Enhanced partnership in trade and the digital and green transition were discussed during Nigerian Vice President’s visit to Sweden

MIL-OSI: Silicon Motion Announces Annual Cash Dividend Payable Quarterly

Source: GlobeNewswire (MIL-OSI)

TAIPEI, Taiwan and MILPITAS, Calif., Oct. 28, 2024 (GLOBE NEWSWIRE) — Silicon Motion Technology Corporation (NasdaqGS: SIMO)(“Silicon Motion” or the “Company”), a global leader in designing and marketing NAND flash controllers for solid state storage devices, announces today its annual cash dividend of $2.00 per ADS.

The Board of Directors of the Company has declared an annual dividend of $2.00 per ADS¹^,² which will be paid in four quarterly installments of $0.50 per ADS³ according to the following anticipated record and payment dates:

Record Date	Payment Date
November 14, 2024	November 27, 2024
February 13, 2025	February 27, 2025
May 8, 2025	May 22, 2025
August 7, 2025	August 21, 2025

The Company’s depository bank’s DR books will be closed for issuance and cancellation on each of the record dates.

“Silicon Motion’s business outlook and our ability to generate free cash flow remains strong. Our focus continues to be in distributing a meaningful portion of this to our shareholders as dividend,” said Wallace Kou, President and CEO of Silicon Motion.

The payment of the annual dividend to be paid in quarterly installments will be made according to the anticipated record and payment dates unless subsequently changed by the Board. The declaration and payment of future cash dividends is subject to the Board’s continuing determination that the payment of dividends is in the best interests of the Company’s shareholders and is in compliance with all laws and agreements of the Company applicable to the declaration and payment of cash dividends.

ABOUT SILICON MOTION:

We are the global leader in supplying NAND flash controllers for solid state storage devices. We supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications. We also supply customized high-performance hyperscale data center and specialized industrial and automotive SSD solutions. Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs. For further information on Silicon Motion, visit us at www.siliconmotion.com.

FORWARD-LOOKING STATEMENTS:

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to the unpredictable volume and timing of customer orders, which are not fixed by contract but vary on a purchase order basis; the loss of one or more key customers or the significant reduction, postponement, rescheduling or cancellation of orders from one or more customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; the impact of inflation on our business and customer’s businesses and any effect this has on economic activity in the markets in which we operate; the functionalities and performance of our information technology (“IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; the effects on our business and our customer’s business taking into account the ongoing U.S.-China tariffs and trade disputes; the uncertainties associated with any future global or regional pandemic; the continuing tensions between Taiwan and China including enhanced military activities; decreases in the overall average selling prices of our products; changes in the relative sales mix of our products; changes in our cost of finished goods; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; the payment, or non-payment, of cash dividends in the future at the discretion of our board of directors and any announced planned increases in such dividends; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in the products we sell given the current raw material supply shortages being experienced in our industry; our customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment charges that may be incurred related to businesses previously acquired or divested in the future; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2024. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this press release.

_________________

¹ One ADS is equivalent to four ordinary shares.
² $2.00 per ADS is equivalent to $0.50 per ordinary share.
³ $0.50 per ADS is equivalent to $0.125 per ordinary share.

The MIL Network –

January 25, 2025

MIL-OSI: Avid Capital Partners Unveils Comprehensive Financial Services Suite, Launches Disruptive Newsletter

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Oct. 28, 2024 (GLOBE NEWSWIRE) — Avid Capital Partners, an innovative financial services firm, today announced the launch of its comprehensive suite of services designed to level the playing field between retail, high-net-worth individuals, public and private companies, and institutional investors.

Avid Capital Partners brings together a proven combination of digital marketing prowess, strategic investment banking capabilities, and expert consulting services. The firm’s unique approach leverages its vast network and proven track record to identify and capitalize on under-the-radar investment opportunities.

Avid Capital Partners is not your typical Wall Street firm. Our team has consistently outperformed the market by identifying hidden gems before they hit the mainstream. Many of our early investments have generated 100% returns with some reaching many multiples higher.

Avid Capital Partners’ service offerings include:

Digital Marketing: With a network of over 20,000 followers across social media platforms, Avid Capital Partners can produce and distribute compelling, targeted content, precisely conveying company messaging to a wide audience of investors.
Strategic Partnerships: We maintain relationships with select investment banks and family offices, allowing us to facilitate introductions for companies seeking funding opportunities. Our role is to connect promising businesses with appropriate financial institutions while ensuring alignment of interests for all parties involved. We prioritize building long-term partnerships that create mutual value for all parties involved.
Consulting: Avid Capital Partners offers comprehensive advisory services for high-net-worth investors, public and private companies, and institutions. The firm’s expertise includes fundamental and technical analysis, portfolio management, and assessment of company holdings.

Avid Capital Partners recently launched their second newsletter, 6 Reasons This Tiny Biotech Could Surge Later This Month — Avid Capital Partners. The publication alerted investors to an opportunity that has now yielded a double in three weeks (+115% low to high).

At Avid Capital, our track record speaks volumes – we encourage you to review our performance and see the results for yourself.

About Avid Capital Partners

Avid Capital Partners is a forward-thinking financial services firm that combines innovative digital marketing, strategic investment banking, and expert consulting services. With a focus on identifying under-the-radar investment opportunities and fostering long-term relationships, Avid Capital Partners is committed to delivering exceptional value to its diverse clientele of high-net-worth individuals, public and private companies, and institutional investors.

For more information, please visit https://avidcapital.co

Contact us: Info@AvidCapital.co

The MIL Network –

January 25, 2025

MIL-OSI: Baker Hughes Awarded Contracts to Supply Petrobras with Flexible Pipe Systems, Associated Services across Several Fields

Source: GlobeNewswire (MIL-OSI)

Company to support projects in Brazil’s pre-salt fields, reinforcing position as a leading provider of flexible pipe for deepwater and high CO₂projects
Local manufacturing boost Brazilian economy, strengthen energy supply chain

HOUSTON and LONDON, Oct. 28, 2024 (GLOBE NEWSWIRE) — Baker Hughes (NASDAQ: BKR), an energy technology company, announced Monday significant contracts with Petrobras to provide 77 km of flexible pipe systems to be deployed in Brazil’s pre-salt fields. The agreement was signed Oct. 15, 2024, following an open tender.

The multi-year project includes risers and flowlines for hydrocarbon production and associated gas and water injection with support for equipment storage, maintenance and installation. Delivery is scheduled to begin in mid-2026, and the equipment will be utilized across Petrobras’ Búzios, Libra, Berbigão, Sururu and Sépia fields.

These systems will also address the critical issue of stress-induced corrosion cracking from CO₂ (SCC-CO2), which can affect flexible pipes in pre-salt fields with high concentrations of the gas. Baker Hughes’ flexible pipes have proven effective at mitigating this issue, which can arise as gas is reinjected into wells to reduce flaring and enhance oil recovery. Petrobras has committed to limiting CO₂ emissions to the atmosphere in their operations, and CO₂ storage is an important tool for producing lower-carbon barrels.

“Brazil’s Santos Basin contains incredible potential to help power Latin America into the future,” said Amerino Gatti, executive vice president, Oilfield Services & Equipment at Baker Hughes. “Operating in deep waters with high CO₂ concentrations presents unique challenges. Baker Hughes’ combination of industry-leading subsea technology and engineering, expertise in offshore operations, and extensive experience in the region will assist Petrobras to unlock and develop this potential, delivering these vital resources safely and efficiently.”

Baker Hughes has been deeply involved in the development of Brazil’s offshore oil and gas fields for decades, and its localization strategy contributes to the nation’s economy while strengthening its energy supply chain. The company’s plant in Niteroi, Brazil, where these systems will be manufactured, is a major supplier of flexible pipe systems for the industry and employs hundreds of people in the state of Rio de Janeiro.

The company has announced several agreements with Petrobras throughout 2024, including additional contracts for 69.1 km of flexible pipe systems and associated services in the third quarter. Other awards have included integrated well construction services in the Buzios field and integrated solutions for workover and plug and abandonment services across Petrobras’ pre-salt and post-salt fields.

About Baker Hughes
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.

For more information, please contact:

Media Relations

Brian Reynolds
+1 346-315-6663
brian.reynolds@bakerhughes.com

Investor Relations

Chase Mulvehill
+1 346-297-2561
investor.relations@bakerhughes.com

The MIL Network –

January 25, 2025

MIL-OSI: Franklin Electric Declares Quarterly Dividend of $0.25 Per Share

Source: GlobeNewswire (MIL-OSI)

FORT WAYNE, Ind., Oct. 28, 2024 (GLOBE NEWSWIRE) — Franklin Electric Co., Inc. (NASDAQ: FELE) announced today that its Board of Directors declared a quarterly cash dividend of $0.25 per share payable November 21, 2024, to shareholders of record on November 7, 2024.

About Franklin Electric
Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and energy. Recognized as a technical leader in its products and services, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications. Franklin Electric is proud to be named in Newsweek’s lists of America’s Most Responsible Companies and Most Trustworthy Companies for 2023 and America’s Climate Leaders 2023 by USA Today.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to market conditions or the Company’s financial results, costs, expenses or expense reductions, profit margins, inventory levels, foreign currency translation rates, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company’s business and industry, weather conditions, new housing starts, market demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases, raw material costs, technology factors, integration of acquisitions, litigation, government and regulatory actions, the Company’s accounting policies, future trends, epidemics and pandemics, and other risks which are detailed in the Company’s Securities and Exchange Commission filings, included in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2023, Exhibit 99.1 attached thereto and in Item 1A of Part II of the Company’s Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements.

The MIL Network –

January 25, 2025

MIL-OSI: FlexShopper Announces a Purchase Option for 91% of its Outstanding Series 2 Preferred Stock at a 50+% Discount to Liquidation Preference

Source: GlobeNewswire (MIL-OSI)

BOCA RATON, Fla., Oct. 28, 2024 (GLOBE NEWSWIRE) — FlexShopper, Inc. (Nasdaq: FPAY), (“the Company”), a leading online lease-to-own retailer and payment solutions provider, today announced that it has entered into a purchase option agreement with the majority holder of the Company’s Series 2 Preferred Stock (the “Preferred Stock”), in which FlexShopper has the option to redeem 91% of FlexShopper’s Preferred Stock at a 50+% discount to the second quarter of 2024 liquidation preference of approximately $43 million. The discount is based upon the date of repayment and the option to purchase lasts for a one-year period. In addition, further payments to the seller of the Preferred Stock may be required based upon the purchase price in a change of control in the next 12 months or patent settlement announcements in the next 24 months.

“We are excited to pursue options to redeem over 90% of our outstanding Series 2 Preferred Stock at a significant discount to its liquidation preference. We believe this opportunity will enhance shareholder value by improving our cost of capital, simplifying our capital structure and transferring $23 million of equity value to our common shareholders, representing approximately $1 per share. In addition, the redemption of our Series 2 Preferred Stock at a 50%+ discount will be highly accretive to earnings and will contribute approximately $4 million to annual operating income,” said Russ Heiser, CEO of FlexShopper.

Expected Benefits of the Redemption of FlexShopper’s Series 2 Preferred Stock owned by PIMCO:

Highly Accretive to Earnings. The Company expects to save approximately $4 million in annual payment-in-kind (PIK) dividends. As a result, FlexShopper expects the repurchase transaction to be highly accretive to net income to common and Preferred Series 1 shareholders once completed.

Material Discount in Liquidation Preference Price: As part of the agreement, FlexShopper has the option to repurchase its Series 2 Preferred Stock at a 50+% discount to its liquidation preference. The current liquidation preference, as of the end of the second quarter of 2024, is valued at approximately $43 million, with an option to purchase at approximately $20 million.

Increase in Common Equity Value: By redeeming 91% of the Preferred Stock, the approximately $23 million of savings would benefit common shareholders. The savings are equivalent to ~$1 per share in value, based on the Company’s share count at June 30, 2024.

Illustrative Non-GAAP Changes in FlexShopper’s Enterprise Value and Stock Price Based on 91% Redemption of FlexShopper’s Series 2 Preferred Stock

	Actual Valuation at June 30, 2024			Pro-forma Valuation at June 30, 2024			Expected change ($)			Expected change (%)
Common Equity	$	30,057,074	⁽¹⁾	$	52,917,027	⁽⁷⁾	$	22,859,953			76	%
Net Debt	$	132,086,383	⁽²⁾	$	132,086,383	⁽²⁾		–			–
Series 1 Preferred Stock	$	288,296	⁽³⁾	$	288,296	⁽³⁾		–			–
Series 2 Preferred Stock	$	47,301,212	⁽⁴⁾	$	24,441,259	⁽⁸⁾	$	(22,859,953	)		(48	)%
Total Enterprise Value	$	209,732,965	⁽⁵⁾	$	209,732,965	⁽⁵⁾		–			–
Share Price	$	1.28	⁽⁶⁾	$	2.25	⁽⁹⁾	$	0.97			76	%

(1)	Common Shares Equivalent^(1.1)times Actual Share Price at June 30, 2024.

(1.1)	Common shares outstanding at June 30, 2024 plus common shares increased using the Treasury Stock Method upon exercise of warrants, stock options and performance share units at June 30, 2024.

(2)	Short- and long-term loans minus cash at June 30, 2024.

(3)	Common shares upon conversion of Series 1 Preferred Stock at June 30, 2024 times Actual Share Price at June 30, 2024.

(4)	Series 2 Preferred Stock at liquidation preference at June 30, 2024 which includes the balance sheet amount and accrued dividends.

(5)	Actual Valuation at June 30, 2024 of Common Equity plus Actual Valuation at June 30, 2024 of Net Debt plus Actual Valuation at June 30, 2024 of Series 1 Preferred Stock plus Actual Valuation at June 30, 2024 of Series 2 Preferred Stock.

(6)	Share Price of Common Stock at June 30, 2024.

(7)	Actual Valuation at June 30, 2024 of Total Enterprise Value minus Pro-forma Valuation at June 30, 2024 of Series 2 Preferred Stock, minus Pro-forma Valuation at June 30, 2024 of Series 1 Preferred Stock, minus Pro-forma Valuation at June 30, 2024 of Net Debt.

(8)	Series 2 Preferred Stock, after the redemption of the Series 2 Preferred Stock owned by the majority holder, at liquidation preference at June 30, 2024 plus the current purchase price per the purchase option

(9)	Pro-forma Valuation at June 30, 2024 of Common Equity divided by Common Shares Equivalent (as defined in 1.1)

About FlexShopper

FlexShopper, Inc. is a leading national financial technology company that offers innovative payment options to consumers. FlexShopper provides a variety of flexible funding options for underserved consumers through its direct-to-consumer online marketplace at Flexshopper.com and in partnership with merchants both online and at brick-and-mortar locations. FlexShopper’s solutions are crafted to meet the needs of a wide range of consumer segments through lease-to-own and lending products.

Forward-Looking Statements

All statements in this release that are not based on historical fact are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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,” “will,” “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate,” or other comparable terms. Examples of forward-looking statements include, among others, statements we make regarding expectations of the redemption of over 90% of the Company’s outstanding Series 2 Preferred Stock, the expectation that the redemption of our Series 2 Preferred Stock would be highly accretive to earnings or would improve our company’s share price, lease originations, the expansion of our lease-to-own program; expectations concerning our partnerships with retail partners; investments in, and the success of, our underwriting technology and risk analytics platform; our ability to collect payments due from customers; expected future operating results and expectations concerning our business strategy. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including, among others, the following: our ability to obtain adequate financing to fund our business operations in the future; the failure to successfully manage and grow our FlexShopper.com e-commerce platform; our ability to maintain compliance with financial covenants under our credit agreement; our dependence on the success of our third-party retail partners and our continued relationships with them; our compliance with various federal, state and local laws and regulations, including those related to consumer protection; the failure to protect the integrity and security of customer and employee information; and the other risks and uncertainties described in the Risk Factors and in Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of our Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q. The forward-looking statements made in this release speak only as of the date of this release, and FlexShopper assumes no obligation to update any such forward-looking statements to reflect actual results or changes in expectations, except as otherwise required by law.

Contacts

For FlexShopper:
Investor Relations
ir@flexshopper.com

Investor and Media Contact:
Andrew Berger, Managing Director
SM Berger & Company, Inc.
Tel: (216) 464-6400
andrew@smberger.com

The MIL Network –

January 25, 2025

MIL-OSI: NEWTON GOLF Company Provides Preliminary Financial Results for Third Quarter of 2024

Source: GlobeNewswire (MIL-OSI)

CAMARILLO, CA, Oct. 28, 2024 (GLOBE NEWSWIRE) — NEWTON GOLF Company (Nasdaq: SPGC) (“NEWTON GOLF” or the “Company”), a technology-forward golf company with a growing portfolio of golf products, including putters, golf shafts, golf grips, and other golf-related accessories, reports preliminary financial results for the third quarter of 2024 (three months ended September 30, 2024) ahead of its quarterly filing.

Financial Highlights for Third Quarter 2024

Revenue of $1,150,000 – $1,250,000 in 3Q24, an increase of 1,163% at the midpoint of the range over $95,000 in 3Q23 and a sequential increase of 48% at the midpoint of the range over $813,000 in 2Q24.
Gross margin of 63-67% in 3Q24 was driven by increased volume in manufacturing and compares to 41% in 3Q23.
Announced a complete rebranding of the Company.
Launched the new Gravity Premium putter line with the introduction of five models.
Expanded the Company’s global presence with the launch of the Newton Motion shafts in Japan in 50 of its largest golf retail locations.
Closed on $732,000 of underwritten public offering of shares of common stock.
Increased the number of professionals using the Newton Motion Shafts on the PGA TOUR Champions to 34, generating greater exposure.
Executed successful digital campaigns.
Introduced the new advanced performance shafts for higher swing speeds.

NEWTON GOLF Company Executive Chairman Greg Campbell commented, “Our third quarter was marked by continued momentum in the sales of our Newton Motion replacement driver shafts and the first full quarter of revenue from our fairway woods replacement shafts. The continued traction we are seeing from professional golfers, highlighted by 34 Champions TOUR players now using the Newton Motion shafts, gives us confidence that our technology-forward approach to design is the proper cornerstone of our product development strategy. Additionally, a recent launch of our putter line that now carries the NEWTON GOLF Gravity brand can potentially add to our growth trajectory.”

This press release contains preliminary estimated financial results for the quarter ended September 30, 2024, and may change as a result of management’s continued review. The preliminary financial information included in this press release reflects the Company’s current estimates based on information available as of the date of this press release and has been prepared by Company management. This preliminary financial and operational information should not be viewed as a substitute for full financial statements and is not necessarily indicative of the results to be achieved for any future periods. This preliminary financial and operational information could be impacted by the effects of financial closing procedures, final adjustments, and other developments.

About NEWTON GOLF: A Sacks Parente Company

NEWTON GOLF: A Sacks Parente Company, is a technology-forward golf company that help golfers elevate their game. With a growing portfolio of golf products, including putters, golf shafts, golf grips, and other golf-related accessories, the Company’s innovative accomplishments include: the First Vernier Acuity putter, patented Ultra-Low Balance Point (ULBP) putter technology, weight-forward Center-of-Gravity (CG) design, and pioneering ultra-light carbon fiber putter shafts.

In consideration of its growth opportunities in golf shaft technologies, the Company expanded its manufacturing business in April of 2022 to develop the advanced Newton brand of premium golf shafts by opening a new shaft manufacturing facility in St. Joseph, MO. It is the Company’s intent to manufacture and assemble substantially all products in the United States, while also expanding into golf apparel and other golf-related product lines to enhance its growth.

The Company’s future expansions may include broadening its offerings through mergers, acquisitions or internal developments of product lines that are complementary to its premium brand. The Company currently sells its products through resellers, the Company’s websites, Club Champion retail stores, and distributors in the United States, Japan, and South Korea.

For more information, please visit the Company’s website at www.newtongolfco.com or on social media at @newtongolfco.com, @newtonshafts, or @gravityputters.

Investor Contact for NEWTON GOLF
CORE IR
516-222-2560
investors@sacksparente.com

The MIL Network –

January 25, 2025

MIL-OSI: Norwood Financial Corp Announces Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

Quarterly Highlights:

Net interest margin increased 19 basis points vs. the prior quarter and 7 basis points over the prior year.
Loans grew at an 8% annualized rate during the 3^rd quarter.
Capital continues to improve as the negative mark-to-market effect lessens 42% since last year.

HONESDALE, Pa., Oct. 28, 2024 (GLOBE NEWSWIRE) — Norwood Financial Corp (Nasdaq Global Market-NWFL) and its subsidiary, Wayne Bank, announced earnings for the three months ended September 30, 2024 of $3.8 million, which was $275 thousand lower than the same three-month period of last year. Net interest income was up by $892 thousand which was offset by increases in operating expense and the provision for credit losses. Earnings per share (fully diluted) were $0.48 in the three months ended September 30, 2024, compared to $0.51 in the same period of last year. The annualized return on average assets for the three months ended September 30, 2024, was 0.68%, while the annualized return on average tangible equity was 9.58%.

Net income for the nine months ended September 30, 2024, was $12.5 million, which is $3.9 million lower than the same nine-month period of 2023, due to a decrease in net interest income, an increase in the provision for credit losses, and an increase in operating expenses, partially offset by an increase in total other income. Earnings per share (fully diluted) for the nine months ended September 30, 2024, were $1.55, compared to $2.03 for the nine months ended September 30, 2023. The annualized return on average assets for the nine months ended September 30, 2024 was 0.75%. The annualized return on average tangible equity for the nine months ended September 30, 2024 was 10.82%.

Total assets as of September 30, 2024 were $2.280 billion, compared to $2.180 billion at September 30, 2023. At September 30, 2024, loans receivable were $1.675 billion, total deposits were $1.855 billion and stockholders’ equity was $195.7 million.

For the three months ended September 30, 2024, net interest income, on a fully-taxable equivalent basis (fte), totaled $16.1 million, an increase of $914 thousand compared to the same period in 2023. A $77.5 million increase in average interest-earning assets, generated an increase in interest income of $4.0 million. Interest expense increased $3.1 million mainly due to higher deposit balances and higher rates on those deposits. Net interest margin (fte) for the three months ended September 30, 2024 was 2.99%, compared to 2.92% in the same period of 2023. The tax-equivalent yield on interest-earning assets increased 58 basis points to 5.31% during the three months ended September 30, 2024, compared to the same prior year period, while the cost of interest-bearing liabilities increased 62 basis points to 3.09%.

Net interest income (fte) for the nine-months ended September 30, 2024 totaled $45.6 million, which was $1.2 million lower than the same period in 2023, due primarily to a $14.8 million increase in the cost of interest-bearing liabilities. The net interest margin (fte) was 2.87% for the nine-months ended September 30, 2024, as compared to 3.10% for the nine-months ended September 30, 2023.

Other income for the three months ended September 30, 2024, totaled $2.3 million, compared to $2.3 million for the same period in 2023. For the nine-months ended September 30, 2024, other income totaled $6.5 million, compared to $6.0 million for the nine-months ended September 30, 2023.

Other expenses totaled $12.0 million for the three months ended September 30, 2024, an increase of $755 thousand, compared to the $11.3 million for the same period of 2023. For the nine-months ended September 30, 2024, other expenses totaled $35.2 million, compared to $32.6 million for the same period in 2023, due primarily to an increase in salaries and benefits, professional fees, data processing costs and FDIC insurance.

Jim Donnelly President and CEO of Norwood Financial Corp and Wayne Bank, stated, “We are pleased to present our result of operations for the third quarter. Although strong loan growth caused an increase in our provision for credit losses we welcome the ongoing opportunity to serve our customers. Net interest margin (fte) for this quarter eclipsed the margin for last year, something that hasn’t happened since the Federal Reserve began raising interest rates. Our capital base remains above “Well-Capitalized” targets and we continue to show less impact from the market value of our bond portfolio. Additionally, our credit quality metrics remained strong during the third quarter, which we believe should benefit future performance. We appreciate the opportunity to serve our Wayne Bank customers and our customers at the Bank of the Finger Lakes and Bank of Cooperstown locations. We continue to look for opportunities available to us as we service our growing base of stockholders and customers.”

Norwood Financial Corp is the parent company of Wayne Bank, which operates from fourteen offices throughout Northeastern Pennsylvania and fifteen offices in 4 Delaware, Sullivan, Ontario, Otsego and Yates Counties, New York. The Company’s stock trades on the Nasdaq Global Market under the symbol “NWFL”.

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 contains safe harbor provisions regarding forward-looking statements. When used in this discussion, the words “believes”, “anticipates”, “contemplates”, “expects”, “bode”, “future performance” and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected. Those risks and uncertainties include, among other things, changes in federal and state laws, changes in interest rates, our ability to maintain strong credit quality metrics, our ability to have future performance, our ability to control core operating expenses and costs, demand for real estate, government fiscal and trade policies, cybersecurity and general economic conditions. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Non-GAAP Financial Measures

This release references net interest income on a fully taxable-equivalent basis (fte), which is a non-GAAP (Generally Accepted Accounting Principles) financial measure. Fully taxable-equivalent net interest income was derived from GAAP interest income and net interest income using an assumed tax rate of 21%. We believe the presentation of net interest income on a fully taxable-equivalent basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice.

The following table reconciles net interest income to net interest income on a fully taxable-equivalent basis:


(dollars in thousands)	Three months ended				Nine months ended
(dollars in thousands)	September 30				September 30
		2024		2023			2024		2023
Net Interest Income	$	15,931	$	15,039		$	45,566	$	46,774
Taxable equivalent basis adjustment using 21% marginal tax rate		207		185			601		554
Net interest income on a fully taxable equivalent basis	$	16,138	$	15,224		$	46,167	$	47,328

This release also references average tangible equity, which is also a non-GAAP financial measure. Average tangible equity is calculated by deducting average goodwill and other intangible assets from average stockholders’ equity. The Company believes that disclosure of tangible equity ratios enhances investor understanding of our financial position and improves the comparability of our financial data.

The following table reconciles average equity to average tangible equity:


	Three months ended				Nine months ended
(dollars in thousands)	September 30				September 30
		2024		2023		2024		2023
Average equity	$	189,135	$	175,224	$	183,593	$	174,943
Average goodwill and other intangibles		(29,440)		(29,514)		(29,457)		(29,536)
Average tangible equity	$	159,695	$	145,710	$	154,136	$	145,407

Contact: John M. McCaffery
Executive Vice President &
Chief Financial Officer
NORWOOD FINANCIAL CORP
272-304-3003
www.waynebank.com


NORWOOD FINANCIAL CORP Consolidated Balance Sheets (dollars in thousands, except share and per share data) (unaudited)
	September 30
		2024	2023
ASSETS
Cash and due from banks	$	47,072		$	41,141
Interest-bearing deposits with banks		35,808			13,005
Cash and cash equivalents		82,880			54,146

Securities available for sale		396,891			380,499
Loans receivable		1,675,139			1,611,069
Less: Allowance for credit losses		18,699			16,086
Net loans receivable		1,656,440			1,594,983
Regulatory stock, at cost		6,329			8,843
Bank premises and equipment, net		18,503			17,254
Bank owned life insurance		46,382			46,197
Foreclosed real estate owned		0			290
Accrued interest receivable		8,062			7,759
Deferred tax assets, net		18,818			25,610
Goodwill		29,266			29,266
Other intangible assets		167			240
Other assets		16,013			14,911
TOTAL ASSETS	$	2,279,751		$	2,179,998


LIABILITIES
Deposits:
Non-interest bearing demand	$	420,967		$	430,242
Interest-bearing		1,434,284			1,316,582
Total deposits		1,855,251			1,746,824
Short-term borrowings		52,453			103,881
Other borrowings		144,959			137,447
Accrued interest payable		12,688			8,605
Other liabilities		18,746			18,539
TOTAL LIABILITIES		2,084,097			2,015,296

STOCKHOLDERS’ EQUITY Preferred Stock, no par value per share, authorized 5,000,000 shares		–			–
Common Stock, $.10 par value per share,
authorized: 20,000,000 shares, issued: 2024: 8,311,851 shares, 2023: 8,291,401 shares		831			829
Surplus		98,330			97,449
Retained earnings		140,489			137,363
Treasury stock, at cost: 2024: 221,140 shares, 2023: 222,051 shares		(5,969	)		(5,957	)
Accumulated other comprehensive loss		(38,027	)		(64,982	)
TOTAL STOCKHOLDERS’ EQUITY		195,654			164,702
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,279,751		$	2,179,998


NORWOOD FINANCIAL CORP Consolidated Statements of Income (dollars in thousands, except per share data) (unaudited)
		Three Months Ended September 30,				Nine Months Ended September 30,
		2024	2023				2024		2023
INTEREST INCOME
Loans receivable, including fees	$	25,464		$	22,021	$	73,266	$	61,881
Securities		2,526			2,433		7,635		7,418
Other		497			54		2,194		156
Total Interest income		28,487			24,508		83,095		69,455

INTEREST EXPENSE
Deposits		10,553			7,017		31,349		17,119
Short-term borrowings		323			1,126		1,015		2,702
Other borrowings		1,680			1,326		5,165		2,860
Total Interest expense		12,556			9,469		37,529		22,681
NET INTEREST INCOME		15,931			15,039		45,566		46,774
PROVISION FOR CREDIT LOSSES		1,345		$	882	$	1,069	$	(568	)
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		14,586			14,157		44,497		47,342

OTHER INCOME
Service charges and fees		1,517			1,527		4,364		4,192
Income from fiduciary activities		256			246		719		688
Net realized (losses) gains on sales of securities		–			–		–		(209	)
Gains on sales of loans, net		103			18		145		27
Gains on sales of foreclosed real estate owned		–			13		32		13
Earnings and proceeds on life insurance policies		261			328		781		770
Other		158			174		467		520
Total other income		2,295			2,306		6,508		6,001

OTHER EXPENSES
Salaries and employee benefits		6,239			6,083		18,328		17,893
Occupancy, furniture and equipment		1,269			1,242		3,758		3,818
Data processing and related operations		1,162			876		3,208		2,465
Taxes, other than income		179			167		452		490
Professional fees		576			524		1,669		1,132
FDIC Insurance assessment		339			254		1,009		699
Foreclosed real estate		9			9		45		112
Amortization of intangibles		16			20		54		66
Other		2,242			2,101		6,683		5,974
Total other expenses		12,031			11,276		35,206		32,649

INCOME BEFORE TAX		4,850			5,187		15,799		20,694
INCOME TAX EXPENSE		1,006			1,068		3,308		4,289
NET INCOME	$	3,844		$	4,119	$	12,491	$	16,405

Basic earnings per share	$	0.48		$	0.51	$	1.55	$	2.03

Diluted earnings per share	$	0.48		$	0.51	$	1.55	$	2.03


NORWOOD FINANCIAL CORP Financial Highlights (Unaudited) (dollars in thousands, except per share data)
For the Three Months Ended September 30		2024			2023
Net interest income	$	15,931		$	15,039
Net income		3,844			4,119

Net interest spread (fully taxable equivalent)		2.23	%		2.26	%
Net interest margin (fully taxable equivalent)		2.99	%		2.92	%
Return on average assets		0.68	%		0.76	%
Return on average equity		8.09	%		9.33	%
Return on average tangible equity		9.58	%		11.22	%
Basic earnings per share	$	0.48		$	0.51
Diluted earnings per share	$	0.48		$	0.51

For the Nine Months Ended September 30		2024			2023
Net interest income	$	45,566		$	46,774
Net income		12,491			16,405

Net interest spread (fully taxable equivalent)		2.12	%		2.56	%
Net interest margin (fully taxable equivalent)		2.87	%		3.10	%
Return on average assets		0.75	%		1.04	%
Return on average equity		9.09	%		12.54	%
Return on average tangible equity		10.82	%		15.08	%
Basic earnings per share	$	1.55		$	2.03
Diluted earnings per share	$	1.55		$	2.03

As of September 30		2024			2023
Total assets	$	2,279,751		$	2,179,998
Total loans receivable		1,675,139			1,611,069
Allowance for credit losses		18,699			16,086
Total deposits		1,855,251			1,746,824
Stockholders’ equity		195,654			164,702
Trust assets under management		209,857			185,913

Book value per share	$	24.92		$	21.15
Tangible book value per share	$	21.28		$	17.49
Equity to total assets		8.58	%		7.56	%
Allowance to total loans receivable		1.12	%		1.00	%
Nonperforming loans to total loans		0.47	%		0.65	%
Nonperforming assets to total assets		0.35	%		0.50	%


NORWOOD FINANCIAL CORP Consolidated Balance Sheets (unaudited) (dollars in thousands)
	September 30 2024		June 30 2024		March 31 2024		December 31 2023		September 30 2023
ASSETS
Cash and due from banks	$	47,072	$	29,903	$	19,519	$	28,533	$	41,141
Interest-bearing deposits with banks		35,808		39,492		92,444		37,587		13,005
Cash and cash equivalents		82,880		69,395		111,963		66,120		54,146

Securities available for sale		396,891		397,578		398,374		406,259		380,499
Loans receivable		1,675,139		1,641,356		1,621,448		1,603,618		1,611,069
Less: Allowance for credit losses		18,699		17,807		18,020		18,968		16,086
Net loans receivable		1,656,440		1,623,549		1,603,428		1,584,650		1,594,983
Regulatory stock, at cost		6,329		6,443		6,545		7,318		8,843
Bank owned life insurance		46,382		46,121		45,869		46,439		46,197
Bank premises and equipment, net		18,503		18,264		18,057		17,838		17,254
Foreclosed real estate owned		0		0		97		97		290
Goodwill and other intangibles		29,433		29,449		29,468		29,487		29,506
Other assets		42,893		44,517		46,622		42,871		48,280
TOTAL ASSETS	$	2,279,751	$	2,235,316	$	2,260,423	$	2,201,079	$	2,179,998

LIABILITIES
Deposits
Non-interest bearing demand	$	420,967	$	391,849	$	383,362	$	399,545	$	430,242
Interest-bearing deposits		1,434,284		1,419,323		1,455,636		1,395,614		1,316,582
Total deposits		1,855,251		1,811,172		1,838,998		1,795,159		1,746,824
Borrowings		197,412		210,422		211,234		198,312		241,328
Other liabilities		31,434		31,534		28,978		26,538		27,144
TOTAL LIABILITIES		2,084,097		2,053,128		2,079,210		2,020,009		2,015,296

