     $ 169,606     $ 173,038  
    Total securities $ 436,929     $ 424,915     $ 426,528     $ 406,050     $ 433,030  
    Loans held for investment (1) $ 2,036,212     $ 1,972,848     $ 1,931,362     $ 1,869,249     $ 1,821,196  
    Allowance for credit losses $ (24,740 )   $ (24,070 )   $ (23,067 )   $ (22,230 )   $ (21,454 )
    Total assets $ 2,677,382     $ 2,581,216     $ 2,503,954     $ 2,458,270     $ 2,489,142  
    Non-interest-bearing demand deposits $ 605,489     $ 575,159     $ 637,313     $ 579,243     $ 576,626  
    Interest-bearing deposits $ 1,704,080     $ 1,598,845     $ 1,489,304     $ 1,477,459     $ 1,526,168  
    Total deposits $ 2,309,569     $ 2,174,004     $ 2,126,617     $ 2,056,702     $ 2,102,794  
    FHLB advances and other borrowings $ 108,000     $ 163,000     $ 118,000     $ 162,000     $ 162,000  
    Total liabilities $ 2,452,294     $ 2,365,828     $ 2,290,038     $ 2,257,250     $ 2,294,131  
    Total stockholders’ equity $ 225,088     $ 215,388     $ 213,916     $ 201,020     $ 195,011  
    Capital ratios:(2)                            
    Leverage ratio   9.61 %     9.53 %     9.34 %     9.03 %     8.91 %
    Common equity tier 1 capital   12.48 %     12.28 %     12.01 %     11.93 %     11.80 %
    Tier 1 risk-based capital   12.48 %     12.28 %     12.01 %     11.93 %     11.80 %
    Total risk-based capital   13.72 %     13.51 %     13.22 %     13.12 %     12.98 %
                                 
    (1) Loan amounts include deferred fees/costs.
    (2) Reflects the Company’s regulatory capital ratios which are provided for informational purposes only; as a small bank holding company, the Company is not subject to regulatory capital requirements. The Bank’s total risk-based capital at March 31, 2025 was 13.65%.
     
    USCB FINANCIAL HOLDINGS, INC.
    AVERAGE BALANCES, RATIOS, AND OTHER DATA (UNAUDITED)
    (Dollars in thousands)
                                 
