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Category: Commerce

  • MIL-OSI: Hanmi Financial Declares Cash Dividend of $0.27 per share

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, April 24, 2025 (GLOBE NEWSWIRE) — Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today announced that its Board of Directors declared a cash dividend on its common stock for the 2025 second quarter of $0.27 per share. The dividend will be paid on May 21, 2025, to stockholders of record as of the close of business on May 5, 2025.

    About Hanmi Financial Corporation

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

    Forward-Looking Statements

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

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

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

    In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.

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

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

    Source: Hanmi Bank

    The MIL Network –

  • MIL-OSI: Global Agriculture Drones Market Projected to Reach $8.03 Billion By 2029 with Significant Growth Still Expected

    Source: GlobeNewswire (MIL-OSI)

    PALM BEACH, Fla., April 24, 2025 (GLOBE NEWSWIRE) — FN Media Group News Commentary – Many experts see the global agriculture drones market to continue its substantial growth through this decade and maybe beyond. One such industry watcher, MarketsANDMarkets reported that: “The global agriculture drones market was projected to grow to $2.01 Billion in 2024 and reach $8.03 Billion by 2029. High adoption of aerial data collection tools in agriculture holds immense opportunity for the agriculture drones market. As farmers want to boost yields and their uses in resource optimization, precision agricultural tools are in increased demand; drones offer sensors and timely data for crop health and soil conditions. Efficiencies and accuracies increase the appealability of aerial data collection, and more farmers are adopting drone technology. Drones combined with emerging technologies in the form of machine learning and AI make them robust for position and to improve broadband agricultural data systems. Moreover, many industries use drones, and the adoption rate of tools required to collect aerial data is high in the construction, agriculture, and mining industries. Moreover, as farmers emphasize yield optimization and resource utilization more, the use of precision agriculture tools and drones increases. Drones have advanced sensors and real-time data for monitoring crop health and soil conditions. Their efficiency and accuracy appeal to more farmers who have become open to drone technology.”   Active Companies in the drone industry today include ZenaTech, Inc. (NASDAQ: ZENA), Draganfly Inc. (NASDAQ: DPRO), Unusual Machines, Inc. (NYSE American: UMAC), Sidus Space (NASDAQ: SIDU), AgriFORCE Growing Systems Ltd. (NASDAQ: AGRI).

    MarketsANDMarkets continued: “The cereals & grains segment is growing substantially in the agriculture drones market. Cereals like wheat, corn, and rice are staple crops that require precise management to optimize yields, which makes drones more important. Drones can perform aerial surveys, crop health monitoring, and soil condition assessment, thus supporting farmers in informed decisions that may yield maximum productivity and resource utilization. Moreover, precision agriculture development is quite useful for producing cereals and grains. Agriculture drones conduct aerial surveys; thorough data acquisition and actionable insight generation will assist farmers in undertaking focused interventions such as precise irrigation and fertilization. This is resource efficient, cost-reducing, and productivity-enhancing in absolute terms. Moreover, with environmental objectives driving this agenda, increasing the importance of sustainability works well for the cereals & grains segment, with drones monitoring inputs more efficiently for management. The rising trend of digital agriculture, whereby decisions are made based on data, also builds a case for drones in the segment. Thus, considering the above parameters, based on farm produce, the cereals & grains segment is estimated to grow at the highest CAGR during the studied period.”

    ZenaTech (NASDAQ:ZENA) ZenaDrone Granted FAA Part 137 Approval for Agricultural Drone Operations Addressing a $6 Billion Global Agricultural Drone Market Growing to $24 Billion by 2032 – ZenaTech, Inc. (FSE: 49Q) (BMV: ZENA) (“ZenaTech”), a technology company specializing in AI (Artificial Intelligence) drones, Drone as a Service (DaaS), enterprise SaaS and Quantum Computing solutions, announces its subsidiary ZenaDrone has received approval from the Federal Aviation Administration (FAA) to conduct commercial agricultural operations under the rules and regulations of 14 CFR Part 137 for crop spraying and precision agriculture. This approval allows ZenaDrone to commence final testing and deployment of the ZenaDrone 1000 drone for aerial spraying of pesticides, herbicides, fungicides, fertilizers, and seeds for agricultural, environmental and government customers. The company plans to sell these solutions through its Drone as a Service, or DaaS, business model as well as selling the drone hardware and solution directly to larger commercial farms, agribusinesses, and cooperatives.

    “FAA part 137 approval now enables our team to finish final testing and commence sales of our agriculture solutions. Drones offer a more precise, efficient, cost effective and safer alternative to traditional methods while reducing chemical use, crop damage, and manual work, as well as being able to reach hard-to-access areas. We plan, test, then deploy our solutions through our DaaS model in the US first, followed by Ireland where we have a history of pioneering development work in agricultural drones,” said CEO Shaun Passley, Ph.D.

    According to Fortune Business Insights the global agriculture drone market is projected to grow from USD 6.10 billion in 2024 to USD 23.78 billion by 2032, at a compound annual growth rate (CAGR) of 18.5%. This growth reflects a growing demand for precision agriculture, advances in drone technology, cost-effectiveness, government support and incentive programs, and growing awareness and education.

    The ZenaDrone 1000 is an autonomous drone, in a VTOL (Vertical Takeoff and Landing) quadcopter design with a total of eight rotors on its two fixed wings; it is considered a medium-sized drone measuring 12X7 feet in size. It is designed for stable flight, maneuverability, heavy lift capabilities up to 40 kilos, incorporating innovative software technology, AI, sensors, and purpose-built attachments like crop spraying, along with rugged and compact hardware featuring foldable wings enabling the drone to fit into the back of a truck.

    ZenaTech’s DaaS business will incorporate the ZenaDrone 1000 and the IQ series of multifunction autonomous drones to provide a variety of service solutions from land surveys to power line inspections or power washing, made accessible and cost effective through an Uber-like business model on a regular subscription or pay-per-use basis. Customers can conveniently access drones for eliminating manual or time-consuming tasks achieving superior results, such as for surveying, inspections, security and law enforcement, or precision farming applications, without having to buy, operate, or maintain the drones themselves.   Continued… Read this full release by visiting: https://www.financialnewsmedia.com/news-zena/

    Other recent developments in the markets include:

    Draganfly Inc. (NASDAQ: DPRO), an industry-leading developer of drone solutions and systems, recently announced the formation of its Public Safety Advisory Board. This new initiative reinforces Draganfly’s commitment to delivering cutting-edge, mission-critical technologies that support enforcement and public safety agencies worldwide. Renowned global public safety expert and Homeland Security advisor Paul Goldenberg will serve as the inaugural Chair of the Board.

    With more than 30 years of experience in law enforcement, global security, and national intelligence, Goldenberg brings unparalleled expertise to the role. Recently named America’s Most Influential Person in Homeland Security, he has advised U.S. Presidents, members of Congress, and international security bodies on counterterrorism, cybercrime, and public safety. As a former senior member of the U.S. Department of Homeland Security Advisory Council (HSAC), Goldenberg led pivotal initiatives, including the DHS Cybersecurity Task Force and the Countering Foreign Influence Task Force. He currently serves as Chief Advisor for Policy and International Policing at the Rutgers University Miller Center on Policing, a Distinguished Visiting Fellow for Transnational Security at the University of Ottawa, and a member of the National Sheriffs’ Association Southern Border Security Committee.

    Unusual Machines, Inc. (NYSE American: UMAC), a drone and drone components manufacturer, recently announced it filed its Form 10-K with the U.S. Securities and Exchange Commission (the “SEC”) for the fiscal year ended December 31, 2024 and provided the following letter to its shareholders from CEO Allan Evans.

    Dear Shareholders, This shareholder letter follows the completion of our fiscal year 2024. This is our first year being public. It has been an excellent fourth quarter and an incredible year. We continue to see great interest in the company and receive questions from shareholders. We would like to take this opportunity to provide context and deeper insights into our operations and what these represent for Unusual Machines’ future.

    Unusual Machines revenue for the fourth quarter revenue was over $2.0 million which represents a sequentially quarter over quarter increase of approximately 31%. This is our best revenue quarter of all time (again) and was done while improving gross margins slightly to 28%. With the launch of our Blue Framework products, approximately 15% of our Q4 revenue was from enterprise sales. Our total revenue of $5.65M for FY2024 exceeded our target of $5M for 2024 by 13%. This growth was achieved without customer concentration as no single customer represented more than 5% of our total revenue for 2024.

    Sidus Space (NASDAQ: SIDU) recently announced the unveiling of near real-time vessel detection and classification capability to be enabled by its hybrid 3D printed LizzieSat® satellite platform. Processing data directly onboard LizzieSat® through Sidus Orlaith™ AI Ecosystem, which includes FeatherEdge™ edge computing hardware, and the OrbitfyEdge software from Little Place Labs, represents a significant advancement in space-based maritime intelligence.

    In January 2025, Sidus and Little Place Labs (LPL) formed a strategic partnership and signed a Memorandum of Understanding (MOU) to develop integrated satellite solutions based on edge computing and AI applications. This collaboration aims to meet the growing needs of a global customer base and is expected to provide accurate vessel detection and classification within one hour of satellite observation.

    AgriFORCE Growing Systems Ltd. (NASDAQ: AGRI) recently announced significant progress in its Radical Clean Solutions (RCS) division, acquired in August 2024.   The RCS division has been awarded a U.S. patent (Patent No. 17/713,959), dated today, for its design of agricultural integrated systems for Radicals Hydroxyl generation units. This innovative technology provides growers of fruits, vegetables, and other plants with a chemical-free solution for reducing mold, viruses, and volatile organic compounds (VOCs). It can be integrated into existing heating and ventilation systems or used as a standalone unit. Additionally, the system helps lower levels of gases such as ethylene, thereby slowing the ripening process and extending the shelf life of produce.

    Roger M. Slotkin, founder of RCS and on behalf of our RCS division, stated:   “We have applied for multiple patents related to the application of our technologies across various sectors, including agriculture. Our solutions provide businesses with a chemical-free, safe, and effective method for mitigating viruses, mold, and other pathogens—without harm to people, pets, or plants. Over the coming months, we anticipate the approval of several additional patents.”

    About FN Media Group:

    At FN Media Group, via our top-rated online news portal at www.financialnewsmedia.com, we are one of the very few select firms providing top tier one syndicated news distribution, targeted ticker tag press releases and stock market news coverage for today’s emerging companies. #tickertagpressreleases #pressreleases

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    DISCLAIMER:  FN Media Group LLC (FNM), which owns and operates FinancialNewsMedia.com and MarketNewsUpdates.com, is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels.  FNM is NOT affiliated in any manner with any company mentioned herein.  FNM and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security.  FNM’s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities.  The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material.  All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks.  All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release.  FNM is not liable for any investment decisions by its readers or subscribers.  Investors are cautioned that they may lose all or a portion of their investment when investing in stocks.  For current services performed FNM has been compensated fifty one hundred dollars for news coverage of the current press releases issued by ZenaTech, Inc. by the Company.  FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

    This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.

    Contact Information:

    Media Contact email: editor@financialnewsmedia.com – +1(561)325-8757

    SOURCE: FN Media Group

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    FAIRFIELD, N.J., April 24, 2025 (GLOBE NEWSWIRE) — Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported net income for the quarter ended March 31, 2025 of $6.6 million, or $0.11 per diluted share, compared to $6.6 million, or $0.10 per diluted share, for the quarter ended December 31, 2024.

    The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on May 21, 2025, to stockholders of record as of May 7, 2025.

    Craig L. Montanaro, President and Chief Executive Officer, commented, “Quarter over quarter net interest income grew by $1.4 million, resulting in eight basis points of net interest margin expansion. Contributing to this expansion was growth in net loans and deposits, coupled with a 24 basis point decrease in our cost of funds. We anticipate continued strong margin expansion into the June quarter, the final of our 2025 fiscal year.”

    Mr. Montanaro continued, “Despite recent fluctuations in US Treasury rates and broader market indices, our core business continues to perform exceedingly well and we are confident in our ability to sustain and enhance our performance in spite of the volatile environment.”

    Balance Sheet

    • Total assets were $7.73 billion at March 31, 2025, a increase of $1.8 million from December 31, 2024.
    • Investment securities totaled $1.13 billion at March 31, 2025, a decrease of $17.3 million, or 1.5%, from December 31, 2024.
    • Loans receivable totaled $5.85 billion at March 31, 2025, an increase of $54.4 million, or 0.9%, from December 31, 2024, primarily reflecting growth in non-residential mortgage loans.
    • Deposits were $5.71 billion at March 31, 2025, an increase of $36.3 million, or 0.6%, from December 31, 2024. This increase was primarily driven by increases in interest bearing demand deposits and consumer savings deposits, partially offset by a decrease in non-interest bearing demand deposits. The decrease in non-interest bearing deposits was primarily attributable to a $29.3 million outflow from a single depositor who used the funds to finance the construction of a building. Excluding this single account, non-interest bearing deposits increased $14.9 million, or 2.5%.
    • Borrowings were $1.21 billion at March 31, 2025, a decrease of $45.0 million, or 3.6%, from December 31, 2024, reflecting reductions in Federal Home Loan Bank (“FHLB”) overnight borrowings.
    • At March 31, 2025, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.42 billion, representing 31.3% of total assets.

    Earnings

    Net Interest Income and Net Interest Margin

    • Net interest margin expanded eight basis points from the quarter ended December 31, 2024 to 1.90% for the quarter ended March 31, 2025. The increase for the quarter was driven by the paydown of borrowings resulting from growth in lower cost deposits and broad based decreases in deposit rates, partially offset by reduced yields on interest-earning assets.
    • For the quarter ended March 31, 2025, net interest income increased $1.4 million to $34.0 million from $32.6 million for the quarter ended December 31, 2024. Included in net interest income for the quarters ended March 31, 2025 and December 31, 2024, respectively, was purchase accounting accretion of $511,000 and $685,000, and loan prepayment penalty income of $226,000 and $288,000.

    Non-Interest Income

    • For the quarter ended March 31, 2025, non-interest income decreased $311,000, or 6.4%, to $4.6 million from $4.9 million for the quarter ended December 31, 2024, primarily driven by decreases in gain on sale of loans and electronic banking fees and charges.
    • Gain on sale of loans decreased $192,000 to $112,000 for the quarter ended March 31, 2025 from $304,000 for the quarter ended December 31, 2024. The decrease largely reflected a seasonal decrease in the volume of residential mortgage loans sold during the period.
    • Electronic banking fees and charges decreased $102,000 to $391,000 for the quarter March 31, 2025 from $493,000 for the quarter ended December 31, 2024. The decrease largely reflected the absence of a non-recurring increase recorded in the prior period.

    Non-Interest Expense

    • For the quarter ended March 31, 2025, non-interest expense increased $829,000, or 2.8%, to $30.4 million from $29.6 million for the quarter ended December 31, 2024, primarily driven by increases in salary and benefits, net occupancy, advertising, and other expense.
    • Salary and benefits expense increased $121,000 to $17.7 million primarily driven by an increase of $546,000 in payroll taxes and employee benefits associated with the start of a new calendar year, partially offset by a $427,000 non-recurring decrease in stock-based compensation.
    • Net occupancy expense of premises increased $244,000 to $3.1 million primarily driven by seasonally higher snow removal expenses, partially offset by a decrease in repairs and other maintenance expenses.
    • Advertising and marketing expense increased $298,000 to $609,000. This increase was primarily due to higher advertising expenses across various formats, driven by marketing campaigns supporting our loan and deposit growth initiatives.
    • Other expense increased $225,000 primarily driven by a $37,000 provision for credit losses related to off balance sheet commitments compared to a reversal for credit losses on off balance sheet commitments of $116,000 recorded in the prior comparative period. The remaining changes in the other components of non-interest expense between comparative periods generally reflected normal operating fluctuations within those line items.

    Income Taxes

    • Income tax expense totaled $1.2 million for the quarter ended March 31, 2025 compared to $1.3 million for the quarter ended December 31, 2024, resulting in an effective tax rate of 15.3% and 16.0%, respectively.

    Asset Quality

    • The balance of non-performing assets remained steady at $37.7 million, or 0.49% of total assets, at March 31, 2025 and December 31, 2024, respectively.
    • Net charge-offs totaled $368,000, or 0.03% of average loans, on an annualized basis, for the quarter ended March 31, 2025, compared to $573,000, or 0.04% of average loans, on an annualized basis, for the quarter ended December 31, 2024.
    • For the quarter ended March 31, 2025, the Company recorded a provision for credit losses of $366,000, compared to $107,000 for the quarter ended December 31, 2024. The provision for credit loss expense for the quarter ended March 31, 2025 was primarily driven by the charge-offs described above.
    • The ACL was $44.5 million, or 0.76% of total loans, at March 31, 2025, a decrease of $2,000 from $44.5 million, or 0.77% of total loans, at December 31, 2024.

    Capital

    • For the quarter ended March 31, 2025, book value per share increased $0.05, or 0.4%, to $11.58 while tangible book value per share increased $0.05, or 0.5%, to $9.80.
    • At March 31, 2025, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $80.1 million, partially offset by after-tax unrealized gains on derivatives of $10.7 million. After-tax net unrecognized losses on securities held to maturity of $9.9 million were not reflected in total stockholders’ equity.
    • At March 31, 2025, the Company’s tangible equity to tangible assets ratio equaled 8.31% and the regulatory capital ratios of both the Company and the Bank were in excess of the levels required by federal banking regulators to be classified as “well-capitalized” under regulatory guidelines.

    This earnings release should be read in conjunction with Kearny Financial Corp.’s Q3 2025 Investor Presentation, a copy of which is available through the Investor Relations link located at the bottom of the page of our website at www.kearnybank.com and via a Current Report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.

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

    Category: Earnings

    Linked-Quarter Comparative Financial Analysis
    Kearny Financial Corp.
    Consolidated Balance Sheets
    (Unaudited)
     
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		 March 31,
    2025    		 December 31,
    2024    		 Variance
    or Change    		 Variance
    or Change Pct.
    Assets        
    Cash and cash equivalents $ 126,095   $ 141,554   $ (15,459 ) -10.9 %
    Securities available for sale   1,003,393     1,018,279     (14,886 ) -1.5 %
    Securities held to maturity   124,859     127,266     (2,407 ) -1.9 %
    Loans held-for-sale   6,187     5,695     492   8.6 %
    Loans receivable   5,846,175     5,791,758     54,417   0.9 %
    Less: allowance for credit losses on loans   (44,455 )   (44,457 )   (2 ) -0.0 %
    Net loans receivable   5,801,720     5,747,301     54,419   0.9 %
    Premises and equipment   44,192     45,127     (935 ) -2.1 %
    Federal Home Loan Bank stock   62,261     64,443     (2,182 ) -3.4 %
    Accrued interest receivable   28,521     27,772     749   2.7 %
    Goodwill   113,525     113,525     —   — %
    Core deposit intangible   1,554     1,679     (125 ) -7.4 %
    Bank owned life insurance   303,629     301,339     2,290   0.8 %
    Deferred income taxes, net   52,913     53,325     (412 ) -0.8 %
    Other assets   64,292     84,080     (19,788 ) -23.5 %
    Total assets $ 7,733,141   $ 7,731,385   $ 1,756   0.0 %
             
    Liabilities        
    Deposits:        
    Non-interest-bearing $ 587,118   $ 601,510   $ (14,392 ) -2.4 %
    Interest-bearing   5,120,230     5,069,550     50,680   1.0 %
    Total deposits   5,707,348     5,671,060     36,288   0.6 %
    Borrowings   1,213,976     1,258,949     (44,973 ) -3.6 %
    Advance payments by borrowers for taxes   19,981     17,986     1,995   11.1 %
    Other liabilities   43,723     38,537     5,186   13.5 %
    Total liabilities   6,985,028     6,986,532     (1,504 ) -0.0 %
             
    Stockholders’ Equity        
    Common stock   646     646     —   — %
    Paid-in capital   494,131     494,092     39   0.0 %
    Retained earnings   341,921     342,155     (234 ) -0.1 %
    Unearned ESOP shares   (19,457 )   (19,943 )   486   2.4 %
    Accumulated other comprehensive loss   (69,128 )   (72,097 )   2,969   4.1 %
    Total stockholders’ equity   748,113     744,853     3,260   0.4 %
    Total liabilities and stockholders’ equity $ 7,733,141   $ 7,731,385   $ 1,756   0.0 %
             
    Consolidated capital ratios        
    Equity to assets   9.67 %   9.63 %   0.04 %  
    Tangible equity to tangible assets(1)   8.31 %   8.27 %   0.04 %  
             
    Share data        
    Outstanding shares   64,580     64,580     —   — %
    Book value per share $ 11.58   $ 11.53   $ 0.05   0.4 %
    Tangible book value per share(2) $ 9.80   $ 9.75   $ 0.05   0.5 %

    _________________________

    (1) Tangible equity equals total stockholders’ equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
    (2) Tangible book value equals total stockholders’ equity reduced by goodwill and core deposit intangible assets.
     
    Kearny Financial Corp.
    Consolidated Statements of Income
    (Unaudited)
     
      Three Months Ended    
    (Dollars and Shares in Thousands, 
    Except Per Share Data)    		 March 31,
    2025    		 December 31,
    2024    		 Variance 
    or Change          		 Variance
    or Change Pct. 
    Interest income        
    Loans $ 64,768   $ 65,408   $ (640 ) -1.0 %
    Taxable investment securities   12,738     13,803     (1,065 ) -7.7 %
    Tax-exempt investment securities   55     59     (4 ) -6.8 %
    Other interest-earning assets   1,773     2,215     (442 ) -20.0 %
    Total interest income   79,334     81,485     (2,151 ) -2.6 %
             
    Interest expense        
    Deposits   34,912     36,721     (1,809 ) -4.9 %
    Borrowings   10,380     12,152     (1,772 ) -14.6 %
    Total interest expense   45,292     48,873     (3,581 ) -7.3 %
    Net interest income   34,042     32,612     1,430   4.4 %
    Provision for credit losses   366     107     259   242.1 %
    Net interest income after provision for credit losses   33,676     32,505     1,171   3.6 %
             
    Non-interest income        
    Fees and service charges   573     627     (54 ) -8.6 %
    Gain on sale of loans   112     304     (192 ) -63.2 %
    Income from bank owned life insurance   2,617     2,619     (2 ) -0.1 %
    Electronic banking fees and charges   391     493     (102 ) -20.7 %
    Other income   869     830     39   4.7 %
    Total non-interest income   4,562     4,873     (311 ) -6.4 %
             
    Non-interest expense        
    Salaries and employee benefits   17,700     17,579     121   0.7 %
    Net occupancy expense of premises   3,075     2,831     244   8.6 %
    Equipment and systems   3,921     3,892     29   0.7 %
    Advertising and marketing   609     311     298   95.8 %
    Federal deposit insurance premium   1,450     1,503     (53 ) -3.5 %
    Directors’ compensation   326     361     (35 ) -9.7 %
    Other expense   3,309     3,084     225   7.3 %
    Total non-interest expense   30,390     29,561     829   2.8 %
    Income before income taxes   7,848     7,817     31   0.4 %
    Income taxes   1,200     1,251     (51 ) -4.1 %
    Net income $ 6,648   $ 6,566   $ 82   1.2 %
             
    Net income per common share (EPS)        
    Basic $ 0.11   $ 0.11   $ —    
    Diluted $ 0.11   $ 0.10   $ 0.01    
             
    Dividends declared        
    Cash dividends declared per common share $ 0.11   $ 0.11   $ —    
    Cash dividends declared $ 6,933   $ 6,933   $ —    
    Dividend payout ratio   104.3 %   105.6 %   -1.3 %  
             
    Weighted average number of common shares outstanding        
    Basic   62,548     62,443     105    
    Diluted   62,713     62,576     137    
    Kearny Financial Corp.
    Average Balance Sheet Data
    (Unaudited)
     
      Three Months Ended        
    (Dollars in Thousands)  March 31,
    2025    		 December 31,
    2024    		  Variance
    or Change         		 Variance
    or Change Pct. 
    Assets        
    Interest-earning assets:        
    Loans receivable, including loans held for sale $ 5,805,045   $ 5,762,053   $ 42,992   0.7 %
    Taxable investment securities   1,251,612     1,285,800     (34,188 ) -2.7 %
    Tax-exempt investment securities   9,135     9,711     (576 ) -5.9 %
    Other interest-earning assets   110,736     116,354     (5,618 ) -4.8 %
    Total interest-earning assets   7,176,528     7,173,918     2,610   0.0 %
    Non-interest-earning assets   457,206     459,982     (2,776 ) -0.6 %
    Total assets $ 7,633,734   $ 7,633,900   $ (166 ) -0.0 %
             
    Liabilities and Stockholders’ Equity        
    Interest-bearing liabilities:        
    Deposits:        
    Interest-bearing demand $ 2,405,974   $ 2,314,378   $ 91,596   4.0 %
    Savings   751,243     711,801     39,442   5.5 %
    Certificates of deposit (retail)   1,215,767     1,216,948     (1,181 ) -0.1 %
    Certificates of deposit (brokered)   730,612     730,773     (161 ) -0.0 %
    Total interest-bearing deposits   5,103,596     4,973,900     129,696   2.6 %
    Borrowings:        
    Federal Home Loan Bank advances   1,028,958     1,085,455     (56,497 ) -5.2 %
    Other borrowings   93,389     156,522     (63,133 ) -40.3 %
    Total borrowings   1,122,347     1,241,977     (119,630 ) -9.6 %
    Total interest-bearing liabilities   6,225,943     6,215,877     10,066   0.2 %
    Non-interest-bearing liabilities:        
    Non-interest-bearing deposits   602,647     604,915     (2,268 ) -0.4 %
    Other non-interest-bearing liabilities   59,919     65,258     (5,339 ) -8.2 %
    Total non-interest-bearing liabilities   662,566     670,173     (7,607 ) -1.1 %
    Total liabilities   6,888,509     6,886,050     2,459   0.0 %
    Stockholders’ equity   745,225     747,850     (2,625 ) -0.4 %
    Total liabilities and stockholders’ equity $ 7,633,734   $ 7,633,900   $ (166 ) -0.0 %
             
    Average interest-earning assets to average interest-bearing liabilities   115.27 %   115.41 %   -0.14 % -0.1 %
    Kearny Financial Corp.
    Performance Ratio Highlights
    (Unaudited)
     
      Three Months Ended  
      March 31,
    2025    		 December 31,
    2024    		 Variance
    or Change     
    Average yield on interest-earning assets:      
    Loans receivable, including loans held for sale 4.46 % 4.54 % -0.08 %
    Taxable investment securities 4.07 % 4.29 % -0.22 %
    Tax-exempt investment securities(1) 2.43 % 2.42 % 0.01 %
    Other interest-earning assets 6.40 % 7.62 % -1.22 %
    Total interest-earning assets 4.42 % 4.54 % -0.12 %
           
    Average cost of interest-bearing liabilities:      
    Deposits:      
    Interest-bearing demand 2.73 % 2.96 % -0.23 %
    Savings 1.30 % 1.29 % 0.01 %
    Certificates of deposit (retail) 3.73 % 4.06 % -0.33 %
    Certificates of deposit (brokered) 2.58 % 2.70 % -0.12 %
    Total interest-bearing deposits 2.74 % 2.95 % -0.21 %
    Borrowings:      
    Federal Home Loan Bank advances 3.63 % 3.78 % -0.15 %
    Other borrowings 4.41 % 4.88 % -0.47 %
    Total borrowings 3.70 % 3.91 % -0.21 %
    Total interest-bearing liabilities 2.91 % 3.15 % -0.24 %
           
    Interest rate spread(2) 1.51 % 1.39 % 0.12 %
    Net interest margin(3) 1.90 % 1.82 % 0.08 %
           
    Non-interest income to average assets (annualized) 0.24 % 0.26 % -0.02 %
    Non-interest expense to average assets (annualized) 1.59 % 1.55 % 0.04 %
           
    Efficiency ratio(4) 78.72 % 78.86 % -0.14 %
           
    Return on average assets (annualized) 0.35 % 0.34 % 0.01 %
    Return on average equity (annualized) 3.57 % 3.51 % 0.06 %
    Return on average tangible equity (annualized)(5) 4.28 % 4.21 % 0.07 %

    _________________________

    (1) The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.
    (2) Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.
    (3) Net interest income divided by average interest-earning assets.
    (4) Non-interest expense divided by the sum of net interest income and non-interest income.
    (5) Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.
    Five-Quarter Financial Trend Analysis
    Kearny Financial Corp.
    Consolidated Balance Sheets
               
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		 March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024
      (Unaudited) (Unaudited) (Unaudited) (Audited) (Unaudited)
    Assets          
    Cash and cash equivalents $ 126,095   $ 141,554   $ 155,574   $ 63,864   $ 71,027  
    Securities available for sale   1,003,393     1,018,279     1,070,811     1,072,833     1,098,655  
    Securities held to maturity   124,859     127,266     132,256     135,742     139,643  
    Loans held-for-sale   6,187     5,695     8,866     6,036     4,117  
    Loans receivable   5,846,175     5,791,758     5,784,246     5,732,787     5,758,336  
    Less: allowance for credit losses on loans   (44,455 )   (44,457 )   (44,923 )   (44,939 )   (44,930 )
    Net loans receivable   5,801,720     5,747,301     5,739,323     5,687,848     5,713,406  
    Premises and equipment   44,192     45,127     45,189     44,940     45,053  
    Federal Home Loan Bank stock   62,261     64,443     57,706     80,300     81,347  
    Accrued interest receivable   28,521     27,772     29,467     29,521     31,065  
    Goodwill   113,525     113,525     113,525     113,525     210,895  
    Core deposit intangible   1,554     1,679     1,805     1,931     2,057  
    Bank owned life insurance   303,629     301,339     300,186     297,874     296,493  
    Deferred income taxes, net   52,913     53,325     50,131     50,339     47,225  
    Other assets   64,292     84,080     67,540     98,708     100,989  
    Total assets $ 7,733,141   $ 7,731,385   $ 7,772,379   $ 7,683,461   $ 7,841,972  
               
    Liabilities          
    Deposits:          
    Non-interest-bearing $ 587,118   $ 601,510   $ 592,099   $ 598,366   $ 586,089  
    Interest-bearing   5,120,230     5,069,550     4,878,413     4,559,757     4,622,961  
    Total deposits   5,707,348     5,671,060     5,470,512     5,158,123     5,209,050  
    Borrowings   1,213,976     1,258,949     1,479,888     1,709,789     1,722,178  
    Advance payments by borrowers for taxes   19,981     17,986     17,824     17,409     17,387  
    Other liabilities   43,723     38,537     52,618     44,569     44,279  
    Total liabilities   6,985,028     6,986,532     7,020,842     6,929,890     6,992,894  
               
    Stockholders’ Equity          
    Common stock   646     646     646     644     644  
    Paid-in capital   494,131     494,092     493,523     493,680     493,187  
    Retained earnings   341,921     342,155     342,522     343,326     440,308  
    Unearned ESOP shares   (19,457 )   (19,943 )   (20,430 )   (20,916 )   (21,402 )
    Accumulated other comprehensive loss   (69,128 )   (72,097 )   (64,724 )   (63,163 )   (63,659 )
    Total stockholders’ equity   748,113     744,853     751,537     753,571     849,078  
    Total liabilities and stockholders’ equity $ 7,733,141   $ 7,731,385   $ 7,772,379   $ 7,683,461   $ 7,841,972  
               
    Consolidated capital ratios          
    Equity to assets   9.67 %   9.63 %   9.67 %   9.81 %   10.83 %
    Tangible equity to tangible assets(1)   8.31 %   8.27 %   8.31 %   8.43 %   8.34 %
               
    Share data          
    Outstanding shares   64,580     64,580     64,580     64,434     64,437  
    Book value per share $ 11.58   $ 11.53   $ 11.64   $ 11.70   $ 13.18  
    Tangible book value per share(2) $ 9.80   $ 9.75   $ 9.85   $ 9.90   $ 9.87  

    _________________________

    (1) Tangible equity equals total stockholders’ equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
    (2) Tangible book value equals total stockholders’ equity reduced by goodwill and core deposit intangible assets.
     
    Kearny Financial Corp.
    Supplemental Balance Sheet Highlights
    (Unaudited)
               
    (Dollars in Thousands) March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024
    Loan portfolio composition:          
    Commercial loans:          
    Multi-family mortgage $ 2,733,406   $ 2,722,623   $ 2,646,187   $ 2,645,851   $ 2,645,195  
    Nonresidential mortgage   988,074     950,194     950,771     948,075     965,539  
    Commercial business   140,224     135,740     145,984     142,747     147,326  
    Construction   174,722     176,704     227,327     209,237     229,457  
    Total commercial loans   4,036,426     3,985,261     3,970,269     3,945,910     3,987,517  
    One- to four-family residential mortgage   1,761,465     1,765,160     1,768,230     1,756,051     1,741,644  
    Consumer loans:          
    Home equity loans   49,699     47,101     44,741     44,104     42,731  
    Other consumer   2,859     2,778     2,965     2,685     3,198  
    Total consumer loans   52,558     49,879     47,706     46,789     45,929  
    Total loans, excluding yield adjustments   5,850,449     5,800,300     5,786,205     5,748,750     5,775,090  
    Unaccreted yield adjustments   (4,274 )   (8,542 )   (1,959 )   (15,963 )   (16,754 )
    Loans receivable, net of yield adjustments   5,846,175     5,791,758     5,784,246     5,732,787     5,758,336  
    Less: allowance for credit losses on loans   (44,455 )   (44,457 )   (44,923 )   (44,939 )   (44,930 )
    Net loans receivable $ 5,801,720   $ 5,747,301   $ 5,739,323   $ 5,687,848   $ 5,713,406  
               
    Asset quality:          
    Nonperforming assets:          
    Accruing loans – 90 days and over past due $ —   $ —   $ —   $ —   $ —  
    Nonaccrual loans   37,683     37,697     39,854     39,882     39,546  
    Total nonperforming loans   37,683     37,697     39,854     39,882     39,546  
    Nonaccrual loans held-for-sale   —     —     —     —     —  
    Other real estate owned   —     —     —     —     —  
    Total nonperforming assets $ 37,683   $ 37,697   $ 39,854   $ 39,882   $ 39,546  
               
    Nonperforming loans (% total loans)   0.64 %   0.65 %   0.69 %   0.70 %   0.69 %
    Nonperforming assets (% total assets)   0.49 %   0.49 %   0.51 %   0.52 %   0.50 %
               
    Classified loans $ 125,790   $ 132,216   $ 119,534   $ 118,700   $ 115,772  
               
    Allowance for credit losses on loans (ACL):          
    ACL to total loans   0.76 %   0.77 %   0.78 %   0.78 %   0.78 %
    ACL to nonperforming loans   117.97 %   117.93 %   112.72 %   112.68 %   113.61 %
    Net charge-offs $ 368   $ 573   $ 124   $ 3,518   $ 286  
    Average net charge-off rate (annualized)   0.03 %   0.04 %   0.01 %   0.25 %   0.02 %
    Kearny Financial Corp.
    Supplemental Balance Sheet Highlights
    (Unaudited)
     
    (Dollars in Thousands) March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024
    Funding composition:          
    Deposits:          
    Non-interest-bearing deposits $ 587,118   $ 601,510   $ 592,099   $ 598,367   $ 586,089  
    Interest-bearing demand   2,410,925     2,380,408     2,247,685     2,308,915     2,349,032  
    Savings   758,239     742,266     681,709     643,481     630,456  
    Certificates of deposit (retail)   1,218,479     1,213,887     1,215,746     1,199,127     1,235,261  
    Certificates of deposit (brokered)   732,587     732,989     733,273     408,234     408,212  
    Interest-bearing deposits   5,120,230     5,069,550     4,878,413     4,559,757     4,622,961  
    Total deposits   5,707,348     5,671,060     5,470,512     5,158,124     5,209,050  
               
    Borrowings:          
    Federal Home Loan Bank advances   1,028,976     1,028,949     1,209,888     1,534,789     1,457,178  
    Overnight borrowings   185,000     230,000     270,000     175,000     265,000  
    Total borrowings   1,213,976     1,258,949     1,479,888     1,709,789     1,722,178  
               
    Total funding $ 6,921,324   $ 6,930,009   $ 6,950,400   $ 6,867,913   $ 6,931,228  
               
    Loans as a % of deposits   101.8 %   101.4 %   105.1 %   110.4 %   109.8 %
    Deposits as a % of total funding   82.5 %   81.8 %   78.7 %   75.1 %   75.2 %
    Borrowings as a % of total funding   17.5 %   18.2 %   21.3 %   24.9 %   24.8 %
               
    Uninsured deposits:          
    Uninsured deposits (reported)(1) $ 1,959,070   $ 1,935,607   $ 1,799,726   $ 1,772,623   $ 1,760,740  
    Uninsured deposits (adjusted)(2) $ 799,238   $ 797,721   $ 773,375   $ 764,447   $ 718,026  

    _________________________

    (1) Uninsured deposits of Kearny Bank.
    (2) Uninsured deposits of Kearny Bank adjusted to exclude deposits of its wholly-owned subsidiary and holding company and collateralized deposits of state and local governments.
     
    Kearny Financial Corp.
    Consolidated Statements of Income (Loss)
    (Unaudited)
       
      Three Months Ended
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		 March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024
    Interest income          
    Loans $ 64,768   $ 65,408   $ 66,331   $ 65,819   $ 64,035  
    Taxable investment securities   12,738     13,803     14,384     14,802     15,490  
    Tax-exempt investment securities   55     59     71     80     85  
    Other interest-earning assets   1,773     2,215     2,466     2,289     2,475  
    Total interest income   79,334     81,485     83,252     82,990     82,085  
               
    Interest expense          
    Deposits   34,912     36,721     35,018     32,187     32,320  
    Borrowings   10,380     12,152     15,788     17,527     15,446  
    Total interest expense   45,292     48,873     50,806     49,714     47,766  
    Net interest income   34,042     32,612     32,446     33,276     34,319  
    Provision for credit losses   366     107     108     3,527     349  
    Net interest income after provision for credit losses   33,676     32,505     32,338     29,749     33,970  
               
    Non-interest income          
    Fees and service charges   573     627     635     580     657  
    Gain (loss) on sale of loans   112     304     200     111     (712 )
    Income from bank owned life insurance   2,617     2,619     2,567     3,209     3,039  
    Electronic banking fees and charges   391     493     391     1,130     464  
    Other income   869     830     833     776     755  
    Total non-interest income   4,562     4,873     4,626     5,806     4,203  
               
    Non-interest expense          
    Salaries and employee benefits   17,700     17,579     17,498     17,266     16,911  
    Net occupancy expense of premises   3,075     2,831     2,798     2,738     2,863  
    Equipment and systems   3,921     3,892     3,860     3,785     3,823  
    Advertising and marketing   609     311     342     480     387  
    Federal deposit insurance premium   1,450     1,503     1,563     1,532     1,429  
    Directors’ compensation   326     361     361     360     360  
    Goodwill impairment   —     —     —     97,370     —  
    Other expense   3,309     3,084     3,364     3,020     3,286  
    Total non-interest expense   30,390     29,561     29,786     126,551     29,059  
    Income (loss) before income taxes   7,848     7,817     7,178     (90,996 )   9,114  
    Income taxes   1,200     1,251     1,086     (917 )   1,717  
    Net income (loss) $ 6,648   $ 6,566   $ 6,092   $ (90,079 ) $ 7,397  
               
    Net income (loss) per common share (EPS)          
    Basic $ 0.11   $ 0.11   $ 0.10   $ (1.45 ) $ 0.12  
    Diluted $ 0.11   $ 0.10   $ 0.10   $ (1.45 ) $ 0.12  
               
    Dividends declared          
    Cash dividends declared per common share $ 0.11   $ 0.11   $ 0.11   $ 0.11   $ 0.11  
    Cash dividends declared $ 6,933   $ 6,933   $ 6,896   $ 6,903   $ 6,844  
    Dividend payout ratio   104.3 %   105.6 %   113.2 %   -7.7 %   92.5 %
               
    Weighted average number of common shares outstanding          
    Basic   62,548     62,443     62,389     62,254     62,205  
    Diluted   62,713     62,576     62,420     62,330     62,211  
    Kearny Financial Corp.
    Average Balance Sheet Data
    (Unaudited)
     
      Three Months Ended
    (Dollars in Thousands) March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024
    Assets          
    Interest-earning assets:          
    Loans receivable, including loans held-for-sale $ 5,805,045   $ 5,762,053   $ 5,761,593   $ 5,743,008   $ 5,752,477  
    Taxable investment securities   1,251,612     1,285,800     1,314,945     1,343,541     1,382,064  
    Tax-exempt investment securities   9,135     9,711     12,244     13,737     14,614  
    Other interest-earning assets   110,736     116,354     131,981     128,257     125,155  
    Total interest-earning assets   7,176,528     7,173,918     7,220,763     7,228,543     7,274,310  
    Non-interest-earning assets   457,206     459,982     467,670     466,537     577,411  
    Total assets $ 7,633,734   $ 7,633,900   $ 7,688,433   $ 7,695,080   $ 7,851,721  
               
    Liabilities and Stockholders’ Equity          
    Interest-bearing liabilities:          
    Deposits:          
    Interest-bearing demand $ 2,405,974   $ 2,314,378   $ 2,282,608   $ 2,310,521   $ 2,378,831  
    Savings   751,243     711,801     668,240     631,622     635,226  
    Certificates of deposit (retail)   1,215,767     1,216,948     1,203,770     1,208,101     1,257,362  
    Certificates of deposit (brokered)   730,612     730,773     551,819     405,697     448,151  
    Total interest-bearing deposits   5,103,596     4,973,900     4,706,437     4,555,941     4,719,570  
    Borrowings:          
    Federal Home Loan Bank advances   1,028,958     1,085,455     1,325,583     1,507,192     1,428,801  
    Other borrowings   93,389     156,522     237,011     228,461     210,989  
    Total borrowings   1,122,347     1,241,977     1,562,594     1,735,653     1,639,790  
    Total interest-bearing liabilities   6,225,943     6,215,877     6,269,031     6,291,594     6,359,360  
    Non-interest-bearing liabilities:          
    Non-interest-bearing deposits   602,647     604,915     599,095     589,438     581,870  
    Other non-interest-bearing liabilities   59,919     65,258     69,629     62,978     65,709  
    Total non-interest-bearing liabilities   662,566     670,173     668,724     652,416     647,579  
    Total liabilities   6,888,509     6,886,050     6,937,755     6,944,010     7,006,939  
    Stockholders’ equity   745,225     747,850     750,678     751,070     844,782  
    Total liabilities and stockholders’ equity $ 7,633,734   $ 7,633,900   $ 7,688,433   $ 7,695,080   $ 7,851,721  
               
    Average interest-earning assets to average
    interest-bearing liabilities    		   115.27 %   115.41 %   115.18 %   114.89 %   114.39 %
    Kearny Financial Corp.
    Performance Ratio Highlights
     
      Three Months Ended
      March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024
    Average yield on interest-earning assets:          
    Loans receivable, including loans held-for-sale 4.46 % 4.54 % 4.61 % 4.58 % 4.45 %
    Taxable investment securities 4.07 % 4.29 % 4.38 % 4.41 % 4.48 %
    Tax-exempt investment securities(1) 2.43 % 2.42 % 2.32 % 2.32 % 2.32 %
    Other interest-earning assets 6.40 % 7.62 % 7.47 % 7.14 % 7.91 %
    Total interest-earning assets 4.42 % 4.54 % 4.61 % 4.59 % 4.51 %
               
    Average cost of interest-bearing liabilities:          
    Deposits:          
    Interest-bearing demand 2.73 % 2.96 % 3.13 % 3.06 % 3.08 %
    Savings 1.30 % 1.29 % 1.05 % 0.63 % 0.46 %
    Certificates of deposit (retail) 3.73 % 4.06 % 4.12 % 3.95 % 3.52 %
    Certificates of deposit (brokered) 2.58 % 2.70 % 2.18 % 1.59 % 1.97 %
    Total interest-bearing deposits 2.74 % 2.95 % 2.98 % 2.83 % 2.74 %
    Borrowings:          
    Federal Home Loan Bank advances 3.63 % 3.78 % 3.82 % 3.86 % 3.55 %
    Other borrowings 4.41 % 4.88 % 5.28 % 5.24 % 5.22 %
    Total borrowings 3.70 % 3.91 % 4.04 % 4.04 % 3.77 %
    Total interest-bearing liabilities 2.91 % 3.15 % 3.24 % 3.16 % 3.00 %
               
    Interest rate spread(2) 1.51 % 1.39 % 1.37 % 1.43 % 1.51 %
    Net interest margin(3) 1.90 % 1.82 % 1.80 % 1.84 % 1.89 %
               
    Non-interest income to average assets (annualized) 0.24 % 0.26 % 0.24 % 0.30 % 0.21 %
    Non-interest expense to average assets (annualized) 1.59 % 1.55 % 1.55 % 6.58 % 1.48 %
               
    Efficiency ratio(4) 78.72 % 78.86 % 80.35 % 323.81 % 75.43 %
               
    Return on average assets (annualized) 0.35 % 0.34 % 0.32 % -4.68 % 0.38 %
    Return on average equity (annualized) 3.57 % 3.51 % 3.25 % -47.97 % 3.50 %
    Return on average tangible equity (annualized)(5) 4.28 % 4.21 % 3.89 % 3.33 % 4.68 %

    _________________________

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

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

     
    Kearny Financial Corp.
    Reconciliation of GAAP to Non-GAAP
    (Unaudited)
     
      Three Months Ended
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		 March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024
    Adjusted net income:          
    Net income (loss) (GAAP) $ 6,648   $ 6,566   $ 6,092   $ (90,079 ) $ 7,397  
    Non-recurring transactions – net of tax:          
    Net effect of bank-owned life insurance restructure   —     —     —     392     —  
    Goodwill impairment   —     —     —     95,283     —  
    Adjusted net income $ 6,648   $ 6,566   $ 6,092   $ 5,596   $ 7,397  
               
    Calculation of pre-tax, pre-provision net revenue:          
    Net income (loss) (GAAP) $ 6,648   $ 6,566   $ 6,092   $ (90,079 ) $ 7,397  
    Adjustments to net income (GAAP):          
    Provision for income taxes   1,200     1,251     1,086     (917 )   1,717  
    Provision for credit losses   366     107     108     3,527     349  
    Pre-tax, pre-provision net revenue (non-GAAP) $ 8,214   $ 7,924   $ 7,286   $ (87,469 ) $ 9,463  
               
    Adjusted earnings per share:          
    Weighted average common shares – basic   62,548     62,443     62,389     62,254     62,205  
    Weighted average common shares – diluted   62,713     62,576     62,420     62,330     62,211  
               
    Earnings per share – basic (GAAP) $ 0.11   $ 0.11   $ 0.10   $ (1.45 ) $ 0.12  
    Earnings per share – diluted (GAAP) $ 0.11   $ 0.10   $ 0.10   $ (1.45 ) $ 0.12  
               
    Adjusted earnings per share – basic (non-GAAP) $ 0.11   $ 0.11   $ 0.10   $ 0.09   $ 0.12  
    Adjusted earnings per share – diluted (non-GAAP) $ 0.11   $ 0.10   $ 0.10   $ 0.09   $ 0.12  
               
    Pre-tax, pre-provision net revenue per share:          
    Pre-tax, pre-provision net revenue per share – basic
    (non-GAAP)    		 $ 0.13   $ 0.13   $ 0.12   $ (1.41 ) $ 0.15  
    Pre-tax, pre-provision net revenue per share – diluted
    (non-GAAP)    		 $ 0.13   $ 0.13   $ 0.12   $ (1.41 ) $ 0.15  
               
    Adjusted return on average assets:          
    Total average assets $ 7,633,734   $ 7,633,900   $ 7,688,433   $ 7,695,080   $ 7,851,721  
               
    Return on average assets (GAAP)   0.35 %   0.34 %   0.32 %   -4.68 %   0.38 %
    Adjusted return on average assets (non-GAAP)   0.35 %   0.34 %   0.32 %   0.29 %   0.38 %
               
    Adjusted return on average equity:          
    Total average equity $ 745,225   $ 747,850   $ 750,678   $ 751,070   $ 844,782  
               
    Return on average equity (GAAP)   3.57 %   3.51 %   3.25 %   -47.97 %   3.50 %
    Adjusted return on average equity (non-GAAP)   3.57 %   3.51 %   3.25 %   2.98 %   3.50 %
    Kearny Financial Corp.
    Reconciliation of GAAP to Non-GAAP
    (Unaudited)
     
      Three Months Ended
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		 March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024
    Adjusted return on average tangible equity:          
    Total average equity $ 745,225   $ 747,850   $ 750,678   $ 751,070   $ 844,782  
    Less: average goodwill   (113,525 )   (113,525 )   (113,525 )   (113,525 )   (210,895 )
    Less: average other intangible assets   (1,636 )   (1,761 )   (1,886 )   (2,006 )   (2,138 )
    Total average tangible equity $ 630,064   $ 632,564   $ 635,267   $ 635,539   $ 631,749  
               
    Return on average tangible equity (non-GAAP)   4.28 %   4.21 %   3.89 %   3.33 %   4.68 %
    Adjusted return on average tangible equity (non-GAAP)   4.28 %   4.21 %   3.89 %   3.58 %   4.68 %
               
    Adjusted non-interest expense ratio:          
    Non-interest expense (GAAP) $ 30,390   $ 29,561   $ 29,786   $ 126,551   $ 29,059  
    Non-recurring transactions:          
    Goodwill impairment   —     —     —     (97,370 )   —  
    Non-interest expense (non-GAAP) $ 30,390   $ 29,561   $ 29,786   $ 29,181   $ 29,059  
               
    Non-interest expense ratio (GAAP)   1.59 %   1.55 %   1.55 %   6.58 %   1.48 %
    Adjusted non-interest expense ratio (non-GAAP)   1.59 %   1.55 %   1.55 %   1.52 %   1.48 %
               
    Adjusted efficiency ratio:          
    Non-interest expense (non-GAAP) $ 30,390   $ 29,561   $ 29,786   $ 29,181   $ 29,059  
               
    Net interest income (GAAP) $ 34,042   $ 32,612   $ 32,446   $ 33,276   $ 34,319  
    Total non-interest income (GAAP)   4,562     4,873     4,626     5,806     4,203  
    Non-recurring transactions:          
    Net effect of bank-owned life insurance restructure   —     —     —     392     —  
    Total revenue (non-GAAP) $ 38,604   $ 37,485   $ 37,072   $ 39,474   $ 38,522  
               
    Efficiency ratio (GAAP)   78.72 %   78.86 %   80.35 %   323.81 %   75.43 %
    Adjusted efficiency ratio (non-GAAP)   78.72 %   78.86 %   80.35 %   73.92 %   75.43 %

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

    The MIL Network –

  • MIL-OSI: PSB Holdings, Inc. Reports Earnings of $0.60 Per Share for Q1 2025; Net Interest Margin Improves For Fourth Consecutive Quarter

    Source: GlobeNewswire (MIL-OSI)

    WAUSAU, Wis., April 24, 2025 (GLOBE NEWSWIRE) — PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank (“Peoples”) serving Northcentral and Southeastern Wisconsin reported first quarter earnings ending March 31, 2025 of $0.60 per common share on net income of $2.4 million, compared to $0.73 per common share on net income of $3.0 million during the fourth quarter ending December 31, 2024, and $0.39 per common share on net income of $1.6 million during the first quarter ending March 31, 2024.

    PSB’s first quarter 2025 operating results reflected the following changes from the fourth quarter of 2024: (1) a stronger net interest margin as asset yields rose and funding costs declined; (2) the addition of a provision for loan losses due to loan growth; (3) higher non-interest income due to lower losses on the sale of securities and an increase in investment and insurance sale commissions; (4) higher non-interest expenses due to higher salaries and employee benefit expenses associated with commercial loan growth incentives and the addition of wealth management personnel; and (5) loan growth of 2% during the quarter.

    “We are encouraged with the steady improvements in our net interest margin while also continuing solid loan growth as customers are seeing value in our relationship. We expect operating expenses to decline in the coming quarter and are cautiously optimistic for earnings growth for the remainder of 2025,” stated Scott Cattanach, President and CEO.

    March 31, 2025, Highlights:

    • Net interest income decreased $121,000 to $10.3 million for the quarter ended March 31, 2025, from $10.4 million for the quarter ended December 31, 2024, due in part to two fewer days during the quarter. Meanwhile, asset and loan yields increased while funding costs declined slightly.
    • Noninterest income increased $589,000 to $1.9 million for the quarter ended March 31, 2025, compared to $1.3 million the prior quarter due to a smaller loss on the sale of securities and an increase in investment and insurance sales commissions.
    • Noninterest expenses increased to $967,000 to $9.0 million during the quarter ended March 31, 2025 from $8.0 million for the quarter ended December 31, 2024, reflecting higher salary and benefit expenses associated with growth incentive payments and the addition of wealth management personnel in the purchase of the Larson Financial Group, LLC.
    • Loans increased $18.2 million, or 2% in the first quarter ended March 31, 2025, to $1.10 billion largely due to new commercial & industrial, commercial real estate and construction and development loans. Allowance for credit losses was 1.12% of gross loans.
    • Non-performing assets increased $2.6 million to $13.0 million, or 0.89% of total assets at March 31, 2025 compared to the previous quarter, from addition of commercial rental real estate units undergoing a sale process.
    • Total deposits decreased $17.3 million to $1.13 billion at March 31, 2025 from $1.15 billion at December 31, 2024, with the decrease largely consisting of normal commercial money market deposit outflows and seasonal municipal deposit outflows.
    • Return on average tangible common equity was 9.21% for the quarter ended March 31, 2025, compared to 11.07% the prior quarter and 6.57% in the year ago quarter.
    • Tangible book value per common share was up 11.3% over the past year to $26.94 at March 31, 2025, compared to $24.21 at March 31, 2024. Additionally, PSB paid dividends totaling $0.64 per share during the past year.
    • On January 21, 2025, the Bank acquired Larson Financial Group, LLC, a financial advisory company based in Wausau, WI.

    Balance Sheet and Asset Quality Review

    Total assets decreased $6.2 million during the first quarter to $1.46 billion at March 31, 2025, compared to $1.47 billion at December 31, 2024. Cash and cash equivalents decreased $17.8 million to $22.7 million at March 31, 2025 from $40.5 million at December 31, 2024 as funds were used to originate new loans and fund the outflow of seasonal municipal deposits and normal commercial customer treasury management operations. Cash and cash equivalents increased $6.8 million from one year earlier. Investment securities available for sale decreased $6.5 million to $182.6 million at March 31, 2025, from $189.1 million one quarter earlier. Total collateralized liquidity available to meet cash demands was approximately $323 million at March 31, 2025, with an additional $323 million that could be raised in a short time frame from the brokered CDs market.

    Gross loans receivable increased $19.3 million to $1.14 billion at March 31, 2025, compared to one quarter earlier, due primarily to increased commercial real estate, construction & development and commercial & industrial lending. Commercial real estate loans increased $11.3 million to $562.9 million at March 31, 2025 and gross construction and development lending increased $7.7 million to $87.1 million at March 31, 2025, compared to one quarter earlier. Commercial & industrial loans increased $7.2 million to $124.1 million at March 31, 2025. Offsetting gross loan growth, residential real estate loans decreased $3.7 million from the prior quarter to $333.7 million, municipal loans decreased $2.8 million to $12.9 million and consumer installment loans decreased $0.4 million to $4.7 million. The loan portfolio remains well diversified with commercial real estate and construction loans totaling 57.2% of gross loans, followed by residential real estate loans at 29.3% of gross loans, commercial non-real estate loans at 13.1% and consumer loans at 0.4%.

    The allowance for credit losses decreased slightly to 1.12% of gross loans at March 31, 2025, from 1.13% the prior quarter. Annualized net charge-offs to average loans were 0.02% for the quarter ended March 31, 2025. Non-performing assets increased $2.6 million to $13.0 million, or 0.89% of total assets at March 31, 2025 from 0.71% at December 31, 2024. The increase reflects a loan relationship we expect to have $1.5 million in repayment in the next 6 months as collateral undergoes a sales process. No specific reserves have been established on the loan as ample collateral currently appears available. Approximately 80% of the non-performing assets consisted of four loan relationships.

    Goodwill and other intangibles increased slightly during the quarter ended March 31, 2025 to $3.8 million from $2.7 million one quarter earlier. The increase in intangibles relates to the acquisition of Larson Financial Group, LLC in January 2025.

    Total deposits decreased $17.3 million to $1.13 billion at March 31, 2025, from $1.15 billion at December 31, 2024. The decrease in deposits reflects a $22.9 million decrease in uninsured deposits during the first quarter composed primarily of money market deposits, consisting of normal commercial customer operation outflows, particularly with one customer accounting for $18 million of the decline who reinvested following the sale of their business in 2024. Meanwhile, brokered deposits increased $22.9 million and insured and collateralized deposits increased $5.6 million in the quarter ended March 31, 2025.

    At March 31, 2025, non-interest bearing demand deposits decreased to 21.8% of total deposits from 22.6% the prior quarter, while interest-bearing demand and savings deposits remained at 29.4% of deposits.

    FHLB advances increased $8.0 million to $170.3 million at March 31, 2025, compared to $162.3 million at December 31, 2024.

    Tangible stockholder equity as a percentage of total tangible assets increased to 8.05% at March 31, 2025, compared to 7.76% at December 31, 2024, and 7.60% at March 31, 2024.

    Tangible net book value per common share increased $2.73 to $26.94, at March 31, 2025, compared to $24.21 one year earlier, an increase of 11.3% after dividends of $0.64 were paid to shareholders. Relative to the prior quarter’s tangible book value per common share of $25.98, tangible net book value per common share increased primarily due to earnings and an increase in the fair market value in the investment portfolios. The accumulated other comprehensive loss on the investment portfolio was $16.7 million at March 31, 2025, compared to $19.3 million one quarter earlier.

    Operations Review

    Net interest income decreased to $10.3 million (on a net margin of 3.03%) for the first quarter of 2025, from $10.4 million (on a net margin of 2.96%) for the fourth quarter of 2024, and increased from $9.3 million (on a net margin of 2.80%) for the first quarter of 2024. The lower net interest income in the current period while net margin also increased primarily relates to a lower level of earnings assets during the quarter. Meanwhile, earning asset yields increased to 5.35% during the first quarter of 2025 from 5.29% the prior period and interest bearing deposit and borrowing costs decreased four basis points to 3.02% compared to 3.06% during the fourth quarter of 2024. Relative to one year earlier, earning asset yields were up 23 basis points while interest bearing deposit and borrowing costs increased two basis points.

    The increase in earning asset yields was due to higher yields on loan originations, loan renewals, security purchases and security repricing. Loan yields increased during the first quarter of 2025 to 5.82% from 5.80% for the fourth quarter of 2024. Taxable security yields were 3.35% for the quarter ended March 31, 2025, compared to 3.16% for the quarter ended December 31, 2024, while tax-exempt security yields increased to 3.35% for the quarter ended March 31, 2025 from 3.31% the previous quarter. The increase in taxable security yields reflects some security restructuring activity from security sales in the prior quarter more fully realized in the current quarter.

    The cost of all deposits increased slightly to 2.09% for the quarter ended March 31, 2025, compared to 2.08% the prior quarter, while the overall cost of funds decreased four basis points to 3.02% from 3.06% during the same time period. Deposit costs for time deposits decreased during the first quarter with time deposits decreasing five basis points to 3.97% and money market deposits decreasing 12 basis points to 2.44%. Savings and demand deposits increased three basis points to 1.87%. FHLB advances increased one basis point to 4.41% for the quarter ended March 31, 2025.

    Total noninterest income increased $589,000 during the first quarter of 2025 to $1.9 million, from $1.3 million for the fourth quarter of 2024 due primarily to a lower net loss on sale of securities and increased investment and insurance sales commissions of $100,000. Mortgage banking income decreased to $250,000 in the first quarter from $414,000 the prior quarter while various increases in nominal revenue sources accounted for the remaining increase in noninterest income. At March 31, 2025, the Bank serviced $373.4 million in secondary market residential mortgage loans for others which provide fee income.

    Noninterest expenses increased $967,000 to $9.0 million for the first quarter of 2025, compared to $8.0 million for the fourth quarter of 2024, and increased $644,000 from $8.3 million for the first quarter of 2024. On a linked quarter basis, December 2024 quarter salary and benefits expense was reduced from year-end final adjustments to incentive estimates, while March 2025 quarterly salary and benefits increased as commercial growth, and related incentives, were greater than budgeted. The LFG acquisition also increased wage and benefit expense. Intangible amortization increased slightly during the first quarter related to the acquisition. Occupancy and facilities costs increased $95,000, data processing and other office operation expenses increased $90,000 and various other noninterest expenses increased $177,000 during the first quarter ended March 31, 2025.

    Taxes decreased $51,000 during the first quarter to $473,000, from $524,000 one quarter earlier. The effective tax rate for the quarter ended March 31, 2025, was 15.6% compared to 14.4% for the fourth quarter ended December 31, 2024.

    About PSB Holdings, Inc.

