Commerce – Page 468 – NewzIntel.com

MIL-OSI USA: Relief Still Available to Texas Small Businesses and Private Nonprofits Hit by Spring Drought: Don’t Miss the Deadline to Apply for an SBA Disaster Loan!

Source: United States Small Business Administration

SACRAMENTO, Calif. – The U.S. Small Business Administration (SBA) is reminding eligible small businesses and private nonprofit (PNP) organizations in Texas of the Feb. 24, 2025 deadline to apply for low interest federal disaster loans to offset economic losses caused by the drought that began April 23, 2024.

The disaster declaration covers the counties of Brewster, Crane, Crockett, Dimmit, Frio, Irion, Jeff Davis, La Salle, Maverick, Pecos, Reagan, Reeves, Schleicher, Sutton, Terrell, Upton, Val Verde, Ward, Webb and Zavala.

Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries, and PNPs that suffered financial losses directly related to the disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.

EIDLs are available for working capital needs caused by the drought and are available even if the business or PNP did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred.

“When disasters hit rural communities, access to working capital offers a lifeline to impacted small businesses and private nonprofits,” said Randle Logan, acting associate administrator for the SBA’s Office of Disaster Recovery and Resilience. “SBA’s EIDL program is designed to help keep businesses operational during recovery, covering financial obligations and necessary expenses until normal operations resume.”

The loan amount can be up to $2 million with interest rates as low as 4% for small businesses and 3.25% for PNPs, with terms up to 30 years. Interest does not accrue, and payments are not due, until 12 months from the date of the first loan disbursement. The SBA sets loan amount terms based on each applicant’s financial condition.

For more information and to apply online visit SBA.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

Submit completed loan applications to the SBA no later than Feb. 24.

###

About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Relief Still Available to Oklahoma Small Businesses and Private Nonprofits Hit by Spring Drought: Don’t Miss the Deadline to Apply for an SBA Disaster Loan!

Source: United States Small Business Administration

SACRAMENTO, Calif. – The U.S. Small Business Administration (SBA) is reminding eligible small businesses and private nonprofit (PNP) organizations in Oklahoma of the Feb. 24, 2025 deadline to apply for low interest federal disaster loans to offset economic losses caused by the drought that began April 30, 2024.

The disaster declaration covers the counties of Beaver, Ellis, Harper, and Texas in Oklahoma, as well as Clark, Meade and Seward counties in Kansas, and Lipscomb and Ochiltree counties in Texas.

Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries, and PNPs that suffered financial losses directly related to the disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.

EIDLs are available for working capital needs caused by the drought and are available even if the business or PNP did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred.

“When disasters hit rural communities, access to working capital offers a lifeline to impacted small businesses and private nonprofits,” said Randle Logan, acting associate administrator for the SBA’s Office of Disaster Recovery and Resilience. “SBA’s EIDL program is designed to help keep businesses operational during recovery, covering financial obligations and necessary expenses until normal operations resume.”

The loan amount can be up to $2 million with interest rates as low as 4% for small businesses and 3.25% for PNPs, with terms up to 30 years. Interest does not accrue, and payments are not due, until 12 months from the date of the first loan disbursement. The SBA sets loan amount terms based on each applicant’s financial condition.

For more information and to apply online visit SBA.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

Submit completed loan applications to the SBA no later than Feb. 24.

###

About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

MIL OSI USA News –

January 25, 2025

MIL-OSI China: China to carry out pilot reform on auto consumption

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

BEIJING, Jan. 24 — China will conduct pilot reform on the circulation and consumption of automobiles to expand and implement the trade-in program of consumer goods and further release the potential of automobile consumption, according to a circular released on Friday.

The circular, jointly released by eight departments including the Ministry of Commerce, pledged efforts to cultivate a number of model enterprises in the innovative development of automobile circulation and consumption by 2027.

Efforts will be made to stabilize and expand automobile consumption, while encouraging localities to gradually relax or cancel the purchase restriction policies of cars. The consumption of energy-saving and new-energy vehicles will also be encouraged.

It is also said in the circular that China will promote the efficient circulation of used cars, optimize its management system, expand the source and improve the quality of used cars with enhanced services.

The circular includes plans to promote the standardized and orderly development of car modification, car rental, racing, RV camping and classic cars, while optimizing the recycling system for scrapped vehicles.

Enterprises will be encouraged to set up sales and service systems for new and used cars that integrate online and offline services to improve the digital level of automobile consumption.

MIL OSI China News –

January 25, 2025

MIL-OSI Asia-Pac: TWC:1910 Provides 24/7 Customer Support

Source: Republic Of China Taiwan 2

The Taiwan Water Corporation Customer Service Hotline 1910 is still on 24/7 while TWC offices will be closed during the Lunar New Year. Users with any questions,such as water using,bills,reporting water leaking,can get assistance by calling 1910.

TWC provides a variety of convenient payment methods. Users can easily pay through the following methods during the Lunar New Year.
1.Taiwan Water Corporation official website.
2.Taiwan Water Corporation APP.
3.Mobile payment:JKOPay,iPASS MONEY,TCPASS,GAMAPAY,PiAPP,icash Pay,ezPay,beePay,TaiwanPay,Easy Wallet,PXPay and PlusPAY.
4.At convenience stores:Pay water bill at 7-11,Family Mart,Hi-Life,OK and Simple Mart. Users without water bills,can print them with KIOSK Machines,like ibon,OKGo,Fami Port,Life-ET.

Before returning to hometown for reunions,please check the water equipment at home,TWC offices will be open on February 3rd,2025.

Ministry of Economic Affairs Taiwan Water Company
Spokesman:Vice President Wu, Jing-Wen
Contact Number:04-22244191 Ext.205,Mobile Phone:0934-262835
Email:jingwen@mail.water.gov.tw

Business Contact:Director, Dept. of Business LIN,MENG-ZHU
Contact Number:04-22244191 Ext.400,Mobile Phone:0952-402749
Email:moju @mail.water.gov.tw

MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI USA: Relief Still Available to Nebraska Private Nonprofits Hit by April Storm: Don’t Miss the Deadline to Apply for an SBA Disaster Loan!

Source: United States Small Business Administration

SACRAMENTO, Calif. – The U.S. Small Business Administration (SBA) is reminding private nonprofit (PNP) organizations in Nebraska of the Feb. 24, 2025 deadline to apply for low interest federal disaster loans to offset economic losses caused by the severe winter storm and straight-line winds that occurred April 6–7, 2024.

The disaster declaration covers the counties of Banner, Cheyenne, Dawes, Garden, Kimball, Morrill, Scotts Bluff and Sioux.

Under the declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to PNPs that provide non-critical services of a governmental nature and suffered financial losses directly related to the disaster. Examples of eligible non-critical PNPs include, but are not limited to, food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges.

EIDLs are available for working capital needs caused by the disaster and are available even if the PNP did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred.

“When disasters hit rural communities, access to working capital offers a lifeline to impacted small businesses and private nonprofits,” said Randle Logan, acting associate administrator for the SBA’s Office of Disaster Recovery and Resilience. “SBA’s EIDL program is designed to help keep businesses operational during recovery, covering financial obligations and necessary expenses until normal operations resume.”

The loan amount can be up to $2 million with interest rates as low as 3.25%, with terms up to 30 years. Interest does not accrue, and payments are not due, until 12 months from the date of the first loan disbursement. The SBA sets loan amount terms based on each applicant’s financial condition.

For more information and to apply online visit SBA.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

Submit completed loan applications to the SBA no later than Feb. 24.

###

About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Relief Still Available to Iowa Small Businesses and Private Nonprofits Hit by May Storms: Don’t Miss the Deadline to Apply for an SBA Disaster Loan!

Source: United States Small Business Administration

SACRAMENTO, Calif. – The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit (PNP)organizations in Iowa of the Feb. 24, 2025 deadline to apply for low interest federal disaster loans to offset economic losses caused by severe storms, tornadoes and flooding that occurred May 20-31, 2024.

The disaster declaration covers the counties of Adair, Adams, Audubon, Boone, Cass, Cedar, Clinton, Dallas, Fremont, Guthrie, Hamilton, Hardin, Jasper, Johnson, Jones, Linn, Madison, Mahaska, Marion, Marshall, Mills, Montgomery, Muscatine, Page, Polk, Pottawattamie, Poweshiek, Ringgold, Scott, Story, Tama, Taylor, Union and Warren.

Under this declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses, small agricultural cooperatives, nurseries, and PNPs that suffered financial losses directly related to this disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for aquaculture enterprises.

EIDLs are available for working capital needs caused by the disaster and are available even if the business or PNP did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred.

“When disasters strike, businesses and nonprofits face significant challenges,” said Randle Logan, acting associate administrator for the SBA’s Office of Disaster Recovery and Resilience. “These SBA loans provide the financial support they need to manage costs and continue moving forward.”

The loan amount can be up to $2 million with interest rates as low as 4% for small businesses and 3.25% for PNPs, with terms up to 30 years. Interest does not accrue, and payments are not due, until 12 months from the date of the first loan disbursement. The SBA sets loan amount terms based on each applicant’s financial condition.

For more information and to apply online visit sba.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

Submit completed loan applications to the SBA no later than Feb. 24.

###

About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Relief Still Available to Texas Private Nonprofits Hit by Spring Storms: Don’t Miss the Deadline to Apply for an SBA Disaster Loan!

Source: United States Small Business Administration

SACRAMENTO, Calif. – The U.S. Small Business Administration (SBA) is reminding private nonprofit (PNP) organizations in Texas of the Feb. 24, 2025 deadline to apply for low interest federal disaster loans to offset economic losses caused by severe storms, straight‑line winds, tornadoes and flooding that occurred April 26–June 5, 2024.

The disaster declaration covers the counties of Anderson, Austin, Bailey, Baylor, Bell, Blanco, Bosque, Bowie, Brown, Caldwell, Calhoun, Cass, Cherokee, Clay, Cochran, Coke, Coleman, Concho, Cooke, Coryell, Dallas, Delta, Eastland, Falls, Fannin, Freestone, Gonzales, Grimes, Hamilton, Hardin, Harris, Hays, Henderson, Hockley, Hopkins, Houston, Jasper, Kaufman, Lamar, Lampasas, Lee, Leon, Liberty, Limestone, Lynn, Madison, McCulloch, Milam, Mills, Montgomery, Morris, Nacogdoches, Navarro, Newton, Panola, Polk, Rains, Red River, Robertson, Rockwall, Rusk, Sabine, San Augustine, San Jacinto, San Saba, Shelby, Smith, Sterling, Terrell, Titus, Trinity, Tyler, Van Zandt, Walker, Waller and Washington.

Under the declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to PNPs that provide non-critical services of a governmental nature and suffered financial losses directly related to the disaster. Examples of eligible non-critical PNPs include, but are not limited to, food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges.

EIDLs are available for working capital needs caused by the disaster and are available even if the PNP did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred.

“When disasters hit rural communities, access to working capital offers a lifeline to impacted small businesses and private nonprofits,” said Randle Logan, acting associate administrator for the SBA’s Office of Disaster Recovery and Resilience. “SBA’s EIDL program is designed to help keep businesses operational during recovery, covering financial obligations and necessary expenses until normal operations resume.”

The loan amount can be up to $2 million with interest rates as low as 3.25%, with terms up to 30 years. Interest does not accrue, and payments are not due, until 12 months from the date of the first loan disbursement. The SBA sets loan amount terms based on each applicant’s financial condition.

For more information and to apply online visit SBA.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

Submit completed loan applications to the SBA no later than Feb. 24.

###

About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

MIL OSI USA News –

January 25, 2025

MIL-OSI: Navicore Solutions to provide support to those affected by funding cuts and regulatory changes to the ACA and Medicaid anticipated under the new Trump administration

Source: GlobeNewswire (MIL-OSI)

MANALAPAN, N.J., Jan. 24, 2025 (GLOBE NEWSWIRE) — As changes to the Affordable Care Act (ACA) and Medicaid loom under the new Trump administration, millions of Americans could face heightened medical debt challenges. Navicore Solutions, a nonprofit credit counseling organization, stands ready to provide essential support to individuals and families struggling with medical debt and its broader financial implications.

The Consumer Financial Protection Bureau (CFPB) reports that over 100 million Americans collectively owe $220 billion in medical debt. This staggering figure highlights the complexity of medical billing and the strain it places on households, particularly those already managing credit card debt and other financial burdens.

Potential policy changes at the federal level could exacerbate this crisis. Key provisions, such as expanded ACA enrollment, increased Medicaid coverage, and longer enrollment periods, have contributed to historic lows in the uninsured rate and record-high Medicaid enrollment. However, proposed cuts to Medicaid funding and ACA regulatory rollbacks could reverse these gains, leaving more Americans uninsured and vulnerable to unmanageable healthcare costs.

“Medicaid is an obvious target for huge cuts,” said Joan Alker, Executive Director of Georgetown University’s Center for Children and Families. “Such cuts could eliminate policies like multiyear continuous eligibility, forcing millions to reapply for coverage annually and increasing their risk of lapses in care and surprise medical bills.”

For hospitals, these changes could result in a surge of uninsured patients and uncompensated care, further straining the healthcare system.

In the face of these challenges, Navicore Solutions offers a critical lifeline to those overwhelmed by medical debt. Through personalized credit counseling and debt management programs, Navicore helps individuals navigate their financial challenges and regain control of their finances.

“Our mission is to empower individuals to overcome financial obstacles, including the significant burden of medical debt,” said Diane Gray, Chief Operating Officer at Navicore Solutions. “We understand how quickly medical expenses can spiral, particularly when paired with reduced insurance coverage or increased out-of-pocket costs. Our team provides unbiased solutions to help individuals create sustainable financial plans and alleviate their stress.”

Navicore’s certified counselors offer a range of services, including budgeting assistance, debt repayment strategies, and personal finance education. By addressing medical debt as part of a holistic financial strategy, Navicore helps clients build a foundation for long-term stability and success.

As policymakers debate the future of healthcare in America, Navicore Solutions remains committed to supporting those most affected by medical debt.

About Navicore Solutions

Founded in 1991, Navicore Solutions is a national leader in the field of nonprofit financial counseling with a mission to strengthen the well-being of individuals and families through education, guidance, advocacy, and support.

Navicore counselors provide a wide range of services including credit counseling to consumers in need; education programs through workshops, courses and written material; debt management plan to provide relief for applicable consumers; student loan counseling for those struggling with student loan debt; and housing counseling services in the areas of rental, pre-purchase, default and reverse mortgage. The agency is an advocate of financial education helping communities achieve and maintain financial stability.

Contact:
Lori Stratford
Digital Marketing Manager
Navicore Solutions
lstratford@navicoresolutions.org
navicoresolutions.org

The MIL Network –

January 25, 2025

MIL-OSI United Kingdom: Edinburgh declares Scotland’s first visitor levy

Source: Scotland – City of Edinburgh

Councillors have formally agreed to introduce Edinburgh’s Visitor Levy scheme.

Hailed as a ‘historic moment for Edinburgh’, the decision was taken during a special meeting of the Council held online today (Friday 24 January) .

From 24 July 2026, a 5% fee will be applied to the cost of overnight accommodation in Edinburgh, capped at five nights in a row. Businesses will need to apply the levy to any advance bookings made as of 1 October 2025 for stays on or after 24 July 2026.

The levy is projected to raise up to £50 million a year once established, for the city to invest in protecting, supporting and enhancing Edinburgh’s worldwide appeal as a place to live and visit.

The final proposals for the scheme have been updated to provide accommodation providers and booking agencies with extra time to prepare systems for advance bookings ahead of next summer’s launch.

Responding to today’s decision, Council Leader Jane Meagher said:

What an historic moment for Edinburgh. Introducing this ground-breaking visitor levy means realising a once in a lifetime opportunity to invest tens of millions of pounds towards enhancing and sustaining the things that make our city such a great place to visit – and live in – all year round.

The scheme has been many years in the making and I’m grateful to Council officers, businesses and residents who have helped shape it, every step of the way. Its introduction is declared today with a huge amount of backing, not least from local residents.

At all stages we’ve listened to and taken account of the views of industry and other stakeholders. It’s in this spirit that we’ve also extended the amount of time hoteliers and small businesses will have to prepare for the changes that are coming in.

It’s vital that we continue to work closely as we get ready to launch this scheme and deliver the many benefits it is going to bring. We’ve always said this is a city fund and spending decisions need to be taken with a whole city mindset, and we’ll soon be establishing a Visitor Levy Forum with an independent Chair. We’ll also be reporting next steps to executive Council committees.”

Neil Ellis, Chair of the Edinburgh Hotels Association, said:

Edinburgh Hotels Association welcomes the introduction of the visitor levy for its intended use of improving the experience of all visitors – local, national or international – through additional spending. This is a fantastic opportunity to further enhance Edinburgh’s reputation on the World stage as a must visit destination.”

Donald Emslie, a representative of Edinburgh’s tourism industry, said:

This new income stream presents a unique opportunity to generate significant funds for the city’s long-term development. The levy’s potential to generate transformative funds for the benefit of all who live, work, and visit Edinburgh is well recognised and I’m pleased to see a decision made to declare a scheme which will not only support spending on city operations and infrastructure, but sustain Edinburgh’s cultural offering and destination and visitor management.”

The agreed Visitor Levy for Edinburgh scheme:

Scheme Objectives

The overarching aim of the Scheme is to sustain Edinburgh’s status as one of the world’s greatest cultural and heritage cities and to ensure that the impacts of a successful visitor economy are managed effectively and in support of the priorities as set out in the Council’s Business Plan (or equivalent).

The objectives of the Scheme are therefore to Sustain, Support and Develop:

Public services, programmes and infrastructure that provide an enjoyable and safe visitor and resident experience.
Edinburgh’s culture, heritage and events provision to ensure it remains world-leading and competitively attractive to visitors as well as residents.
The city’s visitor economy, by fostering innovation in response to environmental and societal challenges, enhancing Edinburgh’s global reputation while promoting responsible and sustainable tourism.

Scheme area, start date and duration

The Scheme covers the entirety of the City of Edinburgh Council boundaries and will apply to overnight stays from 24 July 2026, booked and paid for (in part or full) on or after 1 October 2025. It will apply indefinitely, or until the Council decides to end or amend it, and at all times of the year.

The levy rate

The levy rate will be 5%, payable for a maximum of five consecutive nights and will apply at the same level, year-round, across the entire City of Edinburgh Council boundary area.

Accommodation liable for the levy

The levy will apply to all overnight accommodation, including those with an annual turnover below the applicable VAT threshold, based within the City of Edinburgh Council boundary.

This includes:

Hotels;
Hostels;
Guest houses;
Bed and breakfast accommodation;
Self-catering accommodation, including short-term lets;
All paid accommodation on caravan sites and campsites, including temporary tent and campervan pitches;
Accommodation in a vehicle, or on board a vessel, which is permanently or predominantly situated in one place; and
Any other place at which a room or area is offered by the occupier for residential purposes otherwise than as a visitor’s only or usual place of residence.

Certain accommodation providers may apply to the Council for a discretionary site exemption if they meet both of the following criteria:

The property is occupied by a charity or trustee of a charity; and
Overnight stays must be wholly or mainly for charitable purposes.

This discretionary exemption is aligned with the cases where charities may receive mandatory relief from paying Non-Domestic Rates and may be cross-checked with that register.

Accommodation providers who do not charge for overnight accommodation, or who cater fully for individuals who are exempted from paying the levy are not liable for the levy.

Individuals exempted or excluded from paying the levy

The Visitor Levy is payable by anyone staying in accommodation which is not their only or usual place of residence (temporary or otherwise). Individuals who do not have an only or usual place of residence are therefore not required to pay the levy. This includes people who are homeless, refugees and asylum seekers and people whose homes are unfit or unsafe for habitation. In addition, individuals defined in s. 14 (1) of the Act are exempt from paying the levy.

Individuals who are exempt or excluded will need to pay the levy to the accommodation provider and request reimbursement from the Council, unless their accommodation has been arranged and paid for directly via the Council. Reimbursement can be applied for online, submitting relevant evidence (as detailed below and on the Council’s website) and bank details (to enable payment via BACS). Alternative provision can be made for those who do not have internet access.

Evidence which will be required to be submitted includes:

The name of person exempted/excluded;
If exclusion applies, verification of such status from relevant official body (this can include the Council’s Homelessness service, Social services, relevant third sector provider, Police Scotland etc);
If exemption applies, a copy (scan/photo) of the relevant benefit award letter or similar document;
Booking confirmation/accommodation invoice – the name of the person exempted/excluded should be included on this document; and
Proof of payment for overnight accommodation.

The Council will assess the evidence received and pay the reimbursement via bank transfer within 5 working days if the applicant is found to be eligible.

Collecting and enforcing the levy

Accommodation providers within the local authority area will be liable for the levy. They will be required to submit quarterly reports, detailing the total accommodation charges and the total levy collected to a national online visitor levy portal. The levy will be payable at the same time as submitting returns.

Accommodation providers are required to keep accurate records of all transactions that are subject to the levy. The Council will conduct inspections, as required, to ensure compliance with the scheme and remittance requirements.

Accommodation providers who fail to comply may be subject to penalties.

Appeals relating to decisions made by the Council on the operation and/or enforcement of the scheme can be registered following the Visitor Levy appeal process detailed on the Council’s website. The Council will aim to review and process such appeals within 28 calendar days.

Use of net proceeds

The Act stipulates that the net proceeds of a visitor levy must be spent on facilitating the achievement of the scheme’s objectives and on “developing, supporting and sustaining facilities and services which are substantially for or used by persons visiting [overnight] for leisure or business purposes (or both)”.

After administration costs, which includes the establishing and maintenance of a contingency fund, a fixed amount will be assigned to:

Housing and tourism mitigation (£5m p.a.);
Participatory budgeting (£2m over 3 years) with appropriate audit checks in place to ensure that these funds are spent on facilitating the achievement of the scheme’s objectives; and
Reimbursement of 2% of remitted funds to Accommodation Providers, to off-set the administrative cost incurred from operating in accordance with the Scheme and collecting visitor data

The remaining funds will then be split into the following investment streams:

City Operations and Infrastructure (55%);
Culture, Heritage and Events (35%); and
Destination and Visitor Management (10%).

The Council will make decisions on the use of funds after consultation with the Visitor Levy Forum (see details below), with these decisions delegated to the relevant executive Committees.

Reviewing and changing the scheme

The Council will review the scheme every three years to assess whether it is successfully achieving its objectives and to measure the impact of the scheme on businesses, visitors and communities. The review will be published along with a report detailing how the income has been spent and the benefits which the VL-funded projects have brought.

If the Council wishes to make changes to the scheme following the review, it will publicly consult on the change and publish a report detailing the decision and its justification. Significant changes to the scheme will require an 18-month implementation period.

Significant changes to the scheme include:

Increasing the scheme area;
Increasing the percentage rate; and/or
Removing any exemptions

Visitor Levy Forum

A Visitor Levy Forum will be established to discuss and advise on the VL scheme, including the review of the scheme and any modifications to the scheme. The Forum will also be consulted on how the VL funds will be spent.

The Forum will be made up of an equal number of representatives from the community and from businesses in the city’s visitor economy and at least 40% of the representatives must be women. Council officers responsible for the investment streams and officers from the Council’s Programme Management Office will be in attendance at Forum meetings and may make recommendations to the Forum but will not be members of the Forum itself.

The Council will report publicly and to the Scottish Government on

the amount we collect
how we use the net proceeds, (the amount collected minus costs or expenses of operating the scheme)
how we demonstrate that we are delivering the objectives of the Scheme.

MIL OSI United Kingdom –

January 25, 2025

MIL-OSI Canada: Alberta tourism shines on the national stage

The eyes of the nation are once again on Alberta as the province’s tourism sector garners recognition for its industry-leading innovation and dedication to excellence. Several Albertans and Albertan businesses were nominated and won Canadian Tourism Awards for outstanding success, innovation and leadership in Canada’s tourism industry.

The accolades highlight Alberta as a top-tier tourism destination and recognize the outstanding Albertans that elevate the province’s reputation nationally and internationally. As an advocate for Canada’s tourism sector, the Tourism Industry Association of Canada presents the Canadian Tourism Awards annually.

“We are incredibly proud of the achievements of Alberta’s tourism operators, whose passion and innovation continue to set new standards of excellence. The individuals and businesses nominated reflect the rich variety of experiences that make Alberta unique. Their dedication and innovation are at the heart of our thriving tourism sector, and their recognition on the national stage reflects the world-class experiences Alberta offers visitors each day.”

Joseph Schow, Minister of Tourism and Sport

The following Alberta-based organizations and individuals received Canadian Tourism Awards:

Business of the Year Award: CanaDream RV, Rocky View County
Business Event of the Year Award: National Gathering of Elders, Edmonton
Culinary Tourism Experience Award: Bar OA Farms, Strathcona County
Lifetime Achievement Award: Cindy Ady, former CEO of Tourism Calgary and former Minister of Tourism, Parks and Recreation
Under-30 Tourism Trailblazer Award: Sierra Murray, Leduc County

Notably, former Tourism Calgary CEO and former Alberta Minister of Tourism, Parks and Recreation, Cindy Ady received a lifetime achievement award for her commitment to Alberta’s tourism sector. As CEO of Tourism Calgary, Cindy positioned Calgary as a year-round, globally competitive destination, and as Alberta’s Minister of Tourism, Parks and Recreation, Cindy sponsored the Travel Alberta Act, establishing Travel Alberta as a provincial agency in 2009.

“Alberta’s tourism community is remarkable, and I am grateful to have had the opportunity to contribute to its success. I am truly humbled to have received this Lifetime Achievement Award, but it’s not just about me – it’s a testament to the hard work and vision of an entire community, one that has come together to position this province as a leader in the global tourism landscape.”

Cindy Ady, former CEO of Tourism Calgary and former Minister of Tourism, Parks and Recreation

In addition, Travel Alberta received recognition for its film Sky Painter, which won gold in Brand Building at the 2024 Canadian Marketing Awards and second place in the Tourism Products category at the World Tourism Film Awards. The Travel Alberta film To be Albertan won first place in the Region Promotion category at the World Tourism Film Awards.

In the past year, Alberta has received global recognition with a nomination for the Most Desirable Region (Rest of the World) category in the Wanderlust Reader Travel Awards 2024, and Skift IDEA awards in industry innovation and travel technology. In addition, Travel Alberta films won awards at the Japan’s World Tourism Festival and in the Cannes Corporate Media and TV Awards.

These achievements build on Alberta’s rich tradition of tourism excellence and highlight the significant contributions of the industry to the province’s economy. Alberta’s government remains committed to supporting its tourism operators as they continue to shape the future of Canadian tourism.