      As of or For the Three Months Ended
      3/31/2025   12/31/2024   9/30/2024   6/30/2024   3/31/2024
    Average balance sheet data:                            
    Cash and cash equivalents $ 82,610     $ 56,937     $ 87,937     $ 107,831     $ 132,266  
    Securities available-for-sale $ 265,154     $ 255,786     $ 244,882     $ 263,345     $ 239,896  
    Securities held-to-maturity $ 163,510     $ 165,831     $ 168,632     $ 171,682     $ 174,142  
    Total securities $ 428,664     $ 421,617     $ 413,514     $ 435,027     $ 414,038  
    Loans held for investment(1) $ 1,986,856     $ 1,958,566     $ 1,878,230     $ 1,828,487     $ 1,781,528  
    Total assets $ 2,606,593     $ 2,544,592     $ 2,485,434     $ 2,479,222     $ 2,436,103  
    Interest-bearing deposits $ 1,652,147     $ 1,547,789     $ 1,468,067     $ 1,473,513     $ 1,473,831  
    Non-interest-bearing demand deposits $ 563,040     $ 590,829     $ 609,456     $ 610,370     $ 574,760  
    Total deposits $ 2,215,187     $ 2,138,618     $ 2,077,523     $ 2,083,883     $ 2,048,591  
    FHLB advances and other borrowings $ 138,944     $ 151,804     $ 156,043     $ 162,000     $ 164,187  
    Total liabilities $ 2,387,088     $ 2,328,877     $ 2,278,793     $ 2,281,467     $ 2,243,011  
    Total stockholders’ equity $ 219,505     $ 215,715     $ 206,641     $ 197,755     $ 193,092  
    Performance ratios:                            
    Return on average assets (2)   1.19 %     1.08 %     1.11 %     1.01 %     0.76 %
    Return on average equity (2)   14.15 %     12.73 %     13.38 %     12.63 %     9.61 %
    Net interest margin (2)   3.10 %     3.16 %     3.03 %     2.94 %     2.62 %
    Non-interest income to average assets (2)   0.58 %     0.57 %     0.55 %     0.52 %     0.41 %
    Non-interest expense to average assets (2)   1.88 %     2.01 %     1.83 %     1.88 %     1.84 %
    Efficiency ratio (3)   52.79 %     55.92 %     53.16 %     56.33 %     63.41 %
    Loans by type (at period end): (4)                            
    Residential real estate $ 301,164     $ 297,979     $ 283,477     $ 256,807     $ 237,906  
    Commercial real estate $ 1,150,129     $ 1,128,399     $ 1,095,112     $ 1,053,030     $ 1,057,800  
    Commercial and industrial $ 256,326     $ 258,311     $ 246,539     $ 248,525     $ 228,045  
    Correspondent banks $ 103,026     $ 82,438     $ 103,815     $ 112,510     $ 100,182  
    Consumer and other $ 218,711     $ 198,091     $ 198,604     $ 194,644     $ 194,325  
    Asset quality data:                            
    Allowance for credit losses to total loans   1.22 %     1.22 %     1.19 %     1.19 %     1.18 %
    Allowance for credit losses to non-performing loans   595 %     889 %     846 %     2,933 %     4,705 %
    Total non-performing loans(5) $ 4,156     $ 2,707     $ 2,725     $ 758     $ 456  
    Non-performing loans to total loans   0.20 %     0.14 %     0.14 %     0.04 %     0.03 %
    Non-performing assets to total assets(5)   0.16 %     0.10 %     0.11 %     0.03 %     0.02 %
    Net charge-offs (recoveries of) to average loans (2)   0.00 %     (0.00 )%     (0.00 )%     (0.00 )%     (0.00 )%
    Net charge-offs (recovery) of credit losses $ 2     $ (11 )   $ (6 )   $ (2 )   $ (7 )
    Interest rates and yields:(2)                            
    Loans held for investment   6.17 %     6.25 %     6.32 %     6.16 %     6.01 %
    Investment securities   2.81 %     2.63 %     2.61 %     2.80 %     2.69 %
    Total interest-earning assets   5.51 %     5.57 %     5.61 %     5.54 %     5.34 %
    Deposits(6)   2.49 %     2.48 %     2.66 %     2.64 %     2.76 %
    FHLB advances and other borrowings   3.71 %     3.81 %     4.05 %     4.03 %     4.10 %
    Total interest-bearing liabilities   3.37 %     3.47 %     3.79 %     3.76 %     3.86 %
    Other information:                            
    Full-time equivalent employees   201       199       198       197       199  
                                 
    (1) Loan amounts include deferred fees/costs.
    (2) Annualized.
    (3) Efficiency ratio is defined as total non-interest expense divided by sum of net interest income and total non-interest income.
    (4) Loan amounts exclude deferred fees/costs.
    (5) The amounts for total non-performing loans and total non-performing assets are the same at the dates presented since there was no other real estate owned (OREO) recorded at any of the dates presented.
    (6) Reflects effect of non-interest-bearing deposits.
     
    USCB FINANCIAL HOLDINGS, INC.
    NET INTEREST MARGIN (UNAUDITED)
    (Dollars in thousands)
                                   