    PSB Holdings, Inc. is the parent company of Peoples State Bank. Peoples is a community bank headquartered in Wausau, Wisconsin, serving northcentral and southeastern Wisconsin from twelve full-service banking locations in Marathon, Oneida, Vilas, Portage, Milwaukee and Waukesha counties and a loan production office in Dane County. Peoples also provides investment and insurance products, along with retirement planning services, through Peoples Wealth Management, a division of Peoples. PSB Holdings, Inc. is traded under the stock symbol PSBQ on the OTCQX Market. More information about PSB, its management, and its financial performance may be found at www.psbholdingsinc.com.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about PSB’s business based, in part, on assumptions made by management and include, without limitation, statements with respect to the potential growth of PSB, its future profits, expected stock repurchase levels, future dividend rates, future interest rates, and the adequacy of its capital position. Forward-looking statements can be affected by known and unknown risks, uncertainties, and other factors, including, but not limited to, strength of the economy, the effects of government policies, including interest rate policies, risks associated with the execution of PSB’s vision and growth strategy, including with respect to current and future M&A activity, and risks associated with global economic instability. The forward-looking statements in this press release speak only as of the date on which they are made and PSB does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

     
    PSB Holdings, Inc.
    Consolidated Balance Sheets
    March 31, 2025, September 30, June 30, and March 31, 2024, unaudited, December 31, 2024 derived from audited financial statements
                 
        Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
    (dollars in thousands, except per share data)     2025     2024     2024     2024     2024  
                 
    Assets            
                 
    Cash and due from banks   $ 19,628   $ 21,414   $ 23,554   $ 16,475   $ 13,340  
    Interest-bearing deposits     702     3,724     5,126     251     105  
    Federal funds sold     2,351     15,360     58,434     69,249     2,439  
                 
    Cash and cash equivalents     22,681     40,498     87,114     85,975     15,884  
    Securities available for sale (at fair value)     182,594     189,086     174,911     165,177     165,566  
    Securities held to maturity (fair values of $77,375, $79,654, $82,389, $79,993 and $81,234 respectively)     85,373     86,748     86,847     86,825     87,104  
    Equity securities     2,847     2,782     1,752     1,661     1,474  
    Loans held for sale     734     217     –     2,268     865  
    Loans receivable, net (allowance for credit losses of $12,392, $12,342, $12,598, $12,597 and $12,494 respectively)     1,096,422     1,078,204     1,057,974     1,074,844     1,081,394  
    Accrued interest receivable     5,184     5,042     4,837     5,046     5,467  
    Foreclosed assets     300     –     –     –     –  
    Premises and equipment, net     13,522     13,805     14,065     14,048     13,427  
    Mortgage servicing rights, net     1,717     1,742     1,727     1,688     1,657  
    Federal Home Loan Bank stock (at cost)     8,825     8,825     8,825     8,825     7,006  
    Cash surrender value of bank-owned life insurance     24,897     24,732     24,565     24,401     24,242  
    Other intangibles     353     195     212     229     249  
    Goodwill     3,495     2,541     2,541     2,541     2,541  
    Other assets     10,828     11,539     10,598     12,111     11,682  
                 
    TOTAL ASSETS   $ 1,459,772   $ 1,465,956   $ 1,475,968   $ 1,485,639   $ 1,418,558  
                 
    Liabilities            
                 
    Non-interest-bearing deposits   $ 245,672   $ 259,515   $ 265,078   $ 250,435   $ 247,608  
    Interest-bearing deposits     884,364     887,834     874,035     901,886     865,744  
                 
    Total deposits     1,130,036     1,147,349     1,139,113     1,152,321     1,113,352  
                 
    Federal Home Loan Bank advances     170,250     162,250     181,250     184,900     158,250  
    Other borrowings     6,343     6,872     6,128     5,775     8,096  
    Senior subordinated notes     4,783     4,781     4,779     4,778     4,776  
    Junior subordinated debentures     13,049     13,023     12,998     12,972     12,947  
    Allowance for credit losses on unfunded commitments     672     672     477     477     477  
    Accrued expenses and other liabilities     13,554     14,723     12,850     13,069     10,247  
                 
    Total liabilities     1,338,687     1,349,670     1,357,595     1,374,292     1,308,145  
                 
    Stockholders’ equity            
                 
    Preferred stock – no par value:            
    Authorized – 30,000 shares; Issued – 7,200 shares            
    Outstanding – 7,200 shares, respectively     7,200     7,200     7,200     7,200     7,200  
    Common stock – no par value with a stated value of $1.00 per share:            
    Authorized – 18,000,000 shares; Issued – 5,490,798 shares            
    Outstanding – 4,084,708, 4,092,977, 4,105,594, 4,128,382 and 4,147,649 shares, respectively     1,830     1,830     1,830     1,830     1,830  
    Additional paid-in capital     8,608     8,610     8,567     8,527     8,466  
    Retained earnings     142,277     139,838     138,142     135,276     134,271  
    Accumulated other comprehensive income (loss), net of tax     (16,692 )   (19,314 )   (15,814 )   (20,503 )   (20,775 )
    Treasury stock, at cost – 1,406,090, 1,397,821, 1,385,204, 1,362,416 and 1,343,149 shares, respectively     (22,138 )   (21,878 )   (21,552 )   (20,983 )   (20,579 )
                 
    Total stockholders’ equity     121,085     116,286     118,373     111,347     110,413  
                 
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 1,459,772   $ 1,465,956   $ 1,475,968   $ 1,485,639   $ 1,418,558  
    PSB Holdings, Inc.
    Consolidated Statements of Income
     
        Quarter Ended  
        Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
    (dollars in thousands, except per share data – unaudited)     2025     2024     2024     2024     2024  
                 
    Interest and dividend income:            
    Loans, including fees   $ 15,782   $ 15,646   $ 15,634   $ 15,433   $ 15,109  
    Securities:            
    Taxable     1,641     1,545     1,345     1,295     1,197  
    Tax-exempt     517     522     522     521     526  
    Other interest and dividends     345     948     699     265     343  
                 
    Total interest and dividend income     18,285     18,661     18,200     17,514     17,175  
                 
    Interest expense:            
    Deposits     5,884     6,027     5,905     5,838     6,082  
    FHLB advances     1,792     1,890     2,038     1,860     1,450  
    Other borrowings     47     57     57     58     60  
    Senior subordinated notes     59     59     59     58     59  
    Junior subordinated debentures     248     252     252     255     251  
                 
    Total interest expense     8,030     8,285     8,311     8,069     7,902  
                 
    Net interest income     10,255     10,376     9,889     9,445     9,273  
    Provision for credit losses     117     –     –     100     95  
                 
    Net interest income after provision for credit losses     10,138     10,376     9,889     9,345     9,178  
                 
    Noninterest income:            
    Service fees     358     362     367     350     336  
    Mortgage banking income     250     414     433     433     308  
    Investment and insurance sales commissions     326     226     230     222     121  
    Net loss on sale of securities     (1 )   (511 )   –     –     (495 )
    Increase in cash surrender value of life insurance     163     166     165     159     157  
    Other noninterest income     770     620     648     742     617  
                 
    Total noninterest income     1,866     1,277     1,843     1,906     1,044  
                 
    Noninterest expense:            
    Salaries and employee benefits     5,302     4,691     4,771     5,167     5,123  
    Occupancy and facilities     786     691     757     733     721  
    Loss (gain) on foreclosed assets     –     –     1     –     –  
    Data processing and other office operations     1,201     1,111     1,104     1,047     1,022  
    Advertising and promotion     129     141     164     171     129  
    Amortization of intangibles     23     17     17     20     24  
    Other noninterest expenses     1,528     1,351     1,337     1,257     1,306  
                 
    Total noninterest expense     8,969     8,002     8,151     8,395     8,325  
                 
    Income before provision for income taxes     3,035     3,651     3,581     2,856     1,897  
    Provision for income taxes     473     524     593     410     169  
                 
    Net income   $ 2,562   $ 3,127   $ 2,988   $ 2,446   $ 1,728  
    Preferred stock dividends declared   $ 122   $ 122   $ 122   $ 122   $ 122  
                 
    Net income available to common shareholders   $ 2,440   $ 3,005   $ 2,866   $ 2,324   $ 1,606  
    Basic earnings per common share   $ 0.60   $ 0.73   $ 0.69   $ 0.56   $ 0.39  
    Diluted earnings per common share   $ 0.60   $ 0.73   $ 0.69   $ 0.56   $ 0.39  
    PSB Holdings, Inc.
    Quarterly Financial Summary
    (dollars in thousands, except per share data)   Quarter ended
        Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
    Earnings and dividends:     2025     2024     2024     2024     2024  
                 
    Interest income   $ 18,285   $ 18,661   $ 18,200   $ 17,514   $ 17,175  
    Interest expense   $ 8,030   $ 8,285   $ 8,311   $ 8,069   $ 7,902  
    Net interest income   $ 10,255   $ 10,376   $ 9,889   $ 9,445   $ 9,273  
    Provision for credit losses   $ 117   $ –   $ –   $ 100   $ 95  
    Other noninterest income   $ 1,866   $ 1,277   $ 1,843   $ 1,906   $ 1,044  
    Other noninterest expense   $ 8,969   $ 8,002   $ 8,151   $ 8,395   $ 8,325  
    Net income available to common shareholders   $ 2,440   $ 3,005   $ 2,866   $ 2,324   $ 1,606  
                 
    Basic earnings per common share (3)   $ 0.60   $ 0.73   $ 0.69   $ 0.56   $ 0.39  
    Diluted earnings per common share (3)   $ 0.60   $ 0.73   $ 0.69   $ 0.56   $ 0.39  
    Dividends declared per common share (3)   $ –   $ 0.32   $ –   $ 0.32   $ –  
    Tangible net book value per common share (4)   $ 26.94   $ 25.98   $ 26.41   $ 24.55   $ 24.21  
                 
    Semi-annual dividend payout ratio     n/a     23.27 %   n/a     33.61 %   n/a  
    Average common shares outstanding     4,088,824     4,094,360     4,132,218     4,139,456     4,154,702  
                 
    Balance sheet – average balances:            
    Loans receivable, net of allowances for credit loss   $ 1,091,533   $ 1,064,619   $ 1,066,795   $ 1,088,013   $ 1,081,936  
    Assets   $ 1,462,862   $ 1,479,812   $ 1,445,613   $ 1,433,749   $ 1,429,437  
    Deposits   $ 1,140,397   $ 1,151,450   $ 1,110,854   $ 1,111,240   $ 1,138,010  
    Stockholders’ equity   $ 118,576   $ 118,396   $ 114,458   $ 110,726   $ 109,473  
                 
    Performance ratios:            
    Return on average assets (1)     0.71 %   0.84 %   0.82 %   0.69 %   0.49 %
    Return on average common stockholders’ equity (1)     8.88 %   10.75 %   10.63 %   9.03 %   6.32 %
    Return on average tangible common stockholders’ equity (1)(4)     9.21 %   11.07 %   10.96 %   9.34 %   6.57 %
    Net loan charge-offs to average loans (1)     0.02 %   0.02 %   0.00 %   0.00 %   0.00 %
    Nonperforming loans to gross loans     1.15 %   0.95 %   0.97 %   1.15 %   1.08 %
    Nonperforming assets to total assets     0.89 %   0.71 %   0.71 %   0.84 %   0.83 %
    Allowance for credit losses to gross loans     1.12 %   1.13 %   1.18 %   1.16 %   1.14 %
    Nonperforming assets to tangible equity plus the allowance for credit losses (4)     10.71 %   8.85 %   8.71 %   11.09 %   10.59 %
    Net interest rate margin (1)(2)     3.03 %   2.96 %   2.90 %   2.84 %   2.80 %
    Net interest rate spread (1)(2)     2.33 %   2.23 %   2.16 %   2.15 %   2.12 %
    Service fee revenue as a percent of average demand deposits (1)     0.58 %   0.53 %   0.56 %   0.56 %   0.54 %
    Noninterest income as a percent of gross revenue     9.26 %   6.40 %   9.20 %   9.81 %   5.73 %
    Efficiency ratio (2)     72.88 %   67.59 %   68.43 %   72.52 %   78.93 %
    Noninterest expenses to average assets (1)     2.49 %   2.15 %   2.24 %   2.35 %   2.34 %
    Average stockholders’ equity less accumulated other comprehensive income (loss) to average assets     9.22 %   9.08 %   9.06 %   9.03 %   8.98 %
    Tangible equity to tangible assets (4)     8.05 %   7.76 %   7.85 %   7.32 %   7.60 %
                 
    Stock price information:            
                 
    High   $ 26.50   $ 27.90   $ 25.00   $ 21.40   $ 22.50  
    Low   $ 25.60   $ 25.00   $ 20.30   $ 19.75   $ 20.05  
    Last trade value at quarter-end   $ 25.70   $ 26.50   $ 25.00   $ 20.40   $ 21.25  
                 
    (1) Annualized
    (2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%.
    (3) Due to rounding, cumulative quarterly per share performance may not equal annual per share totals.
    (4) Tangible stockholders’ equity excludes goodwill and other intangibles.
    PSB Holdings, Inc.
    Consolidated Statements of Comprehensive Income
                 
        Quarter Ended
        Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
    (dollars in thousands – unaudited)     2025     2024     2024     2024     2024  
                 
    Net income   $ 2,562   $ 3,127   $ 2,988   $ 2,446   $ 1,728  
                 
    Other comprehensive income, net of tax:            
                 
    Unrealized gain (loss) on securities available for sale     2,551     (3,955 )   4,738     184     (615 )
                 
    Reclassification adjustment for security loss included in net income     1     404     –     –     391  
                 
    Accretion of unrealized loss included in net income on securities available for sale deferred tax adjustment for Wisconsin Act 19     –     (76 )   –     –     (35 )
                 
    Amortization of unrealized loss included in net income on securities available for sale transferred to securities held to maturity     89     90     90     89     91  
                 
    Unrealized gain (loss) on interest rate swap     (6 )   65     (101 )   39     122  
                 
    Reclassification adjustment of interest rate swap settlements included in earnings     (13 )   (27 )   (38 )   (40 )   (41 )
                 
                 
    Other comprehensive income (loss)     2,622     (3,499 )   4,689     272     (87 )
                 
    Comprehensive income (loss)   $ 5,184   $ (372 ) $ 7,677   $ 2,718   $ 1,641  
    PSB Holdings, Inc.            
    Nonperforming Assets as of:            
        Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
    (dollars in thousands)     2025     2024     2024     2024     2024  
                 
    Nonaccrual loans (excluding restructured loans)   $ 12,404   $ 10,109   $ 10,116   $ 12,184   $ 11,498  
    Nonaccrual restructured loans     17     18     25     28     30  
    Restructured loans not on nonaccrual     280     286     292     299     304  
    Accruing loans past due 90 days or more     –     –     –     –     –  
                 
    Total nonperforming loans     12,701     10,413     10,433     12,511     11,832  
    Other real estate owned     300     –     –     –     –  
                 
    Total nonperforming assets   $ 13,001   $ 10,413   $ 10,433   $ 12,511   $ 11,832  
                 
    Nonperforming loans as a % of gross loans receivable     1.15 %   0.95 %   0.97 %   1.15 %   1.08 %
    Total nonperforming assets as a % of total assets     0.89 %   0.71 %   0.71 %   0.84 %   0.83 %
    Allowance for credit losses as a % of nonperforming loans     97.57 %   118.52 %   120.75 %   100.69 %   105.59 %
    PSB Holdings, Inc.
    Nonperforming Assets >= $500,000 net book value before specific reserves
    At March 31, 2025
    (dollars in thousands)
          Gross Specific
    Collateral Description   Asset Type Principal Reserves
             
    Real estate – Recreational Facility   Nonaccrual   4,051     148  
    Real estate – Independent Auto Repair   Nonaccrual   514     0  
    Real estate – Dealership   Nonaccrual   2,708     560  
    Real estate – Rental Units   Nonaccrual   3,077     0  
             
             
    Total listed nonperforming assets     $ 10,350   $ 708  
    Total bank wide nonperforming assets     $ 13,001   $ 1,055  
    Listed assets as a % of total nonperforming assets       80 %   67 %
    PSB Holding, Inc.            
    Loan Composition by Collateral Type            
    Quarter-ended (dollars in thousands)   Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024
                 
    Commercial:            
    Commercial and industrial   $ 124,074   $ 116,864   $ 115,234   $ 125,508   $ 118,821  
    Agriculture     11,632     11,568     11,203     11,480     12,081  
    Municipal     12,878     15,733     12,596     11,190     28,842  
                 
    Total Commercial     148,584     144,165     139,033     148,178     159,744  
                 
    Commercial Real Estate:            
    Commercial real estate     562,901     551,641     541,577     544,171     546,257  
    Construction and development     87,080     79,377     60,952     70,540     63,375  
                 
    Total Commercial Real Estate     649,981     631,018     602,529     614,711     609,632  
                 
    Residential real estate:            
    Residential     268,490     271,643     269,954     270,944     274,300  
    Construction and development     26,884     28,959     34,655     36,129     34,158  
    HELOC     38,364     36,887     36,734     33,838     31,357  
                 
    Total Residential Real Estate     333,738     337,489     341,343     340,911     339,815  
                 
    Consumer installment     4,683     5,060     4,770     4,423     4,867  
                 
    Subtotals – Gross loans     1,136,986     1,117,732     1,087,675     1,108,223     1,114,058  
    Loans in process of disbursement     (28,752 )   (27,791 )   (17,836 )   (21,484 )   (20,839 )
                 
    Subtotals – Disbursed loans     1,108,234     1,089,941     1,069,839     1,086,739     1,093,219  
    Net deferred loan costs     580     605     733     702     669  
    Allowance for credit losses     (12,392 )   (12,342 )   (12,598 )   (12,597 )   (12,494 )
                 
    Total loans receivable   $ 1,096,422   $ 1,078,204   $ 1,057,974   $ 1,074,844   $ 1,081,394  
    PSB Holding, Inc.
    Selected Commercial Real Estate Loans by Purpose
                   
      Mar 31, Dec 31, Sept 30, June 30, Mar 31,
    (dollars in thousands) 2025 2024 2024 2024 2024
                         
      Total Exposure % of Portfolio (1) Total Exposure % of Portfolio (1) Total Exposure % of Portfolio (1) Total Exposure % of Portfolio (1) Total Exposure % of Portfolio (1)
    Multi Family $ 143,674 13.9 % $ 140,087 14.0 % $ 140,307 14.7 % $ 146,873 15.2 % $ 142,001 14.4 %
    Industrial and Warehousing   100,494 9.7     88,297 8.8     86,818 9.1     86,025 8.9     85,409 8.6  
    Retail   40,779 3.9     33,991 3.4     33,020 3.5     34,846 3.6     33,177 3.4  
    Hotels   30,928 3.0     31,101 3.1     31,611 3.3     34,613 3.6     35,105 3.6  
    Office   7,254 0.7     6,234 0.6     6,378 0.7     6,518 0.7     6,655 0.7  
                         
    (1) Percentage of commercial and commercial real estate portfolio and commitments.          
    PSB Holdings, Inc.
    Deposit Composition
                         
    Insured and Collateralized Deposits March 31, December 31, September 30, June 30, March 31,
    (dollars in thousands) 2025 2024 2024 2024 2024
      $ % $ % $ % $ % $ %
                         
    Non-interest bearing demand $ 206,562 18.3 % $ 204,167 17.8 % $ 210,534 18.5 % $ 202,343 17.5 % $ 199,076 17.8 %
    Interest-bearing demand and savings   314,957 27.9 %   315,900 27.6 %   305,631 26.8 %   304,392 26.5 %   318,673 28.7 %
    Money market deposits   118,047 10.4 %   141,024 12.3 %   138,376 12.2 %   137,637 12.0 %   143,167 12.9 %
    Retail and local time deposits <= $250   158,066 14.0 %   155,099 13.5 %   155,988 13.7 %   149,298 13.0 %   148,404 13.3 %
                         
    Total core deposits   797,632 70.6 %   816,190 71.2 %   810,529 71.2 %   793,670 69.0 %   809,320 72.7 %
    Retail and local time deposits > $250   26,750 2.3 %   25,500 2.2 %   23,500 2.1 %   22,500 2.0 %   24,508 2.3 %
    Broker & national time deposits <= $250   1,241 0.1 %   1,241 0.1 %   1,241 0.1 %   1,490 0.1 %   2,229 0.2 %
    Broker & national time deposits > $250   79,090 7.0 %   56,164 4.9 %   56,164 4.9 %   56,328 4.9 %   61,752 5.5 %
                         
    Totals $ 904,713 80.0 % $ 899,095 78.4 % $ 891,434 78.3 % $ 873,988 76.0 % $ 897,809 80.7 %
                         
    PSB Holdings, Inc.                    
    Deposit Composition                    
                         
    Uninsured Deposits March 31, December 31, September 30, June 30, March 31,
    (dollars in thousands) 2025 2024 2024 2024 2024
      $ % $ % $ % $ % $ %
                         
    Non-interest bearing demand $ 39,110 3.5 % $ 55,348 4.8 % $ 54,544 4.8 % $ 48,092 4.1 % $ 48,532 4.4 %
    Interest-bearing demand and savings   17,262 1.5 %   20,934 1.8 %   18,317 1.6 %   32,674 2.8 %   20,535 1.8 %
    Money market deposits   150,222 13.3 %   153,334 13.4 %   157,489 13.8 %   177,954 15.4 %   124,766 11.2 %
    Retail and local time deposits <= $250   – 0.0 %   – 0.0 %   – 0.0 %   – 0.0 %   – 0.0 %
                         
    Total core deposits   206,594 18.3 %   229,616 20.0 %   230,350 20.2 %   258,720 22.3 %   193,833 17.4 %
    Retail and local time deposits > $250   18,729 1.7 %   18,638 1.6 %   17,329 1.5 %   19,613 1.7 %   21,710 1.9 %
    Broker & national time deposits <= $250   – 0.0 %   – 0.0 %   – 0.0 %   – 0.0 %   – 0.0 %
    Broker & national time deposits > $250   – 0.0 %   – 0.0 %   – 0.0 %   – 0.0 %   – 0.0 %
                         
    Totals $ 225,323 20.0 % $ 248,254 21.6 % $ 247,679 21.7 % $ 278,333 24.0 % $ 215,543 19.3 %
                         
    PSB Holdings, Inc.                    
    Deposit Composition                    
                         
    Total Deposits March 31, December 31, September 30, June 30, March 31,
    (dollars in thousands) 2025 2024 2024 2024 2024
      $ % $ % $ % $ % $ %
                         
    Non-interest bearing demand $ 245,672 21.8 % $ 259,515 22.6 % $ 265,078 23.3 % $ 250,435 21.6 % $ 247,608 22.2 %
    Interest-bearing demand and savings   332,219 29.4 %   336,834 29.4 %   323,948 28.4 %   337,066 29.3 %   339,208 30.5 %
    Money market deposits   268,269 23.7 %   294,358 25.7 %   295,865 26.0 %   315,591 27.4 %   267,933 24.1 %
    Retail and local time deposits <= $250   158,066 14.0 %   155,099 13.5 %   155,988 13.7 %   149,298 13.0 %   148,404 13.3 %
                         
    Total core deposits   1,004,226 88.9 %   1,045,806 91.2 %   1,040,879 91.4 %   1,052,390 91.3 %   1,003,153 90.1 %
    Retail and local time deposits > $250   45,479 4.0 %   44,138 3.8 %   40,829 3.6 %   42,113 3.7 %   46,218 4.2 %
    Broker & national time deposits <= $250   1,241 0.1 %   1,241 0.1 %   1,241 0.1 %   1,490 0.1 %   2,229 0.2 %
    Broker & national time deposits > $250   79,090 7.0 %   56,164 4.9 %   56,164 4.9 %   56,328 4.9 %   61,752 5.5 %
                         
    Totals $ 1,130,036 100.0 % $ 1,147,349 100.0 % $ 1,139,113 100.0 % $ 1,152,321 100.0 % $ 1,113,352 100.0 %
    PSB Holdings, Inc.
    Average Balances ($000) and Interest Rates
    (dollars in thousands)
                           
                           
      Quarter ended March 31, 2025   Quarter ended December 31, 2024   Quarter ended March 31, 2024
      Average   Yield /   Average   Yield /   Average   Yield /
      Balance Interest Rate   Balance Interest Rate   Balance Interest Rate
    Assets                      
    Interest-earning assets:                      
    Loans (1)(2) $ 1,103,895   $ 15,830 5.82 %   $ 1,077,242   $ 15,693 5.80 %   $ 1,094,321   $ 15,199 5.59 %
    Taxable securities   198,426     1,641 3.35 %     194,272     1,545 3.16 %     171,788     1,197 2.80 %
    Tax-exempt securities (2)   79,282     654 3.35 %     79,475     661 3.31 %     80,434     666 3.33 %
    FHLB stock   8,825     241 11.08 %     8,825     227 10.23 %     6,499     165 10.21 %
    Other   8,960     104 4.71 %     58,405     721 4.91 %     12,885     178 5.56 %
                           
    Total (2)   1,399,388     18,470 5.35 %     1,418,219     18,847 5.29 %     1,365,927     17,405 5.12 %
                           
    Non-interest-earning assets:                          
    Cash and due from banks   16,292           15,500           17,367      
    Premises and equipment, net   13,728           14,001           13,183      
    Cash surrender value ins   24,795           24,625           24,144      
    Other assets   21,021           20,090           21,201      
    Allowance for credit losses   (12,362 )         (12,623 )         (12,385 )    
                           
    Total $ 1,462,862           $ 1,479,812           $ 1,429,437        
                           
    Liabilities & stockholders’ equity                          
    Interest-bearing liabilities:                          
    Savings and demand deposits $ 339,909   $ 1,567 1.87 %   $ 319,777   $ 1,479 1.84 %   $ 350,497   $ 1,672 1.92 %
    Money market deposits   280,396     1,685 2.44 %     304,897     1,961 2.56 %     274,186     1,897 2.78 %
    Time deposits   268,821     2,632 3.97 %     256,201     2,587 4.02 %     264,657     2,513 3.82 %
    FHLB borrowings   164,968     1,792 4.41 %     170,701     1,890 4.40 %     142,926     1,450 4.08 %
    Other borrowings   6,321     47 3.02 %     6,848     57 3.31 %     8,554     60 2.82 %
    Senior sub. notes   4,782     59 5.00 %     4,780     59 4.91 %     4,775     59 4.97 %
    Junior sub. debentures   13,036     248 7.72 %     13,011     252 7.71 %     12,934     251 7.81 %
                           
    Total   1,078,233     8,030 3.02 %     1,076,215     8,285 3.06 %     1,058,529     7,902 3.00 %
                           
    Non-interest-bearing liabilities:                          
    Demand deposits   251,271           270,575           248,670      
    Other liabilities   14,782           14,626           12,765      
    Stockholders’ equity   118,576           118,396           109,473      
                           
    Total $ 1,462,862           $ 1,479,812           $ 1,429,437        
                           
    Net interest income   $ 10,440       $ 10,562       $ 9,503  
    Rate spread     2.33 %       2.23 %       2.12 %
    Net yield on interest-earning assets         3.03 %       2.96 %       2.80 %
                           
    (1) Nonaccrual loans are included in the daily average loan balances outstanding.
    (2) The yield on federally tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%.

    Investor Relations Contact
    PSB Holdings, Inc.
    1905 Stewart Avenue
    Wausau, WI 54401
    888.929.9902
    InvestorRelations@bankpeoples.com

    The MIL Network –

  • MIL-OSI: HomeTrust Bancshares, Inc. Announces Financial Results for the First Quarter of the Year Ending December 31, 2025 and Declaration of a Quarterly Dividend

    Source: GlobeNewswire (MIL-OSI)

    ASHEVILLE, N.C., April 24, 2025 (GLOBE NEWSWIRE) — HomeTrust Bancshares, Inc. (NYSE: HTB) (“Company”), the holding company of HomeTrust Bank (“Bank”), today announced preliminary net income for the first quarter of the year ending December 31, 2025 and approval of its quarterly cash dividend.

    For the quarter ended March 31, 2025 compared to the quarter ended December 31, 2024:

    • net income was $14.5 million compared to $14.2 million;
    • diluted earnings per share (“EPS”) was $0.84 compared to $0.83;
    • annualized return on assets (“ROA”) was 1.33% compared to 1.27%;
    • annualized return on equity (“ROE”) was 10.52% compared to 10.32%;
    • net interest margin was 4.18% compared to 4.09%;
    • provision for credit losses was $1.5 million compared to a benefit of $855,000;
    • quarterly cash dividends continued at $0.12 per share totaling $2.1 million for both periods; and
    • 14,800 shares of Company common stock were repurchased during the quarter at an average price of $33.64 compared to none in the prior quarter.

    The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.12 per common share payable on May 29, 2025 to shareholders of record as of the close of business on May 15, 2025.

    “We are pleased to report another quarter of strong financial results,” said Hunter Westbrook, President and Chief Executive Officer. “Our top quartile net interest margin expanded to 4.18% as the reduction in our funding costs outpaced a slight decline in our asset yields. This improvement reflects our focus on financial performance rather than loan growth for the sake of growth.

    “During the first quarter, we transitioned our common stock listing to the New York Stock Exchange under the ticker ‘HTB’, which we believe will provide greater exposure for our Company and long-term value for our stockholders. We also announced the sale of our two branches and exit from Knoxville, Tennessee, which will tighten our geographic footprint, improve our branch efficiencies, and allow us to better allocate capital to support long-term growth in other core markets.

    “In response to the recent turbulence in the economic environment, we currently do not anticipate a significant impact upon our business, but we are committed to working with our customers to provide the banking support that may be needed. As in past periods of uncertainty, we are confident that the resilience of our balance sheet and customers, coupled with our conservative approach to risk management, will position HomeTrust to succeed.”

    WEBSITE: WWW.HTB.COM

    Comparison of Results of Operations for the Three Months Ended March 31, 2025 and December 31, 2024
    Net Income.  Net income totaled $14.5 million, or $0.84 per diluted share, for the three months ended March 31, 2025 compared to $14.2 million, or $0.83 per diluted share, for the three months ended December 31, 2024, an increase of $331,000, or 2.3%. Results for the three months ended March 31, 2025 benefited from a $3.0 million decrease in noninterest expense, partially offset by a $2.4 million increase in the provision for credit losses. Details of the changes in the various components of net income are further discussed below.

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

      Three Months Ended
      March 31, 2025   December 31, 2024
    (Dollars in thousands) Average
    Balance
    Outstanding    		   Interest
    Earned /
    Paid    		   Yield /
    Rate    		   Average
    Balance
    Outstanding    		   Interest
    Earned /
    Paid    		   Yield /
    Rate
    Assets                      
    Interest-earning assets                      
    Loans receivable(1) $ 3,802,003     $ 58,613   6.25%     $ 3,890,775     $ 62,224   6.36%  
    Debt securities available for sale   152,659       1,787   4.75       147,023       1,621   4.39  
    Other interest-earning assets(2)   206,242       3,235   6.36       160,064       2,353   5.85  
    Total interest-earning assets   4,160,904       63,635   6.20       4,197,862       66,198   6.27  
    Other assets   266,141               263,750          
    Total assets $ 4,427,045             $ 4,461,612          
    Liabilities and equity                      
    Interest-bearing liabilities                      
    Interest-bearing checking accounts $ 573,316     $ 1,324   0.94%     $ 559,033     $ 1,271   0.90%  
    Money market accounts   1,345,575       9,177   2.77       1,343,609       10,038   2.97  
    Savings accounts   183,354       38   0.08       180,546       40   0.09  
    Certificate accounts   951,715       9,824   4.19       1,005,914       11,225   4.44  
    Total interest-bearing deposits   3,053,960       20,363   2.70       3,089,102       22,574   2.91  
    Junior subordinated debt   10,129       205   8.21       10,104       223   8.87  
    Borrowings   12,301       160   5.28       14,689       196   5.31  
    Total interest-bearing liabilities   3,076,390       20,728   2.73       3,113,895       22,993   2.94  
    Noninterest-bearing deposits   719,522               731,745          
    Other liabilities   70,821               68,261          
    Total liabilities   3,866,733               3,913,901          
    Stockholders’ equity   560,312               547,711          
    Total liabilities and stockholders’ equity $ 4,427,045             $ 4,461,612          
    Net earning assets $ 1,084,514             $ 1,083,967          
    Average interest-earning assets to average interest-bearing liabilities   135.25%               134.81%          
    Non-tax-equivalent                      
    Net interest income     $ 42,907           $ 43,205    
    Interest rate spread         3.47%             3.33%  
    Net interest margin(3)         4.18%             4.09%  
    Tax-equivalent(4)                      
    Net interest income     $ 43,325           $ 43,594    
    Interest rate spread         3.51%             3.37%  
    Net interest margin(3)         4.22%             4.13%  

    (1)  Average loans receivable balances include loans held for sale and nonaccruing loans.
    (2)  Average other interest-earning assets consist of FRB stock, FHLB stock, SBIC investments and deposits in other banks.
    (3)  Net interest income divided by average interest-earning assets.
    (4)  Tax-equivalent results include adjustments to interest income of $418 and $389 for the three months ended March 31, 2025 and December 31, 2024, respectively, calculated based on a combined federal and state tax rate of 24%.

    Total interest and dividend income for the three months ended March 31, 2025 decreased $2.6 million, or 3.9%, compared to the three months ended December 31, 2024, which was driven by a $3.6 million, or 5.8%, decrease in loan interest income primarily due to a decline in the average balance, a decrease in accretion income on acquired loans of $881,000, or 73.3%, and fewer days in the current quarter. In addition, income on SBIC investments increased $452,000, or 54.0%, due to investment appreciation.

    Total interest expense for the three months ended March 31, 2025 decreased $2.3 million, or 9.9%, compared to the three months ended December 31, 2024. The decrease was the result of a decline in the average balance of certificate accounts, specifically brokered deposits, a decline in the average cost of funds across funding categories, and fewer days in the current quarter.

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

      Increase / (Decrease)
    Due to    		   Total
    Increase /
    (Decrease)
    (Dollars in thousands) Volume   Rate  
    Interest-earning assets          
    Loans receivable $ (2,559)     $ (1,052)     $ (3,611)  
    Debt securities available for sale   27       139       166  
    Other interest-earning assets   616       266       882  
    Total interest-earning assets   (1,916)       (647)       (2,563)  
    Interest-bearing liabilities          
    Interest-bearing checking accounts   7       46       53  
    Money market accounts   (164)       (697)       (861)  
    Savings accounts   —       (2)       (2)  
    Certificate accounts   (796)       (605)       (1,401)  
    Junior subordinated debt   (3)       (15)       (18)  
    Borrowings   (35)       (1)       (36)  
    Total interest-bearing liabilities   (991)       (1,274)       (2,265)  
    Decrease in net interest income         $ (298)  

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

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

      Three Months Ended    
    (Dollars in thousands) March 31, 2025   December 31, 2024   $ Change   % Change
    Provision (benefit) for credit losses              
    Loans $ 800   $ (975)     $ 1,775   182%  
    Off-balance-sheet credit exposure   740     120       620   517  
    Total provision (benefit) for credit losses $ 1,540   $ (855)     $ 2,395   280%  

    For the quarter ended March 31, 2025, the “loans” portion of the provision for credit losses was the result of the following, offset by net charge-offs of $1.3 million during the quarter:

    • $0.6 million benefit driven by changes in the loan mix.
    • The slight improvement in the projected economic forecast, specifically the national unemployment rate, was offset by changes in qualitative adjustments. Of note, we retained the $2.2 million qualitative allocation for the potential impact of Hurricane Helene upon our loan portfolio established in the quarter ended September 30, 2024.
    • $0.1 million increase in specific reserves on individually evaluated loans.

    For the quarter ended December 31, 2024, the “loans” portion of the provision (benefit) for credit losses was the result of the following, offset by net charge-offs of $1.9 million during the quarter:

    • $1.3 million benefit driven by changes in the loan mix and a $50.6 million decrease in the loan portfolio.
    • $0.7 million benefit due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments. Of note, we retained the $2.2 million qualitative allocation for the potential impact of Hurricane Helene upon our loan portfolio established in the prior quarter.
    • $0.9 million decrease in specific reserves on individually evaluated credits.

    For the quarter ended March 31, 2025, the amount recorded for off-balance-sheet credit exposure was the result of an increase in the balance of loan commitments and changes in the loan mix and projected economic forecast as outlined above. For the quarter ended December 31, 2024, the amount recorded for off-balance-sheet credit exposure was the result of a decrease in the balance of loan commitments and changes in the loan mix and projected economic forecast as outlined above.

    Noninterest Income.  Noninterest income for the three months ended March 31, 2025 decreased $216,000, or 2.6%, when compared to the quarter ended December 31, 2024. Changes in the components of noninterest income are discussed below:

      Three Months Ended    
    (Dollars in thousands) March 31, 2025   December 31, 2024   $ Change   % Change
    Noninterest income              
    Service charges and fees on deposit accounts $ 2,244   $ 2,326   $ (82)     (4)%  
    Loan income and fees   721     728     (7)     (1)  
    Gain on sale of loans held for sale   1,908     1,068     840     79  
    Bank owned life insurance (“BOLI”) income   842     842     —     —  
    Operating lease income   1,379     2,259     (880)     (39)  
    Other   933     1,020     (87)     (9)  
    Total noninterest income $ 8,027   $ 8,243   $ (216)     (3)%  
    • Gain on sale of loans held for sale: The increase was primarily driven by HELOCs sold during the period. There were $89.4 million of HELOCs originated for sale which were sold during the current quarter with gains of $1.1 million compared to no sales in the prior quarter. There were $18.8 million of residential mortgage loans sold for a gain of $473,000 during the current quarter compared to $23.8 million sold with gains of $269,000 in the prior quarter. There were $4.6 million in sales of the guaranteed portion of SBA commercial loans with gains of $366,000 for the current quarter compared to $10.2 million sold and gains of $733,000 for the prior quarter. Our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in a gain of $13,000 for the current quarter compared to a gain of $66,000 for the prior quarter.
    • Operating lease income: The decrease was primarily the result of a $306,000 increase in losses incurred on the sale of, and a $529,000 increase in the valuation allowance against, previously leased equipment.

    Noninterest Expense.  Noninterest expense for the three months ended March 31, 2025 decreased $3.0 million, or 9.0%, when compared to the three months ended December 31, 2024. Changes in the components of noninterest expense are discussed below:

      Three Months Ended    
    (Dollars in thousands) March 31, 2025   December 31, 2024   $ Change   % Change
    Noninterest expense              
    Salaries and employee benefits $ 17,699   $ 17,234   $ 465     3%  
    Occupancy expense, net   2,511     2,476     35     1  
    Computer services   2,805     3,110     (305)     (10)  
    Operating lease depreciation expense   1,868     2,068     (200)     (10)  
    Telephone, postage and supplies   546     541     5     1  
    Marketing and advertising   452     234     218     93  
    Deposit insurance premiums   511     556     (45)     (8)  
    Core deposit intangible amortization   515     567     (52)     (9)  
    Contract renewal consulting fee   —     2,965     (2,965)     (100)  
    Other   4,054     4,258     (204)     (5)  
    Total noninterest expense $ 30,961   $ 34,009   $ (3,048)     (9)%  
    • Computer services: As noted below, in the prior quarter we finalized the multiyear renewal of our largest core processing contract. The decrease in expense quarter-over-quarter is a reflection of the improved vendor pricing negotiated through this effort.
    • Marketing and advertising: The increase in expense was the result of a reduction in advertising in the prior quarter due to the election and holiday season.
    • Contract renewal consulting fee: In the prior quarter we paid a fee to a consultant to negotiate the multiyear renewal of our largest core processing contract, with no similar fee in the current quarter.

    Income Taxes.  The amount of income tax expense is influenced by the amount of pre-tax income, tax-exempt income, changes in the statutory rate and the effect of changes in valuation allowances maintained against deferred tax benefits. The effective tax rates for the three months ended March 31, 2025 and December 31, 2024 were 21.1% and 22.3%, respectively.

    Balance Sheet Review
    Total assets decreased by $37.4 million to $4.6 billion and total liabilities decreased by $51.1 million to $4.0 billion, respectively, at March 31, 2025 as compared to December 31, 2024. These changes can be traced to the use of loan sale proceeds and a $61.5 million increase in customer deposits to pay down brokered deposits by $104.3 million and borrowings by $11.0 million.

    Stockholders’ equity increased $13.7 million to $565.4 million at March 31, 2025 as compared to December 31, 2024. Activity within stockholders’ equity included $14.5 million in net income and $1.0 million in stock-based compensation and stock option exercises, partially offset by $2.1 million in cash dividends declared and $498,000 in stock repurchases. In addition, accumulated other comprehensive income improved primarily due to a $1.1 million reduction of the unrealized loss on available for sale securities as a result of a decrease in market interest rates.

    As of March 31, 2025, the Bank was considered “well capitalized” in accordance with its regulatory capital guidelines and exceeded all regulatory capital requirements.

    Asset Quality
    The ACL on loans was $44.7 million, or 1.23% of total loans, at March 31, 2025 compared to $45.3 million, or 1.24% of total loans, at December 31, 2024. The drivers of this change are discussed in the “Comparison of Results of Operations for the Three Months Ended March 31, 2025 and December 31, 2024 – Provision for Credit Losses” section above.

    Net loan charge-offs totaled $1.3 million for the three months ended March 31, 2025 compared to $1.9 million and $2.3 million for the three months ended December 31, 2024 and March 31, 2024, respectively. Annualized net charge-offs as a percentage of average loans were 0.14% for the three months ended March 31, 2025 as compared to 0.19% and 0.24% for the three months ended December 31, 2024 and March 31, 2024, respectively.

    Nonperforming assets, made up of nonaccrual loans and repossessed assets, decreased by $753,000, or 2.6%, to $28.0 million, or 0.61% of total assets, at March 31, 2025 compared to $28.8 million, or 0.63% of total assets, at December 31, 2024. Owner occupied commercial real estate (“CRE”) made up the largest portion of nonperforming assets at $8.6 million and $8.5 million, respectively, at these same dates. One relationship made up $5.0 million of the totals at both dates but no loss is anticipated. In addition, equipment finance loans made up $5.1 million and $4.7 million, respectively, at these same dates, concentrated in the transportation sector. The ratio of nonperforming loans to total loans was 0.74% at March 31, 2025 compared to 0.76% at December 31, 2024.

    The ratio of classified assets to total assets decreased to 0.85% at March 31, 2025 from 1.06% at December 31, 2024 as classified assets decreased $10.0 million, or 20.5%, to $38.8 million at March 31, 2025 compared to $48.8 million at December 31, 2024. The largest portfolios of classified assets at March 31, 2025 included $12.9 million of owner-occupied CRE loans, $6.6 million of 1-4 family residential real estate loans, $5.4 million of equipment finance loans, $4.2 million of commercial and industrial loans, $4.2 million of HELOCs, and $3.8 million of non-owner occupied CRE loans.

    Lastly, in an effort to assist customers in their post-Hurricane Helene recovery and clean-up efforts, in the prior quarter we granted payment deferrals of up to six months to provide short-term relief to impacted customers. The outstanding balance of these deferrals declined from $136.0 million at December 31, 2024 to $109.9 million at March 31, 2025 and $68.4 million at April 21, 2025. The Company retained the prior quarter $2.2 million ACL allocation for the potential impact of the storm on this portion of our loan portfolio. To date, no charge-offs have been recognized which were directly related to Hurricane Helene.

    About HomeTrust Bancshares, Inc.
    HomeTrust Bancshares, Inc. is the holding company for the Bank. As of March 31, 2025, the Company had assets of $4.6 billion. The Bank, founded in 1926, is a North Carolina state chartered, community-focused financial institution committed to providing value added relationship banking with over 30 locations as well as online/mobile channels. Locations include: North Carolina (the Asheville metropolitan area, the “Piedmont” region, Charlotte and Raleigh/Cary), South Carolina (Greenville and Charleston), East Tennessee (Kingsport/Johnson City, Knoxville and Morristown), Southwest Virginia (the Roanoke Valley) and Georgia (Greater Atlanta).

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

    Consolidated Balance Sheets (Unaudited)

    (Dollars in thousands) March 31, 2025   December 31, 2024(1)   September 30, 2024   June 30, 2024   March 31, 2024
    Assets                  
    Cash $ 14,303     $ 18,778     $ 18,980     $ 18,382     $ 16,134  
    Interest-bearing deposits   285,522       260,441       274,497       275,808       364,359  
    Cash and cash equivalents   299,825       279,219       293,477       294,190       380,493  
    Certificates of deposit in other banks   25,806       28,538       29,290       32,131       33,625  
    Debt securities available for sale, at fair value   150,577       152,011       140,552       134,135       120,807  
    FHLB and FRB stock   13,602       13,630       18,384       19,637       13,691  
    SBIC investments, at cost   17,746       15,117       15,489       15,462       14,568  
    Loans held for sale, at fair value   2,175       4,144       2,968       1,614       2,764  
    Loans held for sale, at the lower of cost or fair value   151,164       202,018       189,722       224,976       220,699  
    Total loans, net of deferred loan fees and costs   3,648,609       3,648,299       3,698,892       3,701,454       3,648,152  
    Allowance for credit losses – loans   (44,742)       (45,285)       (48,131)       (49,223)       (47,502)  
    Loans, net   3,603,867       3,603,014       3,650,761       3,652,231       3,600,650  
    Premises and equipment held for sale, at the lower of cost or fair value   8,240       616       616       616       616  
    Premises and equipment, net   62,347       69,872       69,603       69,880       70,588  
    Accrued interest receivable   18,269       18,336       17,523       18,412       16,944  
    Deferred income taxes, net   9,288       10,735       10,100       10,512       11,222  
    BOLI   91,715       90,868       90,021       89,176       88,369  
    Goodwill   34,111       34,111       34,111       34,111       34,111  
    Core deposit intangibles, net   6,080       6,595       7,162       7,730       8,297  
    Other assets   63,248       66,606       68,130       66,051       67,183  
    Total assets $ 4,558,060     $ 4,595,430     $ 4,637,293     $ 4,670,864     $ 4,684,011  
    Liabilities and stockholders’ equity                  
    Liabilities                  
    Deposits $ 3,736,360     $ 3,779,203     $ 3,761,588     $ 3,707,779     $ 3,799,807  
    Junior subordinated debt   10,145       10,120       10,096       10,070       10,045  
    Borrowings   177,000       188,000       260,013       364,513       291,513  
    Other liabilities   69,106       66,349       65,592       64,874       69,473  
    Total liabilities   3,992,611       4,043,672       4,097,289       4,147,236       4,170,838  
    Stockholders’ equity                  
    Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued or outstanding   —       —       —       —       —  
    Common stock, $0.01 par value, 60,000,000 shares authorized(2)   176       175       175       175       175  
    Additional paid in capital   176,682       176,693       175,495       172,907       172,919  
    Retained earnings   393,026       380,541       368,383       357,147       346,598  
    Unearned Employee Stock Ownership Plan (“ESOP”) shares   (3,835)       (3,966)       (4,099)       (4,232)       (4,364)  
    Accumulated other comprehensive income (loss)   (600)       (1,685)       50       (2,369)       (2,155)  
    Total stockholders’ equity   565,449       551,758       540,004       523,628       513,173  
    Total liabilities and stockholders’ equity $ 4,558,060     $ 4,595,430     $ 4,637,293     $ 4,670,864     $ 4,684,011  

    (1)  Derived from audited financial statements.
    (2)  Shares of common stock issued and outstanding were 17,552,626 at March 31, 2025; 17,527,709 at December 31, 2024; 17,514,922 at September 30, 2024; 17,437,326 at June 30, 2024; and 17,444,787 at March 31, 2024.

    Consolidated Statements of Income (Unaudited)

      Three Months Ended
    (Dollars in thousands) March 31, 2025   December 31, 2024
    Interest and dividend income      
    Loans $ 58,613   $ 62,224  
    Debt securities available for sale   1,787     1,621  
    Other investments and interest-bearing deposits   3,235     2,353  
    Total interest and dividend income   63,635     66,198  
    Interest expense      
    Deposits   20,363     22,574  
    Junior subordinated debt   205     223  
    Borrowings   160     196  
    Total interest expense   20,728     22,993  
    Net interest income   42,907     43,205  
    Provision (benefit) for credit losses   1,540     (855)  
    Net interest income after provision (benefit) for credit losses   41,367     44,060  
    Noninterest income      
    Service charges and fees on deposit accounts   2,244     2,326  
    Loan income and fees   721     728  
    Gain on sale of loans held for sale   1,908     1,068  
    BOLI income   842     842  
    Operating lease income   1,379     2,259  
    Other   933     1,020  
    Total noninterest income   8,027     8,243  
    Noninterest expense      
    Salaries and employee benefits   17,699     17,234  
    Occupancy expense, net   2,511     2,476  
    Computer services   2,805     3,110  
    Operating lease depreciation expense   1,868     2,068  
    Telephone, postage and supplies   546     541  
    Marketing and advertising   452     234  
    Deposit insurance premiums   511     556  
    Core deposit intangible amortization   515     567  
    Contract renewal consulting fee   —     2,965  
    Other   4,054     4,258  
    Total noninterest expense   30,961     34,009  
    Income before income taxes   18,433     18,294  
    Income tax expense   3,894     4,086  
    Net income $ 14,539   $ 14,208  

    Per Share Data

        Three Months Ended 
        March 31, 2025   December 31, 2024
    Net income per common share(1)        
    Basic   $ 0.84   $ 0.83
    Diluted   $ 0.84   $ 0.83
    Average shares outstanding        
    Basic     17,011,359     16,983,751
    Diluted     17,113,424     17,084,943
    Book value per share at end of period   $ 32.21   $ 31.48
    Tangible book value per share at end of period(2)   $ 30.00   $ 29.24
    Cash dividends declared per common share   $ 0.12   $ 0.12
    Total shares outstanding at end of period     17,552,626     17,527,709

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

    Selected Financial Ratios and Other Data

      Three Months Ended
      March 31, 2025   December 31, 2024
    Performance ratios(1)  
    Return on assets (ratio of net income to average total assets) 1.33%     1.27%  
    Return on equity (ratio of net income to average equity) 10.52     10.32  
    Yield on earning assets 6.20     6.27  
    Rate paid on interest-bearing liabilities 2.73     2.94  
    Average interest rate spread 3.47     3.33  
    Net interest margin(2) 4.18     4.09  
    Average interest-earning assets to average interest-bearing liabilities 135.25     134.81  
    Noninterest expense to average total assets 2.84     3.03  
    Efficiency ratio 60.79     66.10  
    Efficiency ratio – adjusted(3) 60.29     59.89  

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

      At or For the Three Months Ended
      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    Asset quality ratios                  
    Nonperforming assets to total assets(1) 0.61%     0.63%     0.64%     0.54%     0.43%  
    Nonperforming loans to total loans(1) 0.74     0.76     0.78     0.68     0.55  
    Total classified assets to total assets 0.85     1.06     0.99     0.91     0.80  
    Allowance for credit losses to nonperforming loans(1) 165.96     163.68     166.51     194.80     235.18  
    Allowance for credit losses to total loans 1.23     1.24     1.30     1.33     1.30  
    Net charge-offs to average loans (annualized) 0.14     0.19     0.42     0.27     0.24  
    Capital ratios                  
    Equity to total assets at end of period 12.41%     12.01%     11.64%     11.21%     10.96%  
    Tangible equity to total tangible assets(2) 11.65     11.25     10.88     10.44     10.18  
    Average equity to average assets 12.66     12.28     12.02     11.78     11.51  

    (1)  Nonperforming assets include nonaccruing loans and repossessed assets. There were no accruing loans more than 90 days past due at the dates indicated. At March 31, 2025, $7.5 million, or 27.9%, of nonaccruing loans were current on their loan payments as of that date.
    (2)  See Non-GAAP reconciliations below for adjustments.

    Loans

    (Dollars in thousands) March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    Commercial real estate                  
    Construction and land development $ 247,539     $ 274,356     $ 300,905     $ 316,050     $ 304,727  
    Commercial real estate – owner occupied   570,150       545,490       544,689       545,631       532,547  
    Commercial real estate – non-owner occupied   867,711       866,094       881,340       892,653       881,143  
    Multifamily   118,094       120,425       114,155       92,292       89,692  
    Total commercial real estate   1,803,494       1,806,365       1,841,089       1,846,626       1,808,109  
    Commercial                  
    Commercial and industrial   349,085       316,159       286,809       266,136       243,732  
    Equipment finance   380,166       406,400       443,033       461,010       462,649  
    Municipal leases   163,554       165,984       158,560       152,509       151,894  
    Total commercial   892,805       888,543       888,402       879,655       858,275  
    Residential real estate                  
    Construction and land development   56,858       53,683       63,016       70,679       85,840  
    One-to-four family   631,537       630,391       627,845       621,196       605,570  
    HELOCs   199,747       195,288       194,909       188,465       184,274  
    Total residential real estate   888,142       879,362       885,770       880,340       875,684  
    Consumer   64,168       74,029       83,631       94,833       106,084  
    Total loans, net of deferred loan fees and costs   3,648,609       3,648,299       3,698,892       3,701,454       3,648,152  
    Allowance for credit losses – loans   (44,742)       (45,285)       (48,131)       (49,223)       (47,502)  
    Loans, net $ 3,603,867     $ 3,603,014     $ 3,650,761     $ 3,652,231     $ 3,600,650  

    Deposits

    (Dollars in thousands) March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    Core deposits                  
    Noninterest-bearing accounts $ 721,814   $ 680,926   $ 684,501   $ 683,346   $ 773,901
    NOW accounts   573,745     575,238     534,517     561,789     600,561
    Money market accounts   1,357,961     1,341,995     1,345,289     1,311,940     1,308,467
    Savings accounts   184,396     181,317     179,762     185,499     191,302
    Total core deposits   2,837,916     2,779,476     2,744,069     2,742,574     2,874,231
    Certificates of deposit   898,444     999,727     1,017,519     965,205     925,576
    Total $ 3,736,360   $ 3,779,203   $ 3,761,588   $ 3,707,779   $ 3,799,807

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

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

        Three Months Ended
    (Dollars in thousands)   March 31, 2025   December 31, 2024
    Noninterest expense   $ 30,961   $ 34,009
    Less: contract renewal consulting fee     —     2,965
    Noninterest expense – adjusted   $ 30,961   $ 31,044
             
    Net interest income   $ 42,907   $ 43,205
    Plus: tax-equivalent adjustment     418     389
    Plus: noninterest income     8,027     8,243
    Net interest income plus noninterest income – adjusted   $ 51,352   $ 51,837
    Efficiency ratio   60.79%   66.10%
    Efficiency ratio – adjusted   60.29%   59.89%

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

        As of
    (Dollars in thousands, except per share data)   March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    Total stockholders’ equity   $ 565,449   $ 551,758   $ 540,004   $ 523,628   $ 513,173
    Less: goodwill, core deposit intangibles, net of taxes     38,793     39,189     39,626     40,063     40,500
    Tangible book value   $ 526,656   $ 512,569   $ 500,378   $ 483,565   $ 472,673
    Common shares outstanding     17,552,626     17,527,709     17,514,922     17,437,326     17,444,787
    Book value per share   $ 32.21   $ 31.48   $ 30.83   $ 30.03   $ 29.42
    Tangible book value per share   $ 30.00   $ 29.24   $ 28.57   $ 27.73   $ 27.10

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

        As of
    (Dollars in thousands)   March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    Tangible equity(1)   $ 526,656   $ 512,569   $ 500,378   $ 483,565   $ 472,673
    Total assets     4,558,060     4,595,430     4,637,293     4,670,864     4,684,011
    Less: goodwill, core deposit intangibles, net of taxes     38,793     39,189     39,626     40,063     40,500
    Total tangible assets   $ 4,519,267   $ 4,556,241   $ 4,597,667   $ 4,630,801   $ 4,643,511
    Tangible equity to tangible assets   11.65%   11.25%   10.88%   10.44%   10.18%

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

    The MIL Network –

  • MIL-OSI United Kingdom: Sign up now for Buskfest 2025 in Banbridge

    Source: Northern Ireland City of Armagh

    L-R: Banshee, the overall winner from last year, Chris Nelmes, The Boulevard Banbridge, Lord Mayor of Armagh City, Banbridge and Craigavon, Councillor Sarah Duffy, Ralph McLean, BBC Radio Ulster, Banshee member and Michael Donaghy, Banbridge Chamber of Commerce.

    Calling all musicians, performers, and music lovers! Buskfest, one of the most anticipated musical events of the year, is back in Banbridge on Saturday 14 June 2025, and buskers of all ages and genres are being asked to sign up for a chance to perform, compete, and win incredible prizes.

    With a total prize pot of £3,500 and other exciting prizes, this year’s Buskfest promises to be bigger and better than ever before. Whether you’re a seasoned performer or a first-time busker, this is your chance to showcase your talent to a lively crowd in the heart of Banbridge. The event is free to both buskers and visitors and offers a fantastic family-friendly atmosphere.

    BBC Radio Ulster’s Ralph McLean, one of the event’s esteemed judges said,

    “Buskfest is one of my favourite musical days of the year and in my opinion, the biggest and best celebration of busking around. What makes it so special is the platform it gives performers of all kinds to step out, be heard, and connect with an audience.

    “Every year, I’m blown away by the range and quality of talent on show. Whether you’re a solo singer, a band, or something in between, there’s a space for you here. Judging is never easy, but it’s always inspiring and I can’t wait to see Banbridge come alive once again with music on every corner.”

    Registration for this year’s Buskfest is now open at buskfest.com and will close on 13 June 2025.

    On the day of the event, all participating buskers must check in at the Old Town Hall between 11.30am and 1.00pm to claim their performance pitch. The streets will come alive with music from 2.00pm to 5.00pm, followed by the prize giving and evening concert from 5.00pm to 8.30pm in the town centre. The finale will feature a stellar line-up of local talent, including Banshee – last year’s overall winner – The Reilly’s, and headliners The Nooks.

    Not only will buskers have the opportunity to win part of the £3,500 prize pot, but they’ll also be part of an incredible celebration of music, community, and creativity. The event will feature free family-friendly activities in the afternoon, ensuring fun for all ages.

    Buskfest is an event that brings people together through the power of live music, and we want you to be a part of it. To register visit buskfest.com.

    MIL OSI United Kingdom –

  • MIL-OSI: CALIFORNIA BANCORP REPORTS NET INCOME OF $16.9 MILLION FOR THE FIRST QUARTER OF 2025

    Source: GlobeNewswire (MIL-OSI)

    San Diego, Calif., April 24, 2025 (GLOBE NEWSWIRE) — California BanCorp (“us,” “we,” “our,” or the “Company”) (NASDAQ: BCAL), the holding company for California Bank of Commerce, N.A. (the “Bank”) announces its consolidated financial results for the first quarter of 2025.

    The Company reported net income of $16.9 million, or $0.52 per diluted share, for the first quarter of 2025, compared to $16.8 million, or $0.51 per diluted share for the fourth quarter of 2024, and net income of $4.9 million, or $0.26 per diluted share for the first quarter of 2024.

    “I’m pleased to report our strong first quarter earnings of $16.9 million, the second strong quarter of combined financial results since the close of our merger last July,” said David Rainer, Executive Chairman of the Company and Bank. “We continue to execute on our strategy of derisking the consolidated balance sheet through decreasing our exposure in the Sponsor Finance portfolio, and reducing our reliance on brokered deposits. We remain focused on building tangible book value, which increased to $12.29 per common share in the first quarter, up $0.58 from the prior quarter and $1.37 in the eight months since the merger closed.”

    “We continue with our successful integration, as demonstrated by the strong performance achieved in our first two quarters of combined operations,” said Steven Shelton, CEO of the Company and Bank. “Markets have been volatile lately with the recent changes in tariff policies and given the fluid dynamics of the situation we are reaching out to our clients to assess the potential impact of these changing policies on their businesses. As always, we continue to focus on providing them the highest level of outstanding service, and on building shareholder value.”

    First Quarter 2025 Highlights

      ● Net income of $16.9 million or $0.52 diluted earnings per share for the first quarter.
      ● Net interest margin of 4.65%, compared with 4.61% in the prior quarter; average total loan yield of 6.61% compared with 6.84% in the prior quarter.
      ● Reversal of credit losses of $3.8 million for the first quarter, compared with $3.8 million for the prior quarter.
      ● Return on average assets of 1.71%, compared with 1.60% in the prior quarter.
      ● Return on average common equity of 13.18%, compared with 13.21% in the prior quarter.
      ● Efficiency ratio (non-GAAP1) of 55.6% compared with 57.4% in the prior quarter; excluding merger related expenses the efficiency ratio was 55.6%, compared with 55.9% in the prior quarter.
      ● Tangible book value per common share (non-GAAP1) of $12.29 at March 31, 2025, up $0.58 from $11.71 at December 31, 2024.
      ● Total assets of $3.98 billion at March 31, 2025, compared with $4.03 billion at December 31, 2024.
      ● Total loans, including loans held for sale of $3.07 billion at March 31, 2025, compared with $3.16 billion at December 31, 2024.
      ● Nonperforming assets to total assets ratio of 0.68% at March 31, 2025, compared with 0.76% at December 31, 2024.
      ● Allowance for credit losses (“ACL”) was 1.57% of total loans held for investment at March 31, 2025; allowance for loan losses (“ALL”) was 1.49% of total loans held for investment at March 31, 2025.
      ● Total deposits of $3.34 billion at March 31, 2025, decreased $56.3 million or 1.7% compared with $3.40 billion at December 31, 2024.
      ● Noninterest-bearing demand deposits of $1.29 billion at March 31, 2025, an increase of $35.7 million or 2.8% from December 31, 2024; noninterest bearing deposits represented 38.7% of total deposits, compared with $1.26 billion, or 37.0% of total deposits at December 31, 2024.
      ● Total brokered deposits of $13.8 million, a decrease of $107.4 million from December 31, 2024.
      ● Cost of deposits was 1.59%, compared with 1.87% in the prior quarter.
      ● Cost of funds was 1.72%, compared with 1.99% in the prior quarter.
      ● The Company’s preliminary capital ratios at March 31, 2025 exceed the minimums required to be “well-capitalized,” the highest regulatory capital category.
         

    First Quarter Operating Results

    Net Income

    Net income for the first quarter of 2025 was $16.9 million, or $0.52 per diluted share, compared to $16.8 million, or $0.51 per diluted share in the fourth quarter of 2024. Pre-tax, pre-provision income (non-GAAP1) for the first quarter was $19.9 million, an increase of $481 thousand from the prior quarter. Excluding the merger and related expenses, the adjusted pre-tax, pre-provision income (non-GAAP1) for the first quarter was $19.9 million, a decrease of $162 thousand from the prior quarter. The net income and diluted earnings per share increases were largely driven by the merger with predecessor California BanCorp (the “Merger”) and the operating results since the closing date of the Merger.

    Net Interest Income and Net Interest Margin

    Net interest income for the first quarter of 2025 was $42.3 million, compared with $44.5 million in the prior quarter. The decrease in net interest income was primarily due to a $5.7 million decrease in total interest and dividend income, partially offset by a $3.4 million decrease in total interest expense in the first quarter of 2025, as compared to the prior quarter. During the first quarter of 2025, loan interest income decreased by $4.1 million, including a decrease of $421 thousand of accretion income from the net purchase accounting discounts on acquired loans, total debt securities income decreased $174 thousand, and interest and dividend income from other financial institutions decreased $1.5 million. The decrease in interest income was mainly due to decreases in average loan balances and average deposits in other financial institutions. Average total interest-earning assets decreased $160.8 million in the first quarter of 2025, the result of a $75.2 million decrease in average total loans, a $8.5 million decrease in average total debt securities, a $105.5 million decrease in average deposits in other financial institutions, partially offset by a $27.1 million increase in average Fed funds sold/resale agreements and a $1.3 million increase in average restricted stock investments and other bank stock. The decrease in interest expense for the first quarter of 2025 was primarily due to a $3.4 million decrease in interest expense on interest-bearing deposits, the result of a $151.1 million decrease in average interest-bearing deposits and a 39 basis point decrease in average interest-bearing deposit costs in the first quarter of 2025.

    Net interest margin for the first quarter of 2025 was 4.65%, compared with 4.61% in the prior quarter. The increase was primarily related to a 27 basis point decrease in the cost of funds, partially offset by a 22 basis point decrease in the total interest-earning assets yield. The yield on total average interest-earning assets in the first quarter of 2025 was 6.26%, compared with 6.48% in the prior quarter. The yield on average total loans in the first quarter of 2025 was 6.61%, a decrease of 23 basis points from 6.84% in the prior quarter. Accretion income from the net purchase accounting discounts on acquired loans was $5.7 million, increasing the yield on average total loans by 62 basis points; the net amortization expense from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium increased the interest expense by $526 thousand, the combination of which increased the net interest margin by 57 basis points in the first quarter of 2025. In the prior quarter, accretion income from the net purchase accounting discounts on acquired loans was $6.1 million, increasing the yield on average total loans by 76 basis points; the net amortization expense from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium increased the interest expense by $467 thousand, the combination of which increased the net interest margin by 58 basis points.

