NewzIntel.com

Category: Finance

  • MIL-OSI: Kahuna Receives Financing from Stifel Bank to Fuel Innovation and Expansion

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, Jan. 31, 2025 (GLOBE NEWSWIRE) — Kahuna Workforce Solutions, a leading skills and competency management SaaS platform, today announced financing from Stifel Bank, an affiliate of Stifel Financial Corp., a global diversified financial services firm. The credit facility with Stifel Bank will provide financing for working capital and growth capital, enabling Kahuna to expand its product and service offerings further to serve its customers and partners best.

    With the infusion of capital, Kahuna aims to fund the development of new products, as well as enhance the integration functionality of its skills and competency management SaaS platform with other technology solutions in the human resources, operations and learning ecosystems. Kahuna will also leverage the financing to grow its channel and partnership strategy, a key pillar of the company’s long-term vision for growth.

    “Our goal at Kahuna has always been to provide our customers with the insights and tools they need to enhance their workforce capability and reach their organizational goals,” said Jai Shah, chief executive officer of Kahuna. “Partnering with Stifel Bank allows us to deepen this commitment and continue innovating, expanding and enhancing the capabilities of our product offerings so that we can meet the evolving requirements of the organizations and markets we serve.”

    As part of its growth strategy, Kahuna has recently strengthened its leadership team with two key additions. Diane Mitchell joins as chief marketing officer, bringing extensive experience in brand development and strategic marketing. Jeff Durand joins as vice president of channels and business development, focusing on expanding Kahuna’s strategic partner network and broadening its market reach.

    “Kahuna is uniquely positioned to address the growing demand for validated skills data with its skills and competency management solutions,” said Alan Faulkner, managing director of Stifel Venture Banking. “They are transforming how organizations assess and develop their workforce skills and capabilities, and we look forward to supporting them as they continue to grow and innovate their product offerings and business overall.”

    About Kahuna Workforce Solutions
    Kahuna Workforce Solutions is a leading skills and competency management SaaS platform designed for operations, learning and human resources. The platform provides enterprises with validated skills data, offering valuable insights into workforce capabilities, aligning talent supply and demand and maximizing training investments. Kahuna helps organizations build a more skilled, adaptable, and competitive workforce. Learn more: kahunaworkforce.com

    About Stifel
    Stifel Financial Corp. (NYSE: SF) is a diversified global wealth management, investment bank, and commercial banking company. Stifel Venture Banking, a division of Stifel Bank, Member FDIC, provides commercial banking and debt capital financing solutions to venture capital-backed technology companies and their investors. Stifel Bank has the flexibility and resources to offer its customers the banking, treasury management, and lending solutions they value most, with the legacy of Stifel. Stifel Bank collaborates with Stifel Investment Banking teams and Stifel Wealth Management, tailoring solutions for companies and individuals across their asset management needs. To learn more, please visit: https://stifelventurebanking.com/

    The MIL Network –

  • MIL-OSI: Reorganization of Aktsiaselts Infortar subsidiaries within the group

    Source: GlobeNewswire (MIL-OSI)

    In the course of the intra-group reorganization of Aktsiaselts Infortar (Infortar), on 31 January 2025 Tallinna Raamatutrükikoja Osaühing (TRT) acquired Printon AS shares from AS Vaba Maa and AS Vaba Maa shares from Infortar. Following the transactions AS Vaba Maa and AS Printon will remain a subsidiaries of Tallinna Raamatutrükikoja Osaühing.

    “This change will not affect our clients and partners; work will continue as usual in both of our production units. The only addition is the technological capability and flexibility to utilize both production units,” noted Priit Tamme, Deputy Managing Director of Infortar.

    Infortar operates in seven countries, the company’s main fields of activity are maritime transport, energy and real estate. Infortar owns a 68.47% stake in Tallink Grupp, a 100% stake in Elenger Grupp and a versatile and modern real estate portfolio of approx. 116,000 m2. In addition to the three main areas of activity, Infortar also operates in construction and mineral resources, agriculture, printing, and other areas. A total of 105 companies belong to the Infortar group: 96 subsidiaries, 4 affiliated companies and 5 subsidiaries of affiliated companies. Excluding affiliates, Infortar employs 6,108 people.

    Additional information:

    Kadri Laanvee
    Investor Relations Manager
    Phone: +372 5156662
    e-mail: kadri.laanvee@infortar.ee
    www.infortar.ee/en/investor

    The MIL Network –

  • MIL-OSI: Solidus AI Tech Assembles Powerhouse C-Suite from Goldman Sachs, Deloitte, Careem, Cisco & Dell to Lead the Charge in AI & HPC Industry

    Source: GlobeNewswire (MIL-OSI)

    Dubai, UAE, Jan. 31, 2025 (GLOBE NEWSWIRE) — Solidus AI Tech, a pioneering force in AI-driven high-performance computing (HPC), has fortified its leadership team with an elite selection of industry veterans from globally recognized firms, including Goldman Sachs, Deloitte, Careem, Cisco, and Dell. This addition to the powerhouse C-suite is set to drive the company’s mission of revolutionizing AI infrastructure and accelerating the adoption of AI solutions worldwide.

    Unparalleled Financial and Investment Leadership

    Kal Desai – Chief Financial Officer (CFO) Kal Desai, an Australian-qualified chartered accountant, brings decades of financial acumen spanning Australia, the U.K., and the Middle East. With a career that includes leadership roles at BHP Billiton, Orange, and Reuters, Kal has played a pivotal role in the financial scaling of technology enterprises. Notably, he spearheaded capital raises and exits, including the landmark sale of Zawya to Thomson Reuters in 2012 and his instrumental role as founding CFO of Careem, which was acquired by Uber for $3.1 billion. At Solidus AI Tech, he will steer financial growth strategies, ensuring a robust financial infrastructure to support expansion and innovation.

    Michael Swan – Chief Investment Officer (CIO) With nearly two decades of investment expertise in both traditional finance (TradFi) and decentralized finance (DeFi), Michael Swan has held influential roles at Macquarie Bank and Goldman Sachs. Transitioning into the Web3 sector, he became a recognized industry authority at Tokenomik Inc., executing over 70 seed and private round investments across blockchain projects. As CIO, Michael will architect innovative financing solutions, leveraging a hybrid model of instruments to optimize capital structures for Solidus AI Tech.

    Elite Technology and Innovation Leadership

    Christian Szilagyi – Chief Technology Officer (CTO) A veteran technology leader with over 30 years of experience, Christian Szilagyi has a distinguished career in infrastructure architecture, AI, automation, and high-performance computing (HPC). His track record includes key roles at industry titans like Dell, Verint, and LivePerson, as well as pioneering regional expansions for Calabrio and Centrical. With expertise spanning DevOps, B2C optimization, and enterprise AI integration, Christian will drive Solidus AI Tech’s technology strategy, ensuring its AI and HPC capabilities are at the cutting edge of innovation.

    Niraj Poduval – Chief Innovation Officer (CINO) With over 11 years of AI and data consulting expertise, Niraj Poduval has played a key role in AI adoption strategies across banking, retail, smart cities, and the public sector. His tenure at Deloitte saw him architect AI transformation roadmaps for high-profile clients. As CINO at Solidus AI Tech, Niraj will lead AI-driven initiatives, aligning technological advancements with the company’s strategic vision to maximize business impact and market expansion.

    Commercial and Market Expansion Leadership

    Mike Doria – Chief Commercial Officer (CCO) Bringing extensive expertise in Web3, AI, and enterprise infrastructure, Mike Doria has held key leadership roles at Cisco and DXC. His track record includes spearheading revenue growth, securing funding for large-scale data center projects, and launching disruptive AI solutions. With experience as a co-founder and CEO of multiple technology ventures, Mike is set to drive Solidus AI Tech’s commercial strategy, expanding its market reach and establishing it as a dominant force in AI-powered computing.

    A Bold Vision for the Future of AI & HPC

    This addition formidable C-suite brings a wealth of expertise across finance, investment, technology, and commercial strategy. Their combined leadership positions Solidus AI Tech at the forefront of AI and HPC innovation, strengthening its position as a leading infrastructure provider for AI-powered applications. With a strategic blend of TradFi, DeFi, and cutting-edge AI solutions, the company is positioned to drive transformative advancements in AI adoption across industries.

    Solidus AI Tech is an upcoming industry leader in high-performance AI computing solutions, committed to building the next generation of AI infrastructure. With a focus on sustainability, efficiency, and cutting-edge technology, Solidus AI Tech provides enterprises with the tools and computing power necessary to drive AI-driven transformations.

    Learn more:

    Website: https://aitech.io/
    Twitter X: https://twitter.com/AITECHio
    Telegram: https://t.me/solidusaichat

    Disclaimer: The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities.

    The MIL Network –

  • MIL-OSI Russia: Benin: An African Pioneer

    Source: IMF – News in Russian

    Benin: An African Pioneer

    January 31, 2025

    Innovation and a strong reform drive have strengthened Benin’s resilience to regional and global challenges and supported progress toward meeting the Sustainable Development Goals.

    Benin faced a number of negative spillovers in 2022: a deteriorating regional security situation at its northern border, the lingering scars of COVID-19, and higher living costs amid the war in Ukraine. To help counter those headwinds, the country tapped IMF support, including a $650 million blended Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangement, complemented by a $200 million Resilience and Sustainability Facility (RSF) in 2023. Development partners’ confidence in the country’s reform program has been reflected in budget support consistently exceeding expectations. Moreover, Benin was among the first countries to re-access the international capital market last year, following a two-year hiatus, with several sovereign credit rating upgrades in recent years.  

    Despite challenges, there are promising signs of economic transformation. Among other achievements, growth has been strong, fiscal adjustment is proceeding while allowing for a significant increase in social spending, and efforts to strengthen governance are gaining ground.

    Following the combined Fifth Review of the ongoing EFF/ECF arrangement and Second Review of the RSF, IMF Country Focus discussed the country’s economic performance with Romuald Wadagni, Senior Minister of State of Economy and Finance for Benin, and Constant Lonkeng, IMF Mission Chief for Benin.

    How is the current reform program affecting the daily lives of Beninese people?

    Finance Minister Wadagni: First and foremost, our ongoing reform program has allowed us to navigate an episode of severe and repeated shocks, with technical and financial support from our development partners. As a result, our economy has shown remarkable resilience, with growth averaging more than 6.5 percent in recent years.

    Economic resilience is helping harness the potential of Benin’s people. A key focus of our reform program is enhancing human capital, as articulated under our people-centric Government Action Program (PAG 2021–26).

    Our Integrated School Feeding Program currently provides free meals to students in 95 percent of elementary schools in rural areas (more than 1.3 million children), with full coverage targeted this year. Lower education is now tuition-free for girls across all of Benin’s 77 communes (estimated 2 million girls), with an ongoing pilot to extend to upper secondary school. We are also putting emphasis on technical education and vocational training to prepare our large youth population to seize job opportunities in high value-added activities.  

    More broadly, our flagship Insurance for Human Capital Enhancement (ARCH) seeks to foster social resilience through various programs including micro-credits, access to healthcare, and pensions. The social registry—established early on under the EFF/ECF with World Bank technical support—is an essential tool for targeting our support to the most vulnerable.  

    How has IMF engagement supported the authorities’ policy agenda?

    IMF Mission Chief Lonkeng: One key design consideration of Benin’s IMF-supported program was balancing financing and fiscal adjustment in a shock-prone environment. Considering Benin’s established track record in macroeconomic management, we opted for a flexible design—a vote of confidence from the IMF.  

    Frontloaded financing supported the country’s appropriately strong counter-cyclical policy response to severe shocks—the IMF disbursed more than 40 percent of the total financing envelope of about 400 percent of Benin’s quota in the first 6 months of the 42-month program to smooth out fiscal adjustment. The EFF/ECF was subsequently complemented by an RSF (120 percent of Benin’s quota) to help enhance the country’s overall socio-economic resilience.  

    The authorities have since been re-building policy space, with domestic revenue mobilization being a key part of this effort and, more broadly, the cornerstone of the authorities’ reform program. A frontloaded tax policy reform under the program complemented efforts to digitalize the tax system to boost revenue collection. As the chart shows, Benin’s tax-to-GDP ratio increased by more than 2 percentage points during 2022–24, far exceeding the average improvement of other countries in this timeframe. 

    There are promising signs of economic transformation. How are you achieving this and what lessons did you learn along the way?

    Finance Minister Wadagni: We first conducted an in-depth diagnostic of our economic and financial situation about a decade ago. We then embarked on a first wave of reforms to lay the foundations for structural transformation, cognizant of the fact that sound public finances, reliable energy, and infrastructure—including digital—are key prerequisites for sustained economic expansion.  

    The ongoing second wave of reforms seek to consolidate our initial achievements and climb up value chains by processing commodities locally. The Glo-Djigbé Industrial Zone—which is dedicated to the local transformation of agricultural products including cotton, cashews, and soybeans—plays a strategic role in this regard. We intend to further develop the zone and, more broadly, pursue the structural transformation of our economy, including through continued modernization and enhanced resilience of agriculture. We will also step up investment in unlocking Benin’s tourism potential and modernizing the Port of Cotonou.

    In doing all of the above, we will expand the social safety nets to reach as many vulnerable people as possible. A key lesson from our experience so far is that sound governance is critical in economic transformation.  

    Benin innovated with the issuance of the first Social Development Goal (SDG) bond in the region – and is now extending this framework to catalyze private climate finance. Can you elaborate?

    Finance Minister Wadagni: We developed an SDG bond framework around the country’s social and climate priorities as an integral part of our development finance strategy. The framework was initially used to issue a €500 million SDG bond in 2021, a first in the region. It has since facilitated the financing of key social and energy transition projects. We intend to leverage the SDG bond framework to catalyze financing for climate change adaptation, resilient agriculture, sustainable ecosystem management, and the energy transition.

    Relatedly, we secured climate financing pledges from our partners during the recent COP29, following the climate finance roundtable that we co-convened in Cotonou with the IMF and the World Bank.

    What has been the key to program engagement in your view, and what do you see as the main challenges ahead?   

    IMF Mission Chief Lonkeng: First and foremost, program ownership has been key. Benin has an established tradition of public consultation around the country’s reform agenda—under the National Development Plan and the Government Action Program. The Fund-supported program therefore had a solid homegrown foundation to build on.  

    Going forward, continued expansion of the tax base, drawing on the country’s recently developed medium-term revenue strategy, would help fund Benin’s large development needs (the country’s median age is 18), and improve the country’s capacity to carry debt and preserve debt sustainability.  

    On the structural front, a continued move away from the traditional transit-centered growth model—supported by a balanced social contract—would foster private sector job creation in higher value-added activities for the large youth population. Enhancing resilience to climate change and maintaining the digitalization drive would also support overall socio-economic resilience in the long-term. All of this would help raise the living standards of the Beninese in a sustained and inclusive manner.

    https://www.imf.org/en/News/Articles/2025/01/31/cf-benin-an-african-pioneer

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI: Fusion Fuel to Transfer Equity Listing to The Nasdaq Capital Market; Receives Extension to Comply with Bid Price Rule

    Source: GlobeNewswire (MIL-OSI)

    DUBLIN, Jan. 31, 2025 (GLOBE NEWSWIRE) — via IBN — Fusion Fuel Green PLC (Nasdaq: HTOO) (“Fusion Fuel” or the “Company”), a leading provider of comprehensive energy engineering, advisory, and supply solutions, today announced that it was notified by the staff of the Listing Qualifications Department (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) that the Staff has approved the Company’s application to transfer its Class A Ordinary Shares and publicly-traded warrants to The Nasdaq Capital Market from The Nasdaq Global Market. This transfer will take effect at the opening of business on February 3, 2025.

    In connection with the transfer, the Staff determined that the Company will be eligible for an additional 180 calendar day period, or until July 28, 2025, to regain compliance with the Nasdaq minimum $1.00 bid price per share requirement (the “Minimum Bid Price Requirement”). The Company intends to take all necessary steps to regain compliance, including effecting a reverse share split, if necessary, to regain compliance. If at any time during this additional time period the closing bid price of the Class A Ordinary Shares is at least $1.00 per share for a minimum of ten consecutive business days, the Staff will provide written confirmation of compliance for continued listing on The Nasdaq Capital Market.

    As previously reported in a Report on Form 6-K furnished to the Securities and Exchange Commission on January 13, 2025, on January 10, 2025, the Company received a letter from the Staff notifying it that since the Company has not yet held an annual meeting of shareholders within twelve months of the end of the Company’s fiscal year ended December 31, 2023, it no longer complies with Nasdaq Listing Rule 5620(a) (the “Annual Meeting Requirement”). There can be no assurance that Fusion Fuel will be able to regain compliance with the Minimum Bid Price Requirement, whether by implementing a reverse share split or otherwise, that the Company will be able to regain compliance with the Annual Meeting Requirement, or that the Company will be able to meet the Nasdaq listing requirements in general.

    Fusion Fuel does not anticipate a material impact on its equity trading as a result of the transfer of listing. The Nasdaq Capital Market operates in the same manner as The Nasdaq Global Market and is a continuous trading market that lists companies that must meet certain financial and corporate governance requirements. Fusion Fuel’s securities will continue to trade under the symbols “HTOO” and “HTOOW.”

    “We are pleased to receive Nasdaq’s approval to transfer our listing to The Nasdaq Capital Market, along with the additional time to regain compliance with the Minimum Bid Price Requirement,” said JP Backwell, CEO of Fusion Fuel. “This determination provides us with both the flexibility and the confidence to continue executing on our strategic initiatives with a renewed focus on building our business. We remain committed to delivering value to our shareholders and further establishing Fusion Fuel as a leading provider of full-service energy engineering and advisory solutions.”

    About Fusion Fuel Green plc

    Fusion Fuel Green PLC (NASDAQ: HTOO) is an emerging leader in the energy services sector, offering a comprehensive suite of energy engineering and advisory solutions through its Al Shola Gas and BrightHy subsidiaries. Al Shola Gas provides full-service industrial gas solutions, including the design, supply, and maintenance of liquefied petroleum gas (LPG) systems, as well as the transport and distribution of LPG to a broad range of customers across commercial, industrial, and residential sectors. BrightHy, the Company’s newly launched hydrogen solutions platform, focuses on delivering innovative engineering and advisory services that enable decarbonization across hard-to-abate industries.

    Learn more about Fusion Fuel by visiting our website at https://www.fusion-fuel.eu and following us on LinkedIn.

    Forward-Looking Statements

    This press release includes “forward-looking statements.” Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target”, “may”, “intend”, “predict”, “should”, “would”, “predict”, “potential”, “seem”, “future”, “outlook” or other similar expressions (or negative versions of such words or expressions) that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Fusion Fuel has based these forward-looking statements largely on its current expectations. Such forward-looking statements are subject to risks and uncertainties (including those set forth in Fusion Fuel’s Annual Report on Form 20-F for the year ended December 31, 2023, filed with the Securities and Exchange Commission) which could cause actual results to differ from the forward-looking statements.

    Investor Relations Contact

    ir@fusion-fuel.eu

    Wire Service Contact:
    IBN
    Austin, Texas
    www.InvestorBrandNetwork.com
    512.354.7000 Office
    Editor@InvestorBrandNetwork.com

    The MIL Network –

  • MIL-OSI: Grayscale Investments® Launches Grayscale® Dogecoin Trust

    Source: GlobeNewswire (MIL-OSI)

    STAMFORD, Conn., Jan. 31, 2025 (GLOBE NEWSWIRE) — Grayscale Investments®, a leading crypto asset management firm, offering more than 25 crypto investment products, today announced the creation and launch of Grayscale® Dogecoin Trust (the “Trust”).

    The Trust offers investors the opportunity to gain exposure to DOGE, the native coin of the Dogecoin network, an open-source peer-to-peer digital currency originally derived from Litecoin, which itself originated from Bitcoin. Grayscale believes DOGE has transitioned from a memecoin of a Shiba Inu to a tool for global financial inclusion, grassroots activism, and a viable means of payment. Due to its widespread accessibility, affordability, and rapid transaction speeds, DOGE has garnered significant adoption worldwide.

    “Dogecoin has matured into a potentially powerful tool for promoting financial accessibility. We believe, as a faster, cheaper, and more scalable derivative of Bitcoin, Dogecoin is helping groups underserved by legacy financial infrastructure to participate in the financial system,” said Grayscale’s Head of Product & Research, Rayhaneh Sharif-Askary. “Grayscale Dogecoin Trust offers investors exposure to an asset that is positioned to help fulfill Bitcoin’s originally intended use case and its egalitarian ethos.”

    The Trust is now open for daily subscription by eligible individual and institutional accredited investors.* The Trust functions like Grayscale’s other single-asset investment trusts and is solely invested in the token underpinning the Dogecoin network.

    This press release is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal, nor shall there be any sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

    *Grayscale’s private placements are only available to Accredited Investors as defined in Rule 501(a) of Regulation D under the Securities Act of 1933, as amended. Most individuals are not Accredited Investors. https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/updated-3

    Private placement securities are speculative, illiquid, and entail a high level of risk, including the risk that an investor could lose their entire investment.

    Grayscale intends to attempt to have shares of new products quoted on the secondary market. However, there is no guarantee that Grayscale will be successful. Although the shares of certain products have been approved for trading on a secondary market, investors in the new products should not assume that the shares will ever obtain such an approval due to a variety of factors, including questions regulators, such as the SEC, FINRA, or other regulatory bodies may have regarding such products. As a result, shareholders of such products should be prepared to bear the risk of investment in the shares indefinitely. To date, certain products have not met their investment objective, and the shares of such products quoted on OTC Markets have not reflected the value of the digital assets held by such products, less such products’ expenses and other liabilities, but have instead traded at a premium over such value, which at times has been substantial. There have also been instances where the shares of certain products have traded at a discount.

    About Grayscale Investments®

    Grayscale enables investors to access the digital economy through a family of future-forward investment products. Founded in 2013, Grayscale has a decade-long track record and deep expertise as an asset management firm focused on crypto investing. Investors, advisors, and allocators turn to Grayscale for single asset, diversified, and thematic exposure. For more information, please follow @Grayscale or visit grayscale.com.

    Media Contact

    press@grayscale.com

    Client Contact

    866-775-0313

    info@grayscale.com

    The MIL Network –

  • MIL-OSI: WISeKey WISe.Social Network: A New Era of Digital Identity Ownership and Data Privacy

    Source: GlobeNewswire (MIL-OSI)

    WISeKey WISe.Social Network: A New Era of Digital Identity Ownership and Data Privacy

    WISe.Social provides a model for how social networks can align with privacy regulations while fostering a more ethical digital ecosystem.

    Geneva, January 31, 2025 –WISeKey International Holding Ltd (“WISeKey”) (SIX: WIHN, NASDAQ: WKEY), a leading global cybersecurity, blockchain, and IoT company, today announces that in an era where personal data has become the currency of the digital world, the Company is setting a new standard with WISe.Social, a proof-of-concept social media platform designed to restore user control over digital identity, data privacy, and consent. Unlike conventional platforms that monetize user information without transparent accountability, WISe.Social is built from the ground up with privacy, security, and user sovereignty as its core principles.

    At the heart of WISe.Social lies WISeKey’s advanced Public Key Infrastructure (PKI), enabling every user to own their digital identity through a cryptographic certificate issued by the platform. This certificate acts as a secure authentication method, allowing seamless login across various digital services while ensuring that personal identity remains under the sole control of the user. Should the user choose to revoke their certificate, all associated content is either deleted or made available for download, reinforcing the fundamental principle that personal data should belong to the individual, not the platform.

    By integrating blockchain technology, WISe.Social ensures full transparency in content moderation, safeguarding users against arbitrary censorship or manipulative algorithms. Every moderation decision is immutably recorded, creating a verifiable and accountable framework for digital discourse. The platform also eliminates the rampant spread of misinformation, fake accounts, and bots by requiring all profiles to be tied to a verifiable digital identity.

    WISe.Social goes beyond traditional security measures by incorporating post-quantum cryptography, protecting users against emerging cyber threats that could compromise sensitive information. This future-proof approach guarantees that personal data remains secure in an evolving technological landscape.

    As governments and regulatory bodies worldwide demand greater compliance with data protection laws such as GDPR, WISe.Social provides a model for how social networks can align with privacy regulations while fostering a more ethical digital ecosystem. The platform redefines consent by allowing users to control their data lifecycle, dictating how and when their information is used.

    WISeKey believes that the future of social media must be built on trust, accountability, and user empowerment. With WISe.Social, individuals reclaim ownership of their digital presence, ensuring that their personal data is protected, their identity remains private, and their consent is always respected. By challenging outdated norms and reshaping the way online platforms operate, WISeKey is leading the charge toward a more secure, transparent, and privacy-centric digital world.

    About WISeKey

    WISeKey International Holding Ltd (“WISeKey”, SIX: WIHN; Nasdaq: WKEY) is a global leader in cybersecurity, digital identity, and IoT solutions platform. It operates as a Swiss-based holding company through several operational subsidiaries, each dedicated to specific aspects of its technology portfolio. The subsidiaries include (i) SEALSQ Corp (Nasdaq: LAES), which focuses on semiconductors, PKI, and post-quantum technology products, (ii) WISeKey SA which specializes in RoT and PKI solutions for secure authentication and identification in IoT, Blockchain, and AI, (iii) WISeSat AG which focuses on space technology for secure satellite communication, specifically for IoT applications, (iv) WISe.ART Corp which focuses on trusted blockchain NFTs and operates the WISe.ART marketplace for secure NFT transactions, and (v) SEALCOIN AG which focuses on decentralized physical internet with DePIN technology and house the development of the SEALCOIN platform.

    Each subsidiary contributes to WISeKey’s mission of securing the internet while focusing on their respective areas of research and expertise. Their technologies seamlessly integrate into the comprehensive WISeKey platform. WISeKey secures digital identity ecosystems for individuals and objects using Blockchain, AI, and IoT technologies. With over 1.6 billion microchips deployed across various IoT sectors, WISeKey plays a vital role in securing the Internet of Everything. The company’s semiconductors generate valuable Big Data that, when analyzed with AI, enable predictive equipment failure prevention. Trusted by the OISTE/WISeKey cryptographic Root of Trust, WISeKey provides secure authentication and identification for IoT, Blockchain, and AI applications. The WISeKey Root of Trust ensures the integrity of online transactions between objects and people. For more information on WISeKey’s strategic direction and its subsidiary companies, please visit www.wisekey.com.

    Disclaimer
    This communication expressly or implicitly contains certain forward-looking statements concerning WISeKey International Holding Ltd and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of WISeKey International Holding Ltd to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. WISeKey International Holding Ltd is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

    This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and it does not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”), the FinSa’s predecessor legislation or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of WISeKey and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of WISeKey.

    Press and Investor Contacts

    WISeKey International Holding Ltd
    Company Contact: Carlos Moreira
    Chairman & CEO
    Tel: +41 22 594 3000
    info@wisekey.com     		 WISeKey Investor Relations (US) 
    The Equity Group Inc.
    Lena Cati
    Tel: +1 212 836-9611 / lcati@equityny.com

    The MIL Network –

  • MIL-OSI Economics: Benin: An African Pioneer 

    Source: International Monetary Fund

    Benin: An African Pioneer

    January 31, 2025

    Innovation and a strong reform drive have strengthened Benin’s resilience to regional and global challenges and supported progress toward meeting the Sustainable Development Goals.

    Benin faced a number of negative spillovers in 2022: a deteriorating regional security situation at its northern border, the lingering scars of COVID-19, and higher living costs amid the war in Ukraine. To help counter those headwinds, the country tapped IMF support, including a $650 million blended Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangement, complemented by a $200 million Resilience and Sustainability Facility (RSF) in 2023. Development partners’ confidence in the country’s reform program has been reflected in budget support consistently exceeding expectations. Moreover, Benin was among the first countries to re-access the international capital market last year, following a two-year hiatus, with several sovereign credit rating upgrades in recent years.  

    Despite challenges, there are promising signs of economic transformation. Among other achievements, growth has been strong, fiscal adjustment is proceeding while allowing for a significant increase in social spending, and efforts to strengthen governance are gaining ground.

    Following the combined Fifth Review of the ongoing EFF/ECF arrangement and Second Review of the RSF, IMF Country Focus discussed the country’s economic performance with Romuald Wadagni, Senior Minister of State of Economy and Finance for Benin, and Constant Lonkeng, IMF Mission Chief for Benin.

    How is the current reform program affecting the daily lives of Beninese people?

    Finance Minister Wadagni: First and foremost, our ongoing reform program has allowed us to navigate an episode of severe and repeated shocks, with technical and financial support from our development partners. As a result, our economy has shown remarkable resilience, with growth averaging more than 6.5 percent in recent years.

    Economic resilience is helping harness the potential of Benin’s people. A key focus of our reform program is enhancing human capital, as articulated under our people-centric Government Action Program (PAG 2021–26).

    Our Integrated School Feeding Program currently provides free meals to students in 95 percent of elementary schools in rural areas (more than 1.3 million children), with full coverage targeted this year. Lower education is now tuition-free for girls across all of Benin’s 77 communes (estimated 2 million girls), with an ongoing pilot to extend to upper secondary school. We are also putting emphasis on technical education and vocational training to prepare our large youth population to seize job opportunities in high value-added activities.  

    More broadly, our flagship Insurance for Human Capital Enhancement (ARCH) seeks to foster social resilience through various programs including micro-credits, access to healthcare, and pensions. The social registry—established early on under the EFF/ECF with World Bank technical support—is an essential tool for targeting our support to the most vulnerable.  

    How has IMF engagement supported the authorities’ policy agenda?

    IMF Mission Chief Lonkeng: One key design consideration of Benin’s IMF-supported program was balancing financing and fiscal adjustment in a shock-prone environment. Considering Benin’s established track record in macroeconomic management, we opted for a flexible design—a vote of confidence from the IMF.  

    Frontloaded financing supported the country’s appropriately strong counter-cyclical policy response to severe shocks—the IMF disbursed more than 40 percent of the total financing envelope of about 400 percent of Benin’s quota in the first 6 months of the 42-month program to smooth out fiscal adjustment. The EFF/ECF was subsequently complemented by an RSF (120 percent of Benin’s quota) to help enhance the country’s overall socio-economic resilience.  

    The authorities have since been re-building policy space, with domestic revenue mobilization being a key part of this effort and, more broadly, the cornerstone of the authorities’ reform program. A frontloaded tax policy reform under the program complemented efforts to digitalize the tax system to boost revenue collection. As the chart shows, Benin’s tax-to-GDP ratio increased by more than 2 percentage points during 2022–24, far exceeding the average improvement of other countries in this timeframe. 

    There are promising signs of economic transformation. How are you achieving this and what lessons did you learn along the way?

    Finance Minister Wadagni: We first conducted an in-depth diagnostic of our economic and financial situation about a decade ago. We then embarked on a first wave of reforms to lay the foundations for structural transformation, cognizant of the fact that sound public finances, reliable energy, and infrastructure—including digital—are key prerequisites for sustained economic expansion.  

    The ongoing second wave of reforms seek to consolidate our initial achievements and climb up value chains by processing commodities locally. The Glo-Djigbé Industrial Zone—which is dedicated to the local transformation of agricultural products including cotton, cashews, and soybeans—plays a strategic role in this regard. We intend to further develop the zone and, more broadly, pursue the structural transformation of our economy, including through continued modernization and enhanced resilience of agriculture. We will also step up investment in unlocking Benin’s tourism potential and modernizing the Port of Cotonou.

    In doing all of the above, we will expand the social safety nets to reach as many vulnerable people as possible. A key lesson from our experience so far is that sound governance is critical in economic transformation.  

    Benin innovated with the issuance of the first Social Development Goal (SDG) bond in the region – and is now extending this framework to catalyze private climate finance. Can you elaborate?

    Finance Minister Wadagni: We developed an SDG bond framework around the country’s social and climate priorities as an integral part of our development finance strategy. The framework was initially used to issue a €500 million SDG bond in 2021, a first in the region. It has since facilitated the financing of key social and energy transition projects. We intend to leverage the SDG bond framework to catalyze financing for climate change adaptation, resilient agriculture, sustainable ecosystem management, and the energy transition.

    Relatedly, we secured climate financing pledges from our partners during the recent COP29, following the climate finance roundtable that we co-convened in Cotonou with the IMF and the World Bank.

    What has been the key to program engagement in your view, and what do you see as the main challenges ahead?   

    IMF Mission Chief Lonkeng: First and foremost, program ownership has been key. Benin has an established tradition of public consultation around the country’s reform agenda—under the National Development Plan and the Government Action Program. The Fund-supported program therefore had a solid homegrown foundation to build on.  

    Going forward, continued expansion of the tax base, drawing on the country’s recently developed medium-term revenue strategy, would help fund Benin’s large development needs (the country’s median age is 18), and improve the country’s capacity to carry debt and preserve debt sustainability.  

    On the structural front, a continued move away from the traditional transit-centered growth model—supported by a balanced social contract—would foster private sector job creation in higher value-added activities for the large youth population. Enhancing resilience to climate change and maintaining the digitalization drive would also support overall socio-economic resilience in the long-term. All of this would help raise the living standards of the Beninese in a sustained and inclusive manner.

    MIL OSI Economics –

  • MIL-OSI United Kingdom: Prepare to be amazed as the NI Science Fair rolls into town

    Source: Northern Ireland – City of Derry

    Prepare to be amazed as the NI Science Fair rolls into town

    31 January 2025

    Science buffs across Strabane should prepare to be amazed as the NI Science Fair visits the Alley Theatre for a series of exciting events.

    Established in 2014, the NI Science Festival has grown to become the largest celebration of its kind on the island of Ireland, and one of the leading science festivals in Europe.

    For its 11th edition, the festival will present more than 300 events across Northern Ireland, focusing on our rich and diverse natural environment, our engineering and manufacturing heritage, sustainability, technology, the mind and body, and much more.

    The festival’s regional roadshow will touch down in Strabane with a series of events, including Chemistry & the Celts on Friday 14th February at The Alley Theatre. An immersive exploration into the world of the Irish Celts with Scientific Sue, this engaging show, supported by Almac, brings ancient traditions to life, blending the wonders of chemistry with the rich tapestry of Celtic history.

    Also taking place at The Alley is Look Closer where little explorers embark on a fun-filled journey of discovery into nature’s wonders with screenings of BBC/CBeebies Tiny Wonders followed by hands-on experiments in Mini Lab Zones where the budding researchers will get to use real microscopes and take a closer look at fascinating little curiosities from nature. 

    NI Science Festival director Sarah Jones said: “The NI Science Festival is a celebration of science, creativity, and the world around us, designed to be engaging and enjoyable for everyone. Over 12 days, the festival will pop up in venues across Northern Ireland, showcasing the incredible work of local researchers and scientists alongside some well-known guest speakers. This year’s programme is packed with exciting events for all ages, offering something for everyone. It’s an opportunity to embrace the joy of discovery, explore the power of ideas, and celebrate the possibilities science brings to our everyday lives.”

    Dr Frances Weldon, Associate Director STEM Outreach, Almac Group, said: “We are deeply committed to supporting STEM education at Almac and as such we’re delighted to partner with NI Science Festival in the Chemistry & the Celts show and to receive funding from the Arts & Business NI Investment Programme. Chemistry is a core discipline and career area at Almac. This collaborative project delivers entertaining chemistry content through arts and history, sparking children’s curiosity and stimulating them to think about chemistry as part of everyday life.”

    Tickets are available from the Alley Theatre website: www.alley-theatre.com or call the Alley Theatre Box Office on 028 71 384444

    MIL OSI United Kingdom –

  • MIL-OSI: Celebrating 40 Years of the Nasdaq-100 Index® (NDX®)

    Source: GlobeNewswire (MIL-OSI)

    The combined value of all investment products tracking the NDX® ecosystem globally exceeds $500 billion

    94 Exchange Traded Products track NDX® in over 20 countries across 6 continents

    NEW YORK, Jan. 31, 2025 (GLOBE NEWSWIRE) — Nasdaq, Inc. (Nasdaq: NDAQ) proudly marks the 40th anniversary of the Nasdaq-100 Index® (NDX®), the world’s preeminent large-cap growth benchmark. Since its inception on January 31, 1985, the index has redefined innovation and transformed the global investment landscape. Over the past four decades, it has evolved into a powerful symbol of growth, resilience, and the groundbreaking spirit of its constituent companies, shaping industries, inspiring entrepreneurs and investors worldwide.

    The Nasdaq-100 Index® tracks 100 of the largest, non-financial companies listed on the Nasdaq Stock Market. These companies have an enduring legacy of disruption in their respective markets, empowering growth and prosperity across the globe. The index has delivered a 14.25% compound annualized return since its inception, allowing investors around the world to share in that success. This exceptional performance underscores the transformative power of these businesses and their ability to drive long-term value for investors through public markets.

    The Nasdaq-100® has had over 500 members, with six original members still in the index today: Apple, Micron Technology Inc., Intel Corporation, KLA Corporation, PACCAR, and Costco Wholesale Corporation. When the Nasdaq-100® first launched, the median market capitalization of a company in the NDX® was $455 million and the average market capitalization was $580 million. As of December 31, 2024, the median market capitalization of a company in the NDX® was $74 billion, and the average market capitalization was $268 billion.

    Driving the Innovation Economy Through Research and Development

    The companies in the Nasdaq-100® have a history of accelerating change. As a driving force of innovation and economic growth, they spend between 600-1,200% more on research and development compared to companies residing in broad-based US large cap equity indexes1. Moreover, companies that invest more in research and development have delivered above-average performance across much of the 21st century2, and proven to be resilient over time through different market environments.

    “AMD congratulates Nasdaq on celebrating 40 years of the Nasdaq-100 Index,” said Dr. Lisa Su, Chair and Chief Executive Officer, AMD. “We share Nasdaq’s commitment to growth and innovation to deliver value for our stakeholders and are proud to stand alongside the trailblazing companies within this elite group. We look forward to continuing our collaboration with Nasdaq to drive technological and economic advancements in the years to come.”

    “Over the past 40 years, the Nasdaq-100 Index® has grown into a powerful embodiment of innovation, resilience, and unparalleled growth. By providing investors with access to the groundbreaking companies shaping the global economy, the index has not only fueled innovation but also enabled the creation of generational wealth,” said Adena Friedman, Chair and CEO at Nasdaq. “From trendsetting startups to global industry giants, the index is a testament to Nasdaq’s unwavering commitment to support companies at all stages of their journey. As we celebrate this significant milestone, we are not only honored by the extraordinary achievements of the companies within the index, but also reaffirm our mission to champion innovation, empower growth and support the companies and investors that shape the future of markets worldwide.”

    “Today we celebrate the 40th anniversary of the Nasdaq-100 Index®, a globally recognized benchmark of the companies accelerating our economy,” said Emily Spurling, Senior Vice President and Global Head of Indexes at Nasdaq. “This milestone marks a significant moment in our journey as a transparent, rules-based index provider. By creating access to the value chain of leading technology companies across multiple industries, NDX® empowers investors to support and benefit from the next generation of innovation, ensuring they are at the forefront of transformative growth.”

    The Expansive Nasdaq-100® Global Ecosystem

    The characteristics, strength, and significance of the Nasdaq-100® have generated considerable investor demand for access to the index. Subsequently, a global financial ecosystem has developed around NDX®, enabling investors to gain exposure through various investment vehicles tailored to market participants worldwide.

    The combined value of all products tracking the NDX® ecosystem globally exceeds $500 billion. Among the investment vehicles growing at an accelerated rate are Exchange Traded Products, with 94 different Nasdaq-100® products currently trading in over 20 countries across 6 continents. The first and largest of these is the Invesco QQQ ETF, which is the second most liquid ETF in the US and has served as a foundational financial product by providing investors with access to the Nasdaq-100®3.

