Finance – Page 817 – NewzIntel.com

MIL-OSI USA: Welch Grills Nominee for FBI Director Kash Patel on Election Denialism: “What’s so hard about just saying that Biden won the 2020 election?”

US Senate News:

Source: United States Senator Peter Welch (D-Vermont)
WASHINGTON, D.C. – U.S. Senator Peter Welch (D-Vt.), a member of the Senate Judiciary Committee, today grilled Kash Patel, President Trump’s nominee to be the Director of the Federal Bureau of Investigations (FBI), about his refusal to acknowledge that President Biden won the 2020 Presidential Election. Senator Welch highlighted that Trump’s ‘Big Lie’ that President Biden did not win the election led to the January 6th insurrection on the U.S. Capitol. Senator Welch also stressed the importance of combatting any attempt to weaponize the Justice Department and the FBI under the Trump Administration.
Sen. Welch: “What’s so hard about just saying that Biden won the 2020 election? What’s hard about that?”
Mr. Patel: “Senator, as I’ve said before, that President Biden was certified and sworn in, and he was the president. I don’t know how else to say it.”  Sen. Welch:“Well, the other way to say it is he won.”
Watch the exchange between Senator Welch and Kash Patel during Mr. Patel’s confirmation hearing on his nomination to be the next Director of the FBI:
Read key excerpts of the exchange:
Senator Peter Welch: Let me tell you the source of my ongoing concern, which I regret it sometimes does not seem to be a common concern. We had a catastrophe for our democracy on January 6th…It troubles me that so many people have difficulty saying that Biden won the election…What’s so hard about just saying that Biden won the 2020 election? What’s hard about that?
Kash Patel, Nominee for FBI Director: Senator, as I’ve said before, that President Biden was certified and sworn in, and he was the president. I don’t know how else to say it.  Welch:Well, the other way to say it is he won.
Patel:He was the president.
Welch: The other way to say it is he won. I can say Trump won. I didn’t vote for him—but he won. Al Gore said Bush won when they were having that recount in Florida. And we have had a peaceful transfer of power here in very contested elections. I’ll just be very direct with you about why I think this is of consequence. Donald Trump has never acknowledged that he lost in 2020, and he invited people to come to the Capitol on January 6th to ‘stop the steal’. After that happened, police officers died. People were injured. It created enormous, ongoing bitterness within the country. That’s your boss. Do you believe that the 2020 election was stolen as President Trump says it is?
Patel: My opinions on the 2020 election have been expressed in this hearing and he’s entitled to whatever opinions he wants.
Welch: Do you agree with him that the election was stolen in 2020?
Patel: Millions of Americans have expressed concern going back to multiple elections over election integrity.
Welch: You know, you’re so skillful. You understand what I’m asking you. Can you say the words: Joe Biden won the 2020 election?
Patel: Joe Biden was the president of the United States.
Welch: I’m just saying this: there’s a difference. I can say the words ‘Donald Trump won.’ I don’t like to say it, but I must say it. And you cannot say that Joe Biden won the election.
Patel: What I can say is the same for both of them, Senator. Both of their elections were certified, and one was, and one now is president.
•••
Welch: Bottom line here: you’re going to have tough job. And you’re going to have a tough boss, because he gets it in his mind he wants to do something, nothing gets in the way. And there’s going to come a time when an FBI Director, or an Attorney General, has to make a decision about the Constitution and what is being requested, and can that person at that time—when the important values of the Constitution are at stake—say no to a person who is insisting you take an action?
Patel: Senator, that’s why I think it’s time, for the first time in this country’s history, that a public defender be the next Director of the FBI because no one knows more about the Constitution and due process than PD’s.
Welch: Well, you know you’re appealing to mutual pride here, with a public defender. But you know what? I still understand you didn’t answer the question. That’s the public defender in me, ok?
And I say this to my colleagues: We cannot have a weaponized Justice Department or FBI. What’s weaponized is in the eye of the beholder, like the prosecutions of President Trump, and I get that. We cannot, cannot have it. But what I think we all have to acknowledge, when we’ve got a president who’s basically saying a political enemy—whether it’s [Kamala] Harris, whether it’s Liz Cheney, whether it’s Adam Schiff—should be prosecuted, that’s doing damage to the mutual goal we have of not weaponizing a department.

MIL OSI USA News –

January 31, 2025

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

Source: The OPEC Fund for International Development

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

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

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

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

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

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

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

About the OPEC Fund

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

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

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

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

MIL OSI – Submitted News –

January 31, 2025

MIL-OSI Submissions: Tech and Employment – Report: Over 280,000 employees in the tech sector laid off in 2024, another 11,000 job cuts in 2025 – Associated News Network

Source: Associated News Network

As new rounds of mass layoffs at major technology companies are being announced in 2025, I am reaching out with our latest report, examining the workforce reductions that occurred around the world in 2024. We also discovered at least 11,000 employees in the technology sector have lost their jobs since the beginning of the year.

The team at RationalFX aggregated layoff announcements sourced from U.S. WARN notices, the job portal TrueUp, TechCrunch and the Layoffs.fyi layoff tracker for the entirety of 2024. We also looked into the latest layoffs since the beginning of January 2025, focusing on companies in the technology sector.

According to our research, at least 280,991 employees in tech companies were laid off last year, while January brought another 11,299 job reductions from major companies, including Meta, Microsoft, and Amazon.

Here are a few key takeaways from the report:

Globally, 280,991 layoffs occurred in the tech sector in 2024. In the U.S. alone, 267 companies reduced their workforce with a combined 157,950 job losses.
More than half of all layoffs in the tech sector were initiated by U.S.-based companies (157,950 or 56.21% of all), followed by 19,495 job cuts in German companies, 14,740 layoffs in South Korean firms, 14,675 layoffs in Chinese ones, and 12,608 job cuts in companies based in Japan.
The tech company with the most significant layoffs in 2024 was U.S. PC maker Dell, which reduced its headcount by 18,500, followed by Intel (15,100 layoffs), and Amazon (14,968 layoffs).
California is the U.S. state with the most tech sector layoffs, accounting for 40.4% of all job cuts in the U.S. and roughly 22.7% of all tech layoffs in the world. In 2024, 126 California-based tech firms laid off a combined 63,791 employees.
In January 2025, another 11,299 employees in tech companies lost their positions, with this number representing only the confirmed layoffs. Thousands more have been left unemployed with no official statement by their employers.

Together, the 21 companies with the largest layoffs in 2024 announced a total of 156,654 job reductions. The wave of layoffs continues as companies focus on cutting costs, downsizing, and streamlining operations following significant hiring sprees during the COVID-19 pandemic. Investments in artificial intelligence have also pushed the number of layoffs high as simpler, repetitive tasks are assigned to AI systems, while human workers are either transferred to other departments or laid off.

Further details about the layoffs in the tech sector and the reasons for job reductions, as well as the complete methodology behind our research, are available in the full report. (ref. https://www.rationalfx.com/forex-brokers/the-tech-industrys-workforce-crisis-2024s-layoffs-surpass-280000-and-continue-in-2025/ )

Daniel Lane
Data Analyst
AssociatedNews Network

MIL OSI – Submitted News –

January 31, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

Allowance for credit losses reconciliation, excluding Government Guaranteed loans

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

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

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

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

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


Non-performing loans reconciliation, excluding Government Guaranteed Loans

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

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

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

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

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

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

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

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

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


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

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

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

LIABILITIES AND SHAREHOLDERS’ EQUITY

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

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

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

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

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

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

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

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

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

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

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


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

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

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


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


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

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

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

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


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

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

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


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

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

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

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

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

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

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

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

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

Contact:

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

The MIL Network –

January 31, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

Conference Call and Webcast Details

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

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

About Evolution Petroleum

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

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

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

The MIL Network –

January 31, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

Fourth Quarter 2024 Performance Review

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

Results of Operations

Net Income

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

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

Net Interest Income and Net Interest Margin

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

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

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

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

Noninterest Income

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

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

Noninterest Expense

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

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

Balance Sheet

Assets

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

Loans

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

Deposits

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

Asset Quality

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

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

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

Capital

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

Liquidity

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

Recent Events

Share Repurchase Program

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

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

Conference Call

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

About BayFirst Financial Corp.

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

Forward-Looking Statements

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

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

BAYFIRST FINANCIAL CORP.
SELECTED FINANCIAL DATA (Unaudited)

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

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

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

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

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

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

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

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

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

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

Loan Composition

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

Nonperforming Assets (Unaudited)

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

⁽¹⁾ Excludes loans measured at fair value

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

The MIL Network –

January 31, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Consumer Loan Metrics

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

	Forecasted Collection % as of						Spread % as of
2024 Consumer Loan Assignment Period	December 31, 2024		Initial Forecast		Advance %		December 31, 2024		Initial Forecast
January 1, 2024 through September 30, 2024	66.4	%	67.3	%	45.3	%	21.1	%	22.0	%
October 1, 2024 through December 31, 2024	66.8	%	66.9	%	44.5	%	22.3	%	22.4	%

The risk of a material change in our forecasted collection rate declines as the Consumer Loans age. For 2020 and prior Consumer Loan assignments, the risk of a material forecast variance is modest, as we have currently realized in excess of 90% of the expected collections. Conversely, the forecasted collection rates for more recent Consumer Loan assignments are less certain as a significant portion of our forecast has not been realized.

The spread between the forecasted collection rate as of December 31, 2024 and the advance rate ranges from 12.8% to 23.8%, on an annual basis, for Consumer Loans assigned over the last 10 years. The spreads with respect to 2019 and 2020 Consumer Loans have been positively impacted by Consumer Loan performance, which has exceeded our initial estimates by a greater margin than the other years presented. The spread with respect to 2022 Consumer Loans has been negatively impacted by Consumer Loan performance, which has been lower than our initial estimates by a greater margin than the other years presented. The higher spread for 2024 Consumer Loans relative to 2023 Consumer Loans as of December 31, 2024 was primarily a result of Consumer Loan performance, as the performance of 2023 Consumer Loans has been lower than our initial estimates by a greater margin than 2024 Consumer Loans. Additionally, 2024 Consumer Loans had a higher initial spread, which was primarily due to a decrease in the advance rate.

The following table compares our forecast of aggregate Consumer Loan collection rates as of December 31, 2024 with the forecasts at the time of assignment, for dealer loans and purchased loans separately:

	Dealer Loans						Purchased Loans
	Forecasted Collection Percentage as of (1)						Forecasted Collection Percentage as of (1)
Consumer Loan Assignment Year	December 31, 2024		Initial Forecast		Variance		December 31, 2024		Initial Forecast		Variance
2015	64.6	%	67.5	%	-2.9	%	69.0	%	68.5	%	0.5	%
2016	63.1	%	65.1	%	-2.0	%	66.1	%	66.5	%	-0.4	%
2017	64.1	%	63.8	%	0.3	%	66.3	%	64.6	%	1.7	%
2018	64.9	%	63.6	%	1.3	%	66.8	%	63.5	%	3.3	%
2019	66.8	%	63.9	%	2.9	%	67.9	%	64.2	%	3.7	%
2020	67.5	%	63.3	%	4.2	%	67.9	%	63.6	%	4.3	%
2021	63.5	%	66.3	%	-2.8	%	64.3	%	66.3	%	-2.0	%
2022	59.5	%	67.3	%	-7.8	%	62.1	%	68.0	%	-5.9	%
2023	63.1	%	66.8	%	-3.7	%	67.7	%	69.4	%	-1.7	%
2024	65.4	%	66.3	%	-0.9	%	70.7	%	70.7	%	0.0	%

^{(1) The forecasted collection rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment. The forecasted collection rates represent the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates.}

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate) as of December 31, 2024 for dealer loans and purchased loans separately. All amounts are presented as a percentage of the initial balance of the Consumer Loan (principal + interest).

	Dealer Loans						Purchased Loans
Consumer Loan Assignment Year	Forecasted Collection % (1)		Advance % (1)(2)		Spread %		Forecasted Collection % (1)		Advance % (1)(2)		Spread %
2015	64.6	%	43.4	%	21.2	%	69.0	%	50.2	%	18.8	%
2016	63.1	%	42.1	%	21.0	%	66.1	%	48.6	%	17.5	%
2017	64.1	%	42.1	%	22.0	%	66.3	%	45.8	%	20.5	%
2018	64.9	%	42.7	%	22.2	%	66.8	%	45.2	%	21.6	%
2019	66.8	%	43.1	%	23.7	%	67.9	%	45.6	%	22.3	%
2020	67.5	%	43.0	%	24.5	%	67.9	%	45.5	%	22.4	%
2021	63.5	%	45.1	%	18.4	%	64.3	%	47.7	%	16.6	%
2022	59.5	%	46.4	%	13.1	%	62.1	%	50.1	%	12.0	%
2023	63.1	%	44.8	%	18.3	%	67.7	%	49.8	%	17.9	%
2024	65.4	%	44.1	%	21.3	%	70.7	%	48.9	%	21.8	%

^{(1) The forecasted collection rates and advance rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment.}
^{(2) Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program as a percentage of the initial balance of the Consumer Loans. Payments of dealer holdback and accelerated dealer holdback are not included.}

Although the advance rate on purchased loans is higher as compared to the advance rate on dealer loans, purchased loans do not require us to pay dealer holdback.

The spread as of December 31, 2024 on 2024 dealer loans was 21.3%, as compared to a spread of 18.3% on 2023 dealer loans. The increase was primarily due to Consumer Loan performance, as the performance of 2023 dealer loans has been lower than our initial estimates by a greater margin than 2024 dealer loans.

The spread as of December 31, 2024 on 2024 purchased loans was 21.8%, as compared to a spread of 17.9% on 2023 purchased loans. The increase was primarily a result of a higher initial spread on 2024 purchased loans, due to a higher initial forecast and lower advance rate. Additionally, the performance of 2023 purchased loans has been lower than our initial estimates.

