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Category: Finance

  • MIL-OSI: Credicorp Ltd.: Credicorp Declares S/40.00 per Share Cash Dividend for Fiscal Year 2024

    Source: GlobeNewswire (MIL-OSI)

    Lima, April 24, 2025 (GLOBE NEWSWIRE) — Lima, Peru, April 24, 2025 — Credicorp Ltd. (NYSE: BAP | BVL: BAP), the leading financial services holding company in Peru with a diversified presence in Chile, Colombia, Bolivia and Panama, announced today that its Board of Directors declared a cash dividend of S/40.00 per share for a total of S/3,775,292,680.00 in line with the Company’s Bye-Laws and taking into account the total net income attained in the 2024 financial year of S/5,501,254,379.37.  The cash dividend will be paid out on June 13, 2025, without withholding tax at source, to shareholders of record on May 19, 2025.

    Gianfranco Ferrari, CEO of Credicorp, commented: “This dividend reflects the record results we achieved in 2024, the strength of our diversified business model and its ability to generate sustainable earnings across cycles. We remain committed to our vision of generating the right impact on society, while driving disruption and innovation across our businesses to shape the future of financial services in the region.”

    The cash dividend will be paid in US Dollars using the weighted exchange rate published by the Peruvian Superintendency of Banks, Insurance and Pension Funds (Superintendencia de Banca, Seguros y AFP) for transactions at the close of business on June 11, 2025. The US Dollar dividend amount will be rounded up to four decimal places.

    About Credicorp
    Credicorp Ltd. (NYSE: BAP) is the leading financial services holding company in Peru, with a diversified business portfolio organized into four primary lines of business: Universal Banking, through Banco de Crédito del Perú (BCP) and Banco de Crédito de Bolivia; Microfinance, through Mibanco in Peru and Colombia; Insurance and Pension Funds, through Grupo Pacifico and Prima AFP; and Investment Management and Advisory, through Credicorp Capital and ASB Bank Corp. Credicorp has a presence in Peru, Chile, Colombia, Bolivia, and Panama.

    For further information, please contact the IR team:

    investorrelations@credicorpperu.com

    Investor Relations
    Credicorp Ltd.

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

    The following resolutions were considered by shareholders:

    Election of Directors

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

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

    Appointment of Auditors 

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

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

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

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

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

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

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

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

    About TransAlta Corporation:

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

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

    For more information:

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

    The MIL Network –

  • MIL-OSI: Bel Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    WEST ORANGE, N.J., April 24, 2025 (GLOBE NEWSWIRE) — Bel Fuse Inc. (Nasdaq: BELFA and BELFB) today announced preliminary financial results for the first quarter of 2025.

    First Quarter 2025 Highlights

    • Net sales of $152.2 million compared to $128.1 million in Q1-24. Excluding $32.4 million of contribution from Enercon, organic sales down 6.4% from Q1-24.
    • Gross profit margin of 38.6%, up from 37.5% in Q1-24
    • GAAP net earnings attributable to Bel shareholders of $17.9 million versus $15.9 million in Q1-24
    • Non-GAAP net earnings attributable to Bel shareholders of $16.8 million versus $17.0 million in Q1-24
    • Adjusted EBITDA of $30.9 million (20.3% of sales) as compared to $22.4 million (17.5% of sales) in Q1-24
    • Announced Farouq Tuweiq’s appointment as Bel’s President and CEO, to be effective immediately following the Company’s Annual Meeting of Shareholders (to be held in May 2025)
       

    “We are pleased with our first quarter results, which benefitted from our increased exposure within the defense and commercial aerospace industries and strength in the emerging AI end market,” said Daniel Bernstein, President and CEO. “These factors helped to mitigate the seasonality around Chinese New Year which has historically dictated the trend for our first quarter. Looking ahead at our underlying business demand, we generally expect continued strength in the defense, space and AI end markets throughout the year, which are anticipated to mitigate lower volumes going into the rail, e-Mobility and consumer markets,” concluded Mr. Bernstein.

    Farouq Tuweiq, CFO, added, “Looking to the second quarter, we are operating in a highly dynamic environment and there is difficulty in predicting the moving target of tariffs and assessing the corresponding impact given ongoing and potential future changes. As Bel generally designs and manufactures its products within close geographic proximity to our customers, we estimate that approximately 75% of our global sales are not currently subject to the recent U.S. tariffs that have been imposed. We estimate that ~10% of our consolidated sales relate to product that is manufactured in China and shipped into the U.S., and this is the subset of our revenue where certain customers have requested a pause on orders while the supply chain awaits additional clarity on the longer-term tariff policy with China. Based on information available today, GAAP net sales in the second quarter of 2025 are projected to be in the range of $145 to $155 million, with gross margin in the range of 37% to 39%. This guidance for the second quarter, which is typically solely based on our underlying business demand and existing orders on hand, has been modified downward to take into account approximately $8-10 million of what we believe is a reasonable allowance for potential downside impact from China-related tariffs and a lower expected volume of intraquarter turns. The team will continue to closely monitor the evolving tariff landscape and assess potential alternatives that are within our control,” concluded Mr. Tuweiq.

    Mr. Bernstein continued, “With my upcoming transition to the role of non-executive Chairman of the Board in May, it has been a privilege to be part of Bel’s journey over the past 45 years. The success of the Company is based solely on the dedication of all of our associates, past and present, and it has been an honor to lead such a talented group of associates during my tenure as President and CEO. I am confident about Bel’s future under the leadership of Farouq and the Executive team,” concluded Mr. Bernstein.

    Non-GAAP financial measures, such as Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA, adjust corresponding GAAP measures for provision for income taxes, other income/expense, net, interest income/expense, and depreciation and amortization, and also exclude, where applicable for the covered period presented in the financial statements, certain unusual or special items identified by management such as restructuring charges, gains/losses on sales of businesses and properties, acquisition related costs, impairment charges, noncontrolling interest (“NCI”) adjustments from fair value to redemption value, and certain litigation costs. In addition, in the fourth quarter of 2024, we modified our presentation of Non-GAAP financial measures, including revising our definitions of Adjusted EBITDA and Non-GAAP EPS, to additionally exclude from these Non-GAAP measures (i) stock-based compensation, (ii) amortization of intangibles (which primarily relates to the amortization of finite-lived customer relationships and technology associated with the Company’s historical acquisitions, including those associated with the recent acquisition of Enercon), and (iii) unrealized foreign currency exchange (gains) losses. We believe this change enhances investor insight into our operational performance. We have applied this modified definition of Adjusted EBITDA and Non-GAAP EPS to all periods presented. Please refer to the financial information included with this press release for reconciliations of GAAP financial measures to Non-GAAP financial measures and our explanation of why we present Non-GAAP financial measures.

    Conference Call
    Bel has scheduled a conference call for 8:30 a.m. ET on Friday, April 25, 2025 to discuss these results. To participate in the conference call, investors should dial 877-407-0784, or 201-689-8560 if dialing internationally. The presentation will additionally be broadcast live over the Internet and will be available at https://ir.belfuse.com/events-and-presentations. The webcast will be available via replay for a period of at least 30 days at this same Internet address. For those unable to access the live call, a telephone replay will be available at 844-512-2921, or 412-317-6671 if dialing internationally, using access code 13753007 after 12:30 pm ET, also for 30 days.

    About Bel
    Bel (www.belfuse.com) designs, manufactures and markets a broad array of products that power, protect and connect electronic circuits. These products are primarily used in the defense, commercial aerospace, networking, telecommunications, computing, general industrial, high-speed data transmission, transportation and eMobility industries. Bel’s portfolio of products also finds application in the automotive, medical, broadcasting and consumer electronics markets. Bel’s product groups include Power Solutions and Protection (front-end, board-mount, industrial and transportation power products, module products and circuit protection), Connectivity Solutions (expanded beam fiber optic, copper-based, RF and RJ connectors and cable assemblies), and Magnetic Solutions (integrated connector modules, power transformers, power inductors and discrete components). The Company operates facilities around the world.

    Company Contact:
    Farouq Tuweiq  
    Chief Financial Officer  
    ir@belf.com

    Investor Contact:
    Three Part Advisors
    Jean Marie Young, Managing Director or Steven Hooser, Partner
    631-418-4339
    jyoung@threepa.com; shooser@threepa.com

    Cautionary Language Concerning Forward-Looking Statements
    This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, our guidance for the second quarter of 2025; our statements regarding our expectations for future periods generally including anticipated financial performance, projections and trends for the remainder of the 2025 year ahead and other future periods; our statements regarding future events, performance, plans, intentions, beliefs, expectations and estimates, including statements regarding matters such as trends and expectations as to our sales, volumes, gross margin, products, product groups, customers, geographies and end markets; statements about uncertainty of the evolving tariff landscape, associated difficulties in forecasting, expectations regarding future clarity on tariff policy, the Company’s estimates concerning Bel’s global sales and recently imposed tariffs, and the Company’s intention to continue to monitor the tariff landscape and assess potential alternatives; statements about anticipated continued strength in certain end markets, and views on the effects on the Company’s overall future performance; statements about the Company’s upcoming management transition; and statements regarding our expectations and beliefs regarding trends in the Company’s business and industry and the markets in which Bel operates, and about broader market trends and the macroeconomic environment generally, and other statements regarding the Company’s positioning, its strategies, future progress, investments, plans, targets, goals, and other focuses and initiatives, and the expected timing and potential benefits thereof. These forward-looking statements are made as of the date of this release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “forecast,” “outlook,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Bel’s control. Bel’s actual results could differ materially from those stated or implied in our forward-looking statements (including without limitation any of Bel’s projections) due to a number of factors, including but not limited to, difficulties associated with integrating previously acquired companies, including any unanticipated difficulties, or unexpected or higher than anticipated expenditures, relating to Bel’s November 2024 acquisition of Enercon, and including, without limitation, the risk that Bel is unable to integrate the Enercon business successfully or difficulties that result in the failure to realize the expected benefits and synergies within the expected time period (if at all); the possibility that the Bel’s intended acquisition of the remaining 20% stake in Enercon is not completed in accordance with the shareholders agreement as contemplated for any reason, and any resulting disruptions to Bel’s business and its currently 80% owned Enercon subsidiary as a result thereof; trends in demand which can affect Bel’s products and results, including that demand in Enercon’s end markets can be cyclical, impacting the demand for Enercon’s products, which could be materially adversely affected by reductions in defense spending; the market concerns facing Bel’s customers, and risks for the Company’s business in the event of the loss of certain substantial customers; the continuing viability of sectors that rely on Bel’s products; the effects of business and economic conditions, and challenges impacting the macroeconomic environment generally and/or Bel’s industry in particular; the effects of rising input costs, and cost changes generally, including the potential impact of inflationary pressures; capacity and supply constraints or difficulties, including supply chain constraints or other challenges; the impact of public health crises; difficulties associated with the availability of labor, and the risks of any labor unrest or labor shortages; risks associated with Bel’s international operations, including Bel’s substantial manufacturing operations in China, and following Bel’s November 2024 acquisition of Enercon , risks associated with operations in Israel, which may be adversely affected by political or economic instability, major hostilities or acts of terrorism in the region; risks associated with restructuring programs or other strategic initiatives, including any difficulties in implementation or realization of the expected benefits or cost savings; product development, commercialization or technological difficulties; the regulatory and trade environment including the potential effects of the imposition of new or increased tariffs and trade restrictions that may impact Bel, its customers and/or its suppliers, and risks associated with the evolving trade environment, the ongoing implementation and modification of tariffs, trade restrictions, and changes in trade agreements, and general uncertainty about future changes in trade and tariff policy; risks associated with fluctuations in foreign currency exchange rates and interest rates; uncertainties associated with legal proceedings; the market’s acceptance of the Company’s new products and competitive responses to those new products; the impact of changes to U.S. and applicable foreign legal and regulatory requirements, including tax laws, trade and tariff policies, such as any new or increase in tariffs imposed either by the U.S. government on foreign imports or by a foreign government on U.S. exports related to the countries in which Bel transacts business; and the risks detailed in Bel’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and in subsequent reports filed by Bel with the Securities and Exchange Commission, as well as other documents that may be filed by Bel from time to time with the Securities and Exchange Commission. In light of the risks and uncertainties impacting Bel’s business, there can be no assurance that any forward-looking statement will in fact prove to be correct. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Bel’s views as of the date of this press release. Bel anticipates that subsequent events and developments will cause its views to change. Bel undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Bel’s views as of any date subsequent to the date of this press release.

    Non-GAAP Financial Measures

    The Non-GAAP financial measures identified in this press release as well as in the supplementary information to this press release (Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA) are not measures of performance under accounting principles generally accepted in the United States of America (“GAAP”). These measures should not be considered a substitute for, and the reader should also consider, income from operations, net earnings, earnings per share and other measures of performance as defined by GAAP as indicators of our performance or profitability. Our non-GAAP measures may not be comparable to other similarly-titled captions of other companies due to differences in the method of calculation. We present results adjusted to exclude the effects of certain unusual or special items and their related tax impact that would otherwise be included under U.S. GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. For additional information about our use of non-GAAP financial measures in connection with our Incentive Compensation Program, please see the Executive Compensation Discussion and Analysis (CD&A) section appearing in our Definitive Proxy Statement filed with the Securities and Exchange Commission on April 11, 2025.

    Website Information
    We routinely post important information for investors on our website, www.belfuse.com, in the “Investor Relations” section. We use our website as a means of disclosing material, otherwise non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, Securities and Exchange Commission (SEC) filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

    [Financial tables follow]

           
    Bel Fuse Inc.
    Supplementary Information(1)
    Condensed Consolidated Statements of Operations
    (in thousands, except per share amounts)
    (unaudited)
           
        Three Months Ended  
        March 31,  
        2025     2024  
                     
    Net sales   $ 152,238     $ 128,090  
    Cost of sales     93,419       80,012  
    Gross profit     58,819       48,078  
    As a % of net sales     38.6 %     37.5 %
                     
    Research and development costs     7,222       5,215  
    Selling, general and administrative expenses     29,507       24,944  
    As a % of net sales     19.4 %     19.5 %
    Restructuring charges     (2,933 )     65  
    Income from operations     25,023       17,854  
    As a % of net sales     16.4 %     13.9 %
                     
    Interest expense     (4,152 )     (434 )
    Interest income     275       1,115  
    Other income, net     2,639       1,817  
    Earnings before income taxes     23,785       20,352  
                     
    Provision for income taxes     5,463       4,478  
    Effective tax rate     23.0 %     22.0 %
    Net earnings   $ 18,322     $ 15,874  
    As a % of net sales     12.0 %     12.4 %
                     
    Less: Net earnings attributable to noncontrolling interest     838       –  
    Redemption value adjustment attributable to noncontrolling interest     (390 )     –  
    Net earnings attributable to Bel Fuse Shareholders   $ 17,874     $ 15,874  
                     
    Weighted average number of shares outstanding:                
    Class A common shares – basic and diluted     2,115       2,139  
    Class B common shares – basic and diluted     10,457       10,610  
                     
    Net earnings per common share:                
    Class A common shares – basic and diluted   $ 1.36     $ 1.19  
    Class B common shares – basic and diluted     1.43     $ 1.26  
                     

    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.

                 
    Bel Fuse Inc.
    Supplementary Information(1)
    Condensed Consolidated Balance Sheets
    (in thousands, unaudited)
                 
        March 31, 2025     December 31, 2024  
    Assets                
    Current assets:                
    Cash and cash equivalents   $ 65,927     $ 68,253  
    Held to maturity U.S. Treasury securities     950       950  
    Accounts receivable, net     103,643       111,376  
    Inventories     164,815       161,370  
    Other current assets     33,090       31,581  
    Total current assets     368,425       373,530  
    Property, plant and equipment, net     47,271       47,879  
    Right-of-use assets     24,962       25,125  
    Related-party note receivable     3,270       2,937  
    Equity method investment     9,856       9,265  
    Goodwill and other intangible assets, net     436,438       439,984  
    Other assets     50,234       51,069  
    Total assets   $ 940,456     $ 949,789  
                     
    Total liabilities, redeemable noncontrolling interests and stockholders’ equity                
    Current liabilities:                
    Accounts payable   $ 46,110     $ 49,182  
    Operating lease liability, current     8,540       7,954  
    Other current liabilities     56,585       70,933  
    Total current liabilities     111,235       128,069  
    Long-term debt     280,000       287,500  
    Operating lease liability, long-term     17,349       17,763  
    Other liabilities     73,937       75,295  
    Total liabilities     482,521       508,627  
    Redeemable noncontrolling interests     81,034       80,586  
    Stockholders’ equity     376,901       360,576  
    Total liabilities, redeemable noncontrolling interests and stockholders’ equity   $ 940,456     $ 949,789  
                     

    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.

           
    Bel Fuse Inc.
    Supplementary Information(1)
    Condensed Consolidated Statements of Cash Flows
    (in thousands, unaudited)
           
        Three Months Ended  
        March 31,  
        2025     2024  
                     
    Cash flows from operating activities:                
    Net earnings   $ 18,322     $ 15,874  
    Adjustments to reconcile net earnings to net cash provided by operating activities:                
    Depreciation and amortization     6,684       3,684  
    Stock-based compensation     1,179       804  
    Amortization of deferred financing costs     295       26  
    Deferred income taxes     (1,412 )     (1,676 )
    Net unrealized gains on foreign currency revaluation     (3,663 )     (647 )
    Other, net     (518 )     (71 )
    Changes in operating assets and liabilities:                
    Accounts receivable, net     8,220       725  
    Unbilled receivables     (601 )     3,644  
    Inventories     (2,462 )     5,688  
    Accounts payable     (3,374 )     (7,575 )
    Accrued expenses     (11,058 )     (16,440 )
    Accrued restructuring costs     (4,508 )     (1,254 )
    Income taxes payable     4,107       4,971  
    Other operating assets/liabilities, net     (3,064 )     (1,603 )
    Net cash provided by operating activities     8,147       6,150  
                     
    Cash flows from investing activities:                
    Purchases of property, plant and equipment     (2,790 )     (2,929 )
    Purchases of held to maturity U.S. Treasury securities     –       (42,726 )
    Proceeds from held to maturity securities     –       30,374  
    Investment in related party notes receivable     (333 )     (492 )
    Proceeds from sale of property, plant and equipment     58       192  
    Net cash used in investing activities     (3,065 )     (15,581 )
                     
    Cash flows from financing activities:                
    Dividends paid to common stockholders     (829 )     (837 )
    Purchases of common stock     –       (6,283 )
    Proceeds of long-term debt     5,000       –  
    Repayments of long-term debt     (12,500 )     –  
    Net cash used in financing activities     (8,329 )     (7,120 )
                     
    Effect of exchange rate changes on cash and cash equivalents     921       (1,500 )
                     
    Net decrease in cash and cash equivalents     (2,326 )     (18,051 )
    Cash and cash equivalents – beginning of period     68,253       89,371  
    Cash and cash equivalents – end of period   $ 65,927     $ 71,320  
                     
                     
    Supplementary information:                
    Cash paid during the period for:                
    Income taxes, net of refunds received   $ 2,277     $ 978  
    Interest payments   $ 4,207     $ 981  
    ROU assets obtained in exchange for lease obligations   $ 637     $ 2,951  
                     

    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.

                 
    Bel Fuse Inc.
    Supplementary Information(1)
    Product Group Highlights
    (dollars in thousands, unaudited)
                 
        Sales     Gross Margin  
        Q1-25     Q1-24     % Change     Q1-25     Q1-24     Basis Point Change  
    Power Solutions and Protection   $ 83,054     $ 60,247       37.9 %     42.6 %     44.0 %     (140 )
    Connectivity Solutions     50,730       54,285       -6.5 %     37.9 %     36.1 %     180  
    Magnetic Solutions     18,454       13,558       36.1 %     24.7 %     16.0 %     870  
    Total   $ 152,238     $ 128,090       18.9 %     38.6 %     37.5 %     110  
                                                     

    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.

           
    Bel Fuse Inc.
    Supplementary Information(1)
    Reconciliation of GAAP Net Earnings to Non-GAAP Operating Income and Adjusted EBITDA(2)(3)
    (in thousands, unaudited)
           
        Three Months Ended  
        March 31,  
        2025     2024  
                     
    GAAP Net earnings   $ 18,322     $ 15,874  
    Provision for income taxes     5,463       4,478  
    Other income/expense, net     (2,639 )     (1,817 )
    Interest income     (275 )     (1,115 )
    Interest expense     4,152       434  
    GAAP Operating Income   $ 25,023     $ 17,854  
    Restructuring charges     (2,933 )     65  
    Amortization of inventory step-up     958       –  
    Stock-based compensation     1,179       804  
    Non-GAAP Operating Income   $ 24,227     $ 18,723  
    Depreciation and amortization     6,684       3,684  
    Adjusted EBITDA   $ 30,911     $ 22,407  
    % of net sales     20.3 %     17.5 %
                     

    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
    (2) In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA. We present results adjusted to exclude the effects of certain specified items and their related tax impact that would otherwise be included under GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. See the section above captioned “Non-GAAP Financial Measures” for additional information.
    (3) In the fourth quarter of 2024, we modified our presentation of Non-GAAP financial measures, including revising our definitions of Adjusted EBITDA and Non-GAAP EPS, to additionally exclude from these Non-GAAP measures (i) stock-based compensation, (ii) amortization of intangibles (which primarily relates to the amortization of finite-lived customer relationships and technology associated with the Company’s historical acquisitions, including those associated with the recent acquisition of Enercon), and (iii) unrealized foreign currency exchange (gains) losses. We believe this change enhances investor insight into our operational performance. We have applied this modified definition of Adjusted EBITDA and Non-GAAP EPS to all periods presented.

    Bel Fuse Inc.
    Supplementary Information(1)
    Reconciliation of GAAP Measures to Non-GAAP Measures(2)(4)
    (in thousands, except per share data) (unaudited)
     

    The following tables detail the impact that certain unusual or special items had on the Company’s net earnings per common Class A and Class B basic and diluted shares (“EPS”) and the line items in which these items were included on the consolidated statements of operations.

        Three Months Ended March 31, 2025     Three Months Ended March 31, 2024  
    Reconciling Items   Earnings before taxes     Provision for income taxes     Net Earnings Attributable to Bel Fuse Shareholders     Class A EPS(3)     Class B EPS(3)     Earnings before taxes     Provision for income taxes     Net Earnings Attributable to Bel Fuse Shareholders     Class A EPS(3)     Class B EPS(3)  
                                                                                     
    GAAP measures   $ 23,785     $ 5,463     $ 17,874     $ 1.36     $ 1.43     $ 20,352     $ 4,478     $ 15,874     $ 1.19     $ 1.26  
    Restructuring charges     (2,933 )     (371 )     (2,562 )     (0.20 )     (0.21 )     65       –       65       –       –  
    Redemption value adjustment on redeemable NCI     –       –       (390 )     (0.03 )     (0.03 )     –       –       –       –       –  
    Amortization of inventory step-up     958       220       738       0.06       0.06       –       –       –       –       –  
    Stock-based compensation     1,179       243       936       0.07       0.08       804       166       638       0.05       0.05  
    Amortization of intangibles     3,686       648       3,038       0.23       0.24       1,394       264       1,130       0.09       0.09  
    Unrealized foreign currency exchange (gains) losses     (3,663 )     (868 )     (2,795 )     (0.21 )     (0.22 )     (899 )     207       (692 )     (0.05 )     (0.05 )
    Non-GAAP measures   $ 23,012     $ 5,335     $ 16,839     $ 1.28     $ 1.35     $ 21,716     $ 5,115     $ 17,015     $ 1.27     $ 1.35  
                                                                                     

    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
    (2) In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA. We present results adjusted to exclude the effects of certain specified items and their related tax impact that would otherwise be included under GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. See the section above captioned “Non-GAAP Financial Measures” for additional information.
    (3) Individual amounts of earnings per share may not agree to the total due to rounding.
    (4) In the fourth quarter of 2024, we modified our presentation of Non-GAAP financial measures, including revising our definitions of Adjusted EBITDA and Non-GAAP EPS, to additionally exclude from these Non-GAAP measures (i) stock-based compensation, (ii) amortization of intangibles (which primarily relates to the amortization of finite-lived customer relationships and technology associated with the Company’s historical acquisitions, including those associated with the recent acquisition of Enercon), and (iii) unrealized foreign currency exchange (gains) losses. We believe this change enhances investor insight into our operational performance. We have applied this modified definition of Adjusted EBITDA and Non-GAAP EPS to all periods presented.

           
    Bel Fuse Inc.
    Supplementary Information    (1)
    Reconciliation of GAAP Measures to Non-GAAP Measures    (2)(4)
    (in thousands, except per share data) (unaudited)
           
        Three Months Ended June 30, 2024  
    Reconciling Items   Earnings before taxes     Provision for income taxes     Net Earnings Attributable to Bel Fuse Shareholders     Class A EPS(3)     Class B EPS(3)  
                                             
    GAAP measures   $ 22,883     $ 4,077     $ 18,806     $ 1.43     $ 1.50  
    Restructuring charges     638       153       485       0.04       0.04  
    Stock-based compensation     972       200       772       0.06       0.06  
    Amortization of intangibles     1,148       239       909       0.07       0.07  
    Unrealized foreign currency exchange (gains) losses     370       80       290       0.02       0.02  
    Non-GAAP measures   $ 26,011     $ 4,749     $ 21,262     $ 1.61     $ 1.70  
        Three Months Ended September 30, 2024  
    Reconciling Items   Earnings before taxes     Provision for income taxes     Net Earnings Attributable to Bel Fuse Shareholders     Class A EPS(3)     Class B EPS(3)  
                                             
    GAAP measures   $ 11,188     $ 3,108     $ 8,080     $ 0.61     $ 0.65  
    Restructuring charges     1,087       154       933       0.07       0.07  
    Acquisition related costs     4,292       987       3,305       0.25       0.27  
    Stock-based compensation     1,007       208       799       0.06       0.06  
    Amortization of intangibles     1,152       239       913       0.07       0.07  
    Unrealized foreign currency exchange (gains) losses     1,075       266       809       0.06       0.06  
    Non-GAAP measures   $ 19,801     $ 4,962     $ 14,839     $ 1.13     $ 1.19  
                                             

    (1) The supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
    (2) In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA. We present results adjusted to exclude the effects of certain specified items and their related tax impact that would otherwise be included under GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. See the section above captioned “Non-GAAP Financial Measures” for additional information.
    (3) Individual amounts of earnings per share may not agree to the total due to rounding.
    (4) In the fourth quarter of 2024, we modified our presentation of Non-GAAP financial measures, including revising our definitions of Adjusted EBITDA and Non-GAAP EPS, to additionally exclude from these Non-GAAP measures (i) stock-based compensation, (ii) amortization of intangibles (which primarily relates to the amortization of finite-lived customer relationships and technology associated with the Company’s historical acquisitions, including those associated with the recent acquisition of Enercon), and (iii) unrealized foreign currency exchange (gains) losses. We believe this change enhances investor insight into our operational performance. We have applied this modified definition of Adjusted EBITDA and Non-GAAP EPS to all periods presented.

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

    Performance Highlights for the First Quarter of 2025

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

    Declaration of Quarterly Dividend

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

    Results of Operations

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

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

    Net Interest Income and Net Interest Margin

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

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

    Provision for Credit Losses on Loans

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

    Non-Interest Income and Expense

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

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

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

    Income Tax Expense

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

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

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

    Net Interest Income and Net Interest Margin

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

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

    Provision for Credit Losses on Loans

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

    Non-Interest Income and Expense

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

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

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

    Income Tax Expense

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

    Asset Quality

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

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

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

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

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

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

    Balance Sheet Summary

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

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

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

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

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

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

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

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

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

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

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

    About the Company

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

    Post Earnings Conference Call

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

    Forward Looking Statements

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

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

    Footnotes

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

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

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

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

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

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

    The MIL Network –

  • MIL-OSI Africa: Justice Department concludes inaugural Justice Forum

    Source: South Africa News Agency

    The Department of Justice and Constitutional Development (DJCOD) has successfully concluded its two-day inaugural Justice Forum, aimed at creating an environment of collaborative governance and unified service delivery in the department.

    Held at the Brigitte Mabandla Justice College in Tshwane, the forum brought together senior leaders from across the department, including Justice and Constitutional Development Minister Mmamoloko Kubayi, Deputy Minister Andries Nel, the Director-General, Advocate Doctor Mashabane executive management, provincial heads, and senior officials from the Master’s and State Attorney’s Offices.

    In her closing remarks, Kubayi reaffirmed the department’s commitment to strengthening South Africa’s justice system through decisive leadership, institutional reform, and improved service delivery.

    “Our focus must be on getting the basics right. Functional systems, responsive leadership, and a collaborative approach are fundamental to restoring public confidence and delivering accessible, efficient justice services,” Kubayi said.

    Moving forward

    The department noted that a central theme for the forum was modernisation and reform of the Guardian’s Fund.