STOCKHOLDERS’ EQUITY		195,654		182,188		181,213		181,070		164,702

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,279,751	$	2,235,316	$	2,260,423	$	2,201,079	$	2,179,998


NORWOOD FINANCIAL CORP Consolidated Statements of Income (unaudited) (dollars in thousands, except per share data)

		September 30 2024		June 30 2024				March 31 2024			December 31 2023			September 30 2023
Three months ended		September 30 2024		June 30 2024				March 31 2024			December 31 2023			September 30 2023
INTEREST INCOME
Loans receivable, including fees	$	25,464		$	24,121		$	23,681		$	23,328		$	22,021
Securities		2,526			2,584			2,526			2,504			2,433
Other		497			966			731			253			54
Total interest income		28,487			27,671			26,938			26,085			24,508

INTEREST EXPENSE
Deposits		10,553			10,687			10,110			8,910			7,017
Borrowings		2,003			2,059			2,118			1,882			2,452
Total interest expense		12,556			12,746			12,228			10,792			9,469
NET INTEREST INCOME		15,931			14,925			14,710			15,293			15,039
(RELEASE OF) PROVISION FOR CREDIT LOSSES		1,345			347			(624	)		6,116			882
NET INTEREST INCOME AFTER (RELEASE OF) PROVISION FOR CREDIT LOSSES
		14,586			14,578			15,334			9,177			14,157

OTHER INCOME
Service charges and fees		1,517			1,504			1,343			1,421			1,527
Income from fiduciary activities		256			225			238			210			246
Net realized (losses) gains on sales of securities		–			–			–			–			–
Gains on sales of loans, net		103			36			6			36			18
Gains on sales of foreclosed real estate owned		–			32			–			66			13
Earnings and proceeds on life insurance policies		261			253			268			242			328
Other		158			157			151			148			174
Total other income		2,295			2,207			2,006			2,123			2,306

OTHER EXPENSES
Salaries and employee benefits		6,239			5,954			6,135			5,672			6,083
Occupancy, furniture and equipment, net		1,269			1,229			1,261			1,265			1,242
Foreclosed real estate		9			15			21			17			9
FDIC insurance assessment		339			309			361			287			254
Other		4,175			3,937			3,954			3,608			3,688
Total other expenses		12,031			11,444			11,732			10,849			11,276

INCOME BEFORE TAX		4,850			5,341			5,608			451			5,187
INCOME TAX EXPENSE		1,006			1,128			1,175			96			1,068
NET INCOME	$	3,844		$	4,213		$	4,433		$	355		$	4,119

Basic earnings per share	$	0.48		$	0.52		$	0.55		$	0.04		$	0.51

Diluted earnings per share	$	0.48		$	0.52		$	0.55		$	0.04		$	0.51

Book Value per share	$	24.92		$	23.26		$	23.01		$	22.99		$	21.15
Tangible Book Value per share		21.28			19.62			19.38			19.36			17.49

Return on average assets (annualized)		0.68	%		0.75	%		0.80	%		0.06	%		0.76	%
Return on average equity (annualized)		8.09	%		9.41	%		9.79	%		0.84	%		9.33	%
Return on average tangible equity (annualized)		9.58	%		11.26	%		11.68	%		1.01	%		11.22	%

Net interest spread (fte)		2.23	%		2.05	%		2.07	%		2.24	%		2.28	%
Net interest margin (fte)		2.99	%		2.79	%		2.79	%		2.95	%		2.94	%

Allowance for credit losses to total loans		1.12	%		1.08	%		1.11	%		1.18	%		1.00	%
Net charge-offs to average loans (annualized)		0.08	%		0.13	%		0.08	%		0.79	%		0.59	%
Nonperforming loans to total loans		0.47	%		0.47	%		0.23	%		0.48	%		0.65	%
Nonperforming assets to total assets		0.35	%		0.34	%		0.17	%		0.35	%		0.50	%

NORWOOD FINANCIAL CORP NET INTEREST MARGIN ANALYSIS (dollars in thousands)
	For the Quarter Ended
	September 30, 2024							For the Quarter Ended June 30, 2024								September 30, 2023
	Average Balance (2)			Interest (1)			Average Rate (3)	Average Balance (2)				Interest (1)			Average Rate (3)	Average Balance (2)				Interest (1)			Average Rate (3)
Assets
Interest-earning assets:
Interest-bearing deposits with banks	$	36,221		$	497		5.46	%	$	69,173		$	967		5.62	%	$	3,675		$	54		5.83	%
Securities available for sale:
Taxable		392,168			2,161		2.19			401,014			2,206		2.21			406,962			2,052		2.00
Tax-exempt (1)		67,563			461		2.71			69,126			477		2.78			70,219			483		2.73
Total securities available for sale (1)		459,731			2,622		2.27			470,140			2,683		2.30			477,181			2,535		2.11
Loans receivable (1) (4) (5)		1,651,921			25,575		6.16			1,629,283			24,220		5.98			1,589,474			22,104		5.52
Total interest-earning assets		2,147,873			28,694		5.31			2,168,596			27,870		5.17			2,070,330			24,693		4.73
Non-interest earning assets:
Cash and due from banks		28,193								26,422								27,910
Allowance for credit losses		(17,944	)							(18,023	)							(17,262	)
Other assets		78,344								69,718								65,863
Total non-interest earning assets		88,593								78,117								76,511
Total Assets	$	2,236,466							$	2,246,713							$	2,146,841
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:

Interest-bearing demand and money market	$	461,897		$	2,782		2.40		$	450,918		$	2,397		2.14		$	439,255		$	1,647		1.49
Savings		221,366			13		0.02			233,676			286		0.49			238,493			77		0.13
Time		734,235			7,758		4.20			755,224			8,004		4.26			611,607			5,293		3.43
Total interest-bearing deposits		1,417,498			10,553		2.96			1,439,818			10,687		2.99			1,289,355			7,017		2.16
Short-term borrowings		53,622			323		2.40			61,689			356		2.32			116,470			1,126		3.84
Other borrowings		146,357			1,680		4.57			149,442			1,703		4.58			116,700			1,326		4.51
Total interest-bearing liabilities		1,617,477			12,556		3.09			1,650,949			12,746		3.11			1,522,525			9,469		2.47
Non-interest bearing liabilities:
Demand deposits		400,314								387,962								425,216
Other liabilities		29,540								28,308								23,876
Total non-interest bearing liabilities		429,854								416,270								449,092
Stockholders’ equity		189,135								179,494								175,224
Total Liabilities and Stockholders’ Equity	$	2,236,466							$	2,246,713							$	2,146,841
Net interest income/spread (tax equivalent basis)					16,138		2.23	%					15,124		2.06	%					15,224		2.26	%
Tax-equivalent basis adjustment					(207	)							(199	)							(185	)
Net interest income				$	15,931							$	14,925							$	15,039
Net interest margin (tax equivalent basis)							2.99	%							2.80	%							2.92	%

(1) Interest and yields are presented on a tax-equivalent basis using a marginal tax rate of 21%.
(2) Average balances have been calculated based on daily balances.
(3) Annualized
(4) Loan balances include non-accrual loans and are net of unearned income.
(5) Loan yields include the effect of amortization of deferred fees, net of costs.

The MIL Network –

January 25, 2025

MIL-OSI: VERB Regains Nasdaq Listing Compliance

Source: GlobeNewswire (MIL-OSI)

LOS ALAMITOS, Calif. and LAS VEGAS, Oct. 28, 2024 (GLOBE NEWSWIRE) — Verb Technology Company, Inc. (Nasdaq: VERB) (“VERB” or the “Company”), the company behind MARKET.live, a leading livestream social shopping platform, and GO FUND YOURSELF!, a TV show and innovative new platform disrupting the crowd funding industry, today announced that on October 23, 2024, the Company received a letter from the Nasdaq Stock Market stating that the Company had regained compliance with the minimum bid price requirement of $1.00 per share for continued listing on the Nasdaq Stock Market, as set forth in Nasdaq Listing Rule 5550(a)(2).

Separately, the Company today announces that it has begun an investigation of apparent price manipulation in the trading of its shares following the Company’s announcement of a stockholder approved reverse stock split.

On October 4, 2024, the Company announced that its stockholders had voted to authorize its Board to implement a 1-for-200 reverse stock split in order to retain the Company’s Nasdaq listing and that the shares would begin trading on a split-adjusted basis on October 9, 2024.

Prior to the foregoing announcement, the Company estimates that there were approximately 40,000 beneficial owners of the Company’s stock. Assuming every single shareholder was entitled to a round-up share, which is highly unlikely, that would mean the Company would issue 40,000 shares to address any stockholders left with a fractional share following the reverse split. However, post-split, certain recently identified brokerage firms and clearing houses have requested roundup shares totaling more than 260,000 shares of the Company’s common stock – notwithstanding the fact that the Company’s total public float immediately post-split was less than 800,000.

Not coincidentally, the Company became aware of a significant increase in short positions in its stock at or around the same time – and around the same number of round-up shares as those requested by these brokerages and clearing houses.

And VERB is not the only company who has been subject to this same apparent manipulation. The Company knows of at least two other companies who are experiencing the same thing. The Company’s management is in communication with leadership at other affected companies and is seeking to coordinate efforts while actively pursuing the engagement of securities fraud counsel to investigate the facts, determine if there has been illicit activity affecting the Company, and if so, moving aggressively to hold those responsible accountable through swift private legal action as well as through the intervention of securities regulators.

“Do not underestimate our resolve to protect our company and our stockholders,” stated Rory J. Cutaia, VERB Chairman & CEO. “For those of you waiting to receive your 260,000 round-up shares, here’s some advice, don’t hold your breath.”

About VERB Technology Company
Verb Technology Company, Inc. (NASDAQ: VERB), is the innovative force behind interactive video-based social commerce. The Company’s MARKET.live platform is a multi-vendor, livestream social shopping destination at the forefront of the convergence of ecommerce and entertainment, where brands, retailers, creators, and influencers engage their customers, clients, fans, and followers across multiple social media channels simultaneously. GO FUND YOURSELF!, is a revolutionary interactive social crowd funding platform for public and private companies seeking broad-based exposure across social media channels for their crowd-funded Regulation CF and Regulation A offerings. The platform combines a ground-breaking interactive TV show with MARKET.live’s back-end capabilities allowing viewers to tap on their screen to facilitate an investment, in real time, as they watch companies presenting before the show’s panel of “Titans”. Presenting companies that sell consumer products are able to offer their products directly to viewers during the show in real time through shoppable onscreen icons. The Company is headquartered in Las Vegas, NV and operates full-service production and creator studios in Los Alamitos, California and Philadelphia, PA.

FORWARD-LOOKING STATEMENTS
This communication contains “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties and include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance, or achievements. 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, those identified in our filings with the Securities and Exchange Commission (the “SEC”), including our annual, quarterly and current reports filed with the SEC and the risk factors included in our annual report on Form 10-K filed with the SEC on April 1, 2024. Any forward-looking statement made by us herein is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement whether as a result of new information, future developments or otherwise.

Investor Relations:
investors@verb.tech

The MIL Network –

January 25, 2025

MIL-OSI: Citizens Community Bancorp, Inc. Reports Third Quarter 2024 Earnings of $0.32 Per Share; Nine Month 2024 Earnings of $1.07 Per Share

Source: GlobeNewswire (MIL-OSI)

EAU CLAIRE, Wis., Oct. 28, 2024 (GLOBE NEWSWIRE) — Citizens Community Bancorp, Inc. (the “Company”) (Nasdaq: CZWI), the parent company of Citizens Community Federal N.A. (the “Bank” or “CCFBank”), today reported earnings of $3.3 million and earnings per diluted share of $0.32 for the third quarter ended September 30, 2024, compared to $3.7 million and earnings per diluted share of $0.35 for the quarter ended June 30, 2024, and $2.5 million and $0.24 earnings per diluted share for the quarter ended September 30, 2023, respectively.

The Company’s third quarter 2024 operating results reflected the following changes from the second quarter of 2024: (1) no loan forbearance interest income in the third quarter compared to $0.2 million in the second quarter; (2) a $1.1 million decrease in negative provision for credit losses to $0.4 million in the third quarter; and (3) higher non-interest income of $1.0 million due to $0.5 million higher gain on sale of loans and $0.6 million lower net losses on sale of equity securities in the third quarter of 2024.

Book value per share improved to $17.88 at September 30, 2024, compared to $17.10 at June 30, 2024, and $15.80 at September 30, 2023. Tangible book value per share (non-GAAP)¹ was $14.64 at September 30, 2024, compared to $13.91 at June 30, 2024, and a 16.1% increase from $12.61 at September 30, 2023. For the third quarter of 2024, tangible book value was positively influenced by net income, net unrealized gains on the available for sale securities portfolio and intangible amortization. Stockholders’ equity as a percentage of total assets was 10.01% at September 30, 2024, compared to 9.77% at June 30, 2024. Tangible common equity (“TCE”) as a percent of tangible assets (non-GAAP)¹ was 8.35% at September 30, 2024, compared to 8.09% at June 30, 2024, with the changes above impacted favorably by asset shrinkage.

“We continued to execute on our strategic objectives during the third quarter that further strengthened franchise value. The quarter reflected our balance sheet optimization efforts, which increased tangible common equity levels and allowed for the continued repurchase of shares at prices that were accretive to tangible book value per share and earnings per share. The TCE ratio increased to 8.35%, from 8.09% in the prior quarter, which included the impact of repurchasing 223 thousand shares. Deposits, net of the decrease in brokered deposits, increased $31 million. While credit metrics were impacted by an increase in nonperforming loans, the increase largely reflected one lending relationship. Meanwhile, we continue to maintain a healthy reserve for credit losses to total loans at 1.47%,” stated Stephen Bianchi, Chairman, President, and Chief Executive Officer.

September 30, 2024, Highlights:

Quarterly earnings were $3.3 million, or $0.32 per diluted share for the quarter ended September 30, 2024, a decrease from the quarter ended June 30, 2024, earnings of $3.7 million, or $0.35 per diluted share, and an increase from the quarter ended September 30, 2023, earnings of $2.5 million, or $0.24 per diluted share.
Net interest income decreased $0.3 million for the current quarter ended September 30, 2024, from $11.6 million for the quarter ended June 30, 2024, and decreased from $12.1 million for the quarter ended September 30, 2023. The decrease in net interest income from the second quarter of 2024 was primarily due to lower non-recurring interest income of $0.2 million recognized in the second quarter from curing technical defaults on performing loans.
The net interest margin was 2.63% for the quarter ended September 30, 2024, compared to 2.72% for the previous quarter, and 2.79% for the quarter ended September 30, 2023. The net interest margin declined nine basis points in the third quarter, of which five basis points were due to no interest income recognition from curing technical defaults.
In the third quarter ended September 30, 2024, a negative provision for credit losses of $0.4 million was recorded compared to a negative provision for credit losses of $1.525 million in the quarter ended June 30, 2024, and a negative provision for credit losses of $0.30 million for the quarter ended September 30, 2023. The third quarter’s negative provision was due to decreases in on-balance sheet allowance for credit losses (“ACL”) of $0.1 million and a $0.3 million decrease in off-balance sheet ACL due to a reduction in unfunded loan commitments.
Non-interest income increased $1.0 million in the third quarter of 2024, due to $0.5 million of higher gain on sale of loans and $0.6 million of lower net losses on equity securities and was $0.4 million higher compared to the third quarter of 2023, due to higher gain on sale of loans.
Non-interest expense increased $122 thousand to $10.4 million from $10.3 million for the previous quarter and increased $452 thousand from $10.0 million one year earlier.
Gross loans decreased by $3.9 million during the third quarter ended September 30, 2024, to $1.43 billion, compared to June 30, 2024.
Total deposits increased $1.1 million, more than offsetting the $30.1 million decrease in brokered deposits during the quarter ended September 30, 2024, to $1.52 billion, compared to June 30, 2024.
Federal Home Loan Bank advances decreased $10.5 million to $21.0 million at September 30, 2024, from $31.5 million at June 30, 2024.
The effective tax rate was 21.48% for the quarter ended September 30, 2024, compared to 22.1% for the quarter ended June 30, 2024, and 50.5% for the quarter ended September 30, 2023. The change in tax rate from 2023 is largely due to the Wisconsin state legislation in the third quarter of 2023, eliminating the Company’s state income tax in Wisconsin.
Nonperforming assets increased to $17.1 million at September 30, 2024, compared to $10.3 million at June 30, 2024. The increase was largely due to one agricultural real estate loan relationship in forestry services that moved from special mention to substandard and was placed on nonaccrual in the third quarter.
Common stock totaling 223 thousand shares were repurchased in the third quarter of 2024 at an average price of $12.91 per share.
The efficiency ratio was 72% for the quarters ended September 30, 2024 and June 30, 2024.

Balance Sheet and Asset Quality

Total assets decreased by $3.2 million during the quarter to $1.80 billion at September 30, 2024.

Securities available for sale (“AFS”) increased $3.0 million during the quarter ended September 30, 2024, to $149.4 million from $146.4 million at June 30, 2024. The increase was due to: (1) pre-tax unrealized gains of $4.6 million; and (2) a purchase of $2.9 million of agency MBS to support the Bank’s CRA program partially offset by principal repayments of $4.5 million.

Securities held to maturity (“HTM”) decreased $1.6 million to $87.0 million during the quarter ended September 30, 2024, from $88.6 million at June 30, 2024, due to principal repayments.

The on-balance sheet liquidity ratio, which is defined as the fair market value of AFS and HTM securities that are not pledged and cash on deposit with other financial institutions, was 11.46% of total assets at September 30, 2024, compared to 11.48% at June 30, 2024. On-balance sheet liquidity, collateralized new borrowing capacity and uncommitted federal funds borrowing availability was $718 million, or 269%, of uninsured and uncollateralized deposits at September 30, 2024, and $714 million, or 289%, at June 30, 2024.

Gross loans decreased by $3.9 million during the third quarter ended September 30, 2024, due to loan payoffs exceeding origination activity and construction loan fundings.

The office loan portfolio totaled $31.0 million at quarter end and consists of 71 loans. There was one criticized loan in this portfolio during the quarter ended September 30, 2024, totaling $0.2 million and there have been no charge-offs in the trailing twelve months.

The allowance for credit losses on loans decreased by $0.2 million to $21.0 million at September 30, 2024, representing 1.47% of total loans receivable compared to 1.48% of total loans receivable at June 30, 2024. For the quarter ended September 30, 2024, the Bank recorded negative provision of $0.4 million which included a negative provision on ACL for loans of $0.1 million and a negative provision of $0.3 million on ACL for unfunded commitments.

Allowance for Credit Losses (“ACL”) – Loans Percentage

(in thousands, except ratios)

	September 30, 2024			June 30, 2024			December 31, 2023			September 30, 2023
Loans, end of period	$	1,424,828		$	1,428,588		$	1,460,792		$	1,447,529
Allowance for credit losses – Loans	$	21,000		$	21,178		$	22,908		$	22,973
ACL – Loans as a percentage of loans, end of period		1.47	%		1.48	%		1.57	%		1.59	%

In addition to the ACL – Loans, the Company has established an ACL – Unfunded Commitments of $0.460 million at September 30, 2024, $0.712 million at June 30, 2024, and $1.571 million at September 30, 2023, classified in other liabilities on the consolidated balance sheets.

Allowance for Credit Losses – Unfunded Commitments:
(in thousands)

	September 30, 2024 and Three Months Ended			September 30, 2023 and Three Months Ended		September 30, 2024 and Nine Months Ended			September 30, 2023 and Nine Months Ended
ACL – Unfunded commitments – beginning of period	$	712		$	1,544	$	1,250		$	—
Cumulative effect of ASU 2016-13 adoption		—			—		—			1,537
(Reductions) additions to ACL – Unfunded commitments via provision for credit losses charged to operations		(252	)		27		(790	)		34
ACL – Unfunded commitments – end of period	$	460		$	1,571	$	460		$	1,571

Special mention loans increased by $2.2 million to $11.0 million at September 30, 2024, compared to $8.8 million at June 30, 2024. The increase is largely due to one loan of $8.7 million, which is secured by a multi-family unit. The addition of the multi-family unit to special mention was partially offset by the movement of a $7.7 million agricultural real estate loan relationship in forestry services that moved to substandard and was placed on nonaccrual.

Substandard loans increased by $6.8 million to $21.2 million at September 30, 2024, compared to $14.4 million at June 30, 2024, due to the addition of the forestry services loan relationship noted above.

Nonperforming assets increased to $17.1 million at September 30, 2024, compared to $10.3 million at June 30, 2024 largely due to the previously mentioned forestry services loan relationship.

	(in thousands)
	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Special mention loan balances	$	11,047	$	8,848	$	13,737	$	18,392	$	20,043
Substandard loan balances		21,202		14,420		14,733		19,596		16,171
Criticized loans, end of period	$	32,249	$	23,268	$	28,470	$	37,988	$	36,214

Total deposits increased $1.1 million during the quarter ended September 30, 2024, to $1.52 billion. Consumer deposits increased $22.1 million, including an increase in CDs of $17.9 million. Commercial deposits increased by $20.0 million. Brokered deposits decreased $30.1 million as the company decreased brokered MMDAs by $24.6 million and $5.5 million in brokered CDs matured and were not replaced. Public deposits decreased $10.9 million, largely due to expected seasonal outflows.

Deposit Portfolio Composition
(in thousands)

	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Consumer deposits	$	844,808	$	822,665	$	827,290	$	814,899	$	794,970
Commercial deposits		432,361		412,385		414,088		423,762		429,358
Public deposits		176,844		187,698		202,175		182,172		163,734
Brokered deposits		66,654		96,796		83,936		98,259		85,173
Total deposits	$	1,520,667	$	1,519,544	$	1,527,489	$	1,519,092	$	1,473,235

Deposit Composition
(in thousands)

	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Non-interest-bearing demand deposits	$	256,840	$	255,703	$	248,537	$	265,704	$	275,790
Interest-bearing demand deposits		346,971		353,477		361,278		343,276		336,962
Savings accounts		169,096		170,946		177,595		176,548		183,702
Money market accounts		366,067		370,164		387,879		374,055		312,689
Certificate accounts		381,693		369,254		352,200		359,509		364,092
Total deposits	$	1,520,667	$	1,519,544		1,527,489	$	1,519,092	$	1,473,235

At September 30, 2024, the deposit portfolio composition was 56% consumer, 28% commercial, 12% public, and 4% brokered deposits compared to 54% consumer, 27% commercial, 12% public, and 7% brokered deposits at June 30, 2024.

Uninsured and uncollateralized deposits were $267.1 million, or 18% of total deposits, at September 30, 2024, and $246.7 million, or 16% of total deposits, at June 30, 2024. Uninsured deposits alone at September 30, 2024, were $413.6 million, or 27% of total deposits, and $401.6 million, or 26% of total deposits at June 30, 2024.

Federal Home Loan Bank advances decreased $10.5 million to $21.0 million at September 30, 2024, from $31.5 million one quarter earlier.

Common stock totaling 223 thousand shares were repurchased in the third quarter of 2024 at an average price of $12.91 per share. For the nine-month period ended September 30, 2024, 382 thousand shares of common stock were repurchased at an average price of $12.32 per share. There are 333 thousand shares remaining under the July 2024 Board of Director repurchase authorization plan.

Review of Operations

Net interest income decreased $0.3 million for the current quarter ended September 30, 2024, from $11.6 million for the quarter ended June 30, 2024, and decreased from $12.1 million for the quarter ended September 30, 2023. The decrease in net interest income from the second quarter of 2024 was primarily due to lower non-recurring interest income of $0.2 million recognized from curing technical defaults on performing loans during the prior quarter. The net interest margin declined nine basis points in the third quarter, of which five basis points were due to no interest income recognition from curing technical defaults.

Net interest income and net interest margin analysis:
(in thousands, except yields and rates)

	Three months ended
	September 30, 2024					June 30, 2024					March 31, 2024					December 31, 2023					September 30, 2023
	Net Interest Income			Net Interest Margin		Net Interest Income			Net Interest Margin		Net Interest Income			Net Interest Margin		Net Interest Income			Net Interest Margin		Net Interest Income			Net Interest Margin
As reported	$	11,285		2.63	%	$	11,576		2.72	%	$	11,905		2.77	%	$	11,747		2.69	%	$	12,121		2.79	%
Less accretion for PCD loans		(45	)	(0.01	)%		(62	)	(0.01	)%		(75	)	(0.02	)%		(37	)	(0.01	)%		(39	)	(0.01	)%
Less scheduled accretion interest		(33	)	(0.01	)%		(32	)	(0.01	)%		(33	)	(0.01	)%		(33	)	(0.01	)%		(77	)	(0.02	)%
Without loan purchase accretion	$	11,207		2.61	%	$	11,482		2.70	%	$	11,797		2.74	%	$	11,677		2.67	%	$	12,005		2.76	%

Non-interest income increased $1.0 million in the third quarter of 2024, due to $0.5 million of higher gain on sale of loans and $0.6 million of lower net losses on equity securities. Non-interest income was $0.4 million higher compared to the third quarter of 2023 due to higher gain on sale of loans.

Non-interest expense increased $122 thousand to $10.4 million in the third quarter of 2024 from $10.3 million for the previous quarter and increased $452 thousand from $10.0 million one year earlier. The increase in the current quarter relative to the second quarter was primarily related to one-time data processing costs, modest REO losses and higher quarterly marketing spending, partially offset by $0.2 million in branch closure costs in the second quarter.

Provision for income taxes decreased to $0.9 million in the third quarter of 2024 from $1.0 million in the second quarter of 2024 largely due to lower pre-tax income. The effective tax rate was 21.48% for the quarter ended September 30, 2024, 22.1% for the quarter ended June 30, 2024, and 50.5% for the quarter ended September 30, 2023. The change in tax rate from 2023 is largely due to the Wisconsin state legislation in the third quarter of 2023, eliminating the Company’s state income tax in Wisconsin.

These financial results are preliminary until Form 10-Q is filed in November 2024.

About the Company

Citizens Community Bancorp, Inc. (NASDAQ: “CZWI”) is the holding company of the Bank, a national bank based in Altoona, Wisconsin, currently serving customers primarily in Wisconsin and Minnesota through 22 branch locations. Its primary markets include the Chippewa Valley Region in Wisconsin, the Twin Cities and Mankato markets in Minnesota, and various rural communities around these areas. The Bank offers traditional community banking services to businesses, ag operators and consumers, including residential mortgage loans.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this release are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified using forward-looking words or phrases such as “anticipate,” “believe,” “could,” “expect,” “estimates,” “intend,” “may,” “on pace,” “preliminary,” “planned,” “potential,” “should,” “will,” “would” or the negative of those terms or other words of similar meaning. Such forward-looking statements in this release are inherently subject to many uncertainties arising in the operations and business environment of the Company and the Bank. These uncertainties include: conditions in the financial markets and economic conditions generally; the impact of inflation on our business and our customers; geopolitical tensions, including current or anticipated impact of military conflicts; higher lending risks associated with our commercial and agricultural banking activities; future pandemics (including new variants of COVID-19); cybersecurity risks; adverse impacts on the regional banking industry and the business environment in which it operates; interest rate risk; lending risk; changes in the fair value or ratings downgrades of our securities; the sufficiency of allowance for credit losses; competitive pressures among depository and other financial institutions; disintermediation risk; our ability to maintain our reputation; our ability to maintain or increase our market share; our ability to realize the benefits of net deferred tax assets; our inability to obtain needed liquidity; our ability to raise capital needed to fund growth or meet regulatory requirements; our ability to attract and retain key personnel; our ability to keep pace with technological change; prevalence of fraud and other financial crimes; the possibility that our internal controls and procedures could fail or be circumvented; our ability to successfully execute our acquisition growth strategy; risks posed by acquisitions and other expansion opportunities, including difficulties and delays in integrating the acquired business operations or fully realizing the cost savings and other benefits; restrictions on our ability to pay dividends; the potential volatility of our stock price; accounting standards for credit losses; legislative or regulatory changes or actions, or significant litigation, adversely affecting the Company or Bank; public company reporting obligations; changes in federal or state tax laws; and changes in accounting principles, policies or guidelines and their impact on financial performance. Stockholders, potential investors, and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Such uncertainties and other risks that may affect the Company’s performance are discussed further in Part I, Item 1A, “Risk Factors,” in the Company’s Form 10-K, for the year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”) on March 5, 2024 and the Company’s subsequent filings with the SEC. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this news release or to update them to reflect events or circumstances occurring after the date of this release.

¹Non-GAAP Financial Measures

This press release contains non-GAAP financial measures, such as net income as adjusted, net income as adjusted per share, tangible book value, tangible book value per share, tangible common equity as a percent of tangible assets and return on average tangible common equity, which management believes may be helpful in understanding the Company’s results of operations or financial position and comparing results over different periods.

Net income as adjusted and net income as adjusted per share are non-GAAP measures that eliminate the impact of certain expenses such as branch closure costs and related severance pay, accelerated depreciation expense and lease termination fees, and the gain on sale of branch deposits and fixed assets. Tangible book value, tangible book value per share, tangible common equity as a percentage of tangible assets and return on average tangible common equity are non-GAAP measures that eliminate the impact of goodwill and intangible assets on our financial position. Management believes these measures are useful in assessing the strength of our financial position.

Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other banks and financial institutions.

Contact: Steve Bianchi, CEO
(715)-836-9994

(CZWI-ER)


CITIZENS COMMUNITY BANCORP, INC.
Consolidated Balance Sheets
(in thousands, except shares and per share data)

	September 30, 2024 (unaudited)			June 30, 2024 (unaudited)			December 31, 2023 (audited)			September 30, 2023 (unaudited)
Assets
Cash and cash equivalents	$	36,632		$	36,886		$	37,138		$	32,532
Securities available for sale “AFS”		149,432			146,438			155,743			153,414
Securities held to maturity “HTM”		87,033			88,605			91,229			92,336
Equity investments		5,096			5,023			3,284			2,433
Other investments		12,311			13,878			15,725			15,109
Loans receivable		1,424,828			1,428,588			1,460,792			1,447,529
Allowance for credit losses		(21,000	)		(21,178	)		(22,908	)		(22,973	)
Loans receivable, net		1,403,828			1,407,410			1,437,884			1,424,556
Loans held for sale		697			275			5,773			2,737
Mortgage servicing rights, net		3,696			3,731			3,865			3,944
Office properties and equipment, net		17,365			17,774			18,373			19,465
Accrued interest receivable		6,235			6,289			5,409			5,936
Intangible assets		1,158			1,336			1,694			1,873
Goodwill		31,498			31,498			31,498			31,498
Foreclosed and repossessed assets, net		1,572			1,662			1,795			1,046
Bank owned life insurance (“BOLI”)		25,901			25,708			25,647			25,467
Other assets		16,683			15,794			16,334			18,741
TOTAL ASSETS	$	1,799,137		$	1,802,307		$	1,851,391		$	1,831,087
Liabilities and Stockholders’ Equity
Liabilities:
Deposits	$	1,520,667		$	1,519,544		$	1,519,092		$	1,473,235
Federal Home Loan Bank (“FHLB”) advances		21,000			31,500			79,530			114,530
Other borrowings		61,548			61,498			67,465			67,407
Other liabilities		15,773			13,720			11,970			10,513
Total liabilities		1,618,988			1,626,262			1,678,057			1,665,685
Stockholders’ equity:
Common stock— $0.01 par value, authorized 30,000,000; 10,074,136, 10,297,341, 10,440,591, and 10,468,091 shares issued and outstanding, respectively		101			103			104			105
Additional paid-in capital		115,455			117,838			119,441			119,612
Retained earnings		78,438			75,501			71,117			67,424
Accumulated other comprehensive loss		(13,845	)		(17,397	)		(17,328	)		(21,739	)
Total stockholders’ equity		180,149			176,045			173,334			165,402
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,799,137		$	1,802,307		$	1,851,391		$	1,831,087

Note: Certain items previously reported were reclassified for consistency with the current presentation.