Quick facts

The following Alberta organizations, events and individuals received nominations for the Canadian Tourism Awards:
- Culinary Tourism Experience Award: Bar OA Farms, Strathcona County
- Indigenous Tourism Award: Dragonfly Spirit CreeAtions Ltd, Spruce Grove
- Indigenous Tourism Award: Métis Crossing, Smoky Lake
- Innovator of the Year Award: Rural Rivers, Sturgeon County
- Tourism Employer of the Year Award: Indigenous Box, Leduc County

Related information

The Canadian Tourism Awards 2024
World Tourism Film Awards 2024
Canadian Marketing Association Awards 2024

Multimedia

“To Be Albertan” video entry by Travel Alberta
“Sky Painter” video entry by Travel Alberta

Related news

Global recognition for Alberta’s tourism sector (Sept. 27, 2024)
Alberta’s tourism soars to new heights (Sept. 25, 2024)
Alberta films captivate the world (March 18, 2024)
Growing Alberta’s visitor economy (Feb. 14, 2024)

MIL OSI Canada News –

January 25, 2025

MIL-OSI USA: ICYMI—Hagerty Joins Varney & Co. on Fox Business to Discuss Debanking Conservatives, Support for Hegseth, Panama Canal

US Senate News:

Source: United States Senator for Tennessee Bill Hagerty
WASHINGTON—United States Senator Bill Hagerty (R-TN), a member of the Senate Appropriations, Banking, and Foreign Relations Committees and former U.S. Ambassador to Japan, today joined Varney & Co. on Fox Business to discuss the egregious debanking of conservatives, his strong support for Pete Hegseth, and President Donald Trump’s concerns about China’s influence on the Panama Canal.

*Click the photo above or here to watch*
Partial Transcript
Hagerty on banks debanking conservatives: “I certainly side with President Trump on this one because I’ve seen it myself. Look, you’ve got these big banks that have DEI and ESG narratives that they’re trying to follow. You’ve got regulators; I think that’s the most pernicious aspect of this. You’ve got regulators here in Washington, bank supervisors that don’t have to put out a written warning. What they have to do is suggest that perhaps there’s some reputational risk associated with a particular entity or a particular customer, even Barron Trump has had difficulty getting a bank account. I think President Trump has felt this in his own family. Christian ministry groups are having a difficult time. It’s absolutely amazing to me and, I think, to all Americans that the banking system isn’t open and available to everybody in America. We’re going to change that. Now that the gavel has shifted here in the Senate, the Banking Committee is under Republican control. We fully intend to take supervisory action to get a very hard look at this. And on the Executive Branch side, I can guarantee you President Trump is going to dig into this too. It’s got to come to an end.”
Hagerty on his strong support for Pete Hegseth: “Pete is also a hometown favorite for me. He’s from Tennessee. I’ve been friends with Pete for years; I’m delighted to see him into this position. I think if anybody watched the four and a half hours of Pete’s confirmation hearing, what they’ve seen is somebody that’s patriotic, someone that’s bright, someone that’s energetic. Pete’s the type of person that’s going to be transformative at the Pentagon at a time when we really need it. Pete has been clear: he’s going to be focused on lethality and competence, not on pronouns. And he is going to be the type of person that inspires, that helps us recruit and retain the type of military personnel that we need. We’re in a great deficit right now; that’s about to change when Pete Hegseth becomes our next Secretary of Defense, which he will […] [Pete has] the warfighter’s mentality. He understands what they need, and I think he’s going to be a shot in the arm for the Pentagon. It really is going to be a good, positive move.”
Hagerty on the Panama Canal: “David, as you well know, Chinese entities have contracts and operate on both ends of the Panama Canal. I don’t think [President] Jimmy Carter ever anticipated this when he gave the Panama Canal away. This is a strategic asset that was built with American dollars and American lives, frankly. And it’s something that we need to take very seriously. I’ve negotiated with President Trump in the past when I was U.S. Ambassador to Japan. He delivered the U.S.-Japan Trade Agreement, the U.S.-Japan Digital Trade Agreement; I was deeply involved in those negotiations. And one of the things I know for sure is [that] you don’t get ahead of the president.”

MIL OSI USA News –

January 25, 2025

MIL-OSI United Kingdom: An open letter to the Minister for Public Finance

Source: Scotland – City of Edinburgh

The Council Leader has formally written to the Scottish Government to declare Edinburgh’s intention to launch a Visitor Levy.

Writing today (24 January) following the Council’s decision to introduce a Visitor Levy scheme, Council Leader Jane Meagher addresses the Minister for Public Finance, Ivan McKee.

The letter states:

Dear Minister for Public Finance,

I am writing to formally declare Edinburgh’s intention to introduce a Visitor Levy scheme.

A full public consultation period was carried out from 23 September 2024 – 15 December 2024, with the results published in a report with the final recommended scheme.

During a Council meeting today, the details of our Scheme were agreed and will see a levy in place from 24 July 2026, applying to all bookings made on and after 1 October 2025. The full final scheme is available on our website.

The overarching aim of the scheme and the reason for us to agree to proceed with it is to sustain Edinburgh’s status as one of the world’s greatest cultural and heritage cities and to ensure that the impacts of a successful visitor economy are managed effectively and in support of the priorities as set out in the Council’s Business Plan.

I would like to thank you and the work of the Visitor Levy (Scotland) Bill team. In advancing the legislation, the Scottish Government is giving Councils greater financial responsibility and strengthening local democracy.

I am immensely proud that Edinburgh becomes the first city in Scotland to declare a levy. We were named Europe’s leading sustainable destination 2023 by the World Travel Awards and Edinburgh continues to be a world class destination with around 4 million visitors a year and a growing economy.

The visitor levy will help boost the tourism industry with funds re-invested back into local facilities and services that will support the sustainable growth of the visitor economy. This new source of funding is urgently needed to sustain local services and spaces used by visitors and locals alike.

I look forward to continued working between the City of Edinburgh Council and the Scottish Government as we enter the implementation period.

Yours sincerely

Jane Meagher

Leader of the City of Edinburgh Council

Published: January 24th 2025

MIL OSI United Kingdom –

January 25, 2025

MIL-OSI Europe: Answer to a written question – AntiNero programme in Greece – E-002676/2024(ASW)

Source: European Parliament

The Commission is closely monitoring the implementation of the AntiNero programmes, which are part of the Greek Recovery and Resilience Plan (measure ID: 16849).

The Commission is in regular contact with the Greek authorities to ensure that the investment is implemented within the Recovery and Resilience Facility (RRF) timeframe and according to the conditions set out in the annex to the Council Implementing Decision[1].

As the RRF is a performance-based instrument, the Commission only pays out the amounts to each country when they have achieved the agreed milestones and targets towards completing the measures included in their plan.

In relation to the Antinero programmes, Greece has currently fulfilled milestone 61 for awarding contracts for AntiNero programmes I and II, concerning the upgrade of 37 500 ha of degraded forest ecosystems.

Future milestones and targets will be assessed at the time of their corresponding payment requests. The Greek authorities have not informed the Commission of any allocation of these grants towards other initiatives such as the ‘Saving Energy in Businesses — Changing my business’ energy system’ project.

Should a programme be implemented in or nearby a Natura 2000 site so that it is likely to have a significant effect thereon, Greece will also need to verify wherever an appropriate assessment is required in line with the provision of Article 6(3) of the Habitats Directive[2].

Member States are primarily responsible to ensure compliance with EU law, including verifying individual cases of potential breach of the relevant rules or taking the necessary steps for enforcement, and the appropriate measures to address any matter that has arisen.

In its role as the guardian of the Treaties, the Commission will monitor the situation and may decide to take appropriate action.

[1] https://data.consilium.europa.eu/doc/document/ST-11858-2024-ADD-1/en/pdf
[2] OJ L 206, 22/07/1992, p. 7-50.

Last updated: 24 January 2025

MIL OSI Europe News –

January 25, 2025

MIL-OSI USA: Provepharm Inc. Issues Voluntary Nationwide Recall of One Lot of Phenylephrine Hydrochloride Injection, USP, 10 mg/ mL (Pharmacy Bulk Package) Due to Presence of Particulate Matter

Source: US Department of Health and Human Services – 3

Summary

Company Announcement Date:: January 24, 2025
FDA Publish Date:: January 24, 2025
Product Type:: Drugs
Reason for Announcement:: Recall Reason Description

Device & Drug Safety – Potential Foreign Material
Company Name:: Provepharm Inc.
Brand Name:: Brand Name(s)

Provepharm Inc.
Product Description:: Product Description

Phenylephrine hydrochloride Injection, USP, 10 mg/ mL

Company Announcement

FOR IMMEDIATE RELEASE – January 24, 2025 – Collegeville, Pennsylvania, Provepharm Inc. is voluntarily recalling lot number 24020027; Expiry Date December 2025 of Phenylephrine hydrochloride Injection, USP, 10 mg/ mL (Pharmacy Bulk Package) at the hospital/institutional level. This recall was initiated based on a customer complaint from a pharmacy after observing a visible black particulate matter found in a single-sealed vial of the product.

Risk Statement:

Administration of an injectable product containing particulate matter may cause local irritation or swelling as a response to the foreign material. If the particulate matter enters the blood vessels, it can travel to various organs and potentially blocking blood vessels in the heart, lungs or brain, leading to serious complications such as stroke or even death. To date, Provepharm Inc. has not received any reports of adverse events or injuries associated with this recall.

Phenylephrine hydrochloride Injection is used for the treatment of clinically important hypotension resulting primarily from vasodilation in the setting of anesthesia and is packaged in 10 mL vial, 1 single dose vial, with NDC code as 81284-213-01.

The product can be identified by product name on carton and vial label and with lot number 24020027 and Exp. Date: Dec 2025 (NDC 81284-213-01) (See enclosed vial label).

Phenylephrine hydrochloride Injection, USP, 10 mg/ mL, was distributed nationwide in the United States to wholesalers.

Provepharm Inc., in collaboration with its recall provider, Sedgwick, is notifying distributors and customers via UPS Ground and coordinating the return of all recalled products.

Wholesalers, distributors, compounding companies and hospitals in procession of the recalled Phenylephrine hydrochloride Injection, USP, 10 mg/ mL lot number 24020027, Exp date December 2025, should immediately cease use of and return the product to Sedgwick at the following address

Sedgwick
  Event## 8664
  2670 Executive Drive, Suite A
  Indianapolis, IN 46241

Customers with questions regarding this recall can contact from 8:00 am to 5:00 pm (EST) Monday – Friday at:

Consumers should contact their physician or healthcare provider if they have experienced any problems that may be related to taking or using this drug product.

Adverse reactions or quality problems experienced with the use of this product may be reported to the FDA’s MedWatch Adverse Event Reporting program either online, by regular mail or by fax.

Complete and submit the report Online
Regular Mail or Fax: Download form or call 1- 800-332-1088 to request a reporting form, then complete and return to the address on the pre-addressed form, or submit by fax to 1-800-FDA-0178

This recall is being conducted with the knowledge of the U.S. Food and Drug Administration.

Company Contact Information

Media:: Provepharm Inc.; 610-601-8600

Product Photos

MIL OSI USA News –

January 25, 2025

MIL-OSI Security: Florida Man Pleads Guilty to Tax Evasion and Wire Fraud

Source: Office of United States Attorneys

Robert Rahrle Operated a Fake Business Purporting to Send Gift Baskets into Prisons

SYRACUSE, NEW YORK – Robert Rahrle, 34, formerly of Florida and now residing in the Northern District of New York, pled guilty Wednesday to tax evasion and wire fraud. United States Attorney Carla B. Freedman, and Harry Chavis, Jr. Acting Special Agent in Charge of the New York Field Office, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.

As part his guilty plea, Rahrle admitted that from 2017 through 2024, he ran a fraudulent online gift basket website called iCare Gifting Solutions LLC. iCare purported to cater to families of incarcerated individuals, promising to send care packages into prisons. iCare charged hundreds of customers approximately $50 per gift basket but never sent the gift packages.

In addition to defrauding iCare’s customers, Rahrle evaded his federal taxes. He self-prepared and filed tax returns for tax years 2017 and 2018 that falsely reported business losses and failed to report hundreds of thousands of dollars of gross receipts.

Sentencing is scheduled for June 11, 2025. Rahrle faces up to five years in federal prison on the tax evasion charge and up to 20 years in prison on the wire fraud charge, along with a post-imprisonment term of supervised release of up to three years. He also could be fined up to $250,000 or an alternative fine based on his gain or the victims’ losses, owes restitution to the IRS of approximately $175,000 and restitution to the victims of his fraud, and will be required to forfeit a money judgment of $2,000,000 to the United States. A federal district court judge will determine Rahrle’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

This case was investigated by IRS-CI, the United States Postal Inspection Service (USPIS), and the Criminal Investigation Division of the U.S. Secret Service. It is being prosecuted by Assistant United States Attorney Michael D. Gadarian.

MIL Security OSI –

January 25, 2025

MIL-OSI Security: U.S. Attorney’s Office Secures Final Sentencing of Trio Which Orchestrated a Multi-Million Dollar Tax Evasion Scheme

Source: Office of United States Attorneys

ALBUQUERQUE – The third and final defendant in a complex tax evasion scheme that operated for over a decade was sentenced this week, concluding a case involving millions of dollars in unpaid taxes.

Stacy Underwood, 53, of Albuquerque, was sentenced to time served, followed by three years of supervised release, and ordered to pay over $5.5 million in restitution for her involvement in the scheme.

David Wellington, 66, of Albuquerque, was previously sentenced to 40 months in prison and ordered to pay over $5.5 million in restitution for his role in devising and operating the tax evasion scheme and is permanently prohibited from running any business advising clients or dealing with the IRS.

Jerry Shrock, 49, of Meadowview, Virginia, was sentenced to five years’ probation and ordered to pay $1.5 million in taxes, interest, and penalties.

According to court documents, between 2005 and 2015, Wellington and Underwood operated National Business Services, LLC, which specialized in creating Limited Liability Companies (LLCs) for clients seeking to evade federal taxes. The pair organized at least 192 LLCs in New Mexico and opened at least 114 bank accounts for these clients.

Underwood served as the sole signer for 99 of these accounts, allowing clients to conduct financial transactions anonymously. From January 1, 2011, to July 31, 2018, over $40 million was deposited into clients’ accounts nominally controlled by Underwood.

Shrock had three LLCs formed by National Business Services while undergoing an IRS audit. Between 2011 and 2015, Shrock deposited nearly $4.9 million into a bank account opened for one of his LLCs, concealing over $4.3 million in income without ever filing tax returns.

U.S. Attorney Alexander M.M. Uballez and Special Agent in Charge Carissa Messick, IRS Criminal Investigation’s Phoenix Field Office, made the announcement today.

IRS Criminal Investigation investigated this case. Assistant United States Attorney Jeremy Peña is prosecuting the case.

# # #

MIL Security OSI –

January 25, 2025

MIL-OSI Economics: Verizon unveils AI strategy to power next-gen AI demands

Source: Verizon

Headline: Verizon unveils AI strategy to power next-gen AI demands

NEW YORK, N.Y. – Fueled by the unprecedented demand for network capacity and computational power, Verizon Business today unveiled Verizon AI Connect, an integrated suite of solutions and products designed to enable businesses to deploy artificial intelligence (AI) workloads at scale.

While training current advanced AI models requires immense computing resources, the shift towards real-time decision-making – known as inferencing – is poised to drive massive demand for additional computing power. According to McKinsey, 60-70% of AI workloads are expected to shift to real-time inference by 2030, creating an urgent need for low-latency connectivity, compute and security at the edge beyond current demand.

To meet current and future demand from hyperscalers, cloud providers and global enterprises, Verizon is building on its strategy to power the AI ecosystem with reimagined existing assets integrated in Verizon’s intelligent and programmable network. From the macro 5G network and high-speed fiber connectivity to edge compute environments and space, power and cooling infrastructure, Verizon AI Connect is designed to deliver AI workloads as needed. Today, Google Cloud and Meta are already leveraging additional capacity to support their AI workloads.

“We are seeing significant demand for reliable network infrastructure that can support existing AI workloads,” said Kyle Malady, CEO, Verizon Business. “As the technology evolves, our industry leadership, best-in-class edge-to-cloud connectivity, programmable network and assets will enable us to meet these needs and accelerate innovation.”

Building the AI Ecosystem

In addition, Verizon is expanding its AI ecosystem through key partnerships and collaborations.

NVIDIA. Verizon recently announced its work with NVIDIA to reimagine how GPU-based edge platforms can be integrated into Verizon’s 5G private networks.
Vultr. Today, Verizon is sharing a new partnership with Vultr, a leading global GPU-as-a-Service (GPUaaS) and cloud computing provider.
Google Cloud. Verizon and Google Cloud have also collaborated on advanced AI solutions for network maintenance and anomaly detection, showcasing the power of AI to optimize network performance and predict potential issues.
Meta. Verizon and Meta have an existing strategic partnership across numerous products, technologies and business units. Verizon AI Connect will expand this partnership into network infrastructure, a differentiator for both companies in helping to build the AI ecosystem.

AI Ecosystem Customer & Partner Quotes

“Verizon provides a robust network infrastructure that can support demanding AI workloads,” said Bikash Koley, VP, Google Global Networking and Infrastructure. “With Verizon’s advanced network capabilities, we can accelerate the development and deployment of AI solutions. Verizon will benefit from these solutions by leveraging Google Cloud’s AI and data platform to transform its customer, employee and network experience.”

“As we continue to deliver critical infrastructure for our apps and technologies, we’re strengthening our network with AI and the future in mind. This means partnering with Verizon to build and operate networks that support our existing services, while accelerating more intelligent and predictive capabilities that will serve the people that use our products,” said Gaya Nagarajan, VP, Network Infrastructure at Meta.

“Telecom networks are uniquely positioned to provide a distributed AI infrastructure that meets enterprise needs,” said Ronnie Vasishta, Senior Vice President of Telecom, NVIDIA. “NVIDIA AI and accelerated computing, integrated with Verizon’s network, allows enterprises to easily adopt AI-powered services at scale.”

“GPUs play a crucial role in powering AI workloads, and rapidly growing demand for real-time inference is driving the need for AI infrastructure at the edge,” said J.J. Kardwell, CEO of Vultr. “With demand for data centers and GPU processing power outpacing supply, Verizon’s connectivity infrastructure is uniquely positioned to support our growth. Through Verizon AI Connect, we can extend our global cloud footprint and bring cutting-edge AI solutions to Verizon Business’ global customers.”

For more information on Verizon AI Connect, visit verizon.com/aiconnect.

MIL OSI Economics –

January 25, 2025

MIL-OSI Economics: Verizon delivered strong customer growth and profitability in 2024

Source: Verizon

Headline: Verizon delivered strong customer growth and profitability in 2024

Download News Release PDF

Download 4Q Financials PDF

Download Non-GAAP Reconciliations PDF

Key 2024 Highlights

Delivered on financial guidance
Revenue growth with strong operational results
More than doubled wireless postpaid phone net additions compared to 2023
Continued to take broadband market share with Fios and fixed wireless access
Strong execution against capital allocation priorities, including strategic transactions
Well-positioned with strong outlook for 2025

NEW YORK – Verizon Communications Inc. (NYSE, Nasdaq: VZ) today reported strong operational and financial results for the fourth-quarter and full-year 2024, further extending its industry leadership with new products and services that continued to resonate with customers. With solid momentum on its strategy to grow connections and strengthen customer relationships, the company delivered on its 2024 financial guidance, demonstrating strong performance and success across its three priorities of growing wireless service revenue, expanding adjusted EBITDA and generating strong free cash flow.

“With innovations powered by the best network in the country, we are bringing the best experiences to our customers, in life and work. Customizable offerings like myPlan, myHome, Verizon Business Complete and Total Wireless feature the control, simplicity and value our customers expect,” said Verizon Chairman and CEO Hans Vestberg. “It’s only going to get better this year and beyond, as we have continued to strengthen Verizon with the pending Frontier acquisition, new satellite partnerships, and ongoing AI enablement, which we expect will enhance and broaden our network for everybody we serve.”

2024 Financial Highlights

Consolidated: Verizon delivers on 2024 financial guidance and extends industry leadership through operational excellence and customer focus

Full-year 2024 earnings per share (EPS) of $4.14 compared to $2.75 for full-year 2023; adjusted EPS¹, excluding special items, of $4.59 compared to full-year 2023 adjusted EPS¹ of $4.71.
Total operating revenue of $134.8 billion for full-year 2024, up 0.6 percent compared to full-year 2023.
Full-year 2024 cash flow from operations totaled $36.9 billion compared to $37.5 billion in 2023. This result reflects higher cash taxes, as well as higher interest expense. Full-year cash flow from operations includes a one-time contribution of approximately $2.0 billion from Verizon’s tower transaction with Vertical Bridge and reflects fourth quarter severance payments related to our voluntary separation program of approximately $600 million.
Full-year 2024 capital expenditures were $17.1 billion.
Full-year 2024 free cash flow¹ of $19.8 billion compared to $18.7 billion in full-year 2023.

4Q 2024 Highlights

Consolidated: Strong fourth-quarter performance results in revenue increases

Earnings per share of $1.18 in fourth-quarter 2024 compared to EPS of $(0.64) in fourth-quarter 2023; adjusted EPS¹, excluding special items, of $1.10 compared to $1.08 in fourth-quarter 2023.
Fourth-quarter 2024 financial results reflected a pre-tax gain from special items of $477 million. This includes a mark-to-market adjustment for our pension and other post-employment benefit (OPEB) liabilities of $668 million, partially offset by amortization of intangible assets related to Tracfone and other acquisitions of $191 million.
Total operating revenue of $35.7 billion in fourth-quarter 2024, up 1.6 percent compared to fourth-quarter 2023.
Consolidated net income for fourth-quarter 2024 was $5.1 billion compared to a net loss of $2.6 billion in fourth-quarter 2023. Consolidated adjusted EBITDA¹ was $11.9 billion in fourth-quarter 2024 compared to $11.7 billion in fourth-quarter 2023. This result was driven by wireless service revenue growth, partially offset by the impact of higher upgrade volumes and continued declines in Business wireline revenue.
Verizon’s total unsecured debt as of the end of fourth-quarter 2024 was $117.9 billion, an $8.5 billion decrease compared to third-quarter 2024 and $10.6 billion lower year over year. The company’s net unsecured debt¹ at the end of fourth-quarter 2024 was $113.7 billion. At the end of fourth-quarter 2024, Verizon’s ratio of unsecured debt to net income (LTM) was 6.6 times and net unsecured debt to consolidated adjusted EBITDA ratio¹ was 2.3 times.

Mobility: Industry-leading wireless service revenue and double-digit growth in postpaid phone net adds

Wireless service revenue² grew sequentially for the 18th consecutive quarter. Total wireless service revenue² in fourth-quarter 2024 was $20.0 billion, up 3.1 percent year over year, driven primarily by pricing actions implemented in recent quarters, sales of perks and add-on services and growth in fixed wireless access.
Wireless equipment revenue of $7.5 billion in fourth-quarter 2024, up 0.6 percent compared to fourth-quarter 2023, predominantly due to increased upgrade volumes in the quarter.
Total postpaid phone net additions of 568,000 in fourth-quarter 2024, up from 449,000 in fourth-quarter 2023.

Broadband: Verizon continued to take broadband market share with strong demand for best in class Fios and fixed wireless access offerings

Broadband net additions of 408,000 in fourth-quarter 2024, continuing the quarterly pace of over 350,000 broadband net additions.
Total fixed wireless access net additions of 373,000 in fourth-quarter 2024, growing the base to nearly 4.6 million fixed wireless subscribers. The company is well-positioned to achieve the next milestone of 8 to 9 million fixed wireless access subscribers by 2028.
Fios internet net additions were 51,000 compared to 55,000 in fourth-quarter 2023.
Total broadband connections grew to more than 12.3 million as of the end of fourth-quarter 2024, representing a 15.0 percent increase year over year.

Verizon Consumer: Positive net additions with strongest quarterly phone gross additions result in five years

Total Verizon Consumer revenue in fourth-quarter 2024 was $27.6 billion, an increase of 2.2 percent year over year, predominantly driven by gains in service revenue.
Wireless service revenue in fourth-quarter 2024 was $16.5 billion, up 3.0 percent year over year, primarily driven by growth in Consumer wireless postpaid average revenue per account (ARPA) from pricing actions and continued fixed wireless access adoption.
Consumer wireless retail postpaid churn was 1.12 percent in fourth-quarter 2024, and wireless retail postpaid phone churn was 0.89 percent.
Consumer ARPA of $139.77 in fourth-quarter 2024, an increase of 4.2 percent compared to fourth-quarter 2023.
In fourth-quarter 2024, Consumer reported 426,000 wireless retail postpaid phone net additions, up 34.0 percent from fourth-quarter 2023. This improvement was driven by a 5.5 percent year over year increase in postpaid phone gross additions, which represented the strongest quarterly result for postpaid phone gross additions in five years.
Excluding the contribution from the company’s second number offering, Consumer reported 82,000 wireless retail postpaid phone net additions for the year, meeting the goal of positive net additions for 2024, and 367,000 wireless retail postpaid phone net additions for fourth-quarter 2024.
Excluding SafeLink, Verizon’s brand offering access to government-sponsored connectivity benefits and programs, in fourth-quarter 2024 Consumer reported 65,000 wireless retail prepaid net additions compared to 263,000 net losses in fourth-quarter 2023.
Consumer reported 216,000 fixed wireless net additions and 47,000 Fios Internet net additions in fourth-quarter 2024. Consumer Fios revenue was $2.9 billion in fourth-quarter 2024.
In fourth-quarter 2024, Consumer operating income was $6.9 billion, a decrease of 1.9 percent year over year, and segment operating income margin was 25.1 percent, compared to 26.1 percent in fourth-quarter 2023. Segment EBITDA¹ in fourth-quarter 2024 was $10.3 billion, a decrease of 0.4 percent year over year. Improvements in Consumer wireless service revenue were more than offset by increases in upgrade volumes and the impact of related promotions in the period. Segment EBITDA margin¹ in fourth-quarter 2024 was 37.5 percent compared to 38.5 percent in fourth-quarter 2023.

Verizon Business: Strong wireless service revenue driven by continued wireless customer growth

Business wireless service revenue in fourth-quarter 2024 was $3.5 billion, an increase of 3.4 percent year over year. This result was driven by continued strong net additions for both mobility and fixed wireless access, as well as benefits from pricing actions implemented in recent quarters.
Total Verizon Business revenue was $7.5 billion in fourth-quarter 2024, a decrease of 1.5 percent year over year, as increases in wireless service revenue were more than offset by decreases in wireline revenue.
Business reported 283,000 wireless retail postpaid net additions in fourth-quarter 2024. This result included 142,000 postpaid phone net additions. Our value proposition continued to resonate across all customer groups with particular strength in small and medium businesses.
Business wireless retail postpaid churn was 1.45 percent in fourth-quarter 2024, and wireless retail postpaid phone churn was 1.09 percent.
Business reported 157,000 fixed wireless net additions in fourth-quarter 2024.
In fourth-quarter 2024, Verizon Business operating income was $594 million, an increase of 34.1 percent year over year, resulting in segment operating income margin of 7.9 percent, an increase from 5.8 percent in fourth-quarter 2023. Segment EBITDA¹in fourth-quarter 2024 was $1.7 billion, an increase of 3.0 percent year over year. The result was driven by wireless service revenue growth partially offset by wireline revenue declines. Segment EBITDA margin¹ in fourth-quarter 2024 was 22.1 percent, an increase from 21.1 percent in fourth-quarter 2023.