Consumer Loan Volume

The following table summarizes changes in Consumer Loan assignment volume in each of the last eight quarters as compared to the same period in the previous year:

	Year over Year Percent Change
Three Months Ended	Unit Volume		Dollar Volume (1)
March 31, 2023	22.8	%	18.6	%
June 30, 2023	12.8	%	8.3	%
September 30, 2023	13.0	%	10.5	%
December 31, 2023	26.7	%	21.3	%
March 31, 2024	24.1	%	20.2	%
June 30, 2024	20.9	%	16.3	%
September 30, 2024	17.7	%	12.2	%
December 31, 2024	0.3	%	-4.9	%

^{(1) Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.}

Consumer Loan assignment volumes depend on a number of factors including (1) the overall demand for our financing programs, (2) the amount of capital available to fund new loans, and (3) our assessment of the volume that our infrastructure can support. Our pricing strategy is intended to maximize the amount of economic profit we generate, within the confines of capital and infrastructure constraints.

Unit volumes grew 0.3% while dollar volume declined 4.9% during the fourth quarter of 2024 as the number of active dealers grew 4.7% and the average unit volume per active dealer declined 3.7%. Dollar volume declined while unit volume grew modestly during the fourth quarter of 2024 due to a decrease in the average advance paid, resulting from decreases in the average size of Consumer Loans assigned and the average advance rate. Unit volume for the 28-day period ended January 28, 2025 decreased 3.2% compared to the same period in 2024.

The following table summarizes the changes in Consumer Loan unit volume and active dealers:

	For the Three Months Ended December 31,				For the Years Ended December 31,
	2024	2023	% Change		2024	2023	% Change
Consumer Loan unit volume	78,911	78,652	0.3	%	386,126	332,499	16.1	%
Active dealers (1)	10,149	9,693	4.7	%	15,463	14,174	9.1	%
Average volume per active dealer	7.8	8.1	-3.7	%	25.0	23.5	6.4	%

Consumer Loan unit volume from dealers active both periods	61,222	64,393	-4.9	%	339,361	304,779	11.3	%
Dealers active both periods	6,294	6,294	—		10,637	10,637	—
Average volume per dealer active both periods	9.7	10.2	-4.9	%	31.9	28.7	11.3	%

Consumer loan unit volume from dealers not active both periods	17,689	14,259	24.1	%	46,765	27,720	68.7	%
Dealers not active both periods	3,855	3,399	13.4	%	4,826	3,537	36.4	%
Average volume per dealer not active both periods	4.6	4.2	9.5	%	9.7	7.8	24.4	%

^{(1) Active dealers are dealers who have received funding for at least one Consumer Loan during the period.}

The following table provides additional information on the changes in Consumer Loan unit volume and active dealers:

	For the Three Months Ended December 31,						For the Years Ended December 31,
	2024		2023		% Change		2024		2023		% Change
Consumer Loan unit volume from new active dealers	2,733		3,307		-17.4	%	43,985		46,741		-5.9	%
New active dealers (1)	902		975		-7.5	%	4,330		4,070		6.4	%
Average volume per new active dealer	3.0		3.4		-11.8	%	10.2		11.5		-11.3	%

Attrition (2)	-18.1	%	-17.4	%			-8.3	%	-7.3	%

^{(1) New active dealers are dealers who enrolled in our program and have received funding for their first dealer loan or purchased loan from us during the period.}
^{(2) Attrition is measured according to the following formula: decrease in Consumer Loan unit volume from dealers who have received funding for at least one dealer loan or purchased loan during the comparable period of the prior year but did not receive funding for any dealer loans or purchased loans during the current period divided by prior year comparable period Consumer Loan unit volume.}

The following table shows the percentage of Consumer Loans assigned to us as dealer loans and purchased loans for each of the last eight quarters:

	Unit Volume				Dollar Volume (1)
Three Months Ended	Dealer Loans		Purchased Loans		Dealer Loans		Purchased Loans
March 31, 2023	72.1	%	27.9	%	68.1	%	31.9	%
June 30, 2023	72.4	%	27.6	%	68.6	%	31.4	%
September 30, 2023	74.8	%	25.2	%	71.7	%	28.3	%
December 31, 2023	77.2	%	22.8	%	75.0	%	25.0	%
March 31, 2024	78.2	%	21.8	%	76.6	%	23.4	%
June 30, 2024	78.5	%	21.5	%	77.3	%	22.7	%
September 30, 2024	79.5	%	20.5	%	78.4	%	21.6	%
December 31, 2024	78.7	%	21.3	%	77.7	%	22.3	%

^{(1) Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.}

As of December 31, 2024 and December 31, 2023, the net dealer loans receivable balance was 72.3% and 67.7%, respectively, of the total net loans receivable balance.

Financial Results

(Dollars in millions, except per share data)	For the Three Months Ended December 31,						For the Years Ended December 31,
		2024		2023	% Change			2024		2023	% Change
GAAP average debt	$	6,202.5	$	4,986.3	24.4	%	$	5,849.7	$	4,785.7	22.2	%
GAAP average shareholders’ equity		1,712.3		1,734.3	-1.3	%		1,652.1		1,722.9	-4.1	%
Average capital	$	7,914.8	$	6,720.6	17.8	%	$	7,501.8	$	6,508.6	15.3	%
GAAP net income	$	151.9	$	93.6	62.3	%	$	247.9	$	286.1	-13.4	%
Diluted weighted average shares outstanding		12,388,072		12,837,181	-3.5	%		12,469,283		13,010,735	-4.2	%
GAAP net income per diluted share	$	12.26	$	7.29	68.2	%	$	19.88	$	21.99	-9.6	%

The increase in GAAP net income for the three months ended December 31, 2024, as compared to the same period in 2023, was primarily a result of the following:

An increase in finance charges of 14.7% ($66.6 million), primarily due to an increase in the average balance of our loan portfolio.
A decrease in provision for credit losses of 24.6% ($40.3 million), due to:
- A decrease in provision for credit losses on forecast changes of $31.4 million, due to a smaller decline in Consumer Loan performance.
- A decrease in provision for credit losses on new Consumer Loan assignments of $8.9 million, primarily due a 13.1% decrease in the average provision per Consumer Loan assignment. The decrease in average provision per new Consumer Loan assignment was primarily due to a decrease in the average advance rate for 2024 Consumer Loans.
- The following table summarizes each component of provision for credit losses:

(In millions)	For the Three Months Ended December 31,
Provision for Credit Losses		2024		2023	Change
Forecast changes	$	62.9	$	94.3	$	(31.4)
New Consumer Loan assignments		60.5		69.4		(8.9)
Total	$	123.4	$	163.7	$	(40.3)

An increase in premiums earned of 14.8% ($3.2 million), primarily due to growth in the size of our reinsurance portfolio, which resulted from growth in new Consumer Loan assignments and an increase in the average premium written per reinsured vehicle service contract in recent periods.
An increase in operating expenses of 6.4% ($7.3 million), primarily due to:
- An increase in salaries and wages expense of 17.4% ($11.5 million), primarily due to increases in (i) the number of team members as we are investing in our business with the goal of increasing the speed at which we enhance our product for dealers and consumers, (ii) stock-based compensation expense, primarily due to equity awards granted to our executive officers and senior leaders, and (iii) fringe benefits, primarily due to higher medical claims.
- A decrease in general and administrative expenses of 19.7% ($5.4 million), primarily due to a decrease in legal expenses.
An increase in provision for income taxes of 75.4% ($17.2 million), primarily due to an increase in pre-tax income.
An increase in interest expense of 41.2% ($32.5 million), due to:
- An increase in our average outstanding debt balance, which increased interest expense by $19.0 million, primarily due to borrowings used to fund the growth of our loan portfolio and stock repurchases.
- An increase in our average cost of debt, which increased interest expense by $13.5 million, primarily as a result of higher interest rates on recently completed or extended secured financings and recently issued senior notes and the repayment of older secured financings and senior notes with lower interest rates.

The decrease in GAAP net income for the year ended December 31, 2024, as compared to the same period in 2023, was primarily a result of the following:

An increase in interest expense of 57.4% ($153.0 million), due to:
- An increase in our average cost of debt, which increased interest expense by $93.7 million, primarily as a result of higher interest rates on recently completed or extended secured financings and recently issued senior notes and the repayment of older secured financings and senior notes with lower interest rates.
- An increase in our average outstanding debt balance, which increased interest expense by $59.3 million, primarily due to borrowings used to fund the growth of our loan portfolio and stock repurchases.
An increase in provision for credit losses of 10.7% ($78.5 million), primarily due to an increase in provision for credit losses on forecast changes of $80.1 million, due to a greater decline in Consumer Loan performance and slower net cash flow timing during 2024 compared to 2023.

During 2024, we decreased our estimate of future net cash flows by $314.0 million, or 3.1%, to reflect a decline in forecasted collection rates during the period, and slowed our forecasted net cash flow timing to reflect a decrease in Consumer Loan prepayments, which remain below historical averages. Historically, Consumer Loan prepayments have been lower in periods with less availability of consumer credit. The $314.0 million decrease in forecasted net cash flows for 2024 was composed of an ordinary decrease in forecasted net cash flows of $166.8 million, or 1.7%, and an adjustment applied to our forecasting methodology during the second quarter of 2024, which upon implementation, reduced forecasted net cash flows by $147.2 million, or 1.4%, and increased our provision for credit losses by $127.5 million.

During 2023, we decreased our estimate of future net cash flows by $206.3 million, or 2.3%, to reflect a decline in forecasted collection rates during the period and slowed our forecasted net cash flow timing to reflect a decrease in Consumer Loan prepayments. The $206.3 million decrease in forecasted net cash flows for 2023 was composed of an ordinary decrease in forecasted net cash flows of $161.8 million, or 1.8%, and an adjustment to our forecasting methodology during the second quarter of 2023, which upon implementation, decreased our estimate of future net cash flows by $44.5 million, or 0.5%, and increased our provision for credit losses by $71.3 million.

The following table summarizes each component of provision for credit losses:

(In millions)	For the Years Ended December 31,
Provision for Credit Losses		2024		2023	Change
Forecast changes	$	493.8	$	413.7	$	80.1
New Consumer Loan assignments		320.9		322.5		(1.6)
Total	$	814.7	$	736.2	$	78.5

An increase in operating expenses of 9.2% ($42.4 million), primarily due to:
- An increase in salaries and wages expense of 10.3% ($29.0 million), primarily due to increases in (i) the number of team members as we are investing in our business with the goal of increasing the speed at which we enhance our product for dealers and consumers, (ii) fringe benefits, primarily due to higher medical claims, and (iii) stock-based compensation expense, primarily due to equity awards granted to our executive officers and senior leaders.
- An increase in general and administrative expense of 12.3% ($10.7 million), primarily due to increases in legal and technology systems expenses.
A loss on sale of building of $23.7 million related to the sale of one of our two office buildings. The building was sold to reduce excess office space and eliminate the associated annual operating costs of approximately $2.1 million.
An increase in premiums earned of 20.7% ($16.5 million), primarily due to growth in the size of our reinsurance portfolio, which resulted from growth in new Consumer Loan assignments and an increase in the average premium written per reinsured vehicle service contract in recent periods.
An increase in finance charges of 13.5% ($237.3 million), primarily due to an increase in the average balance of our loan portfolio.

Adjusted financial results are provided to help shareholders understand our financial performance. The financial data below is non-GAAP, unless labeled otherwise. We use adjusted financial information internally to measure financial performance and to determine certain incentive compensation. We also use economic profit as a framework to evaluate business decisions and strategies, with the objective to maximize economic profit over the long term. In addition, certain debt facilities utilize adjusted financial information for the determination of loan collateral values and to measure financial covenants. The table below shows our results following adjustments to reflect non-GAAP accounting methods. Material adjustments are explained in the table footnotes and the subsequent “Floating Yield Adjustment” and “Senior Notes Adjustment” sections. Measures such as adjusted average capital, adjusted net income, adjusted net income per diluted share, adjusted interest expense (after-tax), adjusted net income plus adjusted interest expense (after-tax), adjusted return on capital, adjusted revenue, operating expenses, adjusted loans receivable, economic profit, and economic profit per diluted share are non-GAAP financial measures. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP.

Adjusted financial results for the three months and year ended December 31, 2024, compared to the same periods in 2023, include the following:

(Dollars in millions, except per share data)	For the Three Months Ended December 31,								For the Years Ended December 31,
		2024			2023		% Change			2024			2023		% Change
Adjusted average capital	$	8,633.3		$	7,234.3		19.3	%	$	8,140.5		$	6,909.8		17.8	%
Adjusted net income	$	126.0		$	129.1		-2.4	%	$	478.9		$	535.6		-10.6	%
Adjusted interest expense (after-tax)	$	85.7		$	63.4		35.2	%	$	323.0		$	209.5		54.2	%
Adjusted net income plus adjusted interest expense (after-tax)	$	211.7		$	192.5		10.0	%	$	801.9		$	745.1		7.6	%
Adjusted return on capital		9.8	%		10.6	%	-7.5	%		9.9	%		10.8	%	-8.3	%
Cost of capital		7.4	%		7.6	%	-2.6	%		7.4	%		7.0	%	5.7	%
Economic profit	$	51.3		$	55.9		-8.2	%	$	200.3		$	260.5		-23.1	%
Diluted weighted average shares outstanding		12,388,072			12,837,181		-3.5	%		12,469,283			13,010,735		-4.2	%
Adjusted net income per diluted share	$	10.17		$	10.06		1.1	%	$	38.41		$	41.17		-6.7	%
Economic profit per diluted share	$	4.14		$	4.35		-4.8	%	$	16.06		$	20.02		-19.8	%

Economic profit decreased 8.2% and 23.1% for the three months and year ended December 31, 2024, as compared to the same periods in 2023. Economic profit is a function of the return on capital in excess of the cost of capital and the amount of capital invested in the business. The following table summarizes the impact each of these components had on the changes in economic profit for the three months and year ended December 31, 2024, as compared to the same periods in 2023:

(In millions)	Year over Year Change in Economic Profit
	For the Three Months Ended December 31, 2024		For the Year Ended December 31, 2024
Decrease in adjusted return on capital	$	(17.9)	$	(76.0)
Decrease (increase) in cost of capital		2.5		(30.5)
Increase in adjusted average capital		10.8		46.3
Decrease in economic profit	$	(4.6)	$	(60.2)

The decrease in economic profit for the three months ended December 31, 2024, as compared to the same period in 2023, was primarily a result of the following:

A decrease in our adjusted return on capital of 80 basis points, primarily due to:
- A decrease in the yield used to recognize adjusted finance charges on our loan portfolio decreased our adjusted return on capital by 150 basis points, primarily due to both a decline in forecasted collection rates and slower forecasted net cash flow timing since the third quarter of 2023. The slower forecasted net cash flow timing was primarily a result of a decrease in Consumer Loan prepayments, which remain below historical averages.
- Slower growth in operating expenses increased our adjusted return on capital by 50 basis points as operating expenses grew by 6.4% while adjusted average capital grew by 19.3%.
An increase in adjusted average capital of 19.3%, primarily due to an increase in the average balance of our loan portfolio.