    A central theme of the forum was the modernisation of the Master’s and State Attorney’s Offices, which continue to experience systemic inefficiencies, including backlogs, outdated processes, and capacity shortfalls. 

    Kubayi confirmed that comprehensive turnaround strategies will be implemented across the country, with a strong focus on digital transformation, leadership accountability, and service excellence.

    The forum acknowledged the need to restore public confidence in the Guardian’s Fund, which has been affected by cyber-related incidents in recent years. 

    The meeting also agreed on measures to strengthen security, improve oversight, and digitise operations to safeguard the integrity of the fund.

    A report was presented to the forum on the challenges at the State Attorney’s Office, including “high staff turnover and escalating litigation costs”.

    In response, the forum adopted a resolution to implement a centralised, streamlined organisational model supported by improved staffing structures, better use of technology, and tighter controls on the briefing of legal practitioners.

    The meeting resolved that the Office of the Solicitor-General will be fully capacitated to ensure effective coordination of litigation on behalf of the State.

    On the issue of human resources, the forum reached resolution to “reinforce a culture of ethical leadership and accountability across the department”.

    “[The forum] endorsed the centralisation of senior management appointments, updates to human resource policies, and the strengthening of provincial execution committees.

    “In alignment with national anti-corruption efforts, the Forum welcomed the introduction of lifestyle audits for senior managers, following a presentation by the Head of the Special Investigating Unit, Advocate Andy Mothibi,” the department said.

    The forum concluded with a clear set of resolutions for the 2025/2026 financial year, laying a strong foundation for a justice system that is accessible, people-centred, and grounded in integrity. – SAnews.gov.za

    MIL OSI Africa –

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

    Source: GlobeNewswire (MIL-OSI)

    First Quarter 2025 Summary

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

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

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

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

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

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

    _____________________

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

    Operating Results for the First Quarter 2025

    Revenue

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

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

    Net Interest Income

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

    Net Interest Margin

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

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

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

    Non-interest Income

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

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

    Non-interest Expense

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

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

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

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

    Income Taxes

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

    Loans

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

    Deposits

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

    Borrowings

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

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

    Assets Under Management

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

    Credit Quality

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

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

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

    Capital

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

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

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

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

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

    Conference Call, Webcast and Slide Presentation

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

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

    About First Western

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

    Non-GAAP Financial Measures

    Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include “Tangible Common Equity,” “Tangible Common Book Value per Share,” “Return on Tangible Common Equity,” “Efficiency Ratio,” “Gross Revenue,” and “Allowance for Credit Losses to Adjusted Loans”. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies. Reconciliation of non-GAAP financial measures to GAAP financial measures are provided at the end of this press release.

    Forward-Looking Statements

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

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

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

    ____________________

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

    ________________________

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

    The MIL Network –

  • MIL-OSI: Apollo Commercial Real Estate Finance, Inc. Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, April 24, 2025 (GLOBE NEWSWIRE) — Apollo Commercial Real Estate Finance, Inc. (the “Company” or “ARI”) (NYSE:ARI) today reported results for the quarter ended March 31, 2025.

    Net income attributable to common stockholders per diluted share of common stock was $0.16 for the quarter ended March 31, 2025. Distributable Earnings per diluted share of common stock (a non-GAAP financial measure defined below) was $0.24 for the quarter ended March 31, 2025.

    Commenting on first quarter 2025 performance, Stuart Rothstein, Chief Executive Officer and President of the Company, said:

    “ARI’s first quarter earnings reflect the impact of elevated repayments at the end of fourth quarter of 2024 and the timing of our first quarter capital deployment, which totaled $650 million,” said Stuart Rothstein, Chief Executive Officer and President of ARI. “We continue to make progress with our focus assets and remain focused on redeploying the capital into newly originated loans.”

    ARI issued a detailed presentation of the Company’s quarter ended March 31, 2025 results, which can be viewed at www.apollocref.com.

    Conference Call and Webcast
    The Company will hold a conference call to review first quarter results on April 25, 2025 at 10am ET. To register for the call, please use the following link:      

    https://register-conf.media-server.com/register/BI9d454c5338474977930d8dafd9ec06d9

    After you register, you will receive a dial-in number and unique pin. The Company will also post a link in the Stockholders’ section on ARI’s website for a live webcast. For those unable to listen to the live call or webcast, there will be a webcast replay link posted in the Stockholders’ section on ARI’s website approximately two hours after the call.

    Distributable Earnings
    “Distributable Earnings,” a non-GAAP financial measure, is defined as net income available to common stockholders, computed in accordance with GAAP, adjusted for (i) equity-based compensation expense (a portion of which may become cash-based upon final vesting and settlement of awards should the holder elect net share settlement to satisfy income tax withholding), (ii) any unrealized gains or losses or other non-cash items (including depreciation and amortization related to real estate owned) included in net income available to common stockholders, (iii) unrealized income from unconsolidated joint ventures, (iv) foreign currency gains (losses), other than (a) realized gains/(losses) related to interest income, and (b) forward point gains/(losses) realized on the Company’s foreign currency hedges, and (v) provision for current expected credit losses.

    As a REIT, U.S. federal income tax law generally requires the Company to distribute annually at least 90% of its REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains, and that the Company pay tax at regular corporate rates to the extent that it annually distributes less than 100% of its net taxable income. Given these requirements and the Company’s belief that dividends are generally one of the principal reasons shareholders invest in a REIT, the Company generally intends over time to pay dividends to its stockholders in an amount equal to its net taxable income, if and to the extent authorized by the Company’s board of directors. Distributable Earnings is a key factor considered by the Company’s board of directors in setting the dividend and as such the Company believes Distributable Earnings is useful to investors.

    The Company believes it is useful to its investors to also present Distributable Earnings prior to net realized loss on investments, in applicable periods, to reflect its operating results because (i) the Company’s operating results are primarily comprised of earning interest income on its investments net of borrowing and administrative costs, which comprise the Company’s ongoing operations and (ii) it has been a useful factor related to the Company’s dividend per share because it is one of the considerations when a dividend is determined. The Company believes that its investors use Distributable Earnings and Distributable Earnings prior to net realized loss on investments or a comparable supplemental performance measure, to evaluate and compare the performance of the Company and its peers.

    During the three months ended March 31, 2025, the Company recorded no realized losses in the consolidated statement of operations.

    A significant limitation associated with Distributable Earnings as a measure of the Company’s financial performance over any period is that it excludes unrealized gains (losses) from investments. In addition, the Company’s presentation of Distributable Earnings may not be comparable to similarly titled measures of other companies, that use different calculations. As a result, Distributable Earnings should not be considered as a substitute for the Company’s GAAP net income as a measure of its financial performance or any measure of its liquidity under GAAP. Distributable Earnings are reduced for realized losses on loans which include losses that management believes are near certain to be realized.

    A reconciliation of Distributable Earnings to GAAP net income (loss) available to common stockholders is included in the detailed presentation of the Company’s quarter ended March 31, 2025 results, which can be viewed at www.apollocref.com.

    About Apollo Commercial Real Estate Finance, Inc.
    Apollo Commercial Real Estate Finance, Inc. (NYSE: ARI) is a real estate investment trust that primarily originates, acquires, invests in and manages performing commercial first mortgage loans, subordinate financings and other commercial real estate-related debt investments. The Company is externally managed and advised by ACREFI Management, LLC, a Delaware limited liability company and an indirect subsidiary of Apollo Global Management, Inc., a high-growth, global alternative asset manager with approximately $751 billion of assets under management at December 31, 2024.

    Additional information can be found on the Company’s website at www.apollocref.com.

    Forward-Looking Statements
    Certain statements contained in this press release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control. These forward-looking statements include information about possible or assumed future results of the Company’s business, financial condition, liquidity, results of operations, plans and objectives. When used in this release, the words believe, expect, anticipate, estimate, plan, continue, intend, should, may or similar expressions, are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: higher interest rates and inflation; market trends in the Company’s industry, real estate values, the debt securities markets or the general economy; the timing and amounts of expected future fundings of unfunded commitments; the return on equity; the yield on investments; the ability to borrow to finance assets; the Company’s ability to deploy the proceeds of its capital raises or acquire its target assets; and risks associated with investing in real estate assets, including changes in business conditions and the general economy. For a further list and description of such risks and uncertainties, see the reports filed by the Company with the Securities and Exchange Commission. The forward-looking statements, and other risks, uncertainties and factors are based on the Company’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company. Forward-looking statements are not predictions of future events. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

    CONTACT: Hilary Ginsberg
      Investor Relations
      (212) 822-0767

    The MIL Network –

  • MIL-OSI: American Coastal Insurance Corporation Schedules First Quarter Financial Results and Conference Call

    Source: GlobeNewswire (MIL-OSI)

    ST. PETERSBURG, Fla., April 24, 2025 (GLOBE NEWSWIRE) — American Coastal Insurance Corporation (Nasdaq Ticker: ACIC) (“the Company”, “American Coastal” or “ACIC”) the insurance holding company of American Coastal Insurance Company (“AmCoastal”), announced today that it expects to release its financial results for the first quarter ended March 31, 2025, on Thursday, May 8, 2025, after the close of the market, and will conduct its quarterly conference call at 5:00 p.m. ET.

    The conference call will include live remarks followed by a question and answer (Q&A) session. Interested parties are invited to participate in the conference call and should dial-in 10 minutes before the conference call is scheduled to begin.

    First Quarter 2025 Conference Call Details:
    Thursday, May 8, 2025 – 5:00 p.m. ET

    Participant Dial-In Numbers:

    United States: 877-445-9755
    International: 201-493-6744

    To listen to the conference call via webcast, please visit the Company website and click on the webcast link at the top of the page or click here. The webcast will be archived and accessible for approximately 30 days following the call.

    About American Coastal Insurance Corporation:
    American Coastal Insurance Corporation (amcoastal.com) is the holding company of the insurance carrier, American Coastal Insurance Company, which was founded in 2007 for the purpose of insuring Condominium and Homeowner Association properties, and apartments in the state of Florida. American Coastal Insurance Company has an exclusive partnership for distribution of Condominium Association properties in the state of Florida with AmRisc Group (amriscgroup.com), one of the largest Managing General Agents in the country specializing in hurricane-exposed properties. American Coastal Insurance Company has earned a Financial Stability Rating of “A”, Exceptional’ from Demotech, and maintains an “A-” insurance financial strength rating with a Stable outlook by Kroll. ACIC maintains a ‘BB+’ issuer rating with a Stable outlook by Kroll.

    Contact Information:
    Alexander Baty
    Vice President, Finance & Investor Relations, American Coastal Insurance Corporation
    investorrelations@amcoastal.com
    (727) 425-8076

    Karin Daly
    Investor Relations, Vice President, The Equity Group
    kdaly@equityny.com
    (212) 836-9623

    The MIL Network –

  • MIL-OSI: Credicorp Ltd.: Credicorp’s “1Q25 quiet period”

    Source: GlobeNewswire (MIL-OSI)

    Lima, April 24, 2025 (GLOBE NEWSWIRE) — Lima, PERU, April 24th, 2025 – Credicorp Ltd. (“Credicorp”) (NYSE: BAP | BVL: BAP) announces that in accordance with its corporate disclosure policies and to prevent any leaks of financial results and ensure fairness, the Company will start the quiet period for 1Q25’s earnings release on May 1st. This period will end on the date of the release, May 15th. During the quiet period, the Company will not disclose any financial information, comment on financial results, or respond to related questions.

    About Credicorp

    Credicorp (NYSE: BAP) is the leading financial services holding company in Peru with presence in Chile, Colombia, Bolivia, and Panama. Credicorp has a diversified business portfolio organized into four lines of business: Universal Banking, through Banco de Crédito del Peru (“BCP”) and Banco de Crédito de Bolivia; Microfinance, through Mibanco in Peru and Colombia; Insurance & Pension Funds, through Grupo Pacifico and Prima AFP; and Investment Management & Advisory, through Credicorp Capital, Wealth Management at BCP and ASB Bank Corp.

    For further information, please contact the IR team:

    investorrelations@credicorpperu.com

    Investor Relations
    Credicorp Ltd.

    The MIL Network –

  • MIL-OSI: Archrock Announces Quarterly Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, April 24, 2025 (GLOBE NEWSWIRE) — Archrock, Inc. (NYSE: AROC) (“Archrock” or the “Company”) today announced that its Board of Directors has declared a quarterly dividend of $0.19 per share of common stock, or $0.76 per share on an annualized basis. The first quarter 2025 dividend will be paid on May 13, 2025, to all stockholders of record on May 6, 2025.

    The first quarter 2025 dividend per share amount is consistent with Archrock’s fourth quarter 2024 dividend level and represents an increase of approximately 15 percent over the Archrock first quarter 2024 dividend level.

    About Archrock

    Archrock is an energy infrastructure company with a primary focus on midstream natural gas compression and a commitment to helping its customers produce, compress and transport natural gas in a safe and environmentally responsible way. Headquartered in Houston, Texas, Archrock is a premier provider of natural gas compression services to customers in the energy industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment. For more information on how the Company embodies its purpose, WE POWER A CLEANER AMERICATM, visit www.archrock.com.

    Forward-Looking Statements

    This press release contains forward-looking statements, which include statements about Archrock’s future financial performance and dividends. These statements are not guarantees of future performance or actions. Forward-looking statements rely on a number of assumptions concerning future events and are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Archrock expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in Archrock’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and as set forth from time to time in Archrock’s filings with the Securities and Exchange Commission.  These filings are available online at www.sec.gov and www.archrock.com.

    For information, contact:

    Megan Repine
    Vice President, Investor Relations
    (281) 836-8360
    investor.relations@archrock.com

    The MIL Network –

  • MIL-OSI: NCS Multistage Holdings, Inc. Schedules First Quarter 2025 Earnings Release and Conference Call

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, April 24, 2025 (GLOBE NEWSWIRE) — NCS Multistage Holdings, Inc. (“NCS” or the “Company”) (Nasdaq: NCSM) will host a conference call to discuss its first quarter 2025 results on Thursday, May 1, 2025 at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). NCS will issue its first quarter 2025 earnings release the evening prior to the conference call.

    For those participants who wish to ask questions, please dial (800) 715-9871 (U.S. toll-free) or +1 (646) 307-1963 (international) and enter the Conference ID: 7182351. A listen-only option is also available through this link. It is recommended that participants join at least 10 minutes prior to the event start. The replay will be available in the Investors section of the Company’s website shortly after the conclusion of the call and will remain available for approximately seven days.

    NCS Multistage Holdings, Inc. is a leading provider of highly engineered products and support services that facilitate the optimization of oil and natural gas well construction, well completions and field development strategies. NCS provides products and services primarily to exploration and production companies for use in onshore and offshore wells, predominantly wells that have been drilled with horizontal laterals in both unconventional and conventional oil and natural gas formations. NCS’s products and services are utilized in oil and natural gas basins throughout North America and in selected international markets, including the North Sea, the Middle East, Argentina and China. NCS’s common stock is traded on the Nasdaq Capital Market under the symbol “NCSM.” Additional information is available on the website, www.ncsmultistage.com.

    Contact:
    Michael Morrison
    Chief Financial Officer
    +1 281-453-2222
    IR@ncsmultistage.com

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

    First Quarter 2025 Summary1

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

    CEO Commentary

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

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

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

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

    REVENUE REVIEW

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

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

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

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

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

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

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

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

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

    EXPENSE REVIEW

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

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

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

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

    BALANCE SHEET REVIEW

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    CREDIT QUALITY REVIEW

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

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

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

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


    CONFERENCE CALL DETAILS

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

    ABOUT MIDWESTONE FINANCIAL GROUP, INC.

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

    Cautionary Note Regarding Forward-Looking Statements

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

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

    MIDWESTONE FINANCIAL GROUP, INC.
    FIVE QUARTER CONSOLIDATED BALANCE SHEETS

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

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

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

    MIDWESTONE FINANCIAL GROUP, INC.
    FINANCIAL STATISTICS

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

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

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

    Non-GAAP Measures

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

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

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

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

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

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

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

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

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

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

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

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

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

    Category: Earnings

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

    Source: MidWestOne Financial Group, Inc.

    Industry: Banks

    Contact:

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

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

    First Quarter 2025 Highlights

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

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

    Results of Operations, Quarter Ended March 31, 2025

    Net Interest Income

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

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

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

    Noninterest Income and Noninterest Expense

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

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

    Loan Portfolio and Composition

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

    Deposits and Borrowings

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

    Asset Quality

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

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

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

    Capital

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

    Conference Call

    South Plains will host a conference call to discuss its first quarter 2025 financial results today, April 24, 2025, at 5:00 p.m., Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-407-9716 (international callers please dial 1-201-493-6779) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call and conference materials will be available on the Company’s website at https://www.spfi.bank/news-events/events.

    A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed on the investor section of the Company’s website as well as by dialing 1-844-512-2921 (international callers please dial 1-412-317-6671). The pin to access the telephone replay is 13752910. The replay will be available until May 8, 2025.

    About South Plains Financial, Inc.

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

    Non-GAAP Financial Measures

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

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

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

    Available Information

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

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

    Forward Looking Statements

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

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

    Source: South Plains Financial, Inc.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Asset Quality

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

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

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

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

    About Middlefield Banc Corp.

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

    Additional information is available at www.middlefieldbank.bank.

    NON-GAAP FINANCIAL MEASURES

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

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

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

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

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

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

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

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

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

    MIDDLEFIELD BANC CORP.
    Consolidated Selected Financial Highlights
    (unaudited)

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

    MIDDLEFIELD BANC CORP.
    GAAP to Non-GAAP Reconciliations

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

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

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

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

    Profitability

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

    Balance Sheet

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

    Asset Quality

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

    Non-interest Income and Non-interest Expense

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

    Capital

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

    Conference Call and Webcast

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

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

    About USCB Financial Holdings, Inc.

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

    Forward-Looking Statements

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

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

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

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

    Non-GAAP Financial Measures

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

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

    Contacts:

    Investor Relations
    InvestorRelations@uscentury.com

    Media Relations
    Martha Guerra-Kattou
    MGuerra@uscentury.com

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

    The MIL Network –

  • MIL-OSI: BIO-key Regains Compliance with Nasdaq Listing Rules After Receiving Notice of Non-Compliance

    Source: GlobeNewswire (MIL-OSI)

    HOLMDEL, N.J. , April 24, 2025 (GLOBE NEWSWIRE) — BIO-key® International, Inc. (NASDAQ: BKYI), an innovative provider of workforce and customer Identity and Access Management (IAM) solutions featuring passwordless, phoneless and token-less Identity-Bound Biometric (IBB) authentication, announced today that on April 17, 2025, it received a notification letter from The Nasdaq Stock Market, LLC informing the Company that it was not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission, due to the Company’s failure to timely file its Annual Report on Form 10-K for the year ended December 31, 2024. The notification letter has no immediate effect on the listing or trading of the Company’s common stock on the Nasdaq Capital Market.

    On April 23, 2025, the Company filed its Form 10-K for the year ended December 31, 2024 with the SEC. On April 24, 2025, the Company received notice from Nasdaq stating that the Company has regained compliance with Nasdaq Listing Rule 5250(c)(1) and that the matter has been closed.

    About BIO-key International, Inc. (www.BIO-key.com)
    BIO-key is revolutionizing authentication and cybersecurity with biometric-centric, multi-factor identity and access management (IAM) software securing access for over forty million users. BIO-key allows customers to choose the right authentication factors for diverse use cases, including phoneless, tokenless, and passwordless biometric options. Its cloud-hosted or on-premise PortalGuard IAM solution provides cost-effective, easy-to-deploy, convenient, and secure access to computers, information, applications, and high-value transactions.

    Engage with BIO-key

    Investor Contacts
    William Jones, David Collins
    Catalyst IR
    BKYI@catalyst-ir.com or 212-924-9800

    The MIL Network –

  • MIL-OSI: Glacier Bancorp, Inc. Announces Results For the Quarter and Period Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    1st Quarter 2025 Highlights:

    • Diluted earnings per share for the current quarter was $0.48 per share, a decrease of 11 percent from the prior quarter diluted earnings per share of $0.54 per share and an increase of 66 percent from the prior year first quarter diluted earnings per share of $0.29 per share.
    • Net income was $54.6 million for the current quarter, a decrease of $7.2 million, or 12 percent, from the prior quarter net income of $61.8 million and an increase of $21.9 million, or 67 percent, from the prior year first quarter net income of $32.6 million.
    • The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.04 percent, an increase of 7 basis points from the prior quarter net interest margin of 2.97 percent and an increase of 45 basis points from the prior year first quarter net interest margin of 2.59 percent.
    • Total deposits of $20.634 billion increased $87.1 million, or 2 percent annualized, during the current quarter.
    • The loan yield of 5.77 percent in the current quarter increased 5 basis points from the prior quarter loan yield of 5.72 percent and increased 31 basis points from the prior year first quarter loan yield of 5.46 percent.
    • The total earning asset yield of 4.61 percent in the current quarter increased 4 basis points from the prior quarter earning asset yield of 4.57 percent and increased 30 basis points from the prior year first quarter earning asset yield of 4.31 percent.
    • The total core deposit cost (including non-interest bearing deposits) of 1.25 percent in the current quarter decreased 4 basis point from the prior quarter total core deposit cost of 1.29 percent.
    • The total cost of funding (including non-interest bearing deposits) of 1.68 percent in the current quarter decreased 3 basis point from the prior quarter total cost of funding of 1.71 percent.
    • The Company declared a quarterly dividend of $0.33 per share. The Company has declared 160 consecutive quarterly dividends and has increased the dividend 49 times.
    • The Company announced the signing of a definitive agreement to acquire Bank of Idaho Holding Co., the bank holding company for Bank of Idaho (collectively, “BOID”) which had total assets of $1.3 billion as of March 31, 2025. This will be the Company’s 26th bank acquisition since 2000 and its 12th announced transaction in the past 10 years.

    Financial Summary  

      At or for the Three Months ended
    (Dollars in thousands, except per share and market data) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024
    Operating results          
    Net income $ 54,568     61,754     32,627  
    Basic earnings per share $ 0.48     0.54     0.29  
    Diluted earnings per share $ 0.48     0.54     0.29  
    Dividends declared per share $ 0.33     0.33     0.33  
    Market value per share          
    Closing $ 44.22     50.22     40.28  
    High $ 52.81     60.67     42.75  
    Low $ 43.18     43.70     34.74  
    Selected ratios and other data          
    Number of common stock shares outstanding   113,517,944     113,401,955     113,388,590  
    Average outstanding shares – basic   113,451,199     113,398,213     112,492,142  
    Average outstanding shares – diluted   113,546,365     113,541,026     112,554,402  
    Return on average assets (annualized)   0.80 %   0.87 %   0.47 %
    Return on average equity (annualized)   6.77 %   7.62 %   4.25 %
    Efficiency ratio   65.49 %   60.50 %   74.41 %
    Loan to deposit ratio   83.64 %   84.17 %   82.04 %
    Number of full time equivalent employees   3,457     3,441     3,438  
    Number of locations   227     227     232  
    Number of ATMs   286     284     285  
                       

    KALISPELL, Mont., April 24, 2025 (GLOBE NEWSWIRE) — Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $54.6 million for the current quarter, a decrease of $7.2 million, or 12 percent from the prior quarter net income of $61.8 million and an increase of $21.9 million, or 67 percent, from the $32.6 million of net income for the prior year first quarter. Diluted earnings per share for the current quarter was $0.48 per share, a decrease of 11 percent from the prior quarter diluted earnings per share of $0.54 per share and an increase of 65 percent from the prior year first quarter diluted earnings per share of $0.29. “We are very pleased with the long-term positive trends we see in our Company. Deposit costs are decreasing, loan yields are increasing, and margin continues to grow,” said Randy Chesler, President and Chief Executive Officer. “While uncertainty about the economy persists, we remain optimistic about our customers’ ability to quickly adapt to a changing environment.”

    On January 13, 2025, the Company announced the signing of a definitive agreement to acquire BOID with 15 branches across eastern Idaho, Boise and eastern Washington. As of March 31, 2025, BOID had total assets of $1.3 billion, total loans of $1.1 billion and total deposits of $1.1 billion. Upon closing of the transaction, the BOID operations will join three existing Glacier Bank divisions. The Eastern Idaho operations of Bank of Idaho will join Citizens Community Bank, the Boise operations will join Mountain West Bank and the Eastern Washington operations will join Wheatland Bank. The acquisition has received all required regulatory approvals and is scheduled to close on April 30, 2025, subject to satisfaction of the remaining conditions set forth in the merger agreement and the approval by the BOID shareholders.

    Asset Summary

                  $ Change from
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024    		   Dec 31,
    2024    		   Mar 31,
    2024
    Cash and cash equivalents $ 981,485     848,408     788,660     133,077     192,825  
    Debt securities, available-for-sale   4,172,312     4,245,205     4,629,073     (72,893 )   (456,761 )
    Debt securities, held-to-maturity   3,261,575     3,294,847     3,451,583     (33,272 )   (190,008 )
    Total debt securities   7,433,887     7,540,052     8,080,656     (106,165 )   (646,769 )
    Loans receivable                  
    Residential real estate   1,850,079     1,858,929     1,752,514     (8,850 )   97,565  
    Commercial real estate   10,952,809     10,963,713     10,672,269     (10,904 )   280,540  
    Other commercial   3,121,477     3,119,535     3,030,608     1,942     90,869  
    Home equity   920,132     930,994     883,062     (10,862 )   37,070  
    Other consumer   374,021     388,678     394,049     (14,657 )   (20,028 )
    Loans receivable   17,218,518     17,261,849     16,732,502     (43,331 )   486,016  
    Allowance for credit losses   (210,400 )   (206,041 )   (198,779 )   (4,359 )   (11,621 )
    Loans receivable, net   17,008,118     17,055,808     16,533,723     (47,690 )   474,395  
    Other assets   2,435,389     2,458,719     2,419,131     (23,330 )   16,258  
    Total assets $ 27,858,879     27,902,987     27,822,170     (44,108 )   36,709  
                                   

    The Company continues to maintain a strong cash position of $981 million at March 31, 2025 which was an increase of $133 million over the prior quarter and an increase of $193 million over the prior year first quarter. Total debt securities of $7.434 billion at March 31, 2025 decreased $106 million, or 1 percent, during the current quarter and decreased $647 million, or 8 percent, from the prior year first quarter. Debt securities represented 27 percent of total assets at March 31, 2025 and December 31, 2024 compared to 29 percent at March 31, 2024.

    The loan portfolio of $17.219 billion at March 31, 2025 decreased $43 million, or 25 basis points, during the current quarter and increased $486 million, or 3 percent, from the prior year first quarter. Excluding the Rocky Mountain Bank (“RMB”) acquisition on July 19, 2024, the loan portfolio organically increased $214 million, or 1 percent, since the prior year first quarter. Excluding the RMB acquisition, the loan category with the largest dollar increase in the last twelve months was commercial real estate which increased $159 million, or 1 percent.

    Credit Quality Summary

      At or for the
    Three Months ended    		   At or for the
    Year ended    		   At or for the
    Three Months ended
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024
    Allowance for credit losses          
    Balance at beginning of period $ 206,041     192,757     192,757  
    Acquisitions   —     3     3  
    Provision for credit losses   6,154     27,179     9,091  
    Charge-offs   (3,897 )   (18,626 )   (4,295 )
    Recoveries   2,102     4,728     1,223  
    Balance at end of period $ 210,400     206,041     198,779  
    Provision for credit losses          
    Loan portfolio $ 6,154     27,179     9,091  
    Unfunded loan commitments   1,660     1,127     (842 )
    Total provision for credit losses $ 7,814     28,306     8,249  
    Other real estate owned $ 1,085     1,085     432  
    Other foreclosed assets   68     79     459  
    Accruing loans 90 days or more past due   5,289     6,177     3,796  
    Non-accrual loans   32,896     20,445     20,738  
    Total non-performing assets $ 39,338     27,786     25,425  
    Non-performing assets as a percentage of subsidiary assets   0.14 %   0.10 %   0.09 %
    Allowance for credit losses as a percentage of non-performing loans   551 %   774 %   810 %
    Allowance for credit losses as a percentage of total loans   1.22 %   1.19 %   1.19 %
    Net charge-offs as a percentage of total loans   0.01 %   0.08 %   0.02 %
    Accruing loans 30-89 days past due $ 46,458     32,228     62,423  
    U.S. government guarantees included in non-performing assets $ 685     748     1,490  
                       

    Non-performing assets as a percentage of subsidiary assets at March 31, 2025 was 0.14 percent compared to 0.10 percent in the prior quarter and 0.09 percent in the prior year first quarter. Non-performing assets of $39.3 million at March 31, 2025 increased $11.6 million, or 42 percent, over the prior quarter and increased $13.9 million, or 55 percent, over the prior year first quarter. The increase in the non-performing loans in the current quarter was primarily attributable to a single credit relationship.

    Early stage delinquencies (accruing loans 30-89 days past due) as a percentage of loans at March 31, 2025 were 0.27 percent compared to 0.19 percent for the prior quarter end and 0.37 percent for the prior year first quarter. Early stage delinquencies of $46.5 million at March 31, 2025 increased $14.2 million from the prior quarter and decreased $16.0 million from prior year first quarter.