Outlook and guidance

The company does not provide a reconciliation for certain of the following adjusted (non-GAAP) forecasts because it cannot, without unreasonable effort, predict the special items that could arise, and the company is unable to address the probable significance of the unavailable information.

For 2025, Verizon expects the following:

Total wireless service revenue growth²³ of 2.0 percent to 2.8 percent.
Adjusted EBITDA growth¹ of 2.0 percent to 3.5 percent.
Adjusted EPS¹ growth of 0 to 3.0 percent.
Cash flow from operations of $35.0 billion to $37.0 billion.
Capital expenditures between $17.5 billion and $18.5 billion.
Free cash flow¹ of $17.5 billion to $18.5 billion.

¹ Non-GAAP financial measure. See the accompanying schedules and http://www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).

²Total wireless service revenue represents the sum of Consumer and Business segments.

³ Reflects the reclassification of recurring device protection and insurance related plan revenues from other revenue into wireless service revenue beginning January 2025. Where applicable, historical results will be recast to conform to the updated presentation. Reclassified 2024 annual revenues were more than $2.9 billion.

Verizon Communications Inc. (NYSE, Nasdaq: VZ) powers and empowers how its millions of customers live, work and play, delivering on their demand for mobility, reliable network connectivity and security. Headquartered in New York City, serving countries worldwide and nearly all of the Fortune 500, Verizon generated revenues of $134.8 billion in 2024. Verizon’s world-class team never stops innovating to meet customers where they are today and equip them for the needs of tomorrow. For more, visit verizon.com or find a retail location at verizon.com/stores.

Forward-looking statements

In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional incentives and evolving consumer preferences; failure to take advantage of, or respond to competitors’ use of, developments in technology, including artificial intelligence, and address changes in consumer demand; performance issues or delays in the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks; the inability to implement our business strategy; adverse conditions in the U.S. and international economies, including inflation and changing interest rates in the markets in which we operate; cyberattacks impacting our networks or systems and any resulting financial or reputational impact; damage to our infrastructure or disruption of our operations from natural disasters, extreme weather conditions, acts of war, terrorist attacks or other hostile acts and any resulting financial or reputational impact; disruption of our key suppliers’ or vendors’ provisioning of products or services, including as a result of geopolitical factors or the potential impacts of global climate change; material adverse changes in labor matters and any resulting financial or operational impact; damage to our reputation or brands; the impact of public health crises on our business, operations, employees and customers; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; our high level of indebtedness; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; and risks associated with mergers, acquisitions, divestitures and other strategic transactions, including our ability to consummate the proposed acquisition of Frontier Communications Parent, Inc. and obtain cost savings, synergies and other anticipated benefits within the expected time period or at all.

MIL OSI Economics –

January 25, 2025

MIL-OSI Banking: Apple Miami Worldcenter opens to excited customers in downtown Miami

Source: Apple

Headline: Apple Miami Worldcenter opens to excited customers in downtown Miami

Apple’s newest store in Miami opened this Friday, January 24, in the city’s dynamic downtown district, where customers and members of the local community celebrated with the over 150-person-strong store team.

Shoppers can easily and seamlessly upgrade to iPhone 16 by taking advantage of Apple Trade In, various financing offers, carrier activation, and personalized setup — all in a uniquely designed store where everyone is welcome. Customers can shop the all-new lineup of iPhone 16, Mac, MacBook Pro, Mac mini powered by the M4 chip, Apple Watch Series 10, and AirPods models, and receive personalized shopping support from Apple team members.

To celebrate the opening of the store, Apple Miami Worldcenter will offer customized Today at Apple sessions highlighting the store’s environment-centered design and natural elements, as well as special Made for Business events led by small business owners. Customers can explore upcoming Today at Apple sessions and book at apple.com/retail/miamiworldcenter.

MIL OSI Global Banks –

January 25, 2025

MIL-OSI: Northrim BanCorp Earns $10.9 Million, or $1.95 Per Diluted Share, in Fourth Quarter 2024, and $37.0 Million, or $6.62 Per Diluted Share, for the Year Ended December 31, 2024

Source: GlobeNewswire (MIL-OSI)

ANCHORAGE, Alaska, Jan. 24, 2025 (GLOBE NEWSWIRE) — Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of $10.9 million, or $1.95 per diluted share, in the fourth quarter of 2024, compared to $8.8 million, or $1.57 per diluted share, in the third quarter of 2024, and $6.6 million, or $1.19 per diluted share, in the fourth quarter a year ago. The increase in the fourth quarter of 2024 compared to the third quarter of 2024 is primarily due to an increase in purchased receivable income due to the Company’s acquisition of Sallyport Commercial Finance, LLC (“Sallyport”), which was completed on October 31, 2024. Sallyport and its direct and indirect subsidiaries provide services and products related to factoring and asset-based lending in the United States, Canada, and the United Kingdom. Additionally, in the fourth quarter of 2024 the Company had an increase in mortgage banking income, primarily as a result of an increase in the fair value of a mortgage servicing portfolio that the Company purchased from another financial institution in the fourth quarter. The increase profitability in the fourth quarter of 2024 as compared to the same quarter of the prior year was largely driven by an increase in mortgage banking income and higher net interest income, as well as an increase in purchased receivable income as noted above, which was only partially offset by higher other operating expenses and an increase in the provision for credit losses.

Net income for the full year of 2024 increased 46% to $37.0 million, or $6.62 per diluted share, compared to $25.4 million, or $4.49 per diluted share, for the full year of 2023. Increased net interest income resulting from loan and deposit growth supported 2024 earnings in the Community Banking segment but were offset by increases in other operating expenses, primarily in salaries and other personnel expense as the Company continued to expand its branch network into new markets in Alaska. An increase in mortgage originations and an increase in the fair value of mortgage servicing rights resulted in net income of $4.4 million in the Home Mortgage Lending segment in 2024 compared to a $2.5 million loss in 2023.

Dividends per share in the fourth quarter of 2024 remained consistent with the third quarter of 2024 at $0.62 per share and increased from $0.60 per share in the fourth quarter of 2023.

“Northrim reported record core earnings in 2024 and record earnings per share in the fourth quarter,” said Mike Huston, Northrim’s President and Chief Executive Officer. “We are pleased with our results as we continue to focus on profitable growth. In the last five years Northrim’s deposit market share in Alaska has increased from 11% to 16%, loans and deposits have increased by almost 100%, and net interest income has increased by 60%.”

“2024 results were also supported by an improvement in mortgage banking income,” continued Mr. Huston. “We believe the acquisition of Sallyport in the fourth quarter will further diversify fee income and provide attractive risk-adjusted returns to Northrim shareholders.”

Fourth Quarter 2024 Highlights:

Net interest income in the fourth quarter of 2024 increased 7% to $30.8 million compared to $28.8 million in the third quarter of 2024 and increased 15% compared to $26.7 million in the fourth quarter of 2023.
Net interest margin on a tax equivalent basis (“NIMTE”)^* was 4.47% for the fourth quarter of 2024, a 12-basis point increase from the third quarter of 2024 and a 35-basis point increase compared to the fourth quarter of 2023.
Return on average assets (“ROAA”) was 1.43% and return on average equity (“ROAE”) was 16.32% for the fourth quarter of 2024.
Portfolio loans were $2.13 billion at December 31, 2024, up 6% from the preceding quarter and up 19% from a year ago, primarily due to new customer relationships, expanding market share, and to retaining certain mortgage loans originated by Residential Mortgage, a subsidiary of Northrim Bank (the “Bank”), in the loan portfolio.
Total deposits were $2.68 billion at December 31, 2024, up 2% from the preceding quarter, and up 8% from $2.49 billion a year ago. Noninterest bearing demand deposits represented 27% of total deposits at December 31, 2024, down from 29% at September 30, 2024 and 31% at December 31, 2023.
Total assets at December 31, 2024 exceeded $3 billion for the first time.
The average cost of interest-bearing deposits was 2.15% in the fourth quarter of 2024, down from 2.24% in the third quarter of 2024 and up from 2.00% in the fourth quarter a year ago.
Acquired Sallyport for approximately $53.9 million (approximately $47.9 million in cash and $6 million in an earn-out payable over 3 years) on October 31, 2024.


Financial Highlights	Three Months Ended
(Dollars in thousands, except per share data)	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Total assets	$3,041,869		$2,963,392		$2,821,668		$2,759,560		$2,807,497
Total portfolio loans	$2,129,263		$2,007,565		$1,875,907		$1,811,135		$1,789,497
Total deposits	$2,680,189		$2,625,567		$2,463,806		$2,434,083		$2,485,055
Total shareholders’ equity	$267,116		$260,050		$247,200		$239,327		$234,718
Net income	$10,927		$8,825		$9,020		$8,199		$6,613
Diluted earnings per share	$1.95		$1.57		$1.62		$1.48		$1.19
Return on average assets	1.43	%	1.22	%	1.31	%	1.19	%	0.93	%
Return on average shareholders’ equity	16.32	%	13.69	%	14.84	%	13.84	%	11.36	%
NIM	4.41	%	4.29	%	4.24	%	4.16	%	4.06	%
NIMTE^*	4.47	%	4.35	%	4.30	%	4.22	%	4.12	%
Efficiency ratio	66.96	%	66.11	%	68.78	%	68.93	%	72.21	%
Total shareholders’ equity/total assets	8.78	%	8.78	%	8.76	%	8.67	%	8.36	%
Tangible common equity/tangible assets^*	7.23	%	8.28	%	8.24	%	8.14	%	7.84	%
Book value per share	$48.41		$47.27		$44.93		$43.52		$42.57
Tangible book value per share^*	$39.17		$44.36		$42.03		$40.61		$39.68
Dividends per share	$0.62		$0.62		$0.61		$0.61		$0.60
Common shares outstanding	5,518,210		5,501,943		5,501,562		5,499,578		5,513,459

^* References to NIMTE, tangible book value per share, and tangible common equity to tangible common assets, (all of which exclude intangible assets) represent non-GAAP financial measures. Management has presented these non-GAAP measurements in this earnings release, because it believes these measures are useful to investors. Please refer to the end of this release for reconciliations of these non-GAAP financial measures to GAAP financial measures.

Alaska Economic Update
(Note: sources for information in this section are listed on page 13.)

The Alaska Department of Labor (“DOL”) has reported Alaska’s seasonally adjusted unemployment rate in November 2024 was 4.6% compared to the U.S. rate of 4.2%. The total number of payroll jobs in Alaska, not including uniformed military, increased 2.4% or 7,700 jobs between November 2023 and November 2024.

According to the DOL, Construction had the largest growth in new jobs in Alaska through November compared to the prior year. The Construction sector added 2,100 positions for a year over year growth rate of 12.7% in November 2024. The larger Health Care sector grew by 1,500 jobs for an annual growth rate of 3.7%. The Oil & Gas sector increased by 9.2% or 700 new direct jobs. Transportation, Warehousing and Utilities added 1,000 jobs for a 4.5% growth rate. Professional and Business Services increased 700 jobs year over year through November 2024, up 2.5%.

The Government sector grew by 1,200 jobs for 1.5% growth, adding 100 Federal jobs, 800 State and 300 Local government positions in Alaska over the same period. Declining sectors between November 2023 and November 2024 were Manufacturing (primarily seafood processing) shrinking 500 jobs (-6.6%), Information, down 100 jobs (-2.2%), and Retail lost 100 jobs (-0.3%).

Alaska’s Gross State Product (“GSP”) in the third quarter of 2024, exceeded $70 billion for the first time, and is estimated to be $70.1 billion in current dollars, according to the Federal Bureau of Economic Analysis (“BEA”). Alaska’s inflation adjusted “real” GSP increased 6.5% in 2023, placing Alaska fifth best of all 50 states. In the third quarter of 2024 Alaska GSP increased at an annualized rate of 2.2%, compared to the average U.S. growth rate of 3.1%. Alaska’s real GSP improvement in the third quarter of 2024 was primarily caused by growth in the Health Care, Trade, Transportation and Warehousing sectors.

The BEA also calculated Alaska’s seasonally adjusted personal income at $55.7 billion in the third quarter of 2024. This was an annualized improvement in the third quarter of 3.3% for Alaska, compared to the national average of 3.2%. Alaska enjoyed an annual personal income improvement of 3.8% in 2023. The $445 million increase in personal income in the third quarter in Alaska came from a $310 million increase in net earnings from wages, $145 million growth in government transfer receipts (which grew in all 50 states), and a $10 million decrease in investment income.

The monthly average price of Alaska North Slope (“ANS”) crude oil was at an annual high of $89.05 in April 2024 and most recently averaged $72.50 in November 2024. The Alaska Department of Revenue (“DOR”) calculated ANS crude oil production was 461 thousand barrels per day (“bpd”) in Alaska’s fiscal year ending June 30, 2024 and is projected to increase to 467 thousand bpd in Alaska’s fiscal year 2025. The DOR expects production to continue to grow rapidly to 657 thousand bpd by fiscal year 2034. This is primarily a result of new production coming on-line in and around the NPR-A region west of Prudhoe Bay. A partnership between Santos and Repsol is constructing the new Pikka field and ConocoPhillips is reportedly developing the large new Willow field. There are also a number of smaller new fields in Alaska’s North Slope that are contributing to the State of Alaska’s production growth estimates.

According to the Alaska Multiple Listing Services, the average sales price of a single family home in Anchorage rose 6.2% in 2024 to $509,994, following a 5.2% increase in 2023. This was the seventh consecutive year of price increases.

The average sales price for single family homes in the Matanuska Susitna Borough rose 3.9% in 2024 to $412,907, after increasing 4% in 2023. This continues a trend of average price increases for more than a decade in the region. These two markets represent where the vast majority of the Bank’s residential lending activity occurs.

The Alaska Multiple Listing Services reported a 3.4% increase in the number of units sold in Anchorage when comparing 2024 to 2023. There was virtually no change in the number of homes sold in the Matanuska Susitna Borough, with only four fewer homes sold in 2024 than in 2023 or 0.2%.

Northrim Bank sponsors the Alaskanomics blog to provide news, analysis, and commentary on Alaska’s economy. Join the conversation at Alaskanomics.com, or for more information on the Alaska economy, visit: http://www.northrim.com and click on the “Business Banking” link and then click “Learn.” Information from our website is not incorporated into, and does not form, a part of this earnings release.

Review of Income Statement

Consolidated Income Statement

In the fourth quarter of 2024, Northrim generated a ROAA of 1.43% and a ROAE of 16.32%, compared to 1.22% and 13.69%, respectively, in the third quarter of 2024 and 0.93% and 11.36%, respectively, in the fourth quarter a year ago. For the year 2024, Northrim generated a ROAA of 1.29% and a ROAE of 14.70%, compared to 0.94% and 11.17% for 2023.

Net Interest Income/Net Interest Margin

Net interest income increased 7% to $30.8 million in the fourth quarter of 2024 compared to $28.8 million in the third quarter of 2024 and increased 15% compared to $26.7 million in the fourth quarter of 2023. Interest expense on deposits increased to $10.6 million in the fourth quarter compared to $10.1 million in the third quarter of 2024 and $8.7 million in the fourth quarter of 2023.

NIMTE^* was 4.47% in the fourth quarter of 2024 compared to 4.35% in the preceding quarter and 4.12% in the fourth quarter a year ago. NIMTE^* increased 12 basis points in the fourth quarter of 2024 compared to the prior quarter and 35 basis points compared to the fourth quarter of 2023 primarily due to a favorable change in the mix of earning-assets towards higher loan balances as a percentage of total earning-assets, higher earning-assets, and higher yields on those assets which were only partially offset by an increase in costs on interest-bearing deposits. The weighted average interest rate for new loans booked in the fourth quarter of 2024 was 7.23% compared to 7.24% in the third quarter of 2024 and 7.74% in the fourth quarter a year ago. The yield on the investment portfolio increased to 2.84% from 2.80% in the third quarter of 2024 and increased from 2.48% in the fourth quarter of 2023. “We are beginning to see improvements in our net interest margin as a result of lower deposit costs from the recent Fed interest rate cuts, in addition to the benefit of new loan volume and loan repricing driving our net interest margin to 4.47% for the fourth quarter,” said Jed Ballard, Chief Financial Officer. Northrim’s NIMTE^* continues to remain above the peer average of 3.16% posted by the S&P U.S. Small Cap Bank Index with total market capitalization between $250 million and $1 billion as of September 30, 2024.

Provision for Credit Losses

Northrim recorded a provision for credit losses of $1.2 million in the fourth quarter of 2024, which includes a $125,000 provision for credit losses on purchased receivables, $107,000 benefit to the provision for credit losses on unfunded commitments, and a provision for credit losses on loans of $1.2 million. This compares to a provision for credit losses of $2.1 million in the third quarter of 2024, and a provision for credit losses of $885,000 in the fourth quarter a year ago. The $1.2 million provision for credit losses in the fourth quarter of 2024 is largely attributable to increases in loan and purchased receivable balances.

Nonperforming loans, net of government guarantees, increased during the quarter to $7.5 million at December 31, 2024, compared to $5.0 million at both September 30, 2024 and December 31, 2023.

The allowance for credit losses was 292% of nonperforming loans, net of government guarantees, at the end of the fourth quarter of 2024, compared to 394% three months earlier and 345% a year ago.

Other Operating Income

In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities, including purchased receivables financing and wealth management. Other operating income contributed $13.0 million, or 30% of total fourth quarter 2024 revenues, as compared to $11.6 million, or 29% of revenues in the third quarter of 2024, and $6.5 million, or 20% of revenues in the fourth quarter of 2023. The increase in other operating income in the fourth quarter of 2024 as compared to the preceding quarter and the fourth quarter of 2023 is largely the result of higher purchased receivable income due to the acquisition of Sallyport. Additionally, other operating income in the fourth quarter of 2024 as compared to the fourth quarter a year ago increased due to an increase in mortgage banking income arising from higher volume of mortgage activity and an increase in the value of mortgage servicing rights. The changes in mortgage banking are discussed further in the Home Mortgage Lending section below.

Other Operating Expenses

Operating expenses were $29.4 million in the fourth quarter of 2024, compared to $26.7 million in the third quarter of 2024, and $24.0 million in the fourth quarter of 2023. The increase in other operating expenses in the fourth quarter of 2024 compared to the third quarter of 2024 and the fourth quarter a year ago is primarily due to an increase in salaries and other personnel expense, as well as increases in professional fees from one-time deal costs associated with the acquisition of Sallyport and insurance expense due to higher FDIC insurance costs due to the Company’s asset and net income growth.

Income Tax Provision

In the fourth quarter of 2024, Northrim recorded $2.4 million in state and federal income tax expense for an effective tax rate of 17.8%, compared to $2.8 million, or 24.2% in the third quarter of 2024 and $1.7 million, or 20.7% in the fourth quarter a year ago. For the year, Northrim recorded $10.0 million in state and federal income tax expense in 2024 for an effective tax rate of 21.3%, compared to $6.2 million, or 19.7% in 2023. The decrease in the tax rate in the fourth quarter of 2024 as compared to the third quarter of 2024 and the fourth quarter a year ago is primarily the result of increased tax benefits related to the Company’s investment in low income housing tax credits and the purchase of renewable energy tax credits.

Community Banking

In the most recent deposit market share data from the FDIC, Northrim’s deposit market share in Alaska increased to 15.66% of Alaska’s total deposits as of June 30, 2024 compared to 15.04% of Alaska’s total deposits as of June 30, 2023. This represents 62 basis points of growth in market share percentage for Northrim during that period while, according to the FDIC, the total deposits in Alaska were up 2.3% during the same period. Northrim opened a branch in Kodiak in the first quarter of 2023, a loan production office in Homer in the second quarter of 2023, a permanent branch in Nome in the third quarter of 2023, and a branch in Homer in the first quarter of 2024. See below for further discussion regarding the Company’s deposit movement for the quarter.

Northrim is committed to meeting the needs of the diverse communities in which it operates. As a testament to that support, the Bank has branches in four regions of Alaska identified by the Federal Reserve as “distressed or underserved non-metropolitan middle-income geographies”.

Net interest income in the Community Banking segment totaled $27.6 million in the fourth quarter of 2024, compared to $25.9 million in the third quarter of 2024 and $24.2 million in the fourth quarter of 2023. Net interest income increased in the fourth quarter of 2024 as compared to the third quarter of 2024 and the fourth quarter a year ago mostly due to increased interest income on loans that was only partially offset by higher interest expense on deposits.

The following table provides highlights of the Community Banking segment of Northrim:


	Three Months Ended
(Dollars in thousands, except per share data)	December 31, 2024	September 30, 2024	June 30, 2024		March 31, 2024	December 31, 2023
Net interest income	$27,643	$25,928	$24,318		$24,215	$24,221
Provision (benefit) for credit losses	771	1,492	(184	)	197	885
Other operating income	2,535	3,507	2,450		2,468	2,741
Other operating expense	19,116	18,723	18,068		17,177	18,158
Income before provision for income taxes	10,291	9,220	8,884		9,309	7,919
Provision for income taxes	1,474	2,133	1,786		1,966	1,604
Net income Community Banking segment	$8,817	$7,087	$7,098		$7,343	$6,315
Weighted average shares outstanding, diluted	5,597,889	5,583,055	5,558,580		5,554,930	5,578,491
Diluted earnings per share	$1.58	$1.26	$1.27		$1.32	$1.14

	Year Ended
(Dollars in thousands, except per share data)	December 31, 2024	December 31, 2023
Net interest income	$102,104	$95,555
Provision for credit losses	2,276	3,842
Other operating income	10,960	9,130
Other operating expense	73,085	69,253
Income before provision for income taxes	37,703	31,590
Provision for income taxes	7,359	6,175
Net income Community Banking segment	$30,344	$25,415
Weighted average shares outstanding, diluted	5,583,983	5,661,460
Diluted earnings per share	$5.43	$4.49

Home Mortgage Lending

During the fourth quarter of 2024, mortgage loans funded for sale decreased to $162.5 million, of which 89% was for home purchases, compared to $210.0 million and 94% of loans funded for home purchases in the third quarter of 2024, and increased as compared to $79.7 million, of which 96% was for home purchases in the fourth quarter of 2023.

During the fourth quarter of 2024, the Bank purchased Residential Mortgage-originated mortgage loans to hold on the Bank’s balance sheet of $23.4 million of which roughly two-thirds were jumbos and one-third were mortgages for second homes, with a weighted average interest rate of 6.30%, down from $38.1 million and 6.59% in the third quarter of 2024, and down from $27.1 million and 7.05% in the fourth quarter of 2023. Mortgage loans funded for investment has increased net interest income in the Home Mortgage Lending segment. Net interest income contributed $3.3 million to total revenue in the fourth quarter of 2024, up from $2.9 million in the prior quarter, and up from $2.3 million in the fourth quarter a year ago.

The Arizona, Colorado, and the Pacific Northwest mortgage expansion markets were responsible for 19% of Residential Mortgage’s $186 million total production in the fourth quarter of 2024, 20% of the $248 million total production in the third quarter of 2024, and 11% of the $107 million in total production in the fourth quarter of 2023.

The net change in fair value of mortgage servicing rights increased mortgage banking income by $873,000 during the fourth quarter of 2024 compared to a decrease of $968,000 for the third quarter of 2024 and a decrease of $1.0 million for the fourth quarter of 2023. In the fourth quarter of 2024, the Bank purchased an Alaska Housing Finance Corporation (AHFC) servicing portfolio from another financial institution for $2.3 million. At December 31, 2024, this servicing portfolio was valued at $3.1 million resulting in a $750,000 increase in fair value. Mortgage servicing revenue increased to $2.8 million in the fourth quarter of 2024 from $2.6 million in the prior quarter and increased from $2.2 million in the fourth quarter of 2023 due to an increase in production of AHFC mortgages, which contribute to servicing revenues at origination. In the fourth quarter of 2024, the Company’s mortgage servicing portfolio increased to $294.1 million, which includes the purchase of the AHFC servicing portfolio of $235.6 million, $86.3 million in new mortgage loans, net of amortization and payoffs of $27.8 million as compared to a net increase of $64.8 million in the third quarter of 2024 and $62.4 million in the fourth quarter of 2023.

As of December 31, 2024, Northrim serviced 6,378 loans in its $1.46 billion home mortgage servicing portfolio, a 25% increase compared to the $1.17 billion serviced as of the end of the third quarter of 2024, and a 40% increase from the $1.04 billion serviced a year ago.

The following table provides highlights of the Home Mortgage Lending segment of Northrim:


	Three Months Ended
(Dollars in thousands, except per share data)	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Mortgage loan commitments	$32,299		$77,591		$88,006		$56,208		$22,926

Mortgage loans funded for sale	$162,530		$209,960		$152,339		$84,324		$79,742
Mortgage loans funded for investment	23,380		38,087		29,175		17,403		27,114
Total mortgage loans funded	$185,910		$248,047		$181,514		$101,727		$106,856
Mortgage loan refinances to total fundings	11	%	6	%	6	%	4	%	4	%
Mortgage loans serviced for others	$1,460,720		$1,166,585		$1,101,800		$1,060,007		$1,044,516

Net realized gains on mortgage loans sold	$3,747		$5,079		$3,188		$1,980		$1,462
Change in fair value of mortgage loan commitments, net	(665	)	60		391		386		(296	)
Total production revenue	3,082		5,139		3,579		2,366		1,166
Mortgage servicing revenue	2,847		2,583		2,164		1,561		2,180
Change in fair value of mortgage servicing rights:
Due to changes in model inputs of assumptions¹	1,372		(566	)	239		289		(707	)
Other²	(499	)	(402	)	(320	)	(314	)	(301	)
Total mortgage servicing revenue, net	3,720		1,615		2,083		1,536		1,172
Other mortgage banking revenue	238		293		222		129		99
Total mortgage banking income	$7,040		$7,047		$5,884		$4,031		$2,437

Net interest income	$3,280		$2,941		$2,775		$2,232		$2,276
Provision (benefit) for credit losses	305		571		64		(48	)	—
Mortgage banking income	7,040		7,047		5,884		4,031		2,437
Other operating expense	7,198		7,643		6,697		6,086		5,477
Income before provision for income taxes	2,817		1,774		1,898		225		(764	)
Provision for income taxes	842		497		532		63		(215	)
Net (loss) income Home Mortgage Lending segment	$1,975		$1,277		$1,366		$162		($549	)

Weighted average shares outstanding, diluted	5,597,889		5,583,055		5,558,580		5,554,930		5,769,415
Diluted (loss) earnings per share	$0.35		$0.23		$0.25		$0.03		($0.10	)
¹Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
²Represents changes due to collection/realization of expected cash flows over time.


