Economy – Page 1252 – NewzIntel.com

MIL-OSI: Home Federal Bancorp, Inc. of Louisiana Reports Results of Operations for the Three and Six Months Ended December 31, 2024

Source: GlobeNewswire (MIL-OSI)

Shreveport, La, Jan. 30, 2025 (GLOBE NEWSWIRE) — Home Federal Bancorp, Inc. of Louisiana (the “Company”) (Nasdaq: HFBL), the holding company of Home Federal Bank, reported net income for the three months ended December 31, 2024, of $1.02 million compared to net income of $1.00 million reported for the three months ended December 31, 2023. The Company’s basic and diluted earnings per share were $0.33 for the three months ended December 31, 2024 and December 31, 2023. The Company reported net income of $2.0 million for the six months ended December 31, 2024, compared to $2.2 million for the six months ended December 31, 2023. The Company’s basic and diluted earnings per share were $0.64 for the six months ended December 31, 2024 compared to $0.73 and $0.72, respectively, for the six months ended December 31, 2023.

The Company reported the following highlights during the six months ended December 31, 2024:

Nonperforming assets totaled $1.8 million, or 0.30% of total assets at December 31, 2024 compared to $1.9 million, or 0.30% of total assets, at June 30, 2024.
There were no advances from the FHLB at December 31, 2024 or June 30, 2024.
Other borrowings totaled $4.0 million at December 31, 2024 compared to $7.0 million at June 30, 2024.

The increase in net income for the three months ended December 31, 2024, as compared to the same period in 2023 resulted primarily from a decrease of $413,000, or 9.7%, in non-interest expense and an increase of $351,000, or 256.2%, in non-interest income, partially offset by an increase of $383,000, or 195.4%, in provision for income taxes, a decrease of $303,000, or 6.2%, in net interest income, and an increase of $61,000, or 381.3%, in the provision for credit losses. The decrease in net interest income for the three months ended December 31, 2024, as compared to the same period in 2023, was primarily due to a decrease of $422,000, or 5.2%, in total interest income, partially offset by a decrease of $119,000, or 3.7%, in total interest expense. The Company’s average interest rate spread was 2.40% for the three months ended December 31, 2024, compared to 2.45% for the three months ended December 31, 2023. The Company’s net interest margin was 3.12% for the three months ended December 31, 2024, compared to 3.14% for the three months ended December 31, 2023.

The decrease in net income for the six months ended December 31, 2024, as compared to the same period in 2023 resulted primarily from a decrease of $1.2 million, or 11.4%, in net interest income and an increase of $71,000, or 62.3%, in provision for income taxes, partially offset by a decrease of $591,000, or 7.0%, in non-interest expense, an increase of $216,000, or 37.8%, in non-interest income, and an increase of $162,000 in the recovery of credit losses. The decrease in net interest income for the six months ended December 31, 2024, as compared to the same period in 2023, was primarily due to a decrease of $755,000, or 4.7%, in total interest income and an increase of $405,000, or 6.8%, in total interest expense. The Company’s average interest rate spread was 2.32% for the six months ended December 31, 2024 compared to 2.60% for the six months ended December 31, 2023. The Company’s net interest margin was 3.06% for the six months ended December 31, 2024 compared to 3.26% for the six months ended December 31, 2023.

The following tables set forth the Company’s average balances and average yields earned and rates paid on its interest-earning assets and interest-bearing liabilities for the periods indicated.

	For the Three Months Ended December 31,
	2024					2023
	Average Balance		Average Yield/Rate			Average Balance		Average Yield/Rate
	(Dollars in thousands)
Interest-earning assets:
Loans receivable	$	457,553		5.89	%	$	507,844		5.78	%
Investment securities		96,715		2.19			109,485		2.43
Interest-earning deposits		29,653		4.47			1,751		2.95
Total interest-earning assets	$	583,921		5.20	%	$	619,080		5.18	%

Interest-bearing liabilities:
Savings accounts	$	90,696		1.71	%	$	73,228		0.40	%
NOW accounts		70,685		1.26			65,252		0.43
Money market accounts		79,365		2.21			95,763		2.49
Certificates of deposit		188,929		4.03			212,792		4.01
Total interest-bearing deposits		429,675		2.75			447,035		2.57
Other bank borrowings		4,489		7.16			9,202		8.58
FHLB advances		–		–			5,379		5.75
Total interest-bearing liabilities	$	434,164		2.80	%	$	461,616		2.73	%

	For the Six Months Ended December 31,
	2024					2023
	Average Balance		Average Yield/Rate			Average Balance		Average Yield/Rate
	(Dollars in thousands)
Interest-earning assets:
Loans receivable	$	461,531		5.88	%	$	503,043		5.79	%
Investment securities		96,732		2.14			111,535		2.46
Interest-earning deposits		27,635		4.81			5,843		3.43
Total interest-earning assets	$	585,898		5.21	%	$	620,421		5.16	%

Interest-bearing liabilities:
Savings accounts	$	86,626		1.66	%	$	75,900		0.39	%
NOW accounts		71,736		1.18			66,639		0.41
Money market accounts		77,290		2.29			102,327		2.37
Certificates of deposit		196,443		4.17			203,779		3.88
Total interest-bearing deposits		432,095		2.83			448,645		2.43
Other bank borrowings		5,239		7.50			8,928		8.47
FHLB advances		–		–			3,259		5.66
Total interest-bearing liabilities	$	437,334		2.89	%	$	460,832		2.57	%

The $351,000 increase in non-interest income for the three months ended December 31, 2024, compared to the prior year quarterly period, was primarily due to a decrease of $369,000 in loss on sale of real estate, an increase of $62,000 in other non-interest income, and an increase of $2,000 in income on bank owned life insurance, partially offset by a decrease of $71,000 in gain on sale of loans, an increase of $6,000 in loss on sale of securities, and a decrease of $5,000 in service charges on deposit accounts. The $216,000 increase in non-interest income for the six months ended December 31, 2024 compared to the prior year six-month period was primarily due to a decrease of $149,000 in loss on sale of real estate, an increase of $88,000 in other non-interest income, and an increase of $4,000 in income from bank owned life insurance, partially offset by a decrease of $14,000 in gain on sale of loans, an increase of $6,000 in loss on sale of securities, and a decrease of $5,000 in service charges on deposit accounts.

The $413,000 decrease in non-interest expense for the three months ended December 31, 2024, compared to the same period in 2023, is primarily attributable to decreases of $163,000 in franchise and bank shares tax expense, $132,000 in other non-interest expense, $99,000 in compensation and benefits expense, $80,000 in audit and examination fees, $53,000 in professional fees, $38,000 in advertising expense, $33,000 in deposit insurance premium expense, $13,000 in amortization of core deposit intangible expense, $7,000 in occupancy and equipment expense, and $2,000 in loan and collection expense. The decreases were partially offset by an increase of $207,000 in data processing expense. The $591,000 decrease in non-interest expense for the six months ended December 31, 2024, compared to the same six-month period in 2023, is primarily attributable to decreases of $153,000 in compensation and benefits expense, $151,000 in franchise and bank shares tax expense, $124,000 in advertising expense, $105,000 in other non-interest expense, $96,000 in professional fees, $50,000 in audit and examination fees, $34,000 in loan and collection expense, $34,000 in deposit insurance premium expense, and $33,000 in amortization of core deposit intangible expense. The decreases were partially offset by increases of $180,000 in data processing expense and $9,000 in occupancy and equipment expense.

Total assets decreased $29.7 million, or 4.7%, from $637.5 million at June 30, 2024 to $607.8 million at December 31, 2024. The decrease in assets was comprised of decreases in cash and cash equivalents of $15.4 million, or 44.1%, from $34.9 million at June 30, 2024 to $19.5 million at December 31, 2024, net loans receivable of $12.2 million, or 2.6%, from $470.9 million at June 30, 2024 to $458.7 million at December 31, 2024, loans-held-for-sale of $1.5 million, or 87.5%, from $1.7 million at June 30, 2024 to $216,000 at December 31, 2024, premises and equipment of $459,000, or 2.5%, from $18.3 million at June 30, 2024 to $17.8 million at December 31, 2024, real estate owned of $418,000, or 100.0% from $418,000 at June 30, 2024 to none at December 31, 2024, investment securities of $264,000, or 0.3%, from $96.0 million at June 30, 2024 to $95.7 million at December 31, 2024, and core deposit intangible of $146,000, or 12.2%, from $1.2 million at June 30, 2024 to $1.1 million at December 31, 2024, partially offset by increases in deferred tax asset of $357,000, or 30.2%, from $1.2 million at June 30, 2024 to $1.5 million at December 31, 2024, other assets of $195,000, or 14.4%, from $1.3 million at June 30, 2024 to $1.5 million at December 31, 2024, bank owned life insurance of $58,000, or 0.9%, from $6.81 million at June 30, 2024 to $6.87 million at December 31, 2024, and accrued interest receivable of $12,000, or 0.7%, from $1.78 million at June 30, 2024 to $1.79 million at December 31, 2024.

Total liabilities decreased $30.9 million, or 5.3%, from $584.7 million at June 30, 2024 to $553.8 million at December 31, 2024. The decrease in liabilities was comprised of decreases in total deposits of $27.5 million, or 4.8%, from $574.0 million at June 30, 2024 to $546.5 million at December 31, 2024, other borrowings of $3.0 million, or 42.9%, from $7.0 million at June 30, 2024 to $4.0 million at December 31, 2024, advances from borrowers for taxes and insurance of $252,000, or 48.4%, from $521,000 at June 30, 2024 to $269,000 at December 31, 2024, and other accrued expenses and liabilities of $164,000, or 5.2%, from $3.2 million at June 30, 2024 to $3.0 million at December 31, 2024. The decrease in deposits resulted from decreases in certificates of deposit of $30.8 million, or 14.3%, from $214.9 million at June 30, 2024 to $184.1 million at December 31, 2024, money market deposits of $12.2 million, or 14.3%, from $85.5 million at June 30, 2024 to $73.3 million at December 31, 2024, and non-interest deposits of $1.9 million, or 1.5%, from $130.3 million at June 30, 2024 to $128.4 million at December 31, 2024, partially offset by increases in savings deposits of $16.7 million, or 21.7%, from $76.6 million at June 30, 2024 to $93.3 million at December 31, 2024, and NOW accounts of $796,000, or 1.2%, from $66.6 million at June 30, 2024 to $67.4 million at December 31, 2024. The Company had no balances in brokered deposits at December 31, 2024 or June 30, 2024.

At December 31, 2024, the Company had $1.8 million of non-performing assets (defined as non-accruing loans, accruing loans 90 days or more past due, and other real estate owned) compared to $1.9 million on non-performing assets at June 30, 2024, consisting of five one-to-four family residential loans, five home equity loans, two commercial non-real estate loans, and one commercial real-estate loan at December 31, 2024, compared to five one-to-four family residential loans, four home equity loans, three commercial non-real estate loans, and three single-family residences in other real estate owned at June 30, 2024. At December 31, 2024 the Company had eight one-to-four family residential loans, five home equity loans, five commercial non-real-estate loans, two commercial real-estate loans, and one consumer loan classified as substandard, compared to six one-to-four family residential loans, five commercial non-real-estate loans, four home equity loans and one consumer loan classified as substandard at June 30, 2024. There were no loans classified as doubtful at December 31, 2024 or June 30, 2024.

Shareholders’ equity increased $1.1 million, or 2.1%, from $52.8 million at June 30, 2024 to $53.9 million at December 31, 2024. The increase in shareholders’ equity was comprised of net income for the six-month period of $2.0 million, the vesting of restricted stock awards, stock options, and the release of employee stock ownership plan shares totaling $311,000, and proceeds from the issuance of common stock from the exercise of stock options of $19,000, partially offset by an increase in the Company’s accumulated other comprehensive loss of $10,000, dividends paid totaling $816,000, and stock repurchases of $335,000.

Home Federal Bancorp, Inc. of Louisiana is the holding company for Home Federal Bank which conducts business from its ten full-service banking offices and home office in northwest Louisiana.

Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe”, “expect”, “anticipate”, “estimate”, and “intend”, or future or conditional verbs such as “will”, “would”, “should”, “could”, or “may”. We undertake no obligation to update any forward-looking statements.

In addition to factors previously disclosed in the reports filed by the Company with the Securities and Exchange Commission and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the strength of the United States economy in general and the strength of the local economies in which the Company conducts its operations; general economic conditions; legislative and regulatory changes; monetary and fiscal policies of the federal government; changes in tax policies, rates and regulations of federal, state and local tax authorities including the effects of the Tax Reform Act; changes in interest rates, deposit flows, the cost of funds, demand for loan products and the demand for financial services, competition, changes in the quality or composition of the Company’s loans, investment and mortgage-backed securities portfolios; geographic concentration of the Company’s business; fluctuations in real estate values; the adequacy of loan loss reserves; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; changes in accounting principles, policies or guidelines and other economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services and fees.

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED BALANCE SHEETS
(In thousands except share and per share data)

	December 31, 2024			June 30, 2024
	(Unaudited)
ASSETS

Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $16,389 and $25,505 at December 31, 2024 and June 30, 2024, Respectively)	$	19,540		$	34,948
Securities Available-for-Sale (amortized cost December 31, 2024: $32,930; June 30, 2024: $30,348, Respectively)		29,607			27,037
Securities Held-to-Maturity (fair value December 31, 2024: $52,451; June 30, 2024: $54,450, Respectively)		64,431			67,302
Other Securities		1,651			1,614
Loans Held-for-Sale		216			1,733
Loans Receivable, Net of Allowance for Credit Losses (December 31, 2024: $4,749; June 30, 2024: $4,574, Respectively)		458,693			470,852
Accrued Interest Receivable		1,787			1,775
Premises and Equipment, Net		17,844			18,303
Bank Owned Life Insurance		6,868			6,810
Goodwill		2,990			2,990
Core Deposit Intangible		1,053			1,199
Deferred Tax Asset		1,538			1,181
Real Estate Owned		–			418
Other Assets		1,545			1,350

Total Assets	$	607,763		$	637,512

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES

Deposits:
Non-interest bearing	$	128,439		$	130,334
Interest-bearing		418,105			443,673
Total Deposits		546,544			574,007
Advances from Borrowers for Taxes and Insurance		269			521
Other Borrowings		4,000			7,000
Other Accrued Expenses and Liabilities		3,017			3,181

Total Liabilities		553,830			584,709

SHAREHOLDERS’ EQUITY

Preferred Stock – $0.01 Par Value; 10,000,000 Shares Authorized: None Issued and Outstanding		–			–
Common Stock – $0.01 Par Value; 40,000,000 Shares Authorized: 3,132,764 and 3,142,168 Shares Issued and Outstanding at December 31, 2024 and June 30, 2024, Respectively		32			32
Additional Paid-in Capital		42,010			41,739
Unearned ESOP Stock		(350	)		(408	)
Retained Earnings		14,866			14,055
Accumulated Other Comprehensive Loss		(2,625	)		(2,615	)

Total Shareholders’ Equity		53,933			52,803

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	607,763		$	637,512

HOME FEDERAL BANCORP, INC. OF LOUISIANA
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)

(Unaudited)

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2024			2023			2024			2023
Interest income
Loans, including fees	$	6,791		$	7,397		$	13,686		$	14,671
Investment securities		63			210			130			449
Mortgage-backed securities		470			460			913			933
Other interest-earning assets		334			13			670			101
Total interest income		7,658			8,080			15,399			16,154
Interest expense
Deposits		2,977			2,901			6,175			5,494
Federal Home Loan Bank borrowings		–			78			–			93
Other bank borrowings		81			198			198			381
Total interest expense		3,058			3,177			6,373			5,968
Net interest income		4,600			4,903			9,026			10,186

Provision for (recovery of) credit losses		45			(16	)		(178	)		(16	)
Net interest income after provision for credit losses		4,555			4,919			9,204			10,202

Non-interest income
Loss on sale of real estate		(12	)		(381	)		(266	)		(415	)
Gain on sale of loans		5			76			101			115
Loss on sale of securities		(6	)		–			(6	)		–
Income on Bank-Owned Life Insurance		30			28			58			54
Service charges on deposit accounts		392			397			783			788
Other income		79			17			118			30

Total non-interest income		488			137			788			572

Non-interest expense
Compensation and benefits		2,229			2,328			4,531			4,684
Occupancy and equipment		537			544			1,101			1,092
Data processing		336			129			554			374
Audit and examination fees		191			271			323			373
Franchise and bank shares tax		1			164			169			320
Advertising		44			82			101			225
Legal fees		134			187			251			347
Loan and collection		30			32			58			92
Amortization Core Deposit Intangible		72			85			146			179
Deposit insurance premium		75			108			165			199
Other expenses	187				319			447			552

Total non-interest expense		3,836			4,249			7,846			8,437

Income before income taxes		1,207			807			2,146			2,337
Provision for income tax expense (benefit)		187			(196	)		185			114

NET INCOME	$	1,020		$	1,003		$	1,961		$	2,223

EARNINGS PER SHARE
Basic	$	0.33		$	0.33		$	0.64		$	0.73
Diluted	$	0.33		$	0.33		$	0.64		$	0.72

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

Selected Operating Ratios⁽¹⁾:
Average interest rate spread		2.40	%		2.45	%		2.32	%		2.60	%
Net interest margin		3.12	%		3.14	%		3.06	%		3.26	%
Return on average assets		0.65	%		0.60	%		0.62	%		0.67	%
Return on average equity		7.76	%		7.81	%		7.50	%		8.64	%

Asset Quality Ratios⁽²⁾:
Non-performing assets as a percent of total assets		0.30	%		0.34	%		0.30	%		0.34	%
Allowance for credit losses as a percent of non-performing loans		260.70	%		226.50	%		260.70	%		226.50	%
Allowance for credit losses as a percent of total loans receivable		1.02	%		1.00	%		1.02	%		1.00	%

Per Share Data:
Shares outstanding at period end		3,132,764			3,143,532			3,132,764			3,143,532
Weighted average shares outstanding:
Basic		3,059,305			3,040,006			3,062,666			3,033,341
Diluted		3,075,221			3,085,271			3,077,371			3,096,546
Book value per share at period end	$	17.22		$	16.73		$	17.22		$	16.73
_____________________
(1) Ratios for the three and six month periods are annualized.
(2) Asset quality ratios are end of period ratios.

The MIL Network –

January 31, 2025

MIL-OSI: Wearable Devices Ltd. Announces Closing of $2.5 Million Public Offering

Source: GlobeNewswire (MIL-OSI)

Yokneam Illit, Israel, Jan. 30, 2025 (GLOBE NEWSWIRE) — Wearable Devices Ltd. (the “Company” or “Wearable Devices”) (Nasdaq: WLDS, WLDSW), an award-winning pioneer in artificial intelligence (“AI”)-based wearable gesture control technology, today announced the closing of its previously announced “reasonable best efforts” public offering with a single institutional investor for the purchase and sale of 345,000 ordinary shares, 2,155,000 pre-funded warrants, and warrants to purchase up to 2,500,000 ordinary shares, at a combined offering price of $1.00 per share and accompanying warrant (the “Offering”). The Company received aggregate gross proceeds of approximately $2.5 million, before deducting placement agent fees and other offering expenses and assuming no exercise of the warrants. The warrants have an exercise price of $1.00 per share, are exercisable immediately and expire five years from the issuance date.

The Company intends to use the net proceeds from the Offering for working capital and general corporate purposes.

A.G.P./Alliance Global Partners acted as the sole placement agent for the Offering.

In connection with the Offering, the Company also agreed to amend existing warrants that were previously issued to the investor participating in the Offering to purchase up to 822,000 ordinary shares of the Company, with an exercise price of $2.50 per share. Such existing warrants have been amended to reduce the exercise price to $1.00 per share and expire five years following the closing of the Offering.

The securities described above were offered pursuant to a registration statement on Form F-1, as amended (File No. 333-284023), previously filed with the Securities and Exchange Commission (“SEC”), which was declared effective on January 28, 2025. The Offering was made only by means of a prospectus forming part of the effective registration statement. Copies of the preliminary prospectus and the final prospectus relating to the Offering may be obtained on the SEC’s website located at http://www.sec.gov. Electronic copies of the final prospectus relating to the Offering may be obtained from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.com.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in this Offering, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Wearable Devices Ltd.

Wearable Devices Ltd. is a pioneering growth company revolutionizing human-computer interaction through its AI-powered neural input technology for both consumer and business markets. Leveraging proprietary sensors, software, and advanced AI algorithms, the Company’s innovative products, including the Mudra Band for iOS and Mudra Link for Android, enable seamless, touch-free interaction by transforming subtle finger and wrist movements into intuitive controls. These groundbreaking solutions enhance gaming, and the rapidly expanding AR/VR/XR landscapes. The Company offers a dual-channel business model: direct-to-consumer sales and enterprise licensing. Its flagship Mudra Band integrates functional and stylish design with cutting-edge AI to empower consumers, while its enterprise solutions provide businesses with the tools to deliver immersive and interactive experiences. By setting the input standard for the XR market, Wearable Devices is redefining user experiences and driving innovation in one of the fastest-growing tech sectors. Wearable Devices’ ordinary shares and warrants trade on the Nasdaq under the symbols “WLDS” and “WLDSW,” respectively.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate,” “will” or other comparable terms. For example, we are using forward-looking statements when we discuss the expected use of proceeds from this Offering. All statements other than statements of historical facts included in this press release regarding our strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the trading of our ordinary shares or warrants and the development of a liquid trading market; our ability to successfully market our products and services; the acceptance of our products and services by customers; our continued ability to pay operating costs and ability to meet demand for our products and services; the amount and nature of competition from other security and telecom products and services; the effects of changes in the cybersecurity and telecom markets; our ability to successfully develop new products and services; our success establishing and maintaining collaborative, strategic alliance agreements, licensing and supplier arrangements; our ability to comply with applicable regulations; and the other risks and uncertainties described in our annual report on Form 20-F for the year ended December 31, 2023, filed on March 15, 2024 and our other filings with the SEC, including the registration statement on Form F-1, as amended (File No. 333-284023). We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Investor Relations Contact

Michal Efraty
IR@wearabledevices.co.il

The MIL Network –

January 31, 2025

MIL-OSI: FHLBank San Francisco Announces Departure of CEO Alanna McCargo

Source: GlobeNewswire (MIL-OSI)

SAN FRANCISCO, Jan. 30, 2025 (GLOBE NEWSWIRE) — The Federal Home Loan Bank of San Francisco (FHLBank San Francisco) announced today that its Board of Directors and Chief Executive Officer Alanna McCargo have jointly determined that effective immediately Ms. McCargo will step down as President and CEO. She will transition into a new role as Special Policy Advisor, working directly with the Chair of the Board of Directors, and will be returning to Washington, D.C.

Joseph E. Amato, the Bank’s current Executive Vice President and Chief Financial Officer, will serve as interim President and CEO while the board launches a search for a new chief executive. Amato will continue to serve as CFO, a position he has held since May 2021. He joined the Bank as Executive Vice President and Senior Financial Officer in October 2020.

Ms. McCargo was appointed President and CEO in June 2024. Prior to joining FHLBank San Francisco, she served as President of the Government National Mortgage Association (Ginnie Mae) and as Senior Advisor for Housing Finance at the U.S. Department of Housing and Urban Development. She previously led housing policy initiatives at the Urban Institute.

“Alanna is a respected leader with deep expertise in housing finance and policy,” said Board Chair F. Daniel Siciliano. “Her insights and strategic guidance will be invaluable as we continue to support our members and partners in meeting the credit and investment needs of the communities we all serve.”

FHLBank San Francisco is a member-owned cooperative that provides reliable funding to its member financial institutions to support lending for housing, jobs, and community investment. “Our focus remains on ensuring our members have the liquidity and resources they need to serve their communities effectively in our three-state region of Arizona, California, and Nevada,” Siciliano said.

“This is a pivotal time for housing and financial markets, and I am pleased to continue working with the Board in this new capacity,” said Ms. McCargo. “I look forward to supporting the Bank and the broader FHLBank System in advancing policies that promote financial stability and access to capital.”

About Federal Home Loan Bank of San Francisco

The Federal Home Loan Bank of San Francisco is a member-driven cooperative helping local lenders in Arizona, California, and Nevada build strong communities, create opportunity, and change lives for the better. The tools and resources we provide to our member financial institutions — commercial banks, credit unions, industrial loan companies, savings institutions, insurance companies, and community development financial institutions — propel homeownership, finance quality affordable housing, drive economic vitality, and revitalize whole neighborhoods. Together with our members and other partners, we are making the communities we serve more vibrant, equitable, and resilient.

Contact:

Tom Flannigan, Director of Public Relations
415-616-2695
Tom.Flannigan@fhlbsf.com
FHLBank San Francisco

The MIL Network –

January 31, 2025

MIL-OSI USA: Rosen Helps Introduce Bipartisan Bill to Cut Red Tape, Help Small Businesses Adopt Digital Tools

US Senate News:

Source: United States Senator Jacky Rosen (D-NV)
WASHINGTON, DC – U.S. Senators Jacky Rosen (D-NV), Todd Young (R-IN), Ted Budd (R-NC), and Jeanne Shaheen (D-NH) introduced legislation to cut red tape and help small business owners integrate digital tools into their businesses. The bipartisan Small Business Technological Advancement Act would clarify that small businesses can utilize the Small Business Administration’s (SBA) 7(a) loan program to finance technology that supports daily operations, including inventory management, product delivery, and accounting systems.
“Small businesses are the backbone of Nevada’s economy, and I’m committed to helping them thrive in any way I can,” said Senator Rosen. “That’s why I’m helping to introduce this bipartisan bill that will free up federal resources to make sure small businesses have the technological support they need to modernize their operations and continue to compete.”
As a member of the Committee on Small Business and Entrepreneurship, Senator Rosen has worked to support Nevada’s small businesses. Each year, she leads her Senate colleagues in pushing for robust funding to support small businesses and cut burdensome red tape. Last year, she introduced the Tax Relief for New Businesses Act to increase the startup tax deduction for entrepreneurs looking to start a small business and reduce barriers for startups. Senator Rosen has also introduced the bipartisan Minority Entrepreneurship Grant Program Act to establish a Minority Entrepreneurship Grant Program through the SBA and award grants to Minority Serving Institutions to promote and increase opportunities for students to start their own businesses.

MIL OSI USA News –

January 31, 2025

MIL-OSI United Nations: Stressing Peacebuilding Commission’s Critical Role amid Rise in Conflicts Worldwide, Secretary-General Urges Increased, Innovative Funding to Support Its Work

Source: United Nations General Assembly and Security Council

Speakers Highlight Pact for Future’s Prioritization of Conflict Prevention, Mediation and Peacebuilding

Amid escalating conflicts, widening geopolitical divisions and deepening climate crisis, the Peacebuilding Commission is “more critical than ever”, said the UN Chief, stressing that the Pact for the Future charts a course to reforming international cooperation by prioritizing prevention, mediation and peacebuilding.

“Now we have the chance to consolidate and expand [the Commission’s] work,” said António Guterres, Secretary-General of the United Nations, recognizing its vital advisory role to the Security Council — including in the context of UN mission transitions. He also commended its convening role within the UN and beyond, engaging civil society, the private sector, international and regional organizations and financial institutions.

This year’s Review of the United Nations Peacebuilding Architecture offers an opportunity to strengthen the Commission’s role, he said, pointing to his recent report on Peacebuilding and Sustaining Peace, which suggests mobilizing political and financial support for nationally owned peacebuilding and prevention strategies.

On the issue of financing, he said the General Assembly’s approval of assessed contributions to the Peacebuilding Fund marks “an important step”. However, it is still a far cry from the “quantum leap” of $500 million per year that is needed. Emphasizing that “voluntary contributions remain paramount”, he encouraged countries to provide additional support to the Fund. Additionally, given the urgent and expanding needs for peacebuilding support, the Review of the Peacebuilding Architecture shall further examine how to ensure the Fund’s predictability, adequacy and sustainability by exploring innovative financing mechanisms, public-private partnerships and blended funding models.

“We must never waver in our commitment to pursue, achieve and sustain peace,” he stated, noting that the UN’s peacebuilding architecture — in collaboration with UN country teams — is essential to help “translate aspirations into reality”.

Following the Secretary-General’s opening remarks, the Commission adopted the body’s report on its eighteenth session, whose final version will be transmitted to the General Assembly and the Security Council for their respective annual consideration.

Election of Officers for Nineteenth Session

The Commission also elected officers for its nineteenth session by acclamation, including Germany as Chair and Japan, Poland, Brazil and Morocco as Vice-Chairs. Further, it re-elected the following countries to chair the Commission’s country-specific configurations: Morocco, for the Central African Republic; Brazil, for Guinea-Bissau; and Sweden, for Liberia.

Outgoing Commission Chair Highlights 2024 Efforts to Address Peacebuilding Challenges

As outgoing Chair of the Commission’s eighteenth session, the representative of Brazil noted the Commission’s “robust” mandate as a platform for countries seeking assistance for their peacebuilding and conflict-prevention priorities. “Through the [Commission], political, technical and financial support can be mobilized, and real impact on the ground can be achieved,” he said. In that context, he highlighted that the body’s work in 2024 focused on exploring “concrete peacebuilding challenges” and showcasing “what has worked, lessons learned, frustrations and challenges different countries face”.

He added that, during 2024, the Commission also engaged in preparation for the 2025 peacebuilding architecture review. Expressing hope that Member States see such review “as an opportunity that should not be missed”, he urged better synergy between the Commission, the Peacebuilding Support Office and the Peacebuilding Fund. “We should also explore ways to provide adequate institutional support to the [Commission] at all levels,” he said, expressing hope that the Trusteeship Council room may one day be renamed the Peacebuilding Council room.

Pointing out that the Security Council’s permanent members are also permanent Commission members, he expressed hope that those States will participate more in Commission meetings in the future. “With great power comes great responsibility,” he observed.

Incoming Commission Chair Cites Strong Focus in 2025 on National Ownership, Closer Relationship with Peacebuilding Fund and Improving Impact

The representative of Germany, Chair of the Commission’s nineteenth session, noted her intention to continue supporting a strong emphasis on national ownership, the body’s convening power and its “unique bridging role” across the pillars of the United Nations. Also pointing to opportunities to improve the Commission’s coherence and efficacy, she said that she will ensure follow-up with countries after a Commission meeting, work on a closer relationship between the Commission and the Peacebuilding Fund, and make the Fund’s work more visible — “especially with a view to the first-time-ever use of assessed contributions”.

She also detailed her hope to strengthen evidence-based discussion and peer-to-peer learning and consider the question of peacebuilding impact — “to ensure that the work we do here in New York has an impact on people’s lives on the ground”. Work will also be done to build on previous efforts to foster the Commission’s relationship with regional organizations, strengthen coherence within the UN and enhance cooperation with international financial institutions. She added that a close, meaningful exchange with other UN bodies is “key”.

Assistant Secretary-General Says Commission Uniquely Positioned to Offer Platform for Member States

The Assistant Secretary-General of the Peacebuilding Commission said that, in the current context of the proliferation of conflict and violence worldwide, the Commission is “uniquely positioned” to offer a platform for Member States that wish to come to it. She added that 2025 presents new opportunities to strengthen the Commission’s role, including by accompanying countries’ peacebuilding journey.

Incoming Vice Commission Chairs and Chairs of Country-Specific Configurations Share Perspectives

Incoming Vice Chairs for the nineteenth session echoed that sentiment, with the representative of Poland saying 2025 “presents itself as a truly unique and exceptional year”. The Pact for the Future, adopted in 2024, must be made to work “in the best possible way”, he said, particularly in the context of strengthening peacebuilding and conflict prevention.

Morocco’s speaker stressed that the Commission should expand its geographic and thematic scope while upholding the principle of national ownership. Underscoring the need to optimize the Commission’s collaboration with the Council and other UN organs, he called for a comprehensive approach towards sustaining peace by leveraging and utilizing each body’s unique characteristics in a mutually complementary manner.

The representative of Morocco said he will work to promote reconciliation, post-conflict reconstruction, development and inclusive peace processes. As Chair of the Commission’s country-specific configuration for the Central African Republic, he will continue to work to mobilize the necessary resources for organizing upcoming local elections in that country — a “crucial stage for strengthening local governance and legitimacy of the authorities”.

Brazil’s delegate stated: “Our region faces its own peacebuilding and conflict prevention challenges [while] developing solutions.” Noting his country’s readiness to share lessons learned, he said “this exchange is most useful in our common task as peacebuilders”.

The representative of Sweden, Chair of the Commission’s country-specific configuration for Liberia, said that Liberia has made “remarkable gains over the years”. Peaceful elections held in 2023 and the orderly transfer of power in 2024 “were true milestones”, he stressed, noting that the configuration’s focus for 2025 will be consolidating long-term peacebuilding gains in the country. Liberia, he added, “has important experiences and lessons learned” to share with the Commission, including sustaining peace, inclusive development and reconciliation.

Commission Members Stress Need to Invest in Addressing Root Causes of Conflict and Violence

In the ensuing discussion, Commission members underscored the need to invest in addressing the root causes of conflict and violence, adding that the Pact for the Future has gained recognition for conflict prevention as a universally shared responsibility.

“2025 will be a crucial year for peacebuilding,” said the representative of the European Union, in its capacity as observer. The Council has demonstrated overwhelming support for this agenda by holding two open debates on conflict prevention. “We have collectively recognized that elaborating national prevention strategies, anchored in national ownership, should be an aspiration for all countries,” he stressed. The peacebuilding architecture review is “an opportunity to consolidate these gains” and to further strengthen the Commission as “an institution that can act as a bridge at the UN”, he continued. As the Commission’s biggest donors, the bloc and its member States have matched this political commitment with funding support.

Spotlighting the Commission’s “significant achievements”, Australia’s delegate said it expanded its regional engagement, provided input into the review and facilitated the revised terms of reference for peacebuilding funding. Underlining the need to strengthen the Commission’s engagement with his region, he said it should encourage Member States to present their peacebuilding priorities.

“Although, at times, we may have had divergent views on how peacebuilding should be conducted, we continue to agree on the foundational principles of peacebuilding,” said his counterpart from South Africa. Namely, that it should be nationally owned and led, context-specific and adaptable, and that more can be done to support peacebuilding in post-conflict contexts.

“It is high time to match the ambitions with the capacities,” said Egypt’s delegate, underscoring the need to expand resources and guarantee the Commission’s more structured cooperation with the Council.

Colombia’s representative, noting that the Commission regularly invites her delegation to share his country’s “experience of peace”, said that doing so helps States “better elucidate a horizon of peace in other places”. The legitimacy of the UN and the future of multilateralism “depend on our capacity to tackle complex crises, contribute to peace and security and ensure a better life for our peoples”, she asserted.

The speaker for Bangladesh, noting that the Commission has “always” based its work on national ownership, said that the body should continue supporting local needs and national priorities “by bringing all stakeholders into the discussion”. Further, the Commission should strengthen its advisory role to facilitate the smooth transition of peacekeeping operations, leading to long-lasting peace.

For his part, the Russian Federation’s representative said that the upcoming peacebuilding-architecture review “should not reinvent the wheel but, rather, use existing mechanisms”. He also stressed that the Commission must not focus solely on conflict prevention, losing sight of countries affected by conflict and post-conflict countries. “It is them that need the political and financial support so that crises don’t return,” he said. Also emphasizing the need to avoid duplication of work, he observed: “The strong suit of the UN system is the principle of division of labour between its main organs.”

MIL OSI United Nations News –

January 31, 2025

MIL-OSI Security: Owner of Retirement Services Company Sentenced to Federal Prison for Stealing Money from Clients Through Wire Fraud Scheme

Source: Office of United States Attorneys

ALEXANDRIA, La. – Acting United States Attorney Alexander C. Van Hook announced that Jerry O. Pearson, 62, of Alexandria, Louisiana, was sentenced today by United States District Judge Dee D. Drell for committing wire fraud. Pearson was sentenced to 63 months in prison, followed by 3 years of supervised release, and ordered to pay restitution to his victims in the amount of $3,431,152.21.

According to information presented in court, Pearson was the owner/operator of Mid South Retirement Services, LLC (“Mid South”) located in Boyce, Louisiana, from 2012 to 2021. Pearson managed Self-Directed Individual Retirement Accounts (SDIRA). An SDIRA is an IRA held by a custodian that allows investment in a wider range of assets than most conventional IRA custodians permit. Mid South served as the custodian of SDIRAs and managed approximately $40 million in assets. Pearson was also the registered agent and manager/member of an unrelated company, Gray-Walk Farms, LLC, which was registered in the State of Louisiana and located in Alexandria. Gray-Walk Farms is unrelated to Mid South and did not provide SDIRAs.

Pearson created a scheme to defraud clients where he would take funds that Mid South was holding as the custodian, and transfer them to other accounts he controlled, without the client’s permission. Pearson used intermediary accounts at financial institutions in the Western District of Louisiana and elsewhere in the name of Mid South and others to move the money out of the Mid South Funding account where client funds were held. The funds would then be moved to Gray-Walk Farm’s accounts, Pearson’s personal bank accounts, or investment accounts in his name. In total, during the scheme, Pearson transferred $3,431,152.21 in client funds from the Mid South client funding bank account to other accounts he controlled. Pearson then used the funds for himself, as well as the benefit of his family and other companies that he controlled. In order to keep the scheme from being detected, Pearson would misrepresent to clients that he was investing the funds as they had directed, when, in fact, he was taking the money. Pearson pleaded guilty on August 16, 2024, to the Bill of Information charging him with one count of wire fraud.

“Unfortunately, there were over 70 victims who fell prey to Pearson’s schemes and lies in connection with this case and many are left without their life savings and retirement as a result of his selfish actions,” said Acting U.S. Attorney Alexander C. Van Hook. “This defendant conned many people for years, but his actions have finally caught up with him. This sentence should send a message that if you commit this type of fraud, you will go to prison.”

“Mr. Pearson abused the trust of his clients for the benefit of himself and his family,” said Special Agent in Charge Lyonel Myrthil of FBI New Orleans. “The FBI will continue to work with partners like the Louisiana Office of Financial Institutions to bring justice to people who are victimized in cases like this.”

The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Seth D. Reeg. The Louisiana Office of Financial Institutions was also involved in the investigation.

# # #

MIL Security OSI –

January 31, 2025

MIL-OSI: Waldencast plc Announces Upcoming Earnings Release and Conference Call Dates

Source: GlobeNewswire (MIL-OSI)

LONDON, Jan. 30, 2025 (GLOBE NEWSWIRE) — Waldencast plc, (NASDAQ: WALD) (“Waldencast”), a global multi-brand beauty and wellness platform, announced upcoming earnings release, conference call and webcast information for the fourth quarter and full fiscal year 2024 and first, second, and third quarters of fiscal year 2025. The webcasts will be available on the Investor Relations page on the company’s website at https://ir.waldencast.com/ approximately 2 weeks prior to the events.

For the fourth quarter and full fiscal year 2024, the Company plans to issue a press release detailing its financial performance after the U.S. stock market closes on Tuesday, March 18^th, 2025. The Company’s management team will conduct a conference call and webcast including a slide presentation to discuss its results, strategy and outlook on Wednesday, March 19^th, 2025 at 8:30am ET.

For the first quarter of fiscal 2025, the Company plans to issue a press release detailing its financial performance after the U.S. stock market closes on Tuesday, May 13^th, 2025. The Company’s management team will conduct a conference call and webcast including a slide presentation to discuss its results, strategy and outlook on Wednesday, May 14^th, 2025 at 8:30am ET.

For the second quarter of fiscal 2025, the Company plans to issue a press release detailing its financial performance after the U.S. stock market closes on Monday, August 18^th, 2025. The Company’s management team will conduct a conference call and webcast including a slide presentation to discuss its results, strategy and outlook on Tuesday, August 19^th, 2025 at 8:30am ET.

For the third quarter of fiscal 2025, the Company plans to issue a press release detailing its financial performance after the U.S. stock market closes on Tuesday, November 11^th, 2025. The Company’s management team will conduct a conference call and webcast including a slide presentation to discuss its results, strategy and outlook on Wednesday, November 12^th, 2025 at 8:30am ET.

About Waldencast

Founded by Michel Brousset and Hind Sebti, Waldencast’s ambition is to build a global best-in-class beauty and wellness operating platform by developing, acquiring, accelerating, and scaling conscious, high-growth purpose-driven brands. Waldencast’s vision is fundamentally underpinned by its brand-led business model that ensures proximity to its customers, business agility, and market responsiveness, while maintaining each brand’s distinct DNA. The first step in realizing its vision was the business combination with Obagi Skincare and Milk Makeup. As part of the Waldencast platform, its brands will benefit from the operational scale of a multi-brand platform; the expertise in managing global beauty brands at scale; a balanced portfolio to mitigate category fluctuations; asset light efficiency; and the market responsiveness and speed of entrepreneurial indie brands. For more information please visit: https://ir.waldencast.com/.

Contacts

Investors
ICR
Allison Malkin
investors@waldencast.com

Media
ICR
Brittney Fraser/Alecia Pulman
waldencast@icrinc.com

The MIL Network –

January 31, 2025

MIL-OSI: AppFolio, Inc. Announces Fourth Quarter and Fiscal Year 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

SANTA BARBARA, Calif., Jan. 30, 2025 (GLOBE NEWSWIRE) — AppFolio, Inc. (NASDAQ: APPF) (“AppFolio” or the “Company”), a technology leader powering the future of the real estate industry, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2024.

“I am proud of our strong performance in 2024 as we continue to deliver value to our customers through differentiated industry-leading innovation,” said Shane Trigg, President and CEO, AppFolio. “Our investments in AI and the resident experience are translating into meaningful outcomes for our customers and fueling our mission to build the platform where the real estate industry comes to do business. We are acquiring, growing, and retaining customers while delivering exceptional service.”

Financial Highlights for Fourth Quarter of 2024

Revenue grew 19% year-over-year to $204 million.
Total units under management grew 6% year-over-year to 8.7 million.
GAAP operating income was $23 million, or 11.3% of revenue, compared to operating income of $28 million, or 16.4% of revenue in Q4 2023.
Non-GAAP operating income was $41 million, or 20.2% of revenue, compared to an operating income of $42 million, or 24.3% of revenue, in Q4 2023.
Net cash provided by operating activities was $37 million, or 18.0% of revenue, compared to $31 million, or 18.1% of revenue, in Q4 2023.
Non-GAAP free cash flow was $35 million, or 17.3% of revenue, compared to $34 million, or 19.9% of revenue, in Q4 2023.

Financial Highlights for Fiscal Year 2024

Revenue grew 28% year-over-year to $794 million.
GAAP operating income was $136 million, or 17.1% of revenue, compared to operating income of $1 million, or 0.2% of revenue, in fiscal year 2023.
Non-GAAP operating income was $200 million, or 25.2% of revenue, compared to operating income of $76 million, or 12.2% of revenue, in fiscal year 2023.
Net cash provided by operating activities was $188 million, or 23.7% of revenue, compared to $60 million, or 9.7% of revenue, in fiscal year 2023.
Non-GAAP free cash flow was $182 million, or 22.9% of revenue, compared to $74 million, or 11.9% of revenue, in fiscal year 2023.

Financial Outlook
Based on information available as of January 30, 2025, AppFolio’s outlook for fiscal year 2025 follows:

Full year revenue is expected to be in the range of $920 million to $940 million.
Full year non-GAAP operating margin as a percentage of revenue is expected to be in the range of 24.5% to 26.5%.
Diluted weighted average shares outstanding are expected to be approximately 37 million for the full year.

Conference Call Information
As previously announced, the Company will host a conference call today, January 30, 2025, at 2:00 p.m. Pacific Time (PT), 5:00 p.m. Eastern Time (ET), to discuss the Company’s fourth quarter and fiscal year 2024 financial results. A live webcast of the call will be available at: https://edge.media-server.com/mmc/p/ed7u6ptp/. To access the call by phone, please go to the following link: https://register.vevent.com/register/BIdc9c20754ec649859552be5efc7cfa83, and you will be provided with dial in details. A replay of the webcast will also be available for a limited time on AppFolio’s Investor Relations website at https://ir.appfolioinc.com/news-events/events.

The Company also provides announcements regarding its financial results and other matters, including SEC filings, investor events, and press releases, on its Investor Relations website at https://ir.appfolioinc.com/, as a means of disclosing material nonpublic information and for complying with AppFolio’s disclosure obligations under Regulation FD.

About AppFolio
AppFolio is a technology leader powering the future of the real estate industry. Our innovative platform and trusted partnership enable our customers to connect communities, increase operational efficiency, and grow their business. For more information about AppFolio, visit ir.appfolioinc.com.

Investor Relations Contact:
Lori Barker
ir@appfolio.com

Use of Non-GAAP Financial Measures
Reconciliations of current and historical non-GAAP financial measures to AppFolio’s financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables entitled “Statement Regarding the Use of Non-GAAP Financial Measures.”

AppFolio is unable, at this time, to provide GAAP equivalent guidance measures on a forward-looking basis for non-GAAP operating margin because certain items that impact this measure are uncertain, out of our control, or cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.

Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements are subject to considerable risks and uncertainties. Forward-looking statements include all statements that are not statements of historical fact contained in this press release, and can be identified by words such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “future’” “predicts, “projects,” “target,” “seeks,” “contemplates,” “should,” “will,” “would” or similar expressions and the negatives of those expressions. In particular, forward-looking statements contained in this press release relate to future operating results and financial position, including the Company’s fiscal year 2025 financial outlook, anticipated future expenses and investments, the Company’s business opportunities, the impact of the Company’s strategic actions and initiatives, the potential benefits and effect of the Company’s AI and resident experience related services and their impact on the Company’s plans, objectives, expectations and capabilities.

Forward-looking statements represent AppFolio’s current beliefs and expectations based on information currently available and speak only as of the date the statement is made. Forward-looking statements are subject to numerous known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to materially differ from those expressed or implied by these forward-looking statements include those risks, uncertainties and other factors described in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 1, 2024, and the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recently filed Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as well as in the Company’s other filings with the SEC. You should read this press release with the understanding that the Company’s actual future results may be materially different from the results expressed or implied by these forward-looking statements.