    The current quarter credit loss expense of $7.8 million included $6.2 million of provision for credit losses on loans and $1.7 million of provision for credit losses on unfunded commitments.

    The allowance for credit losses (“ACL”) on loans as a percentage of total loans outstanding at March 31, 2025 was 1.22 percent compared to 1.19 percent at year end and the prior year first quarter. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts, actual results, and other environmental factors will continue to determine the level of the provision for credit losses for loans. 

    Credit Quality Trends and Provision for Credit Losses on the Loan Portfolio

    (Dollars in thousands) Provision for
    Credit Losses Loans    		   Net Charge-Offs   ACL
    as a Percent
    of Loans    		   Accruing
    Loans 30-89
    Days Past Due
    as a Percent of
    Loans    		   Non-Performing
    Assets to
    Total Subsidiary
    Assets
    First quarter 2025 $ 6,154   $ 1,795   1.22 %   0.27 %   0.14 %
    Fourth quarter 2024   6,041     5,170   1.19 %   0.19 %   0.10 %
    Third quarter 2024   6,981     2,766   1.19 %   0.33 %   0.10 %
    Second quarter 2024   5,066     2,890   1.19 %   0.29 %   0.06 %
    First quarter 2024   9,091     3,072   1.19 %   0.37 %   0.09 %
    Fourth quarter 2023   4,181     3,695   1.19 %   0.31 %   0.09 %
    Third quarter 2023   5,095     2,209   1.19 %   0.09 %   0.15 %
    Second quarter 2023   5,254     2,473   1.19 %   0.16 %   0.12 %
                                 

    Net charge-offs for the current quarter were $1.8 million compared to $5.2 million in the prior quarter and $3.1 million for the prior year first quarter. The current quarter net charge-offs included $1.9 million in deposit overdraft net charge-offs and $78 thousand of net loan recoveries.

    Supplemental information regarding credit quality and identification of the Company’s loan portfolio based on the regulatory classification of loans is provided in the exhibits at the end of this press release. The regulatory classification of loans is based primarily on collateral type while the Company’s loan segments presented herein are based on the purpose of the loan.

    Liability Summary

                  $ Change from
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024    		   Dec 31,
    2024    		   Mar 31,
    2024
    Deposits                  
    Non-interest bearing deposits $ 6,100,548   6,136,709   6,055,069   (36,161 )   45,479  
    NOW and DDA accounts   5,676,177   5,543,512   5,376,605   132,665     299,572  
    Savings accounts   2,896,378   2,845,124   2,949,908   51,254     (53,530 )
    Money market deposit accounts   2,816,874   2,878,213   3,002,942   (61,339 )   (186,068 )
    Certificate accounts   3,140,333   3,139,821   3,039,190   512     101,143  
    Core deposits, total   20,630,310   20,543,379   20,423,714   86,931     206,596  
    Wholesale deposits   3,740   3,615   3,809   125     (69 )
    Deposits, total   20,634,050   20,546,994   20,427,523   87,056     206,527  
    Repurchase agreements   1,849,070   1,777,475   1,540,008   71,595     309,062  
    Deposits and repurchase agreements, total   22,483,120   22,324,469   21,967,531   158,651     515,589  
    Federal Home Loan Bank advances   1,520,000   1,800,000   2,140,157   (280,000 )   (620,157 )
    Other borrowed funds   82,443   83,341   88,814   (898 )   (6,371 )
    Subordinated debentures   133,145   133,105   132,984   40     161  
    Other liabilities   352,563   338,218   381,977   14,345     (29,414 )
    Total liabilities $ 24,571,271   24,679,133   24,711,463   (107,862 )   (140,192 )
                             

    Total deposits of $20.634 billion at March 31, 2025 increased $87.1 million, or 2 percent annualized, from the prior quarter and increased $207 million, or 1 percent, from the prior year first quarter. Total repurchase agreements of $1.849 billion at March 31, 2025 increased $71.6 million, or 4 percent, from the prior quarter and increased $309 million, or 20 percent, from the prior year first quarter. Total deposits organically decreased $190 million, or 1 percent, from the prior year first quarter and total deposits and repurchase agreements organically increased $115 million, or 52 basis points, from the prior year first quarter. Non-interest bearing deposits represented 30 percent of total deposits at March 31, 2025, December 31, 2024 and March 31, 2024. Federal Home Loan Bank (“FHLB”) advances of $1.520 billion decreased $280 million, or 16 percent, from the prior quarter and decreased $620 million, or 29 percent, from the prior year first quarter.

    Stockholders’ Equity Summary

                  $ Change from
    (Dollars in thousands, except per share data) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024    		   Dec 31,
    2024    		   Mar 31,
    2024
    Common equity $ 3,550,719     3,533,150     3,483,012     17,569   67,707  
    Accumulated other comprehensive loss   (263,111 )   (309,296 )   (372,305 )   46,185   109,194  
    Total stockholders’ equity   3,287,608     3,223,854     3,110,707     63,754   176,901  
    Goodwill and intangibles, net   (1,099,229 )   (1,102,500 )   (1,069,808 )   3,271   (29,421 )
    Tangible stockholders’ equity $ 2,188,379     2,121,354     2,040,899     67,025   147,480  
    Stockholders’ equity to total assets   11.80 %   11.55 %   11.18 %          
    Tangible stockholders’ equity to total tangible assets   8.18 %   7.92 %   7.63 %          
    Book value per common share $ 28.96     28.43     27.43     0.53   1.53  
    Tangible book value per common share $ 19.28     18.71     18.00      0.57   1.28  
                                 

    Tangible stockholders’ equity of $2.188 billion at March 31, 2025 increased $67.0 million, or 3 percent, compared to the prior quarter and was primarily the result of a decrease in unrealized loss on the available-for-sale debt securities and earnings retention. Tangible stockholders’ equity at March 31, 2025 increased $147 million, or 7 percent, compared to the prior year first quarter and was primarily due to the decrease in unrealized loss on the available-for-sale debt securities and earnings retention. The increase was partially offset by the increase in goodwill and core deposits associated with the RMB acquisition. Tangible book value per common share of $19.28 at the current quarter end increased $0.57 per share, or 3 percent, from the prior quarter and increased $1.28 per share, or 7 percent, from the prior year first quarter.

    Cash Dividends
    On March 26, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The dividend was payable April 17, 2025 to shareholders of record on April 8, 2025. The dividend was the Company’s 160th consecutive regular dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

    Operating Results for Three Months Ended March 31, 2025 
    Compared to December 31, 2024, and March 31, 2024

    Income Summary

      Three Months ended   $ Change from
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024    		   Dec 31,
    2024    		   Mar 31,
    2024
    Net interest income                  
    Interest income $ 289,925     297,036     279,402     (7,111 )   10,523  
    Interest expense   99,946     105,593     112,922     (5,647 )   (12,976 )
    Total net interest income   189,979     191,443     166,480     (1,464 )   23,499  
                       
    Non-interest income                  
    Service charges and other fees   18,818     20,322     18,563     (1,504 )   255  
    Miscellaneous loan fees and charges   4,664     4,541     4,362     123     302  
    Gain on sale of loans   4,311     3,926     3,362     385     949  
    Gain on sale of securities   —     —     16     —     (16 )
    Other income   4,849     2,760     3,686     2,089     1,163  
    Total non-interest income   32,642     31,549     29,989     1,093     2,653  
    Total income $ 222,621     222,992     196,469     (371 )   26,152  
    Net interest margin (tax-equivalent)   3.04 %   2.97 %   2.59 %        
                               

    Net Interest Income
    Net interest income of $190 million for the current quarter decreased $1.5 million, or 1 percent, from the prior quarter net interest income of $191 million and increased $23.5 million, or 14 percent, from the prior year first quarter net interest income of $166 million. The current quarter interest income of $290 million decreased $7.1 million, or 2 percent, over the prior quarter and was primarily driven by fewer days in the current quarter coupled with decreased average interest-bearing cash balances. The current quarter interest income increased $10.5 million, or 4 percent, over the prior year first quarter primarily due to the increase in the loan yields and the increase in average balances of the loan portfolio. The loan yield of 5.77 percent in the current quarter increased 5 basis points from the prior quarter loan yield of 5.72 percent and increased 31 basis points from the prior year first quarter loan yield of 5.46 percent.

    The current quarter interest expense of $99.9 million decreased $5.6 million, or 5 percent, over the prior quarter and was primarily attributable to a decrease in deposit costs. The current quarter interest expense decreased $13.0 million, or 11 percent, over the prior year first quarter and was primarily the result of lower average wholesale borrowings and a decrease in deposit costs. Core deposit cost (including non-interest bearing deposits) was 1.25 percent for the current quarter compared to 1.29 percent in the prior quarter and 1.34 percent for the prior year first quarter. The total cost of funding (including non-interest bearing deposits) of 1.68 percent in the current quarter decreased 3 basis points from the prior quarter and decreased 16 basis point from the prior year first quarter.

    The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.04 percent, an increase of 7 basis points from the prior quarter net interest margin of 2.97 percent and was primarily driven by an increase in loan yields and a decrease in total cost of funding. The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was an increase of 45 basis points from the prior year first quarter net interest margin of 2.59 percent and was primarily driven by the increase in loan yields and the decrease in core deposit cost. Core net interest margin excludes the impact from discount accretion and non-accrual interest. Excluding the 5 basis points from discount accretion, the core net interest margin was 2.99 percent in the current quarter compared to 2.97 percent in the prior quarter and 2.59 in the prior year first quarter. “The Company’s net interest margin increased for the fifth consecutive quarter,” said Ron Copher, Chief Financial Officer. “The continued increase in loan yields and decrease in the deposit costs contributed to the 7 basis points increase in the net interest margin as it expanded to 3.04 percent in the current quarter.”

    Non-interest Income
    Non-interest income for the current quarter totaled $32.6 million, which was an increase of $1.1 million, or 3 percent, over the prior quarter and an increase of $2.7 million, or 9 percent, over the prior year first quarter. Service charges and other fees of $18.8 million for the current quarter decreased $1.5 million, or 7 percent, compared to the prior quarter and increased $255 thousand, or 1 percent, compared to the prior year first quarter. Gain on the sale of residential loans of $4.3 million for the current quarter increased $385 thousand, or 10 percent, compared to the prior quarter and increased $949 thousand, or 28 percent, from the prior year first quarter. Other income of $4.8 million increased $2.1 million, or 75 percent, over the prior quarter primarily due to other income of $1.1 million related to bank owned life insurance proceeds coupled with an increase in income from equity investments and other one-time adjustments. Other income increased $1.2 million, or 32 percent, over the prior year first quarter primarily due to the current quarter proceeds from bank owned life insurance.

    Non-interest Expense Summary

      Three Months ended   $ Change from
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024    		   Dec 31,
    2024    		   Mar 31,
    2024
    Compensation and employee benefits $ 91,443   81,600   85,789   9,843     5,654  
    Occupancy and equipment   12,294   11,589   11,883   705     411  
    Advertising and promotions   4,144   3,725   3,983   419     161  
    Data processing   9,138   9,145   9,159   (7 )   (21 )
    Other real estate owned and foreclosed assets   63   30   25   33     38  
    Regulatory assessments and insurance   5,534   5,890   7,761   (356 )   (2,227 )
    Intangibles amortization   3,270   3,613   2,760   (343 )   510  
    Other expenses   25,432   25,373   30,483   59     (5,051 )
    Total non-interest expense $ 151,318   140,965   151,843   10,353     (525 )
                             

    Total non-interest expense of $151 million for the current quarter increased $10.4 million, or 7 percent, over the prior quarter and decreased $525 thousand, or 35 basis points, over the prior year first quarter. Compensation and employee benefits of $91.4 million increased by $9.8 million, or 12 percent, over the prior quarter and was primarily attributable to increased performance-related compensation. Compensation and employee benefits increased $5.6 million, or 7 percent, from the prior year first quarter and was primarily driven by annual salary increases and increases in staffing levels from prior year acquisitions. Regulatory assessment and insurance expense of $5.5 million decreased $2.2 million from the prior year first quarter as a result of adjustments to the FDIC special assessment.

    Other expenses of $25.4 million increased $59 thousand, or 23 basis points, from the prior quarter. Other expenses decreased $5.1 million, or 17 percent, from the prior year first quarter and was primarily driven by a decrease in acquisition-related expense. Acquisition-related expense was $587 thousand in the current quarter compared to $491 thousand in the prior quarter and $5.7 million in the prior year first quarter. The current quarter other expenses included $1.2 million of gain from the sale of a former branch facility compared to a $2.1 million gain in the prior quarter and a $989 thousand gain in the prior year first quarter.

    Federal and State Income Tax Expense

    Tax expense during the first quarter of 2025 was $8.9 million, a decrease of $2.8 million, or 24 percent, compared to the prior quarter and an increase of $5.2 million, or 138 percent, from the prior year first quarter. The effective tax rate in the current quarter was 14.1 percent compared to 16.0 percent in the prior quarter. The lower tax expense and lower effective tax rate in the current quarter compared to the prior quarter was the result of a combination of higher federal income tax credits and a decrease in income before income tax expense.

    Efficiency Ratio
    The efficiency ratio was 65.49 percent in the current quarter compared to 60.50 percent in the prior quarter and 74.41 percent in the prior year first quarter. The increase from the prior quarter was principally driven by the decrease in net interest income combined with an increase in non-interest expense. The decrease from the prior year first quarter was principally due to the increase in net interest income.

    Forward-Looking Statements  
    This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as “expects,” “anticipates,” “will,” “intends,” “plans,” “believes,” “should,” “projects,” “seeks,” “estimates” or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are based on assumptions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results (express or implied) or other expectations in the forward-looking statements, including those made in this news release:

    • risks associated with lending and potential adverse changes in the credit quality of the Company’s loan portfolio;
    • changes in monetary and fiscal policies, including interest rate policies of the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, the fair value of its financial instruments, profitability, and stockholders’ equity;
    • legislative or regulatory changes, including increased FDIC insurance rates and assessments, changes in the review and regulation of bank mergers, or increased banking and consumer protection regulations, that may adversely affect the Company’s business and strategies;
    • risks related to overall economic conditions, including the impact on the economy of an uncertain interest rate environment, inflationary pressures and the potential for significant changes in economic and trade policies in the new administration;
    • risks to the Company’s business and the business of the Company’s customers arising from current or future tariffs or other trade restrictions, labor or supply chain issues, change in labor force, or geopolitical instability, including the wars in Ukraine and the Middle East;
    • risks associated with the Company’s ability to negotiate, complete, and successfully integrate any pending or future acquisitions;
    • costs or difficulties related to the completion and integration of pending or future acquisitions;
    • impairment of the goodwill recorded by the Company in connection with acquisitions, which may have an adverse impact on earnings and capital;
    • reduction in demand for banking products and services, whether as a result of changes in customer behavior, economic conditions, banking environment, or competition;
    • deterioration of the reputation of banks and the financial services industry, which could adversely affect the Company’s ability to obtain and maintain customers;
    • changes in the competitive landscape, including as may result from new market entrants or further consolidation in the financial services industry, resulting in the creation of larger competitors with greater financial resources;
    • risks presented by public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow through acquisitions;
    • risks associated with dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank’s divisions;
    • material failure, potential interruption or breach in security of the Company’s systems or changes in technology which could expose the Company to cybersecurity risks, fraud, system failures, or direct liabilities;
    • risks related to natural disasters, including droughts, fires, floods, earthquakes, pandemics, and other unexpected events;
    • success in managing risks involved in any of the foregoing; and
    • effects of any reputational damage to the Company resulting from any of the foregoing.

    The Company does not undertake any obligation to publicly correct or update any forward-looking statement if it later becomes aware that actual results are likely to differ materially from those expressed in such forward-looking statement.

    Conference Call Information
    A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, April 25, 2025. Please note that our conference call host no longer offers a general dial-in number. Investors who would like to join the call may now register by following this link to obtain dial-in instructions: https://register-conf.media-server.com/register/BI3016c4b5b4bd4b0aac8f022e74f4c1d4. To participate via the webcast, log on to: https://edge.media-server.com/mmc/p/ejk9q5pb. 

    About Glacier Bancorp, Inc.
    Glacier Bancorp, Inc. (NYSE: GBCI), a member of the Russell 2000® and the S&P MidCap 400® indices, is the parent company for Glacier Bank and its Bank divisions located across its eight state Western U.S. footprint: Altabank (American Fork, UT), Bank of the San Juans (Durango, CO), Citizens Community Bank (Pocatello, ID), Collegiate Peaks Bank (Buena Vista, CO), First Bank of Montana (Lewistown, MT), First Bank of Wyoming (Powell, WY), First Community Bank Utah (Layton, UT), First Security Bank (Bozeman, MT), First Security Bank of Missoula (Missoula, MT), First State Bank (Wheatland, WY), Glacier Bank (Kalispell, MT), Heritage Bank of Nevada (Reno, NV), Mountain West Bank (Coeur d’Alene, ID), The Foothills Bank (Yuma, AZ), Valley Bank (Helena, MT), Western Security Bank (Billings, MT), and Wheatland Bank (Spokane, WA).

    CONTACT: Randall M. Chesler, CEO
    (406) 751-4722
    Ron J. Copher, CFO
    (406) 751-7706
    Glacier Bancorp, Inc.
    Unaudited Condensed Consolidated Statements of Financial Condition
               
    (Dollars in thousands, except per share data) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024
    Assets          
    Cash on hand and in banks $ 322,253     268,746     232,064  
    Interest bearing cash deposits   659,232     579,662     556,596  
    Cash and cash equivalents   981,485     848,408     788,660  
    Debt securities, available-for-sale   4,172,312     4,245,205     4,629,073  
    Debt securities, held-to-maturity   3,261,575     3,294,847     3,451,583  
    Total debt securities   7,433,887     7,540,052     8,080,656  
    Loans held for sale, at fair value   40,523     33,060     27,035  
    Loans receivable   17,218,518     17,261,849     16,732,502  
    Allowance for credit losses   (210,400 )   (206,041 )   (198,779 )
    Loans receivable, net   17,008,118     17,055,808     16,533,723  
    Premises and equipment, net   411,095     411,968     379,826  
    Right-of-use assets, net   54,441     56,252     63,447  
    Other real estate owned and foreclosed assets   1,153     1,164     891  
    Accrued interest receivable   103,992     99,262     106,063  
    Deferred tax asset   122,942     138,955     161,327  
    Intangibles, net   47,911     51,182     46,046  
    Goodwill   1,051,318     1,051,318     1,023,762  
    Non-marketable equity securities   88,134     99,669     111,129  
    Bank-owned life insurance   191,044     189,849     186,625  
    Other assets   322,836     326,040     312,980  
    Total assets $ 27,858,879     27,902,987     27,822,170  
    Liabilities          
    Non-interest bearing deposits $ 6,100,548     6,136,709     6,055,069  
    Interest bearing deposits   14,533,502     14,410,285     14,372,454  
    Securities sold under agreements to repurchase   1,849,070     1,777,475     1,540,008  
    FHLB advances   1,520,000     1,800,000     2,140,157  
    Other borrowed funds   82,443     83,341     88,814  
    Subordinated debentures   133,145     133,105     132,984  
    Accrued interest payable   30,231     33,626     32,584  
    Other liabilities   322,332     304,592     349,393  
    Total liabilities   24,571,271     24,679,133     24,711,463  
    Commitments and Contingent Liabilities   —     —     —  
    Stockholders’ Equity          
    Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding   —     —     —  
    Common stock, $0.01 par value per share, 234,000,000 shares authorized   1,135     1,134     1,134  
    Paid-in capital   2,449,311     2,448,758     2,443,584  
    Retained earnings – substantially restricted   1,100,273     1,083,258     1,038,294  
    Accumulated other comprehensive loss   (263,111 )   (309,296 )   (372,305 )
    Total stockholders’ equity   3,287,608     3,223,854     3,110,707  
    Total liabilities and stockholders’ equity $ 27,858,879     27,902,987     27,822,170  
                       
    Glacier Bancorp, Inc.
    Unaudited Condensed Consolidated Statements of Operations
     
      Three Months ended
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024
    Interest Income          
    Investment securities $ 45,646   50,381   56,218
    Residential real estate loans   24,275   23,960   20,764
    Commercial loans   197,388   199,260   181,472
    Consumer and other loans   22,616   23,435   20,948
    Total interest income   289,925   297,036   279,402
    Interest Expense          
    Deposits   62,865   67,079   67,196
    Securities sold under agreements to repurchase   13,733   14,822   12,598
    Federal Home Loan Bank advances   20,719   21,848   4,249
    FRB Bank Term Funding   —   —   27,097
    Other borrowed funds   402   348   344
    Subordinated debentures   2,227   1,496   1,438
    Total interest expense   99,946   105,593   112,922
    Net Interest Income   189,979   191,443   166,480
    Provision for credit losses   7,814   8,534   8,249
    Net interest income after provision for credit losses   182,165   182,909   158,231
    Non-Interest Income          
    Service charges and other fees   18,818   20,322   18,563
    Miscellaneous loan fees and charges   4,664   4,541   4,362
    Gain on sale of loans   4,311   3,926   3,362
    Gain on sale of securities   —   —   16
    Other income   4,849   2,760   3,686
    Total non-interest income   32,642   31,549   29,989
    Non-Interest Expense          
    Compensation and employee benefits   91,443   81,600   85,789
    Occupancy and equipment   12,294   11,589   11,883
    Advertising and promotions   4,144   3,725   3,983
    Data processing   9,138   9,145   9,159
    Other real estate owned and foreclosed assets   63   30   25
    Regulatory assessments and insurance   5,534   5,890   7,761
    Intangibles amortization   3,270   3,613   2,760
    Other expenses   25,432   25,373   30,483
    Total non-interest expense   151,318   140,965   151,843
    Income Before Income Taxes   63,489   73,493   36,377
    Federal and state income tax expense   8,921   11,739   3,750
    Net Income $ 54,568   61,754   32,627
                 
    Glacier Bancorp, Inc.
    Average Balance Sheets
       
      Three Months ended
      March 31, 2025   December 31, 2024
    (Dollars in thousands) Average
    Balance    		   Interest &
    Dividends    		   Average
    Yield/
    Rate    		   Average
    Balance    		   Interest &
    Dividends    		   Average
    Yield/
    Rate
    Assets                      
    Residential real estate loans $ 1,885,497   $ 24,275   5.15 %   $ 1,885,146   $ 23,960   5.08 %
    Commercial loans 1   14,091,210     198,921   5.73 %     14,059,864     200,956   5.69 %
    Consumer and other loans   1,302,687     22,616   7.04 %     1,324,341     23,435   7.04 %
    Total loans 2   17,279,394     245,812   5.77 %     17,269,351     248,351   5.72 %
    Tax-exempt debt securities 3   1,604,851     13,936   3.47 %     1,615,474     14,501   3.59 %
    Taxable debt securities 4, 5   6,946,562     33,598   1.93 %     7,314,265     38,189   2.09 %
    Total earning assets   25,830,807     293,346   4.61 %     26,199,090     301,041   4.57 %
    Goodwill and intangibles   1,100,801             1,104,362        
    Non-earning assets   847,855             888,404        
    Total assets $ 27,779,463           $ 28,191,856        
    Liabilities                      
    Non-interest bearing deposits $ 5,989,490   $ —   — %   $ 6,343,443   $ —   — %
    NOW and DDA accounts   5,525,976     15,065   1.11 %     5,491,451     15,768   1.14 %
    Savings accounts   2,861,675     5,159   0.73 %     2,824,126     5,316   0.75 %
    Money market deposit accounts   2,849,470     13,526   1.93 %     2,878,415     14,232   1.97 %
    Certificate accounts   3,152,198     29,075   3.74 %     3,174,923     31,716   3.97 %
    Total core deposits   20,378,809     62,825   1.25 %     20,712,358     67,032   1.29 %
    Wholesale deposits 6   3,600     40   4.53 %     3,654     47   4.95 %
    Repurchase agreements   1,842,773     13,733   3.02 %     1,866,705     14,821   3.16 %
    FHLB advances   1,744,000     20,719   4.75 %     1,800,000     21,848   4.75 %
    Subordinated debentures and other borrowed funds   216,073     2,629   4.94 %     216,874     1,845   3.38 %
    Total funding liabilities   24,185,255     99,946   1.68 %     24,599,591     105,593   1.71 %
    Other liabilities   326,764             369,700        
    Total liabilities   24,512,019             24,969,291        
    Stockholders’ Equity                      
    Stockholders’ equity   3,267,444             3,222,565        
    Total liabilities and stockholders’ equity $ 27,779,463           $ 28,191,856        
    Net interest income (tax-equivalent)     $ 193,400           $ 195,448    
    Net interest spread (tax-equivalent)         2.93 %           2.86 %
    Net interest margin (tax-equivalent)         3.04 %           2.97 %

    ______________________________

    1 Includes tax effect of $1.5 million and $1.7 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2025 and December 31, 2024, respectively.
    2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
    3 Includes tax effect of $1.7 million and $2.1 million on tax-exempt debt securities income for the three months ended March 31, 2025 and December 31, 2024, respectively.
    4 Includes interest income of $6.1 million and $9.2 million on average interest-bearing cash balances of $559.5 million and $759.7 million for the three months ended March 31, 2025 and December 31, 2024, respectively.
    5 Includes tax effect of $150 thousand and $203 thousand on federal income tax credits for the three months ended March 31, 2025 and December 31, 2024, respectively.
    6 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
       
    Glacier Bancorp, Inc.
    Average Balance Sheets (continued)
       
      Three Months ended
      March 31, 2025   March 31, 2024
    (Dollars in thousands) Average
    Balance    		   Interest &
    Dividends    		   Average
    Yield/
    Rate    		   Average
    Balance    		   Interest &
    Dividends    		   Average
    Yield/
    Rate
    Assets                      
    Residential real estate loans $ 1,885,497   $ 24,275   5.15 %   $ 1,747,184   $ 20,764   4.75 %
    Commercial loans 1   14,091,210     198,921   5.73 %     13,513,426     183,045   5.45 %
    Consumer and other loans   1,302,687     22,616   7.04 %     1,283,388     20,948   6.56 %
    Total loans 2   17,279,394     245,812   5.77 %     16,543,998     224,757   5.46 %
    Tax-exempt debt securities 3   1,604,851     13,936   3.47 %     1,720,370     15,157   3.52 %
    Taxable debt securities 4, 5   6,946,562     33,598   1.93 %     8,176,974     43,477   2.13 %
    Total earning assets   25,830,807     293,346   4.61 %     26,441,342     283,391   4.31 %
    Goodwill and intangibles   1,100,801             1,051,954        
    Non-earning assets   847,855             611,550        
    Total assets $ 27,779,463           $ 28,104,846        
    Liabilities                      
    Non-interest bearing deposits $ 5,989,490   $ —   — %   $ 5,966,546   $ —   — %
    NOW and DDA accounts   5,525,976     15,065   1.11 %     5,275,703     15,918   1.21 %
    Savings accounts   2,861,675     5,159   0.73 %     2,900,649     5,655   0.78 %
    Money market deposit accounts   2,849,470     13,526   1.93 %     2,948,294     14,393   1.96 %
    Certificate accounts   3,152,198     29,075   3.74 %     3,000,713     31,175   4.18 %
    Total core deposits   20,378,809     62,825   1.25 %     20,091,905     67,141   1.34 %
    Wholesale deposits 6   3,600     40   4.53 %     3,965     55   5.50 %
    Repurchase agreements   1,842,773     13,733   3.02 %     1,513,397     12,598   3.35 %
    FHLB advances   1,744,000     20,719   4.75 %     350,754     4,249   4.79 %
    FRB Bank Term Funding   —     —   — %     2,483,077     27,097   4.39 %
    Subordinated debentures and other borrowed funds   216,073     2,629   4.94 %     218,271     1,782   3.28 %
    Total funding liabilities   24,185,255     99,946   1.68 %     24,661,369     112,922   1.84 %
    Other liabilities   326,764             356,554        
    Total liabilities   24,512,019             25,017,923        
    Stockholders’ Equity                      
    Stockholders’ equity   3,267,444             3,086,923        
    Total liabilities and stockholders’ equity $ 27,779,463           $ 28,104,846        
    Net interest income (tax-equivalent)     $ 193,400           $ 170,469    
    Net interest spread (tax-equivalent)         2.93 %           2.47 %
    Net interest margin (tax-equivalent)         3.04 %           2.59 %

    ______________________________

    1 Includes tax effect of $1.5 million and $1.6 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2025 and 2024, respectively.
    2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
    3 Includes tax effect of $1.7 million and $2.2 million on tax-exempt debt securities income for the three months ended March 31, 2025 and 2024, respectively.
    4 Includes interest income of $6.1 million and $15.3 million on average interest-bearing cash balances of $559.5 million and $1.12 billion for the three months ended March 31, 2025 and 2024, respectively.
    5 Includes tax effect of $150 thousand and $215 thousand on federal income tax credits for the three months ended March 31, 2025 and 2024, respectively.
    6 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
       