CITIZENS COMMUNITY BANCORP, INC.
Consolidated Statements of Operations
(in thousands, except per share data)

	Three Months Ended									Nine Months Ended
	September 30, 2024 (unaudited)			June 30, 2024 (unaudited)			September 30, 2023 (unaudited)			September 30, 2024 (unaudited)			September 30, 2023 (unaudited)
Interest and dividend income:
Interest and fees on loans	$	20,115		$	19,921		$	19,083		$	60,204		$	54,169
Interest on investments		2,397			2,542			2,689			7,450			8,053
Total interest and dividend income		22,512			22,463			21,772			67,654			62,222
Interest expense:
Interest on deposits		10,165			9,338			7,388			28,712			17,898
Interest on FHLB borrowed funds		128			576			1,210			1,216			4,595
Interest on other borrowed funds		934			973			1,053			2,960			3,127
Total interest expense		11,227			10,887			9,651			32,888			25,620
Net interest income before provision for credit losses		11,285			11,576			12,121			34,766			36,602
(Negative) provision for credit losses		(400	)		(1,525	)		(325	)		(2,725	)		175
Net interest income after provision for credit losses		11,685			13,101			12,446			37,491			36,427
Non-interest income:
Service charges on deposit accounts		513			490			491			1,474			1,464
Interchange income		577			579			601			1,697			1,743
Loan servicing income		643			526			611			1,751			1,679
Gain on sale of loans		752			226			299			1,998			1,501
Loan fees and service charges		165			309			140			704			308
Net realized gains on debt securities		—			—			—			—			12
Net (losses) gains on equity securities		(78	)		(658	)		116			(569	)		170
Bank Owned Life Insurance (BOLI) death benefit		—			184			—			184			—
Other		349			257			307			859			893
Total non-interest income		2,921			1,913			2,565			8,098			7,770
Non-interest expense:
Compensation and related benefits		5,743			5,675			5,293			16,901			15,967
Occupancy		1,242			1,333			1,335			3,942			4,117
Data processing		1,665			1,525			1,536			4,787			4,440
Amortization of intangible assets		178			179			179			536			576
Mortgage servicing rights expense, net		163			116			150			427			456
Advertising, marketing and public relations		225			186			185			575			472
FDIC premium assessment		201			200			204			606			608
Professional services		336			347			342			1,249			1,153
Losses (gains) on repossessed assets, net		65			(18	)		100			47			62
Other		603			756			645			2,427			2,085
Total non-interest expense		10,421			10,299			9,969			31,497			29,936
Income before provision for income taxes		4,185			4,715			5,042			14,092			14,261
Provision for income taxes		899			1,040			2,544			3,043			4,895
Net income attributable to common stockholders	$	3,286		$	3,675		$	2,498		$	11,049		$	9,366
Per share information:
Basic earnings	$	0.32		$	0.35		$	0.24		$	1.07		$	0.89
Diluted earnings	$	0.32		$	0.35		$	0.24		$	1.07		$	0.89
Cash dividends paid	$	—		$	—		$	—		$	0.32		$	0.29
Book value per share at end of period	$	17.88		$	17.10		$	15.80		$	17.88		$	15.80
Tangible book value per share at end of period (non-GAAP)	$	14.64		$	13.91		$	12.61		$	14.64		$	12.61

Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)

(in thousands, except per share data)

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

GAAP pretax income	$	4,185	$	4,715	$	5,042	$	14,092	$	14,261
Branch closure costs (1)		—		168		—		168		—
Pretax income as adjusted (2)	$	4,185	$	4,883	$	5,042	$	14,260	$	14,261
Provision for income tax on net income as adjusted (3)		899		1,077		2,544		3,079		4,895
Net income as adjusted (non-GAAP) (2)	$	3,286	$	3,806	$	2,498	$	11,181	$	9,366
GAAP diluted earnings per share, net of tax	$	0.32	$	0.35	$	0.24	$	1.07	$	0.89
Branch closure costs, net of tax		—		0.01		—		0.01		—
Diluted earnings per share, as adjusted, net of tax (non-GAAP)	$	0.32	$	0.36	$	0.24	$	1.08	$	0.89

Average diluted shares outstanding		10,204,195		10,373,089		10,470,098		10,339,802		10,474,685

(1) Branch closure costs include severance pay recorded in compensation and benefits and depreciation and right of use lease asset accelerated expense included in other non-interest expense in the consolidated statement of operations.
(2) Pretax income as adjusted and net income as adjusted are non-GAAP measures that management believes enhances the market’s ability to assess the underlying business performance and trends related to core business activities.
(3) Provision for income tax on net income as adjusted is calculated at our effective tax rate for each respective period presented.

Loan Composition

(in thousands)

	September 30, 2024			June 30, 2024			December 31, 2023			September 30, 2023
Total Loans:
Commercial/Agricultural real estate:
Commercial real estate	$	730,459		$	729,236		$	750,531		$	750,282
Agricultural real estate		76,043			78,248			83,350			84,558
Multi-family real estate		239,191			234,758			228,095			219,193
Construction and land development		87,875			87,898			110,941			109,799
C&I/Agricultural operating:
Commercial and industrial		119,619			127,386			121,666			121,033
Agricultural operating		27,550			27,409			25,691			24,552
Residential mortgage:
Residential mortgage		134,944			133,503			129,021			125,939
Purchased HELOC loans		2,932			2,915			2,880			2,881
Consumer installment:
Originated indirect paper		4,405			5,110			6,535			7,175
Other consumer		5,438			5,860			6,187			6,440
Gross loans	$	1,428,456		$	1,432,323		$	1,464,897		$	1,451,852
Unearned net deferred fees and costs and loans in process		(2,703	)		(2,733	)		(2,900	)		(3,048	)
Unamortized discount on acquired loans		(925	)		(1,002	)		(1,205	)		(1,275	)
Total loans receivable	$	1,424,828		$	1,428,588		$	1,460,792		$	1,447,529

Nonperforming Assets
Loan Balances at Amortized Cost

(in thousands, except ratios)

	September 30, 2024			June 30, 2024			December 31, 2023			September 30, 2023
Nonperforming assets:
Nonaccrual loans
Commercial real estate	$	4,778		$	5,350		$	10,359		$	10,570
Agricultural real estate		6,193			382			391			469
Construction and land development		106			—			54			94
Commercial and industrial (“C&I”)		1,956			422			—			—
Agricultural operating		901			1,017			1,180			1,373
Residential mortgage		1,088			1,145			1,167			923
Consumer installment		20			36			33			27
Total nonaccrual loans	$	15,042		$	8,352		$	13,184		$	13,456
Accruing loans past due 90 days or more		530			256			389			971
Total nonperforming loans (“NPLs”) at amortized cost		15,572			8,608			13,573			14,427
Foreclosed and repossessed assets, net		1,572			1,662			1,795			1,046
Total nonperforming assets (“NPAs”)	$	17,144		$	10,270		$	15,368		$	15,473
Loans, end of period	$	1,424,828		$	1,428,588		$	1,460,792		$	1,447,529
Total assets, end of period	$	1,799,137		$	1,802,307		$	1,851,391		$	1,831,087
Ratios:
NPLs to total loans		1.09	%		0.60	%		0.93	%		1.00	%
NPAs to total assets		0.95	%		0.57	%		0.83	%		0.85	%

Average Balances, Interest Yields and Rates

(in thousands, except yields and rates)

	Three Months Ended September 30, 2024						Three Months Ended June 30, 2024						Three Months Ended September 30, 2023
	Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate
Average interest earning assets:
Cash and cash equivalents	$	25,187	$	360	5.69	%	$	18,894	$	272	5.79	%	$	21,298	$	302	5.63	%
Loans receivable		1,429,928		20,115	5.60	%		1,439,535		19,921	5.57	%		1,435,284		19,083	5.27	%
Investment securities		236,960		1,966	3.30	%		238,147		2,012	3.40	%		252,226		2,119	3.33	%
Other investments		12,553		71	2.25	%		13,051		258	7.95	%		15,511		268	6.85	%
Total interest earning assets	$	1,704,628	$	22,512	5.25	%	$	1,709,627	$	22,463	5.28	%	$	1,724,319	$	21,772	5.01	%
Average interest-bearing liabilities:
Savings accounts	$	170,777	$	450	1.05	%		174,259	$	429	0.99	%	$	199,279	$	328	0.65	%
Demand deposits		357,201		2,152	2.40	%		354,850	$	2,023	2.29	%		354,073		1,863	2.09	%
Money market accounts		381,369		3,126	3.26	%		377,346	$	2,958	3.15	%		298,098		1,889	2.51	%
CD’s		379,722		4,437	4.65	%		352,323	$	3,928	4.48	%		358,238		3,308	3.66	%
Total deposits	$	1,289,069	$	10,165	3.14	%	$	1,258,778	$	9,338	2.98	%	$	1,209,688	$	7,388	2.42	%
FHLB advances and other borrowings		80,338		1,062	5.26	%		121,967	$	1,549	5.11	%		182,967		2,263	4.91	%
Total interest-bearing liabilities	$	1,369,407	$	11,227	3.26	%	$	1,380,745	$	10,887	3.17	%	$	1,392,655	$	9,651	2.75	%
Net interest income			$	11,285					$	11,576					$	12,121
Interest rate spread					1.99	%					2.11	%					2.26	%
Net interest margin					2.63	%					2.72	%					2.79	%
Average interest earning assets to average interest-bearing liabilities					1.24						1.24						1.24

	Nine Months Ended September 30, 2024						Nine Months Ended September 30, 2023
	Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate
Average interest earning assets:
Cash and cash equivalents	$	19,073	$	823	5.76	%	$	19,066	$	768	5.39	%
Loans receivable		1,441,972		60,204	5.58	%		1,420,423		54,169	5.10	%
Interest bearing deposits		—		—	—	%		84		1	1.59	%
Investment securities		240,054		6,038	3.36	%		261,507		6,505	3.33	%
Other investments		12,983		589	6.06	%		16,447		779	6.33	%
Total interest earning assets	$	1,714,082	$	67,654	5.27	%	$	1,717,527	$	62,222	4.84	%
Average interest-bearing liabilities:
Savings accounts	$	173,946	$	1,300	1.00	%	$	208,446	$	1,103	0.71	%
Demand deposits		355,356		6,192	2.33	%		370,235		5,047	1.82	%
Money market accounts		378,740		9,005	3.18	%		298,957		4,759	2.13	%
CD’s		364,131		12,215	4.48	%		300,279		6,989	3.11	%
Total deposits	$	1,272,173	$	28,712	3.01	%	$	1,177,917	$	17,898	2.03	%
FHLB advances and other borrowings		108,897		4,176	5.12	%		214,034		7,722	4.82	%
Total interest-bearing liabilities	$	1,381,070	$	32,888	3.18	%	$	1,391,951	$	25,620	2.46	%
Net interest income			$	34,766					$	36,602
Interest rate spread					2.09	%					2.38	%
Net interest margin					2.71	%					2.85	%
Average interest earning assets to average interest bearing liabilities					1.24						1.23

Key Financial Metric Ratios:

	Three Months Ended						Nine Months Ended
	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Ratios based on net income:
Return on average assets (annualized)	0.72	%	0.81	%	0.54	%	0.81	%	0.68	%
Return on average equity (annualized)	7.34	%	8.52	%	5.97	%	8.46	%	7.59	%
Return on average tangible common equity⁴ (annualized)	9.38	%	10.92	%	7.74	%	10.78	%	9.91	%
Efficiency ratio	72	%	72	%	67	%	71	%	66	%
Net interest margin with loan purchase accretion	2.63	%	2.72	%	2.79	%	2.71	%	2.85	%
Net interest margin without loan purchase accretion	2.61	%	2.70	%	2.76	%	2.69	%	2.82	%
Ratios based on net income as adjusted (non-GAAP)
Return on average assets as adjusted² (annualized)	0.72	%	0.84	%	0.54	%	0.82	%	0.68	%
Return on average equity as adjusted³ (annualized)	7.34	%	8.82	%	5.97	%	8.56	%	7.59	%

Reconciliation of Return on Average Assets

(in thousands, except ratios)

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

GAAP earnings after income taxes	$	3,286		$	3,675		$	2,498		$	11,049		$	9,366
Net income as adjusted after income taxes (non-GAAP) (1)	$	3,286		$	3,806		$	2,498		$	11,181		$	9,366
Average assets	$	1,810,826		$	1,815,693		$	1,836,775		$	1,822,106		$	1,832,832
Return on average assets (annualized)		0.72	%		0.81	%		0.54	%		0.81	%		0.68	%
Return on average assets as adjusted (non-GAAP) (annualized)		0.72	%		0.84	%		0.54	%		0.82	%		0.68	%

(1) See Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)

Reconciliation of Return on Average Equity

(in thousands, except ratios)

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
GAAP earnings after income taxes	$	3,286		$	3,675		$	2,498		$	11,049		$	9,366
Net income as adjusted after income taxes (non-GAAP) (1)	$	3,286		$	3,806		$	2,498		$	11,181		$	9,366
Average equity	$	178,050		$	173,462		$	166,131		$	174,436		$	165,075
Return on average equity (annualized)		7.34	%		8.52	%		5.97	%		8.46	%		7.59	%
Return on average equity as adjusted (non-GAAP) (annualized)		7.34	%		8.82	%		5.97	%		8.56	%		7.59	%

(1) See Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)

Reconciliation of Efficiency Ratio

(in thousands, except ratios)

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Non-interest expense (GAAP)	$	10,421		$	10,299		$	9,969		$	31,497		$	29,936
Less amortization of intangibles		(178	)		(179	)		(179	)		(536	)		(576	)
Efficiency ratio numerator (GAAP)	$	10,243		$	10,120		$	9,790		$	30,961		$	29,360

Non-interest income	$	2,921		$	1,913		$	2,565		$	8,098		$	7,770
Add back net losses on debt and equity securities		(78	)		(658	)		—			(569	)		—
Subtract net gains on debt and equity securities		—			—			116			—			182
Net interest income		11,285			11,576			12,121			34,766			36,602
Efficiency ratio denominator (GAAP)	$	14,284		$	14,147		$	14,570		$	43,433		$	44,190
Efficiency ratio (GAAP)		72	%		72	%		67	%		71	%		66	%

Reconciliation of tangible book value per share (non-GAAP)

(in thousands, except per share data)

Tangible book value per share at end of period	September 30, 2024			June 30, 2024			December 31, 2023			September 30, 2023
Total stockholders’ equity	$	180,149		$	176,045		$	173,334		$	165,402
Less: Goodwill		(31,498	)		(31,498	)		(31,498	)		(31,498	)
Less: Intangible assets		(1,158	)		(1,336	)		(1,694	)		(1,873	)
Tangible common equity (non-GAAP)	$	147,493		$	143,211		$	140,142		$	132,031
Ending common shares outstanding		10,074,136			10,297,341			10,440,591			10,468,091
Book value per share	$	17.88		$	17.10		$	16.60		$	15.80
Tangible book value per share (non-GAAP)	$	14.64		$	13.91		$	13.42		$	12.61

Reconciliation of tangible common equity as a percent of tangible assets (non-GAAP)

(in thousands, except ratios)

Tangible common equity as a percent of tangible assets at end of period	September 30, 2024			June 30, 2024			December 31, 2023			September 30, 2023
Total stockholders’ equity	$	180,149		$	176,045		$	173,334		$	165,402
Less: Goodwill		(31,498	)	$	(31,498	)		(31,498	)	$	(31,498	)
Less: Intangible assets		(1,158	)	$	(1,336	)		(1,694	)	$	(1,873	)
Tangible common equity (non-GAAP)	$	147,493		$	143,211		$	140,142		$	132,031
Total Assets	$	1,799,137		$	1,802,307		$	1,851,391		$	1,831,087
Less: Goodwill		(31,498	)		(31,498	)		(31,498	)	$	(31,498	)
Less: Intangible assets		(1,158	)		(1,336	)		(1,694	)	$	(1,873	)
Tangible Assets (non-GAAP)	$	1,766,481		$	1,769,473		$	1,818,199		$	1,797,716
Total stockholders’ equity to total assets ratio		10.01	%		9.77	%		9.36	%		9.03	%
Tangible common equity as a percent of tangible assets (non-GAAP)		8.35	%		8.09	%		7.71	%		7.34	%

Reconciliation of Return on Average Tangible Common Equity (non-GAAP)

(in thousands, except ratios)

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Total stockholders’ equity	$	180,149		$	176,045		$	165,402		$	180,149		$	165,402
Less: Goodwill		(31,498	)		(31,498	)		(31,498	)		(31,498	)		(31,498	)
Less: Intangible assets		(1,158	)		(1,336	)		(1,873	)		(1,158	)		(1,873	)
Tangible common equity (non-GAAP)	$	147,493		$	143,211		$	132,031		$	147,493		$	132,031
Average tangible common equity (non-GAAP)	$	145,305		$	140,539		$	132,671		$	141,512		$	131,425
GAAP earnings after income taxes		3,286			3,675			2,498			11,049			9,366
Amortization of intangible assets, net of tax		140			140			89			374			378
Tangible net income	$	3,426		$	3,815		$	2,587		$	11,423		$	9,744
Return on average tangible common equity (annualized)		9.38	%		10.92	%		7.74	%		10.78	%		9.91	%

¹Net income as adjusted and net income as adjusted per share are non-GAAP financial measures that management believes enhances investors’ ability to better understand the underlying business performance and trends related to core business activities. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)”.

²Return on average assets as adjusted is a non-GAAP measure that management believes enhances investors’ ability to better understand the underlying business performance and trends relative to average assets. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of Return on Average Assets as Adjusted (non-GAAP)”.

³Return on average equity as adjusted is a non-GAAP measure that management believes enhances investors’ ability to better understand the underlying business performance and trends relative to average equity. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of Return on Average Equity as Adjusted (non-GAAP)”.

⁴Tangible book value, tangible book value per share, tangible common equity as a percent of tangible assets and return on tangible common equity are non-GAAP measures that management believes enhances investors’ ability to better understand the Company’s financial position. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of tangible book value per share (non-GAAP)”, “Reconciliation of tangible common equity as a percent of tangible assets (non-GAAP)”, and “Reconciliation of return on average tangible common equity)”.

The MIL Network –

January 25, 2025

MIL-OSI: PSB Holdings, Inc. Reports Earnings of $0.69 per Share for Q3 2024; Net Interest Margin and Tangible Book Value Increase; Asset Quality Improves

Source: GlobeNewswire (MIL-OSI)

WAUSAU, Wis., Oct. 28, 2024 (GLOBE NEWSWIRE) — PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank (“Peoples”) serving Northcentral and Southeastern Wisconsin reported third quarter earnings ending September 30, 2024 of $0.69 per common share on net income of $2.9 million, compared to $0.56 per common share on net income of $2.3 million during the second quarter ending June 30, 2024, and $0.29 per common share on net income of $1.2 million during the third quarter ending September 30, 2023.

PSB’s third quarter 2024 operating results reflected the following changes from the second quarter of 2024: (1) higher net interest margin increased 6 basis points; (2) slightly lower non-interest income; (3) lower non-interest expense due to the second quarter reflecting elevated severance expenses; and (4) the return of a $2.5 million non-performing loan to performing status and a corresponding release in specific reserves.

“Over the past year, we have increased shareholders’ tangible book value per share 18.7% and paid $0.62 in dividends to our shareholders, up 12.7% from the 12 month period ended September 30, 2023. With the rapid rise in short term interest rates over the past couple of years coming to an apparent end, we expect our net interest margin to be stable and operating expenses to continue to be well managed and efficient. Additionally, as funds become available from investment and loan repayments and maturities, we expect the funds to be reinvested into higher yielding assets which should lessen the volatility in fair market value adjustments reflected in our tangible book value,” stated Scott Cattanach, President and CEO.

September 30, 2024, Highlights:

Net interest income increased to $9.9 million for the quarter ended September 30, 2024, from $9.4 million for the quarter ended June 30, 2024, as increases in asset and loan yields outpaced the increases in funding costs.
Noninterest income decreased slightly to $1.8 million for the quarter ended September 30, 2024, compared to $1.9 million the prior quarter.
Noninterest expenses decreased during the quarter ended September 30, 2024, reflecting lower salary and benefit expenses. Included in salary and benefit expenses for the prior quarter were non-recurring expenses totaling approximately $404,000.
Tangible book value per common share increased $1.86 per share to $26.41 at September 30, 2024, compared to $24.55 one quarter earlier, and increased $4.16 per share, or 18.7%, compared to $22.25 at September 30, 2023. Additionally, PSB paid dividends totaling $0.62 per share over the past year. During the third quarter ended September 30, 2024, tangible book value per share was positively influenced by higher net income, intangible asset amortization, an increase in fair market value of investment securities and consistent stock repurchase activity.
Loans decreased $16.9 million in the third quarter ended September 30, 2024, to $1.06 billion largely due to not replacing certain out of market maturing loans. Allowance for credit losses increased to 1.18% of gross loans.
Non-performing assets declined to 0.71% of total assets at September 30, 2024 from 0.84% at June 30, 2024 as a $2.5 million loan returned to performing status.
Total deposits decreased $13.2 million during the quarter ended September 30, 2024 to $1.14 billion, with a large portion of the decrease attributable to a large overnight deposit held at June 30, 2024 which was withdrawn in early July.
Return on average tangible common equity was 10.96% for the quarter ended September 30, 2024, compared to 9.34% the prior quarter and 5.17% in the year ago quarter.

Balance Sheet and Asset Quality Review

Total assets decreased $9.7 million to $1.48 billion at September 30, 2024. Investment securities available for sale increased $9.7 million to $174.9 million at September 30, 2024, from $165.2 million one quarter earlier. Total collateralized liquidity available to meet cash demands was approximately $321 million at September 30, 2024, with an additional $343 million that could be raised in a short time frame from the brokered CDs market.

Total loans receivable decreased $16.9 million to $1.06 billion at September 30, 2024, due primarily to lower commercial and construction lending. Commercial non-real estate loans decreased $9.1 million to $139.0 million at September 30, 2024, from $148.2 million one quarter earlier. Gross construction lending decreased $9.6 million to $61.0 million at September 30, 2024, from $70.5 million at June 30, 2024, while loans in process declined $3.6 million during the quarter ended September 30, 2024. Commercial real estate loans decreased $2.6 million to $541.6 million at September 30, 2024, from $544.2 million the prior quarter. Meanwhile, residential real estate loans increased slightly from the prior quarter to $341.3 million from $340.9 million. The loan portfolio remains well diversified with commercial real estate and construction loans totaling 55.4% of gross loans followed by residential real estate loans at 31.4% of gross loans, commercial non-real estate loans at 12.8% and consumer loans at 0.4%.

The allowance for credit losses increased slightly to 1.18% of gross loans at September 30, 2024, from 1.16% the prior quarter. Annualized net charge-offs to average loans were zero for the last five quarters. Non-performing assets totaled 0.71% of total assets at September 30, 2024, compared to 0.84% at June 30, 2024. During the quarter ended September 30, 2024, a loan totaling $2.5 million was returned to performing status, while a loan on a recreation facility totaling $3.3 million was added to nonaccrual status. Additionally, one loan relationship to an equipment dealership on nonaccrual status totaling $5.1 million at June 30, 2024 was paid down to $2.8 million at September 30, 2024 on sale of the equipment inventory. For the seventh consecutive quarter, the Bank did not own any foreclosed real estate.

Total deposits decreased $13.2 million to $1.14 billion at September 30, 2024, from $1.15 billion at June 30, 2024. The decrease in deposits reflects a $13.1 million decrease in interest-bearing demand and savings deposits, a $19.7 million decrease in money market deposits partially offset by a $14.6 million increase in non-interest bearing deposits and a $5.4 million increase in retail and local time deposits. The decrease in money market deposits reflected a large deposit of $49 million on June 30, 2024 that was drawn down in early July 2024.

At September 30, 2024, non-interest bearing demand deposits increased to 23.3% of total deposits from 21.6% the prior quarter, while interest-bearing demand and savings deposits decreased to 28.4% of deposits, compared to 29.3% at June 30, 2024. Uninsured and uncollateralized deposits decreased to 21.6% of total deposits at September 30, 2024, from 24.0% of total deposits at June 30, 2024.

FHLB advances decreased to $181.3 million at September 30, 2024, compared to $184.9 million at June 30, 2024.

Tangible stockholder equity as a percent of total tangible assets increased to 7.85% at September 30, 2024, compared to 7.32% at June 30, 2024, and 6.98% at September 30, 2023.

Tangible net book value per common share increased $4.16, to $26.41, at September 30, 2024, compared to $22.25 one year earlier, an increase of 18.7% after dividends of $0.62 were paid to shareholders. Relative to the prior quarter, tangible net book value per common share increased due to continued earnings, a fair market value increase in the investment portfolio which reduced unrealized losses reflected in accumulated other comprehensive income and amortization of intangible assets. The accumulated other comprehensive loss on the investment portfolio was $15.8 million at September 30, 2024, compared to $20.5 million one quarter earlier.

Operations Review

Net interest income increased to $9.9 million (on a net margin of 2.90%) for the third quarter of 2024, from $9.4 million (on a net margin of 2.84%) for the second quarter of 2024, and $9.6 million (on a net margin of 2.88%) for the third quarter of 2023. Earning asset yields increased by 8 basis points to 5.29% during the third quarter of 2024 from 5.21% during the second quarter of 2024, while interest bearing deposit and borrowing costs increased 7 basis points to 3.13% compared to 3.06% during the second quarter of 2024.

The increase in earning asset yields was primarily due to higher yields on loan originations and renewals. Loan yields increased during the third quarter of 2024 to 5.78% from 5.67% for the second quarter of 2024, up 11 basis points. Taxable security yields were 3.01% for the quarter ended September 30, 2024, compared to 3.02% for the quarter ended June 30, 2024, while tax-exempt security yields were 3.31% for the quarter ended September 30, 2024 compared to 3.33% the prior quarter.

The cost of all deposits was 2.11% for the quarter ended September 30, 2024, compared to 2.11% the prior quarter, while the overall cost of funds increased 7 basis points from 3.06% to 3.13% during the same time period. Deposit costs for money market deposits decreased during the quarter ended September 30, 2024, to 2.69% from 2.72% the prior quarter. The cost of time deposits and FHLB advances continued to increase and were primarily responsible for the rise in the Bank’s cost of funds in the current quarter. The cost of time deposits increased to 4.04% for the third quarter ended September 30, 2024, from 3.97% the prior quarter. FHLB advance costs rose to 4.44% during the third quarter ended September 30, 2024, from 4.28% the prior quarter.

Total noninterest income decreased slightly for the third quarter of 2024 to $1.84 million, from $1.91 million for the second quarter of 2024. Mortgage banking income remained at $433,000 in the September 30, 2024 quarter while various decreases in nominal revenue sources accounted for the slight decline in non-interest income during the third quarter ended September 30, 2024. At September 30, 2024, the Bank serviced $371 million in secondary market residential mortgage loans for others which provide fee income.

Noninterest expenses decreased to $8.2 million for the third quarter of 2024, compared to $8.4 million for the second quarter of 2024. The second quarter ended June 30, 2024, reflected higher salary and benefit expenses related to non-recurring costs. Relative to one year earlier, salary and benefit cost increased 5.7% to $4.8 million for the quarter ended September 30, 2024, compared to $4.5 million for the third quarter ended September 30, 2023.

Taxes increased $183,000 during the third quarter to $593,000, from $410,000 one quarter earlier. The increase generally reflects higher pre-tax income. The effective tax rate for the quarter ended September 30, 2024, was 16.6% compared to 14.4% for the second quarter ended June 30, 2024, and 63.8% for the third quarter ended September 30, 2023, when higher tax expenses were incurred to recognize the loss of certain deferred tax assets following a change in Wisconsin tax law that eliminated state taxes on certain qualified assets.

About PSB Holdings, Inc.

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

Forward-Looking Statements

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

PSB Holdings, Inc.
Consolidated Balance Sheets
September 30, June 30, and March 31, 2024, September 30, 2023, unaudited, December 31, 2023 derived from audited financial statements

	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
(dollars in thousands, except per share data)		2024			2024			2024			2023			2023

Assets

Cash and due from banks	$	23,554		$	16,475		$	13,340		$	20,887		$	12,881
Interest-bearing deposits		5,126			251			105			1,431			668
Federal funds sold		58,434			69,249			2,439			5,462			7,764

Cash and cash equivalents		87,114			85,975			15,884			27,780			21,313
Securities available for sale (at fair value)		174,911			165,177			165,566			164,024			160,883
Securities held to maturity (fair values of $82,389, $79,993, $81,234, $82,514 and
$75,236 respectively)		86,847			86,825			87,104			87,081			86,908
Equity securities		1,752			1,661			1,474			1,474			2,273
Loans held for sale		–			2,268			865			230			971
Loans receivable, net (allowance for credit losses of $12,598, $12,597, $12,494,
$12,302 and $12,267 respectively)		1,057,974			1,074,844			1,081,394			1,078,475			1,098,019
Accrued interest receivable		4,837			5,046			5,467			5,136			4,716
Foreclosed assets		–			–			–			–			–
Premises and equipment, net		14,065			14,048			13,427			13,098			13,242
Mortgage servicing rights, net		1,727			1,688			1,657			1,664			1,684
Federal Home Loan Bank stock (at cost)		8,825			8,825			7,006			6,373			6,373
Cash surrender value of bank-owned life insurance		24,565			24,401			24,242			24,085			23,931
Core deposit intangible		212			229			249			273			297
Goodwill		2,541			2,541			2,541			2,541			2,541
Other assets		10,598			12,111			11,682			11,866			14,094

TOTAL ASSETS	$	1,475,968		$	1,485,639		$	1,418,558		$	1,424,100		$	1,437,245

Liabilities

Non-interest-bearing deposits	$	265,078		$	250,435		$	247,608		$	266,829		$	288,765
Interest-bearing deposits		874,035			901,886			865,744			874,973			883,474

Total deposits		1,139,113			1,152,321			1,113,352			1,141,802			1,172,239

Federal Home Loan Bank advances		181,250			184,900			158,250			134,000			128,000
Other borrowings		6,128			5,775			8,096			8,058			5,660
Senior subordinated notes		4,779			4,778			4,776			4,774			4,772
Junior subordinated debentures		12,998			12,972			12,947			12,921			12,896
Allowance for credit losses on unfunded commitments		477			477			477			577			512
Accrued expenses and other liabilities		12,850			13,069			10,247			12,681			10,258

Total liabilities		1,357,595			1,374,292			1,308,145			1,314,813			1,334,337

Stockholders’ equity

Preferred stock – no par value:
Authorized – 30,000 shares; no shares issued or outstanding
Outstanding – 7,200 shares, respectively		7,200			7,200			7,200			7,200			7,200
Common stock – no par value with a stated value of $1.00 per share:
Authorized – 18,000,000 shares; Issued – 5,490,798 shares
Outstanding – 4,105,594, 4,128,382, 4,147,649, 4,164,735 and
4,174,197 shares, respectively		1,830			1,830			1,830			1,830			1,830
Additional paid-in capital		8,567			8,527			8,466			8,460			8,421
Retained earnings		138,142			135,276			134,271			132,666			131,624
Accumulated other comprehensive income (loss), net of tax		(15,814	)		(20,503	)		(20,775	)		(20,689	)		(26,190	)
Treasury stock, at cost – 1,385,204, 1,362,416, 1,343,149, 1,326,063 and
1,316,601 shares, respectively		(21,552	)		(20,983	)		(20,579	)		(20,180	)		(19,977	)

Total stockholders’ equity		118,373			111,347			110,413			109,287			102,908

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,475,968		$	1,485,639		$	1,418,558		$	1,424,100		$	1,437,245

PSB Holdings, Inc.
Consolidated Statements of Income
	Quarter Ended												Nine Months Ended
(dollars in thousands,	Sep. 30,		Jun. 30,		Mar. 31,			Dec. 31,			Sep. 30,		September
except per share data – unaudited)	2024		2024		2024			2023			2023		2024			2023

Interest and dividend income:
Loans, including fees	$	15,634	$	15,433	$	15,109		$	14,888		$	14,263	$	46,176		$	38,745
Securities:
Taxable		1,345		1,295		1,197			1,147			1,114		3,837			3,772
Tax-exempt		522		521		526			532			533		1,569			1,605
Other interest and dividends		699		265		343			320			238		1,307			531

Total interest and dividend income		18,200		17,514		17,175			16,887			16,148		52,889			44,653

Interest expense:
Deposits		5,905		5,838		6,082			5,526			4,817		17,825			11,467
FHLB advances		2,038		1,860		1,450			1,349			1,321		5,348			3,068
Other borrowings		57		58		60			54			51		175			161
Senior subordinated notes		59		58		59			59			59		176			179
Junior subordinated debentures		252		255		251			254			255		758			731

Total interest expense		8,311		8,069		7,902			7,242			6,503		24,282			15,606

Net interest income		9,889		9,445		9,273			9,645			9,645		28,607			29,047
Provision for credit losses		–		100		95			100			150		195			350

Net interest income after provision for credit losses		9,889		9,345		9,178			9,545			9,495		28,412			28,697

Noninterest income:
Service fees		367		350		336			360			349		1,053			1,088
Mortgage banking income		433		433		308			247			345		1,174			981
Investment and insurance sales commissions		230		222		121			100			158		573			810
Net loss on sale of securities		–		–		(495	)		(297	)		–		(495	)		(279	)
Increase in cash surrender value of life insurance		165		159		157			154			155		481			461
Life insurance death benefit		–		–		–			–			–		–			533
Other noninterest income		648		742		617			540			675		2,007			2,022

Total noninterest income		1,843		1,906		1,044			1,104			1,682		4,793			5,616

Noninterest expense:
Salaries and employee benefits		4,771		5,167		5,123			4,244			4,514		15,061			14,404
Occupancy and facilities		757		733		721			675			689		2,211			2,086
Loss (gain) on foreclosed assets		1		–		–			1			–		1			(46	)
Data processing and other office operations		1,104		1,047		1,022			1,001			953		3,173			2,784
Advertising and promotion		164		171		129			244			161		464			489
Core deposit intangible amortization		17		20		24			24			24		61			85
Other noninterest expenses		1,337		1,257		1,306			1,169			1,113		3,900			3,388

Total noninterest expense		8,151		8,395		8,325			7,358			7,454		24,871			23,190

Income before provision for income taxes		3,581		2,856		1,897			3,291			3,723		8,334			11,123
Provision for income taxes		593		410		169			878			2,374		1,172			3,967

Net income	$	2,988	$	2,446	$	1,728		$	2,413		$	1,349	$	7,162		$	7,156
Preferred stock dividends declared	$	122	$	122	$	122		$	122		$	122	$	366		$	366

Net income available to common shareholders	$	2,866	$	2,324	$	1,606		$	2,291		$	1,227	$	6,796		$	6,790
Basic earnings per common share	$	0.69	$	0.56	$	0.39		$	0.55		$	0.29	$	1.64		$	1.61
Diluted earnings per common share	$	0.69	$	0.56	$	0.39		$	0.55		$	0.29	$	1.64		$	1.61

PSB Holdings, Inc.
Quarterly Financial Summary
(dollars in thousands, except per share data)		Quarter ended
		Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
Earnings and dividends:			2024			2024			2024			2023			2023

	Interest income	$	18,200		$	17,514		$	17,175		$	16,887		$	16,148
	Interest expense	$	8,311		$	8,069		$	7,902		$	7,242		$	6,503
	Net interest income	$	9,889		$	9,445		$	9,273		$	9,645		$	9,645
	Provision for credit losses	$	–		$	100		$	95		$	100		$	150
	Other noninterest income	$	1,843		$	1,906		$	1,044		$	1,104		$	1,682
	Other noninterest expense	$	8,151		$	8,395		$	8,325		$	7,358		$	7,454
	Net income available to common shareholders	$	2,866		$	2,324		$	1,606		$	2,291		$	1,227

	Basic earnings per common share (3)	$	0.69		$	0.56		$	0.39		$	0.55		$	0.29
	Diluted earnings per common share (3)	$	0.69		$	0.56		$	0.39		$	0.55		$	0.29
	Dividends declared per common share (3)	$	–		$	0.32		$	–		$	0.30		$	–
	Tangible net book value per common share (4)	$	26.41		$	24.55		$	24.21		$	23.84		$	22.25

	Semi-annual dividend payout ratio	n/a				33.60	%	n/a				38.14	%	n/a
	Average common shares outstanding		4,132,218			4,139,456			4,154,702			4,168,924			4,186,940


Balance sheet – average balances:
	Loans receivable, net of allowances for credit loss	$	1,066,795		$	1,088,013		$	1,081,936		$	1,081,851		$	1,076,158
	Assets	$	1,445,613		$	1,433,749		$	1,429,437		$	1,424,240		$	1,425,522
	Deposits	$	1,110,854		$	1,111,240		$	1,138,010		$	1,148,399		$	1,149,624
	Stockholders’ equity	$	114,458		$	110,726		$	109,473		$	105,060		$	105,745


Performance ratios:
	Return on average assets (1)		0.82	%		0.69	%		0.49	%		0.67	%		0.38	%
	Return on average common stockholders’ equity (1)		10.63	%		9.03	%		6.32	%		9.29	%		4.94	%
	Return on average tangible common
	stockholders’ equity (1)(4)		10.96	%		9.34	%		6.57	%		9.64	%		5.17	%
	Net loan charge-offs to average loans (1)		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
	Nonperforming loans to gross loans		0.97	%		1.15	%		1.08	%		0.54	%		0.55	%
	Nonperforming assets to total assets		0.71	%		0.84	%		0.83	%		0.42	%		0.42	%
	Allowance for credit losses to gross loans		1.18	%		1.16	%		1.14	%		1.13	%		1.10	%
	Nonperforming assets to tangible equity
	plus the allowance for credit losses (4)		8.71	%		11.09	%		10.59	%		5.38	%		5.87	%
	Net interest rate margin (1)(2)		2.90	%		2.84	%		2.80	%		2.88	%		2.88	%
	Net interest rate spread (1)(2)		2.16	%		2.15	%		2.12	%		2.20	%		2.27	%
	Service fee revenue as a percent of
	average demand deposits (1)		0.56	%		0.56	%		0.54	%		0.52	%		0.50	%
	Noninterest income as a percent
	of gross revenue		9.20	%		9.81	%		5.73	%		6.14	%		9.43	%
	Efficiency ratio (2)		68.43	%		72.52	%		78.93	%		67.04	%		64.58	%
	Noninterest expenses to average assets (1)		2.24	%		2.35	%		2.34	%		2.05	%		2.07	%
	Average stockholders’ equity less accumulated
	other comprehensive income (loss) to
	average assets		9.06	%		9.03	%		8.98	%		8.88	%		9.00	%
	Tangible equity to tangible assets (4)		7.85	%		7.32	%		7.60	%		7.49	%		6.98	%

Stock price information:

	High	$	25.00		$	21.40		$	22.50		$	22.30		$	22.50
	Low	$	20.30		$	19.75		$	20.05		$	20.10		$	20.35
	Last trade value at quarter-end	$	25.00		$	20.40		$	21.25		$	22.11		$	21.15

(1) Annualized
(2) The yield on federally tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%.
(3) Due to rounding, cumulative quarterly per share performance may not equal annual per share totals.
(4) Tangible stockholders’ equity excludes goodwill and core deposit intangibles.

