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Category: Finance

  • MIL-OSI United Nations: Deputy Secretary-General’s remarks at the Mission 300 Africa Energy Summit: “Introduction to the Panel on “Policies and reforms for transforming African energy” [as prepared for delivery]

    Source: United Nations secretary general

    Your Excellency Mr. Doto Biteko, Deputy Prime Minister and Minister for Energy of the United Republic of Tanzani], Excellencies, Ladies and Gentlemen,

    I want to start by thanking the Government of Tanzania and the African Union for its leadership; and the World Bank, the African Development Bank, and the Mission 300 partners for convening this Summit.

    Mission 300’s has undertaken an enormous task: to help close the energy access gap and unlock sustainable development across the continent by delivering electricity to 300 million Africans by 2030.

    As we have heard, we face a stark reality: 685 million people across the continent still lack access to electricity, with the gap widening as population growth outpaces new electricity connections.

    And yet, Africa is richly endowed with natural resources vital for renewable energy technologies: it is home to 60 per cent of the world’s best solar resources and possesses vast wind, hydro, and geothermal potential.

    And critical minerals mined in Africa are powering the renewables revolution around the world.

    Despite this abundance, and record global investments in renewable energies worldwide, Africa continues to be left behind and many Africans continue to lack access to clean, affordable energy. 

    This injustice must be urgently resolved.

    Access to electricity is an essential development requirement, one that can also be the multiplier for acceleration in building a sustainable future for all

    Providing clean energy to local communities,  represents a unique opportunity to improve health, widen access to education and social protection, make food systems resilient, create green jobs and e-commerce and financial services while at the same time protecting the environment and the biodiversity.

    We have heard our distinguished speakers discuss why companies and governments should get involved.  

    The business case is clear: the falling costs of renewables and storage offer a great opportunity to deliver access to energy, energy security and sovereignty, and climate resilience.  

    With the new African Continental Free Trade Area , aiming at a trade zone without barriers to the transfer of goods and services, the business opportunities will further multiply if the right policy environments, coherent and predictable, are put in place.

    As we move into discussing what policies and reforms for transforming African Energy can enable millions to access to energy, I would like to focus on three areas of urgent attention for policy makers:

    First, fostering policy coherence.

    We are 5 years away from the target of our SDGs. And we are not on track.

    Policy makers and the international institutions need to strive to ensure sector wide plans are coherent and aligned with the achievement of the SDGs due in 2030, while investors need robust regulatory laws in place to ensure business can operate aligned with them.

    At this Summit, Mission 300 target countries are presenting their first national energy strategies for achieving universal energy access. These strategies need to be part of a broader plan, one that while achieving universal energy access need to be aligned with the new economy-wide national climate action plans – or NDCs –   consistent with 1.5 degrees, well before COP 30 in November.

    NDCs represent a unique opportunity for all countries to align their new climate plans and energy strategies, together with addressing adaptation needs.

    NDCs must coordinate the transition from fossil fuels with scaling of renewables and grid modernization and expansion, ensuring energy security and affordability.

    And they must be anchored in justice – providing support for affected workers and communities.

    If done right, climate plans align with national development priorities and double as investment plans – becoming blueprints for a more sustainable and prosperous future.

    Excellencies,

    The Secretary-General’s panel on Critical Energy Transition Minerals offers important Principles and Actionable Recommendations to ensure this new era does not repeat historical patterns of exploitation.

    SE4ALL, UN Resident Coordinators and Country Teams will continue to support country level policy reforms, integrate stakeholder innovations, build institutional capacities, and boost infrastructure investments across the entire clean energy supply chain. 

    Second, mobilizing finance and support.

    While private sector investments and innovation are important, public financing, remains vital – especially in modernizing grid infrastructure to expand access and integrate renewables.

    Blending concessional public funds with commercial funds can help multiply renewable energy investments in developing countries.

    We must work to strengthen the health of Africa’s public finances, and tackle unsustainable debt burdens that are crowding out essential public investments.

    The fourth conference on Finance for Development that will take place in July to underpin the needs for long-term concessional finance and the 1.3 trillion roadmap, agreed in Baku, that needs to be delivered by COP 30 in Brazil must provide investments to scale up, among others, the energy transition.

    Third, enhancing transparent international cooperation.  

    International investments and cross-border partnerships hold the key to delivering electricity projects at a massive scale.

    Institutions must be strengthened to operate in complex regulatory environments, with multiple actors across jurisdictions.

    Public private partnerships need to be subject to stable and transparent public procurement rules throughout the whole project cycle, rules that prioritize long term sustainability and allow for mutually beneficial contractual relationships.

    Transparency and accountability should be a hallmark of Mission 300, and set a new standard for cooperation across the continent.

    Excellencies,

    As we start the 5-year countdown to delivering on the Sustainable Development Goals, and mark the tenth-year anniversary of the Paris Agreement, let us work together to illuminate the lives of millions, power the industries of tomorrow, and ensure that no one is left behind in the race to deliver universal clean energy, climate resilience, and economic prosperity.

    Thank you. 

    MIL OSI United Nations News –

    January 29, 2025
  • MIL-OSI Security: Former Deputy Sheriff And DEA Task Force Officer Sentenced To More Than 17 Years In Federal Prison For Conspiring To Distribute Narcotics, Defrauding The United States, And Tax Evasion

    Source: Office of United States Attorneys

    Jacksonville, Florida – United States District Judge Wendy W. Berger today sentenced James Darrell Hickox (38, Callahan) to 17 years and 6 months in federal prison for multiple federal offenses including conspiring to distribute narcotics, conspiring to defraud the United States, and tax evasion. The court also ordered Hickox to forfeit or abandon the money, firearms, and ammunition involved in these offenses. Hickox pleaded guilty on May 15, 2024.

    According to court documents, while employed as a deputy with the Nassau County Sheriff’s and designated Task Force Officer with the Drug Enforcement Administration, Hickox and a co-conspirator engaged in extensive corrupt activity from 2017 – 2023. These acts included the theft of money and illegal drugs that were seized as evidence during criminal investigations; providing illegal drugs (including fentanyl and cocaine) to others to distribute on his behalf; and hiding from the Internal Revenue Service (IRS) more than $420,000 in cash he had received because of his criminal activities. Hickox and his co-conspirator stole more than 1,000 pounds of marijuana from evidence and provided the drugs to others to sell on their behalf. They had covered up the theft by submitting falsified paperwork showing that the marijuana had been destroyed. Similarly, they stole a kilogram of cocaine from evidence and then gave it to a drug dealer to sell for them.

    When Hickox’s residence was searched pursuant to a federal search warrant on March 10, 2023, agents found approximately 263 grams of a powder containing fentanyl, as well as cocaine. Hickox intended to distribute these substances. Agents also found a rifle that Hickox had illegally modified to function as a machinegun, as well as four additional firearms that had been seized during law enforcement investigations and should have been in evidence or lawfully destroyed. Hickox had drilled out and obliterated the serial number of one of these firearms. The agents also located more than $195,000 in cash proceeds from Hickox’s illicit activities. A search of Hickox’s workspace at the Nassau County Sheriff’s Office revealed another 260 pills containing methamphetamine.

    “Law enforcement officers who operate as though they are above the law betray the badge and the citizens they swore to protect,” said FBI Jacksonville Special Agent in Charge Kristin Rehler. “This case exemplifies the FBI’s commitment to holding public servants accountable if they violate the very laws they promised to uphold.”

    “He betrayed the oath he took to become a police officer and lost his career. He also let down his co-workers and our community,” said Nassau County Sheriff Bill Leeper. “Its law enforcement officers who do stupid things like this that erodes the confidence and trust in our profession by our citizens. His poor judgement and criminal behavior should not reflect negatively on all the good men and women at NCSO who go out every day and do it the right way to keep our citizens safe.”

    “As a sworn law enforcement officer, Hickox took an oath to uphold the law,” said Ron Loecker, Special Agent in Charge of IRS-Criminal Investigation’s Tampa Field Office. “Instead, he turned his back on that oath and profited from the very crimes he was tasked with investigating.  We commend our fellow law enforcement partners for their great work coming together to put a stop to this illegal betrayal of public trust. We will continue to investigate allegations of public corruption and follow the money to prosecute any individuals that abuse their position of trust for personal gain.”

    This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation, with assistance from U.S. Customs and Border Protection. It was prosecuted by Assistant United States Attorney William S. Hamilton. The United States Attorney’s Office, the Federal Bureau of Investigation, the Internal Revenue Service–Criminal Investigation, and United States Customs and Border Protection wish to thank the Florida Highway Patrol, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nassau County Sheriff’s Office for their cooperation during this investigation.

    MIL Security OSI –

    January 29, 2025
  • MIL-OSI: Maris-Tech Announces First Customer Conference: Edge of Tomorrow – Video & AI at the Frontier of Defense Innovation

    Source: GlobeNewswire (MIL-OSI)

    Join industry leaders and innovators on February 27, 2025 for a day of industry insights and networking opportunities

    Rehovot, Israel, Jan. 28, 2025 (GLOBE NEWSWIRE) — Maris-Tech Ltd. (Nasdaq: MTEK, MTEKW) (“Maris-Tech” or the “Company”), a global leader in video and artificial intelligence (“AI”) based edge computing technology, is thrilled to announce its first annual customer conference, Edge of Tomorrow – Video & AI at the Frontier of Defense Innovation. This exclusive event will place on February 27, 2025, in Rishon LeZion, Israel, and will gather industry professionals, thought leaders and collaborators to explore cutting-edge developments in edge computing and its central role in defense operations.

    Attendees will gain valuable insights into the future of video and AI acceleration, with a sharp focus on how this innovation is reshaping defense operations, enabling faster decision-making and independent functionality in challenging environments.

    The conference agenda features keynote presentations by renowned guest speakers, in-depth technical sessions, and live product demonstrations during session breaks. Attendees will also have the chance to network with peers, engage with Maris-Tech’s expert team, and gain hands-on experience with the Company’s innovative solutions.

    “We are very excited to present our first customer conference,” said Israel Bar, Chief Executive Officer of Maris-Tech. “It’s an honor to host some of the most influential guest speakers in our field and to welcome our valued customers and partners. This event will represent a unique opportunity to foster collaboration and share knowledge about the cutting-edge technologies driving the future of defense innovation.”

    For more information, to view the agenda, and to register, visit the event’s official webpage: https://maris-tech.forms-wizard.co/users/new.

    About Maris-Tech Ltd.

    Maris-Tech is a global leader in video and AI-based edge computing technology, pioneering intelligent video transmission solutions that conquer complex encoding-decoding challenges. Our miniature, lightweight, and low-power products deliver high-performance capabilities including raw data processing, seamless transfer, advanced image processing, and AI-driven analytics. Founded by Israel technology sector veterans, Maris-Tech serves leading manufacturers worldwide in defense, aerospace, Intelligence gathering, homeland security (HLS), and communication industries worldwide. We’re pushing the boundaries of video transmission and edge computing, driving innovation in mission-critical applications across commercial and defense sectors.

    For more information, visit https://www.maris-tech.com/

    Forward-Looking Statement Disclaimer

    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect”,” “may”, “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate” or other comparable terms. For example, the Company is  using forward-looking statements when it is discussing the conference and the Company’s expectation for the benefits of the conference and anticipated opportunities to foster collaboration and share knowledge about the cutting-edge technologies driving the future of defense innovation; and the benefits and advantages of video and AI acceleration. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to successfully market our products and services, including in the United States; the acceptance of our products and services by customers; our continued ability to pay operating costs and ability to meet demand for our products and services; the amount and nature of competition from other security and telecom products and services; the effects of changes in the cybersecurity and telecom markets; our ability to successfully develop new products and services; our success establishing and maintaining collaborative, strategic alliance agreements, licensing and supplier arrangements; our ability to comply with applicable regulations; and the other risks and uncertainties described in the Annual Report on Form 20-F for the year ended December 31, 2023, filed with the SEC on March 21, 2024, and our other filings with the SEC. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

    Investor Relations:

    Nir Bussy, CFO
    Tel: +972-72-2424022
    Nir@maris-tech.com

    The MIL Network –

    January 29, 2025
  • MIL-OSI: First Financial Northwest, Inc. Reports Net Income of $1.2 Million or $0.13 per Diluted Share for the Fourth Quarter and $1.1 Million or $0.12 per Diluted Share for the Year Ended December 31, 2024

    Source: GlobeNewswire (MIL-OSI)

    RENTON, Wash., Jan. 28, 2025 (GLOBE NEWSWIRE) — First Financial Northwest, Inc. (the “Company”) (NASDAQ GS: FFNW), the holding company for First Financial Northwest Bank (the “Bank”), today reported net income for the quarter ended December 31, 2024, of $1.2 million, or $0.13 per diluted share, compared to a net loss of $608,000, or $(0.07) per diluted share, for the quarter ended September 30, 2024, and net income of $1.2 million, or $0.13 per diluted share, for the quarter ended December 31, 2023. For the twelve months ended December 31, 2024, the Company reported net income of $1.1 million, or $0.12 per diluted share, compared to net income of $6.3 million, or $0.69 per diluted share, for the year ended December 31, 2023.

    The improved performance in the current quarter compared to the quarter ended September 30, 2024, was due primarily to a $1.3 million recapture of provision for credit losses. This compares to a provision for credit losses of $1.6 million in the prior quarter that mainly related to two participation loans to a single borrowing entity totaling approximately $6.0 million, where we were not the lead lender. During the quarter ended December 31, 2024, one of the two loans was paid in full and the borrower paid down the balance on the other loan using proceeds from the sale of another property. Subsequently, we received an updated appraisal of the property securing the remaining loan that confirmed a value sufficient to support the recapture of the previously allocated specific reserve for this loan.

    “I am pleased to report that our net loans receivable increased $14.0 million in the quarter as our lending teams continue to focus on growing our loan portfolio. In addition, our credit quality remained strong, with only $842,000 in nonaccrual loans, representing 0.07% of our $1.16 billion total loan portfolio,” stated Joseph W. Kiley III, President and CEO.

    “We continue to prepare for the closing of the sale of the Bank to Global Federal Credit Union (“Global”), as we await the final required approval from Global’s primary regulator, the National Credit Union Administration, before we can proceed towards closing the transaction,” concluded Kiley.

    Highlights for the quarter and year ended December 31, 2024:

    • Net loans receivable totaled $1.14 billion at December 31, 2024, compared to $1.13 billion at September 30, 2024, and $1.18 billion at December 31, 2023.
    • Book value per common share was $17.50 at December 31, 2024, compared to $17.39 at September 30, 2024, and $17.61 at December 31, 2023.
    • The Bank’s Tier 1 leverage and total capital ratios were 11.2% and 16.7% at December 31, 2024, compared to 10.9% and 16.7% at September 30, 2024, and 10.2% and 16.2% at December 31, 2023, respectively.
    • Credit quality remained strong with nonaccrual loans totaling $842,000, or 0.07% of total loans at December 31, 2024.
    • A $1.3 million recapture of provision for credit losses was recorded in the current quarter, compared to a $1.6 million and no provision for credit losses recorded during the prior quarter and the same quarter a year ago, respectively. We recorded a $50,000 recapture of provision for credit losses for the year ended December 31, 2024, compared to a $208,000 recapture of provision for credit losses for the year ended December 31, 2023.

    Deposits decreased $36.0 million to $1.13 billion at December 31, 2024, compared to $1.17 billion at September 30, 2024, and decreased $62.7 million compared to $1.19 billion at December 31, 2023. The decrease in deposits at December 31, 2024, compared to September 30, 2024, was due primarily to a $19.7 million decrease in noninterest-bearing demand deposits and a $15.5 million decrease in money market deposits. The decrease in deposits at December 31, 2024, from December 31, 2023, reflects declines in all deposit categories except for retail certificates of deposit which increased $91.8 million.

    Federal Home Loan Bank (“FHLB”) advances totaled $110.0 million at December 31, 2024, compared to $100.0 million at September 30, 2024, and $125.0 million at December 31, 2023. Of the total FHLB advances at December 31, 2024, $100.0 million were tied to cash flow hedge agreements under which the Bank pays a fixed rate and receives a variable rate in return to assist in the Bank’s interest rate risk management efforts. These cash flow hedge agreements had a weighted average remaining term of 27.8 months and a weighted average fixed interest rate of 1.93% as of December 31, 2024. The average cost of borrowings was 2.35% for the quarter ended December 31, 2024, compared to 3.19% for the quarter ended September 30, 2024, and 2.40% for the quarter ended December 31, 2023.

    The following table presents a breakdown of our total deposits (unaudited):

      Dec 31,
    2024
      Sep 30,
    2024
      Dec 31,
    2023
      Three
    Month
    Change
      One
    Year
    Change
    Deposits: (Dollars in thousands)
    Noninterest-bearing demand $ 80,772   $ 100,466   $ 100,899   $ (19,694 )   $ (20,127 )
    Interest-bearing demand   56,957     55,506     56,968     1,451       (11 )
    Savings   16,277     17,031     18,886     (754 )     (2,609 )
    Money market   480,520     495,978     529,411     (15,458 )     (48,891 )
    Certificates of deposit, retail   448,974     447,474     357,153     1,500       91,821  
    Brokered deposits   47,900     50,900     130,790     (3,000 )     (82,890 )
    Total deposits $ 1,131,400   $ 1,167,355   $ 1,194,107   $ (35,955 )   $ (62,707 )

    The following tables present an analysis of total deposits by branch office (unaudited):

    December 31, 2024
      Noninterest-
    bearing
    demand
    Interest-
    bearing
    demand
    Savings Money
    market
    Certificates
    of deposit,
    retail
    Brokered
    deposits
    Total
      (Dollars in thousands)
    King County              
    Renton $ 26,242 $ 14,786 $ 10,197 $ 284,670 $ 309,858 $ – $ 645,753
    Landing   3,245   1,359   170   7,958   14,965   –   27,697
    Woodinville   1,738   3,168   620   8,834   11,511   –   25,871
    Bothell   2,792   930   408   1,421   6,762   –   12,313
    Crossroads   11,075   2,762   86   29,208   18,772   –   61,903
    Kent   3,766   4,873   40   18,673   8,471   –   35,823
    Kirkland   5,524   1,924   208   11,574   1,855   –   21,085
    Issaquah   1,244   238   13   2,298   6,562   –   10,355
    Total King County   55,626   30,040   11,742   364,636   378,756   –   840,800
    Snohomish County              
    Mill Creek   3,184   3,496   342   16,135   12,487   –   35,644
    Edmonds   7,316   8,542   338   16,482   13,003   –   45,681
    Clearview   4,909   5,653   1,494   17,934   13,778   –   43,768
    Lake Stevens   3,633   5,946   1,314   24,571   17,004   –   52,468
    Smokey Point   2,544   1,800   1,032   36,950   9,619   –   51,945
    Total Snohomish County   21,586   25,437   4,520   112,072   65,891   –   229,506
    Pierce County              
    University Place   1,837   54   1   2,113   2,122   –   6,127
    Gig Harbor   1,723   1,426   14   1,699   2,205   –   7,067
    Total Pierce County   3,560   1,480   15   3,812   4,327   –   13,194
                   
    Brokered deposits   –   –   –   –   –   47,900   47,900
                   
    Total deposits $ 80,772 $          56,957 $         16,277 $      480,520 $       448,974 $         47,900 $    1,131,400
    September 30, 2024
      Noninterest-
    bearing
    demand
    Interest-
    bearing
    demand
    Savings Money
    market
    Certificates
    of deposit,
    retail
    Brokered
    deposits
    Total
      (Dollars in thousands)
    King County               
    Renton $ 29,388 $ 14,153 $ 10,654 $ 305,836 $ 315,721 $ – $ 675,752
    Landing   3,442   1,660   237   8,348   12,733   –   26,420
    Woodinville   1,968   2,234   959   8,852   11,522   –   25,535
    Bothell   2,965   1,151   401   1,536   5,918   –   11,971
    Crossroads   14,770   2,039   107   31,665   18,136   –   66,717
    Kent   5,417   10,502   44   16,053   8,562   –   40,578
    Kirkland   10,967   1,890   206   11,243   2,240   –   26,546
    Issaquah   1,186   294   18   2,547   6,580   –   10,625
    Total King County   70,103   33,923   12,626   386,080   381,412   –   884,144
    Snohomish County              
    Mill Creek   3,990   2,171   384   14,628   10,312   –   31,485
    Edmonds   9,254   6,831   330   18,549   13,281   –   48,245
    Clearview   5,587   5,242   1,462   21,206   12,251   –   45,748
    Lake Stevens   3,970   4,282   1,244   23,257   15,571   –   48,324
    Smokey Point   2,994   1,664   969   29,353   11,387   –   46,367
    Total Snohomish County   25,795   20,190   4,389   106,993   62,802   –   220,169
    Pierce County              
    University Place   2,940   53   4   1,848   1,458   –   6,303
    Gig Harbor   1,628   1,340   12   1,057   1,802   –   5,839
    Total Pierce County   4,568   1,393   16   2,905   3,260   –   12,142
                   
    Brokered deposits   –   –   –   –   –   50,900   50,900
                   
    Total deposits $ 100,466 $ 55,506 $ 17,031 $ 495,978 $ 447,474 $ 50,900 $ 1,167,355
     

    Net loans receivable totaled $1.14 billion at December 31, 2024, compared to $1.13 billion at September 30, 2024, and $1.18 billion at December 31, 2023. The increase in the current quarter compared to the quarter ended September 30, 2024, was due to growth in non-residential commercial real estate, construction/land, consumer and one-to-four family residential loans, partially offset by declines in multifamily and business lending. The average balance of net loans receivable totaled $1.13 billion for both the quarters ended December 31, 2024, and September 30, 2024, compared to $1.17 billion for the quarter ended December 31, 2023. For the year ended December 31, 2024, the average balance of net loans receivable was $1.14 billion, compared to $1.17 billion for the year ended December 31, 2023.

    The allowance for credit losses (“ACL”) represented 1.30% of total loans receivable at December 31, 2024, compared to 1.42% of total loans receivable at September 30, 2024, and 1.28% at December 31, 2023. The change in the ACL at December 31, 2024, compared to September 30, 2024, related primarily to activity on the single lending relationship discussed above.

    Nonaccrual loans totaled $842,000 at December 31, 2024, compared to $853,000 at September 30, 2024, and $220,000 at December 31, 2023. There was no other real estate owned at December 31, 2024, September 30, 2024, or December 31, 2023.