    Cost of funds for the first quarter of 2025 was 1.72%, a decrease of 27 basis points from 1.99% in the prior quarter. The decrease was primarily driven by a 39 basis point decrease in the cost of average interest-bearing deposits, partially offset by an increase of 9 basis points in the cost of total borrowings, which was driven primarily by the amortization expense of $559 thousand from the purchase accounting discounts on acquired subordinated debt which increased the cost on total borrowings by 7 basis points. Average noninterest-bearing demand deposits decreased $27.7 million to $1.26 billion and represented 37.4% of total average deposits for the first quarter of 2025, compared with $1.28 billion and 36.3%, respectively, in the prior quarter; average interest-bearing deposits decreased $151.1 million to $2.10 billion during the first quarter of 2025. The total cost of deposits in the first quarter of 2025 was 1.59%, a decrease of 28 basis points from 1.87% in the prior quarter. The cost of total interest-bearing deposits decreased primarily due to the Company’s deposit repricing strategy and the ongoing pay off of high cost brokered deposits in the first quarter of 2025.

    Average total borrowings increased $607 thousand to $70.0 million in the first quarter of 2025, primarily due to the amortization related to the purchase accounting discounts on acquired subordinated debt. The average cost of total borrowings was 8.06% for the first quarter of 2025, up from 7.97% in the prior quarter.

    Reversal of Credit Losses

    The Company recorded a reversal of credit losses of $3.8 million in both the first quarter of 2025 and the prior quarter. Total net charge-offs were $1.5 million in the first quarter of 2025, which included $273 thousand from an acquired consumer solar loan portfolio, $1.2 million from commercial and industrial dental loans acquired from the Merger and $1.7 million from a purchase credit deteriorated (“PCD”) commercial real-estate loan, partially offset by a $1.6 million recovery from a PCD commercial and industrial loan. The reversal of credit losses in the first quarter of 2025 included a $618 thousand reversal of credit losses for unfunded loan commitments related to the decrease in unfunded loan commitments during the first quarter of 2025, coupled with lower loss rates used to estimate the allowance for credit losses on unfunded commitments. Total unfunded loan commitments decreased $33.2 million to $892.1 million at March 31, 2025, compared to $925.3 million in unfunded loan commitments at December 31, 2024.

    The reversal of credit losses for loans held for investment in the first quarter of 2025 was $3.2 million, an increase of $291 thousand from a reversal of credit losses of $2.9 million in the prior quarter. The increase was driven primarily by changes in the composition of the loans held for investment portfolio, coupled with changes in qualitative factors and the reasonable and supportable forecast, primarily related to the economic outlook for California. The Company’s management continues to monitor macroeconomic variables related to changes in interest rates and the concerns of an economic downturn, and believes it has appropriately provisioned for the current environment.

    Noninterest Income

    The Company recorded noninterest income of $2.6 million in the first quarter of 2025, an increase of $1.6 million compared to $1.0 million in the fourth quarter of 2024. The Company reported a gain on sale of loans of $577 thousand from SBA 7A loan sales, in the first quarter of 2025, compared to a loss on sale of loans of $1.1 million related to the sale of certain Sponsor Finance loans in the prior quarter. Service charges and fees on deposit accounts of $1.2 million in the first quarter of 2025 increased $275 thousand from the prior quarter, related to the one-time waiver of analysis charges for certain deposit accounts in light of the core system conversion in the prior quarter. Bank owned life insurance income of $463 thousand in the first quarter of 2025 decreased $360 thousand from the prior quarter, primarily related to a $368 thousand death benefit income recorded in the prior quarter. No comparable death benefit income was recorded in the first quarter of 2025.

    Noninterest Expense

    Total noninterest expense for the first quarter of 2025 was $24.9 million, a decrease of $1.2 million from total noninterest expense of $26.1 million in the prior quarter, which was largely due to the decrease in merger related expenses.

    Salaries and employee benefits decreased $210 thousand during the quarter to $15.9 million. The decrease in salaries and employee benefits was primarily related to the decrease in average headcount. There were no merger related expenses in the first quarter of 2025, compared to $643 thousand in the prior quarter. Regulatory assessments of $722 thousand increased $286 thousand due to an increase in the FDIC assessment rates. Other real estate owned expense of $68 thousand in the first quarter of 2025 decreased by $152 thousand, due primarily to lower receivership expenses and property tax. Other expenses of $2.0 million in the first quarter of 2025 decreased by $175 thousand, due primarily to lower loan related expenses, customer service related expenses, travel expenses and insurance expenses.

    Efficiency ratio (non-GAAP1) for the first quarter of 2025 was 55.6%, compared to 57.4% in the prior quarter. Excluding the merger and related expenses of zero and $643 thousand, the efficiency ratio (non-GAAP1) for the first quarter of 2025 and fourth quarter of 2024 would have been 55.6% and 55.9%, respectively.

    Income Tax

    In the first quarter of 2025, the Company’s income tax expense was $6.8 million, compared with $6.5 million in the fourth quarter of 2024. The effective rate was 28.8% for the first quarter of 2025 and 27.9% for the fourth quarter of 2024. The increase in the effective tax rate for the first quarter of 2025 was primarily attributable to the impact of the non-tax deductible portion of the merger expenses and the vesting and exercise of equity awards combined with changes in the Company’s stock price over time, partially offset by the impact of the tax on the excess executive compensation.

    Balance Sheet

    Assets

    Total assets at March 31, 2025 were $3.98 billion, a decrease of $48.6 million or 1.2% from December 31, 2024. The decrease in total assets from the prior quarter was primarily related to a decrease in loans, including loans held for sale, of $82.9 million, partially offset by an increase in cash and cash equivalents of $51.1 million as compared to the prior quarter. The decrease in assets primarily relates to the decreases in wholesale funding sources and loan sales and payoffs.

    Loans

    Total loans held for investment were $3.07 billion at March 31, 2025, a decrease of $70.4 million, compared to December 31, 2024. During the first quarter of 2025, there were new originations of $69.4 million, offset by net paydowns of $21.5 million, loan sales and payoffs of $115.1 million, and the partial charge-offs of loans in the amount of $3.2 million. Total loans secured by real estate decreased by $30.7 million, of which construction and land development loans decreased by $5.9 million, commercial real estate and other loans decreased by $11.8 million, 1-4 family residential loans decreased by $7.0 million and multifamily loans decreased by $6.1 million. Commercial and industrial loans decreased by $38.5 million, and consumer loans decreased by $1.2 million. The Company had $4.6 million in loans held for sale at March 31, 2025, compared to $17.2 million at December 31, 2024.

    Deposits

    Total deposits at March 31, 2025 were $3.34 billion, a decrease of $56.3 million from December 31, 2024. The decrease primarily consisted of $107.4 million of brokered time deposits, partially offset by a $35.7 million increase in noninterest-bearing demand deposits, $10.9 million in interest-bearing non-maturity deposits, and $4.5 million of non-brokered time deposits. Noninterest-bearing demand deposits at March 31, 2025, were $1.29 billion, or 38.7% of total deposits, compared with $1.26 billion, or 37.0% of total deposits at December 31, 2024. At March 31, 2025, total interest-bearing deposits were $2.05 billion, compared to $2.14 billion at December 31, 2024. At March 31, 2025, total brokered time deposits were $13.8 million, compared to $121.1 million at December 31, 2024. The Company offers the Insured Cash Sweep (ICS) product, Certificate of Deposit Account Registry Service (CDARS), and Reich & Tang Deposit Solutions (R&T) network, all of which provide reciprocal deposit placement services to fully qualified large customer deposits for FDIC insurance among other participating banks. At March 31, 2025, total reciprocal deposits were $763.6 million, or 22.8% of total deposits at March 31, 2025, compared to $754.4 million, or 22.2% of total deposits at December 31, 2024.

    Federal Home Loan Bank (“FHLB”) and Liquidity

    At March 31, 2025 and December 31, 2024, the Company had no overnight FHLB borrowings. There were no outstanding Federal Reserve Discount Window borrowings at March 31, 2025 or December 31, 2024.

    At March 31, 2025, the Company had available borrowing capacity from an FHLB secured line of credit of approximately $687.8 million and available borrowing capacity from the Federal Reserve Discount Window of approximately $353.0 million. The Company also had available borrowing capacity from four unsecured credit lines from correspondent banks of approximately $90.5 million at March 31, 2025, with no outstanding borrowings. Total available borrowing capacity was $1.13 billion at March 31, 2025. Additionally, the Company had unpledged liquid securities at fair value of approximately $118.5 million and cash and cash equivalents of $439.2 million at March 31, 2025.

    Asset Quality

    Total non-performing assets decreased to $26.9 million, or 0.68% of total assets at March 31, 2025, compared with $30.6 million, or 0.76% of total assets at December 31, 2024. Total non-performing loans decreased to $22.8 million, or 0.74% of total loans held for investment at March 31, 2025, compared with $26.5 million, or 0.85% of total loans held for investment at December 31, 2024.

    There were four loans totaling $6.8 million downgraded to nonaccrual, partially offset by one 1-4 family residential loan of $2.9 million upgraded to accrual status and one commercial real estate loan of $7.2 million sold with an additional charge-off of $1.7 million during the first quarter of 2025. Non-performing assets in the first quarter of 2025 included OREO, net of valuation allowance, of $4.1 million related to a multifamily building, the same balance as the prior quarter.

    Special mention loans increased by $5.1 million during the first quarter of 2025 to $74.4 million at March 31, 2025. The increase in the special mention loans was due mostly to $18.9 million in downgrades from Pass loans and $8.6 million in net advances, partially offset by $15.9 million in downgrades to substandard loans, $2.1 million upgrades to Pass loans, and $4.5 million in payoffs. Substandard loans decreased by $5.8 million during the first quarter of 2025 to $111.8 million at March 31, 2025. The decrease in the substandard loans was due primarily to a 1-4 family residential loan and a commercial real estate nonaccrual PCD loan totaling $11.6 million that were both sold, $16.0 million in paydowns and payoffs, and $1.2 million in net charge-offs, partially offset by $7.2 million in downgrades from Pass loans, and $15.9 million in downgrades from special mention loans.

    The Company had $45 thousand in consumer solar loans that were over 90 days past due and still accruing interest at March 31, 2025, compared to $150 thousand in such delinquencies at December 31, 2024.

    There were $5.1 million in loan delinquencies (30-89 days past due, excluding nonaccrual loans) at March 31, 2025, compared to $12.1 million in such loan delinquencies at December 31, 2024.

    The allowance for credit losses, which is comprised of the allowance for loan losses (“ALL”) and reserve for unfunded loan commitments, totaled $48.3 million at March 31, 2025, compared to $53.6 million at December 31, 2024. The decrease in the allowance for credit losses included a $3.2 million and $618 thousand reversal of provision for credit losses for the loan portfolio and reserve for unfunded loan commitments, respectively, coupled with total net charge-offs of $1.5 million for the quarter ended March 31, 2025.

    The ALL was $45.8 million, or 1.49% of total loans held for investment at March 31, 2025, compared with $50.5 million, or 1.61% at December 31, 2024.

    Capital

    Tangible book value per common share (non-GAAP1) at March 31, 2025, was $12.29, compared with $11.71 at December 31, 2024. In the first quarter of 2025, tangible book value was primarily impacted by net income of $16.9 million for the first quarter, stock-based compensation expense, coupled with a decrease in net of tax unrealized losses on available-for-sale debt securities. Other comprehensive losses related to unrealized losses, net of taxes, on available-for-sale debt securities decreased by $2.2 million to $4.4 million at March 31, 2025, from $6.6 million at December 31, 2024. The decrease in the net of tax unrealized losses on available-for-sale debt securities was attributable to non-credit related factors, including an increase in bond prices at the long end of the yield curve and the general interest rate environment. Tangible common equity (non-GAAP1) as a percentage of total tangible assets (non-GAAP1) at March 31, 2025, increased to 10.34% from 9.69% in the prior quarter, and unrealized losses, net of taxes, on available-for-sale debt securities as a percentage of tangible common equity (non-GAAP1) at March 31, 2025 decreased to 1.1% from 1.8% in the prior quarter.

    The Company’s preliminary capital ratios exceed the minimums required to be “well-capitalized” at March 31, 2025.

    ABOUT CALIFORNIA BANCORP

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

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

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

    Factors that could cause or contribute to results differing from those in or implied in the forward-looking statements include but are not limited to risks related to the Merger, including the risks that cost savings may be less than anticipated, and difficulties in retaining senior management, employees or customers, the impact of bank failures or other adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks, changes in real estate markets and valuations; the impact on financial markets from geopolitical conflicts; inflation, interest rate, market and monetary fluctuations and general economic conditions, either nationally or locally in the areas in which the Company conducts business; increases in competitive pressures among financial institutions and businesses offering similar products and services; general credit risks related to lending, including changes in the value of real estate or other collateral, the financial condition of borrowers, the effectiveness of our underwriting practices and the risk of fraud; higher than anticipated defaults in the Company’s loan portfolio; changes in management’s estimate of the adequacy of the allowance for credit losses or the factors the Company uses to determine the allowance for credit losses; changes in demand for loans and other products and services offered by the Company; the costs and outcomes of litigation; legislative or regulatory changes or changes in accounting principles, policies or guidelines and other risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) and other documents the Company may file with the SEC from time to time.

    Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and other documents the Company files with the SEC from time to time.

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

    California BanCorp and Subsidiary
    Financial Highlights (Unaudited)

        At or for the
    Three Months Ended    		  
        March 31,
    2025    		     December 31,
    2024    		     March 31,
    2024    		  
        ($ in thousands except share and per share data)  
    EARNINGS                        
    Net interest income   $ 42,255     $ 44,541     $ 20,494  
    Reversal of credit losses   $ (3,776 )   $ (3,835 )   $ (331 )
    Noninterest income   $ 2,566     $ 1,004     $ 1,413  
    Noninterest expense   $ 24,920     $ 26,125     $ 14,981  
    Income tax expense   $ 6,824     $ 6,483     $ 2,322  
    Net income   $ 16,853     $ 16,772     $ 4,935  
    Pre-tax pre-provision income (1)   $ 19,901     $ 19,420     $ 6,926  
    Adjusted pre-tax pre-provision income (1)   $ 19,901     $ 20,063     $ 7,475  
    Diluted earnings per share   $ 0.52     $ 0.51     $ 0.26  
    Shares outstanding at period end     32,402,140       32,265,935       18,527,178  
                             
    PERFORMANCE RATIOS                        
    Return on average assets     1.71 %     1.60 %     0.86 %
    Adjusted return on average assets (1)     1.71 %     1.64 %     0.95 %
    Return on average common equity     13.18 %     13.21 %     6.85 %
    Adjusted return on average common equity (1)     13.18 %     13.57 %     7.61 %
    Yield on total loans     6.61 %     6.84 %     6.02 %
    Yield on interest earning assets     6.26 %     6.48 %     5.79 %
    Cost of deposits     1.59 %     1.87 %     2.05 %
    Cost of funds     1.72 %     1.99 %     2.17 %
    Net interest margin     4.65 %     4.61 %     3.80 %
    Efficiency ratio (1)     55.60 %     57.36 %     68.38 %
    Adjusted efficiency ratio (1)     55.60 %     55.95 %     65.88 %
        As of  
        March 31,
    2025    		     December 31,
    2024    		  
        ($ in thousands except share and per share data)  
    CAPITAL                
    Tangible equity to tangible assets (1)     10.34 %     9.69 %
    Book value (BV) per common share   $ 16.40     $ 15.86  
    Tangible BV per common share (1)   $ 12.29     $ 11.71  
                     
    ASSET QUALITY                
    Allowance for loan losses (ALL)   $ 45,839     $ 50,540  
    Reserve for unfunded loan commitments   $ 2,485     $ 3,103  
    Allowance for credit losses (ACL)   $ 48,324     $ 53,643  
    Allowance for loan losses to nonperforming loans     2.01 x     1.90 x
    ALL to total loans held for investment     1.49 %     1.61 %
    ACL to total loans held for investment     1.57 %     1.71 %
    30-89 days past due, excluding nonaccrual loans   $ 5,103     $ 12,082  
    Over 90 days past due, excluding nonaccrual loans   $ 45     $ 150  
    Special mention loans   $ 74,421     $ 69,339  
    Special mention loans to total loans held for investment     2.43 %     2.21 %
    Substandard loans   $ 111,786     $ 117,598  
    Substandard loans to total loans held for investment     3.64 %     3.75 %
    Nonperforming loans   $ 22,825     $ 26,536  
    Nonperforming loans to total loans held for investment     0.74 %     0.85 %
    Other real estate owned, net   $ 4,083     $ 4,083  
    Nonperforming assets   $ 26,908     $ 30,619  
    Nonperforming assets to total assets     0.68 %     0.76 %
                     
    END OF PERIOD BALANCES                
    Total loans, including loans held for sale   $ 3,073,399     $ 3,156,345  
    Total assets   $ 3,983,090     $ 4,031,654  
    Deposits   $ 3,342,503     $ 3,398,760  
    Loans to deposits     91.9 %     92.9 %
    Shareholders’ equity   $ 531,384     $ 511,836  


    (1) Non-GAAP measure. See – GAAP to Non-GAAP reconciliation.

        At or for the
    Three Months Ended    		  
    ALLOWANCE for CREDIT LOSSES   March 31,
    2025    		     December 31,
    2024    		     March 31,
    2024    		  
        ($ in thousands)  
    Allowance for loan losses                        
    Balance at beginning of period   $ 50,540     $ 53,552     $ 22,569  
    Reversal of credit losses     (3,158 )     (2,867 )     (314 )
    Charge-offs     (3,159 )     (154 )     (1 )
    Recoveries     1,616       9       —  
    Net charge-offs     (1,543 )     (145 )     (1 )
    Balance, end of period   $ 45,839     $ 50,540     $ 22,254  
    Reserve for unfunded loan commitments (1)                        
    Balance, beginning of period   $ 3,103     $ 4,071     $ 933  
    Reversal of credit losses     (618 )     (968 )     (17 )
    Balance, end of period     2,485       3,103       916  
    Allowance for credit losses   $ 48,324     $ 53,643     $ 23,170  
                             
    ALL to total loans held for investment     1.49 %     1.61 %     1.18 %
    ACL to total loans held for investment     1.57 %     1.71 %     1.23 %
    Net charge-offs to average total loans     (0.20 )%     (0.02 )%     0.00 %


    (1)     Included in “Accrued interest and other liabilities” on the consolidated balance sheet.

    California BanCorp and Subsidiary
    Balance Sheets (Unaudited)

        March 31,
    2025    		     December 31,
    2024    		  
        ($ in thousands)  
    ASSETS                
    Cash and due from banks   $ 80,441     $ 60,471  
    Federal funds sold & interest-bearing balances     358,800       327,691  
    Total cash and cash equivalents     439,241       388,162  
                     
    Debt securities available-for-sale, at fair value (amortized cost of $137,855, and $151,429 at March 31, 2025 and December 31, 2024)     131,593       142,001  
    Debt securities held-to-maturity, at cost (fair value of $47,329 and $47,823 at March 31, 2025 and December 31, 2024)     53,194       53,280  
    Loans held for sale     4,625       17,180  
    Loans held for investment:                
    Construction & land development     221,437       227,325  
    1-4 family residential     157,442       164,401  
    Multifamily     237,896       243,993  
    Other commercial real estate     1,755,962       1,767,727  
    Commercial & industrial     672,468       710,970  
    Other consumer     23,569       24,749  
    Total loans held for investment     3,068,774       3,139,165  
    Allowance for credit losses – loans     (45,839 )     (50,540 )
    Total loans held for investment, net     3,022,935       3,088,625  
                     
    Restricted stock at cost     30,845       30,829  
    Premises and equipment     13,154       13,595  
    Right of use asset     13,384       14,350  
    Other real estate owned, net     4,083       4,083  
    Goodwill     111,780       111,787  
    Intangible assets     21,323       22,271  
    Bank owned life insurance     66,867       66,636  
    Deferred taxes, net     36,473       43,127  
    Accrued interest and other assets     33,593       35,728  
    Total assets   $ 3,983,090     $ 4,031,654  
                     
    LIABILITIES AND SHAREHOLDERS’ EQUITY                
    Deposits:                
    Noninterest-bearing demand   $ 1,292,689     $ 1,257,007  
    Interest-bearing NOW accounts     674,460       673,589  
    Money market and savings accounts     1,192,960       1,182,927  
    Time deposits     182,394       285,237  
    Total deposits     3,342,503       3,398,760  
                     
    Borrowings     70,308       69,725  
    Operating lease liability     17,142       18,310  
    Accrued interest and other liabilities     21,753       33,023  
    Total liabilities     3,451,706       3,519,818  
                     
    Shareholders’ Equity:                
    Common stock – 50,000,000 shares authorized, no par value; issued and outstanding 32,402,140 and 32,265,935 at March 31, 2025 and December 31, 2024     442,934       442,469  
    Retained earnings     92,861       76,008  
    Accumulated other comprehensive loss – net of taxes     (4,411 )     (6,641 )
    Total shareholders’ equity     531,384       511,836  
    Total liabilities and shareholders’ equity   $ 3,983,090     $ 4,031,654  

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

        Three Months Ended  
        March 31,
    2025    		     December 31,
    2024    		     March 31,
    2024    		  
        ($ in thousands except share and per share data)  
    INTEREST AND DIVIDEND INCOME                        
    Interest and fees on loans   $ 50,686     $ 54,791     $ 28,584  
    Interest on debt securities     1,524       1,698       1,213  
    Interest on tax-exempted debt securities     305       305       306  
    Interest and dividends from other institutions     4,310       5,764       1,161  
    Total interest and dividend income     56,825       62,558       31,264  
                             
    INTEREST EXPENSE                        
    Interest on NOW, savings, and money market accounts     11,116       12,447       6,770  
    Interest on time deposits     2,063       4,179       3,021  
    Interest on borrowings     1,391       1,391       979  
    Total interest expense     14,570       18,017       10,770  
    Net interest income     42,255       44,541       20,494  
    Reversal of credit losses (1)     (3,776 )     (3,835 )     (331 )
    Net interest income after reversal of credit losses     46,031       48,376       20,825  
                             
    NONINTEREST INCOME                        
    Service charges and fees on deposit accounts     1,186       911       525  
    Gain (loss) on sale of loans     577       (1,095 )     415  
    Bank owned life insurance income     463       823       261  
    Servicing and related income on loans     142       157       73  
    Other charges and fees     199       208       139  
    Total noninterest income     2,566       1,004       1,413  
                             
    NONINTEREST EXPENSE                        
    Salaries and employee benefits     15,864       16,074       9,610  
    Occupancy and equipment expenses     2,152       2,314       1,452  
    Data processing     1,935       1,960       1,150  
    Legal, audit and professional     859       817       516  
    Regulatory assessments     722       436       387  
    Director and shareholder expenses     404       458       203  
    Merger and related expenses     —       643       549  
    Intangible assets amortization     948       1,060       65  
    Other real estate owned expense     68       220       88  
    Other expense     1,968       2,143       961  
    Total noninterest expense     24,920       26,125       14,981  
    Income before income taxes     23,677       23,255       7,257  
    Income tax expense     6,824       6,483       2,322  
    Net income   $ 16,853     $ 16,772     $ 4,935  
                             
    Net income per share – basic   $ 0.52     $ 0.52     $ 0.27  
    Net income per share – diluted   $ 0.52     $ 0.51     $ 0.26  
    Weighted average common shares-diluted     32,698,227       32,698,714       18,801,716  
    Pre-tax, pre-provision income (2)   $ 19,901     $ 19,420     $ 6,926  


    (1) Included reversal of credit losses on unfunded loan commitments of $618 thousand, $968.0 thousand and $17 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.
    (2) Non-GAAP measure. See — GAAP to Non-GAAP reconciliation.

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

        Three Months Ended  
        March 31, 2025     December 31, 2024     March 31, 2024  
        Average Balance     Income/
    Expense    		     Yield/
    Cost    		     Average Balance     Income/
    Expense    		     Yield/
    Cost    		     Average Balance     Income/
    Expense    		     Yield/
    Cost    		  
        ($ in thousands)  
    Assets                                                                        
    Interest-earning assets:                                                                        
    Total loans   $ 3,109,722     $ 50,686       6.61 %   $ 3,184,918     $ 54,791       6.84 %   $ 1,909,271     $ 28,584       6.02 %
    Taxable debt securities     139,481       1,524       4.43 %     147,895       1,698       4.57 %     126,803       1,213       3.85 %
    Tax-exempt debt securities (1)     53,522       305       2.93 %     53,607       305       2.87 %     53,842       306       2.89 %
    Deposits in other financial institutions     316,582       3,468       4.44 %     422,032       5,123       4.83 %     54,056       716       5.33 %
    Fed funds sold/resale agreements     30,413       335       4.47 %     3,353       38       4.51 %     9,771       134       5.52 %
    Restricted stock investments and other bank stock     31,657       507       6.50 %     30,341       603       7.91 %     16,412       311       7.62 %
    Total interest-earning assets     3,681,377       56,825       6.26 %     3,842,146       62,558       6.48 %     2,170,155       31,264       5.79 %
    Total noninterest-earning assets     318,132                       326,601                       139,672                  
    Total assets   $ 3,999,509                     $ 4,168,747                     $ 2,309,827                  
                                                                             
    Liabilities and Shareholders’ Equity                                                                        
    Interest-bearing liabilities:                                                                        
    Interest-bearing NOW accounts   $ 735,209     $ 3,366       1.86 %   $ 704,017     $ 3,784       2.14 %   $ 359,784     $ 2,045       2.29 %
    Money market and savings accounts     1,161,960       7,750       2.70 %     1,192,692       8,663       2.89 %     648,640       4,725       2.93 %
    Time deposits     207,519       2,063       4.03 %     359,111       4,179       4.63 %     255,474       3,021       4.76 %
    Total interest-bearing deposits     2,104,688       13,179       2.54 %     2,255,820       16,626       2.93 %     1,263,898       9,791       3.12 %
    Borrowings:                                                                        
    FHLB advances     —       —       — %     —       —       — %     50,593       708       5.63 %
    Subordinated debt     70,027       1,391       8.06 %     69,420       1,391       7.97 %     17,878       271       6.10 %
    Total borrowings     70,027       1,391       8.06 %     69,420       1,391       7.97 %     68,471       979       5.75 %
    Total interest-bearing liabilities     2,174,715       14,570       2.72 %     2,325,240       18,017       3.08 %     1,332,369       10,770       3.25 %
                                                                             
    Noninterest-bearing liabilities:                                                                        
    Noninterest-bearing deposits (2)     1,255,883                       1,283,591                       661,265                  
    Other liabilities     50,368                       55,007                       26,430                  
    Shareholders’ equity     518,543                       504,909                       289,763                  
    Total Liabilities and Shareholders’ Equity   $ 3,999,509                     $ 4,168,747                     $ 2,309,827                  
                                                                             
    Net interest spread                     3.54 %                     3.40 %                     2.54 %
    Net interest income and margin           $ 42,255       4.65 %           $ 44,541       4.61 %           $ 20,494       3.80 %
    Cost of deposits   $ 3,360,571     $ 13,179       1.59 %   $ 3,539,411     $ 16,626       1.87 %   $ 1,925,163     $ 9,791       2.05 %
    Cost of funds   $ 3,430,598     $ 14,570       1.72 %   $ 3,608,831     $ 18,017       1.99 %   $ 1,993,634     $ 10,770       2.17 %


    (1) Tax-exempt debt securities yields are presented on a tax equivalent basis using a 21% tax rate.
    (2) Average noninterest-bearing deposits represent 37.37%, 36.27% and 34.35% of average total deposits for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

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

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

        Three Months Ended  
        March 31,
    2025    		     December 31,
    2024    		     March 31,
    2024    		  
        ($ in thousands)  
    Adjusted net income                        
    Net income   $ 16,853     $ 16,772     $ 4,935  
    Add: After-tax merger and related expenses (1)     —       453       547  
    Adjusted net income (non-GAAP)   $ 16,853     $ 17,225     $ 5,482  
                             
    Efficiency Ratio                        
    Noninterest expense   $ 24,920     $ 26,125     $ 14,981  
    Deduct: Merger and related expenses     —       643       549  
    Adjusted noninterest expense     24,920       25,482       14,432  
                             
    Net interest income     42,255       44,541       20,494  
    Noninterest income     2,566       1,004       1,413  
    Total net interest income and noninterest income   $ 44,821     $ 45,545     $ 21,907  
    Efficiency ratio (non-GAAP)     55.6 %     57.4 %     68.4 %
    Adjusted efficiency ratio (non-GAAP)     55.6 %     55.9 %     65.9 %
                             
    Pre-tax pre-provision income                        
    Net interest income   $ 42,255     $ 44,541     $ 20,494  
    Noninterest income     2,566       1,004       1,413  
    Total net interest income and noninterest income     44,821       45,545       21,907  
    Less: Noninterest expense     24,920       26,125       14,981  
    Pre-tax pre-provision income (non-GAAP)     19,901       19,420       6,926  
    Add: Merger and related expenses     —       643       549  
    Adjusted pre-tax pre-provision income (non-GAAP)   $ 19,901     $ 20,063     $ 7,475  


    (1) After-tax merger and related expenses are presented using a 29.56% tax rate.

    Return on Average Assets, Equity, and Tangible Equity                        
    Net income   $ 16,853     $ 16,772     $ 4,935  
    Adjusted net income (non-GAAP)   $ 16,853     $ 17,225     $ 5,482  
                             
    Average assets   $ 3,999,509     $ 4,168,747     $ 2,309,827  
    Average shareholders’ equity     518,543       504,909       289,763  
    Less: Average intangible assets     133,567       135,064       38,964  
    Average tangible common equity (non-GAAP)   $ 384,976     $ 369,845     $ 250,799  
                             
    Return on average assets     1.71 %     1.60 %     0.86 %
    Adjusted return on average assets (non-GAAP)     1.71 %     1.64 %     0.95 %
    Return on average equity     13.18 %     13.21 %     6.85 %
    Adjusted return on average equity (non-GAAP)     13.18 %     13.57 %     7.61 %
    Return on average tangible common equity (non-GAAP)     17.75 %     18.04 %     7.91 %
    Adjusted return on average tangible common equity (non-GAAP)     17.75 %     18.53 %     8.79 %
        March 31,
    2025    		     December 31,
    2024    		  
        ($ in thousands except share and per share data)  
    Tangible Common Equity Ratio/Tangible Book Value Per Share                
    Shareholders’ equity   $ 531,384     $ 511,836  
    Less: Intangible assets     133,103       134,058  
    Tangible common equity (non-GAAP)   $ 398,281     $ 377,778  
                     
    Total assets   $ 3,983,090     $ 4,031,654  
    Less: Intangible assets     133,103       134,058  
    Tangible assets (non-GAAP)   $ 3,849,987     $ 3,897,596  
                     
    Equity to asset ratio     13.34 %     12.70 %
    Tangible common equity to tangible asset ratio (non-GAAP)     10.34 %     9.69 %
    Book value per share   $ 16.40     $ 15.86  
    Tangible book value per share (non-GAAP)   $ 12.29     $ 11.71  
    Shares outstanding     32,402,140       32,265,935  


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

    The MIL Network –

  • MIL-OSI: ClearScale Signs New Strategic Collaboration Agreement with AWS to Empower Small and Medium-Sized Businesses to Accelerate Value in the Cloud

    Source: GlobeNewswire (MIL-OSI)

    SAN FRANCISCO, April 24, 2025 (GLOBE NEWSWIRE) — ClearScale, an AWS Premier Tier Services Partner and cloud consulting company, announced today it has signed a multi-year strategic collaboration agreement (SCA) with Amazon Web Services (AWS) as part of the recently introduced Small Business Acceleration Initiative (SBAI), an initiative designed to drive small and medium-sized business digital customer transformation at scale.

    Through this agreement, ClearScale will partner with SBAI teams to drive innovation and propel customers who are experiencing rapid growth and dynamic business environments, to realize the value of AWS.

    “We are expanding our collaboration with AWS to empower small and medium sized customers to realize and experience the benefits of building cloud native applications, retire legacy debt and harness the power of Data and Analytics to scale their rapidly growing businesses,” said Rich Janson, CRO of ClearScale. “Having led 400+ successful Migration and Modernization engagements across today’s most demanding industries, our goal is to take companies who are experiencing exponential growth and empower them to realize the value of AWS to achieve their business goals.”

    ClearScale meets customers where they are on their cloud adoption journey, partnering with them through all phases—from business case creation and modernization inception to execution and optimization—aligning data, analytics, and generative AI data readiness with their desired business outcomes to drive growth.

    “Through our collaboration with ClearScale, we developed a scalable, AI-powered mobile app that delivers tailored legal advice in under 30 seconds — making legal insights accessible to those who need it most. Leveraging AWS technologies like Amazon Bedrock, we created a cutting-edge solution capable of supporting up to 250,000 monthly users with room for growth,” Dave Smith, Newton’s Law CEO.

    ClearScale helps SMB customers across various industries achieve their business goals through cloud adoption. Our broad service portfolio, industry knowledge, and modernization expertise enable us to accelerate their cloud journey and ensure their continued success.

    For more information on ClearScale and their Migration/Modernization portfolio please visit: ClearScale

    About ClearScale

    ClearScale is a professional services company and an all-in AWS Premier Tier Services Partner that helps business leaders create clear business value at speed and scale. We combine our expertise in workload migrations, cloud-native systems integration, strategic consulting, application development, modernization, data, and AI to empower leaders in solving their most critical business challenges and positioning their organizations for growth.

    As an industry-leading AWS Premier Tier Services Partner, ClearScale delivers award-winning experience and expertise across AWS industries and competencies. Our core service areas include AWS Foundations & Migrations, Cloud-Native Application Development, Infrastructure & DevOps Modernization, Data Modernization & Analytics, Application Modernization, Artificial Intelligence & MLOps, and Generative AI.

    Contact:
    Kevin Wolf
    kevin@tgprllc.com

    The MIL Network –

  • MIL-OSI United Kingdom: Stoke-on-Trent market named best in Staffordshire

    Source: City of Stoke-on-Trent

    Published: Thursday, 24th April 2025

    A Stoke-on-Trent market which dates back over 150 years has been named the best in Staffordshire.

    Longton Victorian Market clinched the title of ‘Staffordshire Market of the Year’ at the Our Staffordshire News’ Business, Charity, Community and Food Awards 2025.

    The awards, which took place earlier this month, awarded Tunstall Market, also managed by Stoke-on-Trent City Council, third in the same category.

    Councillor Finlay Gordon-McCusker, cabinet member for transport, regeneration and infrastructure at Stoke-on-Trent City Council, said: “Our markets are really important to our local communities and this award is testament to that.

    “All of our traders and our dedicated markets team work tirelessly to make sure our markets remain at the heart of our town centres, so I would like to pass on my huge congratulations to them.

    “If you haven’t visited for a while, I would encourage you to pop down and support your local market.”

    For more information about Stoke-on-Trent Markets visit www.stoke.gov.uk/markets

    MIL OSI United Kingdom –

  • MIL-OSI: ConnectOne Bancorp, Inc. Reports First Quarter 2025 Results; Declares Common and Preferred Dividends

    Source: GlobeNewswire (MIL-OSI)

    ENGLEWOOD CLIFFS, N.J., April 24, 2025 (GLOBE NEWSWIRE) — ConnectOne Bancorp, Inc. (Nasdaq: CNOB) (the “Company” or “ConnectOne”), parent company of ConnectOne Bank (the “Bank”), today reported net income available to common stockholders of $18.7 million for the first quarter of 2025 compared with $18.9 million for the fourth quarter of 2024 and $15.7 million for the first quarter of 2024. Diluted earnings per share were $0.49 for the first quarter of 2025 compared with $0.49 for the fourth quarter of 2024 and $0.41 for the first quarter of 2024. Return on average assets was 0.84%, 0.84% and 0.70% for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively. Return on average tangible common equity was 8.25%, 8.27% and 7.15% for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

    Operating net income available to common stockholders, which excludes non-operating items (primarily merger and branch closure related expenses), was $19.7 million for the first quarter of 2025, $20.2 million for the fourth quarter of 2024 and $15.9 million for the first quarter of 2024. Operating diluted earnings per share were $0.51 for the first quarter of 2025, $0.52 for the fourth quarter of 2024 and $0.41 for the first quarter of 2024. Operating return on average assets was 0.88%, 0.90% and 0.71% for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively. Operating return on average tangible common equity was 8.59%, 8.77% and 7.12% for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively. See supplemental tables for a complete reconciliation of GAAP earnings to operating earnings, and other non-GAAP measures.
        
    Net income available to common stockholders and diluted earnings per share during the first quarter of 2025 were essentially flat when compared to the fourth quarter of 2024, reflecting modest changes in all statement of income categories. The increase of $3.0 million in net income available to common stockholders versus the first quarter of 2024 was primarily due to a $5.5 million increase in net interest income, a $0.5 million decrease in provision for credit losses and a $0.6 million increase in noninterest income, partially offset by a $2.2 million increase in noninterest expenses and a $1.3 million increase in income tax expense.

    “We are pleased with ConnectOne’s solid performance to start the year, demonstrating disciplined execution across the organization,” said Frank Sorrentino, Chairman and Chief Executive Officer of ConnectOne. “We look forward to finalizing our planned merger with The First of Long Island Corporation in the second quarter- bringing together two highly compatible relationship focused institutions to create a premier New York Metro community bank, providing attractive opportunities for our combined client base and the markets we serve.”

    “Our net interest margin widened meaningfully again as expected — increasing 7 basis points during the 2025 first quarter — driven by a strengthened balance sheet and favorable interest rate positioning.  We anticipate this positive momentum to carry through the remainder of the year and into 2026, supporting continued margin expansion.” Mr. Sorrentino commented, “Although the loan portfolio contracted slightly since year-end, our loan pipeline is robust, backed by solid credits at attractive spreads, and continues to reflect steady, diversified growth.”

    “Credit quality trends remained stable during the first quarter with nonaccrual loans decreasing to 0.61% of total loans and annualized quarterly charge-offs remaining below 0.18% for the fifth consecutive quarter,” Mr. Sorrentino added. “In addition, our tangible book value per share continues to build ahead of the merger, increasing by more than 3% since announcing the transaction, our loan to deposit ratio declined to 105.6%, and our regulatory CRE concentration ratio improved by 15 percentage points to 420%.”

    Mr. Sorrentino concluded, “Although there is an increasing industry-wide focus on the impact of potential tariff policy on borrower health in various loan segments, our direct exposure to import/export-dependent segments is very limited. Our ongoing portfolio reviews have shown very limited disruption to date, and we remain confident in the stability and resilience of our credit portfolio.”

    Dividend Declarations

    The Company announced that its Board of Directors declared a cash dividend on both its common stock and its outstanding preferred stock. A cash dividend on common stock of $0.18 per share will be paid on June 2, 2025, to common stockholders of record on May 15, 2025. A dividend of $0.328125 per depositary share, representing a 1/40th interest in a share of the Company’s 5.25% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, will also be paid on June 2, 2025 to holders of record on May 15, 2025.

    Operating Results

    Fully taxable equivalent net interest income for the first quarter of 2025 was $65.8 million, an increase of $1.0 million, or 1.6%, from the fourth quarter of 2024, due to a seven basis-point widening of the net interest margin to 2.93% from 2.86%, and a 1.2% increase in average interest earning assets, partially offset by a lower day-count. The widening of the net interest margin was primarily due to a 21 basis-point decrease in the average costs of deposits, including noninterest-bearing deposits, partially offset by an 11 basis-point decline in the rate earned on interest-earning assets.

    Fully taxable equivalent net interest income for the first quarter of 2025 increased by $5.5 million, or 9.0%, from the first quarter of 2024. The increase from the first quarter of 2024 resulted primarily from a 29 basis-point widening in the net interest margin to 2.93% from 2.64%. During the first quarter of 2025, average total loans decreased by $123.8 million, or 1.5% when compared to the first quarter of 2024. The widening of the net interest margin for the first quarter of 2025 when compared to the first quarter of 2024 was primarily due to a 42 basis-point decrease in the average cost of total funds, including noninterest-bearing deposits, partially offset by a nine basis-point decrease in the loan portfolio yield.

    Noninterest income was $4.5 million in the first quarter of 2025, $3.7 million in the fourth quarter of 2024 and $3.8 million in the first quarter of 2024. The $0.7 million increase in noninterest income for the first quarter of 2025 when compared to the fourth quarter of 2024 was primarily due to a $0.8 million increase in net gains on equity securities, including a $0.4 million gain on the sale of a strategic equity investment, and a $0.3 million decrease in net gains on sale of loans held-for-sale. The $0.6 million increase in noninterest income for the first quarter of 2025 when compared to the first quarter of 2024 was primarily due to a $0.4 million increase in deposit, loan and other income and a $0.4 million gain on the sale of a strategic equity investment, partially offset by a $0.2 million decrease in net gains on sale of loans held-for-sale.

    Noninterest expenses were $39.3 million for the first quarter of 2025, $38.5 million for the fourth quarter of 2024 and $37.1 million for the first quarter of 2024. The $0.8 million increase in noninterest expenses for the first quarter of 2025 when compared to the fourth quarter of 2024 was primarily due to a $0.5 million increase in merger expenses, a $0.3 million increase in salaries and employee benefits and a $0.3 million bank owned life insurance (“BOLI”) restructuring charge in the first quarter of 2025, partially offset by a $0.5 million decrease in charges related to a branch closing in the fourth quarter of 2024. The $2.2 million increase in noninterest expenses for the first quarter of 2025 when compared to the first quarter of 2024 was primarily due to a $1.3 million increase in merger expenses, a $0.5 million increase in salaries and employee benefits and the aforementioned $0.3 million BOLI restructuring charge. The increases in merger expenses when compared to the fourth quarter of 2024 and the first quarter of 2024 are due to the planned merger with The First of Long Island Corporation.

    Income tax expense was $7.2 million for the first quarter of 2025, $6.1 million for the fourth quarter of 2024 and $5.9 million for the first quarter of 2024. The effective tax rates for the first quarter of 2025, fourth quarter of 2024 and first quarter of 2024 were 26.1%, 23.0% and 25.5%, respectively. The effective tax rate for the fourth quarter of 2024 reflects year-end adjustments for the effective tax rate for the full-year 2024. The overall increase in the effective tax rate during the first quarter of 2025 when compared to the fourth quarter of 2024 and the first quarter of 2024 was due to an increase in income before income tax expense and a decrease in tax-free adjustments.

    Asset Quality

    The provision for credit losses was $3.5 million for the first quarter of 2025, $3.5 million for the fourth quarter of 2024 and $4.0 million for the first quarter of 2024. In each of the quarters presented, the provision for credit losses reflected net portfolio growth, charges related to individually evaluated loans, and changing economic forecasts and conditions.

    Nonperforming assets, which includes nonaccrual loans and other real estate owned (the Bank had no other real estate owned during the periods reported), were $49.9 million as of March 31, 2025, $57.3 million as of December 31, 2024 and $47.4 million as of March 31, 2024. Nonperforming assets as a percentage of total assets were 0.51% as of March 31, 2025, 0.58% as of December 31, 2024 and 0.48% as of March 31, 2024. The ratio of nonaccrual loans to loans receivable was 0.61%, 0.69% and 0.57%, as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively. The annualized net loan charge-offs ratio was 0.17% for the first quarter of 2025, 0.16% for the fourth quarter of 2024 and 0.15% for the first quarter of 2024. The allowance for credit losses represented 1.00% of loans receivable as of March 31, 2025, December 31, 2024, and March 31, 2024. The allowance for credit losses as a percentage of nonaccrual loans was 165.3% as of March 31, 2025, 144.3% as of December 31, 2024 and 174.7% as of March 31, 2024. Criticized and classified loans as a percentage of loans receivable was 2.79% as of March 31, 2025, up slightly from 2.68% as of December 31, 2024 and up from 1.30% as of March 31, 2024. Loans delinquent 30 to 89 days were 0.18% of loans receivable as of March 31, 2025, up from 0.04% as of December 31, 2024 and up from 0.04% as of March 31, 2024. The overall credit quality metrics of the Bank’s loan portfolio are sound, reflecting charge-offs, nonaccruals, delinquencies and classified loans all remaining within historical ranges.

    Selected Balance Sheet Items

    The Company’s total assets were $9.759 billion as of March 31, 2025, compared to $9.880 billion as of December 31, 2024. Loans receivable were $8.201 billion as of March 31, 2025 and $8.275 billion as of December 31, 2024. Total deposits were $7.767 billion as of March 31, 2025 and $7.820 billion as of December 31, 2024.

    The Company’s total stockholders’ equity was $1.253 billion as of March 31, 2025 and $1.242 billion as of December 31, 2024. The increase in total stockholders’ equity was primarily due to an increase in retained earnings of $11.8 million. As of March 31, 2025, the Company’s tangible common equity ratio and tangible book value per share were 9.73% and $24.16, respectively, compared to 9.49% and $23.92, respectively, as of December 31, 2024. Total goodwill and other intangible assets were $212.7 million as of March 31, 2025, and $213.0 million as of December 31, 2024.

    Use of Non-GAAP Financial Measures

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

    First Quarter 2025 Results Conference Call

    Management will also host a conference call and audio webcast at 10:00 a.m. ET on April 24, 2025 to review the Company’s financial performance and operating results. The conference call dial-in number is 1 (646) 307-1963, access code 5043609. Please dial in at least five minutes before the start of the call to register. An audio webcast of the conference call will be available to the public, on a listen-only basis, via the “Investor Relations” link on the Company’s website https://www.ConnectOneBank.com or at http://ir.connectonebank.com. 

    A replay of the conference call will be available beginning at approximately 1:00 p.m. ET on Thursday, April 24, 2025 and ending on Thursday, May 1, 2025 by dialing 1 (609) 800-9909, access code 5043609. An online archive of the webcast will be available following the completion of the conference call at https://www.ConnectOneBank.com or at http://ir.connectonebank.com.

    About ConnectOne Bancorp, Inc.

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

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

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

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

    CONNECTONE BANCORP, INC. AND SUBSIDIARIES          
    CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION        
    (in thousands)          
               
      March 31,   December 31,   March 31,
        2025       2024       2024  
      (unaudited)       (unaudited)
    ASSETS          
    Cash and due from banks $ 49,759     $ 57,816     $ 45,322  
    Interest-bearing deposits with banks   242,844       298,672       232,261  
         Cash and cash equivalents   292,603       356,488       277,583  
               
    Investment securities   636,806       612,847       619,397  
    Equity securities   18,859       20,092       19,457  
               
    Loans held-for-sale   202       743       –  
               
    Loans receivable   8,201,134       8,274,810       8,297,957  
    Less: Allowance for credit losses – loans   82,403       82,685       82,869  
         Net loans receivable   8,118,731       8,192,125       8,215,088  
               
    Investment in restricted stock, at cost   37,031       40,449       48,931  
    Bank premises and equipment, net   27,624       28,447       29,827  
    Accrued interest receivable   46,740       45,498       49,731  
    Bank owned life insurance   244,651       243,672       239,308  
    Right of use operating lease assets   13,755       14,489       11,725  
    Goodwill   208,372       208,372       208,372  
    Core deposit intangibles   4,360       4,639       5,553  
    Other assets   109,521       111,739       128,992  
         Total assets $ 9,759,255     $ 9,879,600     $ 9,853,964  
               
    LIABILITIES          
    Deposits:          
         Noninterest-bearing $ 1,319,196     $ 1,422,044     $ 1,290,523  
         Interest-bearing   6,448,034       6,398,070       6,298,131  
              Total deposits   7,767,230       7,820,114       7,588,654  
    Borrowings   613,053       688,064       877,568  
    Subordinated debentures, net   80,071       79,944       79,566  
    Operating lease liabilities   14,737       15,498       12,843  
    Other liabilities   31,225       34,276       78,724  
         Total liabilities   8,506,316       8,637,896       8,637,355  
               
    COMMITMENTS AND CONTINGENCIES          
               
    STOCKHOLDERS’ EQUITY          
    Preferred stock   110,927       110,927       110,927  
    Common stock   586,946       586,946       586,946  
    Additional paid-in capital   36,007       36,347       32,866  
    Retained earnings   643,265       631,446       600,118  
    Treasury stock   (76,116 )     (76,116 )     (76,116 )
    Accumulated other comprehensive loss   (48,090 )     (47,846 )     (38,132 )
       Total stockholders’ equity   1,252,939       1,241,704       1,216,609  
       Total liabilities and stockholders’ equity $ 9,759,255     $ 9,879,600     $ 9,853,964  
               
    CONNECTONE BANCORP, INC. AND SUBSIDIARIES            
    CONSOLIDATED STATEMENTS OF INCOME            
    (dollars in thousands, except for per share data)            
                 
      Three Months Ended  
      03/31/25   12/31/24   03/31/24  
    Interest income            
         Interest and fees on loans $ 115,351   $ 118,346     $ 120,088  
         Interest and dividends on investment securities:            
             Taxable   4,987     4,804       4,334  
             Tax-exempt   1,097     1,109       1,154  
             Dividends   889     959       1,125  
         Interest on federal funds sold and other short-term investments   2,465     2,815       2,906  
              Total interest income   124,789     128,033       129,607  
    Interest expense            
         Deposits   53,992     58,568       60,407  
         Borrowings   5,041     4,754       8,900  
              Total interest expense   59,033     63,322       69,307  
                 
    Net interest income   65,756     64,711       60,300  
        Provision for credit losses   3,500     3,500       4,000  
    Net interest income after provision for credit losses   62,256     61,211       56,300  
                 
    Noninterest income            
         Deposit, loan and other income   2,006     1,798       1,592  
         Income on bank owned life insurance   1,584     1,656       1,664  
         Net gains on sale of loans held-for-sale   332     597       506  
         Net gains (losses) on equity securities   529     (307 )     86  
              Total noninterest income   4,451     3,744       3,848  
                 
    Noninterest expenses            
         Salaries and employee benefits   22,578     22,244       22,131  
         Occupancy and equipment   2,680     2,818       3,009  
         FDIC insurance   1,800     1,800       1,800  
         Professional and consulting   2,366     2,449       1,928  
         Marketing and advertising   595     495       677  
         Information technology and communications   4,604     4,523       4,389  
         Merger expenses   1,320     863       –  
         Branch closing expenses   –     477       –  
         Bank owned life insurance restructuring charge   327     –       –  
         Amortization of core deposit intangibles   279     296       321  
         Other expenses   2,756     2,533       2,810  
              Total noninterest expenses   39,305     38,498       37,065  
                 
    Income before income tax expense   27,402     26,457       23,083  
         Income tax expense   7,160     6,086       5,878  
    Net income   20,242     20,371       17,205  
         Preferred dividends   1,509     1,509       1,509  
    Net income available to common stockholders $ 18,733   $ 18,862     $ 15,696  
                 
    Earnings per common share:            
         Basic $ 0.49   $ 0.49     $ 0.41  
         Diluted   0.49     0.49       0.41  
                 
    ConnectOne’s management believes that the supplemental financial information, including non-GAAP measures provided below, is useful to investors. The non-GAAP measures should not be viewed as a substitute for financial results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP financial measures presented by other companies.
                       
    CONNECTONE BANCORP, INC.                  
    SUPPLEMENTAL GAAP AND NON-GAAP FINANCIAL MEASURES                  
                       
      As of
      Mar. 31,   Dec. 31,   Sept. 30,   Jun. 30,   Mar. 31,
        2025       2024       2024       2024       2024  
    Selected Financial Data (dollars in thousands)
    Total assets $ 9,759,255     $ 9,879,600     $ 9,639,603     $ 9,723,731     $ 9,853,964  
    Loans receivable:                  
      Commercial   1,483,392     $ 1,522,308     $ 1,505,743     $ 1,491,079     $ 1,561,063  
      Commercial real estate   3,356,943       3,384,319       3,261,160       3,274,941       3,333,488  
      Multifamily   2,490,256       2,506,782       2,482,258       2,499,581       2,507,893  
      Commercial construction   617,593       616,246       616,087       639,168       646,593  
      Residential   256,555       249,691       250,249       256,786       254,214  
      Consumer   1,604       1,136       835       945       850  
      Gross loans   8,206,343       8,280,482       8,116,332       8,162,500       8,304,101  
    Net deferred loan fees   (5,209 )     (5,672 )     (4,356 )     (4,597 )     (6,144 )
       Loans receivable   8,201,134       8,274,810       8,111,976       8,157,903       8,297,957  
       Loans held-for-sale   202       743       –       435       –  
    Total loans $ 8,201,336     $ 8,275,553     $ 8,111,976     $ 8,158,338     $ 8,297,957  
                       
    Investment and equity securities $ 655,665     $ 632,939     $ 667,112     $ 640,322     $ 638,854  
    Goodwill and other intangible assets   212,732       213,011       213,307       213,604       213,925  
    Deposits:                  
      Noninterest-bearing demand $ 1,319,196     $ 1,422,044     $ 1,262,568     $ 1,268,882     $ 1,290,523  
      Time deposits   2,550,223       2,557,200       2,614,187       2,593,165       2,623,391  
      Other interest-bearing deposits   3,897,811       3,840,870       3,647,350       3,713,967       3,674,740  
    Total deposits $ 7,767,230     $ 7,820,114     $ 7,524,105     $ 7,576,014     $ 7,588,654  
                       
    Borrowings $ 613,053     $ 688,064     $ 742,133     $ 756,144     $ 877,568  
    Subordinated debentures (net of debt issuance costs)   80,071       79,944       79,818       79,692       79,566  
    Total stockholders’ equity   1,252,939       1,241,704       1,239,496       1,224,227       1,216,609  
                       
    Quarterly Average Balances                  
    Total assets $ 9,748,605     $ 9,563,446     $ 9,742,853     $ 9,745,853     $ 9,860,753  
    Loans receivable:                  
      Commercial $ 1,488,962     $ 1,487,850     $ 1,485,777     $ 1,517,446     $ 1,552,360  
      Commercial real estate (including multifamily)   5,852,342       5,733,188       5,752,467       5,789,498       5,890,853  
      Commercial construction   610,859       631,022       628,740       652,227       637,993  
      Residential   256,430       250,589       252,975       254,284       252,965  
      Consumer   5,687       5,204       7,887       5,155       5,091  
      Gross loans   8,214,280       8,107,853       8,127,846       8,218,610       8,339,262  
    Net deferred loan fees   (5,525 )     (4,727 )     (4,513 )     (5,954 )     (6,533 )
       Loans receivable   8,208,755       8,103,126       8,123,333       8,212,656       8,332,729  
       Loans held-for-sale   259       498       83       169       99  
    Total loans $ 8,209,014     $ 8,103,624     $ 8,123,416     $ 8,212,825     $ 8,332,828  
                       
    Investment and equity securities $ 655,191     $ 653,988     $ 650,897     $ 637,551     $ 633,270  
    Goodwill and other intangible assets   212,915       213,205       213,502       213,813       214,133  
    Deposits:                  
      Noninterest-bearing demand $ 1,305,722     $ 1,304,699     $ 1,259,912     $ 1,256,251     $ 1,254,201  
      Time deposits   2,480,990       2,478,163       2,625,329       2,587,706       2,567,767  
      Other interest-bearing deposits   3,888,131       3,838,575       3,747,427       3,721,167       3,696,374  
    Total deposits $ 7,674,843     $ 7,621,437     $ 7,632,668     $ 7,565,124     $ 7,518,342  
                       
    Borrowings $ 686,391     $ 648,300     $ 717,586     $ 787,256     $ 947,003  
    Subordinated debentures (net of debt issuance costs)   79,988       79,862       79,735       79,609       79,483  
    Total stockholders’ equity   1,254,373       1,241,738       1,234,724       1,220,621       1,220,818  
                       
      Three Months Ended
      Mar. 31,   Dec. 31,   Sept. 30,   Jun. 30,   Mar. 31,
        2025       2024       2024       2024       2024  
      (dollars in thousands, except for per share data)
    Net interest income $ 65,756     $ 64,711     $ 60,887     $ 61,439     $ 60,300  
     Provision for credit losses   3,500       3,500       3,800       2,500       4,000  
    Net interest income after provision for credit losses   62,256       61,211       57,087       58,939       56,300  
    Noninterest income                  
     Deposit, loan and other income   2,006       1,798       1,817       1,654       1,592  
     Income on bank owned life insurance   1,584       1,656       2,145       1,677       1,664  
     Net gains on sale of loans held-for-sale   332       597       343       1,277       506  
     Net gains (losses) on equity securities   529       (307 )     432       (209 )     86  
           Total noninterest income   4,451       3,744       4,737       4,399       3,848  
    Noninterest expenses                  
     Salaries and employee benefits   22,578       22,244       22,957       22,721       22,131  
     Occupancy and equipment   2,680       2,818       2,889       2,899       3,009  
     FDIC insurance   1,800       1,800       1,800       1,800       1,800  
     Professional and consulting   2,366       2,449       2,147       1,923       1,928  
     Marketing and advertising   595       495       635       613       677  
     Information technology and communications   4,604       4,523       4,464       4,198       4,389  
     Merger expenses   1,320       863       742       –       –  
     Branch closing expenses   –       477       –       –       –  
     Bank owned life insurance restructuring charge   327       –       –       –       –  
     Amortization of core deposit intangible   279       296       297       321       321  
     Other expenses   2,756       2,533       2,710       3,119       2,810  
           Total noninterest expenses   39,305       38,498       38,641       37,594       37,065  
                       
    Income before income tax expense   27,402       26,457       23,183       25,744       23,083  
     Income tax expense   7,160       6,086       6,022       6,688       5,878  
    Net income   20,242       20,371       17,161       19,056       17,205  
     Preferred dividends   1,509       1,509       1,509       1,509       1,509  
    Net income available to common stockholders $ 18,733     $ 18,862     $ 15,652     $ 17,547     $ 15,696  
                       
    Weighted average diluted common shares outstanding   38,511,237       38,519,581       38,525,484       38,448,594       38,511,747  
    Diluted EPS $ 0.49     $ 0.49     $ 0.41     $ 0.46     $ 0.41  
                       
    Reconciliation of GAAP Net Income to Operating Net Income:                  
    Net income $ 20,242     $ 20,371     $ 17,161     $ 19,056     $ 17,205  
    Merger expenses   1,320       863       742       –       –  
    Branch closing expenses   –       477       –       –       –  
    Bank owned life insurance restructuring charge   327       –       –       –       –  
    Amortization of core deposit intangibles   279       296       297       321       321  
    Net (gains) losses on equity securities   (529 )     307       (432 )     209       (86 )
    Tax impact of adjustments   (420 )     (585 )     (171 )     (149 )     (66 )
    Operating net income $ 21,219     $ 21,729     $ 17,597     $ 19,437     $ 17,374  
     Preferred dividends   1,509       1,509       1,509       1,509       1,509  
    Operating net income available to common stockholders $ 19,710     $ 20,220     $ 16,088     $ 17,928     $ 15,865  
                       
    Operating diluted EPS (non-GAAP) (1) $ 0.51     $ 0.52     $ 0.42     $ 0.47     $ 0.41  
                       
    Return on Assets Measures                  
    Average assets $ 9,748,605     $ 9,653,446     $ 9,742,853     $ 9,745,853     $ 9,860,753  
    Return on avg. assets   0.84 %      0.84 %      0.70 %     0.79 %     0.70  
    Operating return on avg. assets (non-GAAP) (2)   0.88       0.90       0.72       0.80       0.71  
                       
    (1) Operating net income available to common stockholders divided by weighted average diluted shares outstanding.                
    (2) Operating net income divided by average assets.                  
                       
      Three Months Ended
      Mar. 31,   Dec. 31,   Sept. 30,   Jun. 30,   Mar. 31,
        2025       2024       2024       2024       2024  
    Return on Equity Measures (dollars in thousands)
    Average stockholders’ equity $ 1,254,373     $ 1,241,738     $ 1,234,724     $ 1,220,621     $ 1,220,818  
    Less: average preferred stock   (110,927 )     (110,927 )     (110,927 )     (110,927 )     (110,927 )
    Average common equity $ 1,143,446     $ 1,130,811     $ 1,123,797     $ 1,109,694     $ 1,109,891  
    Less: average intangible assets   (212,915 )     (213,205 )     (213,502 )     (213,813 )     (214,133 )
    Average tangible common equity $ 930,531     $ 917,606     $ 910,295     $ 895,881     $ 895,758  
    Return on avg. common equity (GAAP)   6.64   %   6.64   %   5.54   %   6.36   %   5.69  
    Operating return on avg. common equity (non-GAAP) (3)   6.99       7.11       5.70       6.50       5.75  
    Return on avg. tangible common equity (non-GAAP) (4)   8.25       8.27       6.93       7.98       7.15  
    Operating return on avg. tangible common equity (non-GAAP) (5)   8.59       8.77       7.03       8.05       7.12  
                       
    Efficiency Measures                  
    Total noninterest expenses $ 39,305     $ 38,498     $ 38,641     $ 37,594     $ 37,065  
    Merger expenses   (1,320 )     (863 )     (742 )     –       –  
    Branch closing expenses   –       (477 )     –       –       –  
    Bank owned life insurance restructuring charge   (327 )     –       –       –       –  
    Amortization of core deposit intangibles   (279 )     (296 )     (297 )     (321 )     (321 )
    Operating noninterest expense $ 37,379     $ 36,862     $ 37,602     $ 37,273     $ 36,744  
                       
    Net interest income (tax equivalent basis) $ 66,580     $ 65,593     $ 61,710     $ 62,255     $ 61,111  
    Noninterest income   4,451       3,744       4,737       4,399       3,848  
    Net (gains) losses on equity securities   (529 )     307       (432 )     209       (86 )
    Operating revenue $ 70,502     $ 69,644     $ 66,015     $ 66,863     $ 64,873  
                       
    Operating efficiency ratio (non-GAAP) (6)   53.0 %      52.9 %     57.0 %     55.7 %      56.6  
                       
    Net Interest Margin                  
    Average interest-earning assets $ 9,224,712     $ 9,117,201     $ 9,206,038     $ 9,210,050     $ 9,323,291  
    Net interest income (tax equivalent basis)   66,580       65,593       61,710       62,255       61,111  
    Net interest margin (GAAP)   2.93 %      2.86 %      2.67 %     2.72 %      2.64  
                       
    (3) Operating net income available to common stockholders divided by average common equity.                  
    (4) Net income available to common stockholders, excluding amortization of intangible assets, divided by average tangible common equity.          
    (5) Operating net income available to common stockholders, divided by average tangible common equity.                
    (6) Operating noninterest expense divided by operating revenue.                  
                       
      As of
      Mar. 31,   Dec. 31,   Sept. 30,   Jun. 30,   Mar. 31,
        2025       2024       2024       2024       2024  
    Capital Ratios and Book Value per Share (dollars in thousands, except for per share data)
    Stockholders equity $ 1,252,939     $ 1,241,704     $ 1,239,496     $ 1,224,227     $ 1,216,609  
    Less: preferred stock   (110,927 )     (110,927 )     (110,927 )     (110,927 )     (110,927 )
    Common equity $ 1,142,012     $ 1,130,777     $ 1,128,569     $ 1,113,300     $ 1,105,682  
    Less: intangible assets   (212,732 )     (213,011 )     (213,307 )     (213,604 )     (213,925 )
    Tangible common equity $ 929,280     $ 917,766     $ 915,262     $ 899,696     $ 891,757  
                       
    Total assets $ 9,759,255     $ 9,879,600     $ 9,639,603     $ 9,723,731     $ 9,853,964  
    Less: intangible assets   (212,732 )     (213,011 )     (213,307 )     (213,604 )     (213,925 )
    Tangible assets $ 9,546,523     $ 9,666,589     $ 9,426,296     $ 9,510,127     $ 9,640,039  
                       
    Common shares outstanding   38,469,975       38,370,317       38,368,217       38,365,069       38,333,053  
                       
    Common equity ratio (GAAP)   11.70 %      11.45 %      11.71 %      11.45 %      11.22  
    Tangible common equity ratio (non-GAAP) (7)   9.73       9.49       9.71       9.46       9.25  
                       
    Regulatory capital ratios (Bancorp):                  
      Leverage ratio   11.33 %      11.33 %      11.10 %      10.97 %      10.73  
      Common equity Tier 1 risk-based ratio   11.14       10.97       11.07       10.90       10.70  
      Risk-based Tier 1 capital ratio   12.46       12.29       12.42       12.25       12.03  
      Risk-based total capital ratio   14.29       14.11       14.29       14.10       13.88  
                       
    Regulatory capital ratios (Bank):                  
      Leverage ratio   11.67 %      11.66 %      11.43 %      11.29 %      11.10  
      Common equity Tier 1 risk-based ratio   12.82       12.63       12.79       12.60       12.43  
      Risk-based Tier 1 capital ratio   12.82       12.63       12.79       12.60       12.43  
      Risk-based total capital ratio   13.79       13.60       13.77       13.58       13.41  
                       
    Book value per share (GAAP) $ 29.69     $ 29.47     $ 29.41     $ 29.02     $ 28.84  
    Tangible book value per share (non-GAAP) (8)   24.16       23.92       23.85       23.45       23.26  
                       
    Net Loan Charge-offs (Recoveries):                  
    Net loan charge-offs (recoveries):                  
      Charge-offs $ 3,555     $ 3,363     $ 3,559     $ 3,595     $ 3,185  
      Recoveries   (155 )     (29 )     (53 )     (324 )     (23 )
       Net loan charge-offs $ 3,400     $ 3,334     $ 3,506     $ 3,271     $ 3,162  
       Net loan charge-offs as a % of average loans receivable (annualized)   0.17 %      0.16 %      0.17 %      0.16 %      0.15  
                       
    Asset Quality                  
    Nonaccrual loans $ 49,860     $ 57,310     $ 51,300     $ 46,026     $ 47,438  
    Other real estate owned   –       –       –       –       –  
    Nonperforming assets $ 49,860     $ 57,310     $ 51,300     $ 46,026     $ 47,438  
                       
    Allowance for credit losses – loans (“ACL”) $ 82,403     $ 82,685     $ 82,494     $ 82,077     $ 82,869  
    Loans receivable   8,201,134       8,274,810       8,111,976       8,157,903       8,297,957  
                       
    Nonaccrual loans as a % of loans receivable   0.61   %   0.69   %   0.63   %   0.56 %     0.57  
    Nonperforming assets as a % of total assets   0.51       0.58       0.53       0.47       0.48  
    ACL as a % of loans receivable   1.00       1.00       1.02       1.01       1.00  
    ACL as a % of nonaccrual loans   165.3       144.3       160.8       178.3       174.7  
                       
    (7) Tangible common equity divided by tangible assets                  
    (8) Tangible common equity divided by common shares outstanding at period-end                  
                       
    CONNECTONE BANCORP, INC.                            
    NET INTEREST MARGIN ANALYSIS                            
    (dollars in thousands)                              
                                       
            For the Quarter Ended  
            March 31, 2025 December 31, 2024 March 31, 2024
            Average         Average         Average      
    Interest-earning assets:   Balance Interest Rate (7)     Balance Interest Rate (7)     Balance Interest Rate (7)  
    Investment securities (1) (2)   $ 745,873   $ 6,375   3.47 %   $ 736,131   $ 6,207   3.35 %   $ 720,303   $ 5,794   3.24 %
    Loans receivable and loans held-for-sale (2) (3) (4)   8,209,014     115,883   5.73       8,103,624     118,934   5.84       8,332,828     120,592   5.82  
    Federal funds sold and interest-                              
      bearing deposits with banks     229,491     2,466   4.36       238,957     2,815   4.69       218,212     2,906   5.36  
    Restricted investment in bank stock   40,334     889   8.94       38,489     959   9.91       51,948     1,126   8.72  
         Total interest-earning assets   9,224,712     125,613   5.52       9,117,201     128,915   5.63       9,323,291     130,418   5.63  
    Allowance for loan losses     (84,027 )           (83,938 )           (84,005 )      
    Noninterest-earning assets     607,920             620,183             621,467        
         Total assets     $ 9,748,605           $ 9,653,446           $ 9,860,753        
                                       
    Interest-bearing liabilities:                              
     Money market deposits     1,572,287     11,287   2.91       1,642,737     12,694   3.07       1,571,640     13,191   3.38  
     Savings deposits       656,789     5,227   3.23       559,450     4,710   3.35       441,551     3,385   3.08  
     Time deposits       2,480,990     25,154   4.11       2,478,163     27,374   4.39       2,567,767     28,038   4.39  
     Other interest-bearing deposits     1,659,055     12,324   3.01       1,636,388     13,790   3.35       1,683,183     15,793   3.77  
         Total interest-bearing deposits   6,369,121     53,992   3.44       6,316,738     58,568   3.69       6,264,141     60,407   3.88  
                                       
    Borrowings       686,391     3,725   2.20       648,300     3,430   2.10       947,003     7,567   3.21  
    Subordinated debentures     79,988     1,298   6.58       79,862     1,305   6.50       79,483     1,311   6.63  
    Finance lease       1,210     18   6.03       1,280     19   5.91       1,483     22   5.97  
         Total interest-bearing liabilities   7,136,710     59,033   3.35       7,046,180     63,322   3.58       7,292,110     69,307   3.82  
                                       
    Noninterest-bearing demand deposits   1,305,722             1,304,699             1,254,201        
    Other liabilities       51,800             60,829             93,624        
         Total noninterest-bearing liabilities   1,357,522             1,365,528             1,347,825        
    Stockholders’ equity       1,254,373             1,241,738             1,220,818        
         Total liabilities and stockholders’ equity $ 9,748,605           $ 9,653,446           $ 9,860,753        
                                       
    Net interest income (tax equivalent basis)     66,580             65,593             61,111      
    Net interest spread (5)       2.17 %       2.05 %       1.80 %
                                       
    Net interest margin (6)       2.93 %       2.86 %       2.64 %
                                       
    Tax equivalent adjustment       (824 )           (882 )           (811 )    
    Net interest income       $ 65,756           $ 64,711           $ 60,300      
                                       
    (1) Average balances are calculated on amortized cost.                            
    (2) Interest income is presented on a tax equivalent basis using 21% federal tax rate.                        
    (3) Includes loan fee income.                              
    (4) Loans include nonaccrual loans.                            
    (5) Represents difference between the average yield on interest-earning assets and the average cost of interest-bearing                
          liabilities and is presented on a tax equivalent basis.                            
    (6) Represents net interest income on a tax equivalent basis divided by average total interest-earning                       
         assets.                              
    (7) Rates are annualized.                              
                                       

    The MIL Network –

  • MIL-OSI: First Northwest Bancorp Reports First Quarter 2025 Improved Profitability

    Source: GlobeNewswire (MIL-OSI)

    PORT ANGELES, Wash., April 24, 2025 (GLOBE NEWSWIRE) — First Northwest Bancorp (Nasdaq: FNWB) (“First Northwest” or the “Company”) today reported net income of $1.5 million for the first quarter of 2025, compared to a net loss of $2.8 million for the fourth quarter of 2024 and net income of $396,000 for the first quarter of 2024. Basic and diluted income per share were $0.17 for the first quarter of 2025, compared to basic and diluted loss per share of $0.32 for the fourth quarter of 2024 and basic and diluted income per share of $0.04 for the first quarter of 2024.