	Year Ended
(Dollars in thousands, except per share data)	December 31, 2024		December 31, 2023
Mortgage loans funded for sale	$609,153		$376,154
Mortgage loans funded for investment	108,045		146,258
Total mortgage loans funded	$717,198		$522,412
Mortgage loan refinances to total fundings	7	%	4	%

Net realized gains on mortgage loans sold	$13,994		$7,828
Change in fair value of mortgage loan commitments, net	172		(102	)
Total production revenue	14,166		7,726
Mortgage servicing revenue	9,155		7,368
Change in fair value of mortgage servicing rights:
Due to changes in model inputs of assumptions¹	1,334		(922	)
Other²	(1,535	)	(1,765	)
Total mortgage servicing revenue, net	8,954		4,681
Other mortgage banking revenue	882		356
Total mortgage banking income	$24,002		$12,763

Net interest income	$11,228		$7,298
Provision for credit losses	892		—
Mortgage banking income	24,002		12,763
Other operating expense	27,624		23,497
Income before provision for income taxes	6,714		(3,436	)
Provision for income taxes	1,934		(943	)
Net (loss) income Home Mortgage Lending segment	$4,780		($2,493	)

Weighted average shares outstanding, diluted	5,583,983		5,661,460
Diluted (loss) earnings per share	$0.86		($0.44	)
¹Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
²Represents changes due to collection/realization of expected cash flows over time.

Specialty Finance

On October 31, 2024, the Company completed the acquisition of Sallyport Commercial Finance, LLC in an all cash transaction valued at approximately $53.9 million. Sallyport Commercial Finance, LLC is a leading provider of factoring, asset based lending and alternative working capital solutions to small and medium sized enterprises in the United States, Canada, and the United Kingdom. The Company determined that a new Specialty Finance segment was appropriate for the Company upon the completion of the acquisition. The Specialty Finance segment also includes Northrim Funding Services, a division of Northrim Bank that has offered factoring solutions to small businesses since 2004. The composition of revenues for the Specialty Finance segment are primarily purchased receivable income, but also include interest income and other fee income.

The acquisition of Sallyport included $1.13 million in one-time deal related costs which are reflected in other operating expenses for the fourth quarter and full year of 2024 in the tables below. Total pre-tax income for Sallyport for two months of operations, excluding transaction costs was $945,000.

The following table provides highlights of the Specialty Finance segment of Northrim:


	Three Months Ended
(Dollars in thousands, except per share data)	December 31, 2024		September 30, 2024	June 30, 2024	March 31, 2024	December 31, 2023
Purchased receivable income	$3,526		$1,033	$1,243	$1,345	$1,307
Other operating income	(68	)	—	—	—	—
Interest income	407		158	170	212	235
Total revenue	3,865		1,191	1,413	1,557	1,542
Provision for credit losses	125		—	—	—	—
Other operating expense	3,063		362	429	374	358
Interest expense	489		185	210	212	—
Total expense	3,677		547	639	586	358
Income before provision for income taxes	188		644	774	971	1,184
Provision for income taxes	53		183	218	276	337
Net income Specialty Finance segment	$135		$461	$556	$695	$847
Weighted average shares outstanding, diluted	5,597,889		5,583,055	5,558,580	5,554,930	5,578,491
Diluted earnings per share	$0.02		$0.08	$0.10	$0.13	$0.15

	Year Ended
(Dollars in thousands, except per share data)	December 31, 2024		December 31, 2023
Purchased receivable income	$7,147		$4,482
Other operating income	(68	)	—
Interest income	947		403
Total revenue	8,026		4,885
Provision for credit losses	125		—
Other operating expense	4,228		1,431
Interest expense	1,096		—
Total expense	5,449		1,431
Income before provision for income taxes	2,577		3,454
Provision for income taxes	730		982
Net income Specialty Finance segment	$1,847		$2,472
Weighted average shares outstanding, diluted	5,583,983		5,661,460
Diluted earnings per share	$0.33		$0.44

Balance Sheet Review

Northrim’s total assets were $3.04 billion at December 31, 2024, up 3% from the preceding quarter and up 8% from a year ago. Northrim’s loan-to-deposit ratio was 79% at December 31, 2024, up from 76% at September 30, 2024, and 72% at December 31, 2023.

At December 31, 2024, our liquid assets and investments and loans maturing within one year were $1.01 billion and our funds available for borrowing under our existing lines of credit were $566.8 million. Given these sources of liquidity and our expectations for customer demands for cash and for our operating cash needs, we believe our sources of liquidity to be sufficient for the foreseeable future.

Average interest-earning assets were $2.79 billion in the fourth quarter of 2024, up 4% from $2.67 billion in the third quarter of 2024 and up 7% from $2.61 billion in the fourth quarter a year ago. The average yield on interest-earning assets was 6.02% in the fourth quarter of 2024, up from 5.92% in the preceding quarter and 5.51% in the fourth quarter a year ago.

Average investment securities decreased to $565.8 million in the fourth quarter of 2024, compared to $619.0 million in the third quarter of 2024 and $690.7 million in the fourth quarter a year ago. The average net tax equivalent yield on the securities portfolio was 2.84% for the fourth quarter of 2024, up from 2.80% in the preceding quarter and up from 2.48% in the year ago quarter. The average estimated duration of the investment portfolio at December 31, 2024, was approximately 2.4 years down from approximately 2.8 years a year ago. As of December 31, 2024, $79.0 million of available for sale securities are scheduled to mature in the next six months, $55.8 million are scheduled to mature in six months to one year, and $189.3 million are scheduled to mature in the following year, representing a total of $324.0 million or 12% of earning assets that are scheduled to mature in the next 24 months.

Total unrealized losses, net of tax, on available for sale securities increased by $678,000 in the fourth quarter of 2024 as compared to the prior quarter, and decreased by $9.1 million compared to the fourth quarter of 2023, resulting in a total unrealized loss of $8.3 million at December 31, 2024 compared to $7.6 million at September 30, 2024 and $17.4 million a year ago. The average maturity of the available for sale securities with the majority of the unrealized loss is 1.5 years at the end of 2024. Total unrealized losses on held to maturity securities were $1.0 million at December 31, 2024, compared to $2.1 million at September 30, 2024, and $3.3 million a year ago.

Average interest bearing deposits in other banks increased to $72.2 million in the fourth quarter from $28.4 million in the third quarter of 2024 due to higher deposit balances and maturing portfolio investments. Average interest bearing deposits in other banks decreased in the fourth quarter of this year compared to $126.2 million in the fourth quarter of 2023 as cash was used to fund the growing loan portfolio.

Portfolio loans were $2.13 billion at December 31, 2024, up 6% from the preceding quarter and up 19% from a year ago. Portfolio loans, excluding consumer mortgage loans, were $1.86 million at December 31, 2024, up 6% or $99.9 million from $1.76 billion in the preceding quarter and up 14% from a year ago. This increase was diversified throughout the loan portfolio including commercial real estate nonowner-occupied and multi-family loans increasing by $35.1 million, construction loans increasing by $28.7 million, commercial loans increasing $24.9 million, and commercial real estate owner-occupied loans increasing $7.2 million from the preceding quarter. Average portfolio loans in the fourth quarter of 2024 were $2.07 billion, which was up 7% from the preceding quarter and up 18% from a year ago. Yields on average portfolio loans in the fourth quarter of 2024 increased slightly to 6.93% from 6.91% in the third quarter of 2024 and increased from 6.55% in the fourth quarter of 2023. The increase in the yield on portfolio loans in the fourth quarter of 2024 compared to the third quarter of 2024 and the fourth quarter a year ago is primarily due to loan repricing due to the increases in interest rates and new loans booked at higher rates due to changes in the interest rate environment. The yield on new portfolio loans, excluding consumer mortgage loans, was 7.40% in the fourth quarter of 2024 as compared to 7.43% in the third quarter of 2024 and 8.07% in the fourth quarter of 2023.

Alaskans continue to account for substantially all of Northrim’s deposit base. Total deposits were $2.68 billion at December 31, 2024, up 2% from $2.63 billion at September 30, 2024, and up 8% from $2.49 billion a year ago. “Our bankers are working hard to continue to bring over new relationships to the Bank, which is helping to magnify normal increases in deposit balances from our customers’ business cycles,” said Ballard. At December 31, 2024, 73% of total deposits were held in business accounts and 27% of deposit balances were held in consumer accounts. Northrim had approximately 34,000 deposit customers with an average balance of $61,000 as of December 31, 2024. Northrim had 26 customers with balances over $10 million as of December 31, 2024, which accounted for $612.9 million, or 24%, of total deposits. Demand deposits decreased by 8% from the prior quarter and decreased 6% year-over-year to $706.2 million at December 31, 2024. Demand deposits decreased to 27% of total deposits at December 31, 2024 compared to 29% at September 30, 2024 and 31% of total deposits at December 31, 2023. Average interest-bearing deposits were up 9% to $1.95 billion with an average cost of 2.15% in the fourth quarter of 2024, compared to $1.80 billion and an average cost of 2.24% in the third quarter of 2024, and up 13% compared to $1.72 billion and an average cost of 2.00% in the fourth quarter of 2023. Uninsured deposits totaled $1.08 billion or 40% of total deposits as of December 31, 2024 compared to $1.1 billion or 46% of total deposits as of December 31, 2022. As interest rates continued to increase in 2022, Northrim has taken a proactive, targeted approach to increase deposit rates.

Shareholders’ equity was $267.1 million, or $48.41 book value per share, at December 31, 2024, compared to $260.1 million, or $47.27 book value per share, at September 30, 2024 and $234.7 million, or $42.57 book value per share, a year ago. Tangible book value per share^* was $39.17 at December 31, 2024, compared to $44.36 at September 30, 2024, and $39.68 per share a year ago. The increase in shareholders’ equity in the fourth quarter of 2024 as compared to the third quarter of 2024 was largely the result of earnings of $10.9 million which was partially offset by dividends paid of $3.4 million and a decrease in the fair value of the available for sale securities portfolio, which decreased $678,000, net of tax. The Company did not purchase any shares of common stock in the fourth quarter of 2024 and had 110,000 shares remaining under the current share repurchase program as of December 31, 2024. Tangible common equity to tangible assets^* was 7.23% as of December 31, 2024, compared to 8.28% as of September 30, 2024 and 7.84% as of December 31, 2023. The decrease in tangible common equity to tangible assets* was primarily due to $35.0 million of Goodwill booked as part of the acquisition of Sallyport. Northrim continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with Tier 1 Capital to Risk Adjusted Assets of 9.76% at December 31, 2024, compared to 11.53% at September 30, 2024, and 11.43% at December 31, 2023.

Asset Quality

Northrim believes it has a consistent lending approach throughout the economic cycles, which emphasizes appropriate loan-to-value ratios, adequate debt coverage ratios, and competent management.

Nonperforming assets (“NPAs”) net of government guarantees were $11.6 million at December 31, 2024, up from $5.3 million at September 30, 2024 and from $5.8 million a year ago. Of the NPAs at December 31, 2024, $3.0 million, or 26% are nonaccrual loans related to three commercial relationships, $2.8 million, or 24% is related to a Sallyport nonaccrual loan, and $3.3 million, or 28% is related to one purchased receivable relationship.

Net adversely classified loans were $9.6 million at December 31, 2024, as compared to $6.5 million at September 30, 2024, and $7.1 million a year ago. Adversely classified loans are loans that Northrim has classified as substandard, doubtful, and loss, net of government guarantees. Net loan recoveries were $51,000 in the fourth quarter of 2024, compared to net loan recoveries of $96,000 in the third quarter of 2024, and net loan charge-offs of $96,000 in the fourth quarter of 2023.

Northrim had $138.0 million, or 6% of total portfolio loans, in the Healthcare sector; $117.0 million, or 5% of portfolio loans, in the Tourism sector; $104.3 million, or 5% in the Accommodations sector; $87.4 million, or 4% in Retail loans; $84.6 million, or 4% of portfolio loans, in the Aviation (non-tourism) sector; $76.5 million, or 4% in the Fishing sector; and $55.1 million, or 3% in the Restaurants and Breweries sector as of December 31, 2024.

Northrim estimates that $99.7 million, or approximately 5% of portfolio loans, had direct exposure to the oil and gas industry in Alaska, as of December 31, 2024, and $1.6 million of these loans are adversely classified. As of December 31, 2024, Northrim has an additional $45.8 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and none of these unfunded commitments are considered to be adversely classified loans. Northrim defines direct exposure to the oil and gas sector as loans to borrowers that provide oilfield services and other companies that have been identified as significantly reliant upon activity in Alaska related to the oil and gas industry, such as lodging, equipment rental, transportation and other logistics services specific to this industry.

About Northrim BanCorp

Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 20 branches throughout the state and differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. The Bank has two wholly-owned subsidiaries, Sallyport Commercial Finance, LLC, a specialty finance company and Residential Mortgage Holding Company, LLC, a regional home mortgage company. Pacific Wealth Advisors, LLC is an affiliated company.

http://www.northrim.com

Forward-Looking Statement
This release may contain “forward-looking statements” as that term is defined for purposes of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are, in effect, management’s attempt to predict future events, and thus are subject to various risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy, management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim and its management are intended to help identify forward-looking statements. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements, are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include: descriptions of Northrim’s and Sallyport’s financial condition, results of operations, asset based lending volumes, asset and credit quality trends and profitability and statements about the expected financial benefits and other effects of the acquisition of Sallyport by Northrim Bank; expected cost savings, synergies and other financial benefits from the acquisition of Sallyport by Northrim Bank might not be realized within the expected time frames and costs or difficulties relating to integration matters might be greater than expected; the ability of Northrim and Sallyport to execute their respective business plans; potential further increases in interest rates; the value of securities held in our investment portfolio; the impact of the results of government initiatives on the regulatory landscape, natural resource extraction industries, and capital markets; the impact of declines in the value of commercial and residential real estate markets, high unemployment rates, inflationary pressures and slowdowns in economic growth; changes in banking regulation or actions by bank regulators; inflation, supply-chain constraints, and potential geopolitical instability, including the wars in Ukraine and the Middle East; financial stress on borrowers (consumers and businesses) as a result of higher rates or an uncertain economic environment; the general condition of, and changes in, the Alaska economy; our ability to maintain or expand our market share or net interest margin; the sufficiency of our provision for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to current expected credit losses accounting guidance; our ability to maintain asset quality; our ability to implement our marketing and growth strategies; our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking,” and identity theft; disease outbreaks; and our ability to execute our business plan. Further, actual results may be affected by competition on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and from time to time are disclosed in our other filings with the Securities and Exchange Commission. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations. These forward-looking statements are made only as of the date of this release, and Northrim does not undertake any obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.

References:

https://www.bea.gov/

http://almis.labor.state.ak.us/

http://www.tax.alaska.gov/programs/oil/prevailing/ans.aspx

http://www.tax.state.ak.us/

http://www.mba.org

https://www.alaskarealestate.com/MLSMember/RealEstateStatistics.aspx

https://www.capitaliq.spglobal.com/web/client?auth=inherit&overridecdc=1&#markets/indexFinancials


Income Statement
(Dollars in thousands, except per share data)	Three Months Ended					Year-to-date
(Unaudited)	December 31,		September 30,	December 31,		December 31,		December 31,
	2024		2024	2023		2024		2023
Interest Income:
Interest and fees on loans	$37,059		$34,863	$29,508		$134,739		$108,612
Interest on investments	3,844		4,164	4,677		16,838		18,695
Interest on deposits in banks	883		389	1,743		2,342		4,644
Total interest income	41,786		39,416	35,928		153,919		131,951
Interest Expense:
Interest expense on deposits	10,568		10,123	8,676		39,347		26,511
Interest expense on borrowings	377		451	520		1,389		2,184
Total interest expense	10,945		10,574	9,196		40,736		28,695
Net interest income	30,841		28,842	26,732		113,183		103,256

Provision for credit losses	1,201		2,063	885		3,293		3,842
Net interest income after provision for
loan losses	29,640		26,779	25,847		109,890		99,414

Other Operating Income:
Mortgage banking income	7,040		7,047	2,437		24,002		12,763
Purchased receivable income	3,526		1,033	1,307		7,146		4,482
Bankcard fees	1,148		1,196	946		4,366		3,862
Service charges on deposit accounts	622		605	532		2,348		2,044
Gain on sale of securities	112		—	—		112		—
Unrealized gain (loss) on marketable equity securities	(364	)	576	565		465		120
Other income	949		1,130	698		3,602		3,104
Total other operating income	13,033		11,587	6,485		42,041		26,375

Other Operating Expense:
Salaries and other personnel expense	18,254		17,549	15,417		67,847		61,741
Data processing expense	3,108		2,618	2,500		10,986		9,821
Occupancy expense	1,893		1,911	1,783		7,609		7,394
Professional and outside services	1,967		903	802		4,351		3,128
Marketing expense	965		860	933		3,028		2,929
Insurance expense	894		596	675		2,961		2,519
OREO expense, net rental income and gains on sale	2		2	(28	)	(385	)	(794	)
Intangible asset amortization expense	—		—	6		—		17
Other operating expense	2,294		2,289	1,905		8,540		7,426
Total other operating expense	29,377		26,728	23,993		104,937		94,181

Income before provision for income taxes	13,296		11,638	8,339		46,994		31,608
Provision for income taxes	2,369		2,813	1,726		10,023		6,214
Net income	$10,927		$8,825	$6,613		$36,971		$25,394

Basic EPS	$1.99		$1.60	$1.19		$6.72		$4.53
Diluted EPS	$1.95		$1.57	$1.19		$6.62		$4.49
Weighted average common shares outstanding, basic	5,509,078		5,501,943	5,513,041		5,502,797		5,601,471
Weighted average shares outstanding, diluted	5,597,889		5,583,055	5,578,491		5,583,983		5,661,460

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

Assets:
Cash and due from banks	$42,101		$42,805		$27,457
Interest bearing deposits in other banks	20,635		60,071		91,073
Investment securities available for sale, at fair value	478,617		545,210		637,936
Investment securities held to maturity	36,750		36,750		36,750
Marketable equity securities, at fair value	8,719		12,957		13,153
Investment in Federal Home Loan Bank stock	5,331		4,318		2,980
Loans held for sale	59,957		97,937		31,974
Portfolio loans	2,129,263		2,007,565		1,789,497
Allowance for credit losses, loans	(22,020	)	(19,528	)	(17,270	)
Net portfolio loans	2,107,243		1,988,037		1,772,227
Purchased receivables, net	74,078		23,564		36,842
Mortgage servicing rights, at fair value	26,439		21,570		19,564
Premises and equipment, net	37,757		39,625		40,693
Operating lease right-of-use assets	7,455		7,616		9,092
Goodwill and intangible assets	50,968		15,967		15,967
Other assets	85,819		66,965		71,789
Total assets	$3,041,869		$2,963,392		$2,807,497

Liabilities:
Demand deposits	$706,225		$763,595		$749,683
Interest-bearing demand	1,108,404		979,238		927,291
Savings deposits	250,900		245,043		255,338
Money market deposits	196,290		201,821		221,492
Time deposits	418,370		435,870		331,251
Total deposits	2,680,189		2,625,567		2,485,055
Other borrowings	23,045		13,354		13,675
Junior subordinated debentures	10,310		10,310		10,310
Operating lease liabilities	7,487		7,635		9,092
Other liabilities	53,722		46,476		54,647
Total liabilities	2,774,753		2,703,342		2,572,779

Shareholders’ Equity:
Total shareholders’ equity	267,116		260,050		234,718
Total liabilities and shareholders’ equity	$3,041,869		$2,963,392		$2,807,497

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Composition of Portfolio Loans
	December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024				December 31, 2023
	Balance		% of total		Balance		% of total		Balance		% of total		Balance		% of total		Balance		% of total
Commercial loans	$518,148		24	%	$492,414		24	%	$495,781		26	%	$475,220		26	%	$486,057		27	%
Commercial real estate:
Owner occupied properties	420,060		20	%	412,827		20	%	383,832		20	%	372,507		20	%	368,357		20	%
Nonowner occupied and multifamily properties	619,431		29	%	584,302		31	%	551,130		30	%	529,904		30	%	519,115		30	%
Residential real estate:
1-4 family properties secured by first liens	270,535		13	%	248,514		12	%	222,026		12	%	218,552		12	%	203,534		11	%
1-4 family properties secured by junior liens & revolving secured by first liens	48,857		2	%	45,262		2	%	41,258		2	%	35,460		2	%	33,783		2	%
1-4 family construction	39,789		2	%	39,794		2	%	29,510		2	%	27,751		2	%	31,239		2	%
Construction loans	214,068		10	%	185,362		9	%	154,009		8	%	153,537		8	%	149,788		8	%
Consumer loans	7,562		—	%	7,836		—	%	6,679		—	%	6,444		—	%	6,180		—	%
Subtotal	2,138,450				2,016,311				1,884,225				1,819,375				1,798,053
Unearned loan fees, net	(9,187	)			(8,746	)			(8,318	)			(8,240	)			(8,556	)
Total portfolio loans	$2,129,263				$2,007,565				$1,875,907				$1,811,135				$1,789,497

Composition of Deposits
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
	Balance	% of total		Balance	% of total		Balance	% of total		Balance	% of total		Balance	% of total
Demand deposits	$706,225	27	%	$763,595	29	%	$704,471	29	%	$714,244	29	%	$749,683	31	%
Interest-bearing demand	1,108,404	41	%	979,238	37	%	906,010	36	%	889,581	37	%	927,291	37	%
Savings deposits	250,900	9	%	245,043	9	%	238,156	10	%	246,902	10	%	255,338	10	%
Money market deposits	196,290	7	%	204,821	8	%	195,159	8	%	209,785	9	%	221,492	9	%
Time deposits	418,370	16	%	435,870	17	%	420,010	17	%	373,571	15	%	331,251	13	%
Total deposits	$2,680,189			$2,628,567			$2,463,806			$2,434,083			$2,485,055

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Asset Quality		December 31,		September 30,		December 31,
		2024		2024		2023
	Nonaccrual loans	$7,516		$4,944		$6,069
	Loans 90 days past due and accruing	17		17		—
	Total nonperforming loans	7,533		4,961		6,069
	Nonperforming loans guaranteed by government	—		—		(1,067	)
	Net nonperforming loans	7,533		4,961		5,002
	Repossessed assets	297		297		—
	Nonperforming purchased receivables	3,768		—		808
	Net nonperforming assets	$11,598		$5,258		$5,810
	Nonperforming loans, net of government guarantees / portfolio loans	0.35	%	0.25	%	0.28	%
	Nonperforming loans, net of government guarantees / portfolio loans, net of government guarantees	0.38	%	0.26	%	0.30	%
	Nonperforming assets, net of government guarantees / total assets	0.38	%	0.18	%	0.21	%
	Nonperforming assets, net of government guarantees / total assets net of government guarantees	0.40	%	0.19	%	0.21	%

	Adversely classified loans, net of government guarantees	$9,636		$6,503		$7,057
	Special mention loans, net of government guarantees	$19,769		$9,641		$6,580
	Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans	0.03	%	0.08	%	0.03	%
	Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans, net of government guarantees	0.03	%	0.09	%	0.03	%

	Allowance for credit losses – loans / portfolio loans	1.03	%	0.97	%	0.97	%
	Allowance for credit losses – loans / portfolio loans, net of government guarantees	1.10	%	1.04	%	1.02	%
	Allowance for credit losses – loans / nonperforming loans, net of government guarantees	292	%	394	%	345	%

	Allowance for credit losses – purchased receivables / purchased receivables	4.69	%	—	%	—	%
	Allowance for credit losses – purchased receivables / nonperforming purchased receivables	97	%	—	%	—	%

	Gross loan charge-offs for the quarter	$149		$15		$281
	Gross loan recoveries for the quarter	($200	)	($111	)	($185	)
	Net loan (recoveries) charge-offs for the quarter	($51	)	($96	)	$96
	Net loan (recoveries) charge-offs year-to-date	($215	)	($164	)	($38	)
	Net loan (recoveries) charge-offs for the quarter / average loans, for the quarter	0.00	%	0.00	%	0.01	%
	Net loan (recoveries) charge-offs year-to-date / average loans, year-to-date annualized	(0.01	)%	(0.01	)%	0.00	%

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Average Balances, Yields, and Rates
	Three Months Ended
	December 31, 2024				September 30, 2024				December 31, 2023
			Average				Average				Average
	Average		Tax Equivalent		Average		Tax Equivalent		Average		Tax Equivalent
	Balance		Yield/Rate		Balance		Yield/Rate		Balance		Yield/Rate
Assets
Interest bearing deposits in other banks	$72,212		4.72	%	$28,409		5.28	%	$126,174		5.40	%
Portfolio investments	565,785		2.84	%	619,012		2.80	%	690,659		2.48	%
Loans held for sale	83,304		5.97	%	93,689		6.20	%	45,732		6.55	%
Portfolio loans	2,066,216		6.93	%	1,933,181		6.91	%	1,749,732		6.55	%
Total interest-earning assets	2,787,517		6.02	%	2,674,291		5.92	%	2,612,297		5.51	%
Nonearning assets	251,364				196,266				214,934
Total assets	$3,038,881				$2,870,557				$2,827,231

Liabilities and Shareholders’ Equity
Interest-bearing deposits	$1,954,495		2.15	%	$1,796,107		2.24	%	$1,724,409		2.00	%
Borrowings	29,251		3.95	%	43,555		4.07	%	47,964		4.25	%
Total interest-bearing liabilities	1,983,746		2.18	%	1,839,662		2.29	%	1,772,373		2.06	%

Noninterest-bearing demand deposits	738,911				722,000				760,566
Other liabilities	49,815				52,387				63,321
Shareholders’ equity	266,409				256,508				230,971
Total liabilities and shareholders’ equity	$3,038,881				$2,870,557				$2,827,231
Net spread			3.84	%			3.63	%			3.45	%
NIM			4.41	%			4.29	%			4.06	%
NIMTE^*			4.47	%			4.35	%			4.12	%
Cost of funds			1.59	%			1.64	%			1.44	%
Average portfolio loans to average interest-earning assets	74.12	%			72.29	%			66.98	%
Average portfolio loans to average total deposits	76.71	%			76.77	%			70.41	%
Average non-interest deposits to average total deposits	27.43	%			28.67	%			30.61	%
Average interest-earning assets to average interest-bearing liabilities	140.52	%			145.37	%			147.39	%

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Average Balances, Yields, and Rates
	Year-to-date
	December 31, 2024				December 31, 2023
			Average				Average
	Average		Tax Equivalent		Average		Tax Equivalent
	Balance		Yield/Rate		Balance		Yield/Rate
Assets
Interest bearing deposits in other banks	$44,913		5.09	%	$91,161		5.02	%
Portfolio investments	623,756		2.82	%	715,367		2.43	%
Loans held for sale	68,790		6.08	%	41,769		6.19	%
Portfolio loans	1,910,156		6.87	%	1,643,943		6.49	%
Total interest-earning assets	2,647,615		5.86	%	2,492,240		5.36	%
Nonearning assets	213,397				198,107
Total assets	$2,861,012				$2,690,347

Liabilities and Shareholders’ Equity
Interest-bearing deposits	$1,802,286		2.18	%	$1,614,386		1.64	%
Borrowings	33,799		3.81	%	51,038		4.24	%
Total interest-bearing liabilities	1,836,085		2.21	%	1,665,424		1.72	%

Noninterest-bearing demand deposits	718,163				749,859
Other liabilities	55,265				47,820
Shareholders’ equity	251,499				227,244
Total liabilities and shareholders’ equity	$2,861,012				$2,690,347
Net spread			3.65	%			3.64	%
NIM			4.28	%			4.14	%
NIMTE^*			4.33	%			4.21	%
Cost of funds			1.59	%			1.19	%
Average portfolio loans to average interest-earning assets	72.15	%			65.96	%
Average portfolio loans to average total deposits	75.79	%			69.53	%
Average non-interest deposits to average total deposits	28.49	%			31.72	%
Average interest-earning assets to average interest-bearing liabilities	144.20	%			149.65	%

Additional Financial Information
(Dollars in thousands, except per share data)
(Unaudited)

Capital Data (At quarter end)
	December 31, 2024		September 30, 2024		December 31, 2023
Book value per share	$48.41		$47.27		$42.57
Tangible book value per share^*	$39.17		$44.36		$39.68
Total shareholders’ equity/Total assets	8.78	%	8.78	%	8.36	%
Tangible common equity/Tangible assets^*	7.23	%	8.28	%	7.84	%
Tier 1 capital / Risk adjusted assets	9.76	%	11.53	%	11.43	%
Total capital / Risk adjusted assets	10.94	%	12.50	%	12.35	%
Tier 1 capital / Average assets	7.68	%	9.08	%	8.72	%
Common shares outstanding	5,518,210		5,501,943		5,513,459
Unrealized gain on AFS debt securities, net of income taxes	($8,295	)	($7,617	)	($17,415	)
Unrealized (loss) on derivatives and hedging activities, net of income taxes	$1,272		$863		$978

Profitability Ratios
	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
For the quarter:
NIM	4.41	%	4.29	%	4.24	%	4.16	%	4.06	%
NIMTE^*	4.47	%	4.35	%	4.30	%	4.22	%	4.12	%
Efficiency ratio	66.96	%	66.11	%	68.78	%	68.93	%	72.21	%
Return on average assets	1.43	%	1.22	%	1.31	%	1.19	%	0.93	%
Return on average equity	16.32	%	13.69	%	14.84	%	13.84	%	11.36	%

	December 31, 2024		December 31, 2023
Year-to-date:
NIM	4.28	%	4.14	%
NIMTE^*	4.33	%	4.21	%
Efficiency ratio	67.60	%	72.64	%
Return on average assets	1.29	%	0.94	%
Return on average equity	14.70	%	11.17	%

*Non-GAAP Financial Measures
(Dollars and shares in thousands, except per share data)
(Unaudited)

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although we believe these non-GAAP financial measures are frequently used by stakeholders in the evaluation of the Company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP.