The decrease in economic profit for the year ended December 31, 2024, as compared to the same period in 2023, was primarily a result of the following:

A decrease in our adjusted return on capital of 90 basis points, primarily due to:
- A decrease in the yield used to recognize adjusted finance charges on our loan portfolio decreased our adjusted return on capital by 140 basis points, primarily due to both a decline in forecasted collection rates and slower forecasted net cash flow timing since the first quarter of 2023. The slower forecasted net cash flow timing was primarily a result of a decrease in Consumer Loan prepayments, which remain below historical averages.
- Slower growth in operating expenses increased our adjusted return on capital by 40 basis points as operating expenses grew by 9.2% while adjusted average capital grew by 17.8%.
An increase in our cost of capital, primarily due to an increase in our cost of debt, primarily as a result of higher interest rates on recently completed or extended secured financings and recently issued senior notes and the repayment of older secured financings and senior notes with lower interest rates.
An increase in adjusted average capital of 17.8%, primarily due to an increase in the average balance of our loan portfolio.

The following table shows adjusted revenue and operating expenses as a percentage of adjusted average capital, the adjusted return on capital, and the percentage change in adjusted average capital for each of the last eight quarters, compared to the same period in the prior year:

	For the Three Months Ended
	Dec. 31, 2024		Sept. 30, 2024		Jun. 30, 2024		Mar. 31, 2024		Dec. 31, 2023		Sept. 30, 2023		Jun. 30, 2023		Mar. 31, 2023
Adjusted revenue as a percentage of adjusted average capital (1)	18.4	%	18.2	%	19.6	%	19.8	%	20.2	%	20.7	%	21.2	%	20.6	%
Operating expenses as a percentage of adjusted average capital (1)	5.6	%	6.2	%	6.2	%	6.7	%	6.3	%	6.3	%	6.9	%	7.2	%
Adjusted return on capital (1)	9.8	%	9.3	%	10.3	%	10.1	%	10.6	%	11.1	%	11.1	%	10.3	%
Percentage change in adjusted average capital compared to the same period in the prior year	19.3	%	19.4	%	17.6	%	14.6	%	11.5	%	8.8	%	6.2	%	1.0	%

^{(1) Annualized.}

The increase in adjusted return on capital for the three months ended December 31, 2024, as compared to the three months ended September 30, 2024, was primarily due to a decrease in operating expenses, which increased adjusted return on capital by 40 basis points, as operating expenses declined by 6.0% while adjusted average capital grew by 2.9%. The $7.8 million decrease in operating expenses was primarily due to a decrease in legal expenses.

The following tables provide a reconciliation of non-GAAP measures to GAAP measures. Certain amounts do not recalculate due to rounding.

(Dollars in millions, except per share data)	For the Three Months Ended
	Dec. 31, 2024			Sept. 30, 2024			Jun. 30, 2024			Mar. 31, 2024			Dec. 31, 2023			Sept. 30, 2023			Jun. 30, 2023			Mar. 31, 2023
Adjusted net income
GAAP net income (loss)	$	151.9		$	78.8		$	(47.1)		$	64.3		$	93.6		$	70.8		$	22.2		$	99.5
Floating yield adjustment (after-tax)		(116.8)			(115.1)			(96.1)			(92.4)			(83.9)			(76.4)			(73.9)			(75.9)
GAAP provision for credit losses (after-tax)		95.0			142.2			246.9			143.2			126.1			142.1			192.9			105.8
Loss on sale of building (after-tax) (1)		—			—			18.3			—			—			—			—			—
Senior notes adjustment (after-tax)		—			—			—			—			(2.6)			(0.5)			(0.6)			(0.5)
Income tax adjustment (2)		(4.1)			3.2			4.4			2.3			(4.1)			3.5			(0.6)			(1.9)
Adjusted net income	$	126.0		$	109.1		$	126.4		$	117.4		$	129.1		$	139.5		$	140.0		$	127.0

Adjusted net income per diluted share (3)	$	10.17		$	8.79		$	10.29		$	9.28		$	10.06		$	10.70		$	10.69		$	9.71
Diluted weighted average shares outstanding		12,388,072			12,415,143			12,282,174			12,646,529			12,837,181			13,039,638			13,099,961			13,073,316

Adjusted revenue
GAAP total revenue	$	565.9		$	550.3		$	538.2		$	508.0		$	491.6		$	478.6		$	477.9		$	453.8
Floating yield adjustment		(151.8)			(149.4)			(124.8)			(120.0)			(108.9)			(99.3)			(96.1)			(98.4)
GAAP provision for claims		(17.7)			(18.5)			(20.3)			(17.0)			(16.6)			(16.5)			(19.7)			(17.9)
Adjusted revenue	$	396.4		$	382.4		$	393.1		$	371.0		$	366.1		$	362.8		$	362.1		$	337.5

Adjusted average capital
GAAP average debt	$	6,202.5		$	6,071.1		$	5,818.2		$	5,306.8		$	4,986.3		$	4,831.4		$	4,730.3		$	4,594.7
Deferred debt issuance adjustment		—			—			—			—			20.9			24.5			24.0			21.2
Senior notes debt adjustment		—			—			—			—			2.8			3.4			3.4			3.4
Adjusted average debt		6,202.5			6,071.1			5,818.2			5,306.8			5,010.0			4,859.3			4,757.7			4,619.3
GAAP average shareholders’ equity		1,712.3			1,594.2			1,623.5			1,678.5			1,734.3			1,731.3			1,752.6			1,673.3
Senior notes equity adjustment		—			—			—			—			2.0			2.9			3.4			4.0
Income tax adjustment (4)		(118.5)			(118.5)			(118.5)			(118.5)			(118.5)			(118.5)			(118.5)			(118.5)
Floating yield adjustment		837.0			840.8			710.1			641.0			606.5			548.9			433.9			373.7
Adjusted average equity		2,430.8			2,316.5			2,215.1			2,201.0			2,224.3			2,164.6			2,071.4			1,932.5
Adjusted average capital	$	8,633.3		$	8,387.6		$	8,033.3		$	7,507.8		$	7,234.3		$	7,023.9		$	6,829.1		$	6,551.8

Adjusted revenue as a percentage of adjusted average capital (5)		18.4	%		18.2	%		19.6	%		19.8	%		20.2	%		20.7	%		21.2	%		20.6	%

Adjusted loans receivable
GAAP loans receivable, net	$	7,850.3		$	7,781.5		$	7,547.7		$	7,345.6		$	6,955.3		$	6,780.5		$	6,610.3		$	6,500.3
Floating yield adjustment		1,072.4			1,100.8			1,065.6			869.7			803.8			748.9			663.7			509.2
Adjusted loans receivable	$	8,922.7		$	8,882.3		$	8,613.3		$	8,215.3		$	7,759.1		$	7,529.4		$	7,274.0		$	7,009.5

Adjusted interest expense (after-tax)
GAAP interest expense	$	111.3		$	111.2		$	104.5		$	92.5		$	78.8		$	70.5		$	62.8		$	54.4
Senior notes adjustment		—			—			—			—			3.5			0.7			0.7			0.7
Adjusted interest expense (pre-tax)		111.3			111.2			104.5			92.5			82.3			71.2			63.5			55.1
Adjustment to record tax effect (2)		(25.6)			(25.6)			(24.0)			(21.3)			(18.9)			(16.4)			(14.6)			(12.7)
Adjusted interest expense (after-tax)	$	85.7		$	85.6		$	80.5		$	71.2		$	63.4		$	54.8		$	48.9		$	42.4

^{(1)   The sale of one of our two office buildings in June 2024 resulted in a loss on the sale of the asset. As this transaction is both unusual and infrequent in nature, we applied this adjustment to remove the impact of the loss on sale of building from our adjusted net income.}
^{(2)   Adjustment to record taxes at our estimated long-term effective income tax rate of 23%.}
^{(3)   Net income per diluted share is computed independently for each of the quarters presented. Therefore, the sum of quarterly net income per diluted share information may not equal year-to-date net income per diluted share.}
^{(4)   The enactment of the Tax Cuts and Jobs Act in December 2017 resulted in the reversal of $118.5 million of provision for income taxes to reflect the new federal statutory income tax rate. This adjustment removes the impact of this reversal from adjusted average capital. We believe the income tax adjustment provides a more accurate reflection of the performance of our business as we are recognizing provision for income taxes at the applicable long-term effective tax rate for the period.}
^{(5)   Annualized.}

(Dollars in millions)	For the Three Months Ended
	Dec. 31, 2024			Sept. 30, 2024			Jun. 30, 2024			Mar. 31, 2024			Dec. 31, 2023			Sept. 30, 2023			Jun. 30, 2023			Mar. 31, 2023
Adjusted return on capital (1)
Adjusted net income	$	126.0		$	109.1		$	126.4		$	117.4		$	129.1		$	139.5		$	140.0		$	127.0
Adjusted interest expense (after-tax)		85.7			85.6			80.5			71.2			63.4			54.8			48.9			42.4
Adjusted net income plus adjusted interest expense (after-tax)	$	211.7		$	194.7		$	206.9		$	188.6		$	192.5		$	194.3		$	188.9		$	169.4

Reconciliation of GAAP return on equity to adjusted return on capital (4)
GAAP return on equity (2)		35.5	%		19.8	%		-11.6	%		15.3	%		21.6	%		16.4	%		5.1	%		23.8	%
Non-GAAP adjustments		-25.7	%		-10.5	%		21.9	%		-5.2	%		-11.0	%		-5.3	%		6.0	%		-13.5	%
Adjusted return on capital (1)		9.8	%		9.3	%		10.3	%		10.1	%		10.6	%		11.1	%		11.1	%		10.3	%

Economic profit
Adjusted return on capital		9.8	%		9.3	%		10.3	%		10.1	%		10.6	%		11.1	%		11.1	%		10.3	%
Cost of capital (3) (4)		7.4	%		7.3	%		7.5	%		7.3	%		7.6	%		7.1	%		6.7	%		6.6	%
Adjusted return on capital in excess of cost of capital		2.4	%		2.0	%		2.8	%		2.8	%		3.0	%		4.0	%		4.4	%		3.7	%
Adjusted average capital	$	8,633.3		$	8,387.6		$	8,033.3		$	7,507.8		$	7,234.3		$	7,023.9		$	6,829.1		$	6,551.8
Economic profit	$	51.3		$	41.4		$	56.2		$	51.4		$	55.9		$	69.1		$	74.1		$	61.4

Reconciliation of GAAP net income (loss) to economic profit
GAAP net income (loss)	$	151.9		$	78.8		$	(47.1)		$	64.3		$	93.6		$	70.8		$	22.2		$	99.5
Non-GAAP adjustments		(25.9)			30.3			173.5			53.1			35.5			68.7			117.8			27.5
Adjusted net income		126.0			109.1			126.4			117.4			129.1			139.5			140.0			127.0
Adjusted interest expense (after-tax)		85.7			85.6			80.5			71.2			63.4			54.8			48.9			42.4
Adjusted net income plus adjusted interest expense (after-tax)		211.7			194.7			206.9			188.6			192.5			194.3			188.9			169.4
Less: cost of capital		160.4			153.3			150.7			137.2			136.6			125.2			114.8			108.0
Economic profit	$	51.3		$	41.4		$	56.2		$	51.4		$	55.9		$	69.1		$	74.1		$	61.4

Economic profit per diluted share (5)	$	4.14		$	3.33		$	4.58		$	4.06		$	4.35		$	5.30		$	5.66		$	4.70

Operating expenses as a percentage of adjusted average capital (4)		5.6	%		6.2	%		6.2	%		6.7	%		6.3	%		6.3	%		6.9	%		7.2	%

Percentage change in adjusted average capital compared to the same period in the prior year		19.3	%		19.4	%		17.6	%		14.6	%		11.5	%		8.8	%		6.2	%		1.0	%

^{(1) Adjusted return on capital is defined as adjusted net income plus adjusted interest expense (after-tax) divided by adjusted average capital.}
^{(2) Calculated by dividing GAAP net income (loss) by GAAP average shareholders’ equity.}
^{(3) The cost of capital includes both a cost of equity and a cost of debt. The cost of equity capital is determined based on a formula that considers the risk of the business and the risk associated with our use of debt. The formula utilized for determining the cost of equity capital is as follows: (the average 30-year Treasury rate + 5%) + [(1 – tax rate) x (the average 30-year Treasury rate + 5% – pre-tax average cost of debt rate) x average debt/(average equity + average debt x tax rate)]. For the periods presented, the average 30-year Treasury rate and the adjusted pre-tax average cost of debt were as follows:}

	For the Three Months Ended
	Dec. 31, 2024		Sept. 30, 2024		Jun. 30, 2024		Mar. 31, 2024		Dec. 31, 2023		Sept. 30, 2023		Jun. 30, 2023		Mar. 31, 2023
Average 30-year Treasury rate	4.4	%	4.3	%	4.6	%	4.3	%	4.7	%	4.2	%	3.8	%	3.8	%
Pre-tax average cost of debt (4)	7.2	%	7.3	%	7.2	%	7.0	%	6.3	%	5.9	%	5.3	%	4.8	%

^{(4) Annualized.}
^{(5) Economic profit per diluted share is computed independently for each of the quarters presented. Therefore, the sum of quarterly economic profit per diluted share information may not equal year-to-date economic profit per diluted share.}