    Net interest income totaled $8.4 million for the quarter ended December 31, 2024, compared to $8.5 million for the quarter ended September 30, 2024, and $9.3 million for the quarter ended December 31, 2023. The decrease in the current quarter compared to the quarter ended September 30, 2024, was primarily due to declines in interest from earning assets, partially offset by declines in interest expense. For the year ended December 31, 2024, net interest income totaled $34.8 million, compared to $40.5 million for the year ended December 31, 2023, as total interest expense increased by $5.0 million and total interest income declined by $800,000.

    Total interest income decreased $419,000 to $19.0 million for the quarter ended December 31, 2024, compared to $19.4 million for the quarter ended September 30, 2024, and decreased $1.3 million compared to $20.3 million for the quarter ended December 31, 2023. The decrease in total interest income during the current quarter compared to the prior quarter was primarily due to a $250,000 or 29.0% decline in interest income earned on interest-earning deposits held with banks. This decline resulted from a 54 basis point decrease in the average yield earned on these deposits, coupled with a $13.6 million reduction in their average balance. Additionally, interest income on loans, including fees, declined by $146,000 or 0.9%, primarily due to a $2.5 million decrease in the average balance of loans and, to a lesser extent, a four basis point decrease in the yield earned on loans. The decrease in total interest income during the current quarter compared to the comparable quarter in 2023 was primarily due to declines in interest income on loans, including fees, of $631,000, investments of $449,000, and interest-earning deposits with banks of $267,000, partially offset by an increase in dividends on FHLB stock of $56,000.

    Yield on loans, the largest component of our interest-earning assets, declined to 5.82% during the recent quarter, compared to 5.86% and 5.83% for the quarters ended September 30, 2024, and December 31, 2023, respectively. The yield on investment securities for the current quarter was 4.29%, down slightly from 4.30% last quarter and up from 4.11% a year ago.

    Total interest expense was $10.6 million for the quarter ended December 31, 2024, down from $11.0 million for both quarters ended September 30, 2024, and December 31, 2023. The decrease from the quarter ended September 30, 2024, was due to lower interest expense related to FHLB advances and other borrowings, which declined due to a decline in the average balance of FHLB advances and other borrowings, partially offset by higher interest expense on deposits driven by an increase in the average balance of interest-bearing deposits. The decrease from the quarter ended December 31, 2023, was due to lower interest expense on deposits and FHLB advances and other borrowings, primarily as a result of lower average balances of these liabilities.

    Net interest margin was 2.50% for the quarter ended December 31, 2024, compared to 2.46% for the quarter ended September 30, 2024, and 2.54% for the quarter ended December 31, 2023. The increase in the net interest margin for the quarter ended December 31, 2024, compared to the prior quarter was primarily due to a decline in the average balance of total interest-earning assets, as net interest income was relatively unchanged during the periods. The decrease in the net interest margin for the quarter ended December 31, 2024, compared to the same quarter a year ago was primarily due to a decline in net interest income, which was partially offset by a decline in the average balance of total interest-earning assets. The net interest margin for the month of December 2024 was 2.55%.

    Noninterest income for the quarter ended December 31, 2024, totaled $658,000, down from $677,000 for the quarter ended September 30, 2024, and up from $633,000 for the quarter ended December 31, 2023. The decrease compared to the quarter ended September 30, 2024, was primarily due to lower loan and deposit related fees and BOLI income, partially offset by an increase in wealth management revenue. Noninterest income remained nearly flat at $2.8 million for both the years ended December 31, 2024, and December 31, 2023, as increases in BOLI income, wealth management revenue and loan related fees in the current year were nearly entirely offset by decreases in deposit related fees and other noninterest income.

    Noninterest expense totaled $8.9 million for the quarter ended December 31, 2024, compared to $8.5 million for the quarter ended September 30, 2024, and $8.4 million for the quarter ended December 31, 2023. The increase from the quarter ended September 30, 2024, was primarily due to a $860,000 increase in salaries and employee benefits due to 2025 merit increases implemented in December 2024, as well as year-end accruals related to incentive compensation, partially offset by decreases in nearly all other categories, most notably professional fees and other general and administrative expenses. Incentive compensation increased due to the project that modified certain loans that would have otherwise been ineligible for Global Federal Credit Union to hold on their balance sheet. The increase compared to the quarter ended December 31, 2023, was primarily due to a $644,000 increase in salaries and employee benefits and an $87,000 increase in data processing expenses, partially offset by decreases across other expense categories. Noninterest expense totaled $36.7 million for the year ended December 31, 2024, compared to $35.7 million for the year ended December 31, 2023. The year-over-year increase was primarily due to an increase in professional fees, data processing and salaries and employee benefits, partially offset by lower marketing and other general and administrative expenses and regulatory assessments.

    First Financial Northwest, Inc. is the parent company of First Financial Northwest Bank; an FDIC insured Washington State-chartered commercial bank headquartered in Renton, Washington, serving the Puget Sound Region through 15 full-service banking offices. For additional information about us, please visit our website at ffnwb.com and click on the “Investor Relations” link at the bottom of the page.

    Forward-looking statements:

    When used in this press release and in other documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases “believe,” “will,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts but instead represent management’s current expectations and forecasts regarding future events many of which are inherently uncertain and outside of our control. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions and statements about, among other things, our pending transaction with Global Federal Credit Union (“Global”) whereby Global, pursuant to the definitive purchase and assumption agreement (the “P&A Agreement”), will acquire substantially all of the assets and assume substantially all of the liabilities of the Bank, expectations of the business environment in which we operate, projections of future performance or financial items, perceived opportunities in the market, potential future credit experience, and statements regarding our mission and vision. These forward-looking statements are based on current management expectations and may, therefore, involve risks and uncertainties. Actual results may differ, possibly materially from those currently expected or projected in these forward-looking statements made by, or on behalf of, us and could negatively affect our operating and stock performance. Factors that could cause our actual results to differ materially from those described in the forward-looking statements, include, but are not limited to, the following: the occurrence of any event, change or other circumstances that could give rise to the right of one or all of the parties to terminate the P&A Agreement; delays in completing the P&A Agreement; the failure to obtain necessary regulatory approvals or to satisfy any of the other conditions to the Global transaction, including the P&A Agreement, on a timely basis or at all; delays or other circumstances arising from the dissolution of the Bank and the Company following completion of the P&A Agreement; diversion of management’s attention from ongoing business operations and opportunities during the pending Global transaction; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement of the Global transaction; 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 recession or slowed economic growth; changes in the interest rate environment, including increases or decreases in the Federal Reserve benchmark rate and duration at which such interest rate levels are maintained, which could adversely affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and the current and future monetary policies of the Federal Reserve in response thereto; the effects of any federal government shutdown; increased competitive pressures, including repricing and competitors’ pricing initiatives, and their impact on our market position, loan, and deposit products; legislative and regulatory changes; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; 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; effects of critical accounting policies and judgments, including the use of estimates in determining the fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; the potential effects of new tariffs or changes to existing trade policies that could affect economic activity or specific industry sectors; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events on our business; and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other reports filed with or furnished to the Securities and Exchange Commission – that are available on our website at www.ffnwb.com and on the SEC’s website at www.sec.gov.

    Any of the forward-looking statements that we make in this Press Release and in the other public statements are based upon management’s beliefs and assumptions at the time they are made and may turn out to be wrong because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

    FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
    Consolidated Balance Sheets
    (Dollars in thousands)
    (Unaudited)
    Assets Dec 31,
    2024
      Sep 30,
    2024
      Dec 31,
    2023
      Three
    Month
    Change
      One
    Year
    Change
                       
    Cash on hand and in banks $ 9,535     $ 8,423     $ 8,391     13.2 %   13.6 %
    Interest-earning deposits with banks   36,182       72,884       22,138     (50.4 )   63.4  
    Investments available-for-sale, at fair value   151,642       156,609       207,915     (3.2 )   (27.1 )
    Investments held-to-maturity, at amortized cost   2,468       2,462       2,456     0.2     0.5  
    Loans receivable, net of allowance of $15,066, $16,265 and $15,306, respectively   1,140,186       1,126,146       1,175,925     1.2     (3.0 )
    Federal Home Loan Bank (“FHLB”) stock, at cost   5,853       5,403       6,527     8.3     (10.3 )
    Accrued interest receivable   6,108       6,638       7,359     (8.0 )   (17.0 )
    Deferred tax assets, net   2,582       2,690       2,648     (4.0 )   (2.5 )
    Premises and equipment, net   18,166       18,584       19,667     (2.2 )   (7.6 )
    Bank owned life insurance (“BOLI”), net   38,950       38,661       37,653     0.7     3.4  
    Prepaid expenses and other assets   9,676       8,898       10,478     8.7     (7.7 )
    Right of use asset (“ROU”), net   2,357       2,473       2,617     (4.7 )   (9.9 )
    Goodwill   889       889       889     0.0     0.0  
    Core deposit intangible, net   295       326       419     (9.5 )   (29.6 )
    Total assets $ 1,424,889     $ 1,451,086     $ 1,505,082     (1.8 )   (5.3 )
                       
    Liabilities and Stockholders’ Equity                  
                       
    Deposits                  
    Noninterest-bearing deposits $ 80,772     $ 100,466     $ 100,899     (19.6 )   (19.9 )
    Interest-bearing deposits   1,050,628       1,066,889       1,093,208     (1.5 )   (3.9 )
    Total deposits   1,131,400       1,167,355       1,194,107     (3.1 )   (5.3 )
    FHLB advances   110,000       100,000       125,000     10.0     (12.0 )
    Advance payments from borrowers for taxes and insurance   2,873       5,211       2,952     (44.9 )   (2.7 )
    Lease liability, net   2,550       2,673       2,806     (4.6 )   (9.1 )
    Accrued interest payable   526       294       2,739     78.9     (80.8 )
    Other liabilities   15,985       15,340       15,818     4.2     1.1  
    Total liabilities   1,263,334       1,290,873       1,343,422     (2.1 )   (6.0 )
                       
    Commitments and contingencies                  
                       
    Stockholders’ Equity                  
    Preferred stock, $0.01 par value; authorized 10,000,000 shares; no shares issued or outstanding   –       –       –     n/a     n/a  
    Common stock, $0.01 par value; authorized 90,000,000 shares; issued and outstanding 9,230,010 shares at December 31, 2024, 9,213,969 shares at September 30, 2024, and 9,179,510 shares at December 31, 2023   93       92       92     1.1     1.1  
    Additional paid-in capital   72,823       72,916       73,035     (0.1 )   (0.3 )
    Retained earnings   94,892       93,692       96,206     1.3     (1.4 )
    Accumulated other comprehensive loss, net of tax   (6,253 )     (6,487 )     (7,673 )   (3.6 )   (18.5 )
    Total stockholders’ equity   161,555       160,213       161,660     0.8     (0.1 )
    Total liabilities and stockholders’ equity $ 1,424,889     $ 1,451,086     $ 1,505,082     (1.8 )%   (5.3 )%
     
    FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
    Consolidated Income Statements
    (Dollars in thousands, except per share data)
    (Unaudited)
      Quarter Ended        
      Dec 31,
    2024
      Sep 30,
    2024
      Dec 31,
    2023
      Three
    Month
    Change
      One
    Year
    Change
    Interest income                  
    Loans, including fees $ 16,512     $ 16,658     $ 17,143   (0.9 )%   (3.7 )%
    Investments   1,694       1,744       2,143   (2.9 )   (21.0 )
    Interest-earning deposits with banks   613       863       880   (29.0 )   (30.3 )
    Dividends on FHLB Stock   177       150       121   18.0     46.3  
    Total interest income   18,996       19,415       20,287   (2.2 )   (6.4 )
    Interest expense                  
    Deposits   9,956       9,748       10,281   2.1     (3.2 )
    FHLB advances and other borrowings   600       1,213       731   (50.5 )   (17.9 )
    Total interest expense   10,556       10,961       11,012   (3.7 )   (4.1 )
    Net interest income   8,440       8,454       9,275   (0.2 )   (9.0 )
    (Recapture of provision) provision for credit losses   (1,250 )     1,575       –   (179.4 )   n/a  
    Net interest income after (recapture of provision) provision for credit losses   9,690       6,879       9,275   40.9     4.5  
                       
    Noninterest income                  
    BOLI income   289       295       255   (2.0 )   13.3  
    Wealth management revenue   88       42       60   109.5     46.7  
    Deposit related fees   226       236       234   (4.2 )   (3.4 )
    Loan related fees   44       96       60   (54.2 )   (26.7 )
    Other   11       8       24   37.5     (54.2 )
    Total noninterest income   658       677       633   (2.8 )   3.9  
                       
    Noninterest expense                  
    Salaries and employee benefits   5,466       4,606       4,822   18.7     13.4  
    Occupancy and equipment   1,154       1,183       1,231   (2.5 )   (6.3 )
    Professional fees   377       585       431   (35.6 )   (12.5 )
    Data processing   805       838       718   (3.9 )   12.1  
    Regulatory assessments   160       165       196   (3.0 )   (18.4 )
    Insurance and bond premiums   114       113       113   0.9     0.9  
    Marketing   24       46       70   (47.8 )   (65.7 )
    Other general and administrative   834       952       858   (12.4 )   (2.8 )
    Total noninterest expense   8,934       8,488       8,439   5.3     5.9  
    Income before federal income tax provision (benefit)   1,414       (932 )     1,469   (251.7 )   (3.7 )
    Federal income tax provision (benefit)   214       (324 )     275   (166.0 )   (22.2 )
    Net income (loss) $ 1,200     $ (608 )   $ 1,194   (297.4 )%   0.5 %
                       
    Basic earnings (loss) per share $ 0.13     $ (0.07 )   $ 0.13        
    Diluted earnings (loss) per share $ 0.13     $ (0.07 )   $ 0.13        
    Weighted average number of common shares outstanding   9,220,593       9,190,146       9,151,892        
    Weighted average number of diluted shares outstanding   9,238,565       9,190,146       9,176,724        
                                 
    FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
    Consolidated Income Statements
    (Dollars in thousands, except per share data)
    (Unaudited)
      Year Ended December 31,    
        2024       2023     One Year
    Change
    Interest income          
    Loans, including fees $ 66,941     $ 66,938     0.0 %
    Investments   7,388       8,474     (12.8 )
    Interest-earning deposits with banks   2,444       2,261     8.1  
    Dividends on FHLB Stock   597       485     23.1  
    Total interest income   77,370       78,158     (1.0 )
    Interest expense          
    Deposits   39,117       34,407     13.7  
    FHLB advances and other borrowings   3,490       3,208     8.8  
    Total interest expense   42,607       37,615     13.3  
    Net interest income   34,763       40,543     (14.3 )
    Recapture of provision for credit losses   (50 )     (208 )   (76.0 )
    Net interest income after recapture of provision for credit losses   34,813       40,751     (14.6 )
               
    Noninterest income          
    BOLI   1,245       1,081     15.2  
    Wealth management revenue   279       253     10.3  
    Deposit accounts related fees   923       956     (3.5 )
    Loan related fees   296       275     7.6  
    Other   53       208     (74.5 )
    Total noninterest income   2,796       2,773     0.8  
               
    Noninterest expense          
    Salaries and employee benefits   20,652       20,366     1.4  
    Occupancy and equipment   4,789       4,748     0.9  
    Professional fees   3,011       2,288     31.6  
    Data processing   3,285       2,857     15.0  
    Regulatory assessments   662       763     (13.2 )
    Insurance and bond premiums   477       468     1.9  
    Marketing   179       343     (47.8 )
    Other general and administrative   3,638       3,833     (5.1 )
    Total noninterest expense   36,693       35,666     2.9  
    Income before federal income tax (benefit) provision   916       7,858     (88.3 )
    Federal income tax (benefit) provision   (156 )     1,553     (110.0 )
    Net income $ 1,072     $ 6,305     (83.0 )%
               
    Basic earnings per share $ 0.12     $ 0.69      
    Diluted earnings per share $ 0.12     $ 0.69      
    Weighted average number of common shares outstanding   9,183,900       9,126,209      
    Weighted average number of diluted shares outstanding   9,238,016       9,152,617      
                       

    The following table presents a breakdown of the loan portfolio (unaudited):

      December 31, 2024 September 30, 2024 December 31, 2023
      Amount   Percent   Amount   Percent   Amount   Percent
      (Dollars in thousands)
    Commercial real estate:                      
    Residential:                      
    Multifamily $ 126,303     10.9 %   $ 132,811     11.6 %   $ 138,149     11.6 %
    Total multifamily residential   126,303     10.9       132,811     11.6       138,149     11.6  
                           
    Non-residential:                      
    Retail   110,787     9.6       118,840     10.4       124,172     10.4  
    Office   73,306     6.3       73,778     6.5       72,778     6.1  
    Hotel / motel   72,434     6.3       54,716     4.8       63,597     5.3  
    Storage   32,229     2.8       32,443     2.8       33,033     2.8  
    Mobile home park   22,701     2.0       22,443     2.0       21,701     1.8  
    Warehouse   23,363     2.0       18,743     1.6       19,218     1.6  
    Nursing Home   9,713     0.8       11,407     1.0       11,610     1.0  
    Other non-residential   29,865     2.5       30,719     2.7       31,750     2.6  
    Total non-residential   374,398     32.3       363,089     31.8       377,859     31.6  
                           
    Construction/land:                      
    One-to-four family residential   49,674     4.3       42,846     3.8       47,149     4.0  
    Multifamily   7,884     0.7       7,227     0.6       4,004     0.3  
    Land development   9,582     0.8       10,148     0.8       9,771     0.8  
    Total construction/land   67,140     5.8       60,221     5.2       60,924     5.1  
                           
    One-to-four family residential:                      
    Permanent owner occupied   284,650     24.7       279,744     24.5       284,471     23.9  
    Permanent non-owner occupied   217,420     18.8       221,127     19.4       228,752     19.2  
    Total one-to-four family residential   502,070     43.5       500,871     43.9       513,223     43.1  
                           
    Business                      
    Aircraft   –     0.0       –     0.0       1,945     0.1  
    Small Business Administration (“SBA”)   1,729     0.2       1,745     0.2       1,794     0.3  
    Paycheck Protection Plan (“PPP”)   159     0.0       238     0.0       473     0.0  
    Other business   10,247     0.9       12,416     1.1       24,869     2.1  
    Total business   12,135     1.1       14,399     1.3       29,081     2.5  
                           
    Consumer                      
    Classic, collectible and other auto   59,580     5.2       58,085     5.1       58,618     5.0  
    Other consumer   13,626     1.2       12,935     1.1       13,377     1.1  
    Total consumer   73,206     6.4       71,020     6.2       71,995     6.1  
    Total loans   1,155,252     100.0 %     1,142,411     100.0 %     1,191,231     100.0 %
    Less:                      
    ACL   15,066           16,265           15,306      
    Loans receivable, net $ 1,140,186         $ 1,126,146         $ 1,175,925      
                           
    Concentrations of credit: (1)                      
    Construction loans as % of total capital   40.5 %         36.8 %         38.3 %      
    Total non-owner occupied commercial
    real estate as % of total capital
      300.8 %         296.2 %         316.8 %    

    (1) Concentrations of credit percentages are for First Financial Northwest Bank only using classifications in accordance with FDIC regulatory guidelines.

    FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
    Key Financial Measures
    (Unaudited)
      At or For the Quarter Ended
      Dec 31,   Sep 30,   Jun 30,   Mar 31,   Dec 31,
        2024       2024       2024       2024       2023  
      (Dollars in thousands, except per share data)
    Performance Ratios: (1)                  
    Return on assets   0.33 %     (0.17 )%     0.43 %     (0.29 )%     0.31 %
    Return on equity   2.96       (1.50 )     3.88       (2.67 )     2.97  
    Dividend payout ratio   0.00       0.00       76.47       (108.33 )     100.00  
    Equity-to-assets ratio   11.34       11.04       11.10       10.91       10.74  
    Tangible equity ratio (2)   11.26       10.97       11.02       10.83       10.66  
    Net interest margin   2.50       2.46       2.66       2.55       2.54  
    Average interest-earning assets to average interest-bearing liabilities   116.51       116.46       117.01       116.40       115.84  
    Efficiency ratio   98.20       92.96       82.35       116.97       85.17  
    Noninterest expense as a percent of average total assets   2.49       2.32       2.21       3.05       2.18  
    Book value per common share $ 17.50     $ 17.39     $ 17.51     $ 17.46     $ 17.61  
    Tangible book value per share (2)   17.37       17.26       17.37       17.32       17.47  
                       
    Capital Ratios: (3)                  
    Tier 1 leverage ratio   11.16 %     10.86 %     10.91 %     10.41 %     10.18 %
    Common equity tier 1 capital ratio   15.40       15.43       15.39       14.98       14.90  
    Tier 1 capital ratio   15.40       15.43       15.39       14.98       14.90  
    Total capital ratio   16.65       16.68       16.64       16.24       16.15  
                       
    Asset Quality Ratios: (4)                  
    Nonaccrual loans as a percent of total loans   0.07 %     0.07 %     0.41 %     0.02 %     0.02 %
    Nonaccrual loans as a percent of total assets   0.06       0.06       0.32       0.01       0.01  
    ACL as a percent of total loans   1.30       1.42       1.29       1.30       1.28  
    Net charge-offs to average loans receivable, net   (0.00 )     0.00       0.00       0.00       0.00  
                       
    Allowance for Credit Losses:                  
    ACL – loans                  
    Beginning balance $ 16,265     $ 14,796     $ 14,996     $ 15,306     $ 15,306  
    (Recapture of provision) provision for credit losses   (1,200 )     1,500       (200 )     (300 )     –  
    Charge-offs   –       (31 )     –       (10 )     –  
    Recoveries   1       –       –       –       –  
    Ending balance $ 15,066     $ 16,265     $ 14,796     $ 14,996     $ 15,306  
                       
    Allowance for unfunded commitments                  
    Beginning balance $ 639     $ 564     $ 564     $ 439     $ 439  
    (Recapture of provision) provision for credit losses   (50 )     75       –       125       –  
    Ending balance $ 589     $ 639     $ 564     $ 564     $ 439  
                       
    (Recapture of provision) provision for credit losses                  
    ACL – loans $ (1,200 )   $ 1,500     $ (200 )   $ (300 )   $ –  
    Allowance for unfunded commitments   (50 )     75       –       125       –  
    Total $ (1,250 )   $ 1,575     $ (200 )   $ (175 )   $ –  

    (1) Performance ratios are calculated on an annualized basis.
    (2) Non-GAAP financial measures. Refer to Non-GAAP Financial Measures at the end of this press release for a reconciliation to the nearest GAAP equivalents.
    (3) Capital ratios are for First Financial Northwest Bank only.
    (4) Loans are reported net of undisbursed funds.

    FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
    Key Financial Measures
    (Unaudited)
      At or For the Quarter Ended
      Dec 31,   Sep 30,   Jun 30,   Mar 31,   Dec 31,
        2024       2024       2024       2024       2023  
      (Dollars in thousands)
    Yields and Costs: (1)                  
    Yield on loans   5.82 %     5.86 %     5.93 %     5.88 %     5.83 %
    Yield on investments   4.29       4.30       4.38       4.11       4.11  
    Yield on interest-earning deposits   4.73       5.27       5.25       5.28       5.32  
    Yield on FHLB stock   12.87       7.73       8.63       7.79       7.29  
    Yield on interest-earning assets   5.63 %     5.66 %     5.73 %     5.62 %     5.56 %
                       
    Cost of interest-bearing deposits   3.77 %     3.80 %     3.71 %     3.69 %     3.62 %
    Cost of borrowings   2.35       3.19       2.64       2.65       2.40  
    Cost of interest-bearing liabilities   3.64 %     3.72 %     3.59 %     3.58 %     3.50 %
                       
    Cost of total deposits (2)   3.46 %     3.47 %     3.38 %     3.38 %     3.31 %
    Cost of funds (2)   3.37       3.44       3.30       3.31       3.23  
                       
    Average Balances:                  
    Loans $ 1,129,019     $ 1,131,473     $ 1,139,017     $ 1,160,156     $ 1,167,339  
    Investments   156,975       161,232       173,102       202,106       206,837  
    Interest-earning deposits   51,518       65,149       36,959       37,032       65,680  
    FHLB stock   5,471       7,719       6,714       6,554       6,584  
    Total interest-earning assets $ 1,342,983     $ 1,365,573     $ 1,355,792     $ 1,405,848     $ 1,446,440  
                       
    Interest-bearing deposits $ 1,051,201     $ 1,021,041     $ 1,029,608     $ 1,082,168     $ 1,127,690  
    Borrowings   101,522       151,478       129,126       125,604       120,978  
    Total interest-bearing liabilities   1,152,723       1,172,519       1,158,734       1,207,772       1,248,668  
    Noninterest-bearing deposits   93,331       96,003       101,196       99,173       102,869  
    Total deposits and borrowings $ 1,246,054     $ 1,268,522     $ 1,259,930     $ 1,306,945     $ 1,351,537  
                       
    Average assets $ 1,429,788     $ 1,453,431     $ 1,446,207     $ 1,495,753     $ 1,538,955  
    Average stockholders’ equity   161,093       161,569       161,057       161,823       159,659  

    (1) Yields and costs are annualized.
    (2) Includes noninterest-bearing deposits.
    (3) Includes total borrowings and deposits (including noninterest-bearing deposits).

    FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
    Key Financial Measures
    (Unaudited)
      At or For the Year Ended December 31,
        2024       2023       2022       2021       2020  
          (Dollars in thousands, except per share data)  
    Performance Ratios:                  
    Return on assets   0.07 %     0.41 %     0.91 %     0.86 %     0.63 %
    Return on equity   0.66       3.93       8.34       7.65       5.50  
    Dividend payout ratio   216.67       75.36       32.65       33.59       45.45  
    Equity-to-assets ratio   11.34       10.74       10.67       11.07       11.26  
    Tangible equity ratio (1)   11.26       10.66       10.58       10.97       11.15  
    Net interest margin   2.54       2.82       3.54       3.35       3.15  
    Average interest-earning assets to average interest-bearing liabilities   116.59       116.69       119.18       118.59       115.62  
    Efficiency ratio   97.69       82.34       69.04       68.32       72.39  
    Noninterest expense as a percent of average total assets   2.52       2.33       2.44       2.35       2.39  
    Book value per common share $ 17.50     $ 17.61     $ 17.57     $ 17.30     $ 16.05  
    Tangible book value per share (1)   17.37       17.47       17.41       17.13       15.88  
                       
    Capital Ratios: (2)                  
    Tier 1 leverage ratio   11.16 %     10.18 %     10.31 %     10.34 %     10.29 %
    Common equity tier 1 capital ratio   15.40       14.90       14.37       14.23       14.32  
    Tier 1 capital ratio   15.40       14.90       14.37       14.23       14.32  
    Total capital ratio   16.65       16.15       15.62       15.48       15.57  
                       
    Asset Quality Ratios: (3)                  
    Nonaccrual loans as a percent of total loans   0.07 %     0.02 %     0.02 %     0.00 %     0.19 %
    Nonaccrual loans as a percent of total assets   0.06       0.01       0.01       0.00       0.18  
    ACL as a percent of total loans   1.30       1.28       1.29       1.40       1.36  
    Net charge-offs (recoveries) to average loans receivable, net   0.00       0.00       0.00       (0.02 )     (0.00 )
                       
    ACL – loans                  
    Beginning balance $ 15,306     $ 15,227     $ 15,657     $ 15,174     $ 13,218  
    Beginning balance adjustment from adoption of Topic 326   –       500       –       –       –  
    (Recapture of provision) provision for credit losses   (200 )     (400 )     (400 )     300       1,900  
    Charge-offs   (41 )     (22 )     (37 )     –       (2 )
    Recoveries   1       1       7       183       58  
    Ending balance $ 15,066     $ 15,306     $ 15,227     $ 15,657     $ 15,174  
                       
    Allowance for unfunded commitments                  
    Beginning balance $ 439     $ 247     $ 281     $ 351     $ 428  
    Provision (recapture of provision) for credit losses   150       192       (34 )     (70 )     (77 )
    Ending balance $ 589     $ 439     $ 247     $ 281     $ 351  
                       
    (Recapture of provision) provision for credit losses                  
    ACL – loans $ (200 )   $ (400 )   $ (400 )   $ 300     $ 1,900  
    Allowance for unfunded commitments   150       192       (34 )     (70 )     (77 )
    Total $ (50 )   $ (208 )   $ (434 )   $ 230     $ 1,823  

    (1) Non-GAAP financial measures. Refer to Non-GAAP Financial Measures at the end of this press release for a reconciliation to the nearest GAAP equivalents.
    (2) Capital ratios are for First Financial Northwest Bank only.
    (3) Loans are reported net of undisbursed funds.

    FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
    Key Financial Measures
    (Unaudited)
      At or For the Year Ended December 31,
        2024       2023       2022       2021       2020  
      (Dollars in thousands)
    Yields and Costs:                  
    Yield on loans   5.87 %     5.71 %     4.69 %     4.57 %     4.69 %
    Yield on investments   4.26       3.97       2.77       1.83       2.39  
    Yield on interest-earning deposits   5.12       5.06       1.28       0.12       0.21  
    Yield on FHLB stock   9.03       7.07       5.08       5.29       4.85  
    Yield on interest-earning assets   5.66 %     5.44 %     4.33 %     4.01 %     4.36 %
                       
    Cost of deposits   3.74 %     3.12 %     0.87 %     0.71 %     1.42 %
    Cost of borrowings   2.75       2.52       1.70       1.39       1.31  
    Cost of interest-bearing liabilities   3.63 %     3.05 %     0.95 %     0.78 %     1.41 %
                       
    Cost of interest-bearing deposits   3.42 %     2.83 %     0.77 %     0.64 %     1.32 %
    Cost of funds   3.35       2.80       0.86       0.71       1.32  
                       
    Average Balances:                  
    Loans $ 1,139,864     $ 1,172,569     $ 1,128,835     $ 1,098,772     $ 1,120,889  
    Investments   173,276       213,261       203,165       176,110       133,584  
    Interest-earning deposits   47,723       44,684       30,176       60,482       25,108  
    FHLB stock   6,614       6,857       6,256       6,271       6,600  
    Total interest-earning assets $ 1,367,477     $ 1,437,371     $ 1,368,432     $ 1,341,635     $ 1,286,181  
                       
    Interest-bearing deposits $ 1,045,950     $ 1,104,510     $ 1,034,351     $ 1,015,852     $ 987,069  
    Borrowings   126,931       127,263       113,890       115,466       125,392  
    Total interest-bearing liabilities   1,172,881       1,231,773       1,148,241       1,131,318       1,112,461  
    Noninterest-bearing deposits   97,411       109,795       125,166       112,484       75,388  
    Total deposits and borrowings $ 1,270,292     $ 1,341,568     $ 1,273,407     $ 1,243,802     $ 1,187,849  
                       
    Average assets $ 1,456,215     $ 1,529,511     $ 1,455,739     $ 1,421,476     $ 1,361,604  
    Average stockholders’ equity   161,385       160,428       158,685       160,041       155,587  

    Non-GAAP Financial Measures

    In addition to financial results presented in accordance with generally accepted accounting principles (“GAAP”) utilized in the United States, this earnings release contains non-GAAP financial measures that include tangible equity, tangible assets, tangible book value per share, and the tangible equity-to-assets ratio. The Company believes that these non-GAAP financial measures and ratios as presented are useful for both investors and management to understand the effects of goodwill and core deposit intangible, net and provides an alternative view of the Company’s performance over time and in comparison to the Company’s competitors. Non-GAAP financial measures have limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation and are not a substitute for other measures in this earnings release that are presented in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

    The following tables provide a reconciliation between the GAAP and non-GAAP measures:

      Quarter Ended
        Dec 31,
    2024
          Sep 30,
    2024
          Jun 30,
    2024
          Mar 31,
    2024
          Dec 31,
    2023
     
      (Dollars in thousands, except per share data)
    Tangible equity to tangible assets and tangible book value per share:  
    Total stockholders’ equity (GAAP) $ 161,555     $ 160,213     $ 160,693     $ 160,183     $ 161,660  
    Less:                  
    Goodwill   889       889       889       889       889  
    Core deposit intangible, net   295       326       357       388       419  
    Tangible equity (Non-GAAP) $ 160,371     $ 158,998     $ 159,447     $ 158,906     $ 160,352  
                       
    Total assets (GAAP) $ 1,424,889     $ 1,451,086     $ 1,447,753     $ 1,468,350     $ 1,505,082  
    Less:                  
    Goodwill   889       889       889       889       889  
    Core deposit intangible, net   295       326       357       388       419  
    Tangible assets (Non-GAAP) $ 1,423,705     $ 1,449,871     $ 1,446,507     $ 1,467,073     $ 1,503,774  
                       
    Common shares outstanding at period end   9,230,010       9,213,969       9,179,825       9,174,425       9,179,510  
                       
    Equity-to-assets ratio (GAAP)   11.34 %     11.04 %     11.10 %     10.91 %     10.74 %
    Tangible equity-to-tangible assets ratio (Non-GAAP)   11.26       10.97       11.02       10.83       10.66  
    Book value per common share (GAAP) $ 17.50     $ 17.39     $ 17.51     $ 17.46     $ 17.61  
    Tangible book value per share (Non-GAAP)   17.37       17.26       17.37       17.32       17.47  
                                           
    Non-GAAP Financial Measures (continued)
     
      Year Ended December 31,
        2024       2023       2022       2021       2020  
      (Dollars in thousands, except per share data)
    Tangible equity to tangible assets and tangible book value per share:
    Total stockholders’ equity (GAAP) $ 161,555     $ 161,660     $ 160,360     $ 157,879     $ 156,302  
    Less:                  
    Goodwill   889       889       889       889       889  
    Core deposit intangible   295       419       548       684       824  
    Tangible equity (Non-GAAP) $ 160,371     $ 160,352     $ 158,923     $ 156,306     $ 154,589  
                       
    Total assets (GAAP)   1,424,889       1,505,082       1,502,916       1,426,329       1,387,669  
    Less:                  
    Goodwill   889       889       889       889       889  
        295       419       548       684       824  
    Tangible assets (Non-GAAP) $ 1,423,705     $ 1,503,774     $ 1,501,479     $ 1,424,756     $ 1,385,956  
                       
    Common shares outstanding at period end   9,230,010       9,179,510       9,127,595       9,125,759       9,736,875  
                       
    Equity-to-assets ratio (GAAP)   11.34 %     10.74 %     10.67 %     11.07 %     11.26 %
    Tangible equity ratio (Non-GAAP)   11.26       10.66       10.58       10.97       11.15  
    Book value per common share (GAAP) $ 17.50     $ 17.61     $ 17.57     $ 17.30     $ 16.05  
    Tangible book value per share (Non-GAAP)   17.37       17.47       17.41       17.13       15.88  

    For more information, contact:
    Joseph W. Kiley III, President and Chief Executive Officer
    Rich Jacobson, Executive Vice President and Chief Financial Officer
    (425) 255-4400

    The MIL Network –

    January 29, 2025
  • MIL-OSI: Endeavor Bancorp Reports Net Income of $1.1 Million for the Fourth Quarter of 2024; Highlighted by Quarterly Net Interest Margin Expansion

    Source: GlobeNewswire (MIL-OSI)

    SAN DIEGO, Jan. 28, 2025 (GLOBE NEWSWIRE) — Endeavor Bancorp (OTCQX: EDVR) (the “Company,” or “Bancorp”), the holding company for Endeavor Bank (the “Bank”), today reported net income of $1.08 million, or $0.25 per diluted share, for the fourth quarter of 2024, compared to net income of $924,000, or $0.22 per diluted share, for the third quarter of 2024, and $852,000, or $0.20 per diluted share, for the fourth quarter of 2023. Pretax net income was $1.55 million in the fourth quarter compared to $1.32 million in the preceding quarter and $1.24 million in the fourth quarter of 2023. All financial results are unaudited.

    Results for the fourth quarter of 2024 included a $374,000 provision for credit losses, compared to a $609,000 provision for credit losses in the third quarter of 2024, and a $181,000 provision for credit losses in the fourth quarter of 2023. Also noteworthy was the interest expense on borrowings in the past three quarters, with interest expense on borrowings of $493,000 for the third and fourth quarters of 2024, and $201,000 for the fourth quarter of 2023. The additional interest expense was associated with the recent subordinated debt issued late in the first quarter of 2024. Excluding taxes and loan loss provisions, the Company’s pretax, pre-provision net income was $1.93 million in the fourth quarter of 2024, which was unchanged compared to the preceding quarter and an increase compared to $1.41 million in the fourth quarter of 2023.

    “Endeavor’s fourth quarter 2024 operating results were highlighted by strong net interest income generation and net interest margin expansion,” stated Julie Glance, CFO. “We had another year of double-digit loan and deposit growth, with net loans increasing 31.1% and deposits increasing 18.5%, compared to a year ago. In addition, our earning assets yield also increased, up 69 basis points in 2024 over 2023, which is contributing to net interest margin expansion. As we look to 2025, our primary focus is shifting to deposit gathering, with an emphasis on bringing in full client relationships to grow our core deposit base.”

    “Our thoughts and prayers are with the people and communities impacted by the Southern California wildfires and straight-line winds. Our team is actively reviewing our records to determine if any clients may be affected by these tragic events,” said Dan Yates, CEO.

    Income Statement
    Strong fourth quarter earnings were driven by loan growth and earning asset rates. Total interest income on loans and bank deposits and investments was $10.8 million, an increase of $568,000 compared to the preceding quarter, while total interest expenses decreased $30,000 during the same timeframe. Net interest income was $6.5 million in the fourth quarter of 2024, which was an increase of $598,000, or 10.1% compared to the preceding quarter and a 29.8% increase compared to the fourth quarter of 2023.

    “The 12 basis point increase in our net interest margin during the fourth quarter of 2024, compared to the prior quarter, was the result of strong loan growth and higher interest earning assets, in addition to improving funding costs,” said Yates.

    Net interest margin (NIM) increased 12 basis points to 3.97% in the fourth quarter of 2024 compared to 3.85% in the third quarter of 2024 and increased 40 basis points compared to 3.57% in the fourth quarter of 2023. The yield on total earning assets remained strong, decreasing only seven basis points during the fourth quarter of 2024 to 6.54%, compared to 6.61% in the preceding quarter, and up from 6.00% in the fourth quarter of 2023. The cost of deposits decreased significantly to 2.76% in the fourth quarter, compared to 2.98% in the third quarter, and up from 2.62% in the fourth quarter of 2023

    Non-Interest income decreased to $160,000 in the fourth quarter, compared to $217,000 in the third quarter of 2024, and increased compared to $138,000 in the fourth quarter 2023.

    Non-Interest expenses increased $547,000, an increase of 13.0%, in the fourth quarter compared to the third quarter of 2024, and increased $1.0 million compared to the fourth quarter of 2023. “The increase in expenses during the fourth quarter of 2024 was primarily driven by growth-related investment in infrastructure, as well as some non-recurring expenses specific to the quarter. Also worth noting, non-interest expenses for the year were well within our budgeted operating plan,” said Glance.

    The Company’s annualized return on average equity for the fourth quarter of 2024 was 9.35%, compared to 8.17% in the third quarter of 2024 and 7.99% in the fourth quarter of 2023. The annualized return on average assets for the fourth quarter of 2024 was 0.65% compared to 0.59% in the third quarter of 2024 and 0.60% in the fourth quarter of 2023.

    Balance Sheet
    Total assets increased $23.0 million, or 3.5%, during the fourth quarter of 2024 to $678.3 million at December 31, 2024, compared to $655.3 million at September 30, 2024, and increased $108.2 million, or 19.0%, compared to December 31, 2023. Balance sheet liquidity remains strong with cash balances of $80.5 million, which represents 11.9% of total assets as of December 31, 2024. The Company’s bond portfolio increased $5.7 million during the fourth quarter to $25.8 million as of December 31, 2024, representing only 3.8% of total assets. Total available borrowing capacity through the Federal Home Loan Bank and the Federal Reserve discount window exceeded $140.1 million as of quarter end.

    “At a time where other banks are shrinking their balance sheet, we have remained focused on expanding. Loan growth and new loan originations remained strong during the fourth quarter of 2024, as we continue to seek out high quality lending opportunities in our markets,” said Steve Sefton, President. “In early 2024, we expanded our team and moved into the greater Los Angeles Metro and Inland Empire markets. While this expansion north is still in its early stages, we are already seeing positive momentum and is already contributing to operating results.”

    Total loans outstanding increased $33.4 million, or 6.2%, during the fourth quarter of 2024 to $571.8 million at December 31, 2024, compared to $538.4 million three months earlier, and increased $135.6 million, or 31.1%, when compared to $436.3 million a year earlier. Total non-performing loans decreased to 0.46% of the total loan portfolio as of December 31, 2024, compared to 1.22% in the prior quarter. The decrease compared to the prior quarter was due to one borrower who had been in the renewal process whose loans were successfully renewed during the fourth quarter of 2024 and are now current. The Company had no net charge offs during the fourth quarter of 2024, or in the prior quarter.

    Total deposits increased $23.4 million, or 4.1%, during the quarter to $601.2 million at December 31, 2024, compared to $577.8 million three months earlier, and increased $93.4 million, up 18.5% when compared to $577.8 million a year earlier. The loan to deposit ratio was 95.1% at December 31, 2024, compared to 93.2% at September 30, 2024, and 86.0% as of December 31, 2023.

    As a result of its participation in a reciprocal deposit placement network, the Bank accepted “reciprocal” deposits from other institutions, enabling the Bank to offer customers FDIC insurance on accounts in excess of the typical $250,000 FDIC insurance limit. Although the reciprocal deposit accounts maintained through the network are core deposits seeking FDIC insurance, the FDIC rules indicate that reciprocal deposits aggregating over 20% of total liabilities are classified as deposits obtained by or through a deposit broker. The total reciprocal deposits reported as brokered deposits were $113.7 million at December 31, 2024, and $127.0 million as of September 30, 2024. To support the strong loan growth, the Company is utilizing a conservative amount of wholesale deposits. As of December 31, 2024, total wholesale deposits, excluding the reciprocal deposits, was $60.7 million, representing 10.1% of total deposits compared to $40.7 million as of September 30, 2024, or 7.0% of total deposits.

    Shareholders’ equity was $46.0 million at December 31, 2024, compared to $45.3 million at September 30, 2024, and $42.5 million at December 31, 2023. Tangible book value per share increased to $13.17 at December 31, 2024, compared to $12.97 three months earlier and $12.48 a year earlier.

    Capital
    The Bank’s Tier 1 leverage ratio was 10.90% as of December 31, 2024, compared to 11.38% at September 30, 2024. The Tier 1 risk-based capital ratio was 10.71% as of December 31, 2024, compared to 10.95% on September 30, 2024, and the Total risk-based capital ratio was 11.92% compared to 12.13% three months earlier, all of which were well above regulatory minimums.

    On March 5, the Company completed the issuance of $12.5 million in fixed-to-floating rate subordinated notes. The subordinated debt was structured such that it qualified as Tier 2 capital at the holding company with most of the new capital down streamed to the Bank as Tier 1 capital.

    About Endeavor Bancorp
    Endeavor Bancorp, the holding company for Endeavor Bank, is primarily owned and operated by Southern Californians for Southern California businesses and their owners. The bank’s focus is local: local decision-making, local board, local founders, local owners, and relationships with local clients in Southern California.

    Headquartered in downtown San Diego in the Symphony Towers building, the Bank also operates a loan production and executive administration office in Carlsbad and a branch office in La Mesa. Endeavor Bank provides traditional business banking services across a broad spectrum of industries and specialties. Unique to the bank is its consultative banking approach that partners our business clients with Endeavor Bank’s senior management. Together, we build strategies and provide resources that solve problems, plan for the future, and help clients’ efforts to grow revenues and profits. Endeavor Bancorp trades on the OTCQX® Best Market under the symbol “EDVR.” Visit www.endeavor.bank for more information.

    EDVR Shareholders
    With many of our shareholders transferring their EDVR shares to their brokerage companies, along with ongoing trading taking place, Bancorp may not have the most current shareholder contact information. If you are an EDVR shareholder and would like to receive information via a more timely method, please complete the Shareholder Communication Preference Form on our website: https://www.bankendeavor.com/investor-relations so we can keep you updated on EDVR news, and invite you to various shareholder networking events throughout the year. 