The Company undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands)
	December 31, 2024		December 31, 2023
Assets
Current assets
Cash and cash equivalents	$	42,504	$	49,509
Investment securities—current		235,745		162,196
Accounts receivable, net		24,346		20,709
Prepaid expenses and other current assets		32,807		39,943
Total current assets		335,402		272,357
Property and equipment, net		24,483		28,362
Operating lease right-of-use assets		17,472		19,285
Capitalized software development costs, net		15,429		21,562
Goodwill		96,410		56,060
Intangible assets, net		49,057		2,357
Deferred income taxes		76,910		—
Other long-term assets		11,515		8,906
Total assets	$	626,678	$	408,889
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	2,378	$	1,141
Accrued employee expenses		30,157		35,567
Accrued expenses		14,658		21,723
Other current liabilities		16,087		11,335
Total current liabilities		63,280		69,766
Operating lease liabilities		37,476		41,114
Deferred tax liabilities		—		697
Other liabilities		6,632		—
Total liabilities		107,388		111,577
Stockholders’ equity		519,290		297,312
Total liabilities and stockholders’ equity	$	626,678	$	408,889

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share amounts)
	Three Months Ended December 31,					Twelve Months Ended December 31,
		2024			2023		2024			2023
Revenue⁽¹⁾	$	203,664		$	171,830	$	794,202		$	620,445
Costs and operating expenses:
Cost of revenue (exclusive of depreciation and amortization)⁽²⁾		76,189			61,275		282,067			238,076
Sales and marketing⁽²⁾		33,436			21,501		110,597			107,602
Research and product development⁽²⁾		42,296			34,847		160,375			151,364
General and administrative⁽²⁾		23,449			19,035		85,974			93,452
Depreciation and amortization		5,336			6,933		19,545			28,988
Total costs and operating expenses		180,706			143,591		658,558			619,482
Income from operations		22,958			28,239		135,644			963
Other income, net		697			286		697			3
Interest income, net		3,499			2,404		13,981			7,031
Income before provision for income taxes		27,154			30,929		150,322			7,997
(Benefit from) provision for income taxes		(75,580	)		661		(53,746	)		5,295
Net income	$	102,734		$	30,268	$	204,068		$	2,702
Net income per common share:
Basic	$	2.82		$	0.85	$	5.63		$	0.08
Diluted	$	2.79		$	0.83	$	5.55		$	0.07
Weighted average common shares outstanding
Basic		36,374			35,812		36,252			35,629
Diluted		36,783			36,596		36,782			36,417

⁽¹⁾ The following table presents our revenue categories:

	Three Months Ended December 31,				Twelve Months Ended December 31,
		2024		2023		2024		2023
Core solutions	$	47,631	$	41,252	$	180,605	$	156,692
Value Added Services		153,334		127,990		605,011		454,098
Other		2,699		2,588		8,586		9,655
Total revenue	$	203,664	$	171,830	$	794,202	$	620,445

⁽²⁾ Includes stock-based compensation expense as follows:

	Three Months Ended December 31,				Twelve Months Ended December 31,
		2024		2023		2024		2023
Costs and operating expenses:
Cost of revenue (exclusive of depreciation and amortization)	$	1,261	$	798	$	4,522	$	3,703
Sales and marketing		2,746		1,081		8,030		5,983
Research and product development		5,789		5,123		25,414		20,974
General and administrative		6,228		5,430		22,361		21,704
Total stock-based compensation expense	$	16,024	$	12,432	$	60,327	$	52,364

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands)
	Three Months Ended December 31,						Twelve Months Ended December 31,
		2024			2023			2024			2023
Cash from operating activities
Net income (loss)	$	102,734		$	30,268		$	204,068		$	2,702
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		4,986			6,385			17,790			26,500
Amortization of operating lease right-of-use assets		489			514			2,030			2,132
Gain on lease modification		—			—			—			(4,281	)
Deferred income taxes		(76,937	)		(494	)		(76,937	)		(490	)
Stock-based compensation, including as amortized		16,374			12,980			62,081			54,852
Other		(2,074	)		(1,590	)		(8,220	)		(3,108	)
Changes in operating assets and liabilities:
Accounts receivable		1,489			(349	)		(3,383	)		(4,206	)
Prepaid expenses and other assets		3,015			(12,781	)		4,126			(13,493	)
Accounts payable		1,850			(80	)		1,559			(1,565	)
Operating lease liabilities		53			576			(3,143	)		(2,504	)
Accrued expenses and other liabilities		(15,413	)		(4,246	)		(11,812	)		3,744
Net cash provided by operating activities		36,566			31,183			188,159			60,283
Cash from investing activities
Purchases of available-for-sale investments		(51,854	)		(86,821	)		(317,173	)		(195,740	)
Proceeds from sales of available-for-sale investments		9,984			—			9,984			1,013
Proceeds from maturities of available-for-sale investments		76,280			58,130			240,035			152,382
Purchases of property and equipment		(195	)		(3,109	)		(2,016	)		(9,041	)
Capitalization of software development costs		(1,058	)		(1,431	)		(5,170	)		(4,825	)
Proceeds from equity-method investment		—			—			—			629
Cash paid in business acquisition, net of cash acquired		(77,421	)		—			(77,421	)		—
Net cash used in investing activities		(44,264	)		(33,231	)		(151,761	)		(55,582	)
Cash from financing activities
Proceeds from stock option exercises		11			410			3,924			2,595
Tax withholding for net share settlement		(12,226	)		(8,790	)		(47,327	)		(28,556	)
Net cash used in financing activities		(12,215	)		(8,380	)		(43,403	)		(25,961	)
Net decrease in cash, cash equivalents and restricted cash		(19,913	)		(10,428	)		(7,005	)		(21,260	)
Cash, cash equivalents and restricted cash
Beginning of period		62,667			60,187			49,759			71,019
End of period	$	42,754		$	49,759		$	42,754		$	49,759

RECONCILIATION FROM GAAP TO NON-GAAP RESULTS (UNAUDITED) (in thousands, except per share data)
			Three Months Ended December 31,						Twelve Months Ended December 31,
				2024			2023			2024			2023
Costs and operating expenses:
	GAAP cost of revenue (exclusive of depreciation and amortization)		$	76,189		$	61,275		$	282,067		$	238,076
		Stock-based compensation expense		(1,261	)		(798	)		(4,522	)		(3,703	)
		Workforce reduction costs		—			—			—			(2,135	)
	Non-GAAP cost of revenue (exclusive of depreciation and amortization)		$	74,928		$	60,477		$	277,545		$	232,238
	GAAP cost of revenue (exclusive of depreciation and amortization) as a percentage of revenue			37	%		36	%		36	%		38	%
	Non-GAAP cost of revenue (exclusive of depreciation and amortization) as a percentage of revenue			37	%		35	%		35	%		37	%

	GAAP sales and marketing		$	33,436		$	21,501		$	110,597		$	107,602
		Stock-based compensation expense		(2,746	)		(1,081	)		(8,030	)		(5,983	)
		Workforce reduction costs		—			—			—			(3,401	)
	Non-GAAP sales and marketing		$	30,690		$	20,420		$	102,567		$	98,218
	GAAP sales and marketing as a percentage of revenue			16	%		13	%		14	%		17	%
	Non-GAAP sales and marketing as a percentage of revenue			15	%		12	%		13	%		16	%

	GAAP research and product development		$	42,296		$	34,847		$	160,375		$	151,364
		Stock-based compensation expense		(5,789	)		(5,123	)		(25,414	)		(20,974	)
		Workforce reduction costs		—			—			—			(2,635	)
	Non-GAAP research and product development		$	36,507		$	29,724		$	134,961		$	127,755
	GAAP research and product development as a percentage of revenue			21	%		20	%		20	%		24	%
	Non-GAAP research and product development as a percentage of revenue			18	%		17	%		17	%		21	%

	GAAP general and administrative		$	23,449		$	19,035		$	85,974		$	93,452
		Stock-based compensation expense		(6,228	)		(5,430	)		(22,361	)		(21,704	)
		Gain on lease modification		—			—			—			4,281
		CEO separation costs, net		—			—			—			(11,520	)
		Workforce reduction costs		—			—			—			(2,106	)
	Non-GAAP general and administrative		$	17,221		$	13,605		$	63,613		$	62,403
	GAAP general and administrative as a percentage of revenue			12	%		11	%		11	%		15	%
	Non-GAAP general and administrative as a percentage of revenue			8	%		8	%		8	%		10	%

	GAAP depreciation and amortization		$	5,336		$	6,933		$	19,545		$	28,988
		Amortization of stock-based compensation capitalized in software development costs		(350	)		(548	)		(1,754	)		(2,489	)
		Amortization of purchased intangibles		(1,744	)		(619	)		(2,100	)		(2,476	)
	Non-GAAP depreciation and amortization		$	3,242		$	5,766		$	15,691		$	24,023
	GAAP depreciation and amortization as a percentage of revenue			3	%		4	%		2	%		5	%
	Non-GAAP depreciation and amortization as a percentage of revenue			2	%		3	%		2	%		4	%

			Three Months Ended December 31,						Twelve Months Ended December 31,
				2024			2023			2024			2023
Income from operations:
	GAAP income from operations		$	22,958		$	28,239		$	135,644		$	963
		Stock-based compensation expense		16,024			12,432			60,327			52,364
		Amortization of stock-based compensation capitalized in software development costs		350			548			1,754			2,489
		Amortization of purchased intangibles		1,744			619			2,100			2,476
		Gain on lease modification		—			—			—			(4,281	)
		CEO separation costs, net		—			—			—			11,520
		Workforce reduction costs		—			—			—			10,278
	Non-GAAP income from operations		$	41,076		$	41,838		$	199,825		$	75,809

Operating margin:
	GAAP operating margin			11.3	%		16.4	%		17.1	%		0.2	%
		Stock-based compensation expense as a percentage of revenue		7.8			7.2			7.6			8.4
		Amortization of stock-based compensation capitalized in software development costs as a percentage of revenue		0.2			0.3			0.2			0.4
		Amortization of purchased intangibles as a percentage of revenue		0.9			0.4			0.3			0.4
		Gain on lease modification as a percentage of revenue		—			—			—			(0.7	)
		CEO separation costs, net as a percentage of revenue		—			—			—			1.9
		Workforce reduction costs as a percentage of revenue		—			—			—			1.8
	Non-GAAP operating margin			20.2	%		24.3	%		25.2	%		12.2	%

Net income (loss):
	GAAP net income		$	102,734		$	30,268		$	204,068		$	2,702
		Stock-based compensation expense		16,024			12,432			60,327			52,364
		Amortization of stock-based compensation capitalized in software development costs		350			548			1,754			2,489
		Amortization of purchased intangibles		1,744			619			2,100			2,476
		Gain on lease modification		—			—			—			(4,281	)
		CEO separation costs, net		—			—			—			11,520
		Workforce reduction costs		—			—			—			10,278
		Income tax effect of adjustments		(86,898	)		(11,556	)		(107,372	)		(15,415	)
	Non-GAAP net income		$	33,954		$	32,311		$	160,877		$	62,133

Net income per share, basic:
	GAAP net income per share, basic		$	2.82		$	0.85		$	5.63		$	0.08
		Non-GAAP adjustments to net income		(1.89	)		0.05			(1.19	)		1.66
	Non-GAAP net income per share, basic		$	0.93		$	0.90		$	4.44		$	1.74

Net income per share, diluted:
	GAAP net income per share, diluted		$	2.79		$	0.83		$	5.55		$	0.07
		Non-GAAP adjustments to net income		(1.87	)		0.05			(1.18	)		1.64
	Non-GAAP net income per share, diluted		$	0.92		$	0.88		$	4.37		$	1.71

	Weighted-average shares used in GAAP per share calculation
		Basic		36,374			35,812			36,252			35,629
		Diluted		36,783			36,596			36,782			36,417

	Weighted-average shares used in non-GAAP per share calculation
		Basic		36,374			35,812			36,252			35,629
		Diluted		36,783			36,596			36,782			36,417

			Three Months Ended December 31,						Twelve Months Ended December 31,
				2024			2023			2024			2023
Free cash flow:
	GAAP net cash provided by operating activities		$	36,566		$	31,183		$	188,159		$	60,283
		Purchases of property and equipment		(195	)		(3,109	)		(2,016	)		(9,041	)
		Capitalized software development costs		(1,058	)		(1,431	)		(5,170	)		(4,825	)
		CEO separation costs payment		—			—			—			14,926
		Partial lease termination payment		—			—			—			2,851
		Severance payments for workforce reduction		—			7,624			566			9,425
	Non-GAAP free cash flow		$	35,313		$	34,267		$	181,539		$	73,619

Free cash flow margin:
	GAAP net cash provided by operating activities as a percentage of revenue			18.0	%		18.1	%		23.7	%		9.7	%
		Purchases of property and equipment as a percentage of revenue		(0.1	)		(1.8	)		(0.3	)		(1.4	)
		Capitalized software development costs as a percentage of revenue		(0.6	)		(0.8	)		(0.6	)		(0.8	)
		CEO separation costs payment as a percentage of revenue		—			—			—			2.4
		Partial lease termination payment as a percentage of revenue		—			—			—			0.5
		Severance payments for workforce reduction as a percentage of revenue		—			4.4			0.1			1.5
	Non-GAAP free cash flow margin			17.3	%		19.9	%		22.9	%		11.9	%

Statement Regarding the Use of Non-GAAP Financial Measures

We use the following non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

Non-GAAP presentation of income (loss) from operations, costs and operating expenses, operating margin, net income (loss), and net income (loss) per share. These measures exclude certain non-cash or non-recurring items, including stock-based compensation expense, amortization of stock-based compensation capitalized in software development costs, amortization of purchased intangibles, CEO separation costs, net, gain on lease modification, workforce reduction costs, and the related income tax effect of these adjustments, as applicable and described below. Non-GAAP operating margin is calculated as non-GAAP operating income (loss) from operations as a percentage of revenue.

Non-GAAP free cash flow. Non-GAAP free cash flow is defined as net cash from operating activities, less purchases of property and equipment, capitalization of software development costs, payments for separation costs and lease termination payments and severance payments for workforce reduction. We use free cash flow to evaluate our generation of cash from operations that is available for purposes other than capital expenditures and capitalized software development costs. Additionally, we believe that information regarding free cash flow provides investors with a perspective on the cash available to fund ongoing operations. We review cash flows generated from operations after taking into consideration capital expenditures and the capitalization of software development costs due to the fact that these expenditures are considered to be a necessary component of ongoing operations. Free cash flow margin is calculated as free cash flow as a percentage of revenue.

We use each of these non-GAAP financial measures internally to assess and compare operating results across reporting periods, for internal budgeting and forecasting purposes, and to evaluate our financial performance. We believe these adjustments also provide useful supplemental information to investors and facilitate the analysis of our operating results and comparison of operating results across reporting periods.

In particular, we believe these non-GAAP financial measures are useful to investors and others in assessing our operating performance due to the following factors:

Stock-based compensation expense and amortization of stock-based compensation capitalized in software development costs. We utilize stock-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of our stockholders while ensuring long-term retention, rather than to address operational performance for any particular period. As a result, stock-based compensation expenses, which include costs related to our workforce reduction, vary for reasons that are generally unrelated to financial and operational performance in any particular period.

Amortization of purchased intangibles. We view amortization of purchased intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of purchased intangibles is an expense that is not typically affected by operations during any particular period.

CEO separation costs, net. We incurred one-time separation costs associated with our former Chief Executive Officer’s Transition and Separation Agreement, dated March 1, 2023. We have excluded these costs, as we do not consider such amounts to be part of the ongoing operation of our business.

Gain on lease modification. In January 2023 and June 2023, we amended our San Diego lease. We have excluded any gain related to the remeasurement of the lease liability, as we do not consider such amounts to be part of the ongoing operation of our business.

Workforce reduction costs. We incurred one-time severance and related personnel costs associated with our workforce reduction in the third quarter of 2023. We have excluded these costs, along with the subsequent cash payments, as we do not consider such amounts to be part of the ongoing operation of our business.

Income tax effects of adjustments. We utilize a fixed long-term projected tax rate in our computation of non-GAAP income tax effects to provide better consistency across interim reporting periods. In projecting this long-term non-GAAP tax rate, we utilize a financial projection that excludes the direct impact of other non-GAAP adjustments. The projected rate, which we have determined to be 25%, considers other factors such as our current operating structure, existing tax positions in various jurisdictions, and key legislation in major jurisdictions where we operate. We periodically re-evaluate this tax rate, as necessary, for significant events, based on relevant tax law changes, and material changes in the forecasted geographic earnings mix.

Our non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and can exclude expenses that may have a material impact on our reported financial results. As such, non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the tables above. We encourage investors to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures.

The MIL Network –

January 31, 2025

MIL-OSI: AMSC to Report Third Quarter Fiscal Year 2024 Financial Results on February 5, 2025

Source: GlobeNewswire (MIL-OSI)

AYER, Mass., Jan. 30, 2025 (GLOBE NEWSWIRE) — AMSC^® (NASDAQ: AMSC), a leading system provider of megawatt-scale power resiliency solutions that orchestrate the rhythm and harmony of power on the grid™ and protect and expand the capability of our Navy’s fleet, announced today that it plans to release its third quarter fiscal year 2024 financial results after the market close on Wednesday, February 5, 2025. In conjunction with this announcement, AMSC management will participate in a conference call with investors and covering analysts beginning at 10:00 a.m. Eastern Time on Thursday, February 6, 2025. On this call, management will discuss the Company’s recent accomplishments, financial results, and business outlook.

Those who wish to listen to the live or archived conference call webcast should visit the “Investors” section of the Company’s website at https://www.amsc.com. The live call can be accessed 15 minutes prior to the scheduled start time by dialing 1-844-481-2802 or 1-412-317-0675 and asking to join the AMSC call.

A replay of the call may be accessed 2 hours following the call by dialing 1-877-344-7529 and using conference passcode 9514460.

About AMSC (Nasdaq: AMSC)

AMSC generates the ideas, technologies and solutions that meet the world’s demand for smarter, cleaner … better energy™. Through its Gridtec™ Solutions, AMSC provides the engineering planning services and advanced grid systems that optimize network reliability, efficiency and performance. Through its Marinetec™ Solutions, AMSC provides ship protection systems and is developing propulsion and power management solutions designed to help fleets increase system efficiencies, enhance power quality and boost operational safety. Through its Windtec^® Solutions, AMSC provides wind turbine electronic controls and systems, designs and engineering services that reduce the cost of wind energy. The Company’s solutions are enhancing the performance and reliability of power networks, increasing the operational safety of navy fleets, and powering gigawatts of renewable energy globally. Founded in 1987, AMSC is headquartered near Boston, Massachusetts with operations in Asia, Australia, Europe and North America. For more information, please visit www.amsc.com.

©2024 AMSC. AMSC, American Superconductor, NEPSI, Neeltran, D-VAR, D-VAR VVO, Amperium, Gridtec, Marinetec, Windtec, Orchestrate the Rhythm and Harmony of Power on the Grid and Smarter, Cleaner … Better Energy are trademarks or registered trademarks of American Superconductor Corporation. All other brand names, product names, trademarks, or service marks belong to their respective holders.

The MIL Network –

January 31, 2025

MIL-OSI: Financial Institutions, Inc. Announces Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

WARSAW, N.Y., Jan. 30, 2025 (GLOBE NEWSWIRE) — Financial Institutions, Inc. (NASDAQ: FISI) (the “Company,” “we” or “us”), parent company of Five Star Bank (the “Bank”) and Courier Capital, LLC (“Courier Capital”), today reported financial and operational results for the fourth quarter and year ended December 31, 2024.

These results reflect the Company’s previously disclosed balance sheet restructuring plan, which was executed in December following its successful and oversubscribed underwritten public common stock offering. As part of the restructuring, the Bank sold $653.5 million of available-for-sale (“AFS”) investment securities, which resulted in a pre-tax loss on the sale of securities of $100.2 million in the fourth quarter. The after-tax impact of the loss of approximately $75 million was entirely funded by a portion of the capital raised through the Company’s equity offering that was downstreamed to the Bank. The net proceeds from the pre-tax sale of the securities were reinvested into higher yielding, agency wrapped investment securities.

The Company reported a net loss of $65.7 million in the fourth quarter of 2024, compared to net income of $13.5 million in the third quarter of 2024 and net income of $9.8 million in the fourth quarter of 2023. After preferred dividends, net loss available to common shareholders was $66.1 million, or ($4.02) per diluted share, in the fourth quarter of 2024, compared to net income of $13.1 million, or $0.84 per diluted share, in the third quarter of 2024, and net income of $9.4 million, or $0.61 per diluted share, in the fourth quarter of 2023. The Company recorded a provision for credit losses of $6.5 million in the current quarter, compared to $3.1 million in the linked quarter and $5.3 million in the prior year quarter.

The Company reported a full year 2024 net loss of $24.5 million, compared to net income of $50.3 million in 2023. After preferred dividends, net loss available to common shareholders was $26.0 million, or ($1.66) per diluted share, for 2024 compared to net income available to common shareholders of $48.8 million, or $3.15 per diluted share, in 2023. Provision for credit losses was $6.2 million in 2024 and $13.7 million in 2023.

Fourth Quarter and Full Year 2024 Key Results:

Net interest margin was up to 2.91% for the fourth quarter, up two basis points from the linked quarter and up 13 basis points from the year-ago quarter. Full year net interest margin of 2.86% compares to 2.94% in 2023.
Net interest income of $41.6 million in the fourth quarter of 2024 increased $952 thousand, or 2.3%, and $1.7 million, or 4.4%, from the linked and year-ago quarters, respectively. Full year net interest income of $163.6 million was down $2.1 million, or 1.3%, from 2023.
Total loans were $4.48 billion at December 31, 2024, reflecting an increase of $76.2 million, or 1.7%, during the quarter and an increase of $17.1 million, or 0.4%, during the year. Commercial loans totaled $2.86 billion at December 31, 2024, reflecting an increase of $104.8 million, or 3.8%, during the quarter and an increase of $123.9 million, or 4.5%, during the year.
Total deposits were $5.10 billion at December 31, 2024, down $201.9 million, or 3.8%, from September 30, 2024, primarily due to seasonal public deposit outflows, and down $108.2 million, or 2.1%, from the prior year end, driven by a reduction in brokered deposits.
Provision for credit losses of $6.5 million in the current quarter was driven by a combination of factors, including the impact of loan growth during the period, an increase in net charge-offs relative to the linked quarter, and higher qualitative factors overall.
Allowance for credit losses on loans to total loans was 1.07% at year-end 2024, compared to 1.01% at September 30, 2024 and 1.14% one year prior.
The Company reported stable credit quality metrics, as measured by annual net charge-offs to average loans of 0.20% for both 2024 and 2023.

“Our Company navigated an incredibly dynamic 2024, rising above challenges to execute strategic initiatives that position us well not only heading into 2025, but for years to come. Our successful equity offering in the fourth quarter enabled us to undertake a balance sheet restructuring that is expected to contribute meaningfully to earnings, net interest margin, efficiency ratio, return on average assets and the quality of capital moving forward,” said President and Chief Executive Officer Martin K. Birmingham. “We believe these measures will allow us to accelerate operating performance with minimal downside risk, supporting our plans for continued organic growth.”

“While loan growth was modest in 2024, in part reflecting the intentional reduction of our consumer indirect balances that partially offset commercial growth of 4.5% during the year, we remain enthused about organic growth opportunities in our core markets, as we finished 2024 with a strong fourth quarter from a commercial loan production standpoint, and we remain keenly focused on driving credit-disciplined loan growth to ensure the continued strength and stability of our asset quality metrics.”

Chief Financial Officer and Treasurer W. Jack Plants II added, “As a result of our strategic actions through the course of the year, from the sale of our insurance subsidiary in April, to our successful and oversubscribed equity offering in December, our regulatory and tangible capital positions improved meaningfully and core operations have strong momentum to start 2025. We reported a common equity tier 1 ratio of 10.88%, up 145 basis points, and a tangible common equity ratio of 8.40%, up 240 basis points, both from year-end 2023. The upsizing of our equity offering provides us ample dry powder that we are committed to deploying thoughtfully, in a way that supports our long-term value creation objectives.”

Capital Raise and Subsequent Balance Sheet Restructuring

As previously disclosed, the Company completed an underwritten common stock offering on December 13, 2024. Through the public offering, the Company sold 4,600,000 shares of common stock, 600,000 shares of which were sold pursuant to the exercise of the underwriters’ overallotment option. Net proceeds from the capital raise were approximately $108.5 million.

As expected, a portion of the proceeds was used to fund losses associated with a strategic investment securities restructuring. In late December, the Company completed its previously disclosed balance sheet restructuring plan, through which the Bank sold $653.5 million of AFS securities with a weighted average book yield of 1.74% for a pre-tax loss of $100.2 million. The after-tax impact of the loss was approximately $75 million. The Bank utilized net proceeds from the sale of securities to purchase higher-yielding agency wrapped investment securities with a face value of $566.2 million and a weighted average book yield of 5.16%, coupled with an additional $76.4 million of agency wrapped securities with a weighted average yield of 5.45%. Following the transactions, the AFS portfolio has an average duration of approximately 6.2 years and a tax equivalent yield of 4.25%. The cumulative tangible book value earnback from the restructuring is expected to be approximately 3.75 years.

Net Interest Income and Net Interest Margin

Net interest income was $41.6 million for the fourth quarter of 2024, an increase of $1.0 million from the third quarter of 2024 and an increase of $1.7 million from the fourth quarter of 2023.

Average interest-earning assets for the current quarter were $5.72 billion, an increase of $104.1 million from the third quarter of 2024 due to a $72.1 million increase in the average balance of Federal Reserve interest-earning cash, a $19.2 million increase in average loans and a $12.8 million increase in the average balance of investment securities. Average interest-earning assets for the current quarter were $10.9 million lower than the fourth quarter of 2023 due to a $39.9 million decrease in the average balance of investment securities, partially offset by a $19.0 million increase in the average balance of Federal Reserve interest-earning cash and a $10.0 million increase in average loans.

Average interest-bearing liabilities for the current quarter were $4.48 billion, an increase of $76.0 million from the third quarter of 2024, primarily due to a $65.8 million increase in average interest-bearing demand deposits, a $53.4 million increase in average savings and money market deposits, and a $29.3 million increase in average time deposits, partially offset by a $72.6 million decrease in average short-term borrowings. Average interest-bearing liabilities for the fourth quarter of 2024 were $18.3 million lower than the year-ago quarter, due to a $56.5 million decrease in average savings and money market deposits, a $27.8 million decrease in average borrowings, and a $23.3 million decrease in average interest-bearing demand deposits, partially offset by a $89.2 million increase in average time deposits.

Net interest margin was 2.91% in the current quarter as compared to 2.89% in the third quarter of 2024 and 2.78% in the fourth quarter of 2023. The linked quarter expansion was primarily due to a reduction in funding costs that outpaced a reduction in the average yield on interest-earning assets, reflecting the Federal Reserve interest rate cuts in the latter part of 2024 and the repricing of both loans and deposits, along with a reduction in both the average balance and average rate on short-term borrowings. Expansion from the prior year quarter was due to an increase in the average yield on interest-earning assets, as the overall cost of funds remained flat.

Net interest income was $163.6 million for the full year 2024, down $2.1 million from 2023. Net interest margin was 2.86% for the full year 2024, compared to 2.94% for 2023.

Noninterest (Loss) Income

The Company reported a loss for noninterest income of $91.0 million for the fourth quarter of 2024, compared to noninterest income of $9.4 million in the third quarter of 2024 and $15.4 million in the fourth quarter of 2023.

A net loss on investment securities of $100.1 million was recognized in the fourth quarter of 2024 compared to a net loss of $3.6 million in the fourth quarter of 2023, due to previously disclosed securities portfolio restructurings in both periods.
Investment advisory income of $2.6 million was $242 thousand lower than the third quarter of 2024 and $114 thousand lower than the fourth quarter of 2023.
Given the previously disclosed insurance subsidiary asset sale on April 1, 2024, the Company recorded insurance income of $3 thousand in both the current and linked quarters, and $1.6 million in the year-ago quarter.
Income from company owned life insurance of $1.4 million was flat with the third quarter of 2024 and $7.7 million lower than the fourth quarter of 2023, due to a normalized crediting rate associated with the separate account policies purchased in the fourth quarter of 2023.
Income from investments in limited partnerships of $837 thousand was $437 thousand higher than the third quarter of 2024 and $165 thousand higher than the fourth quarter of 2023. The Company has made several investments in limited partnerships, primarily small business investment companies, and accounts for these investments under the equity method. Income from these investments fluctuates based on the maturity and performance of the underlying investments.

The Company recorded a loss for noninterest income of $46.7 million for the full year 2024, compared to income of $48.2 million in 2023.

A net loss on investment securities of $100.1 million was recognized in 2024, compared to a net loss of $3.6 million in 2023, due to the previously disclosed securities portfolio restructurings in both years.
The Company’s sale of the assets of its insurance subsidiary generated a $13.7 million gain in 2024. The $4.6 million decline in insurance income year-over-year was also attributable to the transaction.
Income from company owned life insurance of $5.5 million was $6.6 million lower than in 2023 due to a normalized crediting rate associated with the separate account policies purchased in the fourth quarter of 2023.

Noninterest Expense

Noninterest expense was $36.4 million in the fourth quarter of 2024, compared to $32.5 million in the third quarter of 2024 and $35.0 million in the fourth quarter of 2023, with the increases over both the linked and prior year periods primarily driven by nonrecurring expenses.

Salaries and employee benefits expense of $17.2 million was $1.3 million higher than the third quarter of 2024 and $683 thousand lower than the fourth quarter of 2023. The increase from the linked quarter was primarily due to a $1.3 million nonrecurring settlement accounting adjustment in the Company’s pension plan. The year-over-year decrease was primarily due to the timing of the insurance subsidiary asset sale and the Company’s previously disclosed fourth quarter 2023 organizational changes.
Computer and data processing expense of $6.6 million was $1.3 million higher than the third quarter of 2024 and $1.0 million higher than the fourth quarter of 2023, due to nonrecurring project related expenses.
FDIC assessments expense of $1.6 million was $459 thousand higher than the linked quarter and $235 thousand higher than the year-ago quarter, primarily due to an increase in the FDIC assessment rate due to the securities loss recognized in the fourth quarter of 2024.
Other expense of $4.2 million was up $837 thousand and $519 thousand from the linked and year-ago quarters, respectively. The increases from both the linked and year-ago periods were due in part to New York State capital base tax, while the timing of charitable contributions also contributed to the linked quarter variance.

Noninterest expense was $155.9 million for the full year 2024, $18.7 million higher than 2023, driven by the Company’s previously disclosed deposit-related fraud event.

Salaries and employee benefits expense of $66.1 million decreased $5.8 million from the prior year, reflective of both the timing of the insurance subsidiary asset sale and previously disclosed fourth quarter 2023 organizational changes.
Computer and data processing expense of $22.7 million was $2.6 million higher than 2023, primarily due to the Company’s investments in data efficiency and marketing technology.
Professional services expense of $7.7 million was $2.4 million higher than 2023, primarily attributable to legal expenses associated with the Company’s previously disclosed fraud event.
Deposit-related charged off items totaled $20.3 million in 2024, up $19.1 million from the prior year, as a result of the previously disclosed fraud matter.
Other expense of $15.3 million was up $1.0 million from 2023, primarily due to the previously mentioned New York State capital base tax.

Income Taxes

Income tax benefit was $26.6 million for the fourth quarter of 2024, reflective of the net loss reported for the period, compared to expense of $1.1 million in the third quarter of 2024, and expense of $5.2 million in the fourth quarter of 2023. During the fourth quarter of 2023, the Company incurred additional taxes of approximately $5.4 million associated with the capital gains of the previously mentioned company owned life insurance surrender coupled with a 10% modified endowment contract penalty that is typical of general account surrenders. The Company also recognized federal and state tax benefits related to tax credit investments placed in service and/or amortized during the fourth quarter of 2024, third quarter of 2024, and fourth quarter of 2023, resulting in income tax expense reductions of $1.2 million, $1.3 million, and $901 thousand, respectively.

The effective tax rate was -28.8% for the fourth quarter of 2024, 7.4% for the third quarter of 2024, and 34.5% for the fourth quarter of 2023. The effective tax rate fluctuates on a quarterly basis primarily due to the level of pre-tax (loss) earnings and may differ from statutory rates because of interest income from tax-exempt securities, earnings on company owned life insurance and the impact of tax credit investments. The effective tax rate for full year 2024 was -45.7%, reflecting the impact of the previously mentioned securities transaction loss, compared to 20.3% in 2023.

Balance Sheet and Capital Management

Total assets were $6.11 billion at December 31, 2024, down $45.1 million from September 30, 2024, and down $49.7 million from December 31, 2023.

Investment securities were $1.03 billion at December 31, 2024, up $19.0 million from September 30, 2024, and down $8.8 million from December 31, 2023.

Total loans were $4.48 billion at December 31, 2024, an increase of $76.2 million, or 1.7%, from September 30, 2024, and an increase of $17.1 million, or 0.4%, from December 31, 2023.

Commercial business loans totaled $665.3 million, up $10.8 million, or 1.7%, from September 30, 2024, and down $70.4 million, or 9.6%, from December 31, 2023.
Commercial mortgage loans totaled $2.20 billion, up $94.0 million, or 4.5%, from September 30, 2024, and up $194.3 million, or 9.7%, from December 31, 2023.
Residential real estate loans totaled $650.2 million, up $2.0 million, or 0.3%, from September 30, 2024, and up $384 thousand, or 0.1%, from December 31, 2023.
Consumer indirect loans totaled $845.8 million, down $28.9 million, or 3.3%, from September 30, 2024, and down $103.1 million, or 10.9%, from December 31, 2023.

Total deposits were $5.10 billion at December 31, 2024, down $201.9 million, or 3.8%, from September 30, 2024, and down $108.2 million, or 2.1%, from December 31, 2023. The decrease from September 30, 2024 was primarily the result of a reduction in brokered deposits between periods as well as seasonal outflows of public and reciprocal deposits. The decrease from December 31, 2023 was driven by a reduction in brokered deposits. Public deposit balances represented 21% of total deposits at December 31, 2024, 22% at September 30, 2024 and 20% at December 31, 2023.

Short-term borrowings were $99.0 million at December 31, 2024, compared to $55.0 million at September 30, 2024 and $185.0 million at December 31, 2023. Short-term borrowings and brokered deposits have historically been utilized to manage the seasonality of public deposits.

Shareholders’ equity was $586.1 million at December 31, 2024, compared to $500.3 million at September 30, 2024, and $454.8 million at December 31, 2023. Both the linked quarter and year-over-year increases were primarily driven by additional paid-in-capital resulting from the common stock capital raise executed in the fourth quarter of 2024 and decreases in accumulated other comprehensive loss between periods following the investment securities restructuring.

Common book value per share was $28.33 at December 31, 2024, a decrease of $2.89, or 9.3%, from $31.22 at September 30, 2024, and a decrease of $0.07, or 0.2%, from $28.40 at December 31, 2023. Tangible common book value per share⁽¹⁾ was $25.31 at December 31, 2024, a decrease of $1.97, or 7.2%, from $27.28 at September 30, 2024, and an increase of $1.62, or 6.8%, from $23.69 at December 31, 2023. Per share data variances were attributable to the higher number of shares outstanding at year-end 2024 as a result of the equity offering. The common equity to assets ratio was 9.31% at December 31, 2024, compared to 7.85% at September 30, 2024, and 7.10% at December 31, 2023. Tangible common equity to tangible assets⁽¹⁾, or the TCE ratio, was 8.40%, 6.93% and 6.00% at December 31, 2024, September 30, 2024, and December 31, 2023, respectively. The increases in both ratios from the comparable dates were attributable to the aforementioned additional capital and the decrease in accumulated other comprehensive loss.

During the fourth quarter of 2024, the Company declared a common stock dividend of $0.30 per common share, consistent with the linked and prior year quarters.

The Company’s regulatory capital ratios at December 31, 2024 improved in comparison to the prior quarter and prior year due in part to the fourth quarter capital raise. All ratios continued to exceed all regulatory capital requirements to be considered well capitalized.

Leverage Ratio was 9.43% compared to 8.98% and 8.18% at September 30, 2024, and December 31, 2023, respectively.
Common Equity Tier 1 Capital Ratio was 10.88% compared to 10.28% and 9.43% at September 30, 2024, and December 31, 2023, respectively.
Tier 1 Capital Ratio was 11.21% compared to 10.62% and 9.76% at September 30, 2024, and December 31, 2023, respectively.
Total Risk-Based Capital Ratio was 13.60% compared to 12.95% and 12.13% at September 30, 2024, and December 31, 2023, respectively.

Credit Quality

Non-performing loans were $41.4 million, or 0.92% of total loans, at December 31, 2024, as compared to $40.7 million, or 0.93% of total loans, at September 30, 2024, and $26.7 million, or 0.60% of total loans, at December 31, 2023. The increase in non-performing loans from December 31, 2023 was primarily driven by one commercial loan relationship that was placed on nonaccrual during the third quarter of 2024. Net charge-offs were $2.8 million, representing 0.25% of average loans on an annualized basis, for the current quarter, as compared to net charge-offs of $1.7 million, or an annualized 0.15% of average loans, in the third quarter of 2024 and net charge-offs of $4.2 million, or an annualized 0.38%, in the fourth quarter of 2023.

At December 31, 2024, the allowance for credit losses on loans to total loans ratio was 1.07%, compared to 1.01% at September 30, 2024 and 1.14% at December 31, 2023.

Provision for credit losses was $6.5 million in the current quarter, compared to $3.1 million in the linked quarter and $5.3 million in the prior year quarter. Provision for credit losses on loans was $6.1 million in the current quarter, compared to $2.4 million in the third quarter of 2024 and $5.7 million in the fourth quarter of 2023. The allowance for unfunded commitments, also included in provision for credit losses as required by the current expected credit loss standard (“CECL”), totaled a provision of $321 thousand in the fourth quarter of 2024, a provision of $713 thousand in the third quarter of 2024, and a credit of $403 thousand in the fourth quarter of 2023. The provision for credit losses for the fourth quarter of 2024 was driven by a combination of factors, including the impact of loan growth during the quarter, an increase in net charge-offs as compared to the third quarter, and higher qualitative factors overall.

The Company has remained strategically focused on the importance of credit discipline, allocating resources to credit and risk management functions as the loan portfolio has grown. The ratio of allowance for credit losses on loans to non-performing loans was 116% at December 31, 2024, 110% at September 30, 2024, and 192% at December 31, 2023, with the year-over-year decrease reflective of the higher level of nonperforming loans reported at year-end.

Subsequent Events

The Company is required, under generally accepted accounting principles, to evaluate subsequent events through the filing of its consolidated financial statements for the year ended December 31, 2024, in its Annual Report on Form 10-K. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of December 31, 2024, and will adjust amounts preliminarily reported, if necessary.

Conference Call

The Company will host an earnings conference call and audio webcast on January 31, 2025 at 8:30 a.m. Eastern Time. The call will be hosted by Martin K. Birmingham, President and Chief Executive Officer, and W. Jack Plants II, Chief Financial Officer and Treasurer. The live webcast will be available in listen-only mode on the Company’s website at www.FISI-investors.com. Within the United States, listeners may also access the call by dialing 1-833-470-1428 and providing the access code 393817. The webcast replay will be available on the Company’s website for at least 30 days.

About Financial Institutions, Inc.

Financial Institutions, Inc. (NASDAQ: FISI) is a financial holding company with approximately $6.1 billion in assets offering banking and wealth management products and services. Its Five Star Bank subsidiary provides consumer and commercial banking and lending services to individuals, municipalities and businesses through banking locations spanning Western and Central New York and a commercial loan production office serving the Mid-Atlantic region. Courier Capital, LLC offers customized investment management, consulting and retirement plan services to individuals, businesses, institutions, foundations and retirement plans. Learn more at Five-StarBank.com and FISI-Investors.com.

Non-GAAP Financial Information

In addition to results presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. A reconciliation of these non-GAAP measures to GAAP measures is included in Appendix A to this document.

The Company believes that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, performance trends and financial position. Our management uses these measures for internal planning and forecasting purposes and we believe that our presentation and discussion, together with the accompanying reconciliations, allows investors, security analysts and other interested parties to view our performance and the factors and trends affecting our business in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP measures, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure to evaluate the Company. Non-GAAP financial measures have inherent limitations, are not uniformly applied and are not audited. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

Safe Harbor Statement

This press release may contain forward-looking statements as defined by Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “believe,” “anticipate,” “continue,” “estimate,” “expect,” “focus,” “forecast,” “intend,” “may,” “plan,” “preliminary,” “should,” “target” or “will.” Statements herein are based on certain assumptions and analyses by the Company and factors it believes are appropriate in the circumstances. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: additional information regarding the deposit fraudulent activity; changes in interest rates; inflation; changes in deposit flows and the cost and availability of funds; the Company’s ability to implement its strategic plan, including by expanding its commercial lending footprint and integrating its acquisitions; whether the Company experiences greater credit losses than expected; whether the Company experiences breaches of its, or third party, information systems; the attitudes and preferences of the Company’s customers; legal and regulatory proceedings and related matters, including any action described in our reports filed with the SEC, could adversely affect us and the banking industry in general; the competitive environment; fluctuations in the fair value of securities in its investment portfolio; changes in the regulatory environment and the Company’s compliance with regulatory requirements; and general economic and credit market conditions nationally and regionally; and the macroeconomic volatility related to global political unrest. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language and risk factors included in the Company’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other documents filed with the SEC. Except as required by law, the Company undertakes no obligation to revise these statements following the date of this press release.

⁽¹⁾ See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.

For additional information contact:
Kate Croft
Director of Investor and External Relations
(716) 817-5159
klcroft@five-starbank.com


FINANCIAL INSTITUTIONS, INC. Selected Financial Information (Unaudited) (Amounts in thousands, except per share amounts)
	2024												2023
SELECTED BALANCE SHEET DATA:	December 31,			September 30,			June 30,			March 31,			December 31,
Cash and cash equivalents	$	87,321		$	249,569		$	146,347		$	237,038		$	124,442
Investment securities:
Available for sale		911,105			886,816			871,635			923,761			887,730
Held-to-maturity, net		116,001			121,279			128,271			143,714			148,156
Total investment securities		1,027,106			1,008,095			999,906			1,067,475			1,035,886
Loans held for sale		2,280			2,495			2,099			504			1,370
Loans:
Commercial business		665,321			654,519			713,947			707,564			735,700
Commercial mortgage–construction		582,619			533,506			518,013			528,694			493,003
Commercial mortgage–multifamily		470,954			467,527			463,171			453,027			452,155
Commercial mortgage–non-owner occupied		857,987			814,392			814,953			798,637			788,515
Commercial mortgage–owner occupied		288,036			290,216			289,733			264,698			271,646
Residential real estate loans		650,206			648,241			647,675			648,160			649,822
Residential real estate lines		75,552			76,203			75,510			75,668			77,367
Consumer indirect		845,772			874,651			894,596			920,428			948,831
Other consumer		42,757			43,734			43,870			45,170			45,100
Total loans		4,479,204			4,402,989			4,461,468			4,442,046			4,462,139
Allowance for credit losses–loans		48,041			44,678			43,952			43,075			51,082
Total loans, net		4,431,163			4,358,311			4,417,516			4,398,971			4,411,057
Total interest-earning assets		5,602,570			5,666,972			5,709,148			5,857,616			5,702,904
Goodwill and other intangible assets, net		60,758			60,867			60,979			72,287			72,504
Total assets		6,111,187			6,156,317			6,131,772			6,298,598			6,160,881
Deposits:
Noninterest-bearing demand		950,351			978,660			939,346			972,801			1,010,614
Interest-bearing demand		705,195			793,996			711,580			798,831			713,158
Savings and money market		1,904,013			2,027,181			2,007,256			2,064,539			2,084,444
Time deposits		1,545,172			1,506,764			1,475,139			1,560,586			1,404,696
Total deposits		5,104,731			5,306,601			5,133,321			5,396,757			5,212,912
Short-term borrowings		99,000			55,000			202,000			133,000			185,000
Long-term borrowings, net		124,842			124,765			124,687			124,610			124,532
Total interest-bearing liabilities		4,405,912			4,507,706			4,520,662			4,681,566			4,511,830
Shareholders’ equity		586,108			500,342			467,667			445,734			454,796
Common shareholders’ equity		568,823			483,050			450,375			428,442			437,504
Tangible common equity ⁽¹⁾		508,065			422,183			389,396			356,155			365,000
Accumulated other comprehensive loss	$	(52,604	)	$	(102,029	)	$	(125,774	)	$	(126,264	)	$	(119,941	)

Common shares outstanding		20,077			15,474			15,472			15,447			15,407
Treasury shares		623			625			627			653			692
CAPITAL RATIOS AND PER SHARE DATA:
Leverage ratio		9.43	%		8.98	%		8.61	%		8.03	%		8.18	%
Common equity Tier 1 capital ratio		10.88	%		10.28	%		10.03	%		9.43	%		9.43	%
Tier 1 capital ratio		11.21	%		10.62	%		10.36	%		9.76	%		9.76	%
Total risk-based capital ratio		13.60	%		12.95	%		12.65	%		12.04	%		12.13	%
Common equity to assets		9.31	%		7.85	%		7.34	%		6.80	%		7.10	%
Tangible common equity to tangible assets ⁽¹⁾		8.40	%		6.93	%		6.41	%		5.72	%		6.00	%

Common book value per share	$	28.33		$	31.22		$	29.11		$	27.74		$	28.40
Tangible common book value per share ⁽¹⁾	$	25.31		$	27.28		$	25.17		$	23.06		$	23.69

^1. See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.


FINANCIAL INSTITUTIONS, INC. Selected Financial Information (Unaudited) (Amounts in thousands, except per share amounts)
	Year Ended						2024												2023
	December 31,						Fourth			Third			Second			First			Fourth
SELECTED INCOME STATEMENT DATA:	2024			2023			Quarter			Quarter			Quarter			Quarter			Quarter
Interest income	$	313,231		$	286,133		$	78,119		$	77,911		$	78,788		$	78,413		$	76,547
Interest expense		149,642			120,418			36,486			37,230			37,595			38,331			36,661
Net interest income		163,589			165,715			41,633			40,681			41,193			40,082			39,886
Provision (benefit) for credit losses		6,150			13,681			6,461			3,104			2,041			(5,456	)		5,271
Net interest income after provision (benefit) for credit losses		157,439			152,034			35,172			37,577			39,152			45,538			34,615
Noninterest (loss) income:
Service charges on deposits		4,233			4,625			1,074			1,103			979			1,077			1,168
Insurance income		2,144			6,708			3			3			4			2,134			1,615
Card interchange income		7,855			8,220			2,045			1,900			2,008			1,902			2,080
Investment advisory		10,713			10,955			2,555			2,797			2,779			2,582			2,669
Company owned life insurance		5,487			12,106			1,425			1,404			1,360			1,298			9,132
Investments in limited partnerships		2,382			1,783			837			400			803			342			672
Loan servicing		716			479			295			88			158			175			84
Income (loss) from derivative instruments, net		726			1,350			(37	)		212			377			174			(68	)
Net gain on sale of loans held for sale		618			566			186			220			124			88			217
Net loss on investment securities		(100,055	)		(3,576	)		(100,055	)		–			–			–			(3,576	)
Net gain (loss) on other assets		13,614			(6	)		(19	)		138			13,508			(13	)		(37	)
Net (loss) gain on tax credit investments		(775	)		(252	)		(636	)		(170	)		406			(375	)		(207	)
Other		5,661			5,286			1,291			1,345			1,508			1,517			1,619
Total noninterest (loss) income		(46,681	)		48,244			(91,036	)		9,440			24,014			10,901			15,368
Noninterest expense:
Salaries and employee benefits		66,126			71,889			17,159			15,879			15,748			17,340			17,842
Occupancy and equipment		14,361			14,798			3,791			3,370			3,448			3,752			3,739
Professional services		7,702			5,259			1,571			1,965			1,794			2,372			1,415
Computer and data processing		22,689			20,110			6,608			5,353			5,342			5,386			5,562
Supplies and postage		1,935			1,873			504			519			437			475			455
FDIC assessments		5,284			4,902			1,551			1,092			1,346			1,295			1,316
Advertising and promotions		1,573			1,926			465			371			440			297			370
Amortization of intangibles		552			910			109			112			114			217			221
Deposit-related charged-off items		20,341			1,201			354			410			398			19,179			223
Restructuring charges		35			114			35			–			–			–			188
Other		15,286			14,243			4,235			3,398			3,953			3,700			3,716
Total noninterest expense		155,884			137,225			36,382			32,469			33,020			54,013			35,047
(Loss) income before income taxes		(45,126	)		63,053			(92,246	)		14,548			30,146			2,426			14,936
Income tax (benefit) expense		(20,604	)		12,789			(26,559	)		1,082			4,517			356			5,156
Net (loss) income		(24,522	)		50,264			(65,687	)		13,466			25,629			2,070			9,780
Preferred stock dividends		1,459			1,459			365			365			364			365			365
Net (loss) income available to common shareholders	$	(25,981	)	$	48,805		$	(66,052	)	$	13,101		$	25,265		$	1,705		$	9,415
FINANCIAL RATIOS:
Earnings (loss) per share–basic	$	(1.66	)	$	3.17		$	(4.02	)	$	0.85		$	1.64		$	0.11		$	0.61
Earnings (loss) per share–diluted	$	(1.66	)	$	3.15		$	(4.02	)	$	0.84		$	1.62		$	0.11		$	0.61
Cash dividends declared on common stock	$	1.20		$	1.20		$	0.30		$	0.30		$	0.30		$	0.30		$	0.30
Common dividend payout ratio		-72.29	%		37.85	%		-7.46	%		35.29	%		18.29	%		272.73	%		49.18	%
Dividend yield (annualized)		4.40	%		5.63	%		4.37	%		4.69	%		6.25	%		6.41	%		5.59	%
Return on average assets (annualized)		-0.40	%		0.83	%		-4.27	%		0.89	%		1.68	%		0.13	%		0.63	%
Return on average equity (annualized)		-5.15	%		11.86	%		-50.51	%		11.08	%		22.93	%		1.83	%		9.28	%
Return on average common equity (annualized)		-5.66	%		12.01	%		-52.54	%		11.18	%		23.51	%		1.57	%		9.31	%
Return on average tangible common equity (annualized) ⁽¹⁾		-6.58	%		14.64	%		-59.82	%		12.87	%		27.51	%		1.88	%		11.37	%
Efficiency ratio ⁽²⁾		71.75	%		62.96	%		71.74	%		64.70	%		50.58	%		105.77	%		59.48	%
Effective tax rate		-45.7	%		20.3	%		-28.8	%		7.4	%		15.0	%		18.7	%		34.5	%

^1. See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure. ^2. The efficiency ratio is calculated by dividing noninterest expense by net revenue, i.e., the sum of net interest income (fully taxable equivalent) and noninterest income before net gains on investment securities. This is a banking industry measure not required by GAAP.


FINANCIAL INSTITUTIONS, INC. Selected Financial Information (Unaudited) (Amounts in thousands)
	Year Ended						2024												2023
	December 31,						Fourth			Third			Second			First			Fourth
SELECTED AVERAGE BALANCES:	2024			2023			Quarter			Quarter			Quarter			Quarter			Quarter
Federal funds sold and interest-earning deposits	$	115,635		$	80,415		$	121,530		$	49,476		$	134,123		$	158,075		$	102,487
Investment securities ⁽¹⁾		1,171,083			1,249,928			1,159,863			1,147,052			1,194,808			1,182,993			1,199,766
Loans:
Commercial business		689,585			698,861			658,038			673,830			704,272			722,720			702,222
Commercial mortgage–construction		509,461			364,967			558,200			513,768			495,177			470,115			438,768
Commercial mortgage–multifamily		465,244			461,954			458,691			467,801			466,501			468,028			467,226
Commercial mortgage–non-owner occupied		837,495			837,860			843,034			826,275			837,209			843,526			840,226
Commercial mortgage–owner occupied		270,646			243,574			288,502			285,061			260,495			248,172			249,013
Residential real estate loans		648,604			612,767			649,549			647,844			648,099			648,921			640,955
Residential real estate lines		75,951			76,350			76,164			75,671			75,575			76,396			76,741
Consumer indirect		894,720			997,538			858,854			881,133			905,056			934,380			965,571
Other consumer		45,790			28,741			43,333			43,789			44,552			51,535			43,664
Total loans		4,437,496			4,322,612			4,434,365			4,415,172			4,436,936			4,463,793			4,424,386
Total interest-earning assets		5,724,214			5,652,955			5,715,758			5,611,700			5,765,867			5,804,861			5,726,639
Goodwill and other intangible assets, net		64,247			72,965			60,824			60,936			62,893			72,409			72,628
Total assets		6,129,414			6,025,383			6,121,385			6,018,390			6,153,429			6,225,760			6,127,190
Interest-bearing liabilities:
Interest-bearing demand		734,731			818,541			757,221			691,412			741,006			749,512			780,546
Savings and money market		2,012,215			1,781,776			1,992,360			1,938,935			2,036,772			2,081,815			2,048,822
Time deposits		1,511,507			1,477,596			1,545,071			1,515,745			1,505,665			1,479,133			1,455,867
Short-term borrowings		126,192			186,910			56,513			129,130			140,110			179,747			84,587
Long-term borrowings, net		124,679			121,903			124,795			124,717			124,640			124,562			124,484
Total interest-bearing liabilities		4,509,324			4,386,726			4,475,960			4,399,939			4,548,193			4,614,769			4,494,306
Noninterest-bearing demand deposits		953,341			1,030,648			947,127			952,970			950,819			962,522			1,006,465
Total deposits		5,211,794			5,108,561			5,241,779			5,099,062			5,234,262			5,272,982			5,291,700
Total liabilities		5,652,983			5,601,697			5,603,999			5,535,112			5,703,929			5,770,725			5,708,861
Shareholders’ equity		476,431			423,686			517,386			483,278			449,500			455,035			418,329
Common equity		459,139			406,394			500,096			465,986			432,208			437,743			401,037
Tangible common equity ⁽²⁾		394,892			333,429			439,272			405,050			369,315			365,334			328,409
Common shares outstanding:
Basic		15,683			15,376			16,415			15,464			15,444			15,403			15,393
Diluted		15,683			15,475			16,415			15,636			15,556			15,543			15,511
SELECTED AVERAGE YIELDS: (Tax equivalent basis)
Investment securities ⁽³⁾		2.20	%		1.92	%		2.38	%		2.14	%		2.17	%		2.09	%		2.03	%
Loans		6.36	%		5.98	%		6.28	%		6.42	%		6.40	%		6.33	%		6.21	%
Total interest-earning assets		5.48	%		5.07	%		5.45	%		5.53	%		5.50	%		5.43	%		5.32	%
Interest-bearing demand		1.18	%		0.87	%		1.34	%		1.05	%		1.18	%		1.11	%		1.26	%
Savings and money market		3.03	%		2.32	%		2.94	%		3.07	%		3.01	%		3.08	%		3.01	%
Time deposits		4.66	%		3.98	%		4.53	%		4.72	%		4.72	%		4.68	%		4.57	%
Short-term borrowings		2.67	%		3.69	%		0.15	%		2.64	%		2.75	%		3.42	%		1.38	%
Long-term borrowings, net		5.03	%		5.06	%		5.03	%		5.03	%		5.02	%		5.02	%		5.05	%
Total interest-bearing liabilities		3.32	%		2.75	%		3.24	%		3.37	%		3.32	%		3.34	%		3.24	%
Net interest rate spread		2.16	%		2.32	%		2.21	%		2.16	%		2.18	%		2.09	%		2.08	%
Net interest margin		2.86	%		2.94	%		2.91	%		2.89	%		2.87	%		2.78	%		2.78	%

^1. Includes investment securities at adjusted amortized cost. ^2. See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure. ^3. The interest on tax-exempt securities is calculated on a tax-equivalent basis assuming a Federal income tax rate of 21%.