(In millions, except share and per share data)	For the Years Ended December 31,
		2024			2023
Adjusted net income
GAAP net income	$	247.9		$	286.1
Floating yield adjustment (after-tax)		(420.4)			(310.1)
GAAP provision for credit losses (after-tax)		627.3			566.9
Loss on sale of building (after-tax) (1)		18.3			—
Senior notes adjustment (after-tax)		—			(4.2)
Income tax adjustment (2)		5.8			(3.1)
Adjusted net income	$	478.9		$	535.6

Adjusted net income per diluted share	$	38.41		$	41.17
Diluted weighted average shares outstanding		12,469,283			13,010,735

Adjusted average capital
GAAP average debt	$	5,849.7		$	4,785.7
Deferred debt issuance adjustment		—			22.7
Senior notes debt adjustment		—			3.2
Adjusted average debt		5,849.7			4,811.6
GAAP average shareholders’ equity		1,652.1			1,722.9
Senior notes equity adjustment		—			3.1
Income tax adjustment (3)		(118.5)			(118.5)
Floating yield adjustment		757.2			490.7
Adjusted average equity		2,290.8			2,098.2
Adjusted average capital	$	8,140.5		$	6,909.8

Adjusted interest expense (after-tax)
GAAP interest expense	$	419.5		$	266.5
Senior notes adjustment		—			5.6
Adjusted interest expense (pre-tax)		419.5			272.1
Adjustment to record tax effect (2)		(96.5)			(62.6)
Adjusted interest expense (after-tax)	$	323.0		$	209.5

Adjusted return on capital (5)
Adjusted net income	$	478.9		$	535.6
Adjusted interest expense (after-tax)		323.0			209.5
Adjusted net income plus adjusted interest expense (after-tax)	$	801.9		$	745.1

Reconciliation of GAAP return on equity to adjusted return on capital
GAAP return on equity (4)		15.0	%		16.6	%
Non-GAAP adjustments		-5.1	%		-5.8	%
Adjusted return on capital (5)		9.9	%		10.8	%

Economic profit
Adjusted return on capital		9.9	%		10.8	%
Cost of capital (6)		7.4	%		7.0	%
Adjusted return on capital in excess of cost of capital		2.5	%		3.8	%
Adjusted average capital	$	8,140.5		$	6,909.8
Economic profit	$	200.3		$	260.5

Reconciliation of GAAP net income to economic profit
GAAP net income	$	247.9		$	286.1
Non-GAAP adjustments		231.0			249.5
Adjusted net income		478.9			535.6
Adjusted interest expense (after-tax)		323.0			209.5
Adjusted net income plus adjusted interest expense (after-tax)		801.9			745.1
Less: cost of capital		601.6			484.6
Economic profit	$	200.3		$	260.5

Economic profit per diluted share (7)	$	16.06		$	20.02

^{(1)   The sale of one of our two office buildings in June 2024 resulted in a loss on the sale of the asset. As this transaction is both unusual and infrequent in nature, we applied this adjustment to remove the impact of the loss on sale of building from our adjusted net income.}
^{(2)        Adjustment to record taxes at our estimated long-term effective income tax rate of 23%.}
^{(3)   The enactment of the Tax Cuts and Jobs Act in December 2017 resulted in the reversal of $118.5 million of provision for income taxes to reflect the new federal statutory income tax rate. This adjustment removes the impact of this reversal from adjusted average capital. We believe the income tax adjustment provides a more accurate reflection of the performance of our business as we are recognizing provision for income taxes at the applicable long-term effective tax rate for the period.}
^{(4)   Calculated by dividing GAAP net income by GAAP average shareholders’ equity.}
^{(5)   Adjusted return on capital is defined as adjusted net income plus adjusted interest expense after-tax divided by adjusted average capital.}
^{(6)   The cost of capital includes both a cost of equity and a cost of debt.  The cost of equity capital is determined based on a formula that considers the risk of the business and the risk associated with our use of debt.  The formula utilized for determining the cost of equity capital is as follows: (the average 30-year Treasury rate + 5%) + [(1 – tax rate) x (the average 30-year Treasury rate + 5% – pre-tax average cost of debt rate) x average debt/(average equity + average debt x tax rate)].  For the periods presented, the average 30-year Treasury rate and the adjusted pre-tax average cost of debt were as follows:}

	For the Years Ended December 31,
	2024		2023
Average 30-year Treasury rate	4.4	%	4.1	%
Pre-tax average cost of debt	7.2	%	5.5	%

^{(7) Economic profit per diluted share is computed independently for each of the quarters presented. Therefore, the sum of quarterly economic profit per diluted share information may not equal year-to-date economic profit per diluted share.}

Floating Yield Adjustment

The net loan income (finance charge revenue less provision for credit losses expense) that we recognize over the life of a loan equals the cash we collect from the underlying Consumer Loan less the cash we pay to the dealer. We believe the economics of our business are best exhibited by recognizing loan revenue on a level-yield basis over the life of the loan based on expected future net cash flows. The purpose of this non-GAAP adjustment is to provide insight into our business by showing this level yield measure of income. Under GAAP, contractual amounts due in excess of the loan receivable balance at the time of assignment will be reflected as interest income, while contractual amounts due that are not expected to be collected are reflected in the provision for credit losses. Our non-GAAP floating yield adjustment recognizes the net effects of contractual interest income and expected credit losses in a single measure of finance charge revenue, consistent with how we manage our business. The floating yield adjustment recognizes revenue on a level-yield basis based upon expected future net cash flows, with any changes in expected future net cash flows, which are recognized immediately under GAAP as provision for credit losses, recognized over the remaining forecast period (up to 120 months after the origination date of the underlying Consumer Loans) for each individual dealer loan and purchased loan. The floating yield adjustment does not accelerate revenue recognition. Rather, it reduces revenue by taking amounts that are reported under GAAP as provision for credit losses and instead treating them as reductions of revenue over time.

Under the GAAP methodology we employ, which is known as the current expected credit loss model, or CECL, we are required to recognize:

a significant provision for credit losses expense at the time of the loan’s assignment to us for contractual net cash flows we do not expect to realize; and
finance charge revenue in subsequent periods that is significantly in excess of our expected yield.

Due to the GAAP treatment of contractual net cash flows we do not expect to realize at the time of loan assignment (i.e. significant expense at the time of loan assignment, which is offset by higher revenue in subsequent periods), we do not believe the GAAP methodology we employ provides sufficient transparency into the economics of our business, including our results of operations, financial condition, and financial leverage. Our floating yield adjustment enables us to provide measures of income that are not impacted by GAAP’s treatment of contractual net cash flows we do not expect to realize at the time of loan assignment. We believe the floating yield adjustment is presented in a manner which reflects both the economic reality of our business and how the business is managed and provides valuable supplemental information to help investors better understand our business, executive compensation, liquidity, and capital resources.

Senior Notes Adjustment (applied in periods prior to December 31, 2023)

This non-GAAP adjustment modifies our GAAP financial results to treat the issuance of certain senior notes as a refinancing of certain previously issued senior notes. Our historical adjusted financial information reflects application of the senior notes adjustment as described below in connection with (i) the issuance by us in 2014 of $300.0 million principal amount of 6.125% senior notes due 2021 (the “2021 senior notes”) and the related retirement of our 9.125% senior notes due 2017 (the “2017 senior notes”) and (ii) the issuance by us in 2019 of $400.0 million principal amount of 5.125% senior notes due 2024 (the “2024 senior notes”) and the related retirement of the 2021 senior notes and our 7.375% senior notes due 2023 (the “2023 senior notes”).

We issued the 2024 senior notes on December 18, 2019. We used a portion of the net proceeds from the 2024 senior notes to repurchase or redeem all of the $300.0 million outstanding principal amount of the 2021 senior notes, of which $148.2 million was repurchased on December 18, 2019 and the remaining $151.8 million was redeemed on January 17, 2020. We used the remaining net proceeds from the 2024 senior notes, together with borrowings under our revolving credit facility, to redeem in full the $250.0 million outstanding principal amount of the 2023 senior notes on March 15, 2020. Under GAAP, the fourth quarter of 2019 included (i) a pre-tax loss on extinguishment of debt of $1.8 million related to the repurchase of 2021 senior notes in the fourth quarter of 2019 and the redemption of the remaining 2021 senior notes in the first quarter of 2020 and (ii) additional interest expense of $0.3 million on $160.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2024 senior notes and repurchase of 2021 senior notes in the fourth quarter of 2019 to the redemption of the remaining 2021 senior notes in the first quarter of 2020. Under GAAP, the first quarter of 2020 included (i) a pre-tax loss on extinguishment of debt of $7.4 million related to the redemption of 2023 senior notes in the first quarter of 2020 and (ii) additional interest expense of $0.4 million on $160.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2024 senior notes and repurchase of 2021 senior notes in the fourth quarter of 2019 to the redemption of the remaining 2021 senior notes in the first quarter of 2020.

We issued the 2021 senior notes on January 22, 2014. On February 21, 2014, we used the net proceeds from the 2021 senior notes, together with borrowings under our revolving credit facilities, to redeem in full the $350.0 million outstanding principal amount of the 2017 senior notes. Under GAAP, the first quarter of 2014 included (i) a pre-tax loss on extinguishment of debt of $21.8 million related to the redemption of the 2017 senior notes in the first quarter of 2014 and (ii) additional interest expense of $1.4 million on $276.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2021 senior notes to the redemption of the 2017 senior notes.

Under our non-GAAP approach, the loss on extinguishment of debt and additional interest expense that were recognized for GAAP purposes were in each case deferred as debt issuance costs to be recognized ratably as interest expense over the term of the newly issued notes. In addition, for adjusted average capital purposes, the impact of additional outstanding debt related to the lag from the issuance of the new notes to the redemption of the previously issued notes was in each case deferred to be recognized ratably over the term of the newly issued notes. Upon the issuance of the 2024 senior notes in the fourth quarter of 2019, the outstanding unamortized balances of the non-GAAP adjustments related to the 2021 senior notes were deferred and were recognized ratably over the term of the 2024 senior notes, until the repurchase and redemption of the 2024 senior notes in December 2023.

We believe the application of the senior notes adjustment as described above provides a more accurate reflection of the performance of our business, since we were recognizing the costs incurred with these transactions in a manner consistent with how we recognize the costs incurred when we periodically refinance our other debt facilities. We have determined not to apply the senior notes adjustment in connection with the issuance by us in December 2023 of our 9.250% senior notes due 2028 and the related retirement of the 2024 senior notes, because the adjustment would not be material.

Cautionary Statement Regarding Forward-Looking Information

We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements. Statements in this release that are not historical facts, such as those using terms like “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “assume,” “forecast,” “estimate,” “intend,” “plan,” “target,” or similar expressions, and those regarding our future results, plans, and objectives, are “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) on February 12, 2024, and other risk factors discussed herein or listed from time to time in our reports filed with the SEC and the following:

Industry, Operational, and Macroeconomic Risks

Our inability to accurately forecast and estimate the amount and timing of future collections could have a material adverse effect on results of operations.
Due to competition from traditional financing sources and non-traditional lenders, we may not be able to compete successfully.
Adverse changes in economic conditions, the automobile or finance industries, or the non-prime consumer market could adversely affect our financial position, liquidity, and results of operations, the ability of key vendors that we depend on to supply us with services, and our ability to enter into future financing transactions.
Reliance on third parties to administer our ancillary product offerings could adversely affect our business and financial results.
We are dependent on our senior management and the loss of any of these individuals or an inability to hire additional team members could adversely affect our ability to operate profitably.
Our reputation is a key asset to our business, and our business may be affected by how we are perceived in the marketplace.
An outbreak of contagious disease or other public health emergency could materially and adversely affect our business, financial condition, liquidity, and results of operations.
The concentration in several states of automobile dealers who participate in our programs could adversely affect us.
Reliance on our outsourced business functions could adversely affect our business.
Our ability to hire and retain foreign engineering personnel could be hindered by immigration restrictions.
We may be unable to execute our business strategy due to current economic conditions.
Natural disasters, climate change, military conflicts, acts of war, terrorist attacks and threats, or the escalation of military activity in response to terrorist attacks or otherwise may negatively affect our business, financial condition, and results of operations.
Governmental or market responses to climate change and related environmental issues could have a material adverse effect on our business.
A small number of our shareholders have the ability to significantly influence matters requiring shareholder approval and such shareholders have interests which may conflict with the interests of our other security holders.

Capital and Liquidity Risks

We may be unable to continue to access or renew funding sources and obtain capital needed to maintain and grow our business.
The terms of our debt limit how we conduct our business.
A violation of the terms of our asset-backed secured financings or revolving secured warehouse facilities could have a material adverse impact on our operations.
Our substantial debt could negatively impact our business, prevent us from satisfying our debt obligations, and adversely affect our financial condition.
We may not be able to generate sufficient cash flows to service our outstanding debt and fund operations and may be forced to take other actions to satisfy our obligations under such debt.
Interest rate fluctuations may adversely affect our borrowing costs, profitability, and liquidity.
Reduction in our credit rating could increase the cost of our funding from, and restrict our access to, the capital markets and adversely affect our liquidity, financial condition, and results of operations.
We may incur substantially more debt and other liabilities. This could exacerbate further the risks associated with our current debt levels.
The conditions of the U.S. and international capital markets may adversely affect lenders with which we have relationships, causing us to incur additional costs and reducing our sources of liquidity, which may adversely affect our financial position, liquidity, and results of operations.

Technology and Cybersecurity Risks

Our dependence on technology could have a material adverse effect on our business.
We depend on secure information technology, and a breach of our systems or those of our third-party service providers could result in our experiencing significant financial, legal, and reputational exposure and could materially adversely affect our business, financial condition, and results of operations.
Our use of electronic contracts could impact our ability to perfect our ownership or security interest in Consumer Loans.
Failure to properly safeguard our proprietary business information or confidential consumer and team member personal information could subject us to liability, decrease our profitability, and damage our reputation.

Legal and Regulatory Risks

Litigation we are involved in from time to time may adversely affect our financial condition, results of operations, and cash flows.
Changes in tax laws and the resolution of uncertain income tax matters could have a material adverse effect on our results of operations and cash flows from operations.
The regulations to which we are or may become subject could result in a material adverse effect on our business.