    Forward-Looking Statements
    This press release includes “forward-looking statements,” as such term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the current beliefs of the Company’s directors and executive officers (collectively, “Management”), as well as assumptions made by and information currently available to the Company’s Management. All statements regarding the Company’s business strategy and plans and objectives of Management of the Company for future operations, are forward-looking statements. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect” and “intend” and words or phrases of similar meaning, as they relate to the Company or the Company’s Management, are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from the Company’s expectations (“cautionary statements”) are loan losses, rapid and unanticipated deposit withdrawals, unavailability of sources of liquidity, additional regulatory requirements that may be imposed on community banks or banks generally, changes in interest rates, loss of key personnel, lower lending limits and capital than competitors, regulatory restrictions and oversight of the Company, the secure and effective implementation of technology, risks related to the local and national economy, the effect on customers, collateral value and property insurance markets of the recent wildfires in the Los Angeles metropolitan area and similar events in the future, changes in real estate values, the Company’s implementation of its business plans and management of growth, loan performance, interest rates, and regulatory matters, the effects of trade, monetary and fiscal policies, inflation, and changes in accounting policies and practices. Based upon changing conditions, if any one or more of these risks or uncertainties materialize, or if any underlying assumptions prove incorrect, actual results may vary materially from those described as anticipated, believed, estimated, expected, or intended. The Company does not intend to update these forward-looking statements.

    SELECTED FINANCIAL DATA
    (In thousands of dollars, except for ratios and per share amounts)

    Unaudited

     
       Three Months Ended  
         
      December 31, 2024
      September 30, 2024
      December 31, 2023
     
      (Consolidated)
      (Consolidated)
      (Consolidated)
     
    SUMMARY OF OPERATIONS                        
    Interest income $ 10,754     $ 10,186     $ 8,444    
    Interest expense   4,236       4,266       3,423    
    Net interest income   6,518       5,920       5,021    
    Provision for credit losses   374       609       181    
    Net interest income after loss provision   6,144       5,311       4,841    
    Non-interest income   160       217       138    
    Non-interest expense   4,752       4,205       3,738    
    Income before tax   1,552       1,323       1,241    
    Federal income tax expense   296       255       245    
    State income tax expense   171       143       143    
    Net income $ 1,084     $ 924     $ 852    
                             
    Core pretax earnings* $ 1,926     $ 1,932     $ 1,413    
    *excludes taxes and provision for loan losses                        
                             
    PER COMMON SHARE DATA                        
    Number of shares outstanding (000s)*   3,494       3,494       3,394    
    *Adjusted for May 2024 Stock Dividend                        
    Earnings per share, basic $ 0.31     $ 0.26     $ 0.25    
    Earnings per share, diluted $ 0.25     $ 0.22     $ 0.20    
    Book Value per share $ 13.17     $ 12.97     $ 12.53    
                             
    BALANCE SHEET DATA                        
    Assets $ 678,332     $ 655,305     $ 570,176    
    Investments securities   25,777       20,107       7,877    
    Total loans, net of unearned income   571,817       538,439       436,263    
    Total deposits   601,219       577,781       507,557    
    Borrowings   26,697       26,672       16,121    
    Shareholders’ equity   46,009       45,308       42,526    
    Loan to Deposit ratio   95.11 %     93.19 %     85.95 %  
    Wholesale Deposits to Total Deposits   10.10 %     7.04 %          
                             
    AVERAGE BALANCE SHEET DATA                        
    Average assets $ 660,748     $ 619,122       563,973    
    Average total loans, net of unearned income   549,340       506,469       424,435    
    Average total deposits   582,583       541,858     $ 501,079    
    Average shareholders’ equity   46,117       44,990       42,344    
                             
    ASSET QUALITY RATIOS                        
    Net (charge-offs) recoveries $ –     $ –       (800 )  
    Net (charge-offs) recoveries to average loans   0.00 %     0.00 %     0.20 %  
    Non-performing loans as a % of loans   0.46 %     1.22 %     0.07 %  
    Non-performing assets as a % of assets   0.38 %     1.00 %     0.05 %  
    Allowance for loan losses as a % of total loans   0.46 %     1.39 %     1.37 %  
    Allowance for loan losses as a % of non-performing loans   300.54 %     113.61 %     6.94 %  
                             
    FINANCIAL RATIOSSTATISTICS                        
    Annualized return on average equity   9.35 %     8.17 %     7.99 %  
    Annualized return on average assets   0.65 %     0.59 %     0.60 %  
    Net interest margin   3.97 %     3.85 %     3.57 %  
    Efficiency ratio   71.17 %     69.26 %     72.44 %  
                             
    CAPITAL RATIOS                        
    Tier 1 leverage ratio — Bank   10.90 %     11.38 %     10.14 %  
    Common equity tier 1 ratio — Bank   10.71 %     10.95 %     10.92 %  
    Tier 1 risk-based capital ratio — Bank   10.71 %     10.95 %     10.92 %  
    Total risk-based capital ratio –Bank   11.90 %     12.13 %     12.09 %  
                             
    TCE/TA *   6.78 %     6.91 %     7.46 %  
    Tangible Book Value per Share $ 13.17     $ 12.97       12.48 %  
                             
    *Non-GAAP financial measure.                        
    Unaudited financials 2024                        
     

    Endeavor Bancorp Contact Information:
    (858) 230.5185
    Dan Yates, CEO
    dyates@bankendeavor.com

    (858) 230.4243
    Steve Sefton, President
    ssefton@bankendeavor.com

    The MIL Network –

    January 29, 2025
  • MIL-OSI: authID Launches PrivacyKey™, Embedding Groundbreaking Privacy and Compliance in Its Biometric Identity Authentication Platform

    Source: GlobeNewswire (MIL-OSI)

    The unmatched speed and accuracy of authID’s Proof and Verified identity authentication solutions now provide enterprises with care-free compliance that eliminates the issues and risks associated with biometric data storage.

    DENVER, Jan. 28, 2025 (GLOBE NEWSWIRE) — authID®  (Nasdaq: AUID) (“authID”), a leading provider of biometric identity verification and authentication solutions, today announced the release of PrivacyKey™, a first-of-its-kind solution for protecting user biometric data while also avoiding all the compliance issues and risks related to biometric information storage. With the addition of PrivacyKey, authID serves as the ideal partner for organizations that previously delayed or avoided implementation of biometric solutions due to concerns over liability or potential user apprehension regarding privacy. This technology also prevents duplicate registrations without storing actual images of users’ faces.

    authID’s Proof™ solution for onboarding users captures images of physical identification documents and faces, validates both for liveness and authenticity, then matches up the facial images for positive identification, all with market-leading speed and accuracy. Historically, authID has retained an encrypted hash of the calculus of each face for subsequent authentication through its Verified™ solution. With PrivacyKey, available with authID’s Proof and Verified platform Version 4.0, authID stores no biometric data whatsoever, thereby ensuring user privacy and regulatory compliance while providing authID customers absolute confidence in the security measures they implement to authenticate and verify identities.

    PrivacyKey also features critical key-management capabilities that ensure the highest level of user protection and privacy. Enterprises using the platform can rotate and revoke keys with ease, ensuring the keys are accessible only to those who are authorized to access them. This offers authID customers a level of security no other biometric authentication solution can offer.

    “We’ve never stored any biometric data that could be reverse-engineered into a face. Today we’re innovating even further to satisfy even the most stringent compliance concerns,” explained Rhon Daguro, CEO of authID. “By leveraging technology that retains no biometric artifact whatsoever, authID provides secure verification that enterprises can trust, all at 700ms processing speeds and with one-in-one billion false-match accuracy. Companies that use authID will have cutting-edge security and data privacy compliance because PrivacyKey™ eliminates biometric data storage.”

    While biometric authentication usage is on the rise, fears of any collected biometric data being vulnerable to theft or misuse persist as the primary barrier to adoption. This leads to consumers and even employees opting out of participating in biometric systems, regardless of guarantees that their data is safe from breaches or resale. An increasing number of states and countries are also enacting laws limiting or even banning biometric data retention, meaning companies incur additional legal burdens. With the addition of PrivacyKey™, authID provides assurance to users as well as their organizations, and broadens the market for its best-in-class biometric platform.

    “Identity verification products based on personally-identifiable information are always vulnerable to data breaches, but authID’s platform subtracts that risk, allowing businesses to leverage biometric signals that can’t be breached and can’t be phished,” said Erick Soto, authID Chief Product Officer. “At time of identity proofing and onboarding, we utilize the facial biometric to create a public and private key pair. We immediately destroy the private key, and store only the public key. Each time that an onboarded user authenticates with their face, we recreate the private key, which is then matched to the public key with an encrypted message for verification. And during a search, even the keys are only matched within their organization’s ecosystem, not the universe.”

    “With PrivacyKey™, users don’t have to worry about their facial biometrics being at risk in our cloud, and our customers avoid compliance risks, since there’s nothing to steal,” added Daguro. “We provide the ultimate in data privacy protection.”

    For more information and a video demonstration of PrivacyKey, click here. For additional information, visit https://authid.ai/   

    About authID
    authID® (Nasdaq: AUID) ensures enterprises “Know Who’s Behind the Device™” for every customer or employee login and transaction through its easy-to-integrate, patented, biometric identity platform. authID quickly and accurately verifies a user’s identity and eliminates any assumption of ‘who’ is behind a device to prevent cybercriminals from compromising account openings or taking over accounts. Combining secure digital onboarding, biometric authentication, and account recovery with a fast, accurate, user-friendly experience, authID delivers biometric identity processing in 700ms. Binding a biometric root of trust for each user to their account, authID stops fraud at onboarding, detects and stops deepfakes, eliminates password risks and costs, and provides the fastest, frictionless, and the more accurate user identity experience demanded by today’s digital ecosystem. Contact us to discover how authID can help your organization secure your workforce or consumer applications against identity fraud, cyberattacks and account takeover.

    Media Contacts
    Walter Fowler
    1-631-334-3864
    wfowler@nexttechcomms.com

    Investor Relations Contacts

    Gateway Group, Inc.
    Cody Slach and Alex Thompson
    1-949-574-3860
    AUID@gateway-grp.com
    Investor-Relations@authid.ai

    The MIL Network –

    January 29, 2025
  • MIL-OSI: BCB Bancorp, Inc. Earns $3.3 Million in Fourth Quarter 2024; Reports $0.16 EPS and Declares Quarterly Cash Dividend of $0.16 Per Share

    Source: GlobeNewswire (MIL-OSI)

    BAYONNE, N.J., Jan. 28, 2025 (GLOBE NEWSWIRE) — BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported net income of $3.3 million for the fourth quarter of 2024, compared to $6.7 million in the third quarter of 2024, and $6.1 million for the fourth quarter of 2023. Earnings per diluted share for the fourth quarter of 2024 were $0.16, compared to $0.36 in the preceding quarter and $0.35 in the fourth quarter of 2023. Net income and earnings per diluted share for the fourth quarter of 2024, without giving effect to the Company’s unrealized losses on equity investments and the loss on sale of non-performing loans, were $4.1 million and $0.24, respectively.

    The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.16 per share. The dividend will be payable on February 24, 2025 to common shareholders of record on February 7, 2025.

    “We took a number of positive actions during 2024 that have strengthened our balance sheet position. We meaningfully reduced our exposure to wholesale funding and continue to work hard on replacing higher cost funding with core deposits. Additionally, we have strengthened our capital position through positive retained earnings, favorable capital actions and selective loan growth. We have been prudently building up our CECL reserves to address asset quality issues. As we tackle and remediate credit quality issues, we are also positioning the Bank to gradually start lending and booking new business with both existing and new customers,” stated Michael Shriner, President and Chief Executive Officer.

    Executive Summary

    • Total deposits were $2.751 billion at December 31, 2024 compared to $2.725 billion at September 30, 2024.
    • Net interest margin was 2.53 percent for the fourth quarter of 2024, compared to 2.58 percent for the third quarter of 2024, and 2.57 percent for the fourth quarter of 2023.
      • Total yield on interest-earning assets was 5.33 percent for the fourth quarter of 2024 compared to 5.44 percent for the third quarter of 2024, and 5.33 percent for the fourth quarter of 2023.
      • Total cost of interest-bearing liabilities was 3.57 percent for the fourth quarter of 2024, compared to 3.62 percent for the third quarter of 2024, and 3.45 percent for the fourth quarter of 2023.
    • The efficiency ratio for the fourth quarter was 62.1 percent compared to 53.2 percent in the prior quarter, and 61.0 percent in the fourth quarter of 2023.
    • The annualized return on average assets ratio for the fourth quarter was 0.36 percent, compared to 0.72 percent in the prior quarter, and 0.63 percent in the fourth quarter of 2023.
    • The annualized return on average equity ratio for the fourth quarter was 4.0 percent, compared to 8.3 percent in the prior quarter, and 7.9 percent in the fourth quarter of 2023.
    • The provision for credit losses was $4.2 million in the fourth quarter of 2024 compared to $2.9 million for the third quarter of 2024, and $1.9 million for the fourth quarter of 2023.
    • The allowance for credit losses (“ACL”) as a percentage of total loans was 1.15 percent at December 31, 2024 compared to 1.11 percent at the prior quarter-end and 1.01 percent at December 31, 2023.
    • Total loans receivable, net of the allowance for credit losses, of $2.996 billion at December 31, 2024, decreased 8.6 percent from $3.280 billion at December 31, 2023.

    Balance Sheet Review

    Total assets decreased by $233.3 million, or 6.1 percent, to $3.599 billion at December 31, 2024, from $3.832 billion at December 31, 2023. The decrease in total assets was due to a decrease in loans of $283.4 million, offset by an increase of $37.8 million in cash and cash equivalents. The decrease in loans was primarily from loan sales and payoffs/paydowns that exceeded loan originations.

    Total cash and cash equivalents increased by $37.8 million, or 13.5 percent, to $317.3 million at December 31, 2024, from $279.5 million at December 31, 2023. The increase was primarily due to loan sales and payoffs/paydowns that exceeded loan originations.

    Loans receivable, net, decreased by $283.4 million, or 8.6 percent, to $2.996 billion at December 31, 2024, from $3.280 billion at December 31, 2023. Total loan decreases during the period included decreases of $187.4 million in commercial real estate multi-family loans, $57.4 million in construction loans, $29.4 million in commercial business loans, $8.4 million in residential 1-4 family loans, and $1.4 million in consumer loans. Home equity loans increased $438 thousand. The allowance for credit losses on loans increased $1.2 million to $34.8 million, or 77.8 percent of non-accruing loans and 1.15 percent of gross loans, at December 31, 2024, as compared to an allowance for credit losses on loans of $33.6 million, or 178.9 percent of non-accruing loans and 1.01 percent of gross loans, at December 31, 2023.

    Total investment securities increased by $14.3 million, or 14.8 percent, to $111.2 million at December 31, 2024, from $96.9 million at December 31, 2023, as excess liquidity has been deployed into the securities portfolio.

    Deposits decreased by $228.2 million, or 7.7 percent, to $2.751 billion at December 31, 2024, from $2.979 billion at December 31, 2023. A majority of the decline was due to a decrease in certificates of deposit of $193.5 million. The reduction in certificates of deposit was mainly caused by the withdrawal of brokered deposits which was partially offset by an increase in retail time deposits.

    Total borrowings decreased by $12.1 million to $498.3 million at December 31, 2024 from $510.4 million at December 31, 2023. The decrease in borrowings was primarily due to the maturity of $18.0 million of FHLB debt that was paid off during 2024. The weighted average interest rate of the Company’s outstanding FHLB advances was 4.35 percent at December 31, 2024 and 4.21 percent at December 31, 2023. The weighted average maturity of such FHLB advances as of December 31, 2024 was 0.97 years. The interest rate of the Company’s subordinated debt balances was 9.25 percent at December 31, 2024 and 8.36 percent at December 31, 2023.

    Stockholders’ equity increased by $9.9 million, or 3.1 percent, to $323.9 million at December 31, 2024, from $314.1 million at December 31, 2023. The increase was primarily attributable to the increase in retained earnings of $5.9 million, or 4.4 percent, to $141.9 million at December 31, 2024 from $135.9 million at December 31, 2023.

    Fourth Quarter 2024 Income Statement Review

    Net income was $3.3 million for the quarter ended December 31, 2024 and $6.1 million for the quarter ended December 31, 2023. In the fourth quarter of 2024, the Bank recorded $2.2 million more in loan loss provisioning, and net interest income declined by $1.7 million. Non-interest income was also lower by $2.3 million. Offsetting these declines was a decrease in non-interest expense of $2.2 million. The Bank also recorded $1.3 million less for income tax provisioning.

    Net interest income decreased by $1.7 million, or 7.2 percent, to $22.2 million for the fourth quarter of 2024, from $23.9 million for the fourth quarter of 2023. The decrease in net interest income resulted from lower interest income, offset by lower interest expense.

    Interest income decreased by $3.1 million, or 6.1 percent, to $46.7 million for the fourth quarter of 2024, from $49.7 million for the fourth quarter of 2023. The average balance of interest-earning assets decreased $226.6 million, or 6.1 percent. The rate of return remained flat at 5.33 percent.

    Interest expense declined $1.3 million, to $24.5 million, for the fourth quarter of 2024, from $25.8 million for the fourth quarter of 2023. Average interest-bearing liabilities decreased $247.2 million, or 8.3 percent. The average yield on these liabilities was 3.57 percent, versus 3.45 percent from one year earlier.

    The net interest margin was 2.53 percent for the fourth quarter of 2024 compared to 2.57 percent for the fourth quarter of 2023. The decrease in the net interest margin compared to the fourth quarter of 2023 was the result of the increase in the cost of interest-bearing liabilities. The yield on interest earning assets remained the same from one year earlier.

    During the fourth quarter of 2024, the Company recognized $4.1 million in net charge-offs compared to $233 thousand in net charge offs for the fourth quarter of 2023. The Bank had non-accrual loans totaling $44.7 million, or 1.48 percent of gross loans, at December 31, 2024 as compared to $18.8 million, or 0.57 percent of gross loans, at December 31, 2023. The allowance for credit losses on loans was $34.8 million, or 1.15 percent of gross loans, at December 31, 2024, and $33.6 million, or 1.01 percent of gross loans, at December 31, 2023. The provision for credit losses on loans was $4.2 million for the fourth quarter of 2024 compared to $1.9 million for the fourth quarter of 2023. Management believes that the allowance for credit losses on loans was adequate at December 31, 2024 and December 31, 2023.

    Non-interest income decreased by $2.3 million to $938 thousand for the fourth quarter of 2024 from $3.2 million in the fourth quarter of 2023. The decrease in total non-interest income was related to losses on equity investments of $661 thousand in the 2024 quarter as compared to a gain on such investments of $1.1 million in the 2023 quarter, as well as the recordation of a $570 thousand loss on the sale of a non-performing loan during the fourth quarter.

    Non-interest expense decreased by $2.2 million, or 13.3 percent, to $14.4 million for the fourth quarter of 2024 from $16.6 million for the fourth quarter of 2023. The decrease in these expenses for the fourth quarter of 2024 was driven by lower salaries and benefits expense, which declined $857 thousand. The fourth quarter of 2023 salaries and benefits included a previously disclosed one-time payment of $1.17 million to a former executive officer. Professional fees, regulatory assessment fees and advertising and promotional costs also declined by $388 thousand, $373 thousand, and $191 thousand, respectively.

    The income tax provision decreased by $1.3 million, or 48.4 percent, to $1.3 million for the fourth quarter of 2024. The provision was $2.6 million for the fourth quarter of 2023. The consolidated effective tax rate was 29.0 percent for the fourth quarter of 2024 and 29.9 percent for the fourth quarter of 2023.

    Year-to-Date Income Statement Review

    Net income decreased by $10.9 million, or 36.8 percent, to $18.6 million for the twelve months of 2024 from $29.5 million for the twelve months of 2023. The decrease in net income was driven, primarily, by lower net interest income of $12.0 million, or 11.6 percent, and an increase in the provision for credit losses by $5.5 million.

    Net interest income decreased by $12.0 million, or 11.6 percent, to $92.0 million for the first twelve months of 2024 from $104.1 million for the twelve months of 2023. The decrease in net interest income resulted from an increase in interest expense of $17.7 million, partly offset by an increase in interest income of $5.6 million.

    Interest income increased by $5.6 million, or 3.0 percent, to $194.0 million for the twelve months of 2024, from $188.4 million for the twelve months of 2023. The increase was due to an increase of 22 basis points on interest earning assets, from 5.16 percent to 5.38 percent. Offsetting this, somewhat, was a decrease in average interest earning assets of $47.5 million, for the comparable period, which was comprised of a decrease in average loans of $84.8 million offset by an increase in average other interest-earning assets of $37.6 million.

    Interest expense increased by $17.7 million, or 21.0 percent, to $102.0 million for 2024, from $84.3 million for 2023. This increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 64 basis points to 3.57 percent for the twelve months of 2024, from 2.93 percent for the twelve months of 2023. Offsetting this was a decrease in average interest bearing liabilities of $18.5 million over the same comparable time period.

    Net interest margin was 2.55 percent for the twelve months of 2024, compared to 2.85 percent for the twelve months of 2023. The decrease in the net interest margin compared to the prior period was largely the result of an increase in the cost of the Bank’s interest-bearing liabilities.

    During the twelve months of 2024, the Company experienced $10.4 million in net charge offs compared to $704 thousand in net charge offs for the same period in 2023. The provision for credit losses was $11.6 million for the twelve months of 2024 compared to $6.1 million for the same period in 2023.

    Non-interest income decreased by $1.1 million to $2.9 million for the twelve months of 2024 from $4.1 million for the twelve months of 2023. The decrease was due to losses on sales of loans of $5.3 million. This was offset by realized and unrealized gains or losses on equity investments, which were $3.7 million greater, and income on Bank-owned Life Insurance (BOLI), which was $883 thousand higher, for the comparable period. The realized and unrealized gains or losses on equity investments are based on prevailing market conditions.

    Non-interest expense decreased by $3.5 million, or 5.7 percent, to $57.1 million for the twelve months of 2024 from $60.6 million for the same period in 2023. The decrease in operating expenses for 2024 was driven primarily by decreases in salaries and employee benefits of $2.6 million and advertising and promotional costs of $485 thousand. The 2023 salaries and benefits expense included the payment to a former executive described above.