    In the first quarter of 2025, the Company recorded adjusted pre-tax, pre-provision net revenue (“PPNR”)(1) of $1.5 million, compared to $1.4 million for the preceding quarter and $1.2 million for the first quarter of 2024.

    The Board of Directors of First Northwest declared a quarterly cash dividend of $0.07 per common share, payable on May 23, 2025, to shareholders of record as of the close of business on May 9, 2025.

    Quote from First Northwest President and CEO, Matthew P. Deines:
    “We were pleased to see improved profitability in the first quarter of 2025, which helped grow capital levels and tangible book value. We saw improvement on our asset quality metrics, with nonperforming loans 14% lower than the prior quarter, and remain focused on continued asset quality improvement over the balance of 2025. Core commercial and consumer customer growth was positive during the first quarter, with lower net loans and deposits largely the result of a decrease in funding to one large wholesale relationship and reduced brokered deposit balances. We expect better core growth and asset quality trends, combined with ongoing expense discipline and modest margin improvement, will continue to improve profitability and capital in future quarters. With improved profitability, we are evaluating the potential for future stock buybacks.”

    Key Points for First Quarter and Going Forward

    Positive Balance Sheet Trends:

    • A favorable deposit mix shift included a $45.0 million decrease in brokered deposits while core customer deposits grew $23.0 million. The loan-to-deposit ratio was stable at 99.9% compared to 99.3% in the fourth quarter of 2024.
    • The Company reduced borrowings by $28.9 million. The total cost of funds decreased to 2.67% compared to 2.80% in the fourth quarter of 2024.

    Update on provision for credit losses:

    • The Company recorded a $1.6 million provision for credit losses on loans in the first quarter of 2025, primarily due to $1.4 million of charge-offs related to three commercial business loans, one commercial construction loan and a small number of consumer loans. This compares to loan credit loss provisions of $3.8 million for the preceding quarter and $1.2 million for the first quarter of 2024.
    • We believe the reserve on individually analyzed loans does not represent a universal decline in the collectability of all loans in the portfolio. We continue to work on resolution plans for all troubled borrowers and expect further improvement in nonperforming loans over the course of 2025.

    Other significant events:

    • First Fed Bank’s (“First Fed” or the “Bank”) balance sheet restructuring continued with the remaining bank-owned life insurance policy (“BOLI”) surrender transaction recorded in the first quarter of 2025, with $266,000 of tax and penalties recorded in the provision for income tax. The surrendered policy value was reinvested in the second quarter of 2025. We expect to receive the return of the surrendered funds early in the third quarter of 2025.
    • We sadly lost a former Bank employee in the first quarter of 2025, resulting in a $1.1 million BOLI death benefit gain.
    • The Company recorded a $846,000 gain on extinguishment of debt related to repurchasing $5.0 million of subordinated debt at a discount during the first quarter of 2025. In addition to the current quarter gain, the future cost related to interest expense on the subordinated debt will be reduced.
    • The Company also recognized a $315,000 gain on the conversion of a commercial business loan receivable into a Series A equity investment during the first quarter of 2025.

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

    Selected Quarterly Financial Ratios:

        As of or For the Quarter Ended  
        March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		     March 31,
    2024    		  
    Performance ratios: (1)                                        
    Return on average assets     0.28 %     -0.51 %     -0.36 %     -0.40 %     0.07 %
    Adjusted PPNR return on average assets (2)     0.27       0.26       0.17       0.10       0.22  
    Return on average equity     3.92       -6.92       -4.91       -5.47       0.98  
    Net interest margin (3)     2.76       2.73       2.70       2.76       2.76  
    Efficiency ratio (4)     79.4       92.2       100.3       72.3       88.8  
    Equity to total assets     7.22       6.89       7.13       7.17       7.17  
    Book value per common share   $ 16.63     $ 16.45     $ 17.17     $ 16.81     $ 17.00  
    Tangible performance ratios: (1)                                        
    Tangible common equity to tangible assets (2)     7.15 %     6.83 %     7.06 %     7.10 %     7.10 %
    Return on average tangible common equity (2)     3.96       -6.99       -4.96       -5.53       0.99  
    Tangible book value per common share (2)   $ 16.48     $ 16.29     $ 17.00     $ 16.64     $ 16.83  
    Capital ratios (First Fed): (5)                                        
    Tier 1 leverage     9.5 %     9.4 %     9.4 %     9.4 %     9.7 %
    Common equity Tier 1 capital     12.7       12.4       12.2       12.4       12.6  
    Total risk-based     13.9       13.6       13.4       13.5       13.6  
    (1 ) Performance ratios are annualized, where appropriate.
    (2 ) See reconciliation of Non-GAAP Financial Measures later in this release.
    (3 ) Net interest income divided by average interest-earning assets.
    (4 ) Total noninterest expense as a percentage of net interest income and total other noninterest income.
    (5 ) Current period capital ratios are preliminary and subject to finalization of the FDIC Call Report.


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

    Adjusted PPNR for the first quarter of 2025 increased $40,000 to $1.5 million, compared to $1.4 million for the preceding quarter, and increased $308,000 from $1.2 million in the first quarter one year ago.

        For the Quarter Ended  
    (Dollars in thousands)   March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		     March 31,
    2024    		  
    Net interest income   $ 13,847     $ 14,137     $ 14,020     $ 14,235     $ 13,928  
    Total noninterest income     4,092       1,300       1,779       7,347       2,188  
    Total revenue     17,939       15,437       15,799       21,582       16,116  
    Total noninterest expense     14,249       14,233       15,848       15,609       14,303  
    PPNR (1)     3,690       1,204       (49 )     5,973       1,813  
    Less selected nonrecurring adjustments to PPNR:                                        
    BOLI death benefit     1,059       1,536       —       —       —  
    Gain on extinguishment of subordinated debt included in other income     846       —       —       —       —  
    Gain on conversion of loan receivable into Series A equity investment     315       —       —       —       —  
    Equity investment repricing adjustment     —       (1,762 )     —       —       651  
    One-time compensation payouts related to reduction in force     —       —       (996 )     —       —  
    Net gain on sale of premises and equipment     —       —       —       7,919       —  
    Sale leaseback taxes and assessments included in occupancy and equipment     —       —       —       (359 )     —  
    Net gain on sale of investment securities     —       —       —       (2,117 )     —  
    Adjusted PPNR (1)   $ 1,470     $ 1,430     $ 947     $ 530     $ 1,162  

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

    • Total interest income decreased $1.4 million to $26.8 million for the first quarter of 2025, compared to $28.2 million for the previous quarter, and decreased $503,000 compared to $27.3 million in the first quarter of 2024. Interest income decreased in the first quarter of 2025 primarily due to a decrease in the income earned on loans receivable and reduced interest income received on Company deposit accounts as both yields earned and average volumes decreased. Average loan balances and related interest income were impacted by a significant decrease in the Northpointe Bank Mortgage Purchase Program (“Northpointe Bank MPP”) of $24.7 million and $461,000, respectively. Variable-rate yields on loans and investments were impacted by the cumulative 100 basis points Federal Reserve rate cuts which occurred between September and December 2024.
    • Total interest expense decreased $1.1 million to $13.0 million for the first quarter of 2025, compared to $14.1 million for the previous quarter, and decreased $422,000 compared to $13.4 million in the first quarter of 2024. Interest expense decreased in the first quarter of 2025 primarily due to decreases in interest paid on brokered certificates of deposit (“CDs”), money market accounts and customer CDs.
    • The net interest margin increased to 2.76% for the first quarter of 2025, from 2.73% for the prior quarter, and was flat compared to the first quarter of 2024. The Company reported reduced rates and declining volumes of CDs and money market accounts during the first quarter of 2025 which lowered costs; however, these savings were partially offset by a decrease in interest earned on loans and an increase in cost due to higher average borrowings.
    • Noninterest income included a $1.1 million BOLI death benefit payment received due to the passing of a former employee, a $846,000 gain on extinguishment of debt and a $315,000 gain on the conversion of a loan receivable into an equity investment during the current quarter.
    • Noninterest expense was relatively unchanged at $14.3 million for the first quarter of 2025, compared to the previous quarter and the first quarter of 2024.

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

    The allowance for credit losses on loans (“ACLL”) increased $176,000 to $20.6 million at March 31, 2025, from $20.5 million at December 31, 2024. The ACLL as a percentage of total loans was 1.24% at March 31, 2025, an increase from 1.21% at December 31, 2024, and an increase from 1.05% one year earlier. The small increase to the pooled loan reserve combined with charge-offs totaling $1.4 million resulted in a provision expense of $1.6 million for the quarter ended March 31, 2025.

    Nonperforming loans totaled $26.4 million at March 31, 2025, a decrease of $4.1 million, or 13.5%, from December 31, 2024. ACLL to nonperforming loans increased to 78% at March 31, 2025, from 67% at December 31, 2024, and decreased from 92% at March 31, 2024. This ratio increased during the first quarter as principal payments and charge-offs decreased balances on loans that were already adequately reserved.

    Classified loans decreased $4.7 million to $37.9 million at March 31, 2025, from $42.5 million at December 31, 2024, primarily due to $3.9 million in principal payments received on two commercial construction loans and charge-offs totaling $825,000 on two commercial business loans and one commercial construction loan during the first quarter. An $8.1 million construction loan relationship, which became a classified loan in the fourth quarter of 2022; a $7.2 million commercial construction loan relationship, which became classified in the second quarter of 2024; and a $6.2 million commercial loan relationship, which became classified in the fourth quarter of 2023, account for 57% of the classified loan balance at March 31, 2025. The Bank has exercised legal remedies, including the appointment of a third-party receiver and foreclosure actions, to liquidate the underlying collateral to satisfy the real estate loans in two of these three collateral-dependent relationships. The Bank is also closely monitoring a group of commercial business loans that have similar collateral, with 16 loans totaling $1.7 million included in classified loans at March 31, 2025, and an additional seven loans totaling $2.4 million included in the special mention risk grading category.

        For the Quarter Ended  
    ACLL ($ in thousands)   March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		     March 31,
    2024    		  
    Balance at beginning of period   $ 20,449     $ 21,970     $ 19,343     $ 17,958     $ 17,510  
    Charge-offs:                                        
    Construction and land     (374 )     (411 )     —       (3,978 )     —  
    Auto and other consumer     (243 )     (364 )     (492 )     (832 )     (806 )
    Commercial business     (811 )     (4,596 )     (24 )     (2,643 )     (33 )
    Total charge-offs     (1,428 )     (5,371 )     (516 )     (7,453 )     (839 )
    Recoveries:                                        
    One-to-four family     —       —       42       —       2  
    Commercial real estate     6       2       —       —       —  
    Auto and other consumer     43       52       24       198       46  
    Commercial business     2       36       —       —       —  
    Total recoveries     51       90       66       198       48  
    Net loan charge-offs     (1,377 )     (5,281 )     (450 )     (7,255 )     (791 )
    Provision for credit losses     1,553       3,760       3,077       8,640       1,239  
    Balance at end of period   $ 20,625     $ 20,449     $ 21,970     $ 19,343     $ 17,958  
                                             
    Average total loans     1,662,164       1,708,232       1,718,402       1,717,830       1,678,656  
    Annualized net charge-offs to average outstanding loans     0.34 %     1.23 %     0.10 %     1.70 %     0.19 %
    Asset Quality ($ in thousands)   March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		     March 31,
    2024    		  
    Nonaccrual loans:                                        
    One-to-four family   $ 1,404     $ 1,477     $ 1,631     $ 1,750     $ 1,237  
    Multi-family     —       —       —       708       708  
    Commercial real estate     5,574       5,598       5,634       14       22  
    Construction and land     15,280       19,544       19,382       19,292       14,440  
    Home equity     54       55       116       118       121  
    Auto and other consumer     710       700       894       746       1,012  
    Commercial business     3,365       3,141       2,719       1,003       1,941  
    Total nonaccrual loans     26,387       30,515       30,376       23,631       19,481  
    Other real estate owned     —       —       —       —       —  
    Total nonperforming assets   $ 26,387     $ 30,515     $ 30,376     $ 23,631     $ 19,481  
                                             
    Nonaccrual loans as a % of total loans (1)     1.59 %     1.80 %     1.75 %     1.39 %     1.14 %
    Nonperforming assets as a % of total assets (2)     1.21       1.37       1.35       1.07       0.87  
    ACLL as a % of total loans     1.24       1.21       1.27       1.14       1.05  
    ACLL as a % of nonaccrual loans     78.16       67.01       72.33       81.85       92.18  
    Total past due loans to total loans     1.74       1.98       1.92       1.45       1.91  
    (1 ) Nonperforming loans consists of nonaccruing loans and accruing loans more than 90 days past due.
    (2 ) Nonperforming assets consists of nonperforming loans (which include nonaccruing loans and accruing loans more than 90 days past due), real estate owned and repossessed assets.


    Financial Condition and Capital

    Investment securities decreased $24.9 million, or 7.3%, to $315.4 million at March 31, 2025, compared to $340.3 million three months earlier, and decreased $10.5 million compared to $326.0 million at March 31, 2024. The market value of the portfolio increased $3.1 million during the first quarter of 2025. The estimated average life of the securities portfolio was approximately 6.9 years at March 31, 2025, 6.9 years at the prior quarter end and 7.8 years at the end of the first quarter of 2024. The effective duration of the portfolio was approximately 4.3 years at March 31, 2025, compared to 3.9 years at the prior quarter end and 4.4 years at the end of the first quarter of 2024. The MBS non-agency portfolio decreased $20.2 million due to early redemptions and maturities and $2.4 million from regular repayment activity during the most recent quarter.
     

    Investment Securities ($ in thousands)     March 31,
    2025    		       December 31,
    2024    		       March 31,
    2024    		       Three Month
    % Change    		       One Year
    % Change    		  
    Available for Sale at Fair Value                                        
    Municipal bonds   $ 78,295     $ 77,876     $ 87,004       0.5 %     -10.0 %
    U.S. government agency issued asset-backed securities (ABS agency)     12,643       12,876       14,822       -1.8       -14.7  
    Corporate issued asset-backed securities (ABS corporate)     15,671       16,122       13,929       -2.8       12.5  
    Corporate issued debt securities (Corporate debt)     55,067       54,491       53,031       1.1       3.8  
    U.S. Small Business Administration securities (SBA)     8,061       8,666       7,911       -7.0       1.9  
    Mortgage-backed securities:                                        
    U.S. government agency issued mortgage-backed securities (MBS agency)     96,642       98,697       83,271       -2.1       16.1  
    Non-agency issued mortgage-backed securities (MBS non-agency)     49,054       71,616       65,987       -31.5       -25.7  
    Total securities available for sale   $ 315,433     $ 340,344     $ 325,955       -7.3       -3.2  

    Net loans, excluding loans held for sale, decreased $31.4 million, or 1.9%, to $1.64 billion at March 31, 2025, from $1.68 billion at December 31, 2024, and decreased $49.0 million, or 2.9%, from $1.69 billion one year prior. Construction loans that converted into fully amortizing loans during the quarter totaled $13.3 million. Loan payoffs of $71.0 million, regular payments of $29.4 million and charge-offs totaling $1.4 million outpaced new loan funding totaling $45.3 million and draws on existing loans totaling $23.3 million. The large decrease in commercial business loans was due to the change in funding needs of the Northpointe Bank MPP, which dropped $36.2 million compared to the prior quarter.

    Loans ($ in thousands)     March 31,
    2025    		       December 31,
    2024    		       March 31,
    2024    		       Three Month
    % Change    		       One Year
    % Change    		  
    Real Estate:                                        
    One-to-four family   $ 394,428     $ 395,315     $ 383,905       -0.2 %     2.7 %
    Multi-family     338,147       332,596       339,538       1.7       -0.4  
    Commercial real estate     392,882       390,379       385,130       0.6       2.0  
    Construction and land     64,877       78,110       125,347       -16.9       -48.2  
    Total real estate loans     1,190,334       1,196,400       1,233,920       -0.5       -3.5  
    Consumer:                                        
    Home equity     79,151       79,054       72,391       0.1       9.3  
    Auto and other consumer     273,878       268,876       268,834       1.9       1.9  
    Total consumer loans     353,029       347,930       341,225       1.5       3.5  
    Commercial business     120,486       151,493       136,297       -20.5       -11.6  
    Total loans receivable     1,663,849       1,695,823       1,711,442       -1.9       -2.8  
    Less:                                        
    Derivative basis adjustment     (566 )     188       710       -401.1       -179.7  
    Allowance for credit losses on loans     20,625       20,449       17,958       0.9       14.9  
    Total loans receivable, net   $ 1,643,790     $ 1,675,186     $ 1,692,774       -1.9       -2.9  

    Total deposits decreased $22.0 million to $1.67 billion at March 31, 2025, compared to $1.69 billion at December 31, 2024, and was relatively unchanged compared to one year prior. During the first quarter of 2025, total customer deposit balances increased $23.0 million and brokered deposit balances decreased $45.0 million. Overall, the current rate environment continues to contribute to greater competition for deposits leading to higher rates paid on interest-bearing demand deposits and savings accounts during the current quarter. The deposit mix compared to March 31, 2024, also reflects a shift to higher demand and money market account balances with increased rates paid on those accounts while rates paid on certificate and savings accounts decreased.

    Deposits ($ in thousands)     March 31,
    2025    		       December 31,
    2024    		       March 31,
    2024    		       Three Month
    % Change    		       One Year
    % Change    		  
    Noninterest-bearing demand deposits   $ 247,890     $ 256,416     $ 252,761       -3.3 %     -1.9 %
    Interest-bearing demand deposits     169,912       164,891       170,729       3.0       -0.5  
    Money market accounts     424,469       413,822       395,480       2.6       7.3  
    Savings accounts     235,188       205,055       236,550       14.7       -0.6  
    Certificates of deposit, customer     450,663       464,928       418,904       -3.1       7.6  
    Certificates of deposit, brokered     137,946       182,914       192,200       -24.6       -28.2  
    Total deposits   $ 1,666,068     $ 1,688,026     $ 1,666,624       -1.3       0.0  

    Total shareholders’ equity increased to $157.0 million at March 31, 2025, compared to $153.9 million three months earlier, due to an increase in the after-tax fair market values of the available-for-sale investment securities portfolio of $2.4 million and net income of $1.5 million, partially offset by dividends declared of $656,000 and a decrease in the after-tax fair market values of derivatives of $425,000.

    Capital levels for both the Company and the Bank remain in excess of applicable regulatory requirements and the Bank was categorized as “well-capitalized” at March 31, 2025. Preliminary calculations of Common Equity Tier 1 and Total Risk-Based Capital Ratios at March 31, 2025, were 12.7% and 13.9%, respectively.

    First Northwest continued to return capital to our shareholders through cash dividends during the first quarter of 2025. The Company paid cash dividends totaling $649,000 in the first quarter of 2025. No shares of common stock were repurchased under the Company’s April 2024 Stock Repurchase Plan (the “Repurchase Plan”) during the quarter ended March 31, 2025. There are 846,123 shares that remain available for repurchase under the Repurchase Plan.

    We recommend reading this earnings release in conjunction with the First Quarter 2025 Investor Presentation, located at http://investor.ourfirstfed.com/quarterly-reports and included as an exhibit to our April 24, 2025, Current Report on Form 8-K.

    About the Company
    First Northwest Bancorp (Nasdaq: FNWB) is a financial holding company engaged in investment activities including the business of its subsidiary, First Fed Bank. First Fed is a Pacific Northwest-based financial institution which has served its customers and communities since 1923. Currently First Fed has 18 locations in Washington state including 12 full-service branches. First Fed’s business and operating strategy is focused on building sustainable earnings by delivering a full array of financial products and services for individuals, small businesses, non-profit organizations and commercial customers. In 2022, First Northwest made an investment in The Meriwether Group, LLC, a boutique investment banking and accelerator firm. Additionally, First Northwest focuses on strategic partnerships to provide modern financial services such as digital payments and marketplace lending. First Northwest Bancorp was incorporated in 2012 and completed its initial public offering in 2015 under the ticker symbol FNWB. The Company is headquartered in Port Angeles, Washington.

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

    Any of the forward-looking statements that we make in this press release and in the other public statements we make may turn out to be incorrect because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Because of these and other uncertainties, our actual future results may be materially different from those expressed or implied in any forward-looking statements made by or on our behalf and the Company’s operating and stock price performance may be negatively affected. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for 2025 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect the Company’s operations and stock price performance.

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

    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands, except share data) (Unaudited)
     
        March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		     March 31,
    2024    		  
    ASSETS                                        
    Cash and due from banks   $ 18,911     $ 16,811     $ 17,953     $ 19,184     $ 15,562  
    Interest-earning deposits in banks     51,412       55,637       64,769       63,995       61,784  
    Investment securities available for sale, at fair value     315,433       340,344       310,860       306,714       325,955  
    Loans held for sale     2,940       472       378       1,086       988  
    Loans receivable (net of allowance for credit losses
         on loans $20,625, $20,449, $21,970, $19,343,
         and $17,958)    		     1,643,790       1,675,186       1,714,416       1,677,764       1,692,774  
    Federal Home Loan Bank (FHLB) stock, at cost     13,106       14,435       14,435       13,086       15,876  
    Accrued interest receivable     8,319       8,159       8,939       9,466       8,909  
    Premises held for sale, net     —       —       —       —       6,751  
    Premises and equipment, net     9,870       10,129       10,436       10,714       11,028  
    Servicing rights on sold loans, at fair value     3,301       3,281       3,584       3,740       3,820  
    Bank-owned life insurance, net     31,786       41,150       41,429       41,113       34,681  
    Equity and partnership investments     15,026       13,229       14,912       15,085       15,121  
    Goodwill and other intangible assets, net     1,082       1,082       1,083       1,084       1,085  
    Deferred tax asset, net     13,179       13,738       10,802       12,216       12,704  
    Right-of-use (“ROU”) asset, net     16,687       17,001       17,315       17,627       5,841  
    Prepaid expenses and other assets     31,588       21,352       24,175       23,088       27,141  
    Total assets   $ 2,176,430     $ 2,232,006     $ 2,255,486     $ 2,215,962     $ 2,240,020  
                                             
    LIABILITIES AND SHAREHOLDERS’ EQUITY                                        
    Deposits   $ 1,666,068     $ 1,688,026     $ 1,711,641     $ 1,708,288     $ 1,666,624  
    Borrowings     307,091       336,014       334,994       302,575       371,455  
    Accrued interest payable     2,163       3,295       2,153       3,143       2,830  
    Lease liability, net     17,266       17,535       17,799       18,054       6,227  
    Accrued expenses and other liabilities     24,217       31,770       25,625       23,717       29,980  
    Advances from borrowers for taxes and insurance     2,583       1,484       2,485       1,304       2,398  
    Total liabilities     2,019,388       2,078,124       2,094,697       2,057,081       2,079,514  
                                             
    Shareholders’ Equity                                        
    Preferred stock, $0.01 par value, authorized
         5,000,000 shares, no shares issued or outstanding    		     —       —       —       —       —  
    Common stock, $0.01 par value, 75,000,000
         shares authorized; issued and outstanding at
         each period end: 9,440,618; 9,353,348;
         9,365,979; 9,453,247; and 9,442,796    		     94       93       94       94       94  
    Additional paid-in capital     93,450       93,357       93,218       93,985       93,763  
    Retained earnings     98,056       97,198       100,660       103,322       106,202  
    Accumulated other comprehensive loss, net of tax     (28,129 )     (30,172 )     (26,424 )     (31,597 )     (32,465 )
    Unearned employee stock ownership plan (ESOP) shares     (6,429 )     (6,594 )     (6,759 )     (6,923 )     (7,088 )
    Total shareholders’ equity     157,042       153,882       160,789       158,881       160,506  
    Total liabilities and shareholders’ equity   $ 2,176,430     $ 2,232,006     $ 2,255,486     $ 2,215,962     $ 2,240,020  
    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Dollars in thousands, except per share data) (Unaudited)
     
        For the Quarter Ended  
        March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		     March 31,
    2024    		  
    INTEREST INCOME                                        
    Interest and fees on loans receivable   $ 22,231     $ 23,716     $ 23,536     $ 23,733     $ 22,767  
    Interest on investment securities     3,803       3,658       3,786       3,949       3,632  
    Interest on deposits in banks     482       550       582       571       645  
    FHLB dividends     307       273       302       358       282  
    Total interest income     26,823       28,197       28,206       28,611       27,326  
    INTEREST EXPENSE                                        
    Deposits     9,737       11,175       10,960       10,180       10,112  
    Borrowings     3,239       2,885       3,226       4,196       3,286  
    Total interest expense     12,976       14,060       14,186       14,376       13,398  
       Net interest income     13,847       14,137       14,020       14,235       13,928  
    PROVISION FOR CREDIT LOSSES                                        
    Provision for credit losses on loans     1,553       3,760       3,077       8,640       1,239  
    Provision for (recapture of) credit losses on unfunded commitments     15       (105 )     57       99       (269 )
    Provision for credit losses     1,568       3,655       3,134       8,739       970  
        Net interest income after provision for credit losses     12,279       10,482       10,886       5,496       12,958  
    NONINTEREST INCOME                                        
    Loan and deposit service fees     1,106       1,054       1,059       1,076       1,102  
    Sold loan servicing fees and servicing rights mark-to-market     195       (115 )     10       74       219  
    Net gain on sale of loans     11       52       58       150       52  
    Net gain on sale of investment securities     —       —       —       (2,117 )     —  
    Net gain on sale of premises and equipment     —       —       —       7,919       —  
    Increase in cash surrender value of bank-owned life insurance     372       328       315       293       243  
    Income from death benefit on bank-owned life insurance, net     1,059       1,536       —       —       —  
    Other income (loss)     1,349       (1,555 )     337       (48 )     572  
    Total noninterest income     4,092       1,300       1,779       7,347       2,188  
    NONINTEREST EXPENSE                                        
    Compensation and benefits     7,715       7,367       8,582       8,588       8,128  
    Data processing     2,011       2,065       2,085       2,008       1,944  
    Occupancy and equipment     1,592       1,559       1,553       1,799       1,240  
    Supplies, postage, and telephone     298       296       360       317       293  
    Regulatory assessments and state taxes     479       460       548       457       513  
    Advertising     265       362       409       377       309  
    Professional fees     777       813       698       684       910  
    FDIC insurance premium     434       491       533       473       386  
    Other expense     678       820       1,080       906       580  
    Total noninterest expense     14,249       14,233       15,848       15,609       14,303  
       Income (loss) before provision for income taxes     2,122       (2,451 )     (3,183 )     (2,766 )     843  
    Provision for income taxes     608       359       (1,203 )     (547 )     447  
    Net income (loss)   $ 1,514     $ (2,810 )   $ (1,980 )   $ (2,219 )   $ 396  
                                             
    Basic and diluted earnings (loss) per common share   $ 0.17     $ (0.32 )   $ (0.23 )   $ (0.25 )   $ 0.04  
                                             
    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    ADDITIONAL INFORMATION
    (Dollars in thousands) (Unaudited)
     
    Selected Loan Detail   March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		     March 31,
    2024    		  
    Construction and land loans breakout                                        
    1-4 Family construction   $ 42,371     $ 39,319     $ 43,125     $ 56,514     $ 69,075  
    Multifamily construction     9,223       15,407       29,109       43,341       45,776  
    Nonresidential construction     7,229       16,857       17,500       1,015       3,374  
    Land and development     6,054       6,527       5,975       6,403       7,122  
    Total construction and land loans   $ 64,877     $ 78,110     $ 95,709     $ 107,273     $ 125,347  
                                             
    Auto and other consumer loans breakout                                        
    Triad Manufactured Home loans   $ 134,740     $ 128,231     $ 129,600     $ 110,510     $ 119,309  
    Woodside auto loans     118,972       117,968       126,129       131,151       128,072  
    First Help auto loans     13,012       14,283       15,971       17,427       8,326  
    Other auto loans     1,313       1,647       2,064       2,690       3,313  
    Other consumer loans     5,841       6,747       7,434       23,845       9,814  
    Total auto and other consumer loans   $ 273,878     $ 268,876     $ 281,198     $ 285,623     $ 268,834  
                                             
    Commercial business loans breakout                                        
    Northpointe Bank MPP   $ –     $ 36,230     $ 38,155     $ 9,150     $ 15,047  
    Secured lines of credit     39,986       35,701       37,686       28,862       41,014  
    Unsecured lines of credit     2,030       1,717       1,571       1,133       1,001  
    SBA loans     6,889       7,044       7,219       7,146       8,944  
    Other commercial business loans     71,581       70,801       70,696       70,803       70,291  
    Total commercial business loans   $ 120,486     $ 151,493     $ 155,327     $ 117,094     $ 136,297  
    Loans by Collateral and Unfunded Commitments   March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		     March 31,
    2024    		  
    One-to-four family construction   $ 38,221     $ 44,468     $ 51,607     $ 49,440     $ 70,100  
    All other construction and land     30,947       34,290       45,166       58,346       55,286  
    One-to-four family first mortgage     428,081       466,046       469,053       434,840       436,543  
    One-to-four family junior liens     15,155       15,090       14,701       13,706       12,608  
    One-to-four family revolving open-end     51,832       51,481       48,459       44,803       45,536  
    Commercial real estate, owner occupied:                                        
    Health care     29,386       29,129       29,407       29,678       29,946  
    Office     19,363       17,756       17,901       19,215       17,951  
    Warehouse     14,843       14,948       11,645       14,613       14,683  
    Other     74,915       78,170       64,535       56,292       55,063  
    Commercial real estate, non-owner occupied:                                        
    Office     41,885       49,417       49,770       50,158       53,099  
    Retail     50,737       49,591       49,717       50,101       50,478  
    Hospitality     62,226       61,919       62,282       62,628       66,982  
    Other     93,549       81,640       82,573       84,428       93,040  
    Multi-family residential     339,217       333,419       354,118       350,382       339,907  
    Commercial business loans     76,330       77,381       86,904       79,055       90,781  
    Commercial agriculture and fishing loans     22,914       21,833       15,369       14,411       10,200  
    State and political subdivision obligations     369       369       404       405       405  
    Consumer automobile loans     133,209       133,789       144,036       151,121       139,524  
    Consumer loans secured by other assets     137,619       131,429       132,749       129,293       122,895  
    Consumer loans unsecured     3,051       3,658       4,411       5,209       6,415  
    Total loans   $ 1,663,849     $ 1,695,823     $ 1,734,807     $ 1,698,124     $ 1,711,442  
                                             
    Unfunded commitments under lines of credit or existing loans   $ 172,260     $ 163,827     $ 166,446     $ 155,005     $ 148,736  
    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    NET INTEREST MARGIN ANALYSIS
    (Dollars in thousands) (Unaudited)
     
        Three Months Ended March 31,  
        2025     2024  
        Average     Interest             Average     Interest          
        Balance     Earned/     Yield/     Balance     Earned/     Yield/  
        Outstanding     Paid     Rate     Outstanding     Paid     Rate  
        (Dollars in thousands)  
    Interest-earning assets:                                                
    Loans receivable, net (1) (2)   $ 1,642,007     $ 22,231       5.49 %   $ 1,661,420     $ 22,767       5.51 %
    Investment securities     333,208       3,803       4.63       307,490       3,632       4.75  
    FHLB dividends     13,609       307       9.15       12,328       282       9.20  
    Interest-earning deposits in banks     42,917       482       4.55       46,583       645       5.57  
    Total interest-earning assets (3)     2,031,741       26,823       5.35       2,027,821       27,326       5.42  
    Noninterest-earning assets     143,033                       138,366                  
    Total average assets   $ 2,174,774                     $ 2,166,187                  
    Interest-bearing liabilities:                                                
    Interest-bearing demand deposits   $ 168,414     $ 260       0.63     $ 165,379     $ 187       0.45  
    Money market accounts     414,425       2,345       2.29       377,505       1,949       2.08  
    Savings accounts     216,499       783       1.47       235,784       953       1.63  
    Certificates of deposit, customer     451,936       4,522       4.06       437,525       4,494       4.13  
    Certificates of deposit, brokered     158,269       1,827       4.68       205,923       2,529       4.94  
    Total interest-bearing deposits (4)     1,409,543       9,737       2.80       1,422,116       10,112       2.86  
    Advances     279,500       2,796       4.06       252,912       2,892       4.60  
    Subordinated debt     38,370       443       4.68       39,446       394       4.02  
    Total interest-bearing liabilities     1,727,413       12,976       3.05       1,714,474       13,398       3.14  
    Noninterest-bearing deposits (4)     243,569                       249,283                  
    Other noninterest-bearing liabilities     47,238                       40,563                  
    Total average liabilities     2,018,220                       2,004,320                  
    Average equity     156,554                       161,867                  
    Total average liabilities and equity   $ 2,174,774                     $ 2,166,187                  
                                                     
    Net interest income           $ 13,847                     $ 13,928          
    Net interest rate spread                     2.30                       2.28  
    Net earning assets   $ 304,328                     $ 313,347                  
    Net interest margin (5)                     2.76                       2.76  
    Average interest-earning assets to average interest-bearing liabilities     117.6 %                     118.3 %                
    (1) The average loans receivable, net balances include nonaccrual loans.
    (2) Interest earned on loans receivable includes net deferred costs of ($338,000) and ($171,000) for the three months ended March 31, 2025 and 2024, respectively.
    (3) Includes interest-earning deposits (cash) at other financial institutions.
    (4) Cost of all deposits, including noninterest-bearing demand deposits, was 2.39% and 2.43% for the three months ended March 31, 2025 and 2024, respectively.
    (5) Net interest income divided by average interest-earning assets.
    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    ADDITIONAL INFORMATION
    (Dollars in thousands) (Unaudited)


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

    Calculations Based on PPNR and Adjusted PPNR:

        For the Quarter Ended  
    (Dollars in thousands)   March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		     March 31,
    2024    		  
    Net income (loss)   $ 1,514     $ (2,810 )   $ (1,980 )   $ (2,219 )   $ 396  
    Plus: provision for credit losses     1,568       3,655       3,134       8,739       970  
    Provision for income taxes     608       359       (1,203 )     (547 )     447  
    PPNR (1)     3,690       1,204       (49 )     5,973       1,813  
    Less selected nonrecurring adjustments to PPNR:                                        
    BOLI death benefit     1,059       1,536       —       —       —  
    Gain on extinguishment of subordinated debt included in other income     846       —       —       —       —  
    Gain on conversion of loan receivable into Series A equity investment     315       —       —       —       —  
    Equity investment repricing adjustment     —       (1,762 )     —       —       651  
    One-time compensation payouts related to reduction in force     —       —       (996 )     —       —  
    Net gain on sale of premises and equipment     —       —       —       7,919       —  
    Sale leaseback taxes and assessments included in occupancy and equipment     —       —       —       (359 )     —  
    Net gain on sale of investment securities     —       —       —       (2,117 )     —  
    Adjusted PPNR (1)   $ 1,470     $ 1,430     $ 947     $ 530     $ 1,162  
                                             
    Average total assets   $ 2,174,774     $ 2,205,502     $ 2,209,333     $ 2,219,370     $ 2,166,187  
    Return on average assets (GAAP)     0.28 %     -0.51 %     -0.36 %     -0.40 %     0.07 %
    PPNR return on average assets (Non-GAAP) (1)     0.69 %     0.22 %     -0.01 %     1.08 %     0.34 %
    Adjusted PPNR return on average assets (Non-GAAP) (1)     0.27 %     0.26 %     0.17 %     0.10 %     0.22 %
    (1) PPNR removes the provisions for credit loss and income tax from net income. This removes potentially volatile estimates, providing a comparative amount limited to income and expense recorded during the period. Adjusted PPNR further removes large nonrecurring transactions recorded during the period. We believe these metrics provide comparative amounts for a better review of recurring net revenue.
    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    ADDITIONAL INFORMATION
    (Dollars in thousands) (Unaudited)
     
    Calculations Based on Tangible Common Equity:
     
        For the Quarter Ended  
    (Dollars in thousands, except per share data)     March 31,
    2025    		       December 31,
    2024    		       September 30,
    2024    		       June 30,
    2024    		       March 31,
    2024    		  
    Total shareholders’ equity   $ 157,042     $ 153,882     $ 160,789     $ 158,881     $ 160,506  
    Less: Goodwill and other intangible assets     1,082       1,082       1,083       1,084       1,085  
    Disallowed non-mortgage loan servicing rights     415       423       489       517       489  
    Total tangible common equity   $ 155,545     $ 152,377     $ 159,217     $ 157,280     $ 158,932  
                                             
    Total assets   $ 2,176,430     $ 2,232,006     $ 2,255,486     $ 2,215,962     $ 2,240,020  
    Less: Goodwill and other intangible assets     1,082       1,082       1,083       1,084       1,085  
    Disallowed non-mortgage loan servicing rights     415       423       489       517       489  
    Total tangible assets   $ 2,174,933     $ 2,230,501     $ 2,253,914     $ 2,214,361     $ 2,238,446  
                                             
    Average shareholders’ equity   $ 156,554     $ 161,560     $ 160,479     $ 163,079     $ 161,867  
    Less: Average goodwill and other intangible assets     1,082       1,083       1,084       1,085       1,085  
    Average disallowed non-mortgage loan servicing rights     423       489       517       489       481  
    Total average tangible common equity   $ 155,049     $ 159,988     $ 158,878     $ 161,505     $ 160,301  
                                             
    Net income (loss)   $ 1,514     $ (2,810 )   $ (1,980 )   $ (2,219 )   $ 396  
    Common shares outstanding     9,440,618       9,353,348       9,365,979       9,453,247       9,442,796  
    GAAP Ratios:                                        
    Equity to total assets     7.22 %     6.89 %     7.13 %     7.17 %     7.17 %
    Return on average equity     3.92 %     -6.92 %     -4.91 %     -5.47 %     0.98 %
    Book value per common share   $ 16.63     $ 16.45     $ 17.17     $ 16.81     $ 17.00  
    Non-GAAP Ratios:                                        
    Tangible common equity to tangible assets (1)     7.15 %     6.83 %     7.06 %     7.10 %     7.10 %
    Return on average tangible common equity (1)     3.96 %     -6.99 %     -4.96 %     -5.53 %     0.99 %
    Tangible book value per common share (1)   $ 16.48     $ 16.29     $ 17.00     $ 16.64     $ 16.83  
    (1 ) We believe that the use of tangible equity and tangible assets improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles.

    Photos accompanying this announcement are available at:

    https://www.globenewswire.com/NewsRoom/AttachmentNg/d5c93711-67c1-4664-a49c-37df22040147

    https://www.globenewswire.com/NewsRoom/AttachmentNg/4a3584b1-1204-464b-8080-7fcc46d66470

    https://www.globenewswire.com/NewsRoom/AttachmentNg/37ce187a-5662-457d-bd13-66e409ac2710

    https://www.globenewswire.com/NewsRoom/AttachmentNg/4b958691-2f11-4ceb-a89a-ab88b1b1d702

    https://www.globenewswire.com/NewsRoom/AttachmentNg/7207465f-e4fb-4f05-8218-e87558fb913c

    https://www.globenewswire.com/NewsRoom/AttachmentNg/1c8a4efe-4d1b-4b02-bdac-6fd686314c0b

    The MIL Network –

  • MIL-OSI: Valley National Bancorp Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, April 24, 2025 (GLOBE NEWSWIRE) — Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the first quarter 2025 of $106.1 million, or $0.18 per diluted common share, as compared to the fourth quarter 2024 net income of $115.7 million, or $0.20 per diluted common share, and net income of $96.3 million, or $0.18 per diluted common share, for the first quarter 2024. Excluding all non-core income and charges, our adjusted net income (a non-GAAP measure) was $106.1 million, or $0.18 per diluted common share, for the first quarter 2025, $75.7 million, or $0.13 per diluted common share, for the fourth quarter 2024, and $99.4 million, or $0.19 per diluted common share, for the first quarter 2024. See further details below, including a reconciliation of our non-GAAP adjusted net income, in the “Consolidated Financial Highlights” tables.

    Ira Robbins, CEO, commented, “The first quarter was highlighted by the continued improvement in our funding base. Core deposit growth has enabled us to further reduce our reliance on indirect deposits which benefited our revenue and net interest margin. We anticipate that additional core deposit growth will create a sustainable tailwind despite the volatility in the current operating environment.”

    Mr. Robbins continued, “I am generally pleased with the quarter’s results from a credit perspective. The provision for loan losses for the first quarter was at the lowest point in the last four quarters, and we anticipate further improvement throughout the remainder of the year. Non-accrual loans and early stage delinquencies also improved sequentially, and we believe our allowance coverage to total loans is at a comfortable level as of March 31, 2025. We remain on track to achieve our profitability goals for the year as we continue to benefit from the net interest income and credit cost tailwinds that we have discussed previously.”

    Key financial highlights for the first quarter 2025:

    • Net Interest Income and Margin: Our net interest margin on a tax equivalent basis increased by 4 basis points to 2.96 percent in the first quarter 2025 as compared to 2.92 percent for the fourth quarter 2024. Net interest income on a tax equivalent basis of $421.4 million for the first quarter 2025 decreased $2.9 million compared to the fourth quarter 2024 and increased $26.5 million as compared to the first quarter 2024. The moderate decrease in net interest income from the fourth quarter 2024 was due to the impact of two less days during the first quarter 2025. See additional details in the “Net Interest Income and Margin” section below.
    • Loan Portfolio: Total loans decreased $142.6 million, or 1.2 percent on an annualized basis, to $48.7 billion at March 31, 2025 from December 31, 2024 mostly due to normal repayment activity and selective originations within the commercial real estate (CRE) portfolio. As a result, our CRE loan concentration ratio (defined as total commercial real estate loans held for investment and held for sale, excluding owner occupied loans, as a percentage of total risk-based capital) declined to approximately 353 percent at March 31, 2025 from 362 percent at December 31, 2024. Partially offsetting the lower CRE loan balances, commercial and industrial (C&I) and automobile loans grew by $218.8 million and $140.2 million, respectively, at March 31, 2025 from December 31, 2024. Auto loan originations resulting from high quality consumer demand remained strong during the first quarter 2025. See the “Loans” section below for more details.
    • Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled $594.1 million and $573.3 million at March 31, 2025 and December 31, 2024, respectively, representing 1.22 percent and 1.17 percent of total loans at each respective date. During the first quarter 2025, we recorded a provision for credit losses for loans of $62.7 million as compared to $107.0 million and $45.3 million for the fourth quarter 2024 and first quarter 2024, respectively. See the “Credit Quality” section below for more details.
    • Credit Quality: Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) decreased $47.5 million to $51.7 million, or 0.11 percent of total loans, at March 31, 2025 as compared to $99.2 million, or 0.20 percent of total loans, at December 31, 2024. Non-accrual loans totaled $346.5 million, or 0.71 percent of total loans, at March 31, 2025 as compared to $359.5 million, or 0.74 percent of total loans, at December 31, 2024. Net loan charge-offs totaled $41.9 million for the first quarter 2025 as compared to $98.3 million and $23.6 million for the fourth quarter 2024 and first quarter 2024, respectively. See the “Credit Quality” section below for more details.
    • Deposits: Non-interest bearing deposits increased $199.9 million to $11.6 billion at March 31, 2025 from December 31, 2024 largely due to higher inflows of commercial customer deposits during the first quarter 2025. Savings, NOW, and money market deposits increased $108.6 million to $26.4 billion at March 31, 2025 from December 31, 2024 mostly due to new deposits from our online savings deposit product offerings. Total actual deposit balances decreased $110.0 million to $50.0 billion at March 31, 2025 as compared to $50.1 billion at December 31, 2024 as the increases in our direct customer deposits were offset by a $726.5 million decrease in indirect customer deposits (consisting largely of brokered CDs) during the first quarter 2025. See the “Deposits” section below for more details.
    • Non-Interest Income: Non-interest income increased $7.1 million to $58.3 million for the first quarter 2025 as compared to the fourth quarter 2024. The increase reflected net gains on sales of loans of $2.2 million for the first quarter 2025 as compared to net losses of $4.7 million for the fourth quarter 2024, which included $7.9 million of losses related to the sale of performing CRE loans.
    • Non-Interest Expense: Non-interest expense decreased $2.0 million to $276.6 million for the first quarter 2025 as compared to the fourth quarter 2024 largely due to decreases of $6.1 million in professional and legal expenses; and $5.6 million in technology, furniture and equipment expense, partially offset by higher amortization of tax credit investments and the normal seasonal increases in salary and employee benefits expense related to payroll taxes during the first quarter 2025. The decreases in professional and technology-related expenses were mostly due to elevated fourth quarter 2024 expenses resulting from transformation and enhancement efforts in our bank operations.
    • Income Tax Expense: Income tax expense was $33.1 million for the first quarter 2025 as compared to an income tax benefit of $26.7 million for the fourth quarter 2024, which reflected a $46.4 million total reduction in uncertain tax liability positions and related accrued interest due to statute of limitation expirations. Our effective tax rate was 23.8 percent for the first quarter 2025 compared to a negative 29.9 percent for the fourth quarter 2024.
    • Efficiency Ratio: Our efficiency ratio was 55.87 percent for the first quarter 2025 as compared to 57.21 percent and 59.10 percent for the fourth quarter 2024 and first quarter 2024, respectively. See the “Consolidated Financial Highlights” tables below for additional information regarding our non-GAAP measures.
    • Performance Ratios: Annualized return on average assets (ROA), shareholders’ equity (ROE) and tangible ROE were 0.69 percent, 5.69 percent and 7.76 percent for the first quarter 2025, respectively. See the “Consolidated Financial Highlights” tables below for additional information regarding our non-GAAP measures.

    Net Interest Income and Margin

    Net interest income on a tax equivalent basis of $421.4 million for the first quarter 2025 decreased $2.9 million compared to the fourth quarter 2024 and increased $26.5 million as compared to the first quarter 2024. Interest income on a tax equivalent basis decreased $50.1 million to $786.0 million for the first quarter 2025 as compared to the fourth quarter 2024. The decrease was mostly driven by the impact of (i) two less days in the first quarter 2025, (ii) the bulk sale of certain performing CRE loans during the fourth quarter 2024, and (iii) downward repricing on adjustable rate loans. Total interest expense decreased $47.2 million to $364.6 million for the first quarter 2025 as compared to the fourth quarter 2024 mainly due to (i) the aforementioned reduction in day count, (ii) a $2.0 billion decrease in average time deposit balances (primarily related to the maturity and repayment of higher cost indirect customer CDs), and (iii) lower interest rates on many interest bearing deposit products in the first quarter 2025. See the “Deposits” and “Other Borrowings” sections below for more details.

    Net interest margin on a tax equivalent basis of 2.96 percent for the first quarter 2025 increased by 4 basis points from 2.92 percent for the fourth quarter 2024 and increased 17 basis points from 2.79 percent for the first quarter 2024. The increase as compared to the fourth quarter 2024 was mostly due to the 29 basis point decline in our cost of total average deposits, largely offset by the lower yield on average interest earning assets. The yield on average interest earning assets decreased by 22 basis points to 5.53 percent on a linked quarter basis largely due to downward repricing of our adjustable rate loans and two less days in the first quarter 2025, partially offset by higher yielding investment purchases. The overall cost of average interest bearing liabilities decreased 31 basis points to 3.54 percent for the first quarter 2025 as compared to the fourth quarter 2024 largely due to a decrease in higher cost time deposits and lower interest rates on most deposit products. Our cost of total average deposits was 2.65 percent for the first quarter 2025 as compared to 2.94 percent and 3.16 percent for the fourth quarter 2024 and the first quarter 2024, respectively.

    Loans, Deposits and Other Borrowings

    Loans. Total loans decreased $142.6 million, or 1.2 percent on an annualized basis, to $48.7 billion at March 31, 2025 from December 31, 2024. Total CRE (including construction) loans decreased $530.4 million to $29.1 billion at March 31, 2025 from December 31, 2024. The decrease was largely driven by repayment activity and continued selective origination activity within the CRE portfolio. Additionally, construction loans decreased $87.8 million to $3.0 billion at March 31, 2025 from December 31, 2024 mainly due to the migration of completed projects to permanent financing within the multifamily loan category during the first quarter 2025 and a non-performing loan totaling $10.2 million, net of $638 thousand of charge-offs, transferred to loans held for sale at March 31, 2025, partially offset by new advances. As a result of the completed construction projects, multifamily loans increased $121.1 million to $8.4 billion at March 31, 2025 from December 31, 2024. C&I loans grew by $218.8 million, or 8.8 percent on an annualized basis, to $10.2 billion at March 31, 2025 from December 31, 2024 largely due to our continued strategic focus on growth within this category. Automobile loans increased by $140.2 million, or 29.5 percent on an annualized basis, to $2.0 billion at March 31, 2025 from December 31, 2024 mainly due to high quality consumer demand generated by our indirect auto dealer network and low prepayment activity within the portfolio.

    Deposits. Actual ending balances for deposits decreased $110.0 million to $50.0 billion at March 31, 2025 from December 31, 2024 mainly due to a $418.5 million decrease in time deposits, partially offset by increases of $199.9 million and $108.6 million in non-interest bearing deposits and savings, NOW and money market deposits, respectively. The decrease in time deposit balances was mainly driven by a decline of approximately $661 million in indirect (i.e., brokered) customer CDs, partially offset by deposit inflows from new retail CD offerings during the first quarter 2025. The increase in non-interest bearing was mostly due to higher commercial customer deposit inflows late in the first quarter 2025. Savings, NOW and money market deposit balances increased at March 31, 2025 from December 31, 2024 largely due to new deposits from our online savings deposit product offerings, partially offset by lower governmental deposits account balances. Total indirect customer deposits (including both brokered money market and time deposits) totaled $6.3 billion and $7.0 billion in March 31, 2025 and December 31, 2024, respectively. Non-interest bearing deposits; savings, NOW and money market deposits; and time deposits represented approximately 23 percent, 53 percent and 24 percent of total deposits as of March 31, 2025, respectively, as compared to 23 percent, 52 percent and 25 percent of total deposits as of December 31, 2024, respectively.

    Other Borrowings. Short-term borrowings, consisting of securities sold under agreements to repurchase, decreased $13.7 million to $59.0 million at March 31, 2025 from December 31, 2024. Long-term borrowings totaled $2.9 billion at March 31, 2025 and decreased $269.6 million as compared to December 31, 2024 due to the maturity and repayment of certain FHLB advances.

    Credit Quality

    Non-Performing Assets (NPAs). Total NPAs, consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets, decreased $17.1 million to $356.2 million at March 31, 2025 as compared to December 31, 2024. Non-accrual loans decreased $13.0 million to $346.5 million at March 31, 2025 as compared to $359.5 million at December 31, 2024 largely driven by partial charge-offs of two non-performing C&I loan relationships during the first quarter 2025, partially offset by a moderate increase in non-performing CRE loans at March 31, 2025. Non-accrual loans represented 0.71 percent of total loans at March 31, 2025 as compared to 0.74 percent of total loans at December 31, 2024. OREO decreased $4.4 million to $7.7 million at March 31, 2025 from December 31, 2024 mostly due to the sale of one CRE property, which resulted in a $2.9 million loss for the first quarter 2025.

    Accruing Past Due Loans. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) decreased $47.5 million to $51.7 million, or 0.11 percent of total loans, at March 31, 2025 as compared to $99.2 million, or 0.20 percent of total loans, at December 31, 2024.

    Loans 30 to 59 days past due decreased $23.7 million to $33.4 million at March 31, 2025 as compared to December 31, 2024 largely due to a previously reported delinquent CRE loan totaling $15.4 million that was current to its contractual payments at March 31, 2025, as well as a general improvement in residential mortgage loan delinquencies in this category. Loans 60 to 89 days past due decreased $25.6 million to $10.5 million at March 31, 2025 as compared to December 31, 2024 mostly due to the renewal of an $18.6 million matured performing CRE loan reported in this delinquency category at December 31, 2024 and two CRE loans totaling $6.9 million that were reclassified to the non-accrual category during the first quarter 2025. Loans 90 days or more past due and still accruing interest increased $1.9 million to $7.8 million at March 31, 2025 as compared to December 31, 2024 mainly due to an increase in residential mortgage loans delinquencies. All loans 90 days or more past due and still accruing interest are well-secured and in the process of collection.

    Allowance for Credit Losses for Loans and Unfunded Commitments. The following table summarizes the allocation of the allowance for credit losses to loan categories and the allocation as a percentage of each loan category at March 31, 2025, December 31, 2024 and March 31, 2024:

      March 31, 2025   December 31, 2024   March 31, 2024
          Allocation       Allocation       Allocation
          as a % of       as a % of       as a % of
      Allowance   Loan   Allowance   Loan   Allowance   Loan
      Allocation   Category   Allocation   Category   Allocation   Category
      ($ in thousands)
    Loan Category:                      
    Commercial and industrial loans $ 184,700   1.82 %   $ 173,002   1.74 %   $ 138,593   1.52 %
    Commercial real estate loans:                      
    Commercial real estate   266,938   1.02       251,351   0.95       209,355   0.74  
    Construction   54,724   1.81       52,797   1.70       56,492   1.59  
    Total commercial real estate loans   321,662   1.10       304,148   1.03       265,847   0.84  
    Residential mortgage loans   48,906   0.87       58,895   1.05       44,377   0.79  
    Consumer loans:                      
    Home equity   3,401   0.56       3,379   0.56       2,809   0.50  
    Auto and other consumer   19,531   0.62       19,426   0.65       17,622   0.60  
    Total consumer loans   22,932   0.61       22,805   0.64       20,431   0.58  
    Allowance for loan losses   578,200   1.19       558,850   1.15       469,248   0.94  
    Allowance for unfunded credit commitments   15,854         14,478         18,021    
    Total allowance for credit losses for loans $ 594,054       $ 573,328       $ 487,269    
    Allowance for credit losses for loans as a % total of loans     1.22 %       1.17 %       0.98 %
                                 

    Our loan portfolio, totaling $48.7 billion at March 31, 2025, had net loan charge-offs totaling $41.9 million for the first quarter 2025 as compared to $98.3 million and $23.6 million for the fourth quarter 2024 and the first quarter 2024, respectively. Gross loan charge-offs totaled $44.0 million for the first quarter 2025 and included $24.1 million of partial and full charge-offs related to two non-performing C&I loan relationships with combined specific reserves of $16.0 million at December 31, 2024.

    The allowance for credit losses for loans, comprised of our allowance for loan losses and unfunded credit commitments, as a percentage of total loans was 1.22 percent at March 31, 2025, 1.17 percent at December 31, 2024, and 0.98 percent at March 31, 2024. For the first quarter 2025, the provision for credit losses for loans totaled $62.7 million as compared to $107.0 million and $45.3 million for the fourth quarter 2024 and first quarter 2024, respectively. The first quarter 2025 provision reflects, among other factors, the impact of loan charge-offs, increased quantitative reserves and continued growth in the C&I loan portfolio, partially offset by a decrease in specific reserves associated with collateral dependent loans at March 31, 2025.

    Capital Adequacy

    Valley’s total risk-based capital, Tier 1 capital, common equity Tier 1 capital, and Tier 1 leverage capital ratios were 13.91 percent, 11.53 percent, 10.80 percent and 9.41 percent, respectively, at March 31, 2025 as compared to 13.87 percent, 11.55 percent, 10.82 percent and 9.16 percent, respectively, at December 31, 2024.