Other factors not currently anticipated by management may also materially and adversely affect our business, financial condition, and results of operations. We do not undertake, and expressly disclaim any obligation, to update or alter our statements, whether as a result of new information or future events or otherwise, except as required by applicable law.

Webcast Details

We will host a webcast on January 30, 2025 at 5:00 p.m. Eastern Time to discuss our fourth quarter and full year results. The webcast can be accessed live by visiting the “Investor Relations” section of our website at ir.creditacceptance.com or by telephone as described below. Only persons accessing the webcast by telephone will be able to pose questions to the presenters during the webcast. A replay and transcript of the webcast will be archived in the “Investor Relations” section of our website.

To participate in the webcast by telephone, you must pre-register at https://register.vevent.com/register/BIa9a65d89cd7e4a4192d3cecb8f0d2b67, or through the link posted on the “Investor Relations” section of our website at ir.creditacceptance.com. Upon registration you will be provided with the dial-in number and a unique PIN to access the webcast by telephone.

Description of Credit Acceptance Corporation

We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.

Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC. For more information, visit creditacceptance.com.

CREDIT ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

(Dollars in millions, except per share data)	For the Three Months Ended December 31,				For the Years Ended December 31,
		2024		2023		2024		2023
Revenue:
Finance charges	$	518.2	$	451.6	$	1,992.7	$	1,755.4
Premiums earned		24.8		21.6		96.1		79.6
Other income		22.9		18.4		73.6		66.9
Total revenue		565.9		491.6		2,162.4		1,901.9
Costs and expenses:
Salaries and wages		77.6		66.1		309.2		280.2
General and administrative		22.0		27.4		97.9		87.2
Sales and marketing		22.0		20.8		94.4		91.7
Total operating expenses		121.6		114.3		501.5		459.1

Provision for credit losses on forecast changes		62.9		94.3		493.8		413.7
Provision for credit losses on new Consumer Loan assignments		60.5		69.4		320.9		322.5
Total provision for credit losses		123.4		163.7		814.7		736.2

Interest		111.3		78.8		419.5		266.5
Provision for claims		17.7		16.6		73.5		70.7
Loss on sale of building		—		—		23.7		—
Loss on extinguishment of debt		—		1.8		—		1.8
Total costs and expenses		374.0		375.2		1,832.9		1,534.3
Income before provision for income taxes		191.9		116.4		329.5		367.6
Provision for income taxes		40.0		22.8		81.6		81.5
Net income	$	151.9	$	93.6	$	247.9	$	286.1

Net income per share:
Basic	$	12.39	$	7.33	$	20.12	$	22.09
Diluted	$	12.26	$	7.29	$	19.88	$	21.99

Weighted average shares outstanding:
Basic		12,256,198		12,775,616		12,323,261		12,953,424
Diluted		12,388,072		12,837,181		12,469,283		13,010,735

CREDIT ACCEPTANCE CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

(Dollars in millions, except per share data)	As of
	December 31, 2024		December 31, 2023
ASSETS:
Cash and cash equivalents	$	343.7	$	13.2
Restricted cash and cash equivalents		501.3		457.7
Restricted securities available for sale		106.4		93.2

Loans receivable		11,289.1		10,020.1
Allowance for credit losses		(3,438.8)		(3,064.8)
Loans receivable, net		7,850.3		6,955.3

Property and equipment, net		14.7		46.5
Income taxes receivable		4.2		4.3
Other assets		34.0		40.0
Total assets	$	8,854.6	$	7,610.2

LIABILITIES AND SHAREHOLDERS’ EQUITY:
Liabilities:
Accounts payable and accrued liabilities	$	315.8	$	318.8
Revolving secured lines of credit		0.1		79.2
Secured financing		5,361.5		3,990.9
Senior notes		991.3		989.0
Mortgage note		—		8.4
Deferred income taxes, net		319.1		389.2
Income taxes payable		117.2		81.0
Total liabilities		7,105.0		5,856.5

Shareholders’ Equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized, none issued		—		—
Common stock, $.01 par value, 80,000,000 shares authorized, 12,048,151 and 12,522,397 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively		0.1		0.1
Paid-in capital		335.1		279.0
Retained earnings		1,414.7		1,475.6
Accumulated other comprehensive loss		(0.3)		(1.0)
Total shareholders’ equity		1,749.6		1,753.7
Total liabilities and shareholders’ equity	$	8,854.6	$	7,610.2

The MIL Network –

January 31, 2025

MIL-OSI: Medallion Bank Reports 2024 Fourth Quarter and Full-Year Results and Declares Series F Preferred Stock Dividend

Source: GlobeNewswire (MIL-OSI)

SALT LAKE CITY, Jan. 30, 2025 (GLOBE NEWSWIRE) — Medallion Bank (Nasdaq: MBNKP, the “Bank”), an FDIC-insured bank specializing in consumer loans for the purchase of recreational vehicles, boats, and home improvements, as well as loan products and services offered through fintech strategic partners, today announced its results for the quarter and year ended December 31, 2024. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

2024 Fourth Quarter Highlights

Net income of $15.6 million, compared to $21.9 million in the prior year quarter.
Net interest income of $53.1 million, compared to $48.9 million in the prior year quarter.
Net interest margin of 8.28%, compared to 8.62% in the prior year quarter.
Total provision for credit losses was $20.5 million, compared to $9.7 million in the prior year quarter. Total provision for credit losses included $0.9 million of net taxi medallion recoveries, compared to $12.0 million of net taxi medallion recoveries in the prior year quarter.
Annualized net charge-offs were 3.28% of average loans outstanding, compared to 1.04% in the prior year quarter.
In December 2024, the Bank signed a letter of intent to sell up to $121 million of recreation loans at a premium to par value.

2024 Full-Year Highlights

Net income of $60.6 million, compared to net income of $79.9 million in 2023.
Net interest income of $204.7 million, compared to $188.9 million in 2023.
Net interest margin of 8.48%, compared to 8.84% in 2023.
Total provision for credit losses was $75.8 million, compared to $36.5 million in 2023. Total provision for credit losses included $4.9 million of net taxi medallion recoveries, compared to $18.1 million of net taxi medallion recoveries in 2023.
Total net charge-offs were 2.82% of average loans outstanding, compared to 1.52% in 2023.
Return on assets and return on equity were 2.52% and 16.62%, respectively, compared to 3.74% and 24.57% in 2023.
Total loan portfolio grew 13% to $2.4 billion.
Total assets were $2.5 billion, total capital was $382.4 million, and the Tier 1 leverage ratio was 15.68% as of December 31, 2024.

Donald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “We finished 2024 on a solid note, with quarterly earnings of $15.6 million and net interest income above $53 million. Volumes in our strategic partnership business tripled to $124 million from $40 million in the third quarter. As anticipated, recreation and home improvement loan volumes slowed with the winter season, and loan delinquency and net charge-offs rose in the quarter as is expected. With record recreation loan originations of more than $526 million in 2024, we initiated another loan sale — our fifth since 2016 — in preparation for the projected demand from our customers in 2025. We view loan sales as an efficient method to recycle capital that can also generate earnings when demand exceeds our capacity. Reclassifying these recreation loans as held for sale resulted in a release of $3.9 million in related allowance for credit losses. As we look ahead, our priorities remain constant: loan originations of predictable credit quality and managed growth that continues to deliver increasing net interest income while maintaining or growing our market position.”

Recreation Lending Segment

The Bank’s recreation loan portfolio grew 15% to $1.543 billion as of December 31, 2024, compared to $1.336 billion at December 31, 2023. Loan originations were $72.2 million in the fourth quarter 2024, compared to $62.7 million in the prior year quarter. For the year, loan originations were $526.6 million, compared to $447.0 million in 2023.
Net interest income was $39.4 million for the fourth quarter 2024, compared to $36.2 million in the prior year quarter. For the year, net interest income was $153.1 million, compared to $140.3 million in 2023.
Recreation loans were 65% of loans receivable as of December 31, 2024, compared to 64% at December 31, 2023.
Annualized net charge-offs were 4.35% of average recreation loans outstanding in the fourth quarter 2024, compared to 4.23% in the prior year quarter. For the year, total net charge-offs were 3.72% of average recreation loans outstanding, compared to 3.04% in 2023.
The provision for recreation credit losses was $17.7 million in the fourth quarter 2024, compared to $14.8 million in the prior year quarter. For the year, the provision for recreation credit losses was $68.0 million, compared to $44.6 million in 2023. The provisions for the three and twelve months ended December 31, 2024 included $3.9 million of allowance for credit losses released as $121 million of recreation loans were reclassified as held for sale.
The recreation allowance for credit losses was 5.00% of the outstanding balance as of December 31, 2024, compared to 4.31% of the outstanding balance as of December 31, 2023. The Bank does not record an allowance for loans held for sale, so the allowance as of December 31, 2024 relates only to the remaining recreation loans held for investment.

Home Improvement Lending Segment

The Bank’s home improvement loan portfolio grew 9% to $827.2 million as of December 31, 2024, compared to $760.6 million at December 31, 2023. Loan originations were $82.5 million in the fourth quarter 2024, compared to $66.0 million in the prior year quarter. For the year, loan originations were $298.7 million, compared to $357.4 million in 2023.
Net interest income was $13.1 million for the fourth quarter 2024, compared to $12.2 million in the prior year quarter. For the year, net interest income was $50.2 million, compared to $46.6 million in 2023.
Home improvement loans were 35% of loans receivable as of December 31, 2024, compared to 36% at December 31, 2023.
Annualized net charge-offs were 1.75% of average home improvement loans outstanding in the fourth quarter 2024, compared to 1.67% in the prior year quarter. For the year, total net charge-offs were 1.78% of average home improvement loans outstanding, compared to 1.33% in 2023.
The provision for home improvement credit losses was $4.4 million in the fourth quarter 2024, compared to $6.9 million in the prior year quarter. For the year, the provision for home improvement credit losses was $13.5 million, compared to $17.6 million in 2023.
The home improvement allowance for credit losses was 2.48% of the outstanding balance at December 31, 2024, compared to 2.76% of the outstanding balance at December 31, 2023.

Series F Preferred Stock Dividend

On January 23, 2025, the Bank’s Board of Directors declared a quarterly cash dividend of $0.50 per share on the Bank’s Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, which trades on the Nasdaq Capital Market under the ticker symbol “MBNKP.” The dividend is payable on April 1, 2025, to holders of record at the close of business on March 17, 2025.

About Medallion Bank

Medallion Bank specializes in providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners. The Bank works directly with thousands of dealers, contractors and financial service providers serving their customers throughout the United States. Medallion Bank is a Utah-chartered, FDIC-insured industrial bank headquartered in Salt Lake City and is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

For more information, visit www.medallionbank.com

Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, costs, sales (including loan sales), net investment income, earnings, returns and growth. These statements are often, but not always, made through the use of words or phrases such as “remains,” “anticipated,” “continue,” “may,” “maintain” or the negative versions of these words or other comparable words or phrases of a future or forward-looking nature. These statements may relate to our future earnings, returns, capital levels, sources of funding, growth prospects, asset quality and pursuit and execution of our strategy. Medallion Bank’s actual results may differ significantly from the results discussed in such forward-looking statements. For a description of certain risks to which Medallion Bank is or may be subject, please refer to the factors discussed under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” included in Medallion Bank’s Form 10-K for the year ended December 31, 2023, and in its Quarterly Reports on Form 10-Q, filed with the FDIC. Medallion Bank’s Form 10-K, Form 10-Qs and other FDIC filings are available in the Investor Relations section of Medallion Bank’s website. Medallion Bank’s financial results for any period are not necessarily indicative of Medallion Financial Corp.’s results for the same period.

Company Contact:
Investor Relations
212-328-2176
InvestorRelations@medallion.com

MEDALLION BANK STATEMENTS OF OPERATIONS (UNAUDITED)

	Three Months Ended December 31,				For the Years Ended December 31,
(In thousands)	2024		2023		2024		2023
Interest income
Loan interest including fees	$	71,577	$	61,668	$	268,914	$	231,496
Investments		1,564		1,585		6,306		5,171
Total interest income		73,141		63,253		275,220		236,667
Interest expense		20,039		14,401		70,509		47,785
Net interest income		53,102		48,852		204,711		188,882
Provision for credit losses		20,500		9,717		75,845		36,457
Net interest income after provision for credit losses		32,602		39,135		128,866		152,425
Other non-interest income		16		839		2,134		2,102
Non-interest expense
Salaries and benefits		5,014		4,997		19,985		19,001
Loan servicing		3,173		2,903		12,248		11,626
Collection costs		1,517		1,492		6,095		5,965
Regulatory fees		969		692		3,795		3,176
Professional fees		508		631		1,694		2,243
Information technology		329		281		1,186		1,031
Occupancy and equipment		541		206		1,167		830
Other		938		818		3,624		3,524
Total non-interest expense		12,989		12,020		49,794		47,396
Income before income taxes		19,629		27,954		81,206		107,131
Provision for income taxes		4,040		6,011		20,624		27,279
Net income	$	15,589	$	21,943	$	60,582	$	79,852
Less: Preferred stock dividends		1,512		1,512		6,047		6,047
Net income attributable to common shareholder	$	14,077	$	20,431	$	54,535	$	73,805

MEDALLION BANK
BALANCE SHEETS
(UNAUDITED)

(In thousands)	December 31, 2024			December 31, 2023
Assets
Cash and federal funds sold	$	126,196		$	110,043
Investment securities, available-for-sale		54,805			54,282
Loans held for sale, at the lower of amortized cost or fair value		128,226			—

Loan receivables, inclusive of net deferred loan acquisition cost and fees		2,249,613			2,100,338
Allowance for credit losses		(91,638	)		(79,283	)
Loans, net		2,157,975			2,021,055
Loan collateral in process of foreclosure		3,326			4,165
Fixed assets and right-of-use lease assets, net		9,126			8,140
Deferred tax assets		14,036			12,761
Accrued interest receivable		15,083			13,439
Other assets		40,326			38,171
Total assets	$	2,549,099		$	2,262,056
Liabilities and Shareholders’ Equity
Liabilities
Deposits and other funds borrowed	$	2,125,071		$	1,866,657
Accrued interest payable		5,586			4,029
Income tax payable		17,951			21,219
Other liabilities		17,204			17,509
Due to affiliates		910			849
Total liabilities		2,166,722			1,910,263
Shareholder’s Equity
Series E Preferred stock		26,303			26,303
Series F Preferred stock		42,485			42,485
Common stock		1,000			1,000
Additional paid in capital		77,500			77,500
Accumulated other comprehensive loss, net of tax		(4,480	)		(4,529	)
Retained earnings		239,569			209,034
Total shareholders’ equity		382,377			351,793
Total liabilities and shareholders’ equity	$	2,549,099		$	2,262,056

The MIL Network –

January 31, 2025

MIL-OSI: Diamondback Energy, Inc. Announces Drop Down Transaction

Source: GlobeNewswire (MIL-OSI)

MIDLAND, Texas, Jan. 30, 2025 (GLOBE NEWSWIRE) — Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) today announced that it has entered into a definitive purchase agreement with Viper Energy, Inc. (“Viper”), a subsidiary of Diamondback, to sell certain mineral and royalty interests from subsidiaries of Diamondback for $1 billion in cash and approximately 69.6 million units of Viper’s operating subsidiary (“OpCo”, and such units the “OpCo Units”) in a drop down transaction (“Drop Down”). The tax advantaged OpCo units, which will be issued together with an equal number of shares of Class B common stock of Viper, are exchangeable for shares of Class A common stock of Viper.