    The income tax provision decreased by $4.3 million, or 36.6 percent to $7.6 million for the twelve months of 2024 from $12.0 million for the same period in 2023. The consolidated effective tax rate was 29.1 percent for the twelve months of 2024 compared to 28.9 percent for the twelve months of 2023.

    Asset Quality

    During the fourth quarter of 2024, the Company recognized $4.1 million in net charge offs, compared to $233 thousand in net charge offs for the fourth quarter of 2023.

    The Bank had non-accrual loans totaling $44.7 million, or 1.48 percent of gross loans, at December 31, 2024, as compared to $18.8 million, or 0.57 percent of gross loans, at December 31, 2023. The allowance for credit losses on loans was $34.8 million, or 1.15 percent of gross loans, at December 31, 2024, and $33.6 million, or 1.01 percent of gross loans, at December 31, 2023. The allowance for credit losses on loans was 77.8 percent of non-accrual loans at December 31, 2024, and 178.9 percent of non-accrual loans at December 31, 2023.

    About BCB Bancorp, Inc.

    BCB Bancorp, Inc. is a New Jersey corporation established in 2003, and is the holding company parent of BCB Community Bank. The Company has not engaged in any significant business activity other than owning all of the outstanding common stock of the Bank. Established in 2000 and headquartered in Bayonne, N.J., the Bank is the wholly-owned subsidiary of BCB Bancorp, Inc. (NASDAQ: BCBP). The Bank has twenty-three New Jersey branch offices in Bayonne, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, and four New York branch offices in Hicksville and Staten Island, New York. The Bank provides businesses and individuals a wide range of loans, deposit products, and retail and commercial banking services. For more information, please go to www.bcb.bank.

    Forward-Looking Statements

    This release, like many written and oral communications presented by BCB Bancorp, Inc., and our authorized officers, may contain certain forward-looking statements regarding our prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “seek,” “strive,” “try,” or future or conditional verbs such as “could,” “may,” “should,” “will,” “would,” or similar expressions. Our ability to predict results or the actual effects of our plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.

    The most significant factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels and higher interest rates concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity and capital in a rapidly changing and unpredictable market, and supply chain disruptions.. Other factors that could cause future results to vary materially from current management expectations as reflected in our forward-looking statements include, but are not limited to: the global impact of the military conflicts in the Ukraine and the Middle East; unfavorable economic conditions in the United States generally and particularly in our primary market area; the Company’s ability to effectively attract and deploy deposits; the impact of any future pandemics or other natural disasters; changes in the Company’s corporate strategies, the composition of its assets, or the way in which it funds those assets; shifts in investor sentiment or behavior in the securities, capital, or other financial markets, including changes in market liquidity or volatility; the effects of declines in real estate values that may adversely impact the collateral underlying our loans; increase in unemployment levels and slowdowns in economic growth; our level of non-performing assets and the costs associated with resolving any problem loans including litigation and other costs; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of our loan and investment securities portfolios; the credit risk associated with our loan portfolio; changes in the quality and composition of the Bank’s loan and investment portfolios; changes in our ability to access cost-effective funding; deposit flows; legislative and regulatory changes, including increases in Federal Deposit Insurance Corporation, or FDIC, insurance rates; monetary and fiscal policies of the federal and state governments; changes in tax policies, rates and regulations of federal, state and local tax authorities; demands for our loan products; demand for financial services; competition; changes in the securities or secondary mortgage markets; changes in management’s business strategies; changes in consumer spending; our ability to retain key employees; the effects of any reputational, credit, interest rate, market, operational, legal, liquidity, or regulatory risk; expanding regulatory requirements which could adversely affect operating results; civil unrest in the communities that we serve; and other factors discussed elsewhere in this report, and in other reports we filed with the SEC, including under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K, and our other periodic reports that we file with the SEC.

    Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

    Explanation of Non-GAAP Financial Measures

    Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). This press release also contains certain supplemental Non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s financial results for the periods in question.

    The Company provides measurements and ratios based on tangible stockholders’ equity and efficiency ratios. These measures are utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors. For a reconciliation of GAAP to Non-GAAP financial measures included in this press release, see “Reconciliation of GAAP to Non-GAAP Financial Measures” below.

             
      Statements of Income – Three Months Ended,      
      December 31, 2024 September 30, 2024 December 31, 2023 Dec 31, 2024 vs. Sept 30, 2024   Dec 31, 2024 vs. Dec 31, 2023
    Interest and dividend income: (In thousands, except per share amounts, Unaudited)      
    Loans, including fees $ 41,431   $ 42,857   $ 43,893   -3.3 %   -5.6 %
    Mortgage-backed securities   473     303     293   56.1 %   61.4 %
    Other investment securities   978     994     991   -1.6 %   -1.3 %
    FHLB stock and other interest-earning assets   3,771     4,472     4,527   -15.7 %   -16.7 %
    Total interest and dividend income   46,653     48,626     49,704   -4.1 %   -6.1 %
                 
    Interest expense:            
    Deposits:            
    Demand   5,866     5,686     5,015   3.2 %   17.0 %
    Savings and club   156     146     177   6.8 %   -11.9 %
    Certificates of deposit   12,218     13,670     13,308   -10.6 %   -8.2 %
        18,240     19,502     18,500   -6.5 %   -1.4 %
    Borrowings   6,219     6,079     7,282   2.3 %   -14.6 %
    Total interest expense   24,459     25,581     25,782   -4.4 %   -5.1 %
                 
    Net interest income   22,194     23,045     23,922   -3.7 %   -7.2 %
    Provision for credit losses   4,154     2,890     1,927   43.7 %   115.6 %
                 
    Net interest income after provision for credit losses   18,040     20,155     21,995   -10.5 %   -18.0 %
                 
    Non-interest income income (loss) :            
    Fees and service charges   1,187     1,196     1,445   -0.8 %   -17.9 %
    (Loss) gain on sales of loans   (554 )   35     11   -1682.9 %   -5136.4 %
    Realized and unrealized gain (loss) on equity investments   (661 )   1,132     1,029   -158.4 %   -164.2 %
    Bank-owned life insurance (“BOLI”) income   636     652     597   -2.5 %   6.5 %
    Other   330     112     69   194.6 %   378.3 %
    Total non-interest income   938     3,127     3,228   -70.0 %   -70.9 %
                 
    Non-interest expense:            
    Salaries and employee benefits   7,117     7,139     7,974   -0.3 %   -10.7 %
    Occupancy and equipment   2,483     2,591     2,606   -4.2 %   -4.7 %
    Data processing and communications   1,754     1,681     1,721   4.3 %   1.9 %
    Professional fees   599     618     987   -3.1 %   -39.3 %
    Director fees   269     351     274   -23.4 %   -1.8 %
    Regulatory assessment fees   769     666     1,142   15.5 %   -32.7 %
    Advertising and promotions   212     182     403   16.5 %   -47.4 %
    Other real estate owned, net   –     –     4   0.0 %   -100.0 %
    Other   1,164     701     1,457   66.0 %   -20.1 %
    Total non-interest expense   14,367     13,929     16,568   3.1 %   -13.3 %
                 
    Income before income tax provision   4,611     9,353     8,655   -50.7 %   -46.7 %
    Income tax provision   1,339     2,685     2,593   -50.1 %   -48.4 %
                 
    Net Income   3,272     6,668     6,062   -50.9 %   -46.0 %
    Preferred stock dividends   475     475     182   -0.0 %   160.7 %
    Net Income available to common stockholders $ 2,797   $ 6,193   $ 5,880   -54.8 %   -52.4 %
                 
    Net Income per common share-basic and diluted            
    Basic $ 0.16   $ 0.36   $ 0.35   -54.9 %   -52.9 %
    Diluted $ 0.16   $ 0.36   $ 0.35   -54.9 %   -53.0 %
                 
    Weighted average number of common shares outstanding            
    Basic   17,056     17,039     16,876   0.1 %   1.1 %
    Diluted   17,108     17,064     16,884   0.3 %   1.3 %
      Statements of Income – Twelve Months Ended,  
      December 31, 2024 December 31, 2023 Dec 31, 2024 vs. Dec 31, 2023
    Interest and dividend income: (In thousands, except per share amounts, Unaudited)  
    Loans, including fees $ 172,046   $ 169,559   1.5 %
    Mortgage-backed securities   1,378     880   56.6 %
    Other investment securities   3,953     4,226   -6.5 %
    FHLB stock and other interest-earning assets   16,632     13,695   21.4 %
    Total interest and dividend income   194,009     188,360   3.0 %
           
    Interest expense:      
    Deposits:      
    Demand   22,158     16,915   31.0 %
    Savings and club   620     620   0.0 %
    Certificates of deposit   55,442     39,157   41.6 %
        78,220     56,692   38.0 %
    Borrowings   23,768     27,606   -13.9 %
    Total interest expense   101,988     84,298   21.0 %
           
    Net interest income   92,021     104,062   -11.6 %
    Provision for credit losses   11,570     6,104   89.5 %
           
    Net interest income after provision for credit losses   80,451     97,958   -17.9 %
           
    Non-interest income:      
    Fees and service charges   4,717     5,334   -11.6 %
    (Loss) gain on sales of loans   (5,325 )   36   -14891.7 %
    Realized and unrealized gain (loss) on equity investments   379     (3,361 ) -111.3 %
    Bank-owned life insurance (“BOLI”) income   2,634     1,751   50.4 %
    Other   535     251   113.1 %
    Total non-interest income   2,940     4,088   -28.1 %
           
    Non-interest expense:      
    Salaries and employee benefits   28,229     30,827   -8.4 %
    Occupancy and equipment   10,247     10,340   -0.9 %
    Data processing and communications   6,960     6,968   -0.1 %
    Professional fees   2,416     2,735   -11.7 %
    Director fees   1,151     1,083   6.3 %
    Regulatory assessments   3,530     3,585   -1.5 %
    Advertising and promotions   863     1,348   -36.0 %
    Other real estate owned, net   –     7   -100.0 %
    Other   3,725     3,698   0.7 %
    Total non-interest expense   57,121     60,591   -5.7 %
           
    Income before income tax provision   26,270     41,455   -36.6 %
    Income tax provision   7,647     11,972   -36.1 %
           
    Net Income   18,623     29,483   -36.8 %
    Preferred stock dividends   1,832     702   160.9 %
    Net Income available to common stockholders $ 16,791   $ 28,781   -41.7 %
           
    Net Income per common share-basic and diluted      
    Basic $ 0.99   $ 1.71   -42.1 %
    Diluted $ 0.99   $ 1.70   -42.0 %
           
    Weighted average number of common shares outstanding      
    Basic   17,007     16,870   0.8 %
    Diluted   17,018     16,932   0.5 %
    Statements of Financial Condition December 31, 2024 September 30, 2024 December 31, 2023 Dec 31, 2024 vs. Sept 30, 2024 Dec 31, 2024 vs. Dec 31, 2023
    ASSETS (In Thousands, Unaudited)    
    Cash and amounts due from depository institutions $ 14,075   $ 12,617   $ 16,597   11.6 % -15.2 %
    Interest-earning deposits   303,207     230,506     262,926   31.5 % 15.3 %
    Total cash and cash equivalents   317,282     243,123     279,523   30.5 % 13.5 %
               
    Interest-earning time deposits   735     735     735   –   –  
    Debt securities available for sale   101,717     98,169     87,769   3.6 % 15.9 %
    Equity investments   9,472     10,133     9,093   -6.5 % 4.2 %
    Loans held for sale   –     250     1,287   -100.0 % -100.0 %
    Loans receivable, net of allowance for credit losses on loans of $34,789, $34,693 and $33,608, respectively   2,996,259     3,087,914     3,279,708   -3.0 % -8.6 %
    Federal Home Loan Bank of New York (“FHLB”) stock, at cost   24,272     24,732     24,917   -1.9 % -2.6 %
    Premises and equipment, net   12,569     12,008     13,057   4.7 % -3.7 %
    Accrued interest receivable   15,176     16,496     16,072   -8.0 % -5.6 %
    Deferred income taxes   17,181     17,370     18,213   -1.1 % -5.7 %
    Goodwill and other intangibles   5,253     5,253     5,253   0.0 % 0.0 %
    Operating lease right-of-use asset   12,686     13,438     12,935   -5.6 % -1.9 %
    Bank-owned life insurance (“BOLI”)   76,040     75,404     73,407   0.8 % 3.6 %
    Other assets   10,476     8,745     10,428   19.8 % 0.5 %
    Total Assets $ 3,599,118   $ 3,613,770   $ 3,832,397   -0.4 % -6.1 %
               
    LIABILITIES AND STOCKHOLDERS’ EQUITY          
               
    LIABILITIES          
    Non-interest bearing deposits $ 520,387   $ 528,089   $ 536,264   -1.5 % -3.0 %
    Interest bearing deposits   2,230,471     2,196,491     2,442,816   1.5 % -8.7 %
    Total deposits   2,750,858     2,724,580     2,979,080   1.0 % -7.7 %
    FHLB advances   455,361     466,424     472,811   -2.4 % -3.7 %
    Subordinated debentures   42,961     67,042     37,624   -35.9 % 14.2 %
    Operating lease liability   13,139     13,878     13,315   -5.3 % -1.3 %
    Other liabilities   12,874     13,733     15,512   -6.3 % -17.0 %
    Total Liabilities   3,275,193     3,285,657     3,518,342   -0.3 % -6.9 %
               
    STOCKHOLDERS’ EQUITY          
    Preferred stock: $0.01 par value, 10,000 shares authorized   –     –     –   –   –  
    Additional paid-in capital preferred stock   24,723     29,763     25,043   -16.9 % -1.3 %
    Common stock: no par value, 40,000 shares authorized   –     –     –   0.0 % 0.0 %
    Additional paid-in capital common stock   200,935     200,605     198,923   0.2 % 1.0 %
    Retained earnings   141,853     141,770     135,927   0.1 % 4.4 %
    Accumulated other comprehensive loss   (5,239 )   (5,678 )   (7,491 ) -7.7 % -30.1 %
    Treasury stock, at cost   (38,347 )   (38,347 )   (38,347 ) 0.0 % 0.0 %
    Total Stockholders’ Equity   323,925     328,113     314,055   -1.3 % 3.1 %
               
    Total Liabilities and Stockholders’ Equity $ 3,599,118   $ 3,613,770   $ 3,832,397   -0.4 % -6.1 %
               
    Outstanding common shares   17,063     17,048     16,904      
      Three Months Ended December 31,
        2024       2023  
      Average Balance Interest Earned/Paid Average Yield/Rate (3)   Average Balance Interest Earned/Paid Average Yield/Rate (3)
      (Dollars in thousands)
    Interest-earning assets:              
    Loans Receivable(4)(5) $ 3,081,846   $ 41,431   5.38 %   $ 3,311,946   $ 43,893   5.30 %
    Investment Securities   110,447     1,451   5.26 %     93,638     1,284   5.48 %
    Other Interest-earning assets(6)   309,804     3,771   4.87 %     323,064     4,527   5.61 %
    Total Interest-earning assets   3,502,097     46,653   5.33 %     3,728,648     49,704   5.33 %
    Non-interest-earning assets   124,554           124,809      
    Total assets $ 3,626,651         $ 3,853,457      
    Interest-bearing liabilities:              
    Interest-bearing demand accounts $ 551,971   $ 2,682   1.94 %   $ 578,890   $ 2,184   1.51 %
    Money market accounts   380,136     3,184   3.35 %     359,366     2,832   3.15 %
    Savings accounts   254,093     156   0.25 %     288,108     177   0.25 %
    Certificates of Deposit   1,048,341     12,218   4.66 %     1,140,656     13,307   4.67 %
    Total interest-bearing deposits   2,234,541     18,240   3.27 %     2,367,020     18,500   3.13 %
    Borrowed funds   508,113     6,219   4.90 %     622,860     7,282   4.68 %
    Total interest-bearing liabilities   2,742,654     24,459   3.57 %     2,989,880     25,782   3.45 %
    Non-interest-bearing liabilities   560,345           557,156      
    Total liabilities   3,302,999           3,547,036      
    Stockholders’ equity   323,652           306,420      
    Total liabilities and stockholders’ equity $ 3,626,651         $ 3,853,457      
    Net interest income   $ 22,194         $ 23,922    
    Net interest rate spread(1)     1.76 %       1.88 %
    Net interest margin(2)     2.53 %       2.57 %
                   
    (1) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities.
    (2) Net interest margin represents net interest income divided by average total interest-earning assets.
    (3) Annualized.
    (4) Excludes allowance for credit losses.
    (5) Includes non-accrual loans.
    (6) Includes Federal Home Loan Bank of New York Stock.
      Year Ended December 31,
        2024       2023  
      Average Balance Interest Earned/Paid Average Yield/Rate (3)   Average Balance Interest Earned/Paid Average Yield/Rate (3)
      (Dollars in thousands)
    Interest-earning assets:              
    Loans Receivable(4)(5) $ 3,196,538   $ 172,046   5.38 %   $ 3,281,334   $ 169,559   5.17 %
    Investment Securities   99,733     5,331   5.35 %     100,000     5,106   5.11 %
    Other interest-earning assets(6)   308,248     16,632   5.40 %     270,659     13,695   5.06 %
    Total Interest-earning assets   3,604,519     194,009   5.38 %     3,651,993     188,360   5.16 %
    Non-interest-earning assets   124,441           123,652      
    Total assets $ 3,728,960         $ 3,775,645      
    Interest-bearing liabilities:              
    Interest-bearing demand accounts $ 553,013   $ 9,701   1.75 %   $ 658,023   $ 8,426   1.28 %
    Money market accounts   372,205     12,457   3.35 %     334,353     8,489   2.54 %
    Savings accounts   264,430     620   0.23 %     305,778     620   0.20 %
    Certificates of Deposit   1,153,235     55,442   4.81 %     980,617     39,157   3.99 %
    Total interest-bearing deposits   2,342,883     78,220   3.34 %     2,278,771     56,692   2.49 %
    Borrowed funds   511,916     23,768   4.64 %     594,564     27,606   4.64 %
    Total interest-bearing liabilities   2,854,799     101,988   3.57 %     2,873,335     84,298   2.93 %
    Non-interest-bearing liabilities   554,037           602,691      
    Total liabilities   3,408,836           3,476,026      
    Stockholders’ equity   320,124           299,618      
    Total liabilities and stockholders’ equity $ 3,728,960         $ 3,775,644      
    Net interest income   $ 92,021         $ 104,062    
    Net interest rate spread(1)     1.81 %       2.22 %
    Net interest margin(2)     2.55 %       2.85 %
                   
    (1) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities.
    (2) Net interest margin represents net interest income divided by average total interest-earning assets.
    (3) Annualized.
    (4) Excludes allowance for credit losses.
    (5) Includes non-accrual loans.
    (6) Includes Federal Home Loan Bank of New York Stock.
      Financial Condition data by quarter
      Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023
               
      (In thousands, except book values)
    Total assets $ 3,599,118   $ 3,613,770   $ 3,793,941   $ 3,849,195   $ 3,832,397  
    Cash and cash equivalents   317,282     243,123     326,870     352,448     279,523  
    Securities   111,189     108,302     94,965     96,189     96,862  
    Loans receivable, net   2,996,259     3,087,914     3,161,925     3,226,877     3,279,708  
    Deposits   2,750,858     2,724,580     2,935,239     2,991,659     2,979,080  
    Borrowings   498,322     533,466     510,710     510,573     510,435  
    Stockholders’ equity   323,925     328,113     320,732     320,131     314,055  
    Book value per common share1 $ 17.54   $ 17.50   $ 17.17   $ 17.24   $ 17.10  
    Tangible book value per common share2 $ 17.23   $ 17.19   $ 16.86   $ 16.93   $ 16.79  
               
      Operating data by quarter
      Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023
      (In thousands, except for per share amounts)
    Net interest income $ 22,194   $ 23,045   $ 23,639   $ 23,143   $ 23,922  
    Provision for credit losses   4,154     2,890     2,438     2,088     1,927  
    Non-interest income (loss)   938     3,127     (3,234 )   2,109     3,228  
    Non-interest expense   14,367     13,929     13,987     14,838     16,568  
    Income tax expense   1,339     2,685     1,163     2,460     2,593  
    Net income $ 3,272   $ 6,668   $ 2,817   $ 5,866   $ 6,062  
    Net income per diluted share $ 0.16   $ 0.36   $ 0.14   $ 0.32   $ 0.35  
    Common Dividends declared per share $ 0.16   $ 0.16   $ 0.16   $ 0.16   $ 0.16  
               
      Financial Ratios(3)
      Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023
    Return on average assets   0.36 %   0.72 %   0.30 %   0.61 %   0.63 %
    Return on average stockholders’ equity   4.04 %   8.29 %   3.52 %   7.46 %   7.91 %
    Net interest margin   2.53 %   2.58 %   2.60 %   2.50 %   2.57 %
    Stockholders’ equity to total assets   9.00 %   9.08 %   8.45 %   8.32 %   8.19 %
    Efficiency Ratio4   62.11 %   53.22 %   68.55 %   58.76 %   61.02 %
               
      Asset Quality Ratios
      Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023
      (In thousands, except for ratio %)
    Non-Accrual Loans $ 44,708   $ 35,330   $ 32,448   $ 22,241   $ 18,783  
    Non-Accrual Loans as a % of Total Loans   1.48 %   1.13 %   1.01 %   0.68 %   0.57 %
    ACL as % of Non-Accrual Loans   77.8 %   98.2 %   108.6 %   155.4 %   178.9 %
    Individually Analyzed Loans   83,399     66,048     60,798     65,731     54,019  
    Classified Loans   152,714     98,316     87,033     97,739     85,727  
               