    Investor Conference Call

    Valley’s CEO, Ira Robbins, will host a conference call with investors and the financial community at 11:00 AM (ET) today to discuss Valley’s first quarter 2025 earnings. Interested parties should preregister using this link: https://register.vevent.com/register to receive the dial-in number and a personal PIN, which are required to access the conference call. The teleconference will also be webcast live: https://edge.media-server.com and archived on Valley’s website through Monday, May 26, 2025. Investor presentation materials will be made available prior to the conference call at valley.com.

    About Valley

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

    Forward-Looking Statements

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

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

    A detailed discussion of factors that could affect our results is included in our SEC filings, including Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2024.

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

    -Tables to Follow-

    VALLEY NATIONAL BANCORP
    CONSOLIDATED FINANCIAL HIGHLIGHTS
     
    SELECTED FINANCIAL DATA
     
      Three Months Ended
      March 31,   December 31,   March 31,
    ($ in thousands, except for share data and stock price) 2025   2024   2024
    FINANCIAL DATA:          
    Net interest income – FTE (1) $ 421,378     $ 424,277     $ 394,847  
    Net interest income $ 420,105     $ 422,977     $ 393,548  
    Non-interest income   58,294       51,202       61,415  
    Total revenue   478,399       474,179       454,963  
    Non-interest expense   276,618       278,582       280,310  
    Pre-provision net revenue   201,781       195,597       174,653  
    Provision for credit losses   62,661       106,536       45,200  
    Income tax expense (benefit)   33,062       (26,650 )     33,173  
    Net income   106,058       115,711       96,280  
    Dividends on preferred stock   6,955       7,025       4,119  
    Net income available to common shareholders $ 99,103     $ 108,686     $ 92,161  
    Weighted average number of common shares outstanding:          
    Basic   559,613,272       536,159,463       508,340,719  
    Diluted   563,305,525       540,087,600       510,633,945  
    Per common share data:          
    Basic earnings $ 0.18     $ 0.20     $ 0.18  
    Diluted earnings   0.18       0.20       0.18  
    Cash dividends declared   0.11       0.11       0.11  
    Closing stock price – high   10.42       10.78       10.80  
    Closing stock price – low   8.56       8.70       7.43  
    FINANCIAL RATIOS:          
    Net interest margin   2.95 %     2.91 %     2.78 %
    Net interest margin – FTE (1)   2.96       2.92       2.79  
    Annualized return on average assets   0.69       0.74       0.63  
    Annualized return on avg. shareholders’ equity   5.69       6.38       5.73  
    NON-GAAP FINANCIAL DATA AND RATIOS: (2)          
    Basic earnings per share, as adjusted $ 0.18     $ 0.13     $ 0.19  
    Diluted earnings per share, as adjusted   0.18       0.13       0.19  
    Annualized return on average assets, as adjusted   0.69 %     0.48 %     0.65 %
    Annualized return on average shareholders’ equity, as adjusted   5.69       4.17       5.91  
    Annualized return on avg. tangible shareholders’ equity   7.76       8.81       8.19  
    Annualized return on average tangible shareholders’ equity, as adjusted   7.76       5.76       8.46  
    Efficiency ratio   55.87       57.21       59.10  
               
    AVERAGE BALANCE SHEET ITEMS:          
    Assets $ 61,502,768     $ 62,865,338     $ 61,256,868  
    Interest earning assets   56,891,691       58,214,783       56,618,797  
    Loans   48,654,921       49,730,130       50,246,591  
    Interest bearing liabilities   41,230,709       42,765,949       41,556,588  
    Deposits   49,139,303       50,726,080       48,575,974  
    Shareholders’ equity   7,458,177       7,255,159       6,725,695  
                           
      As Of
    BALANCE SHEET ITEMS: March 31,   December 31,   September 30,   June 30,   March 31,
    (In thousands) 2025   2024   2024   2024   2024
    Assets $ 61,865,655     $ 62,491,691     $ 62,092,332     $ 62,058,974     $ 61,000,188  
    Total loans   48,657,128       48,799,711       49,355,319       50,311,702       49,922,042  
    Deposits   49,965,844       50,075,857       50,395,966       50,112,177       49,077,946  
    Shareholders’ equity   7,499,897       7,435,127       6,972,380       6,737,737       6,727,139  
                       
    LOANS:                  
    (In thousands)                  
    Commercial and industrial $ 10,150,205     $ 9,931,400     $ 9,799,287     $ 9,479,147     $ 9,104,193  
    Commercial real estate:                  
    Non-owner occupied   11,945,222       12,344,355       12,647,649       13,710,015       14,962,851  
    Multifamily   8,420,385       8,299,250       8,612,936       8,976,264       8,818,263  
    Owner occupied   5,722,014       5,886,620       5,654,147       5,536,844       4,367,839  
    Construction   3,026,935       3,114,733       3,487,464       3,545,723       3,556,511  
    Total commercial real estate   29,114,556       29,644,958       30,402,196       31,768,846       31,705,464  
    Residential mortgage   5,636,407       5,632,516       5,684,079       5,627,113       5,618,355  
    Consumer:                  
    Home equity   602,161       604,433       581,181       566,467       564,083  
    Automobile   2,041,227       1,901,065       1,823,738       1,762,852       1,700,508  
    Other consumer   1,112,572       1,085,339       1,064,838       1,107,277       1,229,439  
    Total consumer loans   3,755,960       3,590,837       3,469,757       3,436,596       3,494,030  
    Total loans $ 48,657,128     $ 48,799,711     $ 49,355,319     $ 50,311,702     $ 49,922,042  
                       
    CAPITAL RATIOS:                  
    Book value per common share $ 12.76     $ 12.67     $ 13.00     $ 12.82     $ 12.81  
    Tangible book value per common share (2)   9.21       9.10       9.06       8.87       8.84  
    Tangible common equity to tangible assets (2)   8.61 %     8.40 %     7.68 %     7.52 %     7.62 %
    Tier 1 leverage capital   9.41       9.16       8.40       8.19       8.20  
    Common equity tier 1 capital   10.80       10.82       9.57       9.55       9.34  
    Tier 1 risk-based capital   11.53       11.55       10.29       9.98       9.78  
    Total risk-based capital   13.91       13.87       12.56       12.17       11.88  
                                           
      Three Months Ended
    ALLOWANCE FOR CREDIT LOSSES: March 31,   December 31,   March 31,
    ($ in thousands) 2025   2024   2024
    Allowance for credit losses for loans          
    Beginning balance – Allowance for credit losses for loans $ 573,328     $ 564,671     $ 465,550  
    Loans charged-off:          
    Commercial and industrial   (28,456 )     (31,784 )     (14,293 )
    Commercial real estate   (12,260 )     (69,218 )     (1,204 )
    Construction   (1,163 )     —       (7,594 )
    Residential mortgage   —       (29 )     —  
    Total consumer   (2,140 )     (2,621 )     (1,809 )
    Total loans charged-off   (44,019 )     (103,652 )     (24,900 )
    Charged-off loans recovered:          
    Commercial and industrial   810       1,452       682  
    Commercial real estate   249       3,138       241  
    Residential mortgage   168       81       25  
    Total consumer   843       673       397  
    Total loans recovered   2,070       5,344       1,345  
    Total net charge-offs   (41,949 )     (98,308 )     (23,555 )
    Provision for credit losses for loans   62,675       106,965       45,274  
    Ending balance $ 594,054     $ 573,328     $ 487,269  
    Components of allowance for credit losses for loans:          
    Allowance for loan losses $ 578,200     $ 558,850     $ 469,248  
    Allowance for unfunded credit commitments   15,854       14,478       18,021  
    Allowance for credit losses for loans $ 594,054     $ 573,328     $ 487,269  
    Components of provision for credit losses for loans:          
    Provision for credit losses for loans $ 61,299     $ 108,831     $ 46,723  
    Provision (credit) for unfunded credit commitments   1,376       (1,866 )     (1,449 )
    Total provision for credit losses for loans $ 62,675     $ 106,965     $ 45,274  
    Annualized ratio of total net charge-offs to total average loans   0.34 %     0.79 %     0.19 %
    Allowance for credit losses for loans as a % of total loans   1.22 %     1.17 %     0.98 %
                           
      As Of
    ASSET QUALITY: March 31,   December 31,   September 30,   June 30,   March 31,
    ($ in thousands) 2025   2024   2024   2024   2024
    Accruing past due loans:                  
    30 to 59 days past due:                  
    Commercial and industrial $ 3,609     $ 2,389     $ 4,537     $ 5,086     $ 6,202  
    Commercial real estate   170       20,902       76,370       1,879       5,791  
    Residential mortgage   16,747       21,295       19,549       17,389       20,819  
    Total consumer   12,887       12,552       14,672       21,639       14,032  
    Total 30 to 59 days past due   33,413       57,138       115,128       45,993       46,844  
    60 to 89 days past due:                  
    Commercial and industrial   420       1,007       1,238       1,621       2,665  
    Commercial real estate   —       24,903       43,926       —       3,720  
    Residential mortgage   7,700       5,773       6,892       6,632       5,970  
    Total consumer   2,408       4,484       2,732       3,671       1,834  
    Total 60 to 89 days past due   10,528       36,167       54,788       11,924       14,189  
    90 or more days past due:                  
    Commercial and industrial   —       1,307       1,786       2,739       5,750  
    Commercial real estate   —       —       —       4,242       —  
    Construction   —       —       —       3,990       3,990  
    Residential mortgage   6,892       3,533       1,931       2,609       2,884  
    Total consumer   864       1,049       1,063       898       731  
    Total 90 or more days past due   7,756       5,889       4,780       14,478       13,355  
    Total accruing past due loans $ 51,697     $ 99,194     $ 174,696     $ 72,395     $ 74,388  
    Non-accrual loans:                  
    Commercial and industrial $ 110,146     $ 136,675     $ 120,575     $ 102,942     $ 102,399  
    Commercial real estate   172,011       157,231       113,752       123,011       100,052  
    Construction   24,275       24,591       24,657       45,380       51,842  
    Residential mortgage   35,393       36,786       33,075       28,322       28,561  
    Total consumer   4,626       4,215       4,260       3,624       4,438  
    Total non-accrual loans   346,451       359,498       296,319       303,279       287,292  
    Other real estate owned (OREO)   7,714       12,150       7,172       8,059       88  
    Other repossessed assets   2,054       1,681       1,611       1,607       1,393  
    Total non-performing assets $ 356,219     $ 373,329     $ 305,102     $ 312,945     $ 288,773  
    Total non-accrual loans as a % of loans   0.71 %     0.74 %     0.60 %     0.60 %     0.58 %
    Total accruing past due and non-accrual loans as a % of loans   0.82       0.94 %     0.95 %     0.75 %     0.72 %
    Allowance for losses on loans as a % of non-accrual loans   166.89       155.45 %     185.05 %     171.23 %     163.33 %
                                           

    NOTES TO SELECTED FINANCIAL DATA

    (1)   Net interest income and net interest margin are presented on a tax equivalent basis using a 21 percent federal tax rate. Valley believes that this presentation provides comparability of net interest income and net interest margin arising from both taxable and tax-exempt sources and is consistent with industry practice and SEC rules.
    (2)   Non-GAAP Reconciliations. This press release contains certain supplemental financial information, described in the Notes below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles (“GAAP”) that management uses in its analysis of Valley’s performance. The Company believes that the non-GAAP financial measures provide useful supplemental information to both management and investors in understanding Valley’s underlying operational performance, business and performance trends, and may facilitate comparisons of our current and prior performance with the performance of others in the financial services industry. Management utilizes these measures for internal planning, forecasting and analysis purposes. Management believes that Valley’s presentation and discussion of this supplemental information, together with the accompanying reconciliations to the GAAP financial measures, also allows investors to view performance in a manner similar to management. These non-GAAP financial measures should not be considered in isolation or as a substitute for or superior to financial measures calculated in accordance with U.S. GAAP. These non-GAAP financial measures may also be calculated differently from similar measures disclosed by other companies.
         
    Non-GAAP Reconciliations to GAAP Financial Measures
     
      Three Months Ended
      March 31,   December 31,   March 31,
    ($ in thousands, except for share data) 2025
    		   2024
    		   2024
    Adjusted net income available to common shareholders (non-GAAP):          
    Net income, as reported (GAAP) $ 106,058     $ 115,711     $ 96,280  
    Add: FDIC special assessment (a)   —       —       7,394  
    Add: Losses on available for sale and held to maturity debt securities, net (b)   11       3       7  
    Add: Restructuring charge(c)   —       1,085       620  
    Add: Net losses on the sale of commercial real estate loans (d)   —       7,866       —  
    Less: Gain on sale of commercial premium finance lending division (e)   —       —       (3,629 )
    Less: Income tax benefit (f)   —       (46,431 )     —  
    Total non-GAAP adjustments to net income   11       (37,477 )     4,392  
    Income tax adjustments related to non-GAAP adjustments (g)   (3 )     (2,520 )     (1,224 )
    Net income, as adjusted (non-GAAP) $ 106,066     $ 75,714     $ 99,448  
    Dividends on preferred stock   6,955       7,025       4,119  
    Net income available to common shareholders, as adjusted (non-GAAP) $ 99,111     $ 68,689     $ 95,329  
               
    (a) Included in the FDIC insurance assessment.
    (b) Included in gains on securities transactions, net.
    (c) Represents severance expense related to workforce reductions within salary and employee benefits expense.
    (d) Represents actual and mark to market losses on commercial real estate loan sales included in gains (losses) on sales of loans, net.
    (e) Included in gains (losses) on sales of assets, net within non-interest income.
    (f)  Represents the income tax benefit from the reduction in uncertain tax liability positions and accrued interest due to statute of limitation expirations included in income tax expense (benefit).
    (g) Calculated using the appropriate blended statutory tax rate for the applicable period.
     
    Adjusted per common share data (non-GAAP):          
    Net income available to common shareholders, as adjusted (non-GAAP) $ 99,111     $ 68,689     $ 95,329  
    Average number of shares outstanding   559,613,272       536,159,463       508,340,719  
    Basic earnings, as adjusted (non-GAAP) $ 0.18     $ 0.13     $ 0.19  
    Average number of diluted shares outstanding   563,305,525       540,087,600       510,633,945  
    Diluted earnings, as adjusted (non-GAAP) $ 0.18     $ 0.13     $ 0.19  
    Adjusted annualized return on average tangible shareholders’ equity (non-GAAP):          
    Net income, as adjusted (non-GAAP) $ 106,066     $ 75,714     $ 99,448  
    Average shareholders’ equity $ 7,458,177     $ 7,255,159     $ 6,725,695  
    Less: Average goodwill and other intangible assets   1,994,061       2,000,574       2,024,999  
    Average tangible shareholders’ equity $ 5,464,116     $ 5,254,585     $ 4,700,696  
    Annualized return on average tangible shareholders’ equity, as adjusted (non-GAAP)   7.76 %     5.76 %     8.46 %
    Adjusted annualized return on average assets (non-GAAP):          
    Net income, as adjusted (non-GAAP) $ 106,066     $ 75,714     $ 99,448  
    Average assets $ 61,502,768     $ 62,865,338     $ 61,256,868  
    Annualized return on average assets, as adjusted (non-GAAP)   0.69 %     0.48 %     0.65 %
                           
    Non-GAAP Reconciliations to GAAP Financial Measures (Continued)
     
      Three Months Ended
      March 31,   December 31,   March 31,
    ($ in thousands, except for share data) 2025   2024   2024
    Adjusted annualized return on average shareholders’ equity (non-GAAP):          
    Net income, as adjusted (non-GAAP) $ 106,066     $ 75,714     $ 99,448  
    Average shareholders’ equity $ 7,458,177     $ 7,255,159     $ 6,725,695  
    Annualized return on average shareholders’ equity, as adjusted (non-GAAP)   5.69 %     4.17 %     5.91 %
    Annualized return on average tangible shareholders’ equity (non-GAAP):          
    Net income, as reported (GAAP) $ 106,058     $ 115,711     $ 96,280  
    Average shareholders’ equity $ 7,458,177     $ 7,255,159     $ 6,725,695  
    Less: Average goodwill and other intangible assets   1,994,061       2,000,574       2,024,999  
    Average tangible shareholders’ equity $ 5,464,116     $ 5,254,585     $ 4,700,696  
    Annualized return on average tangible shareholders’ equity (non-GAAP)   7.76 %     8.81 %     8.19 %
               
    Efficiency ratio (non-GAAP):          
    Non-interest expense, as reported (GAAP) $ 276,618     $ 278,582     $ 280,310  
    Less: FDIC special assessment (pre-tax)   —       —       7,394  
    Less: Restructuring charge (pre-tax)   —       1,085       620  
    Less: Amortization of tax credit investments (pre-tax)   9,320       1,740       5,562  
    Non-interest expense, as adjusted (non-GAAP) $ 267,298     $ 275,757     $ 266,734  
    Net interest income, as reported (GAAP)   420,105       422,977       393,548  
    Non-interest income, as reported (GAAP)   58,294       51,202       61,415  
    Add: Losses on available for sale and held to maturity securities transactions, net (pre-tax)   11       3       7  
    Add: Net losses on the sale of commercial real estate loans (pre-tax)   —       7,866       —  
    Less: Gain on sale of premium finance division (pre-tax)   —       —       (3,629 )
    Non-interest income, as adjusted (non-GAAP) $ 58,305     $ 59,071     $ 57,793  
    Gross operating income, as adjusted (non-GAAP) $ 478,410     $ 482,048     $ 451,341  
    Efficiency ratio (non-GAAP)   55.87 %     57.21 %     59.10 %
      As of
      March 31,   December 31,   September 30,   June 30,   March 31,
    ($ in thousands, except for share data) 2025   2024   2024   2024   2024
    Tangible book value per common share (non-GAAP):                  
    Common shares outstanding   560,028,101       558,786,093       509,252,936       509,205,014       508,893,059  
    Shareholders’ equity (GAAP) $ 7,499,897     $ 7,435,127     $ 6,972,380     $ 6,737,737     $ 6,727,139  
    Less: Preferred stock   354,345       354,345       354,345       209,691       209,691  
    Less: Goodwill and other intangible assets   1,990,276       1,997,597       2,004,414       2,012,580       2,020,405  
    Tangible common shareholders’ equity (non-GAAP) $ 5,155,276     $ 5,083,185     $ 4,613,621     $ 4,515,466     $ 4,497,043  
    Tangible book value per common share (non-GAAP) $ 9.21     $ 9.10     $ 9.06     $ 8.87     $ 8.84  
    Tangible common equity to tangible assets (non-GAAP):                  
    Tangible common shareholders’ equity (non-GAAP) $ 5,155,276     $ 5,083,185     $ 4,613,621     $ 4,515,466     $ 4,497,043  
    Total assets (GAAP)   61,865,655       62,491,691       62,092,332       62,058,974       61,000,188  
    Less: Goodwill and other intangible assets   1,990,276       1,997,597       2,004,414       2,012,580       2,020,405  
    Tangible assets (non-GAAP) $ 59,875,379     $ 60,494,094     $ 60,087,918     $ 60,046,394     $ 58,979,783  
    Tangible common equity to tangible assets (non-GAAP)   8.61 %     8.40 %     7.68 %     7.52 %     7.62 %
                                           

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

           
      March 31,   December 31,
      2025   2024
      (Unaudited)    
    Assets      
    Cash and due from banks $ 508,887     $ 411,412  
    Interest bearing deposits with banks   714,810       1,478,713  
    Investment securities:      
    Equity securities   74,425       71,513  
    Available for sale debt securities   3,658,704       3,369,724  
    Held to maturity debt securities (net of allowance for credit losses of $633 at March 31, 2025 and $647 at December 31, 2024)   3,545,328       3,531,573  
    Total investment securities   7,278,457       6,972,810  
    Loans held for sale (includes fair value of $8,427 at March 31, 2025 and $16,931 at December 31, 2024 for loans originated for sale)   27,377       25,681  
    Loans   48,657,128       48,799,711  
    Less: Allowance for loan losses   (578,200 )     (558,850 )
    Net loans   48,078,928       48,240,861  
    Premises and equipment, net   344,123       350,796  
    Lease right of use assets   334,013       328,475  
    Bank owned life insurance   733,135       731,574  
    Accrued interest receivable   238,326       239,941  
    Goodwill   1,868,936       1,868,936  
    Other intangible assets, net   121,340       128,661  
    Other assets   1,617,323       1,713,831  
    Total Assets $ 61,865,655     $ 62,491,691  
    Liabilities      
    Deposits:      
    Non-interest bearing $ 11,628,578     $ 11,428,674  
    Interest bearing:      
    Savings, NOW and money market   26,413,258       26,304,639  
    Time   11,924,008       12,342,544  
    Total deposits   49,965,844       50,075,857  
    Short-term borrowings   59,026       72,718  
    Long-term borrowings   2,904,567       3,174,155  
    Junior subordinated debentures issued to capital trusts   57,542       57,455  
    Lease liabilities   394,334       388,303  
    Accrued expenses and other liabilities   984,445       1,288,076  
    Total Liabilities   54,365,758       55,056,564  
    Shareholders’ Equity      
    Preferred stock, no par value; 50,000,000 authorized shares:      
    Series A (4,600,000 shares issued at March 31, 2025 and December 31, 2024)   111,590       111,590  
    Series B (4,000,000 shares issued at March 31, 2025 and December 31, 2024)   98,101       98,101  
    Series C (6,000,000 shares issued at March 31, 2025 and December 31, 2024)   144,654       144,654  
    Common stock (no par value, authorized 650,000,000 shares; issued 560,278,101 shares at March 31, 2025 and 558,786,093 shares at December 31, 2024)   196,520       195,998  
    Surplus   5,444,756       5,442,070  
    Retained earnings   1,634,690       1,598,048  
    Accumulated other comprehensive loss   (128,252 )     (155,334 )
    Treasury stock, at cost (250,000 common shares at March 31, 2025)   (2,162 )     —  
    Total Shareholders’ Equity   7,499,897       7,435,127  
    Total Liabilities and Shareholders’ Equity $ 61,865,655     $ 62,491,691  
                   

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

      Three Months Ended
      March 31,   December 31,   March 31,
      2025   2024   2024
    Interest Income          
    Interest and fees on loans $ 703,609     $ 750,667     $ 771,553  
    Interest and dividends on investment securities:          
    Taxable   63,898       55,983       35,797  
    Tax-exempt   4,702       4,803       4,796  
    Dividends   5,664       5,860       6,828  
    Interest on federal funds sold and other short-term investments   6,879       17,513       9,682  
    Total interest income   784,752       834,826       828,656  
    Interest Expense          
    Interest on deposits:          
    Savings, NOW and money market   200,221       214,489       232,506  
    Time   125,069       158,716       151,065  
    Interest on short-term borrowings   2,946       293       20,612  
    Interest on long-term borrowings and junior subordinated debentures   36,411       38,351       30,925  
    Total interest expense   364,647       411,849       435,108  
    Net Interest Income   420,105       422,977       393,548  
    (Credit) provision for credit losses for available for sale and held to maturity securities   (14 )     (429 )     (74 )
    Provision for credit losses for loans   62,675       106,965       45,274  
    Net Interest Income After Provision for Credit Losses   357,444       316,441       348,348  
    Non-Interest Income          
    Wealth management and trust fees   15,031       16,425       17,930  
    Insurance commissions   3,402       3,705       2,251  
    Capital markets   6,940       7,425       5,670  
    Service charges on deposit accounts   12,726       12,989       11,249  
    Gains on securities transactions, net   46       1       49  
    Fees from loan servicing   3,215       3,071       3,188  
    Gains (losses) on sales of loans, net   2,197       (4,698 )     1,618  
    Gains (losses) on sales of assets, net   43       (20 )     3,694  
    Bank owned life insurance   4,777       3,775       3,235  
    Other   9,917       8,529       12,531  
    Total non-interest income   58,294       51,202       61,415  
    Non-Interest Expense          
    Salary and employee benefits expense   142,618       137,117       141,831  
    Net occupancy expense   25,888       26,576       24,323  
    Technology, furniture and equipment expense   29,896       35,482       35,462  
    FDIC insurance assessment   12,867       14,002       18,236  
    Amortization of other intangible assets   8,019       8,373       9,412  
    Professional and legal fees   15,670       21,794       16,465  
    Amortization of tax credit investments   9,320       1,740       5,562  
    Other   32,340       33,498       29,019  
    Total non-interest expense   276,618       278,582       280,310  
    Income Before Income Taxes   139,120       89,061       129,453  
    Income tax expense (benefit)   33,062       (26,650 )     33,173  
    Net Income   106,058       115,711       96,280  
    Dividends on preferred stock   6,955       7,025       4,119  
    Net Income Available to Common Shareholders $ 99,103     $ 108,686     $ 92,161  
                           

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

      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
      Average       Avg.   Average       Avg.   Average       Avg.
    ($ in thousands) Balance   Interest   Rate   Balance   Interest   Rate   Balance   Interest   Rate
    Assets                                  
    Interest earning assets:                              
    Loans (1)(2) $ 48,654,921   $ 703,632     5.78 %   $ 49,730,130   $ 750,690     6.04 %   $ 50,246,591   $ 771,577     6.14 %
    Taxable investments (3)   7,100,958     69,562     3.92       6,504,106     61,843     3.80       5,094,978     42,625     3.35  
    Tax-exempt investments (1)(3)   552,291     5,952     4.31       565,877     6,080     4.30       579,842     6,071     4.19  
    Interest bearing deposits with banks   583,521     6,879     4.72       1,414,670     17,513     4.95       697,386     9,682     5.55  
    Total interest earning assets   56,891,691     786,025     5.53       58,214,783     836,126     5.75       56,618,797     829,955     5.86  
    Other assets   4,611,077             4,650,555             4,638,071        
    Total assets $ 61,502,768           $ 62,865,338           $ 61,256,868        
    Liabilities and shareholders’ equity                                  
    Interest bearing liabilities:                                  
    Savings, NOW and money market deposits $ 26,345,983   $ 200,221     3.04     $ 25,928,201   $ 214,489     3.31 %   $ 24,793,452   $ 232,506     3.75 %
    Time deposits   11,570,758     125,069     4.32       13,530,980     158,716     4.69       12,599,395     151,065     4.80  
    Short-term borrowings   307,637     2,946     3.83       72,504     293     1.62       1,537,879     20,612     5.36  
    Long-term borrowings (4)   3,006,331     36,411     4.84       3,234,264     38,351     4.74       2,625,862     30,925     4.71  
    Total interest bearing liabilities   41,230,709     364,647     3.54       42,765,949     411,849     3.85       41,556,588     435,108     4.19  
    Non-interest bearing deposits   11,222,562             11,266,899             11,183,127        
    Other liabilities   1,591,320             1,577,331             1,791,458        
    Shareholders’ equity   7,458,177             7,255,159             6,725,695        
    Total liabilities and shareholders’ equity $ 61,502,768           $ 62,865,338           $ 61,256,868        
                                       
    Net interest income/interest rate spread (5)     $ 421,378     1.99 %       $ 424,277     1.90 %       $ 394,847     1.67 %
    Tax equivalent adjustment       (1,273 )             (1,300 )             (1,299 )    
    Net interest income, as reported     $ 420,105             $ 422,977             $ 393,548      
    Net interest margin (6)         2.95             2.91             2.78  
    Tax equivalent effect         0.01             0.01             0.01  
    Net interest margin on a fully tax equivalent basis (6)         2.96 %           2.92 %           2.79 %
                                             

    _________

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

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

    Contact: Travis Lan
      Senior Executive Vice President and
      Chief Financial Officer
      973-686-5007

    The MIL Network –

  • MIL-OSI USA: Governor Newsom announces appointments 4.23.25

    Source: US State of California 2

    Apr 23, 2025

    SACRAMENTO – Governor Gavin Newsom today announced the following appointments:

    Annabelle Hopkins, of Sacramento, has been appointed Deputy Director of Government Affairs at the California Public Advocates Office. Hopkins has been Government Relations Manager at RWE Offshore Wind since 2024. She was Legislative Director at the Office of Assemblymember Jim Wood in the California State Assembly from 2022 to 2023. Hopkins held multiple positions in the Office of Senator Dave Min in the California State Senate from 2021 to 2022, including Legislative Director and Legislative Aide. She was a Senate Fellow in the Office of Senator Mike McGuire in the California State Senate from 2019 to 2020. Hopkins was the Finance Director/Policy Advisor for Audrey Denney for Congress from 2018 to 2019. She is a Board Member of FemDems and Young Professionals in Energy, Sacramento. Hopkins earned a Bachelor of Arts degree in Political Science and History from College of Wooster. This position does not require Senate confirmation, and compensation is $153,000. Hopkins is a Democrat.

    Mandi Posner, of Gold River, has been appointed Deputy Director of the Center for Health Care Quality at the California Department of Public Health. Posner has been Chief of Field Operations for the South Division of the Center for Health Care Quality at the California Department of Public Health since 2021, where she has held multiple positions since 2016, including Branch Chief of Field Operations for the South Division, Los Angeles County Contract Manager, Staff Services Manager for Fiscal Operations, and Associate Governmental Program Analyst. Posner is a Member and California Representative of the Association of Health Facility Survey Agencies. She earned a Bachelor of Science degree in Recreation Administration from California State University, Chico. This position does not require Senate confirmation, and the compensation is $183,840. Posner is a Democrat.

    Yang Lee, of Sacramento, has been appointed Chief of Data Analytics and Strategy at the California Department of Developmental Services. Lee has been Deputy Director and Chief Financial Officer at the California Department of Social Services since 2022, where he was previously Assistant Director from 2020 to 2022. He held multiple positions at the California Department of Finance from 2008 to 2020, including Principal Program Budget and Finance Budget Analyst. Lee was a Legislative Assistant in the Office of Assemblymember Loni Hancock in the California State Assembly from 2006 to 2008. Lee earned a Master of Public Policy Analysis degree and a Bachelor of Arts degree in Ethnic Studies from California State University, Sacramento. This position does not require Senate confirmation, and the compensation is $198,660. Lee is a Democrat. 

    Heather Leslie, of Sacramento, has been appointed Chief Counsel at the California Office of Energy Infrastructure Safety. Leslie has been the Assistant General Counsel at the California Natural Resources Agency since 2021. She was a Deputy Attorney General at the California Department of Justice, Office of the Attorney General from 2015 to 2021. Leslie earned a Juris Doctor degree from University of California, Los Angeles School of Law and a Bachelor of Arts degree in Political Science from University of California, Berkeley. This position does not require Senate confirmation, and compensation is $198,000. Leslie is a Democrat.

    Cindy Gustafson, of Tahoe City, has been appointed to the State Board of Fire Services. Gustafson has been the District Five County Supervisor for the County of Placer since 2019. She was the Chief Executive Officer of the North Lake Tahoe Resort Association from 2017 to 2018. Gustafson held multiple positions at the Tahoe City Public Utility District from 1991 to 2017, including Director of Resource Development and Community Relations, Assistant General Manager, and General Manager. She was a Commissioner at the California Fish and Game Commission from 2005 to 2009. Gustafson is a Member of Tahoe Fund. She earned a Bachelor of Arts degree in History from Gustavus Adolphus College. This position does not require Senate Confirmation and there is no compensation. Gustafson is registered without party preference.

    Hampus Idsater, of Thousand Oaks, has been appointed to the Boating and Waterways Commission. Idsater has been an Investment Manager at Suntex Marina Investors since 2022. He was a Finance and Business Development Director at Hamner, Jewell & Associates from 2020 to 2022. Idsater was a Vice President at Eight Roads from 2015 to 2020. He was an Investment Manager at Fosun International from 2013 to 2015. Idsater was an Analyst at Morgan Stanley from 2011 to 2013. He is a Member of the Marine Recreation Association and Toastmasters International. Idsater earned a Master of Arts degree in Economics from University of Oxford. This position requires Senate confirmation, and the compensation is $100 per diem. Idsater is a Democrat.

    Press Releases, Recent News

    Recent news

    Apr 23, 2025

    News What you need to know: California’s economy continues to dominate and grow at a faster rate than the world’s top economies, with new data showing it has overtaken Japan as the 4th largest economy in the world. SACRAMENTO — Governor Gavin Newsom today announced…

    Apr 23, 2025

    News What you need to know: California is investing $500 million to help add 1,000 clean school buses across the state, and demand for incentives supporting zero-emission buses and trucks has more than doubled year-over-year. SACRAMENTO – California’s transition to…

    Apr 23, 2025

    News What you need to know: More than 4 million California children will automatically receive SUN Bucks food benefits via EBT card starting in June. Each eligible child will receive $120 in food benefits. Sacramento, California – Governor Gavin Newsom announced today…

    MIL OSI USA News –

  • MIL-OSI USA: 1,000 more clean school buses coming soon to California roads as state sees big demand for zero-emission buses and trucks

    Source: US State of California 2

    Apr 23, 2025

    What you need to know: California is investing $500 million to help add 1,000 clean school buses across the state, and demand for incentives supporting zero-emission buses and trucks has more than doubled year-over-year.

    SACRAMENTO – California’s transition to zero-emission transportation is accelerating faster than ever thanks to incentives and investments from the state.

    Following an announcement last August on plans to expand California’s largest-in-the-nation zero-emission school bus fleet, Governor Gavin Newsom today announced that $500 million has been awarded for educational agencies to buy zero-emission school buses and chargers. 

    Governor Newsom also announced that California saw a 177% increase in the state’s Clean Truck and Bus Voucher Incentive Project (HVIP) from 2023 to 2024. This program is funded primarily with proceeds from the cap-and-trade program and provides point-of-sale discounts to make zero-emission trucks and buses more accessible for fleets and businesses. In February alone more than 200 HVIP-funded zero-emission trucks and buses were deployed with $31 million in incentives.

    California is paving the way to a cleaner, healthier future by investing in zero-emission vehicles across the state. From clean buses for kids in some of our most polluted communities to electric semi-trucks that provide the backbone for California businesses – we’re proving that clean transportation is here to stay.

    Governor Gavin Newsom

    Why it matters

    🚌 Clean school buses funded by the state are expected to reduce 18,000 metric tons of greenhouse gas emissions annually — equivalent to taking more than 4,000 cars off the road for a year. Over 70% of the zero-emission school buses in use are in California’s most pollution-burdened communities.

     While trucks total just 6% of vehicles on California’s roads, they account for over 35% of the state’s transportation emissions. Clean vehicles purchased through HVIP are helping to significantly cut emissions statewide, with 340+ million miles logged since the start of the program. while.

    Investing in clean school buses

    The Zero-Emissions School Bus and Infrastructure (ZESBI) project has selected 133 educational agencies to receive 1,000 zero-emission school buses and related charging infrastructure in rural, low-income, and disadvantaged school districts and other local educational entities. The grants are expected to be finalized by the end of the year. A map of awardees can be viewed here.

    “Cleaning up the state’s school bus fleet is central to California’s efforts to provide clean transportation in priority communities that are disproportionately hurt by air pollution,” said California Air Resources Board Chair Liane Randolph. “The vast majority of these grants will go to local educational agencies that serve these communities.”

    To date, California has provided more than $1.3 billion in incentives to school districts, funding more than 2,300 zero-emission school buses, of which 1,100 are already in use. More than 300 California school districts and local education agencies have purchased at least one zero-emission school bus – and a few have made the switch to a 100% clean fleet.

    “California has set important benchmarks for removing internal combustion vehicles from our roads and replacing them with clean transportation,” said California Energy Commission Chair David Hochschild. “CEC is helping school districts move in that direction by funding ZESBI.”

    Zero-emission school buses play a key role in California’s efforts to achieve carbon neutrality by 2045 and help protect children who are particularly vulnerable to the health impacts from diesel exhaust. In California, all school bus purchases made by school districts will need to be zero-emission technology by 2035, with an extension until 2045 for frontier local educational agencies in rural communities.

    Incentivizing clean trucks and buses

    Over 15 years, the state’s Clean Truck and Bus Voucher Incentive Project (HVIP) invested $754 million, helping 2,000 fleets deploy 10,000 clean trucks and buses. These vehicles have logged 340+ million miles while significantly cutting emissions statewide. Over 5,000 HVIP-funded ZEVs are in production to meet surging demand.

    HVIP is a CARB program administered by CALSTART, a nonprofit transportation organization. Sales of new zero-emission trucks, buses and vans doubled in 2023 over the previous year, representing one out of every six new vehicles sold for services including last-mile delivery, freight transportation, and school buses. 16,327 charging and hydrogen fueling points for zero-emission trucks and buses are installed across the state.

    Press Releases, Recent News

    Recent news

    Apr 23, 2025

    News What you need to know: More than 4 million California children will automatically receive SUN Bucks food benefits via EBT card starting in June. Each eligible child will receive $120 in food benefits. Sacramento, California – Governor Gavin Newsom announced today…

    Apr 23, 2025

    News What you need to know: 14,133 cases have been referred to district attorneys’ offices through a community grant investment proposed by Governor Gavin Newsom to root out organized retail crime and hold bad actors accountable. Sacramento, California – Marking a…

    Apr 22, 2025

    News SACRAMENTO – Governor Gavin Newsom today announced the following appointments:Claire Cullis, of Carmichael, has been appointed Deputy Secretary of Business and Consumer Relations at the California Business, Consumer Services, and Housing Agency. Cullis has been…

    MIL OSI USA News –

  • MIL-OSI United Kingdom: Future of Energy Security summit: Energy Secretary opening remarks

    Source: United Kingdom – Executive Government & Departments

    Speech

    Future of Energy Security summit: Energy Secretary opening remarks

    The Energy Secretary delivered opening remarks at the International Energy Agency (IEA) Future of Energy Security summit.

    Francine, thank you so much.  

    And distinguished delegates, on behalf of the UK government and the International Energy Agency, I want to welcome you all to this historic setting of Lancaster House and to London for this first global summit on the Future of Energy Security. 

    As Francine has said, there are numerous countries represented here – almost 60 countries represented here today.  

    And I want to thank each and every one of you who have made the trip here. We truly appreciate your presence and we really look forward to the discussions over the coming 2 days. 

    We also have leaders from more than 50 global businesses with us. 

    And I want to thank all of you for everything you do to help create energy security for our countries and our world.  

    And we also have NGOs and civil society groups from around the world who are here with us, who play an important role in ensuring accountability of governments.

    I also want to pay a specific thank you to the official partners of the summit: Iberdrola-Scottish Power, National Grid, SSE and Urenco.  

    And if I may, I want to also thank the teams at the International Energy Agency and across the UK government who have worked incredibly hard to pull this event together. It is some feat of organisation. 

    And I want if I may also to pay particular tribute to Fatih Birol. Fatih, your leadership of the IEA for nearly a decade now has been marked by your commitment to rigour, to values and to multilateral cooperation. That is why the IEA is so central to the global discussion on energy, and I want to thank you. Perhaps the audience could show our appreciation for Fatih and the work he does.  

    You’ve got much more interesting people than me to hear from in these coming sessions, but let me make a few remarks to frame our discussions over the next 2 days.  

    First, our starting point for this summit is that in an unstable and uncertain world, there can be no national or international security without energy security.   

    And indeed it is now more than 50 years since the IEA was founded in response to the oil crisis of 1973.

    Over that time, the challenges we face have changed.  

    But I think the principle underpinning the IEA’s work – that countries need to collaborate to secure the uninterrupted supply of energy at an affordable price – remains the same.  

    And in the years since Russia’s invasion of Ukraine we’ve been reminded in the UK, and indeed across Europe and the world of a simple truth:  

    That as long as energy can be weaponised against us, our countries and our citizens are vulnerable and exposed.  

    It is for this reason that energy security is also at the heart of economic security – because it is central to living standards, job creation and economic growth.  

    And we hope this summit marks an important moment for countries to come together and discuss what the shifting global landscape means for how we deliver energy security in this era.

    Second, the act of bringing together, which is an initiative that I’ve taken alongside Fatih and the IEA, I think stems from an underlying belief that can unite us all, which is there is huge benefit for us from cooperating on the basis of our shared interests.  

    I think it’s really important to say every country faces its own energy security challenges and its own constraints.  

    And each country will pursue its own pathway, following its national interest in securing its energy supplies.  

    Different pathways – and I think this is a really important point for this conference – different pathways for different nations should be respected.   

    And we will all get a chance to reflect on our different national circumstances in our discussions over the coming days.  

    But here is the key thing: whatever our national pathways, I do believe that we share a fundamental belief that shared challenges invite shared solutions.  

    Multilateral co-operation can make us stronger not weaker – in our own individual national interest.  

    Third point – hopefully this is also a uniting idea – I believe that we gathered here are the optimists about what we can achieve for our society. Business, government, civil society – I believe we are, in this energy sector, the optimists.  

    Abundant energy can raise living standards, economic growth and deliver for today’s and future generations of citizens. 

    For the UK, just to talk about us for a moment, there is an exciting vision of energy security and abundance from cheap, homegrown, low carbon power.  

    Following Russia’s invasion of Ukraine, we saw family finances, business finances and public finances wrecked as fossil fuel prices rocketed on the global markets, and therefore here in Britain.  

    Now oil and gas, including from our North Sea, will continue to play an important role in our energy system, and we really value our industry and the jobs it supports. But as with many countries, we are a price taker not a price maker in international fossil fuel markets.  

    So our vision of low carbon power goes well beyond the climate imperative — important as that is. Homegrown low carbon power is our nationally chosen route to energy security.  

    Solar power, wind power, tidal, geothermal, nuclear power – also an essential part of the low carbon opportunity.  

    These are often unlimited, low-cost power supplies which we can exploit for the benefit of our citizens.  

    So to be clear about this, ours is a hard-headed approach to the role of low carbon power as the route to energy security. 

    And I believe this isn’t just true for the UK – alongside a continuing important role for oil and gas, low carbon energy can play a critical role in delivering energy security for many countries around the world.  

    And it presents a solution to the issue of energy security that simply wasn’t true in the same way as a decade and a half ago – and this again is important – and that’s because of what many countries in this room, working with business, public and private sector together, have achieved.  

    The cost of solar globally has fallen by 90% since 2010.   

    Offshore wind by more than 60%.  

    That’s in part why last year, $2 trillion was invested in clean energy with 80% of new electricity generation met by renewables and nuclear.  

    Indeed, according to BNEF, for more than two-thirds of the world’s population, new renewables are the cheapest source of bulk power generation.  

    In the spirit of multilateralism, the UK is determined to work with others to accelerate this transition, including through our Global Clean Power Alliance, which the Prime Minister launched at the G20 last year.  

    Final point, let me finish by saying that at a time when so much of what is happening in the world looks so intractable, I hope we can carry this spirit of optimism into our deliberations.  

    And I hope genuinely that everyone here enjoys this event and your time in London. 

    I want to end with the following message from His Majesty The King that he has asked me to read out to you all because this summit is something that he was very much personally interested in.  

    And this is the message from King Charles: 

    As we all navigate the transition to cleaner energy for our planet and energy security for our citizens, summits such as these are of vital importance in facilitating shared learning between nations, particularly those in the global south and across the Commonwealth.  

    Events over recent years have shown that, when well-managed, the transition to more sustainable energy sources can itself lead to more resilient and secure energy systems.  

    While each country will follow its individual path, there are many shared challenges and opportunities on which we can work together, as partners. 

    And he ends by saying: 

    I wanted to take this opportunity to thank you all for participating in this summit on the future of energy security, and to send my warmest best wishes for productive discussions over the coming days.

    Ladies and gentlemen, thank you so much for your attendance, and now it’s my huge privilege to introduce the Executive Director of the IEA, Dr Fatih Birol.

    Updates to this page

    Published 24 April 2025

    MIL OSI United Kingdom –

  • MIL-OSI Russia: The Art of Management: All-Russian Forum Opens at the State University of Management

    Translation. Region: Russian Federal

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

    On April 23, the ceremonial opening of the V All-Russian Interuniversity Forum “The Art of Management: Science, Practice, Project Technologies” was held at the Center for Information Technologies of the State University of Management.

    The vice-rector of the State University of Management, Artem Terpugov, gave a welcoming speech.

    “Today’s forum is a unique opportunity for all participants to exchange best practices, present innovative approaches and discuss current issues of implementing project-based learning at universities, as well as developing students’ project activities. I am confident that the forum’s rich program will allow each participant to find useful contacts, gain new knowledge and inspiration for implementing their own projects,” the vice-rector concluded.

    The President of the Project Management Association “SOVNET” Alexander Tovb told the audience about the history of the organization, long-standing cooperation with the State University of Management and the importance of project-based learning.

    As part of the practical part, experts shared their experience in implementing joint projects, forming teams and establishing systematic work.

    Deputy Head of the Federal State Statistics Service for Moscow and the Moscow Region Natalia Alekseeva spoke about the cooperation between Mosstat and the State University of Management, Director of the Business Incubator Dmitry Rogov spoke in more detail about how interaction within the framework of project-based learning is established at our university, and Director of the Project Mentoring Center Ekaterina Illarionova introduced the principals of the organization of mentoring support at the State University of Management.

    Also speaking were the head of the Center for Project Entrepreneurship of IPI LAB LLC Olga Baranenkova, ITMO tracker-adviser Yulia Gaponenko, executive director of the non-profit organization “Mentors for Children” Nina Vorontsova and associate professor of the Department of Information Security of VolSU Yulia Bakhracheva.

    The practical part of the session was conducted by the head of the Center for Didactics of Professional Education of Moscow State Pedagogical University, Daria Vyunova, who helped those gathered test their theories and approaches to project-based learning on specific cases.

    At the same time, the Interuniversity Hackathon “Urban Development Technologies” has started working in the Scientific Library of the State University of Management, in which student interuniversity teams from different areas of training are participating. For 3 days, the students will work on problem cases of customer partners and develop a draft solution, which they will present to an expert jury consisting of specialists delegated by the customer partner and representatives of the Forum organizer.

    Let us recall that the State University of Management is holding the Forum for the fifth time and for the second year it is organizing it in cooperation with the project-methodical association “Association of project-oriented organizations of science and higher education” and the association of specialists and organizations in the field of project management “Association of project management “SOVNET”.

    You can read about how the forum was held in 2024 in this article.

    Subscribe to the TG channel “Our GUU” Date of publication: 04/24/2025

    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: TransUnion Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    • Exceeded first quarter 2025 financial guidance across all key financial metrics
    • Delivered 8 percent organic constant currency revenue growth (7 percent reported) led by U.S. Financial Services, Emerging Verticals and International
    • De-levered to 2.9x Leverage Ratio at quarter-end and repurchased $10 million shares through mid-April
    • Maintaining organic constant currency revenue growth guidance of 4.5 to 6 percent (4 to 5.5 percent reported revenue growth)

    CHICAGO, April 24, 2025 (GLOBE NEWSWIRE) — TransUnion (NYSE: TRU) (the “Company”) today announced financial results for the quarter ended March 31, 2025.

    First Quarter 2025 Results

    Revenue:

    • Total revenue for the quarter was $1,096 million, an increase of 7 percent (8 percent on a constant currency basis), compared with the first quarter of 2024.

    Earnings:

    • Net income attributable to TransUnion was $148 million for the quarter, compared with $65 million for the first quarter of 2024 primarily due to a $56 million reduction of a previously established accrual for a lawsuit that was dismissed in the first quarter of 2025. Diluted earnings per share was $0.75, compared with $0.33 in the first quarter of 2024. Net income attributable to TransUnion margin was 13.5 percent, compared with 6 percent in the first quarter of 2024.
    • Adjusted Net Income was $208 million for the quarter, compared with $179 million for the first quarter of 2024. Adjusted Diluted Earnings per Share was $1.05, compared with $0.92 in the first quarter of 2024.
    • Adjusted EBITDA was $397 million for the quarter, compared with $358 million for the first quarter of 2024, an increase of 11 percent (12 percent on a constant currency basis). Adjusted EBITDA margin was 36.2 percent, compared with 35.1 percent in the first quarter of 2024.

    “In the first quarter, TransUnion delivered strong results that again exceeded financial guidance,” said Chris Cartwright, President and CEO. “U.S. Markets revenue grew 9 percent against subdued market conditions, led by strong mortgage and accelerating non-mortgage Financial Services and Emerging Verticals growth. International grew 6 percent on a constant currency basis, with high-single digit growth across most markets and India up low-single digits as anticipated.”

    “We are maintaining our 2025 organic constant currency revenue guidance of 4.5 to 6 percent, balancing strong outperformance in the first quarter against increasing market risks. We are actively monitoring conditions but to-date have not experienced softening volumes in our business.”

    “We believe we are well-positioned to navigate potential economic softening. We have a proven track record of delivering revenue growth through economic cycles, supported by a diversified and high-growth portfolio across solutions, verticals and geographies. Should conditions deteriorate, we are prepared to prudently manage costs while prioritizing the completion of our business transformation to deliver structural cost savings and accelerate innovation.”

    First Quarter 2025 Segment Results

    Segment revenue and Adjusted EBITDA for the first quarter of 2025 and the related growth rates compared with the first quarter of 2024 were as follows:

     (in millions) First Quarter
    2025    		   Reported
    Growth Rate    		   Constant
    Currency
    Growth Rate
    U.S. Markets:          
    Financial Services $ 404     15 %   15 %
    Emerging Verticals   315     6 %   6 %
    Consumer Interactive   138     (1 )%   (1 )%
    Total U.S. Markets Revenue $ 857     9 %   9 %
               
    U.S. Markets Adjusted EBITDA $ 320     12 %   12 %
               
    International:          
    Canada $ 38     — %   7 %
    Latin America   33     — %   7 %
    United Kingdom   59     9 %   9 %
    Africa   17     12 %   10 %
    India   69     (3 )%   1 %
    Asia Pacific   27     7 %   8 %
    Total International Revenue $ 242     2 %   6 %
               
    International Adjusted EBITDA $ 110     3 %   7 %


    Liquidity and Capital Resources

    Cash and cash equivalents was $610 million at March 31, 2025 and $679 million at December 31, 2024.

    For the three months ended March 31, 2025, cash provided by operating activities was $53 million, compared with $54 million in 2024. The decrease in cash provided by operating activities was primarily due to the timing of accounts receivable collections and higher bonus payouts in 2025 compared with 2024, mostly offset by improved operating performance and lower interest expense. For the three months ended March 31, 2025, cash used in investing activities was $87 million, compared with $62 million in 2024. The increase in cash used in investing activities was primarily due to a current year investment in a note receivable and an increase in capital expenditures. For the three months ended March 31, 2025, capital expenditures were $68 million, compared with $62 million in 2024. Capital expenditures as a percent of revenue represented 6% for each of the three months ended March 31, 2025 and 2024. For the three months ended March 31, 2025, cash used in financing activities was $41 million, compared with $31 million in 2024. Cash used in financing activities was higher primarily due to stock buybacks in 2025.

    Second Quarter and Full Year 2025 Outlook

    Our guidance is based on a number of assumptions that are subject to change, many of which are outside of the control of the Company, including general macroeconomic conditions, interest rates and inflation. There are numerous evolving factors that we may not be able to accurately predict. There can be no assurance that the Company will achieve the results expressed by this guidance.

        Three Months Ended
    June 30, 2025    		   Twelve Months Ended
    December 31, 2025
    (in millions, except per share data)   Low   High   Low   High
    Revenue, as reported   $ 1,076     $ 1,095     $ 4,358     $ 4,417  
    Revenue growth1:                
    As reported     3 %     5 %     4 %     5.5 %
    Constant currency1, 2     4 %     6 %     5 %     6 %
    Organic constant currency1, 3     3 %     5 %     4.5 %     6 %
                     
    Net income attributable to TransUnion   $ 69     $ 77     $ 383     $ 411  
    Net income attributable to TransUnion growth   (18 )%   (9 )%     35 %     44 %
    Net income attributable to TransUnion margin     6.5 %     7.1 %     8.8 %     9.3 %
                     
    Diluted Earnings per Share   $ 0.35     $ 0.39     $ 1.92     $ 2.06  
    Diluted Earnings per Share growth   (20 )%   (10 )%     33 %     43 %
                     
    Adjusted EBITDA, as reported5   $ 375     $ 386     $ 1,549     $ 1,590  
    Adjusted EBITDA growth, as reported4     — %     3 %     3 %     6 %
    Adjusted EBITDA margin     34.8 %     35.3 %     35.6 %     36.0 %
                     
    Adjusted Diluted Earnings per Share5   $ 0.95     $ 0.99     $ 3.93     $ 4.08  
    Adjusted Diluted Earnings per Share growth   (4 )%     — %     — %     4 %
    1. Additional revenue growth assumptions:
      1. The impact of changing exchange rates is expected to be approximately 1 point of headwind for Q2 2025 and approximately 1 point of headwind for FY 2025.
      2. The impact of the recent acquisition is expected to have approximately 1 point of benefit for Q2 2025 and less than 1 point of benefit for FY 2025.
      3. The impact of mortgage is expected to be approximately 2 points of benefit for Q2 2025 and 2 points of benefit for FY 2025.
      4. Constant currency growth rates assume foreign currency exchange rates are consistent between years. This allows financial results to be evaluated without the impact of fluctuations in foreign currency exchange rates.
      5. Organic constant currency growth rates are constant currency growth excluding inorganic growth. Inorganic growth represents growth attributable to the first twelve months of activity for recent business acquisitions.
      6. Additional Adjusted EBITDA assumptions:
        1. The impact of changing foreign currency exchange rates is expected to have approximately 1 point of headwind for Q2 2025 and approximately 1 point of headwind for FY 2025.
        2. For a reconciliation of the above non-GAAP financial measures to the most directly comparable GAAP financial measures, refer to Schedule 7 of this Earnings Release.

          3. Earnings Webcast Details

          In conjunction with this release, TransUnion will host a conference call and webcast today at 8:30 a.m. Central Time to discuss the business results for the quarter and certain forward-looking information. This session and the accompanying presentation materials may be accessed at www.transunion.com/tru. A replay of the call will also be available at this website following the conclusion of the call.

          About TransUnion (NYSE: TRU)

          TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

          http://www.transunion.com/business

          Availability of Information on TransUnion’s Website

          Investors and others should note that TransUnion routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the TransUnion Investor Relations website. While not all of the information that the Company posts to the TransUnion Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in TransUnion to review the information that it shares on www.transunion.com/tru.

          Forward-Looking Statements

          This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of TransUnion’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those described in the forward-looking statements. Any statements made in this earnings release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements include information concerning possible or assumed future results of operations, including our guidance and descriptions of our business plans and strategies. These statements often include words such as “anticipate,” “expect,” “guidance,” “suggest,” “plan,” “believe,” “intend,” “estimate,” “target,” “project,” “should,” “could,” “would,” “may,” “will,” “forecast,” “outlook,” “potential,” “continues,” “seeks,” “predicts,” or the negatives of these words and other similar expressions.

          Factors that could cause actual results to differ materially from those described in the forward-looking statements, or that could materially affect our financial results or such forward-looking statements include:

        • macroeconomic effects and changes in market conditions, including the impact of tariffs, inflation, risk of recession, and industry trends and adverse developments in the debt, consumer credit and financial services markets, including the impact on the carrying value of our assets in all of the markets where we operate;
        • our ability to provide competitive services and prices;
        • our ability to retain or renew existing agreements with large or long-term customers;
        • our ability to maintain the security and integrity of our data;
        • our ability to deliver services timely without interruption;
        • our ability to maintain our access to data sources;
        • government regulation and changes in the regulatory environment;
        • litigation or regulatory proceedings;
        • our approach to the use of artificial intelligence;
        • our ability to effectively manage our costs;
        • our efforts to execute our transformation plan and achieve the anticipated benefits and savings;
        • our ability to maintain effective internal control over financial reporting or disclosure controls and procedures;
        • economic and political stability in the United States and risks associated with the international markets where we operate;
        • our ability to effectively develop and maintain strategic alliances and joint ventures;
        • our ability to timely develop new services and the market’s willingness to adopt our new services;
        • our ability to manage and expand our operations and keep up with rapidly changing technologies;
        • our ability to acquire businesses, successfully secure financing for our acquisitions, timely consummate our acquisitions, successfully integrate the operations of our acquisitions, control the costs of integrating our acquisitions and realize the intended benefits of such acquisitions;
        • our ability to protect and enforce our intellectual property, trade secrets and other forms of unpatented intellectual property;
        • our ability to defend our intellectual property from infringement claims by third parties;
        • the ability of our outside service providers and key vendors to fulfill their obligations to us;
        • further consolidation in our end-customer markets;
        • the increased availability of free or inexpensive consumer information;
        • losses against which we do not insure;
        • our ability to make timely payments of principal and interest on our indebtedness;
        • our ability to satisfy covenants in the agreements governing our indebtedness;
        • our ability to maintain our liquidity;
        • stock price volatility;
        • our dividend payments;
        • share repurchase plans;
        • dividend rate;
        • our reliance on key management personnel; and
        • changes in tax laws or adverse outcomes resulting from examination of our tax returns.

        There may be other factors, many of which are beyond our control, that may cause our actual results to differ materially from the forward-looking statements, including factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024, and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K filed with the Securities and Exchange Commission. You should evaluate all forward-looking statements made in this report in the context of these risks and uncertainties.

        The forward-looking statements contained in this earnings release speak only as of the date of this earnings release. We undertake no obligation to publicly release the result of any revisions to these forward-looking statements to reflect the impact of events or circumstances that may arise after the date of this earnings release.

         
        TRANSUNION AND SUBSIDIARIES
        Consolidated Balance Sheets (Unaudited)
        (in millions, except per share data)
         
            March 31,
        2025        		   December 31,
        2024
        Assets        
        Current assets:        
        Cash and cash equivalents   $ 609.9     $ 679.5  
        Trade accounts receivable, net of allowance of $24.4 and $19.9     882.3       798.9  
        Other current assets     326.2       323.4  
        Total current assets     1,818.4       1,801.8  
        Property, plant and equipment, net of accumulated depreciation and amortization of $527.6 and $506.3     199.8       203.5  
        Goodwill     5,162.7       5,144.3  
        Other intangibles, net of accumulated amortization of $2,421.7 and $2,294.5     3,205.6       3,257.5  
        Other assets     562.6       577.7  
        Total assets   $ 10,949.1     $ 10,984.8  
        Liabilities and stockholders’ equity        
        Current liabilities:        
        Trade accounts payable   $ 325.6     $ 294.6  
        Current portion of long-term debt     70.6       70.6  
        Other current liabilities     492.3       694.4  
        Total current liabilities     888.5       1,059.6  
        Long-term debt     5,060.2       5,076.6  
        Deferred taxes     386.4       415.3  
        Other liabilities     121.5       114.5  
        Total liabilities     6,456.6       6,666.0  
        Stockholders’ equity:        
        Preferred stock, $0.01 par value; 100.0 million shares authorized; none issued or outstanding as of March 31, 2025 and December 31, 2024, respectively     —       —  
        Common stock, $0.01 par value; 1.0 billion shares authorized at March 31, 2025 and December 31, 2024, 201.7 million and 201.5 million shares issued at March 31, 2025 and December 31, 2024, respectively, and 195.1 million and 194.9 million shares outstanding as of March 31, 2025 and December 31, 2024, respectively     2.0       2.0  
        Additional paid-in capital     2,595.1       2,558.9  
        Treasury stock at cost; 6.7 million and 6.6 million shares at March 31, 2025 and December 31, 2024, respectively     (340.1 )     (334.6 )
        Retained earnings     2,484.5       2,357.9  
        Accumulated other comprehensive loss     (355.7 )     (367.2 )
        Total TransUnion stockholders’ equity     4,385.8       4,217.0  
        Noncontrolling interests     106.7       101.8  
        Total stockholders’ equity     4,492.5       4,318.8  
        Total liabilities and stockholders’ equity   $ 10,949.1     $ 10,984.8  
         
        TRANSUNION AND SUBSIDIARIES
        Consolidated Statements of Operations (Unaudited)
        (in millions, except per share data)
         
            Three Months Ended March 31,
              2025       2024  
        Revenue   $ 1,095.7     $ 1,021.2  
        Operating expenses        
        Cost of services (exclusive of depreciation and amortization below)     445.6       406.3  
        Selling, general and administrative     256.8       305.6  
        Depreciation and amortization     138.9       134.0  
        Restructuring     —       18.2  
        Total operating expenses     841.4       864.1  
        Operating income     254.4       157.2  
        Non-operating income and (expense)        
        Interest expense     (56.1 )     (68.7 )
        Interest income     8.6       5.4  
        Earnings from equity method investments     4.3       4.7  
        Other income and (expense), net     (17.4 )     (15.7 )
        Total non-operating income and (expense)     (60.6 )     (74.1 )
        Income before income taxes     193.8       83.0  
        Provision for income taxes     (41.0 )     (13.0 )
        Net income     152.7       70.0  
        Less: net income attributable to noncontrolling interests     (4.7 )     (4.9 )
        Net income attributable to TransUnion   $ 148.1     $ 65.1  
                 
        Basic earnings per common share from:        
        Net income attributable to TransUnion   $ 0.76     $ 0.34  
        Diluted earnings per common share from:        
        Net income attributable to TransUnion   $ 0.75     $ 0.33  
        Weighted-average shares outstanding:        
        Basic     195.1       194.1  
        Diluted     197.3       195.3  

        As a result of displaying amounts in millions, rounding differences may exist in the table above.

         
        TRANSUNION AND SUBSIDIARIES
        Consolidated Statements of Cash Flows (Unaudited)
        (in millions)
         
            Three Months Ended March 31,
              2025       2024  
        Cash flows from operating activities:        
        Net income   $ 152.7     $ 70.0  
        Adjustments to reconcile net income to net cash provided by operating activities:        
        Depreciation and amortization     138.9       134.0  
        Loss on repayment of loans     —       0.7  
        Deferred taxes     (22.5 )     (27.1 )
        Stock-based compensation     30.3       24.1  
        Other     15.2       (1.2 )
        Changes in assets and liabilities:        
        Trade accounts receivable     (88.9 )     (60.7 )
        Other current and long-term assets     3.8       43.7  
        Trade accounts payable     29.7       28.7  
        Other current and long-term liabilities     (206.7 )     (158.2 )
        Cash provided by operating activities     52.5       54.0  
        Cash flows from investing activities:        
        Capital expenditures     (68.4 )     (62.4 )
        Proceeds from sale/maturities of other investments     0.2       —  
        Investments in nonconsolidated affiliates and notes receivable     (20.0 )     (1.2 )
        Other     1.6       1.2  
        Cash used in investing activities     (86.6 )     (62.4 )
        Cash flows from financing activities:        
        Proceeds from term loans     —       264.1  
        Repayments of term loans     —       (257.1 )
        Repayments of debt     (17.7 )     (14.6 )
        Debt financing fees     —       (4.7 )
        Dividends to shareholders     (22.6 )     (20.8 )
        Proceeds from issuance of common stock     10.6       12.4  
        Employee taxes paid on restricted stock units recorded as treasury stock     (5.5 )     (10.6 )
        Repurchase of common stock     (5.4 )     —  
        Cash used in financing activities     (40.6 )     (31.3 )
        Effect of exchange rate changes on cash and cash equivalents     5.1       (2.9 )
        Net change in cash and cash equivalents     (69.6 )     (42.6 )
        Cash and cash equivalents, beginning of period     679.5       476.2  
        Cash and cash equivalents, end of period   $ 609.9     $ 433.6  

        As a result of displaying amounts in millions, rounding differences may exist in the table above.