    “Congratulations to Nasdaq on the 40th anniversary of the Nasdaq-100 Index®,” said Brian Hartigan, Global Head of ETFs and Index Investments, Invesco. “The evolution of the Nasdaq-100 Index® and Invesco QQQ mirrors the growth and development of technology and innovation, positioning the QQQ as one of the most important large-cap growth strategies with an ever-growing investment audience.  We are happy that the long-standing Nasdaq and Invesco collaboration continues to contribute to success of the innovative Nasdaq-100 Index®.”

    Beyond Exchange Traded Products, the NDX® ecosystem has also experienced large scale growth and evolution in other asset classes, including index options and futures. From 2023 to 2024 index options that tracked NDX® have seen a 39.5% volume increase in contracts. Additionally, CME’s Nasdaq 100® futures have seen their average notional value traded daily exceed $200 billion in 20244. These products provide investors with additional avenues to gain exposure to the index, while continuing to trade in ways that are familiar, cost effective, or provide risk management abilities.

    Nasdaq Global Indexes has been creating innovative, market-leading, transparent indexes since 1971. Today, there are over 10,000 indexes that span geographies, asset classes, and diverse families. The indexes are tracked by financial product sponsors across a wide spectrum of investable products and for asset managers to measure risk and performance. Nasdaq also provides exchange listing, custom index, and design solutions to financial organizations worldwide.

    To celebrate the occasion, Nasdaq will host a special closing bell ceremony on Friday, January 31, 2025, commemorating this moment with its long-time clients and partners.

    To learn more about the Nasdaq-100® ecosystem, click here.

    About Nasdaq
    Nasdaq (Nasdaq: NDAQ) is a global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.

    Nasdaq Media Contacts:

    The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular financial product or an overall investment strategy. Neither The Nasdaq OMX Group, Inc. nor any of its affiliates makes any recommendation to buy or sell any financial product or any representation about the financial condition of any company or fund. Statements regarding Nasdaq’s proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED. 

    -NDAQG- 

    1 Refers to the S&P 500, Nasdaq US 500 Large Cap Index, and other indexes comprised of the largest few hundred companies listed in the US weighted by market cap.
    2 Refers to https://indexes.nasdaqomx.com/docs/NDX%20Extended%20Presentation.pdf.
    3 According to Nasdaq ETF Intel as of January 28, 2025.
    4 Refers to https://www.cmegroup.com/openmarkets/equity-index/2024/The-Growth-of-Tech-and-25-Years-of-Nasdaq-Futures.html.

    The MIL Network –

  • MIL-OSI: Former Securitize Capital CEO Wilfred Daye Joins Mercurity Fintech as Chief Strategy Officer and Chaince Securities CEO

    Source: GlobeNewswire (MIL-OSI)

    New York, NY, Jan. 31, 2025 (GLOBE NEWSWIRE) — Mercurity Fintech Holding Inc. (the “Company,” “we,” “us,” “our company,” or “MFH”) (Nasdaq: MFH), a digital fintech group, is pleased to announce that effective February 1, 2025, Wilfred Daye will be joining MFH as Chief Strategy Officer and will also serve as the CEO of JVDA, LLC, a subsidiary of MFH and doing business as “Chaince Securities”. 

    In his dual leadership roles, Daye will focus on driving strategic innovation and operational excellence across both organizations. As Chief Strategy Officer at MFH, Daye will lead the company’s efforts in global expansion and digital asset adoption, bringing a unique blend of strategic insight and market expertise to accelerate the firm’s growth initiatives. His leadership will ensure MFH remains at the forefront of innovation in the rapidly evolving technology landscape. In his capacity as CEO of Chaince Securities, Daye will run a client-centric investment banking and capital formation practice. His vision is to deliver tailored solutions that meet the needs of an increasingly dynamic and sophisticated market.

    With a forward-thinking mindset and extensive expertise in structured credit trading and financial innovation, Daye brings over two decades of leadership at the crossroads of Wall Street and digital innovation. He previously served as CEO of Securitize Capital, the asset management arm of Securitize, a trailblazer in Real-World Asset (RWA) tokenization, and a recognized leader in blockchain-enabled financial solutions. Under his leadership, Securitize successfully tokenized private equity assets for industry giants such as KKR and Hamilton Lane, marking a significant milestone in the adoption of digital assets.

    Daye has also held pivotal roles at some of the world’s leading financial institutions. As a trader at UBS, he specialized in complex cash and synthetic structured products, driving advancements in financial engineering. He also held senior positions at Deutsche Bank and Barclays Capital, where he focused on global credit products. Additionally, he was a key member of the structured credit team at D.B. Zwirn after beginning his career at Lehman Brothers.  

    “What excites me most about joining MFH and Chaince Securities is the unique opportunity to shape the future of finance at a time when innovation and tradition are finding powerful new synergies,” said Wilfred. “Throughout my career, I’ve seen how transformative the right combination of technology and financial expertise can be. I look forward to working alongside our talented teams to build something truly exceptional—a bridge between traditional financial services and the digital future that creates lasting value for our clients and partners.”

    Shi Qiu, CEO of Mercurity Fintech Holding Inc., further commented, “When we envisioned the next chapter of MFH’s growth, we knew we needed a leader who not only understands the complexities of both traditional and digital finance but also shares our commitment to innovation with purpose. In Wilfred, we’ve found that rare combination. His genuine passion for financial innovation and deep understanding of institutional markets makes him the perfect architect for our future. We’re delighted to welcome him to our leadership team.”

    About Mercurity Fintech Holding Inc.
    Mercurity Fintech Holding Inc. is a digital fintech company with subsidiaries specializing in distributed computing and business consultation across North America and the Asia-Pacific region. Our focus is on delivering innovative financial solutions while adhering to principles of compliance, professionalism, and operational efficiency. Our aim is to contribute to the evolution of digital finance by providing secure and innovative financial services to individuals and businesses. Our dedication to compliance, professionalism, and operational excellence ensures that we remain a trusted partner in the rapidly transforming financial landscape. For more information, please visit the Company’s website at https://mercurityfintech.com.

    Forward-Looking Statements
    This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results.

    For more information, please contact:
    International Elite Capital Inc.
    Vicky Chueng
    Tel: +1(646) 866-7989
    Email: mfhfintech@iecapitalusa.com

    The MIL Network –

  • MIL-Evening Report: As Donald Trump plays God in Gaza, Israel acts like spoiled brat

    The Gaza ceasefire deal proves that Israeli politics can only survive if it’s engaged in perpetual war.

    US President Donald Trump has unsettled Arab leaders with his obscene suggestion that Egypt and Jordan absorb Palestinians from Gaza.

    Both Egypt and Jordan have stated that this is a non-starter and will not happen.

    Israeli extremists have welcomed Trump’s comments with the hope that the forced expulsion of Palestinians would pave the way for Jewish settlements in Gaza.

    But the truth is that Israeli leaders likely feel deceived by Trump more than anything else. Benjamin Netanyahu and most of Israeli society were once clamouring for Donald Trump.

    All that has changed since President Trump sent his top Middle East envoy Steve Witkoff to Israel in which Witkoff reportedly lambasted Benjamin Netanyahu and forced him to accept a ceasefire agreement.

    Since then, Israeli leaders and Israeli society, are seemingly taken aback by Trump’s more restrained approach toward the Middle East and desire for a ceasefire.

    While the current ceasefire in place is a precarious endeavour at best, Israeli reactions to the cessation of hostilities highlight a profound point: not only did Netanyahu misread Trump’s intentions, but the entire Israeli political system itself seemingly only thrives during conflict in which the US provides it with unfettered military and diplomatic support.

    Geostrategic calculus
    Firstly, Israel believed that Trump’s second term would likely be a continuation of his first — where the US based its geostrategic calculus in the Middle East around Israel’s interests. This gave Israeli leaders the impression that Trump would give them the green light to attack Iran, resettle and starve Gaza, and formally annex the West Bank.

    However, Benjamin Netanyahu and his extremist ilk failed to take into consideration that Trump likely views blanket Israeli interests as liabilities to both the United States and Trump’s vision for the Middle East.

    Trump blessing an Israel-Iran showdown seems to be off the table. Trump himself stated this and is backing up his words by appointing Washington-based analyst Mike DiMino as a top Department of Defence advisor.

    DiMino, a former fellow at the non-interventionist think tank Defense Priorities, is against war with Iran and has been highly critical of US involvement in the Middle East. Steve Witkoff will also be leading negotiations with Iran.

    The appointment of DiMino and Witkoff has enraged the Washington neoconservative establishment and is a signal to Tel Aviv that Trump will not capitulate to Israel’s hawkish ambitions.

    The Trump effect
     As it pertains to his vision for the Middle East, Trump has been adamant about expanding the Abraham Accords, deepening US military ties with Saudi Arabia, and possibly pioneering Saudi-Israeli “normalisation”.

    The Saudi government has condemned Israel’s actions in Gaza, calling it a genocide and also made it clear that they will not normalise relations with Israel without the creation of a Palestinian state.

    While there is an explicit pro-Israel angle to all these components, none of Trump’s objectives for the Middle East would be feasible if the genocide in Gaza continued or if the US allowed Israel to formally annex the occupied West Bank, something Trump stopped during his first term.

    It is unlikely that a Palestinian state will arise under Trump’s administration; however, Trump has been in contact with Palestinian Authority (PA) President Mahmoud Abbas.

    Trump’s Middle East Adviser Massad Boulos has also facilitated talks between Abbas and Trump. Steve Witkoff has also met with PA official Hussein al-Sheikh in Saudi Arabia to discuss where the PA fits into a post-October 7 Gaza and a possible pathway to a Palestinian state.

    Witkoff’s willingness to meet with PA, along with the quiet yet growing relationship between Trump and Abbas, was likely something Netanyahu did not anticipate and may have also factored into Netanyahu’s acquiescence in Gaza.

    Of equal importance, the Gaza ceasefire deal proves that Israeli politics can only survive if it’s engaged in perpetual war.

    Brutal occupation
    This is evidenced by its brutal occupation of the Palestinians, destroying Gaza, and attacking its neighbours in Syria and Lebanon. Now that Israel is forced to stop its genocide in Gaza, at least for the time being, fissures within the Israeli government are already growing.

    Jewish extremist Itamar Ben Gvir resigned from Netanyahu’s coalition due to the ceasefire after serving as Israel’s national security minister. Finance Minister Bezalel Smotrich also threatened to leave if a ceasefire was enacted.

    Such dynamics within the Israeli government and its necessity for conflict are only possible because the US allows it to happen.

    In providing Israel with unfettered military and diplomatic support, the US allows Israel to torment the Palestinian people. Now that Israel cannot punish Gaza, it has shifted their focus to the West Bank.

    Since the ceasefire’s implementation, the Israeli army has engaged in deadly raids in the Jenin refugee camp which had displaced over 2000 Palestinians. The Israeli army has also imposed a complete siege on the West Bank, shutting down checkpoints to severely restrict the movement of Palestinians.

    All of Israel’s genocidal practices are a direct result of the impunity granted to them by the Biden administration; who willingly refused to impose any consequences for Israel’s blatant violation of US law.

    Joe Biden could have enforced either the Leahy Law or Section 620 I of the Foreign Assistance Act at any time, which would ban weapons from flowing to Israel due to their impediment of humanitarian aid into Gaza and use of US weapons to facilitate grave human rights abuses in Gaza.

    Instead, he chose to undermine US laws to ensure that Israel had everything it facilitate their mass slaughter of Palestinians in Gaza.

    The United States has always held all the cards when it comes to Israel’s hawkish political composition. Israel was simply the executioner of the US’s devastating policies towards Gaza and the broader Palestinian national movement.

    Abdelhalim Abdelrahman is a freelance Palestinian journalist. His work has appeared in The New Arab, The Hill, MSN, and La Razon. Tis article was first published by The New Arab and is republished under Creative Commons.

    Article by AsiaPacificReport.nz

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI: First Hawaiian, Inc. Reports Fourth Quarter 2024 Financial Results and Declares Dividend

    Source: GlobeNewswire (MIL-OSI)

    HONOLULU, Jan. 31, 2025 (GLOBE NEWSWIRE) — First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended December 31, 2024.

    “I’m pleased to report that we finished 2024 with a very strong quarter that was highlighted by good performance across our key earnings drivers. Our loan and deposit balances grew, net interest margin expanded, expenses were well controlled and credit quality remained excellent. We also maintained our commitment to supporting our communities with a $1 million contribution to the First Hawaiian Foundation,” said Bob Harrison, Chairman, President, and CEO. “During the fourth quarter we took action to strengthen our balance sheet and increase our future earnings power by restructuring a portion of our investment portfolio. This action, along with the positive trends we saw in the fourth quarter, positions us very well entering 2025.” 

    On January 29, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on February 28, 2025, to stockholders of record at the close of business on February 14, 2025.

    Additionally, the Company’s Board of Directors adopted a stock repurchase program for up to $100.0 million of its outstanding common stock during 2025.

    Fourth Quarter 2024 Highlights:

    • Restructured a portion of the investment portfolio by selling $290.4 million of low-yielding investment securities and reinvested the sale proceeds into $291.5 million of higher-yielding securities. Recognized a $26.2 million pre-tax ($19.2 million after-tax) loss on the sale of securities.
    • Net income of $52.5 million, or $0.41 per diluted share
    • Total loans and leases increased $166.9 million versus prior quarter
    • Total deposits increased $94.5 million versus prior quarter
    • Net interest margin increased 8 basis points to 3.03%
    • Recorded a $0.8 million negative provision for credit losses
    • Board of Directors declared a quarterly dividend of $0.26 per share

    Balance Sheet

    Total assets were $23.8 billion at December 31, 2024 and September 30, 2024.

    Gross loans and leases were $14.4 billion as of December 31, 2024, an increase of $166.9 million, or 1.2%, from $14.2 billion as of September 30, 2024.

    Total deposits were $20.3 billion as of December 31, 2024, an increase of $94.5 million, or 0.5%, from $20.2 billion as of September 30, 2024.

    Net Interest Income

    Net interest income for the fourth quarter of 2024 was $158.8 million, an increase of $2.0 million, or 1.3%, compared to $156.7 million for the prior quarter.

    The net interest margin was 3.03% in the fourth quarter of 2024, an increase of 8 basis points compared to 2.95% in the prior quarter.

    Provision Expense

    During the quarter ended December 31, 2024, we recorded a $0.8 million negative provision for credit losses. In the quarter ended September 30, 2024, we recorded a $7.4 million provision for credit losses.

    Noninterest Income

    Noninterest income was $29.4 million in the fourth quarter of 2024, a decrease of $23.9 million compared to noninterest income of $53.3 million in the prior quarter. Noninterest income in the fourth quarter of 2024 included a $26.2 million loss on the sale of investment securities.

    Noninterest Expense

    Noninterest expense was $124.1 million in the fourth quarter of 2024, a decrease of $2.0 million compared to noninterest expense of $126.1 million in the prior quarter.

    The efficiency ratio was 65.5% and 59.8% for the quarters ended December 31, 2024 and September 30, 2024, respectively.

    Taxes

    The effective tax rate was 18.9% and 19.6% for the quarters ended December 31, 2024 and September 30, 2024, respectively.

    Asset Quality

    The allowance for credit losses was $160.4 million, or 1.11% of total loans and leases, as of December 31, 2024, compared to $163.7 million, or 1.15% of total loans and leases, as of September 30, 2024. The reserve for unfunded commitments was $32.8 million as of December 31, 2024, compared to $33.7 million as of September 30, 2024. Net charge-offs were $3.4 million, or 0.09% of average loans and leases on an annualized basis, for the quarter ended December 31, 2024, compared to net charge-offs of $3.9 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended September 30, 2024. Total non-performing assets were $20.7 million, or 0.14% of total loans and leases and other real estate owned, on December 31, 2024, compared to total non-performing assets of $17.8 million, or 0.13% of total loans and leases and other real estate owned, on September 30, 2024.

    Capital

    Total stockholders’ equity was $2.6 billion on December 31, 2024 and September 30, 2024.

    The tier 1 leverage, common equity tier 1 and total capital ratios were 9.14%, 12.80% and 13.99%, respectively, on December 31, 2024, compared with 9.14%, 13.03% and 14.25%, respectively, on September 30, 2024.

    The Company repurchased 1.5 million shares of common stock at a total cost of $40.0 million under the stock repurchase program in the fourth quarter. The average cost was $27.14 per share repurchased. Total repurchases in 2024 were $40.0 million.

    As to the stock repurchase program approved for 2025, repurchases of shares of the Company’s common stock may be conducted through open-market purchases, which may include purchases under a trading plan adopted pursuant to Securities and Exchange Commission Rule 10b5-1, or through privately negotiated transactions. The timing and exact amount of share repurchases, if any, will be subject to management’s discretion and various factors, including the Company’s capital position and financial performance, as well as market conditions. The repurchase program may be suspended, terminated or modified at any time for any reason.

    First Hawaiian, Inc.

    First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, founded in 1858 under the name Bishop & Company, is Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc., visit the Company’s website, www.fhb.com.

    Conference Call Information

    First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 8:00 a.m. Hawaii Time.

    To access the call by phone, please register via the following link: https://register.vevent.com/register/BI80003c73e95b445aa5fe62db794097bb, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.

    A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location.

    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 our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2023 and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024.

    Use of Non-GAAP Financial Measures

    Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy.

    Table 14 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.

                                           
    Financial Highlights   Table 1
        For the Three Months Ended     For the Year Ended  
        December 31, 
    		     September 30,      December 31,      December 31,   
    (dollars in thousands, except per share data)   2024     2024     2023     2024     2023  
    Operating Results:                                        
    Net interest income   $ 158,753     $ 156,707     $ 151,793     $ 622,738     $ 636,127  
    (Benefit) provision for credit losses     (750 )     7,400       5,330       14,750       26,630  
    Noninterest income     29,376       53,288       58,347       185,803       200,815  
    Noninterest expense     124,143       126,147       142,307       501,189       501,138  
    Net income     52,496       61,492       47,502       230,129       234,983  
    Basic earnings per share     0.41       0.48       0.37       1.80       1.84  
    Diluted earnings per share     0.41       0.48       0.37       1.79       1.84  
    Dividends declared per share     0.26       0.26       0.26       1.04       1.04  
    Dividend payout ratio     63.41 %     54.17 %     70.27 %     58.10 %     56.52 %
    Performance Ratios(1):                                      
    Net interest margin     3.03 %     2.95 %     2.81 %     2.95 %     2.92 %
    Efficiency ratio     65.51 %     59.77 %     67.28 %     61.57 %     59.48 %
    Return on average total assets     0.88 %     1.02 %     0.77 %     0.96 %     0.95 %
    Return on average tangible assets (non-GAAP)(2)     0.92 %     1.06 %     0.81 %     1.00 %     0.99 %
    Return on average total stockholders’ equity     7.94 %     9.45 %     7.94 %     9.00 %      10.01 %
    Return on average tangible stockholders’ equity (non-GAAP)(2)     12.78 %     15.35 %     13.66 %     14.74 %     17.39 %
    Average Balances:                                      
    Average loans and leases   $ 14,276,107     $ 14,304,806     $ 14,349,322     $ 14,312,759     $ 14,266,291  
    Average earning assets     21,079,951       21,328,882       21,688,816       21,284,169       21,952,009  
    Average assets     23,795,735       24,046,696       24,404,727       23,996,723       24,625,445  
    Average deposits     20,249,573       20,367,805       20,908,221       20,373,975       21,160,155  
    Average stockholders’ equity     2,629,600       2,588,806       2,374,669       2,557,215       2,346,713  
    Market Value Per Share:                                      
    Closing     25.95       23.15       22.86       25.95       22.86  
    High     28.80       26.18       23.22       28.80       28.28  
    Low     22.08       20.28       17.18       19.48       15.08  
                             
        As of     As of     As of  
        December 31,      September 30,      December 31,   
    (dollars in thousands, except per share data)   2024     2024     2023  
    Balance Sheet Data:                        
    Loans and leases   $ 14,408,258     $ 14,241,370     $ 14,353,497  
    Total assets     23,828,186       23,780,285       24,926,474  
    Total deposits     20,322,216       20,227,702       21,332,657  
    Short-term borrowings     250,000       250,000       500,000  
    Total stockholders’ equity     2,617,486       2,648,034       2,486,066  
                             
    Per Share of Common Stock:                        
    Book value   $ 20.70     $ 20.71     $ 19.48  
    Tangible book value (non-GAAP)(2)     12.83       12.92       11.68  
                             
    Asset Quality Ratios:                        
    Non-accrual loans and leases / total loans and leases     0.14 %     0.13 %     0.13 %
    Allowance for credit losses for loans and leases / total loans and leases     1.11 %     1.15 %     1.09 %
                             
    Capital Ratios:                        
    Common Equity Tier 1 Capital Ratio     12.80 %     13.03 %     12.39 %
    Tier 1 Capital Ratio     12.80 %     13.03 %     12.39 %
    Total Capital Ratio     13.99 %     14.25 %     13.57 %
    Tier 1 Leverage Ratio     9.14 %     9.14 %     8.64 %
    Total stockholders’ equity to total assets     10.98 %     11.14 %     9.97 %
    Tangible stockholders’ equity to tangible assets (non-GAAP)(2)     7.10 %     7.25 %     6.23 %
                             
    Non-Financial Data:                        
    Number of branches     48       48       50  
    Number of ATMs     273       273       275  
    Number of Full-Time Equivalent Employees     1,997       2,022       2,089  

    (1) Except for the efficiency ratio, amounts are annualized for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023.

    (2) Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 14, GAAP to Non-GAAP Reconciliation.

                                         
    Consolidated Statements of Income   Table 2
        For the Three Months Ended   For the Year Ended
        December 31,    September 30,    December 31,    December 31, 
    (dollars in thousands, except per share amounts)   2024     2024   2023   2024     2023
    Interest income                                    
    Loans and lease financing   $ 198,347     $ 205,682     $ 196,276     $ 805,941     $ 748,053  
    Available-for-sale investment securities     12,767       12,850       19,033       54,306       74,241  
    Held-to-maturity investment securities     17,071       16,937       17,987       69,376       73,497  
    Other     11,977       14,527       7,734       50,421       27,788  
    Total interest income     240,162       249,996       241,030       980,044       923,579  
    Interest expense                                    
    Deposits     78,465       87,500       82,215       335,717       258,221  
    Short-term and long-term borrowings     2,685       5,397       6,232       19,988       26,289  
    Other     259       392       790       1,601       2,942  
    Total interest expense     81,409       93,289       89,237       357,306       287,452  
    Net interest income     158,753       156,707       151,793       622,738       636,127  
    (Benefit) provision for credit losses     (750 )     7,400       5,330       14,750       26,630  
    Net interest income after (benefit) provision for credit losses     159,503       149,307       146,463       607,988       609,497  
    Noninterest income                                    
    Service charges on deposit accounts     7,968       7,783       7,646       31,090       29,647  
    Credit and debit card fees     14,834       17,533       16,381       64,401       63,888  
    Other service charges and fees     13,132       11,790       9,535       45,862       37,299  
    Trust and investment services income     9,449       9,077       9,645       38,306       38,449  
    Bank-owned life insurance     5,713       4,502       5,063       17,861       15,326  
    Investment securities (losses) gains, net     (26,171 )     —       792       (26,171 )     792  
    Other     4,451       2,603       9,285       14,454       15,414  
    Total noninterest income     29,376       53,288       58,347       185,803       200,815  
    Noninterest expense                                    
    Salaries and employee benefits     59,003       59,563       55,882       235,565       225,755  
    Contracted services and professional fees     14,472       14,634       16,219       60,912       66,423  
    Occupancy     7,708       6,945       7,561       28,971       29,608  
    Equipment     14,215       13,078       12,547       53,902       45,109  
    Regulatory assessment and fees     3,745       3,412       20,412       19,091       32,073  
    Advertising and marketing     1,529       1,813       1,441       7,719       7,615  
    Card rewards program     7,926       8,678       7,503       33,831       31,627  
    Other     15,545       18,024       20,742       61,198       62,928  
    Total noninterest expense     124,143       126,147       142,307       501,189       501,138  
    Income before provision for income taxes     64,736       76,448       62,503       292,602       309,174  
    Provision for income taxes     12,240       14,956       15,001       62,473       74,191  
    Net income   $ 52,496     $ 61,492     $ 47,502     $ 230,129     $ 234,983  
    Basic earnings per share   $ 0.41     $ 0.48     $ 0.37     $ 1.80     $ 1.84  
    Diluted earnings per share   $ 0.41     $ 0.48     $ 0.37     $ 1.79     $ 1.84  
    Basic weighted-average outstanding shares     127,350,626       127,886,167       127,612,734       127,702,573       127,567,547  
    Diluted weighted-average outstanding shares     128,167,502       128,504,035       128,028,964       128,325,865       127,915,873  
                       
    Consolidated Balance Sheets   Table 3
        December 31,    September 30,    December 31, 
    (dollars in thousands, except share amount)   2024     2024     2023  
    Assets                  
    Cash and due from banks   $ 258,057     $ 252,209     $ 185,015  
    Interest-bearing deposits in other banks     912,133       820,603       1,554,882  
    Investment securities:                  
    Available-for-sale, at fair value (amortized cost: $2,190,448 as of December 31, 2024, $2,290,781 as of September 30, 2024 and $2,558,675 as of December 31, 2023)     1,926,516       2,055,959       2,255,336  
    Held-to-maturity, at amortized cost (fair value: $3,262,509 as of December 31, 2024, $3,475,143 as of September 30, 2024 and $3,574,856 as of December 31, 2023)     3,790,650       3,853,697       4,041,449  
    Loans held for sale     —       —       190  
    Loans and leases     14,408,258       14,241,370       14,353,497  
    Less: allowance for credit losses     160,393       163,700       156,533  
    Net loans and leases     14,247,865       14,077,670       14,196,964  
                       
    Premises and equipment, net     288,530       287,036       281,461  
    Accrued interest receivable     79,979       81,875       84,417  
    Bank-owned life insurance     491,890       490,135       479,907  
    Goodwill     995,492       995,492       995,492  
    Mortgage servicing rights     5,078       5,236       5,699  
    Other assets     831,996       860,373       845,662  
    Total assets   $ 23,828,186     $ 23,780,285     $ 24,926,474  
    Liabilities and Stockholders’ Equity                  
    Deposits:                  
    Interest-bearing   $ 13,347,068     $ 13,427,674     $ 13,749,095  
    Noninterest-bearing     6,975,148       6,800,028       7,583,562  
    Total deposits     20,322,216       20,227,702       21,332,657  
    Short-term borrowings     250,000       250,000       500,000  
    Retirement benefits payable     97,135       100,448       103,285  
    Other liabilities     541,349       554,101       504,466  
    Total liabilities     21,210,700       21,132,251       22,440,408  
                       
    Stockholders’ equity                  
    Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,748,847 / 126,422,898 shares as of December 31, 2024, issued/outstanding: 141,735,601 / 127,886,167 shares as of September 30, 2024 and issued/outstanding: 141,340,539 / 127,618,761 shares as of December 31, 2023)     1,417       1,417       1,413  
    Additional paid-in capital     2,560,380       2,558,158       2,548,250  
    Retained earnings     934,048       915,062       837,859  
    Accumulated other comprehensive loss, net     (463,994 )     (452,658 )     (530,210 )
    Treasury stock (15,325,949 shares as of December 31, 2024, 13,849,434 shares as of September 30, 2024 and 13,721,778 shares as of December 31, 2023)     (414,365 )     (373,945 )     (371,246 )
    Total stockholders’ equity     2,617,486       2,648,034       2,486,066  
    Total liabilities and stockholders’ equity   $ 23,828,186     $ 23,780,285     $ 24,926,474  
                                                       
    Average Balances and Interest Rates                                               Table 4
        Three Months Ended   Three Months Ended   Three Months Ended  
        December 31, 2024   September 30, 2024   December 31, 2023  
        Average   Income/   Yield/   Average   Income/   Yield/   Average   Income/   Yield/  
    (dollars in millions)   Balance   Expense   Rate   Balance   Expense   Rate   Balance   Expense   Rate  
    Earning Assets                                                  
    Interest-Bearing Deposits in Other Banks   $ 948.9   $ 11.3   4.75 % $ 1,020.4   $ 13.9   5.40 % $ 568.0   $ 7.8   5.39 %
    Available-for-Sale Investment Securities                                                  
    Taxable     1,987.7     12.7   2.56     2,062.6     12.8   2.48     2,598.4     19.0   2.92  
    Non-Taxable     1.4     —   5.30     1.5     —   5.06     1.9     —   5.12  
    Held-to-Maturity Investment Securities                                                  
    Taxable     3,224.8     13.9   1.72     3,288.2     13.8   1.67     3,472.1     14.8   1.70  
    Non-Taxable     601.7     3.9   2.56     602.3     3.7   2.46     603.9     3.9   2.58  
    Total Investment Securities     5,815.6     30.5   2.10     5,954.6     30.3   2.03     6,676.3     37.7   2.25  
    Loans Held for Sale     1.3     —   5.75     2.2     —   5.64     0.7     —   7.41  
    Loans and Leases(1)                                                  
    Commercial and industrial     2,157.8     35.2   6.50     2,165.3     38.0   6.98     2,148.1     36.7   6.78  
    Commercial real estate     4,333.1     68.9   6.33     4,278.3     71.6   6.67     4,356.3     71.4   6.51  
    Construction     990.7     17.4   6.99     1,040.7     20.3   7.74     888.7     16.7   7.45  
    Residential:                                                  
    Residential mortgage     4,183.5     40.8   3.90     4,204.5     40.4   3.84     4,294.8     38.8   3.61  
    Home equity line     1,157.1     13.3   4.55     1,158.5     13.2   4.52     1,174.8     11.3   3.83  
    Consumer     1,033.2     19.0   7.29     1,035.3     18.7   7.19     1,132.4     18.4   6.43  
    Lease financing     420.7     4.4   4.18     422.2     4.0   3.72     354.2     3.6   4.03  
    Total Loans and Leases     14,276.1     199.0   5.55     14,304.8     206.2   5.74     14,349.3     196.9   5.45  
    Other Earning Assets     38.1     0.7   6.73     46.9     0.7   5.83     94.5     —   0.06  
    Total Earning Assets(2)     21,080.0     241.5   4.56     21,328.9     251.1   4.69     21,688.8     242.4   4.44  
    Cash and Due from Banks     226.2               242.3               240.8            
    Other Assets     2,489.5               2,475.5               2,475.1            
    Total Assets   $ 23,795.7             $ 24,046.7             $ 24,404.7            
                                                       
    Interest-Bearing Liabilities                                                  
    Interest-Bearing Deposits                                                  
    Savings   $ 5,940.3   $ 21.1   1.42 % $ 5,963.1   $ 23.6   1.57 % $ 6,067.2   $ 22.4   1.46 %
    Money Market     4,053.6     26.6   2.61     4,179.5     31.9   3.04     3,905.0     27.5   2.79  
    Time     3,362.0     30.8   3.64     3,327.3     32.0   3.83     3,390.7     32.3   3.78  
    Total Interest-Bearing Deposits     13,355.9     78.5   2.34     13,469.9     87.5   2.58     13,362.9     82.2   2.44  
    Other Short-Term Borrowings     250.0     2.7   4.27     451.1     5.4   4.76     515.2     6.2   4.80  
    Other Interest-Bearing Liabilities     25.3     0.2   4.07     22.4     0.4   6.97     42.1     0.8   7.44  
    Total Interest-Bearing Liabilities     13,631.2     81.4   2.38     13,943.4     93.3   2.66     13,920.2     89.2   2.54  
    Net Interest Income         $ 160.1             $ 157.8             $ 153.2      
    Interest Rate Spread(3)               2.18 %             2.03 %             1.90 %
    Net Interest Margin(4)               3.03 %             2.95 %             2.81 %
    Noninterest-Bearing Demand Deposits     6,893.7               6,897.9               7,545.3            
    Other Liabilities     641.2               616.6               564.5            
    Stockholders’ Equity     2,629.6               2,588.8               2,374.7            
    Total Liabilities and Stockholders’ Equity   $ 23,795.7             $ 24,046.7             $ 24,404.7            

    (1) Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

    (2) Interest income includes taxable-equivalent basis adjustments of $1.4 million, $1.1 million and $1.4 million for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively.

    (3) Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis.

    (4) Net interest margin is net interest income annualized for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, on a fully taxable-equivalent basis, divided by average total earning assets.

                                               
    Average Balances and Interest Rates                                       Table 5
        Year Ended   Year Ended  
        December 31, 2024   December 31, 2023  
        Average   Income/   Yield/   Average   Income/   Yield/  
    (dollars in millions)   Balance   Expense   Rate   Balance   Expense   Rate  
    Earning Assets                                          
    Interest-Bearing Deposits in Other Banks   $ 900.8     $ 47.3     5.25 % $ 512.3     $ 26.5     5.18 %
    Available-for-Sale Investment Securities                                          
    Taxable     2,090.0       54.2     2.60     2,871.8       73.8     2.57  
    Non-Taxable     1.5       0.1     5.45     10.2       0.6     5.55  
    Held-to-Maturity Investment Securities                                          
    Taxable     3,321.6       56.6     1.70     3,579.0       60.7     1.70  
    Non-Taxable     602.6       15.6     2.58     607.7       15.9     2.61  
    Total Investment Securities     6,015.7       126.5     2.10     7,068.7       151.0     2.14  
    Loans Held for Sale     1.3       0.1     6.02     0.4       —     6.63  
    Loans and Leases(1)                                          
    Commercial and industrial     2,172.4       148.6     6.84     2,182.3       141.0     6.46  
    Commercial real estate     4,310.1       282.3     6.55     4,257.9       266.0     6.25  
    Construction     985.4       73.5     7.46     877.7       62.1     7.08  
    Residential:                                          
    Residential mortgage     4,220.2       163.4     3.87     4,308.0       156.4     3.63  
    Home equity line     1,162.9       51.0     4.39     1,131.1       39.3     3.47  
    Consumer     1,051.5       73.4     6.98     1,178.6       71.5     6.07  
    Lease financing     410.3       16.3     3.98     330.7       14.1     4.26  
    Total Loans and Leases     14,312.8       808.5     5.65     14,266.3       750.4     5.26  
    Other Earning Assets     53.6       3.1     5.88     104.3       1.3     1.20  
    Total Earning Assets(2)     21,284.2       985.5     4.63     21,952.0       929.2     4.23  
    Cash and Due from Banks     238.3                   265.1                
    Other Assets     2,474.2                   2,408.3                
    Total Assets   $ 23,996.7                 $ 24,625.4                
                                               
    Interest-Bearing Liabilities                                          
    Interest-Bearing Deposits                                          
    Savings   $ 5,990.7     $ 91.6     1.53 % $ 6,124.7     $ 71.5     1.17 %
    Money Market     4,064.0       117.8     2.90     3,869.1       86.1     2.22  
    Time     3,324.8       126.3     3.80     3,040.0       100.6     3.31  
    Total Interest-Bearing Deposits     13,379.5       335.7     2.51     13,033.8       258.2     1.98  
    Federal Funds Purchased     —       —     —     17.2       0.8     4.45  
    Other Short-Term Borrowings     424.9       20.0     4.70     261.9       13.0     4.98  
    Long-Term Borrowings     —       —     —     261.6       12.5     4.78  
    Other Interest-Bearing Liabilities     29.6       1.6     5.39     57.1       3.0     5.15  
    Total Interest-Bearing Liabilities     13,834.0       357.3     2.58     13,631.6       287.5     2.11  
    Net Interest Income           $ 628.2                 $ 641.7        
    Interest Rate Spread(3)                   2.05 %                 2.12 %
    Net Interest Margin(4)                   2.95 %                 2.92 %
    Noninterest-Bearing Demand Deposits     6,994.5                   8,126.4                
    Other Liabilities     611.0                   520.7                
    Stockholders’ Equity     2,557.2                   2,346.7                
    Total Liabilities and Stockholders’ Equity   $ 23,996.7                 $ 24,625.4                

    (1) Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

    (2) Interest income includes taxable-equivalent basis adjustments of $5.4 million and $5.6 million for the years ended December 31, 2024 and 2023, respectively.

    (3) Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis.

    (4) Net interest margin is net interest income annualized for the years ended December 31, 2024 and 2023, on a fully taxable-equivalent basis, divided by average total earning assets.