    Glacier Bancorp, Inc.
    Loan Portfolio by Regulatory Classification

      Loans Receivable, by Loan Type   % Change from
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024    		   Dec 31,
    2024    		   Mar 31,
    2024
    Custom and owner occupied construction $ 233,584     $ 242,844     $ 273,835     (4)%   (15)%
    Pre-sold and spec construction   200,921       191,926       223,294     5 %   (10)%
    Total residential construction   434,505       434,770       497,129     — %   (13)%
    Land development   177,448       197,369       215,828     (10)%   (18)%
    Consumer land or lots   197,553       187,024       188,635     6 %   5 %
    Unimproved land   115,528       113,532       103,032     2 %   12 %
    Developed lots for operative builders   64,782       61,661       47,591     5 %   36 %
    Commercial lots   95,574       99,243       92,748     (4)%   3 %
    Other construction   714,151       693,461       915,782     3 %   (22)%
    Total land, lot, and other construction   1,365,036       1,352,290       1,563,616     1 %   (13)%
    Owner occupied   3,182,589       3,197,138       3,057,348     — %   4 %
    Non-owner occupied   4,054,107       4,053,996       3,920,696     — %   3 %
    Total commercial real estate   7,236,696       7,251,134       6,978,044     — %   4 %
    Commercial and industrial   1,392,365       1,395,997       1,371,201     — %   2 %
    Agriculture   1,016,081       1,024,520       929,420     (1)%   9 %
    First lien   2,499,494       2,481,918       2,276,638     1 %   10 %
    Junior lien   85,343       76,303       51,579     12 %   65 %
    Total 1-4 family   2,584,837       2,558,221       2,328,217     1 %   11 %
    Multifamily residential   874,071       895,242       881,117     (2)%   (1)%
    Home equity lines of credit   989,043       1,005,783       947,652     (2)%   4 %
    Other consumer   188,388       209,457       223,566     (10)%   (16)%
    Total consumer   1,177,431       1,215,240       1,171,218     (3)%   1 %
    States and political subdivisions   1,001,058       983,601       848,454     2 %   18 %
    Other   176,961       183,894       191,121     (4)%   (7)%
    Total loans receivable, including loans held for sale   17,259,041       17,294,909       16,759,537     — %   3 %
    Less loans held for sale 1   (40,523 )     (33,060 )     (27,035 )   23 %   50 %
    Total loans receivable $ 17,218,518     $ 17,261,849     $ 16,732,502     — %   3 %

    ______________________________

    1 Loans held for sale are primarily first lien 1-4 family loans.
       
    Glacier Bancorp, Inc.
    Credit Quality Summary by Regulatory Classification
                   
       

    Non-performing Assets, by Loan Type

    		   Non-
    Accrual
    Loans    		   Accruing
    Loans 90
    Days
    or More Past
    Due    		   Other real estate
    owned and foreclosed assets
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024    		   Mar 31,
    2025    		   Mar 31,
    2025    		   Mar 31,
    2025
    Custom and owner occupied construction $ 194   198   210   194   —   —
    Pre-sold and spec construction   2,896   2,132   1,049   2,133   763   —
    Total residential construction   3,090   2,330   1,259   2,327   763   —
    Land development   935   966   28   935   —   —
    Consumer land or lots   173   78   144   173   —   —
    Developed lots for operative builders   531   531   608   —   531   —
    Commercial lots   47   47   2,205   —   47   —
    Total land, lot and other construction   1,686   1,622   2,985   1,108   578   —
    Owner occupied   3,601   2,979   1,501   3,073   96   432
    Non-owner occupied   2,235   2,235   8,853   1,582   —   653
    Total commercial real estate   5,836   5,214   10,354   4,655   96   1,085
    Commercial and Industrial   12,367   2,069   1,698   11,640   727   —
    Agriculture   2,382   2,335   2,855   2,090   292   —
    First lien   8,752   9,053   2,930   6,796   1,956   —
    Junior lien   296   315   69   296   —   —
    Total 1-4 family   9,048   9,368   2,999   7,092   1,956   —
    Multifamily residential   400   389   395   400   —   —
    Home equity lines of credit   3,479   3,465   1,892   2,726   753   —
    Other consumer   1,003   955   927   858   77   68
    Total consumer   4,482   4,420   2,819   3,584   830   68
    Other   47   39   61   —   47   —
    Total $ 39,338   27,786   25,425   32,896   5,289   1,153
                             

    Glacier Bancorp, Inc.
    Credit Quality Summary by Regulatory Classification (continued)

      Accruing 30-89 Days Delinquent Loans,  by Loan Type   % Change from
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024    		   Dec 31,
    2024    		   Mar 31,
    2024
    Custom and owner occupied construction $ 786   $ 969   $ 4,784   (19)%   (84)%
    Pre-sold and spec construction   —     564     1,181   (100)%   (100)%
    Total residential construction   786     1,533     5,965   (49)%   (87)%
    Land development   —     1,450     59   (100)%   (100)%
    Consumer land or lots   1,026     402     332   155 %   209 %
    Unimproved land   32     36     575   (11)%   (94)%
    Developed lots for operative builders   —     214     —   (100)%   n/m
    Commercial lots   189     —     1,225   n/m   (85)%
    Other construction   —     —     1,248   n/m   (100)%
    Total land, lot and other construction   1,247     2,102     3,439   (41)%   (64)%
    Owner occupied   3,786     2,867     2,991   32 %   27 %
    Non-owner occupied   346     5,037     18,118   (93)%   (98)%
    Total commercial real estate   4,132     7,904     21,109   (48)%   (80)%
    Commercial and industrial   5,358     6,194     14,806   (13)%   (64)%
    Agriculture   5,731     744     3,922   670 %   46 %
    First lien   14,826     6,326     5,626   134 %   164 %
    Junior lien   1,023     214     145   378 %   606 %
    Total 1-4 family   15,849     6,540     5,771   142 %   175 %
    Home equity lines of credit   6,993     3,731     3,668   87 %   91 %
    Other consumer   1,824     1,775     1,948   3 %   (6)%
    Total consumer   8,817     5,506     5,616   60 %   57 %
    States and political subdivisions   3,220     —     —   n/m   n/m
    Other   1,318     1,705     1,795   (23)%   (27)%
    Total $ 46,458   $ 32,228   $ 62,423   44 %   (26)%

    ______________________________

    n/m – not measurable

    Glacier Bancorp, Inc.
    Credit Quality Summary by Regulatory Classification (continued)
               
      Net Charge-Offs (Recoveries), Year-to-Date
    Period Ending, By Loan Type    		   Charge-Offs   Recoveries
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024    		   Mar 31,
    2025    		   Mar 31,
    2025
    Pre-sold and spec construction $ —     (4 )   (4 )   —   —
    Pre-sold and spec construction $ —     (4 )   (4 )   —   —
    Land development   (341 )   1,095     (1 )   —   341
    Consumer land or lots   (3 )   (22 )   (1 )   —   3
    Unimproved land   —     1,338     —     —   —
    Commercial lots   —     319     —     —   —
    Total land, lot and other construction   (344 )   2,730     (2 )   —   344
    Owner occupied   (1 )   (73 )   (3 )   —   1
    Non-owner occupied   (6 )   2     (1 )   —   6
    Total commercial real estate   (7 )   (71 )   (4 )   —   7
    Commercial and industrial   92     1,422     328     421   329
    Agriculture   (1 )   64     68     —   1
    First lien   (69 )   32     (4 )   —   69
    Junior lien   (5 )   (65 )   (5 )   —   5
    Total 1-4 family   (74 )   (33 )   (9 )   —   74
    Home equity lines of credit   (20 )   69     5     —   20
    Other consumer   276     1,078     251     331   55
    Total consumer   256     1,147     256     331   75
    Other   1,873     8,643     2,439     3,145   1,272
    Total $ 1,795     13,898     3,072     3,897   2,102
                               

    Visit our website at www.glacierbancorp.com 

    The MIL Network –

  • MIL-OSI: Arq to Host First Quarter 2025 Conference Call on May 7, 2025

    Source: GlobeNewswire (MIL-OSI)

    GREENWOOD VILLAGE, Colo., April 24, 2025 (GLOBE NEWSWIRE) — GlobeNewswire – Arq, Inc. (NASDAQ: ARQ) (the “Company” or “Arq”), a producer of activated carbon and other environmentally efficient carbon products for use in purification and sustainable materials, today announced the Company will release its first quarter 2025 financial results and file its Quarterly Report on Form 10-Q for the period ended March 31, 2025 before market open on May 7, 2025. A conference call to discuss the Company’s financial performance is scheduled to begin the same day at 8:30 a.m. Eastern Time.

    The conference call webcast information will be available via the Investor Resources section of Arq’s website at www.arq.com. Interested parties may participate in the conference call by registering at https://www.webcast-eqs.com/login/arq_q1_2025. Alternatively, the live conference call may be accessed by dialing (877) 407-0890 or +1 201-389-0918 and referencing Arq.

    A supplemental investor presentation will be available on the Company’s Investor Resources section of the website prior to the start of the conference call.

    A replay of the event will be made available shortly after the event and accessible via the same webcast link referenced above. Alternatively, the replay may be accessed by dialing (877) 660-6853 or (201) 612-7415 and entering Access ID 13752881. The dial-in replay will expire after May 14, 2025.

    About Arq

    Arq (NASDAQ: ARQ) is a diversified, environmental technology company with products that enable a cleaner and safer planet while actively reducing our environmental impact. As the only vertically integrated producer of activated carbon products in North America, we deliver a reliable domestic supply of innovative, hard-to-source, high-demand products. We apply our extensive expertise to develop groundbreaking solutions to remove harmful chemicals and pollutants from water, land and air. Learn more at: www.arq.com.

    Source: Arq, Inc.

    Investor Contact:

    Anthony Nathan, Arq
    Marc Silverberg, ICR
    investors@arq.com

    The MIL Network –

  • MIL-OSI: IBEX Limited to Announce Third Quarter 2025 Financial Results on May 8th, 2025

    Source: GlobeNewswire (MIL-OSI)

    WASHINGTON, April 24, 2025 (GLOBE NEWSWIRE) — IBEX Limited (“ibex”) (Nasdaq: IBEX), a leading global provider of business process outsourcing (BPO) and customer engagement technology solutions, today announced it will report third quarter 2025 financial results after the market close on Thursday, May 8, 2025. Management will host a conference call and webcast to discuss the Company’s financial results, recent developments, and business outlook at 4:30 p.m. ET.

    About ibex
    ibex delivers innovative business process outsourcing (BPO), smart digital marketing, online acquisition technology, and end-to-end customer engagement solutions to help companies acquire, engage and retain valuable customers. Today, ibex operates a global CX delivery center model consisting of approximately 31 operations facilities around the world, while deploying next generation technology to drive superior customer experiences for many of the world’s leading companies across retail, e-commerce, healthcare, fintech, utilities and logistics.

    ibex leverages its diverse global team of over 31,000 employees together with industry-leading technology, including the AI-powered ibex Wave iX solutions suite, to manage nearly 175 million critical customer interactions, adding over $2.2B in lifetime customer revenue each year and driving a truly differentiated customer experience. To learn more, visit our website at ibex.co and connect with us on LinkedIn.

    Investor Contact
    Michael Darwal
    ibex
    Michael.Darwal@ibex.co

    Media Contact
    Dan Burris
    ibex
    Daniel.Burris@ibex.co

    The MIL Network –

  • MIL-OSI: Heritage Commerce Corp Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    SAN JOSE, Calif., April 24, 2025 (GLOBE NEWSWIRE) — Heritage Commerce Corp (Nasdaq: HTBK), (the “Company”), the holding company for Heritage Bank of Commerce (the “Bank”) today announced its financial results for the first quarter of 2025. All data are unaudited.

    QUARTERLY HIGHLIGHTS:

    Net Income Earnings Per Share Pre-Provision Net
    Revenue (“PPNR”)    (1)    		 Fully Tax Equivalent
    (“FTE”) Net Interest
    Margin(1)    		 Efficiency Ratio(1) Tangible Book Value
    Per Share    (1)
               
    $11.6 million $0.19 $16.6 million 3.39% 63.96% $8.48
               


    CEO COMMENTARY:
    “We delivered a solid quarter of performance with a 9% increase in our level of profitability from the prior quarter,” said Clay Jones, President and Chief Executive Officer. “While our balance sheet trends reflected the seasonally low loan demand and deposit outflows in the first quarter, we generated a higher level of profitability due to improved net interest margin, strong expense control, and an improvement in our asset quality. We also redeployed some of our excess liquidity to purchase new investment securities, which we expect will have a positive impact on our net interest income and net interest margin going forward. Our longer-term trends remain positive as well, with notable improvement in many areas compared to the first quarter of last year, including a 14% increase in net income and increases in the annualized returns on average assets and average equity.”

    “While economic uncertainty has increased over the past few months, we still expect to deliver solid financial performance in 2025 as we continue to capitalize on our market position to assist new clients that have been impacted by dislocation and disruption in our markets resulting from bank failures and acquisitions. We believe that we will continue to see positive trends in areas such as net interest margin, loan and deposit growth, and expense management, which should lead to strong financial performance for our shareholders as we move through the year,” said Mr. Jones.

    LINKED-QUARTER BASIS YEAR-OVER-YEAR
    FINANCIAL HIGHLIGHTS:
    		  
    • Net income of $11.6 million and earnings per share of $0.19, up 9% and 12%, from $10.6 million and $0.17, respectively
    • Total revenue of $46.1 million, a decrease of 1%, or $314,000, compared to a decrease in noninterest expense of 3%, or $848,000
    • PPNR(1) of $16.6 million, up $534,000 from $16.1 million
    • Effective tax rate of 28.8%, compared to 27.9%
    • Net income of $11.6 million and earnings per share of $0.19, up 14% and 12%, from $10.2 million and $0.17, respectively
    • Total revenue of $46.1 million, an increase of 9%, or $3.9 million, compared to an increase in noninterest expense of 7%, or $1.9 million
    • PPNR(1) of $16.6 million, up $2.0 million from $14.6 million
    • Effective tax rate of 28.8%, compared to 29.5%
    FINANCIAL CONDITION:  
    • Loans held-for-investment (“HFI”) remained relatively flat at $3.5 billion
    • Total deposits of $4.7 billion, down $136.8 million, or 3%
    • Loan to deposit ratio of 74.45%, up from 72.45%
    • Total shareholders’ equity of $696 million, up $6.5 million
    • Increase in loans HFI of $150.8 million, or 5%
    • Increase in total deposits of $238.6 million, or 5%
    • Loan to deposit ratio of 74.45%, down from 75.06%
    • Increase in total shareholders’ equity of $19.9 million
    CREDIT QUALITY:  
    • Nonperforming assets (“NPAs”) to total assets of 0.11%, compared to 0.14%
    • Classified assets to total assets of 0.73%, compared to 0.74%
    • NPAs to total assets of 0.11%, compared to 0.15%
    • Classified assets to total assets of 0.73%, compared to 0.67%
    KEY PERFORMANCE METRICS:  
    • FTE net interest margin(1) of 3.39%, an increase from 3.32%
    • Return on average tangible assets(1) and on tangible common equity(1) of 0.88% and 9.09%, compared to 0.78% and 8.25%, respectively
    • Efficiency ratio(1) of 63.96%, compared to 65.35%
    • Common equity tier 1 capital ratio of 13.6%, compared to 13.4%
    • Total capital ratio of 15.9%, compared to 15.6%
    • Tangible common equity ratio(1) of 9.78%, an increase of 4% from 9.43%
    • Tangible book value per share(1) of $8.48, compared to $8.41
    • FTE net interest margin(1) of 3.39%, an increase from 3.31%
    • Return on average tangible assets(1) and on tangible common equity(1) of 0.88% and 9.09%, compared to 0.82% and 8.24%, respectively
    • Efficiency ratio(1) of 63.96%, compared to 65.34%
    • Common equity tier 1 capital ratio of 13.6%, compared to 13.4%
    • Total capital ratio of 15.9%, compared to 15.6%
    • Tangible common equity ratio(1) of 9.78%, a decrease of 1% from 9.85%
    • Tangible book value per share(1) of $8.48, compared to $8.17
       

    (1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” later in this press release.

    Results of Operations:

    Net interest income totaled $43.4 million for the first quarter of 2025, a slight decrease of $235,000, or 1%, compared to $43.6 million for the fourth quarter of 2024. The decrease was primarily due to two fewer accrual days during the quarter from the prior linked quarter, together with a lower average balance on interest earning assets, which was largely offset by a decrease in rates paid on deposits and a decrease of higher cost deposit balances. Net interest income increased $3.9 million, or 10%, compared to $39.5 million for the first quarter of 2024. The increase was primarily due to growth in average earning asset balances, partially offset by an increase in interest-bearing deposit balances.

    The FTE net interest margin(1) was 3.39% for the first quarter of 2025, an increase over 3.32% for the fourth quarter of 2024 primarily due to lower rates paid on customer deposits, an increase in the average balances of securities and loans, and higher average yields on securities, partially offset by a decrease in the average balance of noninterest-bearing demand deposits and a lower average yield on overnight funds. The FTE net interest margin(1) increased from 3.31% for the first quarter of 2024 primarily due to lower rates paid on customer deposits, an increase in the average balances of loans, and higher average yields on securities and loans, and an increase in the average balance of deposits resulting in a higher average balance of overnight funds, partially offset by a lower average yield on overnight funds.

    We recorded a provision for credit losses on loans of $274,000 for the first quarter of 2025, compared to a $1.3 million provision for credit losses on loans for the fourth quarter of 2024, and a $184,000 provision for credit losses on loans for the first quarter of 2024.

    Total noninterest income remained relatively flat at $2.7 million for the first quarter of 2025, compared to $2.8 million for the fourth quarter of 2024, and $2.6 million for the first quarter of 2024.

    Total revenue, which is defined as net interest income before provision for credit losses on loans plus noninterest income, decreased $314,000, or 1%, to $46.1 million for the first quarter of 2025, compared to $46.4 million for the fourth quarter of 2024, and increased $3.9 million, or 9%, from $42.1 million for the first quarter of 2024.

    Total noninterest expense for the first quarter of 2025 decreased to $29.5 million, compared to $30.3 million for the fourth quarter of 2024, primarily due to nonrecurring personnel related expenses and legal fees of approximately $1.1 million, and higher professional fees and homeowner association vendor payments during the fourth quarter of 2024. Total noninterest expense increased compared to $27.5 million for the first quarter of 2024, primarily due to higher salaries and employee benefits, professional fees, and information technology related expenses.

    Income tax expense was $4.7 million for the first quarter of 2025, compared to $4.1 million for the fourth quarter of 2024, and $4.3 million for the first quarter of 2024. The effective tax rate for the first quarter of 2025 was 28.8%, compared to 27.9% for the fourth quarter of 2024, and 29.5% for the first quarter of 2024.

    Net income was $11.6 million, or $0.19 per average diluted common share, for the first quarter of 2025, compared to $10.6 million, or $0.17 per average diluted common share, for the fourth quarter of 2024, and $10.2 million, or $0.17 per average diluted common share, for the first quarter of 2024.

    For the first quarter of 2025, the Company’s PPNR(1), which is defined as total revenue less noninterest expense, was $16.6 million, compared to $16.1 million for the fourth quarter of 2024, and $14.6 million for the first quarter of 2024.

    The efficiency ratio(1) improved to 63.96% for the first quarter of 2025, compared to 65.35% for the fourth quarter of 2024, as a result of lower noninterest expense, partially offset by lower total revenue. The efficiency ratio(1) improved from 65.34% for the first quarter of 2024, primarily due to higher total revenue, partially offset by higher noninterest expense during the first quarter of 2025.

    Full time equivalent employees were 350 at March 31, 2025 compared to 355 at December 31, 2024, and 351 at March 31, 2024.

    (1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” later in this press release.

    Financial Condition and Capital Management:

    Total assets decreased 2% to $5.5 billion at March 31, 2025, compared to $5.6 billion at December 31, 2024, primarily due to a decrease in deposits resulting in a decrease in overnight funds. Total assets increased 5% from $5.3 billion at March 31, 2024, primarily due to an increase in deposits resulting in an increase in overnight funds, and an increase in loans.

    Investment securities available-for-sale (at fair value) totaled $371.0 million at March 31, 2025, compared to $256.3 million at December 31, 2024, and $404.5 million at March 31, 2024. The pre-tax unrealized loss on the securities available-for-sale portfolio was $3.1 million, or $2.3 million net of taxes, which equaled less than 1% of total shareholders’ equity at March 31, 2025.

    During the first quarter of 2025, the Company purchased $62.3 million of agency mortgage-backed securities, $44.8 million of collateralized mortgage obligations, and $44.7 million of U.S. Treasury securities, for total purchases of $151.8 million in the available-for-sale portfolio. Securities purchased had a book yield of 4.86% and an average life of 4.34 years.

    Investment securities held-to-maturity (at amortized cost, net of allowance for credit losses of $12,000), totaled $576.7 million at March 31, 2025, compared to $590.0 million at December 31, 2024, and $636.2 million at March 31, 2024. The fair value of the securities held-to-maturity portfolio was $496.3 million at March 31, 2025. The pre-tax unrecognized loss on the securities held-to-maturity portfolio was $80.5 million, or $56.7 million net of taxes, which equaled 8.1% of total shareholders’ equity at March 31, 2025.

    The unrealized and unrecognized losses in both the available-for-sale and held-to-maturity portfolios were due to higher interest rates at March 31, 2025 compared to when the securities were purchased. The issuers are of high credit quality and all principal amounts are expected to be repaid when the securities mature. The fair value is expected to recover as the securities approach their maturity date and/or market rates decline.

    Loans HFI, net of deferred costs and fees, remained flat at $3.5 billion at March 31, 2025 as compared to December 31, 2024, and increased $150.8 million, or 5%, from $3.3 billion at March 31, 2024. Loans HFI, excluding residential mortgages, remained flat at $3.0 billion at March 31, 2025 as compared to December 31, 2024, and increased $175.5 million, or 6%, from $2.8 billion at March 31, 2024.

    Commercial and industrial line utilization was 31% at March 31, 2025, compared to 34% at December 31, 2024, and 28% at March 31, 2024. Commercial real estate (“CRE”) loans totaled $2.0 billion at March 31, 2025, of which 31% were owner occupied and 69% were investor CRE loans. Owner occupied CRE loans totaled 31% at December 31, 2024 and 32% at March 31, 2024. At March 31, 2025, approximately 24% of the Company’s loan portfolio consisted of floating interest rate loans, compared to 26% at both December 31, 2024 and March 31, 2024.

    At March 31, 2025, paydowns and maturities of investment securities and fixed interest rate loans maturing within one year totaled $395.6 million.

    Total deposits decreased $136.8 million, or 3%, to $4.7 billion at March 31, 2025, compared to $4.8 billion at December 31, 2024 due to deposits outflows we typically see in the first quarter, and increased $238.6 million, or 5% from $4.4 billion at March 31, 2024.

    The following table shows the Company’s deposit types as a percentage of total deposits at the dates indicated:

                       
        March 31,     December 31,     March 31,  
    DEPOSITS TYPE % TO TOTAL DEPOSITS   2025     2024     2024  
    Demand, noninterest-bearing   24 %   25 %   28 %
    Demand, interest-bearing   20 %   19 %   21 %
    Savings and money market   29 %   28 %   25 %
    Time deposits — under $250   1 %   1 %   1 %
    Time deposits — $250 and over   5 %   4 %   4 %
    ICS/CDARS — interest-bearing demand,                  
    money market and time deposits   21 %   23 %   21 %
    Total deposits   100 %   100 %   100 %
                       

    The loan to deposit ratio was 74.45% at March 31, 2025, compared to 72.45% at December 31, 2024, and 75.06% at March 31, 2024.

    The Company’s total available liquidity and borrowing capacity was $3.2 billion at March 31, 2025, compared to $3.3 billion at December 31, 2024, and $3.0 billion at March 31, 2024.

    Total shareholders’ equity was $696.2 million at March 31, 2025, compared to $689.7 million at December 31, 2024, and $676.3 million at March 31, 2024. The increase in shareholders’ equity at March 31, 2025 is primarily a function of net income and the decrease in the total accumulated other comprehensive loss, partially offset by dividends to stockholders.

    Total accumulated other comprehensive loss of $6.8 million at March 31, 2025 was comprised of unrealized losses on securities available-for-sale of $2.3 million, a split dollar insurance contracts liability of $2.4 million, a supplemental executive retirement plan liability of $2.2 million, and a $49,000 unrealized gain on interest-only strip from SBA loans.

    The Company’s consolidated capital ratios exceeded regulatory guidelines and the Bank’s capital ratios exceeded regulatory guidelines under the prompt corrective action (“PCA”) regulatory guidelines for a well-capitalized financial institution, and the Basel III minimum regulatory requirements at March 31, 2025.

    Tangible book value per share(1) was $8.48 at March 31, 2025, compared to $8.41 at December 31, 2024, and $8.17 at March 31, 2024.

    In July 2024, the Company announced that its Board of Directors adopted a share repurchase program under which the Company is authorized to repurchase up to $15 million of the Company’s shares of its issued and outstanding common stock. The Company did not repurchase any of its common stock during 2024 or the first quarter of 2025.

    (1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” later in this press release.

    Credit Quality:

    The provision for credit losses on loans totaled $274,000 for the first quarter of 2025, compared to a $1.3 million provision for credit losses on loans for the fourth quarter of 2024, and a provision for credit losses on loans of $184,000 for the first quarter of 2024. Net charge-offs totaled $965,000 for the first quarter of 2025, compared to $197,000 for the fourth quarter of 2024, and $254,000 for the first quarter of 2024. More than half of the net charge-offs for the first quarter of 2025 related to one commercial contractor that was previously reserved for during the fourth quarter of 2024. The remaining charge-offs were related to five different small businesses in a variety of industries. Four loans were underwritten using a scored small business product whose underwriting guidelines have been tightened since the loans were made. 

    The allowance for credit losses on loans (“ACLL”) at March 31, 2025 was $48.3 million, or 1.38% of total loans, representing 765% of total nonperforming loans. The ACLL at December 31, 2024 was $49.0 million, or 1.40% of total loans, representing 638% of total nonperforming loans. The ACLL at March 31, 2024 was $47.9 million, or 1.44% of total loans, representing 608% of total nonperforming loans. The reduction to the allowance for credit on losses on loans reflects our credit assessment and economic factors.

    NPAs were $6.3 million at March 31, 2025, compared to $7.7 million at December 31, 2024, and $7.9 million at March 31, 2024. There were no CRE loans in NPAs at March 31, 2025, December 31, 2024, or March 31, 2024. There were no foreclosed assets on the balance sheet at March 31, 2025, December 31, 2024, or March 31, 2024. There were no Shared National Credits (“SNCs”) or material purchased participations included in NPAs or total loans at March 31, 2025, December 31, 2024, or March 31, 2024.

    Classified assets totaled $40.0 million, or 0.73% of total assets, at March 31, 2025, compared to $41.7 million, or 0.74% of total assets, at December 31, 2024, and $35.4 million, or 0.67% of total assets, at March 31, 2024. The increase in classified assets from March 31, 2024 was primarily the result of one downgraded owner occupied CRE credit, and a number of residential related loans downgraded during the fourth quarter of 2024. The loans are well-collateralized and we do not anticipate to incur losses as a result of the downgrades of these loans.

    Heritage Commerce Corp, a bank holding company established in October 1997, is the parent company of Heritage Bank of Commerce, established in 1994 and headquartered in San Jose, CA with full-service branches in Danville, Fremont, Gilroy, Hollister, Livermore, Los Altos, Los Gatos, Morgan Hill, Oakland, Palo Alto, Pleasanton, Redwood City, San Francisco, San Jose, San Mateo, San Rafael, and Walnut Creek. Heritage Bank of Commerce is an SBA Preferred Lender. Bay View Funding, a subsidiary of Heritage Bank of Commerce, is based in San Jose, CA and provides business-essential working capital factoring financing to various industries throughout the United States. For more information, please visit www.heritagecommercecorp.com. The contents of our website are not incorporated into, and do not form a part of, this release or of our filings with the Securities and Exchange Commission.

    Reclassifications

    During the first quarter of 2025, we reclassified Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) stock dividends from interest income to noninterest income and the related average asset balances were reclassified from interest earning assets to other assets on the “Net Interest Income and Net Interest Margin” tables. The amounts for the prior periods were reclassified to conform to the current presentation. These reclassifications did not affect previously reported net income or shareholders’ equity.

    Non-GAAP Financial Measures

    Financial results are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and prevailing practices in the banking industry. However, certain non-GAAP performance measures and ratios are used by management to evaluate and measure the Company’s performance. Management believes these non-GAAP financial measures are common in the banking industry, and may enhance comparability for peer comparison purposes. These non-GAAP financial measures should be supplemental to primary GAAP financial measures and should not be read in isolation or relied upon as a substitute for primary GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is presented in the tables at the end of this press release under “Reconciliation of Non-GAAP Financial Measures.”