        TRANSUNION AND SUBSIDIARIES
        Non-GAAP Financial Measures

        We present Consolidated Adjusted EBITDA, Consolidated Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted Earnings per Share, Adjusted Provision for Income Taxes, Adjusted Effective Tax Rate and Leverage Ratio for all periods presented. These are important financial measures for the Company but are not financial measures as defined by GAAP. These financial measures should be reviewed in conjunction with the relevant GAAP financial measures and are not presented as alternative measures of GAAP. Other companies in our industry may define or calculate these measures differently than we do, limiting their usefulness as comparative measures. Because of these limitations, these non-GAAP financial measures should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP, including operating income, operating margin, effective tax rate, net income attributable to the Company, diluted earnings per share or cash provided by operating activities. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures are presented in the tables below.

        We present Consolidated Adjusted EBITDA, Consolidated Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted Earnings per Share, Adjusted Provision for Income Taxes and Adjusted Effective Tax Rate as supplemental measures of our operating performance because these measures eliminate the impact of certain items that we do not consider indicative of our cash operations and ongoing operating performance. These are measures frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies similar to ours.

        Our board of directors and executive management team use Adjusted EBITDA as an incentive compensation measure for most eligible employees and Adjusted Diluted Earnings per Share as an incentive compensation measure for certain of our senior executives.

        Under the credit agreement governing our Senior Secured Credit Facility, our ability to engage in activities such as incurring additional indebtedness, making investments and paying dividends is tied to our Leverage Ratio which is partially based on Adjusted EBITDA. Investors also use our Leverage Ratio to assess our ability to service our debt and make other capital allocation decisions.

        Consolidated Adjusted EBITDA

        Management has excluded the following items from net income attributable to TransUnion in order to calculate Adjusted EBITDA for the periods presented:

        • Net interest expense is the sum of interest expense and interest income as reported on our Consolidated Statements of Operations.
        • Provision for income taxes, as reported on our Consolidated Statements of Operations.
        • Depreciation and amortization, as reported on our Consolidated Statements of Operations.
        • Stock-based compensation is used as an incentive to engage and retain our employees. It is predominantly a non-cash expense. We exclude stock-based compensation because it may not correlate to the underlying performance of our business operations during the period since it is measured at the grant date fair value and it is subject to variability as a result of performance conditions and timing of grants. These expenses are reported within cost of services and selling, general and administrative on our Consolidated Statements of Operations.
        • Operating model optimization program represents employee separation costs, facility lease exit costs and other business process optimization expenses incurred in connection with the transformation plan discussed further in “Results of Operations – Factors Affecting Our Results of Operations” in our Quarterly Report on Form 10-Q for the three months ended March 31, 2025. We exclude these expenses as we believe they are not directly correlated to the underlying performance of our business. Further, these costs will vary and may not be comparable during the transformation initiative as we progress toward an optimized operating model. These costs are reported primarily in restructuring and selling, general and administrative on our Consolidated Statements of Operations.
        • Accelerated technology investment includes Project Rise and the final phase of our technology investment announced in November 2023. Project Rise was announced in February 2020 and was originally expected to be completed in 2022. Following our acquisition of Neustar in December 2021, we recognized the opportunity to take advantage of Neustar’s capabilities to enhance and complement our cloud-based technology already under development as part of Project Rise. As a result, we extended Project Rise’s timeline to 2024 and increased the total estimated cost to approximately $240 million. In November 2023, we announced our plans to further leverage Neustar’s technology to standardize and streamline our product delivery platforms and to build a single global platform for fulfillment of our product lines. The additional investment is expected to be approximately $90 million during 2024 and 2025 and represents the final phase of the technology investment in our global technology infrastructure and core customer applications. We expect that the accelerated technology investment will fundamentally transform our technology infrastructure by implementing a global cloud-based approach to streamline product development, increase the efficiency of ongoing operations and maintenance and enable a continuous improvement approach to avoid the need for another major technology overhaul in the foreseeable future. The unique effort to build a secure, reliable and performant hybrid cloud infrastructure requires us to dedicate separate resources in order to develop the new cloud-based infrastructure in parallel with our current on-premise environment by maintaining our existing technology team to ensure no disruptions to our customers. The costs associated with the accelerated technology investment are incremental and redundant costs that will not recur after the program has been completed and are not representative of our underlying operating performance. Therefore, we believe that excluding these costs from our non-GAAP measures provides a better reflection of our ongoing cost structure. These costs are primarily reported in cost of services and therefore do not include amounts that are capitalized as internally developed software.
        • Mergers and acquisitions, divestitures and business optimization expenses are non-recurring expenses associated with specific transactions (exploratory or executed) and consist of (i) transaction and integration costs, (ii) post-acquisition adjustments to contingent consideration or to assets and liabilities that occurred after the acquisition measurement period, (iii) fair value and impairment adjustments related to investments and call and put options, (iv) transition services agreement income, and (v) a loss on disposal of a business. We exclude these expenses as we believe they are not directly correlated to the underlying performance of our business operations and vary depending upon the timing of such transactions. These expenses are reported in costs of services, selling, general and administrative and other income and (expenses), net, on our Consolidated Statements of Operations.
        • Net other adjustments principally relate to: (i) deferred loan fee expense from debt prepayments and refinancing, (ii) currency remeasurement on foreign operations, (iii) other debt financing expenses consisting primarily of revolving credit facility deferred financing fee amortization and commitment fees and expenses associated with ratings agencies and interest rate hedging, (iv) certain legal and regulatory expenses, net, and (v) other non-operating (income) expense. We exclude these expenses as we believe they are not directly correlated to the underlying performance of our business and create variability between periods based on the nature and timing of the expense or income. These costs are reported in selling, general and administrative and in non-operating income and expense, net as applicable based on their nature on our Consolidated Statements of Operations.

        Consolidated Adjusted EBITDA Margin

        Management defines Consolidated Adjusted EBITDA Margin as Consolidated Adjusted EBITDA divided by total revenue as reported.

        Adjusted Net Income

        Management has excluded the following items from net income attributable to TransUnion in order to calculate Adjusted Net Income for the periods presented:

        • Amortization of certain intangible assets presents non-cash amortization expenses related to assets that arose from our 2012 change in control transaction and business combinations occurring after our 2012 change in control. We exclude these expenses as we believe they are not directly correlated to the underlying performance of our business operations and vary dependent upon the timing of the transactions that give rise to these assets. Amortization of intangible assets is included in depreciation and amortization on our Consolidated Statements of Operations.
        • Stock-based compensation (see Consolidated Adjusted EBITDA above)
        • Operating model optimization program (see Consolidated Adjusted EBITDA above)
        • Accelerated technology investment (see Consolidated Adjusted EBITDA above)
        • Mergers and acquisitions, divestiture and business optimization (see Consolidated Adjusted EBITDA above)
        • Net other is consistent with the definition in Consolidated Adjusted EBITDA above except that other debt financing expenses and certain other miscellaneous income and expense that are included in the adjustment to calculate Adjusted EBITDA are excluded in the adjustment made to calculate Adjusted Net Income.
        • Total adjustments for income taxes relates to the cumulative adjustments discussed below for Adjusted Provision for Income Taxes. This adjustment is made for the reasons indicated in Adjusted Provision for Income Taxes below. Adjustments related to the provision for income taxes are included in the line item by this name on our consolidated statement of operations.

        Adjusted Diluted Earnings Per Share

        Management defines Adjusted Diluted Earnings per Share as Adjusted Net Income divided by the weighted-average diluted shares outstanding.

        Adjusted Provision for Income Taxes

        Management has excluded the following items from our provision for income taxes for the periods presented:

        • Tax effect of above adjustments represents the income tax effect of the adjustments related to Adjusted Net Income described above. The tax rate applied to each adjustment is based on the nature of each line item. We include the tax effect of the adjustments made to Adjusted Net Income to provide a comprehensive view of our adjusted net income.
        • Excess tax expense (benefit) for stock-based compensation is the permanent difference between expenses recognized for book purposes and expenses recognized for tax purposes, in each case related to stock-based compensation expense. We exclude this amount from the Adjusted Provision for Income Taxes in order to be consistent with the exclusion of stock-based compensation from the calculation of Adjusted Net Income.
        • Other principally relates to (i) deferred tax adjustments, including rate changes, (ii) infrequent or unusual valuation allowance adjustments, (iii) return to provision, tax authority audit adjustments, and reserves related to prior periods, and (iv) other non-recurring items. We exclude these items because they create variability that impacts comparability between periods.

        Adjusted Effective Tax Rate

        Management defines Adjusted Effective Tax Rate as Adjusted Provision for Income Taxes divided by Adjusted income before income taxes. We calculate adjusted income before income taxes by excluding the pre-tax adjustments in the calculation of Adjusted Net Income discussed above and noncontrolling interest related to these pre-tax adjustments from income before income taxes.

        Leverage Ratio

        Management defines Leverage Ratio as net debt divided by Consolidated Adjusted EBITDA for the most recent twelve-month period including twelve months of Adjusted EBITDA from significant acquisitions. Net debt is defined as total debt less cash and cash equivalents as reported on the balance sheet as of the end of the period.

        This earnings release presents constant currency growth rates assuming foreign currency exchange rates are consistent between years. This allows financial results to be evaluated without the impact of fluctuations in foreign currency exchange rates. This earnings release also presents organic constant currency growth rates, which assumes consistent foreign currency exchange rates between years and also eliminates the impact of our recent acquisitions. This allows financial results to be evaluated without the impact of fluctuations in foreign currency exchange rates and the impacts of recent acquisitions.

        Free cash flow is defined as cash provided by operating activities less capital expenditures and is a measure we may refer to.

        Refer to Schedules 1 through 7 for a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measure.

         
        SCHEDULE 1
        TRANSUNION AND SUBSIDIARIES
        Revenue and Adjusted EBITDA growth rates as Reported, CC, and Organic CC
        (Unaudited)
         
            For the Three Months Ended March 31, 2025
        compared with
        the Three Months Ended March 31, 2024
            Reported   CC Growth1   Organic CC
        Growth2
        Revenue:            
        Consolidated   7.3 %   8.1 %   8.1 %
        U.S. Markets   8.6 %   8.6 %   8.6 %
        Financial Services   14.7 %   14.7 %   14.7 %
        Emerging Verticals   5.8 %   5.8 %   5.8 %
        Consumer Interactive   (0.8 )%   (0.8 )%   (0.8 )%
        International   2.5 %   6.0 %   6.0 %
        Canada   0.4 %   6.9 %   6.9 %
        Latin America   (0.5 )%   6.9 %   6.9 %
        United Kingdom   8.6 %   9.5 %   9.5 %
        Africa   11.9 %   9.5 %   9.5 %
        India   (3.3 )%   0.9 %   0.9 %
        Asia Pacific   7.0 %   8.0 %   8.0 %
                     
        Adjusted EBITDA:            
        Consolidated   10.9 %   12.3 %   12.3 %
        U.S. Markets   12.3 %   12.3 %   12.3 %
        International   2.8 %   7.3 %   7.3 %
        1. Constant Currency (“CC”) growth rates assume foreign currency exchange rates are consistent between years. This allows financial results to be evaluated without the impact of fluctuations in foreign currency exchange rates.
        2. We have no inorganic revenue or Adjusted EBITDA for the periods presented. Organic CC growth rate is the CC growth rate less the inorganic growth rate.
         
        SCHEDULE 2
        TRANSUNION AND SUBSIDIARIES
        Consolidated and Segment Revenue, Adjusted EBITDA, and Adjusted EBITDA Margin (Unaudited)
        (dollars in millions)
         
          Three Months Ended March 31,
            2025       2024  
        Revenue:      
        U.S. Markets gross revenue      
        Financial Services $ 403.6     $ 351.7  
        Emerging Verticals   314.9       297.5  
        Consumer Interactive   138.2       139.3  
        U.S. Markets gross revenue $ 856.6     $ 788.6  
               
        International gross revenue      
        Canada $ 37.8     $ 37.7  
        Latin America   32.8       32.9  
        United Kingdom   58.8       54.2  
        Africa   16.9       15.1  
        India   68.8       71.1  
        Asia Pacific   27.0       25.3  
        International gross revenue $ 242.2     $ 236.3  
               
        Total gross revenue $ 1,098.8     $ 1,024.9  
               
        Intersegment revenue eliminations      
        U.S. Markets $ (1.6 )   $ (2.3 )
        International   (1.5 )     (1.5 )
        Total intersegment revenue eliminations $ (3.1 )   $ (3.7 )
               
        Total revenue as reported $ 1,095.7     $ 1,021.2  
               
        Adjusted EBITDA:      
        U.S. Markets $ 320.1     $ 285.2  
        International   109.8       106.8  
        Corporate   (32.8 )     (33.9 )
        Adjusted EBITDA Margin:1      
        U.S. Markets   37.4 %     36.2 %
        International   45.3 %     45.2 %
        1. Segment Adjusted EBITDA Margins are calculated using segment gross revenue and segment Adjusted EBITDA. Consolidated Adjusted EBITDA Margin is calculated using total revenue as reported and consolidated Adjusted EBITDA.
          Three Months Ended March 31,
            2025       2024  
        Reconciliation of Net income attributable to TransUnion to consolidated Adjusted EBITDA:      
        Net income attributable to TransUnion $ 148.1     $ 65.1  
        Net interest expense   47.5       63.2  
        Provision for income taxes   41.0       13.0  
        Depreciation and amortization   138.9       134.0  
        EBITDA $ 375.5     $ 275.4  
        Adjustments to EBITDA:      
        Stock-based compensation   30.3       24.1  
        Mergers and acquisitions, divestitures and business optimization1   17.9       9.2  
        Accelerated technology investment2   20.0       18.5  
        Operating model optimization program3   9.8       24.4  
        Net other4   (56.4 )     6.5  
        Total adjustments to EBITDA $ 21.7     $ 82.8  
        Consolidated Adjusted EBITDA $ 397.1     $ 358.2  
               
        Net income attributable to TransUnion margin   13.5 %     6.4 %
        Consolidated Adjusted EBITDA margin5   36.2 %     35.1 %

        As a result of displaying amounts in millions, rounding differences may exist in the tables above and footnotes below.

        1.   Mergers and acquisitions, divestitures and business optimization consisted of the following adjustments:
            Three Months Ended March 31,
              2025       2024  
        Transaction and integration costs   $ 5.3     $ 2.2  
        Fair value and impairment adjustments     12.6       0.1  
        Post-acquisition adjustments     —       6.9  
        Total mergers and acquisitions, divestitures and business optimization   $ 17.9     $ 9.2  
        2.   Represents expenses associated with our accelerated technology investment to migrate to the cloud. There are three components of the accelerated technology investment: (i) building foundational capabilities, which includes establishing a modern, API-based and services-oriented software architecture, (ii) the migration of each application and customer data to the new enterprise platform, including the redundant software costs during the migration period, as well as the efforts to decommission the legacy system, and (iii) program enablement, which includes dedicated resources to support the planning and execution of the program. The amounts for each category of cost are as follows:
            Three Months Ended March 31,
              2025       2024  
        Foundational Capabilities   $ 7.4     $ 6.8  
        Migration Management     12.6       10.1  
        Program Enablement     —       1.7  
        Total accelerated technology investment   $ 20.0     $ 18.5  
        3.   Operating model optimization consisted of the following adjustments:
            Three Months Ended March 31,
              2025       2024  
        Employee separation   $ —     $ 16.8  
        Facility exit     —       1.4  
        Business process optimization     9.8       6.2  
        Total operating model optimization   $ 9.8     $ 24.4  
        4.   Net other consisted of the following adjustments: 
            Three Months Ended March 31,
              2025       2024  
        Deferred loan fee expense from debt prepayments and refinancing   $ (0.1 )   $ 3.1  
        Other debt financing expenses     0.5       0.6  
        Currency remeasurement on foreign operations     (0.6 )     2.6  
        Legal and regulatory expenses, net     (56.0 )     —  
        Other non-operating (income) expense     (0.3 )     0.2  
        Total other adjustments   $ (56.4 )   $ 6.5  
        5.   Consolidated Adjusted EBITDA margin is calculated by dividing Consolidated Adjusted EBITDA by total revenue.
         
        SCHEDULE 3
        TRANSUNION AND SUBSIDIARIES
        Adjusted Net Income and Adjusted Diluted Earnings Per Share (Unaudited)
        (in millions, except per share data)
         
            Three Months Ended March 31,
              2025       2024  
        Income attributable to TransUnion   $ 148.1     $ 65.1  
                 
        Weighted-average shares outstanding:        
        Basic     195.1       194.1  
        Diluted     197.3       195.3  
                 
        Basic earnings per common share from:        
        Net income attributable to TransUnion   $ 0.76     $ 0.34  
        Diluted earnings per common share from:        
        Net income attributable to TransUnion   $ 0.75     $ 0.33  
                 
        Reconciliation of Net income attributable to TransUnion to Adjusted Net Income:        
        Net income attributable to TransUnion   $ 148.1     $ 65.1  
        Adjustments before income tax items:        
        Amortization of certain intangible assets1     70.9       72.0  
        Stock-based compensation     30.3       24.1  
        Mergers and acquisitions, divestitures and business optimization2     17.9       9.2  
        Accelerated technology investment3     20.0       18.5  
        Operating model optimization program4     9.8       24.4  
        Net other5     (56.7 )     5.9  
        Total adjustments before income tax items   $ 92.3     $ 154.3  
        Total adjustments for income taxes6     (32.7 )     (40.4 )
        Adjusted Net Income   $ 207.6     $ 179.0  
                 
        Weighted-average shares outstanding:        
        Basic     195.1       194.1  
        Diluted     197.3       195.3  
                 
        Adjusted Earnings per Share:        
        Basic   $ 1.06     $ 0.92  
        Diluted   $ 1.05     $ 0.92  
            Three Months Ended March 31,
              2025       2024  
        Reconciliation of Diluted earnings per share from Net income attributable to TransUnion to Adjusted Diluted Earnings per Share:        
        Diluted earnings per common share from:        
        Net income attributable to TransUnion   $ 0.75     $ 0.33  
        Adjustments before income tax items:        
        Amortization of certain intangible assets1     0.36       0.37  
        Stock-based compensation     0.15       0.12  
        Mergers and acquisitions, divestitures and business optimization2     0.09       0.05  
        Accelerated technology investment3     0.10       0.09  
        Operating model optimization program4     0.05       0.13  
        Net other5     (0.29 )     0.03  
        Total adjustments before income tax items   $ 0.47     $ 0.79  
        Total adjustments for income taxes6     (0.17 )     (0.21 )
        Adjusted Diluted Earnings per Share   $ 1.05     $ 0.92  

        Each component of earnings per share is calculated independently, therefore, rounding differences exist in the table above.

        1.   Consists of amortization of intangible assets from our 2012 change-in-control transaction and amortization of intangible assets established in business acquisitions after our 2012 change-in-control transaction.
        2.   Mergers and acquisitions, divestitures and business optimization consisted of the following adjustments:
            Three Months Ended March 31,
              2025       2024  
        Transaction and integration costs   $ 5.3     $ 2.2  
        Fair value and impairment adjustments     12.6       0.1  
        Post-acquisition adjustments     —       6.9  
        Total mergers and acquisitions, divestitures and business optimization   $ 17.9     $ 9.2  
        3.   Represents expenses associated with our accelerated technology investment to migrate to the cloud. There are three components of the accelerated technology investment: (i) building foundational capabilities which includes establishing a modern, API-based and services-oriented software architecture, (ii) the migration of each application and customer data to the new enterprise platform, including the redundant software costs during the migration period, as well as the efforts to decommission the legacy system, and (iii) program enablement, which includes dedicated resources to support the planning and execution of the program. The amounts for each category of cost are as follows:
            Three Months Ended March 31,
              2025       2024  
        Foundational Capabilities   $ 7.4     $ 6.8  
        Migration Management     12.6       10.1  
        Program Enablement     —       1.7  
        Total accelerated technology investment   $ 20.0     $ 18.5  
        4.   Operating model optimization consisted of the following adjustments:
            Three Months Ended March 31,
              2025       2024  
        Employee separation   $ —     $ 16.8  
        Facility exit     —       1.4  
        Business process optimization     9.8       6.2  
        Total operating model optimization   $ 9.8     $ 24.4  
        5.   Net other consisted of the following adjustments:
            Three Months Ended March 31,
              2025       2024  
        Deferred loan fee expense from debt prepayments and refinancing   $ (0.1 )   $ 3.1  
        Currency remeasurement on foreign operations     (0.6 )     2.6  
        Legal and regulatory expenses, net     (56.0 )     —  
        Other non-operating (income) and expense     —       0.2  
        Total other adjustments   $ (56.7 )   $ 5.9  
        6.   Total adjustments for income taxes represents the total of adjustments discussed to calculate the Adjusted Provision for Income Taxes.
         
        SCHEDULE 4
        TRANSUNION AND SUBSIDIARIES
        Adjusted Provision for Income Taxes and Adjusted Effective Tax Rate (Unaudited)
        (dollars in millions)
         
          Three Months Ended March 31,
            2025       2024  
        Income before income taxes $ 193.8     $ 83.0  
        Total adjustments before income tax items from Schedule 3   92.3       154.3  
        Adjusted income before income taxes $ 286.1     $ 237.3  
               
        Reconciliation of Provision for income taxes to Adjusted Provision for Income Taxes:      
        Provision for income taxes   (41.0 )     (13.0 )
        Adjustments for income taxes:      
        Tax effect of above adjustments   (32.3 )     (35.0 )
        Eliminate impact of excess tax expense for stock-based compensation   0.5       1.0  
        Other1   (0.9 )     (6.4 )
        Total adjustments for income taxes $ (32.7 )   $ (40.4 )
        Adjusted Provision for Income Taxes $ (73.7 )   $ (53.4 )
               
        Effective tax rate   21.2 %     15.7 %
        Adjusted Effective Tax Rate   25.8 %     22.5 %

        As a result of displaying amounts in millions, rounding differences may exist in the table above.

        1.   Other adjustments for income taxes include:
            Three Months Ended March 31,
              2025       2024  
        Deferred tax adjustments   $ (4.6 )   $ (5.1 )
        Valuation allowance adjustments     2.3       0.2  
        Return to provision, audit adjustments and reserves related to prior periods     1.0       (0.9 )
        Other adjustments     0.4       (0.5 )
        Total other adjustments   $ (0.9 )   $ (6.4 )
         
        SCHEDULE 5
        TRANSUNION AND SUBSIDIARIES
        Leverage Ratio (Unaudited)
        (dollars in millions)
         
            Trailing Twelve
        Months Ended
        March 31, 2025
        Reconciliation of Net income attributable to TransUnion to Consolidated Adjusted EBITDA:    
        Net income attributable to TransUnion   $ 367.3  
        Net interest expense     221.0  
        Provision for income taxes     126.9  
        Depreciation and amortization     542.6  
        EBITDA   $ 1,257.7  
        Adjustments to EBITDA:    
        Stock-based compensation   $ 127.5  
        Mergers and acquisitions, divestitures and business optimization1     35.2  
        Accelerated technology investment2     85.7  
        Operating model optimization program3     80.3  
        Net other4     (41.1 )
        Total adjustments to EBITDA   $ 287.6  
        Leverage Ratio Adjusted EBITDA   $ 1,545.3  
             
        Total debt   $ 5,130.8  
        Less: Cash and cash equivalents     609.9  
        Net Debt   $ 4,521.0  
             
        Ratio of Net Debt to Net income attributable to TransUnion     12.3  
        Leverage Ratio     2.9  

        As a result of displaying amounts in millions, rounding differences may exist in the table above.

        1.   Mergers and acquisitions, divestitures and business optimization consisted of the following adjustments:
            Trailing Twelve
        Months Ended
        March 31, 2025
        Transaction and integration costs   $ 14.2  
        Fair value and impairment adjustments     20.8  
        Post-acquisition adjustments     0.1  
        Total mergers and acquisitions, divestitures and business optimization   $ 35.2  
        2.   Represents expenses associated with our accelerated technology investment to migrate to the cloud. There are three components of the accelerated technology investment: (i) building foundational capabilities which includes establishing a modern, API-based and services-oriented software architecture, (ii) the migration of each application and customer data to the new enterprise platform including the redundant software costs during the migration period, as well as the efforts to decommission the legacy system, and (iii) program enablement, which includes dedicated resources to support the planning and execution of the program. The amounts for each category of cost are as follows:
            Trailing Twelve
        Months Ended
        March 31, 2025
        Foundational Capabilities   $ 36.3  
        Migration Management     45.6  
        Program Enablement     3.8  
        Total accelerated technology investment   $ 85.7  
        3.   Operating model optimization consisted of the following adjustments:
            Trailing Twelve
        Months Ended
        March 31, 2025
        Employee separation   $ 7.9  
        Facility exit     40.7  
        Business process optimization     31.7  
        Total operating model optimization   $ 80.3  
        4.   Net other consisted of the following adjustments:
            Trailing Twelve
        Months Ended
        March 31, 2025
        Deferred loan fee expense from debt prepayments and refinancings   $ 14.6  
        Other debt financing expenses     2.3  
        Currency remeasurement on foreign operations     (1.1 )
        Legal and regulatory expenses, net     (56.0 )
        Other non-operating (income) and expense     (1.0 )
        Total other adjustments   $ (41.1 )
         
        SCHEDULE 6
        TRANSUNION AND SUBSIDIARIES
        Segment Depreciation and Amortization (Unaudited)
        (in millions)
         
          Three Months Ended March 31,
            2025       2024  
               
        U.S. Markets $ 101.2     $ 100.8  
        International   36.6       32.2  
        Corporate   1.1       1.0  
        Total depreciation and amortization $ 138.9     $ 134.0  

        As a result of displaying amounts in millions, rounding differences may exist in the table above.

         
        SCHEDULE 7
        TRANSUNION AND SUBSIDIARIES
        Reconciliation of Non-GAAP Guidance (Unaudited)
        (in millions, except per share data)
         
          Three Months Ended
        June 30, 2025        		   Twelve Months Ended
        December 31, 2025
          Low   High   Low   High
        Guidance reconciliation of Net income attributable to TransUnion to Adjusted EBITDA:              
        Net income attributable to TransUnion $ 69     $ 77     $ 383     $ 411  
        Interest, taxes and depreciation and amortization   220       224       917       929  
        EBITDA $ 290     $ 302     $ 1,299     $ 1,340  
        Stock-based compensation, mergers, acquisitions divestitures and business optimization-related expenses and other adjustments1   85       85       250       250  
        Adjusted EBITDA $ 375     $ 386     $ 1,549     $ 1,590  
                       
        Net income attributable to TransUnion margin   6.5 %     7.1 %     8.8 %     9.3 %
        Consolidated Adjusted EBITDA margin2   34.8 %     35.3 %     35.6 %     36.0 %
                       
        Guidance reconciliation of Diluted earnings per share to Adjusted Diluted Earnings per Share:              
        Diluted earnings per share $ 0.35     $ 0.39     $ 1.92     $ 2.06  
        Adjustments to diluted earnings per share1   0.60       0.60       2.00       2.01  
        Adjusted Diluted Earnings per Share $ 0.95     $ 0.99     $ 3.93     $ 4.08  

        As a result of displaying amounts in millions, rounding differences may exist in the table above.

        1. These adjustments include the same adjustments we make to our Adjusted EBITDA and Adjusted Net Income as discussed in the Non-GAAP Financial Measures section of our Earnings Release.
        2. Consolidated Adjusted EBITDA margin is calculated by dividing Consolidated Adjusted EBITDA by total revenue.

        The MIL Network –

  • MIL-OSI: Amalgamated Financial Corp. Reports First Quarter 2025 Financial Results; $446 Million Total Deposit Growth; Strong Margin at 3.55%

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, April 24, 2025 (GLOBE NEWSWIRE) — Amalgamated Financial Corp. (the “Company” or “Amalgamated”) (Nasdaq: AMAL), the holding company for Amalgamated Bank (the “Bank”), today announced financial results for the first quarter ended March 31, 2025.

    First Quarter 2025 Highlights (on a linked quarter basis)

    • Net income of $25.0 million, or $0.81 per diluted share, compared to $24.5 million, or $0.79 per diluted share.
    • Core net income1 of $27.1 million, or $0.88 per diluted share, compared to $28.0 million, or $0.90 per diluted share.

           Deposits and Liquidity

    • On-balance sheet deposits increased $231.5 million, or 3.2%, to $7.4 billion.
    • Off-balance sheet deposits were $214.5 million at the end of the quarter, comprised of mainly not-for-profit deposits and some political deposits.
    • Including deposits held off-balance sheet, total deposits increased $445.9 million, or 6.2%, to $7.6 billion.
    • Political deposits increased $102.7 million, or 11%, to $1.1 billion, which includes both on and off-balance sheet deposits.
    • Average cost of deposits, excluding Brokered CDs and off-balance sheet deposits, increased 7 basis points to 159 basis points, where non-interest-bearing deposits comprised 39% of total deposits.
    • Cash and borrowing capacity totaled $3.3 billion (immediately available) plus unpledged securities (two-day availability) of $301.0 million for total liquidity within two-days of $3.6 billion.
    • Total two-day liquidity is 94% of total uninsured deposits, and 164% of uninsured non-super core deposits1.

          Assets and Margin

    • Net interest margin decreased 4 basis points to 3.55%, as expected.
    • Net interest income decreased by $2.5 million, or 3.4%, to $70.6 million, as expected.
    • Net loans receivable increased $7.0 million, or 0.2%, to $4.6 billion.
    • Net loans in growth mode (commercial and industrial, commercial real estate, and multifamily) increased $25.8 million or 0.9%.
    • Total PACE assessments grew $3.2 million, or 0.3%, to $1.2 billion.
    • The multifamily and commercial real estate loan portfolios totaled $1.8 billion and had a concentration of 199% to total risk based capital.

           Capital and Returns

    • Tier 1 leverage ratio of 9.22%, increased by 22 basis points, and Common Equity Tier 1 ratio of 14.27%.
    • Tangible common equity1 ratio increased to 8.73%, representing a tenth consecutive quarter of improvement.
    • Tangible book value per share1 increased $0.91, or 4.0%, to $23.51, and has increased $6.18, or 35.7% since September 2021.
    • Core return on average tangible common equity1 of 15.54% and core return on average assets1 of 1.33%.

    Share Repurchase

    • Repurchased approximately 105,000 shares, or $3.5 million of common stock, through March 31, 2025.
    • On March 10, 2025, a new $40 million share repurchase program was approved, under which approximately 75,000 shares have been repurchased from April 1 through April 22, 2025.

    Priscilla Sims Brown, President and Chief Executive Officer, commented, “All of our key earnings metrics came in strong and as expected, showing again that at Amalgamated, we do what we say we will. Our balance sheet boasts a low-risk asset profile including low commercial real-estate lending concentration, high levels of immediate and two-day liquidity, and return metrics near the top of our peer stack.”

    First Quarter Earnings

    Net income was $25.0 million, or $0.81 per diluted share, compared to $24.5 million, or $0.79 per diluted share, for the prior quarter. The $0.5 million increase during the quarter was primarily driven by a $3.1 million decrease in provision for credit losses, as well as a $0.8 million net valuation gain on residential loans sold during the quarter, compared to a $4.1 million reduction in fair value on residential loans moved to held for sale in the previous quarter. This was offset by an expected $2.5 million decrease in net interest income, an expected $1.9 million decrease in non-core income from solar tax equity investments, an expected $1.3 million decrease in non-core ICS One-Way Sell fee income from off-balance sheet deposits, and a $1.1 million increase in income tax expense.

    Core net income1 was $27.1 million, or $0.88 per diluted share, compared to $28.0 million, or $0.90 per diluted share, for the prior quarter. Excluded from core net income for the quarter, pre-tax, was $2.9 million of accelerated depreciation from solar tax equity investments, a $0.8 million net valuation gain from residential loans sold during the quarter, and $0.7 million of losses on the sale of securities. Excluded from core net income for the fourth quarter of 2024, pre-tax, was a $4.1 million reduction in fair value on a pool of lower yielding performing residential loans moved to held for sale, $1.3 million of ICS One-Way Sell fee income, $1.0 million of losses on the sale of securities, and $0.9 million of accelerated depreciation from solar tax equity investments.

    Net interest income was $70.6 million, compared to $73.1 million for the prior quarter. This decrease was expected as interest bearing off-balance sheet deposits moved back on balance sheet towards the end of the fourth quarter to replace largely non-interest bearing deposit outflow related to the election cycle conclusion and the full effect of interest rate resets from the prior quarter were recognized. Loan interest income and loan yields remained flat mainly as a $75.5 million increase in average loan balances was offset by paydowns on shorter-term high yielding commercial & industrial loans and a shorter day count in the quarter. Interest income on securities decreased $1.8 million driven by a decrease in the average balance of securities of $92.8 million. Interest expense on total interest-bearing deposits increased $0.3 million driven by an increase in the average balance of total interest-bearing deposits of $272.3 million partially offset by a 9 basis point decrease in cost. Additionally, while the average balance of borrowings increased $35.6 million, all short-term borrowings utilized at year-end were paid off over the course of the quarter. Remaining borrowings now substantially consist of lower-cost subordinated debt priced at 3.25% with a fixed rate maturity in November 2026.

    Net interest margin was 3.55%, an expected decrease of 4 basis points from 3.59% in the prior quarter. The decrease is largely due to a higher average balance of interest-bearing deposits as noted above, a $338.2 million decrease in non-interest bearing deposits, as well as a higher cost of funds. Prepayment penalties had no impact on net interest margin in the current quarter, compared to a one basis point impact in the prior quarter.

    Provision for credit losses totaled an expense of $0.6 million, compared to an expense of $3.7 million in the prior quarter. The expense in the first quarter was primarily driven by charge-offs on the consumer solar and small business portfolios, as well as increases in reserves for one leveraged commercial and industrial loan, offset by improvements in macro-economic forecasts used in the CECL model, primarily related to the consumer solar loan portfolio, which can be volatile.

    Non-interest income was $6.4 million, compared to $4.8 million in the prior quarter. Excluding all non-core income adjustments noted above, core non-interest income1 was $9.1 million, compared to $9.5 million in the prior quarter. The decrease was primarily related to lower commercial banking fees, offset by modestly higher income from Trust fees.

    Non-interest expense was $41.7 million, an increase of $0.5 million from the prior quarter. Core non-interest expense1 was $41.5 million, an increase of $0.4 million from the prior quarter. This was mainly driven by a $2.1 million increase in professional fees related to expected increases in digital transformation deployment and partnership costs to evaluate growth requirements and other advisory services. This increase is mainly offset by a $1.4 million decrease in compensation and employee benefits expense.

    Provision for income tax expense was $9.7 million, compared to $8.6 million for the prior quarter. The effective tax rate was 28.0%, compared to 25.9% in the prior quarter. The increase in the tax rate was the result of a higher annual effective tax rate for 2025, in addition to discrete tax items related to a city and state tax examination which led to a net increase in tax provision in the current quarter, as well as additional discrete items in the prior quarter which resulted in a tax benefit. Excluding these discrete items, the tax rate would have been 27.0%, compared to 26.6% in the prior quarter.

    Balance Sheet Quarterly Summary

    Total assets were $8.3 billion at March 31, 2025, compared to $8.3 billion at December 31, 2024, keeping the balance sheet neutral. Notable changes within individual balance sheet line items include a $65.1 million increase in securities and a $17.9 million increase in resell agreements to solidify net interest income, as well as a $7.0 million increase in net loans receivable. On the liabilities side, on-balance sheet deposits increased by $231.5 million while borrowings decreased by $244.7 million. Off-balance sheet deposits increased to $214.5 million in the quarter.

    Total net loans receivable at March 31, 2025 were $4.6 billion, an increase of $7.0 million, or 0.2% for the quarter. The increase in loans is primarily driven by a $20.3 million increase in multifamily loans, and a $7.8 million increase in commercial and industrial loans, offset by a $2.4 million decrease in commercial real estate loans, a $8.9 million decrease in consumer solar loans, and a $9.8 million decrease in residential loans. During the quarter, criticized or classified loans decreased $12.0 million, largely related to payoffs of three delinquent commercial and industrial loans totaling $10.1 million, the upgrade of one $1.4 million commercial & industrial loan, charge-offs of small business loans totaling $0.8 million, and a decrease of $4.5 million in residential and consumer substandard loans. This was offset by the downgrade of one $4.2 million commercial & industrial loan to special mention, and additional downgrades of small business loans totaling $1.0 million.

    Total on-balance sheet deposits at March 31, 2025 were $7.4 billion, an increase of $231.5 million, or 3.2%, during the quarter. Including accounts currently held off-balance sheet, deposits held by politically active customers, such as campaigns, PACs, advocacy-based organizations, and state and national party committees were $1.1 billion as of March 31, 2025, an increase of $102.7 million during the quarter. Non-interest-bearing deposits represented 39% of average total deposits and 39% of ending total deposits for the quarter, contributing to an average cost of total deposits of 159 basis points. Super-core deposits1 totaled approximately $4.0 billion, had a weighted average life of 18 years, and comprised 54% of total deposits, excluding Brokered CDs. Total uninsured deposits were $3.9 billion, comprising 52% of total deposits.

    Nonperforming assets totaled $33.9 million, or 0.41% of period-end total assets at March 31, 2025, an increase of $8.0 million, compared with $25.9 million, or 0.31% on a linked quarter basis. The increase in nonperforming assets was primarily driven by an $11.8 million increase in commercial & industrial non-accrual loans, including one $8.3 million commercial & industrial loan that was placed on non-accrual in the quarter. This was offset by the sale of $3.9 million in nonperforming residential loans that were reported as held-for-sale in the prior quarter.

    During the quarter, the allowance for credit losses on loans decreased $2.4 million to $57.7 million. The ratio of allowance to total loans was 1.23%, a decrease of 6 basis points from 1.29% in the fourth quarter of 2024. The decrease was primarily the result of improvements in the macroeconomic forecasts used in the CECL model, mainly related to the consumer solar loan portfolio, which can be volatile, offset by charge-offs on consumer solar and small business portfolios, as well as increases in reserves for one legacy leveraged commercial and industrial loan.

    Capital Quarterly Summary

    As of March 31, 2025, the Common Equity Tier 1 Capital ratio was 14.27%, the Total Risk-Based Capital ratio was 16.61%, and the Tier 1 Leverage Capital ratio was 9.22%, compared to 13.90%, 16.26% and 9.00%, respectively, as of December 31, 2024. Stockholders’ equity at March 31, 2025 was $736.0 million, an increase of $28.3 million during the quarter. The increase in stockholders’ equity was primarily driven by $25.0 million of net income for the quarter and a $11.3 million improvement in accumulated other comprehensive loss due to the tax-effected mark-to-market on available for sale securities, offset by $4.3 million in dividends paid at $0.14 per outstanding share.

    Tangible book value per share1 was $23.51 as of March 31, 2025 compared to $22.60 as of December 31, 2024. Tangible common equity1 improved to 8.73% of tangible assets, compared to 8.41% as of December 31, 2024.

    Conference Call

    As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its first quarter 2025 results today, April 24, 2025 at 11:00am (Eastern Time). The conference call can be accessed by dialing 1-877-407-9716 (domestic) or 1-201-493-6779 (international) and asking for the Amalgamated Financial Corp. First Quarter 2025 Earnings Call. A telephonic replay will be available approximately two hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers 1-412-317-6671 and providing the access code 13752421. The telephonic replay will be available until May 1, 2025.

    Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of the Company’s website at https://ir.amalgamatedbank.com/. The online replay will remain available for a limited time beginning immediately following the call.

    The presentation materials for the call can be accessed on the investor relations section of the Company’s website at https://ir.amalgamatedbank.com/.

    About Amalgamated Financial Corp.

    Amalgamated Financial Corp. is a Delaware public benefit corporation and a bank holding company engaged in commercial banking and financial services through its wholly-owned subsidiary, Amalgamated Bank. Amalgamated Bank is a New York-based full-service commercial bank and a chartered trust company with a combined network of five branches across New York City, Washington D.C., and San Francisco, and a commercial office in Boston. Amalgamated Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country’s oldest labor unions. Amalgamated Bank provides commercial banking and trust services nationally and offers a full range of products and services to both commercial and retail customers. Amalgamated Bank is a proud member of the Global Alliance for Banking on Values and is a certified B Corporation®. As of March 31, 2025, total assets were $8.3 billion, total net loans were $4.6 billion, and total deposits were $7.4 billion. Additionally, as of March 31, 2025, the trust business held $35.7 billion in assets under custody and $14.2 billion in assets under management.

    Non-GAAP Financial Measures

    This release (and the accompanying financial information and tables) refer to certain non-GAAP financial measures including, without limitation, “Core operating revenue,” “Core non-interest expense,” “Core non-interest income,” “Core net income,” “Tangible common equity,” “Average tangible common equity,” “Core return on average assets,” “Core return on average tangible common equity,” and “Core efficiency ratio.”

    Management utilizes this information to compare operating performance for March 31, 2025 versus certain periods in 2024 and to prepare internal projections. The Company believes these non-GAAP financial measures facilitate making period-to-period comparisons and are meaningful indications of operating performance. In addition, because intangible assets such as goodwill and other discrete items unrelated to core business, which are excluded, vary extensively from company to company, the Company believe that the presentation of this information allows investors to more easily compare results to those of other companies.

    The presentation of non-GAAP financial information, however, is not intended to be considered in isolation or as a substitute for GAAP financial measures. The Company strongly encourage readers to review the GAAP financial measures included in this release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this release with other companies’ non-GAAP financial measures having the same or similar names. Reconciliations of non-GAAP financial disclosures to comparable GAAP measures found in this release are set forth in the final pages of this release and also may be viewed on the Company’s website, amalgamatedbank.com.

    Terminology

    Certain terms used in this release are defined as follows:

    “Core efficiency ratio” is defined as “Core non-interest expense” divided by “Core operating revenue.” The Company believes the most directly comparable performance ratio derived from GAAP financial measures is an efficiency ratio calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income.

    “Core net income” is defined as net income after tax excluding gains and losses on sales of securities, ICS One-Way Sell fee income, changes in fair value on loans held-for-sale, gains on the sale of owned property, costs related to branch closures, restructuring/severance costs, acquisition costs, tax credits and accelerated depreciation on solar equity investments, and taxes on notable pre-tax items. The Company believes the most directly comparable GAAP financial measure is net income.

    “Core non-interest expense” is defined as total non-interest expense excluding costs related to branch closures, and restructuring/severance. The Company believes the most directly comparable GAAP financial measure is total non-interest expense.

    “Core non-interest income” is defined as total non-interest income excluding gains and losses on sales of securities, ICS One-Way Sell fee income, changes in fair value on loans held-for-sale, gains on the sale of owned property, and tax credits and accelerated depreciation on solar equity investments. The Company believes the most directly comparable GAAP financial measure is non-interest income.

    “Core operating revenue” is defined as total net interest income plus “core non-interest income”. The Company believes the most directly comparable GAAP financial measure is the total of net interest income and non-interest income.

    “Core return on average assets” is defined as “Core net income” divided by average total assets. The Company believes the most directly comparable performance ratio derived from GAAP financial measures is return on average assets calculated by dividing net income by average total assets.

    “Core return on average tangible common equity” is defined as “Core net income” divided by average “tangible common equity.” The Company believes the most directly comparable performance ratio derived from GAAP financial measures is return on average equity calculated by dividing net income by average total stockholders’ equity.

    “Super-core deposits” are defined as total deposits from commercial and consumer customers, with a relationship length of greater than 5 years. The Company believes the most directly comparable GAAP financial measure is total deposits.

    “Tangible assets” are defined as total assets excluding, as applicable, goodwill and core deposit intangibles. The Company believes the most directly comparable GAAP financial measure is total assets.

    “Tangible common equity”, and “Tangible book value” are defined as stockholders’ equity excluding, as applicable, minority interests, goodwill and core deposit intangibles. The Company believes that the most directly comparable GAAP financial measure is total stockholders’ equity.

    “Traditional securities portfolio” is defined as total investment securities excluding PACE assessments. The Company believes the most directly comparable GAAP financial measure is total investment securities.

    Forward-Looking Statements

    Statements included in this release that are not historical in nature are intended to be, and are hereby identified as, forward-looking statements within the meaning of the Private Securities Litigation Reform Act, Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified through the use of forward-looking terminology such as “may,” “will,” “anticipate,” “aspire,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “in the future,” “may” and “intend,” as well as other similar words and expressions of the future. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, any or all of which could cause actual results to differ materially from the results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to:

    1. uncertain conditions in the banking industry and in national, regional and local economies in core markets, which may have an adverse impact on business, operations and financial performance;
    2. deterioration in the financial condition of borrowers resulting in significant increases in credit losses and provisions for those losses;
    3. deposit outflows and subsequent declines in liquidity caused by factors that could include lack of confidence in the banking system, a deterioration in market conditions or the financial condition of depositors;
    4. changes in deposits, including an increase in uninsured deposits;
    5. ability to maintain sufficient liquidity to meet deposit and debt obligations as they come due, which may require that the Company sell investment securities at a loss, negatively impacting net income, earnings and capital;
    6. unfavorable conditions in the capital markets, which may cause declines in stock price and the value of investments;
    7. negative economic and political conditions that adversely affect the general economy, housing prices, the real estate market, the job market, consumer confidence, the financial condition of borrowers and consumer spending habits, which may affect, among other things, the level of non-performing assets, charge-offs and provision expense;
    8. fluctuations or unanticipated changes in the interest rate environment including changes in net interest margin or changes in the yield curve that affect investments, loans or deposits;
    9. the general decline in the real estate and lending markets, particularly in commercial real estate in the Company’s market areas, and the effects of the enactment of or changes to rent-control and other similar regulations on multi-family housing;
    10. potential implementation by the current presidential administration of a regulatory reform agenda that is significantly different from that of the prior presidential administration, impacting the rule making, supervision, examination and enforcement of the banking regulation agencies;
    11. changes in U.S. trade policies and other global political factors beyond the Company’s control, including the imposition of tariffs, which raise economic uncertainty, potentially leading to slower growth and a decrease in loan demand;
    12. the outcome of legal or regulatory proceedings that may be instituted against us;
    13. inability to achieve organic loan and deposit growth and the composition of that growth;
    14. composition of the Company’s loan portfolio, including any concentration in industries or sectors that may experience unanticipated or anticipated adverse conditions greater than other industries or sectors in the national or local economies in which the Company operates;
    15. inaccuracy of the assumptions and estimates the Company makes and policies that the Company implements in establishing the allowance for credit losses;
    16. changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments;
    17. any matter that would cause the Company to conclude that there was impairment of any asset, including intangible assets;
    18. limitations on the ability to declare and pay dividends;
    19. the impact of competition with other financial institutions, including pricing pressures and the resulting impact on results, including as a result of compression to net interest margin;
    20. increased competition for experienced members of the workforce including executives in the banking industry;
    21. a failure in or breach of operational or security systems or infrastructure, or those of third party vendors or other service providers, including as a result of unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches;
    22. increased regulatory scrutiny and exposure from the use of “big data” techniques, machine learning, and artificial intelligence;
    23. a downgrade in the Company’s credit rating;
    24. “greenwashing claims” against the Company and environmental, social, and governance (“ESG”) products and increased scrutiny and political opposition to ESG and diversity, equity, and inclusion (“DEI”) practices;
    25. any unanticipated or greater than anticipated adverse conditions (including the possibility of earthquakes, wildfires, and other natural disasters) affecting the markets in which the Company operates;
    26. physical and transitional risks related to climate change as they impact the business and the businesses that the Company finances;
    27. future repurchase of the Company’s shares through the Company’s common stock repurchase program; and
    28. descriptions of assumptions underlying or relating to any of the foregoing.

    Additional factors which could affect the forward-looking statements can be found in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the SEC and available on the SEC’s website at https://www.sec.gov/. The Company disclaims any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law.

    Investor Contact:
    Jamie Lillis
    Solebury Strategic Communications
    shareholderrelations@amalgamatedbank.com
    800-895-4172

    Consolidated Statements of Income (unaudited)
      Three Months Ended
      March 31,   December 31,   March 31,
    ($ in thousands)   2025       2024       2024  
    INTEREST AND DIVIDEND INCOME          
    Loans $ 57,843     $ 58,024     $ 51,952  
    Securities   41,653       43,448       42,390  
    Interest-bearing deposits in banks   1,194       1,113       2,592  
    Total interest and dividend income   100,690       102,585       96,934  
    INTEREST EXPENSE          
    Deposits   28,917       28,582       25,891  
    Borrowed funds   1,196       908       3,006  
    Total interest expense   30,113       29,490       28,897  
    NET INTEREST INCOME   70,577       73,095       68,037  
    Provision for credit losses   596       3,686       1,588  
    Net interest income after provision for credit losses   69,981       69,409       66,449  
    NON-INTEREST INCOME          
    Trust Department fees   4,191       3,971       3,854  
    Service charges on deposit accounts   3,438       5,337       6,136  
    Bank-owned life insurance income   626       661       609  
    Losses on sale of securities   (680 )     (1,003 )     (2,774 )
    Gain (loss) on sale of loans and changes in fair value on loans held-for-sale, net   832       (4,090 )     47  
    Equity method investments income (loss)   (2,508 )     (529 )     2,072  
    Other income   507       442       285  
    Total non-interest income   6,406       4,789       10,229  
    NON-INTEREST EXPENSE          
    Compensation and employee benefits   23,314       24,691       22,273  
    Occupancy and depreciation   3,293       3,376       2,904  
    Professional fees   4,739       2,674       2,376  
    Technology   5,619       5,299       4,629  
    Office maintenance and depreciation   629       578       663  
    Amortization of intangible assets   144       183       183  
    Advertising and promotion   51       314       1,219  
    Federal deposit insurance premiums   900       715       1,050  
    Other expense   2,961       3,313       2,855  
    Total non-interest expense   41,650       41,143       38,152  
    Income before income taxes   34,737       33,055       38,526  
    Income tax expense   9,709       8,564       11,277  
    Net income $ 25,028     $ 24,491     $ 27,249  
    Earnings per common share – basic $ 0.82     $ 0.80     $ 0.89  
    Earnings per common share – diluted $ 0.81     $ 0.79     $ 0.89  
    Consolidated Statements of Financial Condition
    ($ in thousands) March 31, 2025   December 31, 2024   March 31, 2024
    Assets (unaudited)       (unaudited)
    Cash and due from banks $ 4,196     $ 4,042     $ 3,830  
    Interest-bearing deposits in banks   61,518       56,707       151,374  
    Total cash and cash equivalents   65,714       60,749       155,204  
    Securities:          
    Available for sale, at fair value          
    Traditional securities   1,546,127       1,477,047       1,445,793  
    Property Assessed Clean Energy (“PACE”) assessments   161,147       152,011       82,258  
        1,707,274       1,629,058       1,528,051  
    Held-to-maturity, at amortized cost:          
    Traditional securities, net of allowance for credit losses of $47, $49, and $53, respectively   535,065       542,246       616,172  
    PACE assessments, net of allowance for credit losses of $654, $655, and $657, respectively   1,038,052       1,043,959       1,057,790  
        1,573,117       1,586,205       1,673,962  
               
    Loans held for sale   3,667       37,593       2,137  
    Loans receivable, net of deferred loan origination costs   4,677,506       4,672,924       4,423,780  
    Allowance for credit losses   (57,676 )     (60,086 )     (64,400 )
    Loans receivable, net   4,619,830       4,612,838       4,359,380  
               
    Resell agreements   41,651       23,741       131,242  
    Federal Home Loan Bank of New York (“FHLBNY”) stock, at cost   4,679       15,693       4,603  
    Accrued interest receivable   55,092       61,172       53,436  
    Premises and equipment, net   7,366       6,386       7,128  
    Bank-owned life insurance   108,652       108,026       106,137  
    Right-of-use lease asset   12,477       14,231       19,797  
    Deferred tax asset, net   33,799       42,437       49,171  
    Goodwill   12,936       12,936       12,936  
    Intangible assets, net   1,343       1,487       2,034  
    Equity method investments   5,639       8,482       14,801  
    Other assets   31,991       35,858       16,663  
    Total assets $ 8,285,227     $ 8,256,892     $ 8,136,682  
    Liabilities          
    Deposits $ 7,412,072     $ 7,180,605     $ 7,305,765  
    Borrowings   69,676       314,409       139,705  
    Operating leases   17,190       19,734       27,250  
    Other liabilities   50,293       34,490       47,024  
    Total liabilities   7,549,231       7,549,238       7,519,744  
    Stockholders’ equity          
    Common stock, par value $0.01 per share   309       308       307  
    Additional paid-in capital   288,539       288,656       287,198  
    Retained earnings   500,783       480,144       412,190  
    Accumulated other comprehensive loss, net of income taxes   (47,308 )     (58,637 )     (78,872 )
    Treasury stock, at cost   (6,327 )     (2,817 )     (4,018 )
    Total Amalgamated Financial Corp. stockholders’ equity   735,996       707,654       616,805  
    Noncontrolling interests   —       —       133  
    Total stockholders’ equity   735,996       707,654       616,938  
    Total liabilities and stockholders’ equity $ 8,285,227     $ 8,256,892     $ 8,136,682  
               
    Select Financial Data
      As of and for the
      Three Months Ended
      March 31,   December 31,   March 31,
    (Shares in thousands)   2025     2024     2024
    Selected Financial Ratios and Other Data:          
    Earnings per share          
    Basic $ 0.82   $ 0.80   $ 0.89
    Diluted   0.81     0.79     0.89
    Core net income (non-GAAP)          
    Basic $ 0.88   $ 0.91   $ 0.84
    Diluted   0.88     0.90     0.83
    Book value per common share (excluding minority interest) $ 23.98   $ 23.07   $ 20.22
    Tangible book value per share (non-GAAP) $ 23.51   $ 22.60   $ 19.73
    Common shares outstanding, par value $0.01 per share(1)   30,697     30,671     30,510
    Weighted average common shares outstanding, basic   30,682     30,677     30,476
    Weighted average common shares outstanding, diluted   30,946     30,976     30,737
               
    (1) 70,000,000 shares authorized; 30,940,480, 30,809,484, and 30,736,141 shares issued for the periods ended March 31, 2025, December 31, 2024, and March 31, 2024 respectively, and 30,696,940, 30,670,982, and 30,510,393 shares outstanding for the periods ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.
    Select Financial Data
      As of and for the   As of and for the
      Three Months Ended   Three Months Ended
      March 31,   December
    31,    		   March 31,   March 31,
      2025     2024     2024     2025     2024  
    Selected Performance Metrics:                  
    Return on average assets 1.22 %   1.17 %   1.36 %   1.22 %   1.36 %
    Core return on average assets (non-GAAP) 1.33 %   1.34 %   1.27 %   1.33 %   1.27 %
    Return on average equity 14.05 %   13.83 %   18.24 %   14.05 %   18.24 %
    Core return on average tangible common equity (non-GAAP) 15.54 %   16.13 %   17.59 %   15.54 %   17.59 %
    Average equity to average assets 8.71 %   8.48 %   7.44 %   8.71 %   7.44 %
    Tangible common equity to tangible assets (non-GAAP) 8.73 %   8.41 %   7.41 %   8.73 %   7.41 %
    Loan yield 5.00 %   5.00 %   4.76 %   5.00 %   4.76 %
    Securities yield 5.15 %   5.12 %   5.21 %   5.15 %   5.21 %
    Deposit cost 1.59 %   1.53 %   1.46 %   1.59 %   1.46 %
    Net interest margin 3.55 %   3.59 %   3.49 %   3.55 %   3.49 %
    Efficiency ratio(1) 54.10 %   52.83 %   48.75 %   54.10 %   48.75 %
    Core efficiency ratio (non-GAAP) 52.11 %   49.82 %   50.40 %   52.11 %   50.40 %
                       
    Asset Quality Ratios:                  
    Nonaccrual loans to total loans 0.70 %   0.45 %   0.75 %   0.70 %   0.75 %
    Nonperforming assets to total assets 0.41 %   0.31 %   0.42 %   0.41 %   0.42 %
    Allowance for credit losses on loans to nonaccrual loans 175.07 %   286.00 %   195.04 %   175.07 %   195.04 %
    Allowance for credit losses on loans to total loans 1.23 %   1.29 %   1.46 %   1.23 %   1.46 %
    Annualized net charge-offs to average loans 0.22 %   0.36 %   0.20 %   0.22 %   0.20 %
                       
    Capital Ratios:                  
    Tier 1 leverage capital ratio 9.22 %   9.00 %   8.29 %   9.22 %   8.29 %
    Tier 1 risk-based capital ratio 14.27 %   13.90 %   13.68 %   14.27 %   13.68 %
    Total risk-based capital ratio 16.61 %   16.26 %   16.35 %   16.61 %   16.35 %
    Common equity tier 1 capital ratio 14.27 %   13.90 %   13.68 %   14.27 %   13.68 %
                       
    (1)Efficiency ratio is calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income
    Loan and PACE Assessments Portfolio Composition
    (In thousands) At March 31, 2025   At December 31, 2024   At March 31, 2024
      Amount   % of total   Amount   % of total   Amount   % of total
    Commercial portfolio:                      
    Commercial and industrial $ 1,183,297     25.3 %   $ 1,175,490     25.2 %   $ 1,014,084     22.9 %
    Multifamily   1,371,950     29.3 %     1,351,604     28.9 %     1,175,467     26.6 %
    Commercial real estate   409,004     8.7 %     411,387     8.8 %     353,598     8.0 %
    Construction and land development   20,690     0.4 %     20,683     0.4 %     23,266     0.5 %
    Total commercial portfolio   2,984,941     63.8 %     2,959,164     63.3 %     2,566,415     58.0 %
                           
    Retail portfolio:                      
    Residential real estate lending   1,303,856     27.9 %     1,313,617     28.1 %     1,419,321     32.1 %
    Consumer solar   356,601     7.6 %     365,516     7.8 %     398,501     9.0 %
    Consumer and other   32,108     0.7 %     34,627     0.8 %     39,543     0.9 %
    Total retail portfolio   1,692,565     36.2 %     1,713,760     36.7 %     1,857,365     42.0 %
    Total loans held for investment   4,677,506     100.0 %     4,672,924     100.0 %     4,423,780     100.0 %
                           
    Allowance for credit losses   (57,676 )         (60,086 )         (64,400 )    
    Loans receivable, net $ 4,619,830         $ 4,612,838         $ 4,359,380      
                           
    PACE assessments:                      
    Available for sale, at fair value                      
    Residential PACE assessments   161,147     13.4 %     152,011     12.7 %     82,258     7.2 %
                           
    Held-to-maturity, at amortized cost                      
    Commercial PACE assessments   271,200     22.6 %     268,692     22.5 %     256,661     22.5 %
    Residential PACE assessments   767,507     64.0 %     775,922     64.8 %     801,786     70.3 %
    Total Held-to-maturity PACE assessments   1,038,707     86.6 %     1,044,614     87.3 %     1,058,447     92.8 %
    Total PACE assessments   1,199,854     100.0 %     1,196,625     100.0 %     1,140,705     100.0 %
                           
    Allowance for credit losses   (654 )         (655 )         (657 )    
    Total PACE assessments, net $ 1,199,200         $ 1,195,970         $ 1,140,048      
                           
                           
    Loans receivable, net and total PACE assessments, net as a % of Deposits   78.5 %         80.9 %         75.3 %    
    Loans receivable, net and total PACE assessments, net as a % of Deposits excluding Brokered CDs   78.5 %         80.9 %         77.0 %    
    Net Interest Income Analysis
      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
    (In thousands) Average
    Balance    		 Income / Expense Yield /
    Rate    		   Average
    Balance    		 Income / Expense Yield /
    Rate    		   Average
    Balance    		 Income / Expense Yield /
    Rate
                                       
    Interest-earning assets:                                  
    Interest-bearing deposits in banks $ 121,321   $ 1,194   3.99 %   $ 105,958   $ 1,113   4.18 %   $ 205,369   $ 2,592   5.08 %
    Securities(1)   3,220,590     40,867   5.15 %     3,313,349     42,632   5.12 %     3,170,356     41,064   5.21 %
    Resell agreements   30,169     786   10.57 %     50,938     816   6.37 %     79,011     1,326   6.75 %
    Loans receivable, net(2)   4,695,264     57,843   5.00 %     4,619,723     58,024   5.00 %     4,390,489     51,952   4.76 %
    Total interest-earning assets   8,067,344     100,690   5.06 %     8,089,968     102,585   5.04 %     7,845,225     96,934   4.97 %
    Non-interest-earning assets:                                  
    Cash and due from banks   5,045             6,291             5,068        
    Other assets   220,589             214,868             226,270        
    Total assets $ 8,292,978           $ 8,311,127           $ 8,076,563        
                                       
    Interest-bearing liabilities:                                  
    Savings, NOW and money market deposits $ 4,242,786   $ 26,806   2.56 %   $ 3,971,128   $ 26,329   2.64 %   $ 3,591,551   $ 21,872   2.45 %
    Time deposits   232,683     2,111   3.68 %     220,205     2,085   3.77 %     188,045     1,576   3.37 %
    Brokered CDs   —     —   0.00 %     11,822     169   5.69 %     190,240     2,443   5.16 %
    Total interest-bearing deposits   4,475,469     28,917   2.62 %     4,203,155     28,583   2.71 %     3,969,836     25,891   2.62 %
    Borrowings   134,340     1,196   3.61 %     98,768     908   3.66 %     288,093     3,006   4.20 %
    Total interest-bearing liabilities   4,609,809     30,113   2.65 %     4,301,923     29,491   2.73 %     4,257,929     28,897   2.73 %
    Non-interest-bearing liabilities:                                  
    Demand and transaction deposits   2,901,061             3,239,251             3,138,238        
    Other liabilities   59,728             65,580             79,637        
    Total liabilities   7,570,598             7,606,754             7,475,804        
    Stockholders’ equity   722,380             704,373             600,759        
    Total liabilities and stockholders’ equity $ 8,292,978           $ 8,311,127           $ 8,076,563        
                                       
    Net interest income / interest rate spread     $ 70,577   2.41 %       $ 73,094   2.31 %       $ 68,037   2.24 %
    Net interest-earning assets / net interest margin $ 3,457,535       3.55 %   $ 3,788,045       3.59 %   $ 3,587,296       3.49 %
                                       
    Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs $ 7,376,530       1.59 %   $ 7,430,584       1.52 %   $ 6,917,834       1.36 %
    Total deposits / total cost of deposits $ 7,376,530       1.59 %   $ 7,442,406       1.53 %   $ 7,108,074       1.46 %
    Total funding / total cost of funds $ 7,510,870       1.63 %   $ 7,541,174       1.56 %   $ 7,396,167       1.57 %

    (1) Includes Federal Home Loan Bank (FHLB) stock in the average balance, and dividend income on FHLB stock in interest income.
    (2) Includes prepayment penalty interest income in 1Q2025, 4Q2024, or 1Q2024 of $0, $121, and $18, respectively (in thousands).