    (1) Calculated by dividing stockholders’ equity, less preferred equity, to shares outstanding.
    (2) Calculated by dividing tangible stockholders’ common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders’ common equity is stockholders’ equity less goodwill and preferred stock. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.”
    (3) Ratios are presented on an annualized basis, where appropriate.
    (4) The Efficiency Ratio, a non-GAAP measure, was calculated by dividing non-interest expense by the total of net interest income and non-interest income. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.”
      Recorded Investment in Loans Receivable by quarter
      Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023
      (In thousands)
    Residential one-to-four family $ 239,870   $ 241,050   $ 242,706   $ 244,762   $ 248,295  
    Commercial and multi-family   2,246,677     2,296,886     2,340,385     2,392,970     2,434,115  
    Construction   135,434     146,471     173,207     180,975     192,816  
    Commercial business   342,799     371,365     375,355     378,073     372,202  
    Home equity   66,769     67,566     66,843     65,518     66,331  
    Consumer   2,235     2,309     2,053     2,847     3,643  
      $ 3,033,784   $ 3,125,647   $ 3,200,549   $ 3,265,145   $ 3,317,402  
    Less:          
    Deferred loan fees, net   (2,736 )   (3,040 )   (3,381 )   (3,705 )   (4,086 )
    Allowance for credit losses   (34,789 )   (34,693 )   (35,243 )   (34,563 )   (33,608 )
               
    Total loans, net $ 2,996,259   $ 3,087,914   $ 3,161,925   $ 3,226,877   $ 3,279,708  
               
      Non-Accruing Loans in Portfolio by quarter
      Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023
      (In thousands)
    Residential one-to-four family $ 1,387   $ 410   $ 350   $ 429   $ 270  
    Commercial and multi-family   32,973     27,693     27,796     12,627     8,684  
    Construction   586     586     586     3,225     4,292  
    Commercial business   10,530     6,498     3,673     5,916     5,491  
    Home equity   231     123     43     44     46  
    Consumer   –     20     –     –     –  
    Total: $ 45,707   $ 35,330   $ 32,448   $ 22,241   $ 18,783  
               
      Distribution of Deposits by quarter
      Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023
      (In thousands)
    Demand:          
    Non-Interest Bearing $ 520,387   $ 528,089   $ 523,816   $ 531,112   $ 536,264  
    Interest Bearing   553,731     527,862     549,239     552,295     564,912  
    Money Market   395,004     366,655     371,689     361,791     370,934  
    Sub-total: $ 1,469,122   $ 1,422,606   $ 1,444,744   $ 1,445,198   $ 1,472,110  
    Savings and Club   252,491     255,115     258,680     272,051     284,273  
    Certificates of Deposit   1,029,245     1,046,859     1,231,815     1,274,410     1,222,697  
    Total Deposits: $ 2,750,858   $ 2,724,580   $ 2,935,239   $ 2,991,659   $ 2,979,080  
      Reconciliation of GAAP to Non-GAAP Financial Measures by quarter
               
      Tangible Book Value per Share
      Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023
      (In thousands, except per share amounts)
    Total Stockholders’ Equity $ 323,925   $ 328,113   $ 320,732   $ 320,131   $ 314,055  
    Less: goodwill   5,253     5,253     5,253     5,253     5,253  
    Less: preferred stock   24,723     29,763     28,403     27,733     25,043  
    Total tangible common stockholders’ equity   293,949     293,097     287,076     287,145     283,759  
    Shares common shares outstanding   17,063     17,048     17,029     16,957     16,904  
    Book value per common share $ 17.54   $ 17.50   $ 17.17   $ 17.24   $ 17.10  
    Tangible book value per common share $ 17.23   $ 17.19   $ 16.86   $ 16.93   $ 16.79  
               
      Efficiency Ratios
      Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023
      (In thousands, except for ratio %)
    Net interest income $ 22,194   $ 23,045   $ 23,639   $ 23,143   $ 23,922  
    Non-interest income (loss)   938     3,127     (3,234 )   2,109     3,228  
    Total income   23,132     26,172     20,405     25,252     27,150  
    Non-interest expense   14,367     13,929     13,987     14,838     16,568  
    Efficiency Ratio   62.11 %   53.22 %   68.55 %   58.76 %   61.02 %
    CONTACT: MICHAEL SHRINER,
      PRESIDENT & CEO
      JAWAD CHAUDHRY,
      EVP & CFO
      (201) 823-0700

    The MIL Network –

    January 29, 2025
  • MIL-OSI: Sky Quarry Unveils National Rollout Plan for Modular Extraction Facilities

    Source: GlobeNewswire (MIL-OSI)

    Tailored for Strategic Scalability and Cost Efficiency for Production of Sellable Byproducts for Local and Regional Markets

    WOODS CROSS, Utah, Jan. 28, 2025 (GLOBE NEWSWIRE) — Sky Quarry Inc. (NASDAQ: SKYQ) (“Sky Quarry” or the “Company”), an integrated energy solutions company committed to revolutionizing the waste asphalt shingle recycling industry, has unveiled plans for a national rollout of modular facilities designed to expand the reach and scalability of the Company’s proprietary technology and platform, demonstrating its commitment to innovation, operational efficiency, and long-term growth.

    With downstream operations established at its Nevada refinery and midstream operations at its extraction facility in Utah expected to be fully operational in 2025, the Company is finalizing its plan to expand its upstream capabilities through the deployment of its Asphalt Shingle Recycling (ASR) units. Engineered for scalability and cost efficiency, these units will collect and process waste asphalt shingles, while producing sellable byproducts, such as sand and granules, for local and regional markets, expanding the Company’s market reach.

    The placement of the ASR units will be chosen based on three critical logistical criteria:

    1. Proximity to densely populated areas to minimize transportation costs, thereby reducing the environmental impact,
    2. Placement in regions with high tipping fees to maximize economic returns, and
    3. Accessibility to rail lines to streamline raw and processed material transport.

    The plan features two modular designs: Resource Processing Units and Resource Extraction Units. The Resource Processing Units will process waste shingle material by reducing its size, extracting sand and granules, and compressing the remaining limestone powder and bitumen into briquettes for shipment to Utah for final extraction. This process decreases the asphalt waste material’s volume by 40%, lowering transportation costs. These units are 80% complete and will target the West Coast and Southwest, with costs estimated to be between $500,000 and $1.5 million per unit, depending on capacity.

    The Resource Extraction units will have oil extraction capabilities for local use by refineries or asphalt plants, ideal for areas where shipping shingles to Utah is not feasible. Currently in the design phase, these units are being developed to target the East Coast, Florida, Texas, and the Midwest. Each extraction facility, costing an estimated $12 million to build, is expected to recover its initial capital cost within 24 to 36 months after it is fully operational through revenues and profits generated from tipping fees and the sale of recovered materials at each facility.

    In response to tightening landfill disposal mandates and increasing state requirements for construction and demolition waste diversion, Sky Quarry believes that its modular units position the Company as one of the few viable solutions for managing this material. This could potentially allow for higher waste management fees, and the Company believes that evolving regulations will further support this growth. To meet the disposal mandates and increased diversion demand, a limited number of exclusive modular partnership opportunities will be made available for qualified candidates on a first-come basis. Please direct inquiries to: tomzickell@ras-tech.com

    “We believe Sky Quarry’s modular ASR facilities will offer significant economic, environmental, and community benefits,” said David Sealock, CEO and Chairman of Sky Quarry. “By enabling partnerships with local businesses and asphalt shingle manufacturers, these facilities will create a closed-loop system that promotes sustainability, reduces waste, and minimizes reliance on virgin materials and transportation costs. Additionally, the sale of recovered materials such as sand, granules, and bitumen have the potential to stimulate regional economic growth while creating meaningful job opportunities.”

    About Sky Quarry Inc.

    Sky Quarry Inc. (NASDAQ: SKYQ) and its subsidiaries are, collectively, an oil production, refining, and a development-stage environmental remediation company formed to deploy technologies to facilitate the recycling of waste asphalt shingles and remediation of oil-saturated sands and soils. Our waste-to-energy mission is to repurpose and upcycle millions of tons of asphalt shingle waste, diverting them from landfills. By doing so, we can contribute to improved waste management, promote resource efficiency, conserve natural resources, and reduce environmental impact. For more information, please visit skyquarry.com.

    Forward-Looking Statements

    This press release may include “forward-looking statements.” All statements pertaining to our future financial and/or operating results, future events, or future developments may constitute forward-looking statements. The statements may be identified by words such as “expect,” “look forward to,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project,” or words of similar meaning. Such statements are based on the current expectations and certain assumptions of our management, of which many are beyond our control. These are subject to a number of risks, uncertainties, and factors, including but not limited to those described in our disclosures. Should one or more of these risks or uncertainties materialize or should underlying expectations not occur or assumptions prove incorrect, actual results, performance, or our achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. We neither intend, nor assume any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. You are urged to carefully review and consider any cautionary statements and the Company’s other disclosures, including the statements made under the heading “Risk Factors” and elsewhere in the Company’s Form 1-A offering statement filed with the SEC. Forward-looking statements speak only as of the date of the document in which they are contained.

    Investor Relations

    Chris Tyson
    Executive Vice President
    MZ Group – MZ North America
    949-491-8235
    SKYQ@mzgroup.us
    www.mzgroup.us

    Corporate Contact

    Jennifer Standley
    Director of Investor Relations
    Ir@skyquarry.com

    Company Website
    www.skyquarry.com

    The MIL Network –

    January 29, 2025
  • MIL-OSI: QXO Comments on Beacon Roofing Supply’s Adoption of Shareholder-Unfriendly Poison Pill

    Source: GlobeNewswire (MIL-OSI)

    Reaffirms Commitment to Acquiring Beacon for $124.25 per Share in Cash

    All-Cash Offer Provides Significant and Immediate Value to Beacon Shareholders

    GREENWICH, Conn., Jan. 28, 2025 (GLOBE NEWSWIRE) — QXO, Inc. (NYSE: QXO) today commented on Beacon Roofing Supply, Inc.’s (Nasdaq: BECN) adoption of a shareholder rights plan, which takes immediate effect and is aimed at blocking QXO’s all-cash tender offer to acquire all outstanding shares of Beacon for $124.25 per share.

    “We launched our all-cash tender offer to ensure that Beacon’s shareholders can take advantage of our compelling offer and get paid quickly. We have committed financing, have no due diligence condition and anticipate a smooth regulatory approval process to close,” said Brad Jacobs, chairman and chief executive officer of QXO. “The only thing stopping shareholders from acting to get cash expeditiously is the decision by Beacon’s Board to adopt a poison pill. We are prepared to take all necessary steps to complete this transaction promptly and deliver significant and immediate value to Beacon shareholders.”

    QXO’s $124.25 per share offer represents a 37% premium to Beacon’s 90-day unaffected volume-weighted average price of $91.02 per share as of November 15, 2024, and a 26% premium to the $98.75 price before its proposal became public.

    QXO’s tender offer will be outstanding until 12:00 midnight, New York City time, at the end of February 24, 2025, and it is prepared to complete the acquisition shortly after the tender expires, in approximately one month. The transaction is not subject to any financing conditions or due diligence conditions, and QXO expects that the waiting periods under the Hart-Scott-Rodino Act and the Canadian Competition Act will have expired or been waived by the time the tender offer expires.

    Morgan Stanley & Co. LLC is acting as financial advisor to QXO, and Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel.

    About QXO

    QXO provides technology solutions, primarily to clients in the manufacturing, distribution and service sectors. The company provides consulting and professional services, including specialized programming, training and technical support, and develops proprietary software. As a value-added reseller of business application software, QXO offers solutions for accounting, financial reporting, enterprise resource planning, warehouse management systems, customer relationship management, business intelligence and other applications. QXO plans to become a tech-forward leader in the $800 billion building products distribution industry. The company is targeting tens of billions of dollars of annual revenue in the next decade through accretive acquisitions and organic growth. Visit QXO.com for more information.

    Forward-Looking Statements

    The communication contains forward-looking statements. Statements that are not historical facts, including statements about beliefs, expectations, targets, goals, regulatory approval timing and nominating directors are forward-looking statements. These statements are based on plans, estimates, expectations and/or goals at the time the statements are made, and readers should not place undue reliance on them. In some cases, readers can identify forward-looking statements by the use of forward-looking terms such as “may,” “will,” “should,” “expect,” “opportunity,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “target,” “goal,” or “continue,” or the negative of these terms or other comparable terms. Forward-looking statements involve inherent risks and uncertainties and readers are cautioned that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statements. Such factors include but are not limited to: the ultimate outcome of any possible transaction between QXO and Beacon including the possibility that the parties will not agree to pursue a business combination transaction or that the terms of any definitive agreement will be materially different from those proposed; uncertainties as to whether Beacon will cooperate with QXO regarding the proposed transaction; the ultimate result should QXO’s commence a proxy contest for election of directors to Beacon’s board of directors; QXO’s ability to consummate the proposed transaction with Beacon; the conditions to the completion of the proposed transaction, including the receipt of any required shareholder approvals and any required regulatory approvals; QXO’s ability to finance the proposed transaction; QXO’s indebtedness, including the substantial indebtedness QXO expects to incur in connection with the proposed transaction with Beacon and the need to generate sufficient cash flows to service and repay such debt; that operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers or suppliers) may be greater than expected following the proposed transaction or the public announcement of the proposed transaction; the retention of certain key employees may be difficult; and general economic conditions that are less favorable than expected. QXO cautions that forward-looking statements should not be relied on as predictions of future events, and these statements are not guarantees of performance or results. Forward-looking statements herein speak only as of the date each statement is made. QXO does not assume any obligation to update any of these statements in light of new information or future events, except to the extent required by applicable law.

    Important Additional Information and Where to Find It

    This communication is for informational purposes only and does not constitute a recommendation, an offer to purchase or a solicitation of an offer to sell Beacon securities. QXO and Queen MergerCo, Inc. (the “Purchaser”) filed a Tender Offer Statement on Schedule TO with the SEC on [DATE], 2025, and Beacon will file a Solicitation/Recommendation Statement on Schedule 14D-9 with respect to the tender offer with the SEC. Investors and security holders are urged to read the Tender Offer Statement (including the Offer to Purchase, the related Letter of Transmittal and certain other tender offer documents, as each may be amended or supplemented from time to time) and the Solicitation/Recommendation Statement, when available, carefully since they contain important information that investors and security holders should consider before making any decision regarding tendering their common stock, including the terms and conditions of the tender offer. The Tender Offer Statement, Offer to Purchase, Solicitation/Recommendation Statement and related materials are filed with the SEC, and investors and security holders may obtain a free copy of these materials and other documents filed by QXO and Beacon with the SEC at the website maintained by the SEC at www.sec.gov. In addition, the Tender Offer Statement and other documents that QXO and the Purchaser file with the SEC will be made available to all investors and security holders of Beacon free of charge from the information agent for the tender offer. The information agent for the tender offer is Innisfree M&A Incorporated, 501 Madison Avenue, 20th Floor, New York, NY 10022, Toll-free telephone: +1 (888) 750-5834.

    QXO and the other participants intend to file a preliminary proxy statement and accompanying WHITE universal proxy card with the SEC to be used to solicit proxies for, among other matters, the election of its slate of director nominees at the 2025 annual meeting of stockholders of Beacon. QXO strongly advises all stockholders of Beacon to read the preliminary proxy statement, any amendments or supplements to such proxy statement, and other proxy materials filed by QXO with the SEC as they become available because they will contain important information. Such proxy materials will be available at no charge on the SEC’s website at www.sec.gov and at QXO’s website at investors.qxo.com. In addition, the participants in this proxy solicitation will provide copies of the proxy statement, and other relevant documents, without charge, when available, upon request. Requests for copies should be directed to the participants’ proxy solicitor.

    Certain Information Concerning the Participants

    The participants in the proxy solicitation are anticipated to be QXO, Brad Jacobs, Ihsan Essaid, Matt Fassler, Mark Manduca and the individuals nominated by QXO (the “QXO Nominees”). QXO expects to determine and announce the QXO Nominees prior to the nomination deadline for the 2025 annual meeting of stockholders of Beacon.  As of the issuance of this communication, other than QXO, which beneficially owns 100 shares of Beacon common stock, none of the participants that have been identified beneficially own any shares of Beacon common stock.

    Media Contacts
    Joe Checkler
    joe.checkler@qxo.com
    203-609-9650

    Steve Lipin / Lauren Odell
    Gladstone Place Partners
    212-230-5930

    Investor Contacts ‍

    Mark Manduca
    mark.manduca@qxo.com
    203-321-3889

    Scott Winter / Jonathan Salzberger
    Innisfree M&A Incorporated
    212-750-5833

    The MIL Network –

    January 29, 2025
  • MIL-OSI Economics: AuraSwiss: BaFin also warns consumers about the website auraswiss.co

    Source: Bundesanstalt für Finanzdienstleistungsaufsicht – In English

    The Federal Financial Supervisory Authority (BaFin) again warns consumers about the company AuraSwiss and the services it is offering. BaFin has already issued a warning, on 3 January 2025, about AuraSwiss and its website auraswiss.net, which has since been deactivated. The unknown operators are now using the nearly identical website auraswiss.co. BaFin suspects the operators of the websites of offering consumers financial, investment and cryptoasset services without the required authorisation.

    The content of the websites is identical to other platforms that BaFin has previously warned consumers about and that display the same opening sentence: “Invest in Success Prosper with Confidence!”

    Anyone conducting banking business or providing financial, investment or cryptoasset services in Germany may do so only with authorisation from BaFin. However, some companies offer these services without the necessary authorisation. Information on whether a particular company has been granted authorisation by BaFin can be found in BaFin’s database of companies.

    BaFin is issuing this information on the basis of section 37 (4) of the German Banking Act (Kreditwesengesetz – KWG) and section 10 (7) of the German Cryptomarkets Supervision Act (Kryptomaerkteaufsichtsgesetz).

    Please be aware:

    BaFin, the German Federal Criminal Police Office (Bundeskriminalamt – BKA) and the German state criminal police offices (Landeskriminalämter) recommend that consumers seeking to invest money online should exercise the utmost caution and do the necessary research beforehand in order to identify fraud attempts at an early stage.

    MIL OSI Economics –

    January 29, 2025
  • MIL-OSI United Kingdom: Budget agreements secured

    Source: Scottish Government

    New funding for bus fares, drug services and free school meals.

    Agreements have been reached separately with the Scottish Liberal Democrats and Scottish Green Party to support the 2025-26 Budget.

    Finance Secretary Shona Robison has announced she will table amendments to the 2025-26 Budget Bill to allocate £16.7 million funding to:
    • Bolster drug and alcohol services, including £1 million for specialist support for babies born addicted to drugs
    • Begin a £2 bus fare cap pilot in one regional transport area
    • Further strengthen support for hospices from £4 million to £5 million
    • Increase Nature Restoration by £3 million to its highest ever level
    • Invest in targeted support for the College sector and protect Corseford College
    • Extend free school meal eligibility in S1-S3 in eight local authority areas for pupils in receipt of Scottish Child Payment
    • Offer flexibility for Orkney Island Council in terms of capital and resource funding

    Ms Robison said:

    “We are determined to deliver on the issues that matter most to the people of Scotland – and that is why this Budget invests in public services and in eradicating child poverty, acts in the face of the climate emergency, and supports jobs.

    “The First Minister was clear that we would bring forward a budget by Scotland for Scotland, and the negotiations we have taken forward have been in that spirit. These additional initiatives demonstrate the value of a progressive approach and dialogue.

    “During every stage of this process the Liberal Democrats and the Greens have engaged in our discussions in a positive and constructive manner.

    “Through seeking compromise I believe we are delivering a budget that will strengthen services and support our communities. With the agreements with these two parties now in place this will secure a majority in parliament in support of the Budget Bill.”

    Background

    Finance Secretary letter to Finance and Public Administration Committee

    Budget (Scotland) Bill

    The new initiatives will be funded through reallocation of funding for debt servicing in 2025-26, given that debt servicing costs will be lower than expected when the draft Budget was published; and an additional drawdown of £3 million from revenues raised from Scotwind, to support nature restoration.

    MIL OSI United Kingdom –

    January 29, 2025
  • MIL-OSI: Angus Gold Extends New High-Gold Zone at Dorset West, Intersects 3.2 g/t Au over 13.7 metres including 16.2 g/t Au over 2.0 metres, Golden Sky Project, Wawa

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Jan. 28, 2025 (GLOBE NEWSWIRE) — Angus Gold Inc. (TSX-V: GUS | OTC: ANGVF) (“Angus” or the “Company”) is pleased to announce assay results from eleven (11) exploration holes that were completed on the Dorset Zone as part of its 2024 Fall drilling program at the Golden Sky Project in Wawa, Ontario. The new high-grade gold zone on Dorset’s west end, where Angus previously intersected 7.0 g/t Au over 12.4 metres in Hole GS-24-136, approximately 500 metres to the west of the historical Dorset resource (see News Release of May 7, 2024), is now defined over 100 metres of strike length. In addition, with these drilling results, the Dorset Gold Zone has now been intersected along 2 kilometres of strike length.

    Highlights:

    • High-Grade Dorset West gold mineralization is now defined over 100m of strike length:
      • 13.7 metres of mineralization grading 3.2 g/t Au, including 2.0 metres of 16.2 g/t Au in Hole GS24-171;
      • 8.0 metres of mineralization grading 1.6 g/t Au, including 2.9 metres of 3.9 g/t Au in Hole GS24-172;
      • 2.1 metres of mineralization grading 5.3 g/t Au, in Hole GS24-173;
      • 9.1 metres of mineralization grading 4.3 g/t Au, including 3.7 metres of 7.2 g/t Au in Hole GS24-179
    • Dorset Gold Trend now defined for 2 kilometres of strike length of continuous mineralization.
    • 15,000 metres of drilling planned for the Golden Sky Project in 2025.
    • Fully funded 2025 exploration budget.

    Breanne Beh, Chief Executive Officer of Angus, states: “We are extremely pleased with the continued delivery of step-out results from our new high-grade Dorset West Zone. We have now defined this new zone over 100m of strike-length and are excited to be returning to the area to begin our 2025 drilling campaign, announced on January 14, 2025. The Dorset Gold Trend has grown from 750 metres of strike length to 2 kilometres since Angus acquired the project in 2020. We continue to be encouraged with the consistency of the mineralization and look forward to expanding the zone as we continue to explore the entirety of the 7.0 kilometres of potential strike length of the shear zone that hosts the Dorset Deposit.”