PSB Holdings, Inc.
Consolidated Statements of Comprehensive Income

			Quarter Ended
			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
(dollars in thousands – unaudited)				2024			2024			2024			2023			2023

Net income			$	2,988		$	2,446		$	1,728		$	2,413		$	1,349

Other comprehensive income, net of tax:

	Unrealized gain (loss) on securities available
		for sale		4,738			184			(615	)		5,278			(3,085	)

	Reclassification adjustment for security
		loss included in net income		–			–			391			280			–

	Accretion of unrealized loss included in net
		income on securities available for sale
		deferred tax adjustment for Wisconsin
		Act 19		–			–			(35	)		–			–

	Amortization of unrealized loss included in net
		income on securities available for sale
		transferred to securities held to maturity		90			89			91			91			91

	Unrealized gain (loss) on interest rate swap			(101	)		39			123			(109	)		79

	Reclassification adjustment of interest rate
		swap settlements included in earnings		(38	)		(40	)		(41	)		(39	)		(35	)


Other comprehensive income (loss)				4,689			272			(86	)		5,501			(2,950	)

Comprehensive income (loss)			$	7,677		$	2,718		$	1,642		$	7,914		$	(1,601	)

PSB Holdings, Inc.
Nonperforming Assets as of:
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
(dollars in thousands)		2024			2024			2024			2023			2023

Nonaccrual loans (excluding restructured loans)	$	10,116		$	12,184		$	11,498		$	5,596		$	5,807
Nonaccrual restructured loans		25			28			30			34			42
Restructured loans not on nonaccrual		292			299			304			310			256
Accruing loans past due 90 days or more		–			–			–			–			–

Total nonperforming loans		10,433			12,511			11,832			5,940			6,105
Other real estate owned		–			–			–			–			–

Total nonperforming assets	$	10,433		$	12,511		$	11,832		$	5,940		$	6,105

Nonperforming loans as a % of gross loans receivable		0.97	%		1.15	%		1.08	%		0.54	%		0.55	%
Total nonperforming assets as a % of total assets		0.71	%		0.84	%		0.83	%		0.42	%		0.42	%
Allowance for credit losses as a % of nonperforming loans		120.75	%		100.69	%		105.59	%		207.10	%		200.93	%

PSB Holdings, Inc.
Nonperforming Assets >= $500,000 net book value before specific reserves
At September 30, 2024
(dollars in thousands)
		Gross			Specific
Collateral Description	Asset Type	Principal			Reserves

Real estate – Recreation Facility	Nonaccrual	$	3,291		$	–
Real estate – Independent Auto Repair	Nonaccrual		562			–
Real estate – Equipment Dealership	Nonaccrual		2,808			660


Total listed nonperforming assets		$	6,661		$	660
Total bank wide nonperforming assets		$	10,433		$	1,220
Listed assets as a % of total nonperforming assets			64	%		54	%

PSB Holding, Inc.
Loan Composition by Collateral Type
Quarter-ended (dollars in thousands)	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023

Commercial:
Commercial and industrial	$	115,234		$	125,508		$	118,821		$	117,207		$	138,299
Agriculture		11,203			11,480			12,081			12,304			12,464
Municipal		12,596			11,190			28,842			31,530			27,186

Total Commercial		139,033			148,178			159,744			161,041			177,949

Commercial Real Estate:
Commercial real estate		541,577			544,171			546,257			536,209			539,488
Construction and development		60,952			70,540			63,375			81,701			86,456

Total Commercial Real Estate		602,529			614,711			609,632			617,910			625,944

Residential real estate:
Residential		269,954			270,944			274,300			274,453			274,632
Construction and development		34,655			36,129			34,158			33,960			33,141
HELOC		36,734			33,838			31,357			29,766			29,044

Total Residential Real Estate		341,343			340,911			339,815			338,179			336,817

Consumer installment		4,770			4,423			4,867			4,357			4,350

Subtotals – Gross loans		1,087,675			1,108,223			1,114,058			1,121,487			1,145,060
Loans in process of disbursement		(17,836	)		(21,484	)		(20,839	)		(31,359	)		(35,404	)

Subtotals – Disbursed loans		1,069,839			1,086,739			1,093,219			1,090,128			1,109,656
Net deferred loan costs		733			702			669			649			630
Allowance for credit losses		(12,598	)		(12,597	)		(12,494	)		(12,302	)		(12,267	)

Total loans receivable	$	1,057,974		$	1,074,844		$	1,081,394		$	1,078,475		$	1,098,019

PSB Holding, Inc.
Selected Commercial Real Estate Loans by Purpose
	Sept 30,				June 30,				Mar 31,				Dec 31,				Sept 30,
(dollars in thousands)		2024				2024				2024				2023				2023

	Total Exposure		% of Portfolio (1)		Total Exposure		% of Portfolio (1)		Total Exposure		% of Portfolio (1)		Total Exposure		% of Portfolio (1)		Total Exposure		% of Portfolio (1)
Multi Family	$	140,307	14.7	%	$	146,873	15.2	%	$	142,001	14.4	%	$	132,386	13.2	%	$	133,466	13.3	%
Industrial and Warehousing		86,818	9.1			86,025	8.9			85,409	8.6			83,817	8.3			88,906	8.9
Retail		33,020	3.5			34,846	3.6			33,177	3.4			35,419	3.5			35,281	3.5
Hotels		31,611	3.3			34,613	3.6			35,105	3.6			36,100	3.6			31,819	3.2
Office		6,378	0.7			6,518	0.7			6,655	0.7			6,701	0.7			6,746	0.7

(1) Percentage of commercial and commercial real estate portfolio and commitments.

PSB Holdings, Inc.
Deposit Composition

Insured and Collateralized Deposits	September 30,				June 30,				March 31,				December 31,				September 30,
(dollars in thousands)		2024				2024				2024				2023				2023
	$		%		$		%		$		%		$		%		$		%

Non-interest bearing demand	$	210,534	18.6	%	$	202,343	17.5	%	$	199,076	17.8	%	$	197,571	17.3	%	$	209,133	17.9	%
Interest-bearing demand and savings		305,631	26.8	%		304,392	26.5	%		318,673	28.7	%		317,984	27.8	%		307,620	26.3	%
Money market deposits		138,376	12.2	%		137,637	12.0	%		143,167	12.9	%		142,887	12.5	%		135,910	11.4	%
Retail and local time deposits <= $250		155,988	13.7	%		149,298	13.0	%		148,404	13.3	%		149,145	13.1	%		144,738	12.4	%

Total core deposits		810,529	71.3	%		793,670	69.0	%		809,320	72.7	%		807,587	70.7	%		797,401	68.0	%
Retail and local time deposits > $250		23,500	2.1	%		22,500	2.0	%		24,508	2.3	%		23,000	2.0	%		22,750	1.9	%
Broker & national time deposits <= $250		1,241	0.1	%		1,490	0.1	%		2,229	0.2	%		3,470	0.3	%		3,222	0.3	%
Broker & national time deposits > $250		56,164	4.9	%		56,328	4.9	%		61,752	5.5	%		70,020	6.1	%		88,614	7.6	%

Totals	$	891,434	78.4	%	$	873,988	76.0	%	$	897,809	80.7	%	$	904,077	79.1	%	$	911,987	77.8	%

PSB Holdings, Inc.
Deposit Composition

Uninsured Deposits	September 30,				June 30,				March 31,				December 31,				September 30,
(dollars in thousands)		2024				2024				2024				2023				2023
	$		%		$		%		$		%		$		%		$		%

Non-interest bearing demand	$	54,544	4.7	%	$	48,092	4.1	%	$	48,532	4.4	%	$	69,258	6.1	%	$	79,632	6.8	%
Interest-bearing demand and savings		18,317	1.6	%		32,674	2.8	%		20,535	1.8	%		20,316	1.8	%		22,847	1.9	%
Money market deposits		157,489	13.8	%		177,954	15.4	%		124,766	11.2	%		124,518	10.9	%		133,653	11.4	%
Retail and local time deposits <= $250		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%

Total core deposits		230,350	20.1	%		258,720	22.3	%		193,833	17.4	%		214,092	18.8	%		236,132	20.1	%
Retail and local time deposits > $250		17,329	1.5	%		19,613	1.7	%		21,710	1.9	%		23,633	2.1	%		24,120	2.1	%
Broker & national time deposits <= $250		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%
Broker & national time deposits > $250		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%

Totals	$	247,679	21.6	%	$	278,333	24.0	%	$	215,543	19.3	%	$	237,725	20.9	%	$	260,252	22.2	%

PSB Holdings, Inc.
Deposit Composition

Total Deposits	September 30,				June 30,				March 31,				December 31,				September 30,
(dollars in thousands)		2024				2024				2024				2023				2023
	$		%		$		%		$		%		$		%		$		%

Non-interest bearing demand	$	265,078	23.3	%	$	250,435	21.6	%	$	247,608	22.2	%	$	266,829	23.4	%	$	288,765	24.7	%
Interest-bearing demand and savings		323,948	28.4	%		337,066	29.3	%		339,208	30.5	%		338,300	29.6	%		330,467	28.2	%
Money market deposits		295,865	26.0	%		315,591	27.4	%		267,933	24.1	%		267,405	23.4	%		269,563	22.8	%
Retail and local time deposits <= $250		155,988	13.7	%		149,298	13.0	%		148,404	13.3	%		149,145	13.1	%		144,738	12.4	%

Total core deposits		1,040,879	91.4	%		1,052,390	91.3	%		1,003,153	90.1	%		1,021,679	89.5	%		1,033,533	88.1	%
Retail and local time deposits > $250		40,829	3.6	%		42,113	3.7	%		46,218	4.2	%		46,633	4.1	%		46,870	4.0	%
Broker & national time deposits <= $250		1,241	0.1	%		1,490	0.1	%		2,229	0.2	%		3,470	0.3	%		3,222	0.3	%
Broker & national time deposits > $250		56,164	4.9	%		56,328	4.9	%		61,752	5.5	%		70,020	6.1	%		88,614	7.6	%

Totals	$	1,139,113	100.0	%	$	1,152,321	100.0	%	$	1,113,352	100.0	%	$	1,141,802	100.0	%	$	1,172,239	100.0	%

PSB Holdings, Inc.
Average Balances ($000) and Interest Rates
(dollars in thousands)

	Quarter ended September 30, 2024							Quarter ended June 30, 2024							Quarter ended September 30, 2023
	Average					Yield /		Average					Yield /		Average					Yield /
	Balance			Interest		Rate		Balance			Interest		Rate		Balance			Interest		Rate
Assets
Interest-earning assets:
Loans (1)(2)	$	1,079,393		$	15,674	5.78	%	$	1,100,518		$	15,520	5.67	%	$	1,088,137		$	14,337	5.23	%
Taxable securities		177,520			1,345	3.01	%		172,563			1,295	3.02	%		173,287			1,114	2.55	%
Tax-exempt securities (2)		79,472			661	3.31	%		79,564			659	3.33	%		81,327			675	3.29	%
FHLB stock		8,825			176	7.93	%		7,931			182	9.23	%		6,368			127	7.91	%
Other		36,680			523	5.67	%		8,241			83	4.05	%		8,195			111	5.37	%

Total (2)		1,381,890			18,379	5.29	%		1,368,817			17,739	5.21	%		1,357,314			16,364	4.78	%

Non-interest-earning assets:
Cash and due from banks		17,162							17,345							19,299
Premises and equipment,
net		14,216							13,930							13,266
Cash surrender value ins		24,458							24,297							23,840
Other assets		20,485							21,865							23,782
Allowance for credit
losses		(12,598	)						(12,505	)						(11,979	)

Total	$	1,445,613						$	1,433,749						$	1,425,522

Liabilities & stockholders’ equity
Interest-bearing liabilities:
Savings and demand
deposits	$	323,841		$	1,515	1.86	%	$	331,740		$	1,467	1.78	%	$	335,214		$	1,198	1.42	%
Money market deposits		277,884			1,876	2.69	%		271,336			1,835	2.72	%		255,823			1,489	2.31	%
Time deposits		247,296			2,514	4.04	%		257,006			2,536	3.97	%		279,971			2,130	3.02	%
FHLB borrowings		182,414			2,038	4.44	%		174,596			1,860	4.28	%		134,386			1,321	3.90	%
Other borrowings		6,702			57	3.38	%		6,870			58	3.40	%		5,681			51	3.56	%
Senior sub. notes		4,779			59	4.91	%		4,777			58	4.88	%		4,772			59	4.91	%
Junior sub. debentures		12,985			252	7.72	%		12,960			255	7.91	%		12,883			255	7.85	%

Total		1,055,901			8,311	3.13	%		1,059,285			8,069	3.06	%		1,028,730			6,503	2.51	%

Non-interest-bearing liabilities:
Demand deposits		261,833							251,158							278,616
Other liabilities		13,421							12,580							12,431
Stockholders’ equity		114,458							110,726							105,745

Total	$	1,445,613						$	1,433,749						$	1,425,522

Net interest income				$	10,068						$	9,670						$	9,861
Rate spread						2.16	%						2.15	%						2.27	%
Net yield on interest-earning assets						2.90	%						2.84	%						2.88	%

(1) Nonaccrual loans are included in the daily average loan balances outstanding.
(2) The yield on federally tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%.

PSB Holdings, Inc.
Average Balances ($000) and Interest Rates
(dollars in thousands)
	Nine months ended September 30, 2024							Nine months ended September 30, 2023
	Average					Yield/		Average					Yield/
	Balance			Interest		Rate		Balance			Interest		Rate
Assets
Interest-earning assets:
Loans (1)(2)	$	1,091,366		$	46,393	5.68	%	$	1,025,955		$	38,851	5.06	%
Taxable securities		173,971			3,837	2.95	%		189,583			3,772	2.66	%
Tax-exempt securities (2)		79,822			1,986	3.32	%		81,670			2,032	3.33	%
FHLB stock		7,755			523	9.01	%		4,943			228	6.17	%
Other		18,804			784	5.57	%		8,154			303	4.97	%

Total (2)		1,371,718			53,523	5.21	%		1,310,305			45,186	4.61	%

Non-interest-earning assets:
Cash and due from banks		17,291							17,403
Premises and equipment,
net		13,778							13,311
Cash surrender value ins		24,301							24,446
Other assets		21,146							23,364
Allowance for credit
losses		(12,496	)						(12,004	)

Total	$	1,435,738						$	1,376,825

Liabilities & stockholders’ equity
Interest-bearing liabilities:
Savings and demand
deposits	$	335,317		$	4,654	1.85	%	$	350,928		$	3,286	1.25	%
Money market deposits		274,405			5,608	2.73	%		241,594			3,508	1.94	%
Time deposits		256,287			7,563	3.94	%		257,639			4,673	2.43	%
FHLB borrowings		166,703			5,348	4.29	%		110,460			3,068	3.71	%
Other borrowings		7,373			175	3.17	%		7,082			161	3.04	%
Senior sub. notes		4,778			176	4.92	%		4,965			179	4.82	%
Junior sub. debentures		12,972			758	7.81	%		12,857			731	7.60	%

Total		1,057,835			24,282	3.07	%		985,525			15,606	2.12	%

Non-interest-bearing liabilities:
Demand deposits		254,134							273,699
Other liabilities		12,720							12,165
Stockholders’ equity		111,049							105,436

Total	$	1,435,738						$	1,376,825

Net interest income				$	29,241						$	29,580
Rate spread						2.14	%						2.49	%
Net yield on interest-earning assets						2.85	%						3.02	%

(1) Nonaccrual loans are included in the daily average loan balances outstanding.
(2) The yield on federally tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%.

The MIL Network –

January 25, 2025

MIL-OSI: Helport AI to Report Fiscal Year 2024 Financial Results on Thursday, October 31, 2024

Source: GlobeNewswire (MIL-OSI)

Management to Host Business Update Conference Call on Wednesday, November 6, 2024 at 5:30 pm ET

SINGAPORE and SAN DIEGO, Oct. 28, 2024 (GLOBE NEWSWIRE) — Helport AI Limited (NASDAQ: HPAI) (“Helport” or the “Company”), an AI technology company serving enterprise clients with intelligent products, solutions and a digital platform, will report financial results for its fiscal full year ended June 30, 2024, after the market close on Thursday, October 31, 2024.

The Company will hold a Business Update Conference Call on Wednesday, November 6, 2024, at 5:30 p.m. Eastern time to discuss its financial results, recent consumption of its business combination and Nasdaq listing, ongoing initiatives and upcoming milestones.

Guanghai Li, Chief Executive Officer, and Tao Ke, Chief Financial Officer, will host the conference call, followed by a question-and-answer session. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed via the investor relations section of the Company’s website here.

To access the call, please use the following information:

Date:	Wednesday, November 6, 2024
Time:	5:30 p.m. Eastern Time, 2:30 p.m. Pacific Time
Toll-free dial-in number:	1-800-445-7795
International dial-in number:	1-203-518-9848
Conference ID (Required for Entry):	HELPORT

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact MZ Group at 1-949-491-8235.

The conference call will be broadcast live and available for replay at https://viavid.webcasts.com/starthere.jsp?ei=1695608&tp_key=0c8510f685 and via the investor relations section of the Company’s website here.

A replay of the webcast will be available after 9:30 p.m. Eastern Time through February 6, 2025.

Toll-free replay number:	1-844-512-2921
International replay number:	1-412-317-6671
Replay ID:	11157509

About Helport

Helport AI (NASDAQ: HPAI) is a premier provider of AI-driven solutions, specializing in enhancing professional capabilities across industries. Focused on delivering measurable outcomes, Helport AI is transforming the way businesses operate by ensuring that professionals have the tools they need to succeed. The company serves enterprise-level customer contact services through intelligent products, solutions, and a digital platform, helping businesses optimize their operations and improve customer engagement. Our mission is to Empower everyone to work as an expert. For more information, please visit Helport’s website: https://ir.helport.ai/.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements, including, but not limited to, Helport’s business plan and outlook. These forward-looking statements involve known and unknown risks and uncertainties and are based on Helport’s current expectations and projections about future events that Helport believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions. Helport undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although Helport believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and Helport cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in Helport’s registration statement and other filings with the U.S. Securities and Exchange Commission.

Investor Relations Contact:
Chris Tyson
Executive Vice President
MZ North America
Direct: 949-491-8235
HPAI@mzgroup.us
www.mzgroup.us

The MIL Network –

January 25, 2025

MIL-OSI: cBrain lowers expected yearly revenue growth to 10-15%, but maintains EBT margin of 24-28%

Source: GlobeNewswire (MIL-OSI)

Company Announcement no. 10/2024

cBrain lowers expected yearly revenue growth to 10-15%, but maintains EBT margin of 24-28%

Copenhagen, November 28, 2024

cBrain (NASDAQ: CBRAIN) is executing its international growth plan with a financial goal of reaching total revenue of 350 million DKK in 2025. This goal is anchored in two primary revenue streams, referred to as “Base” and “Stepping stones”.

The “Base” stream aims to achieve annual revenue growth of 10-15% by strengthening and expanding existing operations and customer relationships. In parallel, the “Stepping Stones” initiative aims to lift annual revenue growth to 30%, by increasing contract values and winning larger international contracts.

cBrain continues to execute its growth strategy, building a robust pipeline of major opportunities. This is facilitated by a growing number of international pilot projects that set the stage for significant “Stepping Stones” achievements.

In early 2024, cBrain anticipated some of these opportunities, particularly in Germany and the U.S., to yield significant revenue in the second half of the year. cBrain remains highly active in these pursuits and has added further opportunities during the year.

However, not unusually with larger government procurement, delays in decision making mean that cBrain estimates less than a 50% likelihood of substantial revenue from larger international projects materializing in Q4. Consequently, cBrain adjusts its 2024 revenue growth forecast to 10-15%, down from the initial estimate of 20-25%.

In alignment with business planning, cBrain has earmarked financial investments to support “Stepping Stones” projects in Germany and the U.S. Since these projects have not yet materialized, these reserved funds have not been deployed. This provides a positive impact on earnings. cBrain, therefore, maintains its EBT (Earnings Before Tax) guidance at 24-30%.

—

Larger international projects are often structured so that F2 standard software licenses form the majority of the contract value. Due to financial standards for software revenue recognition, larger international orders may, as a result, introduce greater variability in revenue patterns over time.

As cBrain is currently pursuing global opportunities across the USA, Europe, Africa, the UAE, and India, some of these opportunities may still materialize during the fourth quarter, with a positive affect on this year’s revenue.

Best regards

Per Tejs Knudsen, CEO

Inquiries regarding this Company Announcement may be directed to

Ejvind Jørgensen, CFO & Head of Investor Relations, cBrain A/S, ir@cbrain.com, +45 2594 4973

Attachment

Company Announcement no. 2024-10 (forecast of delayed international project)

The MIL Network –

January 25, 2025

MIL-OSI NGOs: Echoes from Darfur Sudan

Source: Médecins Sans Frontières –

One and a half years into the conflict in Sudan, refugees are still fleeing to eastern Chad in search for safety, where they arrive at camps in dire conditions. Access to clean water, sanitation and healthcare facilities is limited. We met Aziz, Youssef, Salwa, and Amina to hear their stories of fleeing the Darfur region of Sudan and survival in eastern Chad.

Aziz Adam, displaced from West Darfur

“My family is incomplete here. My mom, my dad, seven of us siblings- there’s nine of us in total. But the war separated us. Some of my family made it out of West Darfur, but the rest haven’t joined us yet.

We fled in a state of panic, terrified of the war. We didn’t have time to take anything with us, and some of us even arrived barefoot.

We walked 20 kilometres to get here, on foot. Along the way, we encountered the Rapid Support Forces who threatened us. Some of the young men traveling with us were accused of belonging to the Masalit tribe. They were arrested and killed. We thought we would die too. I couldn’t imagine we’d survive.

The memories of fleeing stay with me. When I think about the tragedies, what pain we left behind, there’s no way I can go back.

But I hear some people say they would rather return to the war in Sudan than endure the hell we face in the camp.

I got here in July of last year, so it’s been almost a year, and now I’m 24 years old. Our situation is tragic. We left one difficult situation, only to find ourselves in an even worse one.

We lack the basic necessities for living— drinking water and food. It’s been four or five months in Iridimi camp since we last received any food aid.

Now, my family and I are desperate. We need education, healthcare, and a better future. But the reality we live in is bleak. I feel stuck, caught between Sudan, where the future is uncertain, and Chad, where I don’t belong.”

Salwa Saleh, displaced from South Darfur

“We used to live an urban life, but we’ve been displaced from our cities. It’s hard to accept living in a camp. And even some of my family members are still in Sudan. They always say they won’t leave because Sudan is their country. We all hope the war will end soon, we all want to return to our homeland.

The war took us by surprise. We left in such a rush that we didn’t have time to take any of our important belongings or memories. I left behind so many beautiful things in Nyala. My children lost their father; now they are orphans. To get here we had to journey from Nyala to Tina, and that usually takes two days. But it took us four. We passed through areas of fighting between the Rapid Support Forces and the Sudanese Armed Forces. It was terrifying and exhausting.

I’ve been in this camp for a year and two months. Living here, it’s like living in a house without walls or a fence. We still suffer from a lack of food, clean drinking water, proper education, hospitals, and medical care.

Before the war, we would go to work and return home to our children. We could easily meet our needs. But since the war started, life has become much more difficult. I hope for the day when life returns to normal, when we find security and stability. When our children can go back to their schools.

I hope for a better future for my children. When the war in Sudan ends, I dream of having the chance to travel, completing my education, learning new languages, and finding a job. I want to provide for my children and support my family.”

Youssef Mohamed, displaced from North Darfur

“I think constantly, which makes it hard to sleep. My family is far away, the war is ongoing, and every day brings news of more deaths. I have my wife and two children, a boy and a girl, but they are all in Kabkabiya, about 156 kilometres west of El Fasher.

I’ve been here for about eight months, and I’m originally from North Darfur, 57 years old now. I came here to Iriba in east Chad coming from Adre, looking for work, but unfortunately, I couldn’t find a job. I left my family behind for this, so it’s difficult. My wife, my brothers, and sisters are scattered in different places. My children have been out of school for almost a year. They haven’t studied since last June. The war has destroyed everything.

I’ve been living with diabetes for 12 years. Before the war, I would go to Khartoum for treatment. I was in Khartoum when the war broke out. I spent a month there, then moved to Gezira State for five months before heading to El Fasher. Along the way, I faced harassment, beatings, threats, and humiliation from the armed forces.

As a diabetic, I need regular medical care, including eye, liver, and kidney tests every three months. But since coming here, I haven’t found any of these services. The treatment for diabetes is either too expensive or unavailable in Chad. I also need a specific diet, but here, things like vegetables and fruits are hard to find.

Before the war, I had my own office in the market and was the principal of a school. I used to grow beans, sesame, and maize, but the war disrupted all of that.

Educating my children is the most important thing for me now, but they are still in Kabkabiya, and I don’t know their fate. Sometimes there are airstrikes, and I worry they might be hit because the area is at war.
My mother, brother, and sisters live in Shaqra, but even there, no place in Sudan is safe from the shells. I brought with me only a few photos of my children and family, as well as some teaching materials on flash drives.

I hope to return to Sudan. I want my children to go to school, for my family to be stable, and for Sudan to be better than it was before.”

Amina Suleiman, displaced from Central Darfur

“The war started in Zalingei, where I’m from, on 15 April 2023- the same day it started in Khartoum. We kept hoping it would end, but it didn’t. What I witnessed in Zalingei and during our displacement will never leave me. The memories are etched in my mind, and they haunt our children too. They are playing with sticks, pretending they have weapons. Children are living with the trauma of war.

In Sudan, we used to hide under beds to shield ourselves from the bombings. Those memories are painful, but here, we face even greater hardships. I’m 24 now, and I don’t know if I have a future. The children here, some are two or three years old, they deserve something better.

I’ve been living in this camp for a year and a month, since 4 August 2023. Life here is hard. We’ve only received financial aid five times since we arrived. And food and water are scarce. We normally get them every two days, but even sometimes it’s after waiting four days.

There are no jobs here, even for those of us who are educated. Our situation is critical. We’re also facing a health crisis. There is no health centre in the camp. We don’t have specialist doctors for heart or eye diseases, and many are suffering, including women needing obstetric care. In our previous camp, that health centre didn’t have medicines.

We need psychological support. Many of us have lost family members to the war. People are missing, scattered across Sudan, or still in Darfur. The war has torn us apart, separating us from our loved ones. All of us here in the camp are missing someone.

If I had the choice, I’d rather return to Sudan, even if it meant dying there. That would be better than dying in this camp.”

MIL OSI NGO –

January 25, 2025

MIL-OSI NGOs: FIFA/Saudi Arabia: Global law firm’s flawed human rights assessment of Saudi Arabia’s World Cup 2034 bid raises ‘deep concern’

Source: Amnesty International –

AS&H Clifford Chance’s assessment contains no substantive discussion of Saudi’s extensive and relevant abuses

11 human rights groups, football supporters and worker organisations join forces to voice deep concern

‘FIFA must insist on a proper assessment and meaningful human rights strategy or its flagship tournament will be tarnished by severe human rights violations’ – Steve Cockburn

A flawed human rights assessment of Saudi Arabia’s FIFA 2034 World Cup bid by AS&H Clifford Chance – part of the global partnership of London-based law firm Clifford Chance – leaves the global firm at risk of being linked to abuses which result from the tournament, 11 organisations said today.

AS&H Clifford Chance, which is based in Riyadh and sits within Clifford Chance’s integrated global partnership, produced an “independent human rights context assessment” that was published by FIFA and has helped pave the way for Saudi Arabia to be confirmed on 11 December as the 2034 hosts, as is widely expected to happen.

The assessment contains no substantive discussion of extensive and relevant abuses in Saudi Arabia documented by multiple human rights organisations and UN bodies. It formed the basis of Saudi Arabia’s human rights strategy for the tournament, which Amnesty International described as a “whitewash”.

The 11 organisations – which include a Saudi Arabian diaspora organisation, Gulf human rights groups, and labour organisations, as well as Football Supporters Europe, Amnesty and Human Rights Watch – wrote to Clifford Chance’s Global Managing Partner setting out in detail all of their concerns with the statement, and invited the authors to publish an updated report. The firm, which says that it works in partnership with “some of the world’s leading NGOs and civil society organisations”, said in response last week that it would be “inappropriate” to offer any further comment on the report and shared a link to publicly available company policies.

Dire human rights record

Saudi Arabia’s already dire human rights record has deteriorated under the de facto rule of Crown Prince Mohammed bin Salman, who has presided over a soaring number of mass executions, torture, enforced disappearance, severe restrictions on free expression, repression of women’s rights under the male guardianship system, LGBTI+ discrimination, and the killing of hundreds of migrants at the Saudi Arabia-Yemen border. The country’s abusive Kafala (labour sponsorship) system, as well as the prohibition on trade unions and lack of enforcement of labour laws continues to lead to the widespread exploitation of migrant workers.

The organisations have warned Clifford Chance that, through the production of its human rights assessment by AS&H Clifford Chance, there is a risk that the firm could be linked to potential adverse human rights impacts resulting from a Saudi Arabia-hosted tournament.

In their memorandum to Clifford Chance the organisations set out and requested comment on three overarching concerns about the assessment. Taken together, these fatally undermine the report’s claim to provide an independent assessment of the human rights context in Saudi Arabia, relevant to the hosting and staging of the 2034 World Cup.

AS&H Clifford Chance agreed to a decision by FIFA and the Saudi Arabian Football Federation to effectively exclude analysis of Saudi Arabia’s record on multiple critical human rights such as freedom of expression, LGBTI+ discrimination, the prohibition of trade unions, or forced evictions – either because Saudi Arabia has not ratified the relevant treaties or because the Saudi Arabian Football Federation did not accept them as “applying”. Any assessment that does not recognise these as relevant human rights risks for a World Cup in Saudi Arabia cannot be considered credible.
The assessment made highly selective use of the findings of UN bodies on Saudi Arabia, leaving out damaging judgements. For example, it fails to reference one UN body’s concern at receiving reports that “torture and other ill-treatment are commonly practised in prisons”, or another which notes that “women and girls who are victims of sexual abuse risk facing criminal proceedings if they press charges”. It does not mention that Saudi Arabia is currently facing a labour complaint at the UN brought by Building and Woodworkers International, an international trade union. No reports by UN Special Rapporteurs are included meaning, for example, there is no reference to the imposition of the death penalty in relation to the Crown Prince’s flagship giga-project NEOM, or the murder of Saudi Arabian journalist Jamal Khashoggi.
There is no evidence that AS&H Clifford Chance consulted external experts, such as people who might be affected by human rights abuses linked to the tournament, Saudi Arabian human rights experts or organisations, international human rights organisations, or trade unions. No work by such groups is referenced. The report, for example, ignores Amnesty’s 2024 91-page report ‘Playing a Dangerous Game? Human Rights Risks Linked to the 2030 and 2034 FIFA World Cups’.