    Deposit Portfolio Composition
      Three Months Ended
    (In thousands) March 31, 2025   December 31, 2024   March 31, 2024
      Ending
    Balance    		   Average
    Balance    		   Ending
    Balance    		   Average
    Balance    		   Ending
    Balance    		   Average
    Balance
    Non-interest-bearing demand deposit accounts $ 2,895,757   $ 2,901,061   $ 2,868,506   $ 3,239,251   $ 3,182,047   $ 3,138,238
    NOW accounts   187,078     177,827     179,765     174,963     200,900     197,659
    Money market deposit accounts   3,772,423     3,739,548     3,564,423     3,471,242     3,222,271     3,051,670
    Savings accounts   330,410     325,411     328,696     324,922     341,054     342,222
    Time deposits   226,404     232,683     239,215     220,205     197,265     188,045
    Brokered certificates of deposit (“CDs”)   —     —     —     11,822     162,228     190,240
    Total deposits $ 7,412,072   $ 7,376,530   $ 7,180,605   $ 7,442,405   $ 7,305,765   $ 7,108,074
                           
    Total deposits excluding Brokered CDs $ 7,412,072   $ 7,376,530   $ 7,180,605   $ 7,430,583   $ 7,143,537   $ 6,917,834
      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
    (In thousands) Average
    Rate
    Paid    (1)    		   Cost of
    Funds    		   Average
    Rate
    Paid    (1)    		   Cost of
    Funds    		   Average
    Rate
    Paid    (1)    		   Cost of
    Funds
                           
    Non-interest bearing demand deposit accounts 0.00 %   0.00 %   0.00 %   0.00 %   0.00 %   0.00 %
    NOW accounts 0.72 %   0.70 %   0.72 %   0.81 %   1.05 %   1.03 %
    Money market deposit accounts 2.73 %   2.76 %   2.67 %   2.85 %   2.96 %   2.67 %
    Savings accounts 1.28 %   1.28 %   1.32 %   1.37 %   1.34 %   1.29 %
    Time deposits 3.52 %   3.68 %   3.54 %   3.77 %   3.44 %   3.37 %
    Brokered CDs — %   — %   — %   5.69 %   4.99 %   5.16 %
    Total deposits 1.57 %   1.59 %   1.52 %   1.53 %   1.60 %   1.46 %
                           
    Interest-bearing deposits excluding Brokered CDs 2.58 %   2.62 %   2.54 %   2.70 %   2.75 %   2.50 %

    (1) Average rate paid is calculated as the weighted average of spot rates on deposit accounts. Off-balance sheet deposits are excluded from all calculations shown.

    Asset Quality
    (In thousands) March 31, 2025   December 31, 2024   March 31, 2024
    Loans 90 days past due and accruing $ —   $ —   $ —
    Nonaccrual loans held for sale   989     4,853     989
    Nonaccrual loans – Commercial   27,872     16,041     24,228
    Nonaccrual loans – Retail   5,072     4,968     8,791
    Nonaccrual securities   7     8     31
    Total nonperforming assets $ 33,940   $ 25,870   $ 34,039
               
    Nonaccrual loans:          
    Commercial and industrial $ 12,786   $ 872   $ 8,750
    Commercial real estate   3,979     4,062     4,354
    Construction and land development   11,107     11,107     11,124
    Total commercial portfolio   27,872     16,041     24,228
               
    Residential real estate lending   1,375     1,771     4,763
    Consumer solar   3,479     2,827     3,852
    Consumer and other   218     370     176
    Total retail portfolio   5,072     4,968     8,791
    Total nonaccrual loans $ 32,944   $ 21,009   $ 33,019
               
    Credit Quality
      March 31, 2025   December 31, 2024   March 31, 2024
    ($ in thousands)          
    Criticized and classified loans          
    Commercial and industrial $ 55,157   $ 62,614   $ 62,242
    Multifamily   8,540     8,573     10,274
    Commercial real estate   3,979     4,062     8,475
    Construction and land development   11,107     11,107     11,124
    Residential real estate lending   1,375     6,387     4,763
    Consumer solar   3,479     2,827     3,852
    Consumer and other   218     370     176
    Total loans $ 83,855   $ 95,940   $ 100,906
    Criticized and classified loans to total loans          
    Commercial and industrial 1.18 %   1.34 %   1.41 %
    Multifamily 0.18 %   0.18 %   0.23 %
    Commercial real estate 0.09 %   0.09 %   0.19 %
    Construction and land development 0.24 %   0.24 %   0.25 %
    Residential real estate lending 0.03 %   0.14 %   0.11 %
    Consumer solar 0.07 %   0.06 %   0.09 %
    Consumer and other — %   0.01 %   0.01 %
    Total loans 1.79 %   2.06 %   2.29 %
      March 31, 2025   December 31, 2024   March 31, 2024
      Annualized
    net charge-
    offs
    (recoveries)
    to average
    loans    		   ACL to total portfolio balance   Annualized
    net charge-
    offs
    (recoveries)
    to average
    loans    		   ACL to total portfolio balance   Annualized
    net charge-
    offs
    (recoveries)
    to average
    loans    		   ACL to total portfolio
    balance
    Commercial and industrial 0.28 %   1.29 %   0.53 %   1.15 %   0.16 %   1.58 %
    Multifamily — %   0.23 %   0.15 %   0.21 %   — %   0.38 %
    Commercial real estate — %   0.39 %   — %   0.39 %   — %   0.40 %
    Construction and land development — %   6.05 %   (7.19) %   6.06 %   — %   3.67 %
    Residential real estate lending — %   0.73 %   0.28 %   0.71 %   — %   0.87 %
    Consumer solar 1.90 %   7.01 %   1.71 %   7.96 %   1.67 %   6.72 %
    Consumer and other 0.70 %   5.67 %   0.86 %   6.83 %   0.86 %   6.36 %
    Total loans 0.22 %   1.23 %   0.36 %   1.29 %   0.20 %   1.46 %
    Reconciliation of GAAP to Non-GAAP Financial Measures
    The information provided below presents a reconciliation of each of the non-GAAP financial measures to the most directly
    comparable GAAP financial measure.
      As of and for the
      Three Months Ended
    (in thousands) March 31, 2025   December 31, 2024   March 31, 2024
    Core operating revenue          
    Net Interest Income (GAAP) $ 70,577     $ 73,095     $ 68,037  
    Non-interest income (GAAP)   6,406       4,789       10,229  
    Add: Securities loss   680       1,003       2,774  
    Less: ICS One-Way Sell Fee Income(1)   (9 )     (1,347 )     (2,903 )
    Less: Changes in fair value of loans held-for-sale(6)   (837 )     4,117       —  
    Add: Tax (credits) depreciation on solar investments(3)   2,868       920       (1,808 )
    Core operating revenue (non-GAAP) $ 79,685     $ 82,577     $ 76,329  
               
    Core non-interest expense          
    Non-interest expense (GAAP) $ 41,650     $ 41,143     $ 38,152  
    Add: Gain on settlement of lease termination(4)   —       —       499  
    Less: Severance costs(5)   (125 )     (1 )     (184 )
    Core non-interest expense (non-GAAP) $ 41,525     $ 41,142     $ 38,467  
               
    Core net income          
    Net Income (GAAP) $ 25,028     $ 24,491     $ 27,249  
    Add: Securities loss   680       1,003       2,774  
    Less: ICS One-Way Sell Fee Income(1)   (9 )     (1,347 )     (2,903 )
    Less: Changes in fair value of loans held-for-sale(6)   (837 )     4,117       —  
    Less: Gain on settlement of lease termination(4)   —       —       (499 )
    Add: Severance costs(5)   125       1       184  
    Add: Tax (credits) depreciation on solar investments(3)   2,868       920       (1,808 )
    Less: Tax on notable items   (731 )     (1,217 )     607  
    Core net income (non-GAAP) $ 27,124     $ 27,968     $ 25,604  
               
    Tangible common equity          
    Stockholders’ equity (GAAP) $ 735,996     $ 707,654     $ 616,938  
    Less: Minority interest   —       —       (133 )
    Less: Goodwill   (12,936 )     (12,936 )     (12,936 )
    Less: Core deposit intangible   (1,343 )     (1,487 )     (2,034 )
    Tangible common equity (non-GAAP) $ 721,717     $ 693,231     $ 601,835  
               
    Average tangible common equity          
    Average stockholders’ equity (GAAP) $ 722,380     $ 704,373     $ 600,759  
    Less: Minority interest   —       (132 )     (133 )
    Less: Goodwill   (12,936 )     (12,936 )     (12,936 )
    Less: Core deposit intangible   (1,413 )     (1,575 )     (2,123 )
    Average tangible common equity (non-GAAP) $ 708,031     $ 689,730     $ 585,567  

    (1) Included in service charges on deposit accounts in the Consolidated Statements of Income
    (2) Included in other income in the Consolidated Statements of Income
    (3) Included in equity method investments income in the Consolidated Statements of Income
    (4) Included in occupancy and depreciation in the Consolidated Statements of Income
    (5) Included in compensation and employee benefits in the Consolidated Statements of Income
    (6) Included in changes in fair value of loans held-for-sale in the Consolidated Statements of Income

    1 Definitions are presented under “Non-GAAP Financial Measures”. Reconciliations of non-GAAP financial measures to the most comparable GAAP measure are set forth on the last page of the financial information accompanying this press release and may also be found on the Company’s website, www.amalgamatedbank.com.

    The MIL Network –

  • MIL-OSI: FirstCash Reports Record First Quarter Operating Results; Earnings per Share Increase 39% in Total and 34% on an Adjusted Basis; Operating Cash Flows Fund Store Additions, $60 Million of First Quarter Share Repurchases and Continued Quarterly Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    FORT WORTH, Texas, April 24, 2025 (GLOBE NEWSWIRE) — FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (Nasdaq: FCFS), the leading international operator of more than 3,000 retail pawn stores and a leading provider of retail point-of-sale payment solutions, today announced operating results for the three month period ended March 31, 2025. The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.38 per share, which will be paid in May 2025.

    Mr. Rick Wessel, chief executive officer, stated, “FirstCash posted record first quarter results, driven by the continued revenue and earnings growth from core pawn operations coupled with strong operating margins in the AFF POS payment solutions segment. Resulting first quarter net income grew 36% on a GAAP basis and 32% on an adjusted basis.

    “Demand for pawn loans was robust during the quarter in both the U.S. and Latin America, with ending same-store pawn receivables increasing 13% in the U.S. and 14% in Latin America (local currency basis) versus last year. This marked seven consecutive quarters of double-digit same-store receivable growth in the U.S. segment which drove a 17% increase in earnings from the Company’s largest operating segment.

    “Driven by a 19% increase in the number of merchant locations and further diversification outside of the furniture vertical, AFF delivered strong results as well, with earnings growth benefiting from solid credit performance and significant cost reductions. Excluding certain furniture retailers that closed last year due to bankruptcies, the number of active doors increased 29%, which should drive future revenue growth with greater merchant vertical diversification.

    “Strong cash flows for the first quarter provided funding for the addition of 12 pawn locations, further purchases of store real estate and $60 million of stock repurchases in addition to the ongoing quarterly cash dividend. These investments are expected to deliver further earnings accretion in 2025 and beyond.”

    This release contains adjusted financial measures, which exclude certain non-operating and/or non-cash income and expenses, that are non-GAAP financial measures. Please refer to the descriptions and reconciliations to GAAP of these and other non-GAAP financial measures at the end of this release.

        Three Months Ended March 31,
        As Reported (GAAP)   Adjusted (Non-GAAP)
    In thousands, except per share amounts     2025       2024       2025       2024  
    Revenue   $ 836,423     $ 836,370     $ 836,423     $ 836,370  
    Net income   $ 83,591     $ 61,368     $ 92,781     $ 70,189  
    Diluted earnings per share   $ 1.87     $ 1.35     $ 2.07     $ 1.55  
    EBITDA (non-GAAP measure)   $ 162,961     $ 132,587     $ 162,880     $ 131,592  
    Weighted-average diluted shares     44,789       45,387       44,789       45,387  


    Consolidated Operating Highlights

    • Diluted earnings per share for the first quarter increased 39% over the prior-year quarter on a GAAP basis while adjusted diluted earnings per share increased 34% compared to the prior-year quarter.
    • Net income for the first quarter increased 36% over the prior-year quarter on a GAAP basis while adjusted net income increased 32% compared to the prior-year quarter.
    • Gross revenues totaled $836 million in the first quarter, flat on a U.S. dollar basis and up 4% on a constant currency basis, compared to the prior-year quarter.
    • For the trailing twelve month period ended March 31, 2025:
      • Revenues totaled a record $3.4 billion
      • Net income totaled $281 million on a GAAP basis while adjusted net income was $325 million
      • Adjusted EBITDA was $590 million
      • Operating cash flows were $544 million and adjusted free cash flows (a non-GAAP measure) were $269 million

    Store Base and Platform Growth

    • Pawn Stores – 12 pawn locations were added in the first quarter through an acquisition and new store openings in three countries.
      • In the U.S., a high profile luxury buy/sell retail store was acquired in Las Vegas, Nevada, and one new location in Texas was opened during the first quarter.
      • There were 10 new store openings in Latin America in the first quarter which included nine locations in Mexico and one location in El Salvador.
      • The Company purchased the underlying real estate of seven U.S. stores during the quarter, bringing the total number of company owned locations to 407 at quarter end.
      • As of March 31, 2025, the Company had 3,023 locations, comprised of 1,197 U.S. locations and 1,826 locations in Latin America.
    • Retail POS Payment Solutions (AFF) Merchant Partnerships – At March 31, 2025, there were approximately 14,500 active retail and e-commerce merchant partner locations, representing a 19% increase in the number of active merchant locations compared to a year ago. Excluding furniture locations that closed in the prior year due to merchant partner bankruptcies, the number of active doors increased 29%.

    U.S. Pawn Segment Operating Results

    • Segment pre-tax operating income in the first quarter of 2025 was a record $113 million, an increase of $17 million, or 17%, compared to the prior-year quarter. The resulting segment pre-tax operating margin increased to a record 27% for the first quarter of 2025 compared to 26% for the prior-year quarter.
    • Pawn receivables increased 16% in total at March 31, 2025 compared to the prior year, driven by a 2% increase in the year-to-date weighted-average store count coupled with an impressive 13% increase in same-store pawn receivables. On a two-year stacked basis, same-store pawn receivables were up 27%.
    • Pawn loan fees increased 12% for the first quarter, while on a same-store basis, they increased 10% compared to the respective prior-year period.
    • Retail merchandise sales increased 6% in the first quarter of 2025 compared to the prior-year quarter, while same-store retail sales increased 2% compared to the prior-year quarter.
    • Retail sales margins increased to 42% for the first quarter compared to 41% in the prior-year quarter.
    • Annualized inventory turnover was 2.8 times for the trailing twelve months ended March 31, 2025, which equaled the inventory turnover during the same prior-year period. Inventories aged greater than one year at March 31, 2025 remained low at 2% of total inventories.
    • Operating expenses for the first quarter increased 8% as compared to the prior-year quarter, primarily due to store additions and increased labor and variable compensation expenses. On a same-store basis, expenses increased 6% for the quarter compared to the respective prior-year period.

    Latin America Pawn Segment Operating Results

    Note: Certain growth rates below are calculated on a constant currency basis, a non-GAAP financial measure defined at the end of this release. The average Mexican peso to U.S. dollar exchange rate for the first quarter of 2025 was 20.4 pesos / dollar, an unfavorable change of 20% versus the comparable prior-year period.

    • Given the 20% decrease in the average Mexican peso exchange rate, first quarter segment pre-tax operating income decreased 2% on a U.S. dollar basis compared to last year. Segment earnings increased 13% over last year on a constant currency basis, with resulting segment pre-tax operating margins of 17% under both measures, compared to 16% in the prior year.
    • Pawn receivables at March 31, 2025 decreased 5% on a U.S. dollar basis while increasing 15% on a constant currency basis compared to the prior year. On a same-store basis, pawn receivables decreased 5% on a U.S. dollar basis but increased 14% on a constant currency basis compared to the prior year.
    • While total and same-store pawn loan fees in the first quarter decreased 5% on a U.S. dollar-basis, they increased 13% on a constant currency basis compared to the prior-year quarter.
    • Retail merchandise sales in the first quarter of 2025 decreased 8% on a U.S. dollar-basis compared to the prior-year quarter while increasing 9% on a constant currency basis. On a same-store basis, first quarter retail merchandise sales decreased 9% on a U.S. dollar basis while increasing 9% on a constant currency basis compared to the prior-year quarter.
    • Retail margins were 35% for the first quarter of 2025 compared to 36% in the prior-year quarter. Annualized inventory turnover was 4.2 times for the trailing twelve months ended March 31, 2025 compared to 4.4 times in the prior-year period. Inventories aged greater than one year at March 31, 2025 remained low at 2%.
    • Operating expenses decreased 9% in total and 8% on a same-store basis compared to the prior-year quarter. On a constant currency basis, they increased 8% both in total and on a same-store basis. The increase in constant currency expenses from all stores reflected increased store counts and higher labor costs (due primarily to further increases in the federal minimum wage), along with other inflationary impacts.

    American First Finance (AFF) – Retail POS Payment Solutions Segment Operating Results

    • First quarter segment pre-tax operating income totaled $52 million, an increase of 58% compared to the prior-year quarter. The growth in earnings was driven primarily by gross margin improvement and operating expense reductions.
    • While gross revenues, comprised of lease-to-own (“LTO”) fees and interest and fees on finance receivables, decreased 12% compared to the prior-year quarter, net revenue increased 12%. The improvement in net revenue reflected lower LTO depreciation expense resulting from lower early buyout activity in the current quarter combined with lower lease and loan loss provisioning expense as discussed below.
    • Gross transaction volume of lease and loan originations during the first quarter decreased $21 million, or 8%, compared to the first quarter of last year. Excluding 2024 originations from American Freight and Conn’s Home Plus (both of which ceased operations in the fourth quarter of 2024 due to bankruptcy), first quarter 2025 origination volume increased approximately 24%.
    • Combined gross leased merchandise and finance receivables outstanding at March 31, 2025 decreased 4% compared to the March 31, 2024 balances due to lower first quarter originations.
    • The combined first quarter lease and loan loss provision expense decreased $10 million, or 13%, compared to last year. The decrease reflected reduced up-front provisioning given the $21 million decline in origination activity, coupled with lower than expected charge-offs resulting in reserve releases on older vintages. As a percentage of the total gross transaction volume, the combined lease and loan loss provision expense was 27% for the first quarter of 2025 compared to 29% in the first quarter of 2024. The combined allowance as a percentage of combined leased merchandise and finance receivables at March 31, 2025 was 43% compared to 42% a year ago.
    • Operating expenses decreased 30% compared to the prior-year quarter, primarily due to the elimination of certain expenses associated with supporting the American Freight and Conn’s Home Plus relationships along with continued realization of operating synergies, including greater efficiencies in technology and development infrastructure, coupled with other cost reduction initiatives.

    Cash Flow and Liquidity

    • Consolidated operating cash flows for the twelve month period ended March 31, 2025 grew 27% and totaled $544 million compared to $428 million in the same prior-year period, with significant contributions from each of the Company’s three business segments.
    • Adjusted free cash flows increased 33% to $269 million in the twelve month period ended March 31, 2025 compared to $201 million in the same prior-year period.
    • The operating cash flows helped fund significant growth in earning assets and continued investments in the pawn store platform over the past twelve months with a nominal increase in net debt:
      • Pawn earning assets (pawn receivables and inventories) increased $76 million compared to last year.
      • A total of 38 pawn stores were acquired for a combined purchase price of $103 million.
      • 53 new pawn stores were added with a combined investment of $19 million in fixed assets and working capital.
      • Real estate purchases totaled $82 million as the Company purchased the underlying real estate at 56 of its existing pawn stores, bringing the number of Company-owned properties to 407 locations.
    • Net debt at March 31, 2025 was $1.6 billion, of which $1.5 billion is fixed rate debt with favorable interest rates ranging from 4.625% to 6.875% and maturity dates that do not begin until 2028 and continue into 2032. The outstanding balance under the Company’s $700 million revolving line of credit totaled $175 million at March 31, 2025.
    • Based on trailing twelve month results, the Company’s net debt to adjusted EBITDA ratio improved to 2.68x at March 31, 2025.

    Shareholder Returns

    • The Board of Directors declared a $0.38 per share second quarter cash dividend, which will be paid on May 30, 2025 to stockholders of record as of May 15, 2025. This represents an annualized dividend of $1.52 per share. Any future dividends are subject to approval by the Company’s Board of Directors.
    • During the first quarter, the Company repurchased 525,000 shares of common stock at a total cost of $60 million and an average price of $113.54 per share.
    • Over the past twelve months, the Company has repurchased 1,246,000 shares of common stock at a total cost of $145 million and paid out $67 million in cash dividends, representing a payout ratio of approximately 75% of net income over the same period.
    • The Company has $55 million available under the $200 million share repurchase program authorized in July 2023. Future share repurchases are subject to expected liquidity, acquisitions and other investment opportunities, debt covenant restrictions, market conditions and other relevant factors.
    • The Company generated a 14% return on equity and a 6% return on assets for the twelve months ended March 31, 2025. Using adjusted net income for the twelve months ended March 31, 2025, the adjusted return on equity was 16% while the adjusted return on assets was 7%.

    2025 Outlook

    Driven by the strong first quarter results and continued demand for pawn loans, the outlook for 2025 remains highly positive, with expected year-over-year growth in income driven by the continued growth in earning asset balances coupled with store additions. Anticipated conditions and trends for the remainder of 2025 include the following:

    Pawn Operations:

    • Pawn operations are expected to remain the primary earnings driver in 2025 as the Company expects segment income from the combined U.S. and Latin America pawn segments to be over 80% of total segment level pre-tax income for the full year.
    • The Company expects further growth in the pawn store base in 2025 through a combination of new store openings and potential acquisitions. The guidance provided below does not assume any material acquisition activity.

    U.S. Pawn

    • Same-store pawn loans at March 31, 2025 were up 13% compared to a year ago, with April balances to date up similarly. Given the strength of the first quarter same-store results, the increase in pawn fee growth is estimated to be in a range of 9% to 11% for the full year.
    • Retail sales are expected to grow mid-single digits in 2025, with retail sales margins targeted at approximately 41% to 42%.

    Latin America Pawn

    • U.S. dollar-reported results for Latin America in 2025 are expected to be impacted by the lower exchange rate for the Mexican peso, which has most recently been in a range of approximately 20 to 21 pesos per U.S. dollar compared to the average exchange rate of 18.3 to 1 in 2024.
    • Same-store pawn receivables at March 31, 2025 were down 5% on a U.S. dollar basis but up 14% on a constant currency basis, with April balances to date up similarly. Full year pawn fee growth is now expected to increase in a range of 10% to 12% on a local currency basis while it is projected to be flat to down slightly on a U.S. dollar basis, given the current exchange rate.
    • Retail sales in Latin America are also expected to track similarly to pawn fees in 2025 with consistent retail margins.

    Retail POS Payment Solutions (AFF) Operations:

    • Despite an 8% year-over-year decrease in first quarter originations, the forecast for full year origination volume for 2025 is expected to be consistent with or slightly above full year 2024 volume. Excluding 2024 originations from Conn’s Home Plus and American Freight, origination volumes are expected to increase in a range of 20% to 25% over 2024, reflecting continued diversification outside the furniture vertical.
    • While net revenue in the first quarter benefited from lower credit provisioning on reduced originations and older vintage reserve releases, the remainder of the year will see increased loss provisioning consistent with the expected growth in origination activity over the balance of 2025.
    • Given the above origination and provisioning dynamics, second quarter net revenues are expected to decline 14% to 16% over last year, with full year net revenues forecast to decline in a range of 8% to 12% compared to the prior year. Quarterly operating expenses for the balance of 2025 are expected to remain consistent with the first quarter run rate.
    • The Company is raising AFF segment earnings expectations for 2025, with full year segment income now expected to increase over last year in a mid single-digit percentage range given the strong first quarter results coupled with the continued operating expense savings.

    Tax Rates and Currency:

    • The full year 2025 effective income tax rate under current tax codes in the U.S. and Latin America is expected to range from 24.5% to 25.5%.
    • Each full point change in the exchange rate of the Mexican peso is projected to have an annual earnings impact of approximately $0.10 per share.

    Additional Commentary and Analysis

    Mr. Wessel further commented on FirstCash’s strong first quarter results and the outlook for the remainder of 2025, “As reported, our first quarter operating results were outstanding for each business segment and provide tremendous momentum as we begin the second quarter.

    “The operating fundamentals in our core pawn segments remain especially strong given current demand for pawn loans. Total outstanding pawn loans at the end of the quarter were up 16% in the U.S. and 15% in Latin America, on a local currency basis, while the average loan amounts were up 11% in the U.S and 7% in Latin America on a local currency basis. At the same time, retail sales and margins remain solid given the deep-value, treasure-hunt nature of our retail showrooms.

    “FirstCash continued to invest in the long-term growth of its core pawn assets by expanding its presence in existing markets and entering new markets across both segments. Over the last 12 months, we have added a total of 91 locations through new store openings and acquisitions. The Las Vegas location acquired in the first quarter is expected to deliver significantly higher retail revenue than a typical store, and with the addition of pawn products, should drive even greater profitability and further raise our profile in the high-end segment of the pawn market. Most importantly, the pipeline driving pawn store growth remains robust as we continue to open new stores and evaluate additional acquisition opportunities across multiple markets.

    “In addition, we continue to purchase the underlying real estate of high-performing U.S. stores where we now own over 400 locations, representing over a third of our domestic locations. These real estate acquisitions give us not only long-term control of our prime locations, but also reduce future operating costs. At the same time, we continue to reduce current expenses in certain markets in both the U.S. and Latin America, where we often have overlapping locations arising from acquisitions. By consolidating the operations of these overlapping stores into single locations, we can achieve significant cost savings.

    “First quarter results for AFF were also positive in almost every aspect despite the bankruptcies of two of its larger furniture lease-to-own merchant partners in late 2024. While revenues declined slightly as expected, we more than offset the impact with strong collection results on the existing portfolios and reduced operating expenses. Our resulting outlook for 2025 earnings is improved and we continue to see a clear path for long-term growth of the AFF segment.

    “Strong consolidated cash flows again supported the growth and further shareholder returns through year-over-year growth in earning assets, new and acquired stores and further share repurchases and dividends. The 525,000 shares repurchased in the first quarter for $60 million were executed at an average price of less than $114 per share. At the same time, we reduced outstanding debt on our revolving credit facility by $23 million and decreased the leverage ratio during the quarter.

    “In summary, the current market environment remains extremely strong for our pawn-focused business model. Pawn products do well in challenging or uncertain economic cycles and combine well with a deep-value retail sales channel that has limited direct impact from tariffs. With our excellent balance sheet and cash flows, we have a strong platform to continue to drive expected long-term growth in revenues, earnings and shareholder value,” concluded Mr. Wessel.

    About FirstCash

    FirstCash is the leading international operator of pawn stores focused on serving cash and credit-constrained consumers. FirstCash’s more than 3,000 pawn stores in the U.S. and Latin America buy and sell a wide variety of jewelry, electronics, tools, appliances, sporting goods, musical instruments and other merchandise, and make small non-recourse pawn loans secured by pledged personal property. FirstCash’s pawn segments in the U.S. and Latin America currently account for approximately 80% of annualized segment earnings, with the remainder provided by its wholly owned subsidiary, AFF, which provides lease-to-own and retail finance payment solutions for consumer goods and services.

    FirstCash is a component company in both the Standard & Poor’s MidCap 400 Index® and the Russell 2000 Index®. FirstCash’s common stock (ticker symbol “FCFS”) is traded on the Nasdaq, the creator of the world’s first electronic stock market. For additional information regarding FirstCash and the services it provides, visit FirstCash’s websites located at http://www.firstcash.com and http://www.americanfirstfinance.com.

    Forward-Looking Information

    This release contains forward-looking statements about the business, financial condition, outlook and prospects of FirstCash Holdings, Inc. and its wholly owned subsidiaries (together, the “Company”), including the Company’s outlook for 2025. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as “outlook,” “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations, outlook and future plans. Forward-looking statements can also be identified by the fact these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.

    While the Company believes the expectations reflected in forward-looking statements are reasonable, there can be no assurances such expectations will prove to be accurate. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. Certain factors may cause results to differ materially from those anticipated by the forward-looking statements made in this release. Such factors may include, without limitation, risks related to the extensive regulatory environment in which the Company operates, including uncertainty involving the current regulatory environment under the current presidential administration; risks associated with the legal and regulatory proceedings that the Company is a party to or may become a party to in the future, including the Consumer Financial Protection Bureau (the “CFPB”) lawsuit filed against the Company; risks related to the Company’s acquisitions, including the failure of the Company’s acquisitions to deliver the estimated value and benefits expected by the Company and the ability of the Company to continue to identify and consummate acquisitions on favorable terms, if at all; potential changes in consumer behavior and shopping patterns which could impact demand for the Company’s pawn loan, retail, lease-to-own (“LTO”) and retail finance products; labor shortages and increased labor costs; a deterioration in the economic conditions in the United States and Latin America, including as a result of inflation, elevated interest rates and trade policy, which potentially could have an impact on discretionary consumer spending and demand for the Company’s products; currency fluctuations, primarily involving the Mexican peso; competition the Company faces from other retailers and providers of retail payment solutions; the ability of the Company to successfully execute on its business strategies; contraction in sales activity at merchant partners of the Company’s retail point-of-sale (“POS”) payment solutions business; impact of store closures, financial difficulties or even bankruptcies at the merchant partners of the Company’s retail POS payment solutions business; the ability of the Company’s retail POS payment solutions business to continue to grow its base of merchant partners, including those outside of the furniture vertical; and other risks discussed and described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), including the risks described in Part 1, Item 1A, “Risk Factors” thereof, and other reports filed with the SEC. Many of these risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. The forward-looking statements contained in this release speak only as of the date of this release, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

     
    FIRSTCASH HOLDINGS, INC.
    CONSOLIDATED STATEMENTS OF INCOME
    (unaudited, in thousands)
     
        Three Months Ended
        March 31,
          2025       2024  
    Revenue:        
    Retail merchandise sales   $ 371,056     $ 366,821  
    Pawn loan fees     191,871       179,535  
    Leased merchandise income     156,918       205,671  
    Interest and fees on finance receivables     73,413       57,387  
    Wholesale scrap jewelry sales     43,165       26,956  
    Total revenue     836,423       836,370  
             
    Cost of revenue:        
    Cost of retail merchandise sold     224,124       223,529  
    Depreciation of leased merchandise     88,819       120,284  
    Provision for lease losses     27,562       43,010  
    Provision for loan losses     36,360       30,418  
    Cost of wholesale scrap jewelry sold     35,355       23,289  
    Total cost of revenue     412,220       440,530  
             
    Net revenue     424,203       395,840  
             
    Expenses and other income:        
    Operating expenses     214,586       221,136  
    Administrative expenses     48,523       44,018  
    Depreciation and amortization     25,502       26,027  
    Interest expense     27,471       25,418  
    Interest income     (1,229 )     (743 )
    Gain on foreign exchange     (14 )     (186 )
    Merger and acquisition expenses     462       597  
    Other income, net     (2,315 )     (2,312 )
    Total expenses and other income     312,986       313,955  
             
    Income before income taxes     111,217       81,885  
             
    Provision for income taxes     27,626       20,517  
             
    Net income   $ 83,591     $ 61,368  
     
    Certain amounts in the consolidated statement of income for the three months ended March 31, 2024 have been reclassified in order to conform to the 2025 presentation.
    FIRSTCASH HOLDINGS, INC.
    CONSOLIDATED BALANCE SHEETS
    (unaudited, in thousands)
     
        March 31,   December 31,
          2025       2024       2024  
    ASSETS            
    Cash and cash equivalents   $ 146,034     $ 135,070     $ 175,095  
    Accounts receivable, net     71,166       69,703       73,325  
    Pawn loans     499,710       456,079       517,867  
    Finance receivables, net     145,079       105,653       147,501  
    Inventories     334,700       302,385       334,580  
    Leased merchandise, net     103,612       157,785       128,437  
    Prepaid expenses and other current assets     26,033       30,460       26,943  
    Total current assets     1,326,334       1,257,135       1,403,748  
                 
    Property and equipment, net     724,213       658,349       717,916  
    Operating lease right of use asset     329,183       320,515       324,646  
    Goodwill     1,815,139       1,730,353       1,787,172  
    Intangible assets, net     216,736       265,184       228,858  
    Other assets     9,952       10,080       9,934  
    Deferred tax assets, net     4,720       5,836       4,712  
    Total assets   $ 4,426,277     $ 4,247,452     $ 4,476,986  
                 
    LIABILITIES AND STOCKHOLDERS’ EQUITY            
    Accounts payable and accrued liabilities   $ 129,137     $ 138,812     $ 171,540  
    Customer deposits and prepayments     76,211       75,423       72,703  
    Lease liability, current     96,539       100,874       95,161  
    Total current liabilities     301,887       315,109       339,404  
                 
    Revolving unsecured credit facilities     175,000       15,000       198,000  
    Senior unsecured notes     1,532,099       1,529,147       1,531,346  
    Deferred tax liabilities, net     129,936       133,606       128,574  
    Lease liability, non-current     228,995       209,208       225,498  
    Total liabilities     2,367,917       2,202,070       2,422,822  
                 
    Stockholders’ equity:            
    Common stock     575       573       575  
    Additional paid-in capital     1,755,591       1,727,564       1,767,569  
    Retained earnings     1,477,730       1,263,564       1,411,083  
    Accumulated other comprehensive loss     (130,540 )     (36,702 )     (129,596 )
    Common stock held in treasury, at cost     (1,044,996 )     (909,617 )     (995,467 )
    Total stockholders’ equity     2,058,360       2,045,382       2,054,164  
    Total liabilities and stockholders’ equity   $ 4,426,277     $ 4,247,452     $ 4,476,986  

    FIRSTCASH HOLDINGS, INC.
    SEGMENT RESULTS
    (UNAUDITED)

    The Company organizes its operations into three reportable segments as follows:

    • U.S. pawn
    • Latin America pawn
    • Retail POS payment solutions (AFF)

    Corporate expenses and income, which include administrative expenses, corporate depreciation and amortization, interest expense, interest income, gain on foreign exchange, merger and acquisition expenses, and other income, net, are presented on a consolidated basis and are not allocated to the segments. Intersegment transactions related to AFF’s LTO payment solution product offered in U.S. pawn stores are eliminated from consolidated totals.

    U.S. Pawn Operating Results and Margins (dollars in thousands)

        Three Months Ended    
        March 31,    
        2025   2024   Increase
    Revenue:                
    Retail merchandise sales   $ 251,225     $ 236,990     6 %
    Pawn loan fees     137,948       122,974     12 %
    Wholesale scrap jewelry sales     33,492       17,726     89 %
    Total revenue     422,665       377,690     12 %
                     
    Cost of revenue:                
    Cost of retail merchandise sold     145,758       139,914     4 %
    Cost of wholesale scrap jewelry sold     27,224       15,266     78 %
    Total cost of revenue     172,982       155,180     11 %
                     
    Net revenue     249,683       222,510     12 %
                     
    Segment expenses:                
    Operating expenses     128,951       118,895     8 %
    Depreciation and amortization     7,600       7,013     8 %
    Total segment expenses     136,551       125,908     8 %
                     
    Segment pre-tax operating income   $ 113,132     $ 96,602     17 %
                     
    Operating metrics:                
    Retail merchandise sales margin   42 %   41 %    
    Net revenue margin   59 %   59 %    
    Segment pre-tax operating margin   27 %   26 %    

    FIRSTCASH HOLDINGS, INC.
    SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)

    U.S. Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)

        As of March 31,    
        2025   2024   Increase
    Earning assets:                
    Pawn loans   $ 365,972     $ 315,792     16 %
    Inventories     246,237       216,762     14 %
        $ 612,209     $ 532,554     15 %
                     
    Average outstanding pawn loan amount (in ones)   $ 289     $ 261     11 %
                     
    Composition of pawn collateral:                
    General merchandise   27 %   29 %    
    Jewelry   73 %   71 %    
        100 %   100 %    
                     
    Composition of inventories:                
    General merchandise   39 %   41 %    
    Jewelry   61 %   59 %    
        100 %   100 %    
                     
    Percentage of inventory aged greater than one year   2 %   1 %    
                     
    Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories)   2.8 times
    		     2.8 times      


    FIRSTCASH HOLDINGS, INC.
    SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)

    Constant currency results are non-GAAP financial measures, which exclude the effects of foreign currency translation and are calculated by translating current-year results at prior-year average exchange rates. See the “Constant Currency Results” section below for additional discussion of constant currency operating results.

    Latin America Pawn Operating Results and Margins (dollars in thousands)

                      Constant Currency Basis
                      Three Months      
                  Ended      
        Three Months Ended         March 31,    
        March 31,   Increase /     2025     Increase
          2025       2024     (Decrease)   (Non-GAAP)   (Non-GAAP)
    Revenue:                        
    Retail merchandise sales   $ 120,532     $ 130,849       (8 )%   $ 143,211       9 %
    Pawn loan fees     53,923       56,561       (5 )%     64,091       13 %
    Wholesale scrap jewelry sales     9,673       9,230       5 %     9,673       5 %
    Total revenue     184,128       196,640       (6 )%     216,975       10 %
                             
    Cost of revenue:                        
    Cost of retail merchandise sold     78,739       84,183       (6 )%     93,439       11 %
    Cost of wholesale scrap jewelry sold     8,131       8,023       1 %     9,647       20 %
    Total cost of revenue     86,870       92,206       (6 )%     103,086       12 %
                             
    Net revenue     97,258       104,434       (7 )%     113,889       9 %
                             
    Segment expenses:                        
    Operating expenses     61,417       67,425       (9 )%     72,515       8 %
    Depreciation and amortization     4,436       5,105       (13 )%     5,216       2 %
    Total segment expenses     65,853       72,530       (9 )%     77,731       7 %
                             
    Segment pre-tax operating income   $ 31,405     $ 31,904       (2 )%   $ 36,158       13 %
                             
    Operating metrics:                        
    Retail merchandise sales margin 35 %   36 %       35 %      
    Net revenue margin 53 %   53 %       52 %      
    Segment pre-tax operating margin 17 %   16 %       17 %      


    FIRSTCASH HOLDINGS, INC.
    SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)

    Latin America Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)

                        Constant Currency Basis
                        As of    
                        March 31,    
        As of March 31,   Increase /   2025   Increase
        2025   2024   (Decrease)   (Non-GAAP)   (Non-GAAP)
    Earning assets:                        
    Pawn loans   $ 133,738     $ 140,287     (5 )%   $ 161,065     15 %
    Inventories     88,463       85,623     3 %     106,579     24 %
        $ 222,201     $ 225,910     (2 )%   $ 267,644     18 %
                             
    Average outstanding pawn loan amount (in ones)   $ 86     $ 97     (11 )%   $ 104     7 %
                             
    Composition of pawn collateral:                        
    General merchandise   58 %   63 %            
    Jewelry   42 %   37 %            
        100 %   100 %            
                             
    Composition of inventories:                        
    General merchandise   62 %   66 %            
    Jewelry   38 %   34 %            
        100 %   100 %            
                             
    Percentage of inventory aged greater than one year   2 %   1 %            
                             
    Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories)   4.2 times
    		     4.4 times              


    FIRSTCASH HOLDINGS, INC.
    SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)

    Retail POS Payment Solutions Operating Results (dollars in thousands)

        Three Months Ended    
        March 31,   Increase /
          2025       2024     (Decrease)
    Revenue:            
    Leased merchandise income   $ 156,918     $ 205,671     (24 )%
    Interest and fees on finance receivables     73,413       57,387     28 %
    Total revenue     230,331       263,058     (12 )%
                 
    Cost of revenue:            
    Depreciation of leased merchandise     89,143       120,774     (26 )%
    Provision for lease losses     27,604       43,180     (36 )%
    Provision for loan losses     36,360       30,418     20 %
    Total cost of revenue     153,107       194,372     (21 )%
                 
    Net revenue     77,224       68,686     12 %
                 
    Segment expenses:            
    Operating expenses     24,218       34,816     (30 )%
    Depreciation and amortization     705       721     (2 )%
    Total segment expenses     24,923       35,537     (30 )%
                 
    Segment pre-tax operating income   $ 52,301     $ 33,149     58 %


    FIRSTCASH HOLDINGS, INC.
    SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)

    Retail POS Payment Solutions Gross Transaction Volumes (dollars in thousands)

        Three Months Ended      
        March 31,   Increase /
          2025       2024     (Decrease)
    Leased merchandise   $ 94,305     $ 154,121       (39 )%
    Finance receivables     141,262       102,165       38 %
    Total gross transaction volume   $ 235,567     $ 256,286       (8 )%


    Retail POS Payment Solutions Earning Assets (dollars in thousands)

        As of March 31,   Increase /
          2025       2024     (Decrease)
    Leased merchandise, net:              
    Leased merchandise, before allowance for lease losses   $ 172,886     $ 253,876       (32 )%
    Less allowance for lease losses     (69,077 )     (95,786 )     (28 )%
    Leased merchandise, net   $ 103,809     $ 158,090       (34 )%
                   
    Finance receivables, net:              
    Finance receivables, before allowance for loan losses   $ 263,421     $ 201,673       31 %
    Less allowance for loan losses     (118,342 )     (96,020 )     23 %
    Finance receivables, net   $ 145,079     $ 105,653       37 %


    FIRSTCASH HOLDINGS, INC.
    SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)

    Allowance for Lease and Loan Losses and Other Portfolio Metrics (dollars in thousands)

        Three Months Ended      
        March 31,   Increase /
          2025       2024     (Decrease)
    Allowance for lease losses:              
    Balance at beginning of period   $ 80,661     $ 95,752       (16 )%
    Provision for lease losses     27,604       43,180       (36 )%
    Charge-offs     (41,528 )     (45,149 )     (8 )%
    Recoveries     2,340       2,003       17 %
    Balance at end of period   $ 69,077     $ 95,786       (28 )%
                   
    Leased merchandise portfolio metrics:              
    Provision rate (1)   29 %   28 %      
    Average monthly net charge-off rate (2)   6.8 %   5.5 %      
    Delinquency rate (3)   22.6 %   20.5 %      
                   
    Allowance for loan losses:              
    Balance at beginning of period   $ 117,005     $ 96,454       21 %
    Provision for loan losses     36,360       30,418       20 %
    Charge-offs     (38,419 )     (33,279 )     15 %
    Recoveries     3,396       2,427       40 %
    Balance at end of period   $ 118,342     $ 96,020       23 %
                   
    Finance receivables portfolio metrics:              
    Provision rate (1)   26 %   30 %      
    Average monthly net charge-off rate (2)   4.4 %   5.0 %      
    Delinquency rate (3)   19.3 %   19.2 %      

    (1) Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.
    (2) Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.
    (3) Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).

    FIRSTCASH HOLDINGS, INC.
    PAWN STORE LOCATIONS AND MERCHANT PARTNER LOCATIONS

    Pawn Operations

    As of March 31, 2025, the Company operated 3,023 pawn store locations composed of 1,197 stores in 29 U.S. states and the District of Columbia, 1,724 stores in 32 states in Mexico, 72 stores in Guatemala, 18 stores in El Salvador and 12 stores in Colombia.

    The following table details pawn store count activity for the three months ended March 31, 2025:

        Three Months Ended March 31, 2025
        U.S.   Latin America   Total
    Total locations, beginning of period   1,200     1,826     3,026  
    New locations opened   1     10     11  
    Locations acquired   1     —     1  
    Consolidation of existing pawn locations (1)   (5 )   (10 )   (15 )
    Total locations, end of period   1,197     1,826     3,023  

    (1) Store consolidations were primarily acquired locations which have been combined with overlapping stores and for which the Company expects to maintain a significant portion of the acquired customer base in the consolidated location.

    Retail POS Payment Solutions

    As of March 31, 2025, AFF provided LTO and retail POS payment solutions for consumer goods and services through a network of approximately 14,500 active retail merchant partner locations. This compares to the active door count of approximately 12,200 locations at March 31, 2024.

    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES
    (UNAUDITED)

    The Company uses certain financial calculations such as adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow, adjusted return on equity, adjusted return on assets and constant currency results as factors in the measurement and evaluation of the Company’s operating performance and period-over-period growth. The Company derives these financial calculations on the basis of methodologies other than generally accepted accounting principles (“GAAP”), primarily by excluding from a comparable GAAP measure certain items the Company does not consider to be representative of its actual operating performance. These financial calculations are “non-GAAP financial measures” as defined under the SEC rules. The Company uses these non-GAAP financial measures in operating its business because management believes they are less susceptible to variances in actual operating performance that can result from the excluded items, other infrequent charges and currency fluctuations. The Company presents these financial measures to investors because management believes they are useful to investors in evaluating the primary factors that drive the Company’s core operating performance and provide greater transparency into the Company’s results of operations. However, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components in understanding and assessing the Company’s financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company’s GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP, and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly-titled measures of other companies.

    While acquisitions are an important part of the Company’s overall strategy, the Company has adjusted the applicable financial calculations to exclude merger and acquisition expenses and amortization of acquired AFF intangible assets. The Company does not consider these items to be related to the organic operations of the acquired businesses or its continuing operations and are generally not relevant to assessing or estimating the long-term performance of the acquired businesses. In addition, excluding these items allows for more accurate comparisons of the financial results to prior periods. Merger and acquisition expenses include incremental costs directly associated with merger and acquisition activities, including professional fees, legal expenses, severance, retention and other employee-related costs, contract breakage costs and costs related to the consolidation of technology systems and corporate facilities, among others.

    The Company has certain leases in Mexico which are denominated in U.S. dollars. The lease liability of these U.S. dollar-denominated leases, which is considered a monetary liability, is remeasured into Mexican pesos using current period exchange rates, resulting in the recognition of foreign currency exchange gains or losses. The Company has adjusted the applicable financial measures to exclude these remeasurement gains or losses (1) because they are non-cash, non-operating items that could create volatility in the Company’s consolidated results of operations due to the magnitude of the end of period lease liability being remeasured and (2) to improve comparability of current periods presented with prior periods.

    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)

    Adjusted Net Income and Adjusted Diluted Earnings Per Share

    Management believes the presentation of adjusted net income and adjusted diluted earnings per share provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance and prospects for the future by excluding items that management believes are non-operating in nature and are not representative of the Company’s core operating performance. In addition, management believes the adjustments shown below are useful to investors in order to allow them to compare the Company’s financial results for the current periods presented with the prior periods presented.

    The following tables provide a reconciliation between net income and diluted earnings per share calculated in accordance with GAAP to adjusted net income and adjusted diluted earnings per share, which are shown net of tax (in thousands, except per share amounts):

                Trailing Twelve
        Three Months Ended   Months Ended
        March 31,   March 31,
          2025       2024       2025       2024  
        In Thousands   In Thousands   In Thousands   In Thousands
    Net income, as reported   $ 83,591     $ 61,368     $ 281,038     $ 233,281  
    Adjustments, net of tax:                
    Merger and acquisition expenses     354       457       1,603       6,524  
    Non-cash foreign currency loss (gain) related to lease liability     40       (169 )     2,836       (1,100 )
    AFF purchase accounting and other adjustments     9,258       9,573       37,974       52,812  
    Other expenses (income), net     (462 )     (1,040 )     1,821       (2,154 )
    Adjusted net income   $ 92,781     $ 70,189     $ 325,272     $ 289,363  
        Three Months Ended
        March 31,
          2025       2024  
        Per Share   Per Share
    Diluted earnings per share, as reported   $ 1.87     $ 1.35  
    Adjustments, net of tax:        
    Merger and acquisition expenses     —       0.01  
    AFF purchase accounting and other adjustments     0.21       0.21  
    Other expenses (income), net     (0.01 )     (0.02 )
    Adjusted diluted earnings per share   $ 2.07     $ 1.55  


    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)

    Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA

    The Company defines EBITDA as net income before income taxes, depreciation and amortization, interest expense and interest income and adjusted EBITDA as EBITDA adjusted for certain items, as listed below, that management considers to be non-operating in nature and not representative of its actual operating performance. The Company believes EBITDA and adjusted EBITDA are commonly used by investors to assess a company’s financial performance, and adjusted EBITDA is used as a starting point in the calculation of the consolidated total debt ratio as defined in the Company’s senior unsecured notes. The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA (in thousands):        

                    Trailing Twelve
        Three Months Ended   Months Ended
        March 31,   March 31,
        2025     2024     2025     2024  
    Net income   $ 83,591     $ 61,368     $ 281,038     $ 233,281  
    Income taxes     27,626       20,517       91,070       78,240  
    Depreciation and amortization     25,502       26,027       104,416       108,077  
    Interest expense     27,471       25,418       107,279       97,764  
    Interest income     (1,229 )     (743 )     (2,421 )     (1,695 )
    EBITDA     162,961       132,587       581,382       515,667  
    Adjustments:                        
    Merger and acquisition expenses     462       597       2,093       8,488  
    Non-cash foreign currency loss (gain) related to lease liability     57       (241 )     4,053       (1,571 )
    AFF purchase accounting and other adjustments (1)     —       —       —       13,968  
    Other expenses (income), net     (600 )     (1,351 )     2,197       (2,798 )
    Adjusted EBITDA   $ 162,880     $ 131,592     $ 589,725     $ 533,754  

    (1) For the twelve months ended March 31, 2024, amount represents other non-recurring costs included in administrative expenses related to a discontinued finance product.

    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)

    Free Cash Flow and Adjusted Free Cash Flow

    For purposes of its internal liquidity assessments, the Company considers free cash flow and adjusted free cash flow. The Company defines free cash flow as cash flow from operating activities less purchases of furniture, fixtures, equipment and improvements and net fundings/repayments of pawn loan and finance receivables, which are considered to be operating in nature by the Company but are included in cash flow from investing activities. Adjusted free cash flow is defined as free cash flow adjusted for merger and acquisition expenses paid that management considers to be non-operating in nature.

    Free cash flow and adjusted free cash flow are commonly used by investors as additional measures of cash generated by business operations that may be used to repay scheduled debt maturities and debt service or, following payment of such debt obligations and other non-discretionary items, that may be available to invest in future growth through new business development activities or acquisitions, repurchase stock, pay cash dividends or repay debt obligations prior to their maturities. These metrics can also be used to evaluate the Company’s ability to generate cash flow from business operations and the impact that this cash flow has on the Company’s liquidity. However, free cash flow and adjusted free cash flow have limitations as analytical tools and should not be considered in isolation or as a substitute for cash flow from operating activities or other income statement data prepared in accordance with GAAP. The following table reconciles cash flow from operating activities to free cash flow and adjusted free cash flow (in thousands):

                Trailing Twelve
        Three Months Ended   Months Ended
        March 31,   March 31,
          2025       2024       2025       2024  
    Cash flow from operating activities   $ 126,640     $ 122,532     $ 544,066     $ 428,080  
    Cash flow from certain investing activities:                
    Pawn loans, net (1)     19,440       25,149       (77,708 )     (54,187 )
    Finance receivables, net     (20,566 )     (15,311 )     (144,569 )     (106,213 )
    Purchases of furniture, fixtures, equipment and improvements     (12,914 )     (26,427 )     (54,732 )     (72,747 )
    Free cash flow     112,600       105,943       267,057       194,933  
    Merger and acquisition expenses paid, net of tax benefit     354       457       1,603       6,524  
    Adjusted free cash flow   $ 112,954     $ 106,400     $ 268,660     $ 201,457  

    (1) Includes the funding of new loans net of cash repayments and recovery of principal through the sale of inventories acquired from forfeiture of pawn collateral.

    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)

    Adjusted Return on Equity and Adjusted Return on Assets

    Management believes the presentation of adjusted return on equity and adjusted return on assets provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance by excluding items that management believes are non-operating in nature and not representative of the Company’s core operating performance.

    Annualized adjusted return on equity and adjusted return on assets is calculated as follows (dollars in thousands):

        Trailing Twelve
        Months Ended
        March 31, 2025
    Adjusted net income(1)   $ 325,272  
           
    Average stockholders’ equity (average of five most recent quarter-end balances)   $ 2,027,110  
    Adjusted return on equity (trailing twelve months adjusted net income divided by average equity)   16 %
           
    Average total assets (average of five most recent quarter-end balances)   $ 4,373,194  
    Adjusted return on assets (trailing twelve months adjusted net income divided by average total assets)   7 %

    (1) See detail of adjustments to net income in the “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section above.

    Constant Currency Results

    The Company’s reporting currency is the U.S. dollar, however, certain performance metrics discussed in this release are presented on a “constant currency” basis, which is considered a non-GAAP financial measure. The Company’s management uses constant currency results to evaluate operating results of business operations in Latin America, which are transacted in local currencies in Mexico, Guatemala and Colombia. The Company also has operations in El Salvador, where the reporting and functional currency is the U.S. dollar.

    The Company believes constant currency results provide valuable supplemental information regarding the underlying performance of its business operations in Latin America, consistent with how the Company’s management evaluates such performance and operating results. Constant currency results reported herein are calculated by translating certain balance sheet and income statement items denominated in local currencies using the exchange rate from the prior-year comparable period, as opposed to the current comparable period, in order to exclude the effects of foreign currency rate fluctuations for purposes of evaluating period-over-period comparisons. See the Latin America pawn segment tables elsewhere in this release for additional reconciliation of certain constant currency amounts to as reported GAAP amounts.

    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)

    Exchange Rates for the Mexican Peso, Guatemalan Quetzal and Colombian Peso

        March 31,   Favorable /
        2025
    		   2024   (Unfavorable)
    Mexican peso / U.S. dollar exchange rate:                
    End-of-period   20.3     16.7     (22 )%
    Three months ended   20.4     17.0     (20 )%
                     
    Guatemalan quetzal / U.S. dollar exchange rate:                
    End-of-period   7.7     7.8     1 %
    Three months ended   7.7     7.8     1 %
                     
    Colombian peso / U.S. dollar exchange rate:                
    End-of-period   4,193     3,842     (9 )%
    Three months ended   4,191     3,915     (7 )%

    The MIL Network –

  • MIL-OSI: WTW Reports First Quarter 2025 Earnings

    Source: GlobeNewswire (MIL-OSI)

    • Revenue1decreased 5% over prior year to $2.2 billion for the quarter due to the sale of TRANZACT
    • Organic Revenue growth of 5% for the quarter
    • Diluted Earnings per Share was $2.33 for the quarter, up 27% over prior year
    • Adjusted Diluted Earnings per Share was $3.13 for the quarter, comparable to prior year2
    • Operating Margin was 19.4% for the quarter, up 740 basis points over prior year
    • Adjusted Operating Margin was 21.6% for the quarter, up 100 basis points from prior year2

    LONDON, April 24, 2025 (GLOBE NEWSWIRE) — WTW (NASDAQ: WTW) (the “Company”), a leading global advisory, broking and solutions company, today announced financial results for the first quarter ended March 31, 2025.

    “We had a solid start to the year, delivering results in line with our expectations and making strong progress on our strategy to accelerate our performance, enhance our efficiency and optimize our portfolio,” said Carl Hess, WTW’s chief executive officer. “We are well-positioned to help our clients navigate economic uncertainty and highly focused on driving continued growth and margin expansion, and we are confident in our outlook. I’m proud of our team’s dedication and look forward to achieving our strategic and financial goals together.”

    Consolidated Results

    As reported, USD millions, except %

    Key Metrics Q1-25 Q1-242 Y/Y Change
    Revenue1 $2,223 $2,341 Reported (5)% | CC (4)% | Organic 5%
    Income from Operations $432 $280 54%
    Operating Margin % 19.4% 12.0% 740 bps
    Adjusted Operating Income $480 $483 (1)%
    Adjusted Operating Margin % 21.6% 20.6% 100 bps
    Net Income $239 $194 23%
    Adjusted Net Income $316 $325 (3)%
    Diluted EPS $2.33 $1.83 27%
    Adjusted Diluted EPS $3.13 $3.13 0%
    1 The revenue amounts included in this release are presented on a U.S. GAAP basis except where stated otherwise. The segment discussion is on an organic basis.
    2 Refer to “WTW Non-GAAP Measures” below and the Q1-25 Supplemental Slides for recast of historical Non-GAAP measures.
       

    Revenue was $2.22 billion for the first quarter of 2025, a decrease of 5% as compared to $2.34 billion for the same period in the prior year. Excluding the impact of foreign currency, revenue decreased 4%. On an organic basis, revenue increased 5%. See Supplemental Segment Information for additional detail on book-of-business settlements and interest income included in revenue.

    Net Income for the first quarter of 2025 was $239 million compared to Net Income of $194 million in the prior-year first quarter. Adjusted EBITDA for the first quarter was $532 million, or 23.9% of revenue, a decrease of 3%, compared to Adjusted EBITDA of $546 million, or 23.3% of revenue, in the prior-year first quarter. The U.S. GAAP tax rate for the first quarter was 21.5%, and the adjusted income tax rate for the first quarter used in calculating adjusted diluted earnings per share was 22.7%.

    Cash Flow and Capital Allocation

    Cash flows used in operating activities were $35 million for the quarter ended March 31, 2025, compared to cash flows from operating activities of $24 million for the prior year. Free cash flow for the quarters ended March 31, 2025 and 2024 was $(86) million and $(36) million, respectively, a decrease of $50 million, primarily driven by the absence of cash collections related to TRANZACT, which the Company sold on December 31, 2024, and increased compensation payments in the current-year quarter as compared to the prior-year quarter. During the quarter ended March 31, 2025, the Company repurchased 607,221 of its outstanding shares for $200 million.

    First Quarter 2025 Segment Highlights

    Health, Wealth & Career (“HWC”)

    As reported, USD millions, except %

    Health, Wealth & Career Q1-25 Q1-24 Y/Y Change
    Total Revenue $1,165 $1,336 Reported (13)% | CC (12)% | Organic 3%
    Operating Income $311 $336 (7)%
    Operating Margin % 26.7% 25.1% 160 bps
           

    The HWC segment had revenue of $1.17 billion in the first quarter of 2025, a decrease of 13% (12% decrease constant currency and organic growth of 3%) from $1.34 billion in the prior year. Health delivered organic revenue growth in all regions driven by solid client retention, new business and geographic expansion. Wealth generated organic revenue growth from higher levels of Retirement work in Europe and International, alongside growth in our Investments business due to the success of our LifeSight solution and capital market improvements. Career had modest revenue growth as increased advisory work was tempered by some postponements amid economic uncertainty. Benefits Delivery & Outsourcing revenue grew primarily from increased project and core administration work.

    Operating margins in the HWC segment increased 160 basis points from the prior-year first quarter to 26.7%, primarily due to the sale of TRANZACT and savings from the Transformation program. Please refer to the Supplemental Slides for TRANZACT’s standalone historical financial results.

    Risk & Broking (“R&B”)

    As reported, USD millions, except %

    Risk & Broking Q1-25 Q1-24 Y/Y Change
    Total Revenue $1,027 $978 Reported 5% | CC 7% | Organic 7%
    Operating Income $226 $203 11%
    Operating Margin % 22.0% 20.8% 120 bps
           

    The R&B segment had revenue of $1.03 billion in the first quarter of 2025, an increase of 5% (7% increase constant currency and organic) from $978 million in the prior year. Corporate Risk & Broking (CRB) had organic revenue growth driven by higher levels of new business activity and strong client retention globally. Insurance Consulting and Technology (ICT) had organic revenue growth for the quarter driven by the Consulting and Technology practices.

    Operating margins in the R&B segment increased 120 basis points from the prior-year first quarter to 22.0%, due primarily to operating leverage driven by strong organic revenue growth and savings from the Transformation program which were partially offset by headwinds from decreased interest income and foreign currency fluctuations.

    Select 2025 Financial Considerations

    Changes to Non-GAAP financial measures:

    • All reported non-GAAP metrics will exclude non-cash net periodic pension and postretirement benefits
    • Free cash flow and free cash flow margin will capture cash outflows for capitalized software costs
    • Refer to Supplemental Slides for recast of historical Non-GAAP measures

    Business mix:

    • TRANZACT business, which contributed $1.14 to adjusted diluted earnings per share in 2024, is no longer part of the business portfolio following the completion of the TRANZACT sale in the fourth quarter of 2024
    • Reinsurance joint venture with Bain Capital expected to be a headwind on adjusted diluted earnings per share of approximately $0.25 to $0.35

    Free cash flow:

    • Expect cash outflows in 2025 from the payment of accrued costs related to the Transformation program which concluded in 2024
    • Cash taxes related to receipt of earnout from reinsurance divestiture will be classified as Cash Flows from Operating Activities on Statement of Cash Flows

    Capital allocation:

    • Expect share repurchases of ~$1.5 billion, subject to market conditions and potential capital allocation to organic and inorganic investment opportunities

    Foreign exchange:

    • Expect a foreign currency impact on adjusted diluted earnings per share to be neutral in 2025 at today’s rates

    Adjusted operating margin outlook:

    • ~100 basis points of average annual margin expansion over next 3 years in R&B
    • Incremental annual margin expansion at HWC and enterprise levels

    The 2025 Financial Considerations above include Non-GAAP financial measures. We do not reconcile forward-looking Non-GAAP measures for reasons explained under “WTW Non-GAAP Measures” below.

    Conference Call

    The Company will host a live webcast and conference call to discuss the financial results for the first quarter 2025. It will be held on Thursday, April 24, 2025, beginning at 9:00 a.m. Eastern Time. A live broadcast of the conference call will be available on WTW’s website here. The conference call will include a question-and-answer session. To participate in the question-and-answer session, please register here. An online replay will be available at www.wtwco.com shortly after the call concludes.

    About WTW

    At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance. Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at www.wtwco.com.

    WTW Non-GAAP Measures

    In order to assist readers of our consolidated financial statements in understanding the core operating results that WTW’s management uses to evaluate the business and for financial planning, we present the following non-GAAP measures: (1) Constant Currency Change, (2) Organic Change, (3) Adjusted Operating Income/Margin, (4) Adjusted EBITDA/Margin, (5) Adjusted Net Income, (6) Adjusted Diluted Earnings Per Share, (7) Adjusted Income Before Taxes, (8) Adjusted Income Taxes/Tax Rate, (9) Free Cash Flow and (10) Free Cash Flow Margin.

    We believe that those measures are relevant and provide pertinent information widely used by analysts, investors and other interested parties in our industry to provide a baseline for evaluating and comparing our operating performance, and in the case of free cash flow, our liquidity results.

    Within the measures referred to as ‘adjusted’, we adjust for significant items which will not be settled in cash, or which we believe to be items that are not core to our current or future operations. Some of these items may not be applicable for the current quarter, however they may be part of our full-year results. Additionally, we have historically adjusted for certain items which are not described below, but for which we may adjust in a future period when applicable. Items applicable to the quarter or full year results, or the comparable periods, include the following:

    • Restructuring costs and transaction and transformation – Management believes it is appropriate to adjust for restructuring costs and transaction and transformation when they relate to a specific significant program with a defined set of activities and costs that are not expected to continue beyond a defined period of time, or significant acquisition-related transaction expenses. We believe the adjustment is necessary to present how the Company is performing, both now and in the future when the incurrence of these costs will have concluded.
    • Gains and losses on disposals of operations – Adjustment to remove the gains or losses resulting from disposed operations that have not been classified as discontinued operations.
    • Net periodic pension and postretirement benefits – Adjustment to remove the recognition of net periodic pension and postretirement benefits (including pension settlements), other than service costs. We have included this adjustment as applicable in our prior-period disclosures in order to conform to the current-period presentation.