                       
    Analysis of Change in Net Interest Income                 Table 6
        Three Months Ended December 31, 2024
        Compared to September 30, 2024
    (dollars in millions)   Volume   Rate   Total (1)
    Change in Interest Income:                  
    Interest-Bearing Deposits in Other Banks   $ (1.0 )   $ (1.6 )   $ (2.6 )
    Available-for-Sale Investment Securities                  
    Taxable     (0.5 )     0.4       (0.1 )
    Held-to-Maturity Investment Securities                  
    Taxable     (0.3 )     0.4       0.1  
    Non-Taxable     —       0.2       0.2  
    Total Investment Securities     (0.8 )     1.0       0.2  
    Loans and Leases                  
    Commercial and industrial     (0.1 )     (2.7 )     (2.8 )
    Commercial real estate     0.9       (3.6 )     (2.7 )
    Construction     (1.0 )     (1.9 )     (2.9 )
    Residential:                  
    Residential mortgage     (0.2 )     0.6       0.4  
    Home equity line     —       0.1       0.1  
    Consumer     —       0.3       0.3  
    Lease financing     —       0.4       0.4  
    Total Loans and Leases     (0.4 )     (6.8 )     (7.2 )
    Other Earning Assets     (0.1 )     0.1       —  
    Total Change in Interest Income     (2.3 )     (7.3 )     (9.6 )
                       
    Change in Interest Expense:                  
    Interest-Bearing Deposits                  
    Savings     (0.1 )     (2.4 )     (2.5 )
    Money Market     (0.9 )     (4.4 )     (5.3 )
    Time     0.3       (1.5 )     (1.2 )
    Total Interest-Bearing Deposits     (0.7 )     (8.3 )     (9.0 )
    Other Short-Term Borrowings     (2.2 )     (0.5 )     (2.7 )
    Other Interest-Bearing Liabilities     —       (0.2 )     (0.2 )
    Total Change in Interest Expense     (2.9 )     (9.0 )     (11.9 )
    Change in Net Interest Income   $ 0.6     $ 1.7     $ 2.3  

    (1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

                       
    Analysis of Change in Net Interest Income                 Table 7
        Three Months Ended December 31, 2024
        Compared to December 31, 2023
    (dollars in millions)   Volume   Rate   Total (1)
    Change in Interest Income:                  
    Interest-Bearing Deposits in Other Banks   $ 4.6     $ (1.1 )   $ 3.5  
    Available-for-Sale Investment Securities                  
    Taxable     (4.1 )     (2.2 )     (6.3 )
    Held-to-Maturity Investment Securities                  
    Taxable     (1.1 )     0.2       (0.9 )
    Total Investment Securities     (5.2 )     (2.0 )     (7.2 )
    Loans and Leases                  
    Commercial and industrial     0.1       (1.6 )     (1.5 )
    Commercial real estate     (0.4 )     (2.1 )     (2.5 )
    Construction     1.8       (1.1 )     0.7  
    Residential:                  
    Residential mortgage     (1.0 )     3.0       2.0  
    Home equity line     (0.1 )     2.1       2.0  
    Consumer     (1.7 )     2.3       0.6  
    Lease financing     0.7       0.1       0.8  
    Total Loans and Leases     (0.6 )     2.7       2.1  
    Other Earning Assets     —       0.7       0.7  
    Total Change in Interest Income     (1.2 )     0.3       (0.9 )
                       
    Change in Interest Expense:                  
    Interest-Bearing Deposits                  
    Savings     (0.6 )     (0.7 )     (1.3 )
    Money Market     1.0       (1.9 )     (0.9 )
    Time     (0.2 )     (1.3 )     (1.5 )
    Total Interest-Bearing Deposits     0.2       (3.9 )     (3.7 )
    Other Short-Term Borrowings     (2.9 )     (0.6 )     (3.5 )
    Other Interest-Bearing Liabilities     (0.3 )     (0.3 )     (0.6 )
    Total Change in Interest Expense     (3.0 )     (4.8 )     (7.8 )
    Change in Net Interest Income   $ 1.8     $ 5.1     $ 6.9  

    (1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

                       
    Analysis of Change in Net Interest Income                 Table 8
        Year Ended December 31, 2024
        Compared to December 31, 2023
    (dollars in millions)   Volume   Rate   Total (1)
    Change in Interest Income:                  
    Interest-Bearing Deposits in Other Banks   $ 20.4     $ 0.4     $ 20.8  
    Available-for-Sale Investment Securities                  
    Taxable     (20.4 )     0.8       (19.6 )
    Non-Taxable     (0.5 )     —       (0.5 )
    Held-to-Maturity Investment Securities                  
    Taxable     (4.1 )     —       (4.1 )
    Non-Taxable     (0.1 )     (0.2 )     (0.3 )
    Total Investment Securities     (25.1 )     0.6       (24.5 )
    Loans Held for Sale     0.1       —       0.1  
    Loans and Leases                  
    Commercial and industrial     (0.7 )     8.3       7.6  
    Commercial real estate     3.3       13.0       16.3  
    Construction     7.9       3.5       11.4  
    Residential:                  
    Residential mortgage     (3.2 )     10.2       7.0  
    Home equity line     1.1       10.6       11.7  
    Consumer     (8.2 )     10.1       1.9  
    Lease financing     3.2       (1.0 )     2.2  
    Total Loans and Leases     3.4       54.7       58.1  
    Other Earning Assets     (0.9 )     2.7       1.8  
    Total Change in Interest Income     (2.1 )     58.4       56.3  
                       
    Change in Interest Expense:                  
    Interest-Bearing Deposits                  
    Savings     (1.6 )     21.7       20.1  
    Money Market     4.5       27.2       31.7  
    Time     10.0       15.7       25.7  
    Total Interest-Bearing Deposits     12.9       64.6       77.5  
    Federal Funds Purchased     (0.4 )     (0.4 )     (0.8 )
    Other Short-Term Borrowings     7.7       (0.7 )     7.0  
    Long-Term Borrowings     (6.3 )     (6.2 )     (12.5 )
    Other Interest-Bearing Liabilities     (1.5 )     0.1       (1.4 )
    Total Change in Interest Expense     12.4       57.4       69.8  
    Change in Net Interest Income   $ (14.5 )   $ 1.0     $ (13.5 )

    (1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

                             
    Loans and Leases                     Table 9
        December 31,    September 30,    December 31, 
    (dollars in thousands)   2024   2024   2023
    Commercial and industrial   $ 2,247,428     $ 2,110,077     $ 2,165,349  
    Commercial real estate     4,463,992       4,265,289       4,340,243  
    Construction     918,326       1,056,249       900,292  
    Residential:                        
    Residential mortgage     4,168,154       4,187,060       4,283,315  
    Home equity line     1,151,739       1,159,823       1,174,588  
    Total residential     5,319,893       5,346,883       5,457,903  
    Consumer     1,023,969       1,030,044       1,109,901  
    Lease financing     434,650       432,828       379,809  
    Total loans and leases   $ 14,408,258     $ 14,241,370     $ 14,353,497  
                             
    Deposits                     Table 10
        December 31,    September 30,    December 31, 
    (dollars in thousands)   2024   2024   2023
    Demand   $ 6,975,148     $ 6,800,028     $ 7,583,562  
    Savings     6,021,364       5,896,029       6,445,084  
    Money Market     4,027,334       4,129,381       3,847,853  
    Time     3,298,370       3,402,264       3,456,158  
    Total Deposits   $ 20,322,216     $ 20,227,702     $ 21,332,657  
                             
    Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More                     Table 11
        December 31,    September 30,    December 31, 
    (dollars in thousands)   2024   2024   2023
    Non-Performing Assets                        
    Non-Accrual Loans and Leases                        
    Commercial Loans:                        
    Commercial and industrial   $ 329     $ 934     $ 970  
    Commercial real estate     411       152       2,953  
    Total Commercial Loans     740       1,086       3,923  
    Residential Loans:                        
    Residential mortgage     12,768       9,103       7,620  
    Home equity line     7,171       7,645       7,052  
    Total Residential Loans     19,939       16,748       14,672  
    Total Non-Accrual Loans and Leases     20,679       17,834       18,595  
    Total Non-Performing Assets   $ 20,679     $ 17,834     $ 18,595  
                             
    Accruing Loans and Leases Past Due 90 Days or More                        
    Commercial Loans:                        
    Commercial and industrial   $ 1,432     $ 529     $ 494  
    Commercial real estate     —       568       300  
    Construction     536       —       —  
    Total Commercial Loans     1,968       1,097       794  
    Residential mortgage     1,317       931       —  
    Consumer     2,734       2,515       2,702  
    Total Accruing Loans and Leases Past Due 90 Days or More   $ 6,019     $ 4,543     $ 3,496  
                             
    Total Loans and Leases   $ 14,408,258     $ 14,241,370     $ 14,353,497  
                                   
    Allowance for Credit Losses and Reserve for Unfunded Commitments   Table 12
        For the Three Months Ended   For the Year Ended
        December 31,    September 30,    December 31,    December 31,    December 31, 
    (dollars in thousands)   2024   2024   2023   2024   2023
    Balance at Beginning of Period   $ 197,397     $ 193,930     $ 192,570     $ 192,138     $ 177,735  
    Loans and Leases Charged-Off                              
    Commercial Loans:                              
    Commercial and industrial     (851 )     (1,178 )     (910 )     (3,615 )     (3,482 )
    Commercial real estate     —       (400 )     (2,500 )     (400 )     (2,500 )
    Total Commercial Loans     (851 )     (1,578 )     (3,410 )     (4,015 )     (5,982 )
    Residential Loans:                              
    Residential mortgage     —       —       —       —       (122 )
    Home equity line     —       —       (20 )     —       (292 )
    Total Residential Loans     —       —       (20 )     —       (414 )
    Consumer     (4,774 )     (4,192 )     (4,147 )     (18,002 )     (17,110 )
    Total Loans and Leases Charged-Off     (5,625 )     (5,770 )     (7,577 )     (22,017 )     (23,506 )
    Recoveries on Loans and Leases Previously Charged-Off                              
    Commercial and industrial     298       160       171       919       3,346  
    Residential Loans:                              
    Residential mortgage     30       31       31       119       141  
    Home equity line     32       86       163       274       702  
    Total Residential Loans     62       117       194       393       843  
    Consumer     1,858       1,560       1,450       7,057       7,090  
    Total Recoveries on Loans and Leases Previously Charged-Off     2,218       1,837       1,815       8,369       11,279  
    Net Loans and Leases Charged-Off     (3,407 )     (3,933 )     (5,762 )     (13,648 )     (12,227 )
    (Benefit) Provision for Credit Losses     (750 )     7,400       5,330       14,750       26,630  
    Balance at End of Period   $ 193,240     $ 197,397     $ 192,138     $ 193,240     $ 192,138  
    Components:                              
    Allowance for Credit Losses   $ 160,393     $ 163,700     $ 156,533     $ 160,393     $ 156,533  
    Reserve for Unfunded Commitments     32,847       33,697       35,605       32,847       35,605  
    Total Allowance for Credit Losses and Reserve for Unfunded Commitments   $ 193,240     $ 197,397     $ 192,138     $ 193,240     $ 192,138  
    Average Loans and Leases Outstanding   $ 14,276,107     $ 14,304,806     $ 14,349,322     $ 14,312,759     $ 14,266,291  
    Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1)     0.09 %     0.11 %     0.16 %     0.10 %     0.09 %
    Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding     1.11 %     1.15 %     1.09 %     1.11 %      1.09 %
    Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases     7.76x     9.18x     8.42x     7.76x     8.42x

    (1) Annualized for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023.

                                                           
    Loans and Leases by Year of Origination and Credit Quality Indicator     Table 13
                                                  Revolving      
                                                  Loans      
                                                  Converted      
        Term Loans   Revolving   to Term      
        Amortized Cost Basis by Origination Year   Loans   Loans      
                                            Amortized   Amortized      
    (dollars in thousands)   2024   2023   2022   2021   2020   Prior   Cost Basis   Cost Basis   Total
    Commercial Lending                                                      
    Commercial and Industrial                                                      
    Risk rating:                                                      
    Pass   $ 163,980   $ 73,554   $ 185,433   $ 249,532   $ 17,775   $ 256,119   $ 1,118,075   $ 14,336   $ 2,078,804
    Special Mention     808     2,385     1,209     68     300     1,322     41,520     —     47,612
    Substandard     —     —     8,096     196     309     1,114     26,089     —     35,804
    Other (1)     17,132     8,928     6,937     2,797     765     1,279     47,370     —     85,208
    Total Commercial and Industrial     181,920     84,867     201,675     252,593     19,149     259,834     1,233,054     14,336     2,247,428
    Current period gross charge-offs     —     578     335     105     221     2,376     —     —     3,615
                                                           
    Commercial Real Estate                                                      
    Risk rating:                                                      
    Pass     322,405     369,948     832,005     634,722     308,156     1,720,243     116,682     7,703     4,311,864
    Special Mention     9,014     2,252     7,510     41,399     3,265     10,860     11,861     —     86,161
    Substandard     —     —     54,952     1,002     —     9,732     148     —     65,834
    Other (1)     —     —     —     —     —     133     —     —     133
    Total Commercial Real Estate     331,419     372,200     894,467     677,123     311,421     1,740,968     128,691     7,703     4,463,992
    Current period gross charge-offs     —     —     —     —     —     400     —     —     400
                                                           
    Construction                                                      
    Risk rating:                                                      
    Pass     91,583     198,382     332,000     186,682     41,596     13,824     14,972     —     879,039
    Special Mention     —     —     —     —     —     155     —     —     155
    Other (1)     12,482     9,688     10,861     1,561     1,199     2,644     697     —     39,132
    Total Construction     104,065     208,070     342,861     188,243     42,795     16,623     15,669     —     918,326
    Current period gross charge-offs     —     —     —     —     —     —     —     —     —
                                                           
    Lease Financing                                                      
    Risk rating:                                                      
    Pass     149,615     101,684     60,898     14,328     17,703     84,663     —     —     428,891
    Special Mention     —     —     —     220     —     —     —     —     220
    Substandard     4,657     565     317     —     —     —     —     —     5,539
    Total Lease Financing     154,272     102,249     61,215     14,548     17,703     84,663     —     —     434,650
    Current period gross charge-offs     —     —     —     —     —     —     —     —     —
                                                           
    Total Commercial Lending   $ 771,676   $ 767,386   $ 1,500,218   $ 1,132,507   $ 391,068   $ 2,102,088   $ 1,377,414   $ 22,039   $ 8,064,396
    Current period gross charge-offs   $ —   $ 578   $ 335   $ 105   $ 221   $ 2,776   $ —   $ —   $ 4,015
                                                           
                                                  Revolving      
                                                  Loans      
                                                  Converted      
        Term Loans   Revolving   to Term      
        Amortized Cost Basis by Origination Year   Loans   Loans      
    (continued)                                       Amortized   Amortized      
    (dollars in thousands)   2024   2023   2022   2021   2020   Prior   Cost Basis   Cost Basis   Total
    Residential Lending                                                      
    Residential Mortgage                                                      
    FICO:                                                      
    740 and greater   $ 168,067   $ 187,710   $ 492,845   $ 946,390   $ 498,443   $ 1,115,557   $ —   $ —   $ 3,409,012
    680 – 739     18,368     34,901     65,735     103,622     57,369     138,469     —     —     418,464
    620 – 679     1,726     4,380     23,556     19,355     14,058     40,471     —     —     103,546
    550 – 619     —     820     6,526     7,745     4,042     13,783     —     —     32,916
    Less than 550     —     734     775     2,264     1,559     6,342     —     —     11,674
    No Score (3)     13,211     6,719     16,839     9,916     5,518     45,604     —     —     97,807
    Other (2)     9,456     12,404     16,564     14,311     10,769     28,812     2,419     —     94,735
    Total Residential Mortgage     210,828     247,668     622,840     1,103,603     591,758     1,389,038     2,419     —     4,168,154
    Current period gross charge-offs     —     —     —     —     —     —     —     —     —
                                                           
    Home Equity Line                                                      
    FICO:                                                      
    740 and greater     —     —     —     —     —     —     925,749     1,652     927,401
    680 – 739     —     —     —     —     —     —     161,523     1,030     162,553
    620 – 679     —     —     —     —     —     —     39,235     1,220     40,455
    550 – 619     —     —     —     —     —     —     13,006     416     13,422
    Less than 550     —     —     —     —     —     —     5,993     563     6,556
    No Score (3)     —     —     —     —     —     —     1,352     —     1,352
    Total Home Equity Line     —     —     —     —     —     —     1,146,858     4,881     1,151,739
    Current period gross charge-offs     —     —     —     —     —     —     —     —     —
                                                           
    Total Residential Lending   $ 210,828   $ 247,668   $ 622,840   $ 1,103,603   $ 591,758   $ 1,389,038   $ 1,149,277   $ 4,881   $ 5,319,893
    Current period gross charge-offs   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —
                                                           
    Consumer Lending                                                      
    FICO:                                                      
    740 and greater     92,329     65,738     84,007     44,192     14,607     6,897     101,938     106     409,814
    680 – 739     68,371     46,533     44,504     21,829     7,652     5,278     86,935     509     281,611
    620 – 679     30,618     17,728     19,942     10,252     4,195     4,152     50,544     775     138,206
    550 – 619     6,108     6,768     9,312     5,702     2,574     3,106     15,641     778     49,989
    Less than 550     2,012     3,950     5,572     3,594     1,591     1,830     5,311     593     24,453
    No Score (3)     1,881     106     38     —     7     9     38,932     176     41,149
    Other (2)     —     —     277     887     99     956     76,528     —     78,747
    Total Consumer Lending   $ 201,319   $ 140,823   $ 163,652   $ 86,456   $ 30,725   $ 22,228   $ 375,829   $ 2,937   $ 1,023,969
    Current period gross charge-offs   $ 732   $ 2,055   $ 2,606   $ 1,388   $ 676   $ 2,685   $ 7,168   $ 692   $ 18,002
                                                           
    Total Loans and Leases   $ 1,183,823   $ 1,155,877   $ 2,286,710   $ 2,322,566   $ 1,013,551   $ 3,513,354   $ 2,902,520   $ 29,857   $ 14,408,258
    Current period gross charge-offs   $ 732   $ 2,633   $ 2,941   $ 1,493   $ 897   $ 5,461   $ 7,168   $ 692   $ 22,017

    (1) Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score (680 and above). As of December 31, 2024, the majority of the loans in this population were current.

    (2) Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating. As of December 31, 2024, the majority of the loans in this population were current.

    (3) No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.

                                             
    GAAP to Non-GAAP Reconciliation   Table 14
        For the Three Months Ended     For the Year Ended  
        December 31,      September 30,      December 31,      December 31,   
    (dollars in thousands)   2024     2024     2023     2024     2023  
    Income Statement Data:                                        
    Net income   $ 52,496     $ 61,492     $ 47,502     $ 230,129     $ 234,983  
                                             
    Average total stockholders’ equity   $ 2,629,600     $ 2,588,806     $ 2,374,669     $ 2,557,215     $ 2,346,713  
    Less: average goodwill     995,492       995,492       995,492       995,492       995,492  
    Average tangible stockholders’ equity   $ 1,634,108     $ 1,593,314     $ 1,379,177     $ 1,561,723     $ 1,351,221  
                                             
    Average total assets   $ 23,795,735     $ 24,046,696     $ 24,404,727     $ 23,996,723     $ 24,625,445  
    Less: average goodwill     995,492       995,492       995,492       995,492       995,492  
    Average tangible assets   $ 22,800,243     $ 23,051,204     $ 23,409,235     $ 23,001,231     $ 23,629,953  
                                             
    Return on average total stockholders’ equity(1)     7.94 %     9.45 %     7.94 %     9.00 %     10.01 %
    Return on average tangible stockholders’ equity (non-GAAP)(1)     12.78 %     15.35 %     13.66 %     14.74 %     17.39 %
                                             
    Return on average total assets(1)     0.88 %     1.02 %     0.77 %     0.96 %     0.95 %
    Return on average tangible assets (non-GAAP)(1)     0.92 %     1.06 %     0.81 %     1.00 %     0.99 %
                             
                       
        As of     As of     As of  
        December 31,      September 30,      December 31,   
    (dollars in thousands, except per share amounts)   2024     2024     2023  
    Balance Sheet Data:                        
    Total stockholders’ equity   $ 2,617,486     $ 2,648,034     $ 2,486,066  
    Less: goodwill     995,492       995,492       995,492  
    Tangible stockholders’ equity   $ 1,621,994     $ 1,652,542     $ 1,490,574  
                             
    Total assets   $ 23,828,186     $ 23,780,285     $ 24,926,474  
    Less: goodwill     995,492       995,492       995,492  
    Tangible assets   $ 22,832,694     $ 22,784,793     $ 23,930,982  
                             
    Shares outstanding     126,422,898       127,886,167       127,618,761  
                             
    Total stockholders’ equity to total assets     10.98 %     11.14 %     9.97 %
    Tangible stockholders’ equity to tangible assets (non-GAAP)     7.10 %     7.25 %     6.23 %
                             
    Book value per share   $ 20.70     $ 20.71     $ 19.48  
    Tangible book value per share (non-GAAP)   $ 12.83     $ 12.92     $ 11.68  

    (1) Annualized for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023.

    The MIL Network –

  • MIL-OSI: Apollo to Provide USD $500 Million Hybrid Capital Solution to Aldar in Fourth Transaction

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Jan. 31, 2025 (GLOBE NEWSWIRE) — Apollo (NYSE: APO) today announced an agreement for Apollo-managed affiliates, funds and clients to invest USD $500 million in Subordinated Notes issued by Aldar Properties PJSC (“Aldar”). The transaction represents one of the region’s largest-ever corporate hybrid private placements and brings aggregate investment in Aldar led by Apollo to approximately USD $1.9 billion across four transactions since 2022.

    Apollo Partner Jamshid Ehsani said, “We are pleased to broaden our partnership and provide another scaled capital solution to Aldar by investing in a leading real estate franchise that we believe offers an attractive investment opportunity for our clients. Apollo’s fourth investment in Aldar underscores our strong partnership with the company as well as our commitment to serving as a leading capital provider to the broader Abu Dhabi ecosystem.”

    The hybrid private placement marks Apollo’s latest commitment to Abu Dhabi and the UAE and follows an August 2022 transaction in which Apollo-managed funds and clients invested a total of USD $1.4 billion in strategic capital in Aldar, including a USD $400 million equity investment in Aldar Investment Properties. In November 2024, Apollo also announced a multi-year extension of the firm’s multi-billion-dollar partnership with Mubadala Investment Company focused on global origination opportunities.

    Since 2020, under its High-Grade Capital Solutions strategy, Apollo has originated nearly $100 billion of bespoke capital solutions for leading companies such as Intel, Sony, Air France, AB InBev and more.

    About Apollo

    Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade credit to private equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of September 30, 2024, Apollo had approximately $733 billion of assets under management. To learn more, please visit www.apollo.com.

    Contacts

    Noah Gunn

    Global Head of Investor Relations

    Apollo Global Management, Inc.

    (212) 822-0540

    IR@apollo.com

    Joanna Rose

    Global Head of Corporate Communications

    Apollo Global Management, Inc.

    (212) 822-0491

    Communications@apollo.com

    The MIL Network –

  • MIL-OSI: QUAINT OAK BANCORP, INC. ANNOUNCES FOURTH QUARTER AND YEAR-END EARNINGS

    Source: GlobeNewswire (MIL-OSI)

    Southampton, PA , Jan. 31, 2025 (GLOBE NEWSWIRE) — Quaint Oak Bancorp, Inc. (the “Company”) (OTCQB: QNTO), the holding company for Quaint Oak Bank (the “Bank”), announced today net income for the quarter ended December 31, 2024 of $1.6 million, or $0.60 per basic and diluted share, compared to net income of $1.1 million, or $0.49 per basic and diluted share, for the same period in 2023. Net income for the year ended December 31, 2024 was $2.8 million, or $1.08 per basic and diluted share, compared to net income of $2.0 million, or $0.90 per basic and $0.89 per diluted share, for the same period in 2023.

    Robert T. Strong, President and Chief Executive Officer stated, “I am pleased to report that our quarterly net income for the period ended December 31, 2024, of $1.6 million was an increase of 38.3% when compared to the income of the same period ended December 31, 2023. I am, additionally, pleased to report that our annual net income for the year ended December 31, 2024, of $2.8 million was an increase of 38.4% when compared to the income for the year ended December 31, 2023.”

    Mr. Strong added, “Our non-interest income continued to improve for both the quarter ended December 31, 2024, and the year-end December 31, 2024, when compared to the same periods ended December 31, 2023. We completed the sale-leaseback of our property in Allentown, Pennsylvania during the fourth quarter of 2024 that resulted in a one-time $1.5 million gain.”

    Mr. Strong continued, “As previously reported, we experienced a continuing minor weakness in the small business sector. Our non-performing loans as a percentage of total loans receivable, net was 1.07% at December 31, 2024. Our non-performing assets as a percentage of total assets at December 31, 2024, was 0.83%. Although not rising to a level of concern but one of continued monitoring, we have, however, increased our allowance for credit losses as a percentage of total loans receivable to 1.20% at year-end December 31, 2024. We also carry a percentage of 113.61% allowance for credit losses as a percent of non-performing loans.”

    Mr. Strong commented, “As of year-end December 31, 2024, Quaint Oak Bank’s total risk-based capital ratio was 14.34%. In conjunction with earnings and improved liquidity and capital ratios, the Board of Directors, as previously announced, declared a dividend in the amount of $0.13 per share payable February 10, 2025.”

    Mr. Strong concluded, “In closing, I am pleased that our stockholders’ equity from continuing operations improved by over $4.0 million during the year 2024. As always, our current and continued business strategy focuses on long-term profitability and maintaining healthy capital ratios both of which reflect our strong commitment to shareholder value.”

    On March 29, 2024, Quaint Oak Bank sold its 51% interest in Oakmont Capital Holdings, LLC (“OCH”). The decision was based on a number of strategic priorities and other factors. As a result of this action, the Company classified the operations of OCH as discontinued operations under ASC 205-20. The Consolidated Balance Sheets and Consolidated Statements of Income present discontinued operations for the year ended December 31, 2024 and retrospectively at December 31, 2023 and for prior periods. Included in discontinued operations for the year ended December 31, 2024 was a pretax gain of $1.4 million on the sale of the Company’s 51% interest in OCH.

    Also on March 29, 2024, the Company discontinued the operations of Quaint Oak Real Estate, LLC (“Quaint Oak Real Estate”), a 100% wholly owned subsidiary of the Bank. Quaint Oak Real Estate was engaged in the real estate brokerage business.

    Comparison of Quarter-over-Quarter Operating Results

    Net income amounted to $1.6 million for the three months ended December 31, 2024, an increase of $437,000, or 38.3%, compared to net income of $1.1 million for the three months ended December 31, 2023. The increase in net income on a comparative quarterly basis was primarily the result of an increase in non-interest income of $1.8 million, a decrease in interest expense of $756,000, and a decrease in the net provision for income taxes of $166,000, partially offset by a decrease in interest income of $1.0 million, an increase in the provision for credit losses of $619,000, a decrease in net loss from discontinued operations of $488,000, and an increase in non-interest expense of $308,000.

    The $1.0 million, or 9.5%, decrease in interest income was primarily due to a decrease in the average balance of loans receivable, net, which decreased $94.3 million from $702.7 million for the three months ended December 31, 2023 to $608.4 million for the three months ended December 31, 2024 and had the effect of decreasing interest income $1.4 million. This decrease was partially offset by a 27 basis point increase in the average yield on loans receivable, net from 6.05% for the three months ended December 31, 2023 to 6.32% for the three months ended December 31, 2024, and had the effect of increasing interest income $412,000, and a $9.4 million increase in the average balance of due from banks – interest earning, which increased from $22.1 million for the three months ended December 31, 2023 to $31.5 million for the three months ended December 31, 2024, and had the effect of increasing interest income $92,000.

    The $756,000, or 11.4%, decrease in interest expense for the three months ended December 31, 2024 over the comparable period in 2023 was driven by a $310,000, or 96.0%, decrease in the interest on Federal Home Loan Bank long-term borrowings due to a $29.8 million, or 89.5%, decrease in the average balance of Federal Home Loan Bank long-term borrowings which decreased from $33.3 million for the three months ended December 31, 2023 to $3.5 million for the three months ended December 31, 2024, combined with a $295,000, or 91.0%, decrease in the interest on Federal Home Loan Bank short-term borrowings due to an $18.1 million, or 88.9%, decrease in the average balance of Federal Home Loan Bank short-term borrowings which decreased from $20.4 million for the three months ended December 31, 2023 to $2.3 million for the three months ended December 31, 2024. Also contributing to the decrease in interest expense for the three months ended December 31, 2024 was a $192,000, or 3.5%, decrease in interest expense on deposits. The average interest rate spread increased from 1.52% for the three months ended December 31, 2023 to 1.88% for the three months ended December 31, 2024 while the net interest margin increased from 2.39% for the three months ended December 31, 2023 to 2.54% for the three months ended December 31, 2024.

    The $619,000, or 204.3%, increase in the provision for credit losses for the three months ended December 31, 2024 over the three months ended December 31, 2023 was due to an increase in charge-offs during the three months ended December 31, 2024, partially offset by a decrease in loans receivable, net.

    The $1.8 million, or 82.6%, increase in non-interest income for the three months ended December 31, 2024 over the comparable period in 2023 was primarily attributable to a $1.5 million gain on the sale and leaseback of the Company’s office building at 1710 Union Boulevard in Allentown, Pennsylvania, a $290,000, or 20.6%, increase in net gain on sale of loans, a $103,000, or 57.5%, increase in mortgage banking, equipment lending, and title abstract fees, an $80,000, or 65.6%, increase in gain on sale of SBA loans, and a $41,000, or 23.2%, increase in insurance commissions. These increases were partially offset by a $184,000, or 86.0%, decrease in other fees and service charges, and a $6,000, or 100.0%, decrease in real estate sales commissions, net.

    The $308,000, or 5.7%, increase in non-interest expense for the three months ended December 31, 2024 over the comparable period in 2023 was primarily due to a $392,000, or 11.4%, increase in salaries and employee benefits expense, a $111,000, or 33.1%, increase in professional fees, a $90,000, or 28.7%, increase in data processing expense, a $47,000 increase in directors’ fees and expenses, and a $25,000, or 33.3%, increase in advertising expense. These increases were partially offset by a $183,000, or 33.5%, decrease in other expense, a $96,000, or 18.5%, decrease in occupancy and equipment expense, and a $78,000, or 39.4%, decrease in FDIC deposit insurance assessment.

    The provision for income tax from continuing operations decreased $166,000, or 24.3%, from $682,000 for the three months ended December 31, 2023 to $516,000 for the three months ended December 31, 2024 due primarily to a decrease in state taxes related to subsidiary activity in additional states.

    Comparison of Year-End Operating Results

    Net income amounted to $2.8 million for the year ended December 31, 2024, an increase of $775,000, or 38.4%, compared to net income of $2.0 million for the year ended December 31, 2023. The increase in net income on a comparative year-end basis was primarily the result of an increase in non-interest income of $2.9 million, a decrease in net loss from discontinued operations of $668,000, and a decrease in the net provision for income taxes from continuing operations of $298,000, partially offset by a decrease in interest income of $1.5 million, an increase in the provision for credit losses of $1.4 million, an increase in non-interest expense of $101,000, and an increase in interest expense of $93,000. The decrease in the net loss from discontinued operations was driven by the after-tax gain on the sale of the Company’s 51% interest in OCH.

    The $1.5 million, or 3.3%, decrease in interest income was primarily due to a decrease in the average balance of loans receivable, net, which decreased $116.0 million from $737.0 million for the year ended December 31, 2023 to $621.0 million for the year ended December 31, 2024 and had the effect of decreasing interest income $6.9 million. This decrease was partially offset by a 51 basis point increase in the yield on average loans receivable, net, including loans held for sale, which increased from 5.94% for the year ended December 31, 2023 to 6.45% for the year ended December 31, 2024, and had the effect of increasing interest income $3.1 million, a $51.8 million increase in the average balance of due from banks – interest earning, which increased from $10.1 million for the year ended December 31, 2023 to $61.9 million for the year ended December 31, 2024, and had the effect of increasing interest income $2.1 million, and a 93 basis point increase in the average yield on due from banks – interest earning which increased from 4.03% for the year ended December 31, 2023 to 4.96% for the year ended December 31, 2024, and had the effect of increasing interest income $577,000.

    The $93,000, or 0.4%, increase in interest expense for the year ended December 31, 2024 over the comparable period in 2023 was driven by a 106 basis point increase in the rate on average certificate of deposit accounts which increased from 3.09% for the year ended December 31, 2023 to 4.15% for the year ended December 31, 2024 and had the effect of increasing interest expense by $2.5 million. Also contributing to the increase in interest expense was an increase in the average balance of business checking accounts which increased from $49.7 million for the year ended December 31, 2023 to $93.3 million for the year ended December 31, 2024 and had the effect of increasing interest expense by $2.2 million. The Bank pays interest on business checking accounts received through a correspondent banking relationship. Also impacting the increase in interest expense was a 28 basis point increase in the rate on average money market accounts which increased from 4.16% for the year ended December 31, 2023 to 4.44% for the year ended December 31, 2024 and had the effect of increasing interest expense by $604,000. Partially offsetting the increase in interest expense for the year ended December 31, 2024, was a $71.3 million, or 98.3%, decrease in the average balance of Federal Home Loan Bank short-term borrowings which decreased from $72.6 million for the year ended December 31, 2023 to $1.2 million for the year ended December 31, 2024 and had the effect of decreasing interest expense $3.8 million. The average interest rate spread decreased from 1.91% for the year ended December 31, 2023 to 1.84% for the year ended December 31, 2024 while the net interest margin increased from 2.56% for the year ended December 31, 2023 to 2.59% for the year ended December 31, 2024.

    The $1.4 million, or 877.1%, increase in the provision for credit losses for the year ended December 31, 2024 over the year ended December 31, 2023 was due to an increase in the amount of non-performing loans. There were seventeen individually evaluated loans which increased the provision for credit losses by $809,000. Also contributing to the increase in the provision for credit losses was $1.8 million in charge-offs during the year ended December 31, 2024. These increases were partially offset by a decrease in the average balance of loans receivable, net.

    The $2.9 million, or 54.1%, increase in non-interest income for the year ended December 31, 2024 over the comparable period in 2023 was primarily attributable to the $1.5 million gain on sale-leaseback transaction in the fourth quarter of 2024, described above, a $1.1 million, or 41.2%, increase in net gain on sale of loans, a $309,000, or 51.5%, increase in mortgage banking, equipment lending, and title abstract fees, a $102,000, or 20.0%, increase in other fees and services charges, and an $81,000, or 12.2%, increase in insurance commissions. These increases were partially offset by a $119,000 or 50.6%, decrease in net loan servicing income, a $74,000, or 78.7%, decrease in real estate sales commissions, net, and a $15,000, or 3.2%, decrease in gain on sale of SBA loans. The $1.1 million increase in the net gain on sale of loans was due primarily to increased sales volume from Quaint Oak Mortgage, LLC and Oakmont Commercial, LLC.

    The $101,000, or 0.5%, increase in non-interest expense for the year ended December 31, 2024 over the comparable period in 2023 was primarily due to a $786,000, or 5.7%, increase in salaries and employee benefits expense, a $247,000, or 23.5%, increase in data processing expense, and a $19,000, or 6.7%, increase in advertising expense, partially offset by a $253,000, or 29.2%, decrease in FDIC deposit insurance assessment, a $238,000, or 14.4%, decrease in occupancy and equipment expense, a $182,000, or 9.5%, decrease in other expenses, a $163,000, or 17.5%, decrease in professional fees, and a $115,000, or 36.4%, decrease in directors’ fees and expenses. The decrease in directors’ fees and expenses was primarily due to a reduction in director rates for the year ended December 31, 2024.

    The provision for income tax on continuing operations decreased $298,000, or 22.4%, from $1.3 million for the year ended December 31, 2023 to $1.0 million for the year ended December 31, 2024 due primarily to a decrease in taxable income from continuing operations.

    Comparison of Financial Condition

    The Company’s total assets at December 31, 2024 were $685.2 million, a decrease of $69.0 million, or 9.1%, from $754.1 million at December 31, 2023. This decrease in total assets was primarily due to an $84.7 million, or 13.7%, decrease in loans receivable, net of allowance for credit losses. The largest decreases within the loan portfolio occurred in commercial real estate loans which decreased $34.9 million, or 10.5%, commercial business loans which decreased $12.9 million, or 10.1%, construction loans which decreased $17.3 million, or 48.5%, one-to-four family non-owner occupied loans which decreased $6.9 million, or 17.0%, and multi-family residential loans which decreased $1.3 million, or 2.7%. Partially offsetting these decreases were one-to-four family owner occupied loans which increased $2.7 million, or 12.0%. Also contributing to the decrease in assets was a $1.0 million, or 38.8%, decrease in premises and equipment, net. Partially offsetting the decrease in total assets was a $29.5 million, or 80.9%, increase in loans held for sale, a $5.0 million, or 8.6%, increase in cash and cash equivalents, a $740,000, or 50.2%, increase in investment in Federal Home Loan Bank stock, at cost, a $459,000, or 13.1%, increase in accrued interest receivable, and a $118,000, or 2.7%, increase in bank-owned life insurance. The decrease in loans receivable, net was due to the transfer of $59.5 million of loans held for investment into loans held for sale.

    Loans held for sale increased $29.5 million, or 80.9%, from $36.4 million at December 31, 2023 to $65.9 million at December 31, 2024 as the Bank originated $51.6 million in equipment loans held for sale and sold $71.6 million of equipment loans during the year ended December 31, 2024. Partially offsetting this increase was $8.5 million of loan amortization and prepayments. On March 29, 2024, the Bank transferred $4.4 million of equipment loans held for sale into loans receivable as part of the discontinued operations of OCH. Additionally, the Bank’s mortgage banking subsidiary, Quaint Oak Mortgage, LLC, originated $134.3 million of one-to-four family residential loans during the year ended December 31, 2024 and sold $131.4 million of loans in the secondary market during this same period. In the fourth quarter of 2024, management identified $49.2 million of commercial real estate loans and $10.3 million of SBA loans within the loan portfolio and transferred them to loans held for sale at amortized cost.

    Total deposits decreased $78.4 million, or 12.4%, to $553.3 million at December 31, 2024 from $631.7 million at December 31, 2023. This decrease in deposits was primarily attributable to a decrease of $57.4 million, or 55.0%, in interest bearing checking accounts, a decrease of $56.2 million, or 25.7%, in money market accounts, a decrease of $31.6 million, or 34.2%, in non-interest bearing checking accounts, and a $349,000, or 41.5%, decrease in savings accounts. These decreases in deposits were partially offset by an increase of $67.0 million, or 31.1%, in certificates of deposit. The total decrease in interest bearing checking accounts was due to reduced correspondent banking activity.

    Total Federal Home Loan Bank (FHLB) borrowings increased $18.8 million, or 64.9%, to $47.9 million at December 31, 2024 from $29.0 million at December 31, 2023. During the year ended December 31, 2024, the Company borrowed $110.0 million of FHLB short-term borrowings, paid down $65.0 million of FHLB short-term borrowings, and paid down $26.2 million of FHLB long-term borrowings.

    Total stockholders’ equity from continuing operations increased $4.1 million, or 8.5%, to $52.6 million at December 31, 2024 from $48.5 million at December 31, 2023. Contributing to the increase was net income for the year ended December 31, 2024 of $2.8 million, shares of common stock issued of $2.4 million, amortization of stock awards and options under our stock compensation plans of $242,000, the reissuance of treasury stock under the Bank’s 401(k) Plan of $118,000, and other comprehensive income, net of $10,000. The increase in stockholders’ equity was partially offset by dividends paid of $1.3 million, and $150,000 of purchases of treasury stock. In addition, there was a $3.1 million, or 100.0%, decrease in noncontrolling interest from discontinued operations. The $2.4 million of shares issued were due to two private placement offerings to two investors.

    Non-performing loans at December 31, 2024 totaled $5.7 million, or 1.07%, of total loans receivable, net of allowance for credit losses, consisting of $3.9 million of loans on non-accrual status and $1.8 million of loans 90-days or more delinquent. Non-accrual loans consist of one commercial real estate loan, and ten commercial business loans. Included in the ten commercial business loans is one pool of equipment loans. Loans 90-days or more past due include one one-to-four family residential owner occupied loan and two commercial real estate loans, all of which are still accruing. All non-performing loans are either well-collateralized or adequately reserved for. During the year ended December 31, 2024, 19 commercial business loans totaling $1.6 million, and one construction loan of $187,000, that were previously on non-accrual were charged-off through the allowance for credit losses. The allowance for credit losses as a percentage of total loans receivable was 1.20% at December 31, 2024 and 1.11% at December 31, 2023. Non-performing loans at December 31, 2023 consisted of one SBA loan on non-accrual status in the amount of $51,000 and one one-to-four family owner occupied loan that was 90 days or more past due but still accruing in the amount of $401,000. During the year ended December 31, 2023, two commercial business loans, one SBA loan, one multi-family residential loan, and two equipment loans totaling $272,000 that were previously on non-accrual were charged-off through the allowance for credit losses. In addition, there was one commercial business loan in the amount of $652,000 that was partially charged off by $603,000.

    Quaint Oak Bancorp, Inc., a Financial Services Company, is the parent company for the Quaint Oak Family of Companies. Quaint Oak Bank, a Pennsylvania-chartered stock savings bank and wholly-owned subsidiary of the Company, is headquartered in Southampton, Pennsylvania and conducts business through three regional offices located in the Delaware Valley, Lehigh Valley and Philadelphia markets. Quaint Oak Bank’s subsidiary companies include Quaint Oak Abstract, LLC, Quaint Oak Insurance Agency, LLC, Quaint Oak Mortgage, LLC, and Oakmont Commercial, LLC, a specialty commercial real estate financing company. All companies are multi-state operations.

    Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. Factors which could result in material variations include, but are not limited to, changes in interest rates which could affect net interest margins and net interest income, competitive factors which could affect net interest income and noninterest income, changes in demand for loans, deposits and other financial services in the Company’s market area; changes in asset quality, general economic conditions as well as other factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

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

    QUAINT OAK BANCORP, INC.
    Consolidated Balance Sheets
    (In Thousands)
        At December 31,     At December 31,  
        2024     2023  
        (Unaudited)     (Unaudited)  
    Assets                
    Cash and cash equivalents   $ 62,989     $ 58,006  
    Investment in interest-earning time deposits     912       1,912  
    Investment securities available for sale at fair value     1,666       2,341  
    Loans held for sale     65,939       36,448  
      Loans receivable, net of allowance for credit losses (2024: $6,476; 2023: $6,758)     533,035       617,701  
    Accrued interest receivable     3,961       3,502  
    Investment in Federal Home Loan Bank stock, at cost     2,214       1,474  
    Bank-owned life insurance     4,447       4,329  
    Premises and equipment, net     1,626       2,656  
    Goodwill     515       515  
    Other intangible, net of accumulated amortization     77       125  
    Prepaid expenses and other assets     7,787       5,134  
    Assets from discontinued operations     –       19,975  
    Total Assets   $ 685,168     $ 754,118  
                     
    Liabilities and Stockholders’ Equity                
    Liabilities                
    Deposits                
    Non-interest bearing   $ 59,783     $ 92,215  
    Interest-bearing     493,469       539,484  
    Total deposits     553,252       631,699  
    Federal Home Loan Bank short-term borrowings     45,000       –  
    Federal Home Loan Bank long-term borrowings     2,855       29,022  
    Subordinated debt     22,000       21,957  
    Accrued interest payable     937       541  
    Advances from borrowers for taxes and insurance     3,122       3,730  
    Accrued expenses and other liabilities     5,385       2,438  
    Liabilities from discontinued operations     –       13,166  
    Total Liabilities     632,551       702,553  
    Total Quaint Oak Bancorp, Inc. Stockholders’ Equity     52,617       48,491  
    Noncontrolling Interest from Discontinued Operations     –       3,074  
    Total Stockholders’ Equity     52,617       51,565  
    Total Liabilities and Stockholders’ Equity   $ 685,168     $ 754,118  
        At December 31,  
        2023  
        (Unaudited)  
    Assets from Discontinued Operations        
    Cash and cash equivalents   $ 4,121  
    Loans held for sale     9,580  
    Premises and equipment, net     277  
    Goodwill     2,058  
    Prepaid expenses and other assets     3,939  
    Total Assets from Discontinued Operations   $ 19,975  
             
    Liabilities and Stockholders’ Equity from Discontinued Operations        
    Liabilities from Discontinued Operations        
    Other short-term borrowings   $ 5,549  
    Accrued interest payable     565  
    Accrued expenses and other liabilities     7,052  
    Total Liabilities from Discontinued Operations     13,166  
    Total Stockholders’ Equity from Discontinued Operations     6,809  
    Total Liabilities and Stockholders’ Equity from Discontinued Operations   $ 19,975  

    QUAINT OAK BANCORP, INC.
    Consolidated Statements of Income
    (In Thousands, except share data)

        For the Three Months Ended     For the Year Ended  
        December 31,     December 31,  
        2024     2023     2024     2023  
        (Unaudited)     (Unaudited)  
    Interest and Dividend Income                                
    Interest on loans, including fees   $ 9,613     $ 10,629     $ 40,058     $ 43,812  
    Interest and dividends on time deposits, investment securities, interest-bearing deposits with others, and Federal Home Loan Bank stock     333       359       3,379       1,109  
    Total Interest and Dividend Income     9,946       10,988       43,437       44,921  
    Interest Expense                                
    Interest on deposits     5,346       5,538       23,141       18,811  
    Interest on Federal Home Loan Bank short-term borrowings     29       324       61       3,907  
    Interest on Federal Home Loan Bank long-term borrowings     13       323       484       1,326  
    Interest on Federal Reserve Bank short-term borrowings     –       4       –       34  
    Interest on subordinated debt     473       428       1,934       1,449  
    Total Interest Expense     5,861       6,617       25,620       25,527  
    Net Interest Income     4,085       4,371       17,817       19,394  
    Provision for (Recovery of) Credit Losses – Loans     279       (324 )     1,506       (45 )
    Provision for Credit Losses – Unfunded Commitments     37       21       28       202  
    Total Provision for (Recovery of) Credit Losses     316       (303 )     1,534       157  
    Net Interest Income after Provision for (Recovery from) Credit Losses     3,769       4,674       16,283       19,237  
                                     
    Non-Interest Income                                
    Mortgage banking, equipment lending and title abstract fees     282       179       909       600  
    Real estate sales commissions, net     –       6       20       94  
    Insurance commissions     218       177       744       663  
    Other fees and services charges     30       214       612       510  
    Net loan servicing income     111       88       116       235  
    Income from bank-owned life insurance     31       27       118       102  
    Net gain on sale of loans     1,701       1,411       3,699       2,620  
    Gain on sale of SBA loans     202       122       453       468  
    Gain on sale-leaseback transaction     1,485       –       1,485       –  
    Total Non-Interest Income     4,060       2,224       8,156       5,292  
                                     
    Non-Interest Expense                                
    Salaries and employee benefits     3,818       3,426       14,636       13,850  
    Directors’ fees and expenses     48       1       201       316  
    Occupancy and equipment     422       518       1,418       1,656  
    Data processing     404       314       1,298       1,051  
    Professional fees     446       335       769       932  
    FDIC deposit insurance assessment     120       198       614       867  
    Advertising     100       75       302       283  
    Amortization of other intangible     12       12       48       48  
    Other     364       547       1,732       1,914  
    Total Non-Interest Expense     5,734       5,426       21,018       20,917  
    Income from Continuing Operations Before Income Taxes   $ 2,095     $ 1,472     $ 3,421     $ 3,612  
    Income Taxes     516       682       1,032       1,330  
    Net Income from Continuing Operations   $ 1,579     $ 790     $ 2,389     $ 2,282  
    Income (Loss) from Discontinued Operations     –       488       564       (364 )
    Income Tax (Benefit)     –       136       158       (102 )
    Net Income (Loss) from Discontinued Operations   $ –     $ 352     $ 406     $ (262 )
    Net Income   $ 1,579     $ 1,142     $ 2,795     $ 2,020  
        Three Months Ended
    December 31,    		     Year Ended
    December 31,    		  
        2024     2023     2024     2023  
    Per Common Share Data:   (Unaudited)     (Unaudited)  
    Earnings per share from continuing operations – basic   $ 0.60     $ 0.34     $ 0.93     $ 1.02  
    Earnings per share from discontinued operations – basic   $ –     $ 0.15     $ 0.16     $ (0.12 )
    Earnings per share, net – basic   $ 0.60     $ 0.49     $ 1.08     $ 0.90  
    Average shares outstanding – basic     2,631,851       2,352,133       2,578,804       2,254,444  
    Earnings per share from continuing operations – diluted   $ 0.60     $ 0.34     $ 0.93     $ 1.00  
    Earnings per share from discontinued operations – diluted   $ –     $ 0.15     $ 0.16     $ (0.11 )
    Earnings per share, net – diluted   $ 0.60     $ 0.49     $ 1.08     $ 0.89  
    Average shares outstanding – diluted     2,631,851       2,352,133       2,578,804       2,275,034  
    Book value per share, end of period   $ 20.03     $ 20.15     $ 20.03     $ 20.15  
    Shares outstanding, end of period     2,626,535       2,407,048       2,626,535       2,407,048  
        Three Months Ended
    December 31,    		     Year Ended
    December 31,    		  
        2024     2023     2024     2023  
    Selected Operating Ratios:   (Unaudited)     (Unaudited)  
    Average yield on interest-earning assets     6.19 %     6.01 %     6.32 %     5.93 %
    Average rate on interest-bearing liabilities     4.30 %     4.48 %     4.48 %     4.02 %
    Average interest rate spread     1.88 %     1.52 %     1.84 %     1.91 %
    Net interest margin     2.54 %     2.39 %     2.59 %     2.56 %
    Average interest-earning assets to average interest-bearing liabilities     118.00 %     123.90 %     120.08 %     119.37 %
    Efficiency ratio     70.40 %     82.28 %     80.93 %     84.73 %
                                     
    Asset Quality Ratios (1):                                
    Non-performing loans as a percent of total loans receivable, net     1.07 %     0.07 %     1.07 %     0.07 %
    Non-performing assets as a percent of total assets     0.83 %     0.06 %     0.83 %     0.06 %
    Allowance for credit losses as a percent of non-performing loans     113.61 %   n/m       113.61 %   n/m  
    Allowance for credit losses as a percent of total loans receivable     1.20 %     1.11 %     1.20 %     1.11 %
    Texas Ratio (2)     8.77 %     0.80 %     8.77 %     0.80 %

    (1) Asset quality ratios are end of period ratios.
    (2) Total non-performing assets divided by tangible common equity plus the allowance for credit losses.
    n/m – not meaningful

    The MIL Network –

  • MIL-OSI: Pacific Financial Corp Earns $2.2 Million, or $0.21 per Diluted Share for Fourth Quarter 2024; Reports Fiscal 2024 Earnings of $9.5 Million, or $0.92 per Diluted Share; Declares Quarterly Cash Dividend of $0.14 per Share

    Source: GlobeNewswire (MIL-OSI)

    ABERDEEN, Wash., Jan. 31, 2025 (GLOBE NEWSWIRE) — Pacific Financial Corporation (OTCQX: PFLC), (“Pacific Financial”) or the (“Company”), the holding company for Bank of the Pacific (the “Bank”), reported net income of $2.2 million, or $0.21 per diluted share for the fourth quarter of 2024, compared to $2.6 million, or $0.25 per diluted share for the third quarter of 2024, and $2.9 million, or $0.28 per diluted share for the fourth quarter of 2023. For the year ended December 31, 2024, the Company reported net income of $9.5 million, or $0.92 per share compared to $14.6 million, or $1.40 for the year ended December 31, 2023. Except for year-end December 31, 2023, all results are unaudited.

    The board of directors of Pacific Financial declared a quarterly cash dividend of $0.14 per share on January 22, 2025. The dividend will be payable on February 28, 2025 to shareholders of record on February 14, 2025.

    “During the quarter we finalized the closure of our mortgage banking division recording termination costs of $773,000 impacting our fourth quarter 2024 operating results. Excluding those expenses adjusted net income was $2.8 million for the fourth quarter, an increase from the prior quarter. As we begin 2025, we expect the benefit of this closure to translate to improved efficiency of our operations moving forward,” said Denise Portmann, President and Chief Executive Officer.

    “Though the loan portfolio increased at a slower rate during the quarter, we continue to have healthy customer activity as pipelines began to improve with the decrease in index rates experienced early in the quarter. In addition, earnings for the year benefited from solid year over year growth in average loan balances. Our history of a strong net interest margin continued to be supported by solid relationships with our depositors with a strong core deposit base. Core deposits represented 87% of total deposits at year end,” said Portmann. “In addition, our overall credit quality metrics remained strong with nonperforming assets remaining low at $1.1 million or 0.09% of total assets and with a net recovery to the ACL for the quarter. Our capital base and ratios continue to be robust and exceed regulatory well-capitalized ratios. This robust capital base allowed for the continued repurchase of shares during the year. With our strong capital ratios and strong balance sheet, we believe we remain well-positioned for the future.”

    Fourth Quarter 2024 Financial Highlights:

    • Return on average assets (“ROAA”) was 0.74%, compared to 0.90% for the third quarter 2024, and 1.02% for the fourth quarter 2023.
    • Return on average equity (“ROAE”) was 7.27%, compared to 8.77% from the preceding quarter, and 10.88% from the fourth quarter a year earlier.
    • Net interest income was $10.9 million, compared to $11.2 million for the third quarter of 2024, and $11.7 million for the fourth quarter of 2023.
    • Net interest margin (“NIM”) decreased to 3.99%, compared to 4.19% from the preceding quarter, and 4.34% for the fourth quarter a year ago.
    • Provision for credit losses was a benefit of $103,000 for the fourth quarter ended December 31, 2024, compared to a benefit of $66,000 for the preceding quarter and a provision of $111,000 in the fourth quarter a year ago.
    • Gross loans balances held in portfolio increased by $5.3 million, or less than 1% to $704.9 million at December 31, 2024, compared to $699.6 million at September 30, 2024, and increased by $19.5 million, or 3%, from $685.3 million at December 31, 2023.
    • Total deposits remained at $1.01 billion at December 31, 2024 relative to the previous quarter and one year earlier. Core deposits represented 87% of total deposits, with non-interest bearing deposits representing 38% of total deposits at December 31, 2024.
    • Asset quality remains solid with nonperforming assets to total assets declining to 0.09%, compared to 0.10% three months earlier, and increasing from 0.06% at December 31, 2023. Substandard loans decreased $911,000 to $2.7 million at December 31, 2024 from $3.6 million the prior quarter.
    • Shareholder equity decreased $7.2 million during the quarter largely due to accumulated other comprehensive income marks on the investment portfolio, stock repurchases and dividend payments offset by net income. Tangible book value per share was $9.93 at December 31, 2024.
    • Pacific Financial and Bank of the Pacific continues to exceed regulatory well-capitalized requirements. At December 31, 2024 Pacific Financial’s estimated leverage ratio was 11.3% and its estimated total risk-based capital ratio was 17.5%.

    Balance Sheet Review

    Total assets decreased slightly to $1.15 billion at December 31, 2024, compared to $1.16 billion at September 30, 2024, and was unchanged relative to December 31, 2023.

    Liquidity metrics continued to remain strong with total liquidity, both on and off balance sheet sources, at $550.6 million as of December 31, 2024. The Bank has established collateralized credit lines with borrowing capacity from the Federal Home Loan Bank of Des Moines (FHLB) and from the Federal Reserve Bank of San Francisco, as well as $60.0 million in unsecured borrowing lines from various correspondent banks. There was no balance outstanding on any of these facilities at quarter-end. The Company’s available liquidity sources at December 31, 2024 represented a coverage of short-term funds available to uninsured and uncollateralized deposits of 217%. Uninsured or uncollateralized deposits were 25% of total deposits at December 31, 2024.

    The following table summarizes the Bank’s available liquidity:

    LIQUIDITY (unaudited) Period Ended   Change from   % of Deposits  
    ($ in 000s)      
                                             
        Dec 31,   Sep 30,   Dec 31,     Sep 30, 2024   Dec 31, 2023   Dec 31, Sep 30, Dec 31,  
        2024   2024   2023     $ %   $ %   2024 2024 2023  
    Short-term Funding                                        
    Cash and cash equivalents $ 67,951 $ 85,430 $ 95,781   $ (17,479 ) -20% $ (27,830 ) -29%   7% 8% 9%  
    Unencumbered AFS Securities   158,472   154,565   140,049     3,907   3%   18,423   13%   16% 15% 14%  
    Secured lines of Credit (FHLB, FRB)   324,187   336,771   327,264     (12,584 ) -4%   (3,077 ) -1%   32% 33% 32%  
    Short-term Funding $ 550,610 $ 576,766 $ 563,094   $ (26,156 ) -5% $ (12,484 ) -2%   55% 57% 56%  
                                             

    Investment securities: The investment securities portfolio increased 3% to $304.5 million, compared to $296.8 million at September 30, 2024 and increased 4% compared to the like period a year ago. The increase from the prior quarter was primarily due to the purchase of $19.8 million of collateralized mortgage obligations and mortgage backed securities. These purchases were partially offset by an increase in net unrealized losses on available for sale investments which increased $7.6 million to $22.4 million ($17.5 million after-tax) at December 31, 2024, which represents 7% of the AFS portfolio.

    U.S. Treasury bonds and securities issued by the U.S. Government sponsored agencies accounted for 86%, 85%, and 85%, of the investment portfolio as of December 31, 2024, September 30, 2024, and December 31, 2023. The largest investment category is collateralized mortgage obligations which accounted for 48% of the investment portfolio at December 31, 2024, compared to 43% one year earlier. The average adjusted duration to reset of the investment securities portfolio was 4.19 years at December 31, 2024.

    Gross loans balances increased $5.3 million, or 1%, to $704.9 million at December 31, 2024, compared to $699.6 million at September 30, 2024. During the fourth quarter, new multi-family loans more than offset the decline in construction and development loans and the decline in residential 1-4 family loans.

    Year-over-year loan growth was 3%, or $19.5 million, with the largest increases in residential 1-4 family and multi-family loans increasing $7.2 million and $18.0 million, respectively. Loans classified as commercial real estate for regulatory concentration purposes totaled $267.9 million at December 31, 2024, or 192% of total risk-based capital.

    The Company continues to manage concentration limits that establish maximum exposure levels by certain industry segments, loan product types, geography and single borrower limits. In addition, the loan portfolio continues to be well-diversified and is collateralized with assets predominantly within the Company’s Western Washington and Oregon markets.

    Credit quality: Nonperforming assets were minimal and remained at $1.1 million, or 0.09% of total assets at December 31, 2024, compared to $664,000, or 0.06% at December 31, 2023. The Company has zero other real estate owned as of December 31, 2024 and accruing loans past due more than 30 days represent only 0.14% of total loans. Total loans designated as special mention increased by $6.0 million to $10.8 million at December 31, 2024 compared to $4.8 million at September 30, 2024 and was primarily related to a downgrade of one agriculture credit relationship of $4.2 million.

    Allowance for credit losses (“ACL”) for loans was $8.9 million, or 1.26% of gross loans at December 31, 2024, compared to $8.9 million or 1.27% of loans at September 30, 2024 and $8.5 million or 1.24% at December 31, 2023. A benefit for credit losses on loans of $119,000 was recorded in the current quarter. This compares to a provision for credit losses on loans of $27,000 in the third quarter of 2024 and a provision for credit losses on loans of $162,000 for the fourth quarter of 2023. The benefit for credit losses in the current quarter largely reflects net loan recoveries of $73,000 realized during the quarter, compared to a net recovery of $11,000 for the preceding quarter and $21,000 for the fourth quarter one year ago. Provisions for unfunded loans was $16,000 for the fourth quarter compared to a benefit of $93,000 the previous quarter and a benefit of $51,000 one year earlier.

    Total deposits remained at $1.01 billion at December 31, 2024 compared to the prior quarter and one year earlier. Deposit composition between non-maturity deposits and time deposit CDs also remained relatively unchanged for the quarter. Within non-maturity deposits, non-interest bearing demand deposits decreased which was more than offset by the growth in interest bearing demand deposits and reflects the Bank’s continued focused efforts on retaining core customer relationships. Pacific Financial continues to benefit from a strong core deposit base which positively impacts our net interest margin. Non-interest bearing deposits continues to remain the largest concentration of deposits and represented 38% of deposits at December 31, 2024 and September 30, 2024. Interest-bearing demand and money market deposits both represent 19% of total deposits at December 31, 2024.

    Year-over-year the deposit composition changed slightly, primarily as a result of customers transferring balances to higher yielding accounts, and as a result, time deposits increased to $135.5 million, or 13% of total deposits at December 31, 2024 compared to $100.8 million or 10% of total deposits at December 31, 2023.

    Shareholders’ equity was $113.9 million at December 31, 2024, compared to $121.1 million at September 30, 2024, and $114.7 million at December 31, 2023. The decrease in shareholders’ equity during the current quarter was due to repurchases of common stock, dividend payments and an increase in unrealized losses on available-for-sale securities due to increases in interest rates. Net unrealized losses (after-tax) included in shareholders’ equity on available-for-sale securities was $17.5 million at December 31, 2024 compared to $11.5 million at September 30, 2024, and $16.1 million at December 31, 2023.

    Book value per common share was $11.26 at December 31, 2024, compared to $11.78 at September 30, 2024, and $11.04 at December 31, 2023. The Company’s tangible common equity ratio was 8.8% at December 31, 2024 and 9.4% at September 30, 2024, compared to 8.9% at December 31, 2023. Regulatory capital ratios of both the Company and the Bank continue to exceed the well-capitalized regulatory thresholds, with the Company’s leverage ratio at 11.3% and total risk-based capital ratio at 17.5% as of December 31, 2024. These regulatory capital ratios are estimates, pending completion and filing of regulatory reports.

    In anticipation of the expiration of the stock repurchase plan authorized in 2023, in September 2024, the Board of Directors authorized an additional $2.6 million toward future repurchases; approximately 2.0% of total shares outstanding.

    Income Statement Review

    Net interest income decreased $353,000 to $10.9 million for the fourth quarter of 2024, compared to $11.2 million for the third quarter of 2024, and decreased $801,000 compared to $11.7 million for the fourth quarter a year ago. The change in the current quarter compared to the preceding quarter reflects lower overall loan and interest bearing cash yields. Though yields for newly originated loans and other variable rate loans plus purchased investments were recorded at higher yields, the downward repricing of floating rate loans and interest-earning cash tied to short term rate indexes as well as decreased balances of interest earning cash and increasing deposit costs impacted total net interest income.

    The decrease in net interest income compared to the year ago quarter reflects the increase in funding costs, with interest income remaining relatively flat, reflecting lower interest earning deposit balances offset by increased loan interest income as the Bank re-deployed interest earning deposit balances into higher yielding assets including both loans and investments.

    Though decreasing from 4.19% for the preceding quarter and 4.34% for the fourth quarter ended December 31, 2023, the Bank’s net interest margin continued to remain strong at 3.99% for the quarter ended December 31, 2024. Yields on total interest earning assets decreased 19 basis points to 5.10% for the fourth quarter of 2024 compared to 5.29% for the prior quarter and 5.14% in the like quarter a year ago. Average loan yields decreased 15 basis points to 5.84% during the current quarter, compared to 5.99% for the preceding quarter and 5.80% for the fourth quarter 2023. The Bank’s total cost of funds increased only 2 basis points to 1.17% for the current quarter, compared to 1.15% for the preceding quarter, and 0.83% for the fourth quarter 2023. The small increase in the costs of deposits was due to retention efforts and competitive pricing of deposit products. As mentioned earlier, the large balance of non-interest bearing deposits at 38% has helped minimize volatility in deposit costs.

    Noninterest income increased to $1.8 million for the current quarter, compared to $1.7 million for the linked quarter and increased from $1.5 million a year earlier. The increase compared to the linked quarter was primarily due to $60,000 of death benefit income from a bank-owned life insurance policy. Fee and service charge income increased slightly in the fourth quarter of 2024 to $1.3 million compared to $1.2 million in the previous quarter and the fourth quarter of 2023.

    The company closed its mortgage banking division in the fourth quarter. The elimination of the mortgage banking division is expected to improve the efficiency of the company in 2025.

    Noninterest expenses increased to $10.1 million for the fourth quarter of 2024 compared to $9.7 million for the prior quarter and increased from $9.5 million for the fourth quarter of 2023. The current quarter reflects increased expenses associated with closing the mortgage division. Salaries and employee benefit expenses were elevated in the current quarter due to severance and retention payments while occupancy expenses were also elevated due to lease contract termination costs associated with our mortgage operations center. In addition, data processing and IT costs increased related to the termination of mortgage origination software contracts. Overall, expenses associated with closing the mortgage division were approximately $773,000. Excluding the mortgage division termination costs, total non-interest expenses would have been $9.3 million for the current quarter.

    The company’s efficiency ratio increased to 79.80% for the fourth quarter of 2024, compared to 75.48% in the preceding quarter and increased from 72.22% in the same quarter a year ago. The efficiency ratio is expected to decline in 2025 with the elimination of expenses associated with the closed mortgage division.

    Income tax expense: Federal and Oregon state income tax expenses totaled $492,000 for the current quarter, and $633,000 for the preceding quarter, resulting in effective tax rates of 18.5% and 19.6%, respectively. These income tax expenses reflect the benefits of tax exempt income on tax-exempt loans and investments, affordable housing tax credit financing, and investments in bank-owned life insurance.

    FINANCIAL HIGHLIGHTS (unaudited) Quarter Ended   Change From   Twelve Months Ended   Change   
           
    (In 000s, except per share data)                                                  
        Dec 31,   Sep 30,   Dec 31,     Sep 30, 2024   Dec 31, 2023   Dec 31,   Dec 31,            
        2024   2024   2023     $ %   $ %   2024   2023     $ %  
    Earnings Ratios & Data                                                  
    Net Income $ 2,162 $ 2,594 $ 2,942   $ (432 ) -17% $ (780 ) -27% $ 9,532 $ 14,605   $ (5,073 ) -35%  
    Return on average assets   0.74%   0.90%   1.02%     -0.16%       -0.28%       0.84%   1.22%     -0.38%      
    Return on average equity   7.27%   8.77%   10.88%     -1.50%       -3.61%       8.20%   13.48%     -5.28%      
    Efficiency ratio(1)   79.80%   75.48%   72.22%     4.32%       7.58%       76.69%   66.56%     10.13%      
    Net-interest margin %(2)   3.99%   4.19%   4.34%     -0.20%       -0.35%       4.18%   4.39%     -0.21%      
                                                       
    Share Ratios & Data                                                  
    Basic earnings per share $ 0.21 $ 0.25 $ 0.28   $ (0.04 ) -16% $ (0.07 ) -25% $ 0.93 $ 1.40   $ (0.47 )    
    Diluted earning per share $ 0.21 $ 0.25 $ 0.28   $ (0.04 ) -16% $ (0.07 ) -25% $ 0.92 $ 1.40   $ (0.48 )    
    Book value per share(3) $ 11.26 $ 11.78 $ 11.04   $ (0.52 ) -4% $ 0.22   2%                    
    Tangible book value per share(4) $ 9.93 $ 10.47 $ 9.75   $ (0.54 ) -5% $ 0.18   2%                    
    Common shares outstanding   10,110   10,283   10,389     (173 ) -2%   (279 ) -3%                    
    PFLC stock price $ 12.45 $ 11.65 $ 10.70   $ 0.80   7% $ 1.75   16%                    
    Dividends paid per share $ 0.14 $ 0.14 $ 0.14   $ –   0% $ –   0% $ 0.56 $ 0.53   $ 0.03   6%  
                                                       
    Balance Sheet Data                                                  
    Assets $ 1,153,563 $ 1,158,410 $ 1,148,899   $ (4,847 ) 0% $ 4,664   0%                    
    Portfolio Loans $ 704,865 $ 699,603 $ 685,349   $ 5,262   1% $ 19,516   3%                    
    Deposits $ 1,014,731 $ 1,011,473 $ 1,009,292   $ 3,258   0% $ 5,439   1%                    
    Investments $ 304,502 $ 296,792 $ 293,579   $ 7,710   3% $ 10,923   4%                    
    Shareholders equity $ 113,856 $ 121,087 $ 114,691   $ (7,231 ) -6% $ (835 ) -1%                    
                                                       
    Liquidity Ratios                                                  
    Short-term funding to uninsured                                                  
    and uncollateralized deposits   217%   229%   243%     -12%       -26%                        
    Uninsured and uncollateralized                                                  
    deposits to total deposits   25%   25%   23%     0%       2%                        
    Portfolio loans to deposits ratio   69%   69%   67%     0%       2%                        
                                                       
    Asset Quality Ratios                                                  
    Non-performing assets to assets   0.09%   0.10%   0.06%     -0.01%       0.03%                        
    Non-accrual loans to portfolio loans   0.16%   0.16%   0.10%     0.00%       0.06%                        
    Loan losses to avg portfolio loans   -0.04%   -0.01%   -0.01%     -0.03%       -0.03%       0.00%   0.03%     -0.03%      
    ACL to portfolio loans   1.26%   1.27%   1.24%     -0.01%       0.02%                        
                                                       
    Capital Ratios (PFC)                                                  
    Total risk-based capital ratio   17.5%   17.9%   17.7%     -0.4%       -0.2%                        
    Tier 1 risk-based capital ratio   16.3%   16.7%   16.5%     -0.4%       -0.2%                        
    Common equity tier 1 ratio   14.7%   15.0%   14.9%     -0.3%       -0.2%                        
    Leverage ratio   11.3%   11.6%   11.3%     -0.3%       0.0%                        
    Tangible common equity ratio   8.8%   9.4%   8.9%     -0.6%       -0.1%                        
                                                       
    (1) Non-interest expense divided by net interest income plus noninterest income.
    (2) Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%.
    (3) Book value per share is calculated as the total common shareholders’ equity divided by the period ending number of common stock shares outstanding.
    (4) Tangible book value per share is calculated as the total common shareholders’ equity less total intangible assets and liabilities, divided by the period ending number of common stock shares outstanding.
     
    INCOME STATEMENT (unaudited) Quarter Ended   Change From   Twelve Months Ended   Change  
           
    ($ in 000s)                                                      
        Dec 31,   Sep 30,   Dec 31,     Sep 30, 2024   Dec 31, 2023   Dec 31,   Dec 31,            
        2024   2024   2023     $ %   $ %   2024   2023     $ %  
    Interest Income                                                      
    Loan interest & fee income $ 10,340   $ 10,520   $ 9,872   $ (180 ) -2% $ 468   5% $ 41,192 $ 37,037   $ 4,155   11%  
    Interest bearing cash income   942     1,108     1,440     (166 ) -15%   (498 ) -35%   3,833   9,109     (5,276 ) -58%  
    Investment income   2,590     2,503     2,501     87   3%   89   4%   9,978   9,334     644   7%  
    Interest Income   13,872     14,131     13,813     (259 ) -2%   59   0%   55,003   55,480     (477 ) -1%  
                                                           
    Interest Expense                                                      
    Deposits interest expense   2,796     2,684     1,914     112   4%   882   46%   9,829   5,351     4,478   84%  
    Other borrowings interest expense   225     243     247     (18 ) -7%   (22 ) -9%   951   929     22   2%  
    Interest Expense   3,021     2,927     2,161     94   3%   860   40%   10,780   6,280     4,500   72%  
    Net Interest Income   10,851     11,204     11,652     (353 ) -3%   (801 ) -7%   44,223   49,200     (4,977 ) -10%  
    Provision (benefit) for credit losses   (103 )   (66 )   111     (37   56%   (214 ) -193%   168   520     (352 ) -68%  
    Net Interest Income after provision   10,954     11,270     11,541     (316 ) -3%   (587 ) -5%   44,055   48,680     (4,625 ) -10%  
                                                           
    Non-Interest Income                                                      
    Fees and service charges   1,267     1,225     1,242     42   3%   25   2%   4,791   4,937     (146 ) -3%  
    Gain on sale of investments, net   –     –     –     –   -100%   –   -100%   121   (154 )   275   -179%  
    Gain on sale of loans, net   267     267     95     –   0%   172   181%   1,132   635     497   78%  
    Income on bank-owned insurance   250     188     176     62   33%   74   42%   800   685     115   17%  
    Other non-interest income   (9 )   7     16     (16 ) -229%   (25 ) -156%   25   69     (44 ) -64%  
    Non-Interest Income   1,775     1,687     1,529     88   5%   246   16%   6,869   6,172     697   11%  
                                                           
    Non-Interest Expense                                                      
    Salaries and employee benefits   6,288     6,341     5,787     (53 ) -1%   501   9%   24,944   22,793     2,151   9%  
    Occupancy   768     601     679     167   28%   89   13%   2,574   2,215     359   16%  
    Furniture, Fixtures & Equipment   289     286     301     3   1%   (12 ) -4%   1,127   1,109     18   2%  
    Marketing & donations   149     201     169     (52 ) -26%   (20 ) -12%   680   549     131   24%  
    Professional services   267     233     342     34   15%   (75 ) -22%   1,163   1,283     (120 ) -9%  
    Data Processing & IT   1,380     1,185     1,223     195   16%   157   13%   4,921   4,713     208   4%  
    Other   934     883     1,019     51   6%   (85 ) -8%   3,775   4,194     (419 ) -10%  
    Non-Interest Expense   10,075     9,730     9,520     345   4%   555   6%   39,184   36,856     2,328   6%  
    Income before income taxes   2,654     3,227     3,550     (573 ) -18%   (896 ) -25%   11,740   17,996     (6,256 ) -35%  
    Provision for income taxes   492     633     608     (141 ) -22%   (116 ) -19%   2,208   3,391     (1,183 ) -35%  
    Net Income $ 2,162   $ 2,594   $ 2,942   $ (432 ) -17%   (780 ) -27% $ 9,532 $ 14,605   $ (5,073 ) -35%  
                                                           
    Effective tax rate   18.5%     19.6%     17.1%     -1.1%       1.4%       18.8%   18.8%     0.0%      
     
    BALANCE SHEET (unaudited) Period Ended   Change from   % of Total  
    ($ in 000s)      
                                                   
        Dec 31,    Sep 30,    Dec 31,      Sep 30, 2024 Dec 31, 2023   Dec 31, Sep 30, Dec 31,  
        2024    2024    2023      $ %   $ %   2024 2024 2023  
    Assets                                              
    Cash on hand and in banks $ 18,136   $ 20,621   $ 16,716     $ (2,485 ) -12% $ 1,420   8%   2% 2% 1%  
    Interest bearing deposits   62,015     80,522     91,355       (18,507 ) -23%   (29,340 ) -32%   6% 7% 8%  
    Investment securities   304,502     296,792     293,579       7,710   3%   10,923   4%   26% 26% 26%  
    Loans held-for-sale   –     140     1,103       (140 ) -100%   (1,103 ) -100%   0% 0% 0%  
    Portfolio Loans, net of deferred fees   704,248     698,974     684,554       5,274   1%   19,694   3%   61% 60% 60%  
    Allowance for credit losses   (8,851 )   (8,897 )   (8,530 )     46   -1%   (321 ) 4%   -1% -1% -1%  
    Net loans   695,397     690,077     676,024       5,320   1%   19,373   3%   60% 60% 59%  
    Premises & equipment   16,952     17,124     15,579       (172 ) -1%   1,373   9%   1% 1% 1%  
    Goodwill & Other Intangibles   13,435     13,435     13,435       –   0%   –   0%   1% 1% 1%  
    Bank-owned life Insurance   28,333     28,084     27,497       249   1%   836   3%   2% 2% 2%  
    Other assets   14,793     11,615     13,611       3,178   27%   1,182   9%   2% 2% 2%  
    Total Assets $ 1,153,563   $ 1,158,410   $ 1,148,899     $ (4,847 ) 0% $ 4,664   0%   100% 100% 100%  
                                                   
    Liabilities & Shareholders’ Equity                                              
    Deposits $ 1,014,731   $ 1,011,473   $ 1,009,292     $ 3,258   0% $ 5,439   1%   88% 88% 88%  
    Borrowings   13,403   $ 13,403   $ 13,403       –   0%   –   0%   1% 1% 1%  
    Other liabilities   11,573   $ 12,447   $ 11,513       (874 )  -7%   60   1%   1% 1% 1%  
    Shareholders’ equity   113,856   $ 121,087   $ 114,691       (7,231 ) -6%   (835 ) -1%   10% 10% 10%  
    Liabilities & Shareholders’ Equity $ 1,153,563   $ 1,158,410   $ 1,148,899     $ (4,847 ) 0% $ 4,664   0%   100% 100% 100%  
                                                   
    INVESTMENT COMPOSITION & CONCENTRATIONS (unaudited) Period Ended   Change from   % of Total  
         
    ($ in 000s)                                              
        Dec 31,   Sep 30,   Dec 31,     Sep 30, 2024 Dec 31, 2023   Dec 31, Sep 30, Dec 31,  
        2024   2024   2023     $ %   $ %   2024 2024 2023  
    Investment Securities                                              
    Collateralized mortgage obligations $ 147,262   $ 141,842   $ 126,949     $ 5,420   4% $ 20,313   16%   48% 48% 43%  
    Mortgage backed securities   46,112     41,264     38,103       4,848   12%   8,009   21%   15% 14% 13%  
    U.S. Government and agency securities   67,716     68,961     83,748       (1,245 ) -2%   (16,032 ) -19%   22% 23% 29%  
    Municipal securities   43,412     44,725     44,779       (1,313 ) -3%   (1,367 ) -3%   15% 15% 15%  
    Investment Securities $ 304,502   $ 296,792   $ 293,579     $ 7,710   3% $ 10,923 ) 4%   100% 100% 100%  
                                                   
    Held to maturity securities $ 41,442   $ 42,301   $ 55,454     $ (859 ) -2% $ (14,012 ) -25%   14% 14% 19%  
    Available for sale securities $ 263,060   $ 254,491   $ 238,125     $ 8,569   3% $ 24,935   10%   86% 86% 81%  
                                                   
    Government & Agency securities $ 261,063   $ 252,039   $ 248,768     $ 9,024   4% $ 12,295   5%   86% 85% 85%  
    AAA, AA, A rated securities $ 42,773   $ 44,084   $ 43,687     $ (1,311 ) -3% $ (914 ) -2%   14% 15% 15%  
    Non-rated securities $ 666   $ 669   $ 1,124     $ (3 ) 0% $ (458 ) -41%   0% 0% 0%  
                                                   
    AFS Unrealized Gain (Loss) $ (22,437 ) $ (14,804 ) $ (20,808 )   $ (7,633 ) 52% $ (1,629 ) 8%   -7% -5% -7%  
     
    PORTFOLIO LOAN COMPOSITION & CONCENTRATIONS (unaudited) Period Ended   Change from   % of Total  
         
    ($ in 000s)                                              
        Dec 31,   Sep 30,   Dec 31,     Sep 30, 2024 Dec 31, 2023   Dec 31, Sep 30, Dec 31,  
        2024   2024   2023     $ %   $ %   2024 2024 2023  
    Portfolio Loans                                              
    Commercial & agriculture $ 75,240   $ 73,002   $ 75,444     $ 2,238   3% $ (204 ) 0%   10% 10% 11%  
    Real estate:                                              
    Construction and development   42,725     46,569     48,720       (3,844 ) -8%   (5,995 ) -12%   6% 7% 7%  
    Residential 1-4 family   103,489     105,298     96,301       (1,809 ) -2%   7,188   7%   15% 15% 14%  
    Multi-family   68,978     60,773     51,025       8,205   14%   17,953   35%   10% 9% 7%  
    CRE — owner occupied   165,120     167,086     164,443       (1,966 ) -1%   677   0%   23% 24% 24%  
    CRE — non owner occupied   159,582     157,347     155,280       2,235   1%   4,302   3%   23% 22% 23%  
    Farmland   26,864     26,553     27,273       311   1%   (409 ) -1%   4% 4% 4%  
    Consumer   62,867     62,975     66,863       (108 ) 0%   (3,996 ) -6%   9% 9% 10%  
    Portfolio Loans   704,865     699,603     685,349       5,262   1%   19,516   3%   100% 100% 100%  
    Less: ACL   (8,851 )   (8,897 )   (8,530 )                            
    Less: deferred fees   (617 )   (629 )   (795 )                            
    Net loans $ 695,397   $ 690,077   $ 676,024                              
                                                   
    Regulatory Commercial Real Estate $ 267,857   $ 261,292   $ 252,493     $ 6,565   3% $ 15,364   6%   38% 37% 37%  
    Total Risk Based Capital(1) $ 139,458   $ 140,971   $ 138,449     $ (1,513 ) -1% $ 1,009   1%          
    CRE to Risk Based Capital(1)   192%     185%     182%           7%       10%          
     
    CRE–MULTI-FAMILY & NON OWNER OCCUPIED COMPOSITION (unaudited) Period Ended   Change from   % of Total  
         
    ($ in 000s)                                        
        Dec 31,   Sep 30,   Dec 31,     Sep 30, 2024 Dec 31, 2023   Dec 31, Sep 30, Dec 31,  
        2024   2024   2023     $ %   $ %   2024 2024 2023  
    Collateral Composition(2)                                        
    Multifamily $ 73,575 $ 63,099 $ 59,557   $ 10,476   17% $ 14,018   24%   30% 27% 27%  
    Retail   36,813   37,685   29,470     (872 ) -2%   7,343   25%   15% 16% 13%  
    Hospitality   31,369   30,844   31,657     525   2%   (288 ) -1%   13% 13% 14%  
    Mini Storage   25,028   25,758   21,625     (730 ) -3%   3,403   16%   10% 11% 10%  
    Office   23,921   22,921   23,626     1,000   4%   295   1%   10% 10% 11%  
    Mixed Use   22,662   22,708   26,329     (46 ) 0%   (3,667 ) -14%   9% 10% 12%  
    Industrial   14,723   13,912   11,410     811   6%   3,313   29%   6% 6% 5%  
    Warehouse   7,531   7,582   6,169     (51 ) -1%   1,362   22%   3% 3% 3%  
    Special Purpose   6,921   6,968   7,102     (47 ) -1%   (181 ) -3%   3% 3% 3%  
    Other   3,155   3,174   3,326     (19 ) -1%   (171 ) -5%   1% 1% 2%  
    Total $ 245,698 $ 234,651 $ 220,271   $ 11,047   5% $ 25,427   12%   100% 100% 100%  
                                             
    (1) Bank of the Pacific                                        
    (2) Includes loans in process of construction                                        
     
    CREDIT QUALITY (unaudited) Period Ended   Change from  
       
    ($ in 000s)   Dec 31,   Sep 30,   Dec 31,     Sep 30, 2024 Dec 31, 2023  
        2024   2024   2023     $ %   $ %  
    Risk Rating Distribution                                
    Pass $ 691,350 $ 691,199 $ 674,992   $ 151   0% $ 16,358   2%  
    Special Mention   10,811   4,789   4,669     6,022   126%   6,142   132%  
    Substandard   2,704   3,615   5,688     (911 ) -25%   (2,984 ) -52%  
    Portfolio Loans $ 704,865 $ 699,603 $ 685,349   $ 5,262   1% $ 19,516   3%  
                                     