FINANCIAL INSTITUTIONS, INC. Selected Financial Information (Unaudited) (Amounts in thousands)
	Year Ended						2024												2023
	December 31,						Fourth			Third			Second			First			Fourth
ASSET QUALITY DATA:	2024			2023			Quarter			Quarter			Quarter			Quarter			Quarter
Allowance for Credit Losses – Loans
Beginning balance	$	51,082		$	45,413		$	44,678		$	43,952		$	43,075		$	51,082		$	49,630
Net loan charge-offs (recoveries):
Commercial business		98			(109	)		131			(3	)		7			(37	)		(50	)
Commercial mortgage–construction		–			980			–			–			–			–			980
Commercial mortgage–multifamily		12			–			–			13			–			–			–
Commercial mortgage–non-owner occupied		(8	)		(875	)		(5	)		(1	)		(1	)		(1	)		13
Commercial mortgage–owner occupied		(4	)		(70	)		(1	)		(2	)		(2	)		–			–
Residential real estate loans		95			89			(4	)		(1	)		96			4			22
Residential real estate lines		–			41			–			–			–			–			–
Consumer indirect		7,927			7,595			2,557			1,553			844			2,973			3,174
Other consumer		566			893			100			106			178			182			82
Total net charge-offs (recoveries)		8,686			8,544			2,778			1,665			1,122			3,121			4,221
Provision for credit losses – loans		5,645			14,213			6,141			2,391			1,999			(4,886	)		5,673
Ending balance	$	48,041		$	51,082		$	48,041		$	44,678		$	43,952		$	43,075		$	51,082

Net charge-offs (recoveries) to average loans (annualized):
Commercial business		0.01	%		-0.02	%		0.80	%		0.00	%		0.00	%		-0.02	%		-0.03	%
Commercial mortgage–construction		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.20	%
Commercial mortgage–multifamily		0.00	%		0.00	%		0.00	%		0.01	%		0.00	%		0.00	%		0.00	%
Commercial mortgage–non-owner occupied		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Commercial mortgage–owner occupied		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Residential real estate loans		0.01	%		0.01	%		0.00	%		0.00	%		0.06	%		0.00	%		0.01	%
Residential real estate lines		0.00	%		0.05	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Consumer indirect		0.89	%		0.76	%		1.18	%		0.70	%		0.38	%		1.28	%		1.30	%
Other consumer		1.23	%		3.11	%		0.91	%		0.95	%		1.62	%		1.41	%		0.75	%
Total loans		0.20	%		0.20	%		0.25	%		0.15	%		0.10	%		0.28	%		0.38	%

Supplemental information ⁽¹⁾
Non-performing loans:
Commercial business	$	5,609		$	5,664		$	5,609		$	5,752		$	5,680		$	5,956		$	5,664
Commercial mortgage–construction		20,280			5,320			20,280			20,280			4,970			5,320			5,320
Commercial mortgage–multifamily		–			189			–			71			183			185			189
Commercial mortgage–non-owner occupied		4,773			4,651			4,773			4,903			4,919			4,929			4,651
Commercial mortgage–owner occupied		354			403			354			366			380			392			403
Residential real estate loans		6,918			6,364			6,918			5,790			5,961			6,797			6,364
Residential real estate lines		253			221			253			232			183			235			221
Consumer indirect		3,157			3,814			3,157			3,291			2,897			2,880			3,814
Other consumer		62			34			62			57			36			36			34
Total non-performing loans		41,406			26,660			41,406			40,742			25,209			26,730			26,660
Foreclosed assets		60			142			60			109			63			140			142
Total non-performing assets	$	41,466		$	26,802		$	41,466		$	40,851		$	25,272		$	26,870		$	26,802

Total non-performing loans to total loans		0.92	%		0.60	%		0.92	%		0.93	%		0.57	%		0.60	%		0.60	%
Total non-performing assets to total assets		0.68	%		0.44	%		0.68	%		0.66	%		0.41	%		0.43	%		0.44	%
Allowance for credit losses–loans to total loans		1.07	%		1.14	%		1.07	%		1.01	%		0.99	%		0.97	%		1.14	%
Allowance for credit losses–loans to non-performing loans		116	%		192	%		116	%		110	%		174	%		161	%		192	%

^1. At period end.


FINANCIAL INSTITUTIONS, INC. Appendix A — Reconciliation to Non-GAAP Financial Measures (Unaudited) (In thousands, except per share amounts)
	Year Ended						2024												2023
	December 31,						Fourth			Third			Second			First			Fourth
	2024			2023			Quarter			Quarter			Quarter			Quarter			Quarter
Ending tangible assets:
Total assets							$	6,111,187		$	6,156,317		$	6,131,772		$	6,298,598		$	6,160,881
Less: Goodwill and other intangible assets, net								60,758			60,867			60,979			72,287			72,504
Tangible assets							$	6,050,429		$	6,095,450		$	6,070,793		$	6,226,311		$	6,088,377

Ending tangible common equity:
Common shareholders’ equity							$	568,823		$	483,050		$	450,375		$	428,442		$	437,504
Less: Goodwill and other intangible assets, net								60,758			60,867			60,979			72,287			72,504
Tangible common equity							$	508,065		$	422,183		$	389,396		$	356,155		$	365,000

Tangible common equity to tangible assets ⁽¹⁾								8.40	%		6.93	%		6.41	%		5.72	%		6.00	%

Common shares outstanding								20,077			15,474			15,472			15,447			15,407
Tangible common book value per share ⁽²⁾							$	25.31		$	27.28		$	25.17		$	23.06		$	23.69

Average tangible assets:
Average assets	$	6,129,414		$	6,025,383		$	6,121,385		$	6,018,390		$	6,153,429		$	6,225,760		$	6,127,190
Less: Average goodwill and other intangible assets, net		64,247			72,965			60,824			60,936			62,893			72,409			72,628
Average tangible assets	$	6,065,167		$	5,952,418		$	6,060,561		$	5,957,454		$	6,090,536		$	6,153,351		$	6,054,562

Average tangible common equity:
Average common equity	$	459,139		$	406,394		$	500,096		$	465,986		$	432,208		$	437,743		$	401,037
Less: Average goodwill and other intangible assets, net		64,247			72,965			60,824			60,936			62,893			72,409			72,628
Average tangible common equity	$	394,892		$	333,429		$	439,272		$	405,050		$	369,315		$	365,334		$	328,409

Net (loss) income available to common shareholders	$	(25,981	)	$	48,805		$	(66,052	)	$	13,101		$	25,265		$	1,705		$	9,415
Return on average tangible common equity ⁽³⁾		-6.58	%		14.64	%		-59.82	%		12.87	%		27.51	%		1.88	%		11.37	%

^1. Tangible common equity divided by tangible assets. ^2. Tangible common equity divided by common shares outstanding. ^3. Net income available to common shareholders (annualized) divided by average tangible common equity.

The MIL Network –

January 31, 2025

MIL-OSI: Zoom to Release Financial Results for the Fourth Quarter and Full Fiscal Year 2025

Source: GlobeNewswire (MIL-OSI)

SAN JOSE, Calif., Jan. 30, 2025 (GLOBE NEWSWIRE) — Zoom Communications, Inc. (NASDAQ: ZM) today announced it will release its financial results for the fourth quarter and full fiscal year 2025 on Monday, February 24, 2025, after the market closes.

A live Zoom Webinar of the event can be accessed at 2:00 pm PT / 5:00 pm ET through Zoom’s investor relations website at https://investors.zoom.us. A replay will be available approximately two hours after the conclusion of the live event.

About Zoom
Zoom’s mission is to provide an AI-first work platform for human connection. Reimagine teamwork with Zoom Workplace — Zoom’s open collaboration platform with AI Companion empowers teams to be more productive. Together with Zoom Workplace, Zoom’s Business Services for sales, marketing, and customer experience teams, including Zoom Contact Center, strengthen customer relationships throughout the customer lifecycle. Founded in 2011, Zoom is publicly traded (NASDAQ:ZM) and headquartered in San Jose, California. Get more information at zoom.com.

Public Relations
Colleen Rodriguez
Head of Global PR for Zoom
press@zoom.us

Investor Relations
Charles Eveslage
Head of Investor Relations for Zoom
investors@zoom.us

The MIL Network –

January 31, 2025

MIL-OSI: GSI Technology, Inc. Reports Third Quarter Fiscal 2025 Results

Source: GlobeNewswire (MIL-OSI)

SUNNYVALE, Calif., Jan. 30, 2025 (GLOBE NEWSWIRE) — GSI Technology, Inc. (NASDAQ: GSIT) today reported financial results for its third fiscal quarter ended December 31, 2024.

Summary Financial Results Table (in thousands, except per share amounts)

	Three Months Ended									Nine Months Ended
	Dec. 31, 2024			Sept. 30, 2024			Dec. 31, 2023			Dec. 31, 2024			Dec. 31, 2023
Net revenues	$	5,414		$	4,550		$	5,318		$	14,635		$	16,613
Gross margin (%)		54.0	%		38.6	%		55.9	%		46.7	%		55.2	%
Operating expenses	$	6,978		$	7,341		$	9,660		$	15,400		$	25,082
Operating loss	$	(4,055	)	$	(5,584	)	$	(6,685	)	$	(8,559	)	$	(15,917	)
Net loss	$	(4,029	)	$	(5,458	)	$	(6,601	)	$	(8,409	)	$	(15,766	)
Net loss per share, diluted	$	(0.16	)	$	(0.21	)	$	(0.26	)	$	(0.33	)	$	(0.63	)

Lee-Lean Shu, Chairman and Chief Executive Officer, stated, “In the third quarter, revenue reached $5.4 million, up 2% year-over-year and 19% sequentially. Our core SRAM sales are strengthening as customer orders rebound due to normalized inventory levels and increasing demand from a key customer whose systems are integral to manufacturing leading AI chips. We anticipate this customer to become our largest revenue contributor in fiscal 2025.”

Mr. Shu concluded, “The development of our APU technology is progressing steadily. The Gemini-II chip is on track for a February tape-out with availability in May, aligning with a milestone with the Space Development Agency SBIR. The latest version of Gemini-II takes AI to the next level by combining advanced neural networks with cutting-edge radar imaging technology, like Synthetic Aperture Radar (SAR), designed to tackle important challenges in defense and aerospace. We can leverage Gemini-II’s architecture to accelerate the development of Plato, our next-generation chip, with a cost-effective, faster-to-market strategy. Plato’s ultra-low-power design will target rapidly growing markets for edge AI and large language model solutions. Additionally, increased operational efficiency and SRAM sales improvement position us for stability as we continue to evaluate strategic alternatives.”

Commenting on the outlook for GSI’s fourth quarter of fiscal 2025, Mr. Shu stated, “Our current expectations for the upcoming fourth quarter is for net revenues in a range of $5.4 million to $6.2 million, with gross margin of approximately 55% to 57%.”

Third Quarter Fiscal Year 2025 Summary Financials

The Company reported net revenues of $5.4 million for the third quarter of fiscal 2025, compared to $5.3 million for the third quarter of fiscal 2024 and $4.6 million for the second quarter of fiscal 2025. Gross margin was 54.0% in the third quarter of fiscal 2025 compared to 55.9% in the third quarter of fiscal 2024 and 38.6% in the preceding second quarter of fiscal 2025. The sequential increase in gross margin in the third quarter of fiscal 2025 was primarily due to higher revenue, product mix and severance costs associated with manufacturing workforce reductions in the prior quarter.

In the third quarter of fiscal 2025, sales to Nokia were $239,000, or 4.4% of net revenues, compared to $807,000, or 15.2% of net revenues, in the same period a year ago and $812,000, or 17.8% of net revenues, in the prior quarter. Military/defense sales were 30.0% of third quarter shipments compared to 28.2% of shipments in the comparable period a year ago and 40.2% of shipments in the prior quarter. SigmaQuad sales were 39.1% of third quarter shipments compared to 46.9% in the third quarter of fiscal 2024 and 38.6% in the prior quarter.

Total operating expenses in the third quarter of fiscal 2025 were $7.0 million, compared to $9.7 million in the third quarter of fiscal 2024 and $7.3 million in the prior quarter. Research and development expenses were $4.0 million in the third quarter of fiscal 2025, compared to $7.0 million in the prior-year period and $4.8 million in the prior quarter. Selling, general and administrative expenses were $3.0 million in the quarter ended December 31, 2024, compared to $2.7 million in the prior-year period and $2.6 million in the previous quarter.

Third quarter fiscal 2025 operating loss was $(4.1) million compared to an operating loss of $(6.7) million in the prior-year period and $(5.6) million in the prior quarter. Third quarter fiscal 2025 net loss included interest and other income of $70,000 and a tax provision of $44,000, compared to $155,000 in interest and other income and a tax provision of $71,000 for the same period a year ago. In the preceding second quarter, net loss included interest and other income of $149,000 and a tax provision of $23,000.

Net loss in the third quarter of fiscal 2025 was $(4.0) million, or $(0.16) per diluted share, compared to a net loss of $(6.6) million, or $(0.26) per diluted share, for the third quarter of fiscal 2024 and a net loss of $(5.5) million, or $(0.21) per diluted share, for the second quarter of fiscal 2025.

Total third quarter pre-tax stock-based compensation expense was $429,000 compared to $649,000 in the comparable quarter a year ago and $663,000 in the prior quarter.

At December 31, 2024, the Company had $15.1 million in cash and cash equivalents, compared to $14.4 million at March 31, 2024. Working capital was $17.9 million as of December 31, 2024 versus $19.1 million at March 31, 2024. Stockholders’ equity as of December 31, 2024 was $29.9 million, compared to $36.0 million as of the fiscal year ended March 31, 2024.

Conference Call

Management will conduct a conference call to review the Company’s financial results for the third quarter of fiscal year 2025 and its current outlook for the fourth quarter of fiscal 2025 at 1:30 p.m. Pacific time (4:30 p.m. Eastern Time) today.

To participate in the call, please dial 1-877-407-3982 in the U.S. or 1-201-493-6780 for international approximately 10 minutes prior to the above start time and provide Conference ID 13751185. The call will also be streamed live via the internet at www.gsitechnology.com.

A replay will be available from January 30, 2025, at 7:30 p.m. Eastern Time through February 6, 2025, at 11:59 p.m. Eastern Time by dialing toll-free for the U.S. 1-844-512-2921 or international 1-412-317-6671 and entering pin number 13751185. A webcast of the call will be archived on the Company’s investor relations website under the Events and Presentations tab.

About GSI Technology

Founded in 1995, GSI Technology, Inc. is a leading provider of semiconductor memory solutions. GSI’s resources are focused on bringing new products to market that leverage existing core strengths, including radiation-hardened memory products for extreme environments and Gemini-I, the associative processing unit designed to deliver performance advantages for diverse artificial intelligence applications. GSI Technology is headquartered in Sunnyvale, California, and has sales offices in the Americas, Europe, and Asia. For more information, please visit www.gsitechnology.com.

Forward-Looking Statements

The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding GSI Technology’s expectations, beliefs, intentions, or strategies regarding the future. All forward-looking statements included in this press release are based upon information available to GSI Technology as of the date hereof, and GSI Technology assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a variety of risks and uncertainties, which could cause actual results to differ materially from those projected. These risks include those associated with the normal quarterly and fiscal year-end closing process. Examples of risks that could affect our current expectations regarding future revenues and gross margins include those associated with fluctuations in GSI Technology’s operating results; GSI Technology’s historical dependence on sales to a limited number of customers and fluctuations in the mix of customers and products in any period; global public health crises that reduce economic activity; the rapidly evolving markets for GSI Technology’s products and uncertainty regarding the development of these markets; the need to develop and introduce new products to offset the historical decline in the average unit selling price of GSI Technology’s products; the challenges of rapid growth followed by periods of contraction; intensive competition; delays or unanticipated costs that may be encountered in the development of new products based on our in-place associative computing technology and the establishment of new markets and customer and partner relationships for the sale of such products; and delays or unexpected challenges related to the establishment of customer relationships and orders for GSI Technology’s radiation-hardened and tolerant SRAM products. Many of these risks are currently amplified by and will continue to be amplified by, or in the future may be amplified by, economic and geopolitical conditions, such as changing interest rates, worldwide inflationary pressures, military conflicts and declines in the global economic environment. Further information regarding these and other risks relating to GSI Technology’s business is contained in the Company’s filings with the Securities and Exchange Commission, including those factors discussed under the caption “Risk Factors” in such filings.

Source: GSI Technology, Inc.

Contacts:

Investor Relations:

Hayden IR
Kim Rogers
385-831-7337
kim@haydenir.com

Media Relations:

Finn Partners for GSI Technology
Ricca Silverio
415-348-2724
gsi@finnpartners.com

Company:

GSI Technology, Inc.
Douglas M. Schirle
Chief Financial Officer
408-331-9802

GSI TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)

			Three Months Ended									Nine Months Ended
			Dec. 31,			Sept. 30,			Dec. 31,			Dec. 31,			Dec. 31,
				2024			2024			2023			2024			2023

Net revenues			$	5,414		$	4,550		$	5,318		$	14,635		$	16,613
Cost of goods sold				2,491			2,793			2,343			7,794			7,448

Gross profit				2,923			1,757			2,975			6,841			9,165

Operating expenses:

	Research & development			4,037			4,788			6,976			13,039			16,871
	Selling, general and administrative			2,997			2,553			2,684			8,154			8,211
	Gain from sale of assets			(56	)		–			–			(5,793	)		–
		Total operating expenses		6,978			7,341			9,660			15,400			25,082

Operating loss				(4,055	)		(5,584	)		(6,685	)		(8,559	)		(15,917	)

Interest and other income, net				70			149			155			274			306

Loss before income taxes				(3,985	)		(5,435	)		(6,530	)		(8,285	)		(15,611	)
Provision for income taxes				44			23			71			124			155
Net loss			$	(4,029	)	$	(5,458	)	$	(6,601	)	$	(8,409	)	$	(15,766	)


Net loss per share, basic			$	(0.16	)	$	(0.21	)	$	(0.26	)	$	(0.33	)	$	(0.63	)
Net loss per share, diluted			$	(0.16	)	$	(0.21	)	$	(0.26	)	$	(0.33	)	$	(0.63	)

Weighted-average shares used in
computing per share amounts:

Basic				25,546			25,467			25,256			25,463			25,094
Diluted				25,546			25,467			25,256			25,463			25,094


Stock-based compensation included in the Condensed Consolidated Statements of Operations:

			Three Months Ended									Nine Months Ended
			Dec. 31,			Sept. 30,			Dec. 31,			Dec. 31,			Dec. 31,
				2024			2024			2023			2024			2023

Cost of goods sold			$	50		$	51		$	51		$	157		$	175
Research & development				121			336			325			747			1,080
Selling, general and administrative				258			276			273			846			890
			$	429		$	663		$	649		$	1,750		$	2,145

GSI TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)

	Dec. 31, 2024		March 31, 2024
Cash and cash equivalents	$	15,085	$	14,429
Accounts receivable		3,583		3,118
Inventory		3,885		4,977
Other current assets		1,267		1,954
Assets held for sale		–		5,629
Net property and equipment		883		1,148
Operating lease right-of-use assets		9,858		1,553
Other assets		9,572		9,656
Total assets	$	44,133	$	42,464

Current liabilities	$	5,900	$	5,365
Long-term liabilities		8,300		1,129
Stockholders’ equity		29,933		35,970
Total liabilities and stockholders’ equity	$	44,133	$	42,464

The MIL Network –

January 31, 2025

MIL-OSI: Cipher Mining Announces $50 Million PIPE Investment from SoftBank Group

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Jan. 30, 2025 (GLOBE NEWSWIRE) — Cipher Mining Inc. (NASDAQ:CIFR) (“Cipher” or the “Company”) today announced a $50 million investment from SoftBank Group Corp. (TSE: 9984, “SoftBank”), one of the world’s most prominent investment holding companies. The $50 million PIPE investment will support Cipher’s HPC data center development business and establish SoftBank as a significant primary investor in Cipher.

“We are thrilled to welcome SoftBank as an important investor in Cipher. This investment comes at a pivotal moment in Cipher’s growth trajectory, as the Company continues to attract attention for its pipeline of sites and innovative solutions in industrial-scale data centers. SoftBank’s focus on innovation in technology and AI development aligns with our vision to establish ourselves as a leader in HPC data center development,” said Tyler Page, Cipher’s CEO.

Keefe, Bruyette, & Woods Inc. acted as financial advisor to the Company, and Latham & Watkins LLP acted as legal counsel to the Company.

About Cipher

Cipher is focused on the development and operation of industrial-scale data centers for bitcoin mining and HPC hosting. Cipher aims to be a market leader in innovation, including in bitcoin mining growth, data center construction, and as a hosting partner to the world’s largest HPC companies. To learn more about Cipher, please visit https://www.ciphermining.com/.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws of the United States. Cipher intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release that are not statements of historical fact, such as, statements about Cipher’s beliefs and expectations regarding its planned business model and strategy, its HPC data center development and management plans and objectives, are forward-looking statements and should be evaluated as such. These forward-looking statements generally are identified by the words “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “seeks,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “strategy,” “future,” “forecasts,” “opportunity,” “predicts,” “potential,” “would,” “will likely result,” “continue,” and similar expressions (including the negative versions of such words or expressions).

These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Cipher and its management, are inherently uncertain. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: volatility in the price of Cipher’s securities due to a variety of factors, including changes in the competitive and regulated industry in which Cipher operates, Cipher’s evolving business model and strategy and efforts we may make to modify aspects of its business model or engage in various strategic initiatives, variations in performance across competitors, changes in laws and regulations affecting Cipher’s business, and the ability to implement business plans, forecasts, and other expectations and to identify and realize additional opportunities. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of Cipher’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”), as any such factors may be updated from time to time in Cipher’s other filings with the SEC, including without limitation, Cipher’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Cipher assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Contacts:
Investor Contact:
Courtney Knight
Head of Investor Relations at Cipher Mining
courtney.knight@ciphermining.com

Media Contact:
Ryan Dicovitsky / Kendal Till
Dukas Linden Public Relations
CipherMining@DLPR.com

The MIL Network –

January 31, 2025

MIL-OSI: LPL Financial Announces Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

Fourth Quarter 2024

Key Financial Results:

Net Income was $271 million, translating to diluted earnings per share (“EPS”) of $3.59, up 26% from a year ago
Adjusted EPS* increased 21% year-over-year to $4.25
- Gross profit* increased 22% year-over-year to $1,228 million
- Core G&A* increased 16% year-over-year to $422 million
- Adjusted EBITDA* increased 22% year-over-year to $585 million

Key Business Results:

Total advisory and brokerage assets increased 29% year-over-year to $1.7 trillion
- Advisory assets increased 30% year-over-year to $957 billion
- Advisory assets as a percentage of total assets increased to 55.0%, up from 54.3% a year ago
Total organic net new assets were $68 billion, representing 17% annualized growth
- This included $40 billion of assets from Prudential Advisors (“Prudential”), and $2 billion of assets that off-boarded as part of the previously disclosed planned separation from misaligned large OSJs. Prior to these impacts, organic net new assets were $30 billion, translating to an 8% annualized growth rate
Recruited assets⁽¹⁾were a record of $79 billion
- This included $63 billion of assets from Prudential
Advisor count⁽²⁾was 28,888, up 5,202 sequentially and 6,228 year-over-year
- This included approximately 2,200 advisors from Atria Wealth Solutions, Inc. (“Atria”), and approximately 2,800 advisors from Prudential
Total client cash balances were $55 billion, an increase of $9 billion sequentially and $7 billion year-over-year
- Client cash balances as a percentage of total assets were 3.2%, up from 2.9% in the prior quarter and down from 3.6% a year ago

Key Capital and Liquidity Results:

Corporate cash⁽³⁾was $479 million
Leverage ratio⁽⁴⁾was 1.89x
Share repurchases were $100 million and dividends paid were $23 million

Full Year 2024

Key Financial Results:

Net Income was $1.1 billion, translating to diluted EPS of $14.03, up 2% from a year ago
Adjusted EPS* increased 5% year-over-year to $16.51
- Gross profit* increased 12% year-over-year to $4.50 billion
- Core G&A* increased 11% year-over-year to $1.52 billion
- Adjusted EBITDA* increased 7% year-over-year to $2.22 billion

Key Business & Capital and Liquidity Results:

Total organic net new assets were $141 billion, representing a 10% growth rate, up from 9% in 2023
Recruited assets for the year were a record of $149 billion, up approximately 86% from a year ago
Share repurchases were $170 million and dividends paid were $90 million

Key Updates

Large Institutions:

Prudential: Onboarded the retail wealth management business of Prudential, with $63 billion of total assets, of which $40 billion transitioned onto our platform in Q4
Wintrust Financial Corporation: In January 2025, onboarded the wealth management business of Wintrust Investments, LLC and certain private client business at Great Lakes Advisors, LLC (collectively, “Wintrust”), with $16 billion of brokerage and advisory assets, of which $15 billion transitioned onto our platform to-date

M&A:

Atria: Closed the acquisition of Atria, and expect to complete the conversion in mid-2025
The Investment Center, Inc. (“The Investment Center”): On track to close and convert the acquisition of The Investment Center in the first half of 2025
Liquidity & Succession: Deployed approximately $81 million of capital to close 8 deals in Q4, including two external practices

Corporate Debt:

Completed leverage-neutral refinancing of existing $1.0 billion Senior Secured Term Loan B with a new $1.0 billion Senior Unsecured Term Loan A

Core G&A:

2024 Core G&A* was $1,515 million, within our outlook range of $1,510 million to $1,525 million
- Prior to the impact of Prudential and Atria, 2024 Core G&A* increased by approximately 8%
In 2025, we plan to slow the growth of Core G&A*, as our ongoing investments to scale our business are driving greater efficiencies
- Our 2025 Core G&A* outlook range prior to Prudential and Atria is 6% to 8% year-over-year growth, or $1,560 million to $1,600 million
- Including expenses related to Prudential and Atria, our 2025 Core G&A* outlook range is $1,730 million to $1,780 million

SAN DIEGO, Jan. 30, 2025 (GLOBE NEWSWIRE) — LPL Financial Holdings Inc. (Nasdaq: LPLA) (the “Company”) today announced results for its fourth quarter ended December 31, 2024, reporting net income of $271 million, or $3.59 per share. This compares with $218 million, or $2.85 per share, in the fourth quarter of 2023 and $255 million, or $3.39 per share, in the prior quarter.

“2024 marked another milestone year for LPL,” said Rich Steinmeier, CEO. “We delivered double-digit organic asset growth, including the onboarding of one of our largest institutional partners, closed on our acquisition of Atria, continued to advance our pioneering Liquidity & Succession program, and reported record adjusted earnings per share. Looking ahead to 2025, our business momentum and financial strength position us well to continue expanding our leadership across the advisor-mediated marketplace and delivering long-term shareholder value.”

“In Q4, we delivered solid business and financial results,” said Matt Audette, President and CFO. “As we look ahead, we remain excited about the opportunities we have to continue to drive growth, deliver operating leverage, and create long-term shareholder value.”

Dividend Declaration

The Company’s Board of Directors declared a $0.30 per share dividend to be paid on March 25, 2025 to all stockholders of record as of March 11, 2025.

Conference Call and Additional Information

The Company will hold a conference call to discuss its results at 5:00 p.m. ET on Thursday, January 30, 2025. The conference call will be accessible and available for replay at investor.lpl.com/events.

Contacts

Investor Relations
investor.relations@lplfinancial.com

Media Relations
media.relations@lplfinancial.com

About LPL Financial

LPL Financial Holdings Inc. (Nasdaq: LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace⁽⁵⁾, LPL supports nearly 29,000 financial advisors and the wealth management practices of approximately 1,200 financial institutions, servicing and custodying approximately $1.7 trillion in brokerage and advisory assets on behalf of approximately 6 million Americans. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to run thriving businesses. For further information about LPL, please visit www.lpl.com.

Securities and Advisory services offered through LPL Financial LLC (“LPL Financial”) or its affiliate LPL Enterprise, LLC (“LPL Enterprise”), both registered investment advisers and broker-dealers. Members FINRA/SIPC. LPL Financial serves as the clearing and carrying firm for accounts LPL Enterprise introduces to it.

LPL Financial and LPL Enterprise provide financial services only from the United States.

Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial.

We routinely disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website.

Forward-Looking Statements

This press release contains statements regarding:

the amount and timing of the onboarding of acquired, recruited or transitioned brokerage and advisory assets, including Atria, Prudential, The Investment Center and Wintrust;
the Company’s future financial and operating results, growth, plans, priorities and business strategies, including forecasts and statements related to the Company’s ICA yield, service and fee revenue, transaction revenue, core G&A expense, promotional expense, share-based compensation expense, depreciation and amortization and share repurchases; and
future capabilities, future advisor service experience, future investments and capital deployment, including share repurchase activity and dividends, if any, and long-term shareholder value.

These and any other statements that are not related to present facts or current conditions, or that are not purely historical, constitute forward-looking statements. They reflect the Company’s expectations and objectives as of January 30, 2025 and are not guarantees that expectations or objectives expressed or implied will be achieved. The achievement of such expectations and objectives involves risks and uncertainties that may cause actual results, levels of activity or the timing of events to differ materially from those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include:

the failure to satisfy the closing conditions applicable to the Company’s purchase agreement with The Investment Center, including regulatory approvals;
difficulties and delays in onboarding the assets of acquired, recruited or transitioned advisors, including the receipt and timing of regulatory approvals that may be required;
disruptions in the businesses of the Company that could make it more difficult to maintain relationships with advisors and their clients;
the choice by clients of acquired or recruited advisors not to open brokerage and/or advisory accounts at the Company;
changes in general economic and financial market conditions, including retail investor sentiment;
changes in interest rates and fees payable by banks participating in the Company’s client cash programs, including the Company’s success in negotiating agreements with current or additional counterparties;
the Company’s strategy and success in managing client cash program fees;
fluctuations in the levels of advisory and brokerage assets, including net new assets, and the related impact on revenue;
effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and institutions, and their ability to provide financial products and services effectively;
whether retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company;
changes in the growth and profitability of the Company’s fee-based offerings and asset-based revenues;
the effect of current, pending and future legislation, regulation and regulatory actions, including disciplinary actions imposed by federal and state regulators and self-regulatory organizations;
the cost of defending, settling and remediating issues related to regulatory matters or legal proceedings, including civil monetary penalties or actual costs of reimbursing customers for losses in excess of our reserves or insurance;
changes made to the Company’s services and pricing, including in response to competitive developments and current, pending and future legislation, regulation and regulatory actions, and the effect that such changes may have on the Company’s gross profit streams and costs;
the execution of the Company’s capital management plans, including its compliance with the terms of the Company’s amended and restated credit agreement, the committed revolving credit facilities of the Company and LPL Financial, and the indentures governing the Company’s senior unsecured notes;
strategic acquisitions and investments, including pursuant to the Company’s Liquidity & Succession solution, and the effect that such acquisitions and investments may have on the Company’s capital management plans and liquidity;
the price, availability and trading volumes of shares of the Company’s common stock, which will affect the timing and size of future share repurchases by the Company, if any;
the execution of the Company’s plans and its success in realizing the synergies, expense savings, service improvements or efficiencies expected to result from its investments, initiatives and acquisitions, expense plans and technology initiatives;
whether advisors affiliated with Atria, Prudential, The Investment Center, and Wintrust will transition registration to the Company and whether assets reported as serviced by such financial advisors will translate into assets of the Company;
the performance of third-party service providers to which business processes have been transitioned;
the Company’s ability to control operating risks, information technology systems risks, cybersecurity risks and sourcing risks; and
the other factors set forth in the Company’s most recent Annual Report on Form 10-K, as may be amended or updated in the Company’s Quarterly Reports on Form 10-Q or other filings with the Securities and Exchange Commission.

Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this earnings release, and you should not rely on statements contained herein as representing the Company’s view as of any date subsequent to the date of this press release.


LPL Financial Holdings Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

	Three Months Ended						Three Months Ended
	December 31,		September 30,				December 31,
		2024		2024	Change			2023	Change
REVENUE
Advisory	$	1,595,834	$	1,378,050	16	%	$	1,085,497	47	%
Commission:
Sales-based		525,795		429,132	23	%		355,958	48	%
Trailing		439,668		377,400	16	%		326,454	35	%
Total commission		965,463		806,532	20	%		682,412	41	%
Asset-based:
Client cash		378,816		353,855	7	%		352,661	7	%
Other asset-based		290,962		272,336	7	%		228,473	27	%
Total asset-based		669,778		626,191	7	%		581,134	15	%
Service and fee		139,119		145,729	(5	%)		130,680	6	%
Transaction		61,535		58,546	5	%		53,858	14	%
Interest income, net		46,680		49,923	(6	%)		43,312	8	%
Other		33,942		43,423	(22	%)		66,936	(49	%)
Total revenue		3,512,351		3,108,394	13	%		2,643,829	33	%
EXPENSE
Advisory and commission		2,250,427		1,948,065	16	%		1,607,978	40	%
Compensation and benefits		321,933		266,415	21	%		270,709	19	%
Promotional		162,057		164,538	(2	%)		126,800	28	%
Depreciation and amortization		92,032		78,338	17	%		67,936	35	%
Interest expense on borrowings		81,979		67,779	21	%		54,415	51	%
Occupancy and equipment		75,538		69,879	8	%		62,103	22	%
Amortization of other intangibles		42,614		32,461	31	%		28,618	49	%
Brokerage, clearing and exchange		34,789		29,636	17	%		25,917	34	%
Professional services		32,055		26,295	22	%		21,572	49	%
Communications and data processing		18,772		17,916	5	%		17,814	5	%
Other		58,874		59,724	(1	%)		66,180	(11	%)
Total expense		3,171,070		2,761,046	15	%		2,350,042	35	%
INCOME BEFORE PROVISION FOR INCOME TAXES		341,281		347,348	(2	%)		293,787	16	%
PROVISION FOR INCOME TAXES		70,532		92,045	(23	%)		76,232	(7	%)
NET INCOME	$	270,749	$	255,303	6	%	$	217,555	24	%
EARNINGS PER SHARE
Earnings per share, basic	$	3.62	$	3.41	6	%	$	2.89	25	%
Earnings per share, diluted	$	3.59	$	3.39	6	%	$	2.85	26	%
Weighted-average shares outstanding, basic		74,785		74,776	—	%		75,228	(1	%)
Weighted-average shares outstanding, diluted		75,337		75,405	—	%		76,240	(1	%)

LPL Financial Holdings Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

	Years Ended
	December 31,
		2024		2023	Change
REVENUE
Advisory	$	5,461,858	$	4,135,681	32	%
Commission:
Sales-based		1,763,232		1,252,783	41	%
Trailing		1,542,255		1,299,840	19	%
Total commission		3,305,487		2,552,623	29	%
Asset-based:
Client cash		1,426,528		1,509,869	(6	%)
Other asset-based		1,071,170		867,860	23	%
Total asset-based		2,497,698		2,377,729	5	%
Service and fee		552,020		508,437	9	%
Transaction		236,274		199,939	18	%
Interest income, net		187,606		159,415	18	%
Other		144,164		119,024	21	%
Total revenue		12,385,107		10,052,848	23	%
EXPENSE
Advisory and commission		7,751,006		5,915,807	31	%
Compensation and benefits		1,136,717		979,681	16	%
Promotional		589,339		459,233	28	%
Depreciation and amortization		308,527		246,994	25	%
Occupancy and equipment		281,210		248,620	13	%
Interest expense on borrowings		274,181		186,804	47	%
Amortization of other intangibles		135,234		107,211	26	%
Brokerage, clearing and exchange		127,941		105,984	21	%
Professional services		93,729		72,583	29	%
Communications and data processing		75,838		75,717	—	%
Other		218,493		209,439	4	%
Total expense		10,992,215		8,608,073	28	%
INCOME BEFORE PROVISION FOR INCOME TAXES		1,392,892		1,444,775	(4	%)
PROVISION FOR INCOME TAXES		334,276		378,525	(12	%)
NET INCOME	$	1,058,616	$	1,066,250	(1	%)
EARNINGS PER SHARE
Earnings per share, basic	$	14.17	$	13.88	2	%
Earnings per share, diluted	$	14.03	$	13.69	2	%
Weighted-average shares outstanding, basic		74,713		76,807	(3	%)
Weighted-average shares outstanding, diluted		75,427		77,861	(3	%)

LPL Financial Holdings Inc.
Consolidated Statements of Financial Condition
(In thousands, except share data)
(Unaudited)

	December 31, 2024			September 30, 2024			December 31, 2023
ASSETS
Cash and equivalents	$	967,079		$	1,474,954		$	465,671
Cash and equivalents segregated under federal or other regulations		1,597,249			1,382,867			2,007,312
Restricted cash		119,724			104,881			108,180
Receivables from clients, net		633,834			622,015			588,585
Receivables from brokers, dealers and clearing organizations		76,545			53,763			50,069
Advisor loans, net		2,281,088			1,913,363			1,479,690
Other receivables, net		902,777			802,186			743,317
Investment securities ($42,267, $94,694 and $76,088 at fair value at December 31, 2024, September 30, 2024 and December 31, 2023, respectively)		57,481			111,096			91,311
Property and equipment, net		1,210,027			1,144,676			933,091
Goodwill		2,172,873			1,868,193			1,856,648
Other intangibles, net		1,482,988			782,426			671,585
Other assets		1,815,739			1,681,455			1,390,021
Total assets	$	13,317,404		$	11,941,875		$	10,385,480
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Client payables	$	1,898,665		$	2,039,140		$	2,266,176
Payables to brokers, dealers and clearing organizations		129,228			211,054			163,337
Accrued advisory and commission expenses payable		323,996			252,881			216,541
Corporate debt and other borrowings, net		5,494,724			4,441,913			3,734,111
Accounts payable and accrued liabilities		588,450			485,927			485,963
Other liabilities		1,951,739			1,739,209			1,440,373
Total liabilities		10,386,802			9,170,124			8,306,501
STOCKHOLDERS’ EQUITY:
Common stock, $0.001 par value; 600,000,000 shares authorized; 130,914,541, 130,779,259 shares and 130,233,328 shares issued at December 31, 2024, September 30, 2024 and December 31, 2023, respectively		131			131			130
Additional paid-in capital		2,066,268			2,059,207			1,987,684
Treasury stock, at cost — 56,253,909, 55,968,552 shares and 55,576,970 shares at December 31, 2024, September 30, 2024 and December 31, 2023, respectively		(4,202,322	)		(4,102,319	)		(3,993,949	)
Retained earnings		5,066,525			4,814,732			4,085,114
Total stockholders’ equity		2,930,602			2,771,751			2,078,979
Total liabilities and stockholders’ equity	$	13,317,404		$	11,941,875		$	10,385,480

LPL Financial Holdings Inc.
Management’s Statements of Operations
(In thousands, except per share data)
(Unaudited)

Certain information in this release is presented as reviewed by the Company’s management and includes information derived from the Company’s consolidated statements of income, non-GAAP financial measures and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled“Non-GAAP Financial Measures”in this release.

	Quarterly Results
	Q4 2024			Q3 2024			Change		Q4 2023			Change
Gross Profit₍₆₎
Advisory	$	1,595,834		$	1,378,050		16	%	$	1,085,497		47	%
Trailing commissions		439,668			377,400		16	%		326,454		35	%
Sales-based commissions		525,795			429,132		23	%		355,958		48	%
Advisory fees and commissions		2,561,297			2,184,582		17	%		1,767,909		45	%
Production-based payout₍₇₎		(2,248,674	)		(1,910,634	)	18	%		(1,548,540	)	45	%
Advisory fees and commissions, net of payout		312,623			273,948		14	%		219,369		43	%
Client cash₍₈₎		397,001			372,333		7	%		373,979		6	%
Other asset-based₍₉₎		290,962			272,336		7	%		228,473		27	%
Service and fee		139,119			145,729		(5	%)		130,680		6	%
Transaction		61,535			58,546		5	%		53,858		14	%
Interest income, net₍₁₀₎		28,481			31,428		(9	%)		21,975		30	%
Other revenue₍₁₁₎		32,705			3,392		n/m			4,636		n/m
Total net advisory fees and commissions and attachment revenue		1,262,426			1,157,712		9	%		1,032,970		22	%
Brokerage, clearing and exchange expense		(34,789	)		(29,636	)	17	%		(25,917	)	34	%
Gross Profit₍₆₎		1,227,637			1,128,076		9	%		1,007,053		22	%

G&A Expense
Core G&A₍₁₂₎		421,894			359,134		17	%		364,469		16	%
Regulatory charges₍₁₃₎		7,335			24,879		(71	%)		8,905		(18	%)
Promotional (ongoing)₍₁₄₎₍₁₅₎		173,191			175,605		(1	%)		138,457		25	%
Acquisition costs₍₁₅₎		37,261			22,243		68	%		34,931		7	%
Employee share-based compensation		26,067			20,289		28	%		15,535		68	%
Total G&A		665,748			602,150		11	%		562,297		18	%
Loss on extinguishment of debt		3,983			—		100	%		—		100	%
EBITDA₍₁₆₎		557,906			525,926		6	%		444,756		25	%
Depreciation and amortization		92,032			78,338		17	%		67,936		35	%
Amortization of other intangibles		42,614			32,461		31	%		28,618		49	%
Interest expense on borrowings		81,979			67,779		21	%		54,415		51	%
INCOME BEFORE PROVISION FOR INCOME TAXES		341,281			347,348		(2	%)		293,787		16	%
PROVISION FOR INCOME TAXES		70,532			92,045		(23	%)		76,232		(7	%)
NET INCOME	$	270,749		$	255,303		6	%	$	217,555		24	%
Earnings per share, diluted	$	3.59		$	3.39		6	%	$	2.85		26	%
Weighted-average shares outstanding, diluted		75,337			75,405		—	%		76,240		(1	%)
Adjusted EBITDA₍₁₆₎	$	584,783		$	566,169		3	%	$	479,687		22	%
Adjusted EPS₍₁₇₎	$	4.25		$	4.16		2	%	$	3.51		21	%

LPL Financial Holdings Inc.
Operating Metrics
(Dollars in billions, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Change	Q4 2023			Change
Market Drivers
S&P 500 Index (end of period)		5,882			5,762		2%		4,770		23%
Russell 2000 Index (end of period)		2,230			2,230		—%		2,027		10%
Fed Funds daily effective rate (average bps)		466			527		(61bps)		533		(67bps)

Advisory and Brokerage Assets₍₁₈₎
Advisory assets	$	957.0		$	892.0		7%	$	735.8		30%
Brokerage assets		783.7			700.1		12%		618.2		27%
Total Advisory and Brokerage Assets	$	1,740.7		$	1,592.1		9%	$	1,354.1		29%
Advisory as a % of Total Advisory and Brokerage Assets		55.0	%		56.0	%	(100bps)		54.3	%	70bps

Assets by Platform
Corporate advisory assets₍₁₉₎	$	678.3		$	618.8		10%	$	496.5		37%
Independent RIA advisory assets₍₁₉₎		278.7			273.2		2%		239.3		16%
Brokerage assets		783.7			700.1		12%		618.2		27%
Total Advisory and Brokerage Assets	$	1,740.7		$	1,592.1		9%	$	1,354.1		29%

Centrally Managed Assets
Centrally managed assets₍₂₀₎	$	160.0		$	138.1		16%	$	112.1		43%
Centrally Managed as a % of Total Advisory Assets		16.7	%		15.5	%	120bps		15.2	%	150bps

LPL Financial Holdings Inc.
Operating Metrics
(Dollars in billions, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Change	Q4 2023			Change
Organic Net New Assets (NNA)₍₂₁₎
Organic net new advisory assets	$	49.3		$	23.2		n/m	$	20.5		n/m
Organic net new brokerage assets		18.8			3.8		n/m		4.2		n/m
Total Organic Net New Assets	$	68.0		$	27.0		n/m	$	24.7		n/m

Acquired Net New Assets₍₂₁₎
Acquired net new advisory assets	$	21.8		$	0.5		n/m	$	—		n/m
Acquired net new brokerage assets		67.5			0.1		n/m		—		n/m
Total Acquired Net New Assets	$	89.3		$	0.6		n/m	$	—		n/m

Total Net New Assets₍₂₁₎
Net new advisory assets	$	71.1		$	23.7		n/m	$	20.5		n/m
Net new brokerage assets		86.2			3.8		n/m		4.2		n/m
Total Net New Assets	$	157.3		$	27.5		n/m	$	24.7		n/m

Net brokerage to advisory conversions₍₂₂₎	$	4.8		$	3.5		n/m	$	2.6		n/m
Organic advisory NNA annualized growth₍₂₃₎		22.1	%		11.2	%	n/m		12.4	%	n/m
Total organic NNA annualized growth₍₂₃₎		17.1	%		7.2	%	n/m		8.0	%	n/m

Net New Advisory Assets₍₂₁₎
Corporate RIA net new advisory assets	$	64.5		$	24.0		n/m	$	15.9		n/m
Independent RIA net new advisory assets		6.6			(0.3	)	n/m		4.6		n/m
Total Net New Advisory Assets	$	71.1		$	23.7		n/m	$	20.5		n/m
Centrally managed net new advisory assets₍₂₁₎	$	24.9		$	4.4		n/m	$	3.0		n/m

Net buy (sell) activity₍₂₄₎	$	38.3		$	37.7		n/m	$	32.8		n/m

^{Note: Totals may not foot due to rounding.}

LPL Financial Holdings Inc.
Client Cash Data
(Dollars in thousands, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Change	Q4 2023			Change
Client Cash Balances (in billions)₍₂₅₎
Insured cash account sweep	$	38.3		$	32.1		19%	$	34.5		11%
Deposit cash account sweep		10.7			9.6		11%		9.3		15%
Total Bank Sweep		49.0			41.7		18%		43.8		12%
Money market sweep		4.3			2.3		87%		2.4		79%
Total Client Cash Sweep Held by Third Parties		53.3			44.0		21%		46.2		15%
Client cash account (CCA)₍₂₆₎		1.8			1.8		—%		2.0		(10%)
Total Client Cash Balances	$	55.1		$	45.8		20%	$	48.2		14%
Client Cash Balances as a % of Total Assets		3.2	%		2.9	%	30bps		3.6	%	(40bps)

^{Note: Totals may not foot due to rounding.}

	Three Months Ended
	December 31, 2024					September 30, 2024					December 31, 2023
Interest-Earnings Assets	Average Balance (in billions)		Revenue		Net Yield (bps)₍₂₇₎	Average Balance (in billions)		Revenue		Net Yield (bps)₍₂₇₎	Average Balance (in billions)		Revenue		Net Yield (bps)₍₂₇₎
Insured cash account sweep	$	34.8	$	292,661	335	$	31.1	$	259,503	332	$	33.3	$	266,058	317
Deposit cash account sweep		9.8		83,879	340		9.2		92,765	400		8.9		84,901	379
Total Bank Sweep		44.6		376,540	336		40.3		352,268	348		42.2		350,959	330
Money market sweep		3.3		2,277	28		2.3		1,587	28		2.4		1,702	28
Total Client Cash Held By Third Parties		47.9		378,817	315		42.6		353,855	330		44.6		352,661	314
Client cash account (CCA)₍₂₆₎		1.8		18,184	407		1.6		18,478	472		1.8		21,318	475
Total Client Cash		49.7		397,001	318		44.2		372,333	335		46.4		373,979	320
Margin receivables		0.6		11,506	829		0.5		11,199	885		0.5		10,874	878
Other interest revenue		1.3		16,975	524		1.5		20,229	533		0.9		11,101	507
Total Client Cash and Interest Income, Net	$	51.6	$	425,482	329	$	46.2	$	403,761	348	$	47.7	$	395,954	329

^{Note: Totals may not foot due to rounding.}

LPL Financial Holdings Inc.
Monthly Metrics
(Dollars in billions, except where noted)
(Unaudited)

	December 2024		November 2024		Change	October 2024			September 2024
Advisory and Brokerage Assets₍₁₈₎
Advisory assets	$	957.0	$	973.8	(2%)	$	910.6		$	892.0
Brokerage assets		783.7		785.6	—%		762.7			700.1
Total Advisory and Brokerage Assets	$	1,740.7	$	1,759.3	(1%)	$	1,673.3		$	1,592.1

Organic Net New Assets (NNA)₍₂₁₎
Organic net new advisory assets	$	12.5	$	27.9	n/m	$	8.8		$	11.0
Organic net new brokerage assets		12.9		6.3	n/m		(0.5	)		0.5
Total Organic Net New Assets	$	25.5	$	34.2	n/m	$	8.3		$	11.4

Acquired Net New Assets₍₂₁₎
Acquired net new advisory assets	$	—	$	0.5	n/m	$	21.3		$	0.2
Acquired net new brokerage assets		0.2		0.3	n/m		67.0		$	0.1
Total Acquired Net New Assets	$	0.3	$	0.8	n/m	$	88.3		$	0.3

Total Net New Assets₍₂₁₎
Net new advisory assets	$	12.6	$	28.4	n/m	$	30.1		$	11.2
Net new brokerage assets		13.2		6.6	n/m		66.5			0.5
Total Net New Assets	$	25.8	$	35.0	n/m	$	96.6		$	11.7
Net brokerage to advisory conversions₍₂₂₎	$	2.0	$	1.7	n/m	$	1.1		$	1.2

Client Cash Balances₍₂₅₎
Insured cash account sweep	$	38.3	$	34.8	10%	$	34.7		$	32.1
Deposit cash account sweep		10.7		9.9	8%		9.7			9.6
Total Bank Sweep		49.0		44.7	10%		44.4			41.7
Money market sweep		4.3		4.3	—%		2.6			2.3
Total Client Cash Sweep Held by Third Parties		53.3		49.0	9%		47.0			44.0
Client cash account (CCA)₍₂₆₎		1.8		1.5	20%		1.3			1.8
Total Client Cash Balances		55.1		50.5	9%		48.3			45.8

Net buy (sell) activity₍₂₄₎	$	13.5	$	12.4	n/m	$	12.5		$	12.2

Market Drivers
S&P 500 Index (end of period)		5,882		6,032	(2%)		5,705			5,762
Russell 2000 Index (end of period)		2,230		2,435	(8%)		2,197			2,230
Fed Funds effective rate (average bps)		448		465	(17bps)		483			513

^{Note: Totals may not foot due to rounding.}

LPL Financial Holdings Inc.
Financial Measures
(Dollars in thousands, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Change	Q4 2023			Change
Commission Revenue by Product
Annuities	$	561,918		$	481,852		17%	$	408,480		38%
Mutual funds		232,529			193,451		20%		167,392		39%
Fixed income		59,332			55,707		7%		40,441		47%
Equities		45,829			36,786		25%		29,920		53%
Other		65,855			38,736		70%		36,179		82%
Total commission revenue	$	965,463		$	806,532		20%	$	682,412		41%

Commission Revenue by Sales-based and Trailing
Sales-based commissions
Annuities	$	314,591		$	265,955		18%	$	221,070		42%
Mutual funds		52,908			42,310		25%		37,016		43%
Fixed income		59,332			55,707		7%		40,441		47%
Equities		45,829			36,786		25%		29,920		53%
Other		53,135			28,374		87%		27,511		93%
Total sales-based commissions	$	525,795		$	429,132		23%	$	355,958		48%
Trailing commissions
Annuities	$	247,327		$	215,897		15%	$	187,410		32%
Mutual funds		179,621			151,141		19%		130,376		38%
Other		12,720			10,362		23%		8,668		47%
Total trailing commissions	$	439,668		$	377,400		16%	$	326,454		35%
Total commission revenue	$	965,463		$	806,532		20%	$	682,412		41%

Payout Rate₍₇₎		87.79	%		87.46	%	33bps		87.59	%	20bps

LPL Financial Holdings Inc.
Capital Management Measures
(Dollars in thousands, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Q4 2023
Cash and equivalents	$	967,079		$	1,474,954		$	465,671
Cash at regulated subsidiaries		(884,779	)		(992,450	)		(410,313	)
Excess cash at regulated subsidiaries per the Credit Agreement		397,138			225,886			128,327
Corporate Cash₍₃₎	$	479,438		$	708,390		$	183,685

Corporate Cash₍₃₎
Cash at the Parent	$	39,782		$	435,109		$	26,587
Excess cash at regulated subsidiaries per the Credit Agreement		397,138			225,886			128,327
Cash at non-regulated subsidiaries		42,518			47,395			28,771
Corporate Cash	$	479,438		$	708,390		$	183,685

Leverage Ratio
Total debt	$	5,517,000		$	4,469,175		$	3,757,200
Total corporate cash		479,438			708,390			183,685
Credit Agreement Net Debt	$	5,037,562		$	3,760,785		$	3,573,515
Credit Agreement EBITDA (trailing twelve months)₍₂₈₎	$	2,665,033		$	2,340,886		$	2,194,807
Leverage Ratio	1.89x			1.61x			1.63x

	December 31, 2024
Total Debt	Balance		Current Applicable Margin	Interest Rate		Maturity
Revolving Credit Facility_(a)	$	1,047,000	ABR+37.5 bps / SOFR+147.5 bps	6.007	%	5/20/2029
Broker-Dealer Revolving Credit Facility		—	SOFR+135 bps	5.840	%	5/19/2025
Senior Unsecured Term Loan A		1,020,000	SOFR+147.5 bps_(b)	6.000	%	12/5/2026
Senior Unsecured Notes		500,000	5.700% Fixed	5.700	%	5/20/2027
Senior Unsecured Notes		400,000	4.625% Fixed	4.625	%	11/15/2027
Senior Unsecured Notes		750,000	6.750% Fixed	6.750	%	11/17/2028
Senior Unsecured Notes		900,000	4.000% Fixed	4.000	%	3/15/2029
Senior Unsecured Notes		400,000	4.375% Fixed	4.375	%	5/15/2031
Senior Unsecured Notes		500,000	6.000% Fixed	6.000	%	5/20/2034
Total / Weighted Average	$	5,517,000		5.532	%

^{(a) Secured borrowing capacity of $2.25 billion at LPL Holdings, Inc. (the “Parent”).}
^{(b) The SOFR rate option is a one-month SOFR rate and subject to an interest rate floor of 0 bps.}

LPL Financial Holdings Inc.
Key Business and Financial Metrics
(Dollars in thousands, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Change	Q4 2023			Change
Advisors
Advisors		28,888			23,686		22%		22,660		27%
Net new advisors		5,202			224		n/m		256		n/m
Annualized advisory fees and commissions per advisor₍₂₉₎	$	390		$	371		5%	$	314		24%
Average total assets per advisor ($ in millions)₍₃₀₎	$	60.3		$	67.2		(10%)	$	59.8		1%
Transition assistance loan amortization ($ in millions)₍₃₁₎	$	76.3		$	69.1		10%	$	55.1		38%
Total client accounts (in millions)		10.0			8.7		15%		8.3		20%

Employees		7,780			7,342		6%		7,372		6%

Services Group
Services Group subscriptions₍₃₂₎
Professional Services		1,925			1,890		2%		1,895		2%
Business Optimizers		3,980			3,798		5%		3,363		18%
Planning and Advice		799			735		9%		548		46%
Total Services Group subscriptions		6,704			6,423		4%		5,806		15%
Services Group advisor count		4,521			4,340		4%		3,850		17%

AUM retention rate (quarterly annualized)₍₃₃₎		97.3	%		97.0	%	30bps		98.4	%	(110bps)

Capital Management
Capital expenditures ($ in millions)₍₃₄₎	$	165.5		$	147.1		13%	$	105.9		56%
Acquisitions, net ($ in millions)₍₃₅₎	$	847.9		$	34.1		n/m	$	92.9		n/m

Share repurchases ($ in millions)	$	100.0		$	—		100%	$	225.0		(56%)
Dividends ($ in millions)		22.5			22.4		—%		22.6		—%
Total Capital Returned ($ in millions)	$	122.5		$	22.4		n/m	$	247.6		(51%)

Non-GAAP Financial Measures

Management believes that presenting certain non-GAAP financial measures by excluding or including certain items can be helpful to investors and analysts who may wish to use this information to analyze the Company’s current performance, prospects and valuation. Management uses this non-GAAP information internally to evaluate operating performance and in formulating the budget for future periods. Management believes that the non-GAAP financial measures and metrics discussed below are appropriate for evaluating the performance of the Company.