      Three Months Ended March 31,
      2025     2024  
      Average
    Balance    		   Interest   Yield/Rate (1)   Average
    Balance    		   Interest   Yield/Rate (1)
    Assets                              
    Interest-earning assets:                              
    Loans held for investment(2) $ 1,986,856   $ 30,245   6.17 %   $ 1,781,528   $ 26,643   6.01 %
    Investment securities (3)   436,935     3,024   2.81 %     419,989     2,811   2.69 %
    Other interest-earning assets   75,182     709   3.82 %     125,244     1,433   4.60 %
    Total interest-earning assets   2,498,973     33,978   5.51 %     2,326,761     30,887   5.34 %
    Non-interest-earning assets   107,620               109,342          
    Total assets $ 2,606,593             $ 2,436,103          
    Liabilities and stockholders’ equity                              
    Interest-bearing liabilities:                              
    Interest-bearing checking deposits $ 53,611     338   2.56 %   $ 53,344     369   2.78 %
    Saving and money market deposits   1,199,027     9,335   3.16 %     1,097,575     10,394   3.81 %
    Time deposits   399,509     3,918   3.98 %     322,912     3,294   4.10 %
    Total interest-bearing deposits   1,652,147     13,591   3.34 %     1,473,831     14,057   3.84 %
    FHLB advances and other borrowings   138,944     1,272   3.71 %     164,187     1,672   4.10 %
    Total interest-bearing liabilities   1,791,091     14,863   3.37 %     1,638,018     15,729   3.86 %
    Non-interest-bearing demand deposits   563,040               574,760          
    Other non-interest-bearing liabilities   32,957               30,233          
    Total liabilities   2,387,088               2,243,011          
    Stockholders’ equity   219,505               193,092          
    Total liabilities and stockholders’ equity $ 2,606,593             $ 2,436,103          
    Net interest income       $ 19,115             $ 15,158    
    Net interest spread (4)             2.14 %               1.48 %
    Net interest margin (5)             3.10 %               2.62 %
                                   
    (1) Annualized.
    (2) Average loan balances include non-accrual loans. Interest income on loans includes accretion of deferred loan fees, net of deferred loan costs.
    (3) At fair value except for securities held to maturity. This amount includes FHLB stock.
    (4) Net interest spread is the average yield earned on total interest-earning assets minus the average rate paid on total interest-bearing liabilities.
    (5) Net interest margin is the ratio of net interest income to total interest-earning assets.
     
    USCB FINANCIAL HOLDINGS, INC.
    NON-GAAP FINANCIAL MEASURES (UNAUDITED)
    (Dollars in thousands)
                                 
      As of or For the Three Months Ended
      3/31/2025   12/31/2024   9/30/2024   6/30/2024   3/31/2024
    Pre-tax pre-provision (“PTPP”) income:(1)                            
    Net income $ 7,658     $ 6,904     $ 6,949     $ 6,209     $ 4,612  
    Plus: Provision for income taxes   2,440       2,197       2,213       1,967       1,426  
    Plus: Provision for credit losses   681       1,030       931       786       410  
    PTPP income $ 10,779     $ 10,131     $ 10,093     $ 8,962     $ 6,448  
                                 
    PTPP return on average assets:(1)                            
    PTPP income $ 10,779     $ 10,131     $ 10,093     $ 8,962     $ 6,448  
    Average assets $ 2,606,593     $ 2,544,592     $ 2,485,434     $ 2,479,222     $ 2,436,103  
    PTPP return on average assets (2)   1.68 %     1.58 %     1.62 %     1.45 %     1.06 %
                                 
    Operating net income:(1)                            
    Net income $ 7,658     $ 6,904     $ 6,949     $ 6,209     $ 4,612  
    Less: Net gains on sale of securities   –       –       –       14       –  
    Less: Tax effect on sale of securities   –       –       –       (4 )     –  
    Operating net income $ 7,658     $ 6,904     $ 6,949     $ 6,199     $ 4,612  
                                 
    Operating PTPP income:(1)                            
    PTPP income $ 10,779     $ 10,131     $ 10,093     $ 8,962     $ 6,448  
    Less: Net gains on sale of securities   –       –       –       14       –  
    Operating PTPP income $ 10,779     $ 10,131     $ 10,093     $ 8,948     $ 6,448  
                                 