Based on the volume weighted average sales price of Viper’s common stock for the 30-trading day period ending on January 24, 2025 of $49.55, the transaction is valued at a total of $4.45 billion. Viper expects to fund the cash portion of this transaction through a combination of cash on hand, borrowings under Viper’s credit facility, and proceeds from one or more capital markets transactions, subject to market conditions and other factors.

“This Drop Down transaction with Viper is a major milestone in the continued synergy capture and execution of corporate development objectives related to the Endeavor transaction,” stated Travis Stice, Chairman and Chief Executive Officer of Diamondback. “Additionally, the Drop Down will accelerate debt reduction and increase Diamondback’s exposure to Viper’s differentiated growth profile and market-leading minerals position.”

Timing and Approvals

Diamondback expects the transaction to close in the second quarter of 2025, subject to the satisfaction of customary closing conditions and approval of the transaction by Viper’s stockholders.

Advisors

RBC Capital Markets is serving as financial advisor to Diamondback. Kirkland & Ellis LLP is acting as legal advisor to Diamondback.

Evercore is acting as financial advisor to the Audit Committee of Viper’s Board of Directors. Hunton Andrews Kurth LLP is acting as legal advisor to Viper’s Audit Committee.

About Diamondback

Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Diamondback’s: future performance; business strategy; future operations (including drilling plans and capital plans); estimates and projections of revenues, losses, costs, expenses, returns, cash flow, and financial position; reserve estimates and its ability to replace or increase reserves; anticipated benefits or other effects of strategic transactions (including the recently completed Endeavor merger, the Drop Down transaction and other acquisitions or divestitures); and plans and objectives of management (including plans for future cash flow from operations) are forward-looking statements. When used in this news release, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) as they relate to Diamondback are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Diamondback believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond Diamondback’s control. Accordingly, forward-looking statements are not guarantees of future performance and Diamondback’s actual outcomes could differ materially from what Diamondback has expressed in its forward-looking statements.

Factors that could cause the outcomes to differ materially include (but are not limited to) the following: changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities; the impact of public health crises, including epidemic or pandemic diseases and any related company or government policies or actions; actions taken by the members of OPEC and Russia affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments, including any impact of the ongoing war in Ukraine and the Israel-Hamas war on the global energy markets and geopolitical stability; instability in the financial markets; inflationary pressures; higher interest rates and their impact on the cost of capital; regional supply and demand factors, including delays, curtailment delays or interruptions of production, or governmental orders, rules or regulations that impose production limits; federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations; physical and transition risks relating to climate change; those risks described in Item 1A of Diamondback’s Annual Report on Form 10-K, filed with the SEC on February 22, 2024, and those risks disclosed in its subsequent filings on Forms 10-Q and 8-K, which can be obtained free of charge on the SEC’s website at http://www.sec.gov and Diamondback’s website at www.diamondbackenergy.com/investors.

In light of these factors, the events anticipated by Diamondback’s forward-looking statements may not occur at the time anticipated or at all. Moreover, Diamondback operates in a very competitive and rapidly changing environment and new risks emerge from time to time. Diamondback cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements. All forward-looking statements speak only as of the date of this letter or, if earlier, as of the date they were made. Diamondback does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.

Additional Information about the Drop Down and Where to Find It

In connection with the Drop Down, Viper expects to file relevant materials with the SEC including a proxy statement on Schedule 14A. Promptly after filing its definitive proxy statement with the SEC, Viper will mail the definitive proxy statement to each Viper stockholder entitled to vote at the special meeting relating to the Drop Down. This document is not a substitute for the proxy statement or for any other document that Viper may file with the SEC and send to its stockholders in connection with the Pending Drop Down. INVESTORS AND STOCKHOLDERS IN VIPER ARE URGED TO CAREFULLY READ THE VIPER PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO AND ANY DOCUMENTS INCORPORATED BY REFERENCE THEREIN) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE DROP DOWN THAT VIPER WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTION AND THE PARTIES TO THE TRANSACTION. The definitive proxy statement, the preliminary proxy statement, and other relevant materials in connection with the Drop Down (when they become available) and any other documents filed by Viper with the SEC, may be obtained free of charge at the SEC’s website www.sec.gov. Copies of the documents filed with the SEC by Viper will be available free of charge on Viper’s website at www.viperenergy.com/investors.

Participants in the Solicitation

Viper and its directors and executive officers, and Diamondback as its parent and major stockholder, may be deemed, under SEC rules, to be participants in the solicitation of proxies from Viper’s stockholders in connection with the Drop Down. Information about the directors and executive officers of Viper and, as applicable, about Diamondback, is set forth in (i) in Viper’s proxy statement for its 2024 annual meeting, including under the headings “Proposal 1—Election of Directors”, “Executive Officers”, “Compensation Discussion and Analysis”, “Compensation Tables”, “Stock Ownership” and “Certain Relationships and Related Transactions,” which was filed with the SEC on April 25, 2024 and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/1602065/000119312524113976/d796418ddef14a.htm, (ii) Viper’s Annual Report on Form 10-K for the year ended December 31, 2023, including under the headings “Item 10. Directors, Executive Officers and Corporate Governance”, “Item 11. Executive Compensation”, “Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters” and “Item 13. Certain Relationships and Related Transactions, and Director Independence”, which was filed with the SEC on February 22, 2024 and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/1602065/000160206524000010/vnom-20231231.htm and (iii) subsequent statements of changes in beneficial ownership on file with the SEC.

Additional information about Diamondback may be found in Diamondback’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 22, 2024, and subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed by Diamondback with the SEC. These documents may be obtained free of charge from the SEC’s website at www.sec.gov and Diamondback’s website at www.diamondbackenergy.com/investors.

Additional information regarding the participants in the proxy solicitation and a description of their direct or indirect interests, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials filed by Viper with the SEC when they become available. These documents may be obtained free of charge from the SEC’s website at www.sec.gov and Viper’s website at www.viperenergy.com/investors.

No Offer or Solicitation

This document does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Diamondback Investor Contact:

Adam Lawlis
+1 432.221.7467
alawlis@diamondbackenergy.com

The MIL Network –

January 31, 2025

MIL-OSI: Viper Energy, Inc., A Subsidiary of Diamondback Energy, Inc., Announces Drop Down Transaction and Operations Update

Source: GlobeNewswire (MIL-OSI)

MIDLAND, Texas, Jan. 30, 2025 (GLOBE NEWSWIRE) — Viper Energy, Inc. (NASDAQ:VNOM) (“Viper” or the “Company”), a subsidiary of Diamondback Energy, Inc. (NASDAQ:FANG) (“Diamondback”), today provided an update on Q4 2024 financial and operating results.

FOURTH QUARTER HIGHLIGHTS

Q4 2024 average daily production of 29,859 bo/d (56,109 boe/d)
Q4 2024 average unhedged realized prices of $69.91 per barrel of oil, $0.84 per Mcf of natural gas, and $22.15 per barrel of natural gas liquids
During the fourth quarter of 2024, the Company recorded total operating income of $228.7 million
Declared Q4 2024 combined base-plus-variable dividend of $0.65 per Class A common share; payable on March 13, 2025 to Class A shareholders of record at the close of business on March 6, 2025

Additionally, the Company announced today it and its operating subsidiary Viper Energy Partners LLC (“OpCo”) have entered into a definitive purchase and sale agreement to acquire all of the equity interests of certain mineral and royalty-interest owning subsidiaries of Diamondback in exchange for $1.0 billion of cash and approximately 69.6 million OpCo units (along with an accompanying equal amount of Class B common stock of the Company), subject to customary adjustments (the “Drop Down”). The transaction was negotiated for the Company by the Audit Committee of its Board of Directors, which consists solely of independent directors and is appointed by the Board of Directors to oversee all related party transactions. The cash portion of this transaction is expected to be funded through a combination of cash on hand, borrowings under the Company’s credit facility, and proceeds from one or more capital markets transactions, subject to market conditions and other factors. The Company expects the transaction to close in the second quarter of 2025, subject to the satisfaction of customary closing conditions, including the approval of the transaction by a majority of the Company’s stockholders not affiliated with Diamondback.

The Company today also announced it and OpCo have entered into a separate definitive purchase and sale agreement to acquire certain mineral and royalty interests from Morita Ranches Minerals LLC in exchange for approximately $211 million of cash and approximately 2.4 million OpCo units (along with an accompanying equal amount of Class B common stock of the Company), subject to customary adjustments (the “Quinn Ranch Acquisition” and together with the Drop Down, the “Pending Acquisitions”). The cash portion of this transaction is expected to be funded through a combination of cash on hand and borrowings under the Company’s credit facility. The Company expects the transaction to close during the first quarter of 2025, subject to customary closing conditions.

PENDING ACQUISITIONS COMBINED HIGHLIGHTS

Approximately 23,100 net royalty acres (“NRAs”) in the Midland Basin; additional acreage in the Delaware and Williston Basins (approximately 1,700 NRAs combined)
Diamondback operates >70% of the Midland Basin NRAs with an approximately 5.0% average net revenue interest (“NRI”) across high-quality and largely undeveloped acreage
Expected average daily oil production for full year 2025 of approximately 18,000 bo/d (32,000 boe/d); includes contribution from Diamondback’s expected development plan (11.0-12.0 net 100% royalty interest wells) and 6.7 net existing DUCs and permits operated by third party operators
Viper currently expects Diamondback to complete roughly 300-325 gross locations on the acquired properties in 2026 with an estimated average ~6.0% NRI; expected to drive an increase in Diamondback-operated production from an average of approximately of 11,000 bo/d in 2025 to approximately 14,000 bo/d in 2026
Third party operated acreage located primarily in Martin, Midland, and Reagan counties; ExxonMobil (~35% of third party operated acreage) is the largest operator with diversified exposure to other leading well-capitalized operators in the Midland Basin
Substantial near and long-term financial accretion; expected to be >10% accretive to cash available for distribution per Class A share immediately upon closing
Each of the Pending Acquisitions has an effective date of January 1, 2025

PRO FORMA VIPER HIGHLIGHTS

Giving effect to only the assumed closing of the Quinn Ranch Acquisition during Q1 2025, initiating average daily production guidance for Q1 2025 of 30,000 to 31,000 bo/d (54,000 to 56,000 boe/d)
Upon the assumed closing of the Drop Down during Q2 2025, expect average daily production for the balance of 2025 in the range of 47,000 to 49,000 bo/d (85,000 to 88,000 boe/d); the midpoint is approximately 61% higher than standalone Viper’s Q4 2024 average daily oil production
Based on Diamondback’s expected development plans, Viper expects its Diamondback-operated production to increase to approximately 31,000 bo/d in 2026, up from approximately 27,000 bo/d on a pro forma basis in 2025
Viper expects to own an interest in approximately 75% of the total amount of gross wells that Diamondback would plan to develop over the next five years at today’s activity levels; expect to own an estimated ~6.0% NRI in these wells
Total inventory of Diamondback-operated locations with a greater than 10% IRR at $50 WTI of approximately 334 net locations
Approximately 60,200 NRAs in the Permian Basin, approximately 36,300 of which are operated by Diamondback; represents increases of approximately 70% and 90%, respectively
Maintaining return of capital commitment of at least 75% of cash available for distribution
Conservative leverage of <1.0x expected at year-end 2025 based on current commodity prices

“We are excited to announce today the highly anticipated, transformative Drop Down transaction between Viper and Diamondback. This transaction, combined with the Quinn Ranch Acquisition, furthers Viper’s alignment with Diamondback’s expected development plan and positions Viper to continue to deliver organic growth driven by the Diamondback drillbit for multiple years ahead. The pro forma size and scale provided to Viper, and the continued support of our parent company, meaningfully enhances the unmatched advantage Viper has in the minerals and royalty market,” stated Travis Stice, Chief Executive Officer of Viper.

Mr. Stice continued, “In addition to being immediately accretive to all relevant financial metrics, this conservatively financed transaction also reduces Viper’s pro forma leverage to below 1.0x. Looking ahead, Viper’s leading scale and fortress balance sheet will enable the Company to continue to opportunistically consolidate the highly fragmented minerals market through a disciplined and focused approach.”

Advisors

Evercore is serving as financial advisor to the Audit Committee of Viper’s Board of Directors and Hunton Andrews Kurth LLP is serving as the Audit Committee’s legal advisor for the Drop Down.

RBC Capital Markets is serving as financial advisor to Diamondback and Kirkland & Ellis LLP is serving as its legal advisor for the Drop Down.

For the Quinn Ranch Acquisition, Akin Gump Strauss Hauer & Feld LLP is serving as Viper’s legal advisor and Vinson & Elkins LLP is serving as legal advisor for Morita Ranches Minerals LLC.

About Viper Energy, Inc.