Adjusted EPS and Adjusted net income

Adjusted EPS is defined as adjusted net income, a non-GAAP measure defined as net income plus the after-tax impact of amortization of other intangibles, acquisition costs, certain regulatory charges, losses on extinguishment of debt, and amounts related to the departure of the Company’s former Chief Executive Officer, divided by the weighted average number of diluted shares outstanding for the applicable period. The Company presents adjusted net income and adjusted EPS because management believes that these metrics can provide investors with useful insight into the Company’s core operating performance by excluding non-cash items, acquisition costs, and certain other charges that management does not believe impact the Company’s ongoing operations. Adjusted net income and adjusted EPS are not measures of the Company’s financial performance under GAAP and should not be considered as alternatives to net income, earnings per diluted share or any other performance measure derived in accordance with GAAP. For a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS, please see the endnote disclosures in this release.

Gross profit

Gross profit is calculated as total revenue less advisory and commission expense; brokerage, clearing and exchange expense; and market fluctuations on employee deferred compensation. All other expense categories, including depreciation and amortization of property and equipment and amortization of other intangibles, are considered general and administrative in nature. Because the Company’s gross profit amounts do not include any depreciation and amortization expense, the Company considers gross profit to be a non-GAAP financial measure that may not be comparable to similar measures used by others in its industry. Management believes that gross profit can provide investors with useful insight into the Company’s core operating performance before indirect costs that are general and administrative in nature. For a calculation of gross profit, please see the endnote disclosures in this release.

Core G&A

Core G&A consists of total expense less the following expenses: advisory and commission; depreciation and amortization; interest expense on borrowings; brokerage, clearing and exchange; amortization of other intangibles; market fluctuations on employee deferred compensation; losses on extinguishment of debt; promotional (ongoing); employee share-based compensation; regulatory charges; and acquisition costs. Management presents core G&A because it believes core G&A reflects the corporate expense categories over which management can generally exercise a measure of control, compared with expense items over which management either cannot exercise control, such as advisory and commission, or which management views as promotional expense necessary to support advisor growth and retention, including conferences and transition assistance. Core G&A is not a measure of the Company’s total expense as calculated in accordance with GAAP. For a reconciliation of the Company’s total expense to core G&A, please see the endnote disclosures in this release. The Company does not provide an outlook for its total expense because it contains expense components, such as advisory and commission, that are market-driven and over which the Company cannot exercise control. Accordingly, a reconciliation of the Company’s outlook for total expense to an outlook for core G&A cannot be made available without unreasonable effort.

EBITDA and Adjusted EBITDA

EBITDA is defined as net income plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles. Adjusted EBITDA is defined as EBITDA, a non-GAAP measure, plus acquisition costs, certain regulatory charges, amounts related to the departure of the Company’s former Chief Executive Officer, and losses on extinguishment of debt. The Company presents EBITDA and adjusted EBITDA because management believes that they can be useful financial metrics in understanding the Company’s earnings from operations. EBITDA and adjusted EBITDA are not measures of the Company’s financial performance under GAAP and should not be considered as alternatives to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to EBITDA and adjusted EBITDA, please see the endnote disclosures in this release.

Credit Agreement EBITDA

Credit Agreement EBITDA is defined in, and calculated by management in accordance with, the Company’s amended and restated credit agreement (“Credit Agreement”) as “Consolidated EBITDA,” which is Consolidated Net Income (as defined in the Credit Agreement) plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles, and is further adjusted to exclude certain non-cash charges and other adjustments, and to include future expected cost savings, operating expense reductions or other synergies from certain transactions. The Company presents Credit Agreement EBITDA because management believes that it can be a useful financial metric in understanding the Company’s debt capacity and covenant compliance under its Credit Agreement. Credit Agreement EBITDA is not a measure of the Company’s financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to Credit Agreement EBITDA, please see the endnote disclosures in this release.

Endnote Disclosures

(1) Represents the estimated total advisory and brokerage assets expected to transition to the Company’s primary broker-dealer subsidiary, LPL Financial, in connection with advisors who transferred their licenses to LPL Financial during the period. The estimate is based on prior business reported by the advisors, which has not been independently and fully verified by LPL Financial. The actual transition of assets to LPL Financial generally occurs over several quarters and the actual amount transitioned may vary from the estimate.

(2) The terms “Financial Advisors” and “Advisors” refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial, an SEC-registered broker-dealer and investment advisor, or one of Atria’s seven introducing broker-dealer subsidiaries.

(3) Corporate cash, a component of cash and equivalents, is the sum of cash and equivalents from the following: (1) cash and equivalents held at LPL Holdings, Inc., (2) cash and equivalents held at regulated subsidiaries as defined by the Company’s Credit Agreement, which include LPL Financial, LPL Enterprise, LLC, The Private Trust Company, N.A. and certain of Atria’s introducing broker-dealer subsidiaries, in excess of the capital requirements of the Company’s Credit Agreement and (3) cash and equivalents held at non-regulated subsidiaries.

(4) Compliance with the Leverage Ratio is only required under the Company’s revolving credit facility.

(5) The Company was named a Top RIA custodian (Cerulli Associates, 2024 U.S. RIA Marketplace Report); No. 1 Independent Broker-Dealer in the U.S. (based on total revenues, Financial Planning magazine 1996-2022); and, among third-party providers of brokerage services to banks and credit unions, No. 1 in AUM Growth from Financial Institutions; No. 1 in Market Share of AUM from Financial Institutions; No. 1 in Market Share of Revenue from Financial Institutions; No. 1 on Financial Institution Market Share; No. 1 on Share of Advisors (2021-2022 Kehrer Bielan Research and Consulting Annual TPM Report). Fortune 500 as of June 2021.

(6) Gross profit is a non-GAAP financial measure. Please see a description of gross profit under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a calculation of gross profit for the periods presented (in thousands):

	Q4 2024			Q3 2024		Q4 2023
Total revenue_(a)	$	3,512,351		$	3,108,394	$	2,643,829
Advisory and commission expense		2,250,427			1,948,065		1,607,978
Brokerage, clearing and exchange expense		34,789			29,636		25,917
Employee deferred compensation		(502	)		2,617		2,881
Gross profit_(a)	$	1,227,637		$	1,128,076	$	1,007,053

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards.}

Below is a calculation of gross profit for the years presented (in thousands):

	Years Ended December 31,
		2024		2023
Total revenue_(a)	$	12,385,107	$	10,052,848
Advisory and commission expense		7,751,006		5,915,807
Brokerage, clearing and exchange expense		127,941		105,984
Employee deferred compensation		4,815		4,101
Gross profit_(a)	$	4,501,345	$	4,026,956

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards.}

(7) Production-based payout is a financial measure calculated as advisory and commission expense plus (less) advisor deferred compensation. The payout rate is calculated by dividing the production-based payout by total advisory and commission revenue. Below is a reconciliation of the Company’s advisory and commission expense to the production-based payout and a calculation of the payout rate for the periods presented (in thousands, except payout rate):

	Q4 2024			Q3 2024			Q4 2023
Advisory and commission expense	$	2,250,427		$	1,948,065		$	1,607,978
Less: Advisor deferred compensation		(1,753	)		(37,431	)		(59,438	)
Production-based payout	$	2,248,674		$	1,910,634		$	1,548,540

Advisory and commission revenue	$	2,561,297		$	2,184,582		$	1,767,909

Payout rate		87.79	%		87.46	%		87.59	%

(8) Below is a reconciliation of client cash revenue per Management’s Statements of Operations to client cash revenue, a component of asset-based revenue, on the Company’s consolidated statements of income for the periods presented (in thousands):

	Q4 2024			Q3 2024			Q4 2023
Client cash on Management’s Statement of Operations	$	397,001		$	372,333		$	373,979
Interest income on CCA balances segregated under federal or other regulations₍₁₀₎		(18,185	)		(18,478	)		(21,318	)
Client cash on Consolidated Statements of Income	$	378,816		$	353,855		$	352,661

(9) Consists of revenue from the Company’s sponsorship programs with financial product manufacturers, omnibus processing and networking services but does not include fees from client cash programs.

(10) During the first quarter of 2024, the Company disaggregated the activity previously reported in the interest income and other, net line item into its interest income, net and other revenue components. Prior period amounts have been reclassified to conform to the current presentation. Below is a reconciliation of interest income, net per Management’s Statements of Operations to interest income, net on the Company’s consolidated statements of income for the periods presented (in thousands):

	Q4 2024		Q3 2024		Q4 2023
Interest income, net on Management’s Statement of Operations	$	28,481	$	31,428	$	21,975
Interest income on CCA balances segregated under federal or other regulations₍₈₎		18,185		18,478		21,318
Interest income on deferred compensation		14		17		19
Interest income, net on Consolidated Statements of Income	$	46,680	$	49,923	$	43,312

(11) During the first quarter of 2024, the Company disaggregated the activity previously reported in the interest income and other, net line item into its interest income, net and other revenue components. Prior period amounts have been reclassified to conform to the current presentation. Below is a reconciliation of other revenue per Management’s Statements of Operations to other revenue on the Company’s consolidated statements of income for the periods presented (in thousands):

	Q4 2024			Q3 2024			Q4 2023
Other revenue on Management’s Statement of Operations_(a)	$	32,705		$	3,392		$	4,636
Interest income on deferred compensation		(14	)		(17	)		(19	)
Deferred compensation		1,251			40,048			62,319
Other revenue on Consolidated Statements of Income	$	33,942		$	43,423		$	66,936

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards.}

(12) Core G&A is a non-GAAP financial measure. Please see a description of core G&A under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of the Company’s total expense to core G&A for the periods presented (in thousands):

	Q4 2024			Q3 2024			Q4 2023
Core G&A Reconciliation
Total expense	$	3,171,070		$	2,761,046		$	2,350,042
Advisory and commission		(2,250,427	)		(1,948,065	)		(1,607,978	)
Depreciation and amortization		(92,032	)		(78,338	)		(67,936	)
Interest expense on borrowings		(81,979	)		(67,779	)		(54,415	)
Brokerage, clearing and exchange		(34,789	)		(29,636	)		(25,917	)
Amortization of other intangibles		(42,614	)		(32,461	)		(28,618	)
Employee deferred compensation		502			(2,617	)		(2,881	)
Loss on extinguishment of debt		(3,983	)		(—	)		(—	)
Total G&A		665,748			602,150			562,297
Promotional (ongoing)₍₁₄₎₍₁₅₎		(173,191	)		(175,605	)		(138,457	)
Acquisition costs₍₁₅₎		(37,261	)		(22,243	)		(34,931	)
Employee share-based compensation		(26,067	)		(20,289	)		(15,535	)
Regulatory charges₍₁₃₎		(7,335	)		(24,879	)		(8,905	)
Core G&A	$	421,894		$	359,134		$	364,469

Below is a reconciliation of the Company’s total expense to core G&A for the years presented (in thousands):

	Years Ended December 31,
		2024			2023
Core G&A Reconciliation
Total expense	$	10,992,215		$	8,608,073
Advisory and commission		(7,751,006	)		(5,915,807	)
Depreciation and amortization		(308,527	)		(246,994	)
Interest expense on borrowings		(274,181	)		(186,804	)
Amortization of other intangibles		(135,234	)		(107,211	)
Brokerage, clearing and exchange		(127,941	)		(105,984	)
Employee deferred compensation		(4,815	)		(4,101	)
Loss on extinguishment of debt		(3,983	)		—
Total G&A		2,386,528			2,041,172
Promotional (ongoing)₍₁₄₎₍₁₅₎		(628,938	)		(486,326	)
Regulatory charges₍₁₃₎		(47,278	)		(71,320	)
Employee share-based compensation		(88,957	)		(66,024	)
Acquisition costs₍₁₅₎		(105,905	)		(48,103	)
Core G&A	$	1,515,450		$	1,369,399

(13) Regulatory charges for the three months ended September 30, 2024 and year ended December 31, 2024 include charges related to a settlement with the SEC to resolve the Company’s civil investigation of certain elements of the Company’s Anti-Money Laundering (“AML”) compliance program. The Company has recorded an $18.0 million charge for the quarter ended September 30, 2024 and reached a settlement with the staff of the SEC and paid the civil monetary penalty in January 2025. Regulatory charges for the year ended December 31, 2023 include a $40.0 million charge to reflect the amount of the penalty related to the SEC’s civil investigation of the Company’s compliance with records preservation requirements for business-related electronic communications that was not covered by the Company’s captive insurance subsidiary. The Company reached a settlement with the staff of the SEC and paid the civil monetary penalty of $50.0 million in August 2024.

(14) Promotional (ongoing) includes $13.4 million, $13.0 million and $12.5 million for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively, of support costs related to full-time employees that are classified within Compensation and benefits expense in the consolidated statements of income and excludes costs that have been incurred as part of acquisitions that have been classified within acquisition costs. Promotional (ongoing) includes $46.6 million and $30.7 million of such support costs for the twelve months ended December 31, 2024 and 2023, respectively.

(15) Acquisition costs include the costs to setup, onboard and integrate acquired entities and other costs that were incurred as a result of the acquisitions. The below table summarizes the primary components of acquisition costs for the periods presented (in thousands):

	Q4 2024		Q3 2024			Q4 2023
Acquisition costs
Fair value mark on contingent consideration₍₃₆₎	$	11,249	$	5,849		$	26,712
Compensation and benefits		15,950		8,352			2,829
Professional services		7,357		6,685			3,664
Promotional₍₁₄₎		2,235		1,964			863
Other		470		(607	)		863
Acquisition costs	$	37,261	$	22,243		$	34,931

The below table summarizes the primary components of acquisition costs for the years presented (in thousands):

	Years Ended December 31,
		2024		2023
Acquisition costs
Fair value mark on contingent consideration₍₃₆₎	$	41,721	$	26,712
Professional services		20,855		10,044
Compensation and benefits		34,980		6,069
Promotional₍₁₄₎		7,006		3,593
Other		1,343		1,685
Acquisition costs	$	105,905	$	48,103

(16) EBITDA and adjusted EBITDA are non-GAAP financial measures. Please see a description of EBITDA and adjusted EBITDA under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of net income to EBITDA and adjusted EBITDA for the periods presented (in thousands):

	Q4 2024			Q3 2024		Q4 2023
EBITDA and adjusted EBITDA Reconciliation
Net income	$	270,749		$	255,303	$	217,555
Interest expense on borrowings		81,979			67,779		54,415
Provision for income taxes		70,532			92,045		76,232
Depreciation and amortization		92,032			78,338		67,936
Amortization of other intangibles		42,614			32,461		28,618
EBITDA	$	557,906		$	525,926	$	444,756
Regulatory charges₍₁₃₎		—			18,000		—
Acquisition costs₍₁₅₎		37,261			22,243		34,931
Departure of former Chief Executive Officer_(a)		(14,367	)		—		—
Loss on extinguishment of debt		3,983			—		—
Adjusted EBITDA	$	584,783		$	566,169	$	479,687

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.}

The below table is a reconciliation of net income to EBITDA and adjusted EBITDA for the years presented (in thousands):

		2024			2023
EBITDA and adjusted EBITDA Reconciliation
Net income	$	1,058,616		$	1,066,250
Interest expense on borrowings		274,181			186,804
Provision for income taxes		334,276			378,525
Depreciation and amortization		308,527			246,994
Amortization of other intangibles		135,234			107,211
EBITDA	$	2,110,834		$	1,985,784
Regulatory charges₍₁₃₎		18,000			40,000
Acquisition costs₍₁₅₎		105,905			48,103
Departure of former Chief Executive Officer_(a)		(14,367	)		—
Loss on extinguishment of debt		3,983			—
Adjusted EBITDA	$	2,224,355		$	2,073,887

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.}

(17) Adjusted net income and adjusted EPS are non-GAAP financial measures. Please see a description of adjusted net income and adjusted EPS under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS for the periods presented (in thousands, except per share data):

	Q4 2024						Q3 2024						Q4 2023
	Amount			Per Share			Amount			Per Share			Amount			Per Share
Net income / earnings per diluted share	$	270,749		$	3.59		$	255,303		$	3.39		$	217,555		$	2.85
Regulatory charges₍₁₃₎		—			—			18,000			0.24			—			—
Amortization of other intangibles		42,614			0.57			32,461			0.43			28,618			0.38
Acquisition costs₍₁₅₎		37,261			0.49			22,243			0.29			34,931			0.46
Departure of former Chief Executive Officer_(a)		(14,367	)		(0.19	)		—			—			—			—
Loss on extinguishment of debt		3,983			0.05			—			—			—			—
Tax benefit		(19,978	)		(0.27	)		(14,650	)		(0.19	)		(13,789	)		(0.18	)
Adjusted net income / adjusted EPS	$	320,262		$	4.25		$	313,357		$	4.16		$	267,315		$	3.51
Diluted share count		75,337						75,405						76,240
Note: Totals may not foot due to rounding.

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.}

Below is a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS for the years presented (in thousands, except per share data):

	Years Ended December 31,
		2024						2023
	Amount			Per Share			Amount			Per Share
Net income / earnings per diluted share	$	1,058,616		$	14.03		$	1,066,250		$	13.69
Regulatory charges₍₁₃₎		18,000			0.24			40,000			0.51
Amortization of other intangibles		135,234			1.79			107,211			1.38
Acquisition costs₍₁₅₎		105,905			1.40			48,103			0.62
Departure of former Chief Executive Officer_(a)		(14,367	)		(0.19	)		—			—
Loss on extinguishment of debt		3,983			0.05			—			—
Tax benefit		(62,089	)		(0.82	)		(37,418	)		(0.48	)
Adjusted net income / adjusted EPS	$	1,245,282		$	16.51		$	1,224,146		$	15.72
Diluted share count		75,427						77,861
Note: Totals may not foot due to rounding.

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.}

(18) Consists of total advisory and brokerage assets under custody at the Company’s primary broker-dealer subsidiary, LPL Financial, as well as assets under custody of a third-party custodian related to Atria’s seven introducing broker-dealer subsidiaries.

(19) Assets on the Company’s corporate advisory platform are serviced by investment advisor representatives of LPL Financial. Assets on the Company’s independent RIA advisory platform are serviced by investment advisor representatives of separate registered investment advisor firms rather than representatives of LPL Financial.

(20) Consists of advisory assets in LPL Financial’s Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios and Guided Wealth Portfolios platforms.

(21) Consists of total client deposits into advisory or brokerage accounts less total client withdrawals from advisory or brokerage accounts, plus dividends, plus interest, minus advisory fees. The Company considers conversions from and to brokerage or advisory accounts as deposits and withdrawals, respectively.

(22) Consists of existing custodied assets that converted from brokerage to advisory, less existing custodied assets that converted from advisory to brokerage.

(23) Calculated as annualized current period organic net new assets divided by preceding period assets in their respective categories of advisory assets or total advisory and brokerage assets.

(24) Represents the amount of securities purchased less the amount of securities sold in client accounts custodied with LPL Financial.

(25) Client cash balances include CCA and exclude purchased money market funds. CCA balances include cash that clients have deposited with LPL Financial that is included in Client payables in the consolidated balance sheets. The following table presents purchased money market funds for the periods presented (in billions):

		Q4 2024			Q3 2024			Q4 2023
Purchased money market funds		$	41.0		$	38.5		$	29.5

(26) During the first quarter of 2024, the Company updated its definition of client cash account balances to exclude other client payables. Prior period disclosures have been updated to reflect this change as applicable.

(27) Calculated by dividing revenue for the period by the average balance during the period.

(28) EBITDA and Credit Agreement EBITDA are non-GAAP financial measures. Please see a description of EBITDA and Credit Agreement EBITDA under the “Non-GAAP Financial Measures” section of this release for additional information. Under the Credit Agreement, management calculates Credit Agreement EBITDA for a trailing twelve month period at the end of each fiscal quarter and in doing so may make further adjustments to prior quarters. Below are reconciliations of trailing twelve month net income to trailing twelve month EBITDA and Credit Agreement EBITDA for the periods presented (in thousands):

	Q4 2024		Q3 2024		Q4 2023
EBITDA and Credit Agreement EBITDA Reconciliations
Net income	$	1,058,616	$	1,005,422	$	1,066,250
Interest expense on borrowings		274,181		246,618		186,804
Provision for income taxes		334,276		339,977		378,525
Depreciation and amortization		308,527		284,431		246,994
Amortization of other intangibles		135,234		121,238		107,211
EBITDA	$	2,110,834	$	1,997,686	$	1,985,784
Credit Agreement Adjustments:
Acquisition costs and other₍₁₅₎₍₃₇₎	$	223,614	$	236,007	$	110,170
Employee share-based compensation		88,957		78,425		66,024
M&A accretion₍₃₈₎		235,048		26,265		30,268
Advisor share-based compensation		2,597		2,503		2,561
Loss on extinguishment of debt		3,983		—		—
Credit Agreement EBITDA	$	2,665,033	$	2,340,886	$	2,194,807

(29) Calculated based on the average advisor count from the current period and prior periods.

(30) Calculated based on the end of period total advisory and brokerage assets divided by end of period advisor count.

(31) Represents amortization expense on forgivable loans for transition assistance to advisors and institutions.

(32) Refers to active subscriptions related to professional services offerings (CFO Solutions, Marketing Solutions, Admin Solutions, Advisor Institute, Bookkeeping, Partial Book Sales, CFO Essentials, Digital Marketing, Payroll Services and HR Solutions) and business optimizer offerings (M&A Solutions, Digital Office, Resilience Plans and Assurance Plans), as well as planning and advice services (Paraplanning, Tax Planning, and High Net Worth Services) for which subscriptions are the number of advisors using the service.

(33) Reflects retention of total advisory and brokerage assets, calculated by deducting quarterly annualized attrition from total advisory and brokerage assets, divided by the prior quarter total advisory and brokerage assets.

(34) Capital expenditures represent cash payments for property and equipment during the period.

(35) Acquisitions, net represent cash paid for acquisitions, net of cash acquired during the period.

(36) Represents a fair value adjustment to our contingent consideration liabilities that is reflected in other expense in the consolidated statements of income.

(37) Acquisition costs and other primarily include acquisition costs, costs incurred related to the integration of the strategic relationship with Prudential, a $26.4 million reduction related to the departure of the Company’s former Chief Executive Officer and related clawback of share-based compensation awards, an $18.0 million regulatory charge recognized during the three months ended September 30, 2024 reflecting the amount of a penalty proposed by the SEC as part of its civil investigation of the Company’s compliance with certain elements of the Company’s AML compliance program, and a $40.0 million regulatory charge recognized during the three months ended September 30, 2023 to reflect the amount of a penalty proposed by the SEC as part of its civil investigation of the Company’s compliance with records preservation requirements for business-related electronic communications stored on personal devices that have not been approved by the Company.

(38) M&A accretion is an adjustment to reflect the annualized expected run rate EBITDA of an acquisition as permitted by the Credit Agreement for up to eight fiscal quarters following the close of the transaction.

The MIL Network –

January 31, 2025

MIL-OSI: FinWise Bancorp Reports Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

– Loan Originations of $5.0 Billion for 2024, including $1.3 Billion for Fourth Quarter –

– Net Income of $12.7 Million for 2024, including $2.8 Million for Fourth Quarter –

– Diluted Earnings Per Share of $0.93 for 2024, including $0.20 for Fourth Quarter –

MURRAY, Utah, Jan. 30, 2025 (GLOBE NEWSWIRE) — FinWise Bancorp (NASDAQ: FINW) (“FinWise” or the “Company”), parent company of FinWise Bank (the “Bank”), today announced results for the quarter and fiscal year ended December 31, 2024.

Fourth Quarter 2024 Highlights

Loan originations totaled $1.3 billion, compared to $1.4 billion for the quarter ended September 30, 2024, and $1.2 billion for the fourth quarter of the prior year
Net interest income was $15.5 million, compared to $14.8 million for the quarter ended September 30, 2024, and $14.4 million for the fourth quarter of the prior year
Net income was $2.8 million, compared to $3.5 million for the quarter ended September 30, 2024, and $4.2 million for the fourth quarter of the prior year
Diluted earnings per share (“EPS”) were $0.20 for the quarter, compared to $0.25 for the quarter ended September 30, 2024, and $0.32 for the fourth quarter of the prior year
Efficiency ratio¹ was 64.2%, compared to 67.5% for the quarter ended September 30, 2024, and 56.0% for the fourth quarter of the prior year
Nonperforming loan balances were $36.4 million as of December 31, 2024, compared to $30.6 million as of September 30, 2024, and $27.1 million as of December 31, 2023. Nonperforming loan balances guaranteed by the Small Business Administration (“SBA”) were $19.2 million, $17.8 million, and $15.0 million as of December 31, 2024, September 30, 2024, and December 31, 2023, respectively

“Our fourth quarter results capped off a strong 2024 for FinWise, as we made significant progress in our goal to expand and diversify our sources of revenue to enhance the company’s long-term growth,” said Kent Landvatter, CEO of FinWise. “We were also pleased with the rebound in loan originations from existing programs, as well as the number of new strategic programs we announced, including four new Lending programs, two of which include our Credit Enhancement product, one Payments and one Credit Card program. As we look ahead to 2025, we are excited about the outlook, and currently anticipate continued stability in originations from existing programs, acceleration in production from new and ramping programs, a strong pipeline for new partners and remain committed to generating positive operating leverage.”

____________________

¹ See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this non-GAAP measure.

Selected Financial and Other Data

($ in thousands, except per share amounts)	As of and for the Three Months Ended									As of and for the Years Ended
	12/31/2024			9/30/2024			12/31/2023			12/31/2024			12/31/2023
Amount of loans originated	$	1,305,028		$	1,448,251		$	1,177,704		$	5,015,662		$	4,303,361
Net income	$	2,793		$	3,454		$	4,156		$	12,742		$	17,460
Diluted EPS	$	0.20		$	0.25		$	0.32		$	0.93		$	1.33
Return on average assets		1.6	%		2.1	%		2.9	%		2.0	%		3.5	%
Return on average equity		6.5	%		8.3	%		10.8	%		7.7	%		11.9	%
Yield on loans		14.01	%		14.16	%		16.21	%		14.47	%		17.05	%
Cost of interest-bearing deposits		4.30	%		4.85	%		4.82	%		4.57	%		4.22	%
Net interest margin		10.00	%		9.70	%		10.61	%		9.99	%		11.65	%
Efficiency ratio⁽¹⁾		64.2	%		67.5	%		56.0	%		64.9	%		53.4	%
Tangible book value per share⁽²⁾	$	13.15		$	12.90		$	12.41		$	13.15		$	12.41
Tangible shareholders’ equity to tangible assets⁽²⁾		23.3	%		24.9	%		26.5	%		23.3	%		26.5	%
Leverage ratio (Bank under CBLR)		20.6	%		20.3	%		20.7	%		20.6	%		20.7	%
Full-time equivalent employees		196			194			162			196			162

(1) This measure is not a measure recognized under United States generally accepted accounting principles, or GAAP, and is therefore considered to be a non-GAAP financial measure. See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure. The efficiency ratio is defined as total non-interest expense divided by the sum of net interest income and non-interest income. The Company believes this measure is important as an indicator of productivity because it shows the amount of revenue generated for each dollar spent.
(2) Tangible shareholders’ equity to tangible assets is considered a non-GAAP financial measure. Tangible shareholders’ equity is defined as total shareholders’ equity less goodwill and other intangible assets. The most directly comparable GAAP financial measure is total shareholder’s equity to total assets. The Company had no goodwill or other intangible assets at the end of any period indicated. The Company has not considered loan servicing rights or loan trailing fee assets as intangible assets for purposes of this calculation. As a result, tangible shareholders’ equity is the same as total shareholders’ equity at the end of each of the periods indicated.

Net Interest Income
Net interest income was $15.5 million for the fourth quarter of 2024, compared to $14.8 million for the prior quarter and $14.4 million for the prior year period. The increase from the prior quarter was primarily due to an average balance increase in the loans held for investment (“HFI”) portfolio and a decrease in yields paid on interest-earning deposits, principally certificate of deposits. Further contributing to the increase from the prior quarter was a third quarter 2024 decrease in net interest income of $0.5 million for accrued interest not previously reversed at the time loans were deemed nonperforming. The increase from the prior year period was primarily due to increases in the average balances of loans held-for-sale and loans HFI portfolios and was partially offset by yield decreases on those same portfolios as well as decreased volumes and rates paid on the Company’s interest bearing deposits.

Loan originations totaled $1.3 billion for the fourth quarter, compared to $1.4 billion for the prior quarter of 2024 and $1.2 billion for the prior year period.

Net interest margin for the fourth quarter of 2024 was 10.00%, compared to 9.70% for the prior quarter and 10.61% for the prior year period. The increase in net interest margin from the prior quarter is primarily attributable to the current quarter decrease in the cost of certificates of deposits and the growth in the overall loan portfolio. The decrease from the prior year period is primarily attributable to the Company’s strategy to reduce the average credit risk in the loan portfolio by increasing its investment in higher quality but lower yielding loans.

Provision for Credit Losses
The Company’s provision for credit losses was $3.9 million for the fourth quarter of 2024, compared to $2.2 million for the prior quarter and $3.2 million for the prior year period. The provision for credit losses increased when compared to the prior quarter and prior year period due primarily to a net charge-off on the non-guaranteed portion of SBA loans in the fourth quarter of 2024 of $1.0 million.

Non-interest Income

	Three Months Ended
($ in thousands)	12/31/2024			9/30/2024			12/31/2023
Non-interest income
Strategic Program fees	$	4,899		$	4,862		$	4,229
Gain on sale of loans		872			393			440
SBA loan servicing fees, net		181			87			572
Change in fair value on investment in BFG		(200	)		(100	)		200
Credit enhancement income		25			47			—
Other miscellaneous income		(174	)		765			716
Total non-interest income	$	5,603		$	6,054		$	6,157

The decrease in non-interest income from the prior quarter and prior year period was primarily due to a decrease in other miscellaneous income resulting from the $0.9 million charge-off of unamortized premium on approximately $160.0 million of callable CDs which were called during the fourth quarter of 2024 and replaced with lower cost CDs. This decrease was partially offset by the $0.5 million gain on sale of the guaranteed portion of SBA loans that occurred during the fourth quarter of 2024.

Non-interest Expense

	Three Months Ended
($ in thousands)	12/31/2024		9/30/2024		12/31/2023
Non-interest expense
Salaries and employee benefits	$	9,375	$	9,659	$	7,396
Professional services		556		1,331		1,433
Occupancy and equipment expenses		1,094		1,046		923
Credit enhancement expense		5		3		—
Other operating expenses		2,534		2,010		1,751
Total non-interest expense	$	13,564	$	14,049	$	11,503

The decrease in non-interest expense from the prior quarter was primarily due to a decrease in salaries and employee benefits resulting from bonus accrual reductions and a decrease in professional services expense resulting from a reduction in accruals for legal services. The increase in non-interest expense from the prior year period was primarily due to an increase in salaries and employee benefits due mainly to increasing headcount and other operating expenses driven by increased spending to support the growth in the Company’s business infrastructure.

Reflecting the expenses incurred to develop the Company’s business infrastructure, the Company’s efficiency ratio was 64.2% for the fourth quarter of 2024, compared to 67.5% for the prior quarter and 56.0% for the prior year period. As a result of the infrastructure build, the Company anticipates the efficiency ratio will remain elevated until the Company begins to realize the revenues associated with the new programs developed.

Tax Rate
The Company’s effective tax rate was 24.3% for the fourth quarter of 2024, compared to 25.1% for the prior quarter and 28.5% for the prior year period. The decrease from the prior quarter was due primarily to more favorable resolution of historical state tax matters during the fourth quarter of 2024. The decrease from the prior year period was primarily due to a reduction in permanent differences impacting income tax expense.

Net Income
Net income was $2.8 million for the fourth quarter of 2024, compared to $3.5 million for the prior quarter and $4.2 million for the prior year period. The changes in net income for the three months ended December 31, 2024 compared to the prior quarter and prior year period are the result of the factors discussed above.

Balance Sheet
The Company’s total assets were $746.0 million as of December 31, 2024, an increase from $683.0 million as of September 30, 2024 and $586.2 million as of December 31, 2023. The increase in total assets from September 30, 2024 was primarily due to continued growth in the Company’s loans HFI, net, and loans held-for-sale portfolios of $29.7 million and $7.6 million, respectively, as well as an increase of $21.5 million in interest-bearing cash deposits. The increase in total assets compared to December 31, 2023 was primarily due to increases in the Company’s loans HFI, net, and loans held-for-sale portfolios of $89.3 million and $44.1 million, respectively, as well as an increase in investment securities available-for-sale of $29.9 million, partially offset by a decrease of $17.0 million in interest-bearing deposits.

The following table shows the gross loans HFI balances as of the dates indicated:

	12/31/2024					9/30/2024					12/31/2023
($ in thousands)	Amount		% of total loans			Amount		% of total loans			Amount		% of total loans
SBA	$	255,056		54.8	%	$	251,439		57.9	%	$	239,922		64.5	%
Commercial leases		70,153		15.1	%		64,277		14.8	%		38,110		10.2	%
Commercial, non-real estate		3,691		0.8	%		3,025		0.7	%		2,457		0.7	%
Residential real estate		51,574		11.1	%		41,391		9.5	%		38,123		10.2	%
Strategic Program loans		20,122		4.3	%		19,409		4.5	%		19,408		5.2	%
Commercial real estate:
Owner occupied		41,046		8.8	%		32,480		7.5	%		20,798		5.6	%
Non-owner occupied		1,379		0.3	%		2,736		0.7	%		2,025		0.5	%
Consumer		22,212		4.8	%		19,206		4.4	%		11,372		3.1	%
Total period end loans	$	465,233		100.0	%	$	433,963		100.0	%	$	372,215		100.0	%

Note: SBA loans as of December 31, 2024, September 30, 2024 and December 31, 2023 include $158.7 million, $156.3 million and $131.7 million, respectively, of SBA 7(a) loan balances that are guaranteed by the SBA. The HFI balance on Strategic Program loans with annual interest rates below 36% as of December 31, 2024, September 30, 2024 and December 31, 2023 was $3.1 million, $3.2 million and $3.6 million, respectively.

Total gross loans HFI as of December 31, 2024 increased compared to September 30, 2024 and December 31, 2023. The Company experienced growth across all loan portfolios, with the exception of non-owner occupied CRE, consistent with its strategy to increase its loan portfolio with higher quality, lower rate loans.

The following table shows the Company’s deposit composition as of the dates indicated:

	As of
	12/31/2024					9/30/2024					12/31/2023
($ in thousands)	Amount		Percent			Amount		Percent			Amount		Percent
Noninterest-bearing demand deposits	$	126,782		23.3	%	$	142,785		29.2	%	$	95,486		23.6	%
Interest-bearing deposits:
Demand		71,403		13.1	%		58,984		12.1	%		50,058		12.4	%
Savings		9,287		1.7	%		9,592		1.9	%		8,633		2.1	%
Money market		16,709		3.0	%		15,027		3.1	%		11,661		2.9	%
Time certificates of deposit		320,771		58.9	%		262,271		53.7	%		238,995		59.0	%
Total period end deposits	$	544,952		100.0	%	$	488,659		100.0	%	$	404,833		100.0	%

The increase in total deposits from September 30, 2024 and December 31, 2023 was driven primarily by increases in brokered time certificates of deposits, which were added to fund loan growth and increase balance sheet liquidity. The increase in total deposits from December 31, 2023 was also driven primarily by an increase in noninterest-bearing demand deposits and interest-bearing demand deposits, primarily due to growth from new and existing customer relationships.

Total shareholders’ equity as of December 31, 2024 increased $3.4 million to $173.7 million from $170.4 million at September 30, 2024. Compared to December 31, 2023, total shareholders’ equity increased by $18.7 million from $155.1 million. The increase from September 30, 2024 was primarily due to the Company’s net income. The increase from December 31, 2023 was primarily due to the Company’s net income as well as the additional capital issued in exchange for the Company’s increased ownership in BFG, partially offset by the repurchase of common stock under the Company’s share repurchase program.

Bank Regulatory Capital Ratios
The following table presents the leverage ratios for the Bank as of the dates indicated as determined under the Community Bank Leverage Ratio Framework of the Federal Deposit Insurance Corporation:

	As of
Capital Ratios	12/31/2024			9/30/2024			12/31/2023			Well-Capitalized Requirement
Leverage ratio		20.6	%		20.3	%		20.7	%		9.0	%

The leverage ratio increase from the prior quarter resulted primarily from earnings generated by operations growing at a faster pace than average assets. The slight decrease in the leverage ratio from the prior year period resulted primarily from the growth in the loan portfolio. The Bank’s capital levels remain significantly above well-capitalized guidelines as of December 31, 2024.

Share Repurchase Program
Since the share repurchase program’s inception in March 2024 through December 31, 2024, the Company has repurchased a total of 44,608 shares for $0.5 million. There were no shares repurchased during the fourth quarter of 2024.

Asset Quality
The recorded balances of nonperforming loans were $36.4 million, or 7.8% of total loans HFI, as of December 31, 2024, compared to $30.6 million, or 7.1% of total loans HFI, as of September 30, 2024 and $27.1 million, or 7.3% of total loans HFI, as of December 31, 2023. The balances of nonperforming loans guaranteed by the SBA were $19.2 million, $17.8 million, and $15.0 million as of December 31, 2024, September 30, 2024 and December 31, 2023, respectively. The increase in nonperforming loans from the prior periods was primarily attributable to lingering financial stress on borrowers from the longer than expected higher interest rate environment. The Company’s allowance for credit losses to total loans HFI was 2.8% as of December 31, 2024 compared to 2.9% as of September 30, 2024 and 3.5% as of December 31, 2023. The decrease in the ratio from the prior quarter and prior year period was primarily due to the increased balance of the guaranteed portion of the SBA 7(a) program loans, growth in the balances of lower risk CRE, leasing and other HFI loan portfolios, and the shift in our Strategic Program HFI loan balances to programs with lower historical losses.

The Company’s net charge-offs were $3.2 million, $2.4 million and $3.4 million for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively. The increase from the prior quarter is primarily due to charge-offs relating to SBA loans that moved to nonaccrual status in the fourth quarter as well as increased net charge-offs in the Strategic Program loans portfolio. The decrease from the prior year period is primarily due to increased recoveries during the fourth quarter of 2024.

The following table presents a summary of changes in the allowance for credit losses and asset quality ratios for the periods indicated:

	Three Months Ended
($ in thousands)	12/31/2024			9/30/2024			12/31/2023
Allowance for credit losses:
Beginning balance	$	12,661		$	13,127		$	12,986
Provision for credit losses⁽¹⁾		3,766			1,944			3,272
Charge offs
Residential real estate		(206	)		(27	)		(104	)
Commercial real estate
Owner occupied		(411	)		(103	)		(561	)
Non-owner occupied		—			(221	)		—
Commercial and industrial		(555	)		(96	)		(281	)
Consumer		(60	)		(15	)		(22	)
Lease financing receivables					(113	)		—
Strategic Program loans		(2,528	)		(2,360	)		(2,656	)
Recoveries
Construction and land development		—			—			—
Residential real estate		6			3			3
Residential real estate multifamily		—			—			—
Commercial real estate
Owner occupied		112			219			(11	)
Non-owner occupied		—			—			—
Commercial and industrial		—			2			1
Consumer		1			4			—
Lease financing receivables		77			8			—
Strategic Program loans		313			289			261
Ending Balance	$	13,176		$	12,661		$	12,888

*Credit Quality Data*	As of and For the Three Months Ended
($ in thousands)	12/31/2024			9/30/2024			12/31/2023
Nonperforming loans:
Guaranteed	$	19,204		$	17,804		$	14,966
Unguaranteed		17,227			12,844			12,161
Total nonperforming loans	$	36,431		$	30,648		$	27,127
Allowance for credit losses	$	13,176		$	12,661		$	12,888
Net charge offs	$	3,249		$	2,409		$	3,370
Total loans held for investment	$	465,233		$	433,963		$	372,215
Total loans held for investment less guaranteed balances	$	306,482		$	277,635		$	240,471
Average loans held for investment	$	454,474		$	422,820		$	350,852
Nonperforming loans to total loans held for investment		7.8	%		7.1	%		7.3	%
Net charge offs to average loans held for investment (annualized)		2.8	%		2.3	%		3.8	%
Allowance for credit losses to loans held for investment		2.8	%		2.9	%		3.5	%
Allowance for credit losses to loans held for investment less guaranteed balances		4.3	%		4.6	%		5.4	%

(1) Excludes the provision for unfunded commitments.

Webcast and Conference Call Information
FinWise will host a conference call today at 5:30 PM ET to discuss its financial results for the fourth quarter and year ended December 31, 2024. A simultaneous audio webcast of the conference call will be available at https://investors.finwisebancorp.com/.

The dial-in number for the conference call is (877) 423-9813 (toll-free) or (201) 689-8573 (international). The conference ID is 13750402. Please dial the number 10 minutes prior to the scheduled start time.

A webcast replay of the call will be available at investors.finwisebancorp.com for six months following the call.

Website Information
The Company intends to use its website, www.finwisebancorp.com, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Such disclosures will be included in the Company’s website’s Investor Relations section. Accordingly, investors should monitor the Investor Relations portion of the Company’s website, in addition to following its press releases, filings with the Securities and Exchange Commission (“SEC”), public conference calls, and webcasts. To subscribe to the Company’s e-mail alert service, please click the “Email Alerts” link in the Investor Relations section of its website and submit your email address. The information contained in, or that may be accessed through, the Company’s website is not incorporated by reference into or a part of this document or any other report or document it files with or furnishes to the SEC, and any references to the Company’s website are intended to be inactive textual references only.

About FinWise Bancorp
FinWise Bancorp is a Utah bank holding company headquartered in Murray, Utah which wholly owns FinWise Bank, a Utah chartered state bank, and FinWise Investment LLC (together “FinWise”). FinWise provides Banking and Payments solutions to fintech brands. The Company is expanding and diversifying its business model by incorporating Payments (MoneyRails™) and BIN Sponsorship offerings. Its Strategic Program Lending business, conducted through scalable API-driven infrastructure, powers deposit, lending and payments programs for leading fintech brands. In addition, FinWise manages other Lending programs such as SBA 7(a), Owner Occupied Commercial Real Estate, and Leasing, which provide flexibility for disciplined balance sheet growth. Through its compliance oversight and risk management-first culture, the Company is well positioned to guide fintechs through a rigorous process to facilitate regulatory compliance. For more information about FinWise visit https://investors.finwisebancorp.com.