    Operating PTPP return on average assets:(1)                            
    Operating PTPP income $ 10,779     $ 10,131     $ 10,093     $ 8,948     $ 6,448  
    Average assets $ 2,606,593     $ 2,544,592     $ 2,485,434     $ 2,479,222     $ 2,436,103  
    Operating PTPP return on average assets (2)   1.68 %     1.58 %     1.62 %     1.45 %     1.06 %
                                 
    Operating return on average assets:(1)                            
    Operating net income $ 7,658     $ 6,904     $ 6,949     $ 6,199     $ 4,612  
    Average assets $ 2,606,593     $ 2,544,592     $ 2,485,434     $ 2,479,222     $ 2,436,103  
    Operating return on average assets (2)   1.19 %     1.08 %     1.11 %     1.01 %     0.76 %
                                 
    Operating return on average equity:(1)                            
    Operating net income $ 7,658     $ 6,904     $ 6,949     $ 6,199     $ 4,612  
    Average equity $ 219,505     $ 215,715     $ 206,641     $ 197,755     $ 193,092  
    Operating return on average equity (2)   14.15 %     12.73 %     13.38 %     12.61 %     9.61 %
                                 
    Operating Revenue:(1)                            
    Net interest income $ 19,115     $ 19,358     $ 18,109     $ 17,311     $ 15,158  
    Non-interest income   3,716       3,627       3,438       3,211       2,464  
    Less: Net gains on sale of securities   –       –       –       14       –  
    Operating revenue $ 22,831     $ 22,985     $ 21,547     $ 20,508     $ 17,622  
                                 
    Operating Efficiency Ratio:(1)                            
    Total non-interest expense $ 12,052     $ 12,854     $ 11,454     $ 11,560     $ 11,174  
    Operating revenue $ 22,831     $ 22,985     $ 21,547     $ 20,508     $ 17,622  
    Operating efficiency ratio   52.79 %     55.92 %     53.16 %     56.37 %     63.41 %
                                 
    (1) The Company believes these non-GAAP measurements are key indicators of the ongoing earnings power of the Company.
    (2) Annualized.
     
    USCB FINANCIAL HOLDINGS, INC.
    NON-GAAP FINANCIAL MEASURES (UNAUDITED)
    (Dollars in thousands, except per share data)
                                 
      As of or For the Three Months Ended
      3/31/2025   12/31/2024   9/30/2024   6/30/2024   3/31/2024
    Tangible book value per common share (at period-end):(1)                            
    Total stockholders’ equity $ 225,088     $ 215,388     $ 213,916     $ 201,020     $ 195,011  
    Less: Intangible assets   –       –       –       –       –  
    Tangible stockholders’ equity $ 225,088     $ 215,388     $ 213,916     $ 201,020     $ 195,011  
    Total shares issued and outstanding (at period-end):                            
    Total common shares issued and outstanding   20,048,385       19,924,632       19,620,632       19,630,632       19,650,463  
    Tangible book value per common share(2) $ 11.23     $ 10.81     $ 10.90     $ 10.24     $ 9.92  
                                 
    Operating diluted net income per common share:(1)                            
    Operating net income $ 7,658     $ 6,904     $ 6,949     $ 6,199     $ 4,612  
    Total weighted average diluted shares of common stock   20,319,535       20,183,731       19,825,211       19,717,167       19,698,258  
    Operating diluted net income per common share: $ 0.38     $ 0.34     $ 0.35     $ 0.31     $ 0.23  
                                 
    Tangible Common Equity/Tangible Assets(1)                            
    Tangible stockholders’ equity $ 225,088     $ 215,388     $ 213,916     $ 201,020     $ 195,011  
    Tangible total assets(3) $ 2,677,382     $ 2,581,216     $ 2,503,954     $ 2,458,270     $ 2,489,142  
    Tangible Common Equity/Tangible Assets   8.41 %     8.34 %     8.54 %     8.18 %     7.83 %
                                 
    (1) The Company believes these non-GAAP measurements are key indicators of the ongoing earnings power of the Company.
    (2) Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock options.
    (3) Since the Company has no intangible assets, tangible total assets is the same amount as total assets calculated under GAAP.

    The MIL Network –