    The goal of the Dorset West fall drill program was to complete step-out holes to the east and west of the high-grade intercept of 7.0 g/t Au over 12.4 metres in Hole GS-24-136. Eleven (11) holes were completed, eight (8) of which returned gold intersections and three (3) of which hosted visible gold. The most notable intercepts were in GS-24-171 and GS-24-179. GS-24-171, a 50-metre step-out to the west of GS-24-136, returned 13.7 metres grading 3.2 g/t Au including 2.0 metres of 16.2 g/t Au. GS-24-179, a 75m step-out west of GS-24-136, returned 9.1 metres grading 4.3 g/t Au including 3.7 metres grading 7.2 g/t Au.   The gold mineralization in both of these holes was hosted in quartz veins within a metasedimentary rock package, the same geologic setting as the mineralization in GS-24-136. These results begin to show consistency in this new high-grade zone that is completely open to the west with minimal historic drilling completed along the structural corridor for 2 kilometres.

    Selected drill results from the 11 holes at the Golden Sky drilling program are, as follows:  

    Hole Number From (m) To (m) Length (m) Au g/t Area
    GS-24-171 121.9 122.7 0.8 2.2 Dorset West
    GS-24-171 209.2 222.9 13.7 3.2
    including 220.9 222.9 2.0 16.2
    GS-24-171 252.7 255.0 2.3 1.7
    GS-24-172 86.1 90.1 4.0 1.1 Dorset West
    including 87.10 87.60 0.5 2.3
    GS-24-172 244.0 252.0 8.0 1.6
    including 247.7 250.6 2.9 3.9
    GS-24-173 221.9 224.0 2.1 5.3 Dorset West
    GS-24-176 187.7 188.6 0.9 5.3 Dorset West
    GS-24-176 200.5 201.5 1.0 8.2
    GS-24-179 105.9 106.4 0.5 2.2 Dorset West
    GS-24-179 204.0 213.1 9.1 4.3
    including 208.0 211.7 3.7 7.2

    (1) Assay results presented over core length. Additional drilling will be necessary to constrain the true width of the mineralized envelope of the gold system.

    The 2025 drilling campaign at the Golden Sky project is planned to be 15,000 metres and will test targets along the Dorset Zone mineralized structural corridor in addition to the BIF Gold Zone and the Eagle River Splay exploration area.

    Figure 1: Dorset West Fall 2024 Drill Results Map

    Figure 2: Dorset Structural Corridor Map

    The Golden Sky Project
    The 100%-owned Golden Sky Project is located within the Mishibishu Lake Greenstone Belt of Northern Ontario, which is host to Wesdome’s high-grade Eagle River and the Mishi open-pit gold mines. The Company’s 290-square-kilometres land package is located approximately 50 kilometres west of the town of Wawa and is situated immediately between the two Wesdome mines.

    The ongoing drill program on the Golden Sky Project is focused on the Dorset Gold Zone, which hosts a historic gold resource; the BIF Zone, a new gold zone discovery in a large banded iron formation; as well as the Eagle River Splay deformation zone, which shows potential for another extensive gold system. Angus’ drill programs on the near-surface Dorset Gold Zone have been successful at extending the strike length of the previously modelled zone from 750 metres to 1.7 kilometres. The Dorset Gold Zone historic estimated resource (using a 0.50 g/t Au cut-off) consists of an indicated resource of 40,000 ounces of gold (780,000 tonnes grading 1.4 g/t Au), and an inferred resource of 180,000 ounces of gold (4,760,000 tonnes grading 1.2 g/t Au). For greater details on the Golden Sky Project, please refer to the NI 43-101 technical report for the Golden Sky Project entitled, ’NI 43-101 Technical Report Wawa Property Ontario, Canada’ dated February 18, 2020, and available on the Company’s SEDAR profile.

    Qualified Person
    The scientific and technical content of this press release has been reviewed and approved by Breanne Beh, P.Geo, who is a “Qualified Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and Chief Geologist for the Company.

    Quality Control
    During the last drilling program, assay samples were taken from the NQ core by sawing the drill core in half, with one-half sent to a certified commercial laboratory and the other half retained for future reference. A strict QA/QC program was applied to all samples; which includes insertion of mineralized standards and blank samples for each batch of 20 samples. The gold analyses were completed by fire-assay with an atomic absorption finish on 50 grams of materials. Repeats were carried out by fire-assay followed by gravimetric testing on each sample containing 3.0 g/t gold or more.

    About Angus Gold:
    Angus Gold Inc. is a Canadian mineral exploration company focused on the acquisition, exploration, and development of highly prospective gold properties. The Company’s flagship project is the Golden Sky Project in Wawa, Ontario. The Project is immediately adjacent to the Eagle River Mine of Wesdome Gold Mines Ltd. 

    On behalf of Angus Gold Inc.,

    Breanne Beh
    President and Chief Executive Officer

    INQUIRIES:
    Lindsay Dunlop, Vice President Investor Relations
    Email: info@angusgold.com
    Phone: 647-259-1790
    Company Website: www.angusgold.com

    TSXV: GUS | USOTC: ANGVF

    Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

    Forward-Looking Statements

    This News Release includes certain “forward-looking statements” which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company’s objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: the ability to anticipate and counteract the effects of COVID-19 pandemic on the business of the Company, including without limitation the effects of COVID-19 on the capital markets, commodity prices supply chain disruptions, restrictions on labour and workplace attendance and local and international travel, failure to receive requisite approvals in respect of the transactions contemplated by the Agreement, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

    Figures accompanying this announcement are available at:
    https://www.globenewswire.com/NewsRoom/AttachmentNg/5f6f7570-eb7e-4755-9872-9285c63d2fac
    https://www.globenewswire.com/NewsRoom/AttachmentNg/db616132-c341-48ef-b341-7bc6280b6078

    The MIL Network –

    January 29, 2025
  • MIL-OSI: Purpose Investments Inc. Announces Final January 2025 Distribution Rate for Purpose High Interest Savings Fund, Purpose US Cash Fund, Purpose Cash Management Fund, and Purpose USD Cash Management Fund

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Jan. 28, 2025 (GLOBE NEWSWIRE) — Purpose Investments Inc. announced today the final January 2025 distribution rates for Purpose High Interest Savings Fund, Purpose US Cash Fund, Purpose Cash Management Fund, and Purpose USD Cash Management Fund.

    The following table reflects the final distribution amounts for the month of December. Ex-distribution date is January 29, 2025.

    Open-End Fund Ticker Symbol Final distribution per unit Record Date Payable Date Distribution Frequency
    Purpose USD Cash Management Fund – ETF Units MNU.U US $ 0.3689 01/29/2025 02/04/2025 Monthly
    Purpose Cash Management Fund – ETF Units MNY $0.3003 01/29/2025 02/04/2025 Monthly
    Purpose High Interest Savings Fund – ETF Units PSA $0.1286 01/29/2025 02/04/2025 Monthly
    Purpose US Cash Fund – ETF Units PSU.U US $ 0.3464 01/29/2025 02/04/2025 Monthly

    About Purpose Investments Inc.

    Purpose Investments Inc. is an asset management company with more than $23 billion in assets under management. Purpose Investments has an unrelenting focus on client-centric innovation and offers a range of managed and quantitative investment products. Purpose Investments is led by well-known entrepreneur Som Seif and is a division of Purpose Unlimited, an independent technology-driven financial services company.

    For further information, please contact:
    Keera Hart
    Keera.Hart@kaiserpartners.com
    905-580-1257

    Commissions, trailing commissions, management fees, and expenses may all be associated with investment fund investments. Please read the prospectus and other disclosure documents before investing. Investment funds are not covered by the Canada Deposit Insurance Corporation or any other government deposit insurer. There can be no assurance that the full amount of your investment in a fund will be returned to you. If the securities are purchased or sold on a stock exchange, you may pay more or receive less than the current net asset value. Investment funds are not guaranteed; their values change frequently, and past performance may not be repeated.

    The MIL Network –

    January 29, 2025
  • MIL-OSI: CareCloud to Present at The Microcap Conference 2025

    Source: GlobeNewswire (MIL-OSI)

    Somerset, NJ, Jan. 28, 2025 (GLOBE NEWSWIRE) — CareCloud, Inc. (the “Company”) (Nasdaq: CCLD, CCLDO, CCLDP), a leading provider of healthcare technology and generative AI solutions for medical practices and health systems nationwide, is pleased to announce its participation in The Microcap Conference 2025, the premier event for growth-focused companies and investors. The conference will take place January 28-30, 2025 at the Borgata Hotel Spa & Casino in Atlantic City, NJ.

    CareCloud’s management team will deliver a corporate presentation highlighting the Company’s recent developments, innovative solutions, and strategic growth initiatives. Additionally, the team will participate in one-on-one meetings with institutional and individual investors to explore opportunities and discuss CareCloud’s roadmap for continued growth and value creation.

    “We are excited to discuss CareCloud’s many recent milestones, including the imminent resumption of our Preferred Stock dividends in February 2025, the overwhelming support we received from shareholders in our most recent proxy to increase our authorized common shares, and our strong profitability growth during 2024,” said Stephen Snyder, Co-CEO of CareCloud. “These achievements, together with our stock performance over the last year, reflect investor confidence in our strategy and execution.”

    About The Microcap Conference 2025

    The Microcap Conference is the largest independent microcap event in the U.S., bringing together top-tier investors and executives from growth-oriented companies. The event provides an unparalleled platform for companies to showcase their value propositions through corporate presentations, expert panels, and networking opportunities.

    The 2025 conference highlights include:

    • Keynote Speakers: Renowned industry leaders, including Jon Ledecky, Co-Owner of the New York Islanders, and Tom Gardner, CEO of Motley Fool, will share their insights on investing and market trends.
    • Expert Panels and Presentations: Financial commentators Ron Insana (CNBC) and Charlie Gasparino (FOX Business) will cover pressing topics, including capital formation, regulatory updates, and equity market trends.
    • Entertainment Headliner: Comedian and Netflix star Tom Papa will headline an evening performance, adding a touch of entertainment to the event.

    Hosted by DealFlow Events, The Microcap Conference is celebrated for combining high-quality financial insights with engaging networking and entertainment experiences. For more information, visit The Microcap Conference.

    About CareCloud

    CareCloud brings disciplined innovation to the business of healthcare. Our suite of technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 40,000 providers count on CareCloud to help them improve patient care, while reducing administrative burdens and operating costs. Learn more about our products and services, including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), business intelligence, patient experience management (PXM) and digital health at www.carecloud.com.

    To listen to video presentations by CareCloud’s management team, read recent press releases and view our latest investor presentation, please visit ir.carecloud.com.

    Follow CareCloud on LinkedIn, X and Facebook.

    Forward-Looking Statements

    This press release contains various forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “shall,” “should,” “could,” “intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,” “believes,” “seeks,” “estimates,” “forecasts,” “predicts,” “possible,” “potential,” “target,” or “continue” or the negative of these terms or other comparable terminology.

    Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements in this press release include, without limitation, statements reflecting management’s expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, the impact of pandemics on our financial performance and business activities, and the expected results from the integration of our acquisitions.

    These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our (or our industry’s) actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all of the risks and uncertainties that could have an impact on the forward-looking statements, including without limitation, risks and uncertainties relating to the Company’s ability to manage growth, migrate newly acquired customers and retain new and existing customers, maintain cost-effective global operations, increase operational efficiency and reduce operating costs, predict and properly adjust to changes in reimbursement and other industry regulations and trends, retain the services of key personnel, develop new technologies, upgrade and adapt legacy and acquired technologies to work with evolving industry standards, compete with other companies’ products and services competitive with ours, and other important risks and uncertainties referenced and discussed under the heading titled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission.

    The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligations to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

    SOURCE CareCloud

    Company Contact:
    Norman Roth
    Interim Chief Financial Officer and Corporate Controller
    CareCloud, Inc.
    nroth@carecloud.com

    Investor Contact:
    Stephen Snyder
    Co-Chief Executive Officer
    CareCloud, Inc.
    ir@carecloud.com

    The MIL Network –

    January 29, 2025
  • MIL-OSI: Capital City Bank Group, Inc. Reports Fourth Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    TALLAHASSEE, Fla., Jan. 28, 2025 (GLOBE NEWSWIRE) — Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $13.1 million, or $0.77 per diluted share, for the fourth quarter of 2024 compared to $13.1 million, or $0.77 per diluted share, for the third quarter of 2024, and $11.7 million, or $0.70 per diluted share, for the fourth quarter of 2023.

    For the full year of 2024, net income attributable to common shareowners totaled $52.9 million, or $3.12 per diluted share, compared to net income of $52.3 million, or $3.07 per diluted share, for the same period of 2023.

    QUARTER HIGHLIGHTS (4thQuarter 2024 versus 3rdQuarter 2024)

    Income Statement

    • Tax-equivalent net interest income totaled $41.2 million compared to $40.3 million for the prior quarter
      • Net interest margin increased 5 basis points to 4.17% (total deposit costs down 6 basis points partially offset by a 1 basis point decrease in earning asset yield).
    • Stable credit quality metrics and credit loss provision – net loan charge-offs were 25 basis points (annualized) of average loans – allowance coverage ratio was 1.10% at December 31, 2024
    • Noninterest income decreased $0.8 million, or 3.9%, driven by lower mortgage banking revenues
    • Noninterest expense decreased $1.1 million, or 2.7%, primarily due to lower other expense which included a gain from the sale of a banking office

    Balance Sheet

    • Loan balances decreased $16.1 million, or 0.6% (average), and $31.5 million, or 1.2% (end of period)
    • Deposit balances increased $28.4 million, or 0.8% (average), and increased $92.9 million, or 2.6% (end of period), reflective of the seasonal increase in public fund balances
    • Tangible book value per share increased $1.05, or 4.6%, due in part to a favorable year-end re-measurement adjustment for the pension plan ($0.60 per diluted share)

    FULL YEAR 2024 HIGHLIGHTS

    Income Statement

    • Tax-equivalent net interest income totaled $159.2 million for 2024 compared to $159.4 million for 2023 driven by higher yields across our earning assets, partially offset by higher deposit cost which was well controlled at 89 basis points for the year – net interest margin was 4.08% for 2024 compared to 4.05% for 2023
    • Credit quality metrics remained strong throughout the year – allowance coverage ratio remained stable at 1.10% – net loan charge-offs were 21 basis points of average loans for 2024 versus 18 basis points for 2023
    • Noninterest income increased $4.4 million, or 6.1%, driven by higher mortgage banking revenues and wealth management fees
    • Noninterest expense increased $8.3 million, or 5.3%, primarily due to higher compensation expense reflective of higher incentive compensation, merit raises, and higher health insurance costs

    Balance Sheet

    • Loan balances increased $50.1 million, or 1.9% (average), and decreased $82.4 million, or 3.0% (end of period)
    • Deposit balances decreased $72.2 million, or 2.0% (average), and decreased $29.8 million, or 0.8% (end of period)
    • Tangible book value per share increased $3.20, or 15.6%, driven by strong earnings and favorable investment security and pension plan accumulated other comprehensive loss adjustments

    “In 2024, we delivered record earnings and advanced our commitment to creating shareholder value, which is demonstrated by a 15.6% increase in tangible book value per share, a 15.8% increase in the dividend, and the repurchase of 83,000 shares,” said William G. Smith, Jr., President, Chairman and CEO of Capital City Bank Group. “Our associates also earned us recognition for the 12th consecutive year as one of the best banks to work for—an achievement that underscores the strength of our organization and the core values we embrace. We remain focused on soundness, profitability, growth, and making strategic investments that add long-term value. Our fortress balance sheet, diversified revenues, and growth markets together position us well for 2025 and beyond.”

    Discussion of Operating Results

    Net Interest Income/Net Interest Margin

    Tax-equivalent net interest income for the fourth quarter of 2024 totaled $41.2 million, compared to $40.3 million for the third quarter of 2024, and $39.3 million for the fourth quarter of 2023. For 2024, tax-equivalent net interest income totaled $159.2 million compared to $159.4 million for 2023. Compared to the third quarter of 2024, the increase reflected higher investment securities interest due to new investment purchases at higher yields, in addition to lower deposit interest expense, partially offset by lower loan interest due to lower balances. Compared to 2023, the slight decrease reflected an increase in deposit interest expense and a decrease in investment securities interest that was offset by increases in loan interest and overnight funds interest.

    Our net interest margin for the fourth quarter of 2024 was 4.17%, an increase of five basis points over the third quarter of 2024 and an increase of 10 basis points over the fourth quarter of 2023. For the month of December 2024, our net interest margin was 4.18%. For 2024, our net interest margin was 4.08%, an increase of three basis points over 2023. Compared to the third quarter of 2024, the increase reflected higher yield in the investment portfolio driven by new purchases during the quarter, in addition to lower deposit interest expense. The increase over 2023 reflected a combination of earning assets re-pricing at higher interest rates and higher average loan balances, partially offset by a higher cost of deposits. For the fourth quarter of 2024, our cost of funds was 88 basis points, a decrease of five basis points from the third quarter of 2024 and an increase of 15 basis points over the fourth quarter of 2023. Our total cost of deposits (including noninterest bearing accounts) was 86 basis points, 92 basis points, and 66 basis points, respectively, for the same periods.

    Provision for Credit Losses

    We recorded a provision expense for credit losses of $0.7 million for the fourth quarter of 2024 compared to $1.2 million for the third quarter of 2024 and $2.0 million for the fourth quarter of 2023. Compared to the third quarter of 2024, the provision expense reflected a $0.8 million decrease in the provision for loans held for investment (“HFI”) and a $0.3 million decrease in the provision benefit for unfunded loan commitments. The decrease in the provision for loans HFI was primarily due to lower loan balances and slightly lower loss rates.

    For 2024, we recorded a provision expense for credit losses of $4.0 million compared to $9.7 million for 2023. The decrease reflected a $4.5 million decrease in the provision for loans HFI and a $1.2 million decrease in the provision for unfunded loan commitments. The decrease in the provision for loans HFI was primarily due to lower new loan volume and loan balances in 2024 and favorable loan grade migration. The decrease in the provision for unfunded loan commitments reflected a lower level of loan commitments. We discuss the allowance for credit losses further below.

    Noninterest Income and Noninterest Expense

    Noninterest income for the fourth quarter of 2024 totaled $18.8 million compared to $19.5 million for the third quarter of 2024 and $17.2 million for the fourth quarter of 2023. Compared to the third quarter of 2024, the $0.7 million decrease from the third quarter of 2024 reflected a $0.8 million decrease in mortgage banking revenues attributable to lower production volume and a $0.3 million decrease in deposit fees that was partially offset by a $0.4 million increase in wealth management fees, primarily from retail brokerage. The $1.6 million increase over the fourth quarter of 2023 was driven by higher mortgage banking revenues of $0.8 million driven by a higher gain on sale margin and wealth management fees of $0.9 million, primarily from retail brokerage and to a lesser extent trust.

    For 2024, noninterest income totaled $76.0 million compared to $71.6 million for 2023, primarily attributable to a $3.9 million increase in mortgage banking revenues and a $2.8 million increase in wealth management fees, partially offset by a $2.2 million decrease in other income. The increase in mortgage banking revenues was due to a higher gain on sale margin. The increase in wealth management fees was primarily driven by higher retail brokerage fees and to a lesser extent trust fees, primarily attributable to both new account growth and higher account values driven by higher market returns. The decrease in other income was primarily attributable to a $1.4 million gain from the sale of mortgage servicing rights in 2023, and to a lesser extent a decrease in vendor bonus income and miscellaneous income.

    Noninterest expense for the fourth quarter of 2024 totaled $41.8 million compared to $42.9 million for the third quarter of 2024 and $40.0 million for the fourth quarter of 2023. The $1.1 million decrease from the third quarter of 2024 was primarily attributable to lower other expense of $1.2 million and occupancy expense of $0.2 million that was partially offset by a $0.3 million increase in compensation expense. The decrease in other expense was primarily attributable to a $1.0 million decrease in other real estate expense driven by the sale of a banking office and lower miscellaneous expense of $0.5 million which reflected a non-routine VISA Class B swap payment in the third quarter of 2024. The decrease in occupancy expense reflected lower property tax and software license expense. The increase in compensation was driven by higher incentive plan compensation. Compared to the fourth quarter of 2023, the $1.8 million increase was driven by a $2.3 million increase in compensation expense that was partially offset by a $0.2 million decrease in occupancy expense and a $0.3 million decrease in other expense. The unfavorable variance in compensation expense reflected a $1.4 million increase in salary expense and a $0.9 million increase in other benefit expense with the salary expense driven by higher incentive compensation and merit adjustments and the associate benefit expense reflective of higher health insurance cost.

    For 2024, noninterest expense totaled $165.3 million compared to $157.0 million for 2023, primarily attributable to increases in compensation expense of $6.9 million, occupancy expense of $0.3 million, and other expense of $1.1 million. The increase in compensation reflected a $5.4 million increase in salary expense and a $1.6 million increase in other associate benefit expense. The increase in salary expense was primarily due to a lower level of realized loan cost (credit offset to salary expense) of $3.1 million (lower new loan volume), higher base salary expense of $2.2 million (primarily annual merit raises), and a $1.2 million increase in cash incentive compensation that was partially offset by lower commission expense of $1.4 million (lower residential mortgage volume). The unfavorable variance in other associate benefit expense was due to a $0.9 million increase in associate insurance cost and a $0.6 million increase in stock compensation expense. The increase in occupancy expense was attributable to increases in software license and maintenance agreement expenses. The increase in other expense was driven by a $1.1 million increase in other real estate expense and a $1.4 million increase in processing expense that was partially offset by a $1.4 million decrease in miscellaneous expense. The increase in other real estate expense reflected a lower level of gains from the sale of banking offices in 2024. The increase in processing expense reflected both inflationary increases on contract renewals and the outsourcing of our core processing system. The decrease in miscellaneous expense was attributable to lower pension plan expense for the non-service related component of the plan.

    Income Taxes

    We realized income tax expense of $4.2 million (effective rate of 24.3%) for the fourth quarter of 2024 compared to $3.0 million (effective rate of 19.1%) for the third quarter of 2024 and $2.9 million (effective rate of 20.3%) for the fourth quarter of 2023. Compared to the third quarter of 2024, the increase in our effective tax rate was attributable to a lower than projected level of pre-tax income from Capital City Home Loans (“CCHL”) in relation to our consolidated income as the non-controlling interest adjustment for CCHL is accounted for as a permanent tax adjustment. Further, we realized a higher than projected Internal Revenue Code (“IRC”) Section 162(m) limitation related to current and future compensation. For 2024, we realized income tax expense of $13.9 million (effective rate of 21.2%) compared to $13.0 million (effective rate of 20.4%) for 2023 with the increase in the effective tax rate primarily attributable to a higher IRC Section 162(m) limitation and lower tax-exempt interest income. Absent discrete items or new tax credit investments, we expect our annual effective tax rate to approximate 24% for 2025.