Net interest margin on a tax equivalent basis

Net interest margin on a tax equivalent basis (“NIMTE”) is a non-GAAP performance measurement in which interest income on non-taxable investments and loans is presented on a tax equivalent basis using a combined federal and state statutory rate of 28.43% in both 2023 and 2022. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of NIMTE to net interest margin.


	Three Months Ended
	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Net interest income	$30,841		$28,842		$27,053		$26,447		$26,732
Divided by average interest-bearing assets	2,787,517		2,674,291		2,568,266		2,558,558		2,612,297
Net interest margin (“NIM”)²	4.41	%	4.29	%	4.24	%	4.16	%	4.06	%

Net interest income	$30,841		$28,842		$27,053		$26,447		$26,732
Plus: reduction in tax expense related to tax-exempt interest income	379		385		378		379		374
	$31,220		$29,227		$27,431		$26,826		$27,106
Divided by average interest-bearing assets	2,787,517		2,674,291		2,568,266		2,558,558		2,612,297
NIMTE²	4.47	%	4.35	%	4.30	%	4.22	%	4.12	%

	Year-to-date
	December 31, 2024		December 31, 2023
Net interest income	$113,183		$103,256
Divided by average interest-bearing assets	2,647,615		2,492,240
Net interest margin (“NIM”)³	4.28	%	4.14	%

Net interest income	$113,183		$103,256
Plus: reduction in tax expense related to tax-exempt interest income	1,521		1,576
	$114,704		$104,832
Divided by average interest-bearing assets	2,647,615		2,492,240
NIMTE³	4.33	%	4.21	%

²Calculated using actual days in the quarter divided by 366 for the quarters ended in 2024 and 365 for the quarters ended in 2023, respectively.

³Calculated using actual days in the year divided by 366 for year-to-date period in 2024 and 365 for year-to-date period in 2023, respectively.

*Non-GAAP Financial Measures

(Dollars and shares in thousands, except per share data)
(Unaudited)

Tangible Book Value

Tangible book value is a non-GAAP measure defined as shareholders’ equity, less intangible assets, divided by common shares outstanding. The most comparable GAAP measure is book value per share and the following table sets forth the reconciliation of tangible book value per share and book value per share.


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

Total shareholders’ equity	$267,116	$260,050	$247,200	$239,327	$234,718
Divided by common shares outstanding	5,518	5,502	5,502	5,500	5,513
Book value per share	$48.41	$47.26	$44.93	$43.52	$42.57

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

Total shareholders’ equity	$267,116	$260,050	$247,200	$239,327	$234,718
Less: goodwill and intangible assets	50,968	15,967	15,967	15,967	15,967
	$216,148	$244,083	$231,233	$223,360	$218,751
Divided by common shares outstanding	5,518	5,502	5,502	5,500	5,513
Tangible book value per share	$39.17	$44.36	$43.52	$40.61	$39.68

Tangible Common Equity to Tangible Assets

Tangible common equity to tangible assets is a non-GAAP ratio that represents total equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. The most comparable GAAP measure of shareholders’ equity to total assets is calculated by dividing total shareholders’ equity by total assets and the following table sets forth the reconciliation of tangible common equity to tangible assets and shareholders’ equity to total assets.


Northrim BanCorp, Inc.	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023

Total shareholders’ equity	$267,116		$260,050		$247,200		$239,327		$234,718
Total assets	3,041,869		2,963,392		2,821,668		2,759,560		2,807,497
Total shareholders’ equity to total assets	8.78	%	8.78	%	8.76	%	8.67	%	8.36	%

Northrim BanCorp, Inc.	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Total shareholders’ equity	$267,116		$260,050		$247,200		$239,327		$234,718
Less: goodwill and other intangible assets, net	50,968		15,967		15,967		15,967		15,967
Tangible common shareholders’ equity	$216,148		$244,083		$231,233		$223,360		$218,751

Total assets	$3,041,869		$2,963,392		$2,821,668		$2,759,560		$2,807,497
Less: goodwill and other intangible assets, net	50,968		15,967		15,967		15,967		15,967
Tangible assets	$2,990,901		$2,947,425		$2,805,701		$2,743,593		$2,791,530
Tangible common equity ratio	7.23	%	8.28	%	8.24	%	8.14	%	7.84	%

Note Transmitted on GlobeNewswire on January 24, 2025, at 12:15 pm Alaska Standard Time.


Contact:	Mike Huston, President, CEO, and COO
	(907) 261-8750
	Jed Ballard, Chief Financial Officer
	(907) 261-3539

The MIL Network –

January 25, 2025

MIL-OSI Global: Amid LA fires, neighbors helped each other survive – 60 years of research shows how local heroes are crucial to disaster response

Source: The Conversation – USA – By Tricia Wachtendorf, Professor of Sociology and Director, Disaster Research Center, University of Delaware

Neighbors fill and pass a bucket of pool water to help extinguish a spot fire in Pacific Palisades, Calif., on Jan. 9, 2025. Brian van der Brug / Los Angeles Times via Getty Image

As wildfires swept through neighborhoods on the outskirts of Los Angeles in January 2025, stories about residents there helping their neighbors and total strangers began trickling out on social media.

Accounts of Hollywood stars clearing streets for emergency vehicles to get through and raising money for fire victims were widely circulated. But there were many other examples of less-famous people helping older neighbors to safety, and even showing up with trailers to evacuate horses.

Businesses, including fitness centers, opened their facilities so evacuees could shower or charge their phones. Organizations that routinely work with homeless populations quickly mobilized their members to help ensure people living on the streets and in camps could get to secure, safe locations away from the fires and hazardous air quality.

Disasters, by definition, overwhelm local resources, making civilian responders like these essential. Sixty years of research at the University of Delaware’s Disaster Research Center and by others examining the social aspects of disaster has repeatedly shown effective disaster management requires mobilizing community resources far beyond official channels.

Often the response happens through local groups that form in response to a clear need in the community and with shared skills and interests. And this is exactly what we are witnessing in Los Angeles.

Civilians helping often number in the thousands

The number of those who step up to help during disasters varies by event, but it can be tremendous.

Following the 1995 Oklahoma City bombing, over 6,800 volunteers worked with the Red Cross on the response. That same year, volunteers responding to the Kobe earthquake in Japan logged more than 1 million person-days of activity, a measure of the number of people times the hours they contributed.

People use garden hoses to try to prevent homes from catching fire in Altadena, Calif., on Jan. 8, 2025. Neighbors rushed to help neighbors as the wind blew burning embers into neighborhoods.
Mario Tama/Getty Images

In an in-depth study of the Sept. 11, 2001, World Trade Center attacks, we interviewed local residents who used their retired fireboat to pump water for the firefighters at ground zero. Operators of tug, ferry and tour boats in and around New York City immediately responded to quickly evacuate 500,000 people in the area from danger. In fact, the majority of the boats involved belonged to private companies. Other volunteers queued evacuees and organized supplies and rides to get people home.

Over 900 people, most acting in unofficial capacities, were awarded medals or ribbons for their efforts in just the marine response after the World Trade Center attack.

A survey of residents after the 1985 Mexico City earthquake found that nearly 10% of local residents volunteered in the first three weeks of the response. Following the 1989 Loma Prieta earthquake, in California, a survey of residents in Santa Cruz and San Francisco counties found that two-thirds of the public were involved in response activities.

Local businesses are often quick to help in disasters. Greg Dulan, center, who runs a soul food restaurant and food truck, hands out hot meals to wildfire evacuees at a church in Pasadena, Calif., on Jan. 15, 2025.
Jason Armond/Los Angeles Times via Getty Images

However, much of the work local residents contribute during and after disasters goes unaccounted for in official reports.

There is no mechanism to quantify the full extent to which a neighbor or a complete stranger helps someone flee from peril. Yet when people are trapped and minutes count, research shows it is family, friends and neighbors who are already on the scene and are most likely to save lives. It’s often everyday citizens who also take on immediate tasks such as debris removal. Providing a phone, a car, a place to do laundry, or a little bit of elbow grease can fill a gap and let firefighters and other formal responders focus on critical operations.

Getting the right help to where it’s needed

Every study of a large-scale disaster conducted by the Disaster Research Center has revealed some level of emergent, informal helping behavior.

The lack of public understanding about the large number of local residents already involved, often including disaster victims themselves, can lead to an influx of outsiders eager to help. Their arrival can actually pose challenges for the disaster response.

When too many people show up, or when people try to operate outside their areas of expertise, they can put themselves and others at further risk. Communities often need supplies, but unsolicited goods of the wrong kind or at the wrong time can create more problems than they solve.

Local groups such as the Pasadena Community Job Center organize volunteers to send them where help is requested. This group is removing debris from streets in Pasadena, Calif., in the wake of the Eaton Fire on Jan. 14, 2025.
Zoë Meyers/AFP via Getty Images

So, what can you do to best support these local efforts?

Making a financial contribution to a trusted disaster response or local organization can go a long way to providing the support communities actually need. Organizations such as the American Red Cross or Feeding America, or local community-based groups that routinely work in the area, are often best suited to help where it’s needed the most.

Skilled help will be needed for the long term

Also, remember that disasters don’t end when the emergency is over. Survivors of the Los Angeles-area fires face years of confusing and frustrating recovery tasks ahead.

Offering help after the immediate threat has passed – particularly skilled help, such as experience in construction or expertise in managing insurance and FEMA paperwork – is just as important.

For example, after fires in 1970 destroyed hundreds of homes in the San Diego area, local architects, engineers and contractors donated their time and skills to help people rebuild. Their work was coordinated by a local architect and member of the Chamber of Commerce to ensure projects were assigned to reputable volunteers.

As we recognize the important ways that neighbors and strangers helped those around them, the broader community can support wildfire victims by responding to offering the right help as recovery needs emerge. Just about every skill that is useful in calm times will be needed in these difficult months and years ahead.

Tricia Wachtendorf receives funding from the National Science Foundation and Arnold Ventures Foundation.

James Kendra receives funding from the National Science Foundation and the Centers for Disease Control and Prevention.

– ref. Amid LA fires, neighbors helped each other survive – 60 years of research shows how local heroes are crucial to disaster response – https://theconversation.com/amid-la-fires-neighbors-helped-each-other-survive-60-years-of-research-shows-how-local-heroes-are-crucial-to-disaster-response-247660

MIL OSI – Global Reports –

January 25, 2025

MIL-OSI USA: TS Food Packaging is Recalling its “Rural King” and “Wabash Valley Farms” Bacon Seasoning Due to the Presence of an Undeclared Soy Ingredient

Source: US Department of Health and Human Services – 3

Summary

Company Announcement Date:: January 24, 2025
FDA Publish Date:: January 24, 2025
Product Type:: Food & Beverages
Allergens
Reason for Announcement:: Recall Reason Description

Potential or Undeclared Allergen – soy
Company Name:: TS FOOD PACKAGING
Brand Name:: Brand Name(s)

Wabash Valley Farms, Rural King
Product Description:: Product Description

Bacon flavor popcorn seasoning

Company Announcement

TS Food Packaging is recalling its “Rural King” and “Wabash Valley Farms” Bacon Seasoning due to the presence of an undeclared soy ingredient. People who have allergies to products containing soy run the risk of serious or life-threatening allergic reactions if they consume these products.

The recalled “Bacon Seasonings” were distributed nationwide via E-commerce and retail stores.

The product is packaged in 4.2 oz plastic jars with lot numbers 17324s,27824s, and 30324s, along with 1oz sample gift packets marked with lot numbers 16524SP, 16624SP, 23424SP, 26324SP, 26424SP, 26724SP, 20624S, 20724S.

No illnesses have been reported to date in connection with this problem.

The recall was initiated after it was discovered via a manufacturing quality verification that the soy containing ingredient was a substitute provided by a supplier without notification of the presence of Soy. Subsequent investigation indicated the problem was caused by a substitution review process gap between the supplier and their customer base, corrective actions are in place to prevent recurrence.

Consumers who have purchased Rural King or Wabash Valley Farms Bacon Seasonings packages are urged to return them to the place of purchase for a full refund. Consumers with questions may contact the company at 262-763-9434 between the hours of 8 am to 4 pm (central) or via email at mail@tsfoodpackaging.com.

Company Contact Information

Product Photos

MIL OSI USA News –

January 25, 2025

MIL-OSI Europe: Latest news – Meeting of 6 February 2025 – Delegation for relations with the People’s Republic of China

Source: European Parliament

Next ordinary meeting of the Delegation for relations with the People’s Republic of China (D-CN) will take place on Thursday 6 February 2025 at 9.00-10:30 in Brussels.

As main topic on the draft agenda there will be an exchange of views on the EU-China trade relations in the context of geopolitical changes with:

Mr Jens Eskelund, President of the European Union Chamber of Commerce (ECCC) in China
Ms Agatha Kratz, Partner and Director at Rhodium Group, Head of the China Practice’s Corporate Advisory

The meeting will be webstreamed and can be followed via the link below.

MIL OSI Europe News –

January 25, 2025

MIL-OSI: South Plains Financial, Inc. Reports Fourth Quarter and Year-End 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

LUBBOCK, Texas, Jan. 24, 2025 (GLOBE NEWSWIRE) — South Plains Financial, Inc. (NASDAQ:SPFI) (“South Plains” or the “Company”), the parent company of City Bank (“City Bank” or the “Bank”), today reported its financial results for the quarter and year ended December 31, 2024.

Fourth Quarter 2024 Highlights

Net income for the fourth quarter of 2024 was $16.5 million, compared to $11.2 million for the third quarter of 2024 and $10.3 million for the fourth quarter of 2023.
Diluted earnings per share for the fourth quarter of 2024 was $0.96, compared to $0.66 for the third quarter of 2024 and $0.61 for the fourth quarter of 2023.
Average cost of deposits for the fourth quarter of 2024 was 229 basis points, compared to 247 basis points for the third quarter of 2024 and 224 basis points for the fourth quarter of 2023.
Net interest margin, calculated on a tax-equivalent basis, was 3.75% for the fourth quarter of 2024, compared to 3.65% for the third quarter of 2024 and 3.52% for the fourth quarter of 2023.
Return on average assets for the fourth quarter of 2024 was 1.53% annualized, compared to 1.05% annualized for the third quarter of 2024 and 0.99% annualized for the fourth quarter of 2023.
Tangible book value (non-GAAP) per share was $25.40 as of December 31, 2024, compared to $25.75 as of September 30, 2024 and $23.47 as of December 31, 2023.
The consolidated total risk-based capital ratio, common equity tier 1 risk-based capital ratio, and tier 1 leverage ratio at December 31, 2023 were 16.74%, 12.41%, and 11.33%, respectively. These ratios significantly exceeded the minimum regulatory levels necessary to be deemed “well-capitalized”.

Full Year 2024 Highlights

Full year net income of $49.7 million in 2024, compared to $62.7 million in 2023.
Diluted earnings per share of $2.92 in 2024, compared to $3.62 in 2023.
The Bank’s wholly-owned subsidiary, Windmark Insurance Agency, Inc. (“Windmark”), was sold in the second quarter of 2023 for $36.1 million, resulting in a gain, net of related charges and taxes, of $22.9 million or $1.32 of diluted earnings per share.
Loans held for investment grew $40.9 million, or 1.4%, during 2024.
Total assets were $4.23 billion at December 31, 2024, compared to $4.20 billion at December 31, 2023.
Return on average assets of 1.17% for the full year 2024, compared to 1.54% for 2023.

Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “I am very proud of our performance this past year as we successfully navigated a challenging environment with a focus on delivering strong financial results. We tightly managed our liquidity to optimize our profitability and return metrics while maintaining our conservative approach to underwriting and risk management. We have also managed the anticipated decline in our indirect auto portfolio as well as a heightened level of loan payoffs and paydowns that has obscured the strong, underlying loan production that has built through the year. Importantly, we are seeing a growing level of optimism across our customer base that is translating into the strongest new business production pipeline that we have seen in more than two years. This bodes positively for the year ahead where we expect to deliver low to mid-single digit loan growth for the full year 2025. Additionally, we are seeing deposit pricing fall across our markets which contributed to our strong margin expansion in the fourth quarter.”

Results of Operations, Quarter Ended December 31, 2024

Net Interest Income

Net interest income was $38.5 million for the fourth quarter of 2024, compared to $37.3 million for the third quarter of 2024 and $35.2 million for the fourth quarter of 2023. Net interest margin, calculated on a tax-equivalent basis, was 3.75% for the fourth quarter of 2024, compared to 3.65% for the third quarter of 2024 and 3.52% for the fourth quarter of 2023. The average yield on loans was 6.69% for the fourth quarter of 2024, compared to 6.68% for the third quarter of 2024 and 6.29% for the fourth quarter of 2023. The average cost of deposits was 229 basis points for the fourth quarter of 2024, which is 18 basis points lower than the third quarter of 2024 and 5 basis points higher than the fourth quarter of 2023.

Interest income was $61.3 million for the fourth quarter of 2024, compared to $61.6 million for the third quarter of 2024 and $57.2 million for the fourth quarter of 2023. Interest income decreased $316 thousand in the fourth quarter of 2024 from the third quarter of 2024, which was primarily comprised of a decrease of $243 thousand in loan interest income. The decline in loan interest income was due primarily to a decrease in average loans of $20.2 million. Interest income increased $4.1 million in the fourth quarter of 2024 compared to the fourth quarter of 2023. This increase was primarily due to an increase of average loans of $30.5 million and higher loan interest rates during the period, resulting in growth of $3.4 million in loan interest income.

Interest expense was $22.8 million for the fourth quarter of 2024, compared to $24.3 million for the third quarter of 2024 and $22.1 million for the fourth quarter of 2023. Interest expense decreased $1.6 million compared to the third quarter of 2024 and increased $702 thousand compared to the fourth quarter of 2023. The $1.6 million decrease was primarily as a result of a 24 basis point decline in the cost of interest-bearing deposits. The $702 thousand increase was primarily a result of growth in average interest-bearing deposits of $136.0 million.

Noninterest Income and Noninterest Expense

Noninterest income was $13.3 million for the fourth quarter of 2024, compared to $10.6 million for the third quarter of 2024 and $9.1 million for the fourth quarter of 2023. The increase from the third quarter of 2024 was primarily due to an increase of $3.1 million in mortgage banking revenues, mainly from an increase of $3.5 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value increased in the fourth quarter of 2024. This growth was partially offset by approximately $700 thousand in insurance proceeds received for property damage in the third quarter of 2024. The increase in noninterest income for the fourth quarter of 2024 as compared to the fourth quarter of 2023 was primarily due to an increase of $3.3 million in mortgage banking activities revenue mainly from a rise of $3.0 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value increased in the fourth quarter of 2024.

Noninterest expense was $29.9 million for the fourth quarter of 2024, compared to $33.1 million for the third quarter of 2024 and $30.6 million for the fourth quarter of 2023. The $3.2 million decrease from the third quarter of 2024 was largely the result of a decline of $1.4 million in personnel expenses, primarily from decreased health insurance costs of $668 thousand, as annual rebates were received in the fourth quarter, and a reduction of $400 thousand in mortgage commissions as mortgage activity slowed in the fourth quarter. There were also decreases in net occupancy expense, professional service expenses, and the ineffectiveness related to fair value hedges on municipal securities. The decrease in noninterest expense for the fourth quarter of 2024 as compared to the fourth quarter of 2023 was largely the result of a decrease of $593 thousand in personnel expenses, related to the decline in health insurance costs previously noted.

Loan Portfolio and Composition

Loans held for investment were $3.06 billion as of December 31, 2024, compared to $3.04 billion as of September 30, 2024 and $3.01 billion as of December 31, 2023. The $17.7 million, or 2.3% annualized, increase during the fourth quarter of 2024 as compared to the third quarter of 2024 occurred primarily as a result of organic loan growth experienced in commercial owner-occupied real estate loans. As of December 31, 2024, loans held for investment increased $40.9 million, or 1.4%, from December 31, 2023, primarily attributable to organic loan growth, occurring mainly in multi-family property loans, direct-energy loans, commercial owner-occupied real estate loans, and single-family property loans, partially offset by decreases in consumer auto loans and construction, land, and development loans.

Deposits and Borrowings

Deposits totaled $3.62 billion as of December 31, 2024, compared to $3.72 billion as of September 30, 2024 and $3.63 billion as of December 31, 2023. Deposits decreased by $94.8 million, or 2.6%, in the fourth quarter of 2024 from September 30, 2024. As of December 31, 2024, deposits were essentially unchanged, from December 31, 2023. Noninterest-bearing deposits were $935.5 million as of December 31, 2024, compared to $998.5 million as of September 30, 2024 and $974.2 million as of December 31, 2023. Noninterest-bearing deposits represented 25.8% of total deposits as of December 31, 2024. The quarterly change in total deposits was mainly due to the seasonal decline in escrow accounts of approximately $35 million and a planned reduction of approximately $50 million in customer sweep deposits as part of balance sheet management. Deposits were essentially unchanged, year-over-year, with an increase in interest-bearing deposits offset by a decline in noninterest-bearing deposits.

Asset Quality

The Company recorded a provision for credit losses in the fourth quarter of 2024 of $1.2 million, compared to $495 thousand in the third quarter of 2024 and $600 thousand in the fourth quarter of 2023. The provision during the fourth quarter of 2024 was largely attributable to net charge-off activity and increased loan balances.

The ratio of allowance for credit losses to loans held for investment was 1.42% as of December 31, 2024, compared to 1.41% as of September 30, 2024 and 1.41% as of December 31, 2023.

The ratio of nonperforming assets to total assets was 0.58% as of December 31, 2024, compared to 0.59% as of September 30, 2024 and 0.14% as of December 31, 2023. Annualized net charge-offs were 0.11% for the fourth quarter of 2024, compared to 0.11% for the third quarter of 2024 and 0.08% for the fourth quarter of 2023.

Capital

Book value per share decreased to $26.67 at December 31, 2024, compared to $27.04 at September 30, 2024. The change was primarily driven by a decrease in accumulated other comprehensive income (“AOCI”) of $18.2 million, partially offset by $14.0 million of net income after dividends paid. The decrease in AOCI was attributed to the after-tax decrease in fair value of our available for sale securities, net of fair value hedges, as a result of increases in long-term market interest rates during the period. The tangible common equity to tangible assets ratio (non-GAAP) increased 15 basis points to 9.92% in the fourth quarter of 2024.

Conference Call

South Plains will host a conference call to discuss its fourth quarter and year-end 2024 financial results today, January 24, 2025, at 10:00 a.m., Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-407-9716 (international callers please dial 1-201-493-6779) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call and conference materials will be available on the Company’s website at https://www.spfi.bank/news-events/events.

A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed on the investor section of the Company’s website as well as by dialing 1-844-512-2921 (international callers please dial 1-412-317-6671). The pin to access the telephone replay is 13750452. The replay will be available until February 7, 2025.

About South Plains Financial, Inc.

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

Non-GAAP Financial Measures

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

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

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

Available Information

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

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

Forward Looking Statements

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

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

Source: South Plains Financial, Inc.