Amnesty has written to FIFA asking it to confirm on what basis the organisation agreed with the Saudi Arabian Football Federation to limit the scope of the rights assessment conducted by AS&H Clifford Chance. As of 25 October, FIFA had not responded.

James Lynch, FairSquare co-director, said:

“It has been clear for more than a year now that FIFA is determined to remove all potential obstacles to make sure it can hand Saudi Arabia’s Crown Prince Mohammed bin Salman the 2034 World Cup. By producing a shockingly poor report, AS&H Clifford Chance, part of one of the world’s largest law firms that makes much of its human rights expertise, has helped to remove a key final stumbling block.”

Julia Legner, Executive Director of ALQST for Human Rights, a Saudi Arabian diaspora organisation, said:

“AS&H Clifford Chance had the chance to write a credible assessment of risks that are relevant to the 2034 World Cup. Instead, they have produced an artificially limited, misleading and overly positive perspective, that serves only to whitewash the reality of abuse and discrimination faced by Saudi Arabia’s citizens and residents.”

Steve Cockburn, Amnesty International’s Head of Labour Rights and Sport, said:

“The severe risks of hosting the 2034 World Cup in Saudi Arabia are clear and well-known – without huge reforms, critics will be arrested, women and LGBTI+ people will face discrimination, and workers will be exploited on a massive scale. It is incredible that AS&H Clifford Chance omitted such glaring risks from its assessment and scandalous that FIFA paved the way for them to do so. FIFA must now insist on a proper assessment and meaningful human rights strategy or its flagship tournament will inevitably be tarnished by severe human rights violations.”

Martha Waithira, Equidem investigator, said:

“As a former domestic worker in Saudi Arabia from Kenya, I know that women like me are often treated like slaves. Women especially face sexual and other gender abuse. I’m in regular contact with workers in horrific situations in Saudi Arabia. Now, the hundreds of thousands of people expected to arrive in Saudi Arabia to build stadiums and clean hotels ahead of the World Cup are at great risk of severe exploitation and even death. How can these realities have escaped AS&H Clifford Chance’s attention?”

Stated commitments to human rights

The ‘Independent Context Assessment Prepared for the Saudi Arabian Football Federation in relation to the FIFA World Cup 2034’ can be found on FIFA’s website. FIFA’s Human Rights Policy, adopted in 2017, outlines its responsibility to identify and address adverse human rights impacts of its operations, including taking adequate measures to prevent and mitigate human rights abuses.

Clifford Chance is one of the world’s largest law firms. It has made multiple commitments concerning its human rights responsibilities, including in its company code. The firm states on its global website that its client base in Saudi Arabia, delivered “through AS&H Clifford Chance” includes “key Saudi Ministries and government-owned entities as well as a wide range of government owned, privately and publicly held Saudi and international businesses, listed companies and financial institutions.” These Saudi clients include the Public Investment Fund. AS&H Clifford Chance is a joint venture between Clifford Chance and AS&H that has been registered in Saudi Arabia since 2023. It is integrated within Clifford Chance’s global firm, “follows [the global firm’s] processes and practices”, and employs a number of Clifford Chance partners, including a “Senior Clifford Chance partner”. The Independent Context Assessment refers readers to the global Clifford Chance website.

Full list of signatories:

FairSquare

ALQST for Human Rights

Amnesty International

The Army of Survivors

Building and Woodworkers International

Equidem

Football Supporters Europe

Gulf Centre for Human Rights

Human Rights Watch

Middle East Democracy Center

Migrant-Rights.org

MIL OSI NGO –

January 25, 2025

MIL-OSI United Kingdom: Chancellor: “We will build a Britain where those who can work, will work”

Source: United Kingdom – Executive Government & Departments

Ahead of Budget later this week, the Chancellor pledges work and welfare overhaul so people who can work, do work.

£240 million Get Britain Working package to include work, skills and health support for disabled people and long-term sick.
Benefit reform to be accelerated from this autumn to give more people access to employment support.

Ahead of the Budget, the Chancellor has unveiled a £240 million cash-injection to accelerate the rollout of local services to help people back into work and drive down inactivity.

The intervention comes as stark figures show that the UK remains the only G7 country that has higher levels of economic inactivity now than before the pandemic, with 2.8 million people out of work due to long-term sickness, which is holding back productivity and stunting growth.

The funding is partly set to go towards boosting the rollout of Get Britain Working “trailblazers” in local areas, which will bring together and streamline work, health, and skills support to disabled people and those who are long term sick.

These trailblazers will focus on reaching people who are not normally in touch with the system, by enabling local areas to help them access existing support in skills, education, employment, or health but also testing new early interventions targeted at the specific barriers they are facing to work.

Recognising that poor health is a key driver of economic inactivity, these trailblazers will also ensure work and skills support is better integrated with the health service, to ensure people get the joined-up health and employment support they need to get back into work and stay in work.

The government will also work in close partnership with mayors to develop these trailblazers, to ensure these local services are tailored to meet the unique employment and inactivity challenges in different areas.

Benefit reform is also set to be accelerated this year, with 800,000 people on the old Employment and Support Allowance (ESA) benefit to be moved onto Universal Credit (UC) from this autumn instead of 2028.

This move will bring more people into a modern benefit regime, continuing to ensure they are supported to look for and move into work.

It comes ahead of the Get Britain Working White Paper – set to be unveiled later in the Autumn – which will set out the government’s ambitious plans for reform to break down barriers to work.

The reforms will be underpinned by an approach of high expectation and high support as well as a belief in mutual obligations: the responsibility to work if you can, backed up by proper support and real opportunities to get a decent job.

Chancellor of the Exchequer, Rachel Reeves said:

Due to years of economic neglect, the benefits bill is ballooning. We will build a Britain where people who can work, will work, turning the page on the recent rise in economic inactivity and decline and towards a future where people have good jobs and our benefits bill is under control.

Work and Pensions Secretary, Liz Kendall said:

Millions of people have been denied the opportunity to build a better life. This includes one-in-eight young people who have had their hopes of a brighter future dashed and written off before they’ve even begun.

Through our Get Britain Working plan, we will ensure every young person is supported to find earnings or learning, while our new jobs and careers service will transform opportunity for all, as we deliver the fundamental reforms needed to tackle spiralling inactivity, grow the economy, and take our first steps to our ambitious 80 per cent employment rate.

Unlocking barriers to work and tackling inactivity is at the heart of plans to improve living standards for everyone across the country and delivering on the central mission of driving growth.

By creating more good jobs through investment, reforming employment support, fixing our NHS, making work pay through our Employment Rights Bill, and devolving power out of Westminster as set out in our forthcoming English Devolution White Paper, we will ensure many more people can benefit from the dignity and purpose that comes with work.

These reforms will support more people into jobs alongside the Plan to Make Work Pay, that will make sure that those jobs provide security, a decent wage, and the genuine two-sided flexibility needed so people can thrive at work.

This plan is central to the Government’s efforts to repair the damage done to the economy, fix its foundations, and rebuild Britain so it becomes a country of growth, not decline.

Shevaun Haviland, Director General of the British Chambers of Commerce said:

The high number of working age people who are economically inactive is a real and daily concern to employers. Many firms are struggling to fill job vacancies, and this is constraining their operations and profitability.

We welcome further cash investment into tackling economic activity. Businesses will be pleased to hear about plans to improve skills, health and employment support for people who want to work – alongside support for young people to start and build their careers.

It’s important these changes are delivered quickly to help firms develop thriving workforces, so they can grow and invest further in the years to come.

Published 28 October 2024

MIL OSI United Kingdom –

January 25, 2025

MIL-OSI: Correction: cBrain lowers expected yearly revenue growth to 10-15%, but maintains EBT margin of 24-30%

Source: GlobeNewswire (MIL-OSI)

Company Announcement no. 10/2024

cBrain lowers expected yearly revenue growth to 10-15%, but maintains EBT margin of 24-30%

Copenhagen, November 28, 2024

cBrain (NASDAQ: CBRAIN) is executing its international growth plan with a financial goal of reaching total revenue of 350 million DKK in 2025. This goal is anchored in two primary revenue streams, referred to as “Base” and “Stepping stones”.

The “Base” stream aims to achieve annual revenue growth of 10-15% by strengthening and expanding existing operations and customer relationships. In parallel, the “Stepping Stones” initiative aims to lift annual revenue growth to 30%, by increasing contract values and winning larger international contracts.

cBrain continues to execute its growth strategy, building a robust pipeline of major opportunities. This is facilitated by a growing number of international pilot projects that set the stage for significant “Stepping Stones” achievements.

In early 2024, cBrain anticipated some of these opportunities, particularly in Germany and the U.S., to yield significant revenue in the second half of the year. cBrain remains highly active in these pursuits and has added further opportunities during the year.

However, not unusually with larger government procurement, delays in decision making mean that cBrain estimates less than a 50% likelihood of substantial revenue from larger international projects materializing in Q4. Consequently, cBrain adjusts its 2024 revenue growth forecast to 10-15%, down from the initial estimate of 20-25%.

In alignment with business planning, cBrain has earmarked financial investments to support “Stepping Stones” projects in Germany and the U.S. Since these projects have not yet materialized, these reserved funds have not been deployed. This provides a positive impact on earnings. cBrain, therefore, maintains its EBT (Earnings Before Tax) guidance at 24-30%.

—

Larger international projects are often structured so that F2 standard software licenses form the majority of the contract value. Due to financial standards for software revenue recognition, larger international orders may, as a result, introduce greater variability in revenue patterns over time.

As cBrain is currently pursuing global opportunities across the USA, Europe, Africa, the UAE, and India, some of these opportunities may still materialize during the fourth quarter, with a positive affect on this year’s revenue.

Best regards

Per Tejs Knudsen, CEO

Inquiries regarding this Company Announcement may be directed to

Ejvind Jørgensen, CFO & Head of Investor Relations, cBrain A/S, ir@cbrain.com, +45 2594 4973

Attachment

Company Announcement no. 2024-10 (forecast of delayed international project)

The MIL Network –

January 25, 2025

MIL-OSI: Array Acquires Payitoff to Strengthen its Intelligent Debt Management Offerings

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Oct. 28, 2024 (GLOBE NEWSWIRE) — Money 20/20 Conference – Array, a leading embedded consumer products platform, announced the acquisition of Payitoff, a pioneer in embedded debt guidance solutions. This acquisition fortifies Array’s position as the industry leader in intelligent debt management solutions, empowering financial institutions, fintechs, and digital brands with seamless, no-code debt management tools that improve consumer outcomes, accelerate growth efforts, and unlock new revenue streams.

Payitoff was founded by Bobby Matson, who created the company out of a personal need to manage his family’s student loans and other debt in order to buy a home. His team first launched student loan management before broadening its offerings to encompass a comprehensive suite of debt management tools. These user-friendly, embeddable tools seamlessly integrate into digital platforms without the need for complex coding, empowering financial institutions, fintechs, and digital brands to elevate their consumers’ financial experiences.

The company has gained significant market traction, including wins with Earnest, EarnUp, Greenpath, LendKey, Splash Financial, and U.S. Bank, resulting in over 200,000 loans managed by Payitoff with a combined value of over $1.5 billion. These companies value the ability to add debt management features into their digital experience without the need to build the product themselves.

Consumers can quickly link their debt accounts, explore repayment options, choose the most suitable plan, and apply—all within a few minutes. For student loans, a recent analysis found that users can save an average of $323 per month* that can be invested in other ways.

“Financial institutions and other providers of financial products in digital experiences realize that helping their consumers better understand and manage their debt is a powerful way to increase deposits, revenue, and brand loyalty,” said Martin Toha, Founder and CEO of Array. “We acquired Payitoff because our companies have a shared vision to provide seamless, embeddable products that fuel financial progress. This provides our clients with the best of all worlds: bringing valuable products to market faster without additional resources and overhead.”

“The opportunity for impact between Array and Payitoff is massive,” said Bobby Matson, CEO of Payitoff. “Student loan payments resumed a year ago, and with delinquencies starting to impact borrowers’ credit this month, the timing of this acquisition couldn’t be more critical. Array’s reach, combined with our debt management tools, will empower financial institutions and fintechs to help their consumers manage debt and save thousands—all with a seamless integration.”

Payitoff Expands Array’s Private-Label Offerings
The Array platform helps companies drive engagement and revenue by monetizing traffic private-labeled financial, identity and privacy protection products that build brand loyalty with users and help them take control of their financial lives. These products include:

My Credit Manager helps consumers view, understand, and manage their credit information. They can receive score change alerts, interact with a score simulator, and view credit score factors and debt analysis components.
Identity Protect includes identity monitoring, insurance, and restoration services that help keep users safe from fraud. It also features dark web monitoring, alerts, and identity theft restoration services.
Privacy Protect offers consumers the most effective data removal – more than 200 million records to date and assisting more than 4 million individuals.
Subscription Manager is an embeddable, private-label app that helps financial institutions, fintechs, and digital brands attract and retain consumers by providing insight into and control over recurring payments.
BuildCredit Rent helps consumers build credit or establish credit history when they opt to share their rent payments with a credit bureau.

*Represents actual average savings of borrowers who linked their account with Payitoff and qualified for a federal repayment plan. The sample is based on an aggregated set of data representing over $1.5 billion in loan volume across 215,000+ loans on the Payitoff platform.

About Array
Array fuels financial progress for many of the world’s leading fintechs, financial institutions, and digital brands with a suite of private-label fintech solutions that can be easily embedded. Array drives engagement and revenue for clients by helping them stand out in a crowded market and forge deeper relationships with their customers. More than a suite of products, we’re building a platform to help consumers own their financial future. Array was founded in 2020 by Martin Toha and its investors include Battery Ventures, General Catalyst, and Nyca Partners. To learn more visit www.array.com.

Media Contacts

Kurt Foeller, Array
press@array.com

The MIL Network –

January 25, 2025

MIL-OSI Global: Trump’s anti-Haitian rhetoric reflects America’s long-standing racism against Haiti and its people

Source: The Conversation – USA – By Thurka Sangaramoorthy, Professor of Anthropology, American University

Pastor Dieufort Fleurissaint denounces the hateful rhetoric aimed at Haitian migrants in Springfield, Ohio, during a Sept. 24, 2024, rally in Boston. Jessica Rinaldi/The Boston Globe/Getty Images)

Since 2021, about 15,000 Haitians have found new lives in Springfield, Ohio, after fleeing the violence of Haiti, their native country.

But a wave of baseless rumors and hate, amplified by former President Donald Trump and his running mate, U.S. Sen. JD Vance, has shattered that sense of safety. Many of the city’s Haitian immigrants are left questioning whether their vision of an American dream is still possible.

Frightened and worried, many Haitians say they are fearful of going outside and staying in Springfield.

The morning after the presidential debate, a Haitian woman who had moved to Springfield six years ago told a newspaper reporter that “they’re attacking us in every way.”

In addition to the anxiety, the woman, who asked not to be identified, said that her car windows had been broken in the middle of the night. “I’m going to have to move because this area is no longer good for me,” the woman said. “I can’t even leave my house to go to Walmart. I’m anxious and scared.”

Trump’s inflammatory statements, which have included wrongful allegations of Haitians eating pets, are part of a broader historical pattern of racism and anti-Black xenophobia in the U.S. aimed at Haitians. Days after the debate, Trump further explained how he would start his mass deportation program in Springfield. “Illegal Haitian migrants have descended upon a town of 58,000 people, destroying their way of life,” Trump said.

The comments have not only stoked existing racial tensions but have also sparked racist discourse and violent threats against Haitians across the country.

As a scholar of migration who has studied Haitian immigrants in the U.S. for over 25 years, I have seen how Haitians, as Black immigrants, are doubly marginalized, by not only the structural racism embedded in U.S. immigration policies but also the broader societal racism experienced by Black Americans.

In my view, Trump’s baseless allegations reflect America’s deeply rooted history of systemic racism against Haiti and its people.

A flawed history

The roots of anti-Haitian racism in the U.S. can be traced to the Haitian Revolution in 1804 in which Black Haitians who were enslaved rose up and overthrew the French colonial government.

Haiti became the first independent Black republic in the world, and the country’s independence terrified many in the U.S., especially white slaveholders. They feared the revolution might inspire slave revolts at home.

Illustration depicting the Haitian Revolution led by Toussaint Louverture.
Bettmann/Getty Images

For much of the 19th century, the U.S. refused to recognize Haiti as a legitimate nation. It wasn’t until 1862, during the Civil War, that the U.S. finally established diplomatic relations with the country.

But the U.S. continued to exploit Haiti for its own economic and military interests, occupying the country with the military from 1915 to 1934. During this period, the U.S. controlled Haiti’s government and finances, installed a pro-American president and helped establish a brutal military force.

The occupation worsened racial and economic inequality in Haiti and further destabilized the nation.

This history of exploitation and interference has had long-lasting effects on Haiti’s ability to develop economically and politically, a situation exacerbated by continued U.S. intervention throughout the Cold War era.

During the nearly 30-year dictatorships of François “Papa Doc” and Jean-Claude “Baby Doc” Duvalier between 1957 and 1986, for example, the U.S. government provided approximately US$900 million in financial support to these repressive regimes, despite their notorious human-rights abuses.

Anti-Black immigration policies

All the history of U.S. involvement in Haiti set the stage for the mass migration of Haitians to the U.S. since the early 1960s.

Over the years, about 200,000 Haitians have sought to escape violence and poverty to the U.S.

Those with resources, such as the Haitian elite and middle class, migrated legally, settling in New York and Miami. Many of them organized ways to send aid to Haiti and brought attention to human-rights abuses being committed by the Duvalier regimes.

Poor Haitians soon followed, arriving by crude boats.

In September 1963, the first boatload of Haitian refugees landed in Miami. But instead of finding freedom, all 23 Haitians were denied asylum and sent back to Haiti by the U.S. immigration authorities.

Since then, Haitians arriving by boat have faced arrest, detention, asylum denials and deportation as successive U.S. governments refused to recognize the political repression in Haiti. Instead, Haitians were labeled economic migrants who sought a better standard of living and, as such, were not eligible for asylum.

From 1981 to 1991, for instance, 433 boats carrying approximately 25,580 Haitians were intercepted by U.S. immigration authorities. Only 28 people were allowed to pursue refugee claims.

The Haitian experience in the US

Often portrayed by white policymakers as disease carriers and criminals, Haitian immigrants have long suffered discrimination and dehumanization in the U.S.

In the 1980s, during the HIV crisis, U.S. health officials wrongly labeled Haitians as high-risk carriers of the virus, reinforcing harmful racial and ethnic stereotypes.

Despite a lack of scientific evidence, Haitians were stigmatized as a group, leading to economic and social exclusion within the U.S. Many Haitians lost jobs, housing and faced threats of violence simply because of their nationality and ethnicity.

My research has shown this portrayal of Haitians as dangerous and undesirable persists today, as reflected in Trump’s and Vance’s recent claims. The narrative of immigrants eating pets and spreading diseases is a recycled trope in American history, used by white conservative politicians to stoke fears about foreigners to reinforce white supremacy.

Historically, these kinds of claims have been used to justify exclusionary immigration policies and racial violence against nonwhite populations.

A group of Haitian Americans in Springfield, Ohio, listen to area residents denounce the town’s growing Haitian population during a public meeting on Sept. 24, 2024.
Dominic Gwinn/Middle East Images /Getty Images

The accusations against Haitians in Springfield have not only triggered immediate threats of violence but have also reinforced deep-seated, anti-Black xenophobia that continues to plague U.S. society.

In recent years, hate speech and attacks against Black immigrants, including Haitians, have been on the rise. Black immigrants, regardless of their legal status, face higher rates of deportation and are more likely to be targeted than white immigrants by law enforcement.

Addressing anti-Haitian racism

The allegations made by Trump and Vance represent a dangerous escalation of rhetoric that has real-life consequences for Haitians in the U.S.

The demonization of Haitians in Springfield is not just a political ploy – it is part of a broader strategy to uphold systems of exclusion that have historically been used to marginalize Black people, both immigrants and citizens.

Thurka Sangaramoorthy receives funding from the National Institutes of Health.

– ref. Trump’s anti-Haitian rhetoric reflects America’s long-standing racism against Haiti and its people – https://theconversation.com/trumps-anti-haitian-rhetoric-reflects-americas-long-standing-racism-against-haiti-and-its-people-240975

MIL OSI – Global Reports –

January 25, 2025

MIL-OSI Europe: Enhanced partnership in trade and the digital and green transition were discussed during Nigerian Vice President’s visit to Sweden

Source: Government of Sweden

Enhanced partnership in trade and the digital and green transition were discussed during Nigerian Vice President’s visit to Sweden – Government.se

On 17–18 October, Nigerian Vice President Kashim Shettima visited Sweden to enhance cooperation in trade and investment, regional security and global issues. Minister for Foreign Affairs Maria Malmer Stenergard hosted the visit, which is an important step in strengthening the ties between the countries – not least by exploring new opportunities for cooperation in business and innovation.

When Nigerian Vice President Kashim Shettima visited Sweden, Minister for Foreign Affairs Maria Malmer Stenergard hosted the visit.

Photo: Frida Drake/Government Offices
Minister for International Development Cooperation Benjamin Dousa had a separate meeting with and Minister of Communications, Innovation and Digital Economy Bosun Tijani.

Photo: Frida Drake/Government Offices
Minister for Energy, Business and Industry and Deputy Prime Minister Ebba Busch met Nigerian Vice President Kashim Shettima and discussed trade issues.

Photo: Frida Drake/Government Offices

“Nigeria is undertaking an extensive green and digital transition and there are great opportunities for Swedish companies to contribute. Nigeria is a major regional and global power with a rapidly growing population. It was very valuable to have the chance to discuss enhanced cooperation in trade with Vice President Shettima, who also demonstrated impressive knowledge of Swedish history,” said Ms Malmer Stenergard.

Nigeria is an important trade partner to Sweden in sub-Saharan Africa and is expected to be the world’s third most populous country by 2050. Sectors such as energy, information and communication technologies, environmental technology, urban planning and infrastructure hold special interest – areas in which Sweden has much to offer. At present, around 40 Swedish companies operate in Nigeria and provide solutions ranging from 5G-technology and sustainable transport to renewable energy. This cooperation is paving the way for further Swedish investments and partnerships in the country.

“As a forerunner in an IT-driven economy in various sectors, Nigeria is well-positioned to become West Africa’s technological hub. There are numerous newly started businesses and technological development and innovation centres that showcase a rapidly growing industry. This is an opportunity that Swedish companies cannot afford to miss,” said Minister for International Development Cooperation Benjamin Dousa.

Mr Shettima and his delegation met with several Swedish companies and other key actors during their visit to Sweden. The delegation included Executive Governor of Plateau State Caleb Manasseh Mutfwang, Nigerian Minister of Foreign Affairs Yusuf Tuggar and Minister of Communications, Innovation and Digital Economy Bosun Tijani.

Mr Shettima was also received by the Crown Princess and met with Prime Minister Ulf Kristersson, where issues regarding enhanced exchange and common global challenges were discussed. He also met with Minister for Energy, Business and Industry and Deputy Prime Minister Ebba Busch to discuss trade issues. Trade and investment, regional security and global issues were discussed during a lunch with Ms Maria Malmer Stenergard. Mr Dousa had a separate meeting with Mr Tijani.

MIL OSI Europe News –

January 25, 2025

MIL-OSI USA: This Week in NJ – October 25th, 2024

Source: US State of New Jersey

Governor Murphy Highlights More Than $1 Billion Investment in Child Care Sector

Governor Phil Murphy highlighted that his Administration has invested more than $1 billion in expanding access to high-quality, affordable child care across New Jersey. The Governor also announced an additional $17 million in funding for the New Jersey Economic Development Authority (NJEDA) Child Care Facilities Improvement Program. With these new resources, New Jersey is dedicating more than $140 million to improve child care infrastructure, representing one of the largest investments of any state in the country. The announcement was made at a child care center in West Orange that is expanding access to services thanks to funding from the NJEDA.

Building on the Murphy Administration’s comprehensive strategy to support the state’s vital child care sector, the NJEDA’s Child Care Facilities Improvement Program provides grants to eligible child care providers for improvements that contribute to high quality early childhood learning environments. Through the program, which awards grants of up to $200,000, the NJEDA has approved $85 million in grants to over 400 child care centers that collectively enroll over 34,000 children and employ over 8,500 staff. With the inclusion of new funding announced, the NJEDA now anticipates another 200 centers will receive awards, bringing the total to more than 600 child care centers across all 21 New Jersey counties. Nearly a third of all awards are to centers located in Opportunity Zones.

“Affordable, exceptional child care is a vital part of a stronger and fairer New Jersey economy, and the increased funding announced today will strengthen our state’s economic security and provide equitable opportunities to working parents,” said Governor Phil Murphy. “Increased access to high-quality child care allows more parents to return to the workforce, bolstering New Jersey’s economic growth and competitiveness. Thank you to the Biden-Harris Administration, who have provided record-high federal funding to expand access to child care, health care, and other critical resources for families in the Garden State.”

With the additional $17 million in Federal American Rescue Plan State Fiscal Recovery Fund funding announced, the NJEDA anticipates being able to approve all eligible child care centers that applied to Phase One of the program, which is no longer accepting new applications. A significant focus of the program is expanding or unlocking capacity within child care centers, especially for infants and toddlers. All construction work is delivered by New Jersey Department of Labor Registered Public Works Contractors and subject to prevailing wage and affirmative action monitoring.

New Jersey Slated to Get a Total of $168M for Water Infrastructure

The U.S. Environmental Protection Agency (EPA) announced $3.6 billion in new funding under the Biden-Harris Administration’s Bipartisan Infrastructure Law (BIL) to upgrade water infrastructure and keep communities safe. New Jersey is slated to get more than $168 million for drinking water and wastewater improvements – including the $44 million that was announced as part of EPA’s announcement of the Lead and Copper Rule Improvements earlier this month. This BIL funding will help communities across the state upgrade water infrastructure that is essential to safely managing wastewater, protecting local freshwater resources, and delivering safe drinking water to homes, schools, and businesses.

These Bipartisan Infrastructure Law funds will flow through the Clean Water and Drinking Water State Revolving Funds (CWSRF and DWSRF), a long-standing federal-state water investment partnership. This multibillion-dollar investment will fund state-run, low-interest loan programs that address key challenges in financing water infrastructure. This announcement includes allotments for New Jersey’s Bipartisan Infrastructure Law Clean Water General Supplemental funds totaling $101 million, Emerging Contaminant funds totaling $8.7 million, and $13.6 million in funds under the Drinking Water Emerging Contaminant Fund.

“We are grateful to the Biden-Harris Administration, New Jersey’s congressional delegation, and the Environmental Protection Agency for their continued support in helping us build a cleaner and healthier Garden State through the Bipartisan Infrastructure Law,” said New Jersey Governor Phil Murphy. “This newly announced funding will help New Jersey communities with the vital tasks of ensuring that everyone in New Jersey has access to clean, safe drinking water and protecting and improving water quality throughout the state. These critical investments in our environmental infrastructure will help protect our citizens from lead and forever chemicals in drinking water, support proper management of wastewater and stormwater to protect our surface and ground waters, and create good-paying jobs for New Jerseyans.”

Governor Murphy Announces Planned Innovation Center Based in Newark

Governor Phil Murphy announced that the New Jersey Economic Development Authority (NJEDA) and the New Jersey Innovation Institute (NJII), a corporation of the New Jersey Institute of Technology (NJIT), have launched the NJII Venture Studio, the state’s latest Strategic Innovation Center (SIC). The NJII Venture Studio will focus on accelerating and commercializing intellectual property with a focus on high technology and information technology developed by NJIT, NJII and NJIT’s corporate partners, as well as other academic institutions who contribute to the advancement of the industry. This will be the seventh SIC in New Jersey announced under the Murphy Administration.

“Since I took office, my administration has been laser focused on positioning New Jersey as a national leader in innovation and technology development,” said Governor Phil Murphy. “The NJII Venture Studio, our seventh Strategic Innovation Center, will provide aspiring entrepreneurs with access to cutting-edge technology and the chance to collaborate with industry experts. This exciting initiative reinforces New Jersey’s reputation as a hub for innovation and research and the tremendous expertise within our state’s research universities.”

NJII, a non-profit subsidiary corporation established by NJIT in 2014, will operate and manage the Studio. The NJEDA and NJII have entered into a non-binding term sheet to establish the creation, funding, and management of the Venture Studio with an opportunity to make equity investments into participating companies. The Studio, which will be located in the Paul Profeta Center for Innovation and Entrepreneurship in Newark, will seek to launch two to three start-ups a year over a four-year period.

The Venture Studio will provide emerging companies with necessary business training, operating services, physical space, and management guidance to transform their research into commercially viable products and services. Pending approval by its Board, the NJEDA intends to invest $5.8 million into the project on a 1:1 basis with NJII, with program funding for the Venture Studio totaling $11.6 million.

Lt. Governor Way, Attorney General Platkin, and OHSP Director Doran Announce Safeguards to Protect the Right to Vote During the 2024 General Election

Lieutenant Governor Tahesha Way, Attorney General Matthew J. Platkin, and New Jersey Office of Homeland Security and Preparedness (NJOHSP) Director Laurie Doran announced that the State of New Jersey will be taking a multi-pronged approach to help ensure that the 2024 General Election is fair, transparent, secure, and runs smoothly. Among the efforts highlighted are the Division of Elections Voter Information project and the Department of Law and Public Safety’s (LPS) Voter Protection Initiative.

Presidential general elections see the highest voter participation numbers, and it is important for voters to know what to expect. New Jersey law contains many checks and balances to protect the right to vote, and the State has implemented measures that prioritize voting integrity and safety.

“As chief election official, I am proud to work with my state and federal law enforcement and security colleagues to support our county election officials as they administer free and fair elections for all New Jersey voters,” said Lieutenant Governor Tahesha Way, who leads the New Jersey Division of Elections in her capacity as Secretary of State. “Together, we ensure that our elections are safe, secure, and free from interference. Every New Jersey voter can prepare to participate in this election by visiting vote.nj.gov and making their plan to vote.”

“New Jersey is fully prepared to quickly and decisively identify and resolve any issues related to voting,” said Attorney General Matthew J. Platkin. “Voting is the cornerstone of our democracy and a fundamental right. We will do everything in our power to ensure every eligible voter can exercise their right to participate in the democratic process without interference.”

“Year round, the New Jersey Office of Homeland Security and Preparedness collaborates with local, state, and federal partners through the Election Security Task Force to protect our elections and uphold our democratic processes,” said NJOHSP Director Laurie Doran. “As we prepare for the 2024 presidential election, NJOHSP and the Task Force are focused on ensuring New Jersey’s public safety and election officials are equipped to handle all threats and hazards, whether physical or cyber, foreign or domestic.”

New Jersey Board of Public Utilities Announces Adoption of Minimum Filing Requirements for Medium-and-Heavy-Duty Electric Vehicles

The New Jersey Board of Public Utilities (NJBPU) announced on Wednesday the adoption of minimum filing requirements (MFRs) that direct the state’s investor-owned electric distribution companies (EDCs) to propose programs to expand charging access for medium-and-heavy-duty (MHD) electric vehicles (EVs) and fleets. The expansion of New Jersey’s EV charging ecosystem will catalyze the ongoing clean transition of the state’s fleet, yielding significant greenhouse gas (GHG) emissions reductions within the state’s transportation sector and improving localized air quality.

New Jersey’s transportation sector accounts for nearly 40% of the state’s net GHG emissions, with MHD trucks and busses emitting an outsized share of those emissions. Low-income neighborhoods and communities of color are more likely to be exposed to these pollutants due to their disproportionate proximity to freight corridors, ports, and distribution centers. The adopted MFRs allow utilities to provide additional “bonus” incentives for overburdened municipalities and overburdened communities adjacent to Freight EV Corridors, as well as small businesses.

“Today’s announcement by the BPU is a key part of my Administration’s whole-of-government approach to reducing harmful emissions from the transportation sector that negatively impact the health of our residents,” said Governor Phil Murphy. “Along with New Jersey’s action on Advanced Clean Trucks and the Clean Corridors Coalition, we are building a robust charging infrastructure for a clean transportation future.”

“Under Governor Murphy’s leadership and in coordination with New Jersey’s EDCs, the NJBPU remains at the forefront of advancing smart, clean transportation initiatives and infrastructure that provide considerable health and environmental benefits,” said NJBPU President Christine Guhl-Sadovy. “These benefits are especially vital to the overburdened communities that have borne the brunt of air pollution and its health effects for far too long.”

MIL OSI USA News –

January 25, 2025

MIL-OSI Global: Class identity: why fancy freebies are a bigger political problem for this Labour government than its Tory predecessors

Source: The Conversation – UK – By Vladimir Bortun, Lecturer in Politics, University of Oxford

While much of the intense media coverage of the UK government’s freebies scandal might be attributable to overzealous scrutiny by a predominantly right-of-centre printed press, there is at least one important issue at the heart of all this.

It should be acknowledged that the gifts are in line with existing regulations – and also arguably less controversial than some of the donations received by members of former Conservative governments. But this Labour government sold itself as something different.

Several frontbench figures, including prime minister Keir Starmer and deputy prime minister Angela Rayner focused heavily on their working-class credentials ahead of the election. They were doing so to reinforce the message that they are infinitely more in tune with regular people than the Tories.

Several Labour ministers have accepted donations and freebies from big business and wealthy individuals. Lord Alli lent Starmer his £18m London flat and a New York property to Rayner for a holiday. Several Labour MPs were given tickets to Taylor Swift concerts, and perhaps more importantly, £4 million was donated to the Labour party by Quadrature – a tax-haven-based hedge fund with shares in the arms manufacturing, private healthcare and fossil fuel industries.

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The obvious question is why these companies and wealthy individuals have made these donations and what they expect in return. People don’t make political donations out of the kindness of their hearts. They often expect something in return, whether in the form of a seat in the House of Lords or a lucrative state contract.

Even in cases where there is no reciprocity, there are deeper questions of professional and political ethics that arise from donations. And fair or not, those questions are more pressing for a Labour government.

There is, first of all, a matter of perception during a cost of living crisis. Labour MPs have just voted to keep the two-child benefit cap and remove universal winter fuel payments. Against this backdrop, it’s not a stretch to suggest accepting glamorous gifts creates a distance between lawmakers and the people they govern.