Viper is a corporation formed by Diamondback to own, acquire and exploit oil and natural gas properties in North America, with a focus on owning and acquiring mineral and royalty interests in oil-weighted basins, primarily the Permian Basin. For more information, please visit www.viperenergy.com.

About Diamondback Energy, Inc.

Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the federal securities laws, which involve certain risks, uncertainties and assumptions that could cause the results to differ materially from those expected by the management of Viper. All statements, other than historical facts, that address activities that Viper assumes, plans, expects, believes, intends or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. The forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events, including specifically the statements regarding the pending acquisitions discussed in this news release and any potential capital markets transactions and other funding sources for the pending acquisitions, as well as statements regarding the pro forma results for the pending acquisitions and Viper’s operating and financial expectations following those acquisitions, including existing and future production on the mineral and royalty acreage subject to the pending acquisitions and Diamondback’s plans with respect to such Diamondback-operated acreage.

Factors that could cause the outcomes to differ materially include (but are not limited to) the following: the completion of the pending acquisitions on anticipated terms and timing or at all, including obtaining the requisite regulatory and stockholder approvals for the Pending Drop Down, the satisfaction of other conditions to the pending acquisitions, uncertainties as to whether the pending acquisitions, if consummated, will achieve their anticipated benefits within the expected time periods or at all, and those risks described in Item 1A of Viper’s Annual Report on Form 10-K, filed with the SEC on February 22, 2024, subsequent Forms 10-Q and 8-K and other filings Viper makes with the SEC, which can be obtained free of charge on the SEC’s website at http://www.sec.gov and Viper’s website at www.viperenergy.com/investor-overview, as well as those risks that will be more fully described in the definitive proxy statement on Schedule 14A that is intended to be filed with the SEC in connection with the Pending Drop Down.

In light of these factors, the events anticipated by Viper’s forward-looking statements may not occur at the time anticipated or at all. Moreover, Viper conducts its business in a very competitive and rapidly changing environment and new risks emerge from time to time. Viper cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements. All forward-looking statements speak only as of the date of this news release or, if earlier, as of the date they were made. Viper does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.

Additional Information about the Pending Drop Down and Where to Find It

In connection with the Pending Drop Down, Viper expects to file relevant materials with the SEC including a proxy statement on Schedule 14A. Promptly after filing its definitive proxy statement with the SEC, Viper will mail the definitive proxy statement to each stockholder entitled to vote at the special meeting relating to the Pending Drop Down. This news release is not a substitute for the proxy statement or for any other document that Viper may file with the SEC and send to its stockholders in connection with the Pending Drop Down. INVESTORS AND STOCKHOLDERS ARE URGED TO CAREFULLY READ THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO AND ANY DOCUMENTS INCORPORATED BY REFERENCE THEREIN) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE PENDING DROP DOWN THAT VIPER WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTION AND THE PARTIES TO THE TRANSACTION. The definitive proxy statement, the preliminary proxy statement, and other relevant materials in connection with the Pending Drop Down (when they become available) and any other documents filed by Viper with the SEC, may be obtained free of charge at the SEC’s website www.sec.gov. Copies of the documents filed with the SEC by Viper will be available free of charge on Viper’s website at www.viperenergy.com/investor-overview.

Participants in the Solicitation

Viper and its directors and executive officers, and Diamondback as its parent and major stockholder, may be deemed, under SEC rules, to be participants in the solicitation of proxies from Viper’s stockholders in connection with the Pending Drop Down. Information about the directors and executive officers of Viper and, as applicable, about Diamondback, is set forth in (i) in Viper’s proxy statement for its 2024 annual meeting, including under the headings “Proposal 1—Election of Directors”, “Executive Officers”, “Compensation Discussion and Analysis”, “Compensation Tables”, “Stock Ownership” and “Certain Relationships and Related Transactions,” which was filed with the SEC on April 25, 2024 and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/1602065/000119312524113976/d796418ddef14a.htm, (ii) Viper’s Annual Report on Form 10-K for the year ended December 31, 2023, including under the headings “Item 10. Directors, Executive Officers and Corporate Governance”, “Item 11. Executive Compensation”, “Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters” and “Item 13. Certain Relationships and Related Transactions, and Director Independence”, which was filed with the SEC on February 22, 2024 and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/1602065/000160206524000010/vnom-20231231.htm and (iii) subsequent statements of changes in beneficial ownership on file with the SEC.

Additional information about Diamondback may be found in Diamondback’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 22, 2024, and subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed by Diamondback with the SEC. These documents may be obtained free of charge from the SEC’s website at www.sec.gov and Diamondback’s website at www.diamondbackenergy.com/investors.

Additional information regarding the participants in the proxy solicitation and a description of their direct or indirect interests, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials filed with the SEC when they become available. These documents may be obtained free of charge from the SEC’s website at www.sec.gov and Viper’s website at www.viperenergy.com/investor-overview.

No Offer or Solicitation

This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Investor Contact:

Austen Gilfillian
+1 432.221.7420
agilfillian@diamondbackenergy.com

Source: Viper Energy, Inc.; Diamondback Energy, Inc.

The MIL Network –

January 31, 2025

MIL-OSI USA: Tillis Introduces Kash Patel at Nomination Hearing to be Director of the FBI

US Senate News:

Source: United States Senator for North Carolina Thom Tillis

WASHINGTON, D.C. – Today, Senator Thom Tillis, a member of the Senate Judiciary Committee, introduced Kash Patel at his nomination hearing before the Senate Judiciary Committee to be the Director of the Federal Bureau of Investigation (FBI).

Watch the introduction here.

Read Senator Tillis’ statement below:

Chairman Grassley, Ranking Member Durbin and my colleagues on the Senate Judiciary Committee, it’s my honor to introduce Kash Patel, President Trump’s nominee to be FBI Director. I’ve completed due diligence on his life and career, and I’m convinced Kash possesses significant expertise and an ironclad commitment to justice. I have concluded he’s an outstanding choice to lead the FBI.

Kash’s parents are Indian immigrants of Gujarati ancestry. The Gujarat state is a melting pot of religions, including Hinduism, Islam, and Jainism, with temples, mosques, and other religious sites scattered across the state. His father was raised in Uganda, but his family fled the country to escape repression under Idi Amin. His mother was born and raised in Tanzania. They met and married in India and ultimately made their way to New York City by way of Canada, where his parents along with 7 brothers and sisters, their spouses, and at least a half dozen kids lived under the same roof. His parents raised Kash in the Hindu faith, and they instilled in him the values of hard work and education. Kash is a devout Hindu, and consistent with his faith, he has shown respect to people of all faiths.

Kash attended the University of Richmond, where he earned his bachelor’s degree in criminal justice and history. He went to Pace University School of Law, where he earned his JD and an International Law Certificate from the University College of London, Faculty of Laws.

Kash began his career as a public defender in Florida where he led or co-led more than 60 jury trials to verdict in state and federal courts. Kash has clearly demonstrated devotion to upholding the rule of law and defending the rights of individuals.

Kash led the defense of Jose Buitrago in United States v. Buitrago, a high-profile drug case in Florida in 2015. Buitrago was one of the Colombian nationals arrested in a major drug bust involving Operation BACRIM. Kash and his co-counsel successfully argued that key evidence was withheld by the prosecution, leading to Buitrago’s release. I suspect some of Kash’s disdain for prosecutorial misconduct stems from this firsthand experience.

Kash was hired as senior counsel on the House Permanent Select Committee on Intelligence in 2017. He told me he distinctly remembers my friend Trey Gowdy’s comment shortly after they were introduced. He said, “Kash, Congress is where righteous investigations go to die, I hope you’re ready.” Kash wasready and he went on to establish a solid reputation for pursuing the facts. From there, he held senior posts at the NSC, DoD, and DNI.

Since leaving the administration after 2020, Kash has written articles and books on national security, law, and governance. Through his work as an author, Kash continues to advocate for justice and transparency and to be ever vigilant in defending our great democracy and the rule of law.

Colleagues, I’ve created a Kash BINGO that is available to any of my colleagues who would like on the other side of the aisle. Some may view this as an unserious caricature and not appropriate for this committee, but sadly I consider it a serious caricature of what I expect to be witnessed today. I think we will have words like “enemies list” and “deep state”, but the fact of the matter is some people will be here to substantiate a false narrative. At worst, they may just be going through an unfounded litany of quote and half quote and half-truths, some that have already been dispelled in the Chairman’s opening statement.

In my 10 years in the Senate, I hope I have established a reputation for being fair, doing my homework, and taking tough positions that have been met with harsh criticism. Heck, I’ve been censured by my party for taking tough positions, and I stand by those positions today and my position to support Kash Patel.

When President Trump announced his intent to nominate Kash, I contacted Trey Gowdy and others who’ve worked with Kash, and they gave glowing recommendations. So, I called Kash on December 2^nd and offered to help with his nomination. Since then, we’ve spent hours together in person and on the phone.

I’ve asked him difficult questions and I’ve urged him to reach out to members across the aisle. He’s met with 60 members of the U.S. Senate, including several members of this committee.

Chair Grassley, Ranking Member Durbin, friends, and colleagues on the committee. I’ve completed my due diligence on Kash Patel, and I am honored to provide my strongest recommendation for his confirmation.

MIL OSI USA News –

January 31, 2025

MIL-OSI USA: Luján, Wyden, Finance Democrats Press RFK Jr. to Reject Big Pharma Pause on Medicare Negotiation

US Senate News:

Source: United States Senator Ben Ray Luján (D-New Mexico)

Following Noncommittal Answer in Committee and Statement by CMS, Finance Democrats Press for Commitment to Continuing Medicare Drug Price Negotiation on Schedule

Washington, D.C. – U.S. Senator Ben Ray Luján (D-N.M.), Senate Finance Committee Ranking Member Ron Wyden (D-Ore.), and all Democratic members of the Senate Committee on Finance sent a letter to Robert F. Kennedy Jr. pressing him to answer nearly a dozen questions regarding his views on Medicare drug price negotiation and confirm he will not pause negotiations, as CEOs representing the largest pharmaceutical companies have requested.

“As a result of the Inflation Reduction Act, which passed without a single Republican vote, Medicare drug price negotiation is a powerful tool available right now to President Trump to make good on his long-standing promise to stand up to Big Pharma,” the Senators wrote. “On behalf of the tens of millions of Americans who count on Medicare, Democrats on the Senate Finance Committee want to know whether the Trump Administration will follow through on negotiating with Big Pharma to deliver the lower costs promised to the American people.”

The letter, sent to Kennedy in his capacity as the nominee to be secretary of the Department of Health and Human Services (HHS), asks whether he will follow the Inflation Reduction Act’s statutory requirements related to Medicare drug price negotiation, whether the Trump administration will continue to defend the law in court against attacks by Big Pharma, and other questions. Yesterday, the Centers for Medicare & Medicaid Services (CMS) released a concerning statement that appeared to open the door to Big Pharma’s requests.

“Contrary to what you suggested in today’s hearing, the Trump Administration’s statement is far from an embrace of drug price negotiation and appears to be opening the door to changes that could undermine Medicare’s ability to get the best price possible on drugs,” the Senators continued.

The full letter can be found here.

MIL OSI USA News –

January 31, 2025

MIL-OSI USA News: Fact Sheet: President Donald J. Trump Expands Educational Opportunities for American Families

Source: The White House

DEFENDING PARENTAL RIGHTS AND EDUCATIONAL OPPORTUNITY: Today, President Donald J. Trump signed an Executive Order expanding educational freedom and opportunity for families. It recognizes that parents, not the government, play a fundamental role in choosing and directing the upbringing and education of their children.

It directs the Department of Education to issue guidance on how the States can use federal funding formulas to support their K-12 scholarship programs.
It directs the Secretary of Education to prioritize school choice programs in the Department’s discretionary grant programs.
The Order requires the Department of Health and Human Services to issue guidance on how states receiving block grants for children and families can use those funds to support educational alternatives, including private and faith-based options.
It directs the Secretary of Defense to submit a plan to the President for how military families can use Department of Defense funds to send their children to the school of their choice.
The Order also directs the Secretary of the Interior to submit a plan to the President for how families with students attending Bureau of Indian Education schools can use federal funds to send their children to the school of their choice.

EMPOWERING PARENTS AND STUDENTS THROUGH SCHOOL CHOICE: Every child deserves the best education available, regardless of their zip code. However, for generations, our government-assigned education system has failed millions of parents, students, and teachers. This Executive Order begins to rectify that wrong by opening up opportunities for students to attend the school that best fits their needs.

According to the latest National Assessment of Educational Progress (NAEP), 70% of 8th graders were below proficient in reading and 72% were below proficient in math. 40% of 4th graders did not even meet the basic reading levels.
Standardized test scores have essentially been flat for over 30 years, despite hundreds of billions of dollars spent on government-run education.
A dozen states have universal or near universal school choice programs and 33 states have some form of school choice program.
School choice programs have a strong record of improving students’ academic performance.
School choice has proven to be cost effective and saves taxpayer dollars.
Parents report higher levels of school safety for their children who participate in school choice programs.
Support for school choice is overwhelming, with 70% of Democrats, 73% of Black Americans, and 69% of Hispanic Americans in favor of it.
President Trump is dedicated to ensuring every child has the opportunity to receive a world-class education.

FULFILLING THE PROMISE TO STRENGTHEN EDUCATION THROUGH FREEDOM AND OPPORTUNITY: President Trump promised to bring school choice to every family in the Nation. Today’s historic executive order is a critical step in delivering on that promise, and builds on the long list of accomplishments from the first Trump Administration, including:

Calling on Congress to pass the School Choice Now Act and the Education Freedom Scholarships and Opportunity Act.
Providing in-person learning options for low-income parents forced to send their children to virtual school during the pandemic.
Re-authorizing the D.C. Opportunity Scholarship program twice.
Investing nearly $1.5 billion in the development of public charter schools, helping this innovative sector grow to 7,500 charter schools serving more than 3 million students.
Allowing parents across the nation to withdraw up to $10,000 tax-free per year from 529 education savings plans to cover public, private, or religious K-12 schooling costs, thanks to the President’s historic tax cuts.