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

	As of and for the quarter ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Selected Income Statement Data:
Interest income	$	61,324		$	61,640		$	59,208		$	58,727		$	57,236
Interest expense		22,776			24,346			23,320			23,359			22,074
Net interest income		38,548			37,294			35,888			35,368			35,162
Provision for credit losses		1,200			495			1,775			830			600
Noninterest income		13,319			10,635			12,709			11,409			9,146
Noninterest expense		29,948			33,128			32,572			31,930			30,597
Income tax expense		4,222			3,094			3,116			3,143			2,787
Net income		16,497			11,212			11,134			10,874			10,324
Per Share Data (Common Stock):
Net earnings, basic	$	1.01		$	0.68		$	0.68		$	0.66		$	0.63
Net earnings, diluted		0.96			0.66			0.66			0.64			0.61
Cash dividends declared and paid		0.15			0.14			0.14			0.13			0.13
Book value		26.67			27.04			25.45			24.87			24.80
Tangible book value (non-GAAP)		25.40			25.75			24.15			23.56			23.47
Weighted average shares outstanding, basic		16,400,361			16,386,079			16,425,360			16,429,919			16,443,908
Weighted average shares outstanding, dilutive		17,161,646			17,056,959			16,932,077			16,938,857			17,008,892
Shares outstanding at end of period		16,455,826			16,386,627			16,424,021			16,431,755			16,417,099
Selected Period End Balance Sheet Data:
Cash and cash equivalents	$	359,082		$	471,167		$	298,006		$	371,939		$	330,158
Investment securities		577,240			606,889			591,031			599,869			622,762
Total loans held for investment		3,055,054			3,037,375			3,094,273			3,011,799			3,014,153
Allowance for credit losses		43,237			42,886			43,173			42,174			42,356
Total assets		4,232,239			4,337,659			4,220,936			4,218,993			4,204,793
Interest-bearing deposits		2,685,366			2,720,880			2,672,948			2,664,397			2,651,952
Noninterest-bearing deposits		935,510			998,480			951,565			974,174			974,201
Total deposits		3,620,876			3,719,360			3,624,513			3,638,571			3,626,153
Borrowings		110,354			110,307			110,261			110,214			110,168
Total stockholders’ equity		438,949			443,122			417,985			408,712			407,114
Summary Performance Ratios:
Return on average assets (annualized)		1.53	%		1.05	%		1.07	%		1.04	%		0.99	%
Return on average equity (annualized)		14.88	%		10.36	%		10.83	%		10.72	%		10.52	%
Net interest margin ⁽¹⁾		3.75	%		3.65	%		3.63	%		3.56	%		3.52	%
Yield on loans		6.69	%		6.68	%		6.60	%		6.53	%		6.29	%
Cost of interest-bearing deposits		3.12	%		3.36	%		3.33	%		3.27	%		3.14	%
Efficiency ratio		57.50	%		68.80	%		66.72	%		67.94	%		68.71	%
Summary Credit Quality Data:
Nonperforming loans	$	24,023		$	24,693		$	23,452		$	3,380		$	5,178
Nonperforming loans to total loans held for investment		0.79	%		0.81	%		0.76	%		0.11	%		0.17	%
Other real estate owned		530			973			755			862			912
Nonperforming assets to total assets		0.58	%		0.59	%		0.57	%		0.10	%		0.14	%
Allowance for credit losses to total loans held for investment		1.42	%		1.41	%		1.40	%		1.40	%		1.41	%
Net charge-offs to average loans outstanding (annualized)		0.11	%		0.11	%		0.10	%		0.13	%		0.08	%

	As of and for the quarter ended
	December 31 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Capital Ratios:
Total stockholders’ equity to total assets		10.37	%		10.22	%		9.90	%		9.69	%		9.68	%
Tangible common equity to tangible assets (non-GAAP)		9.92	%		9.77	%		9.44	%		9.22	%		9.21	%
Common equity tier 1 to risk-weighted assets		13.53	%		13.25	%		12.61	%		12.67	%		12.41	%
Tier 1 capital to average assets		12.04	%		11.76	%		11.81	%		11.51	%		11.33	%
Total capital to risk-weighted assets		17.86	%		17.61	%		16.86	%		17.00	%		16.74	%

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

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

	For the Three Months Ended
	December 31, 2024							December 31, 2023

	Average Balance		Interest		Yield/Rate			Average Balance		Interest		Yield/Rate
Assets
Loans	$	3,049,718	$	51,270		6.69	%	$	3,019,228	$	47,903		6.29	%
Debt securities – taxable		518,646		4,994		3.83	%		560,143		5,563		3.94	%
Debt securities – nontaxable		154,203		1,014		2.62	%		157,341		1,032		2.60	%
Other interest-bearing assets		390,090		4,267		4.35	%		255,454		2,963		4.60	%

Total interest-earning assets		4,112,657		61,545		5.95	%		3,992,166		57,461		5.71	%
Noninterest-earning assets		189,422							156,541

Total assets	$	4,302,079						$	4,148,707

Liabilities & stockholders’ equity
NOW, Savings, MMDA’s	$	2,249,062		16,570		2.93	%	$	2,201,190		16,894		3.04	%
Time deposits		445,173		4,566		4.08	%		357,067		3,325		3.69	%
Short-term borrowings		3		–		0.00	%		3		–		0.00	%
Notes payable & other long-term borrowings		–		–		0.00	%		–		–		0.00	%
Subordinated debt		63,938		834		5.19	%		73,740		981		5.28	%
Junior subordinated deferrable interest debentures		46,393		806		6.91	%		46,393		874		7.47	%

Total interest-bearing liabilities		2,804,569		22,776		3.23	%		2,678,393		22,074		3.27	%
Demand deposits		978,742							1,021,091
Other liabilities		77,732							59,808
Stockholders’ equity		441,036							389,415

Total liabilities & stockholders’ equity	$	4,302,079						$	4,148,707

Net interest income			$	38,769						$	35,387
Net interest margin ⁽²⁾						3.75	%						3.52	%

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

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

	For the Twelve Months Ended
	December 31, 2024							December 31, 2023

	Average Balance		Interest		Yield/Rate			Average Balance		Interest		Yield/Rate
Assets
Loans	$	3,054,189	$	202,301		6.62	%	$	2,924,473	$	176,627		6.04	%
Debt securities – taxable		532,730		21,090		3.96	%		570,655		21,590		3.78	%
Debt securities – nontaxable		155,168		4,076		2.63	%		185,205		4,901		2.65	%
Other interest-bearing assets		312,917		14,319		4.58	%		223,152		9,973		4.47	%

Total interest-earning assets		4,055,004		241,786		5.96	%		3,903,485		213,091		5.46	%
Noninterest-earning assets		179,527							176,495

Total assets	$	4,234,531						$	4,079,980

Liabilities & stockholders’ equity
NOW, Savings, MMDA’s	$	2,250,942		70,362		3.13	%	$	2,117,985		55,423		2.62	%
Time deposits		411,028		16,719		4.07	%		321,205		9,564		2.98	%
Short-term borrowings		3		–		0.00	%		84		5		5.95	%
Notes payable & other long-term borrowings		–		–		0.00	%		–		–		0.00	%
Subordinated debt		63,868		3,339		5.23	%		75,458		4,018		5.32	%
Junior subordinated deferrable interest debentures		46,393		3,381		7.29	%		46,393		3,276		7.06	%

Total interest-bearing liabilities		2,772,234		93,801		3.38	%		2,561,125		72,286		2.82	%
Demand deposits		968,307							1,069,280
Other liabilities		70,777							71,102
Stockholders’ equity		423,213							378,473

Total liabilities & stockholders’ equity	$	4,234,531						$	4,079,980

Net interest income			$	147,985						$	140,805
Net interest margin ⁽²⁾						3.65	%						3.61	%

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

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

	As of
	December 31, 2024			December 31, 2023

Assets
Cash and due from banks	$	54,114		$	62,821
Interest-bearing deposits in banks		304,968			267,337
Securities available for sale		577,240			622,762
Loans held for sale		20,542			14,499
Loans held for investment		3,055,054			3,014,153
Less: Allowance for credit losses		(43,237	)		(42,356	)
Net loans held for investment		3,011,817			2,971,797
Premises and equipment, net		52,951			55,070
Goodwill		19,315			19,315
Intangible assets		1,720			2,429
Mortgage servicing rights		26,292			26,569
Other assets		163,280			162,194
Total assets	$	4,232,239		$	4,204,793

Liabilities and Stockholders’ Equity
Noninterest-bearing deposits	$	935,510		$	974,201
Interest-bearing deposits		2,685,366			2,651,952
Total deposits		3,620,876			3,626,153
Subordinated debt		63,961			63,775
Junior subordinated deferrable interest debentures		46,393			46,393
Other liabilities		62,060			61,358
Total liabilities		3,793,290			3,797,679
Stockholders’ Equity
Common stock		16,456			16,417
Additional paid-in capital		97,287			97,107
Retained earnings		385,827			345,264
Accumulated other comprehensive income (loss)		(60,621	)		(51,674	)
Total stockholders’ equity		438,949			407,114
Total liabilities and stockholders’ equity	$	4,232,239		$	4,204,793

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

	Three Months Ended				Twelve Months Ended
	December 31, 2024		December 31, 2023		December 31, 2024		December 31, 2023

Interest income:
Loans, including fees	$	51,262	$	47,895	$	202,270	$	176,598
Other		10,062		9,341		38,629		35,435
Total interest income		61,324		57,236		240,899		212,033
Interest expense:
Deposits		21,136		20,219		87,081		64,987
Subordinated debt		834		981		3,339		4,018
Junior subordinated deferrable interest debentures		806		874		3,381		3,276
Other		–		–		–		5
Total interest expense		22,776		22,074		93,801		72,286
Net interest income		38,548		35,162		147,098		139,747
Provision for credit losses		1,200		600		4,300		4,610
Net interest income after provision for credit losses		37,348		34,562		142,798		135,137
Noninterest income:
Service charges on deposits		2,241		1,844		8,026		7,130
Income from insurance activities		31		37		123		1,515
Mortgage banking activities		4,955		1,671		14,187		13,817
Bank card services and interchange fees		3,225		3,167		13,640		13,323
Gain on sale of subsidiary		—		—		—		33,778
Other		2,867		2,427		12,096		9,663
Total noninterest income		13,319		9,146		48,072		79,226
Noninterest expense:
Salaries and employee benefits		17,384		17,977		74,338		79,377
Net occupancy expense		3,901		3,856		16,105		16,102
Professional services		1,555		1,509		6,583		6,433
Marketing and development		1,153		880		3,782		3,453
Other		5,955		6,375		26,770		29,581
Total noninterest expense		29,948		30,597		127,578		134,946
Income before income taxes		20,719		13,111		63,292		79,417
Income tax expense		4,222		2,787		13,575		16,672
Net income	$	16,497	$	10,324	$	49,717	$	62,745

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

	As of
	December 31, 2024		December 31, 2023

Loans:
Commercial Real Estate	$	1,119,063	$	1,081,056
Commercial – Specialized		388,955		372,376
Commercial – General		557,371		517,361
Consumer:
1-4 Family Residential		566,400		534,731
Auto Loans		254,474		305,271
Other Consumer		64,936		74,168
Construction		103,855		129,190
Total loans held for investment	$	3,055,054	$	3,014,153

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

	As of
	December 31, 2024		December 31, 2023

Deposits:
Noninterest-bearing deposits	$	935,510	$	974,201
NOW & other transaction accounts		498,718		562,066
MMDA & other savings		1,741,988		1,722,170
Time deposits		444,660		367,716
Total deposits	$	3,620,876	$	3,626,153

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

	For the quarter ended
	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Pre-tax, pre-provision income
Net income	$	16,497	$	11,212	$	11,134	$	10,874	$	10,324
Income tax expense		4,222		3,094		3,116		3,143		2,787
Provision for credit losses		1,200		495		1,775		830		600
Pre-tax, pre-provision income	$	21,919	$	14,801	$	16,025	$	14,847	$	13,711

	As of
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Tangible common equity
Total common stockholders’ equity	$	438,949		$	443,122		$	417,985		$	408,712		$	407,114
Less: goodwill and other intangibles		(21,035	)		(21,197	)		(21,379	)		(21,562	)		(21,744	)

Tangible common equity	$	417,914		$	421,925		$	396,606		$	387,150		$	385,370

Tangible assets
Total assets	$	4,232,239		$	4,337,659		$	4,220,936		$	4,218,993		$	4,204,793
Less: goodwill and other intangibles		(21,035	)		(21,197	)		(21,379	)		(21,562	)		(21,744	)

Tangible assets	$	4,211,204		$	4,316,462		$	4,199,557		$	4,197,431		$	4,183,049

Shares outstanding		16,455,826			16,386,627			16,424,021			16,431,755			16,417,099

Total stockholders’ equity to total assets		10.37	%		10.22	%		9.90	%		9.69	%		9.68	%
Tangible common equity to tangible assets		9.92	%		9.77	%		9.44	%		9.22	%		9.21	%
Book value per share	$	26.67		$	27.04		$	25.45		$	24.87		$	24.80
Tangible book value per share	$	25.40		$	25.75		$	24.15		$	23.56		$	23.47

The MIL Network –

January 25, 2025

MIL-OSI Economics: [Galaxy Unpacked 2025] Galaxy Tech Forum ① Sustainability: Driving Innovation for a Sustainable Future

Source: Samsung

Samsung hosted the Galaxy Tech Forum on January 23 in San Jose, California. The panels provided an in-depth exploration of Samsung’s AI innovations and the challenges they address across four key areas — Sustainability, Health AI, Galaxy AI and Home AI. During the Sustainability session, experts explored how Samsung’s forward-thinking technology and strategic collaborations are building a more sustainable future.

Following Galaxy Unpacked 2025, Samsung Electronics held its Galaxy Tech Forum event on January 23 in San Jose, California. Tech leaders and experts from around the world discussed the future of AI at Blanco, an Urban Venue, a three-story space located in the heart of Silicon Valley that blends historic architecture with a modern white design.

▲ Blanco, an Urban Venue

The forum was organized into four sessions — Sustainability, Health AI, Galaxy AI and Home AI — each addressing the transformative changes and challenges innovation will bring to these areas. With around 100 media representatives and industry professionals in attendance, the panels centered on the disruptive potential of AI and offered blueprints for future technologies across various sectors.

Samsung Newsroom visited the first Galaxy Tech Forum session, titled “How Mobile Technology Can Accelerate a Sustainable Future,” to learn about Samsung’s mobile innovations and partnerships that are contributing to a brighter tomorrow.

Driving Mobile Innovation and Sustainability
Samsung is committed to accelerating a sustainable future for both people and the planet.

▲ (From left to right) Tamara Gondo, Michael Stewart, Dr. Stuart Sandin, Daniel Araujo and Cassie Smith

Despite the numerous benefits offered to modern society, the rapid growth of the mobile industry has also brought significant environmental challenges. To address those challenges, Samsung has made the actualization of a sustainable future a cornerstone of the company’s vision for mobile devices.

▲ Daniel Araujo from Samsung Electronics

“We’ve made significant progress in fostering sustainable practices throughout our product lifecycle and this is only possible through open collaboration with like-minded partners. And there is even more to come,” said Daniel Araujo, Head of Sustainability Management Office, Mobile eXperience Business at Samsung Electronics.

“Each device of the S25 series will include at least 50% recycled cobalt, and for the first time in Galaxy history, the battery of the S25 model will be made with recycled cobalt sourced from previously used Galaxy smartphones,” he continued, highlighting Samsung’s advancements in product circularity.

Leveraging Galaxy Camera Technology To Restore Vital Marine Ecosystems
Since the launch of the Galaxy S22 series in 2022, Samsung has incorporated over 150 tonnes of discarded fishing nets — equivalent to the weight of 15 million plastic water bottles — into Galaxy products. Along the way, the company has recognized the critical threat ocean-bound plastic poses to coral reefs and has taken a leading role in restoration efforts through strategic partnerships.

Dr. Stuart Sandin, a professor at the Scripps Institution of Oceanography, University of California San Diego said coral reefs are home to a quarter of all marine life, and over half a billion people depend on reefs for food, income and protection from storms and erosion. He added that with more than 50% of the world’s coral reefs already lost and ocean-bound plastic threatening the remaining marine ecosystems, new restoration methods using mobile technology are gaining traction.

▲ Dr. Stuart Sandin from the University of California San Diego, Scripps Institute of Oceanography

“We partnered with Samsung because of our shared commitment to innovation and collaboration. Our optimistic and technology-forward approach is contributing to new solutions for coral reef restoration,” said Michael Stewart, co-founder of Seatrees — a nonprofit dedicated to protecting marine ecosystems. His announcement of the organization’s partnership with Samsung was followed by a trailer for an upcoming documentary about the collaborative efforts between the companies.

▲ Michael Stewart from Seatrees

▲ Trailer for the documentary ‘Coral in Focus’

Araujo explained that to support Seatrees’ efforts, Samsung developed Ocean Mode1 — a new camera setting that optimizes underwater photography on the Galaxy S24 Ultra. He discussed how the feature will provide valuable visual data that can be used to 3D map coral reefs to aid efforts for their restoration. The panelists acknowledged that mobile technology is making environmental conservation more accessible since high-quality data can now be collected with lightweight, user-friendly smartphones.

Empowering Young Leaders Through Technology
“Beyond environmental efforts, Samsung has collaborated with the United Nations Development Programme (UNDP) to empower future generations in achieving the Global Goals,” explained moderator Cassie Smith, Senior Manager of Corporate Sustainability and U.S. Public Affairs at Samsung Electronics America. The success of Samsung’s five-year partnership with the UNDP led to the launch of the Samsung Global Goals app and Generation17 initiative.

▲ Cassie Smith from Samsung Electronics America

“Being part of Generation17 gave me confidence, access to resources and a global platform, which opened up a world of possibilities that inspired me to grow my business, Liberty Society, and its impact,” said Tamara Gondo, CEO of Liberty Society — a social enterprise that funds upskilling for marginalized women. “Participating in global events such as Mobile World Congress and the United Nations General Assembly gave me a seat at the decision-making table.”

▲ Tamara Gondo, CEO of Liberty Society and a Generation17 Young Leader

Araujo underscored Tamara’s remarks and stressed the importance of young leaders in achieving the Global Goals, encouraging ongoing efforts and inviting attendees to look forward to the new group of Young Leaders later this year.

The Sustainability session provided an in-depth exploration of how mobile technology can address environmental and social challenges. Samsung’s unwavering commitment to innovation and sustainability is paving the way for meaningful change on a global scale.

1 Exclusively developed for this project and only available to Seatrees and its partners.

MIL OSI Economics –

January 25, 2025

MIL-OSI United Kingdom: Tough restrictions for Sheffield hairdresser and baker who falsely claimed £98,000 in Covid loans

Source: United Kingdom – Executive Government & Departments

Bankrupt hairdresser claimed two separate loans totalling £98,000 for a new business which only traded for two weeks

Hannah Lucy Walker applied for two Covid Bounce Back Loans to claim a total of £98,000
She took the loans for a new business which was not entitled to any money under the scheme and gave false information in her applications
Walker is now subject to 12 years of sanctions which restrict her finance and business activities to protect the public from further harm

A bankrupt former hairdresser from Sheffield is subject to 12 years of stringent sanctions after the Official Receiver found she abused the Covid Bounce Back Loan scheme to claim almost £100,000 she was not entitled to.

Hannah Lucy Walker, 31, of Pollard Crescent in Sheffield, was originally a hairdresser.

But when Covid lockdowns were in operation during May 2020, she also began a baking business, trading as Something Sweet.

And on 25 June 2020, Walker applied for a £50,000 Bounce Back Loan for Something Sweet – which only ever traded for two weeks – declaring its turnover was £256,000.

The next day she applied to a different bank for another Bounce Back Loan of £48,000 for the baking business. This time she claimed the business had a turnover of £230,000.

Walker was made bankrupt in March 2024, with outstanding debts of around £109,000 including the full amount of both loans.

The Official Receiver, whose duty includes investigating the cause of a bankruptcy, found that Something Sweet had not been eligible to apply for a loan.

Samantha Crook, Deputy Official Receiver at the Insolvency Service, said:

Hannah Walker blatantly abused a scheme designed to support existing businesses during one of the toughest times the country faced.

She breached the rules of the scheme by taking out not one, but two loans, for a business that was not even eligible for a loan.

These restrictions will curtail her business activities for a long time to help protect the public from further financial harm.

Under the rules of the Bounce Back Loan scheme, businesses must have been trading by 1 March 2020 in order to apply for a loan.

The rules allowed applications for a single loan per business of up to 25% of its 2019 turnover – or of an estimated turnover if the business had started during the previous financial year – up to a maximum of £50,000. Any money claimed was to be used for the economic support of the business.

Walker’s baking business was not entitled to any money through the scheme. She did not apply for a loan to support her hairdressing business.

Walker signed a Bankruptcy Restrictions Undertaking in which she did not dispute that she had provided false information on two Bounce Back Loan applications to receive a total of £98,000 to which she was not entitled.

She must abide by the restrictions, which extend the terms of her original bankruptcy – usually a period of 12 months – for a further 12 years.

They prevent Walker from acting as a company director without permission from the court and from borrowing more than £500 without declaring that she is subject to the sanctions. She is also restricted from holding certain roles in public organisations while subject to the measures.

The Secretary of State for Business and Trade accepted the undertaking on 14 January 2025. The restrictions will run until 13 January 2037.

Further information

Hannah Lucy Walker is of Pollard Crescent, Sheffield. Her date of birth is 15 April 1993
Further guidance about Bankruptcy Restrictions Orders and Undertakings    
Details of BRO and BRU restrictions relating to individuals can be found on the Individual Insolvency Register

Published 24 January 2025

MIL OSI United Kingdom –

January 25, 2025

MIL-OSI United Kingdom: Patricia Rubin appointed as Trustee of The National Gallery

Source: United Kingdom – Executive Government & Departments

The Prime Minister has appointed Patricia Rubin as Trustee of The National Gallery for a 4 year term from 29 November 2024 to 28 November 2028

Patricia Rubin

Appointed from 29th November 2024 to 28th November 2028

Patricia Rubin is an art historian, professor, and administrator. In addition to her decades-long teaching career in London and New York, she has been Deputy Director of the Courtauld Institute of Art and founding Head of the Courtauld Institute Research Forum (2004-9), Director of the Institute of Fine Arts at New York University (2009-17), and Acting Director of Harvard University Center for Renaissance Studies/Villa I Tatti in Florence (1997). She is currently a Visiting Scholar at the Max-Planck-Gesellschaft/Kunsthistorisches Institut in Florence and an Honorary Research Fellow of the Courtauld Institute. Museum-based education and research have been fundamental to her work. She has been involved as co-curator, consultant, and catalogue contributor to numerous exhibitions and served on museum boards and committees at the Getty Museum, the Metropolitan Museum of Art, The Morgan Library and Museum, and the Galleria dell’Accademia of Venice.

She has written books on Giorgio Vasari’s Lives of the Artists and on art and society in Renaissance Florence (Giorgio Vasari: Art and History and Images and Identity in Fifteenth-century Florence), along with numerous essays and articles on related topics, including the co-authorship of the National Gallery exhibition catalogue Renaissance Florence: The Art of the 1470s. Her research interests range from altarpiece design to humbug and art history in the nineteenth century. She has recently written essays on Sandro Botticelli’s illustrations to Dante’s Divine Comedy, Anglo-American viewing of Leonardo da Vinci’s Last Supper, tomb sculptures by Michelangelo Buonarroti and Andrea del Verrocchio (“Michelangelo’s Monkey and the Melancholy of Death”), “‘Perverse Images’: Monstrous Beauty and Monkey Business in Italian Art from Botticelli to Bronzino,” and “Dangerous Liaisons: Compromising Positions and Provocative Allusions in Bronzino’s Martyrdom of St. Lawrence.”

Remuneration and Governance Code

Trustees of The National Gallery are not remunerated. This appointment has been made in accordance with the Cabinet Office’s Governance Code on Public Appointments. The appointments process is regulated by the Commissioner for Public Appointments. Under the Code, any significant political activity undertaken by an appointee in the last five years must be declared. This is defined as including holding office, public speaking, making a recordable donation, or candidature for election. Patricia Rubin has declared no significant political activity.

Published 24 January 2025

MIL OSI United Kingdom –

January 25, 2025

MIL-OSI Asia-Pac: Terms set for exhibition incentives

Source: Hong Kong Information Services

The Commerce & Economic Development Bureau today announced arrangements for the Incentive Scheme for Recurrent Exhibitions (ISRE) 2.0.

As stated in the 2024 Policy Address, the Government will allocate an additional provision of $500 million to implement the ISRE 2.0, in light of the convention and exhibition (C&E) industry’s strong support for the existing scheme.

The 2.0 edition will aim to attract more new and recurrent international exhibitions of large scale, with a view to boosting the vibrancy of the C&E industry in Hong Kong.

As with the existing scheme, the ISRE 2.0 will only subsidise venue rentals for eligible exhibitions organised by private organisers at specified venues.

Under the new arrangements, only international exhibitions attracting at least 1,500 non-local exhibitor and buyer participants will be covered. The maximum incentive for each eligible exhibition will be capped at $10 million.

Thirdly, the Central Harbourfront Event Space and relevant parts of the West Kowloon Cultural District will be designated as specified venues, alongside the Convention & Exhibition Centre and AsiaWorld-Expo, thereby offering organisers more venue options.

The ISRE 2.0 will be launched on July 1 this year subject to funding approval by the Legislative Council’s, while the existing edition will terminate on the same day.

Application guidelines for the ISRE 2.0 will be announced in due course.

Eligible exhibitions which will begin on or before June 30 this year should apply for incentives under the existing ISRE.

MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI: Lakeland Financial Reports Annual Net Income of $93.5 million, Organic Average Loan Growth of 5% and Average Deposit Growth of 4%

Source: GlobeNewswire (MIL-OSI)

WARSAW, Ind., Jan. 24, 2025 (GLOBE NEWSWIRE) — Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported net income of $93.5 million for the year ended December 31, 2024, versus $93.8 million for the year ended December 31, 2023. Diluted earnings per share were $3.63 for the twelve months ended December 31, 2024, versus $3.65 for 2023.

Net income was $24.2 million for the three months ended December 31, 2024, a decrease of $5.4 million, or 18%, compared with net income of $29.6 million for the three months ended December 31, 2023. Diluted earnings per share of $0.94 for the fourth quarter of 2024 decreased by 19% from $1.16 for the fourth quarter of 2023. On a linked quarter basis, net income increased 4%, or $852,000, from third quarter 2024 net income of $23.3 million. Linked quarter diluted earnings per share improved by 3% from $0.91 for the third quarter of 2024.

Pretax pre-provision earnings, which is a non-GAAP measure, were $128.4 million for the twelve months ended December 31, 2024, an increase of $12.3 million, or 11%, compared to $116.2 million for the twelve months ended December 31, 2023. Pretax pre-provision earnings were $32.9 million for the three months ended December 31, 2024, a decrease of $3.4 million, or 9%, compared to $36.4 million for the three months ended December 31, 2023. Pretax pre-provision earnings increased by $2.1 million, or 7%, compared to $30.8 million on a linked quarter basis.

“2024 continued a long and consistent trend of organic growth in our balance sheet. We successfully expanded both our loan and deposit franchises during the year,” stated David M. Findlay, Chairman and CEO. “We are particularly pleased with the 9-basis point expansion of our net interest margin on a linked quarter basis as we effectively managed the balance sheet throughout the year.”