Contacts
investors@finwisebank.com
media@finwisebank.com

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995
This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company’s current views with respect to, among other things, future events and its financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “projection,” “forecast,” “budget,” “goal,” “target,” “would,” “aim” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the Company’s industry and management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. The inclusion of these forward-looking statements should not be regarded as a representation by the Company or any other person that such expectations, estimates and projections will be achieved. Accordingly, the Company cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

There are or will be important factors that could cause the Company’s actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: (a) the success of the financial technology industry, as well as the continued evolution of the regulation of this industry; (b) the ability of the Company’s Strategic Program or Fintech Banking and Payments Solutions service providers to comply with regulatory regimes, and the Company’s ability to adequately oversee and monitor its Strategic Program and Fintech Banking and Payments Solutions service providers; (c) the Company’s ability to maintain and grow its relationships with its service providers; (d) changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, accounting, tax, trade, monetary and fiscal matters, including the application of interest rate caps or maximums; (e) the Company’s ability to keep pace with rapid technological changes in the industry or implement new technology effectively; (f) system failure or cybersecurity breaches of the Company’s network security; (g) potential exposure to fraud, negligence, computer theft and cyber-crime and other disruptions in the Company’s computer systems relating to its development and use of new technology platforms; (h) the Company’s reliance on third-party service providers for core systems support, informational website hosting, internet services, online account opening and other processing services; (i) general economic and business conditions, either nationally or in the Company’s market areas; (j) increased national or regional competition in the financial services industry; (k) the Company’s ability to measure and manage its credit risk effectively and the potential deterioration of the business and economic conditions in the Company’s primary market areas; (l) the adequacy of the Company’s risk management framework; (m) the adequacy of the Company’s allowance for credit losses (“ACL”); (n) the financial soundness of other financial institutions; (o) new lines of business or new products and services; (p) changes in Small Business Administration (“SBA”) rules, regulations and loan products, including specifically the Section 7(a) program or changes to the status of the Bank as an SBA Preferred Lender; (q) the value of collateral securing the Company’s loans; (r) the Company’s levels of nonperforming assets; (s) losses from loan defaults; (t) the Company’s ability to protect its intellectual property and the risks it faces with respect to claims and litigation initiated against the Company; (u) the Company’s ability to implement its growth strategy; (v) the Company’s ability to launch new products or services successfully; (w) the concentration of the Company’s lending and depositor relationships through Strategic Programs in the financial technology industry generally; (x) interest-rate and liquidity risks; (y) the effectiveness of the Company’s internal control over financial reporting and its ability to remediate any future material weakness in its internal control over financial reporting; (z) dependence on the Company’s management team and changes in management composition; (aa) the sufficiency of the Company’s capital; (bb) compliance with laws and regulations, supervisory actions, the Dodd-Frank Act, capital requirements, the Bank Secrecy Act and other anti-money laundering laws, predatory lending laws, and other statutes and regulations; (cc) results of examinations of the Company by its regulators; (dd) the Company’s involvement from time to time in legal proceedings; (ee) natural disasters and adverse weather, acts of terrorism, pandemics, an outbreak of hostilities or other international or domestic calamities, and other matters beyond the Company’s control; (ff) future equity and debt issuances; (gg) that the anticipated benefits of new lines of business that the Company may enter or investments or acquisitions the Company may make are not realized within the expected time frame or at all as a result of such things as the strength or weakness of the economy and competitive factors in the areas where the Company and such other businesses operate; and (hh) other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2023 and subsequent reports on Form 10-Q and Form 8-K.

The timing and amount of purchases under the Company’s share repurchase program will be determined by the Share Repurchase Committee based upon market conditions and other factors. Purchases may be made pursuant to a program adopted under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The program does not require the Company to purchase any specific number or amount of shares and may be suspended or reinstated at any time in the Company’s discretion and without notice.

Any forward-looking statement speaks only as of the date of this release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, whether because of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence. In addition, the Company cannot assess the impact of each risk and uncertainty on its business or the extent to which any risk or uncertainty, or combination of risks and uncertainties, may cause actual results to differ materially from those contained in any forward-looking statements.

FINWISE BANCORP CONSOLIDATED BALANCE SHEETS ($ in thousands; Unaudited)

	12/31/2024		9/30/2024		12/31/2023
ASSETS
Cash and cash equivalents
Cash and due from banks	$	9,600	$	7,705	$	411
Interest-bearing deposits		99,562		78,063		116,564
Total cash and cash equivalents		109,162		85,768		116,975
Investment securities available-for-sale, at fair value		29,930		30,472		—
Investment securities held-to-maturity, at cost		12,565		13,270		15,388
Investment in Federal Home Loan Bank (“FHLB”) stock, at cost		349		349		238
Strategic Program loans held-for-sale, at lower of cost or fair value		91,588		84,000		47,514
Loans held for investment, net		447,812		418,065		358,560
Credit enhancement asset		111		86		—
Premises and equipment, net		16,328		17,099		14,630
Accrued interest receivable		3,566		3,098		3,573
SBA servicing asset, net		3,273		3,261		4,231
Investment in Business Funding Group (“BFG”), at fair value		7,700		7,900		4,200
Operating lease right-of-use (“ROU”) assets		3,564		3,735		4,293
Income tax receivable, net		8,868		3,317		2,400
Other assets		11,160		12,611		14,219
Total assets	$	745,976	$	683,031	$	586,221

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Noninterest-bearing	$	126,782	$	142,785	$	95,486
Interest-bearing		418,170		345,874		309,347
Total deposits		544,952		488,659		404,833
Accrued interest payable		1,494		647		619
Income taxes payable, net		4,423		—		1,873
Deferred taxes, net		899		1,036		748
PPP Liquidity Facility		64		106		190
Operating lease liabilities		5,302		5,542		6,296
Other liabilities		15,122		16,671		16,606
Total liabilities		572,256		512,661		431,165

Shareholders’ equity
Common stock		13		13		12
Additional paid-in-capital		56,926		56,214		51,200
Retained earnings		116,594		113,801		103,844
Accumulated other comprehensive income, net of tax		187		342		—
Total shareholders’ equity		173,720		170,370		155,056
Total liabilities and shareholders’ equity	$	745,976	$	683,031	$	586,221

FINWISE BANCORP CONSOLIDATED STATEMENTS OF INCOME ($ in thousands, except per share amounts; Unaudited)

	Three Months Ended
	12/31/2024			9/30/2024			12/31/2023
Interest income
Interest and fees on loans	$	18,388		$	17,590		$	16,192
Interest on securities		401			298			101
Other interest income		573			1,036			1,759
Total interest income		19,362			18,924			18,052

Interest expense
Interest on deposits		3,833			4,161			3,685
Total interest expense		3,833			4,161			3,685
Net interest income		15,529			14,763			14,367

Provision for credit losses		3,878			2,157			3,210
Net interest income after provision for credit losses		11,651			12,606			11,157

Non-interest income
Strategic Program fees		4,899			4,862			4,229
Gain on sale of loans, net		872			393			440
SBA loan servicing fees, net		181			87			572
Change in fair value on investment in BFG		(200	)		(100	)		200
Credit enhancement income		25			47			—
Other miscellaneous (loss) income		(174	)		765			716
Total non-interest income		5,603			6,054			6,157

Non-interest expense
Salaries and employee benefits		9,375			9,659			7,396
Professional services		556			1,331			1,433
Occupancy and equipment expenses		1,094			1,046			923
Credit enhancement expense		5			3			—
Other operating expenses		2,534			2,010			1,751
Total non-interest expense		13,564			14,049			11,503
Income before income taxes		3,690			4,611			5,811

Provision for income taxes		897			1,157			1,655
Net income	$	2,793		$	3,454		$	4,156

Earnings per share, basic	$	0.21		$	0.26		$	0.33
Earnings per share, diluted	$	0.20		$	0.25		$	0.32

Weighted average shares outstanding, basic		12,659,986			12,658,557			12,261,101
Weighted average shares outstanding, diluted		13,392,411			13,257,835			12,752,051
Shares outstanding at end of period		13,211,640			13,211,160			12,493,565

FINWISE BANCORP CONSOLIDATED STATEMENTS OF INCOME ($ in thousands, except per share amounts)

	Years Ended
	12/31/2024			12/31/2023
	(Unaudited)
Interest income
Interest and fees on loans	$	68,892		$	58,445
Interest on securities		897			338
Other interest income		4,563			5,751
Total interest income		74,352			64,534

Interest expense
Interest on deposits		15,440			9,974
Other interest expense		—			1
Total interest expense		15,440			9,975
Net interest income		58,912			54,559

Provision for credit losses		11,573			11,638
Net interest income after provision for credit losses		47,339			42,921

Non-interest income
Strategic Program fees		17,762			15,914
Gain on sale of loans, net		2,036			1,684
SBA loan servicing fees, net		1,137			1,842
Change in fair value on investment in BFG		(624	)		(600	)
Credit enhancement income		111			—
Other miscellaneous income		2,063			2,616
Total non-interest income		22,485			21,456

Non-interest expense
Salaries and employee benefits		35,205			25,751
Professional services		4,736			4,961
Occupancy and equipment expenses		4,240			3,312
Credit enhancement expense		8			—
Other operating expenses		8,646			6,540
Total non-interest expense		52,835			40,564
Income before income taxes		16,989			23,813

Provision for income taxes		4,247			6,353
Net income	$	12,742		$	17,460

Earnings per share, basic	$	0.98		$	1.38
Earnings per share, diluted	$	0.93		$	1.33

Weighted average shares outstanding, basic		12,612,455			12,488,564
Weighted average shares outstanding, diluted		13,228,869			12,909,648
Shares outstanding at end of period		13,211,640			12,493,565

FINWISE BANCORP AVERAGE BALANCES, YIELDS, AND RATES ($ in thousands; Unaudited)

	Three Months Ended
	12/31/2024							9/30/2024							12/31/2023
	Average Balance		Interest		Average Yield/Rate			Average Balance		Interest		Average Yield/Rate			Average Balance		Interest		Average Yield/Rate
Interest earning assets:
Interest-bearing deposits	$	52,375	$	573		4.35	%	$	78,967	$	1,036		5.22	%	$	125,462	$	1,759		5.56	%
Investment securities		43,212		401		3.69	%		33,615		298		3.53	%		15,670		101		2.56	%
Strategic Program loans held-for-sale		67,676		5,040		29.63	%		70,123		4,913		27.87	%		45,370		4,307		37.66	%
Loans held for investment		454,474		13,348		11.68	%		422,820		12,677		11.93	%		350,852		11,885		13.44	%
Total interest earning assets		617,737		19,362		12.47	%		605,525		18,924		12.43	%		537,354		18,052		13.33	%
Noninterest-earning assets		55,767							56,290							32,202
Total assets	$	673,504						$	661,815						$	569,556
Interest-bearing liabilities:
Demand	$	57,305	$	617		4.28	%	$	55,562	$	547		3.92	%	$	47,784	$	562		4.67	%
Savings		9,192		9		0.40	%		9,538		18		0.76	%		8,096		13		0.65	%
Money market accounts		15,726		147		3.73	%		13,590		127		3.72	%		13,419		53		1.55	%
Certificates of deposit		272,799		3,060		4.46	%		262,537		3,469		5.26	%		234,088		3,057		5.18	%
Total deposits		355,022		3,833		4.30	%		341,227		4,161		4.85	%		303,387		3,685		4.82	%
Other borrowings		79		—		0.35	%		112		—		0.35	%		206		—		0.35	%
Total interest-bearing liabilities		355,101		3,833		4.29	%		341,339		4,161		4.85	%		303,593		3,685		4.82	%
Noninterest-bearing deposits		119,945							127,561							92,767
Noninterest-bearing liabilities		27,636							25,536							21,099
Shareholders’ equity		170,823							167,379							152,097
Total liabilities and shareholders’ equity	$	673,505						$	661,815						$	569,556
Net interest income and interest rate spread			$	15,529		8.18	%			$	14,763		7.58	%			$	14,367		8.51	%
Net interest margin						10.00	%						9.70	%						10.61	%
Ratio of average interest-earning assets to average interest- bearing liabilities						173.96	%						177.40	%						177.00	%

FINWISE BANCORP AVERAGE BALANCES, YIELDS, AND RATES ($ in thousands; Unaudited)

	Years Ended
	12/31/2024							12/31/2023
	Average Balance		Interest		Average Yield/Rate			Average Balance		Interest		Average Yield/Rate
Interest earning assets:
Interest-bearing deposits	$	87,086	$	4,563		5.24	%	$	110,866	$	5,751		5.19	%
Investment securities		26,691		897		3.36	%		14,731		338		2.30	%
Loans held for sale		58,896		17,698		30.05	%		39,090		15,051		38.50	%
Loans held for investment		417,207		51,194		12.27	%		303,784		43,394		14.28	%
Total interest earning assets		589,880		74,352		12.60	%		468,472		64,534		13.78	%
Noninterest-earning assets		47,598							25,269
Total assets	$	637,478						$	493,740
Interest-bearing liabilities:
Demand	$	59,317	$	2,108		3.55	%	$	45,454	$	1,856		4.08	%
Savings		9,574		66		0.69	%		8,207		51		0.62	%
Money market accounts		12,284		452		3.68	%		13,665		362		2.65	%
Certificates of deposit		256,575		12,814		4.99	%		168,887		7,705		4.56	%
Total deposits		337,750		15,440		4.57	%		236,213		9,974		4.22	%
Other borrowings		126		—		0.34	%		251		1		0.35	%
Total interest-bearing liabilities		337,876		15,440		4.57	%		236,464		9,975		4.22	%
Noninterest-bearing deposits		107,760							93,126
Noninterest-bearing liabilities		26,634							17,250
Shareholders’ equity		165,208							146,901
Total liabilities and shareholders’ equity	$	637,478						$	493,740
Net interest income and interest rate spread			$	58,912		8.03	%			$	54,559		9.56	%
Net interest margin						9.99	%						11.65	%
Ratio of average interest-earning assets to average interest- bearing liabilities						174.58	%						198.12	%

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

Efficiency ratio	Three Months Ended									Years Ended
	12/31/2024			9/30/2024			12/31/2023			12/31/2024				12/31/2023
($ in thousands)
Non-interest expense	$	13,564		$	14,049		$	11,503		$	52,835		$	40,564

Net interest income		15,529			14,763			14,367			58,912			54,559
Total non-interest income		5,603			6,054			6,157			22,485			21,456
Adjusted operating revenue	$	21,132		$	20,817		$	20,524		$	81,397		$	76,015
Efficiency ratio		64.2	%		67.5	%		56.0	%		64.9	%		53.4	%

FinWise has entered into agreements with certain of its Strategic Program service providers pursuant to which they provide credit enhancement on loans which protects the Bank by indemnifying or reimbursing the Bank for incurred credit and fraud losses. We estimate and record a provision for expected losses for these Strategic Program loans in accordance with GAAP, which requires estimation of the provision without consideration of the credit enhancement . When the provision for expected losses over the life of the loans that are subject to such credit enhancement is recorded, a credit enhancement asset reflecting the potential future recovery of those losses is also recorded on the balance sheet in the form of non-interest income (credit enhancement income). Reimbursement or indemnification for incurred losses is provided for in the form of a deposit reserve account that is replenished periodically by the respective Strategic Program service provider. Any remaining income on such loans in excess of the amounts retained by FinWise and placed in the deposit reserve account are paid to the Strategic Program service provider. Income on such loans in excess of amounts retained by FinWise are expensed for services provided by the Strategic Program service provider including its legal commitment to indemnify or reimburse all credit or fraud losses pursuant to credit enhancement agreements. The credit enhancement asset is reduced as credit enhancement payments and recoveries are received from the Strategic Program service provider or taken from its cash reserve account. If the Strategic Program service provider is unable to fulfill its contracted obligations under its credit enhancement agreement, then the Bank could be exposed to the loss of the reimbursement and credit enhancement income as a result of this counterparty risk. See the following reconciliations of non-GAAP measures for the impact of the credit enhancement on our financial condition and results. Note that these amounts are supplemental and are not a substitute for an analysis based on GAAP measures. Similar amounts for periods prior to the quarter ended December 31, 2024 were immaterial and therefore not separately disclosed.

The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement expenses on total interest income on loans HFI and average yield on loans HFI:

	As of and for the Three Months Ended								As of and for the Year Ended
($ in thousands; unaudited)	12/31/2024								12/31/2024
	Total Average Loans HFI		Total Interest Income on Loans HFI			Average Yield on Loans HFI			Total Average Loans HFI		Total Interest Income on Loans HFI			Average Yield on Loans HFI
Before adjustment for credit enhancement	$	454,474	$	13,348			11.68	%	$	417,207	$	51,194			12.27	%
Less: credit enhancement expense				(5	)							(8	)
Net of adjustment for credit enhancement expenses	$	454,474	$	13,343			11.68	%	$	417,207	$	51,186			12.27	%

Total interest income on loans HFI net of credit enhancement expense and the average yield on loans HFI are non-GAAP measures that include the impact of credit enhancement expense on total interest income on loans HFI and the respective average yield on loans HFI, the most directly comparable GAAP measures.

The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement expenses on net interest income and net interest margin:

	As of and for the Three Months Ended								As of and for the Year Ended
	12/31/2024								12/31/2024
($ in thousands; unaudited)	Total Average Interest- Earning Assets		Net Interest Income			Net Interest Margin			Total Average Interest- Earning Assets		Net Interest Income			Net Interest Margin
Before adjustment for credit enhancement	$	617,737	$	15,529			10.00	%	$	589,880	$	58,912			9.99	%
Less: credit enhancement expense				(5	)							(8	)
Net of adjustment for credit enhancement expenses	$	617,737	$	15,524			10.00	%	$	589,880	$	58,904			9.99	%

Net interest income and net interest margin net of credit enhancement expense are non-GAAP measures that include the impact of credit enhancement expenses on net interest income and net interest margin, the most directly comparable GAAP measures.

Non-interest expenses less credit enhancement expenses is a non-GAAP measure presented to illustrate the impact of credit enhancement expense on non-interest expense:


($ in thousands; unaudited)	Three Months Ended December 31, 2024			Year Ended December 31, 2024
Total non-interest expense	$	13,564		$	52,835
Less: credit enhancement expense		(5	)		(8	)
Total non-interest expense less credit enhancement expenses	$	13,559		$	52,827

Total non-interest expense less credit enhancement expense is a non-GAAP measure that illustrates the impact of credit enhancement expenses on non-interest expense, the most directly comparable GAAP measure.

Total non-interest income less credit enhancement income is a non-GAAP measure to illustrate the impact of credit enhancement income resulting from credit enhanced loans on non-interest income:


($ in thousands; unaudited)	Three Months Ended December 31, 2024			Year Ended December 31, 2024
Total non-interest income	$	5,603		$	22,485
Less: credit enhancement income		(25	)		(111	)
Total non-interest income less credit enhancement income	$	5,578		$	22,374

Total non-interest income less indemnification income is a non-GAAP measure that illustrates the impact of credit enhancement income on non-interest income. The most directly comparable GAAP measure is non-interest income.

The following non-GAAP measure is presented to illustrate the effect of the credit enhancement program that creates the credit enhancement on the allowance for credit losses:


($ in thousands; unaudited)	As of December 31, 2024
Allowance for credit losses	$	(13,176	)
Less: allowance for credit losses related to credit enhanced loans		(111	)
Allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans	$	(13,065	)

The allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans is a non-GAAP measure that reflects the effect of the credit enhancement program on the allowance for credit losses. The total outstanding balance of loans held for investment with credit enhancement as of December 31, 2024 was approximately $0.9 million.

The MIL Network –

January 31, 2025

MIL-OSI: Employers Holdings, Inc. Schedules Fourth Quarter and Full-Year 2024 Earnings Release and Conference Call

Source: GlobeNewswire (MIL-OSI)

RENO, Nev., Jan. 30, 2025 (GLOBE NEWSWIRE) — Employers Holdings, Inc. (the “Company”) (NYSE:EIG) today announced that it will release its fourth quarter and full-year 2024 financial results after market close on Thursday, February 20, 2025, after which these materials will be available on the Company’s website at www.employers.com through the “Investors” link.

Conference Call Details
The Company will then review these financial results via a conference call and webcast on Friday, February 21, 2025, at 11:00 a.m. EST / 8:00 a.m. PST.

To participate in the live conference call, you must first register here. Once registered you will receive dial-in numbers and a unique PIN number. The webcast will be accessible on the Company’s website at www.employers.com through the “Investors” link.

An archived version of the webcast will be accessible on the Company’s website following the live call.

About EMPLOYERS

Employers Holdings, Inc. (NYSE: EIG), is a holding company with subsidiaries that are specialty providers of workers’ compensation insurance and services (collectively “EMPLOYERS®”) focused on small and mid-sized businesses engaged in low-to-medium hazard industries. EMPLOYERS leverages over a century of experience to deliver comprehensive coverage solutions that meet the unique needs of its customers. Drawing from its long history and extensive knowledge, EMPLOYERS empowers businesses by protecting their most valuable asset – their employees – through exceptional claims management, loss control, and risk management services, creating safer work environments.

EMPLOYERS is also proud to offer Cerity®, which is focused on providing digital-first, direct-to-consumer workers’ compensation insurance solutions with fast, and affordable coverage options through a user-friendly online platform.

EMPLOYERS operates throughout the United States, apart from four states that are served exclusively by their state funds. Insurance is offered through Employers Insurance Company of Nevada, Employers Compensation Insurance Company, Employers Preferred Insurance Company, Employers Assurance Company, and Cerity Insurance Company, all rated A (Excellent) by A.M. Best. Not all companies do business in all jurisdictions. EIG Services, Inc., and Cerity Services, Inc., are subsidiaries of Employers Holdings, Inc. EMPLOYERS® is a registered trademark of EIG Services, Inc., and Cerity® is a registered trademark of Cerity Services, Inc. For more information, please visit www.employers.com and www.cerity.com.

Contact: Michael Paquette mpaquette@employers.com

The MIL Network –

January 31, 2025

MIL-OSI: Arbor Realty Trust Announces Tax Treatment of 2024 Dividends

Source: GlobeNewswire (MIL-OSI)

UNIONDALE, N.Y., Jan. 30, 2025 (GLOBE NEWSWIRE) — Arbor Realty Trust, Inc. (NYSE: ABR), today announced the tax treatment of its 2024 dividend distributions for common and preferred shares of beneficial interest.

For tax reporting purposes, 100% of the distributions paid on our common stock during 2024 will be classified as dividend income. The 2024 taxable distributions with respect to our common stock traded under ticker symbol ABR are summarized as follows:

Common Shares (CUSIP #038923108)
Record Date	Payment Date	Total Distribution Per Share		Non-Qualified Dividend ⁽¹⁾		Qualified Dividend		Capital Gain Distribution
3/4/2024	3/15/2024	$	0.43	$	0.43	$	0.00	$	0.00
5/17/2024	5/31/2024		0.43		0.43		0.00		0.00
8/16/2024	8/30/2024		0.43		0.43		0.00		0.00
11/15/2024	11/27/2024		0.43		0.43		0.00		0.00
		$	1.72	$	1.72	$	0.00	$	0.00

The 2024 taxable distributions with respect to our 6.375% Series D Cumulative Redeemable Preferred Stock traded under ticker symbol ABR-PD are summarized as follows:

6.375% Series D Cumulative Redeemable Preferred Stock (CUSIP #038923876)
Record Date	Payment Date	Total Distribution Per Share		Non-Qualified Dividend ⁽¹⁾		Qualified Dividend		Capital Gain Distribution
1/15/2024	1/30/2024	$	0.3984375	$	0.3984375	$	0.00	$	0.00
4/15/2024	4/30/2024		0.3984375		0.3984375		0.00		0.00
7/15/2024	7/30/2024		0.3984375		0.3984375		0.00		0.00
10/15/2024	10/30/2024		0.3984375		0.3984375		0.00		0.00
		$	1.5937500	$	1.5937500	$	0.00	$	0.00

The 2024 taxable distributions with respect to our 6.25% Series E Cumulative Redeemable Preferred Stock traded under ticker symbol ABR-PE are summarized as follows:

6.25% Series E Cumulative Redeemable Preferred Stock (CUSIP #038923868)
Record Date	Payment Date	Total Distribution Per Share		Non-Qualified Dividend ⁽¹⁾		Qualified Dividend		Capital Gain Distribution
1/15/2024	1/30/2024	$	0.390625	$	0.390625	$	0.00	$	0.00
4/15/2024	4/30/2024		0.390625		0.390625		0.00		0.00
7/15/2024	7/30/2024		0.390625		0.390625		0.00		0.00
10/15/2024	10/30/2024		0.390625		0.390625		0.00		0.00
		$	1.562500	$	1.562500	$	0.00	$	0.00

The 2024 taxable distributions with respect to our 6.25% Series F Fixed to Floating Cumulative Redeemable Preferred Stock traded under ticker symbol ABR-PF are summarized as follows:

6.25% Series F Fixed to Floating Cumulative Redeemable Preferred Stock (CUSIP #038923850)
Record Date	Payment Date	Total Distribution Per Share		Non-Qualified Dividend ⁽¹⁾		Qualified Dividend		Capital Gain Distribution
1/15/2024	1/30/2024	$	0.390625	$	0.390625	$	0.00	$	0.00
4/15/2024	4/30/2024		0.390625		0.390625		0.00		0.00
7/15/2024	7/30/2024		0.390625		0.390625		0.00		0.00
10/15/2024	10/30/2024		0.390625		0.390625		0.00		0.00
		$	1.562500	$	1.562500	$	0.00	$	0.00

(1) May be eligible for the 20% qualified business income deduction applicable to certain REIT dividends under IRC Section 199A(b)(1)(B).

For shareholders that may be required to report excess inclusion income to the Internal Revenue Service, we are pleased to report that in 2024, we will not pass through any excess inclusion income to our shareholders. As a result, no portion of the 2024 dividends should be treated as excess inclusion income for federal income tax purposes.

We do not issue K-1s to holders of our common and preferred stock. Please contact your financial advisor or broker to obtain information on a 1099 form.

Note: Shareholders are encouraged to consult with their tax advisors as to their specific tax treatment of our dividend distributions.

About Arbor Realty Trust, Inc.

Arbor Realty Trust, Inc. (NYSE: ABR) is a nationwide real estate investment trust and direct lender, providing loan origination and servicing for multifamily, single-family rental (SFR) portfolios, and other diverse commercial real estate assets. Headquartered in New York, Arbor manages a multibillion-dollar servicing portfolio, specializing in government-sponsored enterprise products. Arbor is a leading Fannie Mae DUS® lender and Freddie Mac Optigo® Seller/Servicer, and an approved FHA Multifamily Accelerated Processing (MAP) lender. Arbor’s product platform also includes bridge, CMBS, mezzanine and preferred equity loans. Rated by Standard and Poor’s and Fitch Ratings, Arbor is committed to building on its reputation for service, quality and customized solutions with an unparalleled dedication to providing our clients excellence over the entire life of a loan.

Safe Harbor Statement

Certain items in this press release may constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Arbor can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Arbor’s expectations include, but are not limited to, changes in economic conditions generally, and the real estate markets specifically, continued ability to source new investments, changes in interest rates and/or credit spreads, and other risks detailed in Arbor’s Annual Report on Form 10-K for the year ended December 31, 2023 and its other reports filed with the SEC. Such forward-looking statements speak only as of the date of this press release. Arbor expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Arbor’s expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.

Contact:
Arbor Realty Trust, Inc.
Paul Elenio, Chief Financial Officer
516-506-4422
pelenio@arbor.com

The MIL Network –

January 31, 2025

MIL-OSI USA: Barrasso: Confirm Doug Burgum and Chris Wright to Lead America’s Golden Age of Energy Dominance

US Senate News:

Source: United States Senator for Wyoming John Barrasso
WASHINGTON, D.C. – U.S. Senator John Barrasso (R-Wyo.), Senate Majority Whip, today spoke on the Senate floor ahead of confirmation votes for Governor Doug Burgum, President Donald J. Trump’s nominee to be the Secretary of the Interior, and Chris Wright, President Donald J. Trump’s nominee to be the Secretary of Energy.
Click HERE to watch Senator Barrasso’s remarks.
Sen. Barrasso’s remarks as prepared:
“I rise today to talk about prices, energy, and the economy.
“My message is simple: Unleashing American energy will help lower prices. It is essential.
“Energy is often called the master resource. By controlling our own energy production, we control our own future.
“Not long ago, America was the leading producer of energy in the world. President Trump made America energy independent for the first time in decades.
“That changed in four short years under the prior administration. We went from energy dominance to energy dependence.
“The previous administration went on a regulatory rampage. It was disastrous. The result was painfully high prices for food and for fuel.
“Suddenly, Washington was attacking energy producers and energy workers in states like my home state of Wyoming. America found itself turning to adversaries for energy.
“Let me ask a simple question.
“Does anyone believe we were better off relying on dictators in China, Russia, Venezuela and Iran to power America?
“Does anyone believe we were better off when energy prices were sky high?
“Were Americans more prosperous?
“The answer is no.
“For the past four years, the previous administration treated energy as the enemy.
“Governor Doug Burgum and Chris Wright will treat American energy as the God-given blessing it is.
“Available, affordable, reliable, American energy is an asset.
“Energy is the source of American strength. It is a solution to bring down painfully high prices.
“America is an energy superpower. We should act like it.
“Working together, Governor Burgum and Chris Wright will be a powerhouse energy team.
“Governor Burgum grew up in Arthur, North Dakota – population: 400.
“He studied business at Stanford University. He built Great Plains, a software company, into a global public company.
“As Governor of North Dakota for the last 8 years, he drove his state’s transformation into an energy and technology leader.
“Instead of blocking energy production, he invited and incentivized companies to operate in North Dakota. In turn, his state produced more and more energy.
“In his Senate hearing, Governor Burgum explained this success.
“He said, ‘We live in a time of tremendous abundance, and we can access that abundance by prioritizing innovation over regulation.’
“He is spot on.
“I questioned Governor Burgum in the Energy and Natural Resources Committee.
“We have more than 600,000 acres of federal land in Wyoming that were previously approved for energy production.
“The previous administration never offered those acres for lease.
“It also blocked using land even though energy explorers purchased the right to that land over 4 years ago.
“I am glad Governor Burgum committed to quickly address this issue. He will take the common-sense action of unlocking our lands for oil and gas production.
“Chris Wright is also an innovative leader.
“He studied nuclear fusion at the Massachusetts Institute of Technology. He then worked in solar and geothermal engineering.
“At Liberty Energy – a fracking company he founded and where he is currently the CEO – Wright’s creative, data-driven leadership kickstarted the American fracking revolution.
“What I like most about Mr. Wright is that he tells the truth about energy production.
“He acknowledges climate change is real. He knows more American energy is the solution, not the problem. His energy realism is welcomed news.
“When I spoke with Mr. Wright in the Energy and Natural Resources Committee, we agreed about the need for an all-of-the-above energy strategy,including nuclear energy.
“Mr. Wright agrees with me that it is not in America’s best interest to be dependent on imported uranium from Russia.
“Congress passed my legislation to ban the import of Russian uranium in the United States. The Secretary of Energy has discretion to provide waivers to companies to import Russian uranium.
“I am pleased that Mr. Wright committed to using these waivers only in very limited and extreme circumstances.
“He also pledged to work with us to end uranium imports from Communist China.
“These are positive steps towards rebuilding America’s nuclear supply.
“Both Governor Burgum and Mr. Wright are optimistic about America’s energy future.
“I strongly support them. They are America’s energy all stars.
“They have laid out an inspiring vision for lowering prices, building up our energy supply, and dealing with our adversaries from a position of strength.
“Later today, the Senate will vote to confirm Governor Burgum. Chris Wright’s confirmation will soon follow. They deserve strong support here in the Senate.
“With their leadership, the age of climate alarmism is over. The golden age of American energy dominance is here.”

MIL OSI USA News –

January 31, 2025

MIL-OSI Banking: Apple reports first quarter results

Source: Apple

Headline: Apple reports first quarter results

Apple periodically provides information for investors on its corporate website, apple.com, and its investor relations website, investor.apple.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and details related to its annual meeting of shareholders.

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation those about payment of the Company’s quarterly dividend and future business plans. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Risks and uncertainties include without limitation: effects of global and regional economic conditions, including as a result of government policies, geopolitical tensions, conflict, terrorism, natural disasters, and public health issues; risks relating to the design, manufacture, introduction, and transition of products and services in highly competitive and rapidly changing markets, including from reliance on third parties for components, technology, manufacturing, applications, support, and content; risks relating to information technology system failures, network disruptions, and failure to protect, loss of, or unauthorized access to, or release of, data; and effects of unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, and stock price is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements, which speak only as of the date they are made.

About Apple

Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, AirPods, Apple Watch, and Apple Vision Pro. Apple’s six software platforms — iOS, iPadOS, macOS, watchOS, visionOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, iCloud, and Apple TV+. Apple’s more than 150,000 employees are dedicated to making the best products on earth and to leaving the world better than we found it.

MIL OSI Global Banks –

January 31, 2025

MIL-OSI Submissions: OPEC Fund and Mauritania strengthen cooperation with US$120 million-partnership agreement

Source: The OPEC Fund for International Development

January 30, 2025: The OPEC Fund for International Development (OPEC Fund) and the Islamic Republic of Mauritania have signed a landmark Country Partnership Framework Agreement to cooperate on key development initiatives during the period 2025-2027, earmarking US$120 million in new development financing focusing on the country’s development priorities.

The funding will finance critical projects that contribute to projects promoting renewable energy, clean water, food security, improved transport and clean cooking. In addition the OPEC Fund is pledging to provide up to US$500,000 in grants for capacity-building, project preparation and technical assistance.

OPEC Fund President Abdulhamid Alkhalifa said during a visit to the capital Nouakchott: “We are proud to help improve the lives of people and communities for a more resilient future.

Our commitment to Mauritania is focused on bolstering key sectors of the economy. Technical assistance and strong project preparation are vital to mobilize additional development funding, enable public-private partnerships (PPPs) and attract private sector investment.”

An OPEC Fund delegation led by President Alkhalifa is visiting Mauritania from January 30-31, 2025. The delegation expects to meet Mauritanian President Mohamed Ould Ghazouani, Prime Minister El Moctar Ould Djay, Minister of Economy and Finance Sid’Ahmed Ould Bouh and other government officials to discuss implementation of the Country Partnership Framework Agreement and explore opportunities for further cooperation.

The OPEC Fund’s financing will support key projects that align with the country’s objectives of advancing clean energy, food security, water & sanitation while supporting sustainable and inclusive development and strengthening infrastructure for women and youth in particular. Joint initiatives also aim to strengthen Mauritania’s PPP regulatory framework and boost private sector investment.

The Country Partnership Framework Agreement underscores the longstanding relationship between the OPEC Fund and Mauritania, with more than US$250 million in loans provided to the country for various infrastructure and development projects to date.

About the OPEC Fund

The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively.

The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world.

The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education.

To date, the OPEC Fund has committed more than US$29 billion to development projects in over 125 countries with an estimated total project cost of more than US$200 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+, Outlook Stable by S&P. Our vision is a world where sustainable development is a reality for all.

MIL OSI – Submitted News –

January 31, 2025

MIL-OSI New Zealand: Miners celebrate support for economic growth – Straterra

Source: Straterra Inc

Miners are celebrating the Government’s support for growing mining’s contribution to the economy with the release of a minerals strategy and critical minerals list today, says Straterra chief executive Josie Vidal.

“The Government is listening, so this is a good day – not just for miners, but also all the businesses that make mining possible, including those producing mining equipment, technology, and services,” Vidal says. “They provide jobs and contribute to the economy. We have been asking for some years for buy-in from the Government to support mining growth that benefits workers in New Zealand, and their communities.

“It is great to see facts, evidence, and science being used in decision making to further develop mining. Let’s be clear, that is not at the expense of the environment and there won’t be a mine on every corner.

“The strategy has been developed through consultation and it is important it has a clear vision. We need this to put a marker in the ground for global markets indicating that we can be part of the minerals supply chain. Minerals are needed for energy, technology, medicine, transport, infrastructure, communications, and food production.

“Identifying critical minerals helps with this. New Zealand has its own unique path and that includes acknowledgement that some of what is already mined here is critical to our economy. So, the list released today rightly includes gold and metallurgical coal.

“While thermal coal not on the list, it does not mean it is not critical, and the strategy acknowledges the role thermal coal plays in keeping the lights on and businesses running. Coal is critical to national energy security and users of coal energy face a supply risk if domestic miners are forced to exit the market before affordable alternative fuel sources are readily available.

“Productivity is at the heart of the strategy and mining is one of the most productive sectors in New Zealand, which translates into high wages.

“The strategy recognises the value of responsible mining and New Zealand can be proud our strict employment and health and safety laws and stringent environmental regulations that back that.

“What has been missing is an enabling business environment. The Fast-track Approvals Act is a game changer and there is interest in it from law makers around the globe.

“We also need investment and with that, basics such as banking and insurance. While on the investment front there is plenty of interest in New Zealand mining, is disappointing to see debanking of coal mining in New Zealand due to arbitrary moral judgements. If banks start making ‘moral’ judgements, where does that end? I fail to see how banks can refuse to do business with legal and legitimate business entities.

“We must not go backwards now on political whims. The foundations are starting to form to enable the mining sector to double the value of exports and contribute to economic growth, jobs, and regional development and to do what benefits New Zealanders.”

Straterra is the industry association representing New Zealand’s minerals and mining sector.

MIL OSI New Zealand News –

January 31, 2025

MIL-OSI New Zealand: Housing Market – Housing market close to a trough – CoreLogic

Source: CoreLogic

Property values in Aotearoa New Zealand edged -0.1% lower in January, marking the fifth month in a row with limited movement.

The CoreLogic Home Value Index (HVI) shows that after a cumulative decline of -4.1% over the six months from March to August, there has only been a further combined fall of -0.4% since then – a potential sign that a rebound in prices could be taking shape.

The national median value now stands at $803,819, which is -17.5% below the record highs from late 2021/early 2022, but still 16.3% above the pre-COVID level from March 2020.

Around the main centres, it was a broadly flat month in January, with Tauranga and Ōtepoti Dunedin both seeing growth of +0.1%, and Tāmaki Makaurau Auckland and Ōtautahi Christchurch at -0.1%. Kirikiriroa Hamilton stood out, growing +0.5%, while Te Whanganui-a-Tara Wellington remained soft (-0.6%).

CoreLogic NZ Chief Property Economist, Kelvin Davidson said the recent stability in property values at the national level could be a sign of future growth potential.
“Since the ‘mini downturn’ seen through the middle part of last year petered out in August, national property values have been in a holding pattern – not moving clearly in either direction,” he said.

“But with mortgage rates having dropped significantly from their peaks, property sales volumes have continued to rise in recent months and may well start to reduce the available stock of listings on the market in the near term.”

“That would create more competitive pressure amongst buyers, and it wouldn’t be a surprise to see property values start to rise again shortly.”

He noted some caution was still warranted.

“After all, not all areas have stopped falling, including Wellington. Given that the economy remains soft and the labour market subdued, it is unlikely we will see a sharp upturn in values.”

He also noted debt to income ratio caps will also play a role in dampening the market in 2025.

Index results for January 2025 – national and main centres

Month

Quarter

Annual

From post-COVID peak

From 2024 mini peak

From pre-COVID levels

Median value

Aotearoa New Zealand

-0.1%

-0.3%

-4.3%

-17.5%

-4.5%

16.3%

$803,819

Tāmaki Makaurau Auckland

-0.1%

-0.3%

-6.5%

-22.1%

-6.5%

8.5%

$1,069,140

Kirikiriroa Hamilton

0.5%

1.6%

-1.6%

-12.0%

-1.7%

20.0%

$748,944

Tauranga

0.1%

0.5%

-3.6%

-17.1%

-3.8%

21.1%

$904,920

Te-Whanganui-a-Tara Wellington*

-0.6%

-1.7%

-7.4%

-25.1%

-8.5%

4.8%

$790,007

Ōtautahi Christchurch

-0.1%

-0.1%

0.0%

-6.8%

-1.1%

41.0%

$661,721

Ōtepoti Dunedin

0.1%

0.1%

0.9%

-10.8%

-1.2%

11.1%

$611,677

Tāmaki Makaurau Auckland

Tamaki Makaurau Auckland’s sub-markets were a mixed bag in January, with North Shore recording a 0.3% rise, and Waitakere and Manukau flat (with Auckland City only down slightly, by -0.1%). However, in the more outlying areas the value patterns were weaker, with falls of between -0.3% and -0.5% in Papakura, Franklin, and Rodney.

Over a slightly longer three-month horizon, there have been signs of growth in North Shore and Waitakere (0.8% and 0.7% respectively), although other parts of Auckland have remained more subdued.
Mr Davidson commented: “It would appear that the downwards momentum across many parts of Auckland is slowing, and North Shore certainly looks to be a market worth keeping an eye on as a possible guide to where the rest of the city goes in the next few months.”

“Even so, with buyers still having plenty of choice, not least because of the pipeline of new property still being completed in Auckland, it’s difficult to see a broad-based upturn kicking off anytime soon.”

Month

Quarter

Annual

From post-COVID peak

From 2024 mini peak

From pre-COVID levels

Median value

Rodney

-0.5%

-1.8%

-7.0%

-21.5%

-7.1%

14.3%

$1,216,586

Te Raki Paewhenua North Shore

0.3%

0.8%

-3.6%

-18.0%

-3.6%

10.1%

$1,291,965

Waitakere

0.0%

0.7%

-5.1%

-23.8%

-5.1%

7.4%

$942,671

Auckland City

-0.1%

-0.8%

-8.1%

-23.1%

-8.1%

4.1%

$1,131,326

Manukau

0.0%

0.0%

-6.4%

-22.9%

-6.4%

12.1%

$1,014,115

Papakura

-0.4%

-0.9%

-7.2%

-23.4%

-7.5%

12.6%

$815,455

Franklin

-0.3%

-0.5%

-5.8%

-22.7%

-5.8%

16.3%

$900,200

Te Whanganui-a-Tara Wellington

The wider Te Whanganui-a-Tara Wellington area still stands out in terms of lingering property value weakness. Indeed, values dipped across the board in January, ranging from fairly modest declines in Kapiti Coast and Porirua, up to drops of 0.6% in Lower Hutt and 0.7% in Wellington City itself.

As Mr Davidson noted: “Parts of the Wellington area may be showing signs of optimism, or at least less pessimism.”

“But the latest data still shows that values in and around the Capital are generally facing continued downwards pressure, linked to the elevated level of listings available on the market, and presumably also the underlying concerns about public sector employment.”

Month

Quarter

Annual

From post-COVID peak

From 2024 mini peak

From pre-COVID levels

Median value

Kāpiti Coast

-0.1%

0.0%

-4.5%

-21.9%

-6.7%

13.5%

$808,515

Porirua

-0.2%

0.2%

-3.7%

-22.4%

-4.7%

11.0%

$752,261

Te Awa Kairangi ki Uta Upper Hutt

-0.4%

-1.4%

-6.1%

-24.2%

-6.9%

7.1%

$708,418

Te Awa Kairangi ki Tai Lower Hutt

-0.6%

-1.8%

-6.7%

-26.3%

-8.1%

6.7%

$670,538

Wellington City

-0.7%

-2.1%

-8.6%

-25.3%

-9.8%

2.4%

$886,088

Regional results

The early signs of some modest gains in property values that had started to become evident around regional areas in November and December have continued into January. That being said, Gisborne did drop by -0.5%, and Palmerston North and Invercargill also edged lower in January. But seven of the other eight markets covered in this section were either flat or rose by up to 0.3%, with New Plymouth showing a more robust 0.9% increase.

“It remains early in the process, but there are signs in a number of provincial areas that lower mortgage rates have brought the falls in property values to an end, and some modest growth might even have restarted in certain markets,” Mr Davidson said.

“Again, there’s cause for caution about how strong or sudden an upturn in property values might be in 2025, especially with the unemployment rate still rising. But the first signs of growth nevertheless seem to be emerging.”

Month

Quarter

Annual

From post-COVID peak

From 2024 mini peak

From pre-COVID levels

Median value

Ahuriri Napier

0.2%

1.3%

-3.6%

-19.1%

-3.6%

14.5%

$689,554

Te Papaioea Palmerston North

-0.2%

-0.7%

-3.4%

-19.0%

-3.8%

15.1%

$601,785

Heretaunga Hastings

0.1%

-0.6%

-4.9%

-18.9%

-4.9%

22.0%

$690,337

Whangārei

0.3%

-0.2%

-5.8%

-20.8%

-5.8%

12.8%

$719,145

Whanganui

0.1%

-0.2%

2.5%

-13.3%

-1.7%

28.8%

$486,074

Rotorua

0.0%

-0.1%

-0.4%

-13.5%

-1.5%

22.5%

$608,130

Tūranganui-a-Kiwa Gisborne

-0.5%

-1.6%

-7.8%

-17.9%

-8.5%

23.7%

$581,918

Whakatū Nelson

0.1%

-0.3%

1.7%

-11.7%

-0.3%

15.6%

$742,790

Ngāmotu New Plymouth

0.9%

0.9%

0.6%

-1.0%

-1.0%

48.1%

$703,040

Waihōpai Invercargill

-0.2%

-0.5%

2.5%

-2.8%

-0.5%

27.7%

$468,161

Tāhuna Queenstown

0.1%

0.4%

2.4%

-5.1%

-0.7%

31.5%

$1,631,244

Property market outlook

Looking ahead, Mr Davidson noted that the continued slowdown in net migration continues to dampen overall population growth and marginal demand for property, especially in the rental sector.
He said that would likely weigh on investor sentiment in the near term.

“Even so, the tax rules have become more favourable for mortgaged investors again, and of course lower interest rates are shrinking the top-ups from other income that are typically required to sustain rental property cashflows. Some extra demand from investors this year is firmly on the cards, although the debt to income ratio rules will be something this group may have to weigh up too.”

“Other buyer groups will also tend to target property in a lower mortgage rate environment, and certainly conditions remain favourable for first home buyers too. A more liquid and faster-moving market may also help existing owner-occupiers to get their house sold and allow them to press ahead with the next purchase.”

“All in all, 2025 looks set to be a stronger year for the property market than 2024, but the slowly emerging growth in values in some areas is not universal yet, and the upturn this year could well be more muted than in the past,” he concluded.

For more property news and insights, visit www.corelogic.co.nz/news-research.

Notes:

The CoreLogic Hedonic Home Value Index (HVI) is calculated using a hedonic regression methodology that addresses the issue of compositional bias associated with median price and other measures. In simple terms, the index is calculated using recent sales data combined with information about the attributes of individual properties such as the number of bedrooms and bathrooms, land area and geographical context of the dwelling. By separating each property into its various formational and locational attributes, observed sales values for each property can be distinguished between those attributed to the property’s attributes and those resulting from changes in the underlying residential property market. Additionally, by understanding the value associated with each attribute of a given property, this methodology can be used to estimate the value of dwellings with known characteristics for which there is no recent sales price by observing the characteristics and sales prices of other dwellings which have recently transacted. It then follows that changes in the market value of the entire residential property stock can be accurately tracked through time.

The detailed ‘frequently asked questions’ and methodological information can be found at: https://www.corelogic.co.nz/our-data/hedonic-index

MIL OSI New Zealand News –

January 31, 2025

MIL-OSI New Zealand: Tax policy proposal would boost NZ racing

Source: New Zealand Government

Racing Minister, Winston Peters has announced the Government is preparing public consultation on GST policy proposals which would make the New Zealand racing industry more competitive.

“The racing industry makes an important economic contribution. New Zealand thoroughbreds are in demand overseas as racehorses and for breeding. The domestic thoroughbred industry put nearly a billion dollars into the economy in 2022/23,” Mr Peters says.

Bloodstock breeders often join together in a joint venture when investing in a thoroughbred, helping with the initial purchase price and ongoing costs.

Mr Peters says common practice amongst joint ventures including bloodstock breeders is to individually claim GST deductions in their own GST returns. Inland Revenue has however recently concluded that the current rules do not allow this.

“To comply with this, breeders would incur the compliance cost of registering and filing GST returns for each horse separately every month or every two months. The Government is proposing to take a pragmatic approach and avoid imposing compliance costs by allowing current practice.

“If this proposal proceeds, it will place the New Zealand industry on a more equal footing with the Australian industry,” Mr Peters said.

The consultation document is expected to be published in the coming months on taxpolicy.ird.govt.nz.

Mr Peters also congratulated New Zealand Bloodstock on the just completed 99^th National Yearling Sales at Karaka, with combined sales of $86m.

A highlight was the record $2.4m paid for a Savabeel-sired filly – the highest price ever paid for a filly sold in New Zealand.

“The sales show the New Zealand bloodstock industry is in good health and the industry presents major potential for growth both domestically and through international interest,” Mr Peters says.

MIL OSI New Zealand News –

January 31, 2025

MIL-OSI: Spartan Capital Securities Serves as Sole Placement Agent in Virpax Pharmaceuticals’ $6 Million Follow-On Offering

Source: GlobeNewswire (MIL-OSI)

NEW YORK, NY, Jan. 30, 2025 (GLOBE NEWSWIRE) — Spartan Capital Securities, LLC, a leading full-service investment banking and financial advisory firm, is proud to announce its role as sole placement agent for Virpax Pharmaceuticals, Inc. (Nasdaq: VRPX) in the successful close of its $6 million follow-on offering.

Virpax Pharmaceuticals, Inc. (Nasdaq: VRPX) is a preclinical-stage pharmaceutical company pioneering novel drug delivery systems for pain management and central nervous system disorders. The proceeds from the offering will enable Virpax to support the ongoing clinical trial development of Probudur, fund marketing and advertising efforts, for general corporate purposes, and to provide working capital.

“We are pleased to support Virpax Pharmaceuticals in this offering and look forward to seeing the continued progress of their innovative drug delivery technologies,” said John Lowry, CEO of Spartan Capital Securities. “Spartan Capital remains committed to helping emerging biotech and pharmaceutical companies access the capital they need to advance groundbreaking solutions that address unmet medical needs.”

Legal counsel for Virpax Pharmaceuticals was provided by Sichenzia Ross Ference Carmel LLP, with representation by Ross Carmel and Benjamin Sklar. Spartan Capital Securities was represented by Lucosky Brookman LLP, with Scott Linsky, Raymond Ressy, and Xiafan Cheng serving as counsel.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under applicable securities laws.

About Virpax Pharmaceuticals, Inc.

Virpax Pharmaceuticals, Inc. (Nasdaq: VRPX) is a preclinical-stage pharmaceutical company focused on developing novel and proprietary drug delivery systems to address various pain indications and enhance compliance. The company’s innovative pipeline aims to advance non-opioid and non-addictive treatments for pain and central nervous system disorders, improving the quality of life for patients worldwide.

About Spartan Capital Securities, LLC

Spartan Capital Securities, LLC is a premier full-service investment banking firm offering a comprehensive range of advisory services to institutional clients and high-net-worth individuals. Known for its expertise in capital raising, strategic advisory, and asset management, Spartan Capital delivers tailored solutions to meet clients’ financial goals. For more information about Spartan Capital Securities, visit www.spartancapital.com.