    Forward-Looking Statement Disclaimer

    Certain matters discussed in this press release constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are inherently uncertain in that they reflect plans and expectations for future events. These statements may include, among other things, those relating to the Company’s future financial performance, plans and objectives regarding future events, expectations regarding changes in interest rates and market conditions, projected cash flows of our investment securities portfolio, the performance of our loan portfolio, estimated net interest income resulting from a shift in interest rates, expectation of high credit quality issuers ability to repay, as well as statements relating to the anticipated effects on the Company’s financial condition and results of operations from expected developments or events. Any statements that reflect our belief about, confidence in, or expectations for future events, performance or condition should be considered forward-looking statements. Readers should not construe these statements as assurances of a given level of performance, nor as promises that we will take actions that we currently expect to take. All statements are subject to various risks and uncertainties, many of which are outside our control and some of which may fall outside our ability to predict or anticipate. Accordingly, our actual results may differ materially from our projected results, and we may take actions or experience events that we do not currently expect. Risks and uncertainties that could cause our financial performance to differ materially from our goals, plans, expectations and projections expressed in forward-looking statements include those set forth in our filings with the Securities and Exchange Commission, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and include: (i) risks of geographic concentration of our client base, our loans, and the collateral securing our loans, as those clients and assets may be particularly subject to natural disasters and to events and conditions that directly or indirectly affect those regions, including the particular risks of natural disasters (including earthquakes, fires, and flooding) and other events that disproportionately affect that region; (ii) cybersecurity risks that may affect us directly or may impact us indirectly by virtue of their effects on our clients, markets or vendors, including our ability to identify and address cybersecurity risks, including those posed by the increasing use of artificial intelligence, such as data security breaches, “denial of service” attacks, “hacking” and identity theft affecting us, our clients, and our third-party vendors and service providers; (iii) domestic, international and multinational political events that have accompanied or that may in the future accompany or result from recent political changes, particularly including sociopolitical events and conditions that result from political conflicts and law enforcement activities that may adversely affect our markets or our clients; (iv) media items and consumer confidence as those factors affect our clients’ confidence in the banking system generally and in our bank specifically; (v) adequacy of our risk management framework, disclosure controls and procedures and internal control over financial reporting; (vi) market, geographic and sociopolitical factors that arise by virtue of the fact that we operate primarily in the general San Francisco Bay Area of Northern California; (vii) the effects of recent wildfires affecting Southern California, which have affected certain clients and certain loans secured by mortgages in Los Angeles County, and which are affecting or may, in the future, affect other clients in those and other markets throughout California; (viii) factors that affect our liquidity and our ability to meet client demands for withdrawals from deposit accounts and undrawn lines of credit, including our cash on hand and the availability of funds from our own lines of credit; (ix) factors that affect the value and liquidity of our investment portfolios, particularly the values of securities available-for-sale; (x) our ability to estimate accurately, and to establish adequate reserves against, the risk of loss associated with our loan and lease portfolios and our factoring business; (xi) inflationary pressures and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase the level of defaults, losses and prepayments on loans to clients, whether held in the portfolio or in the secondary market; (xii) increased capital requirements for our continual growth or as imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all; (xiii) operational issues stemming from, and/or capital spending necessitated by, the potential need to adapt to industry changes in information technology systems, on which we are highly dependent; (xiv) events that affect our ability to attract, recruit, and retain qualified officers and other personnel to implement our strategic plan, and that enable current and future personnel to protect and develop our relationships with clients, and to promote our business, results of operations and growth prospects; (xv) the expense and uncertain resolution of litigation matters whether occurring in the ordinary course of business or otherwise, particularly including but not limited to the effects of recent and ongoing developments in California labor and employment laws, regulations and court decisions; and (xvi) our success in managing the risks involved in the foregoing factors.

    Member FDIC

    For additional information, contact:
    Debbie Reuter
    EVP, Corporate Secretary
    Direct: (408) 494-4542
    Debbie.Reuter@herbank.com

                                 
        For the Quarter Ended:   Percent Change From:  
    CONSOLIDATED INCOME STATEMENTS      March 31,       December 31,       March 31,       December 31,       March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024    2024   
    Interest income   $ 61,832   $ 64,043   $ 56,960   (3 ) % 9   %
    Interest expense     18,472     20,448     17,458   (10 ) % 6   %
    Net interest income before provision                            
    for credit losses on loans     43,360     43,595     39,502   (1 ) % 10   %
    Provision for credit losses on loans     274     1,331     184   (79 ) % 49   %
    Net interest income after provision                            
    for credit losses on loans     43,086     42,264     39,318   2   % 10   %
    Noninterest income:                            
    Service charges and fees on deposit                            
    accounts     892     885     877   1   % 2   %
    FHLB and FRB stock dividends     590     590     591   0   % 0   %
    Increase in cash surrender value of                            
    life insurance     538     528     518   2   % 4   %
    Gain on sales of SBA loans     98     125     178   (22 ) % (45 ) %
    Servicing income     82     77     90   6   % (9 ) %
    Termination fees     87     18     13   383   % 569   %
    Other     409     552     371   (26 ) % 10   %
    Total noninterest income     2,696     2,775     2,638   (3 ) % 2   %
    Noninterest expense:                            
    Salaries and employee benefits     16,575     16,976     15,509   (2 ) % 7   %
    Occupancy and equipment     2,534     2,495     2,443   2   % 4   %
    Professional fees     1,580     1,711     1,327   (8 ) % 19   %
    Other     8,767     9,122     8,257   (4 ) % 6   %
    Total noninterest expense     29,456     30,304     27,536   (3 ) % 7   %
    Income before income taxes     16,326     14,735     14,420   11   % 13   %
    Income tax expense     4,700     4,114     4,254   14   % 10   %
    Net income   $ 11,626   $ 10,621   $ 10,166   9   % 14   %
                                 
    PER COMMON SHARE DATA                            
    (unaudited)                              
    Basic earnings per share   $ 0.19   $ 0.17   $ 0.17   12   % 12   %
    Diluted earnings per share   $ 0.19   $ 0.17   $ 0.17   12   % 12   %
    Weighted average shares outstanding – basic     61,479,579     61,320,505     61,186,623   0   % 0   %
    Weighted average shares outstanding – diluted     61,708,361     61,679,735     61,470,552   0   % 0   %
    Common shares outstanding at period-end     61,611,121     61,348,095     61,253,625   0   % 1   %
    Dividend per share   $ 0.13   $ 0.13   $ 0.13   0   % 0   %
    Book value per share   $ 11.30   $ 11.24   $ 11.04   1   % 2   %
    Tangible book value per share(1)   $ 8.48   $ 8.41   $ 8.17   1   % 4   %
                                 
    KEY PERFORMANCE METRICS                                 
    (in $000’s, unaudited)                                 
    Annualized return on average equity     6.81 %   6.16 %   6.08 % 11   % 12   %
    Annualized return on average tangible                            
    common equity(1)     9.09 %   8.25 %   8.24 % 10   % 10   %
    Annualized return on average assets     0.85 %   0.75 %   0.79 % 13   % 8   %
    Annualized return on average tangible assets(1)     0.88 %   0.78 %   0.82 % 13   % 7   %
    Net interest margin (FTE)(1)     3.39 %   3.32 %   3.31 % 2   % 2   %
    Total revenue   $ 46,056   $ 46,370   $ 42,140   (1 ) % 9   %
    Pre-provision net revenue(1)   $ 16,600   $ 16,066   $ 14,604   3   % 14   %
    Efficiency ratio(1)     63.96 %   65.35 %   65.34 % (2 ) % (2 ) %
                                 
    AVERAGE BALANCES                                
    (in $000’s, unaudited)                                 
    Average assets   $ 5,559,896   $ 5,607,840   $ 5,178,636   (1 ) % 7   %
    Average tangible assets(1)   $ 5,386,001   $ 5,433,439   $ 5,002,597   (1 ) % 8   %
    Average earning assets   $ 5,188,317   $ 5,235,986   $ 4,810,505   (1 ) % 8   %
    Average loans held-for-sale   $ 2,290   $ 2,260   $ 2,749   1   % (17 ) %
    Average loans held-for-investment   $ 3,429,014   $ 3,388,729   $ 3,297,240   1   % 4   %
    Average deposits   $ 4,717,517   $ 4,771,491   $ 4,360,150   (1 ) % 8   %
    Average demand deposits – noninterest-bearing   $ 1,167,330   $ 1,222,393   $ 1,177,078   (5 ) % (1 ) %
    Average interest-bearing deposits   $ 3,550,187   $ 3,549,098   $ 3,183,072   0   % 12   %
    Average interest-bearing liabilities   $ 3,589,872   $ 3,588,755   $ 3,222,603   0   % 11   %
    Average equity   $ 692,733   $ 686,263   $ 672,292   1   % 3   %
    Average tangible common equity(1)   $ 518,838   $ 511,862   $ 496,253   1   % 5   %
                                 

    (1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.

                                     
        For the Quarter Ended:  
    CONSOLIDATED INCOME STATEMENTS      March 31,       December 31,       September 30,      June 30,       March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024  
    Interest income   $ 61,832   $ 64,043   $ 60,852   $ 58,489   $ 56,960  
    Interest expense     18,472     20,448     21,523     19,622     17,458  
    Net interest income before provision                                
    for credit losses on loans     43,360     43,595     39,329     38,867     39,502  
    Provision for credit losses on loans     274     1,331     153     471     184  
    Net interest income after provision                                
    for credit losses on loans     43,086     42,264     39,176     38,396     39,318  
    Noninterest income:                                
    Service charges and fees on deposit                                
    accounts     892     885     908     891     877  
    FHLB and FRB stock dividends     590     590     586     588     591  
    Increase in cash surrender value of                                
    life insurance     538     528     530     521     518  
    Gain on sales of SBA loans     98     125     94     76     178  
    Servicing income     82     77     108     90     90  
    Termination fees     87     18     46     100     13  
    Gain on proceeds from company-owned                                
    life insurance     —     —     —     219     —  
    Other     409     552     554     379     371  
    Total noninterest income     2,696     2,775     2,826     2,864     2,638  
    Noninterest expense:                                
    Salaries and employee benefits     16,575     16,976     15,673     15,794     15,509  
    Occupancy and equipment     2,534     2,495     2,599     2,689     2,443  
    Professional fees     1,580     1,711     1,306     1,072     1,327  
    Other     8,767     9,122     7,977     8,633     8,257  
    Total noninterest expense     29,456     30,304     27,555     28,188     27,536  
    Income before income taxes     16,326     14,735     14,447     13,072     14,420  
    Income tax expense     4,700     4,114     3,940     3,838     4,254  
    Net income   $ 11,626   $ 10,621   $ 10,507   $ 9,234   $ 10,166  
                                     
    PER COMMON SHARE DATA                                
    (unaudited)                                    
    Basic earnings per share   $ 0.19   $ 0.17   $ 0.17   $ 0.15   $ 0.17  
    Diluted earnings per share   $ 0.19   $ 0.17   $ 0.17   $ 0.15   $ 0.17  
    Weighted average shares outstanding – basic     61,479,579     61,320,505     61,295,877     61,279,914     61,186,623  
    Weighted average shares outstanding – diluted     61,708,361     61,679,735     61,546,157     61,438,088     61,470,552  
    Common shares outstanding at period-end     61,611,121     61,348,095     61,297,344     61,292,094     61,253,625  
    Dividend per share   $ 0.13   $ 0.13   $ 0.13   $ 0.13   $ 0.13  
    Book value per share   $ 11.30   $ 11.24   $ 11.18   $ 11.08   $ 11.04  
    Tangible book value per share(1)   $ 8.48   $ 8.41   $ 8.33   $ 8.22   $ 8.17  
                                     
    KEY PERFORMANCE METRICS                                   
    (in $000’s, unaudited)                                     
    Annualized return on average equity     6.81 %   6.16 %   6.14 %   5.50 %   6.08 %
    Annualized return on average tangible                                
    common equity(1)     9.09 %   8.25 %   8.27 %   7.43 %   8.24 %
    Annualized return on average assets     0.85 %   0.75 %   0.78 %   0.71 %   0.79 %
    Annualized return on average tangible assets(1)     0.88 %   0.78 %   0.81 %   0.74 %   0.82 %
    Net interest margin (FTE)(1)     3.39 %   3.32 %   3.15 %   3.23 %   3.31 %
    Total revenue   $ 46,056   $ 46,370   $ 42,155   $ 41,731   $ 42,140  
    Pre-provision net revenue(1)   $ 16,600   $ 16,066   $ 14,600   $ 13,543   $ 14,604  
    Efficiency ratio(1)     63.96 %   65.35 %   65.37 %   67.55 %   65.34 %
                                     
    AVERAGE BALANCES                                     
    (in $000’s, unaudited)                                     
    Average assets   $ 5,559,896   $ 5,607,840   $ 5,352,067   $ 5,213,171   $ 5,178,636  
    Average tangible assets(1)   $ 5,386,001   $ 5,433,439   $ 5,177,114   $ 5,037,673   $ 5,002,597  
    Average earning assets   $ 5,188,317   $ 5,235,986   $ 4,980,082   $ 4,840,670   $ 4,810,505  
    Average loans held-for-sale   $ 2,290   $ 2,260   $ 1,493   $ 1,503   $ 2,749  
    Average loans held-for-investment   $ 3,429,014   $ 3,388,729   $ 3,359,647   $ 3,328,358   $ 3,297,240  
    Average deposits   $ 4,717,517   $ 4,771,491   $ 4,525,946   $ 4,394,545   $ 4,360,150  
    Average demand deposits – noninterest-bearing   $ 1,167,330   $ 1,222,393   $ 1,172,304   $ 1,127,145   $ 1,177,078  
    Average interest-bearing deposits   $ 3,550,187   $ 3,549,098   $ 3,353,642   $ 3,267,400   $ 3,183,072  
    Average interest-bearing liabilities   $ 3,589,872   $ 3,588,755   $ 3,393,264   $ 3,306,972   $ 3,222,603  
    Average equity   $ 692,733   $ 686,263   $ 680,404   $ 675,108   $ 672,292  
    Average tangible common equity(1)   $ 518,838   $ 511,862   $ 505,451   $ 499,610   $ 496,253  
                                     

    (1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.

                                 
        End of Period:   Percent Change From:  
    CONSOLIDATED BALANCE SHEETS      March 31,       December 31,       March 31,       December 31,       March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024    2024   
    ASSETS                            
    Cash and due from banks   $ 44,281     $ 29,864     $ 32,543     48   % 36   %
    Other investments and interest-bearing deposits                            
    in other financial institutions     700,769       938,259       508,816     (25 ) % 38   %
    Securities available-for-sale, at fair value     370,976       256,274       404,474     45   % (8 ) %
    Securities held-to-maturity, at amortized cost     576,718       590,016       636,249     (2 ) % (9 ) %
    Loans – held-for-sale – SBA, including deferred costs     1,884       2,375       1,946     (21 ) % (3 ) %
    Loans – held-for-investment:                            
    Commercial     489,241       531,350       452,231     (8 ) % 8   %
    Real estate:                            
    CRE – owner occupied     616,825       601,636       585,031     3   % 5   %
    CRE – non-owner occupied     1,363,275       1,341,266       1,271,184     2   % 7   %
    Land and construction     136,106       127,848       129,712     6   % 5   %
    Home equity     119,138       127,963       122,794     (7 ) % (3 ) %
    Multifamily     284,510       275,490       269,263     3   % 6   %
    Residential mortgages     465,330       471,730       490,035     (1 ) % (5 ) %
    Consumer and other     12,741       14,837       16,439     (14 ) % (22 ) %
    Loans     3,487,166       3,492,120       3,336,689     0   % 5   %
    Deferred loan fees, net     (268 )     (183 )     (587 )   46   % (54 ) %
    Total loans – held-for-investment, net of deferred fees     3,486,898       3,491,937       3,336,102     0   % 5   %
    Allowance for credit losses on loans     (48,262 )     (48,953 )     (47,888 )   (1 ) % 1   %
    Loans, net     3,438,636       3,442,984       3,288,214     0   % 5   %
    Company-owned life insurance     81,749       81,211       80,007     1   % 2   %
    Premises and equipment, net     9,772       10,140       9,986     (4 ) % (2 ) %
    Goodwill     167,631       167,631       167,631     0   % 0   %
    Other intangible assets     5,986       6,439       8,074     (7 ) % (26 ) %
    Accrued interest receivable and other assets     115,853       119,813       118,134     (3 ) % (2 ) %
    Total assets   $ 5,514,255     $ 5,645,006     $ 5,256,074     (2 ) % 5   %
                                 
    LIABILITIES AND SHAREHOLDERS’ EQUITY                            
    Liabilities:                            
    Deposits:                            
    Demand, noninterest-bearing   $ 1,128,593     $ 1,214,192     $ 1,242,059     (7 ) % (9 ) %
    Demand, interest-bearing     949,068       936,587       925,100     1   % 3   %
    Savings and money market     1,353,293       1,325,923       1,124,900     2   % 20   %
    Time deposits – under $250     37,592       38,988       38,105     (4 ) % (1 ) %
    Time deposits – $250 and over     213,357       206,755       200,739     3   % 6   %
    ICS/CDARS – interest-bearing demand, money market                            
    and time deposits     1,001,365       1,097,586       913,757     (9 ) % 10   %
    Total deposits     4,683,268       4,820,031       4,444,660     (3 ) % 5   %
    Subordinated debt, net of issuance costs     39,691       39,653       39,539     0   % 0   %
    Accrued interest payable and other liabilities     95,106       95,595       95,579     (1 ) % 0   %
    Total liabilities     4,818,065       4,955,279       4,579,778     (3 ) % 5   %
                                 
    Shareholders’ Equity:                            
    Common stock     511,596       510,070       507,578     0   % 1   %
    Retained earnings     191,401       187,762       181,306     2   % 6   %
    Accumulated other comprehensive loss     (6,807 )     (8,105 )     (12,588 )   (16 ) % (46 ) %
    Total shareholders’ equity     696,190       689,727       676,296     1   % 3   %
    Total liabilities and shareholders’ equity   $ 5,514,255     $ 5,645,006     $ 5,256,074     (2 ) % 5   %
                                 
                                   
        End of Period:
    CONSOLIDATED BALANCE SHEETS      March 31,       December 31,       September 30,      June 30,       March 31, 
    (in $000’s, unaudited)   2025   2024   2024   2024   2024
    ASSETS                              
    Cash and due from banks   $ 44,281     $ 29,864     $ 49,722     $ 37,497     $ 32,543  
    Other investments and interest-bearing deposits                              
    in other financial institutions     700,769       938,259       906,588       610,763       508,816  
    Securities available-for-sale, at fair value     370,976       256,274       237,612       273,043       404,474  
    Securities held-to-maturity, at amortized cost     576,718       590,016       604,193       621,178       636,249  
    Loans – held-for-sale – SBA, including deferred costs     1,884       2,375       1,649       1,899       1,946  
    Loans – held-for-investment:                              
    Commercial     489,241       531,350       481,266       477,929       452,231  
    Real estate:                              
    CRE – owner occupied     616,825       601,636       602,062       594,504       585,031  
    CRE – non-owner occupied     1,363,275       1,341,266       1,310,578       1,283,323       1,271,184  
    Land and construction     136,106       127,848       125,761       125,374       129,712  
    Home equity     119,138       127,963       124,090       126,562       122,794  
    Multifamily     284,510       275,490       273,103       268,968       269,263  
    Residential mortgages     465,330       471,730       479,524       484,809       490,035  
    Consumer and other     12,741       14,837       14,179       18,758       16,439  
    Loans     3,487,166       3,492,120       3,410,563       3,380,227       3,336,689  
    Deferred loan fees, net     (268 )     (183 )     (327 )     (434 )     (587 )
    Total loans – held-for-investment, net of deferred fees     3,486,898       3,491,937       3,410,236       3,379,793       3,336,102  
    Allowance for credit losses on loans     (48,262 )     (48,953 )     (47,819 )     (47,954 )     (47,888 )
    Loans, net     3,438,636       3,442,984       3,362,417       3,331,839       3,288,214  
    Company-owned life insurance     81,749       81,211       80,682       80,153       80,007  
    Premises and equipment, net     9,772       10,140       10,398       10,310       9,986  
    Goodwill     167,631       167,631       167,631       167,631       167,631  
    Other intangible assets     5,986       6,439       6,966       7,521       8,074  
    Accrued interest receivable and other assets     115,853       119,813       123,738       121,190       118,134  
    Total assets   $ 5,514,255     $ 5,645,006     $ 5,551,596     $ 5,263,024     $ 5,256,074  
                                   
    LIABILITIES AND SHAREHOLDERS’ EQUITY                              
    Liabilities:                              
    Deposits:                              
    Demand, noninterest-bearing   $ 1,128,593     $ 1,214,192     $ 1,272,139     $ 1,187,320     $ 1,242,059  
    Demand, interest-bearing     949,068       936,587       913,910       928,246       925,100  
    Savings and money market     1,353,293       1,325,923       1,309,676       1,126,520       1,124,900  
    Time deposits – under $250     37,592       38,988       39,060       39,046       38,105  
    Time deposits – $250 and over     213,357       206,755       196,945       203,886       200,739  
    ICS/CDARS – interest-bearing demand, money market                              
    and time deposits     1,001,365       1,097,586       997,803       959,592       913,757  
    Total deposits     4,683,268       4,820,031       4,729,533       4,444,610       4,444,660  
    Other short-term borrowings     —       —       —       —       —  
    Subordinated debt, net of issuance costs     39,691       39,653       39,615       39,577       39,539  
    Accrued interest payable and other liabilities     95,106       95,595       97,096       99,638       95,579  
    Total liabilities     4,818,065       4,955,279       4,866,244       4,583,825       4,579,778  
                                   
    Shareholders’ Equity:                              
    Common stock     511,596       510,070       509,134       508,343       507,578  
    Retained earnings     191,401       187,762       185,110       182,571       181,306  
    Accumulated other comprehensive loss     (6,807 )     (8,105 )     (8,892 )     (11,715 )     (12,588 )
    Total shareholders’ equity     696,190       689,727       685,352       679,199       676,296  
    Total liabilities and shareholders’ equity   $ 5,514,255     $ 5,645,006     $ 5,551,596     $ 5,263,024     $ 5,256,074  
                                   
                                 
        At or For the Quarter Ended:   Percent Change From:  
    CREDIT QUALITY DATA      March 31,       December 31,       March 31,       December 31,       March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024    2024   
    Nonaccrual loans – held-for-investment:                            
    Land and construction loans   $ 4,793   $ 5,874   $ 4,673   (18 ) % 3   %
    Home equity and other loans     927     290     120   220   % 673   %
    Commercial loans     324     1,014     1,127   (68 ) % (71 ) %
    CRE loans     —     —     —   N/A     N/A    
    Total nonaccrual loans – held-for-investment:     6,044     7,178     5,920   (16 ) % 2   %
    Loans over 90 days past due                            
    and still accruing     268     489     1,951   (45 ) % (86 ) %
    Total nonperforming loans     6,312     7,667     7,871   (18 ) % (20 ) %
    Foreclosed assets     —     —     —   N/A     N/A    
    Total nonperforming assets   $ 6,312   $ 7,667   $ 7,871   (18 ) % (20 ) %
    Net charge-offs during the quarter   $ 965   $ 197   $ 254   390   % 280   %
    Provision for credit losses on loans during the quarter   $ 274   $ 1,331   $ 184   (79 ) % 49   %
    Allowance for credit losses on loans   $ 48,262   $ 48,953   $ 47,888   (1 ) % 1   %
    Classified assets   $ 40,034   $ 41,661   $ 35,392   (4 ) % 13   %
    Allowance for credit losses on loans to total loans     1.38 %   1.40 %   1.44 % (1 ) % (4 ) %
    Allowance for credit losses on loans to total nonperforming loans     764.61 %   638.49 %   608.41 % 20   % 26   %
    Nonperforming assets to total assets     0.11 %   0.14 %   0.15 % (21 ) % (27 ) %
    Nonperforming loans to total loans     0.18 %   0.22 %   0.24 % (18 ) % (25 ) %
    Classified assets to Heritage Commerce Corp                            
    Tier 1 capital plus allowance for credit losses on loans     7 %   7 %   6 % 0   % 17   %
    Classified assets to Heritage Bank of Commerce                            
    Tier 1 capital plus allowance for credit losses on loans     7 %   7 %   6 % 0   % 17   %
                                 
    OTHER PERIOD-END STATISTICS                                 
    (in $000’s, unaudited)                                 
    Heritage Commerce Corp:                            
    Tangible common equity (1)   $ 522,573   $ 515,657   $ 500,591   1   % 4   %
    Shareholders’ equity / total assets     12.63 %   12.22 %   12.87 % 3   % (2 ) %
    Tangible common equity / tangible assets (1)     9.78 %   9.43 %   9.85 % 4   % (1 ) %
    Loan to deposit ratio     74.45 %   72.45 %   75.06 % 3   % (1 ) %
    Noninterest-bearing deposits / total deposits     24.10 %   25.19 %   27.94 % (4 ) % (14 ) %
    Total capital ratio     15.9 %   15.6 %   15.6 % 2   % 2   %
    Tier 1 capital ratio     13.6 %   13.4 %   13.4 % 1   % 1   %
    Common Equity Tier 1 capital ratio     13.6 %   13.4 %   13.4 % 1   % 1   %
    Tier 1 leverage ratio     9.8 %   9.6 %   10.2 % 2   % (4 ) %
    Heritage Bank of Commerce:                            
    Tangible common equity / tangible assets (1)     10.15 %   9.79 %   10.22 % 4   % (1 ) %
    Total capital ratio     15.4 %   15.1 %   15.1 % 2   % 2   %
    Tier 1 capital ratio     14.1 %   13.9 %   13.9 % 1   % 1   %
    Common Equity Tier 1 capital ratio     14.1 %   13.9 %   13.9 % 1   % 1   %
    Tier 1 leverage ratio     10.2 %   10.0 %   10.6 % 2   % (4 ) %
                                 

    (1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.

                                     
        At or For the Quarter Ended:  
    CREDIT QUALITY DATA      March 31,       December 31,       September 30,      June 30,       March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024  
    Nonaccrual loans – held-for-investment:                                
    Land and construction loans   $ 4,793   $ 5,874   $ 5,862   $ 4,774   $ 4,673  
    Home equity and other loans     927     290     84     108     120  
    Commercial loans     324     1,014     752     900     1,127  
    CRE loans     —     —     —     —     —  
    Total nonaccrual loans – held-for-investment:     6,044     7,178     6,698     5,782     5,920  
    Loans over 90 days past due                                
    and still accruing     268     489     460     248     1,951  
    Total nonperforming loans     6,312     7,667     7,158     6,030     7,871  
    Foreclosed assets     —     —     —     —     —  
    Total nonperforming assets   $ 6,312   $ 7,667   $ 7,158   $ 6,030   $ 7,871  
    Net charge-offs during the quarter   $ 965   $ 197   $ 288   $ 405   $ 254  
    Provision for credit losses on loans during the quarter   $ 274   $ 1,331   $ 153   $ 471   $ 184  
    Allowance for credit losses on loans   $ 48,262   $ 48,953   $ 47,819   $ 47,954   $ 47,888  
    Classified assets   $ 40,034   $ 41,661   $ 32,609   $ 33,605   $ 35,392  
    Allowance for credit losses on loans to total loans     1.38 %   1.40 %   1.40 %   1.42 %   1.44 %
    Allowance for credit losses on loans to total nonperforming loans     764.61 %   638.49 %   668.05 %   795.26 %   608.41 %
    Nonperforming assets to total assets     0.11 %   0.14 %   0.13 %   0.11 %   0.15 %
    Nonperforming loans to total loans     0.18 %   0.22 %   0.21 %   0.18 %   0.24 %
    Classified assets to Heritage Commerce Corp                                
    Tier 1 capital plus allowance for credit losses on loans     7 %   7 %   6 %   6 %   6 %
    Classified assets to Heritage Bank of Commerce                                
    Tier 1 capital plus allowance for credit losses on loans     7 %   7 %   6 %   6 %   6 %
                                     
    OTHER PERIOD-END STATISTICS                                     
    (in $000’s, unaudited)                                     
    Heritage Commerce Corp:                                
    Tangible common equity (1)   $ 522,573   $ 515,657   $ 510,755   $ 504,047   $ 500,591  
    Shareholders’ equity / total assets     12.63 %   12.22 %   12.35 %   12.91 %   12.87 %
    Tangible common equity / tangible assets (1)     9.78 %   9.43 %   9.50 %   9.91 %   9.85 %
    Loan to deposit ratio     74.45 %   72.45 %   72.11 %   76.04 %   75.06 %
    Noninterest-bearing deposits / total deposits     24.10 %   25.19 %   26.90 %   26.71 %   27.94 %
    Total capital ratio     15.9 %   15.6 %   15.6 %   15.6 %   15.6 %
    Tier 1 capital ratio     13.6 %   13.4 %   13.4 %   13.4 %   13.4 %
    Common Equity Tier 1 capital ratio     13.6 %   13.4 %   13.4 %   13.4 %   13.4 %
    Tier 1 leverage ratio     9.8 %   9.6 %   10.0 %   10.2 %   10.2 %
    Heritage Bank of Commerce:                                
    Tangible common equity / tangible assets (1)     10.15 %   9.79 %   9.86 %   10.28 %   10.22 %
    Total capital ratio     15.4 %   15.1 %   15.1 %   15.1 %   15.1 %
    Tier 1 capital ratio     14.1 %   13.9 %   13.9 %   13.9 %   13.9 %
    Common Equity Tier 1 capital ratio     14.1 %   13.9 %   13.9 %   13.9 %   13.9 %
    Tier 1 leverage ratio     10.2 %   10.0 %   10.4 %   10.6 %   10.6 %
                                     

    (1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.