Quarterly Financial Performance

Fourth Quarter 2024 versus Fourth Quarter 2023 highlights:

Tangible book value per share grew by $1.25, or 5%, to $26.47
Total risk-based capital ratio improved to 15.90%, compared to 15.47%
Tangible capital ratio improved to 10.19%, compared to 9.91%
Average loans grew by $206.9 million, or 4%, to $5.09 billion
Core deposit growth of $274.3 million, or 5%, to $5.9 billion
Average equity increased by $121.1 million, or 21%
Return on average equity of 13.87%, compared to 20.52%
Return on average assets of 1.42%, compared to 1.80%
Net interest margin improved to 3.25% versus 3.23%
Net interest income increased by $3.1 million, or 6%
Noninterest expense increased by $1.2 million, or 4%
Provision expense of $3.7 million, compared to $300,000
Net charge offs of $1.4 million versus $433,000
Watch list loans as a percentage of total loans increased to 4.13% from 3.72%

Fourth Quarter 2024 versus Third Quarter 2024 highlights:

Total risk-based capital ratio improved to 15.90% from 15.75%
Average equity growth of $23.6 million, or 4%
Average loans grew by $22.3 million, or less than 1%, to $5.09 billion
Core deposits increased by $118.6 million, or 2%, to $5.8 billion
Net interest margin improved 9 basis points to 3.25% versus 3.16%
Return on average equity of 13.87%, compared to 13.85%
Return on average assets of 1.42%, compared to 1.39%
Noninterest income decreased by $41,000, or less than 1%
Noninterest expense increased by $260,000, or 1%
Provision expense of $3.7 million, compared to $3.1 million
Individually analyzed and watch list loans declined by $56.4 million, or 21%
Watch list loans as a percentage of total loans improved to 4.13% from 5.27%

Capital Strength

The company’s total capital as a percentage of risk-weighted assets improved to 15.90% at December 31, 2024, compared to 15.47% at December 31, 2023 and 15.75% at September 30, 2024. These capital levels significantly exceeded the 10.00% regulatory threshold required to be characterized as “well capitalized” and reflect the company’s robust capital base.

The company’s tangible common equity to tangible assets ratio, which is a non-GAAP financial measure, improved to 10.19% at December 31, 2024, compared to 9.91% at December 31, 2023. The tangible common equity ratio contracted from 10.47% at September 30, 2024. Unrealized losses from available-for-sale investment securities were $191.1 million at December 31, 2024, compared to $174.6 million at December 31, 2023 and $154.5 million at September 30, 2024. Excluding the impact of accumulated other comprehensive income (loss) on tangible common equity and tangible assets, the company’s ratio of adjusted tangible common equity to adjusted tangible assets, a non-GAAP financial measure, improved to 12.37% at December 31, 2024, compared to 11.99% at December 31, 2023 and 12.29% at September 30, 2024.

As announced on January 14, 2025, the board of directors approved a cash dividend for the fourth quarter of $0.50 per share, payable on February 5, 2025, to shareholders of record as of January 25, 2025. The fourth quarter dividend per share represents a 4% increase from the $0.48 dividend per share paid for the fourth quarter of 2023.

“The continued growth in our capital base supports the increase in our dividend rate paid to shareholders and contributes to the growth in total return for shareholders. The compounded annual growth rate for our dividend is 15% since 2012,” stated Kristin L. Pruitt, President.

Loan Portfolio

Average total loans for the twelve months ended December 31, 2024 were $5.04 billion, an increase of $225.7 million, or 5%, from $4.81 billion for the twelve months ended December 31, 2023. Average total loans of $5.09 billion in the fourth quarter of 2024, increased $206.9 million, or 4%, from $4.88 billion for the fourth quarter of 2023, and increased $22.3 million, or less than 1%, from $5.06 billion for the third quarter of 2024.

“Loan growth in 2024 benefited from healthy increases in both our commercial and consumer lending activities,” noted Findlay. “We were pleased to report 8% growth in consumer loans, 6% growth in CRE and multi-family loans, and 2% growth in commercial and industrial loans for 2024. Our Indiana markets continue to benefit from expanding economic activity stimulated by the pro-business operating environment. We continue to be focused on active business development efforts in every market and we are looking forward to continued organic growth in 2025.”

Total loans, net of deferred loan fees, increased by $200.6 million, or 4%, from $4.92 billion as of December 31, 2023 to $5.12 billion as of December 31, 2024. The increase in loans occurred across much of the portfolio with our commercial real estate and multi-family residential loan portfolio growing by $155.0 million, or 6%, our commercial and industrial loan portfolio growing by $30.1 million, or 2%, and our consumer 1-4 family mortgage loans portfolio growing by $34.0 million, or 7%. These increases were offset by a decrease to other commercial loans of $25.1 million, or 21%. On a linked quarter basis, total loans, net of deferred loan fees, increased by $35.7 million, or 1%, from $5.08 billion at September 30, 2024. The linked quarter increase was primarily a result of growth in total commercial real estate and multi-family residential loans of $42.7 million, or 2%, and growth in total agri-business and agricultural loans of $29.0 million, or 8%. Offsetting these increases was a decrease in total commercial and industrial loans of $42.0 million, or 3%.

Commercial loan originations for the fourth quarter included approximately $390.0 million in loan originations, offset by approximately $359.0 million in commercial loan pay downs. Line of credit usage increased to 41% as of December 31, 2024, compared to 39% at December 31, 2023 and was unchanged from 41% as of September 30, 2024. Total available lines of credit contracted by $238.0 million, or 5%, as compared to a year ago, and line usage decreased by $2.0 million, or less than 1%, over that period. The company has limited exposure to commercial office space borrowers, all of which are in the bank’s Indiana markets. Loans totaling $101.7 million for this sector represented 2% of total loans at December 31, 2024, a decrease of $899,000, or 1%, from September 30, 2024. Commercial real estate loans secured by multi-family residential properties and secured by non-farm non-residential properties were approximately 213% of total risk-based capital at December 31, 2024.

Diversified Deposit Base

The bank’s diversified deposit base has grown on a year over year basis and on a linked quarter basis.


DEPOSIT DETAIL (unaudited, in thousands)

	December 31, 2024				September 30, 2024				December 31, 2023
Retail	$	1,780,726	30.2	%	$	1,709,899	29.3	%	$	1,794,958	31.4	%
Commercial		2,269,049	38.4			2,304,041	39.5			2,227,147	38.9
Public funds		1,809,631	30.7			1,726,869	29.6			1,563,015	27.3
Core deposits		5,859,406	99.3			5,740,809	98.4			5,585,120	97.6
Brokered deposits		41,560	0.7			96,504	1.6			135,405	2.4
Total	$	5,900,966	100.0	%	$	5,837,313	100.0	%	$	5,720,525	100.0	%

Total deposits increased $180.4 million, or 3%, from $5.72 billion as of December 31, 2023 to $5.90 billion as of December 31, 2024. The increase in total deposits was driven by an increase in core deposits (which excludes brokered deposits) of $274.3 million, or 5%. Total core deposits at December 31, 2024 were $5.86 billion and represented 99% of total deposits, as compared to $5.59 billion and 98% of total deposits at December 31, 2023. Brokered deposits were $41.6 million, or 1% of total deposits, at December 31, 2024, compared to $135.4 million, or 2% of total deposits, at December 31, 2023.

The increase in core deposits since December 31, 2023 reflects growth in commercial deposits and public funds deposits. Public funds deposits grew annually by $246.6 million, or 16%, to $1.81 billion. Commercial deposits grew annually by $41.9 million, or 2%, to $2.27 billion. Retail deposits contracted annually by $14.2 million, or 1%, to $1.78 billion. The increase in public funds deposits drove the change in the composition of core deposits as public funds deposits as a percentage of total deposits increased to 31%, from 27%. Commercial and retail deposits as a percentage of total deposits contracted to 38%, from 39%, and to 30%, from 31%, respectively. Growth in public funds was positively impacted by the addition of a new public funds customers in the Lake City Bank footprint which included the addition of their operating accounts.

On a linked quarter basis, total deposits increased $63.7 million, or 1%, from $5.84 billion at September 30, 2024 to $5.90 billion at December 31, 2024. Core deposits increased by $118.6 million, or 2%, while brokered deposits decreased by $54.9 million, or 57%. Linked quarter growth in core deposits resulted primarily from an increase in public funds deposits of $82.8 million, or 5%, and growth in retail deposits of $70.8 million, or 4%. Offsetting these increases was a decrease in commercial deposits of $35.0 million, or 2%.

“Core deposit growth was steady throughout 2024 and accounts for 99% of the funding sources for Lake City Bank,” commented Findlay. “We are pleased that our growth in core deposits came from every region of the bank. We continue to successfully fund the loan growth with in-market stable and diversified deposit growth. We continue to gain market share in our more mature Northern Indiana markets and implemented strategies to enhance growth in the Indianapolis market through data-driven marketing and business development efforts.”

Average total deposits were $6.01 billion for the fourth quarter of 2024, an increase of $208.5 million, or 4%, from $5.80 billion for the fourth quarter of 2023. Average interest-bearing deposits drove the increase in average total deposits and increased by $301.1 million, or 7%. Contributing to the overall growth of interest-bearing deposits was an increase to average interest-bearing checking accounts of $431.9 million, or 14%. Offsetting this increase was a reduction in average time deposits of $98.9 million, or 9%, and a decrease to average savings deposits of $31.9 million, or 10%. Average noninterest-bearing demand deposits decreased by $92.5 million, or 7%.

On a linked quarter basis, average total deposits increased by $130.9 million, or 2%, from $5.88 billion for the third quarter of 2024 to $6.01 billion for the fourth quarter of 2024. Average interest-bearing deposits drove the increase to total average deposits, which increased by $93.2 million, or 2%. An increase to interest bearing checking accounts of $209.6 million, or 6%, drove the increase to average interest-bearing deposits on a linked quarter basis. Offsetting this increase was a decrease to total average time deposits of $111.1 million, or 10%. Average noninterest-bearing demand deposits increased by $37.7 million, or 3%.

Checking account trends as of December 31, 2024 compared to December 31, 2023, include growth of $310.5 million, or 24%, in aggregate public fund checking account balances, growth of $24.5 million, or 1%, in aggregate commercial checking account balances, and expansion of $34.4 million, or 4%, in aggregate retail checking account balances. The number of accounts has also grown for all three segments, with growth of 7% for public funds accounts, 2% for commercial accounts and 1% for retail accounts during 2024.

Deposits not covered by FDIC deposit insurance as a percentage of total deposits were 62% as of December 31, 2024, compared to 61% at September 30, 2024, and 57% at December 31, 2023, reflecting the growth in public fund deposits over the period. Deposits not covered by FDIC deposit insurance or the Indiana Public Deposit Insurance Fund (which insures public funds deposits in Indiana), were 32% of total deposits as of December 31, 2024, compared to 32% at September 30, 2024, and 31% as of December 31, 2023. As of December 31, 2024, 98% of deposit accounts had deposit balances less than $250,000.

Net Interest Margin

Net interest margin was 3.25% for the fourth quarter of 2024, representing a 2 basis point increase from 3.23% for the fourth quarter of 2023. Earning assets yields decreased by 15 basis points to 5.81% for the fourth quarter of 2024 from 5.96% for the fourth quarter of 2023. The decrease in earning asset yields was offset by a decrease in the company’s funding costs of 17 basis points as interest expense as a percentage of average earning assets decreased to 2.56% for the fourth quarter of 2024, compared to 2.73% for the fourth quarter of 2023.

Linked quarter net interest margin expanded by 9 basis point to 3.25% for the fourth quarter of 2024, compared to 3.16% for the third quarter of 2024. Average earning asset yields decreased by 23 basis points from 6.04% during the third quarter of 2024 to 5.81% during the fourth quarter of 2024 and were offset by a 32 basis point decrease in interest expense as a percentage of average earning assets from 2.88% to 2.56%. The cumulative 100 basis point decline in the Federal Funds Rate during 2024, drove the reduction in funding costs that provided for the net interest margin expansion through deposit repricing. Notably, the deposit mix shift from noninterest bearing deposits to interest bearing deposits experienced by the company during the monetary tightening cycle of March 2022 through September 2024 has stabilized with noninterest bearing deposits representing 22% of total deposits at December 31, 2024, compared to 24% at December 31, 2023 and 22% at September 30, 2024.

“Our thoughtful and strategic balance sheet management strategies led to healthy net interest margin expansion of 9 basis points during the fourth quarter,” noted Lisa M. O’Neill, Executive Vice-President and Chief Financial Officer. “Net interest margin expansion resulted from reduced deposit costs that outpaced loan repricing due to falling short term rates. Our public fund balances are largely tied to the effective federal funds rate, and we also continue to benefit from fixed rate loan repricing to the higher interest rate environment.”

The loan beta for the current rate-easing cycle is 25% compared to the deposit beta of 31%. The cumulative loan beta, which measures the sensitivity of a bank’s average loan yield to changes in short-term interest rates, was 56% for the recent rate-tightening cycle. The cumulative deposit beta, which measures the sensitivity of a bank’s deposit cost to changes in short-term interest rates, was 54% for the recent rate-tightening cycle.

Liquidity Overview

The bank has robust liquidity resources. These resources include secured borrowings available from the Federal Home Loan Bank and the Federal Reserve Bank Discount Window. In addition, the bank has unsecured borrowing capacity through long established relationships within the brokered deposits markets, federal funds lines from correspondent bank partners, and Insured Cash Sweep (ICS) one-way buy funds available from the Intrafi network. As of December 31, 2024, the company had access to an aggregate of $3.7 billion in liquidity from these sources, compared to $3.4 billion at December 31, 2023 and $3.7 billion at September 30, 2024. Utilization from these sources totaled $41.6 million at December 31, 2024, compared to $185.4 million at December 31, 2023 and $96.5 million at September 30, 2024. Core deposits have historically represented, and currently represent, the primary funding resource of the bank at 99% of total deposits and purchased funds.

Investment Portfolio Overview

Total investment securities were $1.12 billion at December 31, 2024, reflecting a decrease of $58.7 million, or 5%, as compared to $1.18 billion at December 31, 2023. On a linked quarter basis, investment securities decreased $24.8 million, or 2%, due primarily to a decline in the fair market value of available-for-sale securities of $36.6 million, portfolio cash flows of $15.1 million and partially offset by investment security purchases of $30 million. Investment securities represented 17% of total assets on December 31, 2024, compared to 18% at December 31, 2023 and 17% at September 30, 2024. The ratio of investment securities as a percentage of total assets remains elevated over historical levels of approximately 12% to 14%. The company expects the investment securities portfolio as a percentage of assets to continue to decrease over time as the proceeds from pay downs, sales and maturities are used to fund loan growth and for general liquidity purposes. Tax equivalent adjusted effective duration for the investment portfolio was 6.0 years at December 31, 2024, compared to 6.5 years and 6.3 years at December 31, 2023 and September 30, 2024, respectively. Tax equivalent adjusted effective duration of the investment portfolio remains elevated as compared to 4.0 years at December 31, 2019 prior to the deployment of excess liquidity to the investment portfolio and the impact of the higher interest rate environment. The company anticipates receiving principal and interest cash flows of approximately $104.2 million during 2025 from the investment securities portfolio and plans to use that liquidity to fund loan growth and to fund new investment securities purchases.

Net interest income decreased by $356,000, or less than 1%, for the twelve months ended December 31, 2024, as compared to the twelve months ended December 31, 2023. Deposit interest expense increased by $35.0 million. Offsetting the increase in deposit interest expense was an increase in loan interest income of $29.8 million and a reduction in borrowings interest expense of $4.7 million. Net interest income was $51.7 million for the fourth quarter of 2024, representing an increase of $3.1 million, or 6%, as compared to the fourth quarter of 2023. Net interest income for the fourth quarter of 2024 benefited from an increase in loan interest income of $1.9 million and a reduction in interest expense of $667,000 compared to the prior year quarter. On a linked quarter basis, net interest income increased $2.4 million, or 5%, from $49.3 million for the third quarter of 2024. On a linked quarter basis, the increase to net interest income was driven by a $4.1 million reduction in interest expense and a $1.1 million increase in income from short-term investments. Offsetting the reduction in interest expense was a reduction in loan interest income of $2.9 million.

On a full year basis, revenue increased by $6.6 million, or 3%, to $253.5 million as compared to $246.9 million for 2023. Revenue was $63.6 million for the fourth quarter 2024 representing a decrease of $ 2.2 million or 3%, as compared to the fourth quarter of 2023. On a linked quarter basis, revenue increased by $2.4 million, or 4% from $61.2 million in the third quarter of 2024.

Asset Quality

Provision expense was $16.8 million for the year ended December 31, 2024, an increase of $10.9 million, or 186%, as compared to $5.9 million during 2023. The elevated provision recorded during 2024 as compared to the prior year was primarily driven by an increase in specific allocations from the downgrade of a $43.3 million credit to an industrial company in Northern Indiana. The relationship was placed on nonperforming status in conjunction with the downgrade, which occurred during the second quarter of 2024. Additional specific allocations of $5.5 million were reserved for this credit during the fourth quarter of 2024. The company recorded a provision expense of $3.7 million in the fourth quarter of 2024, compared to provision expense of $300,000 in the fourth quarter of 2023. On a linked quarter basis, provision expense increased by $632,000 from $3.1 million for the third quarter of 2024, or 21%.

The allowance for credit loss reserve to total loans was 1.68% at December 31, 2024, up from 1.46% at December 31, 2023, and 1.65% at September 30, 2024. Net charge offs were $2.8 million for the full year 2024 compared to $6.5 million for 2023. Net charge offs to total loans were 0.05% for 2024 compared to 0.13% for 2023. Net charge offs in the fourth quarter of 2024 were $1.4 million compared to $433,000 in the fourth quarter of 2023 and $143,000 during the linked third quarter of 2024. Annualized net charge offs to average loans were 0.11% for the fourth quarter of 2024, compared to 0.04% for the fourth quarter of 2023, and 0.01% for the linked third quarter of 2024.

Nonperforming assets increased $40.8 million, or 253%, to $56.9 million as of December 31, 2024, versus $16.1 million as of December 31, 2023. On a linked quarter basis, nonperforming assets decreased $1.2 million, or 2%, compared to $58.1 million as of September 30, 2024. The ratio of nonperforming assets to total assets at December 31, 2024 increased to 0.85% from 0.25% at December 31, 2023 and decreased from 0.87% at September 30, 2024. The full-year increase in nonperforming assets was primarily driven by the industrial borrower relationship referenced above.

Total individually analyzed and watch list loans increased by $28.1 million, or 15%, to $211.1 million as of December 31, 2024, versus $183.1 million as of December 31, 2023. On a linked quarter basis, total individually analyzed and watch list loans decreased by $56.4 million, or 21%, from $267.6 million at September 30, 2024. Watch list loans as a percentage of total loans increased by 41 basis points to 4.13% at December 31, 2024, compared to 3.72% at December 31, 2023, and decreased by 114 basis points from 5.27% at September 30, 2024. The linked quarter decrease in total individually analyzed and watch list loans was primarily driven by the removal of six relationships from the watch list with an aggregate balance of $63.7 million, offset by the addition of four downgraded credits with an aggregated balance of $8.4 million. Approximately $45.5 million of the watch list removals were attributable to credit upgrades, with the remaining $18.2 million in removals attributable to payoffs.

“We are encouraged by the $56 million decrease in watch list credits during the quarter and are cautiously optimistic following our fourth quarter, semi-annual portfolio reviews meetings during which we review every commercial banker’s portfolio,” stated Findlay. “Economic conditions in all of our markets remain stable and we continue to actively manage our loan portfolio challenges.”

Noninterest Income

Noninterest income increased by $7.0 million, or 14%, to $56.8 million for the twelve months ended December 31, 2024, compared to $49.9 million for the prior year. The increase in noninterest income for the twelve months ended December 31, 2024 was primarily driven by the net gain on sale of Visa shares of $9.0 million. Contributing further to the increase in noninterest income was an increase to wealth and advisory fees of $1.4 million, or 15%, driven by growth in customers and favorable market performance. Bank owned life insurance income increased $1.1 million, or 34%, due to favorable market performance of the company’s variable bank owned life insurance policies. Offsetting these increases was a $4.5 million, or 49%, decrease to other income. Other income was elevated during the twelve months ended December 31, 2023 from insurance and loss recoveries of $6.3 million that were related to the 2023 wire fraud loss. Offsetting the impact of these recoveries was increased investment income from the company’s limited partnership investments and the receipt of an additional $1.0 million in recoveries from the wire fraud loss. Adjusted core noninterest income, a non-GAAP financial measure that excludes the effects of certain non-routine operating events, was $46.8 million for the twelve months ended December 31, 2024, an increase of $3.3 million, or 8%, compared to $43.6 million for twelve months ended December 31, 2023.

Findlay added, “It is very gratifying to report strong growth in core noninterest income for 2024. Our fee-based lines of business made significant contributions to revenue growth during the year. Notably, Wealth Advisory fees grew by 15% and treasury management fees grew by 5%. As we move into 2025, our teams continue to be focused on driving continued growth in these business lines.”

The company’s noninterest income decreased $5.3 million, or 31%, to $11.9 million for the fourth quarter of 2024, compared to $17.2 million for the fourth quarter of 2023. Wealth advisory fees increased $388,000, or 17%, and bank owned life insurance increased $476,000, or 64%. Other income decreased $6.5 million, or 89%. Other income was elevated during the fourth quarter of 2023 primarily due to insurance and loss recoveries of $6.3 million related to the wire fraud loss. Adjusted core noninterest income was $11.9 million for the fourth quarter of 2024, an increase of $968,000, or 9%, compared to $10.9 million for the fourth quarter of 2023.

On a linked quarter basis, noninterest income for the fourth quarter of 2024 decreased by $41,000, or less than 1%, from $11.9 million during the third quarter of 2024. The linked quarter decrease was driven by a decrease to other income of $261,000, or 25%, and was offset by an increase to bank owned life insurance income $148,000, or 14%.

Noninterest Expense

Noninterest expense decreased by $5.6 million, or 4%, from $130.7 million to $125.1 million for the twelve months ended December 31, 2023 and 2024, respectively. Noninterest expense during 2023 was elevated as compared to 2024 due to the wire fraud loss, which added a net $16.7 million to noninterest expense. Offsetting this impact on noninterest expense was a $7.6 million, or 13%, increase in salaries and employees benefits during the full year 2024. The increase to salaries and benefits expense resulted primarily from increases to salaries and wages of $3.2 million, performance-based incentive compensation of $2.3 million, health insurance expense of $918,000, and variable deferred compensation of $950,000, which relates to the company’s variable bank owned life insurance. Other expense increased $2.6 million, or 24%, primarily due to an accrued legal expense of $4.5 million. Data processing fees and supplies increased by $1.2 million, or 8%, from the continued investment in customer-facing and operational technology solutions. Adjusted core noninterest expense, a non-GAAP financial measure that excludes the effects of certain non-routine operating events, was $120.5 million for the twelve months ended December 31, 2024, an increase of $6.5 million, or 6%, compared to $114.0 million for the twelve months ended December 31, 2023.

Noninterest expense increased $1.2 million, or 4%, to $30.7 million for the fourth quarter of 2024, compared to $29.4 million during the fourth quarter of 2023. Driving the fourth quarter 2024 increase to noninterest expense was an increase to salaries and benefits expense of $1.5 million, or 10%, which was primarily attributable to increased salary expense of $825,000, deferred compensation of $414,000 and increased health insurance of $222,000. Other expense decreased by $595,000, or 20%, from lower legal accruals. Adjusted core noninterest expense increased by $1.7 million, or 6%, from $29.0 million during the fourth quarter of 2023.

On a linked quarter basis, noninterest expense increased by $260,000, or 1%, from $30.4 million during the third quarter of 2024. Driving the increase in noninterest expense was an increase in salaries and employee benefits of $785,000, or 5% primarily due to performance-based incentive compensation. Corporate and business development expense decreased by $419,000, or 31%, which was driven by a reduction in advertising expense during the quarter. Other expense decreased by $132,000, or 5%.

The company’s efficiency ratio for the twelve months ended December 31, 2024 was 49.3% compared to 52.9% for the twelve months ended December 31, 2023. The company’s adjusted core efficiency ratio, a non-GAAP financial measure that excludes the impact of certain non-routine operating events, was 49.5% for the twelve months ended December 31, 2024 as compared to 47.4% for the twelve months ended December 31, 2023.

The company’s efficiency ratio was 48.2% for the fourth quarter of 2024, compared to 44.7% for the fourth quarter of 2023 and 49.7% for the linked third quarter of 2024. The company’s adjusted core efficiency ratio was 48.7% for the fourth quarter of 2023 and unchanged when compared to the company’s efficiency ratio for the third and fourth quarters of 2024.

Information regarding Lakeland Financial Corporation may be accessed on the home page of its subsidiary, Lake City Bank, at lakecitybank.com. The company’s common stock is traded on the Nasdaq Global Select Market under “LKFN.” Lake City Bank, a $6.7 billion bank headquartered in Warsaw, Indiana, was founded in 1872 and serves Central and Northern Indiana communities with 54 branch offices and a robust digital banking platform. Lake City Bank’s community banking model prioritizes building in-market long-term customer relationships while delivering technology-forward solutions for retail and commercial clients.

This document contains, and future oral and written statements of the company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “continue,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. The company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain and, accordingly, the reader is cautioned not to place undue reliance on any forward-looking statements made by the company. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the company undertakes no obligation to update any statement in light of new information or future events. Numerous factors could cause the company’s actual results to differ from those reflected in forward-looking statements, including the effects of economic, business and market conditions and changes, particularly in our Indiana market area, including prevailing interest rates and the rate of inflation; governmental monetary and fiscal policies; the risks of changes in interest rates on the levels, composition and costs of deposits, loan demand and the values and liquidity of loan collateral, securities and other interest sensitive assets and liabilities; and changes in borrowers’ credit risks and payment behaviors, as well as those identified in the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.