Contact:
Spartan Capital Securities, LLC
45 Broadway, 19th Floor
New York, NY 10006
investmentbanking@spartancapital.com

The MIL Network –

January 31, 2025

MIL-OSI: Riverview Bancorp Reports Net Income of $1.2 Million in Third Fiscal Quarter 2025; Results Highlighted by Net Interest Margin Expansion

Source: GlobeNewswire (MIL-OSI)

VANCOUVER, Wash., Jan. 30, 2025 (GLOBE NEWSWIRE) — Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the “Company”) today reported earnings of $1.2 million, or $0.06 per diluted share, in the third fiscal quarter ended December 31, 2024, compared to $1.6 million, or $0.07 per diluted share in the second fiscal quarter ended September 30, 2024, and $1.5 million, or $0.07 per diluted share, in the third fiscal quarter a year ago.

In the first nine months of fiscal 2025, net income was $3.8 million, or $0.18 per diluted share, compared to $6.8 million, or $0.32 per diluted share, in the first nine months of fiscal 2024.

“Riverview’s operating performance during the third fiscal quarter reflected steady improvements, with net interest margin expansion as a result of stabilizing funding costs and higher loan yields,” stated Nicole Sherman, President and Chief Executive Officer. “While loan payoffs impacted net loan growth during the third quarter, loan production outperformed the previous three quarters and newly funded loans are being boarded at higher rates than the legacy portfolio. Although we still have work to do, we remain focused on managing our balance sheet and improving our performance metrics and profitability in the remainder of fiscal year 2025.”

Third Quarter Highlights (at or for the period ended December 31, 2024)

Net interest income increased to $9.4 million for the quarter, compared to $8.9 million in the preceding quarter and $9.3 million in the third fiscal quarter a year ago.
Net interest margin (“NIM”) was 2.60% for the quarter, a 14 basis point improvement compared to the preceding quarter and a 11 basis point improvement compared to the year ago quarter.
Riverview Trust Company assets under management increased to $872.6 million at December 31, 2024. Asset management fees continue to improve and increased to $1.4 million for the quarter ended December 31, 2024.
Asset quality remained strong, with non-performing assets at $469,000, or 0.03% of total assets at December 31, 2024.
Riverview recorded no provision for credit losses during the current quarter, compared to a $100,000 provision in the preceding quarter and no provision in the year ago quarter.
Total loans were $1.05 billion at December 31, 2024, compared to $1.06 billion at September 30, 2024, and $1.02 billion at December 31, 2023.
Total deposits were $1.22 billion at December 31, 2024, compared to $1.24 billion at September 30, 2024 and $1.22 billion at December 31, 2023.
Tangible book value per share (non-GAAP) was $6.20 at December 31, 2024, compared to $6.33 at September 30, 2024, and $6.21 at December 31, 2023.

Income Statement Review
Riverview’s net interest income was $9.4 million in the current quarter, compared to $8.9 million in the preceding quarter, and $9.3 million in the third fiscal quarter a year ago. The increase compared to the preceding quarter was driven by higher interest earning asset yields due to higher origination rates on new loan growth as well as loan repricing in addition to the recognition of a loan prepayment fee and related loan fees totaling $318,000. In the first nine months of fiscal 2025, net interest income was $27.2 million, compared to $29.5 million in the first nine months of fiscal 2024. Investment income decreased compared to the nine month period a year ago due to the strategic investment restructuring that was executed in the fourth quarter of fiscal 2024.

Riverview’s NIM was 2.60% for the third quarter of fiscal 2025, a 14 basis point increase compared to 2.46% in the preceding quarter and a 11 basis-point increase compared to 2.49% in the third quarter of fiscal 2024. “As anticipated, NIM improved during the quarter, as higher yields in interest earning assets offset the modest increase in deposit costs,” said David Lam, EVP and Chief Financial Officer. “With the recent Fed rate reductions, we anticipate deposit costs to further stabilize in future quarters. Additionally, the rate cuts reduced the interest expense on borrowings, which also benefitted NIM during the current quarter.” In the first nine months of fiscal 2025, the net interest margin was 2.51% compared to 2.64% in the same period a year earlier.

Investment securities decreased $17.8 million during the quarter to $337.2 million at December 31, 2024, compared to $354.9 million at September 30, 2024, and decreased $92.0 million compared to $429.1 million at December 31, 2023. The average securities balances for the quarters ended December 31, 2024, September 30, 2024, and December 31, 2023, were $364.2 million, $378.4 million, and $458.0 million, respectively. The weighted average yields on securities balances for those same periods were 1.82%, 2.05%, and 2.01%, respectively. The duration of the investment portfolio at December 31, 2024 was approximately 5.3 years. The anticipated investment cashflows over the next twelve months is approximately $42.8 million. There were no investment purchases during the third fiscal quarter of 2025.

Riverview’s yield on loans improved to 4.97% during the third fiscal quarter, compared to 4.80% in the preceding quarter, and 4.56% in the third fiscal quarter a year ago. “Loan yields improved during the current quarter as a result of higher rates on new loan originations and higher rates on existing loans that have come up for repricing, when compared to the existing loan portfolio. We continue to explore opportunities to enhance our loan yield by expanding our commercial business portfolio offerings to include more variable rate loan structures,” said Mike Sventek, EVP and Chief Lending Officer. Deposit costs increased to 1.32% during the third fiscal quarter compared to 1.26% in the preceding quarter, and 0.68% in the third fiscal quarter a year ago due to clients seeking higher deposit yields. The increase from clients seeking higher deposit yields was less impactful quarter over quarter compared to the increase from the third fiscal quarter a year ago given the relative change in the interest rate environment during those respective periods.

Non-interest income was $3.3 million during the third fiscal quarter of 2025 compared to $3.8 million in the preceding quarter and $3.1 million in the third fiscal quarter of 2024. The preceding quarter included approximately $525,000 in income related to a legal expense recovery from the prior year. In the first nine months of fiscal 2025, non-interest income increased to $10.5 million compared to $9.7 million in the same period a year ago.

Asset management fees were $1.4 million during the third fiscal quarter and the second fiscal quarter, and $1.3 million in the third fiscal quarter a year ago. Asset management fees increased compared to the year ago quarter due to new client relationships and the continued positive market performance in the equity markets during the third quarter. Riverview Trust Company’s assets under management were $872.6 million at December 31, 2024, compared to $871.6 million at September 30, 2024, and $942.4 million at December 31, 2023.

Non-interest expense was $11.2 million during the third fiscal quarter, compared to $10.7 million in the preceding quarter and $10.6 million in the third fiscal quarter a year ago. Salary and employee benefits, the largest component of non-interest expense, remained flat during the current quarter compared to the preceding quarter. Professional fees increased during the current quarter compared to the preceding quarter due to higher consulting costs. Additionally, non-interest expense for preceding quarter included a fraud loss recovery. The efficiency ratio was 87.6% for the third fiscal quarter, compared to 83.7% for the previous quarter and 85.2% in the third fiscal quarter a year ago. Year-to-date, non-interest expense was $32.8 million compared to $30.6 million in the first nine months of fiscal 2024.

Riverview’s effective tax rate for the third fiscal quarter of 2025 was 21.8%, compared to 21.4% for the preceding quarter and 20.6% for the year ago quarter.

Balance Sheet Review
While loan production increased during the third quarter, total loans decreased primarily due to two large loan payoffs. Total loans decreased $15.9 million during the quarter to $1.05 billion at December 31, 2024, compared to $1.06 billion three months earlier and increased $26.9 million compared to $1.02 billion a year earlier. Riverview’s loan pipeline was $49.1 million at December 31, 2024, compared to $43.5 million at the end of the preceding quarter. New loan originations during the quarter were $31.1 million, compared to $25.6 million in the preceding quarter and $51.3 million in the third fiscal quarter a year ago. Since December 31, 2024, the loan pipeline has increased to $64.2 million.

Undisbursed construction loans totaled $19.5 million at December 31, 2024, compared to $34.1 million at September 30, 2024, with the majority of the undisbursed construction loans expected to be funded over the next several quarters. The decrease was due to one large construction project being completed during the quarter and moving out of the construction category to a permanent loan category, before being paid off. Undisbursed homeowner association loans for the purpose of common area maintenance and repairs totaled $14.5 million at December 31, 2024, compared to $11.1 million at September 30, 2024. Revolving commercial business loan commitments totaled $46.9 million at December 31, 2024, compared to $48.4 million at September 30, 2024. Utilization on these loans totaled 17.60% at December 31, 2024, compared to 23.88% at September 30, 2024. The weighted average rate on loan originations during the quarter was 7.04% compared to 7.65% in the preceding quarter.

The office building loan portfolio totaled $113.4 million at December 31, 2024, compared to $112.4 million at September 30, 2024. The average loan balance of the office building loan portfolio was $1.5 million with an average loan-to-value ratio of 53.8% and an average debt service coverage ratio of 1.99x. Office building loans within the Portland core consists of three loans totaling $20.6 million which is approximately 18.2% of the total office building loan portfolio or 2.0% of total loans.

Non-interest checking and interest checking accounts, as a percentage of total deposits, totaled 46.8% at December 31, 2024, compared to 49.2% at September 30, 2024, and 51.1% at December 31, 2023. The decrease in non-interest checking account balances during the quarter was in part due to seasonal client calendar year-end activity for payments and distributions. As in prior quarters, money market balances and CDs increased during the quarter as we are still seeing a subset of clients still looking for higher yields. Total deposits decreased $18.5 million during the quarter to $1.22 billion at December 31, 2024, compared to $1.24 billion at September 30, 2024, and were unchanged compared to a year ago. Riverview Bank had moved customer deposits to Riverview Trust as a higher yielding deposit alternative and those assets were all retained within the Company during the period of increasing interest rates and the Company has the ability to move or reciprocate these deposits back to the Bank if the need arises.

FHLB advances decreased $18.1 million during the quarter to $84.2 million at December 31, 2024, compared to $102.3 million at September 30, 2024. FHLB advances decreased during the quarter as a result of the decrease in investment securities and loans receivable balances with the proceeds from both used to pay down borrowings.

Shareholders’ equity was $158.3 million at December 31, 2024, compared to $160.8 million three months earlier and $158.5 million one year earlier. Tangible book value per share (non-GAAP) was $6.20 at December 31, 2024, compared to $6.33 at September 30, 2024, and $6.21 at December 31, 2023. Riverview paid a quarterly cash dividend of $0.02 per share on January 14, 2025, to shareholders of record on January 2, 2025.

Credit Quality
“Asset quality metrics continue to remain very stable, as we continue to diligently monitor our loan portfolio closely for any signs of stress,” said Robert Benke, EVP and Chief Credit Officer. Non-performing loans, excluding SBA and USDA government guaranteed loans (“government guaranteed loans”) (non-GAAP) totaled $168,000 or 0.02% of total loans as of December 31, 2024, compared to $149,000, or 0.01% of total loans at September 30, 2024, and $186,000, or 0.02% of total loans at December 31, 2023. There was one non-performing government guaranteed loan totaling $301,000 at both December 31, 2024 and September 30, 2024. At December 31, 2024, including government guaranteed loans, non-performing assets were $469,000, or 0.03% of total assets.

Riverview recorded $114,000 in net loan charge-offs for the current quarter. This compared to $2,000 in net loan recoveries for the preceding quarter. Riverview recorded no provision for credit losses for the current quarter, compared to $100,000 in provision for credit losses for the preceding quarter.

Classified assets were $225,000 at December 31, 2024, compared to $326,000 at September 30, 2024, and $215,000 at December 31, 2023. The classified assets to total capital ratio was 0.1% at December 31, 2024, compared to 0.2% at September 30, 2024, and 0.1% a year earlier. Criticized assets were $50.4 million at December 31, 2024, compared to $50.7 million at September 30, 2024, and $37.2 million at December 31, 2023. Criticized assets remained stable during the current quarter compared to the prior quarter. The increase compared to a year ago was primarily due to one relationship that was moved to the criticized asset category during the preceding quarter as the loans goes through probate. The Company does not anticipate any loss from this relationship.

The allowance for credit losses was $15.4 million at December 31, 2024, compared to $15.5 million at September 30, 2024, and $15.4 million at December 31, 2023. The allowance for credit losses represented 1.47% of total loans at December 31, 2024, compared to 1.46% at September 30, 2024, and 1.51% a year earlier. The allowance for credit losses to loans, net of government guaranteed loans (non-GAAP), was 1.54% at December 31, 2024, compared to 1.53% at September 30, 2024, and 1.59% a year earlier.

Capital/Liquidity
Riverview continues to maintain capital levels well in excess of the regulatory requirements to be categorized as “well capitalized” with a total risk-based capital ratio of 16.47% and a Tier 1 leverage ratio of 10.86% at December 31, 2024. Tangible common equity to average tangible assets ratio (non-GAAP) was 8.84% at December 31, 2024.

Riverview has approximately $450.1 million in available liquidity at December 31, 2024, including $164.4 million of borrowing capacity from the FHLB and $285.7 million from the Federal Reserve Bank of San Francisco (“FRB”). At December 31, 2024, the Bank had $84.2 million in outstanding FHLB borrowings.

At December 31, 2024, the uninsured deposit ratio was 23.8%. Available liquidity under the FRB borrowing line would cover nearly 100% of the estimated uninsured deposits and available liquidity under both the FHLB and FRB borrowing lines would cover 155% of the estimated uninsured deposits.

On September 25, 2024, the Company’s Board of Directors adopted a stock repurchase program. Under this repurchase program, the Company may repurchase up to $2.0 million of the Company’s outstanding shares of common stock, in the open market, based on prevailing market prices, or in privately negotiated transactions. Once the repurchase program is effective, the repurchase program will continue until the earlier of the completion of the repurchase or 12 months after the effective date, depending upon market conditions. During the third quarter, the Company repurchased 200,073 shares of common stock at an average price of $5.43.

Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. Management has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in Riverview’s core operations reflected in the current quarter’s results and facilitate the comparison of our performance with the performance of our peers. However, these non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP. Where applicable, comparable earnings information using GAAP financial measures is also presented. Because not all companies use the same calculations, our presentation may not be comparable to other similarly titled measures as calculated by other companies. For a reconciliation of these non-GAAP financial measures, see the tables below.

Tangible shareholders’ equity to tangible assets and tangible book value per share:

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

Shareholders’ equity (GAAP)	$	158,270		$	160,774		$	158,472		$	155,588
Exclude: Goodwill		(27,076	)		(27,076	)		(27,076	)		(27,076	)
Exclude: Core deposit intangible, net		(196	)		(221	)		(298	)		(271	)
Tangible shareholders’ equity (non-GAAP)	$	130,998		$	133,477		$	131,098		$	128,241

Total assets (GAAP)	$	1,508,609		$	1,548,397		$	1,590,623		$	1,521,529
Exclude: Goodwill		(27,076	)		(27,076	)		(27,076	)		(27,076	)
Exclude: Core deposit intangible, net		(196	)		(221	)		(298	)		(271	)
Tangible assets (non-GAAP)	$	1,481,337		$	1,521,100		$	1,563,249		$	1,494,182

Shareholders’ equity to total assets (GAAP)		10.49	%		10.38	%		9.96	%		10.23	%

Tangible common equity to tangible assets (non-GAAP)		8.84	%		8.78	%		8.39	%		8.58	%

Shares outstanding		21,134,758			21,096,968			21,111,043			21,111,043

Book value per share (GAAP)	$	7.49		$	7.62		$	7.51		$	7.37

Tangible book value per share (non-GAAP)	$	6.20		$	6.33		$	6.21		$	6.07


Pre-tax, pre-provision income
	Three Months Ended									Nine Months Ended
(Dollars in thousands)	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023

Net income (GAAP)	$	1,232		$	1,557		$	1,452		$	3,755		$	6,767
Include: Provision for income taxes		343			425			377			1,021			1,897
Include: Provision for credit losses		–			100			–			100			–
Pre-tax, pre-provision income (non-GAAP)	$	1,575		$	2,082		$	1,829		$	4,876		$	8,664

Allowance for credit losses reconciliation, excluding Government Guaranteed loans

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

Allowance for credit losses	$	15,352		$	15,466		$	15,361		$	15,364

Loans receivable (GAAP)	$	1,045,109		$	1,060,977		$	1,018,199		$	1,024,013
Exclude: Government Guaranteed loans		(49,024	)		(49,983	)		(51,809	)		(51,013	)
Loans receivable excluding Government Guaranteed loans (non-GAAP)	$	996,085		$	1,010,994		$	966,390		$	973,000

Allowance for credit losses to loans receivable (GAAP)		1.47	%		1.46	%		1.51	%		1.50	%

Allowance for credit losses to loans receivable excluding Government Guaranteed loans (non-GAAP)		1.54	%		1.53	%		1.59	%		1.58	%


Non-performing loans reconciliation, excluding Government Guaranteed Loans

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

Non-performing loans (GAAP)	$	469		$	450		$	186
Less: Non-performing Government Guaranteed loans		(301	)		(301	)		–
Adjusted non-performing loans excluding Government Guaranteed loans (non-GAAP)	$	168		$	149		$	186

Non-performing loans to total loans (GAAP)		0.04	%		0.04	%		0.02	%

Non-performing loans, excluding Government Guaranteed loans to total loans (non-GAAP)		0.02	%		0.01	%		0.02	%

Non-performing loans to total assets (GAAP)		0.03	%		0.03	%		0.01	%

Non-performing loans, excluding Government Guaranteed loans to total assets (non-GAAP)		0.01	%		0.01	%		0.01	%

About Riverview
Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver, Washington – just north of Portland, Oregon, on the I-5 corridor. With assets of $1.51 billion at December 31, 2024, it is the parent company of Riverview Bank, as well as Riverview Trust Company. The Bank offers true community banking services, focusing on providing the highest quality service and financial products to commercial, business and retail clients through 17 branches, including 13 in the Portland-Vancouver area, and 3 lending centers. For the past 11 years, Riverview has been named Best Bank by the readers of The Vancouver Business Journal and The Columbian.

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements which include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions, future economic performance and projections of financial items. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated or implied by our forward-looking statements, including, but not limited to: potential adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession, the failure of the U.S. Congress to increase the debt ceiling, or slowed economic growth caused by increasing political instability from acts of war including Russia’s invasion of Ukraine, as well as supply chain disruptions, recent bank failures and any governmental or societal responses thereto; the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs and changes in the Company’s allowance for credit losses and provision for credit losses that may be impacted by deterioration in the housing and commercial real estate markets; changes in the levels of general interest rates, and the relative differences between short and long-term interest rates, deposit interest rates, the Company’s net interest margin and funding sources; the transition away from London Interbank Offered Rate toward new interest rate benchmarks; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in the Company’s market areas; secondary market conditions for loans and the Company’s ability to originate loans for sale and sell loans in the secondary market; results of examinations of the Bank by the Federal Deposit Insurance Corporation and the Washington State Department of Financial Institutions, Division of Banks, and of the Company by the Board of Governors of the Federal Reserve System, or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require the Company to increase its allowance for credit losses, write-down assets, reclassify its assets, change the Bank’s regulatory capital position or affect the Company’s ability to borrow funds or maintain or increase deposits, which could adversely affect its liquidity and earnings; legislative or regulatory changes that adversely affect the Company’s business including changes in banking, securities and tax law, and in regulatory policies and principles, or the interpretation of regulatory capital or other rules; the Company’s ability to attract and retain deposits; the unexpected outflow of uninsured deposits that may require us to sell investment securities at a loss; the Company’s ability to control operating costs and expenses; the use of estimates in determining fair value of certain of the Company’s assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risks associated with the loans on the Company’s consolidated balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect the Company’s workforce and potential associated charges; disruptions, security breaches or other adverse events, failures or interruptions in or attacks on our information technology systems or on the third-party vendors who perform several of our critical processing functions; the Company’s ability to retain key members of its senior management team; costs and effects of litigation, including settlements and judgments; the Company’s ability to implement its business strategies; the Company’s ability to successfully integrate any assets, liabilities, customers, systems, and management personnel it may acquire into its operations and the Company’s ability to realize related revenue synergies and cost savings within expected time frames; future goodwill impairment due to changes in Riverview’s business, changes in market conditions, or other factors; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; the Company’s ability to pay dividends on its common stock; the quality and composition of our securities portfolio and the impact of and adverse changes in the securities markets, including market liquidity; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting standards; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, and other external events on our business; and other economic, competitive, governmental, regulatory, and technological factors affecting the Company’s operations, pricing, products and services, and the other risks described from time to time in our reports filed with and furnished to the U.S. Securities and Exchange Commission.

The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements included in this report or the reasons why actual results could differ from those contained in such statements, whether as a result of new information or to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for fiscal 2025 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect the Company’s consolidated financial condition and consolidated results of operations as well as its stock price performance.


RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(In thousands, except share data) (Unaudited)	December 31, 2024			September 30, 2024			December 31, 2023			March 31, 2024
ASSETS

Cash (including interest-earning accounts of $12,573, $12,453, $23,717 and $12,164)	$	25,348		$	30,960		$	37,553		$	23,642
Investment securities:
Available for sale, at estimated fair value		124,874			132,953			196,461			143,196
Held to maturity, at amortized cost		212,295			221,991			232,659			229,510
Loans receivable (net of allowance for credit losses of $15,352, $15,466, $15,361, and $15,364)		1,029,757			1,045,511			1,002,838			1,008,649
Prepaid expenses and other assets		12,945			13,585			14,486			14,469
Accrued interest receivable		4,639			4,570			5,248			4,415
Federal Home Loan Bank stock, at cost		4,742			5,557			8,026			4,927
Premises and equipment, net		22,731			22,956			22,270			21,718
Financing lease right-of-use assets		1,144			1,163			1,221			1,202
Deferred income taxes, net		9,471			8,688			10,033			9,778
Goodwill		27,076			27,076			27,076			27,076
Core deposit intangible, net		196			221			298			271
Bank owned life insurance		33,391			33,166			32,454			32,676

TOTAL ASSETS	$	1,508,609		$	1,548,397		$	1,590,623		$	1,521,529

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:
Deposits	$	1,219,002		$	1,237,499		$	1,218,892		$	1,231,679
Accrued expenses and other liabilities		17,634			17,789			26,740			16,205
Advance payments by borrowers for taxes and insurance		317			848			299			581
Junior subordinated debentures		27,069			27,048			26,982			27,004
Federal Home Loan Bank advances		84,200			102,304			157,054			88,304
Finance lease liability		2,117			2,135			2,184			2,168
Total liabilities		1,350,339			1,387,623			1,432,151			1,365,941

SHAREHOLDERS’ EQUITY:
Serial preferred stock, $.01 par value; 250,000 authorized, issued and outstanding, none		–			–			–			–
Common stock, $.01 par value; 50,000,000 authorized,
December 31, 2024 – 21,134,758 issued and outstanding;
September 30, 2024 – 21,096,968 issued and outstanding;		209			211			211			211
December 31, 2023 – 21,111,043 issued and outstanding;
March 31, 2024 – 21,111,043 issued and outstanding;
Additional paid-in capital		54,227			55,057			54,982			55,005
Retained earnings		118,988			118,179			120,734			116,499
Accumulated other comprehensive loss		(15,154	)		(12,673	)		(17,455	)		(16,127	)
Total shareholders’ equity		158,270			160,774			158,472			155,588

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,508,609		$	1,548,397		$	1,590,623		$	1,521,529

RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Income
	Three Months Ended						Nine Months Ended
(In thousands, except share data) (Unaudited)	Dec. 31, 2024		Sept. 30, 2024		Dec. 31, 2023		Dec. 31, 2024		Dec. 31, 2023
INTEREST INCOME:
Interest and fees on loans receivable	$	13,201	$	12,683	$	11,645	$	37,936	$	34,288
Interest on investment securities – taxable		1,589		1,874		2,231		5,435		6,826
Interest on investment securities – nontaxable		65		65		65		195		196
Other interest and dividends		272		320		331		902		954
Total interest and dividend income		15,127		14,942		14,272		44,468		42,264

INTEREST EXPENSE:
Interest on deposits		4,101		3,855		2,059		11,403		5,264
Interest on borrowings		1,638		2,145		2,889		5,914		7,466
Total interest expense		5,739		6,000		4,948		17,317		12,730
Net interest income		9,388		8,942		9,324		27,151		29,534
Provision for credit losses		–		100		–		100		–

Net interest income after provision for credit losses		9,388		8,842		9,324		27,051		29,534

NON-INTEREST INCOME:
Fees and service charges		1,492		1,524		1,533		4,556		4,871
Asset management fees		1,443		1,433		1,266		4,434		3,920
Bank owned life insurance (“BOLI”)		225		279		211		715		669
Other, net		181		605		46		844		288
Total non-interest income, net		3,341		3,841		3,056		10,549		9,748

NON-INTEREST EXPENSE:
Salaries and employee benefits		6,471		6,477		6,091		19,336		17,979
Occupancy and depreciation		1,871		1,921		1,698		5,687		4,930
Data processing		743		695		712		2,202		2,096
Amortization of core deposit intangible		25		25		27		75		81
Advertising and marketing		317		367		282		994		950
FDIC insurance premium		174		166		178		518		530
State and local taxes		327		234		355		777		814
Telecommunications		54		52		56		153		161
Professional fees		429		304		353		1,223		961
Other		743		460		799		1,859		2,116
Total non-interest expense		11,154		10,701		10,551		32,824		30,618

INCOME BEFORE INCOME TAXES		1,575		1,982		1,829		4,776		8,664
PROVISION FOR INCOME TAXES		343		425		377		1,021		1,897
NET INCOME	$	1,232	$	1,557	$	1,452	$	3,755	$	6,767

Earnings per common share:
Basic	$	0.06	$	0.07	$	0.07	$	0.18	$	0.32
Diluted	$	0.06	$	0.07	$	0.07	$	0.18	$	0.32
Weighted average number of common shares outstanding:
Basic		21,037,246		21,097,580		21,113,464		21,081,851		21,146,888
Diluted		21,037,246		21,097,580		21,113,464		21,081,851		21,148,679

(Dollars in thousands)	At or for the three months ended									At or for the nine months ended
	Dec. 31, 2024			Sept. 30, 2024			Dec. 31, 2023			Dec. 31, 2024		Dec. 31, 2023
AVERAGE BALANCES
Average interest–earning assets	$	1,436,130		$	1,446,098		$	1,494,341		$	1,439,834	$	1,494,443
Average interest-bearing liabilities		1,019,265			1,011,688			1,028,817			1,010,419		1,021,532
Net average earning assets		416,865			434,410			465,524			429,415		472,911
Average loans		1,053,342			1,048,536			1,015,741			1,043,274		1,008,429
Average deposits		1,232,450			1,216,769			1,209,524			1,220,443		1,235,032
Average equity		160,532			158,428			153,901			158,179		155,264
Average tangible equity (non-GAAP)		133,245			131,116			126,511			130,867		127,847


ASSET QUALITY	Dec. 31, 2024			Sept. 30, 2024			Dec. 31, 2023

Non-performing loans	$	469		$	450		$	186
Non-performing loans excluding SBA Government Guarantee (non-GAAP)		168			149			186
Non-performing loans to total loans		0.04	%		0.04	%		0.02	%
Non-performing loans to total loans excluding SBA Government Guarantee (non-GAAP)		0.02	%		0.01	%		0.02	%
Real estate/repossessed assets owned	$	–		$	–		$	–
Non-performing assets	$	469		$	450		$	186
Non-performing assets excluding SBA Government Guarantee (non-GAAP)		168			149			186
Non-performing assets to total assets		0.03	%		0.03	%		0.01	%
Non-performing assets to total assets excluding SBA Government Guarantee (non-GAAP)		0.01	%		0.01	%		0.01	%
Net loan charge-offs (recoveries) in the quarter	$	114		$	(2	)	$	(15	)
Net charge-offs (recoveries) in the quarter/average net loans		0.04	%		0.00	%		(0.01	)%

Allowance for credit losses	$	15,352		$	15,466		$	15,361
Average interest-earning assets to average interest-bearing liabilities		140.90	%		142.94	%		145.25	%
Allowance for credit losses to non-performing loans		3273.35	%		3436.89	%		8258.60	%
Allowance for credit losses to total loans		1.47	%		1.46	%		1.51	%
Shareholders’ equity to assets		10.49	%		10.38	%		9.96	%


CAPITAL RATIOS
Total capital (to risk weighted assets)		16.47	%		16.14	%		16.67	%
Tier 1 capital (to risk weighted assets)		15.21	%		14.88	%		15.42	%
Common equity tier 1 (to risk weighted assets)		15.21	%		14.88	%		15.42	%
Tier 1 capital (to average tangible assets)		10.86	%		10.72	%		10.53	%
Tangible common equity (to average tangible assets) (non-GAAP)		8.84	%		8.78	%		8.39	%


DEPOSIT MIX	Dec. 31, 2024			Sept. 30, 2024			Dec. 31, 2023			March 31, 2024

Interest checking	$	257,975		$	267,254		$	272,019		$	289,824
Regular savings		169,181			172,454			199,911			192,638
Money market deposit accounts		236,912			227,505			225,727			209,164
Non-interest checking		312,839			341,116			350,744			349,081
Certificates of deposit		242,095			229,170			170,491			190,972
Total deposits	$	1,219,002		$	1,237,499		$	1,218,892		$	1,231,679

COMPOSITION OF COMMERCIAL AND CONSTRUCTION LOANS
			Other				Commercial
	Commercial		Real Estate		Real Estate		& Construction
	Business		Mortgage		Construction		Total
December 31, 2024	(Dollars in thousands)
Commercial business	$	224,506	$	–	$	–	$	224,506
Commercial construction		–		–		32,442		32,442
Office buildings		–		113,350		–		113,350
Warehouse/industrial		–		108,356		–		108,356
Retail/shopping centers/strip malls		–		89,871		–		89,871
Assisted living facilities		–		363		–		363
Single purpose facilities		–		262,556		–		262,556
Land		–		4,062		–		4,062
Multi-family		–		78,822		–		78,822
One-to-four family construction		–		–		17,514		17,514
Total	$	224,506	$	657,380	$	49,956	$	931,842

March 31, 2024
Commercial business	$	229,404	$	–	$	–	$	229,404
Commercial construction		–		–		20,388		20,388
Office buildings		–		114,714		–		114,714
Warehouse/industrial		–		106,649		–		106,649
Retail/shopping centers/strip malls		–		89,448		–		89,448
Assisted living facilities		–		378		–		378
Single purpose facilities		–		272,312		–		272,312
Land		–		5,693		–		5,693
Multi-family		–		70,771		–		70,771
One-to-four family construction		–		–		16,150		16,150
Total	$	229,404	$	659,965	$	36,538	$	925,907


LOAN MIX	Dec. 31, 2024		Sept. 30, 2024		Dec. 31, 2023		March 31, 2024
Commercial and construction	(Dollars in thousands)
Commercial business	$	224,506	$	236,895	$	229,249	$	229,404
Other real estate mortgage		657,380		659,439		648,782		659,965
Real estate construction		49,956		51,498		42,167		36,538
Total commercial and construction		931,842		947,832		920,198		925,907
Consumer
Real estate one-to-four family		97,760		96,911		96,266		96,366
Other installment		15,507		16,234		1,735		1,740
Total consumer		113,267		113,145		98,001		98,106

Total loans		1,045,109		1,060,977		1,018,199		1,024,013

Less:
Allowance for credit losses		15,352		15,466		15,361		15,364
Loans receivable, net	$	1,029,757	$	1,045,511	$	1,002,838	$	1,008,649


DETAIL OF NON-PERFORMING ASSETS
	Southwest
	Washington		Other		Total
December 31, 2024	(Dollars in thousands)
Commercial business	$	43	$	–	$	43
Commercial real estate		93		–		93
Consumer		32		–		32
Government Guaranteed Loans		–		301		301
Total non-performing assets	$	168	$	301	$	469

	At or for the three months ended									At or for the nine months ended
SELECTED OPERATING DATA	Dec. 31, 2024			Sept. 30, 2024			Dec. 31, 2023			Dec. 31, 2024			Dec. 31, 2023

Efficiency ratio (4)		87.63	%		83.71	%		85.23	%		87.07	%		77.94	%
Coverage ratio (6)		84.17	%		83.56	%		88.37	%		82.72	%		96.46	%
Return on average assets (1)		0.32	%		0.40	%		0.37	%		0.33	%		0.57	%
Return on average equity (1)		3.04	%		3.90	%		3.75	%		3.15	%		5.80	%
Return on average tangible equity (1) (non-GAAP)		3.67	%		4.71	%		4.57	%		3.81	%		7.04	%

NET INTEREST SPREAD
Yield on loans		4.97	%		4.80	%		4.56	%		4.83	%		4.53	%
Yield on investment securities		1.82	%		2.05	%		2.01	%		2.00	%		2.02	%
Total yield on interest-earning assets		4.18	%		4.11	%		3.81	%		4.10	%		3.77	%

Cost of interest-bearing deposits		1.81	%		1.76	%		0.98	%		1.73	%		0.82	%
Cost of FHLB advances and other borrowings		5.43	%		5.92	%		5.83	%		5.83	%		5.77	%
Total cost of interest-bearing liabilities		2.23	%		2.35	%		1.91	%		2.27	%		1.66	%

Spread (7)		1.95	%		1.76	%		1.90	%		1.83	%		2.11	%
Net interest margin		2.60	%		2.46	%		2.49	%		2.51	%		2.64	%

PER SHARE DATA
Basic earnings per share (2)	$	0.06		$	0.07		$	0.07		$	0.18		$	0.32
Diluted earnings per share (3)		0.06			0.07			0.07			0.18			0.32
Book value per share (5)		7.49			7.62			7.51			7.49			7.51
Tangible book value per share (5) (non-GAAP)		6.20			6.33			6.21			6.20			6.21
Market price per share:
High for the period	$	5.88		$	4.72		$	6.48		$	5.88		$	6.48
Low for the period		4.59			3.79			5.35			3.64			4.17
Close for period end		5.74			4.71			6.40			5.74			6.40
Cash dividends declared per share		0.0200			0.0200			0.0600			0.0600			0.1800

Average number of shares outstanding:
Basic (2)		21,037,246			21,097,580			21,113,464			21,081,851			21,146,888
Diluted (3)		21,037,246			21,097,580			21,113,464			21,081,851			21,148,679

(1)      Amounts for the periods shown are annualized.
(2)      Amounts exclude ESOP shares not committed to be released.
(3)      Amounts exclude ESOP shares not committed to be released and include common stock equivalents.
(4)      Non-interest expense divided by net interest income and non-interest income.
(5)      Amounts calculated based on shareholders’ equity and include ESOP shares not committed to be released.
(6)      Net interest income divided by non-interest expense.
(7)      Yield on interest-earning assets less cost of funds on interest-bearing liabilities.

Contact:

Nicole Sherman, President & CEO
David Lam, CFO
Dan Cox, COO
360-693-6650

The MIL Network –

January 31, 2025

MIL-OSI: Evolution Petroleum Schedules Fiscal Second Quarter 2025 Earnings Release and Conference Call

Source: GlobeNewswire (MIL-OSI)

HOUSTON, Jan. 30, 2025 (GLOBE NEWSWIRE) — Evolution Petroleum Corporation (NYSE American: EPM) (“Evolution” or the “Company”) today announced that it plans to release its fiscal second quarter 2025 financial and operating results on Tuesday, February 11, 2025, after the market closes. Additionally, Kelly Loyd, President and Chief Executive Officer, Ryan Stash, Senior Vice President, Chief Financial Officer, and Treasurer, and Mark Bunch, Chief Operating Officer, will review the results on a conference call at 10:00 a.m. Central Time on Wednesday, February 12, 2025.

Conference Call and Webcast Details

Date: Wednesday, February 12, 2025
Time: 10:00 a.m. Central Time
Dial-In: (844) 481-2813
International Dial-In: (412) 317-0677
Note: Dial-in participants should ask to join the Evolution Petroleum Corporation call.
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=HS7VesBT

A webcast replay will be available through February 12, 2026, via the webcast link above and on Evolution’s website at www.ir.evolutionpetroleum.com.

About Evolution Petroleum

Evolution Petroleum Corporation is an independent energy company focused on maximizing total shareholder returns through the ownership of and investment in onshore oil and natural gas properties in the U.S. The Company aims to build and maintain a diversified portfolio of long-life oil and natural gas properties through acquisitions, selective development opportunities, production enhancements, and other exploitation efforts. Properties include non-operated interests in the following areas: the SCOOP/STACK plays of the Anadarko Basin in Oklahoma; the Chaveroo Oilfield located in Chaves and Roosevelt Counties, New Mexico; the Jonah Field in Sublette County, Wyoming; the Williston Basin in North Dakota; the Barnett Shale located in North Texas; the Hamilton Dome Field located in Hot Springs County, Wyoming; the Delhi Holt-Bryant Unit in the Delhi Field in Northeast Louisiana; as well as small overriding royalty interests in four onshore Texas wells. Visit www.evolutionpetroleum.com for more information.

Contact
Investor Relations
(713) 935-0122
ir@evolutionpetroleum.com

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

The MIL Network –

January 31, 2025

MIL-OSI: BayFirst Financial Corp. Reports Fourth Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

ST. PETERSBURG, Fla., Jan. 30, 2025 (GLOBE NEWSWIRE) — BayFirst Financial Corp. (NASDAQ: BAFN) (“BayFirst” or the “Company”), parent company of BayFirst National Bank (the “Bank”) today reported net income of $9.8 million, or $2.27 per common share, or $2.11 per diluted common share, for the fourth quarter of 2024, an increase of 759.8% compared to $1.1 million, or $0.18 per common share and diluted common share, in the third quarter of 2024. Net income for the year ended December 31, 2024 was $12.6 million, or $2.68 per common share, or $2.62 per diluted common share, compared to $5.7 million, or $1.16 per common share, or $1.12 per diluted common share for the year ended December 31, 2023.

“We reported strong fourth quarter 2024 results, highlighted by quarterly net interest margin expansion and improved operating efficiencies,” stated Thomas G. Zernick, Chief Executive Officer. “Net income increased substantially compared to the preceding quarter, led by increases in net interest income, higher gain on sale of government guaranteed loans, and a gain on sale of two branch office properties, which was part of a sale-leaseback transaction. It’s worth noting that we continue to lease these two branch offices, resulting in no impact to our existing branch network. As a result of this transaction, we recorded an after-tax gain on sale of the properties of $8.7 million during the fourth quarter of 2024.”

“The strength of our community bank business model, which includes serving individuals, families, and small businesses, coupled with results from our government guaranteed banking division, continues to fuel our operating results,” Zernick continued. “Our government guaranteed banking team had a solid quarter, producing $107.8 million in new government guaranteed loans, which was an improvement compared to the third quarter of 2024. Our lenders remain focused on meeting loan origination targets, while also adhering to prudently conservative credit quality metrics.

“One of the highlights of the full year 2024 was the $1.1 million reduction in noninterest expenses compared to 2023. When we completed our near-term branch expansion plans in early 2024, we focused on reducing operating expenses by leveraging technology investments to better manage headcount and related incentive compensation, while at the same time growing the franchise. As we look to the new year, we will continue initiatives that are designed to further increase our efficiency, lower costs, and maximize the investments we’ve already made in technology and in our banking centers. While we are pleased with the progress during the fourth quarter and the year, we are excited to continue our forward momentum and further boost our results in 2025,” said Zernick.

“Additionally, the Board of Directors authorized a share repurchase program on January 28, 2025. We believe our stock offers an attractive investment and repurchasing stock is a means for building long-term shareholder value,” said Zernick. “We are confident about the growth of our Company, and we believe that when our shares are undervalued, repurchases represent a value-enhancing deployment of capital.”

Fourth Quarter 2024 Performance Review

In December 2024, the Company entered into a sale-leaseback agreement for two branch office properties for an aggregate cash purchase price of $15.0 million. As a result of this transaction, the Company recorded a pre-tax gain on sale of the properties of $11.6 million.
The Company’s government guaranteed loan team originated $107.8 million in new loans during the fourth quarter of 2024, an increase from $94.4 million of loans produced in the previous quarter, and a decrease from $144.9 million of loans produced during the fourth quarter of 2023. Since the launch in 2022 of the Company’s Bolt loan program, an SBA 7(a) loan product designed to expeditiously provide working capital loans of $150 thousand or less, the Company has originated 5,726 Bolt loans totaling $741.5 million, of which 495 Bolt loans totaling $64.8 million were originated during the fourth quarter. No newly originated government guaranteed loans were measured at fair value during the fourth quarter of 2024 versus $34 million in the third quarter of 2024 and $53 million in the fourth quarter of 2023.
Loans held for investment increased by $24.1 million, or 2.3%, during the fourth quarter of 2024 to $1.07 billion and increased $150.8 million, or 16.5%, over the past year. During the quarter, the Company originated $158.7 million of loans and sold $94.5 million of government guaranteed loan balances.
Deposits increased $31.0 million, or 2.8%, during the fourth quarter of 2024 and increased $158.1 million, or 16.0%, over the past year to $1.14 billion.
Book value and tangible book value at December 31, 2024 were $22.95 per common share, an increase from $20.86 at September 30, 2024.
Net interest margin increased by 26 basis points to 3.60% in the fourth quarter of 2024, from 3.34% in the third quarter of 2024 and 12 basis points from 3.48%in the fourth quarter of 2023.

Results of Operations

Net Income

Net income was $9.8 million for the fourth quarter of 2024, compared to $1.1 million in the third quarter of 2024 and $1.7 million in the fourth quarter of 2023. The increase in net income for the fourth quarter of 2024 from the preceding quarter was primarily the result of the pre-tax gain on sale of two branch office properties of $11.6 million, which was part of a sale-leaseback transaction. Also contributing to higher earnings was an increase in net interest income of $1.2 million, an increase in gain on sale of government guaranteed loans of $2.3 million, and a decrease in noninterest expense of $1.7 million, partially offset by an increase in provision for credit losses of $1.4 million, a decrease in government guaranteed loan fair value gains of $3.5 million, and an increase in income tax expense on continuing operations of $2.9 million. The decrease in fair value gains on government guaranteed loans was the result of not measuring any newly originated government guaranteed loans at fair value in the fourth quarter. The increase in net income from the fourth quarter of 2023 was due to the pre-tax gain on sale of two branch office properties of $11.6 million, an increase in net interest income of $1.8 million, an increase in gain on sale of government guaranteed loans of $1.4 million, and lower noninterest expense of $3.1 million. This was partially offset by an increase in provision for credit losses of $1.8 million, a decrease in government guaranteed loan fair value gains of $4.8 million, and an increase in income tax expense on continuing operations of $2.6 million.

For the year ended December 31, 2024, net income was $12.6 million, an increase from $5.7 million from the year ended December 31, 2023. The increase was primarily due to the pre-tax gain on sale of two branch office properties of $11.6 million, an increase in net interest income of $1.6 million, higher gain on sale of government guaranteed loans of $3.7 million, and lower noninterest expense of $0.9 million, partially offset by higher provision for credit losses of $4.3 million, a decrease in government guaranteed fair value gains of $5.9 million and higher income tax expense on continuing operations of $2.2 million.

Net Interest Income and Net Interest Margin

Net interest income from continuing operations was $10.7 million in the fourth quarter of 2024, an increase from $9.4 million during the third quarter of 2024, and an increase from $8.9 million during the fourth quarter of 2023. The net interest margin increased by 26 basis points to 3.60% in the fourth quarter of 2024, from 3.34% in the third quarter of 2024 and 12 basis points from 3.48%in the fourth quarter of 2023.

The increase in net interest income from continuing operations during the fourth quarter of 2024, as compared to the third quarter of 2024, was mainly due to a decrease in interest cost on deposits of $1.0 million.

The increase in net interest income from continuing operations during the fourth quarter of 2024, as compared to the year ago quarter, was mainly due to an increase in loan interest income, including fees, of $3.0 million, partially offset by higher interest expense on deposits of $0.9 million.

Net interest income from continuing operations was $38.0 million for the year ended December 31, 2024, an increase from $36.4 million for the year ended December 31, 2023. The increase was mainly due to an increase in loan interest income, including fees, of $15.6 million, partially offset by an increase in interest expense on deposits of $12.1 million.

Noninterest Income

Noninterest income from continuing operations was $22.3 million for the fourth quarter of 2024, which was an increase from $12.3 million in the third quarter of 2024 and an increase from $14.7 million in the fourth quarter of 2023. The increase in the fourth quarter of 2024, as compared to the third quarter of 2024, was primarily the result of the pre-tax gain on sale of two branch office properties of $11.6 million, which was part of a sale-leaseback transaction, and an increase in gain on sale of government guaranteed loans of $2.3 million, partially offset by a decrease in government guaranteed loan fair value gains of $3.5 million. The decrease in fair value gains on government guaranteed loans was the result of not measuring any newly originated government guaranteed loans at fair value in the fourth quarter. The increase in the fourth quarter of 2024, as compared to the fourth quarter of 2023, was the result of the pre-tax gain on sale of two branch office properties of $11.6 million and an increase in gain on sale of government guaranteed loans of $1.4 million, partially offset by a decrease in fair value gains on government guaranteed loans of $4.8 million.

Noninterest income from continuing operations was $60.5 million for the year ended 2024, which was an increase from $49.8 million for the year ended 2023. The increase was primarily the result of the pre-tax gain on sale of two branch office properties of $11.6 million and an increase in gain on sale of government guaranteed loans of $3.7 million, partially offset by a decrease in fair value gains on government guaranteed loans of $5.9 million.

Noninterest Expense

Noninterest expense from continuing operations was $15.3 million in the fourth quarter of 2024 compared to $17.1 million in the third quarter of 2024 and $18.5 million in the fourth quarter of 2023. The decrease in the fourth quarter of 2024, as compared to the prior quarter, was primarily due to a decrease in compensation expense of $0.6 million and a decrease in loan origination and collection expense of $1.2 million. The decrease in the fourth quarter of 2024, as compared to the fourth quarter of 2023, was primarily due to lower compensation expense of $1.2 million and lower loan origination and collection expenses of $2.0 million.

Noninterest expense from continuing operations was $66.8 million for the year ended 2024 compared to $67.7 million for the year ended 2023. The decrease was the result of decreases in compensation expenses of $1.2 million, loan origination and collection expense of $1.0 million, and marketing and business development expenses of $1.3 million. The decreases were partially offset by increases in data processing expenses of $1.1 million, regulatory assessments of $0.4 million, and other noninterest expenses of $0.8 million.

Balance Sheet

Assets

Total assets increased $43.2 million, or 3.5%, during the fourth quarter of 2024 to $1.29 billion, mainly due to increases in loans held for investment of $24.1 million, cash and cash equivalents of $13.4 million, and right-of-use operating lease assets of $13.8 million, partially offset by a decrease in premises and equipment of $5.5 million. The increase in the right-of-use operating lease asset and decrease in premises and equipment was primarily the result of the fourth quarter 2024 sale-leaseback transaction. Compared to the end of the fourth quarter last year, total assets increased $170.5 million, or 15.3%, driven by growth of loans held for investment of $150.8 million, higher cash and cash equivalents of $19.4 million, and an increase in right-of-use operating lease asset of $13.4 million, partially offset by a decrease in premises and equipment of $5.6 million.

Loans

Loans held for investment increased $24.1 million, or 2.3%, during the fourth quarter of 2024 and $150.8 million, or 16.5%, over the past year to $1.07 billion, due to originations in both conventional community bank loans and government guaranteed loans, partially offset by government guaranteed loan sales.

Deposits

Deposits increased $31.0 million, or 2.8%, during the fourth quarter of 2024 and increased $158.1 million, or 16.0%, from the fourth quarter of 2023, ending December 31, 2024 at $1.14 billion. During the fourth quarter, there were increases in noninterest-bearing deposit account balances of $5.7 million, interest-bearing transaction account balances of $8.9 million, and savings and money market deposit account balances of $19.1 million, partially offset by a decrease in time deposit balances of $2.7 million. The majority of the deposits are generated through the community bank in the Tampa Bay/Sarasota area. At December 31, 2024, approximately 74% of total deposits were insured by the FDIC. At times, the Bank has brokered time deposit and non-maturity deposit relationships available to diversify its funding sources. At December 31, 2024, September 30, 2024, and December 31, 2023, the Company had $112.1 million, $76.7 million, and $0.2 million, respectively, of brokered deposits.

Asset Quality

The Company recorded a provision for credit losses in the fourth quarter of $4.5 million, compared to provisions of $3.1 million for the third quarter of 2024 and $2.7 million during the fourth quarter of 2023.

The ratio of ACL to total loans held for investment at amortized cost was 1.54% at December 31, 2024, 1.48% as of September 30, 2024, and 1.64% as of December 31, 2023. The ratio of ACL to total loans held for investment at amortized cost, excluding government guaranteed loan balances, was 1.79% at December 31, 2024, 1.70% as of September 30, 2024, and 2.03% as of December 31, 2023. To date, we have not learned of a material loss to the Company as a result of the recent hurricanes. Therefore, additional loss reserves have not been deemed necessary.

Net charge-offs for the fourth quarter of 2024 were $3.4 million, which was an increase from $2.8 million for the third quarter of 2024 and $2.6 million in the fourth quarter of 2023. Annualized net charge-offs as a percentage of average loans held for investment at amortized cost were 1.34% for the fourth quarter of 2024, compared to 1.16% in the third quarter of 2024 and 1.27% in the fourth quarter of 2023. Nonperforming assets to total assets were 1.50% as of December 31, 2024, compared to 1.38% as of September 30, 2024, and 0.92% as of December 31, 2023. Nonperforming assets, excluding government guaranteed loan balances, to total assets were 1.06% as of December 31, 2024, compared to 0.88% as of September 30, 2024, and 0.74% as of December 31, 2023. As we discussed in previous quarters, the Bank developed an express modification program for SBA 7(a) borrowers to help those borrowers who are challenged with larger payments in the higher interest rate environment compared to interest rates at the time the loans were originated. To date, 496 SBA 7(a) borrowers have been offered loan modification options. These efforts have helped and are expected to continue to help reduce the risk of loss.

Capital

The Bank’s Tier 1 leverage ratio was 8.82% as of December 31, 2024, compared to 8.41% as of September 30, 2024, and 9.38% as of December 31, 2023. The CET 1 and Tier 1 capital ratio to risk-weighted assets were 10.89% as of December 31, 2024, compared to 10.14% as of September 30, 2024, and 11.77% as of December 31, 2023. The total capital to risk-weighted assets ratio was 12.14% as of December 31, 2024, compared to 11.39% as of September 30, 2024, and 13.03% as of December 31, 2023.