                                       
        For the Quarter Ended   For the Quarter Ended  
        March 31, 2025   December 31, 2024  
                    Interest      Average               Interest      Average  
    NET INTEREST INCOME AND NET INTEREST MARGIN   Average   Income/   Yield/   Average   Income/   Yield/  
    (in $000’s, unaudited)   Balance   Expense   Rate   Balance   Expense   Rate  
    Assets:                                  
    Loans, core bank   $ 2,945,072       39,758     5.47 % $ 2,899,347     $ 39,852     5.47 %
    Prepayment fees     —       224     0.03 %   —       35     0.00 %
    Bay View Funding factored receivables     60,250       2,942     19.80 %   59,153       3,084     20.74 %
    Purchased residential mortgages     427,963       3,597     3.41 %   434,846       3,732     3.41 %
    Loan fair value mark / accretion     (1,981 )     181     0.02 %   (2,357 )     429     0.06 %
    Loans, gross (1)(2)     3,431,304       46,702     5.52 %   3,390,989       47,132     5.53 %
    Securities – taxable     876,092       5,559     2.57 %   800,174       4,475     2.22 %
    Securities – exempt from Federal tax (3)     30,480       275     3.66 %   30,570       274     3.57 %
    Other investments and interest-bearing deposits                                  
    in other financial institutions     850,441       9,354     4.46 %   1,014,253       12,220     4.79 %
    Total interest earning assets (3)     5,188,317       61,890     4.84 %   5,235,986       64,101     4.87 %
    Cash and due from banks     31,869                 32,569              
    Premises and equipment, net     10,007                 10,301              
    Goodwill and other intangible assets     173,895                 174,401              
    Other assets     155,808                 154,583              
    Total assets   $ 5,559,896               $ 5,607,840              
                                       
    Liabilities and shareholders’ equity:                                  
    Deposits:                                  
    Demand, noninterest-bearing   $ 1,167,330               $ 1,222,393              
                                       
    Demand, interest-bearing     944,375       1,438     0.62 %   906,581       1,452     0.64 %
    Savings and money market     1,323,038       8,073     2.47 %   1,339,397       9,090     2.70 %
    Time deposits – under $100     11,383       47     1.67 %   11,388       49     1.71 %
    Time deposits – $100 and over     234,421       2,129     3.68 %   234,446       2,310     3.92 %
    ICS/CDARS – interest-bearing demand, money market                                  
    and time deposits     1,036,970       6,248     2.44 %   1,057,286       7,009     2.64 %
    Total interest-bearing deposits     3,550,187       17,935     2.05 %   3,549,098       19,910     2.23 %
    Total deposits     4,717,517       17,935     1.54 %   4,771,491       19,910     1.66 %
                                       
    Short-term borrowings     18       —     0.00 %   28       —     0.00 %
    Subordinated debt, net of issuance costs     39,667       537     5.49 %   39,629       538     5.40 %
    Total interest-bearing liabilities     3,589,872       18,472     2.09 %   3,588,755       20,448     2.27 %
    Total interest-bearing liabilities and demand,                                  
    noninterest-bearing / cost of funds     4,757,202       18,472     1.57 %   4,811,148       20,448     1.69 %
    Other liabilities     109,961                 110,429              
    Total liabilities     4,867,163                 4,921,577              
    Shareholders’ equity     692,733                 686,263              
    Total liabilities and shareholders’ equity   $ 5,559,896               $ 5,607,840              
                                       
    Net interest income / margin (3)           43,418     3.39 %         43,653     3.32 %
    Less tax equivalent adjustment (3)           (58 )               (58 )      
    Net interest income         $ 43,360     3.39 %       $ 43,595     3.31 %
                                       

    (1)Includes loans held-for-sale. Nonaccrual loans are included in average balances.
    (2)Yield amounts earned on loans include fees and costs. The accretion of net deferred loan fees into loan interest income was $214,000 for the first quarter of 2025, compared to $167,000 for the fourth quarter of 2024. Prepayment fees totaled $224,000 for the first quarter of 2025, compared to $35,000 for the fourth quarter of 2024.
    (3)Reflects the FTE adjustment for Federal tax-exempt income based on a 21% tax rate. This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.

                                       
        For the Quarter Ended   For the Quarter Ended  
        March 31, 2025   March 31, 2024  
                    Interest      Average               Interest      Average  
    NET INTEREST INCOME AND NET INTEREST MARGIN   Average   Income/   Yield/   Average   Income/   Yield/  
    (in $000’s, unaudited)   Balance   Expense   Rate   Balance   Expense   Rate  
    Assets:                                  
    Loans, core bank   $ 2,945,072     $ 39,758     5.47 % $ 2,795,351     $ 37,721     5.43 %
    Prepayment fees     —       224     0.03 %   —       24     0.00 %
    Bay View Funding factored receivables     60,250       2,942     19.80 %   53,511       2,838     21.33 %
    Purchased residential mortgages     427,963       3,597     3.41 %   454,240       3,788     3.35 %
    Loan fair value mark / accretion     (1,981 )     181     0.02 %   (3,113 )     229     0.03 %
    Loans, gross (1)(2)     3,431,304       46,702     5.52 %   3,299,989       44,600     5.44 %
    Securities – taxable     876,092       5,559     2.57 %   1,042,484       6,183     2.39 %
    Securities – exempt from Federal tax (3)     30,480       275     3.66 %   31,939       286     3.60 %
    Other investments and interest-bearing deposits                                  
    in other financial institutions     850,441       9,354     4.46 %   436,093       5,951     5.49 %
    Total interest earning assets (3)     5,188,317       61,890     4.84 %   4,810,505       57,020     4.77 %
    Cash and due from banks     31,869                 33,214              
    Premises and equipment, net     10,007                 10,015              
    Goodwill and other intangible assets     173,895                 176,039              
    Other assets     155,808                 148,863              
    Total assets   $ 5,559,896               $ 5,178,636              
                                       
    Liabilities and shareholders’ equity:                                  
    Deposits:                                  
    Demand, noninterest-bearing   $ 1,167,330               $ 1,177,078              
                                       
    Demand, interest-bearing     944,375       1,438     0.62 %   920,048       1,554     0.68 %
    Savings and money market     1,323,038       8,073     2.47 %   1,067,581       6,649     2.50 %
    Time deposits – under $100     11,383       47     1.67 %   10,945       42     1.54 %
    Time deposits – $100 and over     234,421       2,129     3.68 %   221,211       2,064     3.75 %
    ICS/CDARS – interest-bearing demand, money market                                  
    and time deposits     1,036,970       6,248     2.44 %   963,287       6,611     2.76 %
    Total interest-bearing deposits     3,550,187       17,935     2.05 %   3,183,072       16,920     2.14 %
    Total deposits     4,717,517       17,935     1.54 %   4,360,150       16,920     1.56 %
                                       
    Short-term borrowings     18       —     0.00 %   15       —     0.00 %
    Subordinated debt, net of issuance costs     39,667       537     5.49 %   39,516       538     5.48 %
    Total interest-bearing liabilities     3,589,872       18,472     2.09 %   3,222,603       17,458     2.18 %
    Total interest-bearing liabilities and demand,                                  
    noninterest-bearing / cost of funds     4,757,202       18,472     1.57 %   4,399,681       17,458     1.60 %
    Other liabilities     109,961                 106,663              
    Total liabilities     4,867,163                 4,506,344              
    Shareholders’ equity     692,733                 672,292              
    Total liabilities and shareholders’ equity   $ 5,559,896               $ 5,178,636              
                                       
    Net interest income / margin (3)           43,418     3.39 %         39,562     3.31 %
    Less tax equivalent adjustment (3)           (58 )               (60 )      
    Net interest income         $ 43,360     3.39 %       $ 39,502     3.30 %

    (1)Includes loans held-for-sale. Nonaccrual loans are included in average balances.
    (2)Yield amounts earned on loans include fees and costs. The accretion of net deferred loan fees into loan interest income was $214,000 for the first quarter of 2025, compared to $160,000 for the first quarter of 2024. Prepayment fees totaled $224,000 for the first quarter of 2025, compared to $24,000 for the first quarter of 2024.
    (3)Reflects the FTE adjustment for Federal tax-exempt income based on a 21% tax rate. This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

    Management considers tangible book value per share as a useful measurement of the Company’s equity. The Company references the return on average tangible common equity and the return on average tangible assets as measurements of profitability.

    The following table summarizes components of the tangible book value per share at the dates indicated:

                                     
    TANGIBLE BOOK VALUE PER SHARE   March 31,    December 31,    September 30,   June 30,   March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024  
    Capital components:                                
    Total Equity (GAAP)   $ 696,190     $ 689,727     $ 685,352     $ 679,199     $ 676,296    
    Less: Preferred Stock     —       —       —       —       —    
    Total Common Equity     696,190       689,727       685,352       679,199       676,296    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (5,986 )     (6,439 )     (6,966 )     (7,521 )     (8,074 )  
    Total Tangible Common Equity (non-GAAP)   $ 522,573     $ 515,657     $ 510,755     $ 504,047     $ 500,591    
                                     
    Common shares outstanding at period-end     61,611,121       61,348,095       61,297,344       61,292,094       61,253,625    
                                     
    Tangible book value per share (non-GAAP)   $ 8.48     $ 8.41     $ 8.33     $ 8.22     $ 8.17    
                                               

    The following tables summarize components of the annualized return on average tangible common equity and the annualized return on average tangible assets for the periods indicated:

                                     
    RETURN ON AVERAGE TANGIBLE COMMON   For the Quarter Ended:  
    EQUITY AND AVERAGE TANGIBLE COMMON ASSETS   March 31,    December 31,    September 30,   June 30,   March 31,   
    (in $000’s, unaudited)   2025   2024     2024    2024   2024  
    Net income   $ 11,626     $ 10,621     $ 10,507     $ 9,234     $ 10,166    
                                     
    Average tangible common equity components:                                
    Average Equity (GAAP)   $ 692,733     $ 686,263     $ 680,404     $ 675,108     $ 672,292    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (6,264 )     (6,770 )     (7,322 )     (7,867 )     (8,408 )  
    Total Average Tangible Common Equity (non-GAAP)   $ 518,838     $ 511,862     $ 505,451     $ 499,610     $ 496,253    
                                     
    Annualized return on average tangible common equity (non-GAAP)     9.09   %   8.25   %   8.27   %   7.43   %   8.24   %
                                     
    Average tangible assets components:                                
    Average Assets (GAAP)   $ 5,559,896     $ 5,607,840     $ 5,352,067     $ 5,213,171     $ 5,178,636    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (6,264 )     (6,770 )     (7,322 )     (7,867 )     (8,408 )  
    Total Average Tangible Assets (non-GAAP)   $ 5,386,001     $ 5,433,439     $ 5,177,114     $ 5,037,673     $ 5,002,597    
                                     
    Annualized return on average tangible assets (non-GAAP)     0.88   %   0.78   %   0.81   %   0.74   %   0.82   %
                                               

    Management reviews yields on certain asset categories and the net interest margin of the Company on an FTE basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis using tax rates effective as of the end of the period. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. The following tables summarize components of FTE net interest income of the Company for the periods indicated:

                                     
        For the Quarter Ended:  
        March 31,    December 31,    September 30,    June 30,    March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024  
    Net interest income before                                
    credit losses on loans (GAAP)   $ 43,360   $ 43,595   $ 39,329   $ 38,867   $ 39,502  
    Tax-equivalent adjustment on securities –                                
    exempt from Federal tax     58     58     59     60     60  
    Net interest income, FTE (non-GAAP)   $ 43,418   $ 43,653   $ 39,388   $ 38,927   $ 39,562  
                                     
    Average balance of total interest earning assets   $ 5,188,317   $ 5,235,986   $ 4,980,082   $ 4,840,670   $ 4,810,505  
                                     
    Net interest margin (annualized net interest income divided by the                                
    average balance of total interest earnings assets) (GAAP)     3.39 %   3.31 %   3.14 %   3.23 %   3.30 %
                                     
    Net interest margin, FTE (annualized net interest income, FTE,                                
    divided by the average balance of total                                
    earnings assets) (non-GAAP)     3.39 %   3.32 %   3.15 %   3.23 %   3.31 %
                                     

    Management views its non-GAAP PPNR as a key metric for assessing the Company’s earnings power. The following table summarizes the components of PPNR for the periods indicated:

                                   
        For the Quarter Ended:
        March 31,    December 31,    September 30,   June 30,   March 31, 
    (in $000’s, unaudited)   2025   2024   2024   2024   2024
                                   
                                   
    Net interest income before credit losses on loans   $ 43,360     $ 43,595     $ 39,329     $ 38,867     $ 39,502  
    Noninterest income     2,696       2,775       2,826       2,864       2,638  
    Total revenue     46,056       46,370     $ 42,155     $ 41,731     $ 42,140  
    Less: Noninterest expense     (29,456 )     (30,304 )     (27,555 )     (28,188 )     (27,536 )
    PPNR (non-GAAP)   $ 16,600     $ 16,066     $ 14,600     $ 13,543     $ 14,604  
                                             

    The efficiency ratio is a non-GAAP financial measure, which is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income), and measures how much it costs to produce one dollar of revenue. The following tables summarize components of the efficiency ratio of the Company for the periods indicated:

                                     
        For the Quarter Ended:  
        March 31,    December 31,    September 30,   June 30,   March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024  
    Noninterest expense   $ 29,456   $ 30,304   $ 27,555   $ 28,188   $ 27,536  
                                     
    Net interest income before credit losses on loans   $ 43,360   $ 43,595   $ 39,329   $ 38,867   $ 39,502  
    Noninterest income     2,696     2,775     2,826     2,864     2,638  
    Total revenue   $ 46,056   $ 46,370   $ 42,155   $ 41,731   $ 42,140  
                                     
    Efficiency ratio (noninterest expense divided                                
    by total revenue) (non-GAAP)     63.96 %   65.35 %   65.37 %   67.55 %   65.34 %
                                     

    Management considers the tangible common equity ratio as a useful measurement of the Company’s and the Bank’s equity. The following table summarizes components of the tangible common equity to tangible assets ratio of the Company at the dates indicated:

                                     
    TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS   March 31,    December 31,    September 30,      June 30,       March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024   
    Capital components:                                
    Total Equity (GAAP)   $ 696,190     $ 689,727     $ 685,352     $ 679,199     $ 676,296    
    Less: Preferred Stock     —       —       —       —       —    
    Total Common Equity     696,190       689,727       685,352       679,199       676,296    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (5,986 )     (6,439 )     (6,966 )     (7,521 )     (8,074 )  
    Total Tangible Common Equity (non-GAAP)   $ 522,573     $ 515,657     $ 510,755     $ 504,047     $ 500,591    
                                     
    Asset components:                                
    Total Assets (GAAP)   $ 5,514,255     $ 5,645,006     $ 5,551,596     $ 5,263,024     $ 5,256,074    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (5,986 )     (6,439 )     (6,966 )     (7,521 )     (8,074 )  
    Total Tangible Assets (non-GAAP)   $ 5,340,638     $ 5,470,936     $ 5,376,999     $ 5,087,872     $ 5,080,369    
                                     
    Tangible common equity / tangible assets (non-GAAP)     9.78   %   9.43   %   9.50   %   9.91   %   9.85   %
                                               

    The following table summarizes components of the tangible common equity to tangible assets ratio of the Bank at the dates indicated:

                                     
    TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS   March 31,    December 31,    September 30,      June 30,    March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024  
    Capital components:                                
    Total Equity (GAAP)   $ 715,605     $ 709,379     $ 704,585     $ 697,964     $ 694,543    
    Less: Preferred Stock     —       —       —       —       —    
    Total Common Equity     715,605       709,379       704,585       697,964       694,543    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (5,986 )     (6,439 )     (6,966 )     (7,521 )     (8,074 )  
    Total Tangible Common Equity (non-GAAP)   $ 541,988     $ 535,309     $ 529,988     $ 522,812     $ 518,838    
                                     
    Asset components:                                
    Total Assets (GAAP)   $ 5,512,160     $ 5,641,646     $ 5,548,576     $ 5,260,500     $ 5,254,044    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (5,986 )     (6,439 )     (6,966 )     (7,521 )     (8,074 )  
    Total Tangible Assets (non-GAAP)   $ 5,338,543     $ 5,467,576     $ 5,373,979     $ 5,085,348     $ 5,078,339    
                                     
    Tangible common equity / tangible assets (non-GAAP)     10.15   %   9.79   %   9.86   %   10.28   %   10.22   %
                                               

    The MIL Network –

  • MIL-OSI: OceanFirst Financial Corp. Announces First Quarter Financial Results

    Source: GlobeNewswire (MIL-OSI)

    RED BANK, N.J., April 24, 2025 (GLOBE NEWSWIRE) — OceanFirst Financial Corp. (NASDAQ:OCFC) (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), announced net income available to common stockholders of $20.5 million, or $0.35 per diluted share, for the quarter ended March 31, 2025, a decrease from $27.7 million, or $0.47 per diluted share, for the corresponding prior year period, and a decrease from $20.9 million, or $0.36 per diluted share, for the linked quarter. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information):

        For the Three Months Ended,
        March 31,   December 31,   March 31,
    Performance Ratios (Annualized):   2025   2024   2024
    Return on average assets   0.62 %   0.61 %   0.82 %
    Return on average stockholders’ equity   4.85     4.88     6.65  
    Return on average tangible stockholders’ equity (a)   7.05     7.12     9.61  
    Return on average tangible common equity (a)   7.40     7.47     10.09  
    Efficiency ratio   65.67     67.86     59.56  
    Net interest margin   2.90     2.69     2.81  

    (a) Return on average tangible stockholders’ equity and return on average tangible common equity (“ROTCE”) are non-GAAP (“generally accepted accounting principles”) financial measures. Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and “Non-GAAP Reconciliation” tables for reconciliation and additional information regarding non-GAAP financial measures.

    Core earnings1 for the quarter ended March 31, 2025 were $20.3 million, or $0.35 per diluted share, a decrease from $25.6 million, or $0.44 per diluted share, for the corresponding prior year period, and a decrease from $22.1 million, or $0.38 per diluted share, for the linked quarter.

    Core earnings PTPP1 for the quarter ended March 31, 2025 was $32.4 million, or $0.56 per diluted share, as compared to $36.2 million, or $0.62 per diluted share, for the corresponding prior year period, and $29.6 million, or $0.51 per diluted share, for the linked quarter. Selected performance metrics are as follows:

        For the Three Months Ended,
        March 31,   December 31,   March 31,
    Core Ratios1 (Annualized):     2025       2024       2024  
    Return on average assets     0.62 %     0.65 %     0.76 %
    Return on average tangible stockholders’ equity     7.00       7.51       8.91  
    Return on average tangible common equity     7.34       7.89       9.36  
    Efficiency ratio     65.81       67.74       61.05  
    Core diluted earnings per share   $ 0.35     $ 0.38     $ 0.44  
    Core PTPP diluted earnings per share     0.56       0.51       0.62  

    Key developments for the recent quarter are described below:

    • Margin Expansion: Net interest margin increased 21 basis points to 2.90%, from 2.69%, and net interest income increased by $3.3 million to $86.7 million driven by a decrease in total cost of deposits to 2.06% from 2.32% in the linked quarter.
    • Commercial Loans: Commercial and industrial loans increased $95.1 million, or 6.1% as compared to the linked quarter. Additionally, the total commercial loan pipeline increased 90% to $375.6 million from $197.5 million in the linked quarter.
    • Provision for Credit Losses: Provision for credit losses was $5.3 million reflecting a net loan reserve build of $5.2 million, primarily driven by elevated uncertainty around macroeconomic conditions. This resulted in an increase of five basis points in the allowance for loan credit losses to total loans to 0.78%. Criticized and classified loans decreased by 5% to $149.3 million compared to the linked quarter, providing strong evidence of stable credit performance for the Company’s loan portfolio.

    Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “We are pleased to present our current quarter results, which reflect a meaningful expansion of net interest income and net interest margin, continued strong asset quality metrics, and further capital accretion, including share repurchases.” Mr. Maher added, “Additionally, we understand the increased market uncertainty and volatility, but we have confidence that the Company is well-positioned. Finally, we are pleased that the first quarter talent recruiting season has resulted in a robust addition of commercial banking talent. Reflecting the strength of the commercial banking platform we have built, 36 highly experienced commercial bankers have joined OceanFirst this year.”

    The Company’s Board of Directors declared its 113th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on May 16, 2025 to common stockholders of record on May 5, 2025. The Company’s Board of Directors also previously declared a quarterly cash dividend on preferred stock of $0.4375 per depositary share, representing 1/40th interest in the Series A Preferred Stock. This dividend will be paid on May 15, 2025 to preferred stockholders of record on April 30, 2025. The Company has notified the preferred stockholders that it intends to redeem the Series A Preferred Stock in full on May 15, 2025.

    1 Core earnings and core earnings before income taxes and provision for credit losses (“PTPP” or “Pre-Tax-Pre-Provision”), and ratios derived therefrom, are non-GAAP financial measures. For the periods presented, core earnings exclude merger related expenses, net (gain) loss on equity investments, net gain on sale of trust business, the opening provision for credit losses in connection with the acquisition of Spring Garden Capital Group, LLC (“Spring Garden”), the Federal Deposit Insurance Corporation (“FDIC”) special assessment, and the income tax effect of these items, (collectively referred to as “non-core” operations). PTPP excludes the aforementioned pre-tax “non-core” items along with income tax expense (benefit) and provision for credit losses (exclusive of the Spring Garden opening provision). Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.

    Results of Operations

    The current quarter was impacted by a decrease in average interest earning assets and liabilities, benefited from funding cost repricing efforts, and included a sale of non-performing residential and consumer loans of $5.1 million, which had related charge-offs of $720,000. Additionally, the current quarter included non-recurring benefits of $842,000 in other income and $1.3 million in normal incentive related adjustments.

    Net Interest Income and Margin

    Three months ended March 31, 2025 vs. March 31, 2024

    Net interest income increased to $86.7 million, from $86.2 million, primarily reflecting the net impact of the decreasing interest rate environment. Net interest margin increased to 2.90%, from 2.81%, which included the impact of purchase accounting accretion and prepayment fees of 0.03% and 0.04%, respectively. Net interest margin increased primarily due to the decrease in cost of funds outpacing the decrease in yield on average interest-earning assets.

    Average interest-earning assets decreased by $238.4 million primarily due to a decrease in commercial loans and securities. The average yield for interest-earning assets decreased to 5.13%, from 5.26%.

    The cost of average interest-bearing liabilities decreased to 2.78%, from 3.03%, primarily due to lower cost of deposits and, to a lesser extent, Federal Home Loan Bank (“FHLB”) advances. The total cost of deposits decreased 25 basis points to 2.06%, from 2.31%. Average interest-bearing liabilities decreased by $226.1 million, primarily due to decreases in savings, time deposits and other borrowings, largely offset by an increase in FHLB advances.

    Three months ended March 31, 2025 vs. December 31, 2024

    Net interest income increased by $3.3 million and net interest margin increased to 2.90%, from 2.69%, primarily reflecting the impact of deposit repricing. Net interest income included the impact of purchase accounting accretion and prepayment fees of 0.03% in the current quarter and none in the prior quarter.

    Average interest-earning assets decreased by $219.5 million, primarily due to decreases in securities and interest-earning cash deposits. The yield on average interest-earning assets decreased to 5.13%, from 5.15%.

    Average interest-bearing liabilities decreased by $211.3 million, primarily due to decreases in deposits and other borrowings, partly offset by an increase in FHLB advances. The total cost of average interest-bearing liabilities decreased to 2.78%, from 3.04%, primarily due to lower cost of deposits. The total cost of deposits decreased to 2.06%, from 2.32%.

    Provision for Credit Losses

    Provision for credit losses for the quarter ended March 31, 2025 was $5.3 million, as compared to $591,000 for the corresponding prior year period and $3.5 million for the linked quarter. The linked quarter included a $1.4 million initial provision for credit losses related to the acquisition of Spring Garden. The current quarter provision was primarily driven by elevated uncertainty around macroeconomic conditions.

    Net loan charge-offs were $636,000 for the quarter ended March 31, 2025, as compared to net loan charge-offs of $349,000 for the corresponding prior year period and net loan recoveries of $158,000 in the linked quarter. The current quarter includes charge-offs of $720,000 related to the sale of $5.1 million non-performing residential and consumer loans. Refer to “Results of Operations” section for further discussion.

    Non-interest Income

    Three months ended March 31, 2025 vs. March 31, 2024

    Other income decreased to $11.3 million, as compared to $12.3 million. Other income was favorably impacted by non-core operations of $205,000 related to net gains on equity investments in the current quarter. The prior year other income was favorably impacted by non-core operations of $3.1 million related to net gains on equity investments and a gain on sale of a portion of the Company’s trust business.

    Excluding non-core operations, other income increased by $1.8 million. The primary drivers were increases related to net gain on sale of loans of $501,000, commercial loan swap income of $482,000, and an increase in non-recurring other income of $842,000 as noted above.

    Three months ended March 31, 2025 vs. December 31, 2024

    Excluding non-core operations, other income decreased by $1.2 million from $12.2 million in the linked quarter. The primary drivers were decreases in fees and service charges of $1.5 million, primarily due to lower title fee income as a result of seasonality, and income from bank owned life insurance of $686,000, related to non-recurring death benefits of $768,000 in the linked quarter. This was partly offset by increases in commercial loan swap income of $534,000 and non-recurring other income of $842,000 noted above.

    Non-interest Expense

    Three months ended March 31, 2025 vs. March 31, 2024

    Operating expenses increased to $64.3 million, as compared to $58.7 million. Operating expenses in the prior year were adversely impacted by non-core operations of $418,000 from an FDIC special assessment.

    Excluding non-core operations, operating expenses increased by $6.0 million. The primary driver was an increase in compensation and benefits of $4.0 million, mostly due to acquisitions at the end of the prior year and annual merit increases. Additional drivers were increases in other operating expenses of $1.0 million, due to additional loan servicing expense, and increases in data processing expense of $691,000, partly due to acquisitions at the end of the prior year.

    Three months ended March 31, 2025 vs. December 31, 2024

    Operating expenses in the linked quarter were $64.8 million and were adversely impacted by non-core items of $110,000 from merger-related expenses. Excluding non-core operations, operating expenses decreased by $445,000. This included a decrease in normal incentive related adjustments of $1.3 million, offset by annual merit increases during the year. Additionally, there were decreases in other operating expense of $840,000, mostly related to lower title costs and marketing of $507,000. This was partly offset by an increase in federal deposit insurance and regulatory assessments of $466,000.

    Income Tax Expense

    The provision for income taxes was $6.8 million for the quarter ended March 31, 2025, as compared to $10.6 million for the same prior year period and $5.1 million for the linked quarter. The effective tax rate was 24.1% for the quarter ended March 31, 2025, as compared to 27.1% for the same prior year period and 18.7% for the linked quarter. The prior year’s effective tax rate was negatively impacted by 3.0% due to a one-time write-off of a deferred tax asset of $1.2 million. The linked quarter’s effective tax rate was positively impacted by utilization of higher tax credits.

    Financial Condition

    March 31, 2025 vs. December 31, 2024

    Total assets decreased by $112.0 million to $13.31 billion, from $13.42 billion, primarily due to decreases in total debt securities. Debt securities available-for-sale decreased by $81.3 million to $746.2 million, from $827.5 million, primarily due to principal reductions, maturities and calls. Debt securities held-to-maturity decreased by $40.4 million to $1.01 billion, from $1.05 billion, primarily due to principal repayments. Loans held-for-sale decreased by $11.5 million to $9.7 million from $21.2 million. Total loans increased by $7.2 million to $10.13 billion, from $10.12 billion, while the loan pipeline increased by $197.8 million to $504.4 million, from $306.7 million. Other assets decreased by $14.9 million to $170.8 million, from $185.7 million, primarily due to a decrease in market values associated with customer interest rate swap programs.