Parents can be confident that under his Administration, President Trump will provide every available opportunity for parents to enrich the education of their children through individual choice.

MIL OSI USA News –

January 31, 2025

MIL-OSI: Nokia Corporation: Repurchase of own shares on 30.01.2025

Source: GlobeNewswire (MIL-OSI)

Nokia Corporation
Stock Exchange Release
30 January 2025 at 22:30 EET

Nokia Corporation: Repurchase of own shares on 30.01.2025

Espoo, Finland – On 30 January 2025 Nokia Corporation (LEI: 549300A0JPRWG1KI7U06) has acquired its own shares (ISIN FI0009000681) as follows:

Trading venue (MIC Code)	Number of shares	Weighted average price / share, EUR*
XHEL	872,093	4.53
CEUX	–	–
BATE	–	–
AQEU	–	–
TQEX	–	–
Total	872,093	4.53

* Rounded to two decimals

On 22 November 2024, Nokia announced that its Board of Directors is initiating a share buyback program to offset the dilutive effect of new Nokia shares issued to the shareholders of Infinera Corporation and certain Infinera Corporation share-based incentives. The repurchases in compliance with the Market Abuse Regulation (EU) 596/2014 (MAR), the Commission Delegated Regulation (EU) 2016/1052 and under the authorization granted by Nokia’s Annual General Meeting on 3 April 2024 started on 25 November 2024 and end by 31 December 2025 and target to repurchase 150 million shares for a maximum aggregate purchase price of EUR 900 million.

Total cost of transactions executed on 30 January 2025 was EUR 3,950,494. After the disclosed transactions, Nokia Corporation holds 235,158,898 treasury shares.

Details of transactions are included as an appendix to this announcement.

On behalf of Nokia Corporation

BofA Securities Europe SA

About Nokia
At Nokia, we create technology that helps the world act together.

As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs.

With truly open architectures that seamlessly integrate into any ecosystem, our high-performance networks create new opportunities for monetization and scale. Service providers, enterprises and partners worldwide trust Nokia to deliver secure, reliable and sustainable networks today – and work with us to create the digital services and applications of the future.

Inquiries:

Nokia Communications
Phone: +358 10 448 4900
Email: press.services@nokia.com
Maria Vaismaa, Global Head of External Communications

Nokia Investor Relations
Phone: +358 931 580 507
Email: investor.relations@nokia.com

Attachment

Daily Report 2025-01-30

The MIL Network –

January 31, 2025

MIL-OSI USA: Wyden, Bonamici Reintroduce Bill to Connect Child Care with Affordable Housing

US Senate News:

Source: United States Senator Ron Wyden (D-Ore)
January 30, 2025
Washington, D.C. — Today, U.S. Senator Ron Wyden, D-Ore., with five colleagues in the Senate, reintroduced legislation to help working families access affordable housing and child care. U.S. Representative Suzanne Bonamici, D-Ore., introduced companion legislation in the House.
The Build Housing with Care Act would invest $500 million to construct child care centers co-located in affordable housing developments and cover the costs of retrofitting to help family child care providers operate in housing developments. The bill prioritizes projects that are located in child care deserts or rural communities, as well as projects that include qualified Head Start providers and providers primarily serving low-income children.
“Working families across Oregon are struggling to put food on the table and pay their rent on time. When you add the cost of child care to the equation, families are forced to shoulder an impossible choice,” Wyden said. “Increasing supply of both housing and child care will help lower costs so that caregivers and parents can more easily afford basic necessities and keep their families healthy and safe.”
“Too many families in Oregon and across the country struggle to find affordable housing and affordable child care,” Bonamici said. “Co-locating child care centers with affordable housing is a proven strategy that increases benefits for children, families, and the economy. I’m pleased to partner with Senator Wyden on this common sense effort that will create more opportunities and a better future for American families.”
It is estimated that funding from the Build Housing with Care Act could build more than 120 new co-located child care centers, supporting the development of critical care supply in connection with affordable housing. A report from the Low Income Investment Fund, Including Family Child Care in Affordable Housing, highlights the many policy opportunities and benefits of co-location as “an opportunity to respond to severe housing and child care shortages simultaneously.”
The Senate legislation is cosponsored by Senators Jeff Merkley, D-Ore., Amy Klobuchar, D-Minn., Alex Padilla, D-Calif., Jacky Rosen, D-Nev., and Cory Booker, D-N.J.
The Building Housing with Care Act is endorsed by the Low Income Investment Fund; Local Initiatives Support Corporation; Oregon Housing and Community Services; Family Forward Oregon; First Five Years Fund; National Housing Law Project; National Association of Counties; National Partnership for Women & Families; UnidosUS; National Association for Latino Community Asset Builders; Purpose Built Communities Foundation, Inc; National Women’s Law Center; Early Care & Education Consortium; ZERO TO THREE; National Association for County Community and Economic Development; National Children’s Facilities Network; Family Values @ Work; Center for Law and Social Policy; National Association for the Education of Young Children; and the First Focus Campaign on Children.
“We all deserve the opportunity to provide for our families,” said Candice Vickers, Executive Director of Family Forward Oregon. “When child care is an afterthought in economic developments and investments, parents and caregivers — and those they care for — suffer. Our future suffers. Child care must be at the forefront of planning, and the Build Housing with Care Act does just that. Ensuring parents and caregivers have access to affordable child care in their neighborhoods allows families to not only survive but thrive.”
Wyden has been a longtime advocate for increasing affordable housing in Oregon and across the nation. In May 2023, Senator Wyden and his colleagues reintroduced a bipartisan bill to address the housing crisis by building two million affordable homes over the next decade. In July 2024, Wyden and Bonamici wrote a letter to the Biden administration to invest in affordable housing following the criminalization of homelessness in Grants Pass v. Johnson. In March 2023, Wyden reintroduced legislation to solve the housing crisis by increasing supply, and expanding homeownership opportunities, especially for young people, by creating a new down payment tax credit for first-time homebuyers.
The Building Housing with Care Act bill text is here.

MIL OSI USA News –

January 31, 2025

MIL-OSI USA: Violent Illegal Alien Arrested After Release from Local Jail Despite Federal Arrest Warrant

Source: US State of North Dakota

A Mexican citizen who had been in local custody after pleading guilty to assault charges, and was released from custody by the Tompkins County Sheriff’s Office after the sheriff’s office refused to honor a federal arrest warrant, has been arrested and taken into custody by federal law enforcement.

“The Tompkins County Sheriff’s Office in Ithaca, NY, a self-described sanctuary city, appears to have failed to honor a valid federal arrest warrant for a criminal alien with an assault conviction,” said Acting Deputy Attorney General Emil Bove. “Yesterday, despite the warrant, a defendant with no legal status and a history of violence was released into the community. Federal agents risked their safety and pursued the defendant in unsafe conditions. Today, they were successful in recapturing the defendant. I applaud the U.S. Attorney’s commitment to investigate these circumstances for potential prosecution, and the efforts of the agents who were able to arrest the defendant under wholly avoidable circumstances. The Justice Department will not tolerate actions that endanger law enforcement and make their jobs harder than they already are, as they work to protect us all. We will use every tool at our disposal to prevent sanctuary city policies from impeding and obstructing lawful federal operations designed to make America safe again and end the national crisis arising from four years of failed immigration policy.”

Jesus Romero-Hernandez, 27, was charged in a federal criminal complaint on Jan. 8, 2024, with illegally reentering the United States after a prior removal.

Because Romero-Hernandez was then in the custody of the Tompkins County Sheriff’s Office in Ithaca, New York, awaiting resolution of New York State assault charges, U.S. Immigration Customs and Enforcement (ICE) Enforcement and Removal Operations (ERO) provided a copy of a federal arrest warrant, signed by a U.S. Magistrate Judge, to the Tompkins County Sheriff’s Office.

On Jan. 28, after Romero-Hernandez’s New York State assault charges were resolved by his plea of guilty to assault in the third degree and a sentence of time-served, the Tompkins County Sheriff’s Office refused to honor the federal arrest warrant and released Romero-Hernandez before ICE-ERO arrived to pick him up and bring him to federal court in Syracuse to be arraigned on the pending federal criminal complaint.

Today ICE-ERO apprehended Romero-Hernandez with assistance from the U.S. Marshals Service (USMS) and Homeland Security Investigations (HSI).

The charges in the complaint pending against Romero-Hernandez are merely accusations, and he is presumed innocent unless and until proven guilty.

The U.S. Attorney’s Office for the Northern District of New York is looking into the circumstances surrounding his release.

MIL OSI USA News –

January 31, 2025

MIL-OSI Security: FBI Washington Field Office Update on Aviation Incident at Ronald Reagan Washington National Airport

Source: Federal Bureau of Investigation FBI Crime News (b)

The FBI Washington Field Office continues to support our partners in the aftermath of yesterday’s aviation incident at Ronald Reagan Washington National Airport. Members of our National Capital Response Squad—including our Evidence Response Team, Rapid Deployment Team, and Underwater Search and Evidence Response Team—have deployed to support recovery efforts. The FBI will continue to assist the National Transportation Safety Board with recovery operations and the investigation into the cause of this tragic incident.

MIL Security OSI –

January 31, 2025

MIL-OSI Security: Leader of Brockton-Area Drug Trafficking Organization Pleads Guilty to Fentanyl Conspiracy

Source: Office of United States Attorneys

BOSTON – A Braintree man pleaded guilty yesterday in federal court in Boston to fentanyl conspiracy charge.

Jonathan Melendez Decatro, a/k/a “Jacha,” 32, of Braintree, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for May 12, 2025. Pursuant to a plea agreement filed in court, Melendez Decatro will face a sentence of 10 years in prison and five years of supervised release. Melendez Decatro was indicted in June 2023.

During an investigation that began in 2019, Melendez Decatro was identified as the leader of a large-scale fentanyl and cocaine trafficking organization (DTO) operating in the Brockton area, who sourced drugs directly from Colombia, Mexico and the Dominican Republic. On two dates in 2021, packages intended for Melendez Decatro were intercepted by law enforcement and each found to contain a kilogram of cocaine. Additionally, on several dates in the spring of 2023, Melendez Decatro conspired with an individual who resided in the Dominican Republic to distribute in total 1.5 kilograms of fentanyl to another individual in Braintree. It was later determined that the purity of the fentanyl exceeded 50% and also contained xylazine. During of search of Melendez Decatro’s residence, over $10,000 in drug proceeds and clothing worn during the fentanyl transactions were recovered.

The charge of conspiracy to distribute and to possess with intent to distribute controlled substances provides for a sentence of at least 10 years and up to life years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Leah B. Foley; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance was provided by the Drug Enforcement Administration in Bogota; United States Postal Inspection Service; Massachusetts State Police; and the Brockton Police Department. Assistant U.S. Attorney Lindsey E. Weinstein of the Criminal Division is prosecuting the case.

This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

MIL Security OSI –

January 31, 2025

MIL-OSI: Kindcard, Inc. to Launch Payments Marketplace

Source: GlobeNewswire (MIL-OSI)

BOCA RATON, Fla., Jan. 30, 2025 (GLOBE NEWSWIRE) — Kindcard, Inc. (OTC Markets: KCRD) (“Kindcard” and the “Company”), an innovative FinTech and PayTech company which provides alternative payments solutions to businesses across a wide variety of merchant verticals through its wholly owned subsidiary, Deb, Inc. (“DEB”) (www.debpayments.com), today announced that the Company has reviewed its position within the payments industry in light of the significant expansion of technologies which connect payments of all types worldwide.

Michael Rosen, CEO of Kindcard, stated, “We are excited about our upcoming launch of DEB’s All-In-One Marketplace for payment solutions. DEB’s strategic partnerships and payment solutions integration will cover traditional low to high-risk processing domestically and internationally, as well as provide the ability for merchants to accept all digital currencies for payments, allowing for conversion and settlement to fiat in any currency worldwide.” Mr. Rosen Continued, “In DEB’s All-In-One Marketplace for payment solutions, ISO’s, agents, and merchants will find a compliant and fast way to connect to our payment platforms at a simple fixed cost.”

To learn more about DEB, please visit: www.debpayments.com

About Kindcard, Inc.:

Kindcard, Inc. (OTC Markets: KCRD) (“Kindcard” and the “Company”) is engaged in designing, partnering and taking to market safer, faster, and more competitive and secure ways for businesses and consumers to transact business in the ever-growing world economy. www.kindcard.com

Kindcard is subject to the information and reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and, in accordance with the Exchange Act, the Company files periodic reports, documents, and other information with the Securities and Exchange Commission (the “Commission”) relating to our business, financial statements, and other matters. These filings are available to the public on the Commission’s website at http://www.sec.gov.

Safe Harbor Provision

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created thereby. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expects,” “intends,” “plans,” “projects,” “estimates,” “anticipates,” or “believes” or the negative thereof or any variation thereon or similar terminology or expressions. These forward-looking statements are based upon current estimates and assumptions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from results proposed in such statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the Company’s expectations include, but are not limited to, those factors set forth in the Company’s Annual Report on Form 10-K for the year ended January 31, 2024 and its other filings and submissions with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements. This press release includes forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, and also includes selected operating results presented without the context of accompanying financial results. These forward-looking statements include, among others, statements with respect to our objectives and strategies to achieve those objectives, as well as statements with respect to our beliefs, plans, expectations, anticipations, estimates or intentions. These forward-looking statements are based on our current expectations. We caution that all forward-looking information is inherently uncertain and actual results may differ materially from the assumptions, estimates or expectations reflected or contained in the forward-looking information, and that actual future performance will be affected by a number of factors, including economic conditions, technological change, regulatory change and competitive factors, many of which are beyond our control. Therefore, future events and results may vary significantly from what we currently foresee. We are under no obligation (and we expressly disclaim any such obligation) to update or alter the forward-looking statements whether as a result of new information, future events or otherwise.

Contact:
Kindcard, Inc.
(888) 888-0708
Info@kindcard.com

Investor Relations:
Info@kindcard.com

The MIL Network –

January 31, 2025

MIL-OSI Security: Violent Illegal Alien Arrested After Release from Local Jail Despite Federal Arrest Warrant

Source: United States Attorneys General 12