But beyond that perception is the fact that living a privileged life may have a material effect on an MP’s outlook. There is a significant body of evidence showing that upward social mobility leads people towards more rightwing views on the economy.

That may be particularly true of politicians. For this group, the trajectory is the most extreme. If you start from a working-class position in society and end up being part of the group that effectively leads that society, your vantage point could not be more different. You are less likely to try to change the status quo that is now the source of your own social and financial benefits.

To be fair, research my colleagues and I conducted shows that working-class origins have a lingering effect on an MP’s outlook when they enter parliament. They are more likely to take an interest in issues that are important to working-class voters, for example.

But this effect is diluted by party discipline, such as when MPs are whipped to vote in a certain way (such as on benefits). Social mobility, and in particular a simmering angst about falling back down the social ladder, also shapes these MPs’ decisions.

Closing the experience gap

It doesn’t have to be this way. In the 1980s, one of the most leftwing and working-class Labour MPs at the time, Terry Fields, ran and won an election on the slogan “a worker’s MP on a worker’s wage” – pledging to only draw a salary equivalent to a fireman’s and to donate the remainder.

While this could be dismissed as performative populism from a politician looking to prove that he’s a “man of the people”, there is a deeper rationale at work here. Arguably, you can’t truly represent the interests of working-class people if you live in considerably better material conditions, cut off from the daily experience and living standards of those people.

How can you fully understand what working-class people and communities go through and, thereby, what kind of policies they need, if you live in a parallel reality to theirs?

This is not to argue that MPs should give up their salaries or that they’re incapable of empathy, but it does show why freebies are such a glaring problem for a new government.

Working-class people have, themselves, indicated that this experience gap matters to them. Their political alienation over the past few decades has been fuelled by their sense that they do not recognise themselves in the current political elite and the inequality-enhancing policies the elite have been enacting.

The last election recorded one of the highest abstention rates (and according to at least one estimate, actually the highest) since the introduction of universal suffrage.

And should a political party remain unmoved by those statistics, there is the small matter of electoral survival. Taken more cynically, working-class communities have become the electoral battlegrounds of the modern era.

There are not many promising signs so far that the new Labour government is up to the task of representing the working class once again – even the recent workers’ rights legislation has been criticised as falling short by some of the trade unions. And while there’s a long way to go before we know if the freebies scandal will end up costing Labour support at the next election, it certainly won’t be counted as a bonus.

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

– ref. Class identity: why fancy freebies are a bigger political problem for this Labour government than its Tory predecessors – https://theconversation.com/class-identity-why-fancy-freebies-are-a-bigger-political-problem-for-this-labour-government-than-its-tory-predecessors-241619

MIL OSI – Global Reports –

January 25, 2025

MIL-OSI: First Northwest Bancorp and First Fed Bank Announce Consent Order Termination and Quarterly Shareholder Dividend

Source: GlobeNewswire (MIL-OSI)

PORT ANGELES, Wash., Oct. 28, 2024 (GLOBE NEWSWIRE) — First Fed Bank (the “Bank”), the wholly owned subsidiary of First Northwest Bancorp (the “Company”) (NASDAQ: FNWB), announced that on October 23, 2024, the Federal Deposit Insurance Corporation terminated the Consent Order issued to the Bank that was effective November 21, 2023. The termination of the Consent Order follows the Bank’s successful resolution of the deficiencies in the Bank’s compliance program that was the subject of the Order.

“We are thrilled to announce the termination of the Consent Order. The Board and I want to convey our sincere thanks and appreciation to our entire compliance team who worked so diligently to strengthen our compliance programs. I also want to recognize our Board for their contributions and efforts regarding this process. The fact that we were able to achieve this in 11 months is a testament to the work the entire bank made over the past two plus years to put this chapter behind us. We appreciate the FDIC’s assessment of our compliance management system, and the recognition of our satisfaction of all of the items related to the Order,” stated Matthew P. Deines, Chief Executive Officer.

The Company also announced the Board of Directors of First Northwest Bancorp has declared a quarterly cash dividend of $0.07 per common share. The dividend will be payable on November 22, 2024, to shareholders of record as of the close of business on November 8, 2024.

“We believe quarterly cash dividends are an important component of building shareholder value, and our capital position enables us to continue to pay a dividend at consistent levels,” stated Matthew P. Deines, President and CEO.

About the Company

First Northwest Bancorp (Nasdaq: FNWB) is a financial holding company engaged in investment activities including the business of its subsidiary, First Fed Bank. First Fed is a Pacific Northwest-based financial institution which has served its customers and communities since 1923. Currently First Fed has 16 locations in Washington state including 12 full-service branches. First Fed’s business and operating strategy is focused on building sustainable earnings by delivering a full array of financial products and services for individuals, small businesses, non-profit organizations and commercial customers. In 2022, First Northwest made an investment in The Meriwether Group, LLC, a boutique investment banking and accelerator firm. Additionally, First Northwest focuses on strategic partnerships to provide modern financial services such as digital payments and marketplace lending. First Northwest Bancorp was incorporated in 2012 and completed its initial public offering in 2015 under the ticker symbol FNWB. The Company is headquartered in Port Angeles, Washington.

Forward-Looking Statements

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

Any of the forward-looking statements that we make in this press release and in the other public statements we make may turn out to be incorrect because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Because of these and other uncertainties, our actual future results may be materially different from those expressed or implied in any forward-looking statements made by or on our behalf and the Company’s operating and stock price performance may be negatively affected. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for 2024 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect the Company’s operations and stock price performance.

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

The MIL Network –

January 25, 2025

MIL-OSI: Mimecast fuels leading Human Risk Management strategy in first half of fiscal year

Source: GlobeNewswire (MIL-OSI)

LEXINGTON, Mass., Oct. 28, 2024 (GLOBE NEWSWIRE) — Mimecast, a leading global Human Risk Management (HRM) platform, closed the first half of its fiscal year reaching new revenue heights and citing significant steps toward its vision to transform how organizations manage and mitigate risk. The company started strong with the unveiling of its comprehensive HRM platform; and followed up in the second quarter with two strategic acquisitions, new geographical expansions and a record number of advancements in its technology alliances and partner integrations.

The Mimecast platform secures 27 million end users around the globe across their 42,000+ customers. Customers span more than 100 countries, and on average, each organization uses 4.9 Mimecast services. Mimecast has cemented its standing as an industry-leading security partner trusted by major organizations across the globe.

The value Mimecast delivers for companies was highlighted in the recent Total Economic Impact™ study conducted by Forrester Consulting. Based on Forrester’s interviews and financial analysis, a composite organization experienced benefits of $2.13 million over three years, with $1.53 million in net value and 255% ROI. The news was followed by the announcement that Mimecast was recognized as a strong performer in The Forrester Wave™: Human Risk Management Solutions, Q3 2024 report.

Forging the future of HRM – the next generation of cybersecurity

Early in its fiscal half, Mimecast unveiled its AI-powered, API-enabled Human Risk Management platform. In response to customer and market demand for a more effective way to mitigate risk brought on by employee mistakes and user errors, this new platform provides unprecedented visibility into an organization’s risk profile, scoring users by risk and allowing security teams to educate and protect the riskiest part of their employee base.

A key pillar to the platform is the company’s new human risk awareness training offering, Mimecast Engage™, which is built to redefine how security leaders can manage human risk. Mimecast Engage, the result of the integration of Elevate Security technology acquired in December 2023 with Mimecast’s awareness training product, will soon be available to organizations across the globe.

In an effort to bolster the platform and further protect customers from risks associated with human activity, Mimecast closed two industry-shaping acquisitions in Q2: Code42 and Aware.

“Our momentum over these six months is a testament to our commitment and progress toward charting the future of human risk management,” said Marc van Zadelhoff, Chief Executive Officer of Mimecast, “Our acquisitions and solution enhancements continue to elevate our platform and support our aim of helping businesses of all sizes manage and mitigate human risk. I am also incredibly proud to see the significant progress we’ve made in expanding our tech integrations and channel partners, recognizing the demands of a complex threat landscape and the importance of collaboration on a global level. As the attack surface grows and evolves, so too will Mimecast, remaining one step ahead for our customers.”

Thousands of organizations tapping into Mimecast’s powerful integrations

In Q2, Mimecast further strengthened its partnership with CrowdStrike by integrating Mimecast Advanced Email Security and CrowdStrike Falcon Next-Gen SIEM. Building on the existing integrations of CrowdStrike Falcon^® Insight XDR, CrowdStrike Falcon^® LogScale and CrowdStrike Falcon^® Fusion SOAR, this development provides a robust multifaceted defense strategy for Mimecast customers.

The combination of Mimecast and CrowdStrike Falcon Next-Gen SIEM will empower thousands of organizations to understand a bad actor’s complete attack path, improving their ability to rapidly investigate, detect, and mitigate accurately, and demonstrating the power of combining two leading solutions can effectively tackle the intricate challenges of today’s threat landscape.

Almost one third of Mimecast’s addressable customer base is connected to at least one of Mimecast’s technology alliance partners. In total, Mimecast’s technology integrates into over 300 security products.

Mimecast expands channel partnerships into Mexico

Following successful expansions in France, Singapore, Hong Kong and Malaysia, Mimecast furthered their geographic reach in Q2 by making its industry-leading AI-powered email security solutions available Mexico-wide, including the new Human Risk Management platform.  

With an expanded product portfolio, new revenue opportunities and enhanced credibility, Mimecast’s channel partners can now offer end-to-end protection for their clients in more regions around the world.

Additional expansion on the horizon includes the launch of the Partner ONE MSP Program. Building mutually beneficial partnerships with organizations, this new program extends Mimecast’s market presence to new audiences and provides partners with a range of resources, including enhanced training, ongoing support and market resources.

Innovation underpinned by research

Mimecast continues to conduct leading research into the state of the cybersecurity environment, offering critical insights and guidance on how businesses can prepare for the future.

In August 2024, Mimecast published its most recent Threat Intelligence report. Based on an analysis of more than 1.7 billion messages daily over a six-month period, the report offers unparalleled insight into the current threat landscape as well as new and emerging attack methods and vulnerabilities.

About Mimecast
Mimecast is a leading AI-powered, API-enabled connected Human Risk Management platform, purpose-built to protect organizations from the spectrum of cyber threats. Integrating cutting-edge technology with human-centric pathways, our platform is engineered to enhance visibility. It provides strategic insight that enables decisive action and empowers businesses to protect their collaborative environments, safeguard their critical data and actively engage employees in reducing risk and enhancing productivity. More than 42,000 businesses worldwide trust Mimecast to help them keep ahead of the ever-evolving threat landscape. From insider risk to external threats, with Mimecast customers get more. More visibility. More insight. More agility. More security.

Mimecast and the Mimecast logo are either registered trademarks or trademarks of Mimecast Services Limited in the United States and/or other countries. All other third-party trademarks and logos contained in this press release are the property of their respective owners. 

Press Contacts
Tim Hamilton
Principal Public Relations Manager
+1 603-918-6757
thamilton@mimecast.com

General inquiries
press@mimecast.com

The MIL Network –

January 25, 2025

MIL-OSI: Station70 announces strategic partnership with Fireblocks

Source: GlobeNewswire (MIL-OSI)

NASHVILLE, Tenn., Oct. 28, 2024 (GLOBE NEWSWIRE) — Station70, a leader of security products in the digital asset industry, is excited to announce a partnership with Fireblocks, a leading institutional wallet technology provider. This collaboration aims to deliver advanced disaster recovery services tailored specifically for Fireblocks’ institutional clients. Station70 will add much needed security, and multi-jurisdictional regulatory alignment all while simplifying the technology needs of institutional customers worried about business continuity and disaster recovery of their digital asset keys.

In today’s rapidly evolving digital economy, managing digital assets securely is a top priority for institutions. As the market grows, the need for robust disaster recovery solutions has become more crucial than ever. Station70’s expertise in security and disaster recovery coupled with Fireblocks’ suite of applications to manage digital asset operations come together to address this demand.

This combined solution is designed to safeguard digital assets even in the event of unforeseen incidents, offering institutions a seamless way to manage and recover assets without compromising security. Station70 is the only fully audited platform that enables geographically redundant secure storage options for backup keys and streamlines regulatory compliance globally.

“Partnering with Fireblocks allows us to provide unparalleled disaster recovery services that meet the highest standards of security, compliance and efficiency,” said Adam Healy, CEO and co-founder at Station70. “This collaboration underscores our commitment to ensuring our clients’ digital assets are protected, even under the most challenging circumstances.”

This strategic partnership is a significant step forward for both companies in their mission to provide secure and reliable digital asset services. As institutional adoption of digital assets continues to grow, the need for solutions that combine top-tier security with robust recovery capabilities is more pressing than ever. With Fireblocks’ advanced infrastructure and Station70’s disaster recovery expertise, clients can now achieve peace of mind knowing that their assets are safe and recoverable, no matter what challenges arise.

Inquiries can be directed to media@station70.com.

The MIL Network –

January 25, 2025

MIL-OSI: American Rebel Holdings, Inc. – Champion Safe Co. Announces the Introduction of Two New SAFE GUARD® Models: Sport 20™ and BTC 12™

Source: GlobeNewswire (MIL-OSI)

Provo, Utah, Oct. 28, 2024 (GLOBE NEWSWIRE) — Champion Safe Company (www.championsafe.com) (“Champion”), a subsidiary of American Rebel Holdings, Inc. (NASDAQ: AREB) (“American Rebel”) is excited to announce the reintroduction of the SAFE GUARD^®, brand, with the launch of two new models designed to meet the evolving needs of cost-conscious consumers: the Sport 20 and BTC 12.

Champion Safe Company has been producing industry-leading gun safes with American-made steel since 1999 and their dedication to manufacturing superior quality gun safes has never changed. Champion products offer real security and are built the old-fashioned way: Heavy and tough with thick American, high-strength steel. Champion Safes are “built to a standard and not down to a price” which is why safes manufactured by Champion are built to be the strongest and most secure safes on the market.

Tom Mihalek, CEO of Champion Safe Company since April of 2024 said, “We are excited to bring back the SAFE GUARD^® brand with these two models that cater to different segments of the market. Champion Safe Co. delivered $15.6 million in revenue last year and we believe a reintroduction of SAFE GUARD^® will help to drive expansion in the years to come.”

The Sport 20 and BTC 12 embody the SAFE GUARD^® legacy of affordable, quality protection, and we are confident these safes will meet the expectations of today’s security-focused consumers.”

The Sport 20 is the perfect blend of strength and reliability, offering superior fire protection and security.

Key features include:

Up to 3 layers of fireboard for enhanced fire protection (rated at 1200°F for 30 minutes).
– A durable 14-gauge steel body construction weighing in at 403 lbs.
– A secure locking system with 4 one-inch locking bolts and a UL^® electronic lock.
– Adjustable shelving, deluxe door panel, and long gun storage for versatile organization.
– Hardplate lock protection for added defense against tampering.
– Available in a sleek, textured granite finish.

With its large interior and premium features, the Sport 20 is built to secure firearms and valuables while providing easy access for authorized users. Measuring 28”W x 60”H x 22.5”D, this model delivers uncompromised protection for both home and office use.

The BTC 12 (Bolt-Together Cabinet) brings security with a flexible, lightweight design, ideal for cost-conscious buyers and/or those needing a compact storage solution.

Its standout features include:

– A sturdy 3-point locking system and tamper-proof bolts for enhanced security.
– Rubber-coated racks and adjustable shelving to safely store guns and valuables.
– High-security key lock for simple, effective access control.
– A rugged 16/18-gauge steel construction weighing only 115 lbs.
– Easy assembly with its bolt-together design and a convenient package size of 23.5”W x 65”L x 9”D.

Measuring 21”W x 55”H x 18.5”D, the BTC 12 is perfect for all situations where space is a priority. The textured granite finish offers a modern look while providing robust protection.

The SAFE GUARD^® Sport 20 and BTC 12 will be available for purchase through authorized retailers in 2025.

American Rebel Holdings, Inc., America’s Patriotic Brand (www.americanrebel.com) and the creator of American Rebel Beer (www.americanrebelbeer.com), and a premier manufacturer and marketer of branded safes and security products acquired Champion in July 2022.
—

About Champion Safe Company

Champion Safe Company has been at the forefront of safe manufacturing for over 25 years, offering a range of high-quality safes designed for ultimate security and fire protection. With a commitment to craftsmanship and innovation, Champion Safes are trusted by homeowners, gun owners, and businesses across the nation.

About American Rebel Holdings, Inc.

American Rebel Holdings, Inc. (NASDAQ: AREB) has operated primarily as a designer, manufacturer and marketer of branded safes and personal security and self-defense products and has recently transitioned into the beverage industry through the introduction of American Rebel Beer. The Company also designs and produces branded apparel and accessories. To learn more, visit www.americanrebel.com www.championsafe.com and www.americanrebelbeer.com. For investor information, visit www.americanrebel.com/investor-relations.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. American Rebel Holdings, Inc., (NASDAQ: AREB; AREBW) (the “Company,” “American Rebel,” “we,” “our” or “us”) desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “forecasts” “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements primarily on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include continued increase in revenues, continued compliance with Nasdaq listing requirements, the ability of the Company to introduce new products and gain market shares, actual distribution timing and availability of American Rebel Beer, our ability to effectively execute our business plan, and the Risk Factors contained within our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2023. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law.

Company Contact:
info@americanrebel.com

Investor Relations:
Brian Prenoveau
MZ North America
+1 (561) 489-5315
areb@mzgroup.us

The MIL Network –

January 25, 2025

MIL-OSI: Ascend Learning Appoints Proven Healthcare Technology Leader Dr. Lissy Hu as Chief Executive Officer

Source: GlobeNewswire (MIL-OSI)

Greg Sebasky to Retire, Transition to Role of Chairman of the Ascend Board of Managers in January 2025

Positions Company to Execute on Strategic Healthcare Focus to Deliver
Innovative Learning and Workforce Development Solutions

BURLINGTON, Mass., Oct. 28, 2024 (GLOBE NEWSWIRE) — Ascend Learning, LLC (“Ascend” or “the Company”), a leading learning technology company, today announced the appointment of Dr. Lissy Hu as Chief Executive Officer. Dr. Hu succeeds Greg Sebasky, who is retiring after 10 years as CEO and will transition to the role of Chairman of the Ascend Board of Managers in January 2025.

Dr. Hu has deep experience building and leading transformational healthcare technology companies. She was previously the CEO of CarePort Health, a care coordination technology company she founded in 2012 to improve patient transitions by connecting hospitals and post-acute care providers. In 2020, CarePort Health was acquired by WellSky, where Dr. Hu most recently served as President, Connected Networks, working with providers and payers to optimize post-acute care outcomes across 2,500 hospitals, physician groups, risk-bearing entities and 130,000 post-acute, home and community-based providers.

Ascend Learning has been delivering critical learning solutions to the healthcare industry since 2008. The Company’s offerings, educational content, software, simulation, and analytics, serve students, healthcare and educational institutions, and employers in all 50 states. Each year, Ascend Learning’s products, from testing to certification, enable more than 60% of U.S. nursing school programs and are used by over 300,000 nursing students, more than 245,000 allied health professionals, 100,000 medical students, 145,000 fitness professionals and over 150,000 first responders.

“Over the last 10 years, we have grown the Ascend family of brands thoughtfully, building a market-leading provider of data-driven online learning tools,” said Mr. Sebasky. “As we sharpen our focus on developing and delivering tailored solutions across the healthcare ecosystem, Lissy’s wealth of market experience and track record of driving positive outcomes through leading-edge technology makes her the perfect fit to lead Ascend forward. With Lissy at the helm, I am confident that Ascend will continue to grow, innovate and find new and better ways to help make communities across the U.S. healthier. I look forward to working with her and continuing to support the Ascend team and mission in my role as Chairman beginning in January.”

As communities across the U.S. face shortages of healthcare professionals, aging populations, and rising healthcare costs, Ascend is committed to delivering next-generation technology, content and analytics to train, develop and retain healthcare teams empowered to address these challenges.

“Fundamental to improving patient care is investing in our healthcare teams, and I am excited to further drive Ascend’s success in enabling clients to achieve elevated learner and educator outcomes and to support workers as they progress through their careers,” said Dr. Hu. “Ascend’s innovative learning solutions are needed now more than ever before, and I am honored to join a best-in-class organization and team that have such a significant, positive impact on the entire lifecycle of learning. I look forward to leading Ascend’s next chapter of scalable growth.

“Under Greg’s leadership, Ascend has solidified its position as a clear leader in the tech-enabled learning services market. I thank him for his strategic vision and invaluable contributions, and I look forward to working with him, our clients, our leaders, our employees and the Board to continue accelerating learning and professional success across the country,” continued Dr. Hu.

Dr. Hu earned a Doctor of Medicine from Harvard Medical School, a Master of Business Administration degree from Harvard Business School, and a Bachelor of Arts degree in pre-medical studies and sociology from Columbia University.

About Ascend Learning
Ascend Learning is a leading provider of educational content and software tools for students, educational institutions, and employers. With products that span the learning continuum, Ascend Learning focuses on high-growth careers in a range of industries, with a special focus on healthcare and other licensure-driven occupations. Ascend Learning products, from testing to certification, are used by physicians, emergency medical professionals, nurses, certified personal trainers, financial advisors, skilled trades professionals and insurance brokers. Learn more at www.ascendlearning.com.

Media Contact
V2 Communications for Ascend Learning
ascend@v2comms.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/61335701-5169-4263-8b05-17ec38fc5749

The MIL Network –

January 25, 2025

MIL-OSI: PR – Bitget Reports Strong Q3 2024 Performance, Strengthening Its Position as the 4th Largest Crypto Exchange

Source: GlobeNewswire (MIL-OSI)

VICTORIA, Seychelles, Oct. 28, 2024 (GLOBE NEWSWIRE) — Bitget, a leading global cryptocurrency exchange and Web3 company, has released its Q3 2024 Transparency Report, showcasing significant advancements in user growth, token offerings, and strategic initiatives. With a strong focus on enhancing financial accessibility and advancing blockchain technology, Bitget has reinforced its position as one of the top global players in the crypto industry.

Key Q3 2024 Highlights:

Surpassing 45 Million Users and Strengthening Market Position In Q3 2024, Bitget achieved a milestone by surpassing 45 million registered users globally, placing it as the 4th largest crypto exchange by trading volume. The platform’s user base growth, up by 400% since last year, was fueled by innovative product offerings and expansion into new regions, including Africa, South Asia, and Southeast Asia. The company’s focus on accessibility and user-centric design aligns with its mission of enabling financial freedom for all.
Expanding Token Offerings and Staking Opportunities Bitget added 72 new token listings in Q3, bringing its lineup to over 800 tokens and 900+ spot trading pairs. Among the new listings, POL, DRIFT, WUSD, REEF, and MOTHER stood out with the highest Total Value Locked (TVL) growth. Bitget’s Pre-market platform continued to attract early traders, featuring 12 tokens like CATI, MOCA, HMSTR, DOGS, and ZKL in Q3, with 53,800 traders participating and a cumulative transaction volume of $23 million.
Additionally, Bitget’s PoolX staking platform, launched in April, has become a popular choice among users, offering high-yield staking options. In Q3, PoolX recorded over 94,805 participants, with the total staked amount doubling from Q2 to reach $2.3 billion USD. Popular pools include BGB, BTC, ETH, and USDT, providing users with new avenues to earn rewards on the platform.
Commitment to the TON Ecosystem and Strategic Investments As part of its $30 million joint investment with Foresight Ventures into The Open Network (TON) ecosystem, Bitget has supported the rapid expansion of Telegram-based projects, including DOGS, Hamster Kombat, and Notcoin. With nearly 1 billion Telegram users worldwide, TON’s ecosystem has seen exponential growth, making Bitget a vital entry point for users interested in TON-based projects and decentralized applications.
Strategic Partnership with LALIGA to Drive Web3 Adoption Bitget expanded its footprint in sports by forming a multi-million dollar partnership with LALIGA. This collaboration aims to increase crypto awareness and Web3 adoption across Eastern Europe, Southeast Asia, and LATAM, leveraging LALIGA’s massive global audience to attract a new wave of crypto enthusiasts. This partnership aligns with Bitget’s mission to bring blockchain technology to mainstream audiences.
Enhanced Token-Discovery Through Nansen Collaboration Bitget collaborated with Nansen to refine its token-discovery strategies. By leveraging on-chain data and community insights, Bitget offers traders an advanced toolkit for identifying promising tokens. The strategic approach, combined with Nansen’s analytical tools, led to 240 new token listings since April, making it one of the most active exchanges in early-stage token offerings.

Gracy Chen, CEO of Bitget, commented on the report: “Our growth in Q3 2024 reflects our commitment to creating an accessible, secure, and innovative trading platform for users worldwide. By continuously expanding our offerings, supporting impactful projects, and forming strategic partnerships, Bitget is helping shape the future of blockchain and finance. We remain focused on our mission to drive financial freedom and to empower the next billion users through accessible and user-friendly digital solutions.”

Bitget’s success in Q3 2024 shows its growing influence in the crypto industry, marked by strategic initiatives, innovative products, and a commitment to user engagement. Looking ahead, Bitget is bound to continue its mission of bridging the gap between centralized and decentralized finance while expanding its global reach.

For more information, visit Bitget Blog.

About Bitget

Established in 2018, Bitget is the world’s leading cryptocurrency exchange and Web3 company. Serving over 45 million users in 150+ countries and regions, the Bitget exchange is committed to helping users trade smarter with its pioneering copy trading feature and other trading solutions, while offering real-time access to Bitcoin price, Ethereum price, and other cryptocurrency prices. Formerly known as BitKeep, Bitget Wallet is a world-class multi-chain crypto wallet that offers an array of comprehensive Web3 solutions and features including wallet functionality, token swap, NFT Marketplace, DApp browser, and more.

Bitget is at the forefront of driving crypto adoption through strategic partnerships, such as its role as the Official Crypto Partner of the World’s Top Football League, LALIGA, in EASTERN, SEA and LATAM market, as well as a global partner of Turkish National athletes Buse Tosun Çavuşoğlu (Wrestling world champion), Samet Gümüş (Boxing gold medalist) and İlkin Aydın (Volleyball national team), to inspire the global community to embrace the future of cryptocurrency.

Risk Warning: Digital asset prices are subject to fluctuation and may experience significant volatility. Investors are advised to only allocate funds they can afford to lose. The value of any investment may be impacted, and there is a possibility that financial objectives may not be met, nor the principal investment recovered. Independent financial advice should always be sought, and personal financial experience and standing carefully considered. Past performance is not a reliable indicator of future results. Bitget accepts no liability for any potential losses incurred. Nothing contained herein should be construed as financial advice. For further information, please refer to our Terms of Use.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/661a75c4-26df-4658-b301-5c44925c9290

The MIL Network –

January 25, 2025

MIL-OSI: Coastal Financial Corporation Announces Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

EVERETT, Wash., Oct. 28, 2024 (GLOBE NEWSWIRE) — Coastal Financial Corporation (Nasdaq: CCB) (the “Company”, “Coastal”, “we”, “our”, or “us”), the holding company for Coastal Community Bank (the “Bank”), through which it operates a community-focused bank with an industry leading banking as a service (“BaaS”) segment, today reported unaudited financial results for the quarter ended September 30, 2024, including net income of $13.5 million, or $0.97 per diluted common share, compared to $11.6 million, or $0.84 per diluted common share, for the three months ended June 30, 2024.

Management Discussion of the Quarter

“The third quarter demonstrated strong momentum across both our community bank and CCBX operating segments, despite a still challenging operating environment,” said CEO Eric Sprink. “We saw high quality net loan growth of $92.4 million despite selling $423.7 million in loans. We are implementing strategies to increase fee income and we continue to build out and invest in an infrastructure that is scalable, and that we believe will enable us to be innovative leaders in financial services.”

Key Points for Third Quarter and Our Go-Forward Strategy

Balance Sheet Well Positioned for Lower Rates. Our balance sheet stands in a modestly liability sensitive position as of September 30, 2024, with $1.95 billion of CCBX deposits that contractually reprice lower immediately upon any reduction in the Federal Funds Rate, with $1.09 billion of CCBX loans repricing in 90 days or less following such reduction. The Federal Open Market Committee recently lowered the targeted Federal Funds rate 0.50% on September 19, 2024; a reduction of 0.50% compared to June 30, 2024 and September 30, 2023. The rate decrease came late in the quarter, so the full impact of this and any subsequent rate changes will be reflected in future periods.
Expanding Relationships with CCBX Partners. We continue to focus on expanding product offerings with existing CCBX partners. We believe that launching new products with existing partners positions us to reach a wide and established customer base with modest increase in enterprise risk. Products launched in 2024 with existing partners have gained traction and are growing the balance sheet and increasing income. The pipeline for CCBX is active, although we expect to remain selective in adding new partners to manage risk and capital.
On-going Loan Sales. We sold $423.7 million loans in the quarter ended September 30, 2024 as part of our strategy to balance credit risk, manage partner and lending limits, protect capital levels and move credit card balances to an off balance sheet fee generating model. We are retaining a portion of the fee income for our role in processing transactions on sold credit card balances. This provides an on-going and passive revenue stream with no on balance sheet risk.
Continued Regulatory and Compliance Infrastructure Investments Position Us Well for Next Phase of Growth. We continue to utilize co-sourced personnel as a component of our risk and compliance efforts. This flexible co-sourcing approach allows us to manage the growth of our internal team while also ensuring CCBX has the resources it needs. While we remain 100% indemnified against partner fraud losses, we were encouraged to see fraudulent activity amongst our partners remains low during the current quarter, compared to the same period last year, a positive indicator of our continued investments in our risk infrastructure.
Reorganization and Strengthening of Talent to Accommodate Growth and Plans for the Future. We recently announced the bifurcation of the President of the Bank into two roles, appointing Brian Hamilton as President of CCBX, the Fintech and BaaS segment of the Bank, with Curt Queyrouze serving as President of the community bank and corporate credit.

Third Quarter 2024 Financial Highlights

The tables below outline some of our key operating metrics.

	Three Months Ended
(Dollars in thousands, except share and per share data; unaudited)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Income Statement Data:
Interest and dividend income	$	105,079		$	97,487		$	90,472		$	88,243		$	88,331
Interest expense		32,892			31,250			29,536			28,586			26,102
Net interest income		72,187			66,237			60,936			59,657			62,229
Provision for credit losses		70,257			62,325			83,158			60,789			27,253
Net interest (expense)/ income after provision for credit losses		1,930			3,912			(22,222	)		(1,132	)		34,976
Noninterest income		80,068			69,918			86,955			64,694			34,579
Noninterest expense		65,616			58,809			56,018			51,703			56,501
Provision for income tax		2,926			3,425			1,915			2,847			2,784
Net income		13,456			11,596			6,800			9,012			10,270

	As of and for the Three Month Period
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Balance Sheet Data:
Cash and cash equivalents	$	484,026		$	487,245		$	515,128		$	483,128		$	474,946
Investment securities		48,620			49,213			50,090			150,364			141,489
Loans held for sale		7,565			—			797			—			—
Loans receivable		3,418,832			3,326,460			3,199,554			3,026,092			2,967,035
Allowance for credit losses		(170,263	)		(147,914	)		(139,258	)		(116,958	)		(101,085	)
Total assets		4,065,821			3,961,546			3,865,258			3,753,366			3,678,265
Interest bearing deposits		3,047,861			2,949,643			2,888,867			2,735,161			2,637,914
Noninterest bearing deposits		579,427			593,789			574,112			625,202			651,786
Core deposits ⁽¹⁾		3,190,869			3,528,339			3,447,864			3,342,004			3,269,082
Total deposits		3,627,288			3,543,432			3,462,979			3,360,363			3,289,700
Total borrowings		47,847			47,810			47,771			47,734			47,695
Total shareholders’ equity		331,930			316,693			303,709			294,978			284,450

Share and Per Share Data ⁽²⁾:
Earnings per share – basic	$	1.00		$	0.86		$	0.51		$	0.68		$	0.77
Earnings per share – diluted	$	0.97		$	0.84		$	0.50		$	0.66		$	0.75
Dividends per share		—			—			—			—			—
Book value per share ⁽³⁾	$	24.51		$	23.54		$	22.65		$	22.17		$	21.38
Tangible book value per share ⁽⁴⁾	$	24.51		$	23.54		$	22.65		$	22.17		$	21.38
Weighted avg outstanding shares – basic		13,447,066			13,412,667			13,340,997			13,286,828			13,285,974
Weighted avg outstanding shares – diluted		13,822,270			13,736,508			13,676,917			13,676,513			13,675,833
Shares outstanding at end of period		13,543,282			13,453,805			13,407,320			13,304,339			13,302,449
Stock options outstanding at end of period		198,370			286,119			309,069			354,969			356,359

See footnotes that follow the tables below

	As of and for the Three Month Period
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Credit Quality Data:
Nonperforming assets ⁽⁵⁾ to total assets		1.34	%		1.34	%		1.42	%		1.43	%		1.18	%
Nonperforming assets ⁽⁵⁾ to loans receivable and OREO		1.60	%		1.60	%		1.71	%		1.78	%		1.47	%
Nonperforming loans ⁽⁵⁾ to total loans receivable		1.60	%		1.60	%		1.71	%		1.78	%		1.47	%
Allowance for credit losses to nonperforming loans		311.5	%		278.1	%		253.8	%		217.2	%		232.2	%
Allowance for credit losses to total loans receivable		4.98	%		4.45	%		4.35	%		3.86	%		3.41	%
Gross charge-offs	$	53,305		$	55,207		$	58,994		$	47,652		$	37,879
Gross recoveries	$	4,069		$	1,973		$	1,776		$	2,781		$	1,045
Net charge-offs to average loans ⁽⁶⁾		5.65	%		6.57	%		7.34	%		5.92	%		4.77	%

Capital Ratios:
Company
Tier 1 leverage capital		8.40	%		8.31	%		8.24	%		8.10	%		8.03	%
Common equity Tier 1 risk-based capital		9.26	%		9.03	%		8.98	%		9.10	%		9.00	%
Tier 1 risk-based capital		9.35	%		9.13	%		9.08	%		9.20	%		9.11	%
Total risk-based capital		11.90	%		11.70	%		11.70	%		11.87	%		11.80	%
Bank
Tier 1 leverage capital		9.29	%		9.24	%		9.19	%		9.06	%		8.99	%
Common equity Tier 1 risk-based capital		10.36	%		10.15	%		10.14	%		10.30	%		10.21	%
Tier 1 risk-based capital		10.36	%		10.15	%		10.14	%		10.30	%		10.21	%
Total risk-based capital		11.65	%		11.44	%		11.43	%		11.58	%		11.48	%

⁽¹⁾Core deposits are defined as all deposits excluding brokered and all time deposits.
⁽²⁾Share and per share amounts are based on total actual or average common shares outstanding, as applicable.
⁽³⁾We calculate book value per share as total shareholders’ equity at the end of the relevant period divided by the outstanding number of our common shares at the end of each period.
⁽⁴⁾Tangible book value per share is a non-GAAP financial measure. We calculate tangible book value per share as total shareholders’ equity at the end of the relevant period, less goodwill and other intangible assets, divided by the outstanding number of our common shares at the end of each period. The most directly comparable GAAP financial measure is book value per share. We had no goodwill or other intangible assets as of any of the dates indicated. As a result, tangible book value per share is the same as book value per share as of each of the dates indicated.
⁽⁵⁾Nonperforming assets and nonperforming loans include loans 90+ days past due and accruing interest.
⁽⁶⁾Annualized calculations.