    Total liabilities decreased by $118.3 million to $11.60 billion, from $11.72 billion primarily related to a funding mix-shift. Deposits increased by $110.7 million to $10.18 billion, from $10.07 billion, primarily due to increases in non-interest bearing, savings and time deposits. Time deposits increased to $2.12 billion, from $2.08 billion, representing 20.8% and 20.7% of total deposits, respectively. Time deposits included an increase in brokered time deposits of $295.8 million, offset by a decrease in retail time deposits of $251.1 million. The loan-to-deposit ratio was 99.5%, as compared to 100.5%. FHLB advances decreased by $181.6 million to $891.0 million, from $1.07 billion partly driven by a shift to slightly favorably priced brokered deposits.

    Other liabilities decreased by $58.0 million to $240.4 million, from $298.4 million, primarily due to a decrease in the market values of derivatives associated with customer interest rate swaps and related collateral received from counterparties.

    Capital levels remain strong and in excess of “well-capitalized” regulatory levels at March 31, 2025, including the Company’s estimated common equity tier one capital ratio which remained at 11.2%.

    Total stockholders’ equity increased to $1.71 billion, as compared to $1.70 billion, primarily reflecting net income, partially offset by capital returns comprising of dividends and share repurchases. During the quarter ended March 31, 2025, the Company repurchased 398,395 shares totaling $6.9 million representing a weighted average cost of $17.20. The Company had 1,228,863 shares available for repurchase under the authorized repurchase program. Additionally, accumulated other comprehensive loss decreased by $2.6 million primarily due to increases in fair market value of available-for-sale debt securities, net of tax.

    The Company’s tangible common equity2 increased by $7.3 million to $1.12 billion. The Company’s stockholders’ equity to assets ratio was 12.84% at March 31, 2025, and tangible common equity to tangible assets ratio increased by 14 basis points during the quarter to 8.76%, primarily due to the drivers described above.

    Book value per common share increased to $29.27, as compared to $29.08. Tangible book value per common share2 increased to $19.16, as compared to $18.98.

    2 Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures and exclude the impact of intangible assets, goodwill, and preferred equity from both stockholders’ equity and total assets. Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.

    Asset Quality

    March 31, 2025 vs. December 31, 2024

    The Company’s non-performing loans increased to $37.0 million, from $35.5 million, and represented 0.37% and 0.35% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 213.14%, as compared to 207.19%. The level of 30 to 89 days delinquent loans increased to $46.2 million, from $36.6 million, primarily related to commercial loans. Criticized and classified assets, including other real estate owned, decreased to $151.2 million, from $159.9 million. The Company’s allowance for loan credit losses was 0.78% of total loans, as compared to 0.73%. Refer to “Provision for Credit Losses” section for further discussion.

    The Company’s asset quality, excluding purchased with credit deterioration (“PCD”) loans, was as follows. Non-performing loans increased to $29.2 million, from $27.6 million. The allowance for loan credit losses as a percentage of total non-performing loans was 269.43%, as compared to 266.73%. The level of 30 to 89 days delinquent loans, excluding non-performing loans, increased to $35.8 million, from $33.6 million.

    Explanation of Non-GAAP Financial Measures

    Reported amounts are presented in accordance with GAAP. The Company’s management believes that the supplemental non-GAAP information, which consists of reported net income excluding non-core operations and in some instances excluding income taxes and provision for credit losses, and reporting equity and asset amounts excluding intangible assets, goodwill or preferred stock, all of which can vary from period to period, provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies. Refer to the Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of these items.

    Annual Meeting

    The Company previously announced that its Annual Meeting of Stockholders will be held on Monday, May 19, 2025 at 8:00 a.m. Eastern Time. The record date for stockholders to vote at the Annual Meeting is Tuesday, March 25, 2025. Voting before the meeting is encouraged, even for stockholders planning to participate in the virtual webcast. Votes may be submitted by telephone or online according to the instructions on the proxy card or by mail. A link to the live webcast is available by visiting oceanfirst.com – Investor Relations. Access will begin at 7:45 a.m. Eastern Time to allow time for stockholders to log-in with the control number provided on the proxy card prior to the 8:00 a.m. Eastern Time scheduled start. Eligible stockholders may also vote during the live meeting online at www.virtualshareholdermeeting.com/OCFC2025 by entering the 16-digit control number included on the proxy card or notice. As a reminder, participants of the meeting are not required to vote. Additional information regarding virtual access to the meeting will be distributed prior to the meeting.

    Conference Call

    As previously announced, the Company will host an earnings conference call on Friday, April 25, 2025 at 11:00 a.m. Eastern Time. The direct dial number for the call is (833) 470-1428, using the access code 934356. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (855) 762-8306, from one hour after the end of the call until May 2, 2025. The conference call, as well as the replay, are also available (listen-only) by internet webcast at www.oceanfirst.com in the Investor Relations section.

    OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.3 billion regional bank providing financial services throughout New Jersey and in the major metropolitan areas between Massachusetts and Virginia. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com. 

    Forward-Looking Statements

    In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project”, “will”, “should”, “may”, “view”, “opportunity”, “potential”, or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, inflation, general economic conditions, including potential recessionary conditions, levels of unemployment in the Company’s lending area, real estate market values in the Company’s lending area, potential goodwill impairment, natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the imposition of tariffs or other domestic or international governmental policies, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, the availability of low-cost funding, changes in liquidity, including the size and composition of the Company’s deposit portfolio, and the percentage of uninsured deposits in the portfolio, changes in capital management and balance sheet strategies and the ability to successfully implement such strategies, competition, demand for financial services in the Company’s market area, changes in consumer spending, borrowing and saving habits, changes in accounting principles, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees, the impact of pandemics on our operations and financial results and those of our customers and the Bank’s ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, under Item 1A – Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

     
    OceanFirst Financial Corp.
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (dollars in thousands)
     
        March 31,   December 31,   March 31,
          2025       2024       2024  
        (Unaudited)       (Unaudited)
    Assets            
    Cash and due from banks   $ 163,721     $ 123,615     $ 130,422  
    Debt securities available-for-sale, at estimated fair value     746,168       827,500       744,944  
    Debt securities held-to-maturity, net of allowance for securities credit losses of $898 at March 31, 2025, $967 at December 31, 2024, and $1,058 at March 31, 2024 (estimated fair value of $926,075 at March 31, 2025, $952,917 at December 31, 2024, and $1,029,965 at March 31, 2024)     1,005,476       1,045,875       1,128,666  
    Equity investments     87,365       84,104       103,201  
    Restricted equity investments, at cost     102,172       108,634       85,689  
    Loans receivable, net of allowance for loan credit losses of $78,798 at March 31, 2025, $73,607 at December 31, 2024, and $67,173 at March 31, 2024     10,058,072       10,055,429       10,068,209  
    Loans held-for-sale     9,698       21,211       4,702  
    Interest and dividends receivable     44,843       45,914       52,502  
    Other real estate owned     1,917       1,811       —  
    Premises and equipment, net     114,588       115,256       119,211  
    Bank owned life insurance     269,398       270,208       266,615  
    Assets held for sale     —       —       28  
    Goodwill     523,308       523,308       506,146  
    Intangibles     11,740       12,680       8,669  
    Other assets     170,812       185,702       199,974  
    Total assets   $ 13,309,278     $ 13,421,247     $ 13,418,978  
    Liabilities and Stockholders’ Equity            
    Deposits   $ 10,177,023     $ 10,066,342     $ 10,236,851  
    Federal Home Loan Bank advances     891,021       1,072,611       658,436  
    Securities sold under agreements to repurchase with customers     65,132       60,567       66,798  
    Other borrowings     197,808       197,546       425,722  
    Advances by borrowers for taxes and insurance     28,789       23,031       28,187  
    Other liabilities     240,388       298,393       337,147  
    Total liabilities     11,600,161       11,718,490       11,753,141  
    Stockholders’ equity:            
    OceanFirst Financial Corp. stockholders’ equity     1,708,322       1,701,650       1,665,112  
    Non-controlling interest     795       1,107       725  
    Total stockholders’ equity     1,709,117       1,702,757       1,665,837  
    Total liabilities and stockholders’ equity   $ 13,309,278     $ 13,421,247     $ 13,418,978  
    OceanFirst Financial Corp.
    CONSOLIDATED STATEMENTS OF INCOME
    (in thousands, except per share amounts)
     
        For the Three Months Ended,
        March 31,   December 31,   March 31,
          2025       2024       2024  
        |———————- (Unaudited) ———————-|
    Interest income:            
    Loans   $ 133,019     $ 135,438     $ 137,121  
    Debt securities     17,270       19,400       19,861  
    Equity investments and other     3,414       4,782       4,620  
    Total interest income     153,703       159,620       161,602  
    Interest expense:            
    Deposits     51,046       59,889       59,855  
    Borrowed funds     16,005       16,402       15,523  
    Total interest expense     67,051       76,291       75,378  
    Net interest income     86,652       83,329       86,224  
    Provision for credit losses     5,340       3,467       591  
    Net interest income after provision for credit losses     81,312       79,862       85,633  
    Other income:            
    Bankcard services revenue     1,463       1,595       1,416  
    Trust and asset management revenue     406       416       526  
    Fees and service charges     4,712       6,207       4,473  
    Net gain on sales of loans     858       1,076       357  
    Net gain (loss) on equity investments     205       (5 )     1,923  
    Net loss from other real estate operations     (16 )     (20 )     —  
    Income from bank owned life insurance     1,852       2,538       1,862  
    Commercial loan swap income     620       86       138  
    Other     1,153       339       1,591  
    Total other income     11,253       12,232       12,286  
    Operating expenses:            
    Compensation and employee benefits     36,740       36,602       32,759  
    Occupancy     5,497       5,280       5,199  
    Equipment     921       1,026       1,130  
    Marketing     1,108       1,615       990  
    Federal deposit insurance and regulatory assessments     2,983       2,517       3,135  
    Data processing     6,647       6,366       5,956  
    Check card processing     1,170       1,134       1,050  
    Professional fees     2,425       2,620       2,732  
    Amortization of intangibles     940       876       844  
    Merger related expenses     —       110       —  
    Other operating expense     5,863       6,703       4,877  
    Total operating expenses     64,294       64,849       58,672  
    Income before provision for income taxes     28,271       27,245       39,247  
    Provision for income taxes     6,808       5,083       10,637  
    Net income     21,463       22,162       28,610  
    Net (loss) income attributable to non-controlling interest     (46 )     253       (57 )
    Net income attributable to OceanFirst Financial Corp.     21,509       21,909       28,667  
    Dividends on preferred shares     1,004       1,004       1,004  
    Net income available to common stockholders   $ 20,505     $ 20,905     $ 27,663  
    Basic earnings per share   $ 0.35     $ 0.36     $ 0.47  
    Diluted earnings per share   $ 0.35     $ 0.36     $ 0.47  
    Average basic shares outstanding     58,102       58,026       58,789  
    Average diluted shares outstanding     58,111       58,055       58,791  
    OceanFirst Financial Corp.
    SELECTEDLOANAND DEPOSIT DATA
    (dollars in thousands)
     
    LOANS RECEIVABLE   At
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Commercial:                    
    Commercial real estate – investor   $ 5,200,137     $ 5,287,683     $ 5,273,159     $ 5,324,994     $ 5,322,755  
    Commercial and industrial:                    
    Commercial and industrial – real estate (1)     896,647       902,219       841,930       857,710       914,582  
    Commercial and industrial – non-real estate (1)     748,575       647,945       660,879       616,400       677,176  
    Total commercial and industrial     1,645,222       1,550,164       1,502,809       1,474,110       1,591,758  
        Total commercial     6,845,359       6,837,847       6,775,968       6,799,104       6,914,513  
    Consumer:                    
    Residential real estate     3,053,318       3,049,763       3,003,213       2,977,698       2,965,276  
    Home equity loans and lines and other consumer (“other consumer”)     226,633       230,462       242,975       242,526       245,859  
        Total consumer     3,279,951       3,280,225       3,246,188       3,220,224       3,211,135  
        Total loans     10,125,310       10,118,072       10,022,156       10,019,328       10,125,648  
    Deferred origination costs (fees), net     11,560       10,964       10,508       10,628       9,734  
    Allowance for loan credit losses     (78,798 )     (73,607 )     (69,066 )     (68,839 )     (67,173 )
        Loans receivable, net   $ 10,058,072     $ 10,055,429     $ 9,963,598     $ 9,961,117     $ 10,068,209  
    Mortgage loans serviced for others   $ 222,963     $ 191,279     $ 142,394     $ 104,136     $ 89,555  
      At March 31, 2025 Average Yield                    
    Loan pipeline (2):                      
    Commercial 7.37 %   $ 375,622     $ 197,491     $ 199,818     $ 166,206     $ 66,167  
    Residential real estate 6.41       116,121       97,385       137,978       80,330       57,340  
    Other consumer 8.51       12,681       11,783       13,788       12,586       13,030  
    Total 7.18 %   $ 504,424     $ 306,659     $ 351,584     $ 259,122     $ 136,537  
      For the Three Months Ended
      March 31,   December 31,   September 30,   June 30,   March 31,
      2025     2024       2024       2024       2024  
      Average Yield                    
    Loan originations:                      
    Commercial (3) 7.61 %   $ 233,968     $ 268,613     $ 245,886     $ 56,053     $ 123,010  
    Residential real estate 6.53       167,162       235,370       169,273       121,388       78,270  
    Other consumer 8.49       15,825       11,204       15,760       16,970       11,405  
    Total 7.21 %   $ 416,955     $ 515,187     $ 430,919     $ 194,411     $ 212,685  
    Loans sold     $ 104,991    (4) $ 127,508     $ 65,296     $ 45,045     $ 29,965  
    (1) During the quarter ended March 31, 2025, the Company retrospectively reclassified loans which were previously referred to as ‘commercial real estate – owner occupied’ and ‘commercial and industrial’ to ‘commercial and industrial – real estate’ and ‘commercial and industrial – non-real estate’, respectively. Collectively, these loans are referred to as ‘commercial and industrial’.
    (2) Loan pipeline includes loans approved but not funded.
    (3) Excludes commercial loan pool purchases of $24.3 million and $76.1 million for the three months ended March 31, 2025 and December 31, 2024, respectively.
    (4) Excludes sale of non-performing residential and consumer loans of $5.1 million for the three months ended March 31, 2025.

     

    DEPOSITS   At
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Type of Account                    
    Non-interest-bearing   $ 1,660,738     $ 1,617,182     $ 1,638,447     $ 1,632,521     $ 1,639,828  
    Interest-bearing checking     4,006,653       4,000,553       3,896,348       3,667,837       3,865,699  
    Money market     1,337,570       1,301,197       1,288,555       1,210,312       1,150,979  
    Savings     1,052,504       1,066,438       1,071,946       1,115,688       1,260,309  
    Time deposits (1)     2,119,558       2,080,972       2,220,871       2,367,659       2,320,036  
    Total deposits   $ 10,177,023     $ 10,066,342     $ 10,116,167     $ 9,994,017     $ 10,236,851  
    (1) Includes brokered time deposits of $370.5 million, $74.7 million, $201.0 million, $401.6 million, and $543.4 million at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.

     

    OceanFirst Financial Corp.
    ASSET QUALITY
    (dollars in thousands)
     
        March 31,   December 31,   September 30,   June 30,   March 31,
    ASSET QUALITY(1)     2025       2024       2024       2024       2024  
    Non-performing loans:                    
    Commercial real estate – investor   $ 23,595     $ 17,000     $ 12,478     $ 19,761     $ 21,507  
    Commercial and industrial:                    
    Commercial and industrial – real estate     4,690       4,787       4,368       4,081       3,355  
    Commercial and industrial – non-real estate     22       32       122       434       567  
    Total commercial and industrial     4,712       4,819       4,490       4,515       3,922  
    Residential real estate     5,709       10,644       9,108       7,213       7,181  
    Other consumer     2,954       3,064       2,063       1,933       2,401  
    Total non-performing loans(1)   $ 36,970     $ 35,527     $ 28,139     $ 33,422     $ 35,011  
    Other real estate owned     1,917       1,811       —       —       —  
    Total non-performing assets   $ 38,887     $ 37,338     $ 28,139     $ 33,422     $ 35,011  
    Delinquent loans 30 to 89 days   $ 46,246     $ 36,550     $ 15,458     $ 9,655     $ 17,534  
    Modifications to borrowers experiencing financial difficulty(2)                    
    Non-performing (included in total non-performing loans above)   $ 8,307     $ 3,232     $ 3,043     $ 3,210     $ 3,467  
    Performing     27,592       27,631       20,652       20,529       8,579  
    Total modifications to borrowers experiencing financial difficulty(2)   $ 35,899     $ 30,863     $ 23,695     $ 23,739     $ 12,046  
    Allowance for loan credit losses   $ 78,798     $ 73,607     $ 69,066     $ 68,839     $ 67,173  
    Allowance for loan credit losses as a percent of total loans receivable(3)     0.78 %     0.73 %     0.69 %     0.69 %     0.66 %
    Allowance for loan credit losses as a percent of total non-performing loans(3)     213.14       207.19       245.45       205.97       191.86  
    Non-performing loans as a percent of total loans receivable     0.37       0.35       0.28       0.33       0.35  
    Non-performing assets as a percent of total assets     0.29       0.28       0.21       0.25       0.26  
    Supplemental PCD and non-performing loans                    
    PCD loans, net of allowance for loan credit losses   $ 21,737     $ 22,006     $ 15,323     $ 16,058     $ 16,700  
    Non-performing PCD loans     7,724       7,931       2,887       2,841       3,525  
    Delinquent PCD and non-performing loans 30 to 89 days     10,489       2,997       1,279       1,188       2,088  
    PCD modifications to borrowers experiencing financial difficulty(2)     22       23       24       26       25  
    Asset quality, excluding PCD loans(4)                    
    Non-performing loans(1)     29,246       27,596       25,252       30,581       31,486  
    Non-performing assets     31,163       29,407       25,252       30,581       31,486  
    Delinquent loans 30 to 89 days (excludes non-performing loans)     35,757       33,553       14,179       8,467       15,446  
    Modifications to borrowers experiencing financial difficulty(2)     35,877       30,840       23,671       23,713       12,021  
    Allowance for loan credit losses as a percent of total non-performing loans(3)     269.43 %     266.73 %     273.51 %     225.10 %     213.34 %
    Non-performing loans as a percent of total loans receivable     0.29       0.27       0.25       0.31       0.31  
    Non-performing assets as a percent of total assets     0.23       0.22       0.19       0.23       0.23  
    (1) The quarter ended March 31, 2025 included the sale of non-performing residential and consumer loans of $5.1 million and the quarter ended September 30, 2024 included the resolution of a single commercial relationship exposure of $7.2 million.
    (2) Balances have been revised to represent only modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023.
    (3) Loans acquired from acquisitions were recorded at fair value. The net unamortized credit and PCD marks on these loans, not reflected in the allowance for loan credit losses, was $5.6 million, $6.0 million, $5.7 million, $6.1 million and $7.0 million at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.
    (4) All balances and ratios exclude PCD loans.
    NET LOAN (CHARGE-OFFS) RECOVERIES   For the Three Months Ended
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Net loan (charge-offs) recoveries:                    
    Loan charge-offs   $ (798 )   $ (55 )   $ (124 )   $ (1,600 )   $ (441 )
    Recoveries on loans     162       213       212       148       92  
    Net loan (charge-offs) recoveries   $ (636 )   $ 158     $ 88     $ (1,452 )   $ (349 )
    Net loan (charge-offs) recoveries to average total loans (annualized)     0.03 %     NM *     NM *     0.06 %     0.01 %
    Net loan (charge-offs) recoveries detail:                    
    Commercial   $ 25     $ 92     $ 129     $ (1,576 ) (1) $ (35 )
    Residential real estate     (720 ) (2)   (17 )     (6 )     87       66  
    Other consumer     59       83       (35 )     37       (380 )
    Net loan (charge-offs) recoveries   $ (636 )   $ 158     $ 88     $ (1,452 )   $ (349 )
    (1) The three months ended June 30, 2024 included a charge-off related to a single commercial real estate relationship of $1.6 million.
    (2) The three months ended March 31, 2025 included charge-offs of $720,000 related to the sale of non-performing residential loans.
    * Not meaningful as amounts are net loan recoveries.

     

    OceanFirst Financial Corp.
    ANALYSIS OF NET INTEREST INCOME
     
        For the Three Months Ended
        March 31, 2025   December 31, 2024   March 31, 2024
    (dollars in thousands)   Average
    Balance    		   Interest   Average
    Yield/
    Cost (1)    		   Average
    Balance    		   Interest   Average
    Yield/
    Cost (1)    		   Average
    Balance    		   Interest   Average
    Yield/
    Cost (1)
    Assets:                                    
    Interest-earning assets:                                    
    Interest-earning deposits and short-term investments   $ 95,439     $ 983   4.18 %   $ 195,830     $ 2,415   4.91 %   $ 163,192     $ 2,226   5.49 %
    Securities (2)     2,003,206       19,701   3.99       2,116,911       21,767   4.09       2,098,421       22,255   4.27  
    Loans receivable, net (3)                                    
    Commercial     6,781,005       98,260   5.88       6,794,158       101,003   5.91       6,925,048       104,421   6.06  
    Residential real estate     3,065,679       31,270   4.08       3,049,092       30,455   4.00       2,974,468       28,596   3.85  
    Other consumer     228,553       3,489   6.19       236,161       3,980   6.70       248,396       4,104   6.65  
    Allowance for loan credit losses, net of deferred loan costs and fees     (61,854 )     —   —       (60,669 )     —   —       (59,141 )     —   —  
    Loans receivable, net     10,013,383       133,019   5.37       10,018,742       135,438   5.38       10,088,771       137,121   5.46  
    Total interest-earning assets     12,112,028       153,703   5.13       12,331,483       159,620   5.15       12,350,384       161,602   5.26  
    Non-interest-earning assets     1,199,865               1,213,569               1,206,336          
    Total assets   $ 13,311,893             $ 13,545,052             $ 13,556,720          
    Liabilities and Stockholders’ Equity:                                    
    Interest-bearing liabilities:                                    
    Interest-bearing checking   $ 4,135,952       21,433   2.10 %   $ 4,050,428       22,750   2.23 %   $ 3,925,965       20,795   2.13 %
    Money market     1,322,003       9,353   2.87       1,325,119       10,841   3.25       1,092,003       9,172   3.38  
    Savings     1,058,015       1,785   0.68       1,070,816       2,138   0.79       1,355,718       4,462   1.32  
    Time deposits     1,916,109       18,475   3.91       2,212,750       24,160   4.34       2,414,063       25,426   4.24  
    Total     8,432,079       51,046   2.46       8,659,113       59,889   2.75       8,787,749       59,855   2.74  
    FHLB Advances     996,293       11,359   4.62       854,748       10,030   4.67       644,818       7,771   4.85  
    Securities sold under agreements to repurchase     64,314       428   2.70       76,856       513   2.66       68,500       411   2.41  
    Other borrowings     283,150       4,218   6.04       396,412       5,859   5.88       500,901       7,341   5.89  
    Total borrowings     1,343,757       16,005   4.83       1,328,016       16,402   4.91       1,214,219       15,523   5.14  
    Total interest-bearing liabilities     9,775,836       67,051   2.78       9,987,129       76,291   3.04       10,001,968       75,378   3.03  
    Non-interest-bearing deposits     1,597,972               1,627,376               1,634,583          
    Non-interest-bearing liabilities     222,951               227,221               247,129          
    Total liabilities     11,596,759               11,841,726               11,883,680          
    Stockholders’ equity     1,715,134               1,703,326               1,673,040          
    Total liabilities and equity   $ 13,311,893             $ 13,545,052             $ 13,556,720          
    Net interest income       $ 86,652           $ 83,329           $ 86,224    
    Net interest rate spread (4)           2.35 %           2.11 %           2.23 %
    Net interest margin (5)           2.90 %           2.69 %           2.81 %
    Total cost of deposits (including non-interest-bearing deposits)           2.06 %           2.32 %           2.31 %
    (1) Average yields and costs are annualized.
    (2) Amounts represent debt and equity securities, including FHLB and Federal Reserve Bank stock, and are recorded at average amortized cost, net of allowance for securities credit losses.
    (3) Amount is net of deferred loan costs and fees, undisbursed loan funds, discounts and premiums and allowance for loan credit losses, and includes loans held for sale and non-performing loans.
    (4) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (5) Net interest margin represents net interest income divided by average interest-earning assets.

     

    OceanFirst Financial Corp.
    SELECTED QUARTERLY FINANCIAL DATA
    (in thousands, except per share amounts)
     
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Selected Financial Condition Data:                    
    Total assets   $ 13,309,278     $ 13,421,247     $ 13,488,483     $ 13,321,755     $ 13,418,978  
    Debt securities available-for-sale, at estimated fair value     746,168       827,500       911,753       721,484       744,944  
    Debt securities held-to-maturity, net of allowance for securities credit losses     1,005,476       1,045,875       1,075,131       1,105,843       1,128,666  
    Equity investments     87,365       84,104       95,688       104,132       103,201  
    Restricted equity investments, at cost     102,172       108,634       98,545       92,679       85,689  
    Loans receivable, net of allowance for loan credit losses     10,058,072       10,055,429       9,963,598       9,961,117       10,068,209  
    Deposits     10,177,023       10,066,342       10,116,167       9,994,017       10,236,851  
    Federal Home Loan Bank advances     891,021       1,072,611       891,860       789,337       658,436  
    Securities sold under agreements to repurchase and other borrowings     262,940       258,113       501,090       504,490       492,520  
    Total stockholders’ equity     1,709,117       1,702,757       1,694,508       1,676,669       1,665,837  
        For the Three Months Ended,
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Selected Operating Data:                    
    Interest income   $ 153,703     $ 159,620     $ 161,525     $ 159,426     $ 161,602  
    Interest expense     67,051       76,291       79,306       77,163       75,378  
    Net interest income     86,652       83,329       82,219       82,263       86,224  
    Provision for credit losses (excluding Spring Garden)     5,340       2,041       517       3,114       591  
    Spring Garden opening provision for credit losses     —       1,426       —       —       —  
    Net interest income after provision for credit losses     81,312       79,862       81,702       79,149       85,633  
    Other income (excluding equity investments and sale of trust)     11,048       12,237       11,826       10,098       9,201  
    Net gain (loss) on equity investments     205       (5 )     1,420       887       1,923  
    Net gain on sale of trust business     —       —       1,438       —       1,162  
    Operating expenses (excluding FDIC special assessment and merger related expenses)     64,294       64,739       62,067       58,620       58,254  
    FDIC special assessment     —       —       —       —       418  
    Merger related expenses     —       110       1,669       —       —  
    Income before provision for income taxes     28,271       27,245       32,650       31,514       39,247  
    Provision for income taxes     6,808       5,083       7,464       7,082       10,637  
    Net income     21,463       22,162       25,186       24,432       28,610  
    Net (loss) income attributable to non-controlling interest     (46 )     253       70       59       (57 )
    Net income attributable to OceanFirst Financial Corp.   $ 21,509     $ 21,909     $ 25,116     $ 24,373     $ 28,667  
    Net income available to common stockholders   $ 20,505     $ 20,905     $ 24,112     $ 23,369     $ 27,663  
    Diluted earnings per share   $ 0.35     $ 0.36     $ 0.42     $ 0.40     $ 0.47  
    Net accretion/amortization of purchase accounting adjustments included in net interest income   $ 219     $ 20     $ 741     $ 1,086     $ 921  
        At or For the Three Months Ended
        March 31,   December 31,   September 30,   June 30,   March 31,
        2025   2024   2024   2024   2024
    Selected Financial Ratios and Other Data (1) (2):                    
    Performance Ratios (Annualized):                    
    Return on average assets (3)   0.62 %   0.61 %   0.71 %   0.70 %   0.82 %
    Return on average tangible assets (3) (4)   0.65     0.64     0.74     0.73     0.85  
    Return on average stockholders’ equity (3)   4.85     4.88     5.68     5.61     6.65  
    Return on average tangible stockholders’ equity (3) (4)   7.05     7.12     8.16     8.10     9.61  
    Return on average tangible common equity (3) (4)   7.40     7.47     8.57     8.51     10.09  
    Stockholders’ equity to total assets   12.84     12.69     12.56     12.59     12.41  
    Tangible stockholders’ equity to tangible assets (4)   9.19     9.06     9.10     9.08     8.92  
    Tangible common equity to tangible assets (4)   8.76     8.62     8.68     8.64     8.49  
    Net interest rate spread   2.35     2.11     2.06     2.11     2.23  
    Net interest margin   2.90     2.69     2.67     2.71     2.81  
    Operating expenses to average assets   1.96     1.90     1.89     1.75     1.74  
    Efficiency ratio (5)   65.67     67.86     65.77     62.86     59.56  
    Loan-to-deposit ratio   99.50     100.50     99.10     100.30     98.90  
        At or For the Three Months Ended
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Trust and Asset Management:                    
    Wealth assets under administration and management (“AUA/M”)   $ 149,106     $ 147,956     $ 152,797     $ 150,519     $ 236,891  
    Nest Egg AUA/M     453,803       431,434       430,413       403,647       407,478  
    Total AUA/M     602,909       579,390       583,210       554,166       644,369  
    Per Share Data:                    
    Cash dividends per common share   $ 0.20     $ 0.20     $ 0.20     $ 0.20     $ 0.20  
    Book value per common share at end of period     29.27       29.08       29.02       28.67       28.32  
    Tangible book value per common share at end of period (4)     19.16       18.98       19.28       18.93       18.63  
    Common shares outstanding at end of period     58,383,525       58,554,871       58,397,094       58,481,418       58,812,498  
    Preferred shares outstanding at end of period     57,370       57,370       57,370       57,370       57,370  
    Number of full-service customer facilities:     39       39       39       39       39  
    Quarterly Average Balances                    
    Total securities   $ 2,003,206     $ 2,116,911     $ 2,063,633     $ 2,058,711     $ 2,098,421  
    Loans receivable, net     10,013,383       10,018,742       9,958,794       10,012,491       10,088,771  
    Total interest-earning assets     12,112,028       12,331,483       12,232,672       12,203,776       12,350,384  
    Total goodwill and intangibles     535,657       534,942       513,731       514,535       515,356  
    Total assets     13,311,893       13,545,052       13,438,696       13,441,218       13,556,720  
    Time deposits     1,916,109       2,212,750       2,339,370       2,337,458       2,414,063  
    Total deposits (including non-interest-bearing deposits)     10,030,051       10,286,489       10,175,856       10,173,315       10,422,332  
    Total borrowings     1,343,757       1,328,016       1,333,245       1,325,372       1,214,219  
    Total interest-bearing liabilities     9,775,836       9,987,129       9,874,358       9,872,522       10,001,968  
    Non-interest bearing deposits     1,597,972       1,627,376       1,634,743       1,626,165       1,634,583  
    Stockholders’ equity     1,715,134       1,703,326       1,689,035       1,674,453       1,673,040  
    Tangible stockholders’ equity (4)     1,179,477       1,168,384       1,175,304       1,159,918       1,157,684  
                         