Liquidity

The Bank’s overall liquidity position remains strong and stable with liquidity in excess of internal minimums as stated by policy and monitored by management and the Board. The on-balance sheet liquidity ratio at December 31, 2024 was 9.17%, as compared to 9.33% at December 31, 2023. The Bank has robust liquidity resources which include secured borrowings available from the Federal Home Loan Bank, the Federal Reserve, and lines of credit with other financial institutions. As of December 31, 2024, the Bank had no borrowings from the FHLB, the FRB or other financial institutions. This compares to $10.0 million of borrowings from the FHLB and no borrowings from the FRB or other financial institutions at September 30, 2024 and December 31, 2023.

Recent Events

Share Repurchase Program

The Company announced that its Board of Directors has adopted a share repurchase program. Under the repurchase program, the Company may repurchase up to $2.0 million of the Company’s outstanding shares, over a period beginning on January 28, 2025, and continuing until the earlier of the completion of the repurchase, or December 31, 2025, or termination of the program by the Board of Directors.

First Quarter Common Stock Dividend. On January 28, 2025, BayFirst’s Board of Directors declared a first quarter 2025 cash dividend of $0.08 per common share. The dividend will be payable March 15, 2025 to common shareholders of record as of March 1, 2025. The Company has continuously paid quarterly common stock cash dividends since 2016.

Conference Call

BayFirst’s management team will host a conference call on Friday, January 31, 2025, at 9:00 a.m. ET to discuss its fourth quarter results. Interested investors may listen to the call live under the Investor Relations tab at www.bayfirstfinancial.com. Investment professionals are invited to dial (800) 549-8228 to participate in the call using Conference ID 71006. A replay of the call will be available for one year at www.bayfirstfinancial.com.

About BayFirst Financial Corp.

BayFirst Financial Corp. is a registered bank holding company based in St. Petersburg, Florida which commenced operations on September 1, 2000. Its primary source of income is derived from its wholly owned subsidiary, BayFirst National Bank, a national banking association which commenced business operations on February 12, 1999. The Bank currently operates twelve full-service banking offices throughout the Tampa Bay-Sarasota region and offers a broad range of commercial and consumer banking services to businesses and individuals. It was named the best bank in Florida in 2024, according to Forbes and was the 9th largest SBA 7(a) lender by number of units originated and 16th largest by dollar volume nationwide through the SBA’s quarter ended December 31, 2024. As of December 31, 2024, BayFirst Financial Corp. had $1.29 billion in total assets.

Forward-Looking Statements

In addition to the historical information contained herein, this presentation includes “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. These statements are subject to many risks and uncertainties, including, but not limited to, the effects of health crises, global military hostilities, weather events, or climate change, including their effects on the economic environment, our customers and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with them; the ability of the Company to implement its strategy and expand its banking operations; changes in interest rates and other general economic, business and political conditions, including changes in the financial markets; changes in business plans as circumstances warrant; risks related to mergers and acquisitions; changes in benchmark interest rates used to price loans and deposits, changes in tax laws, regulations and guidance; and other risks detailed from time to time in filings made by the Company with the SEC, including, but not limited to those “Risk Factors” described in our most recent Form 10-K and Form 10-Q. Readers should note that the forward-looking statements included herein are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements.

Contacts:
Thomas G. Zernick	Scott J. McKim
Chief Executive Officer	Chief Financial Officer
727.399.5680	727.521.7085

BAYFIRST FINANCIAL CORP.
SELECTED FINANCIAL DATA (Unaudited)

	At or for the three months ended
(Dollars in thousands, except for share data)	12/31/2024			9/30/2024			6/30/2024			3/31/2024			12/31/2023
Balance sheet data:
Average loans held for investment at amortized cost	$	1,003,867		$	948,528		$	902,417		$	855,040		$	825,196
Average total assets		1,273,296			1,228,040			1,178,501			1,126,315			1,108,550
Average common shareholders’ equity		87,961			86,381			84,948			85,385			82,574
Total loans held for investment		1,066,559			1,042,445			1,008,314			934,868			915,726
Total loans held for investment, excl gov’t gtd loan balances		917,075			885,444			844,659			776,302			698,106
Allowance for credit losses		15,512			14,186			13,843			13,906			13,497
Total assets		1,288,297			1,245,099			1,217,869			1,144,194			1,117,766
Common shareholders’ equity		94,869			86,242			84,911			84,578			84,656
Share data:
Basic earnings per common share	$	2.27		$	0.18		$	0.12		$	0.11		$	0.32
Diluted earnings per common share		2.11			0.18			0.12			0.11			0.32
Dividends per common share		0.08			0.08			0.08			0.08			0.08
Book value per common share		22.95			20.86			20.54			20.45			20.60
Tangible book value per common share ⁽¹⁾		22.95			20.86			20.54			20.45			20.60
Performance and capital ratios:
Return on average assets⁽²⁾		3.07	%		0.37	%		0.29	%		0.29	%		0.60	%
Return on average common equity⁽²⁾		42.71	%		3.48	%		2.26	%		2.06	%		6.37	%
Net interest margin⁽²⁾		3.60	%		3.34	%		3.43	%		3.42	%		3.48	%
Dividend payout ratio		3.52	%		43.98	%		68.91	%		75.27	%		25.03	%
Asset quality ratios:
Net charge-offs	$	3,369		$	2,757		$	3,261		$	3,652		$	2,612
Net charge-offs/avg loans held for investment at amortized cost⁽²⁾		1.34	%		1.16	%		1.45	%		1.71	%		1.27	%
Nonperforming loans⁽³⁾	$	17,607		$	15,489		$	12,312		$	9,877		$	9,688
Nonperforming loans (excluding gov’t gtd balance)⁽³⁾	$	13,570		$	10,992		$	8,054		$	7,568		$	8,264
Nonperforming loans/total loans held for investment⁽³⁾		1.75	%		1.62	%		1.34	%		1.15	%		1.18	%
Nonperforming loans (excl gov’t gtd balance)/total loans held for investment⁽³⁾		1.35	%		1.15	%		0.87	%		0.88	%		1.00	%
ACL/Total loans held for investment at amortized cost		1.54	%		1.48	%		1.50	%		1.62	%		1.64	%
ACL/Total loans held for investment at amortized cost, excl government guaranteed loans		1.79	%		1.70	%		1.73	%		1.88	%		2.03	%
Other Data:
Full-time equivalent employees		299			295			302			313			305
Banking center offices		12			12			12			12			11
⁽¹⁾ See section entitled “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures” below for a reconciliation to most comparable GAAP equivalent.
⁽²⁾ Annualized
⁽³⁾ Excludes loans measured at fair value

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

Some of the financial measures included in this report are not measures of financial condition or performance recognized by GAAP. These non-GAAP financial measures include tangible common shareholders’ equity and tangible book value per common share. Our management uses these non-GAAP financial measures in its analysis of our performance, and we believe that providing this information to financial analysts and investors allows them to evaluate capital adequacy.

The following presents these non-GAAP financial measures along with their most directly comparable financial measures calculated in accordance with GAAP:

Tangible Common Shareholders’ Equity and Tangible Book Value Per Common Share (Unaudited)
	As of
(Dollars in thousands, except for share data)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Total shareholders’ equity	$	110,920		$	102,293		$	100,962		$	100,629		$	100,707
Less: Preferred stock liquidation preference		(16,051	)		(16,051	)		(16,051	)		(16,051	)		(16,051	)
Total equity available to common shareholders		94,869			86,242			84,911			84,578			84,656
Less: Goodwill		—			—			—			—			—
Tangible common shareholders’ equity	$	94,869		$	86,242		$	84,911		$	84,578		$	84,656

Common shares outstanding		4,132,986			4,134,059			4,134,219			4,134,914			4,110,470
Tangible book value per common share	$	22.95		$	20.86		$	20.54		$	20.45		$	20.60

BAYFIRST FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)	12/31/2024			9/30/2024			12/31/2023
Assets	(Unaudited)			(Unaudited)
Cash and due from banks	$	4,499		$	4,708		$	4,099
Interest-bearing deposits in banks		73,289			59,675			54,286
Cash and cash equivalents		77,788			64,383			58,385
Time deposits in banks		2,270			2,264			4,646
Investment securities available for sale, at fair value (amortized cost $40,279, $41,104, and $43,597 at December 31, 2024, September 30, 2024, and December 31, 2023, respectively)		36,291			37,984			39,575
Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $12, $13, and $17 (fair value: $2,346, $2,321, and $2,263 at December 31, 2024, September 30, 2024, and December 31, 2023, respectively)		2,488			2,487			2,484
Nonmarketable equity securities		4,526			4,997			4,770
Government guaranteed loans held for sale		—			595			—
Government guaranteed loans held for investment, at fair value		60,833			86,441			91,508
Loans held for investment, at amortized cost		1,005,726			956,004			824,218
Allowance for credit losses on loans		(15,512	)		(14,186	)		(13,497	)
Net Loans held for investment, at amortized cost		990,214			941,818			810,721
Accrued interest receivable		9,155			8,537			7,130
Premises and equipment, net		33,249			38,736			38,874
Loan servicing rights		16,534			15,966			14,959
Right-of-use operating lease assets		15,814			2,018			2,416
Bank owned life insurance		26,513			26,330			25,800
Other real estate owned		132			—			—
Other assets		12,490			12,543			16,150
Assets from discontinued operations		—			—			348
Total assets	$	1,288,297		$	1,245,099		$	1,117,766
Liabilities:
Noninterest-bearing deposits	$	101,743		$	95,995		$	93,708
Interest-bearing transaction accounts		256,793			247,923			259,422
Savings and money market deposits		474,425			455,297			373,000
Time deposits		310,268			312,981			259,008
Total deposits		1,143,229			1,112,196			985,138
FHLB borrowings		—			10,000			10,000
Subordinated debentures		5,956			5,954			5,949
Notes payable		1,934			2,048			2,389
Accrued interest payable		1,036			1,114			882
Operating lease liabilities		14,510			2,271			2,619
Deferred income tax liabilities		301			1,488			482
Accrued expenses and other liabilities		10,411			7,735			8,980
Liabilities from discontinued operations		—			—			620
Total liabilities		1,177,377			1,142,806			1,017,059
Shareholders’ equity:	(Unaudited)			(Unaudited)
Preferred stock, Series A; no par value, 10,000 shares authorized, 6,395 shares issued and outstanding at December 31, 2024, September 30, 2024, and December 31, 2023; aggregate liquidation preference of $6,395 each period		6,161			6,161			6,161
Preferred stock, Series B; no par value, 20,000 shares authorized, 3,210 shares issued and outstanding at December 31, 2024, September 30, 2024, and December 31, 2023; aggregate liquidation preference of $3,210 each period		3,123			3,123			3,123
Preferred stock, Series C; no par value, 10,000 shares authorized, 6,446 shares issued and outstanding at December 31, 2024, September 30, 2024, and December 31, 2023; aggregate liquidation preference of $6,446 at December 31, 2024, September 30, 2024, and December 31, 2023		6,446			6,446			6,446
Common stock and additional paid-in capital; no par value, 15,000,000 shares authorized, 4,132,986, 4,134,059, and 4,110,470 shares issued and outstanding at December 31, 2024, September 30, 2024, and December 31, 2023, respectively		54,764			54,780			54,521
Accumulated other comprehensive loss, net		(2,956	)		(2,312	)		(2,981	)
Unearned compensation		(752	)		(978	)		(958	)
Retained earnings		44,134			35,073			34,395
Total shareholders’ equity		110,920			102,293			100,707
Total liabilities and shareholders’ equity	$	1,288,297		$	1,245,099		$	1,117,766

BAYFIRST FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
	For the Quarter Ended								Year-to-Date
(Dollars in thousands, except per share data)	12/31/2024			9/30/2024		12/31/2023			12/31/2024			12/31/2023
Interest income:	(Unaudited)			(Unaudited)		(Unaudited)			(Unaudited)
Loans, including fees	$	20,747		$	20,442	$	17,714		$	78,831		$	63,189
Interest-bearing deposits in banks and other		1,007			1,000		1,140			3,979			5,328
Total interest income		21,754			21,442		18,854			82,810			68,517
Interest expense:
Deposits		10,600			11,609		9,719			42,872			30,795
Other		501			384		258			1,912			1,291
Total interest expense		11,101			11,993		9,977			44,784			32,086
Net interest income		10,653			9,449		8,877			38,026			36,431
Provision for credit losses		4,546			3,122		2,737			14,726			10,445
Net interest income after provision for credit losses		6,107			6,327		6,140			23,300			25,986
Noninterest income:
Loan servicing income, net		582			918		677			3,100			2,826
Gain on sale of government guaranteed loans, net		8,425			6,143		6,977			28,252			24,553
Service charges and fees		451			447		555			1,794			1,721
Government guaranteed loans fair value gain, net		(80	)		3,416		4,697			9,843			15,718
Government guaranteed loan packaging fees		773			903		1,588			4,105			3,664
Gain on sale of premises and equipment		11,649			—		—			11,649			—
Other noninterest income		476			445		197			1,726			1,273
Total noninterest income		22,276			12,272		14,691			60,469			49,755
Noninterest Expense:
Salaries and benefits		7,351			7,878		7,446			31,063			30,973
Bonus, commissions, and incentives		1,074			1,141		2,211			4,445			5,726
Occupancy and equipment		1,217			1,248		1,150			4,848			4,758
Data processing		1,749			1,789		1,422			6,745			5,611
Marketing and business development		390			532		640			2,050			3,336
Professional services		803			853		1,070			3,882			3,657
Loan origination and collection		758			1,956		2,728			6,391			7,425
Employee recruiting and development		445			595		510			2,186			2,177
Regulatory assessments		379			309		266			1,249			881
Other noninterest expense		1,169			763		1,023			3,923			3,163
Total noninterest expense		15,335			17,064		18,466			66,782			67,707
Income before taxes from continuing operations		13,048			1,535		2,365			16,987			8,034
Income tax expense from continuing operations		3,272			398		704			4,315			2,119
Net income from continuing operations		9,776			1,137		1,661			12,672			5,915
Loss from discontinued operations before income taxes		—			—		(8	)		(92	)		(283	)
Income tax benefit from discontinued operations		—			—		(2	)		(23	)		(70	)
Net loss from discontinued operations		—			—		(6	)		(69	)		(213	)

Net income		9,776			1,137		1,655			12,603			5,702
Preferred dividends		385			385		341			1,541			965
Net income available to common shareholders	$	9,391		$	752	$	1,314		$	11,062		$	4,737
Basic earnings (loss) per common share:	(Unaudited)			(Unaudited)		(Unaudited)			(Unaudited)
Continuing operations	$	2.27		$	0.18	$	0.32		$	2.69		$	1.21
Discontinued operations		—			—		—			(0.01	)		(0.05	)
Basic earnings per common share	$	2.27		$	0.18	$	0.32		$	2.68		$	1.16

Diluted earnings (loss) per common share:
Continuing operations	$	2.11		$	0.18	$	0.32		$	2.64		$	1.17
Discontinued operations		—			—		—			(0.02	)		(0.05	)
Diluted earnings per common share	$	2.11		$	0.18	$	0.32		$	2.62		$	1.12

Loan Composition

(Dollars in thousands)	12/31/2024			9/30/2024			6/30/2024			3/31/2024			12/31/2023
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Real estate:
Residential	$	330,870		$	321,740		$	304,234		$	285,214		$	264,126
Commercial		305,721			292,026			288,185			273,227			293,595
Construction and land		32,914			33,784			35,759			36,764			26,272
Commercial and industrial		226,522			200,212			192,140			182,264			177,566
Commercial and industrial – PPP		941			1,656			2,324			2,965			3,202
Consumer and other		93,826			92,546			85,789			63,854			47,287
Loans held for investment, at amortized cost, gross		990,794			941,964			908,431			844,288			812,048
Deferred loan costs, net		19,499			18,060			17,299			16,233			14,707
Discount on government guaranteed loans		(8,306	)		(7,880	)		(7,731	)		(7,674	)		(7,040	)
Premium on loans purchased, net		3,739			3,860			4,173			4,252			4,503
Loans held for investment, at amortized cost, net		1,005,726			956,004			922,172			857,099			824,218
Government guaranteed loans held for investment, at fair value		60,833			86,441			86,142			77,769			91,508
Total loans held for investment, net	$	1,066,559		$	1,042,445		$	1,008,314		$	934,868		$	915,726

Nonperforming Assets (Unaudited)

(Dollars in thousands)	12/31/2024			9/30/2024			6/30/2024			3/31/2024			12/31/2023
Nonperforming loans (government guaranteed balances), at amortized cost, gross	$	4,037		$	4,497		$	4,258		$	2,309		$	1,424
Nonperforming loans (unguaranteed balances), at amortized cost, gross		13,570			10,992			8,054			7,568			8,264
Total nonperforming loans, at amortized cost, gross		17,607			15,489			12,312			9,877			9,688
Nonperforming loans (government guaranteed balances), at fair value		—			24			341			94			—
Nonperforming loans (unguaranteed balances), at fair value		1,490			1,535			1,284			729			648
Total nonperforming loans, at fair value		1,490			1,559			1,625			823			648
OREO		132			—			1,633			404			—
Repossessed assets		36			94			—			—			—
Total nonperforming assets, gross	$	19,265		$	17,142		$	15,570		$	11,104		$	10,336
Nonperforming loans as a percentage of total loans held for investment⁽¹⁾		1.75	%		1.62	%		1.34	%		1.15	%		1.18	%
Nonperforming loans (excluding government guaranteed balances) to total loans held for investment⁽¹⁾		1.35	%		1.15	%		0.87	%		0.88	%		1.00	%
Nonperforming assets as a percentage of total assets		1.50	%		1.38	%		1.28	%		0.97	%		0.92	%
Nonperforming assets (excluding government guaranteed balances) to total assets		1.06	%		0.88	%		0.82	%		0.70	%		0.74	%
ACL to nonperforming loans⁽¹⁾		88.10	%		91.59	%		112.44	%		140.79	%		139.32	%
ACL to nonperforming loans (excluding government guaranteed balances)⁽¹⁾		114.31	%		129.06	%		171.88	%		183.75	%		163.32	%

⁽¹⁾ Excludes loans measured at fair value

Note: Transmitted on Globe Newswire on January 30, 2025, at 4:00 p.m. ET.

The MIL Network –

January 31, 2025

MIL-OSI: Credit Acceptance Announces Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

Southfield, Michigan, Jan. 30, 2025 (GLOBE NEWSWIRE) — Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced consolidated net income of $151.9 million, or $12.26 per diluted share, for the three months ended December 31, 2024 compared to consolidated net income of $93.6 million, or $7.29 per diluted share, for the same period in 2023. Adjusted net income, a non-GAAP financial measure, for the three months ended December 31, 2024 was $126.0 million, or $10.17 per diluted share, compared to $129.1 million, or $10.06 per diluted share, for the same period in 2023. The following table summarizes our financial results:

(In millions, except per share data)	For the Three Months Ended						For the Years Ended
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
GAAP net income	$	151.9	$	78.8	$	93.6	$	247.9	$	286.1
GAAP net income per diluted share	$	12.26	$	6.35	$	7.29	$	19.88	$	21.99

Adjusted net income	$	126.0	$	109.1	$	129.1	$	478.9	$	535.6
Adjusted net income per diluted share	$	10.17	$	8.79	$	10.06	$	38.41	$	41.17

Our results for the fourth quarter of 2024 in comparison to the fourth quarter of 2023 included:

A smaller decline in forecasted collection rates
A decline in forecasted collection rates decreased forecasted net cash flows from our loan portfolio by $31.1 million, or 0.3%, compared to a decrease in forecasted collection rates during the fourth quarter of 2023 that decreased forecasted net cash flows from our loan portfolio by $57.0 million, or 0.6%.

A decrease in forecasted profitability for Consumer Loans assigned in 2021 through 2024
Forecasted profitability was lower than our estimates at December 31, 2023, due to both a decline in forecasted collection rates and slower forecasted net cash flow timing since the fourth quarter of 2023. The slower forecasted net cash flow timing was primarily a result of a decrease in Consumer Loan prepayments, which remain below historical averages.

Slower growth in Consumer Loan assignment unit volume and an increase in the average balance of our loan portfolio
Unit volume growth slowed significantly year-over-year, growing 0.3% as compared to 26.7% in the fourth quarter of 2023. The average balance of our loan portfolio, which is our largest-ever, increased 14.0% and 16.5% on a GAAP and adjusted basis, respectively, as compared to the fourth quarter of 2023.

An increase in the initial spread on Consumer Loan assignments
The initial spread increased to 22.4% compared to 21.7% on Consumer Loans assigned in the fourth quarter of 2023.

An increase in our average cost of debt
Our average cost of debt increased from 6.3% to 7.2%, primarily as a result of higher interest rates on recently completed or extended secured financings and recently issued senior notes and the repayment of older secured financings and senior notes with lower interest rates.

A decrease in common shares outstanding due to stock repurchases
Since the fourth quarter of 2023, we have repurchased approximately 590,000 shares, or 4.7% of the shares outstanding as of December 31, 2023.

Our results for the fourth quarter of 2024 in comparison to the third quarter of 2024 included:

A smaller decline in forecasted collection rates
A decline in forecasted collection rates decreased forecasted net cash flows from our loan portfolio by $31.1 million, or 0.3%, compared to a decrease in forecasted collection rates during the third quarter of 2024 that decreased forecasted net cash flows from our loan portfolio by $62.8 million, or 0.6%.

A decrease in forecasted profitability for Consumer Loans assigned in 2022
Forecasted profitability was lower than our estimates at September 30, 2024, due to the decline in forecasted collection rates.

Slower growth in Consumer Loan assignment unit volume and an increase in the average balance of our loan portfolio
Unit volume growth slowed significantly year-over-year, growing 0.3% as compared to 17.7% in the third quarter of 2024. The average balance of our loan portfolio, which is our largest-ever, increased 1.8% and 1.6% on a GAAP and adjusted basis, respectively, as compared to the third quarter of 2024.

An increase in the initial spread on Consumer Loan assignments
The initial spread increased to 22.4% compared to 21.9% on Consumer Loans assigned in the third quarter of 2024.

Consumer Loan Metrics

Dealers assign retail installment contracts (referred to as “Consumer Loans”) to Credit Acceptance. At the time a Consumer Loan is submitted to us for assignment, we forecast future expected cash flows from the Consumer Loan. Based on the amount and timing of these forecasts and expected expense levels, an advance or one-time purchase payment is made to the related dealer at a price designed to maximize economic profit, a non-GAAP financial measure that considers our return on capital, our cost of capital, and the amount of capital invested.

We use a statistical model to estimate the expected collection rate for each Consumer Loan at the time of assignment. We continue to evaluate the expected collection rate for each Consumer Loan subsequent to assignment. Our evaluation becomes more accurate as the Consumer Loans age, as we use actual performance data in our forecast. By comparing our current expected collection rate for each Consumer Loan with the rate we projected at the time of assignment, we are able to assess the accuracy of our initial forecast. The following table compares our aggregated forecast of Consumer Loan collection rates as of December 31, 2024, with the aggregated forecasts as of September 30, 2024, as of December 31, 2023, and at the time of assignment, segmented by year of assignment:

	Forecasted Collection Percentage as of (1)								Current Forecast Variance from
Consumer Loan Assignment Year	December 31, 2024		September 30, 2024		December 31, 2023		Initial Forecast		September 30, 2024		December 31, 2023		Initial Forecast
2015	65.3	%	65.3	%	65.2	%	67.7	%	0.0	%	0.1	%	-2.4	%
2016	63.9	%	63.9	%	63.8	%	65.4	%	0.0	%	0.1	%	-1.5	%
2017	64.7	%	64.7	%	64.7	%	64.0	%	0.0	%	0.0	%	0.7	%
2018	65.5	%	65.5	%	65.5	%	63.6	%	0.0	%	0.0	%	1.9	%
2019	67.2	%	67.2	%	66.9	%	64.0	%	0.0	%	0.3	%	3.2	%
2020	67.7	%	67.6	%	67.6	%	63.4	%	0.1	%	0.1	%	4.3	%
2021	63.8	%	63.8	%	64.5	%	66.3	%	0.0	%	-0.7	%	-2.5	%
2022	60.2	%	60.6	%	62.7	%	67.5	%	-0.4	%	-2.5	%	-7.3	%
2023	64.3	%	64.3	%	67.4	%	67.5	%	0.0	%	-3.1	%	-3.2	%
2024 (2)	66.5	%	66.6	%	—		67.2	%	-0.1	%	—		-0.7	%

^{(1) Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates.}
^{(2) The forecasted collection rate for 2024 Consumer Loans as of December 31, 2024 includes both Consumer Loans that were in our portfolio as of September 30, 2024 and Consumer Loans assigned during the most recent quarter. The following table provides forecasted collection rates for each of these segments:}

	Forecasted Collection Percentage as of						Current Forecast Variance from
2024 Consumer Loan Assignment Period	December 31, 2024		September 30, 2024		Initial Forecast		September 30, 2024		Initial Forecast
January 1, 2024 through September 30, 2024	66.4	%	66.6	%	67.3	%	-0.2	%	-0.9	%
October 1, 2024 through December 31, 2024	66.8	%	—		66.9	%	—		-0.1	%

Consumer Loans assigned in 2018 through 2020 have yielded forecasted collection results significantly better than our initial estimates, while Consumer Loans assigned in 2015, 2016, and 2021 through 2023 have yielded forecasted collection results significantly worse than our initial estimates. For all other assignment years presented, actual results have been close to our initial estimates. For the three months ended December 31, 2024, forecasted collection rates declined for Consumer Loans assigned in 2022 and 2024 and were generally consistent with expectations at the start of the period for all other assignment years presented. For the year ended December 31, 2024, forecasted collection rates improved for Consumer Loans assigned in 2019, declined for Consumer Loans assigned in 2021 through 2024, and were generally consistent with expectations at the start of the period for all other assignment years presented.

The changes in forecasted collection rates for the three months and years ended December 31, 2024 and 2023 impacted forecasted net cash flows (forecasted collections less forecasted dealer holdback payments) as follows:

(Dollars in millions)	For the Three Months Ended December 31,						For the Years Ended December 31,
Increase (Decrease) in Forecasted Net Cash Flows		2024			2023			2024			2023
Dealer loans	$	(31.6)		$	(36.0)		$	(204.6)		$	(125.3)
Purchased loans		0.5			(21.0)			(109.4)			(81.0)
Total	$	(31.1)		$	(57.0)		$	(314.0)		$	(206.3)
% change from forecast at beginning of period		-0.3	%		-0.6	%		-3.1	%		-2.3	%

During the second quarter of 2024, we applied an adjustment to our methodology for forecasting the amount of future net cash flows from our loan portfolio, which reduced the forecasted collection rates for Consumer Loans assigned in 2022 through 2024. Consumer Loans assigned in 2022 had continued to underperform our expectations for several quarters. Consumer Loans assigned in 2023 had also begun exhibiting similar trends of underperformance, although not as severe as Consumer Loans assigned in 2022. During the second quarter of 2024, we determined that we had sufficient Consumer Loan performance experience to estimate the magnitude by which we expected Consumer Loans assigned in 2022 through 2024 would likely underperform our historical collection rates on Consumer Loans with similar characteristics. Accordingly, we applied an adjustment to Consumer Loans assigned in 2022 through 2024 to reduce forecasted collection rates to what we believed the ultimate collection rates would be based on these trends. Changes in the amount and timing of forecasted net cash flows are recognized in the period of change as a provision for credit losses. The implementation of this forecast adjustment during the second quarter of 2024 reduced forecasted net cash flows by $147.2 million, or 1.4%, and increased provision for credit losses by $127.5 million.

During the second quarter of 2023, we adjusted our methodology for forecasting the amount and timing of future net cash flows from our loan portfolio through the utilization of more recent Consumer Loan performance and Consumer Loan prepayment data. We had experienced a decrease in Consumer Loan prepayments to below-average levels and as a result, slowed our forecasted net cash flow timing. Historically, Consumer Loan prepayments have been lower in periods with less availability of consumer credit. Changes in the amount and timing of forecasted net cash flows are recognized in the period of change as a provision for credit losses. The implementation of the adjustment to our forecasting methodology during the second quarter of 2023 reduced forecasted net cash flows by $44.5 million, or 0.5%, and increased provision for credit losses by $71.3 million.

We have experienced increased levels of uncertainty associated with our estimate of the amount and timing of future net cash flows from our loan portfolio since the beginning of 2020, with realized collections underperforming our expectations during the early stages of the COVID-19 pandemic, outperforming our expectations following the distribution of federal stimulus payments and enhanced unemployment benefits, and underperforming our expectations during the current economic environment. The quarterly changes to our forecast of future net cash flows from our loan portfolio from January 1, 2020 through December 31, 2024 are shown in the following table:

(Dollars in millions)	Increase (Decrease) in Forecasted Net Cash Flows
Three Months Ended	Total Loans		% Change from Forecast at Beginning of Period
March 31, 2020	$	(206.5)	-2.3	%
June 30, 2020		24.4	0.3	%
September 30, 2020		138.5	1.5	%
December 31, 2020		(2.7)	0.0	%
March 31, 2021		107.4	1.1	%
June 30, 2021		104.5	1.1	%
September 30, 2021		82.3	0.9	%
December 31, 2021		31.9	0.3	%
March 31, 2022		110.2	1.2	%
June 30, 2022		(43.4)	-0.5	%
September 30, 2022		(85.4)	-0.9	%
December 31, 2022		(41.1)	-0.5	%
March 31, 2023		9.4	0.1	%
June 30, 2023		(89.3)	-0.9	%
September 30, 2023		(69.4)	-0.7	%
December 31, 2023		(57.0)	-0.6	%
March 31, 2024		(30.8)	-0.3	%
June 30, 2024		(189.3)	-1.7	%
September 30, 2024		(62.8)	-0.6	%
December 31, 2024		(31.1)	-0.3	%

The following table presents information on Consumer Loan assignments for each of the last 10 years:

	Average					Total Assignment Volume
Consumer Loan Assignment Year	Consumer Loan (1)		Advance (2)		Initial Loan Term (in months)	Unit Volume	Dollar Volume (2) (in millions)
2015	$	16,354	$	7,272	50	298,288	$	2,167.0
2016		18,218		7,976	53	330,710		2,635.5
2017		20,230		8,746	55	328,507		2,873.1
2018		22,158		9,635	57	373,329		3,595.8
2019		23,139		10,174	57	369,805		3,772.2
2020		24,262		10,656	59	341,967		3,641.2
2021		25,632		11,790	59	268,730		3,167.8
2022		27,242		12,924	60	280,467		3,625.3
2023		27,025		12,475	61	332,499		4,147.8
2024 (3)		26,497		11,961	61	386,126		4,618.4

^{(1)   Represents the repayments that we were contractually owed on Consumer Loans at the time of assignment, which include both principal and interest.}
^{(2)   Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.}
^{(3)   The averages for 2024 Consumer Loans include both Consumer Loans that were in our portfolio as of September 30, 2024 and Consumer Loans assigned during the most recent quarter. The following table provides averages for each of these segments:}

	Average
2024 Consumer Loan Assignment Period	Consumer Loan		Advance		Initial Loan Term (in months)
January 1, 2024 through September 30, 2024	$	26,564	$	12,018	61
October 1, 2024 through December 31, 2024		26,236		11,739	61

The profitability of our loans is primarily driven by the amount and timing of the net cash flows we receive from the spread between the forecasted collection rate and the advance rate, less operating expenses and the cost of capital. Forecasting collection rates accurately at loan inception is difficult. With this in mind, we establish advance rates that are intended to allow us to achieve acceptable levels of profitability across our portfolio, even if collection rates are less than we initially forecast.

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate), and the percentage of the forecasted collections that had been realized as of December 31, 2024, as well as forecasted collection rates and spreads at the time of assignment. All amounts, unless otherwise noted, are presented as a percentage of the initial balance of the Consumer Loan (principal + interest). The table includes both dealer loans and purchased loans.

	Forecasted Collection % as of						Spread % as of
Consumer Loan Assignment Year	December 31, 2024		Initial Forecast		Advance % (1)		December 31, 2024		Initial Forecast		% of Forecast Realized (2)
2015	65.3	%	67.7	%	44.5	%	20.8	%	23.2	%	99.7	%
2016	63.9	%	65.4	%	43.8	%	20.1	%	21.6	%	99.5	%
2017	64.7	%	64.0	%	43.2	%	21.5	%	20.8	%	99.2	%
2018	65.5	%	63.6	%	43.5	%	22.0	%	20.1	%	98.6	%
2019	67.2	%	64.0	%	44.0	%	23.2	%	20.0	%	96.9	%
2020	67.7	%	63.4	%	43.9	%	23.8	%	19.5	%	92.4	%
2021	63.8	%	66.3	%	46.0	%	17.8	%	20.3	%	83.6	%
2022	60.2	%	67.5	%	47.4	%	12.8	%	20.1	%	66.0	%
2023	64.3	%	67.5	%	46.2	%	18.1	%	21.3	%	43.1	%
2024 (3)	66.5	%	67.2	%	45.1	%	21.4	%	22.1	%	15.1	%

^{(1)   Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program as a percentage of the initial balance of the Consumer Loans.  Payments of dealer holdback and accelerated dealer holdback are not included.}
^{(2)   Presented as a percentage of total forecasted collections.}
^{(3)   The forecasted collection rate, advance rate and spread for 2024 Consumer Loans as of December 31, 2024 include both Consumer Loans that were in our portfolio as of September 30, 2024 and Consumer Loans assigned during the most recent quarter. The following table provides forecasted collection rates, advance rates, and spreads for each of these segments:}

	Forecasted Collection % as of						Spread % as of
2024 Consumer Loan Assignment Period	December 31, 2024		Initial Forecast		Advance %		December 31, 2024		Initial Forecast
January 1, 2024 through September 30, 2024	66.4	%	67.3	%	45.3	%	21.1	%	22.0	%
October 1, 2024 through December 31, 2024	66.8	%	66.9	%	44.5	%	22.3	%	22.4	%

The risk of a material change in our forecasted collection rate declines as the Consumer Loans age. For 2020 and prior Consumer Loan assignments, the risk of a material forecast variance is modest, as we have currently realized in excess of 90% of the expected collections. Conversely, the forecasted collection rates for more recent Consumer Loan assignments are less certain as a significant portion of our forecast has not been realized.

The spread between the forecasted collection rate as of December 31, 2024 and the advance rate ranges from 12.8% to 23.8%, on an annual basis, for Consumer Loans assigned over the last 10 years. The spreads with respect to 2019 and 2020 Consumer Loans have been positively impacted by Consumer Loan performance, which has exceeded our initial estimates by a greater margin than the other years presented. The spread with respect to 2022 Consumer Loans has been negatively impacted by Consumer Loan performance, which has been lower than our initial estimates by a greater margin than the other years presented. The higher spread for 2024 Consumer Loans relative to 2023 Consumer Loans as of December 31, 2024 was primarily a result of Consumer Loan performance, as the performance of 2023 Consumer Loans has been lower than our initial estimates by a greater margin than 2024 Consumer Loans. Additionally, 2024 Consumer Loans had a higher initial spread, which was primarily due to a decrease in the advance rate.

The following table compares our forecast of aggregate Consumer Loan collection rates as of December 31, 2024 with the forecasts at the time of assignment, for dealer loans and purchased loans separately:

	Dealer Loans						Purchased Loans
	Forecasted Collection Percentage as of (1)						Forecasted Collection Percentage as of (1)
Consumer Loan Assignment Year	December 31, 2024		Initial Forecast		Variance		December 31, 2024		Initial Forecast		Variance
2015	64.6	%	67.5	%	-2.9	%	69.0	%	68.5	%	0.5	%
2016	63.1	%	65.1	%	-2.0	%	66.1	%	66.5	%	-0.4	%
2017	64.1	%	63.8	%	0.3	%	66.3	%	64.6	%	1.7	%
2018	64.9	%	63.6	%	1.3	%	66.8	%	63.5	%	3.3	%
2019	66.8	%	63.9	%	2.9	%	67.9	%	64.2	%	3.7	%
2020	67.5	%	63.3	%	4.2	%	67.9	%	63.6	%	4.3	%
2021	63.5	%	66.3	%	-2.8	%	64.3	%	66.3	%	-2.0	%
2022	59.5	%	67.3	%	-7.8	%	62.1	%	68.0	%	-5.9	%
2023	63.1	%	66.8	%	-3.7	%	67.7	%	69.4	%	-1.7	%
2024	65.4	%	66.3	%	-0.9	%	70.7	%	70.7	%	0.0	%

^{(1) The forecasted collection rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment. The forecasted collection rates represent the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates.}

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate) as of December 31, 2024 for dealer loans and purchased loans separately. All amounts are presented as a percentage of the initial balance of the Consumer Loan (principal + interest).

	Dealer Loans						Purchased Loans
Consumer Loan Assignment Year	Forecasted Collection % (1)		Advance % (1)(2)		Spread %		Forecasted Collection % (1)		Advance % (1)(2)		Spread %
2015	64.6	%	43.4	%	21.2	%	69.0	%	50.2	%	18.8	%
2016	63.1	%	42.1	%	21.0	%	66.1	%	48.6	%	17.5	%
2017	64.1	%	42.1	%	22.0	%	66.3	%	45.8	%	20.5	%
2018	64.9	%	42.7	%	22.2	%	66.8	%	45.2	%	21.6	%
2019	66.8	%	43.1	%	23.7	%	67.9	%	45.6	%	22.3	%
2020	67.5	%	43.0	%	24.5	%	67.9	%	45.5	%	22.4	%
2021	63.5	%	45.1	%	18.4	%	64.3	%	47.7	%	16.6	%
2022	59.5	%	46.4	%	13.1	%	62.1	%	50.1	%	12.0	%
2023	63.1	%	44.8	%	18.3	%	67.7	%	49.8	%	17.9	%
2024	65.4	%	44.1	%	21.3	%	70.7	%	48.9	%	21.8	%

^{(1) The forecasted collection rates and advance rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment.}
^{(2) Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program as a percentage of the initial balance of the Consumer Loans. Payments of dealer holdback and accelerated dealer holdback are not included.}

Although the advance rate on purchased loans is higher as compared to the advance rate on dealer loans, purchased loans do not require us to pay dealer holdback.

The spread as of December 31, 2024 on 2024 dealer loans was 21.3%, as compared to a spread of 18.3% on 2023 dealer loans. The increase was primarily due to Consumer Loan performance, as the performance of 2023 dealer loans has been lower than our initial estimates by a greater margin than 2024 dealer loans.

The spread as of December 31, 2024 on 2024 purchased loans was 21.8%, as compared to a spread of 17.9% on 2023 purchased loans. The increase was primarily a result of a higher initial spread on 2024 purchased loans, due to a higher initial forecast and lower advance rate. Additionally, the performance of 2023 purchased loans has been lower than our initial estimates.

Consumer Loan Volume

The following table summarizes changes in Consumer Loan assignment volume in each of the last eight quarters as compared to the same period in the previous year:

	Year over Year Percent Change
Three Months Ended	Unit Volume		Dollar Volume (1)
March 31, 2023	22.8	%	18.6	%
June 30, 2023	12.8	%	8.3	%
September 30, 2023	13.0	%	10.5	%
December 31, 2023	26.7	%	21.3	%
March 31, 2024	24.1	%	20.2	%
June 30, 2024	20.9	%	16.3	%
September 30, 2024	17.7	%	12.2	%
December 31, 2024	0.3	%	-4.9	%

^{(1) Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.}

Consumer Loan assignment volumes depend on a number of factors including (1) the overall demand for our financing programs, (2) the amount of capital available to fund new loans, and (3) our assessment of the volume that our infrastructure can support. Our pricing strategy is intended to maximize the amount of economic profit we generate, within the confines of capital and infrastructure constraints.

Unit volumes grew 0.3% while dollar volume declined 4.9% during the fourth quarter of 2024 as the number of active dealers grew 4.7% and the average unit volume per active dealer declined 3.7%. Dollar volume declined while unit volume grew modestly during the fourth quarter of 2024 due to a decrease in the average advance paid, resulting from decreases in the average size of Consumer Loans assigned and the average advance rate. Unit volume for the 28-day period ended January 28, 2025 decreased 3.2% compared to the same period in 2024.

The following table summarizes the changes in Consumer Loan unit volume and active dealers:

	For the Three Months Ended December 31,				For the Years Ended December 31,
	2024	2023	% Change		2024	2023	% Change
Consumer Loan unit volume	78,911	78,652	0.3	%	386,126	332,499	16.1	%
Active dealers (1)	10,149	9,693	4.7	%	15,463	14,174	9.1	%
Average volume per active dealer	7.8	8.1	-3.7	%	25.0	23.5	6.4	%

Consumer Loan unit volume from dealers active both periods	61,222	64,393	-4.9	%	339,361	304,779	11.3	%
Dealers active both periods	6,294	6,294	—		10,637	10,637	—
Average volume per dealer active both periods	9.7	10.2	-4.9	%	31.9	28.7	11.3	%

Consumer loan unit volume from dealers not active both periods	17,689	14,259	24.1	%	46,765	27,720	68.7	%
Dealers not active both periods	3,855	3,399	13.4	%	4,826	3,537	36.4	%
Average volume per dealer not active both periods	4.6	4.2	9.5	%	9.7	7.8	24.4	%

^{(1) Active dealers are dealers who have received funding for at least one Consumer Loan during the period.}

The following table provides additional information on the changes in Consumer Loan unit volume and active dealers:

	For the Three Months Ended December 31,						For the Years Ended December 31,
	2024		2023		% Change		2024		2023		% Change
Consumer Loan unit volume from new active dealers	2,733		3,307		-17.4	%	43,985		46,741		-5.9	%
New active dealers (1)	902		975		-7.5	%	4,330		4,070		6.4	%
Average volume per new active dealer	3.0		3.4		-11.8	%	10.2		11.5		-11.3	%

Attrition (2)	-18.1	%	-17.4	%			-8.3	%	-7.3	%

^{(1) New active dealers are dealers who enrolled in our program and have received funding for their first dealer loan or purchased loan from us during the period.}
^{(2) Attrition is measured according to the following formula: decrease in Consumer Loan unit volume from dealers who have received funding for at least one dealer loan or purchased loan during the comparable period of the prior year but did not receive funding for any dealer loans or purchased loans during the current period divided by prior year comparable period Consumer Loan unit volume.}

The following table shows the percentage of Consumer Loans assigned to us as dealer loans and purchased loans for each of the last eight quarters:

	Unit Volume				Dollar Volume (1)
Three Months Ended	Dealer Loans		Purchased Loans		Dealer Loans		Purchased Loans
March 31, 2023	72.1	%	27.9	%	68.1	%	31.9	%
June 30, 2023	72.4	%	27.6	%	68.6	%	31.4	%
September 30, 2023	74.8	%	25.2	%	71.7	%	28.3	%
December 31, 2023	77.2	%	22.8	%	75.0	%	25.0	%
March 31, 2024	78.2	%	21.8	%	76.6	%	23.4	%
June 30, 2024	78.5	%	21.5	%	77.3	%	22.7	%
September 30, 2024	79.5	%	20.5	%	78.4	%	21.6	%
December 31, 2024	78.7	%	21.3	%	77.7	%	22.3	%

^{(1) Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.}

As of December 31, 2024 and December 31, 2023, the net dealer loans receivable balance was 72.3% and 67.7%, respectively, of the total net loans receivable balance.

Financial Results

(Dollars in millions, except per share data)	For the Three Months Ended December 31,						For the Years Ended December 31,
		2024		2023	% Change			2024		2023	% Change
GAAP average debt	$	6,202.5	$	4,986.3	24.4	%	$	5,849.7	$	4,785.7	22.2	%
GAAP average shareholders’ equity		1,712.3		1,734.3	-1.3	%		1,652.1		1,722.9	-4.1	%
Average capital	$	7,914.8	$	6,720.6	17.8	%	$	7,501.8	$	6,508.6	15.3	%
GAAP net income	$	151.9	$	93.6	62.3	%	$	247.9	$	286.1	-13.4	%
Diluted weighted average shares outstanding		12,388,072		12,837,181	-3.5	%		12,469,283		13,010,735	-4.2	%
GAAP net income per diluted share	$	12.26	$	7.29	68.2	%	$	19.88	$	21.99	-9.6	%

The increase in GAAP net income for the three months ended December 31, 2024, as compared to the same period in 2023, was primarily a result of the following:

An increase in finance charges of 14.7% ($66.6 million), primarily due to an increase in the average balance of our loan portfolio.
A decrease in provision for credit losses of 24.6% ($40.3 million), due to:
- A decrease in provision for credit losses on forecast changes of $31.4 million, due to a smaller decline in Consumer Loan performance.
- A decrease in provision for credit losses on new Consumer Loan assignments of $8.9 million, primarily due a 13.1% decrease in the average provision per Consumer Loan assignment. The decrease in average provision per new Consumer Loan assignment was primarily due to a decrease in the average advance rate for 2024 Consumer Loans.
- The following table summarizes each component of provision for credit losses:

(In millions)	For the Three Months Ended December 31,
Provision for Credit Losses		2024		2023	Change
Forecast changes	$	62.9	$	94.3	$	(31.4)
New Consumer Loan assignments		60.5		69.4		(8.9)
Total	$	123.4	$	163.7	$	(40.3)

An increase in premiums earned of 14.8% ($3.2 million), primarily due to growth in the size of our reinsurance portfolio, which resulted from growth in new Consumer Loan assignments and an increase in the average premium written per reinsured vehicle service contract in recent periods.
An increase in operating expenses of 6.4% ($7.3 million), primarily due to:
- An increase in salaries and wages expense of 17.4% ($11.5 million), primarily due to increases in (i) the number of team members as we are investing in our business with the goal of increasing the speed at which we enhance our product for dealers and consumers, (ii) stock-based compensation expense, primarily due to equity awards granted to our executive officers and senior leaders, and (iii) fringe benefits, primarily due to higher medical claims.
- A decrease in general and administrative expenses of 19.7% ($5.4 million), primarily due to a decrease in legal expenses.
An increase in provision for income taxes of 75.4% ($17.2 million), primarily due to an increase in pre-tax income.
An increase in interest expense of 41.2% ($32.5 million), due to:
- An increase in our average outstanding debt balance, which increased interest expense by $19.0 million, primarily due to borrowings used to fund the growth of our loan portfolio and stock repurchases.
- An increase in our average cost of debt, which increased interest expense by $13.5 million, primarily as a result of higher interest rates on recently completed or extended secured financings and recently issued senior notes and the repayment of older secured financings and senior notes with lower interest rates.

The decrease in GAAP net income for the year ended December 31, 2024, as compared to the same period in 2023, was primarily a result of the following:

An increase in interest expense of 57.4% ($153.0 million), due to:
- An increase in our average cost of debt, which increased interest expense by $93.7 million, primarily as a result of higher interest rates on recently completed or extended secured financings and recently issued senior notes and the repayment of older secured financings and senior notes with lower interest rates.
- An increase in our average outstanding debt balance, which increased interest expense by $59.3 million, primarily due to borrowings used to fund the growth of our loan portfolio and stock repurchases.
An increase in provision for credit losses of 10.7% ($78.5 million), primarily due to an increase in provision for credit losses on forecast changes of $80.1 million, due to a greater decline in Consumer Loan performance and slower net cash flow timing during 2024 compared to 2023.

During 2024, we decreased our estimate of future net cash flows by $314.0 million, or 3.1%, to reflect a decline in forecasted collection rates during the period, and slowed our forecasted net cash flow timing to reflect a decrease in Consumer Loan prepayments, which remain below historical averages. Historically, Consumer Loan prepayments have been lower in periods with less availability of consumer credit. The $314.0 million decrease in forecasted net cash flows for 2024 was composed of an ordinary decrease in forecasted net cash flows of $166.8 million, or 1.7%, and an adjustment applied to our forecasting methodology during the second quarter of 2024, which upon implementation, reduced forecasted net cash flows by $147.2 million, or 1.4%, and increased our provision for credit losses by $127.5 million.

During 2023, we decreased our estimate of future net cash flows by $206.3 million, or 2.3%, to reflect a decline in forecasted collection rates during the period and slowed our forecasted net cash flow timing to reflect a decrease in Consumer Loan prepayments. The $206.3 million decrease in forecasted net cash flows for 2023 was composed of an ordinary decrease in forecasted net cash flows of $161.8 million, or 1.8%, and an adjustment to our forecasting methodology during the second quarter of 2023, which upon implementation, decreased our estimate of future net cash flows by $44.5 million, or 0.5%, and increased our provision for credit losses by $71.3 million.

The following table summarizes each component of provision for credit losses:

(In millions)	For the Years Ended December 31,
Provision for Credit Losses		2024		2023	Change
Forecast changes	$	493.8	$	413.7	$	80.1
New Consumer Loan assignments		320.9		322.5		(1.6)
Total	$	814.7	$	736.2	$	78.5

An increase in operating expenses of 9.2% ($42.4 million), primarily due to:
- An increase in salaries and wages expense of 10.3% ($29.0 million), primarily due to increases in (i) the number of team members as we are investing in our business with the goal of increasing the speed at which we enhance our product for dealers and consumers, (ii) fringe benefits, primarily due to higher medical claims, and (iii) stock-based compensation expense, primarily due to equity awards granted to our executive officers and senior leaders.
- An increase in general and administrative expense of 12.3% ($10.7 million), primarily due to increases in legal and technology systems expenses.
A loss on sale of building of $23.7 million related to the sale of one of our two office buildings. The building was sold to reduce excess office space and eliminate the associated annual operating costs of approximately $2.1 million.
An increase in premiums earned of 20.7% ($16.5 million), primarily due to growth in the size of our reinsurance portfolio, which resulted from growth in new Consumer Loan assignments and an increase in the average premium written per reinsured vehicle service contract in recent periods.
An increase in finance charges of 13.5% ($237.3 million), primarily due to an increase in the average balance of our loan portfolio.