    Nonperforming Assets                                
    Nonaccruing loans   1,094   1,138   664   $ (44 ) -4%   430   65%  
    Other real estate owned   –   –   –     –   0%   –   0%  
    Nonperforming Assets $ 1,094 $ 1,138 $ 664   $ (44 ) -4%   430   65%  
                                     
    Credit Metrics                                
    Classified loans1 to portfolio loans   0.38%   0.52%   0.83%     -0.14%       -0.45%      
    ACL to classified loans1   327.33%   246.11%   149.96%     81.22%       177.37%      
    Loans past due 30+ days to portfolio loans2   0.14%   0.03%   0.08%     0.11%       0.06%      
    Nonperforming assets to total assets   0.09%   0.10%   0.06%     -0.01%       0.03%      
    Nonaccruing loans to portfolio loans   0.16%   0.16%   0.10%     0.00%       0.06%      
                                     
    (1) Classified loans include loans rated substandard or worse and are defined as loans having a well-defined weakness or weaknesses related to the borrower’s financial capacity or to pledged collateral that may jeopardize the repayment of the debt. They are characterized by the possibility that the Bank may sustain some loss if the deficiencies giving rise to the substandard classification are not corrected.
    (2) Excludes non-accrual loans
                                     
    DEPOSIT COMPOSITION & CONCENTRATIONS (unaudited) Period Ended   Change from   % of Total  
         
    ($ in 000s)                                        
        Dec 31,   Sep 30,   Dec 31,     Sep 30, 2024 Dec 31, 2023   Dec 31, Sep 30, Dec 31,  
        2024   2024   2023     $ %   $ %   2024 2024 2023  
    Deposits                                        
    Interest-bearing demand $ 194,526 $ 183,337 $ 183,436   $ 11,189   6% $ 11,090   6%   19% 18% 18%  
    Money market   193,324   192,185   179,344     1,139   1%   13,980   8%   19% 19% 18%  
    Savings   115,520   117,131   136,408     (1,611 ) -1%   (20,888 ) -15%   11% 12% 13%  
    Time deposits (CDs)   135,485   133,995   100,832     1,490   1%   34,653   34%   13% 13% 10%  
    Total interest-bearing deposits   638,855   626,648   600,020     12,207   2%   38,835   6%   62% 62% 59%  
    Non-interest bearing demand   375,876   384,825   409,272     (8,949 ) -2%   (33,396 ) -8%   38% 38% 41%  
    Total deposits $ 1,014,731 $ 1,011,473 $ 1,009,292   $ 3,258   0% $ 5,439   1%   100% 100% 100%  
                                             
    Insured Deposits $ 629,600 $ 636,725 $ 647,330   $ (7,125 ) -1% $ (393,526 ) -61%   62% 63% 64%  
    Collateralized Deposits   131,327   122,448   129,895     8,879   7%   1,432   1%   13% 12% 13%  
    Uninsured Deposits   253,804   252,300   232,067     1,504   1%   397,533   171%   25% 25% 23%  
    Total Deposits $ 1,014,731 $ 1,011,473 $ 1,009,292   $ 3,258   0% $ 5,439   1%   100% 100% 100%  
                                             
    Consumer Deposits $ 466,826 $ 458,097 $ 470,425   $ 8,729   2% $ (3,599 ) -1%   46% 45% 46%  
    Business Deposits   406,308   420,845   398,977     (14,537 ) -3%   7,331   2%   40% 42% 40%  
    Public Deposits   141,597   132,531   139,890     9,066   7%   1,707   1%   14% 13% 14%  
    Total Deposits $ 1,014,731 $ 1,011,473 $ 1,009,292   $ 3,258   0% $ 5,439   1%   100% 100% 100%  
                                             
    NET INTEREST MARGIN (unaudited) Quarter Ended   Change From   Twelve Months Ended   Change   
           
    ($ in 000s)                                                  
        Dec 31,   Sep 30,   Dec 31,     Sep 30, 2024   Dec 31, 2023   Dec 31,   Dec 31,            
        2024   2024   2023     $   %   $   %   2024   2023     $ %  
                                                       
    Average Interest Bearing Balances                                                  
    Portfolio loans $ 703,811 $ 697,904 $ 675,622   $ 5,907   1% $ 28,189   4% $ 697,527 $ 659,165   $ 38,362   6%  
    Loans held for sale $ 1,033 $ 1,276 $ 709   $ (243 ) -19% $ 324   46% $ 1,125 $ 628   $ 497   79%  
    Investment securities $ 302,501 $ 285,947 $ 289,245   $ 16,554   6% $ 13,256   5% $ 291,133 $ 286,473   $ 4,660   2%  
    Interest-bearing cash $ 78,296 $ 81,755 $ 105,177   $ (3,459 ) -4% $ (26,881 ) -26% $ 72,893 $ 180,781   $ (107,888 ) -60%  
    Total interest-earning assets $ 1,085,641 $ 1,066,882 $ 1,070,753   $ 18,759   2% $ 14,888   1% $ 1,062,678 $ 1,127,047   $ (64,369 ) -6%  
    Non-interest bearing deposits $ 388,227 $ 383,332 $ 419,994   $ 4,895   1% $ (31,767 ) -8% $ 388,561 $ 448,234   $ (59,673 ) -13%  
    Interest-bearing deposits $ 628,475 $ 615,388 $ 593,464   $ 13,087   2% $ 35,011   6% $ 607,678 $ 620,026   $ (12,348 ) -2%  
    Total Deposits $ 1,016,702 $ 998,720 $ 1,013,458   $ 17,982   2% $ 3,244   0% $ 996,239 $ 1,068,260   $ (72,021 ) -7%  
    Borrowings $ 13,403 $ 13,403 $ 13,403   $ –   0% $ –   0% $ 13,403 $ 13,401   $ 2   0%  
    Total interest-bearing liabilities $ 641,878 $ 628,791 $ 606,867   $ 13,087   2% $ 35,011   6% $ 621,081 $ 633,427   $ (12,346 ) -2%  
                                                       
    Yield / Cost $(1)                                                  
    Portfolio loans $ 10,336 $ 10,509 $ 9,879   $ (173 ) -2% $ 457   5% $ 41,169 $ 37,088   $ 4,081   11%  
    Loans held for sale $ 16 $ 22 $ 12   $ (6 ) -27% $ 4   33% $ 71 $ 39   $ 32   82%  
    Investment securities $ 2,622 $ 2,535 $ 2,536   $ 87   3% $ 86   3% $ 10,107 $ 9,489   $ 618   7%  
    Interest-bearing cash $ 942 $ 1,108 $ 1,440   $ (166 ) -15% $ (498 ) -35% $ 3,833 $ 9,109   $ (5,276 ) -58%  
    Total interest-earning assets $ 13,916 $ 14,174 $ 13,867   $ (258 ) -2% $ 49   0% $ 55,180 $ 55,725   $ (545 ) -1%  
    Interest-bearing deposits $ 2,796 $ 2,684 $ 1,914   $ 112   4% $ 882   46% $ 9,829 $ 5,351   $ 4,478   84%  
    Borrowings $ 225 $ 243 $ 247   $ (18 ) -7% $ (22 ) -9% $ 951 $ 929   $ 22   2%  
    Total interest-bearing liabilities $ 3,021 $ 2,927 $ 2,161   $ 94   3% $ 860   40% $ 10,780 $ 6,280   $ 4,500   72%  
    Net interest income $ 10,895 $ 11,247 $ 11,706   $ (352 ) -3% $ (811 ) -7% $ 44,400 $ 49,445   $ (5,045 ) -10%  
                                                       
    Yield / Cost %(1)                                                  
    Yield on portfolio loans   5.84%   5.99%   5.80%     -0.15%       0.04%       5.90%   5.63%     0.27%      
    Yield on investment securities   3.45%   3.53%   3.48%     -0.08%       -0.03%       3.47%   3.31%     0.16%      
    Yield on interest-bearing cash   4.79%   5.39%   5.44%     -0.60%       -0.65%       5.26%   5.04%     0.22%      
    Cost of interest-bearing deposits   1.77%   1.74%   1.28%     0.03%       0.49%       1.62%   0.86%     0.76%      
    Cost of borrowings   6.68%   7.21%   7.31%     -0.53%       -0.63%       7.10%   6.93%     0.17%      
    Cost of deposits and borrowings   1.17%   1.15%   0.83%     0.02%       0.34%       1.07%   0.58%     0.49%      
                                                       
    Yield on interest-earning assets   5.10%   5.29%   5.14%     -0.19%       -0.04%       5.19%   4.94%     0.25%      
    Cost of interest-bearing liabilities   1.87%   1.85%   1.41%     0.02%       0.46%       1.74%   0.99%     0.75%      
    Net interest spread   3.23%   3.44%   3.73%     -0.21%       -0.50%       3.45%   3.95%     -0.50%      
    Net interest margin   3.99%   4.19%   4.34%     -0.20%       -0.35%       4.18%   4.39%     -0.21%      
                                                       
    (1) Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%.
                                                       
    ALLOWANCE FOR CREDIT LOSSES (ACL) (unaudited) Quarter Ended   Change From   Twelve Months Ended   Change   
           
    ($ in 000s)                                                            
        Dec 31,   Sep 30,   Dec 31,     Sep 30, 2024   Dec 31, 2023   Dec 31,   Dec 31,            
        2024   2024   2023     $ %   $ %   2024   2023     $ %  
    Allowance for Credit Losses                                                            
    Beginning of period balance $ 8,897   $ 8,859   $ 8,347     $ 38   0% $ 550   7% $ 8,530   $ 8,236     $ 294   4%  
    Impact of CECL Adoption (ASC 326)   –     –     –       –   -100%   –   -100%   –     (157 )     157   -100%  
    Charge-offs   (32 )   (5 )   (20 )     (27 ) 540%   (12 ) 60%   (129 )   (279 )     150   -54%  
    Recoveries   105     16     41       89   556%   64   156%   124     96       28   29%  
    Net (charge-off) recovery   73     11     21       62   564%   52   248%   (5 )   (183 )     178   -97%  
    Provision (benefit)   (119 )   27     162       (146 ) -541%   (281 ) -173%   326     634       (308 ) -49%  
    End of period balance $ 8,851   $ 8,897   $ 8,530     $ (46 ) -1% $ 321   4% $ 8,851   $ 8,530     $ 321   4%  
                                                                 
    Net charge-off (recovery) to                                                            
    average portfolio loans   -0.04%     -0.01%     -0.01%       -0.03%       -0.03%       0.00%     0.03%       -0.03%      
    ACL to portfolio loans   1.26%     1.27%     1.24%       -0.01%       0.02%       1.26%     1.24%       0.02%      
                                                                 
    Allowance for unfunded loans                                                            
    Beginning of period balance $ 524   $ 617   $ 749     $ (93 ) -15% $ (225 ) -30% $ 698   $ 203     $ 495   244%  
    Impact of CECL Adoption (ASC 326)   –     –     –       –   -100%   –   -100%   –     609       (609 ) -100%  
    Provision (benefit)   16     (93 )   (51 )     109   -117%   67   -131%   (158 )   (114 )     (44 ) 39%  
    End of period balance $ 540   $ 524   $ 698     $ 16   3% $ (158 ) -23% $ 540   $ 698     $ (158 ) -23%  
                                                                 

    ABOUT PACIFIC FINANCIAL CORPORATION

    Pacific Financial Corporation of Aberdeen, Washington, is the bank holding company for Bank of the Pacific, a state chartered and federally insured commercial bank. Bank of the Pacific offers banking products and services to small-to-medium sized businesses and professionals in western Washington and Oregon. At December 31, 2024, the Company had total assets of $1.15 billion and operated fifteen branches in the communities of Grays Harbor, Pacific, Thurston, Whatcom, Skagit, Clark and Wahkiakum counties in the State of Washington, and three branches in the communities of Clatsop and Clackamas counties in Oregon. The Company also operated loan production offices in the communities of Burlington, Washington and Salem, Oregon. Visit the Company’s website at www.bankofthepacific.com. Member FDIC.

    Cautions Concerning Forward-Looking Statements
    This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other laws, including all statements in this release that are not historical facts or that relate to future plans or events or projected results of Pacific Financial Corporation and its wholly-owned subsidiary, Bank of the Pacific. Such statements are based on information available at the time of communication and are based on current beliefs and expectations of the Company’s management and are subject to risks and uncertainties, many of which are beyond our control, which could cause actual events or results to differ materially from those projected, anticipated or implied, and could negatively impact the Company’s operating and stock price performance. These risks and uncertainties include various risks associated with growing the Bank and expanding the services it provides, development of new business lines and markets, competition in the marketplace, general economic conditions, changes in interest rates, extensive and evolving regulation of the banking industry, and many other risks. Any forward-looking statements in this communication are based on information at the time the statement is made. We undertake no obligation to update or revise any forward-looking statement. Readers of this release are cautioned not to put undue reliance on forward-looking statements.

    The MIL Network –

  • MIL-OSI: Patria Investments Announces Sale of Aguas Pacifico

    Source: GlobeNewswire (MIL-OSI)

    GRAND CAYMAN, Cayman Islands, Jan. 31, 2025 (GLOBE NEWSWIRE) — Patria Investments Limited (“Patria”) (NASDAQ: PAX), a global alternative asset manager, announced that Patria Infrastructure Fund III (“IS Fund III”) has substantially met the conditions precedent necessary for the sale of Aguas Pacifico, a multi-client water desalination project under construction in Chile, to Patria Infrastructure Fund V (“IS Fund V”) and other investors. The agreement for the transaction was signed in December 2024.

    The sale of this asset is expected to be completed in 1Q25 and will be supported by a number of global investors, including sovereign wealth funds and institutional investors, in addition to IS Fund V, highlighting the long-term attractiveness of this platform.

    The transaction reflects Patria’s long-term commitment to investing across infrastructure sectors in Latin America that address structural bottlenecks and generate positive impact on local economies and populations. Aguas Pacifico is located in Chile’s central region and is positioned for additional growth considering the strong demand and severe water scarcity in the region. It also illustrates the power of Patria’s strategic approach to infrastructure investment in the region, demonstrating our ability to develop and de-risk high-quality assets, partner with global investors, and generate attractive investment returns.

    About Patria Investments
    Crafting attractive returns for its clients and building a legacy in the regions where it operates. Patria is a leading alternative investment firm with over 35 years of history specializing in key resilient sectors. Its unique approach combines the knowledge from macro analysts, investment leaders, operating partners and on the ground team. With over U$44 billion in assets under management and a global presence, it aims to provide consistent returns in attractive long term investment opportunities while creating sustainable value for society.

    Asset Classes: Private Equity, Infrastructure, Credit, Public Equities, Real Estate and Global Private Markets Solutions
    Investment Regions: Latin America, Europe and United States

    Forward-Looking Statements
    This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by the use of words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “can,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include but are not limited to those described under the section entitled “Risk Factors” in our annual report on Form 20-F, as such factors may be updated from time to time in our periodic filings with the United States Securities and Exchange Commission (“SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our periodic filings. The forward-looking statements speak only as of the date of this press release, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

    Media Contact:
    Burson / +44 20 7113 3468 / patria@hillandknowlton.com

    Patria Shareholder Relations:
    +1 917 769 1611 / PatriaShareholderRelations@patria.com

    The MIL Network –

  • MIL-OSI: Airship AI Secures Follow-On Seven-Figure Contract Award with Fortune 100 Transportation & E-Commerce Company

    Source: GlobeNewswire (MIL-OSI)

    Acropolis Enterprise Video and Data Management Platform Supports Operational and Physical Security Requirements for Global Locations

    REDMOND, Wash., Jan. 31, 2025 (GLOBE NEWSWIRE) —  Airship AI Holdings, Inc. (NASDAQ: AISP) (“Airship AI” or the “Company”), a leader in AI-driven video, sensor, and data management surveillance solutions, today announced it has been awarded an additional one (1) year system maintenance and sustainment contract for an existing Fortune 100 customer leveraging the Company’s Acropolis Enterprise Video and Data Management platform supporting operational and physical security requirements.

    “Our follow-on expansion contract with this flagship customer is a testament to the Acropolis eco-system’s ability to enhance physical security at the scale needed for the large-scale operations of the world’s largest corporations,” said Paul Allen, President of Airship AI. “This allows the customer to continue to federate and manage global logistical operations from a single security operations center.

    “The seven-figure contract includes ongoing health monitoring, technical and engineering support, and software maintenance, demonstrating the ability to provide revenue from a mix of professional services in addition to our traditional software and hardware offerings. With employee safety and operational efficiency a key mission for this global Fortune 100 company, we look forward to further developing our suite of AI driven offerings to create additional efficiencies and continual improvements to operational effectiveness,” concluded Allen.

    Airship AI’s Acropolis backend enterprise management system enables customers to manage devices and sensors across their entire digital eco-system, via hardware deployed on-premises or in the cloud, while utilizing Artificial Intelligence (AI) at the edge and or the backend to optimize operational efficiency and improve real-time decision-making capabilities. Combining the sensor-agnostic nature of our Acropolis platform with an edge-based AI platform Outpost AI, customers can efficiently add “smarts” to existing edge sensors, avoiding costly and operationally disruptive rip and replace requirements.

    To experience how Airship AI and its suite of enterprise video and data management solutions can help your organization solve your complex video and data management challenges, please email your request to info@airship.ai.

    About Airship AI Holdings, Inc.

    Founded in 2006, Airship AI (NASDAQ: AISP) is a U.S. owned and operated technology company headquartered in Redmond, Washington. Airship AI is an AI-driven video, sensor and data management surveillance platform that improves public safety and operational efficiency for public sector and commercial customers by providing predictive analysis of events before they occur and meaningful intelligence to decision makers. Airship AI’s product suite includes Outpost AI edge hardware and software offerings, Acropolis enterprise management software stack, and Command family of visualization tools.

    For more information, visit https://airship.ai.

    Forward-Looking Statements

    The disclosure herein includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “project,” “forecast,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward looking. These forward-looking statements include, but are not limited to, (1) statements regarding estimates and forecasts of financial, performance and operational metrics and projections of market opportunity; (2) changes in the market for Airship AI’s services and technology, expansion plans and opportunities; (3) the projected technological developments of Airship AI; and (4) current and future potential commercial and customer relationships. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Airship AI’s management and are not predictions of actual performance. These forward-looking statements are also subject to a number of risks and uncertainties, as set forth in the section entitled “Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on April 1, 2024, and the other documents that the Company has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, forward looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its assessments to change. However, while it may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

    Investor Contact:

    Chris Tyson/Larry Holub
    MZ North America
    949-491-8235
    AISP@mzgroup.us

    The MIL Network –

  • MIL-OSI: Helport AI Opens Office in the Philippines

    Source: GlobeNewswire (MIL-OSI)

    New ‘Global Center of Excellence’ to Drive Artificial Intelligence Operations and Service Offerings in the Business Process Outsourcing Industry

    SINGAPORE and SAN DIEGO, Jan. 31, 2025 (GLOBE NEWSWIRE) — Helport AI Limited (NASDAQ: HPAI) (“Helport AI”), an AI technology company serving enterprise clients with intelligent customer communication software, services, and solutions, today announced the grand opening of its new office in the Philippines. Located at the IBM Plaza in Eastwood City, Quezon City, this facility is expected to establish Helport AI’s Global Center of Excellence for AI operations and training.

    The new office represents Helport AI’s commitment to fostering innovation in the business process outsourcing (BPO) industry and supporting the growing demand for advanced AI solutions in Southeast Asia. The office will serve as a hub for Helport AI’s research and development efforts.

    A Strategic Step for Helport AI

    Guanghai Li, CEO of Helport AI, highlighted the significance of this milestone during the opening ceremony. “Our decision to establish a presence in the Philippines underscores the immense potential of this region,” said Li. “The Philippines is home to a thriving BPO sector and a highly skilled workforce. We believe this office will play a pivotal role in advancing our AI-driven solutions, helping our clients achieve greater efficiency, enhancing customer satisfaction, and anticipating potential industry disruption.”

    The Philippines office will focus on refining Helport AI’s flagship product, an intelligent co-pilot software for call center agents. This technology provides real-time guidance to agents, optimizing customer interactions while reducing onboarding time and training costs. As an integral part of Helport AI’s portfolio, this tool has already proven its scalability, with clients reporting improved agent performance and operational efficiency.

    A Celebration of Innovation and Collaboration

    The grand opening event featured a series of keynotes and discussions, including a presentation on “The Future of AI in BPO” and a live demonstration of Helport AI’s software. The program concluded with a ribbon-cutting ceremony and a networking session attended by industry leaders, government officials, and alliance partners.

    Over fifty guests, including representatives from local BPO companies, investors, industry associations, and members of the news media, attended the gathering. They expressed interest in Helport AI’s solutions and demonstrated a desire for future collaboration, signaling the potential for partnerships in the region.

    Looking Ahead

    This new office marks another chapter in Helport AI’s journey toward redefining the future of AI in the BPO sector. With robust in-house AI training capabilities and a growing global footprint, Helport AI aspires to empower businesses, transform customer interactions, and drive sustainable growth.

    About Helport AI

    Helport AI (NASDAQ: HPAI) is an AI technology company dedicated to optimizing customer communication through its digital platform and intelligent software solutions. Offering enterprise level customer contact services, Helport AI’s mission is to empower everyone to work as an expert. Learn more at www.helport.ai.

    Forward-Looking Statements

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

    Helport AI Investor Relations:
    Website: https://ir.helport.ai/
    Email: ir@helport.ai

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

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9fdedad8-fef3-4e3b-8b9e-40960895c3a5

    The MIL Network –

  • MIL-OSI: Orrstown Financial Services, Inc. Reports Fourth Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    • Net income of $13.7 million, or $0.71 per diluted share, for the three months ended December 31, 2024 compared to net loss of $7.9 million, or $0.41 per diluted share, for the three months ended September 30, 2024; the fourth quarter of 2024 included $3.9 million in expenses related to the merger and $0.5 million for a legal settlement compared to $17.0 million in expenses related to the merger, $15.5 million of provision for credit losses on non-purchase credit deteriorated loans and $4.8 million for an executive retirement, net of taxes, for the third quarter of 2024;
    • Excluding the impact of the non-recurring charges referenced above, net income and diluted earnings per share, respectively, were $16.7 million(1) and $0.87(1) for the fourth quarter of 2024 compared to adjusted net income and diluted earnings per share of $21.4 million(1) and $1.11(1), respectively;
    • The Board of Directors declared a cash dividend of $0.26 per common share, payable February 21, 2025, to shareholders of record as of February 14, 2025; this represents an increase in the Company’s quarterly cash dividend of $0.03 per share, or 13%;
    • The previously announced cost save target of 18% has been achieved for the go-forward operating run rate as of December 31, 2024;
    • With the core conversion being completed in November 2024, the fourth quarter results reflected several ongoing activities associated with the conversion and the transitional period; the fourth quarter also included elevated salaries and employee benefit expenses due to year end performance-based incentive accruals;
    • Net interest margin, on a tax equivalent basis, was 4.05% in the fourth quarter of 2024 compared to 4.14% in the third quarter of 2024; the net accretion impact of purchase accounting marks was $7.2 million of net interest income, which represents 52 basis points of net interest margin for the fourth quarter of 2024 compared to $5.8 million of net interest income, which represents 42 basis points of net interest margin, for the third quarter of 2024;
    • Commercial loans declined by $59.5 million, or 2%, from September 30, 2024 to December 31, 2024 due primarily to strategic actions to reduce risk in the portfolio, including reducing commercial real estate (“CRE”) loan concentrations; a pool of mostly commercial and industrial loans totaling $6.0 million was sold, including $2.6 million of nonaccrual loans; total classified loans declined by $16.9 million during the fourth quarter of 2024;
    • Noninterest income decreased by $1.2 million to $11.2 million in the three months ended December 31, 2024 compared to $12.4 million in the three months ended September 30, 2024; this reduction was driven by certain courtesy fee waivers provided to clients as well as tax credits recognized in the third quarter of 2024 that did not recur in the fourth quarter;
    • The provision for credit losses was $1.8 million for the three months ended December 31, 2024, inclusive of a charge-off of $2.4 million for one commercial and industrial (C&I) relationship and charge-offs associated with the loan sale of $0.6 million, which was offset by the acceleration of a purchase mark for the same amount;
    • Tangible book value per common share(1) increased to $21.19 per share at December 31, 2024 compared to $21.12 per share at September 30, 2024.

    (1) Non-GAAP measure. See Appendix A for additional information.

    HARRISBURG, Pa., Jan. 31, 2025 (GLOBE NEWSWIRE) — Orrstown Financial Services, Inc. (NASDAQ: ORRF), the parent company of Orrstown Bank (the “Bank”), announced earnings for the three months ended December 31, 2024. Net income totaled $13.7 million for the three months ended December 31, 2024, compared to net loss of $7.9 million for the three months ended September 30, 2024 and net income of $7.6 million for the three months ended December 31, 2023. Diluted earnings per share was $0.71 for the three months ended December 31, 2024, compared to diluted loss per share of $0.41 for the three months ended September 30, 2024 and diluted earnings per share of $0.73 for the three months ended December 31, 2023. For the fourth quarter of 2024, excluding the impact of merger-related expenses and other non-recurring charges, net of taxes, net income and diluted earnings per share were $16.7 million(1) and $0.87(1), respectively. For the third quarter of 2024, excluding the impact of the merger-related expenses, net of taxes, net income and diluted earnings per share were $21.4 million(1) and $1.11(1), respectively. For the fourth quarter of 2023, excluding the impact from the merger-related expenses, net income and diluted earnings per share were $8.6 million(1) and $0.83(1), respectively.

    “While we are pleased with another year of strong core earnings, we are even more excited about what lies ahead,” said Thomas R. Quinn, Jr., President and Chief Executive Officer. “We successfully completed our core conversion in November and have achieved the targeted 18% cost savings in our future operating run rate of the two banks’ combined noninterest expense base. With the integration behind us, we look forward to returning our focus to growing the company, enhancing shareholder value and building the premier community banking franchise in our Pennsylvania and Maryland markets.”

    (1) Non-GAAP measure. See Appendix A for additional information.

    DISCUSSION OF RESULTS

    Balance Sheet

    Loans

    Loans held for investment was $3.9 billion at December 31, 2024, a decrease of $50.2 million, compared to $4.0 billion at September 30, 2024. The decrease from the third quarter of 2024 was primarily due to strategic actions to reduce risk in the portfolio, including reducing CRE loan concentrations.

    Investment Securities

    Investment securities, all of which are classified as available-for-sale, increased by $2.9 million to $829.7 million at December 31, 2024 from $826.8 million at September 30, 2024. During the fourth quarter of 2024, investment securities totaling $37.7 million were purchased, partially offset by paydowns of $18.1 million and net unrealized losses of $16.2 million. The overall duration of the Company’s investment securities portfolio was 4.1 years at December 31, 2024 compared to 4.6 years at September 30, 2024. See Appendix B for a summary of the Bank’s investment securities at December 31, 2024, highlighting their concentrations, credit ratings and credit enhancement levels.

    Deposits

    During the fourth quarter of 2024, deposits decreased by $35.1 million to $4.6 billion at December 31, 2024 compared to $4.7 billion at September 30, 2024 due to normal seasonal activity. The Bank’s loan-to-deposit ratio decreased slightly to 85% at December 31, 2024 from 86% at September 30, 2024.

    Borrowings

    The Bank actively manages its liquidity position through its various sources of funding to meet the needs of its clients. FHLB advances and other borrowings remained at $115.4 million at December 31, 2024 and September 30, 2024. The Bank seeks to maintain sufficient liquidity to ensure client needs can be addressed in a timely basis. The Bank had available alternative funding sources, such as FHLB advances and other wholesale options, of approximately $1.7 billion at December 31, 2024.

    Goodwill and Intangible Assets

    Goodwill decreased by $2.5 million from September 30, 2024 to December 31, 2024 due to certain purchase accounting adjustments, primarily an increase in the core deposit intangible of $4.1 million.

    Income Statement

    Net Interest Income and Margin

    Net interest income was $50.6 million for the three months ended December 31, 2024 compared to $51.7 million for the three months ended September 30, 2024. The net interest margin, on a tax equivalent basis, decreased to 4.05% in the fourth quarter of 2024 from 4.14% in the third quarter of 2024. The net interest margin was positively impacted by the net accretion impact of purchase accounting marks on loans, securities, deposits and borrowings of $7.2 million, which represents 52 basis points of net interest margin during the fourth quarter of 2024. During the third quarter of 2024, the net accretion impact of purchase accounting marks was $5.8 million, which represented 42 basis points of net interest margin. Funding costs show signs of stabilizing.

    Interest income on loans, on a tax equivalent basis, decreased by $2.7 million to $68.1 million for the three months ended December 31, 2024 compared to $70.8 million for the three months ended September 30, 2024. Average loans decreased by $28.0 million during the three months ended December 31, 2024 compared to the three months ended September 30, 2024.

    Interest income on investment securities, on a tax equivalent basis, was $9.9 million for the fourth quarter of 2024 compared to $10.1 million in the third quarter of 2024.

    Interest expense, on a tax equivalent basis, decreased by $1.9 million to $29.4 million for the three months ended December 31, 2024 compared to $31.3 million for the three months ended September 30, 2024. Average interest-bearing deposits decreased by $58.1 million during the three months ended December 31, 2024 compared to the three months ended September 30, 2024. Average borrowings decreased by $1.3 million during the three months ended December 31, 2024 compared to the three months ended September 30, 2024. Interest expense includes $0.9 million and $1.5 million of amortization of purchase accounting marks for the three months ended December 31, 2024 and September 30, 2024, respectively.

    Provision for Credit Losses

    The allowance for credit losses (“ACL”) on loans decreased to $48.7 million at December 31, 2024 from $49.6 million at September 30, 2024. The ACL to total loans was 1.24% at December 31, 2024 compared to 1.25% at September 30, 2024. The Company recorded a provision for credit losses on loans of $2.1 million for the three months ended December 31, 2024 compared to $14.1 million for the three months ended September 30, 2024. Net charge-offs were $3.0 million for the three months ended December 31, 2024 compared to net charge-offs of $0.3 million for the three months ended September 30, 2024. During the fourth quarter of 2024, the Bank sold $6.0 million of mostly C&I loans, which resulted in a charge-off totaling $0.6 million. There was also a corresponding $0.6 million of purchase accounting accretion associated with these loans.

    Classified loans decreased by $16.9 million to $88.6 million at December 31, 2024 from $105.5 million at September 30, 2024 primarily due to a combination of repayments and net rating upgrades, in addition to the loan sale. Non-accrual loans decreased by $2.8 million to $24.1 million at December 31, 2024 from $26.9 million at September 30, 2024 partially due to a sale of mostly C&I loans on nonaccrual status totaling $2.6 million during the fourth quarter of 2024. Nonaccrual loans to total loans decreased to 0.61% at December 31, 2024 compared to 0.68% at September 30, 2024 and decreased from 1.11% at December 31, 2023. Management believes the ACL to be adequate based on current asset quality metrics and economic conditions.

    Noninterest Income

    Noninterest income decreased by $1.2 million to $11.2 million in the three months ended December 31, 2024 from $12.4 million in the three months ended September 30, 2024. There were reduced service charges in the fourth quarter due to fee waivers provided to clients in the post-conversion period from November through the end of the year.

    Wealth management income decreased to $4.9 million in the three months ended December 31, 2024 compared to $5.0 million for the three months ended September 30, 2024. The team continues to provide value added services to clients and deliver strong results.

    Other income decreased by $0.3 million to $1.6 million in the three months ended December 31, 2024 compared to $1.9 million in the three months ended September 30, 2024 due to income from solar tax credits totaling $0.3 million recorded during the third quarter of 2024.

    Noninterest Expenses

    Noninterest expenses decreased by $17.4 million to $42.9 million in the three months ended December 31, 2024 from $60.3 million in the three months ended September 30, 2024.

    The Company’s financial results for any periods ended prior to July 1, 2024 reflect Orrstown’s results only on a standalone basis. As a result of this factor and the merger-related items below, the Company’s financial results for the fourth quarter of 2024 may not be directly comparable to prior reported periods.

    For the three months ended December 31, 2024, merger-related expenses totaled $3.9 million, a decrease of $13.1 million, compared to $17.0 million for the three months ended September 30, 2024. The merger costs incurred during the fourth quarter of 2024 include employee separation costs, software conversion costs and professional fees. The Company expect to incur some additional merger-related expenses in the first quarter of 2025.

    Salaries and benefits expense decreased by $4.8 million to $22.4 million for the three months ended December 31, 2024 compared to $27.2 million for the three months ended September 30, 2024. The three months ended September 30, 2024 included $4.8 million of expenses associated with the retirement of an executive.

    Intangible asset amortization increased to $2.8 million for the three months ended December 31, 2024 compared to $2.5 million for the three months ended September 30, 2024. This increase is due to the amortization expense recognized on the core deposit intangible of $40.1 million and wealth customer relationship intangible of $10.4 million established on July 1, 2024 from the merger. Due to the aforementioned purchase accounting adjustment, the three months ended December 31, 2024 included $0.4 million of additional amortization expense associated with this adjustment.

    Taxes other than income decreased by $0.8 million in the three months ended December 31, 2024 compared to the three months ended September 30, 2024. This decrease reflects tax credits recognized during the fourth quarter of 2024.

    Income Taxes

    The Company’s effective tax rate was 20.1% for both the fourth and third quarters of 2024. The Company’s effective tax rate for the three months ended December 31, 2024 is less than the 21% federal statutory rate primarily due to tax-exempt income, including interest earned on tax-exempt loans and securities and income from life insurance policies and tax credits partially offset by the disallowed portion of interest expense against earnings in association with the Bank’s tax-exempt investments under the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”) and the impact of nondeductible merger-related costs. The Company regularly analyzes its projected taxable income and makes adjustments to the provision for income taxes accordingly.

    Capital

    Shareholders’ equity totaled $516.7 million at December 31, 2024 compared to $516.2 million at September 30, 2024. The impact of net income of $13.7 million was offset by a reduction of $10.4 million in accumulated other comprehensive loss from an increase in unrealized losses in the investment portfolio and dividend payments of $4.4 million.

    Tangible book value per share(1) increased to $21.19 per share at December 31, 2024 from $21.12 per share at September 30, 2024.

    The Company’s tangible common equity ratio was 7.5% at both December 31, 2024 and September 30, 2024. The Company’s total risk-based capital ratio was 12.4% at both December 31, 2024 and September 30, 2024. The Company’s Tier 1 leverage ratio increased to 8.3% at December 31, 2024 compared to 8.0% at September 30, 2024 driven by earnings and a decrease in average assets during the fourth quarter of 2024.

    At December 31, 2024, all four capital ratios applicable to the Company were above regulatory minimum levels to be deemed “well capitalized” under current bank regulatory guidelines. The Company continues to believe that capital is adequate to support the risks inherent in the balance sheet, as well as growth requirements.

    (1) Non-GAAP measure. See Appendix A for additional information.