LAKELAND FINANCIAL CORPORATION FOURTH QUARTER 2024 FINANCIAL HIGHLIGHTS

	Three Months Ended									Twelve Months Ended
(Unaudited – Dollars in thousands, except per share data)	December 31,			September 30,			December 31,			December 31,			December 31,
END OF PERIOD BALANCES	2024			2024			2023			2024			2023
Assets	$	6,678,374		$	6,645,371		$	6,524,029		$	6,678,374		$	6,524,029
Investments		1,122,994			1,147,806			1,181,646			1,122,994			1,181,646
Loans		5,117,948			5,081,990			4,916,534			5,117,948			4,916,534
Allowance for Credit Losses		85,960			83,627			71,972			85,960			71,972
Deposits		5,900,966			5,837,313			5,720,525			5,900,966			5,720,525
Brokered Deposits		41,560			96,504			135,405			41,560			135,405
Core Deposits (1)		5,859,406			5,740,809			5,585,120			5,859,406			5,585,120
Total Equity		683,911			699,181			649,793			683,911			649,793
Goodwill Net of Deferred Tax Assets		3,803			3,803			3,803			3,803			3,803
Tangible Common Equity (2)		680,108			695,378			645,990			680,108			645,990
Adjusted Tangible Common Equity (2)		846,040			832,813			800,450			846,040			800,450
AVERAGE BALANCES
Total Assets	$	6,795,596		$	6,656,464		$	6,514,430		$	6,662,718		$	6,464,980
Earning Assets		6,470,920			6,329,287			6,145,937			6,328,498			6,114,225
Investments		1,134,011			1,128,705			1,107,862			1,134,979			1,184,659
Loans		5,086,614			5,064,348			4,879,695			5,039,406			4,813,678
Total Deposits		6,011,122			5,880,177			5,802,592			5,836,025			5,604,228
Interest Bearing Deposits		4,729,201			4,635,993			4,428,140			4,578,219			4,128,922
Interest Bearing Liabilities		4,729,206			4,649,745			4,441,425			4,644,553			4,295,743
Total Equity		693,744			670,160			572,653			662,087			588,667
INCOME STATEMENT DATA
Net Interest Income	$	51,694		$	49,273		$	48,599		$	196,679		$	197,035
Net Interest Income-Fully Tax Equivalent		52,804			50,383			49,914			201,363			202,347
Provision for Credit Losses		3,691			3,059			300			16,750			5,850
Noninterest Income		11,876			11,917			17,208			56,844			49,858
Noninterest Expense		30,653			30,393			29,445			125,084			130,710
Net Income		24,190			23,338			29,626			93,478			93,767
Pretax Pre-Provision Earnings (2)		32,917			30,797			36,362			128,439			116,183
PER SHARE DATA
Basic Net Income Per Common Share	$	0.94		$	0.91		$	1.16		$	3.64		$	3.67
Diluted Net Income Per Common Share		0.94			0.91			1.16			3.63			3.65
Cash Dividends Declared Per Common Share		0.48			0.48			0.46			1.92			1.84
Dividend Payout		51.06	%		52.75	%		39.66	%		52.89	%		50.41	%
Book Value Per Common Share (equity per share issued)	$	26.62		$	27.22		$	25.37		$	26.62		$	25.37
Tangible Book Value Per Common Share (2)		26.47			27.07			25.22			26.47			25.22
Market Value – High	$	78.61		$	72.25		$	67.88		$	78.61		$	77.07
Market Value – Low		61.10			57.45			45.59			57.45			43.05


	Three Months Ended									Twelve Months Ended
(Unaudited – Dollars in thousands, except per share data)	December 31,			September 30,			December 31,			December 31,			December 31,
PER SHARE DATA (continued)	2024			2024			2023			2024			2023
Basic Weighted Average Common Shares Outstanding		25,686,276			25,684,407			25,614,420			25,676,543			25,604,751
Diluted Weighted Average Common Shares Outstanding		25,792,460			25,767,739			25,732,870			25,769,018			25,723,165
KEY RATIOS
Return on Average Assets		1.42	%		1.39	%		1.80	%		1.40	%		1.45	%
Return on Average Total Equity		13.87			13.85			20.52			14.12			15.93
Average Equity to Average Assets		10.21			10.07			8.79			9.94			9.11
Net Interest Margin		3.25			3.16			3.23			3.18			3.31
Efficiency (Noninterest Expense/Net Interest Income plus Noninterest Income)		48.22			49.67			44.74			49.34			52.94
Loans to Deposits		86.73			87.06			85.95			86.73			85.95
Investment Securities to Total Assets		16.82			17.27			18.11			16.82			18.11
Tier 1 Leverage (3)		12.15			12.18			11.82			12.15			11.82
Tier 1 Risk-Based Capital (3)		14.64			14.50			14.21			14.64			14.21
Common Equity Tier 1 (CET1) (3)		14.64			14.50			14.21			14.64			14.21
Total Capital (3)		15.90			15.75			15.47			15.90			15.47
Tangible Capital (2)		10.19			10.47			9.91			10.19			9.91
Adjusted Tangible Capital (2)		12.37			12.29			11.99			12.37			11.99
ASSET QUALITY
Loans Past Due 30 – 89 Days	$	4,273		$	829		$	3,360		$	4,273		$	3,360
Loans Past Due 90 Days or More		28			95			27			28			27
Nonaccrual Loans		56,431			57,551			15,687			56,431			15,687
Nonperforming Loans		56,459			57,646			15,714			56,459			15,714
Other Real Estate Owned		284			384			384			284			384
Other Nonperforming Assets		143			21			8			143			8
Total Nonperforming Assets		56,886			58,051			16,106			56,886			16,106
Individually Analyzed Loans		78,647			77,654			16,124			78,647			16,124
Non-Individually Analyzed Watch List Loans		132,499			189,918			166,961			132,499			166,961
Total Individually Analyzed and Watch List Loans		211,146			267,572			183,085			211,146			183,085
Gross Charge Offs		1,657			231			566			3,468			7,332
Recoveries		299			88			133			706			848
Net Charge Offs/(Recoveries)		1,358			143			433			2,762			6,484
Net Charge Offs/(Recoveries) to Average Loans		0.11	%		0.01	%		0.04	%		0.05	%		0.13	%
Credit Loss Reserve to Loans		1.68			1.65			1.46			1.68			1.46
Credit Loss Reserve to Nonperforming Loans		152.25			145.07			458.01			152.25			458.01
Nonperforming Loans to Loans		1.10			1.13			0.32			1.10			0.32
Nonperforming Assets to Assets		0.85			0.87			0.25			0.85			0.25
Total Individually Analyzed and Watch List Loans to Total Loans		4.13	%		5.27	%		3.72	%		4.13	%		3.72	%


	Three Months Ended									Twelve Months Ended
(Unaudited – Dollars in thousands, except per share data)	December 31,			September 30,			December 31,			December 31,			December 31,
PER SHARE DATA (continued)	2024			2024			2023			2024			2023
OTHER DATA
Full Time Equivalent Employees		643			639			619			643			619
Offices		54			54			53			54			53

________________________________________________________________
(1)  Core deposits equals deposits less brokered deposits.
(2)  Non-GAAP financial measure – see “Reconciliation of Non-GAAP Financial Measures”.
(3)  Capital ratios for December 31, 2024 are preliminary until the Call Report is filed.


CONSOLIDATED BALANCE SHEETS (in thousands, except share data)

	December 31, 2024			December 31, 2023
	(Unaudited)
ASSETS
Cash and due from banks	$	71,733		$	70,451
Short-term investments		96,472			81,373
Total cash and cash equivalents		168,205			151,824

Securities available-for-sale, at fair value		991,426			1,051,728
Securities held-to-maturity, at amortized cost (fair value of $113,107 and $119,215, respectively)		131,568			129,918
Real estate mortgage loans held-for-sale		1,700			1,158

Loans, net of allowance for credit losses of $85,960 and $71,972		5,031,988			4,844,562

Land, premises and equipment, net		60,489			57,899
Bank owned life insurance		113,320			109,114
Federal Reserve and Federal Home Loan Bank stock		21,420			21,420
Accrued interest receivable		28,446			30,011
Goodwill		4,970			4,970
Other assets		124,842			121,425
Total assets	$	6,678,374		$	6,524,029


LIABILITIES
Noninterest bearing deposits	$	1,297,456		$	1,353,477
Interest bearing deposits		4,603,510			4,367,048
Total deposits		5,900,966			5,720,525

Borrowings – Federal Home Loan Bank advances		0			50,000
Accrued interest payable		15,117			20,893
Other liabilities		78,380			82,818
Total liabilities		5,994,463			5,874,236

STOCKHOLDERS’ EQUITY
Common stock: 90,000,000 shares authorized, no par value
25,978,831 shares issued and 25,509,592 outstanding as of December 31, 2024
25,903,686 shares issued and 25,430,566 outstanding as of December 31, 2023		129,664			127,692
Retained earnings		736,412			692,760
Accumulated other comprehensive income (loss)		(166,500	)		(155,195	)
Treasury stock, at cost (469,239 shares and 473,120 shares as of December 31, 2024 and December 31, 2023, respectively)		(15,754	)		(15,553	)
Total stockholders’ equity		683,822			649,704
Noncontrolling interest		89			89
Total equity		683,911			649,793
Total liabilities and equity	$	6,678,374		$	6,524,029


CONSOLIDATED STATEMENTS OF INCOME (unaudited – in thousands, except share and per share data)

	Three Months Ended December 31,					Twelve Months Ended December 31,
	2024		2023			2024			2023
NET INTEREST INCOME
Interest and fees on loans
Taxable	$	83,253	$	80,631		$	335,639		$	304,130
Tax exempt		296		1,016			2,126			3,885
Interest and dividends on securities
Taxable		2,997		3,187			12,048			13,153
Tax exempt		3,914		4,009			15,714			16,396
Other interest income		2,910		2,099			7,631			5,703
Total interest income		93,370		90,942			373,158			343,267

Interest on deposits		41,676		42,154			172,759			137,791
Interest on short-term borrowings		0		189			3,720			8,441
Total interest expense		41,676		42,343			176,479			146,232

NET INTEREST INCOME		51,694		48,599			196,679			197,035

Provision for credit losses		3,691		300			16,750			5,850

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		48,003		48,299			179,929			191,185

NONINTEREST INCOME
Wealth advisory fees		2,699		2,311			10,469			9,080
Investment brokerage fees		456		445			1,894			1,815
Service charges on deposit accounts		2,825		2,682			11,157			10,773
Loan and service fees		2,977		2,968			11,832			11,750
Merchant and interchange fee income		889		907			3,542			3,651
Bank owned life insurance income		1,216		740			4,210			3,133
Interest rate swap fee income		0		0			0			794
Mortgage banking income (loss)		48		(70	)		116			(254	)
Net securities gains (losses)		0		(9	)		(46	)		(25	)
Net gain on Visa shares		0		0			8,996			0
Other income		766		7,234			4,674			9,141
Total noninterest income		11,876		17,208			56,844			49,858

NONINTEREST EXPENSE
Salaries and employee benefits		17,261		15,733			66,728			59,147
Net occupancy expense		1,706		1,486			6,865			6,360
Equipment costs		1,405		1,443			5,612			5,632
Data processing fees and supplies		3,742		3,698			15,161			14,003
Corporate and business development		950		877			4,965			4,807
FDIC insurance and other regulatory fees		894		894			3,465			3,363
Professional fees		2,275		2,299			8,950			8,583
Wire fraud loss		0		0			0			18,058
Other expense		2,420		3,015			13,338			10,757
Total noninterest expense		30,653		29,445			125,084			130,710

INCOME BEFORE INCOME TAX EXPENSE		29,226		36,062			111,689			110,333
Income tax expense		5,036		6,436			18,211			16,566
NET INCOME	$	24,190	$	29,626		$	93,478		$	93,767

BASIC WEIGHTED AVERAGE COMMON SHARES		25,686,276		25,614,420			25,676,543			25,604,751

BASIC EARNINGS PER COMMON SHARE	$	0.94	$	1.16		$	3.64		$	3.67

DILUTED WEIGHTED AVERAGE COMMON SHARES		25,792,460		25,732,870			25,769,018			25,723,165

DILUTED EARNINGS PER COMMON SHARE	$	0.94	$	1.16		$	3.63		$	3.65


LAKELAND FINANCIAL CORPORATION LOAN DETAIL (unaudited, in thousands)

	December 31, 2024					September 30, 2024					December 31, 2023
Commercial and industrial loans:
Working capital lines of credit loans	$	649,609		12.7	%	$	678,079		13.3	%	$	604,893		12.3	%
Non-working capital loans		801,256		15.6			814,804		16.0			815,871		16.6
Total commercial and industrial loans		1,450,865		28.3			1,492,883		29.3			1,420,764		28.9

Commercial real estate and multi-family residential loans:
Construction and land development loans		567,781		11.1			729,293		14.3			634,435		12.9
Owner occupied loans		807,090		15.8			810,453		15.9			825,464		16.8
Nonowner occupied loans		872,671		17.0			766,821		15.1			724,101		14.7
Multifamily loans		344,978		6.7			243,283		4.8			253,534		5.1
Total commercial real estate and multi-family residential loans		2,592,520		50.6			2,549,850		50.1			2,437,534		49.5

Agri-business and agricultural loans:
Loans secured by farmland		156,609		3.1			157,413		3.1			162,890		3.3
Loans for agricultural production		230,787		4.5			200,971		4.0			225,874		4.6
Total agri-business and agricultural loans		387,396		7.6			358,384		7.1			388,764		7.9

Other commercial loans		95,584		1.9			94,309		1.9			120,726		2.5
Total commercial loans		4,526,365		88.4			4,495,426		88.4			4,367,788		88.8

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		259,286		5.1			261,462		5.1			258,103		5.2
Open end and junior lien loans		214,125		4.2			210,275		4.1			189,663		3.9
Residential construction and land development loans		16,818		0.3			14,200		0.3			8,421		0.2
Total consumer 1-4 family mortgage loans		490,229		9.6			485,937		9.5			456,187		9.3

Other consumer loans		104,041		2.0			103,547		2.1			96,022		1.9
Total consumer loans		594,270		11.6			589,484		11.6			552,209		11.2
Subtotal		5,120,635		100.0	%		5,084,910		100.0	%		4,919,997		100.0	%
Less: Allowance for credit losses		(85,960	)				(83,627	)				(71,972	)
Net deferred loan fees		(2,687	)				(2,920	)				(3,463	)
Loans, net	$	5,031,988				$	4,998,363				$	4,844,562


LAKELAND FINANCIAL CORPORATION DEPOSITS AND BORROWINGS (unaudited, in thousands)

	December 31, 2024		September 30, 2024		December 31, 2023
Noninterest bearing demand deposits	$	1,297,456	$	1,284,527	$	1,353,477
Savings and transaction accounts:
Savings deposits		276,179		276,468		301,168
Interest bearing demand deposits		3,471,455		3,273,405		3,049,059
Time deposits:
Deposits of $100,000 or more		642,776		787,095		792,738
Other time deposits		213,100		215,818		224,083
Total deposits	$	5,900,966	$	5,837,313	$	5,720,525
FHLB advances and other borrowings		0		30,000		50,000
Total funding sources	$	5,900,966	$	5,867,313	$	5,770,525


LAKELAND FINANCIAL CORPORATION AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS (UNAUDITED)

	Three Months Ended December 31, 2024							Three Months Ended September 30, 2024							Three Months Ended December 31, 2023
(fully tax equivalent basis, dollars in thousands)	Average Balance			Interest Income		Yield (1)/ Rate		Average Balance			Interest Income		Yield (1)/ Rate		Average Balance			Interest Income		Yield (1)/ Rate
Earning Assets
Loans:
Taxable (2)(3)	$	5,060,397		$	83,253	6.54	%	$	5,037,855		$	86,118	6.80	%	$	4,820,389		$	80,631	6.64	%
Tax exempt (1)		26,217			364	5.52			26,493			366	5.50			59,306			1,265	8.46
Investments: (1)
Securities		1,134,011			7,953	2.79			1,128,705			7,871	2.77			1,107,862			8,262	2.96
Short-term investments		2,765			29	4.17			2,841			35	4.90			2,610			32	4.86
Interest bearing deposits		247,530			2,881	4.63			133,393			1,738	5.18			155,770			2,067	5.26
Total earning assets	$	6,470,920		$	94,480	5.81	%	$	6,329,287		$	96,128	6.04	%	$	6,145,937		$	92,257	5.96	%
Less: Allowance for credit losses		(84,687	)						(81,353	)						(72,165	)
Nonearning Assets
Cash and due from banks		67,994							63,744							69,563
Premises and equipment		60,325							59,493							58,436
Other nonearning assets		281,044							285,293							312,659
Total assets	$	6,795,596						$	6,656,464						$	6,514,430

Interest Bearing Liabilities
Savings deposits	$	274,960		$	43	0.06	%	$	280,180		$	45	0.06	%	$	306,875		$	52	0.07	%
Interest bearing checking accounts		3,505,470			31,562	3.58			3,295,911			33,822	4.08			3,073,570			30,953	4.00
Time deposits:
In denominations under $100,000		214,429			1,921	3.56			215,020			1,914	3.54			220,678			1,810	3.25
In denominations over $100,000		734,342			8,150	4.42			844,882			9,775	4.60			827,017			9,339	4.48
Miscellaneous short-term borrowings		5			0	5.30			13,752			189	5.48			13,285			189	5.64
Total interest bearing liabilities	$	4,729,206		$	41,676	3.51	%	$	4,649,745		$	45,745	3.91	%	$	4,441,425		$	42,343	3.78	%
Noninterest Bearing Liabilities
Demand deposits		1,281,921							1,244,184							1,374,452
Other liabilities		90,725							92,375							125,900
Stockholders’ Equity		693,744							670,160							572,653
Total liabilities and stockholders’ equity	$	6,795,596						$	6,656,464						$	6,514,430
Interest Margin Recap
Interest income/average earning assets					94,480	5.81	%					96,128	6.04	%					92,257	5.96	%
Interest expense/average earning assets					41,676	2.56						45,745	2.88						42,343	2.73
Net interest income and margin				$	52,804	3.25	%				$	50,383	3.16	%				$	49,914	3.23	%

(1)  Tax exempt income was converted to a fully taxable equivalent basis at a 21 percent tax rate. The tax equivalent rate for tax exempt loans and tax exempt securities acquired after January 1, 1983, included the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”) adjustment applicable to nondeductible interest expenses. Taxable equivalent basis adjustments were $1.11 million, $1.11 million and $1.32 million in the three-month periods ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
(2)  Loan fees, which are immaterial in relation to total taxable loan interest income for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, are included as taxable loan interest income.
(3)  Nonaccrual loans are included in the average balance of taxable loans.

Reconciliation of Non-GAAP Financial Measures

Tangible common equity, adjusted tangible common equity, tangible assets, adjusted tangible assets, tangible book value per common share, tangible common equity to tangible assets, adjusted tangible common equity to adjusted tangible assets, and pretax pre-provision earnings are non-GAAP financial measures calculated based on GAAP amounts. Tangible common equity is calculated by excluding the balance of goodwill and other intangible assets from the calculation of equity, net of deferred tax. Tangible assets are calculated by excluding the balance of goodwill and other intangible assets from the calculation of total assets, net of deferred tax. Adjusted tangible assets and adjusted tangible common equity remove the fair market value adjustment impact of the available-for-sale investment securities portfolio in accumulated other comprehensive income (loss) (“AOCI”). Tangible book value per common share is calculated by dividing tangible common equity by the number of shares outstanding less true treasury stock. Pretax pre-provision earnings is calculated by adding net interest income to noninterest income and subtracting noninterest expense. Because not all companies use the same calculation of tangible common equity and tangible assets, this presentation may not be comparable to other similarly titled measures calculated by other companies. However, management considers these measures of the company’s value meaningful to understanding of the company’s financial information and performance.

A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

	Three Months Ended									Twelve Months Ended
	Dec. 31, 2024			Sep. 30, 2024			Dec. 31, 2023			Dec. 31, 2024			Dec. 31, 2023
Total Equity	$	683,911		$	699,181		$	649,793		$	683,911		$	649,793
Less: Goodwill		(4,970	)		(4,970	)		(4,970	)		(4,970	)		(4,970	)
Plus: DTA Related to Goodwill		1,167			1,167			1,167			1,167			1,167
Tangible Common Equity		680,108			695,378			645,990			680,108			645,990
Market Value Adjustment in AOCI		165,932			137,435			154,460			165,932			154,460
Adjusted Tangible Common Equity		846,040			832,813			800,450			846,040			800,450

Assets	$	6,678,374		$	6,645,371		$	6,524,029		$	6,678,374		$	6,524,029
Less: Goodwill		(4,970	)		(4,970	)		(4,970	)		(4,970	)		(4,970	)
Plus: DTA Related to Goodwill		1,167			1,167			1,167			1,167			1,167
Tangible Assets		6,674,571			6,641,568			6,520,226			6,674,571			6,520,226
Market Value Adjustment in AOCI		165,932			137,435			154,460			165,932			154,460
Adjusted Tangible Assets		6,840,503			6,779,003			6,674,686			6,840,503			6,674,686

Ending Common Shares Issued		25,689,730			25,684,916			25,614,585			25,689,730			25,614,585

Tangible Book Value Per Common Share	$	26.47		$	27.07		$	25.22		$	26.47		$	25.22

Tangible Common Equity/Tangible Assets		10.19	%		10.47	%		9.91	%		10.19	%		9.91	%
Adjusted Tangible Common Equity/Adjusted Tangible Assets		12.37	%		12.29	%		11.99	%		12.37	%		11.99	%

Net Interest Income	$	51,694		$	49,273		$	48,599		$	196,679		$	197,035
Plus: Noninterest Income		11,876			11,917			17,208			56,844			49,858
Minus: Noninterest Expense		(30,653	)		(30,393	)		(29,445	)		(125,084	)		(130,710	)

Pretax Pre-Provision Earnings	$	32,917		$	30,797		$	36,362		$	128,439		$	116,183

Adjusted core noninterest income, adjusted core noninterest expense, adjusted earnings before income taxes, core operational profitability, core operational diluted earnings per common share and adjusted core efficiency ratio are non-GAAP financial measures calculated based on GAAP amounts. These adjusted amounts are calculated by excluding the impact of the net gain on Visa shares, legal accrual, and wire fraud loss and associated insurance and loss recoveries and adjustments to salaries and employee benefits expense for the periods presented below. Management considers these measures of financial performance to be meaningful to understanding the company’s core business performance for these periods.

A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

	Three Months Ended									Twelve Months Ended
	Dec. 31, 2024			Sep. 30, 2024			Dec. 31, 2023			Dec. 31, 2024			Dec. 31, 2023
Noninterest Income	$	11,876		$	11,917		$	17,208		$	56,844		$	49,858
Less: Net (Gain) Loss on Visa Shares		0			15			0			(8,996	)		0
Less: Insurance and Loss Recoveries		0			0			(6,300	)		(1,000	)		(6,300	)
Adjusted Core Noninterest Income	$	11,876		$	11,932		$	10,908		$	46,848		$	43,558

Noninterest Expense	$	30,653		$	30,393		$	29,445		$	125,084		$	130,710
Less: Legal Accrual		0			0			0			(4,537	)		0
Less: Wire Fraud Loss		0			0			0			0			(18,058	)
Plus: Salaries and Employee Benefits (1)		0			0			(453	)		0			1,397
Adjusted Core Noninterest Expense	$	30,653		$	30,393		$	28,992		$	120,547		$	114,049

Earnings Before Income Taxes	$	29,226		$	27,738		$	36,062		$	111,689		$	110,333
Adjusted Core Impact:
Noninterest Income		0			15			(6,300	)		(9,996	)		(6,300	)
Noninterest Expense		0			0			453			4,537			16,661
Total Adjusted Core Impact		0			15			(5,847	)		(5,459	)		10,361
Adjusted Earnings Before Income Taxes		29,226			27,753			30,215			106,230			120,694
Tax Effect		(5,036	)		(4,404	)		(4,996	)		(16,853	)		(19,119	)
Core Operational Profitability (2)	$	24,190		$	23,349		$	25,219		$	89,377		$	101,575

Diluted Earnings Per Common Share	$	0.94		$	0.91		$	1.16		$	3.63		$	3.65
Impact of Adjusted Core Items		0.00			0.00			(0.18	)		(0.16	)		0.30
Core Operational Diluted Earnings Per Common Share	$	0.94		$	0.91		$	0.98		$	3.47		$	3.95

Adjusted Core Efficiency Ratio		48.22	%		49.66	%		48.72	%		49.49	%		47.40	%

(1) In 2023, long-term, incentive-based compensation accruals were reduced as a result of the wire fraud loss and associated insurance and loss recoveries.
(2) Core operational profitability was $11,000 higher and $4.4 million lower than reported net income for the three months ended September 30, 2024 and December 31, 2023, respectively. Core operational profitability was $4.1 million lower and $7.8 million higher than reported net income for the twelve months ended December 31, 2024 and 2023, respectively.

Contact
Lisa M. O’Neill
Executive Vice President and Chief Financial Officer
(574) 267-9125
lisa.oneill@lakecitybank.com

The MIL Network –

January 25, 2025

MIL-OSI USA: Undergraduate Researcher Studying Homemaker Influencers

Source: US State of Connecticut

Sometimes an Instagram photo of freshly made strawberry jam, jars lined up symmetrically on a patterned tea towel, isn’t just a picture of preserves, says Kathryn Andronowitz ’26 (CLAS).

Sometimes a photo like that, in a crisp kitchen with only a dirtied wooden spoon and sticky sweet mixing bowl in the background, represents something far more concerning that threatens the advancements women have made in the workplace and elsewhere outside the home, she says.

“There’s nothing wrong with being a housewife or homemaker,” Andronowitz says. “I’m not trying to demean these women who are posting about that. My problem is in how some housewife influencers present it and how it’s part of a bigger narrative that, I believe, is ultimately harmful to women because of how it naturalizes women in the home while brushing off feminism as no longer necessary.”

In her study, “The Business of Domesticity: A Study on Homemaker Influencers on Instagram,” Andronowitz is looking at the four themes she sees as connecting those 20-something-year-old women who’ve built a brand making videos of themselves effortlessly straining off the liquid whey in a batch of homemade ricotta cheese.

The first is consumer capitalist logic, or how they operate as branded identities and use their platform to promote products. Next is the fantasy idealization aspect of their accounts, or how they present their idealized lifestyle without showing the inevitable drawbacks, fails, and bad days that happen as part of life.

Kathryn Andronowitz ’26 (CLAS) (Contributed photo)

Third is their promotion of alternative wellness and health, that is making food, sometimes even ingredients, from scratch. And last is their assertion their values are under attack, or that society believes they shouldn’t be mothers, religious, or stay at home.

“They present their content in a way that makes sense to the average viewer. If you’re not thinking about it too deeply, it’s presented in a way that depicts the homemaker role as the most natural, fulfilling, even morally correct, path for women,” she says. “It’s only when you take a step back that you see how easy it is for people to get caught up and uncritically romanticize being a homemaker.”

Andronowitz, a double major in English and sociology, says she started to see posts from tradwives, a term for “traditional housewives” that was popularized around 2020, show up in her social media feed and questioned their promotion of traditional gender roles and denunciation of feminism.

Such influencers typically adhere to beliefs that were popular in the 1950s, namely that women stay home to raise children and keep house while men serve as breadwinners, Andronowitz explains. Oftentimes, tradwives go as far as saying they should be subservient to their husbands and are depicted in classic dress, with busts pushed up and waists cinched, while performing everyday tasks around the home.

“It’s certainly valid for women to feel undervalued or caught up in the hustle of a capitalist society,” Andronowitz concedes, “but inspiring women to say to themselves, ‘I’m going to choose to step back into a slow life and leave it to the man to make the money,’ flips the script to an individual solution and turns on collective feminist aims.”

Her project, being completed as part of a 2024-25 undergraduate research fellowship through the UConn Humanities Institute, looks at Instagram accounts with between 50,000 and 500,000 followers that predominantly feature white women generally without the male head of household anywhere near the camera.

On these accounts, viewers find beautifully shot videos of zinnia-filled flower gardens, bubbling sourdough bread starter, and homemade beeswax candles that entice them to continue scrolling, she notes.

“Their identities are complicated by the fact that they are content creators and entrepreneurs, so they display a lot of creativity and agency, which is an interesting contrast to how homemakers are typically perceived,” she says, adding she worries nonetheless about its aestheticized appeal.

“Young women can be influenced from an even earlier age, long before they make decisions like whether they want to go to college or whether they want to get married,” Andronowitz says. “These very traditional roles can put women in situations that are very repressive.”

MIL OSI USA News –

January 25, 2025

Category: Commerce

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