Key Performance Ratios

Return on average assets (“ROA”) was 1.34% for the quarter ended September 30, 2024 compared to 1.21% and 1.13% for the quarters ended June 30, 2024 and September 30, 2023, respectively. ROA for the quarter ended September 30, 2024, increased 0.13% and 0.21% compared to June 30, 2024 and September 30, 2023, respectively. Noninterest expenses were higher for the quarter ended September 30, 2024 compared to the quarters ended June 30, 2024 and September 30, 2023 largely due to an increase in BaaS loan expense, which is directly related to the increase in the amount of interest earned on CCBX loans.

The following table shows the Company’s key performance ratios for the periods indicated.

	Three Months Ended
(unaudited)	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023

Return on average assets ⁽¹⁾	1.34	%	1.21	%	0.73	%	0.97	%	1.13	%
Return on average equity ⁽¹⁾	16.67	%	15.22	%	9.21	%	12.35	%	14.60	%
Yield on earnings assets ⁽¹⁾	10.79	%	10.49	%	10.07	%	9.77	%	10.08	%
Yield on loans receivable ⁽¹⁾	11.43	%	11.23	%	10.85	%	10.71	%	10.84	%
Cost of funds ⁽¹⁾	3.62	%	3.60	%	3.52	%	3.39	%	3.18	%
Cost of deposits ⁽¹⁾	3.59	%	3.58	%	3.49	%	3.36	%	3.14	%
Net interest margin ⁽¹⁾	7.41	%	7.13	%	6.78	%	6.61	%	7.10	%
Noninterest expense to average assets ⁽¹⁾	6.54	%	6.14	%	6.04	%	5.56	%	6.23	%
Noninterest income to average assets ⁽¹⁾	7.98	%	7.30	%	9.38	%	6.95	%	3.81	%
Efficiency ratio	43.10	%	43.19	%	37.88	%	41.58	%	58.36	%
Loans receivable to deposits ⁽²⁾	94.46	%	93.88	%	92.42	%	90.05	%	90.19	%

⁽¹⁾Annualized calculations shown for quarterly periods presented.
⁽²⁾Includes loans held for sale.

Management Outlook; CEO Eric Sprink

“As we look ahead to the fourth quarter and 2025, we remain laser focused on building out our technology and risk management infrastructure to more efficiently support our next phase of growth within CCBX. While the balance sheet re-mix earlier this year resulted in a short-term reduction to income, we continue to make strategic decisions which are enhancing credit quality, generating passive fee income, strengthening our talent and growing relationships with established and prospective CCBX partners all of which are expected to position Coastal to be more profitable in 2025.”

Coastal Financial Corporation Overview

The Company has one main subsidiary, the Bank which consists of three segments: CCBX, the community bank and treasury & administration. The CCBX segment includes all of our BaaS activities, the community bank segment includes all community banking activities, and the treasury & administration segment includes treasury management, overall administration and all other aspects of the Company.

CCBX Performance Update

Our CCBX segment continues to evolve, and we have 22 relationships, at varying stages, as of September 30, 2024. We continue to refine the criteria for CCBX partnerships, are exiting relationships where it makes sense for us to do so and are focusing on larger more established partners, with experienced management teams, existing customer bases and strong financial positions.

We are expanding product offerings with our existing CCBX partners. We believe that launching new products with existing partners positions us to reach a wide and established customer base with a modest increase in regulatory risk given we have already vetted these partners and have operational history. Products launched earlier in the year with existing partners have gained traction and are growing the balance sheet and increasing income. We continue to sell loans as part of our strategy to balance partner and lending limits, and manage the loan portfolio and credit quality. We retain a portion of the fee income for our role in processing transactions on sold credit card balances. This is expected to provide an on-going and passive revenue stream with no on balance sheet risk.

The following table illustrates the activity and evolution in CCBX relationships for the periods presented.

	As of
(unaudited)	September 30, 2024	June 30, 2024	September 30, 2023
Active	19	19	18
Friends and family / testing	1	1	1
Implementation / onboarding	1	1	1
Signed letters of intent	1	0	1
Wind down – active but preparing to exit relationship	0	0	1
Total CCBX relationships	22	21	22

CCBX loans increased $106.9 million, or 7.6%, despite selling $423.7 million loans during the three months ended September 30, 2024 to $1.52 billion, while we continued to enhance credit standards on new CCBX loan originations. In accordance with the program agreement for one partner, effective April 1, 2024, the portion of the CCBX portfolio that we are responsible for losses on decreased from 10% to 5%. At September 30, 2024 the portion of this portfolio for which we are responsible represented $19.8 million in loans.

The following table details the CCBX loan portfolio:

CCBX	As of
	September 30, 2024					June 30, 2024					September 30, 2023
(dollars in thousands; unaudited)	Balance			% to Total		Balance			% to Total		Balance			% to Total
Commercial and industrial loans:
Capital call lines	$	103,924		6.8	%	$	109,133		7.7	%	$	114,174		9.6	%
All other commercial & industrial loans		36,494		2.4			41,731		3.0			58,869		5.0
Real estate loans:
Residential real estate loans		265,402		17.5			287,950		20.4			251,775		21.3
Consumer and other loans:
Credit cards		633,691		41.6			549,241		38.7			440,993		37.3
Other consumer and other loans		482,228		31.7			426,809		30.2			316,987		26.8
Gross CCBX loans receivable		1,521,739		100.0	%		1,414,864		100.0	%		1,182,798		100.0	%
Net deferred origination (fees) costs		(447	)				(438	)				(424	)
Loans receivable	$	1,521,292				$	1,414,426				$	1,182,374
Loan Yield – CCBX ⁽¹⁾⁽²⁾		17.35	%				17.77	%				17.05	%

⁽¹⁾CCBX yield does not include the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements and originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
⁽²⁾Loan yield is annualized for the three months ended for each period presented and includes loans held for sale and nonaccrual loans.

The increase in CCBX loans in the quarter ended September 30, 2024, includes an increase of $139.9 million or 14.3%, in consumer and other loans, partially offset by a $22.5 million, or 7.8%, decrease in residential real estate loans and a decrease of $5.2 million, or 4.8%, in capital call lines as a result of normal balance fluctuations and business activities. We continue to monitor and manage the CCBX loan portfolio, and sold $423.7 million in CCBX loans during the quarter ended September 30, 2024 compared to sales of $155.2 million in the quarter ended June 30, 2024. We continue to reposition ourselves by managing CCBX credit and concentration levels in an effort to optimize our loan portfolio and generate off balance sheet fee income.

Our credit card program through CCBX continues to grow in dollars and number of active cards as shown in the graph below:

The following table details the CCBX deposit portfolio:

CCBX	As of
	September 30, 2024					June 30, 2024					September 30, 2023
(dollars in thousands; unaudited)	Balance			% to Total		Balance			% to Total		Balance			% to Total
Demand, noninterest bearing	$	60,655		2.9	%	$	62,234		3.0	%	$	67,782		3.9	%
Interest bearing demand and money market		1,991,858		94.6			1,989,105		96.7			1,679,921		95.9
Savings		5,204		0.3			5,150		0.3			4,529		0.2
Total core deposits		2,057,717		97.8			2,056,489		100.0			1,752,232		100.0
Other deposits		47,046		2.2			—		0.0			—		—
Total CCBX deposits	$	2,104,763		100.0	%	$	2,056,489		100.0	%	$	1,752,232		100.0	%
Cost of deposits ⁽¹⁾		4.82	%				4.92	%				4.80	%

⁽¹⁾Cost of deposits is annualized for the three months ended for each period presented.

CCBX deposits increased $48.3 million, or 2.3%, in the three months ended September 30, 2024 to $2.10 billion. This excludes the $214.5 million in CCBX deposits that were transferred off balance sheet for increased Federal Deposit Insurance Corporation (“FDIC”) insurance coverage purposes, compared to $117.7 million for the quarter ended June 30, 2024. Amounts in excess of FDIC insurance coverage are transferred, using a third party facilitator/vendor sweep product, to participating financial institutions.

Community Bank Performance Update

In the quarter ended September 30, 2024, the community bank saw net loans decrease $14.5 million, or 0.8%, to $1.90 billion.

The following table details the Community Bank loan portfolio:

Community Bank	As of
	September 30, 2024					June 30, 2024					September 30, 2023
(dollars in thousands; unaudited)	Balance			% to Total		Balance			% to Total		Balance			% to Total
Commercial and industrial loans	$	152,161		8.0	%	$	144,436		7.5	%	$	158,232		8.8	%
Real estate loans:
Construction, land and land development loans		163,051		8.6			173,064		9.0			167,686		9.4
Residential real estate loans		212,467		11.2			229,639		12.0			225,372		12.6
Commercial real estate loans		1,362,452		71.5			1,357,979		70.8			1,237,849		69.1
Consumer and other loans:
Other consumer and other loans		14,173		0.7			14,220		0.7			2,483		0.1
Gross Community Bank loans receivable		1,904,304		100.0	%		1,919,338		100.0	%		1,791,622		100.0	%
Net deferred origination fees		(6,764	)				(7,304	)				(6,961	)
Loans receivable	$	1,897,540				$	1,912,034				$	1,784,661
Loan Yield⁽¹⁾		6.64	%				6.52	%				6.20	%

⁽¹⁾Loan yield is annualized for the three months ended for each period presented and includes loans held for sale and nonaccrual loans.

Community bank loans had a $10.0 million decrease in construction, land and land development loans, partially offset by an increase of $7.7 million in commercial and industrial loans and an increase in commercial real estate loans of $4.5 million during the quarter ended September 30, 2024; consumer and other loans were flat.

The following table details the community bank deposit portfolio:

Community Bank	As of
	September 30, 2024					June 30, 2024					September 30, 2023
(dollars in thousands; unaudited)	Balance			% to Total		Balance			% to Total		Balance			% to Total
Demand, noninterest bearing	$	518,772		34.1	%	$	531,555		35.6	%	$	584,004		37.9	%
Interest bearing demand and money market		552,108		36.3			876,668		59.0			852,747		55.5
Savings		62,272		4.1			63,627		4.3			80,099		5.2
Total core deposits		1,133,152		74.5			1,471,850		98.9			1,516,850		98.6
Other deposits		373,681		24.5			1		0.0			1		0.0
Time deposits less than $100,000		6,305		0.4			6,741		0.5			8,635		0.6
Time deposits $100,000 and over		9,387		0.6			8,351		0.6			11,982		0.8
Total Community Bank deposits	$	1,522,525		100.0	%	$	1,486,943		100.0	%	$	1,537,468		100.0	%
Cost of deposits⁽¹⁾		1.92	%				1.77	%				1.31	%

⁽¹⁾Cost of deposits is annualized for the three months ended for each period presented.

Community bank deposits increased $35.6 million, or 2.4%, during the three months ended September 30, 2024 to $1.52 billion. This is the second consecutive quarter of growth after allowing higher rate balances to run-off earlier in the year. The community bank segment includes noninterest bearing deposits of $518.8 million, or 34.1%, of total community bank deposits, resulting in a cost of deposits of 1.92%, which compared to 1.77% for the quarter ended June 30, 2024.

Net Interest Income and Margin Discussion

Net interest income was $72.2 million for the quarter ended September 30, 2024, an increase of $5.9 million, or 9.0%, from $66.2 million for the quarter ended June 30, 2024, and an increase of $10.0 million, or 16.0%, from $62.2 million for the quarter ended September 30, 2023. The increase in net interest income compared to June 30, 2024, was a result of increased interest income due to an increase in average loans receivable partially offset by an increase in cost of funds. The increase in net interest income compared to September 30, 2023 was largely related to increased yield on loans resulting from higher interest rates and growth in higher yielding loans partially offset by an increase in cost of funds relating to higher interest rates and growth in interest bearing deposits.

Net interest margin was 7.41% for the three months ended September 30, 2024, compared to 7.13% for the three months ended June 30, 2024, with the increase primarily due to higher loan yields. Net interest margin was 7.10% for the three months ended September 30, 2023. The increase in net interest margin for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 was largely due to an increase in loan yield partially offset by higher interest rates on interest bearing deposits. Interest and fees on loans receivable increased $8.6 million, or 9.5%, to $99.6 million for the three months ended September 30, 2024, compared to $90.9 million for the three months ended June 30, 2024, and increased $15.9 million, or 19.1%, compared to $83.7 million for the three months ended September 30, 2023, due to an increase in outstanding balances and higher interest rates.

Average investment securities decreased $795,000 to $49.0 million compared to the three months ended June 30, 2024 and decreased $69.0 million compared to the three months ended September 30, 2023 as a result of maturing securities.

Cost of funds was 3.62% for the quarter ended September 30, 2024, an increase of 2 basis points from the quarter ended June 30, 2024 and an increase of 44 basis points from the quarter ended September 30, 2023. Cost of deposits for the quarter ended September 30, 2024 was 3.59%, compared to 3.58% for the quarter ended June 30, 2024, and 3.14% for the quarter ended September 30, 2023. The increased cost of funds and deposits compared to June 30, 2024 and September 30, 2023 was due to the continued high interest rate environment. The late September reduction in the Fed funds rate is expected to help to lower our cost of deposits in future periods.

The following table summarizes the average yield on loans receivable and cost of deposits:

	For the Three Months Ended
	September 30, 2024				June 30, 2024				September 30, 2023
	Yield on Loans ⁽²⁾		Cost of Deposits ⁽²⁾		Yield on Loans ⁽²⁾		Cost of Deposits ⁽²⁾		Yield on Loans ⁽²⁾		Cost of Deposits ⁽²⁾
Community Bank	6.64	%	1.92	%	6.52	%	1.77	%	6.20	%	1.31	%
CCBX ⁽¹⁾	17.35	%	4.82	%	17.77	%	4.92	%	17.05	%	4.80	%
Consolidated	11.43	%	3.59	%	11.23	%	3.58	%	10.84	%	3.14	%

⁽¹⁾CCBX yield on loans does not include the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit and fraud enhancements and originating & servicing CCBX loans. To determine Net BaaS loan income earned from CCBX loan relationships, the Company takes BaaS loan interest income and deducts BaaS loan expense to arrive at Net BaaS loan income which can be compared to interest income on the Company’s community bank loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
⁽²⁾Annualized calculations for periods shown.

The following tables illustrates how BaaS loan interest income is affected by BaaS loan expense resulting in net BaaS loan income and the associated yield:

	For the Three Months Ended
	September 30, 2024				June 30, 2024				September 30, 2023
(dollars in thousands, unaudited)	Income / Expense		Income / expense divided by average CCBX loans ⁽²⁾		Income / Expense		Income / expense divided by average CCBX loans⁽²⁾		Income / Expense		Income / expense divided by average CCBX loans ⁽²⁾
BaaS loan interest income	$	67,692	17.35	%	$	60,203	17.77	%	$	56,279	17.05	%
Less: BaaS loan expense		32,612	8.36	%		29,076	8.58	%		23,003	6.97	%
Net BaaS loan income ⁽¹⁾	$	35,080	8.99	%	$	31,127	9.19	%	$	33,276	10.08	%
Average BaaS Loans⁽³⁾	$	1,552,443			$	1,362,343			$	1,309,380

⁽¹⁾ A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.
⁽²⁾ Annualized calculations shown for quarterly periods presented.
⁽³⁾ Includes loans held for sale.

Noninterest Income Discussion

Noninterest income was $80.1 million for the three months ended September 30, 2024, an increase of $10.2 million from $69.9 million for the three months ended June 30, 2024, and an increase of $45.5 million from $34.6 million for the three months ended September 30, 2023. The increase in noninterest income over the quarter ended June 30, 2024 was primarily due to an increase of $9.9 million in total BaaS income. The $9.9 million increase in total BaaS income included a $9.3 million increase in BaaS credit enhancements related to the provision for credit losses, a $300,000 increase in BaaS fraud enhancements, and an increase of $340,000 in BaaS program income. The increase in BaaS program income is largely due to higher servicing and other BaaS fees, transaction fees and interchange fees and our primary BaaS source for recurring fee income (see “Appendix B” for more information on the accounting for BaaS allowance for credit losses and credit and fraud enhancements). Additionally, other income increased $229,000 largely due to increased incoming ACH activity.

The $45.5 million increase in noninterest income over the quarter ended September 30, 2023 was primarily due to a $43.4 million increase in BaaS credit and fraud enhancements, and an increase of $2.0 million in BaaS program income.

Noninterest Expense Discussion
Total noninterest expense increased $6.8 million to $65.6 million for the three months ended September 30, 2024, compared to $58.8 million for the three months ended June 30, 2024, and increased $9.1 million from $56.5 million for the three months ended September 30, 2023. The increase in noninterest expense for the quarter ended September 30, 2024, as compared to the quarter ended June 30, 2024, was primarily due to a $3.8 million increase in BaaS expense (including a $300,000 increase in BaaS fraud expense and a $3.5 million increase in BaaS loan expense). BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements, and originating & servicing CCBX loans. BaaS fraud expense represents non-credit fraud losses on partner’s customer loan and deposit accounts. A portion of this expense is realized during the quarter in which the loss occurs, and a portion is estimated based on historical or other information from our partners, partially offset by a $1.5 million increase in excise taxes (due to the recording of $1.2 million business and occupation tax credit from the State of Washington which resulted in the recognition of a net credit of $706,000 for the quarter ended June 30, 2024, compared to expense of $762,000 for the quarter ended September 30, 2024). We also recorded an increase of $587,000 in data processing and software licenses as a result of our continued investment in our infrastructure and the automation of our processes so that they are scalable and an increase of $499,000 in point of sale expenses as a result of increased partner transaction activity.

The increase in noninterest expenses for the quarter ended September 30, 2024 compared to the quarter ended September 30, 2023 was largely due to an increase of $8.8 million in BaaS partner expense (including a $9.6 million increase in BaaS loan expense partially offset by a decrease of $766,000 in BaaS fraud expense), a $1.1 million increase in data processing and software licenses due to enhancements in technology, and a $526,000 increase in occupancy expense, largely due to higher software depreciation/amortization expense, partially offset by a $986,000 decrease in salary and employee benefits largely as a result of some one-time costs that were expensed in the quarter ended September 30, 2023 for which there was no similar expense in the current quarter, and an $850,000 decrease in legal and professional expenses as a result of risk management and projects being completed.

Provision for Income Taxes

The provision for income taxes was $2.9 million for the three months ended September 30, 2024, $3.4 million for the three months ended June 30, 2024 and $2.8 million for the third quarter of 2023. The income tax provision was lower for the three months ended September 30, 2024 compared to the quarter ended June 30, 2024 as a result of the deductibility of certain equity awards which reduced tax expense despite net income being higher and higher than the quarter ended September 30, 2023, primarily due to higher net income compared to that quarter.

The Company is subject to various state taxes that are assessed as CCBX activities and employees expand into other states, which has increased the overall tax rate used in calculating the provision for income taxes in the current and future periods. The Company uses a federal statutory tax rate of 21.0% as a basis for calculating provision for federal income taxes and 2.62% for calculating the provision for state income taxes.

Financial Condition Overview

Total assets increased $104.3 million, or 2.6%, to $4.07 billion at September 30, 2024 compared to $3.96 billion at June 30, 2024. The increase is primarily due to stronger loan growth partially offset by lower cash balances. Total loans receivable increased $92.4 million to $3.42 billion at September 30, 2024, from $3.33 billion at June 30, 2024.

As of September 30, 2024, the Company had the capacity to borrow up to a total of $656.3 million from the Federal Reserve Bank discount window and Federal Home Loan Bank, and an additional $50.0 million from a correspondent bank no borrowings outstanding on these lines as of September 30, 2024.

The Company had a cash balance of $5.9 million as of September 30, 2024, which is retained for general operating purposes, including debt repayment, and for funding $530,000 in commitments to bank technology funds.

Uninsured deposits were $542.2 million as of September 30, 2024, compared to $532.9 million as of June 30, 2024.

Total shareholders’ equity increased $15.2 million since June 30, 2024. The increase in shareholders’ equity was primarily due to $13.5 million in net earnings, combined with an increase of $1.8 million in common stock outstanding as a result of equity awards exercised during the three months ended September 30, 2024.

The Company and the Bank remained well capitalized at September 30, 2024, as summarized in the following table.

(unaudited)	Coastal Community Bank		Coastal Financial Corporation		Minimum Well Capitalized Ratios under Prompt Corrective Action ⁽¹⁾
Tier 1 Leverage Capital (to average assets)	9.29	%	8.40	%	5.00	%
Common Equity Tier 1 Capital (to risk-weighted assets)	10.36	%	9.26	%	6.50	%
Tier 1 Capital (to risk-weighted assets)	10.36	%	9.35	%	8.00	%
Total Capital (to risk-weighted assets)	11.65	%	11.90	%	10.00	%

⁽¹⁾ Presents the minimum capital ratios for an insured depository institution, such as the Bank, to be considered well capitalized under the Prompt Corrective Action framework. The minimum requirements for the Company to be considered well capitalized under Regulation Y include to maintain, on a consolidated basis, a total risk-based capital ratio of 10.0 percent or greater and a tier 1 risk-based capital ratio of 6.0 percent or greater.

Asset Quality

The total allowance for credit losses was $170.3 million and 4.98% of loans receivable at September 30, 2024 compared to $147.9 million and 4.45% at June 30, 2024 and $101.1 million and 3.41% at September 30, 2023. The allowance for credit loss allocated to the CCBX portfolio was $150.1 million and 9.87% of CCBX loans receivable at September 30, 2024, with $20.1 million of allowance for credit loss allocated to the community bank or 1.06% of total community bank loans receivable.

The following table details the allocation of the allowance for credit loss as of the period indicated:

	As of September 30, 2024									As of June 30, 2024									As of September 30, 2023
(dollars in thousands; unaudited)	Community Bank			CCBX			Total			Community Bank			CCBX			Total			Community Bank			CCBX			Total
Loans receivable	$	1,897,540		$	1,521,292		$	3,418,832		$	1,912,034		$	1,414,426		$	3,326,460		$	1,784,661		$	1,182,374		$	2,967,035
Allowance for credit losses		(20,132	)		(150,131	)		(170,263	)		(21,045	)		(126,869	)		(147,914	)		(21,316	)		(79,769	)		(101,085	)
Allowance for credit losses to total loans receivable		1.06	%		9.87	%		4.98	%		1.10	%		8.97	%		4.45	%		1.19	%		6.75	%		3.41	%

Net charge-offs totaled $49.2 million for the quarter ended September 30, 2024, compared to $53.2 million for the quarter ended June 30, 2024 and $36.8 million for the quarter ended September 30, 2023. Net charge-offs as a percent of average loans decreased to 5.65% for the quarter ended September 30, 2024 compared to 6.57% for the quarter ended June 30, 2024, which we believe is a result of the steps we took manage our credit quality. CCBX partner agreements provide for a credit enhancement that covers the net-charge-offs on CCBX loans and negative deposit accounts by indemnifying or reimbursing incurred losses, except in accordance with the program agreement for one partner where the Company was responsible for credit losses on approximately 5% of a $400.8 million loan portfolio. At September 30, 2024, our portion of this portfolio represented $19.8 million in loans. Net charge-offs for this $19.8 million in loans were $1.1 million for the three months ended September 30, 2024, compared to $1.3 million for the three months ended June 30, 2024 and $579,000 for the three months ended September 30, 2023.

The following table details net charge-offs for the community bank and CCBX for the period indicated:

	Three Months Ended
	September 30, 2024									June 30, 2024									September 30, 2023
(dollars in thousands; unaudited)	Community Bank			CCBX			Total			Community Bank			CCBX			Total			Community Bank			CCBX			Total
Gross charge-offs	$	398		$	52,907		$	53,305		$	2		$	55,205		$	55,207		$	3		$	37,876		$	37,879
Gross recoveries		(3	)		(4,066	)		(4,069	)		(4	)		(1,969	)		(1,973	)		(3	)		(1,042	)		(1,045	)
Net charge-offs	$	395		$	48,841		$	49,236		$	(2	)	$	53,236		$	53,234		$	—		$	36,834		$	36,834
Net charge-offs to average loans ⁽¹⁾		0.08	%		12.52	%		5.65	%		0.00	%		15.72	%		6.57	%		0.00	%		11.16	%		4.77	%

⁽¹⁾ Annualized calculations shown for periods presented.

During the quarter ended September 30, 2024, a $72.1 million provision for credit losses – loans was recorded for CCBX partner loans based on management’s analysis, compared to the $62.2 million provision for credit losses – loans that was recorded for CCBX for the quarter ended June 30, 2024. CCBX loans have a higher level of expected losses than our community bank loans, which is reflected in the factors for the allowance for credit losses. Agreements with our CCBX partners provide for a credit enhancement which protects the Bank by indemnifying or reimbursing incurred losses.

In accordance with accounting guidance, we estimate and record a provision for expected losses for these CCBX loans and reclassified negative deposit accounts. When the provision for CCBX credit losses and provision for unfunded commitments is recorded, a credit enhancement asset is also recorded on the balance sheet through noninterest income (BaaS credit enhancements). Expected losses are recorded in the allowance for credit losses. The credit enhancement asset is relieved when credit enhancement recoveries are received from the CCBX partner. If our partner is unable to fulfill their contracted obligations then the Bank could be exposed to additional credit losses. Management regularly evaluates and manages this counterparty risk.

The factors used in management’s analysis for community bank credit losses indicated that a provision recapture of $519,000 and was needed for the quarter ended September 30, 2024 compared to a provision recapture of $341,000 and provision of $664,000 for the quarters ended June 30, 2024 and September 30, 2023, respectively. The recapture in the current period was largely due to a change in remaining average lives of community bank loans.

The following table details the provision expense/(recapture) for the community bank and CCBX for the period indicated:

	Three Months Ended
(dollars in thousands; unaudited)	September 30, 2024			June 30, 2024			September 30, 2023
Community bank	$	(519	)	$	(341	)	$	664
CCBX		72,104			62,231			26,493
Total provision expense	$	71,585		$	61,890		$	27,157

At September 30, 2024, our nonperforming assets were $54.7 million, or 1.34%, of total assets, compared to $53.2 million, or 1.34%, of total assets, at June 30, 2024, and $43.5 million, or 1.18%, of total assets, at September 30, 2023. These ratios are impacted by nonperforming CCBX loans that are covered by CCBX partner credit enhancements. As of September 30, 2024, $52.0 million of the $53.6 million in nonperforming CCBX loans were covered by CCBX partner credit enhancements described above.

Nonperforming assets increased $1.5 million during the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024. This change is largely due to an increase in CCBX nonaccrual loans partially offset by a decrease in community bank nonaccrual loans. CCBX nonaccrual loans increased $8.0 million as a result of a new collection practice that places certain loans on nonaccrual status to improve collectability, $5.3 million of these loans are less than 90 days past due as of September 30, 2024. CCBX loans that are past due 90 days or more and still accruing was $45.6 million for the quarter ended September 30, 2024 compared to $45.2 million for the quarter ended June 30, 2024. As a result of the type of loans (primarily consumer loans) originated through our CCBX partners we anticipate that balances 90 days past due or more and still accruing will generally increase as those loan portfolios grow. Installment/closed-end and revolving/open-end consumer loans originated through CCBX lending partners will continue to accrue interest until 120 and 180 days past due, respectively and are reported as substandard, 90 days or more days past due and still accruing. There were no repossessed assets or other real estate owned at September 30, 2024. Our nonperforming loans to loans receivable ratio was 1.60% at September 30, 2024, compared to 1.60% at June 30, 2024, and 1.47% at September 30, 2023.

For the quarter ended September 30, 2024, there were $395,000 community bank net charge-offs and $1.1 million nonperforming community bank loans. For the quarter ended September 30, 2024 $48.8 million in net charge-offs were recorded on CCBX loans. These CCBX loans have a higher level of expected losses than our community bank loans, which is reflected in the factors for the allowance for credit losses.

The following table details the Company’s nonperforming assets for the periods indicated.

Consolidated	As of
(dollars in thousands; unaudited)	September 30, 2024			June 30, 2024			September 30, 2023
Nonaccrual loans:
Commercial and industrial loans	$	198		$	—		$	2
Real estate loans:
Construction, land and land development		—			—			—
Residential real estate		44			213			176
Commercial real estate		831			7,731			7,145
Consumer and other loans:
Credit cards		7,987			—			—
Total nonaccrual loans		9,060			7,944			7,323
Accruing loans past due 90 days or more:
Commercial & industrial loans		1,593			1,278			1,387
Real estate loans:
Residential real estate loans		3,025			2,722			1,462
Consumer and other loans:
Credit cards		34,562			36,465			24,807
Other consumer and other loans		6,412			4,779			8,561
Total accruing loans past due 90 days or more		45,592			45,244			36,217
Total nonperforming loans		54,652			53,188			43,540
Real estate owned		—			—			—
Repossessed assets		—			—			—
Total nonperforming assets	$	54,652		$	53,188		$	43,540
Total nonaccrual loans to loans receivable		0.27	%		0.24	%		0.25	%
Total nonperforming loans to loans receivable		1.60	%		1.60	%		1.47	%
Total nonperforming assets to total assets		1.34	%		1.34	%		1.18	%

The following tables detail the CCBX and community bank nonperforming assets which are included in the total nonperforming assets table above.

CCBX	As of
(dollars in thousands; unaudited)	September 30, 2024			June 30, 2024			September 30, 2023
Nonaccrual loans:
Consumer and other loans:
Credit cards	$	7,987		$	—		$	—
Total nonaccrual loans		7,987			—			—
Accruing loans past due 90 days or more:
Commercial & industrial loans		1,593			1,278			1,387
Real estate loans:
Residential real estate loans		3,025			2,722			1,462
Consumer and other loans:
Credit cards		34,562			36,465			24,807
Other consumer and other loans		6,412			4,779			8,561
Total accruing loans past due 90 days or more		45,592			45,244			36,217
Total nonperforming loans		53,579			45,244			36,217
Other real estate owned		—			—			—
Repossessed assets		—			—			—
Total nonperforming assets	$	53,579		$	45,244		$	36,217
Total CCBX nonperforming assets to total consolidated assets		1.32	%		1.14	%		0.98	%

Community Bank	As of
(dollars in thousands; unaudited)	September 30, 2024			June 30, 2024			September 30, 2023
Nonaccrual loans:
Commercial and industrial loans	$	198		$	—		$	2
Real estate:
Construction, land and land development		—			—			—
Residential real estate		44			213			176
Commercial real estate		831			7,731			7,145
Total nonaccrual loans		1,073			7,944			7,323
Accruing loans past due 90 days or more:
Total accruing loans past due 90 days or more		—			—			—
Total nonperforming loans		1,073			7,944			7,323
Other real estate owned		—			—			—
Repossessed assets		—			—			—
Total nonperforming assets	$	1,073		$	7,944		$	7,323
Total community bank nonperforming assets to total consolidated assets		0.03	%		0.20	%		0.20	%

About Coastal Financial

Coastal Financial Corporation (Nasdaq: CCB) (the “Company”), is an Everett, Washington based bank holding company whose wholly owned subsidiaries are Coastal Community Bank (“Bank”) and Arlington Olympic LLC. The $4.07 billion Bank provides service through 14 branches in Snohomish, Island, and King Counties, the Internet and its mobile banking application. The Bank provides banking as a service to broker-dealers, digital financial service providers, companies and brands that want to provide financial services to their customers through the Bank’s CCBX segment. To learn more about the Company visit www.coastalbank.com.

CCB-ER

Contact

Eric Sprink, Chief Executive Officer, (425) 357-3659
Joel Edwards, Executive Vice President & Chief Financial Officer, (425) 357-3687

Forward-Looking Statements

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. Any statements about our management’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. Any or all of the forward-looking statements in this earnings release may turn out to be inaccurate. The inclusion of or reference to forward-looking information in this earnings release should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, the risks and uncertainties discussed under “Risk Factors” in our Annual Report on Form 10-K for the most recent period filed and in any of our subsequent filings with the Securities and Exchange Commission.

If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. You are cautioned not to place undue reliance on forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as required by law.