    Investor Relations Contact:
    Neelesh Kalani
    Executive Vice President, Chief Financial Officer
    Phone (717) 510-7097
    FINANCIAL HIGHLIGHTS (Unaudited)              
                   
      Three Months Ended   Twelve Months Ended
      December 31,   December 31,   December 31,   December 31,
    (In thousands)   2024       2023       2024       2023  
                   
    Profitability for the period:              
    Net interest income $ 50,573     $ 26,018     $ 155,254     $ 104,906  
    Provision for credit losses   1,755       418       16,546       1,682  
    Noninterest income   11,247       6,491       37,435       25,652  
    Noninterest expenses   42,930       22,392       148,337       83,843  
    Income before income tax expense   17,135       9,699       27,806       45,033  
    Income tax expense   3,451       2,056       5,756       9,370  
    Net income available to common shareholders $ 13,684     $ 7,643     $ 22,050     $ 35,663  
                   
    Financial ratios:              
    Return on average assets (1)   1.00 %     1.00 %     0.51 %     1.19 %
    Return on average assets, adjusted (1) (2) (3)   1.22 %     1.13 %     1.30 %     1.22 %
    Return on average equity (1)   10.54 %     12.21 %     5.62 %     14.66 %
    Return on average equity, adjusted (1) (2) (3)   12.86 %     13.77 %     14.29 %     15.06 %
    Net interest margin (1)   4.05 %     3.71 %     3.92 %     3.80 %
    Efficiency ratio   69.4 %     68.9 %     77.0 %     64.2 %
    Efficiency ratio, adjusted (2) (3)   62.3 %     65.6 %     62.5 %     63.4 %
    Income per common share:              
    Basic $ 0.72     $ 0.74     $ 1.49     $ 3.45  
    Basic, adjusted (2) (3) $ 0.87     $ 0.84     $ 3.80     $ 3.54  
    Diluted $ 0.71     $ 0.73     $ 1.48     $ 3.42  
    Diluted, adjusted (2) (3) $ 0.87     $ 0.83     $ 3.76     $ 3.51  
                   
    Average equity to average assets   9.45 %     8.18 %     9.08 %     8.11 %
                   
    (1) Annualized for the three months ended December 31, 2024 and 2023.
    (2) Ratio has been adjusted for the non-recurring charges for all periods presented.
    (3) Non-GAAP based financial measure. Please refer to Appendix A – Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations for a discussion of our use of non-GAAP based financial measures, including tables reconciling GAAP and non-GAAP financial measures appearing herein.
    FINANCIAL HIGHLIGHTS (Unaudited)      
    (continued)      
      December 31,   December 31,
    (Dollars in thousands, except per share amounts)   2024       2023  
    At period-end:      
    Total assets $ 5,431,023     $ 3,064,240  
    Loans, net of allowance for credit losses   3,882,525       2,269,611  
    Loans held-for-sale, at fair value   6,614       5,816  
    Securities available for sale, at fair value   829,711       513,519  
    Total deposits   4,615,706       2,558,814  
    FHLB advances and other borrowings and Securities sold under agreements to repurchase   141,227       147,285  
    Subordinated notes and trust preferred debt   68,680       32,093  
    Shareholders’ equity   516,682       265,056  
           
    Credit quality and capital ratios (1):      
    Allowance for credit losses to total loans   1.24 %     1.25 %
    Total nonaccrual loans to total loans   0.61 %     1.11 %
    Nonperforming assets to total assets   0.45 %     0.83 %
    Allowance for credit losses to nonaccrual loans   202 %     112 %
    Total risk-based capital:      
    Orrstown Financial Services, Inc.   12.4 %     13.0 %
    Orrstown Bank   12.4 %     12.8 %
    Tier 1 risk-based capital:      
    Orrstown Financial Services, Inc.   10.2 %     10.8 %
    Orrstown Bank   11.2 %     11.6 %
    Tier 1 common equity risk-based capital:      
    Orrstown Financial Services, Inc.   10.0 %     10.8 %
    Orrstown Bank   11.2 %     11.6 %
    Tier 1 leverage capital:      
    Orrstown Financial Services, Inc.   8.3 %     8.9 %
    Orrstown Bank   9.1 %     9.5 %
           
    Book value per common share $ 26.65     $ 24.98  
           
    (1) Capital ratios are estimated for the current period, subject to regulatory filings. The Company elected the three-year phase in option for the day-one impact of ASU 2016-13 for current expected credit losses (“CECL”) to regulatory capital. Beginning in 2023, the Company adjusted retained earnings, allowance for credit losses includable in tier 2 capital and the deferred tax assets from temporary differences in risk weighted assets by the permitted percentage of the day-one impact from adopting the CECL standard.
    CONSOLIDATED BALANCE SHEETS (Unaudited)      
           
    (Dollars in thousands, except per share amounts) December 31, 2024   December 31, 2023
    Assets      
    Cash and due from banks $ 51,026     $ 32,586  
    Interest-bearing deposits with banks   187,282       32,575  
    Cash and cash equivalents   238,308       65,161  
    Restricted investments in bank stocks   20,232       11,992  
    Securities available for sale (amortized cost of $864,920 and $549,089 at December 31, 2024 and December 31, 2023, respectively)   829,711       513,519  
    Loans held for sale, at fair value   6,614       5,816  
    Loans   3,931,214       2,298,313  
    Less: Allowance for credit losses   (48,689 )     (28,702 )
    Net loans   3,882,525       2,269,611  
    Premises and equipment, net   50,217       29,393  
    Cash surrender value of life insurance   143,854       73,204  
    Goodwill   68,106       18,724  
    Other intangible assets, net   47,765       2,414  
    Accrued interest receivable   21,058       13,630  
    Deferred tax assets, net   42,647       22,017  
    Other assets   79,986       38,759  
    Total assets $ 5,431,023     $ 3,064,240  
           
    Liabilities      
    Deposits:      
    Noninterest-bearing $ 886,786     $ 430,959  
    Interest-bearing   3,728,920       2,127,855  
    Total deposits   4,615,706       2,558,814  
    Securities sold under agreements to repurchase and federal funds purchased   25,863       9,785  
    FHLB advances and other borrowings   115,364       137,500  
    Subordinated notes and trust preferred debt   68,680       32,093  
    Other liabilities   88,728       60,992  
    Total liabilities   4,914,341       2,799,184  
           
    Shareholders’ Equity      
    Preferred stock, $1.25 par value per share; 500,000 shares authorized; no shares issued or outstanding   —       —  
    Common stock, no par value—$0.05205 stated value per share; 50,000,000 shares authorized; 19,722,640 shares issued and 19,389,967 outstanding at December 31, 2024; 11,204,599 shares issued and 10,612,390 outstanding at December 31, 2023   1,027       583  
    Additional paid—in capital   423,274       189,027  
    Retained earnings   126,540       117,667  
    Accumulated other comprehensive loss   (26,316 )     (28,476 )
    Treasury stock— 332,673 and 592,209 shares, at cost at December 31, 2024 and December 31, 2023, respectively   (7,843 )     (13,745 )
    Total shareholders’ equity   516,682       265,056  
    Total liabilities and shareholders’ equity $ 5,431,023     $ 3,064,240  
    ORRSTOWN FINANCIAL SERVICES, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
                     
        Three Months Ended   Twelve Months Ended
        December 31,   December 31,   December 31,   December 31,
    (Dollars in thousands, except per share amounts)     2024       2023       2024       2023  
    Interest income                
    Loans   $ 67,870     $ 33,910     $ 210,287     $ 126,595  
    Investment securities – taxable     8,773       4,787       27,361       18,031  
    Investment securities – tax-exempt     880       871       3,521       3,462  
    Short-term investments     2,492       460       7,764       1,809  
    Total interest income     80,015       40,028       248,933       149,897  
    Interest expense                
    Deposits     26,850       12,118       84,234       37,510  
    Securities sold under agreements to repurchase and federal funds purchased     67       30       215       114  
    FHLB advances and other borrowings     1,165       1,358       4,945       5,350  
    Subordinated notes and trust preferred debt     1,360       504       4,285       2,017  
    Total interest expense     29,442       14,010       93,679       44,991  
    Net interest income     50,573       26,018       155,254       104,906  
    Provision for credit losses     1,755       418       16,546       1,682  
    Net interest income after provision for credit losses     48,818       25,600       138,708       103,224  
    Noninterest income                
    Service charges     2,050       1,198       6,893       4,866  
    Interchange income     1,608       952       5,259       3,873  
    Swap fee income     597       588       1,676       1,039  
    Wealth management income     4,902       2,945       16,353       11,340  
    Mortgage banking activities     517       143       1,835       591  
    Investment securities (losses) gains     (5 )     (39 )     249       (47 )
    Other income     1,578       704       5,170       3,990  
    Total noninterest income     11,247       6,491       37,435       25,652  
    Noninterest expenses                
    Salaries and employee benefits     22,444       12,848       76,581       50,983  
    Occupancy, furniture and equipment     4,893       2,534       14,570       9,593  
    Data processing     1,540       1,247       6,088       4,913  
    Advertising and bank promotions     878       501       2,587       2,157  
    FDIC insurance     955       460       2,677       1,960  
    Professional services     1,591       702       4,142       2,905  
    Taxes other than income     (312 )     203       734       1,050  
    Intangible asset amortization     2,838       236       5,742       953  
    Merger-related expenses     3,887       1,059       22,671       1,059  
    Restructuring expenses     39       —       296       —  
    Other operating expenses     4,177       2,602       12,249       8,270  
    Total noninterest expenses     42,930       22,392       148,337       83,843  
    Income before income tax expense     17,135       9,699       27,806       45,033  
    Income tax expense     3,451       2,056       5,756       9,370  
    Net income   $ 13,684     $ 7,643     $ 22,050     $ 35,663  
    continued
                     
        Three Months Ended   Twelve Months Ended
        December 31,   December 31,   December 31,   December 31,
          2024       2023       2024       2023  
    Share information:                
    Basic earnings per share   $ 0.72     $ 0.74     $ 1.49     $ 3.45  
    Diluted earnings per share   $ 0.71     $ 0.73     $ 1.48     $ 3.42  
    Dividends paid per share   $ 0.23     $ 0.20     $ 0.86     $ 0.80  
    Weighted average shares – basic     19,118       10,321       14,761       10,340  
    Weighted average shares – diluted     19,300       10,419       14,914       10,435  
    ANALYSIS OF NET INTEREST INCOME        
    Average Balances and Interest Rates, Taxable-Equivalent Basis (Unaudited)    
         
      Three Months Ended
      12/31/2024   9/30/2024   6/30/2024   3/31/2024   12/31/2023
          Taxable-   Taxable-       Taxable-   Taxable-       Taxable-   Taxable-       Taxable-   Taxable-       Taxable-   Taxable-
      Average   Equivalent   Equivalent   Average   Equivalent   Equivalent   Average   Equivalent   Equivalent   Average   Equivalent   Equivalent   Average   Equivalent   Equivalent
    (In thousands) Balance   Interest   Rate   Balance   Interest   Rate   Balance   Interest   Rate   Balance   Interest   Rate   Balance   Interest   Rate
    Assets                                                          
    Federal funds sold & interest-bearing bank balances $ 199,236   $ 2,492     4.96 %   $ 184,465   $ 2,452     5.29 %   $ 142,868   $ 1,864     5.25 %   $ 74,523   $ 956     5.16 %   $ 37,873   $ 460     4.82 %
    Investment securities (1)(2)   849,389     9,887     4.66       849,700     10,123     4.77       538,451     6,114     4.54       519,851     5,694     4.39       508,891     5,890     4.63  
    Loans (1)(3)(4)(5)(6)   3,961,269     68,073     6.82       3,989,259     70,849     7.07       2,324,942     35,690     6.17       2,308,103     36,382     6.34       2,286,678     34,055     5.91  
    Total interest-earning assets   5,009,894     80,452     6.38       5,023,424     83,424     6.61       3,006,261     43,668     5.84       2,902,477     43,032     5.96       2,833,442     40,405     5.67  
    Other assets   454,271             491,719             204,863             196,295             204,382        
    Total assets $ 5,464,165           $ 5,515,143           $ 3,211,124           $ 3,098,772           $ 3,037,824        
    Liabilities and Shareholders’ Equity                                                
    Interest-bearing demand deposits(7) $ 1,257,316     5,360     1.69     $ 2,554,743     16,165     2.52     $ 1,649,753     10,118     2.47     $ 1,570,622     9,192     2.35     $ 1,543,575     8,333     2.14  
    Savings deposits(7)   1,538,287     10,381     2.68       283,337     148     0.21       165,467     140     0.34       170,005     144     0.34       178,351     153     0.34  
    Time deposits   998,963     11,109     4.41       1,014,628     12,290     4.82       481,721     5,007     4.18       428,443     4,180     3.92       392,085     3,632     3.67  
    Total interest-bearing deposits   3,794,566     26,850     2.81       3,852,708     28,603     2.95       2,296,941     15,265     2.67       2,169,070     13,516     2.51       2,114,011     12,118     2.27  
    Securities sold under agreements to repurchase and federal funds purchased   21,572     67     1.23       23,075     96     1.66       13,412     27     0.81       12,010     25     0.85       13,874     30     0.85  
    FHLB advances and other borrowings   115,373     1,165     4.01       115,388     1,154     3.98       115,000     1,152     4.03       137,505     1,474     4.31       127,843     1,358     4.21  
    Subordinated notes and trust preferred debt   68,571     1,360     7.88       68,399     1,437     8.36       32,118     734     9.19       32,100     754     9.45       32,083     504     6.29  
    Total interest-bearing liabilities   4,000,082     29,442     2.92       4,059,570     31,290     3.07       2,457,471     17,178     2.81       2,350,685     15,769     2.70       2,287,811     14,010     2.43  
    Noninterest-bearing demand deposits   849,999             807,886             423,037             417,469             441,695        
    Other liabilities   97,685             110,017             57,828             62,329             59,876        
    Total liabilities   4,947,766             4,977,473             2,938,336             2,830,483             2,789,382        
    Shareholders’ equity   516,399             537,670             272,788             268,289             248,442        
    Total $ 5,464,165           $ 5,515,143           $ 3,211,124           $ 3,098,772           $ 3,037,824        
    Taxable-equivalent net interest income / net interest spread       51,010     3.46 %         52,134     3.55 %         26,490     3.02 %         27,263     3.26 %         26,395     3.24 %
    Taxable-equivalent net interest margin         4.05 %           4.14 %           3.54 %           3.77 %           3.71 %
    Taxable-equivalent adjustment       (437 )             (437 )             (387 )             (382 )             (377 )    
    Net interest income     $ 50,573             $ 51,697             $ 26,103             $ 26,881             $ 26,018      
    Ratio of average interest-earning assets to average interest-bearing liabilities         125 %           124 %           122 %           123 %           124 %
                                                               
    NOTES:                                                          
    (1) Yields and interest income on tax-exempt assets have been computed on a taxable-equivalent basis assuming a 21% tax rate.
    (2) Average balance of investment securities is computed at fair value.
    (3) Average balances include nonaccrual loans.
    (4) Interest income on loans includes prepayment and late fees, where applicable.
    (5) Interest income on loans includes interest recovered of $1.6 million from the payoff of a commercial real estate loan on nonaccrual status in the three months ended March 31, 2024.
    (6) Interest income on loans includes accretion on purchase accounting marks of $7.6 million, $7.3 million, $0.2 million, $0.1 million and $0.1 million for the three months ended December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, respectively.
    (7) Changes between average deposit type balances are due to operational updates for deposit sweeps during the three months ended December 31, 2024.
    ANALYSIS OF NET INTEREST INCOME        
    Average Balances and Interest Rates, Taxable-Equivalent Basis (Unaudited)    
    (continued)                      
      Twelve Months Ended
      December 31, 2024   December 31, 2023
          Taxable-   Taxable-       Taxable-   Taxable-
      Average   Equivalent   Equivalent   Average   Equivalent   Equivalent
    (In thousands) Balance   Interest   Rate   Balance   Interest   Rate
    Assets                      
    Federal funds sold & interest-bearing bank balances $ 150,500     $ 7,764       5.14 %   $ 40,856     $ 1,809       4.43 %
    Investment securities (1)(2)   690,223       31,817       4.60       520,465       22,414       4.31  
    Loans (1)(3)(4)(5)(6)   3,150,425       210,994       6.68       2,239,574       127,107       5.68  
    Total interest-earning assets   3,991,148       250,575       6.26       2,800,895       151,330       5.40  
    Other assets   330,324               198,632          
    Total assets $ 4,321,472             $ 2,999,527          
    Liabilities and Shareholders’ Equity                      
    Interest-bearing demand deposits(7) $ 1,147,124       21,455       1.87     $ 1,525,204       26,944       1.77  
    Savings deposits(7)   1,153,097       30,193       2.61       198,157       585       0.30  
    Time deposits   732,446       32,586       4.44       338,170       9,981       2.95  
    Total interest-bearing deposits   3,032,667       84,234       2.77       2,061,531       37,510       1.82  
    Securities sold under agreements to repurchase and federal funds purchased   17,543       215       1.22       14,111       114       0.80  
    FHLB advances and other borrowings   120,787       4,945       4.08       123,697       5,350       4.32  
    Subordinated notes and trust preferred debt   50,397       4,285       8.48       32,058       2,017       6.29  
    Total interest-bearing liabilities   3,221,394       93,679       2.91       2,231,397       44,991       2.02  
    Noninterest-bearing demand deposits   625,714               470,349          
    Other liabilities   82,084               54,447          
    Total liabilities   3,929,192               2,756,193          
    Shareholders’ equity   392,280               243,334          
    Total liabilities and shareholders’ equity $ 4,321,472             $ 2,999,527          
    Taxable-equivalent net interest income / net interest spread       156,896       3.36 %         106,339       3.39 %
    Taxable-equivalent net interest margin           3.92 %             3.80 %
    Taxable-equivalent adjustment       (1,642 )             (1,433 )    
    Net interest income     $ 155,254             $ 104,906      
    Ratio of average interest-earning assets to average interest-bearing liabilities           124 %             126 %
                           
    NOTES TO ANALYSIS OF NET INTEREST INCOME:
    (1) Yields and interest income on tax-exempt assets have been computed on a taxable-equivalent basis assuming a 21% tax rate.
    (2) Average balance of investment securities is computed at fair value.
    (3) Average balances include nonaccrual loans.
    (4) Interest income on loans includes prepayment and late fees, where applicable.
    (5) Interest income on loans includes interest recovered of $1.6 million from the payoff of a commercial real estate loan on nonaccrual status for the twelve months ended December 31, 2024.
    (6) Interest income on loans includes accretion on purchase accounting marks of $15.2 million and $0.7 million for the twelve months ended December 31, 2024 and 2023, respectively.
    (7) Changes between average deposit type balances are due to operational updates for deposit sweeps during the three months ended December 31, 2024.
    ORRSTOWN FINANCIAL SERVICES, INC.        
    HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)        
                       
    (In thousands) December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Profitability for the quarter:                  
    Net interest income $ 50,573     $ 51,697     $ 26,103     $ 26,881     $ 26,018  
    Provision for credit losses   1,755       13,681       812       298       418  
    Noninterest income   11,247       12,386       7,172       6,630       6,491  
    Noninterest expenses   42,930       60,299       22,639       22,469       22,392  
    Income (loss) before income taxes   17,135       (9,897 )     9,824       10,744       9,699  
    Income tax expense (benefit)   3,451       (1,994 )     2,086       2,213       2,056  
    Net income (loss) $ 13,684     $ (7,903 )   $ 7,738     $ 8,531     $ 7,643  
                       
    Financial ratios:                  
    Return on average assets (1)   1.00 %     (0.57) %     0.97 %     1.11 %     1.00 %
    Return on average assets, adjusted (1)(2)(3)   1.22 %     1.55 %     1.09 %     1.19 %     1.13 %
    Return on average equity (1)   10.54 %     (5.85) %     11.41 %     12.79 %     12.21 %
    Return on average equity, adjusted (1)(2)(3)   12.86 %     15.85 %     12.88 %     13.79 %     13.77 %
    Net interest margin (1)   4.05 %     4.14 %     3.54 %     3.77 %     3.71 %
    Efficiency ratio   69.4 %     94.1 %     68.0 %     67.0 %     68.9 %
    Efficiency ratio, adjusted (2)(3)   62.3 %     67.2 %     64.6 %     65.0 %     65.6 %
                       
    Per share information:                  
    Income (loss) per common share:                  
    Basic $ 0.72     $ (0.41 )   $ 0.74     $ 0.82     $ 0.74  
    Basic, adjusted (2)(3)   0.87       1.12       0.84       0.89       0.84  
    Diluted   0.71       (0.41 )     0.73       0.81       0.73  
    Diluted, adjusted (2)(3)   0.87       1.11       0.83       0.88       0.83  
    Book value   26.65       26.65       25.97       25.38       24.98  
    Book value, adjusted (2) (3)   28.40       28.24       26.12       25.44       25.07  
    Tangible book value (3)   21.19       21.12       24.08       23.47       23.03  
    Tangible book value, adjusted (2) (3)   22.94       22.72       24.23       23.53       23.12  
    Cash dividends paid   0.23       0.23       0.20       0.20       0.20  
                       
    Average basic shares   19,118       19,088       10,393       10,349       10,321  
    Average diluted shares   19,300       19,226       10,553       10,482       10,419  
                                           
    (1) Annualized.
    (2) Ratio has been adjusted for non-recurring expenses for all periods presented.
    (3) Non-GAAP based financial measure. Please refer to Appendix A – Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations for a discussion of our use of non-GAAP based financial measures, including tables reconciling GAAP and non-GAAP financial measures appearing herein.
    ORRSTOWN FINANCIAL SERVICES, INC.                
    HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)        
    (continued)                  
    (In thousands) December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Noninterest income:                  
    Service charges $ 2,050     $ 2,360     $ 1,283     $ 1,200     $ 1,198  
    Interchange income   1,608       1,779       961       911       952  
    Swap fee income   597       505       375       199       588  
    Wealth management income   4,902       5,037       3,312       3,102       2,945  
    Mortgage banking activities   517       491       369       458       143  
    Other income   1,578       1,943       884       765       704  
    Investment securities (losses) gains   (5 )     271       (12 )     (5 )     (39 )
    Total noninterest income $ 11,247     $ 12,386     $ 7,172     $ 6,630     $ 6,491  
                       
    Noninterest expenses:                  
    Salaries and employee benefits $ 22,444     $ 27,190     $ 13,195     $ 13,752     $ 12,848  
    Occupancy, furniture and equipment   4,893       4,333       2,705       2,639       2,534  
    Data processing   1,540       2,046       1,237       1,265       1,247  
    Advertising and bank promotions   878       537       774       398       501  
    FDIC insurance   955       862       419       441       460  
    Professional services   1,591       1,119       801       631       702  
    Taxes other than income   (312 )     503       49       494       203  
    Intangible asset amortization   2,838       2,464       215       225       236  
    Merger-related expenses   3,887       16,977       1,135       672       1,059  
    Restructuring expenses   39       257       —       —       —  
    Other operating expenses   4,177       4,011       2,109       1,952       2,602  
    Total noninterest expenses $ 42,930     $ 60,299     $ 22,639     $ 22,469     $ 22,392  
    HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)            
    (continued)                  
    (In thousands) December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Balance Sheet at quarter end:                  
    Cash and cash equivalents $ 238,308     $ 236,780     $ 132,509     $ 182,722     $ 65,161  
    Restricted investments in bank stocks   20,232       20,247       11,147       11,453       11,992  
    Securities available for sale   829,711       826,828       529,082       514,909       513,519  
    Loans held for sale, at fair value   6,614       3,561       1,562       535       5,816  
    Loans:                  
    Commercial real estate:                  
    Owner occupied   633,567       622,726       371,301       364,280       373,757  
    Non-owner occupied   1,160,238       1,164,501       710,477       707,871       694,638  
    Multi-family   274,135       276,296       151,542       147,773       150,675  
    Non-owner occupied residential   179,512       190,786       89,156       91,858       95,040  
    Agricultural   125,156       129,486       25,551       25,909       26,847  
    Commercial and industrial   451,384       471,983       349,425       339,615       340,238  
    Acquisition and development:                  
    1-4 family residential construction   47,432       56,383       32,439       22,277       24,516  
    Commercial and land development   241,424       262,317       129,883       118,010       115,249  
    Municipal   30,044       27,960       10,594       10,925       9,812  
    Total commercial loans   3,142,892       3,202,438       1,870,368       1,828,518       1,830,772  
    Residential mortgage:                  
    First lien   460,297       451,195       271,153       270,748       266,239  
    Home equity – term   5,988       6,508       4,633       4,966       5,078  
    Home equity – lines of credit   303,561       303,165       192,736       189,966       186,450  
    Installment and other loans   18,476       18,131       8,713       8,875       9,774  
    Total loans   3,931,214       3,981,437       2,347,603       2,303,073       2,298,313  
    Allowance for credit losses   (48,689 )     (49,630 )     (29,864 )     (29,165 )     (28,702 )
    Net loans held for investment   3,882,525       3,931,807       2,317,739       2,273,908       2,269,611  
    Goodwill   68,106       70,655       18,724       18,724       18,724  
    Other intangible assets, net   47,765       46,144       1,974       2,189       2,414  
    Total assets   5,431,023       5,470,589       3,198,782       3,183,331       3,064,240  
    Total deposits   4,615,706       4,650,853       2,702,884       2,695,951       2,558,814  
    FHLB advances and other borrowings and Securities sold under agreements to repurchase   141,227       137,310       129,625       127,099       147,285  
    Subordinated notes and trust preferred debt   68,680       68,510       32,128       32,111       32,093  
    Total shareholders’ equity   516,682       516,206       278,376       271,682       265,056  
    HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)            
    (continued)                  
      December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Capital and credit quality measures (1):                  
    Total risk-based capital:                  
    Orrstown Financial Services, Inc.   12.4 %     12.4 %     13.3 %     13.4 %     13.0 %
    Orrstown Bank   12.4 %     12.2 %     13.1 %     13.1 %     12.8 %
    Tier 1 risk-based capital:                  
    Orrstown Financial Services, Inc.   10.2 %     10.0 %     11.1 %     11.2 %     10.8 %
    Orrstown Bank   11.2 %     11.0 %     12.0 %     11.9 %     11.6 %
    Tier 1 common equity risk-based capital:                  
    Orrstown Financial Services, Inc.   10.0 %     9.8 %     11.1 %     11.2 %     10.8 %
    Orrstown Bank   11.2 %     11.0 %     12.0 %     11.9 %     11.6 %
    Tier 1 leverage capital:                  
    Orrstown Financial Services, Inc.   8.3 %     8.0 %     8.9 %     9.0 %     8.9 %
    Orrstown Bank   9.1 %     8.8 %     9.5 %     9.6 %     9.5 %
                       
    Average equity to average assets   9.45 %     9.75 %     8.50 %     8.66 %     8.18 %
    Allowance for credit losses to total loans   1.24 %     1.25 %     1.27 %     1.27 %     1.25 %
    Total nonaccrual loans to total loans   0.61 %     0.68 %     0.36 %     0.56 %     1.11 %
    Nonperforming assets to total assets   0.45 %     0.49 %     0.26 %     0.40 %     0.83 %
    Allowance for credit losses to nonaccrual loans   202 %     184 %     357 %     226 %     112 %
                       
    Other information:                  
    Net charge-offs (recoveries) $ 3,002     $ 269     $ 113     $ (42 )   $ (6 )
    Classified loans   88,628       105,465       48,722       48,997       55,030  
    Nonperforming and other risk assets:                  
    Nonaccrual loans   24,111       26,927       8,363       12,886       25,527  
    Other real estate owned   138       138       —       —       —  
    Total nonperforming assets   24,249       27,065       8,363       12,886       25,527  
    Financial difficulty modifications still accruing   4,897       9,497       —       —       9  
    Loans past due 90 days or more and still accruing   641       337       187       99       66  
    Total nonperforming and other risk assets $ 29,787     $ 36,899     $ 8,550     $ 12,985     $ 25,602  
     
    (1) Capital ratios are estimated for the current period, subject to regulatory filings. The Company elected the three-year phase in option for the day-one impact of ASU 2016-13 for current expected credit losses (“CECL”) to regulatory capital. Beginning in 2023, the Company adjusted retained earnings, allowance for credit losses includable in tier 2 capital and the deferred tax assets from temporary differences in risk weighted assets by the permitted percentage of the day-one impact from adopting the new CECL standard.


    Appendix A – Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations

    Management believes providing certain other “non-GAAP” financial information will assist investors in their understanding of the effect on recent financial results from non-recurring charges.

    As a result of acquisitions, the Company has intangible assets consisting of goodwill, core deposit and other intangible assets, which totaled $115.9 million and $21.1 million at December 31, 2024 and December 31, 2023, respectively. In addition, during the three months ended December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, the Company incurred $3.9 million, $17.0 million, $1.1 million, $0.7 million and $1.1 million in merger-related expenses, respectively. During the three months ended December 31, 2024 and September 30, 2024, the Company incurred other non-recurring charges totaling $0.5 million and $20.2 million, respectively.

    Tangible book value per common share and the impact of the non-recurring expenses on net income and associated ratios, as used by the Company in this earnings release, are determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). While we believe this information is a useful supplement to GAAP based measures presented in this earnings release, readers are cautioned that this non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results and financial condition as reported under GAAP, nor are such measures necessarily comparable to non-GAAP performance measures that may be presented by other companies. This supplemental presentation should not be construed as an inference that our future results will be unaffected by similar adjustments to be determined in accordance with GAAP.

    The following tables present the computation of each non-GAAP based measure:

    (In thousands)

    Tangible Book Value per Common Share   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Shareholders’ equity (most directly comparable GAAP-based measure)   $ 516,682     $ 516,206     $ 278,376     $ 271,682     $ 265,056  
    Less: Goodwill     68,106       70,655       18,724       18,724       18,724  
    Other intangible assets     47,765       46,144       1,974       2,189       2,414  
    Related tax effect     (10,031 )     (9,690 )     (415 )     (460 )     (507 )
    Tangible common equity (non-GAAP)   $ 410,842     $ 409,097     $ 258,093     $ 251,229     $ 244,425  
                         
    Common shares outstanding     19,390       19,373       10,720       10,705       10,612  
                         
    Book value per share (most directly comparable GAAP-based measure)   $ 26.65     $ 26.65     $ 25.97     $ 25.38     $ 24.98  
    Intangible assets per share     5.46       5.53       1.89       1.91       1.95  
    Tangible book value per share (non-GAAP)   $ 21.19     $ 21.12     $ 24.08     $ 23.47     $ 23.03  
    (In thousands) Three Months Ended   Twelve Months Ended
    Adjusted Ratios for Non-recurring Charges December 31,
    2024    		   September 30, 2024   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Net income (loss) (A) – most directly comparable GAAP-based measure $ 13,684     $ (7,903 )   $ 7,738     $ 8,531     $ 7,643     $ 22,050     $ 35,663  
    Plus: Merger-related expenses (B)   3,887       16,977       1,135       672       1,059       22,671       1,059  
    Plus: Executive retirement expenses (B)   35       4,758       —       —       —       4,793       —  
    Plus: Provision for credit losses on non-PCD loans (B)   —       15,504       —       —       —       15,504       —  
    Plus: Provision for legal settlement (B)   478       —       —       —       —       478       —  
    Less: Related tax effect (C)   (1,386 )     (7,915 )     (139 )     (1 )     (79 )     (9,442 )     (79 )
    Adjusted net income (D=A+B-C) – Non-GAAP $ 16,698     $ 21,421     $ 8,734     $ 9,202     $ 8,623     $ 56,054     $ 36,643  
                               
    Average assets (E) $ 5,464,165     $ 5,515,143     $ 3,211,124     $ 3,098,772     $ 3,037,824     $ 4,321,472     $ 2,999,527  
    Return on average assets (= A / E) – most directly comparable GAAP-based measure (1)   1.00 %      (0.57) %     0.97 %     1.11 %     1.00 %     0.51 %     1.19 %
    Return on average assets, adjusted (= D / E) – Non-GAAP (1)   1.22 %     1.55 %     1.09 %     1.19 %     1.13 %     1.30 %     1.22 %
                               
    Average equity (F) $ 516,399     $ 537,670     $ 272,788     $ 268,289     $ 248,442     $ 392,280     $ 243,334  
    Return on average equity (= A / F) – most directly comparable GAAP-based measure (1)   10.54 %     (5.85) %     11.41 %     12.79 %     12.21 %     5.62 %     14.66 %
    Return on average equity, adjusted (= D / F) – Non-GAAP (1)   12.86 %     15.85 %     12.88 %     13.79 %     13.77 %     14.29 %     15.06 %
                               
    Weighted average shares – basic (G) – most directly comparable GAAP-based measure   19,118       19,088       10,393       10,349       10,321       14,761       10,340  
    Basic earnings (loss) per share (= A / G) – most directly comparable GAAP-based measure $ 0.72     $ (0.41 )   $ 0.74     $ 0.82     $ 0.74     $ 1.49     $ 3.45  
    Basic earnings per share, adjusted (= D / G) – Non-GAAP $ 0.87     $ 1.12     $ 0.84     $ 0.89     $ 0.84     $ 3.80     $ 3.54  
                               
    Weighted average shares – diluted (H) – most directly comparable GAAP-based measure   19,300       19,226       10,553       10,482       10,419       14,914       10,435  
    Diluted earnings (loss) per share (= A / H) – most directly comparable GAAP-based measure $ 0.71     $ (0.41 )   $ 0.73     $ 0.81     $ 0.73     $ 1.48     $ 3.42  
    Diluted earnings per share, adjusted (= D / H) – Non-GAAP $ 0.87     $ 1.11     $ 0.83     $ 0.88     $ 0.83     $ 3.76     $ 3.51  
                               
    continued
    (1) Annualized                          
      Three Months Ended   Twelve Months Ended
      December 31,
    2024    		   September 30, 2024   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Noninterest expense (I) – most directly comparable GAAP-based measure $ 42,930     $ 60,299     $ 22,639     $ 22,469     $ 22,392     $ 148,337     $ 83,843  
    Less: Merger-related expenses (B)   (3,887 )     (16,977 )     (1,135 )     (672 )     (1,059 )     (22,671 )     (1,059 )
    Less: Executive retirement expenses (B)   (35 )     (4,758 )     —       —       —       (4,793 )     —  
    Less: Provision for legal settlement (B)   (478 )     —       —       —       —       (478 )     —  
    Adjusted noninterest expense (J = I – B) – Non-GAAP $ 38,531     $ 38,564     $ 21,504     $ 21,797     $ 21,333     $ 120,396     $ 82,784  
                               
    Net interest income (K) $ 50,573     $ 51,697     $ 26,103     $ 26,881     $ 26,018     $ 155,254     $ 104,906  
    Noninterest income (L)   11,247       12,386       7,172       6,630       6,491       37,435       25,652  
    Total operating income (M = K + L) $ 61,820     $ 64,083     $ 33,275     $ 33,511     $ 32,509     $ 192,689     $ 130,558  
                               
    Efficiency ratio (= I / M) – most directly comparable GAAP-based measure   69.4 %     94.1 %     68.0 %     67.0 %     68.9 %     77.0 %     64.2 %
    Efficiency ratio, adjusted (= J / M) – Non-GAAP   62.3 %     60.2 %     64.6 %     65.0 %     65.6 %     62.5 %     63.4 %
                               
    (1) Annualized                          


    Appendix B – Investment Portfolio Concentrations

    The following table summarizes the credit ratings and collateral associated with the Company’s investment security portfolio, excluding equity securities, at December 31, 2024:

    (In thousands)

    Sector Portfolio
    Mix    		   Amortized
    Book    		   Fair Value   Credit Enhancement   AAA   AA   A   BBB   NR   Collateral / Guarantee Type
    Unsecured ABS — %   $ 3,073   $ 2,854   27 %   — %   — %   — %   — %   100 %   Unsecured Consumer Debt
    Student Loan ABS 1       4,060     4,035   27     —     —     —     —     100     Seasoned Student Loans
    Federal Family Education Loan ABS 9       80,121     80,063   11     7     81     —     12     —     Federal Family Education Loan (1)
    PACE Loan ABS —       1,985     1,727   7     100     —     —     —     —     PACE Loans (2)
    Non-Agency CMBS 2       15,920     15,901   27     —     —     —     —     100      
    Non-Agency RMBS 2       16,555     14,528   16     100     —     —     —     —     Reverse Mortgages (3)
    Municipal – General Obligation 12       99,515     90,767       11     82     7     —     —      
    Municipal – Revenue 14       120,903     109,261       —     82     12     —     6      
    SBA ReRemic (5) —       2,283     2,278       —     100     —     —     —     SBA Guarantee (4)
    Small Business Administration 1       5,926     6,263       —     100     —     —     —     SBA Guarantee (4)
    Agency MBS 19       160,027     155,778       —     100     —     —     —     Residential Mortgages (4)
    Agency CMO 38       332,380     326,045       —     100     —     —     —      
    U.S. Treasury securities 2       20,043     18,063       —     100     —     —     —     U.S. Government Guarantee (4)
    Corporate bonds —       1,935     1,954       —     —     52     48     —      
      100 %   $ 864,726   $ 829,517       4 %   89 %   3 %   1 %   3 %    
                                           
    (1) 97% guaranteed by U.S. government
    (2) PACE acronym represents Property Assessed Clean Energy loans
    (3) Non-agency reverse mortgages with current structural credit enhancements
    (4) Guaranteed by U.S. government or U.S. government agencies
    (5) SBA ReRemic acronym represents Re-Securitization of Real Estate Mortgage Investment Conduits
                                           
    Note: Ratings in table are the lowest of the six rating agencies (Standard & Poor’s, Moody’s, Fitch, Morningstar, DBRS and Kroll Bond Rating Agency). Standard & Poor’s rates U.S. government obligations at AA+.


    About the Company

    With $5.4 billion in assets, Orrstown Financial Services, Inc. and its wholly-owned subsidiary, Orrstown Bank, provide a wide range of consumer and business financial services in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry, and York Counties, Pennsylvania and Anne Arundel, Baltimore, Harford, Howard, and Washington Counties, Maryland, as well as Baltimore City, Maryland. The Company’s lending area also includes adjacent counties in Pennsylvania and Maryland, as well as Loudon County, Virginia and Berkeley, Jefferson and Morgan Counties, West Virginia. Orrstown Bank is an Equal Housing Lender and its deposits are insured up to the legal maximum by the FDIC. Orrstown Financial Services, Inc.’s common stock is traded on Nasdaq (ORRF). For more information about Orrstown Financial Services, Inc. and Orrstown Bank, visit www.orrstown.com.

    Cautionary Note Regarding Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements reflect the current views of the Company’s management with respect to, among other things, future events and the Company’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates, predictions or projections about events or the Company’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Accordingly, the Company cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements and there can be no assurances that the Company will achieve the desired level of new business development and new loans, growth in the balance sheet and fee-based revenue lines of business, cost savings initiatives and continued reductions in risk assets or mitigation of losses in the future. Factors which could cause the actual results of the Company’s operations to differ materially from expectations include, but are not limited to: general economic conditions (including inflation and concerns about liquidity) on a national basis or in the local markets in which the Company operates; ineffectiveness of the Company’s strategic growth plan due to changes in current or future market conditions; changes in interest rates; the diversion of management’s attention from ongoing business operations and opportunities; the effects of competition and how it may impact our community banking model, including industry consolidation and development of competing financial products and services; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in laws and regulations; changes in credit quality; inability to raise capital, if necessary, under favorable conditions; volatility in the securities markets; the demand for our products and services; deteriorating economic conditions; geopolitical tensions; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters and future pandemics; expenses associated with litigation and legal proceedings; the possibility that the anticipated benefits of the merger with Codorus (the “Merger”) are not realized when expected or at all; the possibility that the Merger may be more expensive to complete than anticipated; the possibility that revenues following the Merger may be lower than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Merger; the ability to complete the integration of the two companies successfully; the dilution caused by the Company’s issuance of additional shares of its capital stock in connection with the Merger; and other risks and uncertainties, including those detailed in our Annual Report on Form 10-K for the year ended December 31, 2023 under the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in subsequent filings made with the Securities and Exchange Commission.

    The foregoing list of factors is not exhaustive. If one or more events related to these or other risks or uncertainties materializes, or if the Company’s underlying assumptions prove to be incorrect, actual results may differ materially from what the Company anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and the Company disclaims any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New risks and uncertainties arise from time to time, and it is not possible for the Company to predict those events or how they may affect it. In addition, the Company cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that the Company or persons acting on the Company’s behalf may issue.

    The review period for subsequent events extends up to and includes the filing date of a public company’s financial statements, when filed with the Securities and Exchange Commission. Accordingly, the consolidated financial information presented in this announcement is subject to change. Annualized, pro forma, projected and estimated numbers in this document are used for illustrative purposes only and are not forecasts and may not reflect actual results.

    The MIL Network –

  • MIL-OSI United Kingdom: Free training on offer to help boost city centre business

    Source: Scotland – City of Aberdeen

    Aberdeen City Council, in partnership with  Aberdeen Grampian Chamber of Commerce, is offering free tailored training sessions to help to city centre businesses.

    The sessions take place on Monday 10 and Tuesday 18 February and cover business resilience and building long-term strategic relationships respectively.

    The sessions are part of the Business Toolkit, launched earlier in January , designed to support best practice, knowledge sharing and networking, and a proactive adaptable, approach to the challenges and opportunities of a changing high street.

    Aberdeen City Council Co-Leader Councillor Ian Yuill said: “The Council, in partnership with the Chamber of Commerce, is taking a proactive approach in helping city centre businesses adapt to the ever-evolving environment in which they operate.

    “The two free sessions will focus on building the capabilities and relationships which can help operators future-proof their business in times of change. I would encourage businesses to take advantage of these opportunities.”

    Aberdeen City Council Finance and Resources convener Councillor Alex McLellan said: “The Council’s aim is to support businesses in all sectors and ensure that the city centre thrives even in the face of changing consumer spending habits and other challenges.

    “Our commitment to a vibrant city centre with a mix of attractions and businesses that will attract visitors from far and wide. The two training sessions are just part of a toolkit specifically designed to deliver on that ambition.”

    The first training session will be held at Aberdeen Art Gallery with the second taking place at Marsichal College.

    For more information on the training sessions and the business toolkit, visit:

    Business toolkit | Aberdeen City Council

    MIL OSI United Kingdom –

  • MIL-OSI Economics: RBI imposes monetary penalty on Equitas Small Finance Bank Limited

    Source: Reserve Bank of India

    The Reserve Bank of India (RBI) has, by an order dated January 20, 2025, imposed a monetary penalty of ₹65 lakh (Rupees Sixty Five Lakh only) on Equitas Small Finance Bank Limited (the bank) for non-compliance with certain directions issued by RBI on ‘Levy of Foreclosure Charges/Pre-payment Penalty on Floating Rate Term Loans’ and ‘Credit Flow to Agriculture – Collateral free agricultural loans’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.

    The Statutory Inspection for Supervisory Evaluation (ISE) of the bank was conducted by RBI with reference to its financial position as on March 31, 2023. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with RBI directions.

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

    The bank:

    1. levied foreclosure charges on certain floating rate term loans sanctioned to individual borrowers for purposes other than business; and

    2. obtained collateral security for certain agricultural loans amounting up to ₹1.6 lakh.