Adjusted financial results are provided to help shareholders understand our financial performance. The financial data below is non-GAAP, unless labeled otherwise. We use adjusted financial information internally to measure financial performance and to determine certain incentive compensation. We also use economic profit as a framework to evaluate business decisions and strategies, with the objective to maximize economic profit over the long term. In addition, certain debt facilities utilize adjusted financial information for the determination of loan collateral values and to measure financial covenants. The table below shows our results following adjustments to reflect non-GAAP accounting methods. Material adjustments are explained in the table footnotes and the subsequent “Floating Yield Adjustment” and “Senior Notes Adjustment” sections. Measures such as adjusted average capital, adjusted net income, adjusted net income per diluted share, adjusted interest expense (after-tax), adjusted net income plus adjusted interest expense (after-tax), adjusted return on capital, adjusted revenue, operating expenses, adjusted loans receivable, economic profit, and economic profit per diluted share are non-GAAP financial measures. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP.

Adjusted financial results for the three months and year ended December 31, 2024, compared to the same periods in 2023, include the following:

(Dollars in millions, except per share data)	For the Three Months Ended December 31,								For the Years Ended December 31,
		2024			2023		% Change			2024			2023		% Change
Adjusted average capital	$	8,633.3		$	7,234.3		19.3	%	$	8,140.5		$	6,909.8		17.8	%
Adjusted net income	$	126.0		$	129.1		-2.4	%	$	478.9		$	535.6		-10.6	%
Adjusted interest expense (after-tax)	$	85.7		$	63.4		35.2	%	$	323.0		$	209.5		54.2	%
Adjusted net income plus adjusted interest expense (after-tax)	$	211.7		$	192.5		10.0	%	$	801.9		$	745.1		7.6	%
Adjusted return on capital		9.8	%		10.6	%	-7.5	%		9.9	%		10.8	%	-8.3	%
Cost of capital		7.4	%		7.6	%	-2.6	%		7.4	%		7.0	%	5.7	%
Economic profit	$	51.3		$	55.9		-8.2	%	$	200.3		$	260.5		-23.1	%
Diluted weighted average shares outstanding		12,388,072			12,837,181		-3.5	%		12,469,283			13,010,735		-4.2	%
Adjusted net income per diluted share	$	10.17		$	10.06		1.1	%	$	38.41		$	41.17		-6.7	%
Economic profit per diluted share	$	4.14		$	4.35		-4.8	%	$	16.06		$	20.02		-19.8	%

Economic profit decreased 8.2% and 23.1% for the three months and year ended December 31, 2024, as compared to the same periods in 2023. Economic profit is a function of the return on capital in excess of the cost of capital and the amount of capital invested in the business. The following table summarizes the impact each of these components had on the changes in economic profit for the three months and year ended December 31, 2024, as compared to the same periods in 2023:

(In millions)	Year over Year Change in Economic Profit
	For the Three Months Ended December 31, 2024		For the Year Ended December 31, 2024
Decrease in adjusted return on capital	$	(17.9)	$	(76.0)
Decrease (increase) in cost of capital		2.5		(30.5)
Increase in adjusted average capital		10.8		46.3
Decrease in economic profit	$	(4.6)	$	(60.2)

The decrease in economic profit for the three months ended December 31, 2024, as compared to the same period in 2023, was primarily a result of the following:

A decrease in our adjusted return on capital of 80 basis points, primarily due to:
- A decrease in the yield used to recognize adjusted finance charges on our loan portfolio decreased our adjusted return on capital by 150 basis points, primarily due to both a decline in forecasted collection rates and slower forecasted net cash flow timing since the third quarter of 2023. The slower forecasted net cash flow timing was primarily a result of a decrease in Consumer Loan prepayments, which remain below historical averages.
- Slower growth in operating expenses increased our adjusted return on capital by 50 basis points as operating expenses grew by 6.4% while adjusted average capital grew by 19.3%.
An increase in adjusted average capital of 19.3%, primarily due to an increase in the average balance of our loan portfolio.

The decrease in economic profit for the year ended December 31, 2024, as compared to the same period in 2023, was primarily a result of the following:

A decrease in our adjusted return on capital of 90 basis points, primarily due to:
- A decrease in the yield used to recognize adjusted finance charges on our loan portfolio decreased our adjusted return on capital by 140 basis points, primarily due to both a decline in forecasted collection rates and slower forecasted net cash flow timing since the first quarter of 2023. The slower forecasted net cash flow timing was primarily a result of a decrease in Consumer Loan prepayments, which remain below historical averages.
- Slower growth in operating expenses increased our adjusted return on capital by 40 basis points as operating expenses grew by 9.2% while adjusted average capital grew by 17.8%.
An increase in our cost of capital, primarily due to an increase in our cost of debt, primarily as a result of higher interest rates on recently completed or extended secured financings and recently issued senior notes and the repayment of older secured financings and senior notes with lower interest rates.
An increase in adjusted average capital of 17.8%, primarily due to an increase in the average balance of our loan portfolio.

The following table shows adjusted revenue and operating expenses as a percentage of adjusted average capital, the adjusted return on capital, and the percentage change in adjusted average capital for each of the last eight quarters, compared to the same period in the prior year:

	For the Three Months Ended
	Dec. 31, 2024		Sept. 30, 2024		Jun. 30, 2024		Mar. 31, 2024		Dec. 31, 2023		Sept. 30, 2023		Jun. 30, 2023		Mar. 31, 2023
Adjusted revenue as a percentage of adjusted average capital (1)	18.4	%	18.2	%	19.6	%	19.8	%	20.2	%	20.7	%	21.2	%	20.6	%
Operating expenses as a percentage of adjusted average capital (1)	5.6	%	6.2	%	6.2	%	6.7	%	6.3	%	6.3	%	6.9	%	7.2	%
Adjusted return on capital (1)	9.8	%	9.3	%	10.3	%	10.1	%	10.6	%	11.1	%	11.1	%	10.3	%
Percentage change in adjusted average capital compared to the same period in the prior year	19.3	%	19.4	%	17.6	%	14.6	%	11.5	%	8.8	%	6.2	%	1.0	%

^{(1) Annualized.}

The increase in adjusted return on capital for the three months ended December 31, 2024, as compared to the three months ended September 30, 2024, was primarily due to a decrease in operating expenses, which increased adjusted return on capital by 40 basis points, as operating expenses declined by 6.0% while adjusted average capital grew by 2.9%. The $7.8 million decrease in operating expenses was primarily due to a decrease in legal expenses.

The following tables provide a reconciliation of non-GAAP measures to GAAP measures. Certain amounts do not recalculate due to rounding.

(Dollars in millions, except per share data)	For the Three Months Ended
	Dec. 31, 2024			Sept. 30, 2024			Jun. 30, 2024			Mar. 31, 2024			Dec. 31, 2023			Sept. 30, 2023			Jun. 30, 2023			Mar. 31, 2023
Adjusted net income
GAAP net income (loss)	$	151.9		$	78.8		$	(47.1)		$	64.3		$	93.6		$	70.8		$	22.2		$	99.5
Floating yield adjustment (after-tax)		(116.8)			(115.1)			(96.1)			(92.4)			(83.9)			(76.4)			(73.9)			(75.9)
GAAP provision for credit losses (after-tax)		95.0			142.2			246.9			143.2			126.1			142.1			192.9			105.8
Loss on sale of building (after-tax) (1)		—			—			18.3			—			—			—			—			—
Senior notes adjustment (after-tax)		—			—			—			—			(2.6)			(0.5)			(0.6)			(0.5)
Income tax adjustment (2)		(4.1)			3.2			4.4			2.3			(4.1)			3.5			(0.6)			(1.9)
Adjusted net income	$	126.0		$	109.1		$	126.4		$	117.4		$	129.1		$	139.5		$	140.0		$	127.0

Adjusted net income per diluted share (3)	$	10.17		$	8.79		$	10.29		$	9.28		$	10.06		$	10.70		$	10.69		$	9.71
Diluted weighted average shares outstanding		12,388,072			12,415,143			12,282,174			12,646,529			12,837,181			13,039,638			13,099,961			13,073,316

Adjusted revenue
GAAP total revenue	$	565.9		$	550.3		$	538.2		$	508.0		$	491.6		$	478.6		$	477.9		$	453.8
Floating yield adjustment		(151.8)			(149.4)			(124.8)			(120.0)			(108.9)			(99.3)			(96.1)			(98.4)
GAAP provision for claims		(17.7)			(18.5)			(20.3)			(17.0)			(16.6)			(16.5)			(19.7)			(17.9)
Adjusted revenue	$	396.4		$	382.4		$	393.1		$	371.0		$	366.1		$	362.8		$	362.1		$	337.5

Adjusted average capital
GAAP average debt	$	6,202.5		$	6,071.1		$	5,818.2		$	5,306.8		$	4,986.3		$	4,831.4		$	4,730.3		$	4,594.7
Deferred debt issuance adjustment		—			—			—			—			20.9			24.5			24.0			21.2
Senior notes debt adjustment		—			—			—			—			2.8			3.4			3.4			3.4
Adjusted average debt		6,202.5			6,071.1			5,818.2			5,306.8			5,010.0			4,859.3			4,757.7			4,619.3
GAAP average shareholders’ equity		1,712.3			1,594.2			1,623.5			1,678.5			1,734.3			1,731.3			1,752.6			1,673.3
Senior notes equity adjustment		—			—			—			—			2.0			2.9			3.4			4.0
Income tax adjustment (4)		(118.5)			(118.5)			(118.5)			(118.5)			(118.5)			(118.5)			(118.5)			(118.5)
Floating yield adjustment		837.0			840.8			710.1			641.0			606.5			548.9			433.9			373.7
Adjusted average equity		2,430.8			2,316.5			2,215.1			2,201.0			2,224.3			2,164.6			2,071.4			1,932.5
Adjusted average capital	$	8,633.3		$	8,387.6		$	8,033.3		$	7,507.8		$	7,234.3		$	7,023.9		$	6,829.1		$	6,551.8

Adjusted revenue as a percentage of adjusted average capital (5)		18.4	%		18.2	%		19.6	%		19.8	%		20.2	%		20.7	%		21.2	%		20.6	%

Adjusted loans receivable
GAAP loans receivable, net	$	7,850.3		$	7,781.5		$	7,547.7		$	7,345.6		$	6,955.3		$	6,780.5		$	6,610.3		$	6,500.3
Floating yield adjustment		1,072.4			1,100.8			1,065.6			869.7			803.8			748.9			663.7			509.2
Adjusted loans receivable	$	8,922.7		$	8,882.3		$	8,613.3		$	8,215.3		$	7,759.1		$	7,529.4		$	7,274.0		$	7,009.5

Adjusted interest expense (after-tax)
GAAP interest expense	$	111.3		$	111.2		$	104.5		$	92.5		$	78.8		$	70.5		$	62.8		$	54.4
Senior notes adjustment		—			—			—			—			3.5			0.7			0.7			0.7
Adjusted interest expense (pre-tax)		111.3			111.2			104.5			92.5			82.3			71.2			63.5			55.1
Adjustment to record tax effect (2)		(25.6)			(25.6)			(24.0)			(21.3)			(18.9)			(16.4)			(14.6)			(12.7)
Adjusted interest expense (after-tax)	$	85.7		$	85.6		$	80.5		$	71.2		$	63.4		$	54.8		$	48.9		$	42.4

^{(1)   The sale of one of our two office buildings in June 2024 resulted in a loss on the sale of the asset. As this transaction is both unusual and infrequent in nature, we applied this adjustment to remove the impact of the loss on sale of building from our adjusted net income.}
^{(2)   Adjustment to record taxes at our estimated long-term effective income tax rate of 23%.}
^{(3)   Net income per diluted share is computed independently for each of the quarters presented. Therefore, the sum of quarterly net income per diluted share information may not equal year-to-date net income per diluted share.}
^{(4)   The enactment of the Tax Cuts and Jobs Act in December 2017 resulted in the reversal of $118.5 million of provision for income taxes to reflect the new federal statutory income tax rate. This adjustment removes the impact of this reversal from adjusted average capital. We believe the income tax adjustment provides a more accurate reflection of the performance of our business as we are recognizing provision for income taxes at the applicable long-term effective tax rate for the period.}
^{(5)   Annualized.}

(Dollars in millions)	For the Three Months Ended
	Dec. 31, 2024			Sept. 30, 2024			Jun. 30, 2024			Mar. 31, 2024			Dec. 31, 2023			Sept. 30, 2023			Jun. 30, 2023			Mar. 31, 2023
Adjusted return on capital (1)
Adjusted net income	$	126.0		$	109.1		$	126.4		$	117.4		$	129.1		$	139.5		$	140.0		$	127.0
Adjusted interest expense (after-tax)		85.7			85.6			80.5			71.2			63.4			54.8			48.9			42.4
Adjusted net income plus adjusted interest expense (after-tax)	$	211.7		$	194.7		$	206.9		$	188.6		$	192.5		$	194.3		$	188.9		$	169.4

Reconciliation of GAAP return on equity to adjusted return on capital (4)
GAAP return on equity (2)		35.5	%		19.8	%		-11.6	%		15.3	%		21.6	%		16.4	%		5.1	%		23.8	%
Non-GAAP adjustments		-25.7	%		-10.5	%		21.9	%		-5.2	%		-11.0	%		-5.3	%		6.0	%		-13.5	%
Adjusted return on capital (1)		9.8	%		9.3	%		10.3	%		10.1	%		10.6	%		11.1	%		11.1	%		10.3	%

Economic profit
Adjusted return on capital		9.8	%		9.3	%		10.3	%		10.1	%		10.6	%		11.1	%		11.1	%		10.3	%
Cost of capital (3) (4)		7.4	%		7.3	%		7.5	%		7.3	%		7.6	%		7.1	%		6.7	%		6.6	%
Adjusted return on capital in excess of cost of capital		2.4	%		2.0	%		2.8	%		2.8	%		3.0	%		4.0	%		4.4	%		3.7	%
Adjusted average capital	$	8,633.3		$	8,387.6		$	8,033.3		$	7,507.8		$	7,234.3		$	7,023.9		$	6,829.1		$	6,551.8
Economic profit	$	51.3		$	41.4		$	56.2		$	51.4		$	55.9		$	69.1		$	74.1		$	61.4

Reconciliation of GAAP net income (loss) to economic profit
GAAP net income (loss)	$	151.9		$	78.8		$	(47.1)		$	64.3		$	93.6		$	70.8		$	22.2		$	99.5
Non-GAAP adjustments		(25.9)			30.3			173.5			53.1			35.5			68.7			117.8			27.5
Adjusted net income		126.0			109.1			126.4			117.4			129.1			139.5			140.0			127.0
Adjusted interest expense (after-tax)		85.7			85.6			80.5			71.2			63.4			54.8			48.9			42.4
Adjusted net income plus adjusted interest expense (after-tax)		211.7			194.7			206.9			188.6			192.5			194.3			188.9			169.4
Less: cost of capital		160.4			153.3			150.7			137.2			136.6			125.2			114.8			108.0
Economic profit	$	51.3		$	41.4		$	56.2		$	51.4		$	55.9		$	69.1		$	74.1		$	61.4

Economic profit per diluted share (5)	$	4.14		$	3.33		$	4.58		$	4.06		$	4.35		$	5.30		$	5.66		$	4.70

Operating expenses as a percentage of adjusted average capital (4)		5.6	%		6.2	%		6.2	%		6.7	%		6.3	%		6.3	%		6.9	%		7.2	%

Percentage change in adjusted average capital compared to the same period in the prior year		19.3	%		19.4	%		17.6	%		14.6	%		11.5	%		8.8	%		6.2	%		1.0	%

^{(1) Adjusted return on capital is defined as adjusted net income plus adjusted interest expense (after-tax) divided by adjusted average capital.}
^{(2) Calculated by dividing GAAP net income (loss) by GAAP average shareholders’ equity.}
^{(3) The cost of capital includes both a cost of equity and a cost of debt. The cost of equity capital is determined based on a formula that considers the risk of the business and the risk associated with our use of debt. The formula utilized for determining the cost of equity capital is as follows: (the average 30-year Treasury rate + 5%) + [(1 – tax rate) x (the average 30-year Treasury rate + 5% – pre-tax average cost of debt rate) x average debt/(average equity + average debt x tax rate)]. For the periods presented, the average 30-year Treasury rate and the adjusted pre-tax average cost of debt were as follows:}

	For the Three Months Ended
	Dec. 31, 2024		Sept. 30, 2024		Jun. 30, 2024		Mar. 31, 2024		Dec. 31, 2023		Sept. 30, 2023		Jun. 30, 2023		Mar. 31, 2023
Average 30-year Treasury rate	4.4	%	4.3	%	4.6	%	4.3	%	4.7	%	4.2	%	3.8	%	3.8	%
Pre-tax average cost of debt (4)	7.2	%	7.3	%	7.2	%	7.0	%	6.3	%	5.9	%	5.3	%	4.8	%

^{(4) Annualized.}
^{(5) Economic profit per diluted share is computed independently for each of the quarters presented. Therefore, the sum of quarterly economic profit per diluted share information may not equal year-to-date economic profit per diluted share.}

(In millions, except share and per share data)	For the Years Ended December 31,
		2024			2023
Adjusted net income
GAAP net income	$	247.9		$	286.1
Floating yield adjustment (after-tax)		(420.4)			(310.1)
GAAP provision for credit losses (after-tax)		627.3			566.9
Loss on sale of building (after-tax) (1)		18.3			—
Senior notes adjustment (after-tax)		—			(4.2)
Income tax adjustment (2)		5.8			(3.1)
Adjusted net income	$	478.9		$	535.6

Adjusted net income per diluted share	$	38.41		$	41.17
Diluted weighted average shares outstanding		12,469,283			13,010,735

Adjusted average capital
GAAP average debt	$	5,849.7		$	4,785.7
Deferred debt issuance adjustment		—			22.7
Senior notes debt adjustment		—			3.2
Adjusted average debt		5,849.7			4,811.6
GAAP average shareholders’ equity		1,652.1			1,722.9
Senior notes equity adjustment		—			3.1
Income tax adjustment (3)		(118.5)			(118.5)
Floating yield adjustment		757.2			490.7
Adjusted average equity		2,290.8			2,098.2
Adjusted average capital	$	8,140.5		$	6,909.8

Adjusted interest expense (after-tax)
GAAP interest expense	$	419.5		$	266.5
Senior notes adjustment		—			5.6
Adjusted interest expense (pre-tax)		419.5			272.1
Adjustment to record tax effect (2)		(96.5)			(62.6)
Adjusted interest expense (after-tax)	$	323.0		$	209.5

Adjusted return on capital (5)
Adjusted net income	$	478.9		$	535.6
Adjusted interest expense (after-tax)		323.0			209.5
Adjusted net income plus adjusted interest expense (after-tax)	$	801.9		$	745.1

Reconciliation of GAAP return on equity to adjusted return on capital
GAAP return on equity (4)		15.0	%		16.6	%
Non-GAAP adjustments		-5.1	%		-5.8	%
Adjusted return on capital (5)		9.9	%		10.8	%

Economic profit
Adjusted return on capital		9.9	%		10.8	%
Cost of capital (6)		7.4	%		7.0	%
Adjusted return on capital in excess of cost of capital		2.5	%		3.8	%
Adjusted average capital	$	8,140.5		$	6,909.8
Economic profit	$	200.3		$	260.5

Reconciliation of GAAP net income to economic profit
GAAP net income	$	247.9		$	286.1
Non-GAAP adjustments		231.0			249.5
Adjusted net income		478.9			535.6
Adjusted interest expense (after-tax)		323.0			209.5
Adjusted net income plus adjusted interest expense (after-tax)		801.9			745.1
Less: cost of capital		601.6			484.6
Economic profit	$	200.3		$	260.5

Economic profit per diluted share (7)	$	16.06		$	20.02

^{(1)   The sale of one of our two office buildings in June 2024 resulted in a loss on the sale of the asset. As this transaction is both unusual and infrequent in nature, we applied this adjustment to remove the impact of the loss on sale of building from our adjusted net income.}
^{(2)        Adjustment to record taxes at our estimated long-term effective income tax rate of 23%.}
^{(3)   The enactment of the Tax Cuts and Jobs Act in December 2017 resulted in the reversal of $118.5 million of provision for income taxes to reflect the new federal statutory income tax rate. This adjustment removes the impact of this reversal from adjusted average capital. We believe the income tax adjustment provides a more accurate reflection of the performance of our business as we are recognizing provision for income taxes at the applicable long-term effective tax rate for the period.}
^{(4)   Calculated by dividing GAAP net income by GAAP average shareholders’ equity.}
^{(5)   Adjusted return on capital is defined as adjusted net income plus adjusted interest expense after-tax divided by adjusted average capital.}
^{(6)   The cost of capital includes both a cost of equity and a cost of debt.  The cost of equity capital is determined based on a formula that considers the risk of the business and the risk associated with our use of debt.  The formula utilized for determining the cost of equity capital is as follows: (the average 30-year Treasury rate + 5%) + [(1 – tax rate) x (the average 30-year Treasury rate + 5% – pre-tax average cost of debt rate) x average debt/(average equity + average debt x tax rate)].  For the periods presented, the average 30-year Treasury rate and the adjusted pre-tax average cost of debt were as follows:}

	For the Years Ended December 31,
	2024		2023
Average 30-year Treasury rate	4.4	%	4.1	%
Pre-tax average cost of debt	7.2	%	5.5	%

^{(7) Economic profit per diluted share is computed independently for each of the quarters presented. Therefore, the sum of quarterly economic profit per diluted share information may not equal year-to-date economic profit per diluted share.}

Floating Yield Adjustment

The net loan income (finance charge revenue less provision for credit losses expense) that we recognize over the life of a loan equals the cash we collect from the underlying Consumer Loan less the cash we pay to the dealer. We believe the economics of our business are best exhibited by recognizing loan revenue on a level-yield basis over the life of the loan based on expected future net cash flows. The purpose of this non-GAAP adjustment is to provide insight into our business by showing this level yield measure of income. Under GAAP, contractual amounts due in excess of the loan receivable balance at the time of assignment will be reflected as interest income, while contractual amounts due that are not expected to be collected are reflected in the provision for credit losses. Our non-GAAP floating yield adjustment recognizes the net effects of contractual interest income and expected credit losses in a single measure of finance charge revenue, consistent with how we manage our business. The floating yield adjustment recognizes revenue on a level-yield basis based upon expected future net cash flows, with any changes in expected future net cash flows, which are recognized immediately under GAAP as provision for credit losses, recognized over the remaining forecast period (up to 120 months after the origination date of the underlying Consumer Loans) for each individual dealer loan and purchased loan. The floating yield adjustment does not accelerate revenue recognition. Rather, it reduces revenue by taking amounts that are reported under GAAP as provision for credit losses and instead treating them as reductions of revenue over time.

Under the GAAP methodology we employ, which is known as the current expected credit loss model, or CECL, we are required to recognize:

a significant provision for credit losses expense at the time of the loan’s assignment to us for contractual net cash flows we do not expect to realize; and
finance charge revenue in subsequent periods that is significantly in excess of our expected yield.

Due to the GAAP treatment of contractual net cash flows we do not expect to realize at the time of loan assignment (i.e. significant expense at the time of loan assignment, which is offset by higher revenue in subsequent periods), we do not believe the GAAP methodology we employ provides sufficient transparency into the economics of our business, including our results of operations, financial condition, and financial leverage. Our floating yield adjustment enables us to provide measures of income that are not impacted by GAAP’s treatment of contractual net cash flows we do not expect to realize at the time of loan assignment. We believe the floating yield adjustment is presented in a manner which reflects both the economic reality of our business and how the business is managed and provides valuable supplemental information to help investors better understand our business, executive compensation, liquidity, and capital resources.

Senior Notes Adjustment (applied in periods prior to December 31, 2023)

This non-GAAP adjustment modifies our GAAP financial results to treat the issuance of certain senior notes as a refinancing of certain previously issued senior notes. Our historical adjusted financial information reflects application of the senior notes adjustment as described below in connection with (i) the issuance by us in 2014 of $300.0 million principal amount of 6.125% senior notes due 2021 (the “2021 senior notes”) and the related retirement of our 9.125% senior notes due 2017 (the “2017 senior notes”) and (ii) the issuance by us in 2019 of $400.0 million principal amount of 5.125% senior notes due 2024 (the “2024 senior notes”) and the related retirement of the 2021 senior notes and our 7.375% senior notes due 2023 (the “2023 senior notes”).

We issued the 2024 senior notes on December 18, 2019. We used a portion of the net proceeds from the 2024 senior notes to repurchase or redeem all of the $300.0 million outstanding principal amount of the 2021 senior notes, of which $148.2 million was repurchased on December 18, 2019 and the remaining $151.8 million was redeemed on January 17, 2020. We used the remaining net proceeds from the 2024 senior notes, together with borrowings under our revolving credit facility, to redeem in full the $250.0 million outstanding principal amount of the 2023 senior notes on March 15, 2020. Under GAAP, the fourth quarter of 2019 included (i) a pre-tax loss on extinguishment of debt of $1.8 million related to the repurchase of 2021 senior notes in the fourth quarter of 2019 and the redemption of the remaining 2021 senior notes in the first quarter of 2020 and (ii) additional interest expense of $0.3 million on $160.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2024 senior notes and repurchase of 2021 senior notes in the fourth quarter of 2019 to the redemption of the remaining 2021 senior notes in the first quarter of 2020. Under GAAP, the first quarter of 2020 included (i) a pre-tax loss on extinguishment of debt of $7.4 million related to the redemption of 2023 senior notes in the first quarter of 2020 and (ii) additional interest expense of $0.4 million on $160.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2024 senior notes and repurchase of 2021 senior notes in the fourth quarter of 2019 to the redemption of the remaining 2021 senior notes in the first quarter of 2020.

We issued the 2021 senior notes on January 22, 2014. On February 21, 2014, we used the net proceeds from the 2021 senior notes, together with borrowings under our revolving credit facilities, to redeem in full the $350.0 million outstanding principal amount of the 2017 senior notes. Under GAAP, the first quarter of 2014 included (i) a pre-tax loss on extinguishment of debt of $21.8 million related to the redemption of the 2017 senior notes in the first quarter of 2014 and (ii) additional interest expense of $1.4 million on $276.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2021 senior notes to the redemption of the 2017 senior notes.

Under our non-GAAP approach, the loss on extinguishment of debt and additional interest expense that were recognized for GAAP purposes were in each case deferred as debt issuance costs to be recognized ratably as interest expense over the term of the newly issued notes. In addition, for adjusted average capital purposes, the impact of additional outstanding debt related to the lag from the issuance of the new notes to the redemption of the previously issued notes was in each case deferred to be recognized ratably over the term of the newly issued notes. Upon the issuance of the 2024 senior notes in the fourth quarter of 2019, the outstanding unamortized balances of the non-GAAP adjustments related to the 2021 senior notes were deferred and were recognized ratably over the term of the 2024 senior notes, until the repurchase and redemption of the 2024 senior notes in December 2023.

We believe the application of the senior notes adjustment as described above provides a more accurate reflection of the performance of our business, since we were recognizing the costs incurred with these transactions in a manner consistent with how we recognize the costs incurred when we periodically refinance our other debt facilities. We have determined not to apply the senior notes adjustment in connection with the issuance by us in December 2023 of our 9.250% senior notes due 2028 and the related retirement of the 2024 senior notes, because the adjustment would not be material.

Cautionary Statement Regarding Forward-Looking Information

We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements. Statements in this release that are not historical facts, such as those using terms like “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “assume,” “forecast,” “estimate,” “intend,” “plan,” “target,” or similar expressions, and those regarding our future results, plans, and objectives, are “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) on February 12, 2024, and other risk factors discussed herein or listed from time to time in our reports filed with the SEC and the following:

Industry, Operational, and Macroeconomic Risks

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

Capital and Liquidity Risks

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

Technology and Cybersecurity Risks

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

Legal and Regulatory Risks

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

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

Webcast Details

We will host a webcast on January 30, 2025 at 5:00 p.m. Eastern Time to discuss our fourth quarter and full year results. The webcast can be accessed live by visiting the “Investor Relations” section of our website at ir.creditacceptance.com or by telephone as described below. Only persons accessing the webcast by telephone will be able to pose questions to the presenters during the webcast. A replay and transcript of the webcast will be archived in the “Investor Relations” section of our website.

To participate in the webcast by telephone, you must pre-register at https://register.vevent.com/register/BIa9a65d89cd7e4a4192d3cecb8f0d2b67, or through the link posted on the “Investor Relations” section of our website at ir.creditacceptance.com. Upon registration you will be provided with the dial-in number and a unique PIN to access the webcast by telephone.

Description of Credit Acceptance Corporation

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

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

CREDIT ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

(Dollars in millions, except per share data)	For the Three Months Ended December 31,				For the Years Ended December 31,
		2024		2023		2024		2023
Revenue:
Finance charges	$	518.2	$	451.6	$	1,992.7	$	1,755.4
Premiums earned		24.8		21.6		96.1		79.6
Other income		22.9		18.4		73.6		66.9
Total revenue		565.9		491.6		2,162.4		1,901.9
Costs and expenses:
Salaries and wages		77.6		66.1		309.2		280.2
General and administrative		22.0		27.4		97.9		87.2
Sales and marketing		22.0		20.8		94.4		91.7
Total operating expenses		121.6		114.3		501.5		459.1

Provision for credit losses on forecast changes		62.9		94.3		493.8		413.7
Provision for credit losses on new Consumer Loan assignments		60.5		69.4		320.9		322.5
Total provision for credit losses		123.4		163.7		814.7		736.2

Interest		111.3		78.8		419.5		266.5
Provision for claims		17.7		16.6		73.5		70.7
Loss on sale of building		—		—		23.7		—
Loss on extinguishment of debt		—		1.8		—		1.8
Total costs and expenses		374.0		375.2		1,832.9		1,534.3
Income before provision for income taxes		191.9		116.4		329.5		367.6
Provision for income taxes		40.0		22.8		81.6		81.5
Net income	$	151.9	$	93.6	$	247.9	$	286.1

Net income per share:
Basic	$	12.39	$	7.33	$	20.12	$	22.09
Diluted	$	12.26	$	7.29	$	19.88	$	21.99

Weighted average shares outstanding:
Basic		12,256,198		12,775,616		12,323,261		12,953,424
Diluted		12,388,072		12,837,181		12,469,283		13,010,735

CREDIT ACCEPTANCE CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

(Dollars in millions, except per share data)	As of
	December 31, 2024		December 31, 2023
ASSETS:
Cash and cash equivalents	$	343.7	$	13.2
Restricted cash and cash equivalents		501.3		457.7
Restricted securities available for sale		106.4		93.2

Loans receivable		11,289.1		10,020.1
Allowance for credit losses		(3,438.8)		(3,064.8)
Loans receivable, net		7,850.3		6,955.3

Property and equipment, net		14.7		46.5
Income taxes receivable		4.2		4.3
Other assets		34.0		40.0
Total assets	$	8,854.6	$	7,610.2

LIABILITIES AND SHAREHOLDERS’ EQUITY:
Liabilities:
Accounts payable and accrued liabilities	$	315.8	$	318.8
Revolving secured lines of credit		0.1		79.2
Secured financing		5,361.5		3,990.9
Senior notes		991.3		989.0
Mortgage note		—		8.4
Deferred income taxes, net		319.1		389.2
Income taxes payable		117.2		81.0
Total liabilities		7,105.0		5,856.5

Shareholders’ Equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized, none issued		—		—
Common stock, $.01 par value, 80,000,000 shares authorized, 12,048,151 and 12,522,397 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively		0.1		0.1
Paid-in capital		335.1		279.0
Retained earnings		1,414.7		1,475.6
Accumulated other comprehensive loss		(0.3)		(1.0)
Total shareholders’ equity		1,749.6		1,753.7
Total liabilities and shareholders’ equity	$	8,854.6	$	7,610.2

The MIL Network –

January 31, 2025

MIL-OSI: Medallion Bank Reports 2024 Fourth Quarter and Full-Year Results and Declares Series F Preferred Stock Dividend

Source: GlobeNewswire (MIL-OSI)

SALT LAKE CITY, Jan. 30, 2025 (GLOBE NEWSWIRE) — Medallion Bank (Nasdaq: MBNKP, the “Bank”), an FDIC-insured bank specializing in consumer loans for the purchase of recreational vehicles, boats, and home improvements, as well as loan products and services offered through fintech strategic partners, today announced its results for the quarter and year ended December 31, 2024. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

2024 Fourth Quarter Highlights

Net income of $15.6 million, compared to $21.9 million in the prior year quarter.
Net interest income of $53.1 million, compared to $48.9 million in the prior year quarter.
Net interest margin of 8.28%, compared to 8.62% in the prior year quarter.
Total provision for credit losses was $20.5 million, compared to $9.7 million in the prior year quarter. Total provision for credit losses included $0.9 million of net taxi medallion recoveries, compared to $12.0 million of net taxi medallion recoveries in the prior year quarter.
Annualized net charge-offs were 3.28% of average loans outstanding, compared to 1.04% in the prior year quarter.
In December 2024, the Bank signed a letter of intent to sell up to $121 million of recreation loans at a premium to par value.

2024 Full-Year Highlights

Net income of $60.6 million, compared to net income of $79.9 million in 2023.
Net interest income of $204.7 million, compared to $188.9 million in 2023.
Net interest margin of 8.48%, compared to 8.84% in 2023.
Total provision for credit losses was $75.8 million, compared to $36.5 million in 2023. Total provision for credit losses included $4.9 million of net taxi medallion recoveries, compared to $18.1 million of net taxi medallion recoveries in 2023.
Total net charge-offs were 2.82% of average loans outstanding, compared to 1.52% in 2023.
Return on assets and return on equity were 2.52% and 16.62%, respectively, compared to 3.74% and 24.57% in 2023.
Total loan portfolio grew 13% to $2.4 billion.
Total assets were $2.5 billion, total capital was $382.4 million, and the Tier 1 leverage ratio was 15.68% as of December 31, 2024.

Donald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “We finished 2024 on a solid note, with quarterly earnings of $15.6 million and net interest income above $53 million. Volumes in our strategic partnership business tripled to $124 million from $40 million in the third quarter. As anticipated, recreation and home improvement loan volumes slowed with the winter season, and loan delinquency and net charge-offs rose in the quarter as is expected. With record recreation loan originations of more than $526 million in 2024, we initiated another loan sale — our fifth since 2016 — in preparation for the projected demand from our customers in 2025. We view loan sales as an efficient method to recycle capital that can also generate earnings when demand exceeds our capacity. Reclassifying these recreation loans as held for sale resulted in a release of $3.9 million in related allowance for credit losses. As we look ahead, our priorities remain constant: loan originations of predictable credit quality and managed growth that continues to deliver increasing net interest income while maintaining or growing our market position.”

Recreation Lending Segment

The Bank’s recreation loan portfolio grew 15% to $1.543 billion as of December 31, 2024, compared to $1.336 billion at December 31, 2023. Loan originations were $72.2 million in the fourth quarter 2024, compared to $62.7 million in the prior year quarter. For the year, loan originations were $526.6 million, compared to $447.0 million in 2023.
Net interest income was $39.4 million for the fourth quarter 2024, compared to $36.2 million in the prior year quarter. For the year, net interest income was $153.1 million, compared to $140.3 million in 2023.
Recreation loans were 65% of loans receivable as of December 31, 2024, compared to 64% at December 31, 2023.
Annualized net charge-offs were 4.35% of average recreation loans outstanding in the fourth quarter 2024, compared to 4.23% in the prior year quarter. For the year, total net charge-offs were 3.72% of average recreation loans outstanding, compared to 3.04% in 2023.
The provision for recreation credit losses was $17.7 million in the fourth quarter 2024, compared to $14.8 million in the prior year quarter. For the year, the provision for recreation credit losses was $68.0 million, compared to $44.6 million in 2023. The provisions for the three and twelve months ended December 31, 2024 included $3.9 million of allowance for credit losses released as $121 million of recreation loans were reclassified as held for sale.
The recreation allowance for credit losses was 5.00% of the outstanding balance as of December 31, 2024, compared to 4.31% of the outstanding balance as of December 31, 2023. The Bank does not record an allowance for loans held for sale, so the allowance as of December 31, 2024 relates only to the remaining recreation loans held for investment.

Home Improvement Lending Segment

The Bank’s home improvement loan portfolio grew 9% to $827.2 million as of December 31, 2024, compared to $760.6 million at December 31, 2023. Loan originations were $82.5 million in the fourth quarter 2024, compared to $66.0 million in the prior year quarter. For the year, loan originations were $298.7 million, compared to $357.4 million in 2023.
Net interest income was $13.1 million for the fourth quarter 2024, compared to $12.2 million in the prior year quarter. For the year, net interest income was $50.2 million, compared to $46.6 million in 2023.
Home improvement loans were 35% of loans receivable as of December 31, 2024, compared to 36% at December 31, 2023.
Annualized net charge-offs were 1.75% of average home improvement loans outstanding in the fourth quarter 2024, compared to 1.67% in the prior year quarter. For the year, total net charge-offs were 1.78% of average home improvement loans outstanding, compared to 1.33% in 2023.
The provision for home improvement credit losses was $4.4 million in the fourth quarter 2024, compared to $6.9 million in the prior year quarter. For the year, the provision for home improvement credit losses was $13.5 million, compared to $17.6 million in 2023.
The home improvement allowance for credit losses was 2.48% of the outstanding balance at December 31, 2024, compared to 2.76% of the outstanding balance at December 31, 2023.

Series F Preferred Stock Dividend

On January 23, 2025, the Bank’s Board of Directors declared a quarterly cash dividend of $0.50 per share on the Bank’s Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, which trades on the Nasdaq Capital Market under the ticker symbol “MBNKP.” The dividend is payable on April 1, 2025, to holders of record at the close of business on March 17, 2025.

About Medallion Bank

Medallion Bank specializes in providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners. The Bank works directly with thousands of dealers, contractors and financial service providers serving their customers throughout the United States. Medallion Bank is a Utah-chartered, FDIC-insured industrial bank headquartered in Salt Lake City and is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

For more information, visit www.medallionbank.com

Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, costs, sales (including loan sales), net investment income, earnings, returns and growth. These statements are often, but not always, made through the use of words or phrases such as “remains,” “anticipated,” “continue,” “may,” “maintain” or the negative versions of these words or other comparable words or phrases of a future or forward-looking nature. These statements may relate to our future earnings, returns, capital levels, sources of funding, growth prospects, asset quality and pursuit and execution of our strategy. Medallion Bank’s actual results may differ significantly from the results discussed in such forward-looking statements. For a description of certain risks to which Medallion Bank is or may be subject, please refer to the factors discussed under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” included in Medallion Bank’s Form 10-K for the year ended December 31, 2023, and in its Quarterly Reports on Form 10-Q, filed with the FDIC. Medallion Bank’s Form 10-K, Form 10-Qs and other FDIC filings are available in the Investor Relations section of Medallion Bank’s website. Medallion Bank’s financial results for any period are not necessarily indicative of Medallion Financial Corp.’s results for the same period.

Company Contact:
Investor Relations
212-328-2176
InvestorRelations@medallion.com

MEDALLION BANK STATEMENTS OF OPERATIONS (UNAUDITED)

	Three Months Ended December 31,				For the Years Ended December 31,
(In thousands)	2024		2023		2024		2023
Interest income
Loan interest including fees	$	71,577	$	61,668	$	268,914	$	231,496
Investments		1,564		1,585		6,306		5,171
Total interest income		73,141		63,253		275,220		236,667
Interest expense		20,039		14,401		70,509		47,785
Net interest income		53,102		48,852		204,711		188,882
Provision for credit losses		20,500		9,717		75,845		36,457
Net interest income after provision for credit losses		32,602		39,135		128,866		152,425
Other non-interest income		16		839		2,134		2,102
Non-interest expense
Salaries and benefits		5,014		4,997		19,985		19,001
Loan servicing		3,173		2,903		12,248		11,626
Collection costs		1,517		1,492		6,095		5,965
Regulatory fees		969		692		3,795		3,176
Professional fees		508		631		1,694		2,243
Information technology		329		281		1,186		1,031
Occupancy and equipment		541		206		1,167		830
Other		938		818		3,624		3,524
Total non-interest expense		12,989		12,020		49,794		47,396
Income before income taxes		19,629		27,954		81,206		107,131
Provision for income taxes		4,040		6,011		20,624		27,279
Net income	$	15,589	$	21,943	$	60,582	$	79,852
Less: Preferred stock dividends		1,512		1,512		6,047		6,047
Net income attributable to common shareholder	$	14,077	$	20,431	$	54,535	$	73,805

MEDALLION BANK
BALANCE SHEETS
(UNAUDITED)

(In thousands)	December 31, 2024			December 31, 2023
Assets
Cash and federal funds sold	$	126,196		$	110,043
Investment securities, available-for-sale		54,805			54,282
Loans held for sale, at the lower of amortized cost or fair value		128,226			—

Loan receivables, inclusive of net deferred loan acquisition cost and fees		2,249,613			2,100,338
Allowance for credit losses		(91,638	)		(79,283	)
Loans, net		2,157,975			2,021,055
Loan collateral in process of foreclosure		3,326			4,165
Fixed assets and right-of-use lease assets, net		9,126			8,140
Deferred tax assets		14,036			12,761
Accrued interest receivable		15,083			13,439
Other assets		40,326			38,171
Total assets	$	2,549,099		$	2,262,056
Liabilities and Shareholders’ Equity
Liabilities
Deposits and other funds borrowed	$	2,125,071		$	1,866,657
Accrued interest payable		5,586			4,029
Income tax payable		17,951			21,219
Other liabilities		17,204			17,509
Due to affiliates		910			849
Total liabilities		2,166,722			1,910,263
Shareholder’s Equity
Series E Preferred stock		26,303			26,303
Series F Preferred stock		42,485			42,485
Common stock		1,000			1,000
Additional paid in capital		77,500			77,500
Accumulated other comprehensive loss, net of tax		(4,480	)		(4,529	)
Retained earnings		239,569			209,034
Total shareholders’ equity		382,377			351,793
Total liabilities and shareholders’ equity	$	2,549,099		$	2,262,056

The MIL Network –

January 31, 2025

MIL-OSI: Diamondback Energy, Inc. Announces Drop Down Transaction

Source: GlobeNewswire (MIL-OSI)

MIDLAND, Texas, Jan. 30, 2025 (GLOBE NEWSWIRE) — Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) today announced that it has entered into a definitive purchase agreement with Viper Energy, Inc. (“Viper”), a subsidiary of Diamondback, to sell certain mineral and royalty interests from subsidiaries of Diamondback for $1 billion in cash and approximately 69.6 million units of Viper’s operating subsidiary (“OpCo”, and such units the “OpCo Units”) in a drop down transaction (“Drop Down”). The tax advantaged OpCo units, which will be issued together with an equal number of shares of Class B common stock of Viper, are exchangeable for shares of Class A common stock of Viper.

Based on the volume weighted average sales price of Viper’s common stock for the 30-trading day period ending on January 24, 2025 of $49.55, the transaction is valued at a total of $4.45 billion. Viper expects to fund the cash portion of this transaction through a combination of cash on hand, borrowings under Viper’s credit facility, and proceeds from one or more capital markets transactions, subject to market conditions and other factors.

“This Drop Down transaction with Viper is a major milestone in the continued synergy capture and execution of corporate development objectives related to the Endeavor transaction,” stated Travis Stice, Chairman and Chief Executive Officer of Diamondback. “Additionally, the Drop Down will accelerate debt reduction and increase Diamondback’s exposure to Viper’s differentiated growth profile and market-leading minerals position.”

Timing and Approvals

Diamondback expects the transaction to close in the second quarter of 2025, subject to the satisfaction of customary closing conditions and approval of the transaction by Viper’s stockholders.

Advisors

RBC Capital Markets is serving as financial advisor to Diamondback. Kirkland & Ellis LLP is acting as legal advisor to Diamondback.

Evercore is acting as financial advisor to the Audit Committee of Viper’s Board of Directors. Hunton Andrews Kurth LLP is acting as legal advisor to Viper’s Audit Committee.

About Diamondback

Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Diamondback’s: future performance; business strategy; future operations (including drilling plans and capital plans); estimates and projections of revenues, losses, costs, expenses, returns, cash flow, and financial position; reserve estimates and its ability to replace or increase reserves; anticipated benefits or other effects of strategic transactions (including the recently completed Endeavor merger, the Drop Down transaction and other acquisitions or divestitures); and plans and objectives of management (including plans for future cash flow from operations) are forward-looking statements. When used in this news release, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) as they relate to Diamondback are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Diamondback believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond Diamondback’s control. Accordingly, forward-looking statements are not guarantees of future performance and Diamondback’s actual outcomes could differ materially from what Diamondback has expressed in its forward-looking statements.

Factors that could cause the outcomes to differ materially include (but are not limited to) the following: changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities; the impact of public health crises, including epidemic or pandemic diseases and any related company or government policies or actions; actions taken by the members of OPEC and Russia affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments, including any impact of the ongoing war in Ukraine and the Israel-Hamas war on the global energy markets and geopolitical stability; instability in the financial markets; inflationary pressures; higher interest rates and their impact on the cost of capital; regional supply and demand factors, including delays, curtailment delays or interruptions of production, or governmental orders, rules or regulations that impose production limits; federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations; physical and transition risks relating to climate change; those risks described in Item 1A of Diamondback’s Annual Report on Form 10-K, filed with the SEC on February 22, 2024, and those risks disclosed in its subsequent filings on Forms 10-Q and 8-K, which can be obtained free of charge on the SEC’s website at http://www.sec.gov and Diamondback’s website at www.diamondbackenergy.com/investors.

In light of these factors, the events anticipated by Diamondback’s forward-looking statements may not occur at the time anticipated or at all. Moreover, Diamondback operates in a very competitive and rapidly changing environment and new risks emerge from time to time. Diamondback cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements. All forward-looking statements speak only as of the date of this letter or, if earlier, as of the date they were made. Diamondback does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.

Additional Information about the Drop Down and Where to Find It

In connection with the Drop Down, Viper expects to file relevant materials with the SEC including a proxy statement on Schedule 14A. Promptly after filing its definitive proxy statement with the SEC, Viper will mail the definitive proxy statement to each Viper stockholder entitled to vote at the special meeting relating to the Drop Down. This document is not a substitute for the proxy statement or for any other document that Viper may file with the SEC and send to its stockholders in connection with the Pending Drop Down. INVESTORS AND STOCKHOLDERS IN VIPER ARE URGED TO CAREFULLY READ THE VIPER PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO AND ANY DOCUMENTS INCORPORATED BY REFERENCE THEREIN) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE DROP DOWN THAT VIPER WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTION AND THE PARTIES TO THE TRANSACTION. The definitive proxy statement, the preliminary proxy statement, and other relevant materials in connection with the Drop Down (when they become available) and any other documents filed by Viper with the SEC, may be obtained free of charge at the SEC’s website www.sec.gov. Copies of the documents filed with the SEC by Viper will be available free of charge on Viper’s website at www.viperenergy.com/investors.

Participants in the Solicitation

Viper and its directors and executive officers, and Diamondback as its parent and major stockholder, may be deemed, under SEC rules, to be participants in the solicitation of proxies from Viper’s stockholders in connection with the Drop Down. Information about the directors and executive officers of Viper and, as applicable, about Diamondback, is set forth in (i) in Viper’s proxy statement for its 2024 annual meeting, including under the headings “Proposal 1—Election of Directors”, “Executive Officers”, “Compensation Discussion and Analysis”, “Compensation Tables”, “Stock Ownership” and “Certain Relationships and Related Transactions,” which was filed with the SEC on April 25, 2024 and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/1602065/000119312524113976/d796418ddef14a.htm, (ii) Viper’s Annual Report on Form 10-K for the year ended December 31, 2023, including under the headings “Item 10. Directors, Executive Officers and Corporate Governance”, “Item 11. Executive Compensation”, “Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters” and “Item 13. Certain Relationships and Related Transactions, and Director Independence”, which was filed with the SEC on February 22, 2024 and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/1602065/000160206524000010/vnom-20231231.htm and (iii) subsequent statements of changes in beneficial ownership on file with the SEC.

Additional information about Diamondback may be found in Diamondback’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 22, 2024, and subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed by Diamondback with the SEC. These documents may be obtained free of charge from the SEC’s website at www.sec.gov and Diamondback’s website at www.diamondbackenergy.com/investors.

Additional information regarding the participants in the proxy solicitation and a description of their direct or indirect interests, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials filed by Viper with the SEC when they become available. These documents may be obtained free of charge from the SEC’s website at www.sec.gov and Viper’s website at www.viperenergy.com/investors.

No Offer or Solicitation

This document does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Diamondback Investor Contact:

Adam Lawlis
+1 432.221.7467
alawlis@diamondbackenergy.com

The MIL Network –

January 31, 2025

	Month	Quarter	Annual	From post-COVID peak	From 2024 mini peak	From pre-COVID levels	Median value
Aotearoa New Zealand	-0.1%	-0.3%	-4.3%	-17.5%	-4.5%	16.3%	$803,819
Tāmaki Makaurau Auckland	-0.1%	-0.3%	-6.5%	-22.1%	-6.5%	8.5%	$1,069,140
Kirikiriroa Hamilton	0.5%	1.6%	-1.6%	-12.0%	-1.7%	20.0%	$748,944
Tauranga	0.1%	0.5%	-3.6%	-17.1%	-3.8%	21.1%	$904,920
Te-Whanganui-a-Tara Wellington*	-0.6%	-1.7%	-7.4%	-25.1%	-8.5%	4.8%	$790,007
Ōtautahi Christchurch	-0.1%	-0.1%	0.0%	-6.8%	-1.1%	41.0%	$661,721
Ōtepoti Dunedin	0.1%	0.1%	0.9%	-10.8%	-1.2%	11.1%	$611,677

	Month	Quarter	Annual	From post-COVID peak	From 2024 mini peak	From pre-COVID levels	Median value
Rodney	-0.5%	-1.8%	-7.0%	-21.5%	-7.1%	14.3%	$1,216,586
Te Raki Paewhenua North Shore	0.3%	0.8%	-3.6%	-18.0%	-3.6%	10.1%	$1,291,965
Waitakere	0.0%	0.7%	-5.1%	-23.8%	-5.1%	7.4%	$942,671
Auckland City	-0.1%	-0.8%	-8.1%	-23.1%	-8.1%	4.1%	$1,131,326
Manukau	0.0%	0.0%	-6.4%	-22.9%	-6.4%	12.1%	$1,014,115
Papakura	-0.4%	-0.9%	-7.2%	-23.4%	-7.5%	12.6%	$815,455
Franklin	-0.3%	-0.5%	-5.8%	-22.7%	-5.8%	16.3%	$900,200

Category: Economy

About Apple

Source: Straterra Inc