COASTAL FINANCIAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollars in thousands; unaudited)

ASSETS
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Cash and due from banks	$	45,327		$	59,995		$	32,790		$	31,345		$	29,984
Interest earning deposits with other banks		438,699			427,250			482,338			451,783			444,962
Investment securities, available for sale, at fair value		38			39			41			99,504			98,939
Investment securities, held to maturity, at amortized cost		48,582			49,174			50,049			50,860			42,550
Other investments		10,757			10,664			10,583			10,227			11,898
Loans held for sale		7,565			—			797			—			—
Loans receivable		3,418,832			3,326,460			3,199,554			3,026,092			2,967,035
Allowance for credit losses		(170,263	)		(147,914	)		(139,258	)		(116,958	)		(101,085	)
Total loans receivable, net		3,248,569			3,178,546			3,060,296			2,909,134			2,865,950
CCBX credit enhancement asset		167,251			143,485			137,276			107,921			91,867
CCBX receivable		16,060			11,520			10,369			9,088			10,623
Premises and equipment, net		25,833			24,526			22,995			22,090			20,543
Lease right-of-use assets		5,427			5,635			5,756			5,932			6,126
Accrued interest receivable		23,664			23,617			24,681			26,819			23,428
Bank-owned life insurance, net		13,255			13,132			12,991			12,870			12,970
Deferred tax asset, net		3,083			2,221			2,221			3,806			4,404
Other assets		11,711			11,742			12,075			11,987			14,021
Total assets	$	4,065,821		$	3,961,546		$	3,865,258		$	3,753,366		$	3,678,265

LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Deposits	$	3,627,288		$	3,543,432		$	3,462,979		$	3,360,363		$	3,289,700
Subordinated debt, net		44,256			44,219			44,181			44,144			44,106
Junior subordinated debentures, net		3,591			3,591			3,590			3,590			3,589
Deferred compensation		369			405			442			479			513
Accrued interest payable		1,070			999			1,061			892			1,056
Lease liabilities		5,609			5,821			5,946			6,124			6,321
CCBX payable		39,188			34,536			33,095			33,651			38,229
Other liabilities		12,520			11,850			10,255			9,145			10,301
Total liabilities		3,733,891			3,644,853			3,561,549			3,458,388			3,393,815
SHAREHOLDERS’ EQUITY
Common Stock		134,769			132,989			131,601			130,136			129,244
Retained earnings		197,162			183,706			172,110			165,311			156,299
Accumulated other comprehensive loss, net of tax		(1	)		(2	)		(2	)		(469	)		(1,093	)
Total shareholders’ equity		331,930			316,693			303,709			294,978			284,450
Total liabilities and shareholders’ equity	$	4,065,821		$	3,961,546		$	3,865,258		$	3,753,366		$	3,678,265


COASTAL FINANCIAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share amounts; unaudited)

	Three Months Ended
	September 30, 2024		June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$	99,590	$	90,944		$	84,621		$	81,159		$	83,652
Interest on interest earning deposits with other banks		4,781		5,683			4,780			5,687			3,884
Interest on investment securities		675		686			1,034			1,225			766
Dividends on other investments		33		174			37			172			29
Total interest income		105,079		97,487			90,472			88,243			88,331
INTEREST EXPENSE
Interest on deposits		32,083		30,578			28,867			27,916			25,451
Interest on borrowed funds		809		672			669			670			651
Total interest expense		32,892		31,250			29,536			28,586			26,102
Net interest income		72,187		66,237			60,936			59,657			62,229
PROVISION FOR CREDIT LOSSES		70,257		62,325			83,158			60,789			27,253
Net interest income/(expense) after provision for credit losses		1,930		3,912			(22,222	)		(1,132	)		34,976
NONINTEREST INCOME
Deposit service charges and fees		952		946			908			957			998
Loan referral fees		—		—			168			—			1
Gain on sales of loans, net		—		—			—			—			107
Unrealized gain (loss) on equity securities, net		2		9			15			80			5
Other income		486		257			308			60			291
Noninterest income, excluding BaaS program income and BaaS indemnification income		1,440		1,212			1,399			1,097			1,402
Servicing and other BaaS fees		1,044		1,525			1,131			1,015			997
Transaction fees		1,696		1,309			1,122			1,006			1,036
Interchange fees		1,853		1,625			1,539			1,272			1,216
Reimbursement of expenses		1,843		1,637			1,033			1,076			1,152
BaaS program income		6,436		6,096			4,825			4,369			4,401
BaaS credit enhancements		70,108		60,826			79,808			58,449			25,926
BaaS fraud enhancements		2,084		1,784			923			779			2,850
BaaS indemnification income		72,192		62,610			80,731			59,228			28,776
Total noninterest income		80,068		69,918			86,955			64,694			34,579
NONINTEREST EXPENSE
Salaries and employee benefits		17,101		17,005			17,984			16,490			18,087
Occupancy		1,750		1,686			1,518			1,340			1,224
Data processing and software licenses		3,511		2,924			2,892			2,417			2,366
Legal and professional expenses		3,597		3,631			3,672			2,649			4,447
Point of sale expense		1,351		852			869			899			1,068
Excise taxes		762		(706	)		320			449			541
Federal Deposit Insurance Corporation (“FDIC”) assessments		740		690			683			665			694
Director and staff expenses		559		470			400			478			529
Marketing		67		14			53			138			169
Other expense		1,482		1,383			1,867			1,089			1,523
Noninterest expense, excluding BaaS loan and BaaS fraud expense		30,920		27,949			30,258			26,614			30,648
BaaS loan expense		32,612		29,076			24,837			24,310			23,003
BaaS fraud expense		2,084		1,784			923			779			2,850
BaaS loan and fraud expense		34,696		30,860			25,760			25,089			25,853
Total noninterest expense		65,616		58,809			56,018			51,703			56,501
Income before provision for income taxes		16,382		15,021			8,715			11,859			13,054
PROVISION FOR INCOME TAXES		2,926		3,425			1,915			2,847			2,784
NET INCOME	$	13,456	$	11,596		$	6,800		$	9,012		$	10,270
Basic earnings per common share	$	1.00	$	0.86		$	0.51		$	0.68		$	0.77
Diluted earnings per common share	$	0.97	$	0.84		$	0.50		$	0.66		$	0.75
Weighted average number of common shares outstanding:
Basic		13,447,066		13,412,667			13,340,997			13,286,828			13,285,974
Diluted		13,822,270		13,736,508			13,676,917			13,676,513			13,675,833


COASTAL FINANCIAL CORPORATION AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY (Dollars in thousands; unaudited)

	For the Three Months Ended
	September 30, 2024							June 30, 2024							September 30, 2023
	Average Balance			Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance			Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance			Interest & Dividends		Yield / Cost ⁽¹⁾
Assets
Interest earning assets:
Interest earning deposits with other banks	$	350,915		$	4,781	5.42	%	$	418,165		$	5,683	5.47	%	$	285,596		$	3,884	5.40	%
Investment securities, available for sale ⁽²⁾		40			—	—			43			—	3.13			100,283			543	2.15
Investment securities, held to maturity ⁽²⁾		48,945			675	5.49			49,737			686	5.55			17,703			223	5.00
Other investments		11,140			33	1.18			10,592			174	6.61			11,943			29	0.96
Loans receivable ⁽³⁾		3,464,871			99,590	11.43			3,258,042			90,944	11.23			3,062,214			83,652	10.84
Total interest earning assets		3,875,911			105,079	10.79			3,736,579			97,487	10.49			3,477,739			88,331	10.08
Noninterest earning assets:
Allowance for credit losses		(151,292	)						(138,472	)						(100,329	)
Other noninterest earning assets		268,903							255,205							220,750
Total assets	$	3,993,522						$	3,853,312						$	3,598,160

Liabilities and Shareholders’ Equity
Interest bearing liabilities:
Interest bearing deposits	$	2,966,527		$	32,083	4.30	%	$	2,854,575		$	30,578	4.31	%	$	2,515,093		$	25,451	4.01	%
FHLB advances and other borrowings		9,717			140	5.73			1,648			3	0.73			—			—	—
Subordinated debt		44,234			598	5.38			44,197			598	5.44			44,084			580	5.22
Junior subordinated debentures		3,591			71	7.87			3,590			71	7.95			3,589			71	7.85
Total interest bearing liabilities		3,024,069			32,892	4.33			2,904,010			31,250	4.33			2,562,766			26,102	4.04
Noninterest bearing deposits		588,178							584,661							698,532
Other liabilities		60,101							58,267							57,865
Total shareholders’ equity		321,174							306,374							278,997
Total liabilities and shareholders’ equity	$	3,993,522						$	3,853,312						$	3,598,160
Net interest income				$	72,187						$	66,237						$	62,229
Interest rate spread						6.46	%						6.17	%						6.04	%
Net interest margin ⁽⁴⁾						7.41	%						7.13	%						7.10	%

⁽¹⁾Yields and costs are annualized.
⁽²⁾For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
⁽³⁾Includes loans held for sale and nonaccrual loans.
⁽⁴⁾Net interest margin represents net interest income divided by the average total interest earning assets.


COASTAL FINANCIAL CORPORATION SELECTED AVERAGE BALANCES, YIELDS, AND RATES – BY SEGMENT – QUARTERLY (Dollars in thousands; unaudited)

	For the Three Months Ended
	September 30, 2024						June 30, 2024						September 30, 2023
(dollars in thousands, unaudited)	Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾
Community Bank
Assets
Interest earning assets:
Loans receivable ⁽²⁾	$	1,912,428	$	31,898	6.64	%	$	1,895,699	$	30,741	6.52	%	$	1,752,834	$	27,373	6.20	%
Total interest earning assets		1,912,428		31,898	6.64			1,895,699		30,741	6.52			1,752,834		27,373	6.20
Liabilities
Interest bearing liabilities:
Interest bearing deposits		982,280		7,264	2.94	%		938,033		6,459	2.77	%		920,707		5,067	2.18	%
Intrabank liability		406,641		5,540	5.42			429,452		5,836	5.47			223,221		3,036	5.40
Total interest bearing liabilities		1,388,921		12,804	3.67			1,367,485		12,295	3.62			1,143,928		8,103	2.81
Noninterest bearing deposits		523,507						528,214						608,906
Net interest income			$	19,094					$	18,446					$	19,270
Net interest margin⁽³⁾					3.97	%					3.91	%					4.36	%

CCBX
Assets
Interest earning assets:
Loans receivable ⁽²⁾⁽⁴⁾	$	1,552,443	$	67,692	17.35	%	$	1,362,343	$	60,203	17.77	%	$	1,309,380	$	56,279	17.05	%
Intrabank asset		496,475		6,764	5.42			610,646		8,299	5.47			374,632		5,095	5.40
Total interest earning assets		2,048,918		74,456	14.46			1,972,989		68,502	13.96			1,684,012		61,374	14.46
Liabilities
Interest bearing liabilities:
Interest bearing deposits		1,984,247		24,819	4.98	%		1,916,542		24,119	5.06	%		1,594,386		20,384	5.07	%
Total interest bearing liabilities		1,984,247		24,819	4.98			1,916,542		24,119	5.06			1,594,386		20,384	5.07
Noninterest bearing deposits		64,671						56,447						89,626
Net interest income			$	49,637					$	44,383					$	40,990
Net interest margin⁽³⁾					9.64	%					9.05	%					9.66	%
Net interest margin, net of Baas loan expense ⁽⁵⁾					3.31	%					3.12	%					4.24	%

	For the Three Months Ended
	September 30, 2024						June 30, 2024						September 30, 2023
(dollars in thousands, unaudited)	Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾
Treasury & Administration
Assets
Interest earning assets:
Interest earning deposits with other banks	$	350,915	$	4,781	5.42	%	$	418,165	$	5,683	5.47	%	$	285,596	$	3,884	5.40	%
Investment securities, available for sale ⁽⁶⁾		40		—	—			43		—	3.13			100,283		543	2.15
Investment securities, held to maturity ⁽⁶⁾		48,945		675	5.49			49,737		686	5.55			17,703		223	5.00
Other investments		11,140		33	1.18			10,592		174	6.61			11,943		29	0.96
Total interest earning assets		411,040		5,489	5.31	%		478,537		6,543	5.50	%		415,525		4,679	4.47	%
Liabilities
Interest bearing liabilities:
FHLB advances and borrowings	$	9,717	$	140	5.73	%		1,648		3	0.73	%		—		—	—	%
Subordinated debt		44,234		598	5.38	%		44,197		598	5.44	%		44,084		580	5.22	%
Junior subordinated debentures		3,591		71	7.87			3,590		71	7.95			3,589		71	7.85
Intrabank liability, net ⁽⁷⁾		89,834		1,224	5.42			181,194		2,463	5.47			151,411		2,059	5.40
Total interest bearing liabilities		147,376		2,033	5.49			230,629		3,135	5.47			199,084		2,710	5.40
Net interest income			$	3,456					$	3,408					$	1,969
Net interest margin⁽³⁾					3.34	%					2.86	%					1.88	%

⁽¹⁾Yields and costs are annualized.
⁽²⁾Includes loans held for sale and nonaccrual loans.
⁽³⁾Net interest margin represents net interest income divided by the average total interest earning assets.
⁽⁴⁾CCBX yield does not include the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements and originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
⁽⁵⁾Net interest margin, net of BaaS loan expense includes the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements, originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release.
⁽⁶⁾For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
⁽⁷⁾Intrabank assets and liabilities are consolidated for period calculations and presented as intrabank asset, net or intrabank liability, net in the table above.

Non-GAAP Financial Measures

The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance.

However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these adjusted measures, this presentation may not be comparable to other similarly titled adjusted measures reported by other companies.

The following non-GAAP measures are presented to illustrate the impact of BaaS loan expense on net loan income and yield on CCBX loans and the impact of BaaS loan expense on net interest income and net interest margin.

Net BaaS loan income divided by average CCBX loans is a non-GAAP measure that includes the impact BaaS loan expense on net BaaS loan income and the yield on CCBX loans. The most directly comparable GAAP measure is yield on CCBX loans.

Net interest income net of BaaS loan expense is a non-GAAP measure that includes the impact BaaS loan expense on net interest income. The most directly comparable GAAP measure is net interest income.

Net interest margin, net of BaaS loan expense is a non-GAAP measure that includes the impact of BaaS loan expense on net interest rate margin. The most directly comparable GAAP measure is net interest margin.

Reconciliations of the GAAP and non-GAAP measures are presented below.

	As of and for the Three Months Ended
(dollars in thousands; unaudited)	September 30, 2024			June 30, 2024			September 30, 2023
Net BaaS loan income divided by average CCBX loans:
CCBX loan yield (GAAP)⁽¹⁾		17.35	%		17.77	%		17.05	%
Total average CCBX loans receivable	$	1,552,443		$	1,362,343		$	1,309,380
Interest and earned fee income on CCBX loans (GAAP)		67,692			60,203			56,279
BaaS loan expense		(32,612	)		(29,076	)		(23,003	)
Net BaaS loan income	$	35,080		$	31,127		$	33,276
Net BaaS loan income divided by average CCBX loans ⁽¹⁾		8.99	%		9.19	%		10.08	%
Net interest margin, net of BaaS loan expense:
CCBX interest margin ⁽¹⁾		9.64	%		9.05	%		9.66	%
CCBX earning assets		2,048,918			1,972,989			1,684,012
Net interest income		49,637			44,383			40,990
Less: BaaS loan expense		(32,612	)		(29,076	)		(23,003	)
Net interest income, net of BaaS loan expense	$	17,025		$	15,307		$	17,987
CCBX net interest margin, net of BaaS loan expense ⁽¹⁾		3.31	%		3.12	%		4.24	%

⁽¹⁾ Annualized calculations for periods presented.

APPENDIX A –
As of September 30, 2024

Industry Concentration

We have a diversified loan portfolio, representing a wide variety of industries. Our major categories of loans are commercial real estate, consumer and other loans, residential real estate, commercial and industrial, and construction, land and land development loans. Together they represent $3.43 billion in outstanding loan balances. When combined with $2.29 billion in unused commitments the total of these categories is $5.72 billion.

Commercial real estate loans represent the largest segment of our loans, comprising 39.8% of our total balance of outstanding loans as of September 30, 2024. Unused commitments to extend credit represents an additional $41.5 million, and the combined total in commercial real estate loans represents $1.40 billion, or 24.6% of our total outstanding loans and loan commitments.

The following table summarizes our loan commitment by industry for our commercial real estate portfolio as of September 30, 2024:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments		Total Outstanding Balance & Available Commitment		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
Apartments	$	382,498	$	5,685	$	388,183	6.8	%	$	3,714	103
Hotel/Motel		155,441		189		155,630	2.7			6,758	23
Convenience Store		142,366		614		142,980	2.5			2,296	62
Office		123,423		8,204		131,627	2.3			1,371	90
Warehouse		102,818		2,000		104,818	1.8			1,743	59
Retail		107,934		620		108,554	1.9			1,018	106
Mixed use		93,490		5,273		98,763	1.7			1,154	81
Mini Storage		79,395		14,330		93,725	1.7			3,452	23
Strip Mall		44,089		—		44,089	0.8			6,298	7
Manufacturing		34,599		1,200		35,799	0.6			1,193	29
Groups < 0.70% of total		96,393		3,392		99,785	1.8			1,205	80
Total	$	1,362,446	$	41,507	$	1,403,953	24.6	%	$	2,055	663

Consumer loans comprise 33.0% of our total balance of outstanding loans as of September 30, 2024. Unused commitments to extend credit represents an additional $1.07 billion, and the combined total in consumer and other loans represents $2.20 billion, or 38.4% of our total outstanding loans and loan commitments. As illustrated in the table below, our CCBX partners bring in a large number of mostly smaller dollar loans, resulting in an average consumer loan balance of just $900. CCBX consumer loans are underwritten to CCBX credit standards and underwriting of these loans is regularly tested, including quarterly testing for partners with portfolio balances greater than $10.0 million.

The following table summarizes our loan commitment by industry for our consumer and other loan portfolio as of September 30, 2024:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments		Total Outstanding Balance & Available Commitment ⁽¹⁾		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
CCBX consumer loans
Credit cards	$	633,691	$	1,055,684	$	1,689,375	29.5	%	$	1.7	369,404
Installment loans		471,813		7,112		478,925	8.4			0.9	513,897
Lines of credit		1,362		—		1,362	0.0			2.4	558
Other loans		9,053		—		9,053	0.2			—	365,834
Community bank consumer loans
Installment loans		1,291		1		1,292	0.0			51.6	25
Lines of credit		194		365		559	0.0			6.1	32
Other loans		12,688		3,000		15,688	0.3			32.5	390
Total	$	1,130,092	$	1,066,162	$	2,196,254	38.4	%	$	0.9	1,250,140

⁽¹⁾Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits.

Residential real estate loans comprise 13.9% of our total balance of outstanding loans as of September 30, 2024. Unused commitments to extend credit represents an additional $522.8 million, and the combined total in residential real estate loans represents $1.00 billion, or 17.5% of our total outstanding loans and loan commitments.

The following table summarizes our loan commitment by industry for our residential real estate loan portfolio as of September 30, 2024:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments		Total Outstanding Balance & Available Commitment ⁽¹⁾		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
CCBX residential real estate loans
Home equity line of credit	$	265,402	$	472,385	$	737,787	12.9	%	$	25	10,742
Community bank residential real estate loans
Closed end, secured by first liens		176,066		2,961		179,027	3.1			555	317
Home equity line of credit		25,427		46,515		71,942	1.3			106	239
Closed end, second liens		10,974		925		11,899	0.2			366	30
Total	$	477,869	$	522,786	$	1,000,655	17.5	%	$	42	11,328

⁽¹⁾Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits.

Commercial and industrial loans comprise 8.5% of our total balance of outstanding loans as of September 30, 2024. Unused commitments to extend credit represents an additional $598.4 million, and the combined total in commercial and industrial loans represents $891.0 million, or 15.6% of our total outstanding loans and loan commitments. Included in commercial and industrial loans is $103.9 million in outstanding capital call lines, with an additional $504.6 million in available loan commitments which is limited to a $350.0 million portfolio maximum. Capital call lines are provided to venture capital firms through one of our CCBX BaaS clients. These loans are secured by the capital call rights and are individually underwritten to the Bank’s credit standards and the underwriting is reviewed by the Bank on every capital call line.

The following table summarizes our loan commitment by industry for our commercial and industrial loan portfolio as of September 30, 2024:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments		Total Outstanding Balance & Available Commitment ⁽¹⁾		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
Consolidated C&I loans
Capital Call Lines	$	103,924	$	504,561	$	608,485	10.6	%	$	764	136
Construction/Contractor Services		27,463		34,658		62,121	1.1			136	202
Financial Institutions		48,648		—		48,648	0.9			4,054	12
Retail		33,003		5,725		38,728	0.7			15	2,247
Manufacturing		6,124		5,460		11,584	0.2			149	41
Medical / Dental / Other Care		6,864		2,731		9,595	0.2			528	13
Groups < 0.20% of total		66,553		45,299		111,852	2.0			58	1,143
Total	$	292,579	$	598,434	$	891,013	15.6	%	$	77	3,794

⁽¹⁾Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits.

Construction, land and land development loans comprise 4.8% of our total balance of outstanding loans as of September 30, 2024. Unused commitments to extend credit represents an additional $63.5 million, and the combined total in construction, land and land development loans represents $226.6 million, or 4.0% of our total outstanding loans and loan commitments.

The following table details our loan commitment for our construction, land and land development portfolio as of September 30, 2024:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments		Total Outstanding Balance & Available Commitment		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
Commercial construction	$	97,798	$	41,521	$	139,319	2.5	%	$	7,523	13
Residential construction		35,822		16,846		52,668	0.9			1,990	18
Developed land loans		14,863		723		15,586	0.3			743	20
Undeveloped land loans		8,606		4,086		12,692	0.2			574	15
Land development		5,968		345		6,313	0.1			597	10
Total	$	163,057	$	63,521	$	226,578	4.0	%	$	2,145	76

Exposure and risk in our construction, land and land development portfolio is in line with our average historically, compared to June 30, 2024 when the balance was elevated as indicated in the following table:

	Outstanding Balance as of
(dollars in thousands; unaudited)	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Commercial construction	$	97,798	$	110,372	$	102,099	$	81,489	$	91,396
Residential construction		35,822		34,652		28,751		34,213		33,971
Undeveloped land loans		8,606		8,372		8,190		7,890		8,310
Developed land loans		14,863		13,954		14,307		20,515		21,369
Land development		5,968		5,714		7,515		12,993		12,640
Total	$	163,057	$	173,064	$	160,862	$	157,100	$	167,686

Commitments to extend credit total $2.29 billion at September 30, 2024, however we do not anticipate our customers using the $2.29 billion that is showing as available.

The following table presents outstanding commitments to extend credit as of September 30, 2024:

Consolidated
(dollars in thousands; unaudited)	As of September 30, 2024
Commitments to extend credit:
Commercial and industrial loans	$	93,873
Commercial and industrial loans – capital call lines		504,561
Construction – commercial real estate loans		46,007
Construction – residential real estate loans		17,514
Residential real estate loans		522,786
Commercial real estate loans		41,507
Credit cards		1,055,684
Consumer and other loans		10,478
Total commitments to extend credit	$	2,292,410

We have individual CCBX partner portfolio limits with our each of our partners to manage loan concentration risk, liquidity risk, and counter-party partner risk. For example, as of September 30, 2024, capital call lines outstanding balance totaled $103.9 million, and while commitments totaled $504.6 million, the commitments are limited to a maximum of $350.0 million by agreement with the partner. If a CCBX partner goes over their individual limit, it would be a breach of their contract and the Bank may impose penalties and would not be required to fund the loan.

See the table below for CCBX portfolio maximums and related available commitments:

CCBX
(dollars in thousands; unaudited)	Balance			Percent of CCBX loans receivable		Available Commitments ⁽¹⁾		Maximum Portfolio Size		Cash Reserve/ Pledge Account Amount ⁽²⁾
Commercial and industrial loans:
Capital call lines	$	103,924		6.8	%	$	504,561	$	350,000	$	—
All other commercial & industrial loans		36,494		2.4			16,922		285,153		675
Real estate loans:
Home equity lines of credit ⁽³⁾		265,402		17.5			472,385		375,000		35,597
Consumer and other loans:
Credit cards – cash secured		180					—				—
Credit cards – unsecured		633,511					1,055,684				37,065
Credit cards – total		633,691		41.6			1,055,684		807,263		37,065
Installment loans – cash secured		129,138					7,112				—
Installment loans – unsecured		342,675					—				2,222
Installment loans – total		471,813		31.0			7,112		1,630,027		2,222
Other consumer and other loans		10,415		0.7			—		7,557		383
Gross CCBX loans receivable		1,521,739		100.0	%		2,056,664		3,455,000	$	75,942
Net deferred origination fees		(447	)
Loans receivable	$	1,521,292

⁽¹⁾ Remaining commitment available, net of outstanding balance.
⁽²⁾ Balances are as of October 4, 2024.
⁽³⁾ These home equity lines of credit are secured by residential real estate and are accessed by using a credit card, but are classified as 1-4 family residential properties per regulatory guidelines.

APPENDIX B –
As of September 30, 2024

CCBX – BaaS Reporting Information

During the quarter ended September 30, 2024, $70.1 million was recorded in BaaS credit enhancements related to the provision for credit losses – loans and reserve for unfunded commitments for CCBX partner loans and negative deposit accounts. Agreements with our CCBX partners provide for a credit enhancement provided by the partner which protects the Bank by indemnifying or reimbursing incurred losses. In accordance with accounting guidance, we estimate and record a provision for expected losses for these CCBX loans, unfunded commitments and negative deposit accounts. When the provision for credit losses – loans and provision for unfunded commitments is recorded, a credit enhancement asset is also recorded on the balance sheet through noninterest income (BaaS credit enhancements) in recognition of the CCBX partner legal commitment to indemnify or reimburse losses. The credit enhancement asset is relieved as credit enhancement payments and recoveries are received from the CCBX partner or taken from the partner’s cash reserve account. Agreements with our CCBX partners also provide protection to the Bank from fraud by indemnifying or reimbursing incurred fraud losses. BaaS fraud includes noncredit fraud losses on loans and deposits originated through partners. Fraud losses are recorded when incurred as losses in noninterest expense, and the enhancement received from the CCBX partner is recorded in noninterest income, resulting in a net impact of zero to the income statement. Many CCBX partners also pledge a cash reserve account at the Bank which the Bank can collect from when losses occur that is then replenished by the partner on a regular interval. Although agreements with our CCBX partners provide for credit enhancements that provide protection to the Bank from credit and fraud losses by indemnifying or reimbursing incurred credit and fraud losses, if our partner is unable to fulfill their contracted obligation then the bank would be exposed to additional loan and deposit losses if the cash flows on the loans were not sufficient to fund the reimbursement of loan losses, as a result of this counterparty risk. If a CCBX partner does not replenish their cash reserve account the Bank may consider an alternative plan for funding the cash reserve. This may involve the possibility of adjusting the funding amounts or timelines to better align with the partner’s specific situation. If a mutually agreeable funding plan is not agreed to, the Bank could declare the agreement in default, take over servicing and cease paying the partner for servicing the loan and providing credit enhancements. The Bank would evaluate any remaining credit enhancement asset from the CCBX partner in the event the partner failed to determine if a write-off is appropriate. If a write-off occurs, the Bank would retain the full yield and any fee income on the loan portfolio going forward, and our BaaS loan expense would decrease once default occurred and payments to the CCBX partner were stopped.

The Bank records contractual interest earned from the borrower on CCBX partner loans in interest income, adjusted for origination costs which are paid or payable to the CCBX partner. BaaS loan expense represents the amount paid or payable to partners for credit and fraud enhancements and originating & servicing CCBX loans. To determine net revenue (Net BaaS loan income) earned from CCBX loan relationships, the Bank takes BaaS loan interest income and deducts BaaS loan expense to arrive at Net BaaS loan income (A reconciliation of the non-GAAP measures are set forth in the preceding section of this earnings release.) which can be compared to interest income on the Company’s community bank loans.

The following table illustrates how CCBX partner loan income and expenses are recorded in the financial statements:

Loan income and related loan expense	Three Months Ended
(dollars in thousands; unaudited)	September 30, 2024			June 30, 2024			September 30, 2023
Yield on loans ⁽¹⁾		17.35	%		17.77	%		17.05	%
BaaS loan interest income	$	67,692		$	60,203		$	56,279
Less: BaaS loan expense		32,612			29,076			23,003
Net BaaS loan income ⁽²⁾	$	35,080		$	31,127		$	33,276
Net BaaS loan income divided by average BaaS loans ⁽¹⁾⁽²⁾		8.99	%		9.19	%		10.08	%

⁽¹⁾ Annualized calculation for quarterly periods shown.
⁽²⁾ A reconciliation of the non-GAAP measures are set forth in the preceding section of this earnings release.

An increase in average CCBX loans receivable resulted in increased interest income on CCBX loans during the quarter ended September 30, 2024 compared to the quarter ended June 30, 2024. The increase in average CCBX loans receivable was primarily due to growth in the CCBX loan portfolio as part of our strategy to optimize the CCBX loan portfolio and strengthen our balance sheet through originating higher quality new loans and enhanced credit standards. Increased interest rates and growth in CCBX loans and deposits has resulted in increases in interest income and expense for the quarter ended September 30, 2024 compared to the quarter ended September 30, 2023.

The following tables are a summary of the interest components, direct fees, and expenses of BaaS for the periods indicated and are not inclusive of all income and expense related to BaaS.

Interest income	Three Months Ended
(dollars in thousands; unaudited)	September 30, 2024		June 30, 2024		September 30, 2023
Loan interest income	$	67,692	$	60,203	$	56,279
Total BaaS interest income	$	67,692	$	60,203	$	56,279

Interest expense	Three Months Ended
(dollars in thousands; unaudited)	September 30, 2024		June 30, 2024		September 30, 2023
BaaS interest expense	$	24,819	$	24,119	$	20,384
Total BaaS interest expense	$	24,819	$	24,119	$	20,384

BaaS income	Three Months Ended
(dollars in thousands; unaudited)	September 30, 2024		June 30, 2024		September 30, 2023
BaaS program income:
Servicing and other BaaS fees	$	1,044	$	1,525	$	997
Transaction fees		1,696		1,309		1,036
Interchange fees		1,853		1,625		1,216
Reimbursement of expenses		1,843		1,637		1,152
BaaS program income		6,436		6,096		4,401
BaaS indemnification income:
BaaS credit enhancements		70,108		60,826		25,926
BaaS fraud enhancements		2,084		1,784		2,850
BaaS indemnification income		72,192		62,610		28,776
Total noninterest BaaS income	$	78,628	$	68,706	$	33,177

Servicing and other BaaS fees decreased $481,000 in the quarter ended September 30, 2024 compared to the quarter ended June 30, 2024 while transaction fees and interchange fees increased $387,000 and $228,000, respectively. We expect servicing and other BaaS fees to decrease and transaction and interchange fees to increase as partner activity grows and contracted minimum fees are replaced with recurring fees and then exceed those minimum fees.

BaaS loan and fraud expense:	Three Months Ended
(dollars in thousands; unaudited)	September 30, 2024		June 30, 2024		September 30, 2023
BaaS loan expense	$	32,612	$	29,076	$	23,003
BaaS fraud expense		2,084		1,784		2,850
Total BaaS loan and fraud expense	$	34,696	$	30,860	$	25,853

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2d50cba0-18d9-4c78-8e96-0418250a8658

The MIL Network –

January 25, 2025

MIL-OSI Europe: ASIA/PHILIPPINES – Special fundraising campaign for the victims of Typhoon ‘Kristine’

Source: Agenzia Fides – MIL OSI

Caritas Manila

Manila (Agenzia Fides) – The Apostolic Vicariate of Calapan collected donations for those affected by Typhoon Kristine (international name: Trami) during Sunday Mass, to express its concrete closeness to the people, families and communities seriously affected by the tropical storm that hit the eastern Philippines.Parishes and religious communities joined the fundraising campaign yesterday, October 27, and called on the faithful to participate. “In the spirit of fraternal solidarity and ecclesial synodality, special collections will also be carried out in Catholic schools and institutions in the coming days,” announced the Apostolic Vicar, Bishop Moises M. Cuevas. “We ask parishes to extend their generosity by allocating a certain amount from the general parish fund. In addition, we ask that a personal appeal be made to wealthy families, organizations, associations, movements and possible donors within the jurisdiction of each parish, directly requesting financial support from them,” said Bishop Cuevas, referring to the situation of families who have lost everything. In view of the devastating situation on the ground, the Philippine Bishops’ Conference, through its national Caritas, has launched a fundraising appeal to help affected families and communities in the ecclesiastical districts that encompass the area of the Bicol Region, including the Vicariate of Calapan, the Dioceses of Caceres and Camarines Sur. As reported, the donations will help provide much-needed assistance to those affected by the typhoon. Father Marc Real, Executive Director of Caritas Caceres, reported that the main roads leading to the city of Naga remain flooded, hampering the mobility of residents and the delivery of humanitarian aid. The violent tropical storm “Kristine” had hit the country in recent days, devastating most of the provinces in the Bicol region, causing thousands of deaths and damaging their livelihoods. According to the National Disaster Risk Management (NDRRMC), in addition to 136 who have lost their lives (and the number is rising), about 190,000 families, totaling more than 970,000 people, including the elderly, women and children, were displaced by the floods and inundations caused by the cyclone. Pope Francis yesterday, October 27, during the Angelus prayer with the pilgrims and faithful gathered in St. Peter’s Square said: “I am close to the population of the Philippines, struck by a powerful cyclone. May the Lord support that people, so full of faith.” (PA) (Agenzia Fides, 28/10/2024)
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MIL OSI Europe News –

January 25, 2025

MIL-OSI Economics: RBI imposes monetary penalty on The Gondia District Central Co-operative Bank Ltd., Maharashtra

Source: Reserve Bank of India

The Reserve Bank of India (RBl) has, by an order dated October 21, 2024, imposed a monetary penalty of ₹2.60 lakh (Rupees Two lakh sixty thousand only) on The Gondia District Central Co-operative Bank Ltd., Maharashtra (the bank) for contravention of the provisions of section 20 read with section 56 of the Banking Regulation Act, 1949 (BR Act) and non-compliance with certain directions issued by RBI on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’. This penalty has been imposed in exercise of powers vested in RBI, conferred under section 47A(1)(c) read with sections 46(4)(i) and section 56 of the BR Act and section 25 of the Credit Information Companies (Regulation) Act, 2005.

The statutory inspection of the bank was conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as on March 31, 2023. Based on supervisory findings of contravention of statutory provisions / non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said provisions/directions.

After considering the bank’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:

The bank had:

sanctioned a loan to its director; and
failed to obtain the membership of three CICs.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

(Puneet Pancholy)
Chief General Manager

Press Release: 2024-2025/1387

MIL OSI Economics –

January 25, 2025

Category: Economy

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