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

    (Puneet Pancholy)  
    Chief General Manager

    Press Release: 2024-2025/2061

    MIL OSI Economics –

  • MIL-OSI Economics: Phillips 66 Reports Fourth-Quarter Results and Announces Next Phase of Strategic Initiatives

    Source: Phillips

    Fourth Quarter
    Reported fourth-quarter earnings of $8 million or $0.01 per share; adjusted loss of $61 million or $0.15 per share
    Earnings impacted by $230 million pre-tax of accelerated depreciation related to Los Angeles Refinery
    Returned $1.1 billion to shareholders through dividends and share repurchases
    Record NGL fractionation and LPG export volumes in Midstream
    Record clean product yield in Refining
    Surpassed targeted $3 billion in announced asset dispositions
    Full-Year 2024
    Earnings of $2.1 billion or $4.99 per share and adjusted earnings of $2.6 billion or $6.15 per share
    $4.2 billion of operating cash flow, $4.8 billion excluding working capital
    $5.3 billion returned to shareholders through dividends and share repurchases
    Second consecutive year above industry-average crude utilization
    Achieved $1.5 billion in run-rate business transformation savings and $500 million in synergy capture from successful DCP integration

    HOUSTON–(BUSINESS WIRE)– Phillips 66 (NYSE: PSX), a leading integrated downstream energy provider, announced fourth-quarter earnings.
    “During the fourth quarter, we achieved our strategic priority targets for shareholder distributions and asset dispositions,” said Mark Lashier, chairman and CEO. “We also delivered on our goal of improving Refining performance by continuing to run above industry-average crude utilization, setting record clean product yields and achieving our targeted cost reductions of $1 per barrel.
    “In support of our Midstream wellhead-to-market strategy, we recently announced an agreement to acquire EPIC’s NGL business, bolstering our Permian and Gulf Coast footprint,” said Lashier. “Upon closing, these assets will be accretive to earnings and highly integrated with our existing infrastructure, providing additional opportunities to enhance returns and shareholder value.”
    Lashier added, “Building on our successes, I am pleased to announce that we have set new financial and operational targets that prioritize debt reduction, a lowered cost structure and EBITDA growth. Supported by world-class operations, we are committed to returning over 50% of operating cash flow to shareholders.”
    On behalf of the Board of Directors, Glenn Tilton, lead independent director, remarked, “2024 was a pivotal year for Phillips 66. The team executed well on an ambitious set of strategic priorities, substantially improving the company’s competitiveness, and is well positioned to successfully deliver on a new set of targets through 2027.”
    Financial Results Summary (in millions of dollars, except as indicated)

     

     

    4Q 2024

    3Q 2024

    Earnings

    $

    8

    346

    Adjusted Earnings (Loss)1

     

    (61)

    859

    Adjusted EBITDA1

     

    1,130

    1,998

    Earnings (Loss) Per Share

     

     

    Earnings Per Share – Diluted

     

    0.01

    0.82

    Adjusted Earnings (Loss) Per Share – Diluted1

     

    (0.15)

    2.04

    Cash Flow From Operations

     

    1,198

    1,132

    Cash Flow From Operations, Excluding Working Capital1

     

    901

    1,513

    Capital Expenditures & Investments2

     

    506

    358

    Return of Capital to Shareholders

     

    1,119

    1,277

    Repurchases of common stock

     

    647

    800

    Dividends paid on common stock

     

    472

    477

    Cash

     

    1,738

    1,637

    Debt

     

    20,062

    19,998

    Debt-to-capital ratio

     

    41%

    40%

    Net debt-to-capital ratio1

     

    39%

    38%

    1Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release.

    2Excludes net acquisitions of $58 million and $567 million in the fourth and third quarters of 2024, respectively, and purchases of government obligations of $1.1 billion in the third quarter of 2024.

    Segment Financial and Operating Highlights (in millions of dollars, except as indicated)

     

     

    4Q 2024

    3Q 2024

    Change

     

    Earnings (Loss)1

    $

    8

    346

    (338)

    Midstream

     

    673

    644

    29

    Chemicals

     

    107

    342

    (235)

    Refining

     

    (775)

    (108)

    (667)

    Marketing and Specialties

     

    252

    (22)

    274

    Renewable Fuels

     

    28

    (116)

    144

    Corporate and Other

     

    (298)

    (327)

    29

    Income tax (expense) benefit

     

    38

    (44)

    82

    Noncontrolling interests

     

    (17)

    (23)

    6

     

     

     

     

    Adjusted Earnings (Loss)1,2

    $

    (61)

    859

    (920)

    Midstream

     

    708

    672

    36

    Chemicals

     

    72

    342

    (270)

    Refining

     

    (759)

    (67)

    (692)

    Marketing and Specialties

     

    185

    583

    (398)

    Renewable Fuels

     

    28

    (116)

    144

    Corporate and Other

     

    (294)

    (327)

    33

    Income tax (expense) benefit

     

    16

    (205)

    221

    Noncontrolling interests

     

    (17)

    (23)

    6

     

     

     

     

    Adjusted EBITDA2

    $

    1,130

    1,998

    (868)

    Midstream

     

    938

    892

    46

    Chemicals

     

    209

    466

    (257)

    Refining

     

    (298)

    188

    (486)

    Marketing and Specialties

     

    307

    656

    (349)

    Renewable Fuels

     

    50

    (92)

    142

    Corporate and Other

     

    (76)

    (112)

    36

     

     

     

     

    Operating Highlights

     

     

     

    Pipeline Throughput – Y-Grade to Market (MB/D)3

     

    759

    762

    (3)

    Chemicals Global O&P Capacity Utilization

     

    98%

    98%

    —%

    Refining

     

     

     

    Turnaround Expense

     

    123

    137

    (14)

    Realized Margin ($/BBL)2

     

    6.08

    8.31

    (2.23)

    Crude Capacity Utilization

     

    94%

    94%

    —%

    Clean Product Yield

     

    88%

    87%

    1%

    Renewable Fuels Produced (MB/D)

     

    42

    44

    (2)

    1Segment reporting is pre-tax.

     

     

     

    2Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release.

    3Represents volumes delivered to major fractionation hubs, including Mont Belvieu, Sweeny and Conway. Includes 100% of DCP Midstream Class A Segment and Phillips 66’s direct interest in DCP Sand Hills Pipeline, LLC and DCP Southern Hills Pipeline, LLC

    Fourth-Quarter 2024 Financial Results
    Reported earnings were $8 million for the fourth quarter of 2024 versus $346 million in the third quarter. Fourth-quarter earnings included pre-tax special item adjustments of $67 million in the Marketing and Specialties segment, $35 million in the Chemicals segment, $(35) million in the Midstream segment, $(16) million in the Refining segment, and $(4) million impacting the Corporate and Other segment. Adjusted losses for the fourth quarter were $61 million versus earnings of $859 million in the third quarter.
    Midstream fourth-quarter 2024 adjusted pre-tax income increased compared with the third quarter mainly due to higher NGL margins and volumes.
    Chemicals adjusted pre-tax income decreased mainly due to lower margins, as well as higher turnaround and maintenance costs.
    Refining adjusted pre-tax loss increased primarily due to a decline in realized margins largely driven by lower market crack spreads and accelerated depreciation associated with the planned ceasing of operations at the Los Angeles Refinery, partially offset by a higher clean product yield.
    Marketing and Specialties adjusted pre-tax income decreased primarily due to seasonally lower margins.
    Renewable Fuels pre-tax results increased primarily due to higher margins at the Rodeo Complex and stronger international results.
    Corporate and Other adjusted pre-tax loss decreased mainly due to lower net interest expense and employee-related costs, partially offset by depreciation expense.
    As of Dec. 31, 2024, the company had $1.7 billion of cash and cash equivalents and $4.6 billion of committed capacity available under credit facilities.
    Strategic Priorities Update
    Phillips 66 successfully delivered on its strategic priorities first announced in October 2022. The company remains committed to leveraging its integrated portfolio to enhance long-term shareholder value and is announcing its next phase of priorities through 2027. Highlights include:
    Delivering shareholder returns by returning greater than 50% of operating cash flow to shareholders;
    Executing world-class operations by achieving 2% higher than industry-average crude utilization and targeting annual adjusted controllable costs of $5.50 per barrel in Refining, excluding adjusted turnaround expense;
    Delivering disciplined growth and returns by growing Midstream and Chemicals mid-cycle adjusted EBITDA $1 billion in total by 2027; and
    Maintaining financial strength and flexibility by reducing total debt to $17 billion.
    Additional details will be covered in our investor webcast.
    Investor Webcast
    Members of Phillips 66 executive management will host a webcast at noon ET to provide an update on the company’s strategic initiatives and discuss the company’s fourth-quarter performance. To access the webcast and view related presentation materials, go to phillips66.com/investors and click on “Events & Presentations.” For detailed supplemental information, go to phillips66.com/supplemental.
    About Phillips 66
    Phillips 66 (NYSE: PSX) is a leading integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company’s portfolio includes Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn.
    Use of Non-GAAP Financial Information —This news release includes the terms “adjusted earnings (loss),” “adjusted pre-tax income (loss),” “adjusted EBITDA,” “adjusted earnings (loss) per share,” “refining realized margin per barrel,” “cash from operations, excluding working capital,” and “net debt-to-capital ratio.” These are non-GAAP financial measures that are included to help facilitate comparisons of operating performance across periods and to help facilitate comparisons with other companies in our industry. Where applicable, these measures exclude items that do not reflect the core operating results of our businesses in the current period or other adjustments to reflect how management analyzes results. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release.
    References in the release to earnings refer to net income attributable to Phillips 66. References to run-rate business transformation savings include cost savings and other benefits that will be captured in the sales and other operating revenues impacting gross margin; purchased crude oil and products costs impacting gross margin; operating expenses; selling, general and administrative expenses; and equity in earnings of affiliates lines on our consolidated statement of income when realized. Run-rate savings include run-rate sustaining capital savings. Run-rate sustaining capital savings include savings that will be captured in the capital expenditures and investments on our consolidated statement of cash flows when realized.
    Basis of Presentation — Effective April 1, 2024, we changed the internal financial information reviewed by our chief executive officer to evaluate performance and allocate resources to our operating segments. This included changes in the composition of our operating segments, as well as measurement changes for certain activities between our operating segments. The primary effects of this realignment included establishment of a Renewable Fuels operating segment, which includes renewable fuels activities and assets historically reported in our Refining, Marketing and Specialties (M&S), and Midstream segments; change in method of allocating results for certain Gulf Coast distillate export activities from our M&S segment to our Refining segment; reclassification of certain crude oil and international clean products trading activities between our M&S segment and our Refining segment; and change in reporting of our investment in NOVONIX from our Midstream segment to Corporate and Other. Accordingly, prior period results have been recast for comparability.
    In the third quarter of 2024, we began presenting the line item “Capital expenditures and investments” on our consolidated statement of cash flows exclusive of acquisitions, net of cash acquired. Accordingly, prior period information has been reclassified for comparability.
    Cautionary Statement for the Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995 —This news release contains forward-looking statements within the meaning of the federal securities laws relating to Phillips 66’s operations, strategy and performance. Words such as “anticipated,” “estimated,” “expected,” “planned,” “scheduled,” “targeted,” “believe,” “continue,” “intend,” “will,” “would,” “objective,” “goal,” “project,” “efforts,” “strategies” and similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements included in this news release are based on management’s expectations, estimates and projections as of the date they are made. These statements are not guarantees of future events or performance, and you should not unduly rely on them as they involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include: changes in governmental policies or laws that relate to our operations, including regulations that seek to limit or restrict refining, marketing and midstream operations or regulate profits, pricing, or taxation of our products or feedstocks, or other regulations that restrict feedstock imports or product exports; our ability to timely obtain or maintain permits necessary for projects; fluctuations in NGL, crude oil, refined petroleum, renewable fuels and natural gas prices, and refining, marketing and petrochemical margins; the effects of any widespread public health crisis and its negative impact on commercial activity and demand for refined petroleum or renewable fuels products; changes to worldwide government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs including the renewable fuel standards program, low carbon fuel standards and tax credits for renewable fuels; potential liability from pending or future litigation; liability for remedial actions, including removal and reclamation obligations under existing or future environmental regulations; unexpected changes in costs for constructing, modifying or operating our facilities; our ability to successfully complete, or any material delay in the completion of, any asset disposition, acquisition, shutdown or conversion that we have announced or may pursue, including receipt of any necessary regulatory approvals or permits related thereto; unexpected difficulties in manufacturing, refining or transporting our products; the level and success of drilling and production volumes around our midstream assets; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products, renewable fuels or specialty products; lack of, or disruptions in, adequate and reliable transportation for our products; failure to complete construction of capital projects on time or within budget; our ability to comply with governmental regulations or make capital expenditures to maintain compliance with laws; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets, which may also impact our ability to repurchase shares and declare and pay dividends; potential disruption of our operations due to accidents, weather events, including as a result of climate change, acts of terrorism or cyberattacks; general domestic and international economic and political developments, including armed hostilities (such as the Russia-Ukraine war), expropriation of assets, and other diplomatic developments; international monetary conditions and exchange controls; changes in estimates or projections used to assess fair value of intangible assets, goodwill and property and equipment and/or strategic decisions with respect to our asset portfolio that cause impairment charges; investments required, or reduced demand for products, as a result of environmental rules and regulations; changes in tax, environmental and other laws and regulations (including alternative energy mandates); political and societal concerns about climate change that could result in changes to our business or increase expenditures, including litigation-related expenses; the operation, financing and distribution decisions of equity affiliates we do not control; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

    Earnings (Loss)

     

     

     

     

     

     

     

    Millions of Dollars

     

    2024

     

    2023

     

    4Q

    3Q

    Year

     

    4Q

    Year

    Midstream

    $

    673

     

    644

     

    2,638

     

     

    759

     

    2,819

     

    Chemicals

     

    107

     

    342

     

    876

     

     

    106

     

    600

     

    Refining

     

    (775

    )

    (108

    )

    (365

    )

     

    859

     

    5,340

     

    Marketing and Specialties

     

    252

     

    (22

    )

    1,011

     

     

    396

     

    1,897

     

    Renewable Fuels

     

    28

     

    (116

    )

    (198

    )

     

    (11

    )

    153

     

    Corporate and Other

     

    (298

    )

    (327

    )

    (1,287

    )

     

    (348

    )

    (1,340

    )

    Pre-Tax Income (Loss)

     

    (13

    )

    413

     

    2,675

     

     

    1,761

     

    9,469

     

    Less: Income tax expense (benefit)

     

    (38

    )

    44

     

    500

     

     

    476

     

    2,230

     

    Less: Noncontrolling interests

     

    17

     

    23

     

    58

     

     

    25

     

    224

     

    Phillips 66

    $

    8

     

    346

     

    2,117

     

     

    1,260

     

    7,015

     

     

     

     

     

     

     

     

    Adjusted Earnings (Loss)

     

     

     

     

     

     

     

    Millions of Dollars

     

    2024

     

    2023

     

    4Q

    3Q

    Year

     

    4Q

    Year

    Midstream

    $

    708

     

    672

     

    2,746

     

     

    757

     

    2,672

     

    Chemicals

     

    72

     

    342

     

    841

     

     

    106

     

    600

     

    Refining

     

    (759

    )

    (67

    )

    (211

    )

     

    842

     

    5,367

     

    Marketing and Specialties

     

    185

     

    583

     

    1,490

     

     

    396

     

    1,897

     

    Renewable Fuels

     

    28

     

    (116

    )

    (198

    )

     

    (11

    )

    153

     

    Corporate and Other

     

    (294

    )

    (327

    )

    (1,283

    )

     

    (298

    )

    (1,110

    )

    Pre-Tax Income (Loss)

     

    (60

    )

    1,087

     

    3,385

     

     

    1,792

     

    9,579

     

    Less: Income tax expense (benefit)

     

    (16

    )

    205

     

    693

     

     

    405

     

    2,173

     

    Less: Noncontrolling interests

     

    17

     

    23

     

    88

     

     

    25

     

    243

     

    Phillips 66

    $

    (61

    )

    859

     

    2,604

     

     

    1,362

     

    7,163

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Millions of Dollars

     

    Except as Indicated

     

    2024

     

    2023

     

    4Q

    3Q

    Year

     

    4Q

    Year

    Reconciliation of Consolidated Earnings to Adjusted Earnings (Loss)

     

     

     

     

     

     

    Consolidated Earnings

    $

    8

     

    346

     

    2,117

     

     

    1,260

     

    7,015

     

    Pre-tax adjustments:

     

     

     

     

     

     

    Certain tax impacts

     

    (9

    )

    —

     

    (9

    )

     

    (19

    )

    (19

    )

    Impairments1

     

    35

     

    28

     

    450

     

     

    —

     

    —

     

    Net gain on asset dispositions2

     

    (67

    )

    —

     

    (305

    )

     

    —

     

    (123

    )

    Change in inventory method for acquired business

     

    —

     

    —

     

    —

     

     

    —

     

    (46

    )

    Winter-storm-related costs (recovery)

     

    (35

    )

    —

     

    (35

    )

     

    —

     

    —

     

    Los Angeles Refinery cessation costs3

     

    7

     

    41

     

    48

     

     

    —

     

    —

     

    Legal accrual4

     

    22

     

    605

     

    627

     

     

    —

     

    30

     

    Legal settlement

     

    —

     

    —

     

    (66

    )

     

    —

     

    —

     

    Business transformation restructuring costs

     

    —

     

    —

     

    —

     

     

    50

     

    177

     

    Loss on early redemption of DCP debt

     

    —

     

    —

     

    —

     

     

    —

     

    53

     

    DCP integration restructuring costs

     

    —

     

    —

     

    —

     

     

    —

     

    38

     

    Tax impact of adjustments5

     

    9

     

    (161

    )

    (162

    )

     

    (12

    )

    (26

    )

    Other tax impacts

     

    (31

    )

    —

     

    (31

    )

     

    83

     

    83

     

    Noncontrolling interests

     

    —

     

    —

     

    (30

    )

     

    —

     

    (19

    )

    Adjusted earnings (loss)

    $

    (61

    )

    859

     

    2,604

     

     

    1,362

     

    7,163

     

    Earnings per share of common stock ( dollars )

    $

    0.01

     

    0.82

     

    4.99

     

     

    2.86

     

    15.48

     

    Adjusted earnings (loss) per share of common stock ( dollars )6

    $

    (0.15

    )

    2.04

     

    6.15

     

     

    3.09

     

    15.81

     

     

     

     

     

     

     

     

    Reconciliation of Segment Pre-Tax Income

     

     

     

     

     

     

    (Loss) to Adjusted Pre-Tax Income (Loss)

    Midstream Pre-Tax Income

    $

    673

     

    644

     

    2,638

     

     

    759

     

    2,819

     

    Pre-tax adjustments:

     

     

     

     

     

     

    Impairments1

     

    35

     

    28

     

    346

     

     

    —

     

    —

     

    Certain tax impacts

     

    —

     

    —

     

    —

     

     

    (2

    )

    (2

    )

    Net gain on asset disposition

     

    —

     

    —

     

    (238

    )

     

    —

     

    (137

    )

    Change in inventory method for acquired business

     

    —

     

    —

     

    —

     

     

    —

     

    (46

    )

    DCP integration restructuring costs

     

    —

     

    —

     

    —

     

     

    —

     

    38

     

    Adjusted pre-tax income

    $

    708

     

    672

     

    2,746

     

     

    757

     

    2,672

     

    Chemicals Pre-Tax Income

    $

    107

     

    342

     

    876

     

     

    106

     

    600

     

    Pre-tax adjustments:

     

     

     

     

     

     

    Winter-storm-related costs (recovery)

     

    (35

    )

    —

     

    (35

    )

     

    —

     

    —

     

    Adjusted pre-tax income

    $

    72

     

    342

     

    841

     

     

    106

     

    600

     

    Refining Pre-Tax Income (Loss)

    $

    (775

    )

    (108

    )

    (365

    )

     

    859

     

    5,340

     

    Pre-tax adjustments:

     

     

     

     

     

     

    Impairments1

     

    —

     

    —

     

    104

     

     

    —

     

    —

     

    Los Angeles Refinery cessation costs3

     

    3

     

    41

     

    44

     

     

    —

     

    —

     

    Certain tax impacts

     

    (9

    )

    —

     

    (9

    )

     

    (17

    )

    (17

    )

    Net loss on asset disposition

     

    —

     

    —

     

    —

     

     

    —

     

    14

     

    Legal accrual

     

    22

     

    —

     

    22

     

     

    —

     

    30

     

    Legal settlement

     

    —

     

    —

     

    (7

    )

     

    —

     

    —

     

    Adjusted pre-tax income (loss)

    $

    (759

    )

    (67

    )

    (211

    )

     

    842

     

    5,367

     

    Marketing and Specialties Pre-Tax Income (Loss)

    $

    252

     

    (22

    )

    1,011

     

     

    396

     

    1,897

     

    Pre-tax adjustments:

     

     

     

     

     

     

    Legal accrual4

     

    —

     

    605

     

    605

     

     

    —

     

    —

     

    Net gain on asset disposition2

     

    (67

    )

    —

     

    (67

    )

     

    —

     

    —

     

    Legal settlement

     

    —

     

    —

     

    (59

    )

     

    —

     

    —

     

    Adjusted pre-tax income

    $

    185

     

    583

     

    1,490

     

     

    396

     

    1,897

     

    Renewable Fuels Pre-Tax Income (Loss)

    $

    28

     

    (116

    )

    (198

    )

     

    (11

    )

    153

     

    Pre-tax adjustments:

     

     

     

     

     

     

    None

     

    —

     

    —

     

    —

     

     

    —

     

    —

     

    Adjusted pre-tax income (loss)

    $

    28

     

    (116

    )

    (198

    )

     

    (11

    )

    153

     

    Corporate and Other Pre-Tax Loss

    $

    (298

    )

    (327

    )

    (1,287

    )

     

    (348

    )

    (1,340

    )

    Pre-tax adjustments:

     

     

     

     

     

     

    Business transformation restructuring costs

     

    —

     

    —

     

    —

     

     

    50

     

    177

     

    Loss on early redemption of DCP debt

     

    —

     

    —

     

    —

     

     

    —

     

    53

     

    Los Angeles Refinery cessation costs3

     

    4

     

    —

     

    4

     

     

    —

     

    —

     

    Adjusted pre-tax loss

    $

    (294

    )

    (327

    )

    (1,283

    )

     

    (298

    )

    (1,110

    )

     

     

     

     

     

     

     

    1Impairments primarily related to certain gathering and processing assets in the Midstream segment, as well as certain crude oil processing and logistics assets in California, reported in the Refining segment.

    2In connection with the asset sale of our 49% non-operated equity interest in Coop Mineraloel AG closing early 2025, a before-tax unrealized gain was recognized from a foreign currency derivative in the Marketing & Specialties segment.

    3Cessation costs include pre-tax charges for severance costs.

    4Third-quarter legal accrual primarily related to ongoing litigation.

    5We generally tax effect taxable U.S.-based special items using a combined federal and state statutory income tax rate of approximately 24%. Taxable special items attributable to foreign locations likewise use a local statutory income tax rate. Nontaxable events reflect zero income tax. These events include, but are not limited to, most goodwill impairments, transactions legislatively exempt from income tax, transactions related to entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance.

    6YTD 2024, Q4 2024, Q3 2024 and Q4 2023 are based on adjusted weighted-average diluted shares of 422,538 thousand, 411,687 thousand, 419,827 thousand and 440,582 thousand, respectively. Other periods are based on the same weighted-average diluted shares outstanding as that used in the GAAP diluted earnings per share calculation. Income allocated to participating securities, if applicable, in the adjusted earnings per share calculation is the same as that used in the GAAP diluted earnings per share calculation.

     

    Millions of Dollars

     

    Except as Indicated

     

    2024

     

    4Q

    3Q

    Reconciliation of Consolidated Net Income to Adjusted EBITDA

     

     

    Net Income

    $

    25

     

    369

     

    Plus:

     

     

    Income tax expense

     

    (38

    )

    44

     

    Net interest expense

     

    168

     

    191

     

    Depreciation and amortization

     

    819

     

    543

     

    Phillips 66 EBITDA

    $

    974

     

    1,147

     

    Special Item Adjustments (pre-tax):

     

     

    Certain tax impacts

     

    (9

    )

    —

     

    Impairments

     

    35

     

    28

     

    Winter-storm-related costs (recovery)

     

    (35

    )

    —

     

    Net gain on asset disposition

     

    (67

    )

    —

     

    Los Angeles Refinery cessation costs

     

    7

     

    41

     

    Legal accrual

     

    22

     

    605

     

    Total Special Item Adjustments (pre-tax)

     

    (47

    )

    674

     

    Change in Fair Value of NOVONIX Investment

     

    1

     

    —

     

    Phillips 66 EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment

    $

    928

     

    1,821

     

    Other Adjustments (pre-tax):

     

     

    Proportional share of selected equity affiliates income taxes

     

    17

     

    24

     

    Proportional share of selected equity affiliates net interest

     

    14

     

    12

     

    Proportional share of selected equity affiliates depreciation and amortization

     

    209

     

    188

     

    Adjusted EBITDA attributable to noncontrolling interests

     

    (38

    )

    (47

    )

    Phillips 66 Adjusted EBITDA

    $

    1,130

     

    1,998

     

     

     

     

    Reconciliation of Segment Income before Income Taxes to Adjusted EBITDA

     

     

    Midstream Income before income taxes

    $

    673

     

    644

     

    Plus:

     

     

    Depreciation and amortization

     

    234

     

    233

     

    Midstream EBITDA

    $

    907

     

    877

     

    Special Item Adjustments (pre-tax):

     

     

    Impairments

     

    35

     

    28

     

    Midstream EBITDA, Adjusted for Special Items

    $

    942

     

    905

     

    Other Adjustments (pre-tax):

     

     

    Proportional share of selected equity affiliates income taxes

     

    3

     

    5

     

    Proportional share of selected equity affiliates net interest

     

    3

     

    3

     

    Proportional share of selected equity affiliates depreciation and amortization

     

    28

     

    26

     

    Adjusted EBITDA attributable to noncontrolling interests

     

    (38

    )

    (47

    )

    Midstream Adjusted EBITDA

    $

    938

     

    892

     

    Chemicals Income before income taxes

    $

    107

     

    342

     

    Plus:

     

     

    None

     

    —

     

    —

     

    Chemicals EBITDA

    $

    107

     

    342

     

    Special Item Adjustments (pre-tax):

     

     

    Winter-storm-related costs (recovery)

     

    (35

    )

    —

     

    Chemicals EBITDA, Adjusted for Special Items

    $

    72

     

    342

     

    Other Adjustments (pre-tax):

     

     

    Proportional share of selected equity affiliates income taxes

     

    11

     

    13

     

    Proportional share of selected equity affiliates net interest

     

    —

     

    (2

    )

    Proportional share of selected equity affiliates depreciation and amortization

     

    126

     

    113

     

    Chemicals Adjusted EBITDA

    $

    209

     

    466

     

    Refining Loss before income taxes

    $

    (775

    )

    (108

    )

    Plus:

     

     

    Depreciation and amortization

     

    435

     

    230

     

    Refining EBITDA

    $

    (340

    )

    122

     

    Special Item Adjustments (pre-tax):

     

     

    Certain tax impacts

     

    (9

    )

    —

     

    Los Angeles Refinery cessation costs

     

    3

     

    41

     

    Legal accrual

     

    22

     

    —

     

    Refining EBITDA, Adjusted for Special Items

    $

    (324

    )

    163

     

    Other Adjustments (pre-tax):

     

     

    Proportional share of selected equity affiliates income taxes

     

    (1

    )

    (1

    )

    Proportional share of selected equity affiliates net interest

     

    —

     

    (1

    )

    Proportional share of selected equity affiliates depreciation and amortization

     

    27

     

    27

     

    Refining Adjusted EBITDA

    $

    (298

    )

    188

     

    Marketing and Specialties Income (loss) before income taxes

    $

    252

     

    (22

    )

    Plus:

     

     

    Depreciation and amortization

     

    79

     

    32

     

    Marketing and Specialties EBITDA

    $

    331

     

    10

     

    Special Item Adjustments (pre-tax):

     

     

    Legal accrual

     

    —

     

    605

     

    Net gain on asset disposition

     

    (67

    )

    —

     

    Marketing and Specialties EBITDA, Adjusted for Special Items

    $

    264

     

    615

     

    Other Adjustments (pre-tax):

     

     

    Proportional share of selected equity affiliates income taxes

     

    4

     

    7

     

    Proportional share of selected equity affiliates net interest

     

    11

     

    12

     

    Proportional share of selected equity affiliates depreciation and amortization

     

    28

     

    22

     

    Marketing and Specialties Adjusted EBITDA

    $

    307

     

    656

     

    Renewable Fuels Income (loss) before income taxes

    $

    28

     

    (116

    )

    Plus:

     

     

    Depreciation and amortization

     

    22

     

    24

     

    Renewable Fuels EBITDA

    $

    50

     

    (92

    )

    Special Item Adjustments (pre-tax):

     

     

    None

     

    —

     

    —

     

    Renewable Fuels EBITDA, Adjusted for Special Items

    $

    50

     

    (92

    )

    Corporate and Other Loss before income taxes

    $

    (298

    )

    (327

    )

    Plus:

     

     

    Net interest expense

     

    168

     

    191

     

    Depreciation and amortization

     

    49

     

    24

     

    Corporate and Other EBITDA

    $

    (81

    )

    (112

    )

    Special Item Adjustments (pre-tax):

     

     

    Los Angeles Refinery cessation costs

     

    4

     

    —

     

    Total Special Item Adjustments (pre-tax)

     

    4

     

    —

     

    Change in Fair Value of NOVONIX Investment

     

    1

     

    —

     

    Corporate EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment

    $

    (76

    )

    (112

    )

     

     

     

     

     

     

     

     

    Millions of Dollars

     

    Except as Indicated

     

    December 31, 2024

    Debt-to-Capital Ratio

     

    Total Debt

    $

    20,062

     

    Total Equity

     

    28,463

     

    Debt-to-Capital Ratio

     

    41

    %

    Total Cash

     

    1,738

     

    Net Debt-to-Capital Ratio

     

    39

    %

     

     

     

     

     

     

     

     

    Millions of Dollars

     

    December 31, 2024

    Reconciliation of Net Cash Provided by Operating Activities to Operating Cash Flow, Excluding Working Capital

     

    Net Cash Provided by Operating Activities

    $

    1,198

     

    Less: Net Working Capital Changes

     

    297

     

    Operating Cash Flow, Excluding Working Capital

    $

    901

     

     

     

     

    Millions of Dollars

     

    Except as Indicated

     

    2024

     

    4Q

    3Q

    Reconciliation of Refining Loss Before Income Taxes to Realized Refining Margins

     

     

    Loss before income taxes

    $

    (775

    )

    (108

    )

    Plus:

     

     

    Taxes other than income taxes

     

    92

     

    100

     

    Depreciation, amortization and impairments

     

    436

     

    230

     

    Selling, general and administrative expenses

     

    60

     

    60

     

    Operating expenses

     

    968

     

    922

     

    Equity in earnings of affiliates

     

    79

     

    12

     

    Other segment expense, net

     

    58

     

    (4

    )

    Proportional share of refining gross margins contributed by equity affiliates

     

    132

     

    193

     

    Special items:

     

     

    Certain tax impacts

     

    (9

    )

    —

     

    Realized refining margins

    $

    1,041

     

    1,405

     

    Total processed inputs ( thousands of barrels )

     

    147,880

     

    145,440

     

    Adjusted total processed inputs ( thousands of barrels )*

     

    171,031

     

    168,951

     

    Loss before income taxes ( dollars per barrel )**

    $

    (5.24

    )

    (0.74

    )

    Realized refining margins ( dollars per barrel )***

    $

    6.08

     

    8.31

     

    *Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate.

     

    **Income before income taxes divided by total processed inputs.

     

    ***Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts.

    Source: Phillips 66

    MIL OSI Economics –

  • MIL-OSI Europe: Press release – Polish Presidency debriefs EP committees on priorities

    Source: European Parliament

    Poland holds the Presidency of the Council until the end of June 2025. This text will be updated regularly as the hearings take place.

    Environment, Climate and Food Safety

    On 23 January, Paulina Hennig-Kloska, Minister of Climate and Environment, highlighted the need for climate adaptation measures, combating climate disinformation, and to advance key legislative files such as the waste framework directive on textiles and food, the European soil monitoring law, and the “One Substance, One Assessment” chemicals package. The Presidency also plans to secure agreement with Parliament on plastic pellet losses, water pollutants, and detergents rules.

    MEPs asked about the Presidency’s stance on the new emissions trading system ETS II, the 2040 emissions target, renewable energy, and soil monitoring. They also debated the impact of climate regulations on competitiveness, and raised concerns about agricultural pollution and the role of genomic technologies.

    Security and defence

    On 27 January, Secretary of State at the Ministry of National Defence Paweł Zalewski said the Presidency’s first priority is to strengthen EU support for Ukraine by using all the tools at the EU’s disposal, including the European Peace Facility and the profits from frozen Russian assets or loans guaranteed from Moscow. He also highlighted the need to reinforce the EU’s defence industries by ensuring adequate financing as well as deepening EU-U.S. cooperation, including between the EU and NATO.

    MEPs quizzed Mr Zalewski on several issues, including the EU’s role in possible future peace talks between Ukraine and Russia, developing an EU defence pillar, reforming the EU Investment Bank to allow for more investment in the defence sector and establishing viable “European champions” (i.e. large corporations) in the defence sector.

    Women’s rights and gender equality

    On 28 January, Minister for Equality Katarzyna Kotula emphasised enhancing digital security for women and girls, particularly in the context of the rapid development of AI, as a Presidency priority. She pledged to follow up on the Digital Services Act to make sure that AI accelerates rather than undermines gender equality. The Presidency is also determined to advance the work on the Anti-discrimination Directive.

    MEPS welcomed her commitment on strengthening the digital protection of women and girls, particularly concerning deepfakes, revenge porn and hate speech. They also raised women’s sexual and reproductive health and rights, the protection of LGBTQI+ communities, the challenges faced by ageing women and the prospect for an EU-wide definition of rape including the notion of consent.

    Internal market and consumer protection

    On 28 January, Economic Development and Technology Minister Krzysztof Paszyk focused on the need to eliminate the remaining barriers in the single market, as well as highlighting issues around security, competitiveness, and reducing red tape. The Presidency will look for a compromise on the e-declaration of posted workers file, on late payments, and on the travel package proposals. They will also, he said, try to reach political agreements on toy safety, the Green Claims Directive and on the alternative dispute resolution file.

    On digital policy, Secretary of State, Ministry of Digitalisation Dariusz Standerski outlined plans for an informal meeting on cybersecurity to focus on defence, the application of the Artificial Intelligence Act, and new initiatives on AI factories and the “AI Apply Strategy”. On customs, Undersecretary of State, Ministry of Finance Małgorzata Krok stated the Presidency’s intention was to reach a common position in the Council on the reform of the Union Customs Code.

    MEPs asked about reducing reporting obligations, e-declarations of posted workers, the implementation of digital services act and the AI Act, including in the context of EU-US relations. Several members wanted to hear more about cutting red tape, unblocking progress on late payments, and the need for an AI liability act. Questions also focused on issues around unfair trading practices, single market on defence and climate disinformation.

    Fisheries

    On 28 January, Jacek Czerniak, Secretary of State at the Ministry of Agriculture and Rural Development, which includes fisheries, identified improving EU fisheries competitiveness and defending EU interests in regional fisheries organisations and international agreements as Presidency priorities. Poland will also launch discussions on the review of the Common Fisheries Policy (CFP) and start negotiations to introduce measures against non-EU countries that allow unsustainable fishing practices.

    MEPs questioned Mr Czerniak on addressing the critical state of fish stocks in the Baltic Sea, in addition to issues of security and reducing the complexity of regulations. Others supported a reform of the CFP to better balance the interests of the fishery sector with the EU’s environmental goals. MEPs also argued that trade policies should be aligned with fisheries policies.

    Employment and social affairs

    On 28 January, Minister of Family, Labour and Social Policy Agnieszka Dziemianowicz-Bąk and Minister of Senior Policy Marzena Okła-Drewnowicz said the Presidency would focus on the future of employment in the digital transformation, a Europe of equality, cohesion and inclusion, and the challenges prompted by the EU’s aging population.

    MEPs quizzed the ministers on their plans for the regulation on the coordination of social security systems, emphasising the importance of finalising negotiations on the file. They also raised the impact of AI in the workplace, and the importance of addressing demographic issues in the EU. MEPs also raised the importance of social dialogue, upcoming negotiations on European Work Councils, and the expected Commission initiative on the “Right to Disconnect”.

    Transport and tourism

    On 29 January, Dariusz Klimczak, Minister of Infrastructure, said the Presidency will focus on resilience and competitiveness in the transport sector, the protection of transport operators, dual use infrastructure, and military mobility. He committed to reaching a deal with Parliament on new railway infrastructure, road and maritime safety rules as well advancing negotiations on air passenger rights rules that have been stalled in the Council since 2013. Piotr Borys, Secretary of State at the Ministry of Sport and Tourism added that the Presidency will focus on making Europe a safe and more popular destination for tourism despite Russia’s war in Ukraine and the challenges posed by climate change.

    MEPs asked the Presidency to secure adequate financing for transport policies within the next EU long-term budget, and want them to secure a Council position on the maximum weights and dimensions directive, and address labour shortages and working conditions in all transport modes. Completing Trans-European transport networks, developing high speed rail, and ensuring connectivity for Europe’s islands were also raised.

    Constitutional affairs

    On 29 January, Minister for European Affairs Adam Szłapka said the Presidency wants to promote institutional reforms, stressing at the same time that EU Treaties could prove difficult to revise. The Presidency wants to complete work on the new rules on European political parties and foundations and the electoral rights of mobile citizens. They will work on the transparency of interest representation and on the EU’s accession to the European Convention on Human Rights.

    Most MEPs asked questions about the need to reform the EU’s institutional architecture, especially in light of imminent enlargement, with many of them highlighting the need to overcome what they saw as the obstacle of unanimity in key policy areas either through Treaty revision or using existing rules. Some called for progress on Parliament’s right of initiative, its right of inquiry, and rules on European elections.

    Agriculture and Rural Development

    On 29 January, Czesław Siekierski, Minister of Agriculture and Rural Development said that the Council will discuss the future shape of the Common Agricultural Policy (CAP) beyond 2027. The Presidency wants to simplify the green architecture of the CAP and assess the impact of current EU trade agreements on agriculture.

    Questions from MEPs focused on ensuring fair income for farmers and adapting the CAP to the future enlargement of the EU. A number of MEPs also asked about the position of the Presidency on the EU-Mercosur Partnership Agreement and stressed the need to invest in European food sovereignty.

    International trade

    On 29 January, Krzysztof Paszyk, Minister of Economic Development and Technology, said the Presidency will continue working on ambitious, sustainable and mutually profitable trade agreements. He hopes to finalise the legislation on the screening of foreign direct investment and resume talks on the Generalised System of Preferences (GSP) scheme, the EU’s preferential trade arrangement with developing countries. On Ukraine, Mr Paszyk said support for Ukraine remains steadfast, while the Presidency prefers not to extend the current temporary trade liberalisation measures with the country, but rather reach a new agreement.

    MEPs asked about possible timelines for the adoption of trade deals with Mercosur and Mexico, possible shift in US trade policy as well as on trade with Ukraine and safeguards for the agricultural market. Some MEPs argued that GSP should not be a migration tool, others demanded a clear link between migration and the scheme.

    Industry, Research and Energy

    On 29 January, Minister of Economics, Development and Technology, Krzysztof Paszyk said the Presidency’s priorities include boosting Europe’s industrial competitiveness with a new instrument and advancing the Clean Industry Act to support businesses, address high energy prices, and cut red tape and tax burdens for SMEs. They also plan to maximize the use of spaceimaging and AI algorithms for crisis management, and improve cooperation during natural disasters.

    During the debate, MEPs stressed the need to support innovative businesses through a unified capital market, and to combine environmental policies with industrial policies to achieve the ecological transition. Others focused on the importance of transatlantic relations and the need to secure European tech sovereignty.

    Dariusz Stenderski, Secretary of State in the Ministry of Digital Affairs, said that his key focus areas would be cyber security, with a revised blueprint for coordinated EU response to cyber attacks and an informal Council on its civilian and military aspects.He also referred to the boosting of AI development through shared investment and simplified rules to support startups.

    On 30 January Marcin Kulasek, Minister of Science and Higher Education, outlined three main focus areas: openness and inclusivity, synergies between EU and national programs, and AI and science.He stressed the need to develop EU cooperation networks without losing top talents, and the value of synergies between EU and national research programs.

    MEPs called for the full implementation of the 5G toolbox and for the simplification of administrative procedures to foster innovation. Others highlighted the need to improve EU cooperation in research and innovation, retain top talent, and ensure an inclusive access to funds. The discussions also covered the need for ethical standards in AI, a strong support for scientists, as well as academic freedom and the free flow of scientific knowledge.

    Culture, Education, Youth and Sport

    On 30 January, Education Minister Barbara Nowacka said the Presidency wants to include young people – as part of a new cycle of the EU Youth Dialogue – in EU-level debates and projects to strengthen EU values of democracy, freedom and rule of law, thereby making them more resilient against the risk of disinformation and manipulation. Providing better support to teachers is also a priority, she said, and EU education ministers will gather in May to discuss what they can do to improve this.