    We evaluate our revenue on an as reported (U.S. GAAP), constant currency and organic basis. We believe presenting constant currency and organic information provides valuable supplemental information regarding our comparable results, consistent with how we evaluate our performance internally.

    We consider Constant Currency Change, Organic Change, Adjusted Operating Income/Margin, Adjusted EBITDA/Margin, Adjusted Net Income, Adjusted Diluted Earnings Per Share, Adjusted Income Before Taxes, Adjusted Income Taxes/Tax Rate and Free Cash Flow to be important financial measures, which are used to internally evaluate and assess our core operations and to benchmark our operating and liquidity results against our competitors. These non-GAAP measures are important in illustrating what our comparable operating and liquidity results would have been had we not incurred transaction-related and non-recurring items. Reconciliations of these measures are included in the accompanying tables with the following exception: The Company does not reconcile its forward-looking non-GAAP financial measures to the corresponding U.S. GAAP measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information, such as foreign currency impacts necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure, is available to the Company without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The Company provides non-GAAP financial measures that it believes will be achieved, however it cannot accurately predict all of the components of the adjusted calculations and the U.S. GAAP measures may be materially different than the non-GAAP measures.

    Our non-GAAP measures and their accompanying definitions are presented as follows:

    Constant Currency Change – Represents the year-over-year change in revenue excluding the impact of foreign currency fluctuations. To calculate this impact, the prior year local currency results are first translated using the current year monthly average exchange rates. The change is calculated by comparing the prior year revenue, translated at the current year monthly average exchange rates, to the current year as reported revenue, for the same period. We believe constant currency measures provide useful information to investors because they provide transparency to performance by excluding the effects that foreign currency exchange rate fluctuations have on period-over-period comparability given volatility in foreign currency exchange markets.

    Organic Change – Excludes the impact of fluctuations in foreign currency exchange rates, as described above and the period-over-period impact of acquisitions and divestitures on current-year revenue. We believe that excluding transaction-related items from our U.S. GAAP financial measures provides useful supplemental information to our investors, and it is important in illustrating what our core operating results would have been had we not included these transaction-related items, since the nature, size and number of these transaction-related items can vary from period to period.

    Adjusted Operating Income/Margin – Income from operations adjusted for amortization, restructuring costs, transaction and transformation and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted operating income margin is calculated by dividing adjusted operating income by revenue. We consider adjusted operating income/margin to be important financial measures, which are used internally to evaluate and assess our core operations and to benchmark our operating results against our competitors.

    Adjusted EBITDA/Margin – Net Income adjusted for provision for income taxes, interest expense, depreciation and amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted EBITDA Margin is calculated by dividing adjusted EBITDA by revenue. We consider adjusted EBITDA/margin to be important financial measures, which are used internally to evaluate and assess our core operations, to benchmark our operating results against our competitors and to evaluate and measure our performance-based compensation plans.

    Adjusted Net Income – Net Income Attributable to WTW adjusted for amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results and the related tax effect of those adjustments and the tax effects of internal reorganizations. This measure is used solely for the purpose of calculating adjusted diluted earnings per share.

    Adjusted Diluted Earnings Per Share – Adjusted Net Income divided by the weighted-average number of ordinary shares, diluted. Adjusted diluted earnings per share is used to internally evaluate and assess our core operations and to benchmark our operating results against our competitors.

    Adjusted Income Before Taxes – Income from operations before income taxes and interest in earnings of associates adjusted for amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted income before taxes is used solely for the purpose of calculating the adjusted income tax rate.

    Adjusted Income Taxes/Tax Rate – Provision for income taxes adjusted for taxes on certain items of amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, the tax effects of significant adjustments and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results, divided by adjusted income before taxes. Adjusted income taxes is used solely for the purpose of calculating the adjusted income tax rate. Management believes that the adjusted income tax rate presents a rate that is more closely aligned to the rate that we would incur if not for the reduction of pre-tax income for the adjusted items and the tax effects of internal reorganizations, which are not core to our current and future operations.

    Free Cash Flow – Cash flows from operating activities less cash used to purchase fixed assets and software. Free Cash Flow is a liquidity measure and is not meant to represent residual cash flow available for discretionary expenditures. Management believes that free cash flow presents the core operating performance and cash-generating capabilities of our business operations. As a result of our change in presentation, free cash flow for the prior period has been adjusted to conform to the current period, which includes the deduction of our capitalized software costs.

    Free Cash Flow Margin – Free Cash Flow as a percentage of revenue, which represents how much of revenue would be realized on a cash basis. We consider this measure to be a meaningful metric for tracking cash conversion on a year-over-year basis due to the non-cash nature of our pension income, which is included in our GAAP and Non-GAAP earnings metrics presented herein.

    These non-GAAP measures are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies. Non-GAAP measures should be considered in addition to, and not as a substitute for, the information contained within our condensed consolidated financial statements.

    WTW Forward-Looking Statements

    This document contains ‘forward-looking statements’ within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by those laws. These forward-looking statements include information about possible or assumed future results of our operations. All statements, other than statements of historical facts, that address activities, events or developments that we expect or anticipate may occur in the future, including such things as: our outlook; the potential impact of natural or man-made disasters like health pandemics and other world health crises; future capital expenditures; ongoing working capital efforts; future share repurchases; financial results (including our revenue, costs or margins) and the impact of changes to tax laws on our financial results; existing and evolving business strategies including those related to acquisition and disposition; demand for our services and competitive strengths; strategic goals; the benefits of new initiatives; growth of our business and operations; the sustained health of our product, service, transaction, client, and talent assessment and management pipelines; our ability to successfully manage ongoing leadership, organizational and technology changes, including investments in improving systems and processes; our ability to implement and realize anticipated benefits of any cost-savings initiatives generated from our now-completed multi-year operational transformation program or other expense savings initiatives; our recognition of future impairment charges; and plans and references to future successes, including our future financial and operating results, short-term and long-term financial goals, plans, objectives, expectations and intentions, including with respect to free cash flow generation, adjusted net revenue, adjusted operating margin and adjusted earnings per share, are forward-looking statements. Also, when we use words such as ‘may’, ‘will’, ‘would’, ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘plan’, ‘continues’, ‘seek’, ‘target’, ‘goal’, ‘focus’, ‘probably’, or similar expressions, we are making forward-looking statements. Such statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. All forward-looking disclosure is speculative by its nature.

    There are important risks, uncertainties, events and factors that could cause our actual results or performance to differ materially from those in the forward-looking statements contained in this document, including the following: our ability to successfully establish, execute and achieve our global business strategy as it evolves; our ability to fully realize the anticipated benefits of our growth strategy, including inorganic growth through acquisitions; our ability to achieve our short-term and long-term financial goals, such as with respect to our cash flow generation, and the timing with respect to such achievement; the risks related to changes in general economic conditions, business and political conditions, changes in the financial markets, inflation, credit availability, increased interest rates, changes in trade policies, increased tariffs and retaliatory actions; the risks to our short-term and long-term financial goals from any of the risks or uncertainties set forth herein; the risks relating to the adverse impacts of macroeconomic trends, including those relating to changes in trade policies and tariffs, as well as political events, war, such as the Russia-Ukraine and Israel-Hamas wars, and other international disputes, terrorism, natural disasters, public health issues and other business interruptions on the global economy and capital markets, such as uncertainty in the global markets, inflation, changes in interest rates and recessionary trends, changes in spending by government agencies and contractors, which could have a material adverse effect on our business, financial condition, results of operations and long-term goals; our ability to successfully hedge against fluctuations in foreign currency rates; the risks relating to the adverse impacts of natural or man-made disasters such as health pandemics and other world health crises on the demand for our products and services, our cash flows and our business operations; material interruptions to or loss of our information processing capabilities, or failure to effectively maintain and upgrade our information technology resources and systems and related risks of cybersecurity breaches or incidents; our ability to comply with complex and evolving regulations related to data privacy, cybersecurity and artificial intelligence; the risks relating to the transitional arrangements in effect subsequent to our now-completed sale of TRANZACT; significant competition that we face and the potential for loss of market share and/or profitability; the impact of seasonality and differences in timing of renewals and non-recurring revenue increases from disposals and book-of-business sales; the insufficiency of client data protection, potential breaches of information systems or insufficient safeguards against cybersecurity breaches or incidents; the risk of increased liability or new legal claims arising from our new and existing products and services, and expectations, intentions and outcomes relating to outstanding litigation; the risk of substantial negative outcomes on existing or potential future litigation or investigation matters; changes in the regulatory environment in which we operate, including, among other risks, the impacts of pending competition law and regulatory investigations; various claims, government inquiries or investigations or the potential for regulatory action; our ability to make divestitures or acquisitions, including our ability to integrate or manage acquired businesses or carve-out businesses to be disposed, as well as our ability to identify and successfully execute on opportunities for strategic collaboration; our ability to integrate direct-to-consumer sales and marketing solutions with our existing offerings and solutions; our ability to successfully manage ongoing organizational changes, including as a result of our recently-completed multi-year operational transformation program, investments in improving systems and processes, and in connection with our acquisition and divestiture activities; disasters or business continuity problems; our ability to successfully enhance our billing, collection and other working capital efforts, and thereby increase our free cash flow; our ability to properly identify and manage conflicts of interest; reputational damage, including from association with third parties; reliance on third-party service providers and suppliers; risks relating to changes in our management structures and in senior leadership; the loss of key employees or a large number of employees and rehiring rates; our ability to maintain our corporate culture; doing business internationally, including the impact of global trade policies and retaliatory considerations as well as foreign currency exchange rates; compliance with extensive government regulation; the risk of sanctions imposed by governments, or changes to associated sanction regulations (such as sanctions imposed on Russia) and related counter-sanctions; our ability to effectively apply technology, data and analytics changes for internal operations, maintaining industry standards and meeting client preferences; changes and developments in the insurance industry or the U.S. healthcare system, including those related to Medicare, and any other changes and developments in legal, regulatory, economic, business or operational conditions that could impact our businesses; the inability to protect our intellectual property rights, or the potential infringement upon the intellectual property rights of others; fluctuations in our pension assets and liabilities and related changes in pension income, including as a result of, related to, or derived from movements in the interest rate environment, investment returns, inflation, or changes in other assumptions that are used to estimate our benefit obligations and their effect on adjusted earnings per share; our capital structure, including indebtedness amounts, the limitations imposed by the covenants in the documents governing such indebtedness and the maintenance of the financial and disclosure controls and procedures of each; our ability to obtain financing on favorable terms or at all; adverse changes in our credit ratings; the impact of recent or potential changes to U.S. or foreign laws, and the enactment of additional, or the revision of existing, state, federal, and/or foreign laws and regulations, recent judicial decisions and development of case law, other regulations and any policy changes and legislative actions, including those that may impose additional excise taxes or impact our effective tax rate; U.S. federal income tax consequences to U.S. persons owning at least 10% of our shares; changes in accounting principles, estimates or assumptions; our recognition of future impairment charges; risks relating to or arising from environmental, social and governance (‘ESG’) practices; fluctuation in revenue against our relatively fixed or higher-than-expected expenses; the risk that investment levels increase; the laws of Ireland being different from the laws of the U.S. and potentially affording less protections to the holders of our securities; and our holding company structure potentially preventing us from being able to receive dividends or other distributions in needed amounts from our subsidiaries.

    The foregoing list of factors is not exhaustive and new factors may emerge from time to time that could also affect actual performance and results. For more information, please see Part I, Item 1A in our Annual Report on Form 10-K, and our subsequent filings with the SEC. Copies are available online at http://www.sec.gov or www.wtwco.com.

    Although we believe that the assumptions underlying our forward-looking statements are reasonable, any of these assumptions, and therefore also the forward-looking statements based on these assumptions, could themselves prove to be inaccurate. Given the significant uncertainties inherent in the forward-looking statements included in this document, our inclusion of this information is not a representation or guarantee by us that our objectives and plans will be achieved.

    Our forward-looking statements speak only as of the date made and we will not update these forward-looking statements unless the securities laws require us to do so. With regard to these risks, uncertainties and assumptions, the forward-looking events discussed in this document may not occur, and we caution you against unduly relying on these forward-looking statements.

    Contact

    INVESTORS
    Claudia De La Hoz | Claudia.Delahoz@wtwco.com

       
      WTW
    Supplemental Segment Information
    (In millions of U.S. dollars)
    (Unaudited)
       
    REVENUE  
                Components of Revenue Change(i)
                      Less:       Less:    
      Three Months Ended
    March 31,    		   As Reported   Currency   Constant
    Currency    		   Acquisitions/   Organic
      2025   2024   % Change   Impact   Change   Divestitures   Change
                                   
    Health, Wealth & Career                              
    Revenue excluding interest income $ 1,158     $ 1,327       (13)%       (1)%       (12)%       (14)%       3%  
    Interest income   7       9                      
    Total   1,165       1,336       (13)%       (1)%       (12)%       (14)%       3%  
                                   
    Risk & Broking                              
    Revenue excluding interest income $ 1,005     $ 950       6%       (2)%       8%       0%       8%  
    Interest income   22       28                      
    Total   1,027       978       5%       (2)%       7%       0%       7%  
                                   
    Segment Revenue $ 2,192     $ 2,314       (5)%       (2)%       (4)%       (8)%       5%  
    Corporate, reimbursable expenses and other   21       21                      
    Interest income   10       6                      
    Revenue $ 2,223     $ 2,341       (5)%       (1)%       (4)%       (8)%     5%(ii)
    (i) Components of revenue change may not add due to rounding.
    (ii) Interest income did not contribute to organic change for the three months ended March 31, 2025.
       

    BOOK-OF-BUSINESS SETTLEMENTS AND INTEREST INCOME

      Three Months Ended March 31,
      HWC   R&B   Corporate   Total
      2025   2024   2025   2024   2025   2024   2025   2024
    Book-of-business settlements $ 2     $ —     $ —     $ 2     $ —     $ —     $ 2     $ 2  
    Interest income   7       9       22       28       10       6       39       43  
    Total $ 9     $ 9     $ 22     $ 30     $ 10     $ 6     $ 41     $ 45  
                                                                   

    SEGMENT OPERATING INCOME (i)

      Three Months Ended
    March 31,
      2025   2024
               
    Health, Wealth & Career $ 311     $ 336  
    Risk & Broking   226       203  
    Segment Operating Income $ 537     $ 539  
    (i) Segment operating income excludes certain costs, including amortization of intangibles, restructuring costs, transaction and transformation expenses, certain litigation provisions, and to the extent that the actual expense based upon which allocations are made differs from the forecast/budget amount, a reconciling item will be created between internally-allocated expenses and the actual expenses reported for U.S. GAAP purposes.
       

    SEGMENT OPERATING MARGINS

      Three Months Ended March 31,
      2025   2024
    Health, Wealth & Career   26.7%       25.1%  
    Risk & Broking   22.0%       20.8%  
                   

    RECONCILIATION OF SEGMENT OPERATING INCOME TO INCOME FROM OPERATIONS BEFORE INCOME TAXES

      Three Months Ended March 31,
      2025   2024
               
    Segment Operating Income $ 537     $ 539  
    Amortization   (48 )     (60 )
    Restructuring costs   —       (18 )
    Transaction and transformation(i)   —       (125 )
    Unallocated, net(ii)   (57 )     (56 )
    Income from Operations   432       280  
    Interest expense   (65 )     (64 )
    Other (loss)/income, net   (64 )     26  
    Income from operations before income taxes and interest in earnings of associates $ 303     $ 242  
    (i) In addition to legal fees and other transaction costs, includes primarily consulting fees and compensation costs related to the Transformation program.
    (ii) Includes certain costs, primarily related to corporate functions which are not directly related to the segments, and certain differences between budgeted expenses determined at the beginning of the year and actual expenses that we report for U.S. GAAP purposes.
       
    WTW
    Reconciliations of Non-GAAP Measures
    (In millions of U.S. dollars, except per share data)
    (Unaudited)
         
    RECONCILIATION OF NET INCOME ATTRIBUTABLE TO WTW TO ADJUSTED DILUTED EARNINGS PER SHARE
         
      Three Months Ended March 31,
      2025   2024
               
    Net income attributable to WTW $ 235     $ 190  
    Adjusted for certain items:          
    Amortization   48       60  
    Restructuring costs   —       18  
    Transaction and transformation   —       125  
    Net periodic pension and postretirement benefits   75       (22 )
    Gain on disposal of operations   (14 )     —  
    Tax effect on certain items listed above(i)   (28 )     (46 )
    Adjusted Net Income $ 316     $ 325  
               
    Weighted-average ordinary shares, diluted   101       104  
               
    Diluted Earnings Per Share $ 2.33     $ 1.83  
    Adjusted for certain items:(ii)          
    Amortization   0.48       0.58  
    Restructuring costs   —       0.17  
    Transaction and transformation   —       1.21  
    Net periodic pension and postretirement benefits   0.74       (0.21 )
    Gain on disposal of operations   (0.14 )     —  
    Tax effect on certain items listed above(i)   (0.28 )     (0.44 )
    Adjusted Diluted Earnings Per Share(ii) $ 3.13     $ 3.13  
    (i) The tax effect was calculated using an effective tax rate for each item.
    (ii) Per share values and totals may differ due to rounding.
       

    RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA

      Three Months Ended March 31,        
      2025       2024    
                               
    Net Income $ 239       10.8%     $ 194       8.3%  
    Provision for income taxes   65               48          
    Interest expense   65               64          
    Depreciation   54               59          
    Amortization   48               60          
    Restructuring costs   —               18          
    Transaction and transformation   —               125          
    Net periodic pension and postretirement benefits   75               (22 )        
    Gain on disposal of operations   (14 )             —          
    Adjusted EBITDA and Adjusted EBITDA Margin $ 532       23.9%     $ 546       23.3%  
                                   

    RECONCILIATION OF INCOME FROM OPERATIONS TO ADJUSTED OPERATING INCOME

      Three Months Ended March 31,    
      2025           2024    
                       
    Income from operations and Operating margin $ 432       19.4%     $ 280       12.0%  
    Adjusted for certain items:                  
    Amortization   48               60      
    Restructuring costs   —               18      
    Transaction and transformation   —               125      
    Adjusted operating income and Adjusted operating income margin $ 480       21.6%     $ 483       20.6%  
                                   

    RECONCILIATION OF GAAP INCOME TAXES/TAX RATE TO ADJUSTED INCOME TAXES/TAX RATE

      Three Months Ended March 31,
      2025   2024
               
    Income from operations before income taxes and interest in earnings of associates $ 303     $ 242  
               
    Adjusted for certain items:          
    Amortization   48       60  
    Restructuring costs   —       18  
    Transaction and transformation   —       125  
    Net periodic pension and postretirement benefits   75       (22 )
    Gain on disposal of operations   (14 )     —  
    Adjusted income before taxes $ 412     $ 423  
               
    Provision for income taxes $ 65     $ 48  
    Tax effect on certain items listed above(i)   28       46  
    Adjusted income taxes $ 93     $ 94  
               
    U.S. GAAP tax rate   21.5 %     19.9 %
    Adjusted income tax rate   22.7 %     22.3 %
    (i) The tax effect was calculated using an effective tax rate for each item.
       

    RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO FREE CASH FLOW

      Years Ended December 31,
      2025   2024
               
    Cash flows (used in)/from operating activities $ (35 )   $ 24  
    Less: Additions to fixed assets and software   (51 )     (60 )
    Free Cash Flow $ (86 )   $ (36 )
                   
    WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY
    Condensed Consolidated Statements of Income
    (In millions of U.S. dollars, except per share data)
    (Unaudited)
         
      Three Months Ended
    March 31,
      2025   2024
    Revenue $ 2,223     $ 2,341  
               
    Costs of providing services          
    Salaries and benefits   1,324       1,342  
    Other operating expenses   365       457  
    Depreciation   54       59  
    Amortization   48       60  
    Restructuring costs   —       18  
    Transaction and transformation   —       125  
    Total costs of providing services   1,791       2,061  
               
    Income from operations   432       280  
               
    Interest expense   (65 )     (64 )
    Other (loss)/income, net   (64 )     26  
               
    INCOME FROM OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES   303       242  
               
    Provision for income taxes   (65 )     (48 )
               
    INCOME FROM OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES   238       194  
               
    Interest in earnings of associates, net of tax   1       —  
               
    NET INCOME   239       194  
               
    Income attributable to non-controlling interests   (4 )     (4 )
               
    NET INCOME ATTRIBUTABLE TO WTW $ 235     $ 190  
               
    EARNINGS PER SHARE          
    Basic earnings per share $ 2.34     $ 1.84  
    Diluted earnings per share $ 2.33     $ 1.83  
               
    Weighted-average ordinary shares, basic   100       103  
    Weighted-average ordinary shares, diluted   101       104  
                   
    WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY
    Condensed Consolidated Balance Sheets
    (In millions of U.S. dollars, except share data)
    (Unaudited)
               
      March 31,   December 31,
      2025   2024
    ASSETS          
    Cash and cash equivalents $ 1,507     $ 1,890  
    Fiduciary assets   10,293       9,504  
    Accounts receivable, net   2,366       2,494  
    Prepaid and other current assets   1,295       1,217  
    Total current assets   15,461       15,105  
    Fixed assets, net   667       661  
    Goodwill   8,841       8,799  
    Other intangible assets, net   1,255       1,295  
    Right-of-use assets   487       485  
    Pension benefits assets   550       530  
    Other non-current assets   803       806  
    Total non-current assets   12,603       12,576  
    TOTAL ASSETS $ 28,064     $ 27,681  
    LIABILITIES AND EQUITY          
    Fiduciary liabilities $ 10,293     $ 9,504  
    Deferred revenue and accrued expenses   1,499       2,211  
    Current debt   549       —  
    Current lease liabilities   120       118  
    Other current liabilities   923       765  
    Total current liabilities   13,384       12,598  
    Long-term debt   4,761       5,309  
    Liability for pension benefits   552       615  
    Provision for liabilities   359       341  
    Long-term lease liabilities   498       502  
    Other non-current liabilities   296       299  
    Total non-current liabilities   6,466       7,066  
    TOTAL LIABILITIES   19,850       19,664  
    COMMITMENTS AND CONTINGENCIES          
    EQUITY(i)          
    Additional paid-in capital   11,017       10,989  
    Retained earnings   51       109  
    Accumulated other comprehensive loss, net of tax   (2,935 )     (3,158 )
    Total WTW shareholders’ equity   8,133       7,940  
    Non-controlling interests   81       77  
    Total Equity   8,214       8,017  
    TOTAL LIABILITIES AND EQUITY $ 28,064     $ 27,681  
         
    (i) Equity includes (a) Ordinary shares $0.000304635 nominal value; Authorized 1,510,003,775; Issued 99,210,847 (2025) and 99,805,780 (2024); Outstanding 99,210,847 (2025) and 99,805,780 (2024) and (b) Preference shares, $0.000115 nominal value; Authorized 1,000,000,000 and Issued none in 2025 and 2024.
         
    WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY
    Condensed Consolidated Statements of Cash Flows
    (In millions of U.S. dollars)
    (Unaudited)
         
      Years Ended March 31,
      2025   2024
    CASH FLOWS (USED IN)/FROM OPERATING ACTIVITIES          
    NET INCOME $ 239     $ 194  
    Adjustments to reconcile net income to total net cash from operating activities:          
    Depreciation   54       59  
    Amortization   48       60  
    Non-cash restructuring charges   —       11  
    Non-cash lease expense   25       27  
    Net periodic cost/(benefit) of defined benefit pension plans   88       (4 )
    Provision for doubtful receivables from clients   5       8  
    Benefit from deferred income taxes   (23 )     (9 )
    Share-based compensation   37       24  
    Net gain on disposal of operations   (14 )     —  
    Non-cash foreign exchange loss/(gain)   9       (1 )
    Other, net   9       8  
    Changes in operating assets and liabilities, net of effects from purchase of subsidiaries:          
    Accounts receivable   162       113  
    Other assets   1       (53 )
    Other liabilities   (691 )     (426 )
    Provisions   16       13  
    Net cash (used in)/from operating activities   (35 )     24  
               
    CASH FLOWS USED IN INVESTING ACTIVITIES          
    Additions to fixed assets and software   (51 )     (60 )
    Acquisitions of operations, net of cash acquired   (1 )     (15 )
    (Purchase)/sale of investments   (32 )     1  
    Net cash used in investing activities   (84 )     (74 )
               
    CASH FLOWS FROM FINANCING ACTIVITIES          
    Senior notes issued   —       746  
    Debt issuance costs   —       (7 )
    Repayments of debt   (1 )     (1 )
    Repurchase of shares   (200 )     (101 )
    Net proceeds from fiduciary funds held for clients   315       1,011  
    Cash paid for employee taxes on withholding shares   (2 )     (5 )
    Dividends paid   (88 )     (86 )
    Acquisitions of and dividends paid to non-controlling interests   —       (1 )
    Net cash from financing activities   24       1,556  
               
    (DECREASE)/INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH   (95 )     1,506  
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   80       (47 )
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD (i)   4,998       3,792  
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD (i) $ 4,983     $ 5,251  
    (i) The amounts of cash, cash equivalents and restricted cash, their respective classification on the condensed consolidated balance sheets, as well as their respective portions of the increase or decrease in cash, cash equivalents and restricted cash for each of the periods presented have been included in the Supplemental Disclosure of Cash Flow Information section.
       

    SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

      Years Ended March 31,
      2025   2024
               
    Supplemental disclosures of cash flow information:          
    Cash and cash equivalents $ 1,507     $ 1,893  
    Fiduciary funds (included in fiduciary assets)   3,476       3,358  
    Total cash, cash equivalents and restricted cash $ 4,983     $ 5,251  
               
    (Decrease)/increase in cash, cash equivalents and other restricted cash $ (411 )   $ 487  
    Increase in fiduciary funds   316       1,019  
    Total (i) $ (95 )   $ 1,506  
    (i) Does not include the effect of exchange rate changes on cash, cash equivalents and restricted cash.
       

    The MIL Network –

  • MIL-OSI Russia: Development of the digital economy and trends in the investment and construction process: the conference “Current problems of economics and management in construction” has ended

    Translation. Region: Russian Federal

    Source: Saint Petersburg State University of Architecture and Civil Engineering – Saint Petersburg State University of Architecture and Civil Engineering – At the section of young scientists

    On April 17–18, the III National (All-Russian) Scientific and Practical Conference “Current Problems of Economics and Management in Construction” was held at SPbGASU, organized by the Faculty of Economics and Management.

    In total, 120 reports were heard during the two days of the event. Both representatives of SPbGASU and scientists from other universities, including from the Republic of Belarus, Uzbekistan and Kyrgyzstan, took an active part in the work of the section.

    The first day of the conference was marked by the holding of a section of young scientists “First steps in economic science”, in which students of the St. Petersburg Technical College of Management and Commerce (SPb TKuIC), the Russian State Pedagogical University named after A. I. Herzen (RSPU named after A. I. Herzen), Moscow Automobile and Road State Technical University (MADI), as well as representatives of student science from SPbGASU took part.

    At the opening of the young scientists’ section, Dean of the Faculty of Economics and Management Galina Tokunova noted the importance of participation in scientific events of students of secondary education institutions and called for further cooperation of colleges with SPbGASU in scientific and educational processes. Deputy Dean of the Faculty of Economics and Management for Research Yuri Tsvetkov gave a report “Involvement of Young Scientists in Scientific Activity”, highlighting the incentives and rewards that await young researchers in the course of active scientific work.

    The key topics of the section were the development of the digital economy, as well as modern trends in the functioning of the investment and construction process. Victoria Filippova, a student of St. Petersburg TCUiK, prepared a report “Optimization of supply chain management using digital financial assets: opportunities and prospects”, having examined in detail legislative initiatives in this area, the advantages of using this tool in supply chain management and the stages of implementation in logistics processes.

    Daniil Velichko, a student at St. Petersburg TCUiK, presented a report entitled “The Digital Economic Miracle of Russia,” highlighting the advantages of the digital transformation of the economy and assessing the level of digital skills among Russian citizens. In addition, Daniil showed a video about the digital economy prepared by college students.

    The section focused on the research conducted by students of the Herzen State Pedagogical University of Russia – representatives of the People’s Republic of China. Bi Yanwen conducted a comparative analysis of investments in infrastructure development in China and Russia, Xu Yijie compared the current state of the real estate market in the two countries, Chang Jiangshuai spoke about the principles of sustainable development in the construction sector, Lu Haoran studied the issues of antitrust regulation in China, Hao Boyuan presented the main challenges and prospects for the rational use of limited resources in the context of China’s rapid economic growth.

    The conference traditionally had four main sections: “Language training for future professionals”, “Economics of construction and housing and communal services: trends and prospects”, “Economic security: experience, problems, prospects” and “Current issues of management in construction”.

    The conference organizing committee selected the following reports.

    Researchers Evgeny Rossokha and Anastasia Frantsuzova from the Republic of Belarus focused on the ESG orientation of the Belarusian housing policy, which includes housing affordability, improvement of the local area and renovation.

    Vladislav Buchi, a representative of Peter the Great St. Petersburg Polytechnic University, made a presentation on the prospects for the development of multi-story industrial warehouse facilities in an urban format, which is very relevant in the context of the development of urban areas in St. Petersburg due to the acute shortage of warehouse complexes in the region.

    The research of the Master’s student of the Department of Construction Economics and Housing and Public Utilities Daria Batyreva was devoted to the current issues of managing the cost of construction projects in the field of construction production and design; the work highlighted particularly important and complex areas that attract the attention of all specialists in the field of project management.

    The curator of the section “Economic Security: Experience, Problems, Prospects”, Associate Professor of the Department of Economic Security Vladislav Uskov noted that this section has become a unique platform for exchanging opinions in the field of protecting the economic interests of the state and business, economic security and risk assessment. In particular, fourth-year student Meri Kopaleishvili presented a report on the topic “Digital Transformation of Development: Innovative Technologies and Marketing Strategies as a Factor of Sustainability in Conditions of Economic Instability”, Ksenia Danshina prepared a study “External Debt as a Threat to the Financial Security of the State”. A researcher from Peter the Great St. Petersburg Polytechnic University touched upon the problems and prospects of economic security and artificial intelligence.

    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 Russia: Honoring History, Looking to the Future: GUU Strengthens Russian-Chinese Cooperation

    Translation. Region: Russian Federal

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

    On April 22, 2025, the Institute of China and Modern Asia of the Russian Academy of Sciences and the Russian Center for the Study and Research of Xi Jinping’s Thought on Socialism with Chinese Characteristics in a New Era, with the support of the Chinese Embassy in Russia, held a round table on the topic “Joint Implementation of the Three Global Initiatives to Build a Community of Shared Future for Humanity.” The event was attended by Fanis Sharipov, Director of the Center for Socio-Economic and Political Studies of China at the State University of Management.

    The event took place at the Chinese Cultural Center with the participation of Russian and Chinese business circles, orientalists and other distinguished guests.

    The first to speak was Ambassador Extraordinary and Plenipotentiary of the People’s Republic of China to the Russian Federation Zhang Hanhui. Then, reports were presented by the First Deputy Chairman of the International Affairs Committee of the Federation Council Andrei Denisov, Director of the Institute of China and Modern Asia of the Russian Academy of Sciences Kirill Babaev, Chairman of the Union of Chinese Entrepreneurs in Russia, Deputy Chairman of the Chinese-Russian Friendship Society Zhou Liqun and other representatives of Russian and Chinese business circles, orientalists and honored guests.

    The State University of Management was represented by the Director of the Center for Socio-Economic and Political Research of China Fanis Sharipov, who noted in his speech that on December 18, 2024, a seminar on the topic “The Leader of China in My Eyes – Initiative of Global Civilization in the Form of a Presentation of the 4th Volume of Xi Jinping’s Book “On Public Administration” was held within the walls of our university, and on February 28 of this year, the State University of Management and Renmin Huabao held a round table on the topic “High-Quality Development of the Chinese Economy” on the eve of the next congress of the National People’s Congress of the People’s Republic of China in the Moscow office of the respected publishing house.

    Following the round table, a collection of studies on the implementation of the global development initiative, the global security initiative, and the global civilization initiative will be published.

    On April 23, 2025, at the invitation of the Russian-Chinese Friendship Society, students and teachers of the Russian-Chinese program “International Manufacturing Business” took part in the opening ceremony of the Chinese-Russian photo exhibition “Nobody is Forgotten, Nothing is Forgotten” dedicated to the 80th anniversary of the Great Victory. The event was organized by the Europe and Asia Broadcasting Center of the People’s Republic of China Foreign Language Literature Publication and Distribution Administration (Renmin Huabao Publishing House) and the Russian-Chinese Friendship Society.

    The following speakers spoke at the opening of the exhibition: Feng Litao, Minister-Counselor of the Embassy of the People’s Republic of China in the Russian Federation, Director of the Chinese Cultural Center in Moscow; Galina Kulikova, First Deputy Chairperson of the Russian-Chinese Friendship Society; Yu Jia, Deputy Editor-in-Chief of the Center for Broadcasting to Europe and Asia of the PRC Office of Publication and Distribution of Literature in Foreign Languages; Zhou Shenko, Editor-in-Chief of the Shandong Broadcasting Corporation.

    Subscribe to the TG channel “Our GUU” Date of publication: 04/24/2025

    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: EngageLab Showcases AI-Powered Omnichannel Customer Engagement Solutions at Inaugural GITEX Asia 2025

    Source: GlobeNewswire (MIL-OSI)

    SINGAPORE, April 24, 2025 (GLOBE NEWSWIRE) — EngageLab, a global leader in AI-powered omnichannel customer engagement solutions, proudly participated in the inaugural GITEX Asia 2025, held in Singapore from April 23-25. As Asia’s largest and leading technology and innovation event, and the Asian debut of the world’s largest tech show GITEX GLOBAL, the summit, themed “AI Everything Singapore,” convenes senior executives and decision-makers seeking transformative technologies. EngageLab stands out as a trusted partner, demonstrating how its AI-driven omnichannel platform empowers businesses to deliver personalized, impactful experiences across multiple touchpoints, fostering stronger relationships and driving global growth.

    The inaugural GITEX Asia brings together over 700 global enterprises and startups from 70+ countries, more than 25,000 tech buyers, and over 250 active investors. At the event, EngageLab engaged with leaders from diverse industries, addressing unique challenges in customer communication, data integration, and operational efficiency, particularly for businesses operating across borders.

    EngageLab’s Distinctive Edge Secures Strategic Interest

    During a pivotal discussion with a leading Indian application and website development company, EngageLab’s unparalleled strengths in global messaging infrastructure and dedicated local support took center stage. The firm, seeking robust push notification solutions for their diverse client base, was impressed by EngageLab’s superior deliverability, multi-channel reliability, and responsive customer service tailored to regional needs.

    The conversation quickly evolved into a strategic alignment, as the company recognized EngageLab’s potential to elevate their clients’ communication strategies through its integrated engagement platform. By seamlessly combining AppPush, WebPush, Email, OTP, SMS, and WhatsApp Business, EngageLab demonstrated its ability to deliver personalized, compliant messaging across the entire customer journey to achieve unmatched engagement and conversion rates.

    The mutual enthusiasm and alignment of goals have set the stage for what promises to be a highly impactful collaboration.

    Why EngageLab Stands Out

    GITEX Asia 2025 underscores EngageLab’s role as a trusted innovator in AI-powered customer engagement, recognized for:
    ● Omnichannel Customer Engagement: Seamlessly integrating multiple communication channels for cohesive, personalized customer journeys.
    ● AI-Powered Insights: Leveraging real-time analytics and user behavior tracking to optimize engagement strategies and maximize ROI.
    ● Reliable Global Infrastructure: Strategically distributed global data nodes (including Singapore, USA, Germany) ensure high delivery rates (40% higher than other vendors for push notification and 99.97% for email), low latency, and compliance with local regulations like GDPR & DPPA – crucial for cross-border operations.
    ● Superior Channels & Service: Offering demonstrably better message deliverability and dedicated technical support compared to competitors.

    Driving the Future of Customer Engagement

    As GITEX Asia 2025 unfolds, the future of customer engagement clearly lies in personalization, automation, and seamless omnichannel communication. EngageLab is proud to lead this transformation, empowering businesses worldwide to unlock the full potential of their customer engagement strategies.

    About EngageLab

    EngageLab is a world-leading provider of AI-powered omnichannel customer engagement solutions, empowering businesses to optimize customer communication, enhance engagement efficiency, and drive growth. With a focus on AI-driven personalization, omnichannel integration, and global scalability, EngageLab serves as a trusted partner for enterprises worldwide.

    For more information, visit www.engagelab.com.

    Media Contact:
    Email: marketing@engagelab.com
    Website: www.engagelab.com

    The MIL Network –

  • MIL-OSI United Kingdom: Career Insight: Nadia, Trainee Solicitor, HM Revenue & Customs

    Source: United Kingdom – Government Statements

    Case study

    Career Insight: Nadia, Trainee Solicitor, HM Revenue & Customs

    Nadia provides an insight into her training within HMRC Legal Group

    I am a trainee solicitor, currently in my second seat, working in HM Revenue & Customs (HMRC) Legal Group’s VAT Litigation team. My current work includes conducting litigation and looking at the VAT treatment of certain supplies, like food, beauty procedures, books, and marketing deals from some big household names. A big part of the team’s work is also focusing on serious non-compliance fraud cases and various VAT avoidance schemes. Is Jaffa Cake a biscuit or a cake? That is the type of work you would be able to be involved in working for HMRC’s Legal Group.

    When applying for a training contract at HMRC, I never truly understood what being a government lawyer would be like. As HMRC’s lawyers, we are protecting billions of pounds that are then given back to the community in the way of public services, like healthcare, police and many other areas funded by the taxpayers. It’s a ‘pinch-me’ moment knowing that your work is meaningful.

    In my first seat in Business and Property Taxes Litigation team, and continuing into my second seat, I was given a lot of responsibility from the get-go. I am leading my own cases, managing clients that are experts in a tax field and working with the country’s best counsel. As a trainee, you get to experience various aspects of litigation, whether it is drafting statements of case, creating bundles, attending hearings, or even doing a bit of advocacy, you will not be bored. Some litigation teams are more fast paced than others, but that’s the beauty of it, you will be able to steer your training in the direction you want it to go.

    I have truly enjoyed my time as a trainee so far and have been given the opportunity to get involved in work that I never thought I would be able to as a trainee. As strange as it may seem, the highlight of my first seat was when my counsel had suddenly fallen ill on the morning of an important hearing that I had been preparing for months. After dozens of calls with different Chambers, the tribunal, clients, and understandably very unhappy opposing counsel, we managed to adjourn the hearing. The feeling of accomplishment could not be described.

    I would recommend a career at HMRC to anyone interested in public service and challenging, interesting, and meaningful work.

    Updates to this page

    Published 24 April 2025

    MIL OSI United Kingdom –

  • MIL-OSI Europe: Workplace Relations Commission publishes 2024 Annual Report

    Source: Government of Ireland – Department of Jobs Enterprise and Innovation

    24th April 2025

    The Workplace Relations Commission (WRC) today published its Annual Report for 2024.

    In welcoming the Report, Mr. Peter Burke, Minister for Enterprise, Tourism and Employment said:

     “The Annual Report for 2024 highlights the WRC’s strong delivery across all services provided to the public including inspection, the provision of information, conciliation, adjudication, mediation and other advisory services. In the Programme for Government, there is a firm commitment to support the central role played by the Workplace Relations Commission and the Labour Court in industrial relations and employment matters.”

    Minister Burke added, 

    “The WRC continues to play a critical role in ensuring that employment rights are upheld for all, recovering over €2 million in unpaid wages on foot of 5,156 inspections completed during 2024. The WRC plays a leading role in contributing to the harmonious industrial relations climate we enjoy, with data for conciliation services showing an 85% success rate.

    “Strong and well-functioning industrial relations institutions are an important and very valued element of our economy, supporting and promoting fair wages, particularly in low paid sectors. Collectively bargained agreements also play a positive role in increasing productivity for businesses.”

    Alan Dillon, Minister of State for Small Business and Retail at the Department also welcomed the Report, adding: 

    “The importance of the WRC is evident in the demand for its services with 59,400 calls to its information services, and over 4 million website views.

    Commenting on the WRC’s Digitisation initiatives, Minister Dillon added, 

    “I welcome that the WRC continued with its digitisation ambitions, introducing the second phase of its Robotic Process Automation in 2024 along with launching its eComplaint form.”

    Dr David Begg, Chairperson of the Board of the WRC commented:

    “The WRC continued to perform strongly in 2024, and its Annual Report for the year demonstrates the effectiveness of the WRC across the entire range of services it provides. Our aim is to continuously improve our offering to our stakeholders, and we are very grateful for the trust and confidence they repose in us.”

    Ms Audrey Cahill, Director General of the WRC, said:

    “The Annual Report 2024 offers a reflective overview of the year, highlighting our key achievements and milestones throughout 2024. It also provides a glimpse into the strategic planning currently underway, which is designed to propel the organisation forward and ensure the effective delivery of our vision—all while meeting the statutory obligations set out in our purpose. 

    “We remain responsive to the evolving demands placed on our services across all divisions. By closely monitoring socioeconomic trends and the ongoing expansion of employment rights, we continue to adapt and align our efforts to meet the changing needs of those we serve.”

    Ms Cahill concluded by thanking the Minister, our parent Department, the Workplace Regulation and Economic Migration (WREM) Division and all WRC Stakeholders for their support throughout the year.

    An infographic from the Report summarising the WRC’s key performance indicators in 2024, is included below, indicating:

    Information Services:

    Over 59,400 callers were helped by the WRC’s Information and Customer Service staff providing information on employment, equality, or industrial relations matters. There were over 4.3m pageviews of the WRC’s website.

    Inspections:

    A total of 5,156 inspections were completed in 2024 with €2.15m recovered in unpaid wages. Successful prosecutions were up 27% on 2023.

    Adjudications:

    The WRC saw an increase of 6% in Adjudication Hearings offered in 2024 compared to 2023. In total, 9,054 Adjudication files were offered a hearing in 2024, an average of 180 per week.

    Conciliation Service:

    The WRC’s Conciliation Service was involved in the resolution/prevention of a number of high-profile disputes. Its success rates remain high and continues to be above 85%.

    The new Public Service Agreement 2024- 2026 was agreed as a successor agreement to Building Momentum. This followed two months of intense negotiations between the Government and the Public Sector Trade Unions/Associations at the WRC.

    Mediations:

    The WRC pre-adjudication mediation service delivered a total of 894 mediations in 2024, which is a 14% increase compared to 2023.

    Code of Practice:

    The Code of Practice on the Right to Request Remote and/or Flexible Working was published on 7 March 2024.

    Outreach:

    WRC staff across all Divisions, attended over 60 outreach events involving a range of schools and colleges, enterprise bodies, business and employee representative bodies and state bodies. These events are a very useful and important method of engaging with the public to provide information on WRC services.

    Digital Strategy:

    The new online complaint form provides greater flexibility and was made available to the public in September 2024. This complaint portal replaces the old technology of the previous application form which many found difficult to use and was inaccessible for many service users.

    The Workplace Relations Commission Annual Report 2024 is available here

    NOTES TO EDITOR

    Workplace Relations Commission

    The Workplace Relations Commission was established on 1 October 201

    The main functions of the WRC are to:

    • Promote the improvement of workplace relations and the maintenance of good workplace relations,
    • Promote and encourage compliance with relevant employment legislation.
    • Provide guidance in relation to compliance with Codes of Practice,
    • Conduct reviews of, and monitor developments in, workplace relations generally,
    • Conduct or commission relevant research and provide advice, information and the findings of research to Joint Labour Committees and Joint Industrial Councils,
    • Advise the Minister for Enterprise, Trade and Employment on the application of, and compliance with, relevant legislation,
    • Provide information to the public in relation to employment legislation, (other than the Employment Equality Act).

    With a wide workforce of just over 235 staff, supplemented by 36 external adjudicators, and with offices in Dublin, Carlow, Cork, Ennis and Sligo, the WRC’s mission is to deliver high-quality service nationally, free of charge, which is

    • speedy, user-friendly, independent, effective, impartial, and cost-effective,
    • provides variable means of dispute resolution, redress, and effective enforcement, and improves workplace relations generally.

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    MIL OSI Europe News –

  • MIL-OSI United Kingdom: Ban Airbnb tax breaks and introduce additional charges for short term lets

    Source: Scottish Greens

    24 Apr 2025 Housing

    Homes are for living in, not for profiteering.

    More in Housing

    The Scottish Greens have tabled plans to ban tax breaks for short term let operators profiteering from houses that could be used to tackle Scotland’s homelessness crisis.

    Green MSP Ross Greer has lodged an amendment to the Housing (Scotland) Bill which would ban short term let operators from receiving relief from Non-Domestic Rates (NDR), commonly known as business rates. A second amendment lodged by the MSP would give Ministers the power to charge short term lets an additional NDR rate instead.

    At present short term lets typically enjoy up to 100% NDR relief through policies such as the Small Business Bonus Scheme.

    These reforms would discourage businesses from buying up homes to turn into short term lets, like Airbnbs. It is hoped the move would encourage the sale of homes currently used as short term lets to free up housing for people to actually live in, rather than for businesses to profit from.

    Since the last election, the Scottish Greens have doubled the tax paid when buying a holiday home or buy-to-let property and given councils the power to double Council Tax on holiday homes.

    These reforms have had the desired effect on house purchases, with 2455 fewer second homes bought last year than in 2023, the largest decrease in a decade. Combined, these will also raise over a quarter of a billion pounds for public services in the current financial year.

    Mr Greer said:

    “There are communities across the country where the greed of short term let operators and buy-to-let landlords has destroyed any chance of local young people ever owning their own home.

    “Given the damage they’ve done to the housing market, there is absolutely no need for short term let operators to continue receiving massive tax breaks. Instead, they should pay a bit more in tax to fund the extra affordable housing we need to solve the crisis they helped to cause.

    “The changes already delivered by Green MSPs have reduced the number of second and holiday homes bought each year, freeing up more properties for people who need a home to live in and raising millions of pounds for vital services like schools and hospitals.

    “We will continue cracking down on the rich hoarding homes and working to free up houses for people to actually live in.

    “We have thousands of homeless people across Scotland while many homes are bought up and used as Airbnbs. The Scottish Greens believe housing should be for people and not for profit.”

    MIL OSI United Kingdom –

  • MIL-OSI Russia: The new season of the project “Summer in Moscow” invites entrepreneurs to participate

    Translation. Region: Russian Federal

    Source: Moscow Government – Government of Moscow –

    For Moscow entrepreneurs, the main city projects “Summer in Moscow” and “Winter in Moscow” are an opportunity to make a name for themselves. By participating in them, businesses held at least nine thousand events. The organizers were restaurateurs, representatives of educational and creative organizations, sports studios and other companies. Among the most popular events are master classes, excursions around the center of the capital, zumba training, concerts. For the companies themselves, such events in popular places in the city helped attract new customers and make brands more recognizable.

    As entrepreneurs note, thanks to participation in large-scale capital special projects, businesses increase sales and gain a loyal audience. As part of the new season of the project “Summer in Moscow” From June 1, you can organize points of sale for your products, hold an event in one of 200 popular city spaces, build your own site in places with high traffic and interested visitors.

    The city is ready to actively support the project partners. Even if entrepreneurs do not have ready-made solutions, but they want to participate, website You can submit an application for the project – the experts of the organizing committee will consult and offer ideas.

    Businesses have access to sites in different areas of Moscow — in the most popular places among city residents and tourists, public spaces, including parks. You can choose the territories of city estates (as part of the integration with the festival “Moscow Estates”), festival sites of “Moscow Seasons” and pavilions of the “Made in Moscow” project.

    From May 20, individuals and small businesses will be able to book a site on the mos.ru website in the service “Everybody out on the street!”. Among the places for booking are chalets for master classes, stages, gazebos, sports and dance floors.

    The audience of the Summer in Moscow project in 2024 was more than 38 million visitors – city residents and tourists. Guests were attracted by the diverse program, the breadth and accessibility of events.

    Business representatives and non-profit organizations of the capital can join the main event of the season – the project “Summer in Moscow”Those wishing to declare their own brand and receive support from the city for the development of their business have the opportunity to organize an event at a city site, hold an event at their organization under the brand “Summer in Moscow”, integrate their brand into the design of a city festival or event, get a point of sale for their own products at a capital site, take part in a competition for the seasonal design of facades and shop windows.

    Get the latest news quickly official telegram channel the city of Moscow.

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

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

    https: //vv.mos.ru/nevs/ite/153098073/

    MIL OSI Russia News –

  • MIL-OSI Global: Threatening diversity, threatening growth: the business effects of Trump’s anti-DEI and anti-trans agendas

    Source: The Conversation – France – By Matteo Winkler, Professeur associé en droit et fiscalité, HEC Paris Business School

    Recent months have seen a dramatic shift in US policies on diversity, equity, and inclusion (DEI). These changes carry deep economic consequences. President Donald Trump’s executive orders aim to ban DEI initiatives in federal agencies and contractors, and private companies have felt pressure to weaken or drop their DEI programmes. Trump has framed what was once a corporate safeguard against discrimination as “illegal and immoral”, marking a stark reversal in legal and business norms. Federal judges have blocked some of Trump’s orders, or elements of them, and some legal processes are ongoing.

    Transgender rights have become a lightning rod in this shifting landscape. The barrage of federal directives seeks to challenge – or outright eliminate – protections in areas ranging from health care to education to the military. Beyond the immediate harm to trans individuals, these policies pose threats to multinational companies that have long defended inclusive workplace values. Their leaders must now navigate a cultural minefield where staying silent risks public backlash, while openly supporting trans employees can invite legal and political complications. The business repercussions of this moral issue could affect everything from brand reputation to talent retention.


    A weekly e-mail in English featuring expertise from scholars and researchers. It provides an introduction to the diversity of research coming out of the continent and considers some of the key issues facing European countries. Get the newsletter!

    The economic imperative of DEI initiatives

    There is a growing ensemble of research suggesting that DEI policies are not just nice-to-have but a corporate imperative. This year, the World Economic Forum reported that organizations that include DEI in their core business strategies improve performance, innovation and employee satisfaction. These findings are in line with other studies, which have consistently demonstrated that inclusive workplaces not only attract top talent but perform better financially and have higher returns on assets and net income.

    With regard to people identifying as LGBTI+, a 2024 report by the Organization for Economic Co-operation and Development highlighted that inclusive policies enable LGBTI+ individuals to achieve their full employment and productivity potential, benefiting both their well-being and society at large. Moreover, according to Open for Business, a think tank whose mission is making a case for LGBTQ+ inclusion in private and public settings, companies with “larger LGBTQ+ workforce benefit from diverse perspectives but also foster environments where innovation and productivity thrive”. It has also been found that human rights violations against LGBTI+ people diminish economic output at the micro level, suggesting that inclusive societies are more likely to experience robust economic growth.



    À lire aussi :
    Business schools are facing challenges to their diversity commitments. They must reinforce them to train leaders effectively

    Research has also shown that trans-inclusive business practices have long been associated with innovation, employee satisfaction and market competitiveness. Companies that provide gender-neutral bathroom access, introduce the inclusive use of pronouns and support employees’ gender transitions have been proven to foster relational authenticity in the workplace.

    Discrimination and exclusion, by contrast, not only harm individuals but also impede economic growth by limiting the available talent pool and reducing overall productivity. In September 2024, the American Civil Liberties Union (ACLU) reported that “laws and policies designed to restrict or prevent access or supports for transgender and nonbinary people” endanger LGBTQ+ individuals and their allies, leading to increased fear, lack of safety and a rise in anti-LGBTQ+ violence. More generally, these laws and policies can also deter businesses from investing in regions perceived as discriminatory. Also in September, the Movement Advancement Project identified that the lack of legal protection against discrimination contributes to economic instability for LGBTQ+ families, which can lead to wage gaps, job insecurity and reduced access to benefits, ultimately contributing to reduced consumer spending and lower economic participation.

    Language targeting trans rights and visibility

    Despite the benefits of DEI initiatives, the current US administration has sought to enact several policies aimed at dismantling them, resulting in organizations, both public and private, to suspend funding for DEI and outreach programmes. In Trump’s executive orders, anything – policy, programme or initiative – related to or benefitting trans people in access to healthcare, academic research, scientific inquiry, school policies, personal safety, participation in sports, and military service is now rejected as “gender ideology extremism”.

    Targeting sports, education and the military is functional to an ideological battle aimed at erasing spaces where trans people are most vulnerable. These spaces are also formative arenas in shaping national identity and the public perception of DEI initiatives. When they become politicized, they can also affect how businesses frame their values, manage risks and engage with their different stakeholders.



    À lire aussi :
    Anti-DEI guidance from Trump administration misinterprets the law and guts educators’ free speech rights

    The anti-trans executive orders begin by redefining the term “sex” for interpretations of federal law. According to the text of “Defending Women from Gender Ideology Extremism and Restoring Biological Truth to Federal Government”, a person is either male or female, which is determined by their reproductive cells at conception – a definition in which biology takes precedence over individual rights and legal protections. “Keeping Men Out of Women’s Sports” weaponizes this “biological truth” by threatening to cut off federal funds to schools that allow trans athletes to participate in them. “Prioritizing Military Excellence and Readiness” equates being transgender with medical or physical incapacity despite no evidence suggesting that trans service members negatively impact military readiness. “Ending Radical Indoctrination in K-12 Schooling” seeks to prevent schools from teaching about gender identity, which would strip trans youth of critical support systems. And “Protecting Children from Chemical and Surgical Mutilation” describes gender-affirming healthcare as “destructive”.

    The ripple effects of this anti-trans rhetoric extend into the private sector, compelling businesses to reevaluate their DEI strategies in fear of backlash or scrutiny. Even before the last US presidential election, companies such as Ford, Harley-Davidson and Lowe’s withdrew their participation in the Corporate Equality Index, a national benchmarking tool on corporate policies and practices related to LGBTQ+ workplace equality. In the wake of Trump’s anti-DEI and anti-trans orders, organizers of various Pride events in the US and Canada learned that some corporations, including longtime sponsors, had decided not to fund them. And according to the New York Times, some companies erased language and terms related to DEI from annual reports filed this year, including Dow Chemical, whose reference to LGBTQ+ employee resource groups disappeared from its public documents.

    Navigating between inclusive values and anti-DEI pressure

    Three patterns seem to be emerging on how companies are navigating the tension between values that are inclusive of LGBTI+ people and the growing pressure to scrub DEI commitments within the US context. For the moment, these patterns do not reflect formalized strategies but adaptive responses to an environment that has grown in complexity in a very short time. Some corporate actions reflect deliberate strategy aimed at protecting global consistency, while others appear more reactive, shaped by local market pressures.

    The first pattern involves establishing a sort of internal firewall between US and international operations. Banco Santander provides a clear example of this approach. Thus far, it has maintained global DEI commitments such as tying executive bonuses to increased gender equality in leadership. This group stated that such targets would not be applied to countries where governmental policies target DEI. In this pattern, DEI programmes are maintained abroad but are dismantled in the US to minimize political exposure in the latter.

    The second approach, observed at accounting firm Deloitte, is a cultural split between US operations and those overseas: while entities under the same global brand may still share data, practices, or strategic frameworks internally, they now adopt publicly distinct positions on DEI. Deloitte UK has remained vocal on its DEI commitments, highlighting the cultural and political fault lines that multinationals must now navigate.

    The third approach is a retraction of DEI altogether. Target offers a striking example. In 2023, under increased political and consumer pressure, the company rolled back some of its LGBTQ+ inclusion efforts by reducing the number of Pride-related items for sale. In 2025, four days after Trump’s inauguration, Target announced it would “end its three-year DEI goals”, cease reporting to the Corporate Equality Index and “end a program focused on carrying more products from Black- or minority-owned businesses”, as reported by CNBC. The moves resulted in considerable public criticism, and more notably, coincided with a marked drop in foot traffic – “nearly 5 million fewer visits” over a four-week period – revealing reputational and financial risks associated with the abandoning of DEI policies. By contrast, bulk retailer Costco, which said three days after the inauguration that its shareholders voted against a proposal seen as unfriendly to the company’s DEI programmes, “saw nearly 7.7 million more visits” during that same stretch.



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    A boycott campaign fuels tension between Black shoppers and Black-owned brands – evoking the long struggle for ‘consumer citizenship’

    In light of the evidence, it is clear that undermining DEI initiatives poses substantial risks – not just to human dignity, but to economic competitiveness. Businesses and policymakers must recognize that DEI is not merely a social or ethical imperative but a core strategy for growth and innovation. By fostering environments where all individuals can thrive, we unlock the full potential of our workforce and ensure sustainable economic growth.

    Conversely, discriminatory policies contribute to social instability, brain drain and economic stagnation. In the United States, the rollback of DEI initiatives and the marginalization of transgender individuals threaten to erode the nation’s ability to uphold human rights and maintain business competitiveness. History demonstrates that exclusionary policies ultimately harm societies rather than strengthen them. The question remains whether the US can afford to sacrifice social stability and economic growth in pursuit of ideological battles. The evidence suggests that it cannot.

    Matteo Winkler is a member of the Open for Business Academic Committee. He has received funding from the HEC Foundation.

    Marcelle Laliberté is a member of Women in Aerospace Europe and HEC We&Men, and a contributor to the UN`s High Advisory Board on Governing AI for Humanity.

    – ref. Threatening diversity, threatening growth: the business effects of Trump’s anti-DEI and anti-trans agendas – https://theconversation.com/threatening-diversity-threatening-growth-the-business-effects-of-trumps-anti-dei-and-anti-trans-agendas-255040

    MIL OSI – Global Reports –

  • MIL-OSI Economics: Using the Incoterms® 2020 rules to manage tariff risk in international trade

    Source: International Chamber of Commerce

    Headline: Using the Incoterms® 2020 rules to manage tariff risk in international trade

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    MIL OSI Economics –

  • MIL-Evening Report: 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 and battery electric vehicles (EVs).

    The Albanese government pitched these tax breaks as a way to make EVs cheaper to buy and more competitive with internal combustion engine cars. Since the tax break came in, EV popularity has surged. Almost 100,000 people have taken out a novated lease on an EV between mid-2022, when the scheme began, and February 2025.

    The Coalition has been consistently critical of the tax breaks on cost grounds. The scheme has been far more popular than government forecasts envisaged, leading to concerns about a cost blowout. Rather than the A$55 million forecast for 2024-25, the scheme has cost ten times that – $560 million. EV buyers are much more likely to be wealthy, meaning the tax break has been snapped up by people who need it less. The policy is, however, encouraging car suppliers to import more affordable EVs.

    These concerns don’t mean Labor’s policy is bad. Far from it – this tax break is currently the only policy working to drive down transport emissions, now the second-largest source of emissions in Australia. The Coalition has given no indication it would replace the EV tax break with other ways to cut transport emissions.

    Electric vehicles still cost more than their internal combustion engine counterparts.
    meowKa/Shutterstock

    What is this tax break – and did it work?

    In mid-2022, the Albanese government introduced a tax break to encourage uptake of electric vehicles. The measure initially covered hydrogen fuel-cell, battery-electric and plug-in hybrid vehicles, but plug-in hybrids are no longer eligible as of April 1.

    The tax break works by giving EV buyers who are current employees a fringe benefits tax exemption for low- or zero-emissions vehicles both held and used for private use. The fringe benefits tax is a flat tax of 47% levied on the car benefit provided by the employer. For the exemption to apply, the retail price of the car has to be under the threshold for the luxury car tax of $91,387.

    People in high incomes brackets often like to negotiate with their employer to have a car included as part of their salary package so they can reduce their taxable income. The fringe benefits tax is levied on these types of benefits.

    The scheme works by exempting purchasers of new EVs from fringe benefits tax. A battery electric Hyundai Kona retailed for around $60,000 last year – 32% more in price than its internal combustion engine equivalent. The fringe benefits tax of around $11,700 annually ends up being larger because of the EV’s high sale price. Without this exemption, the tax acts as a major disincentive for the uptake of EVs.
    By and large, electric vehicles cost significantly more than their traditional counterparts. This price gap is dropping as new manufacturers enter the market, but it’s still there. While EVs have lower fuel costs, the higher upfront cost has put off many prospective buyers. This is the issue Labor’s tax exemption was intended to fix.

    Has the scheme worked? Overall, yes. In 2022, EVs accounted for just 3.3% of all new cars sold in Australia. By 2023, almost two-thirds of battery electric, vehicles were sold to private buyers, a 145% increase. And in 2024, the figure had almost tripled to 9.6%. Without this tax incentive, Australia’s uptake of EVs would most likely be much lower.

    If a future Coalition government ended the tax break, Australia would return to the pre-2022 era, where fringe benefits tax acted as a significant disincentive for EVs.

    The tax break isn’t perfect – but it’s better than nothing

    Australia’s main power grid now runs on an average of 40% clean energy. As a result, emissions have been tracking downward in these sectors. But transport emissions are still rising. Transport is now Australia’s second-largest source of emissions – almost 100 million tonnes (Mt) out of our total emissions of 434 Mt. By 2030, transport is projected to be the largest source of domestic emissions.

    Under the 2015 Paris Agreement, nations agreed at least 20% of light vehicles on their roads would be low- or zero-emissions by 2030. But Australia is lagging well behind the pack on the shift to cleaner transport.

    At present, just 1% of Australia’s car fleet is electric. Even EVs make up close to 10% of new sales, changing the makeup of the entire fleet (16.8 million) will take years.

    By contrast, almost 90% of new cars sold in Norway are electric, according to a 2024 report from the International Energy Agency. In China it’s just under 60%, Sweden it’s 60%, Netherlands 30%, the UK 25% and the United States 10%.

    These countries have used a combination of tax incentives and fuel efficiency regulations to drive rapid uptake. While Labor has moved to introduce both of these, progress hasn’t been as fast.

    Back to the fuel guzzlers?

    Australians rely heavily on cars. But the long lack of fuel efficiency standards mean many models sold here emit much more than in other OECD countries – 150 grams per kilometre versus 107 across 29 European Union nations as of 2023. Put another way, a new car in Australia uses 40% more fuel than its equivalent in the EU. Many drivers prefer big cars, such as the top-selling Ford Ranger.

    If the Coalition ends the tax break and pulls the teeth of new emissions standards, it would bring recent modest progress to a halt.

    The Coalition has rightly pointed out the inequity of the tax break as it stands. My research has shown this could be fixed. Throwing the scheme out without proposing another way to cut transport emissions is disheartening.

    Anna Mortimore receives funding from Reliable Affordable Clean Energy Cooperative Research Centre for 2030 (RACE for 2030).

    – ref. Back to the fuel guzzlers? Coalition plans to end EV tax breaks would hobble the clean transport transition – https://theconversation.com/back-to-the-fuel-guzzlers-coalition-plans-to-end-ev-tax-breaks-would-hobble-the-clean-transport-transition-255211

    MIL OSI Analysis – EveningReport.nz –