    Quarterly Yields and Costs                    
    Total securities     3.99 %     4.09 %     4.23 %     4.22 %     4.27 %
    Loans receivable, net     5.37       5.38       5.46       5.46       5.46  
    Total interest-earning assets     5.13       5.15       5.26       5.25       5.26  
    Time deposits     3.91       4.34       4.58       4.46       4.24  
    Total cost of deposits (including non-interest-bearing deposits)     2.06       2.32       2.44       2.37       2.31  
    Total borrowed funds     4.83       4.91       5.07       5.19       5.14  
    Total interest-bearing liabilities     2.78       3.04       3.20       3.14       3.03  
    Net interest spread     2.35       2.11       2.06       2.11       2.23  
    Net interest margin     2.90       2.69       2.67       2.71       2.81  
    (1) With the exception of end of quarter ratios, all ratios are based on average daily balances.
    (2) Performance ratios for each period are presented on a GAAP basis and include non-core operations. Refer to “Non-GAAP Reconciliation.”
    (3) Ratios for each period are based on net income available to common stockholders.
    (4) Tangible stockholders’ equity and tangible assets exclude goodwill and other intangibles. Tangible common equity (also referred to as “tangible book value”) excludes goodwill, intangibles and preferred equity. Refer to “Non-GAAP Reconciliation.”
    (5) Efficiency ratio represents the ratio of operating expenses to the aggregate of other income and net interest income.
    OceanFirst Financial Corp.
    OTHER ITEMS
    (dollars in thousands, except per share amounts)
     
    NON-GAAP RECONCILIATION
     
        For the Three Months Ended
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Core Earnings:                    
    Net income available to common stockholders (GAAP)   $ 20,505     $ 20,905     $ 24,112     $ 23,369     $ 27,663  
    (Less) add non-recurring and non-core items:                    
    Spring Garden opening provision for credit losses     —       1,426       —       —       —  
    Net (gain) loss on equity investments     (205 )     5       (1,420 )     (887 )     (1,923 )
    Net gain on sale of trust business     —       —       (1,438 )     —       (1,162 )
    FDIC special assessment     —       —       —       —       418  
    Merger related expenses     —       110       1,669       —       —  
    Income tax expense (benefit) on items     49       (388 )     270       188       642  
    Core earnings (Non-GAAP)   $ 20,349     $ 22,058     $ 23,193     $ 22,670     $ 25,638  
    Income tax expense   $ 6,808     $ 5,083     $ 7,464     $ 7,082     $ 10,637  
    Provision for credit losses     5,340       3,467       517       3,114       591  
    Less: non-core provision for credit losses     —       1,426       —       —       —  
    Less: income tax expense (benefit) on non-core items     49       (388 )     270       188       642  
    Core earnings PTPP (Non-GAAP)   $ 32,448     $ 29,570     $ 30,904     $ 32,678     $ 36,224  
    Core earnings diluted earnings per share   $ 0.35     $ 0.38     $ 0.39     $ 0.39     $ 0.44  
    Core earnings PTPP diluted earnings per share   $ 0.56     $ 0.51     $ 0.53     $ 0.56     $ 0.62  
                         
    Core Ratios (Annualized):                    
    Return on average assets     0.62 %     0.65 %     0.69 %     0.68 %     0.76 %
    Return on average tangible stockholders’ equity     7.00       7.51       7.85       7.86       8.91  
    Return on average tangible common equity     7.34       7.89       8.24       8.26       9.36  
    Efficiency ratio     65.81       67.74       66.00       63.47       61.05  
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Tangible Equity:                    
    Total stockholders’ equity   $ 1,709,117     $ 1,702,757     $ 1,694,508     $ 1,676,669     $ 1,665,837  
    Less:                    
    Goodwill     523,308       523,308       506,146       506,146       506,146  
    Intangibles     11,740       12,680       7,056       7,859       8,669  
    Tangible stockholders’ equity     1,174,069       1,166,769       1,181,306       1,162,664       1,151,022  
    Less:                    
    Preferred stock     55,527       55,527       55,527       55,527       55,527  
    Tangible common equity   $ 1,118,542     $ 1,111,242     $ 1,125,779     $ 1,107,137     $ 1,095,495  
                         
    Tangible Assets:                    
    Total assets   $ 13,309,278     $ 13,421,247     $ 13,488,483     $ 13,321,755     $ 13,418,978  
    Less:                    
    Goodwill     523,308       523,308       506,146       506,146       506,146  
    Intangibles     11,740       12,680       7,056       7,859       8,669  
    Tangible assets   $ 12,774,230     $ 12,885,259     $ 12,975,281     $ 12,807,750     $ 12,904,163  
                         
    Tangible stockholders’ equity to tangible assets     9.19 %     9.06 %     9.10 %     9.08 %     8.92 %
    Tangible common equity to tangible assets     8.76 %     8.62 %     8.68 %     8.64 %     8.49 %


    C    ompany Contact:

    Patrick S. Barrett
    Chief Financial Officer
    OceanFirst Financial Corp.
    Tel: (732) 240-4500, ext. 27507
    Email: pbarrett@oceanfirst.com

    The MIL Network –

  • MIL-OSI Security: Federal Inmate Pleads Guilty To Assaulting Correctional Officer And Inflicting Bodily Injury

    Source: Office of United States Attorneys

    Ocala, Florida – United States Attorney Gregory W. Kehoe announces that Ali Odeh Abdeljaber (31, Kentucky) has pleaded guilty to forcibly assaulting, resisting, and impeding an officer and employee of the United States. Abdeljaber faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.

    According to the court records, Abdeljaber is an inmate at the Coleman Federal Correctional Complex, United States Penitentiary I, in Sumter County. On March 18, 2024, a Federal Bureau of Prisons correctional officer tried to escort Abdeljaber to his assigned cell. Abdeljaber, however, became combative, lunging forward and using his head to strike the officer in the face. The officer suffered injuries from the attack, including two fractured teeth.  

    This case was investigated by the Federal Bureau of Investigation and the Federal Bureau of Prisons. It is being prosecuted by Assistant United States Attorney Hannah Nowalk Watson.

    MIL Security OSI –

  • MIL-OSI USA: Graham Applauds Trump Administration Funding I-95 Bridge Project

    US Senate News:

    Source: United States Senator for South Carolina Lindsey Graham

    WASHINGTON – U.S. Senator Lindsey Graham (R-South Carolina) joined federal and state officials in celebrating news from the U.S. Department of Transportation (DOT) that the South Carolina Department of Transportation (SCDOT) would receive the Trump Administration’s first federal grant agreement under the Bridge Investment Program (BIP) to fund the replacement of I-95 bridges over Lake Marion.

    Last year, Senator Graham joined Governor McMaster and other South Carolina federal and state officials to celebrate the initial grant announcement. Graham led the South Carolina delegation in securing funding for this project. 

    “I am very grateful to Secretary Duffy and his team for starting to push the grant funds out the door – at the direction of President Trump – to make the I-95 bridges replacement project over Lake Marion a reality,” said Senator Graham. “This is one of the most important projects in our state. It’s been a collaborative effort and will tremendously improve quality of life and commerce in the region.”

    “President Trump tasked my Department with a clear objective: rebuild America’s aging infrastructure,” said U.S. Transportation Secretary Sean P. Duffy. “The previous administration left the nation with an unprecedented backlog of unfulfilled grant agreements and empty promises. Within 100 days of inauguration, we’re already delivering results.”

    “Thank you to Secretary Duffy for delivering this critical grant money to fund the bridge on I-95,” said U.S. Senator Tim Scott. “This common-sense investment in infrastructure is a win for every South Carolinian who commutes to work, operates a business, moves our goods, and transports their family. President Trump and Secretary Duffy are proving once again that they know how to get things done and will deliver on their promise to focus on our infrastructure without saddling Americans with unnecessary debt or wasteful political agendas.”

    “South Carolina appreciates the quick action by Secretary Duffy and the Trump administration to advance this critical grant project,” said South Carolina Secretary of Transportation Justin Powell. “The Lake Marion Bridge project will help ensure a bright future for the people of our state and the nation.  SCDOT is prepared to move forward immediately to put these dollars to work by building big, transformative infrastructure that benefits American families.”

    More information from DOT is available HERE.

    MIL OSI USA News –

  • MIL-OSI Canada: Minister of Finance concludes successful G7 and G20 Finance Ministers and Central Bank Governors Meetings in Washington, D.C.

    Source: Government of Canada News (2)

    April 24, 2025 – Washington, D.C. – Department of Finance Canada

    The Minister of Finance, the Honourable François-Philippe Champagne, concluded his participation in the meetings of the G7 and G20 Finance Ministers and Central Bank Governors, this week in Washington, D.C.

    Minister Champagne and the Governor of the Bank of Canada, Tiff Macklem, co-chaired the G7 meeting, as part of Canada’s presidency of the G7 in 2025, and at a critical time when Canadian leadership at the G7 is very important. Discussions focused on the global economic outlook in the current context, which is marked by major changes in global trade policies and a high level of uncertainty, as well as the situation in Ukraine.

    Minister Champagne also joined his G20 counterparts for discussions on global macroeconomic risks and financial stability as well as issues relating to the international financial architecture and growth opportunities and challenges in Africa.

    The meetings were held on the margins of the Spring Meetings of the International Monetary Fund and the World Bank.

    MIL OSI Canada News –

  • MIL-OSI USA: Founder and Former CEO of Biscayne Capital Sentenced to 10 Years in Prison for $130M Fraud Scheme

    Source: US State of California

    Roberto Gustavo Cortes Ripalda (Cortes), 58, the co-founder, co-owner, and CEO of international advisory firm Biscayne Capital, was sentenced earlier today in Brooklyn, New York to 10 years in prison for conspiracy to commit wire fraud. Cortes pleaded guilty to the charge in September 2023. Cortes was also ordered to pay $3.4 million in forfeiture and $103million in restitution to over 110 victims.

    “For more than five years, Roberto Cortes and his co-conspirators ran Biscayne Capital as a Ponzi scheme, lying to investors — including the defendant’s own friends and family members — and ultimately causing more than $155 million in investor losses,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “The sentence will hold Cortes accountable for his years of lies and deception. Thank you to our partners for their hard work and collaboration to achieve this result.”   

    “Today’s sentence reflects the seriousness of Roberto Cortes’s criminal conduct in orchestrating a years-long scheme with his co-conspirators to prop up a failing business while defrauding Biscayne Capital investors and clients around the globe,” said U.S. Attorney John J. Durham for the Eastern District of New York. “Using illegal Ponzi payments to their victims, Cortes and his co-conspirators were able to disguise and perpetuate this scheme for years until Biscayne Capital finally collapsed under the defendants’ lies. Today’s sentence demonstrates our Office’s commitment to holding accountable investment professionals who abuse the trust of their clients for personal profit.”

    “Regardless of the complexity of the investigation, IRS Criminal Investigation Special Agents and our law enforcement partners will utilize their skills and unique authorities to hold bad actors like the defendant accountable,” stated IRS-CI Executive Special Agent in Charge Kareem A. Carter.  “This was a brazen scheme of staggering proportions. Mr. Cortes and his co-conspirators prioritized their own greed, stealing $155 million from investors. Today’s sentencing sends a clear message that we remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”

    According to court filings, Cortes and his co-defendant Ernesto Heraclito Weisson Pazmino (Weisson) founded Biscayne Capital in 2005 to support the financing of South Bay, their real estate development business focused on acquiring and demolishing properties to build luxury homes. After South Bay began experiencing financial trouble in 2007, Cortes and Weisson recruited investors to inject funds into South Bay’s operations. Rather than using those investor funds to fund South Bay’s real estate development projects, Cortes, Weisson, and their co-conspirators used the bulk of the funds to pay outstanding interest and principal debt obligations to other investors.

    Cortes and his co-conspirators took numerous steps to perpetuate and conceal the scheme, including distributing investment documents with false and misleading information, deceiving investors about the purpose, risk, return, and security of their investments, and creating and sending fake account statements to unsuspecting clients to conceal the scheme.  By the time the Biscayne Capital/South Bay Ponzi scheme collapsed and Biscayne Capital went into liquidation, Biscayne Capital clients had lost over $155 million.

    IRS-CI investigated the case.

    Bank Integrity Unit Deputy Chief Randall Warden and Trial Attorney Morgan Cohen of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys Drew Rolle and Benjamin Weintraub for the Eastern District of New York are prosecuting the case. Trial Attorney Brandon Burkart of the Criminal Division’s Fraud Section assisted with the investigation.

    The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition from Spain and obtaining evidence in this case. The Department of Justice also thanks the Governments of the Cayman Islands, Curaçao, Ecuador, Spain and Switzerland for their valuable support.

    MIL OSI USA News –

  • MIL-OSI Security: Founder and Former CEO of Biscayne Capital Sentenced to 10 Years in Prison for $130M Fraud Scheme

    Source: United States Attorneys General 1

    Roberto Gustavo Cortes Ripalda (Cortes), 58, the co-founder, co-owner, and CEO of international advisory firm Biscayne Capital, was sentenced earlier today in Brooklyn, New York to 10 years in prison for conspiracy to commit wire fraud. Cortes pleaded guilty to the charge in September 2023. Cortes was also ordered to pay $3.4 million in forfeiture and $103million in restitution to over 110 victims.

    “For more than five years, Roberto Cortes and his co-conspirators ran Biscayne Capital as a Ponzi scheme, lying to investors — including the defendant’s own friends and family members — and ultimately causing more than $155 million in investor losses,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “The sentence will hold Cortes accountable for his years of lies and deception. Thank you to our partners for their hard work and collaboration to achieve this result.”   

    “Today’s sentence reflects the seriousness of Roberto Cortes’s criminal conduct in orchestrating a years-long scheme with his co-conspirators to prop up a failing business while defrauding Biscayne Capital investors and clients around the globe,” said U.S. Attorney John J. Durham for the Eastern District of New York. “Using illegal Ponzi payments to their victims, Cortes and his co-conspirators were able to disguise and perpetuate this scheme for years until Biscayne Capital finally collapsed under the defendants’ lies. Today’s sentence demonstrates our Office’s commitment to holding accountable investment professionals who abuse the trust of their clients for personal profit.”

    “Regardless of the complexity of the investigation, IRS Criminal Investigation Special Agents and our law enforcement partners will utilize their skills and unique authorities to hold bad actors like the defendant accountable,” stated IRS-CI Executive Special Agent in Charge Kareem A. Carter.  “This was a brazen scheme of staggering proportions. Mr. Cortes and his co-conspirators prioritized their own greed, stealing $155 million from investors. Today’s sentencing sends a clear message that we remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”

    According to court filings, Cortes and his co-defendant Ernesto Heraclito Weisson Pazmino (Weisson) founded Biscayne Capital in 2005 to support the financing of South Bay, their real estate development business focused on acquiring and demolishing properties to build luxury homes. After South Bay began experiencing financial trouble in 2007, Cortes and Weisson recruited investors to inject funds into South Bay’s operations. Rather than using those investor funds to fund South Bay’s real estate development projects, Cortes, Weisson, and their co-conspirators used the bulk of the funds to pay outstanding interest and principal debt obligations to other investors.

    Cortes and his co-conspirators took numerous steps to perpetuate and conceal the scheme, including distributing investment documents with false and misleading information, deceiving investors about the purpose, risk, return, and security of their investments, and creating and sending fake account statements to unsuspecting clients to conceal the scheme.  By the time the Biscayne Capital/South Bay Ponzi scheme collapsed and Biscayne Capital went into liquidation, Biscayne Capital clients had lost over $155 million.

    IRS-CI investigated the case.

    Bank Integrity Unit Deputy Chief Randall Warden and Trial Attorney Morgan Cohen of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys Drew Rolle and Benjamin Weintraub for the Eastern District of New York are prosecuting the case. Trial Attorney Brandon Burkart of the Criminal Division’s Fraud Section assisted with the investigation.

    The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition from Spain and obtaining evidence in this case. The Department of Justice also thanks the Governments of the Cayman Islands, Curaçao, Ecuador, Spain and Switzerland for their valuable support.

    MIL Security OSI –

  • MIL-OSI USA: Three Members of an International Money Laundering Organization Charged with Laundering Millions of Dollars in Drug Proceeds

    Source: US State of Vermont

    A federal grand jury in Florence, South Carolina, returned an indictment on April 22, charging Nasir Ullah, 28, and Naim Ullah, 32, both of Sumter, South Carolina, and Puquan Huang, 49, of Buford, Georgia, with conspiring to launder millions of dollars of proceeds derived from drug trafficking.

    “As alleged in the indictment, the defendants laundered tens of millions of dollars in drug proceeds from the United States through China and the Middle East, enabling a continuous flow of fentanyl and other dangerous drugs into our country from Mexico,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Dismantling transnational criminal organizations and Chinese Money Laundering Organizations that support them is a critical priority for the Department. Alongside DEA and our local law enforcement partners, we will continue to prosecute the financial networks that fuel illegal drug trade and profit from the sale of deadly substances.”

    “We are committed to dismantling criminal organizations that seek to profit through the distribution of dangerous drugs like cocaine and fentanyl across South Carolina and beyond,” said Acting U.S. Attorney Brook B. Andrews for the District of South Carolina. “This $30 million money laundering operation, which has international ties, was conducted in multiple communities in our state. We will continue to work tirelessly with our law enforcement partners to trace these illicit funds, disrupt these networks, and hold those involved accountable for the harm they present.”

    “Cases like this exemplify the value of partnerships,” said Acting Special Agent in Charge Jae W. Chung of the DEA Atlanta Division. “The volume of dangerous drugs, including deadly fentanyl, impacts our communities beyond comprehension. This investigation and subsequent arrests demonstrate DEA’s commitment to protecting our community by destroying these drug trafficking and money laundering organizations.”

    According to court documents, unsealed today, Ullah, Naim Ullah, and Huang allegedly worked for a money laundering organization that laundered at least $30 million in proceeds related to the distribution of illegal drugs, including cocaine and fentanyl, which were unlawfully imported into the United States, typically through Mexico. Ullah, Naim Ullah, Huang, and their co-conspirators allegedly traveled throughout the United States to collect drug proceeds. They communicated with co-conspirators in China to arrange for the laundering of these proceeds through transactions designed to conceal the illegal source of the proceeds, including disguising the source of the drug proceeds by moving money through the shipment of electronic goods to China and the Middle East.

    Ullah, Naim Ullah, and Huang are charged with conspiracy to commit money laundering. If convicted, they each face a maximum penalty of 20 years in prison.

    The DEA’s Charleston, South Carolina Resident Office is investigating the case, with assistance from the DEA’s Special Operations Division, Bilateral Investigations Unit; DEA’s Office of Special Intelligence, Document and Media Exploitation Unit; DEA’s offices in Columbia, South Carolina and Atlanta; the FBI’s offices in Charleston and Columbia, South Carolina; the U.S. Air Force, Office of Special Investigations; the South Carolina Law Enforcement Division; the Sumter County Sheriff’s Office; the South Carolina Highway Patrol; the Fort Mill Police Department; the York County Sheriff’s Office; the North Charleston Police Department; the Mount Pleasant Police Department; and the Richland County Sheriff’s Department.

    Trial Attorneys Mary K. Daly and Jasmin Salehi Fashami of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Everett E. McMillian for the District of South Carolina are prosecuting the case.

    The Third and Fifth Judicial Circuit Solicitor’s Offices of South Carolina provided assistance in this case.

    An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL OSI USA News –

  • MIL-OSI USA: Payroll Services Company Owner Sentenced to Prison

    Source: US State of Vermont

    Defendant Defrauded the United States of More than $20M in Taxes While Amassing a Large Collection of Luxury Goods Including 27 Ferraris

    A Florida man was sentenced today to 50 months in prison for not paying taxes withheld from his employees’ wages and filing a false tax return.

    The following is according to court documents and statements made in court: Matthew Brown, of Palm Beach Gardens, Florida, owned and operated multiple businesses in and around Martin County, Florida. One of these businesses was a payroll services company known as Elite Payroll. Elite Payroll provided payroll services to small businesses in and around St. Lucie, Martin, and Palm Beach Counties. Elite Payroll was hired by its clients to collect and pay over the Social Security, Medicare, and federal income taxes withheld from clients’ employees’ wages and to pay over those funds to the IRS each quarter. The timely payment of these taxes is critical to the functioning of the U.S. government, including because they are the primary source of funding for Social Security and Medicare. The federal income taxes that are withheld from employees’ wages also account for a significant portion of all federal income taxes collected each year.

    Between 2014 and 2022, Brown did not pay over $20,000,000 in taxes withheld from the wages of employees of clients of Elite Payroll and from other businesses he controlled and instead enriched himself. To effectuate his scheme, Brown charged his clients the full amount of their tax liabilities but then filed false employment tax returns with the IRS that substantially underreported their liabilities, and pocketing the difference. For example, for one quarter in 2021, a client owed approximately $219,000 in taxes. Elite Payroll collected that amount from the client but filed a false tax return with the IRS claiming that the client only owed approximately $32,000, which Elite paid. Brown then kept the remaining approximately $190,000.

    Instead of paying over the funds, Brown purchased commercial and residential real estate, including his multimillion-dollar home, a Valhalla 55 Sport Yacht, a Falcon 50 Aircraft, and a large collection of cars including Porsches, Rolls Royces, and 27 Ferraris.

    In addition to his prison sentence, U.S. District Judge Aileen M. Cannon for the Southern District of Florida ordered Brown to serve two years of supervised release and to pay $22,401,585 in restitution, and a $200,000 fine to the United States.

    Acting Deputy Assistant Attorney Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Hayden O’Bryne of the Southern District of Florida made the announcement.

    IRS Criminal Investigation investigated the case.

    Trial Attorney Andrew Ascencio of the Tax Division and Assistant U.S. Attorney Michael Porter for the Southern District of Florida prosecuted the case.

    MIL OSI USA News –

  • MIL-OSI Security: Payroll Services Company Owner Sentenced to Prison

    Source: United States Attorneys General

    Defendant Defrauded the United States of More than $20M in Taxes While Amassing a Large Collection of Luxury Goods Including 27 Ferraris

    A Florida man was sentenced today to 50 months in prison for not paying taxes withheld from his employees’ wages and filing a false tax return.

    The following is according to court documents and statements made in court: Matthew Brown, of Palm Beach Gardens, Florida, owned and operated multiple businesses in and around Martin County, Florida. One of these businesses was a payroll services company known as Elite Payroll. Elite Payroll provided payroll services to small businesses in and around St. Lucie, Martin, and Palm Beach Counties. Elite Payroll was hired by its clients to collect and pay over the Social Security, Medicare, and federal income taxes withheld from clients’ employees’ wages and to pay over those funds to the IRS each quarter. The timely payment of these taxes is critical to the functioning of the U.S. government, including because they are the primary source of funding for Social Security and Medicare. The federal income taxes that are withheld from employees’ wages also account for a significant portion of all federal income taxes collected each year.

    Between 2014 and 2022, Brown did not pay over $20,000,000 in taxes withheld from the wages of employees of clients of Elite Payroll and from other businesses he controlled and instead enriched himself. To effectuate his scheme, Brown charged his clients the full amount of their tax liabilities but then filed false employment tax returns with the IRS that substantially underreported their liabilities, and pocketing the difference. For example, for one quarter in 2021, a client owed approximately $219,000 in taxes. Elite Payroll collected that amount from the client but filed a false tax return with the IRS claiming that the client only owed approximately $32,000, which Elite paid. Brown then kept the remaining approximately $190,000.

    Instead of paying over the funds, Brown purchased commercial and residential real estate, including his multimillion-dollar home, a Valhalla 55 Sport Yacht, a Falcon 50 Aircraft, and a large collection of cars including Porsches, Rolls Royces, and 27 Ferraris.

    In addition to his prison sentence, U.S. District Judge Aileen M. Cannon for the Southern District of Florida ordered Brown to serve two years of supervised release and to pay $22,401,585 in restitution, and a $200,000 fine to the United States.

    Acting Deputy Assistant Attorney Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Hayden O’Bryne of the Southern District of Florida made the announcement.

    IRS Criminal Investigation investigated the case.

    Trial Attorney Andrew Ascencio of the Tax Division and Assistant U.S. Attorney Michael Porter for the Southern District of Florida prosecuted the case.

    MIL Security OSI –

  • MIL-OSI: APA Corporation and Partners Lagniappe Alaska and Santos Announce Successful Flow Test in Alaska’s North Slope at Sockeye-2 Exploration Well

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, April 24, 2025 (GLOBE NEWSWIRE) — APA Corporation (Nasdaq: APA) and its partners Lagniappe Alaska, LLC, an Armstrong company, and Oil Search (Alaska), LLC, a subsidiary of Santos Limited, today announced the results of the successful flow testing of the Sockeye-2 exploratory well. Apache holds a 50% working interest, operator Lagniappe and partner Santos each hold 25% working interests in the 325,411-acre exploratory block located on state lands of the eastern North Slope.

    As previously announced, the Sockeye-2 well was successfully drilled to a depth of approximately 10,500 feet and encountered a high-quality Paleocene-aged clastic reservoir with an average porosity of 20%. The vertical Sockeye-2 well was completed in a single 25-foot interval at approximately 9,200 feet TVD, without stimulation. The well performed in line with expectations during the 12-day production test, averaging 2,700 barrels of oil per day during the final flow period, without artificial lift. The results of the flow test indicate significantly higher reservoir quality compared to similar topset discoveries to the west. Further appraisal drilling will determine the ultimate size of the discovery, but the flow test demonstrates the exceptional productivity of this shallow-marine reservoir.

    “We are excited about the performance from the Sockeye-2 well, which could greatly benefit the state of Alaska and the U.S.,” said Bill Armstrong, CEO of Armstrong Oil & Gas. “This discovery significantly extends the prolific Brookian topset play first established with our Pikka discovery in 2013.  We have identified analogous anomalies to investigate following on this success.” 

    “The results from the Sockeye-2 flow test are consistent with our expectations, demonstrating high quality reservoir, confirming our geologic and geophysical models and derisking additional prospectivity in the block. We will evaluate the data from the Sockeye-2 well to determine the next steps in our Alaska program,” added John J. Christmann, APA Corporation CEO. 

    About APA

    APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that explore for oil and natural gas offshore Suriname and elsewhere. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com.

    Forward-Looking Statements

    This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “continues,” “could,” “estimates,” “expects,” “goals,” “guidance,” “may,” “might,” “outlook,” “possibly,” “potential,” “projects,” “prospects,” “should,” “will,” “would,” and similar references to future periods, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about future plans, expectations, and objectives for operations, including statements about our capital plans, drilling plans, production expectations, asset sales, and monetizations. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See “Risk Factors” in APA’s Form 10-K for the year ended December 31, 2024, and in our quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission for a discussion of risk factors that affect our business. Any forward-looking statement made in this news release 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. APA and its subsidiaries undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.

    Contacts

    Investor: (281) 302-2286
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