    The Presidency wants to advance work on the “European degree” – a degree awarded jointly by several universities in different EU countries – by adopting a roadmap to implement it. A European quality assurance system to guarantee trust among universities and improve the recognition of higher education diplomas will also be discussed, Minister of Science and High Education Marcin Kulasek said.

    Culture Minister Hanna Wróblewska said the Presidency will present proposals to support young artists and creators, and will launch discussions on the future of the Creative Europe programme beyond 2027. Audiovisual and intellectual property rights, security and AI, and a possible revision of the Audiovisual Media Services Directive are also among the Presidency’s priorities, she said.

    Piotr Borys, Secretary of State of Sport, will focus on pushing EU countries to better promote sport in schools, address mental health, and adopt a common methodology to gather statistics on sport.

    MEPs questioned the ministers on countering Russian disinformation under the European Media Freedom Act, as well as on delays in the creation of the European degree, pleading for EU-wide recognition of diplomas, including Erasmus+ and vocational education training. MEPs also raised concerns about possible reductions in Erasmus+ funding, which ensures the financial sustainability of the European Education Area, which in turn is essential for the “Union of Skills”.

    MIL OSI Europe News –

  • MIL-OSI Economics: RBI imposes monetary penalty on Aptus Finance India Private Limited, Chennai

    Source: Reserve Bank of India

    The Reserve Bank of India (RBI) has, by an order dated January 20, 2025, imposed a monetary penalty of ₹3.10 lakh (Rupees Three Lakh Ten Thousand only) on Aptus Finance India Private Limited (the company) for non-compliance with certain provisions of the ‘Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016’ issued by RBI, relating to ‘Governance Issues’. This penalty has been imposed in exercise of powers conferred on RBI under clause (b) of sub-section (1) of Section 58G read with clause (aa) of sub-section (5) of Section 58B of the Reserve Bank of India Act, 1934.

    The correspondence pertaining to the intimation of appointment of a director revealed, inter alia, non-compliance with RBI directions. Based on the same, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said directions. After considering the company’s reply to the notice and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the company was sustained, warranting imposition of monetary penalty:

    The company failed to take prior written permission of the RBI for effecting change in management, resulting in change of more than 30 per cent of its directors, excluding independent directors.

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

    (Puneet Pancholy)  
    Chief General Manager

    Press Release: 2024-2025/2057

    MIL OSI Economics –

  • MIL-OSI Economics: Data on India’s Invisibles for Second Quarter (July-September) 2024-25

    Source: Reserve Bank of India

    The Reserve Bank today released data on India’s invisibles as per the IMF’s Balance of Payments and International Investment Position Manual (BPM6) format for July-September of 2024-25.

    Ajit Prasad          
    Deputy General Manager
    (Communications)    

    Press Release: 2024-2025/2059

    MIL OSI Economics –

  • MIL-OSI: Brookfield Business Partners Reports 2024 Year End Results

    Source: GlobeNewswire (MIL-OSI)

    BROOKFIELD, News, Jan. 31, 2025 (GLOBE NEWSWIRE) — Brookfield Business Partners (NYSE: BBU, BBUC; TSX: BBU.UN, BBUC) announced today financial results for the year ended December 31, 2024.

    “Our business had another successful year in 2024. We generated over $2 billion from our capital recycling initiatives, acquired two market-leading operations and achieved solid financial results,” said Anuj Ranjan, CEO of Brookfield Business Partners. “The enhanced strength of our balance sheet and substantial liquidity provides us optionality to meaningfully advance our capital allocation priorities with a focus on increasing the intrinsic value of our business for our unitholders.”

           
      Three Months Ended
    December 31,    		   Year Ended
    December 31,
    US$ millions (except per unit amounts), unaudited   2024       2023       2024       2023  
    Net income (loss) attributable to Unitholders1 $ (438 )   $ 1,423     $ (109 )   $ 1,405  
    Net income (loss) per limited partnership unit2 $ (2.02 )   $ 6.57     $ (0.50 )   $ 6.49  
               
    Adjusted EBITDA3 $ 653     $ 608     $ 2,565     $ 2,491  
                                   

    Net loss attributable to Unitholders for the year ended December 31, 2024 was $109 million (loss of $0.50 per limited partnership unit) compared to net income of $1,405 million ($6.49 per limited partnership unit) in the prior year. Net loss attributable to Unitholders includes a one-time non-cash expense at our healthcare services operation, combined with provisions at our construction operation. Prior year included net gains primarily related to the sale of our nuclear technology services operation.

    Adjusted EBITDA for the year ended December 31, 2024 was $2,565 million compared to $2,491 million for the year ended December 31, 2023, reflecting improved performance of operations and tax benefits recorded at our advanced energy storage operation. Prior year results included $308 million of contribution from operations which have been sold.

    Operational Update

    The following table presents Adjusted EBITDA by segment:

      Three Months Ended
    December 31,    		   Year Ended
    December 31,
    US$ millions, unaudited   2024       2023       2024       2023  
    Industrials $ 306     $ 222     $ 1,247     $ 855  
    Business Services   217       227       832       900  
    Infrastructure Services   160       184       606       853  
    Corporate and Other   (30 )     (25 )     (120 )     (117 )
    Adjusted EBITDA $ 653     $ 608     $ 2,565     $ 2,491  

    Our Industrials segment generated Adjusted EBITDA of $1,247 million in 2024, compared to $855 million in 2023. Current year results included $371 million of tax benefits at our advanced energy storage operation. Strong underlying performance at our advanced energy storage operation and growing contribution from water and wastewater services offset reduced performance at our engineered components manufacturing operation due to weak market conditions. Prior year results included contribution from disposed operations including our Canadian aggregates production operation which was sold in June 2024.

    Our Business Services segment generated Adjusted EBITDA of $832 million in 2024, compared to $900 million in 2023. Strong performance at our residential mortgage insurer was primarily offset by the impact of a cyber incident at our dealer software and technology services operation and reduced performance at our construction and healthcare services operations during the year. Prior year results included contribution from our road fuels operation which was sold in July 2024.

    Our Infrastructure Services segment generated Adjusted EBITDA of $606 million in 2024, compared to $853 million in 2023. Prior year results included $236 million of contribution from our nuclear technology services operation which was sold in November 2023. Current year results benefited from improved performance of offshore oil services, offset by reduced contribution at work access services.

    The following table presents Adjusted EFO4 by segment:

      Three Months Ended
    December 31,    		   Year Ended
    December 31,
    US$ millions, unaudited   2024       2023       2024       2023  
    Adjusted EFO          
    Industrials $ 193     $ 115     $ 935     $ 492  
    Business Services   142       181       641       636  
    Infrastructure Services   78       1,790       287       2,070  
    Corporate and Other   (83 )     (77 )     (331 )     (335 )

    Adjusted EFO for the year ended December 31, 2024 included $306 million in net gains primarily related to the dispositions of our road fuels operation and Canadian aggregates production operation, the sale of public securities and the deconsolidation of our payment processing services operation. Infrastructure Services Adjusted EFO reflected the impact of the prior year disposition of our nuclear technology services operation. Prior year results included $2,006 million in after-tax net gains primarily related to the sale of our nuclear technology services operation.

    Strategic Initiatives

    • Advanced Energy Storage Operation
      In January, our advanced energy storage operation raised $5 billion of new first lien debt – $4.5 billion of the proceeds are not required in the business and therefore were used to fund a special distribution to owners, of which Brookfield Business Partners’ share was approximately $1.2 billion. This represented a multiple of 1.5x of our initial equity investment and we still own our entire share of the business.
    • Offshore Oil Services
      In January, we completed the previously announced sale of our offshore oil services’ shuttle tanker operation. Cash proceeds to Brookfield Business Partners for the sale of its interest after the repayment of debt are expected to be approximately $250 million.
    • Unit Repurchase Program and Capital Deployment
      We are allocating up to $250 million of capital to accelerate the repurchase of Brookfield Business Partners’ securities under our existing and future normal course issuer bids (NCIB).

      In January, we completed the acquisition of Chemelex, a leading manufacturer of electric heat tracing systems, through a carve-out from a larger industrial company for total enterprise value of $1.7 billion. Brookfield Business Partners invested $212 million for an approximate 25% economic interest in the business, with the balance funded by institutional partners.

    Liquidity

    We ended the year with approximately $1.3 billion of liquidity at the corporate level including $91 million of cash and liquid securities, $25 million of remaining preferred equity commitment from Brookfield Corporation and $1.2 billion of availability on our corporate credit facilities. Pro forma for announced and recently closed transactions, corporate liquidity is $2.7 billion.

    Distribution

    The Board of Directors has declared a quarterly distribution in the amount of $0.0625 per unit, payable on March 31, 2025 to unitholders of record as at the close of business on February 28, 2025.

    Additional Information

    The Board has reviewed and approved this news release, including the summarized unaudited consolidated financial statements contained herein.

    Brookfield Business Partners’ Letter to Unitholders and the Supplemental Information are available on our website https://bbu.brookfield.com under Reports & Filings.

       
    Notes:  
    1 Attributable to limited partnership unitholders, general partnership unitholders, redemption-exchange unitholders, special limited partnership unitholders and BBUC exchangeable shareholders.
    2 Net income (loss) per limited partnership unit calculated as net income (loss) attributable to limited partners divided by the average number of limited partnership units outstanding for the three and twelve months ended December 31, 2024 which were 74.3 million and 74.3 million, respectively (December 31, 2023: 74.3 million and 74.5 million, respectively).
    3 Adjusted EBITDA is a non-IFRS measure of operating performance presented as net income and equity accounted income at the partnership’s economic ownership interest in consolidated subsidiaries and equity accounted investments, respectively, excluding the impact of interest income (expense), net, income taxes, depreciation and amortization expense, gains (losses) on acquisitions/dispositions, net, transaction costs, restructuring charges, revaluation gains or losses, impairment expenses or reversals, other income or expenses, and preferred equity distributions. The partnership’s economic ownership interest in consolidated subsidiaries and equity accounted investments excludes amounts attributable to non-controlling interests consistent with how the partnership determines net income attributable to non-controlling interests in its IFRS consolidated statements of operating results. The partnership believes that Adjusted EBITDA provides a comprehensive understanding of the ability of its businesses to generate recurring earnings which allows users to better understand and evaluate the underlying financial performance of the partnership’s operations and excludes items that the partnership believes do not directly relate to revenue earning activities and are not normal, recurring items necessary for business operations. Please refer to the reconciliation of net income (loss) to Adjusted EBITDA included elsewhere in this news release.
    4 Adjusted EFO is the partnership’s segment measure of profit or loss and is presented as net income and equity accounted income at the partnership’s economic ownership interest in consolidated subsidiaries and equity accounted investments, respectively, excluding the impact of depreciation and amortization expense, deferred income taxes, transaction costs, restructuring charges, unrealized revaluation gains or losses, impairment expenses or reversals and other income or expense items that are not directly related to revenue generating activities. The partnership’s economic ownership interest in consolidated subsidiaries excludes amounts attributable to non-controlling interests consistent with how the partnership determines net income attributable to non-controlling interests in its IFRS consolidated statements of operating results. In order to provide additional insight regarding the partnership’s operating performance over the lifecycle of an investment, Adjusted EFO includes the impact of preferred equity distributions and realized disposition gains or losses recorded in net income, other comprehensive income, or directly in equity, such as ownership changes. Adjusted EFO does not include legal and other provisions that may occur from time to time in the partnership’s operations and that are one-time or non-recurring and not directly tied to the partnership’s operations, such as those for litigation or contingencies. Adjusted EFO includes expected credit losses and bad debt allowances recorded in the normal course of the partnership’s operations. Adjusted EFO allows the partnership to evaluate its segments on the basis of return on invested capital generated by its operations and allows the partnership to evaluate the performance of its segments on a levered basis.
       

    Brookfield Business Partners is a global business services and industrials company focused on owning and operating high-quality businesses that provide essential products and services and benefit from a strong competitive position. Investors have flexibility to invest in our company either through Brookfield Business Partners L.P. (NYSE: BBU; TSX: BBU.UN), a limited partnership or Brookfield Business Corporation (NYSE, TSX: BBUC), a corporation. For more information, please visit https://bbu.brookfield.com.

    Brookfield Business Partners is the flagship listed vehicle of Brookfield Asset Management’s Private Equity Group. Brookfield Asset Management is a leading global alternative asset manager with over $1 trillion of assets under management.

    Please note that Brookfield Business Partners’ previous audited annual and unaudited quarterly reports have been filed on SEDAR+ and EDGAR and are available at https://bbu.brookfield.com under Reports & Filings. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.

    For more information, please contact:

    Conference Call and 2024 Earnings Webcast Details

    Investors, analysts and other interested parties can access Brookfield Business Partners’ 2024 results as well as the Letter to Unitholders and Supplemental Information on our website https://bbu.brookfield.com under Reports & Filings.

    The results call can be accessed via webcast on January 31, 2025 at 10:00 a.m. Eastern Time at BBU2024Q4Webcast or participants can pre-register at BBU2024Q4ConferenceCall. Upon registering, participants will be emailed a dial-in number and unique PIN. A replay of the webcast will be available at https://bbu.brookfield.com.

     
    Brookfield Business Partners L.P.
    Consolidated Statements of Financial Position
     
      As at
    US$ millions, unaudited December 31, 2024   December 31, 2023
                         
    Assets                    
    Cash and cash equivalents         $ 3,239             $ 3,252  
    Financial assets           12,371               13,176  
    Accounts and other receivable, net           6,279               6,563  
    Inventory and other assets           5,728               5,321  
    Property, plant and equipment           13,232               15,724  
    Deferred income tax assets           1,744               1,220  
    Intangible assets           18,317               20,846  
    Equity accounted investments           2,325               2,154  
    Goodwill           12,239               14,129  
    Total Assets         $ 75,474             $ 82,385  
                         
    Liabilities and Equity                    
    Liabilities                    
    Corporate borrowings         $ 2,142             $ 1,440  
    Accounts payable and other           16,691               18,378  
    Non-recourse borrowings in subsidiaries of Brookfield Business Partners           36,720               40,809  
    Deferred income tax liabilities           2,613               3,226  
                         
    Equity                    
    Limited partners $ 1,752         $ 1,909    
    Non-controlling interests attributable to:          
    Redemption-exchange units   1,644           1,792    
    Special limited partner   —           —    
    BBUC exchangeable shares   1,721           1,875    
    Preferred securities   740           740    
    Interest of others in operating subsidiaries   11,451           12,216    
          17,308           18,532  
    Total Liabilities and Equity   $ 75,474         $ 82,385  
     
    Brookfield Business Partners L.P.
    Consolidated Statements of Operating Results
     
    US$ millions, unaudited Three Months Ended
    December 31,    		   Year Ended
    December 31,
      2024       2023       2024       2023  
               
    Revenues $ 7,427     $ 13,405     $ 40,620     $ 55,068  
    Direct operating costs   (6,008 )     (12,209 )     (34,883 )     (50,021 )
    General and administrative expenses   (324 )     (336 )     (1,267 )     (1,538 )
    Interest income (expense), net   (752 )     (858 )     (3,104 )     (3,596 )
    Equity accounted income (loss), net   35       48       90       132  
    Impairment reversal (expense), net   (991 )     (780 )     (981 )     (831 )
    Gain (loss) on acquisitions/dispositions, net   —       4,477       692       4,686  
    Other income (expense), net   (360 )     (344 )     (573 )     (178 )
    Income (loss) before income tax   (973 )     3,403       594       3,722  
    Income tax (expense) recovery          
    Current   (158 )     (171 )     (646 )     (775 )
    Deferred   23       252       947       830  
    Net income (loss) $ (1,108 )   $ 3,484     $ 895     $ 3,777  
    Attributable to:          
    Limited partners $ (150 )   $ 488     $ (37 )   $ 482  
    Non-controlling interests attributable to:          
    Redemption-exchange units   (141 )     457       (35 )     451  
    Special limited partner   —       —       —       —  
    BBUC exchangeable shares   (147 )     478       (37 )     472  
    Preferred securities   13       17       52       83  
    Interest of others in operating subsidiaries   (683 )     2,044       952       2,289  
     
    Brookfield Business Partners L.P.
    Reconciliation of Non-IFRS Measures
     
    US$ millions, unaudited  Three Months Ended December 31, 2024
        Business Services       Infrastructure Services       Industrials       Corporate and Other       Total  
                         
    Net income (loss)   $ (955 )   $ (72 )   $ (31 )   $ (50 )   $ (1,108 )
                         
    Add or subtract the following:                    
    Depreciation and amortization expense     223       228       328       —       779  
    Impairment reversal (expense), net     690       1       300       —       991  
    Gain (loss) on acquisitions/dispositions, net     —       —       —       —       —  
    Other income (expense), net1     312       4       47       (3 )     360  
    Income tax (expense) recovery     28       9       115       (17 )     135  
    Equity accounted income (loss), net     (4 )     (12 )     (19 )     —       (35 )
    Interest income (expense), net     233       166       313       40       752  
    Equity accounted Adjusted EBITDA2     25       47       17       —       89  
    Amounts attributable to non-controlling interests3     (335 )     (211 )     (764 )     —       (1,310 )
    Adjusted EBITDA   $ 217     $ 160     $ 306     $ (30 )   $ 653  
     Notes:  
     1 Other income (expense), net corresponds to amounts that are not directly related to revenue earning activities and are not normal, recurring income or expenses necessary for business operations. The components of other income (expense), net include $407 million related to a provision for payment of a litigation settlement at our dealer software and technology services operation, $116 million of net gains on the sale of property, plant and equipment and other assets, $57 million related to provisions recorded at our construction operation, $52 million of business separation expenses, stand-up costs and restructuring charges, $27 million of net gains on debt modification and extinguishment, $16 million of net revaluation gains and $3 million in transaction costs.
     2 Equity accounted Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to the partnership that is generated by its investments in associates and joint ventures accounted for using the equity method.
     3 Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by the non-controlling interests in consolidated subsidiaries.
     
    Brookfield Business Partners L.P.
    Reconciliation of Non-IFRS Measures
         
    US$ millions, unaudited Year Ended December 31, 2024
        Business Services       Infrastructure Services       Industrials       Corporate and Other       Total  
                         
    Net income (loss)   $ (169 )   $ (347 )   $ 1,654     $ (243 )   $ 895  
                         
    Add or subtract the following:                    
    Depreciation and amortization expense     961       888       1,355       —       3,204  
    Impairment reversal (expense), net     686       (11 )     306       —       981  
    Gain (loss) on acquisitions/dispositions, net     (608 )     —       (84 )     —       (692 )
    Other income (expense), net1     365       32       164       12       573  
    Income tax (expense) recovery     75       6       (341 )     (41 )     (301 )
    Equity accounted income (loss), net     (4 )     (23 )     (63 )     —       (90 )
    Interest income (expense), net     972       701       1,279       152       3,104  
    Equity accounted Adjusted EBITDA2     79       168       61       —       308  
    Amounts attributable to non-controlling interests3     (1,525 )     (808 )     (3,084 )     —       (5,417 )
    Adjusted EBITDA   $ 832     $ 606     $ 1,247     $ (120 )   $ 2,565  
    Notes:  
    1 Other income (expense), net corresponds to amounts that are not directly related to revenue earning activities and are not normal, recurring income or expenses necessary for business operations. The components of other income (expense), net include $407 million related to a provision for payment of a litigation settlement at our dealer software and technology services operation, $251 million related to provisions recorded at our construction operation, $168 million of net revaluation gains, $158 million of business separation expenses, stand-up costs and restructuring charges, $108 million of net gains on the sale of property, plant and equipment and other assets, $52 million of net gains on debt modification and extinguishment, $50 million of other income related to a distribution at our entertainment operation, $35 million in transaction costs and $100 million of other expenses.
    2 Equity accounted Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to the partnership that is generated by its investments in associates and joint ventures accounted for using the equity method.
    3 Adjusted EBITDA that is attributable to non-controlling interests in consolidated subsidiaries.
     
    Brookfield Business Partners L.P.
    Reconciliation of Non-IFRS Measures
     
    US$ millions, unaudited Three Months Ended December 31, 2023
        Business Services       Infrastructure Services       Industrials       Corporate and Other       Total  
                         
    Net income (loss)   $ 51     $ 3,744     $ (264 )   $ (47 )   $ 3,484  
                         
    Add or subtract the following:                    
    Depreciation and amortization expense     287       257       347       —       891  
    Impairment reversal (expense), net     650       33       97       —       780  
    Gain (loss) on acquisitions/dispositions, net     (566 )     (3,902 )     (9 )     —       (4,477 )
    Other income (expense), net1     (24 )     46       317       5       344  
    Income tax (expense) recovery     18       (10 )     (68 )     (21 )     (81 )
    Equity accounted income (loss), net     (6 )     (22 )     (20 )     —       (48 )
    Interest income (expense), net     259       225       336       38       858  
    Equity accounted Adjusted EBITDA2     17       51       17       —       85  
    Amounts attributable to non-controlling interests3     (459 )     (238 )     (531 )     —       (1,228 )
    Adjusted EBITDA   $ 227     $ 184     $ 222     $ (25 )   $ 608  
    Notes:  
    1 Other income (expense), net corresponds to amounts that are not directly related to revenue earning activities and are not normal, recurring income or expenses necessary for business operations. The components of other income (expense), net include $247 million loss related to the reclassification of our graphite electrode operations as a financial asset, $96 million of net gains on debt extinguishment/modifications, $80 million of business separation expenses, stand-up costs and restructuring charges, $37 million in transaction costs and $76 million of other expenses.
    2 Equity accounted Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to the partnership that is generated by its investments in associates and joint ventures accounted for using the equity method.
    3 Adjusted EBITDA that is attributable to non-controlling interests in consolidated subsidiaries.
     
    Brookfield Business Partners L.P.
    Reconciliation of Non-IFRS Measures
     
    US$ millions, unaudited Year Ended December 31, 2023
        Business Services       Infrastructure Services       Industrials       Corporate and Other       Total  
                         
    Net income (loss)   $ 602     $ 3,616     $ (245 )   $ (196 )   $ 3,777  
                         
    Add or subtract the following:                    
    Depreciation and amortization expense     1,045       1,174       1,373       —       3,592  
    Impairment reversal (expense), net     656       (13 )     188       —       831  
    Gain (loss) on acquisitions/dispositions, net     (720 )     (3,916 )     (50 )     —       (4,686 )
    Other income (expense), net1     (138 )     (90 )     396       10       178  
    Income tax (expense) recovery     245       (6 )     (218 )     (76 )     (55 )
    Equity accounted income (loss), net     (25 )     (51 )     (56 )     —       (132 )
    Interest income (expense), net     1,031       1,051       1,369       145       3,596  
    Equity accounted Adjusted EBITDA2     61       183       63       —       307  
    Amounts attributable to non-controlling interests3     (1,857 )     (1,095 )     (1,965 )     —       (4,917 )
    Adjusted EBITDA   $ 900     $ 853     $ 855     $ (117 )   $ 2,491  
    Notes:  
    1 Other income (expense), net corresponds to amounts that are not directly related to revenue earning activities and are not normal, recurring income or expenses necessary for business operations. The components of other income (expense), net include $446 million of net gains on debt modification and extinguishment, $247 million loss related to the reclassification of our graphite electrode operations as a financial asset, $246 million of business separation expenses, stand-up costs and restructuring charges, $116 million in transaction costs, $93 million of net revaluation gains and $108 million of other expenses.
    2 Equity accounted Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to the partnership that is generated by its investments in associates and joint ventures accounted for using the equity method.
    3 Adjusted EBITDA that is attributable to non-controlling interests in consolidated subsidiaries.
       

    Brookfield Business Corporation Reports 2024 Year End Results

    Brookfield, News, January 31, 2025 – Brookfield Business Corporation (NYSE, TSX: BBUC) announced today its net income (loss) for the year ended December 31, 2024.

      Three Months Ended
    December 31,    		   Year Ended
    December 31,
    US$ millions, unaudited   2024       2023       2024       2023  
               
    Net income (loss) attributable to Brookfield Business Partners $ (396 )   $ 454     $ (888 )   $ 519  

    Net loss attributable to Brookfield Business Partners for the year ended December 31, 2024 was $888 million compared to net income of $519 million in 2023 which included net gains primarily related to the sale of our nuclear technology services operation. Current year results included $208 million of remeasurement loss on our exchangeable and class B shares that are classified as liabilities under IFRS. As at December 31, 2024, the exchangeable and class B shares were remeasured to reflect the closing price of $23.42 per unit.

    Dividend

    The Board of Directors has declared a quarterly dividend in the amount of $0.0625 per share, payable on March 31, 2025 to shareholders of record as at the close of business on February 28, 2025.

    Additional Information

    Each exchangeable share of Brookfield Business Corporation has been structured with the intention of providing an economic return equivalent to one unit of Brookfield Business Partners L.P. Each exchangeable share will be exchangeable at the option of the holder for one unit. Brookfield Business Corporation will target that dividends on its exchangeable shares will be declared and paid at the same time as distributions are declared and paid on the Brookfield Business Partners’ units and that dividends on each exchangeable share will be declared and paid in the same amount as distributions are declared and paid on each unit to provide holders of exchangeable shares with an economic return equivalent to holders of units.

    In addition to carefully considering the disclosures made in this news release in its entirety, shareholders are strongly encouraged to carefully review the Letter to Unitholders, Supplemental Information and other continuous disclosure filings which are available at https://bbu.brookfield.com.

    Please note that Brookfield Business Corporation’s previous audited annual and unaudited quarterly reports have been filed on SEDAR+ and EDGAR and are available at https://bbu.brookfield.com/bbuc under Reports & Filings. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.

     
    Brookfield Business Corporation
    Consolidated Statements of Financial Position
     
      As at
    US$ millions, unaudited December 31, 2024   December 31, 2023
                           
    Assets                      
    Cash and cash equivalents         $ 1,008             $ 772  
    Financial assets           353               224  
    Accounts and other receivable, net           3,229               3,569  
    Inventory, net           52               61  
    Other assets           627               737  
    Property, plant and equipment           2,480               2,743  
    Deferred income tax assets           197               221  
    Intangible assets           5,966               6,931  
    Equity accounted investments           198               222  
    Goodwill           4,988               5,702  
    Total Assets         $ 19,098             $ 21,182  
                           
    Liabilities and Equity                      
    Liabilities                      
    Accounts payable and other         $ 5,276             $ 4,818  
    Non-recourse borrowings in subsidiaries of Brookfield Business Corporation           8,490               8,823  
    Exchangeable and class B shares           1,709               1,501  
    Deferred income tax liabilities           988               1,280  
                           
    Equity                      
    Brookfield Business Partners $ (59 )       $ 880      
    Non-controlling interests   2,694           3,880      
          2,635         4,760  
    Total Liabilities and Equity   $ 19,098       $ 21,182  
     
    Brookfield Business Corporation
    Consolidated Statements of Operating Results
     
    US$ millions, unaudited Three Months Ended
    December 31,    		   Year Ended
    December 31,
      2024       2023       2024       2023  
    Continuing operations          
    Revenues $ 2,209     $ 1,946     $ 8,208     $ 7,683  
    Direct operating costs   (2,041 )     (1,749 )     (7,568 )     (6,794 )
    General and administrative expenses   (107 )     (78 )     (326 )     (268 )
    Interest income (expense), net   (212 )     (206 )     (832 )     (878 )
    Equity accounted income (loss), net   2       2       8       3  
    Impairment reversal (expense), net   (689 )     (599 )     (691 )     (606 )
    Gain (loss) on acquisitions/dispositions, net   —       —       —       87  
    Remeasurement of exchangeable and class B shares   (9 )     (392 )     (208 )     (264 )
    Other income (expense), net   (469 )     44       (666 )     126  
    Income (loss) before income tax from continuing operations   (1,316 )     (1,032 )     (2,075 )     (911 )
    Income tax (expense) recovery          
    Current   (8 )     (5 )     (50 )     (167 )
    Deferred   42       1       198       95  
    Net income (loss) from continuing operations $ (1,282 )   $ (1,036 )   $ (1,927 )   $ (983 )
    Discontinued operations          
    Net income (loss) from discontinued operations   —       3,885       —       3,812  
    Net income (loss) $ (1,282 )   $ 2,849     $ (1,927 )   $ 2,829  
    Attributable to:          
    Brookfield Business Partners $ (396 )   $ 454     $ (888 )   $ 519  
    Non-controlling interests   (886 )     2,395       (1,039 )     2,310  


    Cautionary Statement Regarding Forward-looking Statements and Information

    Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian and U.S. securities laws. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of Brookfield Business Partners, as well as regarding recently completed and proposed acquisitions, dispositions, and other transactions, and the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, “seeks”, “intends”, “targets”, “projects”, “forecasts”, “views”, “potential”, “likely” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”.

    Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, investors and other readers should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of Brookfield Business Partners to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements and information. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us or are within our control. If a change occurs, our business, financial condition, liquidity and results of operations and our plans and strategies may vary materially from those expressed in the forward-looking statements and forward-looking information herein.

    Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: the cyclical nature of our operating businesses and general economic conditions and risks relating to the economy, including unfavorable changes in interest rates, foreign exchange rates, inflation and volatility in the financial markets; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including our ability to complete dispositions and achieve the anticipated benefits therefrom; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the ability to appropriately manage human capital; the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation within the countries in which we operate; changes to U.S. laws or policies, including changes in U.S. domestic economic policies and foreign trade policies and tariffs; governmental investigations; litigation; changes in tax laws; ability to collect amounts owed; catastrophic events, such as earthquakes, hurricanes and pandemics/epidemics; cybersecurity incidents; the possible impact of international conflicts, wars and related developments including terrorist acts and cyber terrorism; and other risks and factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States including those set forth in the “Risk Factors” section in our annual report for the year ended December 31, 2024 to be filed on Form 20-F.

    Statements relating to “reserves” are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described herein can be profitably produced in the future. We qualify any and all of our forward-looking statements by these cautionary factors.

    We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements and information, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

    Cautionary Statement Regarding the Use of a Non-IFRS Measure

    This news release contains references to a Non-IFRS measure. Adjusted EBITDA is not a generally accepted accounting measure under IFRS and therefore may differ from definitions used by other entities. We believe this is a useful supplemental measure that may assist investors in assessing the financial performance of Brookfield Business Partners and its subsidiaries. However, Adjusted EBITDA should not be considered in isolation from, or as a substitute for, analysis of our financial statements prepared in accordance with IFRS.

    References to Brookfield Business Partners are to Brookfield Business Partners L.P. together with its subsidiaries, controlled affiliates and operating entities. Unitholders’ results include limited partnership units, redemption-exchange units, general partnership units, BBUC exchangeable shares and special limited partnership units. More detailed information on certain references made in this news release will be available in our Management’s Discussion and Analysis of Financial Condition and Results of Operations in our annual report for the year ended December 31, 2024 to be filed on Form 20-F.

    The MIL Network –

  • MIL-OSI: Signing Day Sports Retains Rights as “National Recruiting Partner” to U.S. Army Bowl Through 2026 in New Deal

    Source: GlobeNewswire (MIL-OSI)

    SCOTTSDALE, Ariz., Jan. 31, 2025 (GLOBE NEWSWIRE) — Signing Day Sports, Inc. (“Signing Day Sports” or the “Company”) (NYSE American: SGN), the developer of the Signing Day Sports app and platform to aid high school athletes in the recruitment process, today announced the signing of a new Sponsorship Agreement with the U.S. Army Bowl, extending its rights as “National Recruiting Partner”. The Sponsorship Agreement solidifies Signing Day Sports’ role as manager of the U.S. Army Bowl’s National Combines and specified Regional Combines, enables the Company to promote its app and services, and provides revenue-sharing opportunities.

    “Our collaboration with the U.S. Army Bowl and the U.S. Army Bowl’s owner, Goat Farm Sports, has already brought over 8,000 new football users into our SaaS model app,” said Jeff Hecklinski, President of Signing Day Sports. “We are ecstatic to be able to finalize a new Sponsorship Agreement, strengthening the business relationship between Goat Farm Sports and Signing Day Sports. We want to thank Goat Farm Sports for their continued trust and support of Signing Day Sports. Based on our prior collaboration as National Recruiting Partner to the U.S. Army Bowl in 2022, 2023 and 2024, we believe that we have created and grown one of the best-known high school football combine series in the country. With the technology of Signing Day Sports and the brand of the U.S. Army Bowl, we have been able to help provide complete and necessary services to student-athletes and their families around the country to help them successfully navigate the college recruiting landscape. Over the past year alone, we have worked with almost 4,000 student-athletes and their families. Through our comprehensive webinars, individual informational sessions, and other outreach, we have helped student-athletes reach their goals of playing college football. We are excited to continue our growth and success alongside Goat Farm Sports and the U.S. Army Bowl in the coming years.”

    Nearly 3,000 student-athletes participated in the 2024 U.S. Army Bowl Regional Combines, and projections exceed 4,000 in 2025. Signing Day Sports will continue to operate the U.S. Army Bowl National Combine in December 2025, now the largest high school football combine in the country. The Company will receive a $60 stipend for each athlete who attends the National Combine and pays the full registration fee. Signing Day Sports will manage specified regional combines, retaining all earnings and absorbing all costs directly with minimal overhead. Regional combines may feature an official U.S. Army Bowl academy, at which the Company will feature a 1-day combine managed and operated by the Company. The Company will receive $135 of any academy fee and commissions for assisting with academy sales. Every participant will receive their video-verified data from their combine in their Signing Day Sports app and, after their free trial period ends, will be added to the app to continue with their recruiting profile. Through the app, athletes will be able to search and communicate directly with coaches from around the country through the newly updated coaches search tab found in the app.

    A copy of the Sponsorship Agreement was filed as an exhibit to the Current Report on Form 8-K filed by Signing Day Sports with the U.S. Securities and Exchange Commission (“SEC”) on January 30, 2025.

    Student-athletes interested in participating in the U.S. Army Regional Combine series can register at sdscombines.com.

    About Signing Day Sports

    Signing Day Sports’ mission is to help student-athletes achieve their goal of playing college sports. Signing Day Sports’ app allows student-athletes to build their Signing Day Sports’ recruitment profile, which includes information college coaches need to evaluate and verify them through video technology. For more information on Signing Day Sports, go to https://bit.ly/SigningDaySports.

    Forward-Looking Statements

    This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “may,” “could,” “will,” “should,” “would,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “project” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, including without limitation, the Company’s ability to realize the expected benefits of its collaboration with the owner of the U.S. Army Bowl; the ability of the collaboration to yield significant revenues or other value for the Company; the Company’s ability to execute the collaboration strategy as expected; the number of student-athletes who will use and purchase subscriptions to the Company’s app through the Company’s U.S. Army Bowl collaboration; the Company’s ability to obtain additional funding to develop additional services and offerings; market acceptance of the Company’s offerings; competition from existing online offerings or new offerings that may emerge; impacts from strategic changes to the Company’s business on its net sales, revenues, income from continuing operations, or other results of operations; the Company’s ability to attract new users and customers, increase the rate of subscription renewals, and slow the rate of user attrition; the Company’s ability and third parties’ abilities to protect intellectual property rights; the Company’s ability to adequately support future growth; the Company’s ability to comply with user data privacy laws and other current or anticipated legal requirements; and the Company’s ability to attract and retain key personnel to manage its business effectively.  Further information regarding factors which could affect the forward-looking statements can be found under “Risk Factors” and sections containing cautionary statements relating to forward-looking statements in the Company’s periodic reports which are filed with the Securities and Exchange Commission. These risks, uncertainties and other factors are, in some cases, beyond our control and could materially affect results. If one or more of these risks, uncertainties or other factors become applicable, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.

    Investor Contacts:
    Crescendo Communications, LLC
    212-671-1020
    SGN@crescendo-ir.com

    The MIL Network –

  • MIL-OSI Security: Man convicted of fatally stabbing Hackney resident following Met investigation

    Source: United Kingdom London Metropolitan Police

    A man has been convicted of fatally stabbing Hackney resident Robert Weston, following an investigation by the Metropolitan Police Service.

    Jaden Sheriff, 20 (22.01.05), of Forston Street, Hackney, was found guilty of murder at the Old Bailey on Thursday, 30 January.

    A jury convicted him of killing 37-year-old Robert Weston, who was stabbed in Hamilton Crescent, Harrow, on Monday, 26 February, 2024.

    DI Devan Taylor, who led the investigation into the murder, said: “This is a tragic case. Robert Weston lost his life, and Jaden Sheriff has to live the rest of his life knowing that he killed a man.

    “He stabbed his victim over what was effectively a neighbourhood dispute. Despite the efforts of paramedics to save his life, Mr Weston was pronounced dead shortly after.

    “This senseless murder has had a devastating impact on the victim’s loved ones. They conducted themselves with great dignity throughout the trial, and my thoughts are with them at this time.”

    Police attended an address Hamilton Crescent around 14:10hrs on 26 February last year. Mr Weston had suffered two stab wounds – one of them to the heart – and, despite the efforts of emergency services, was pronounced dead at the scene.

    In his initial interviews with officers, Sheriff claimed he accidentally stabbed Mr Weston in self-defence, after the victim pulled a knife on him.

    However, police spoke to witnesses, who revealed that the killer set upon Mr Weston following a dispute.

    Forensic evidence revealed that the wounds on Mr Weston could only have been caused by deliberate stabbing to the chest.

    Investigators obtained phone records, which showed that Mr Weston had called 999 on February 23 to complain about Sheriff.

    After an argument with the defendant, Mr Weston told police: ‘I’ve just been threatened in my own house.’

    This was used at trial to illustrate the spiralling relationship between the two men, which culminated in murder days later.

    Sheriff will be sentenced on Friday, 14 February.

    MIL Security OSI –

  • MIL-OSI: Interim report for Q1 of 2024/25 (the period 01.10.2024 – 31.12.2024)

    Source: GlobeNewswire (MIL-OSI)

    Nørresundby, Denmark, 31 January 2025
    Announcement no. 03/2025

    Q1 DELIVERS IMPROVED REVENUE AND GROSS MARGIN COMPARED TO Q1 LAST YEAR.

    “We observed a significant increase in both revenue and gross margin in Q1 2024/25 compared to Q1 2023/24. Historically, Q1 is the lowest-performing quarter for RTX, as many customers reduce inventories to manage year-end working capital.

    In Q1 2024/25, revenue reached DKK 101 million, with a gross margin of 51%, aligning with both our expectations and the previous quarter’s performance. While maintaining strong gross margins across segments, we remain focused on driving revenue growth.

    Order intake increased in this quarter, which is an encouraging development. With short lead times on orders, our visibility for the full year remains limited. However, the first half of the financial year is expected to show an increase in both revenue and EBITDA compared to last year.”

    Mille Tram Lux

    HIGHLIGHTS

    • Revenue in Q1 2024/25 showed an increase of more than 20% compared to Q1 last year, reaching DKK 101 million compared to DKK 82 million in Q1 2023-24.
    • Gross margin reached a solid level of 51% for Q1 2024/25 compared to 39% in Q1 2023/24.
    • Q1 2024/25 showed an increase in new orders compared to previous quarter, however still with order horizons of 3-6 months.
    • Contract signed with Henrik Mørck Mogensen, who will take on the role as CEO of RTX from 1st of March 2025.

    OUTLOOK
    RTX confirms the previously announced financial outlook for 2024/25:

    • Revenue DKK 490 to 520 million
    • EBITDA DKK 0 to 20 million
    • EBIT DKK -35 to -15 million

    RTX A/S

    PETER THOSTRUP        MILLE TRAM LUX
    Chair                                CFO

    Investor and analyst conference call
    On Tuesday, 4 February 2025 at 10:00 CET, RTX will hold a conference call for investors and analysts hosted by Danske Bank.

    To register for the conference call, please e-mail vonh@danskebank.dk.

    Enquiries and further information:
    Peter Thostrup, Chair, tel +45 96 32 23 00
    Mille Tram Lux, CFO, tel +45 96 32 23 00

    Attachments

    The MIL Network –