    Discussion of Financial Condition

    Earning Assets

    Average earning assets totaled $3.922 billion for the fourth quarter of 2024, an increase of $38.5 million, or 1.0 %, over the third quarter of 2024, and an increase of $97.9 million, or 2.6%, over the fourth quarter of 2023. The increase over both prior periods was primarily driven by higher deposit balances (see below – Deposits). Compared to the third quarter of 2024, the change in earning asset mix was primarily attributable to a $41.4 million increase in short term investments (overnight funds sold), a $6.7 million increase in investment securities, and $6.5 million increase in loans held for sale, partially offset by a $16.1 million decrease in loans HFI. Compared to the fourth quarter of 2023, the change in earning asset mix reflected a $198.4 million increase in short term investments (overnight funds sold) that was partially offset by a $48.0 million decrease in investment securities, a $33.8 million decrease in loans HFI, and a $18.7 million decrease in loans held for sale.

    Average loans HFI for the fourth quarter of 2024 decreased $16.1 million, or 0.6%, from the third quarter of 2024 and decreased $33.8 million, or 1.3%, from the fourth quarter of 2023. Compared to the third quarter of 2024, the decline was primarily attributable to decreases in consumer loans (primarily indirect auto) of $18.3 million and commercial mortgage real estate loans of $24.1 million, partially offset by increases in construction real estate loans of $13.1 million, and residential real estate loans of $11.6 million. Compared to the fourth quarter of 2023, the decrease was driven by decreases in consumer loans (primarily indirect auto) of $72.8 million, commercial loans of $30.2 million, and commercial mortgage real estate loans of $25.3 million, partially offset by increases in residential real estate loans of $70.8 million, construction real estate loans of $16.6 million, and home equity loans of $10.2 million.

    Loans HFI at December 31, 2024 decreased $31.5 million, or 1.2%, from September 30, 2024 and decreased $82.4 million, or 3.0%, from December 31, 2023. Compared to September 30, 2024, the decrease was driven by decreases in commercial mortgage real estate loans of $40.9 million, consumer loans (primarily indirect auto) of $13.8 million, and commercial loans of $5.4 million, partially offset by increases in home equity loans of $9.1 million, other loans of $13.5 million, and residential real estate loans of $5.0 million. Compared to December 31, 2023, the decrease was primarily attributable to decreases in consumer loans (primarily indirect auto) of $71.5 million, commercial mortgage real estate loans of $46.4 million, and commercial loans of $36.0 million, partially offset by increases in residential real estate loans of $27.2 million, construction real estate loans of $23.9 million, and home equity loans of $9.1 million.

    Allowance for Credit Losses

    At December 31, 2024, the allowance for credit losses for loans HFI totaled $29.3 million compared to $29.8 million at September 30, 2024 and $29.9 million at December 31, 2023. Activity within the allowance is provided on Page 9. The decreases in the allowance from September 30, 2024 and December 31, 2023 were primarily attributable to lower loan balances and favorable loan migration. Net loan charge-offs were 25 basis points of average loans for the fourth quarter of 2024 versus 19 basis points for the third quarter of 2024. For 2024, net loan charge-offs were 21 basis points of average loans compared to 18 basis points in 2023. At December 31, 2024, the allowance represented 1.10% of loans HFI compared to 1.11% at September 30, 2024, and 1.10% at December 31, 2023.

    Credit Quality

    Nonperforming assets (nonaccrual loans and other real estate) totaled $6.7 million at December 31, 2024 compared to $7.2 million at September 30, 2024 and $6.2 million at December 31, 2023. At December 31, 2024, nonperforming assets as a percent of total assets equaled 0.15%, compared to 0.17% at September 30, 2024 and 0.15% at December 31, 2023. Nonaccrual loans totaled $6.3 million at December 31, 2024, a $0.3 million decrease from September 30, 2024 and a $0.1 million increase over December 31, 2023. Further, classified loans totaled $19.9 million at December 31, 2024, a $5.6 million decrease from September 30, 2024 and a $2.3 million decrease from December 31, 2023.

    Deposits

    Average total deposits were $3.600 billion for the fourth quarter of 2024, an increase of $28.4 million, or 0.8%, over the third quarter of 2024 and an increase of $51.9 million, or 1.5%, over the fourth quarter of 2023. Compared to the third quarter of 2024, the increase was primarily attributable to higher NOW account balances which reflected the seasonal inflow of public funds from municipal clients as they receive their tax receipts beginning in late November. The increase over the fourth quarter of 2023 reflected higher NOW, MMA, and certificates of deposit (“CD”) balances that were partially offset by decreases in noninterest bearing and savings balances. During 2024, we realized a re-mix in deposits as rate sensitive clients sought higher yield deposit products. Average core deposit balances (total deposits less public funds) increased $20.3 million over the third quarter of 2024 and $28.4 million over the fourth quarter of 2023.

    At December 31, 2024, total deposits were $3.672 billion, an increase of $92.9 million, or 2.6%, over September 30, 2024 and a decrease of $29.8 million, or 0.8%, from December 31, 2023. Compared to the third quarter of 2024, the increase was primarily due to a $110.7 million increase in NOW account balances which reflected the aforementioned seasonal inflow of public funds balances. The decrease from the fourth quarter of 2023 was driven by lower noninterest bearing, NOW, and savings account balances that were partially offset by higher MMA and CD balances which reflected the aforementioned re-mix in balances during 2024. Core deposit balances (total deposits less public funds) decreased $50.3 million from the third quarter of 2024 and increased $21.9 million over the fourth quarter of 2023.

    Liquidity

    The Bank maintained an average net overnight funds (deposits with banks plus FED funds sold less FED funds purchased) sold position of $298.3 million in the fourth quarter of 2024 compared to $256.9 million in the third quarter of 2024 and $99.8 million in the fourth quarter of 2023. Compared to both prior periods, the increases reflected growth in average core and public fund deposit balances.

    At December 31, 2024, we had the ability to generate approximately $1.535 billion (excludes overnight funds position of $321 million) in additional liquidity through various sources including various federal funds purchased lines, Federal Home Loan Bank borrowings, the Federal Reserve Discount Window, and brokered deposits.

    We also view our investment portfolio as a liquidity source and have the option to pledge securities in our portfolio as collateral for borrowings or deposits, and/or to sell selected securities. Our portfolio consists of debt issued by the U.S. Treasury, U.S. governmental agencies, municipal governments, and corporate entities. At December 31, 2024, the weighted-average maturity and duration of our portfolio were 2.54 years and 2.19 years, respectively, and the available-for-sale portfolio had a net unrealized after-tax loss of $19.2 million.

    Capital

    Shareowners’ equity was $495.3 million at December 31, 2024 compared to $476.5 million at September 30, 2024 and $440.6 million at December 31, 2023. For the fourth quarter of 2024, shareowners’ equity was positively impacted by net income attributable to common shareowners of $13.1 million, a net $7.6 million decrease in the accumulated other comprehensive loss, the issuance of stock of $0.9 million, stock compensation accretion of $0.7 million, and a $0.4 million reclassification from temporary equity (concurrent with the agreement to assign the minority membership interest (49%) in Capital City Home Loans, LLC, temporary equity was reclassified to other liabilities and included a $0.4 million net credit to retained earnings to account for the difference between the fair value and the book value of the minority interest). The net favorable change in accumulated other comprehensive loss reflected a $10.1 million decrease in the pension plan loss from the year-end re-measurement of the plan and a $0.7 million increase in the fair value of the interest rate swap related to subordinated debt, that was partially offset by a $3.2 million increase in the investment securities loss. Shareowners’ equity was reduced by common stock dividends of $3.9 million ($0.23 per share).

    For the full year 2024, shareowners’ equity was positively impacted by net income attributable to common shareowners of $52.9 million, a net $15.7 million decrease in the accumulated other comprehensive loss, the issuance of stock of $3.1 million, and stock compensation accretion of $1.9 million. The net favorable change in accumulated other comprehensive loss reflected a $10.1 million decrease in the pension plan loss from the year-end re-measurement of the plan and a $5.6 million decrease in the investment securities loss. Shareowners’ equity was reduced by common stock dividends of $14.9 million ($0.88 per share), the repurchase of stock of $2.3 million (82,540 shares), net adjustments totaling $1.4 million related to transactions under our stock compensation plans, and a $0.3 million reclassification from temporary equity.

    At December 31, 2024, our total risk-based capital ratio was 18.77% compared to 17.97% at September 30, 2024 and 16.57% at December 31, 2023. Our common equity tier 1 capital ratio was 15.64%, 14.88%, and 13.52%, respectively, on these dates. Our leverage ratio was 11.05%, 10.89%, and 10.30%, respectively, on these dates. At December 31, 2024, all our regulatory capital ratios exceeded the thresholds to be designated as “well-capitalized” under the Basel III capital standards. Further, our tangible common equity ratio was 9.55% at December 31, 2024 compared to 9.28% and 8.26% at September 30, 2024 and December 31, 2023, respectively. If our unrealized held-to-maturity securities losses of $16.0 million (after-tax) were recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 9.17%.

    About Capital City Bank Group, Inc.

    Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4.3 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage services and financial advisory services, including the sale of life insurance, risk management and asset protection services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 63 banking offices and 104 ATMs/ITMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit www.ccbg.com.

    FORWARD-LOOKING STATEMENTS

    Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “vision,” “goal,” and similar expressions are intended to identify forward-looking statements. The following factors, among others, could cause our actual results to differ: our ability to successfully manage credit risk, interest rate risk, liquidity risk, and other risks inherent to our industry; the effects of changes in the level of checking or savings account deposits and the competition for deposits on our funding costs, net interest margin and ability to replace maturing deposits and advances; legislative or regulatory changes; adverse developments in the financial services industry generally; inflation, interest rate, market and monetary fluctuations; uncertainty in the pricing of residential mortgage loans that we sell, as well as competition for the mortgage servicing rights related to these loans; interest rate risk and price risk resulting from retaining mortgage servicing rights and the effects of higher interest rates on our loan origination volumes; changes in monetary and fiscal policies of the U.S. Government; the cost and effects of cybersecurity incidents or other failures, interruptions, or security breaches of our systems or those of our customers or third-party providers; the effects of fraud related to debit card products; the accuracy of our financial statement estimates and assumptions; changes in accounting principles, policies, practices or guidelines; the frequency and magnitude of foreclosure of our loans; the effects of our lack of a diversified loan portfolio; the strength of the local economies in which we operate; our ability to declare and pay dividends; structural changes in the markets for origination, sale and servicing of residential mortgages; our ability to retain key personnel; the effects of natural disasters (including hurricanes), widespread health emergencies (including pandemics), military conflict, terrorism, civil unrest or other geopolitical events; our ability to comply with the extensive laws and regulations to which we are subject; the impact of the restatement of our previously issued consolidated statements of cash flows and any deficiencies in the processes undertaken to effect such restatements; any inability to implement and maintain effective internal control over financial reporting and/or disclosure control or inability to remediate our existing material weaknesses in our internal controls deemed ineffective; the willingness of clients to accept third-party products and services rather than our products and services; technological changes; the outcomes of litigation or regulatory proceedings; negative publicity and the impact on our reputation; changes in consumer spending and saving habits; growth and profitability of our noninterest income; the limited trading activity of our common stock; the concentration of ownership of our common stock; anti-takeover provisions under federal and state law as well as our Articles of Incorporation and our Bylaws; other risks described from time to time in our filings with the Securities and Exchange Commission; and our ability to manage the risks involved in the foregoing. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as amended, and our other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ, except as may be required by law.

    USE OF NON-GAAP FINANCIAL MEASURES
    Unaudited

    We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill and other intangibles resulting from merger and acquisition activity. We believe these measures are useful to investors because it allows investors to more easily compare our capital adequacy to other companies in the industry.

    The GAAP to non-GAAP reconciliations are provided below.

    (Dollars in Thousands, except per share data) Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023
    Shareowners’ Equity (GAAP)   $ 495,317   $ 476,499   $ 460,999   $ 448,314   $ 440,625  
    Less: Goodwill and Other Intangibles (GAAP)     92,773     92,813     92,853     92,893     92,933  
    Tangible Shareowners’ Equity (non-GAAP) A   402,544     383,686     368,146     355,421     347,692  
    Total Assets (GAAP)     4,307,142     4,225,316     4,225,695     4,259,922     4,304,477  
    Less: Goodwill and Other Intangibles (GAAP)     92,773     92,813     92,853     92,893     92,933  
    Tangible Assets (non-GAAP) B $ 4,214,369   $ 4,132,503   $ 4,132,842   $ 4,167,029   $ 4,211,544  
    Tangible Common Equity Ratio (non-GAAP) A/B   9.55 %   9.28 %   8.91 %   8.53 %   8.26 %
    Actual Diluted Shares Outstanding (GAAP) C   17,018,122     16,980,686     16,970,228     16,947,204     17,000,758  
    Tangible Book Value per Diluted Share (non-GAAP) A/C $ 23.65   $ 22.60   $ 21.69   $ 20.97   $ 20.45  
    CAPITAL CITY BANK GROUP, INC.                      
    EARNINGS HIGHLIGHTS                      
    Unaudited                      
                           
        Three Months Ended   Twelve Months Ended  
    (Dollars in thousands, except per share data)   Dec 31, 2024   Sep 30, 2024   Dec 31, 2023   Dec 31, 2024   Dec 31, 2023  
    EARNINGS                      
    Net Income Attributable to Common Shareowners $ 13,090 $ 13,118 $ 11,720   52,915 $ 52,258  
    Diluted Net Income Per Share $ 0.77 $ 0.77 $ 0.70   3.12 $ 3.07  
    PERFORMANCE                      
    Return on Average Assets (annualized)   1.22 % 1.24 % 1.12 % 1.25 % 1.22 %
    Return on Average Equity (annualized)   10.60   10.87   10.69   11.18   12.40  
    Net Interest Margin   4.17   4.12   4.07   4.08   4.05  
    Noninterest Income as % of Operating Revenue   31.34   32.67   30.46   32.34   31.05  
    Efficiency Ratio   69.74 % 71.81 % 70.82 % 70.30 % 67.99 %
    CAPITAL ADEQUACY                      
    Tier 1 Capital   17.58 % 16.77 % 15.37 % 17.58 % 15.37 %
    Total Capital   18.77   17.97   16.57   18.77   16.57  
    Leverage   11.05   10.89   10.30   11.05   10.30  
    Common Equity Tier 1   15.64   14.88   13.52   15.64   13.52  
    Tangible Common Equity (1)   9.55   9.28   8.26   9.55   8.26  
    Equity to Assets   11.50 % 11.28 % 10.24 % 11.50 % 10.24 %
    ASSET QUALITY                      
    Allowance as % of Non-Performing Loans   464.14 % 452.64 % 479.70 % 464.14 % 479.70 %
    Allowance as a % of Loans HFI   1.10   1.11   1.10   1.10   1.10  
    Net Charge-Offs as % of Average Loans HFI   0.25   0.19   0.23   0.21   0.18  
    Nonperforming Assets as % of Loans HFI and OREO   0.25   0.27   0.23   0.25   0.23  
    Nonperforming Assets as % of Total Assets   0.15 % 0.17 % 0.15 % 0.15 % 0.15 %
    STOCK PERFORMANCE                      
    High $ 40.86 $ 36.67 $ 32.56   40.86 $ 36.86  
    Low   33.00   26.72   26.12   25.45   26.12  
    Close $ 36.65 $ 35.29 $ 29.43   36.65 $ 29.43  
    Average Daily Trading Volume   27,484   37,151   33,297   31,390   33,775  
                           
    (1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 7.        
                           
    CAPITAL CITY BANK GROUP, INC.                    
    CONSOLIDATED STATEMENT OF FINANCIAL CONDITION            
    Unaudited                    
                         
      2024
    2023
    (Dollars in thousands) Fourth Quarter   Third Quarter   Second Quarter   First Quarter   Fourth Quarter
    ASSETS                    
    Cash and Due From Banks $ 70,543   $ 83,431   $ 75,304   $ 73,642   $ 83,118  
    Funds Sold and Interest Bearing Deposits   321,311     261,779     272,675     231,047     228,949  
    Total Cash and Cash Equivalents   391,854     345,210     347,979     304,689     312,067  
                         
    Investment Securities Available for Sale   403,345     336,187     310,941     327,338     337,902  
    Investment Securities Held to Maturity   567,155     561,480     582,984     603,386     625,022  
    Other Equity Securities   2,399     6,976     2,537     3,445     3,450  
    Total Investment Securities   972,899     904,643     896,462     934,169     966,374  
                         
    Loans Held for Sale   28,672     31,251     24,022     24,705     28,211  
                         
    Loans Held for Investment (“HFI”):                    
    Commercial, Financial, & Agricultural   189,208     194,625     204,990     218,298     225,190  
    Real Estate – Construction   219,994     218,899     200,754     202,692     196,091  
    Real Estate – Commercial   779,095     819,955     823,122     823,690     825,456  
    Real Estate – Residential   1,028,498     1,023,485     1,012,541     1,012,791     1,001,257  
    Real Estate – Home Equity   220,064     210,988     211,126     214,617     210,920  
    Consumer   199,479     213,305     234,212     254,168     270,994  
    Other Loans   14,006     461     2,286     3,789     2,962  
    Overdrafts   1,206     1,378     1,192     1,127     1,048  
    Total Loans Held for Investment   2,651,550     2,683,096     2,690,223     2,731,172     2,733,918  
    Allowance for Credit Losses   (29,251 )   (29,836 )   (29,219 )   (29,329 )   (29,941 )
    Loans Held for Investment, Net   2,622,299     2,653,260     2,661,004     2,701,843     2,703,977  
                         
    Premises and Equipment, Net   81,952     81,876     81,414     81,452     81,266  
    Goodwill and Other Intangibles   92,773     92,813     92,853     92,893     92,933  
    Other Real Estate Owned   367     650     650     1     1  
    Other Assets   116,326     115,613     121,311     120,170     119,648  
    Total Other Assets   291,418     290,952     296,228     294,516     293,848  
    Total Assets $ 4,307,142   $ 4,225,316   $ 4,225,695   $ 4,259,922   $ 4,304,477  
    LIABILITIES                    
    Deposits:                    
    Noninterest Bearing Deposits $ 1,306,254   $ 1,330,715   $ 1,343,606   $ 1,361,939   $ 1,377,934  
    NOW Accounts   1,285,281     1,174,585     1,177,180     1,212,452     1,327,420  
    Money Market Accounts   404,396     401,272     413,594     398,308     319,319  
    Savings Accounts   506,766     507,604     514,560     530,782     547,634  
    Certificates of Deposit   169,280     164,901     159,624     151,320     129,515  
    Total Deposits   3,671,977     3,579,077     3,608,564     3,654,801     3,701,822  
                         
    Repurchase Agreements   26,240     29,339     22,463     23,477     26,957  
    Other Short-Term Borrowings   2,064     7,929     3,307     8,409     8,384  
    Subordinated Notes Payable   52,887     52,887     52,887     52,887     52,887  
    Other Long-Term Borrowings   794     794     1,009     265     315  
    Other Liabilities   57,863     71,974     69,987     65,181     66,080  
    Total Liabilities   3,811,825     3,742,000     3,758,217     3,805,020     3,856,445  
                         
    Temporary Equity   –     6,817     6,479     6,588     7,407  
    SHAREOWNERS’ EQUITY                    
    Common Stock   170     169     169     169     170  
    Additional Paid-In Capital   37,684     36,070     35,547     34,861     36,326  
    Retained Earnings   463,949     454,342     445,959     435,364     426,275  
    Accumulated Other Comprehensive Loss, Net of Tax   (6,486 )   (14,082 )   (20,676 )   (22,080 )   (22,146 )
    Total Shareowners’ Equity   495,317     476,499     460,999     448,314     440,625  
    Total Liabilities, Temporary Equity and Shareowners’ Equity $ 4,307,142   $ 4,225,316   $ 4,225,695   $ 4,259,922   $ 4,304,477  
    OTHER BALANCE SHEET DATA                    
    Earning Assets $ 3,974,431   $ 3,880,769   $ 3,883,382   $ 3,921,093   $ 3,957,452  
    Interest Bearing Liabilities   2,447,708     2,339,311     2,344,624     2,377,900     2,412,431  
    Book Value Per Diluted Share $ 29.11   $ 28.06   $ 27.17   $ 26.45   $ 25.92  
    Tangible Book Value Per Diluted Share(1)   23.65     22.60     21.69     20.97     20.45  
    Actual Basic Shares Outstanding   16,975     16,944     16,942     16,929     16,950  
    Actual Diluted Shares Outstanding   17,018     16,981     16,970     16,947     17,001  
    (1) Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 7.
                                 
    CAPITAL CITY BANK GROUP, INC.                            
    CONSOLIDATED STATEMENT OF OPERATIONS                      
    Unaudited                            
                                 
        2024   2023   Twelve Months Ended December 31,
    (Dollars in thousands, except per share data)   Fourth Quarter   Third Quarter   Second Quarter   First Quarter   Fourth Quarter   2024   2023
    INTEREST INCOME                            
    Loans, including Fees $ 41,453   $ 41,659 $ 41,138 $ 40,683 $ 40,407 $ 164,933 $ 152,250
    Investment Securities   4,694     4,155   4,004   4,244   4,392   17,097   18,692
    Federal Funds Sold and Interest Bearing Deposits   3,596     3,514   3,624   1,893   1,385   12,627   10,126
    Total Interest Income   49,743     49,328   48,766   46,820   46,184   194,657   181,068
    INTEREST EXPENSE                            
    Deposits   7,766     8,223   8,579   7,594   5,872   32,162   17,582
    Repurchase Agreements   199     221   217   201   199   838   513
    Other Short-Term Borrowings   83     52   68   39   310   242   1,538
    Subordinated Notes Payable   581     610   630   628   627   2,449   2,427
    Other Long-Term Borrowings   11     11   3   3   5   28   20
    Total Interest Expense   8,640     9,117   9,497   8,465   7,013   35,719   22,080
    Net Interest Income   41,103     40,211   39,269   38,355   39,171   158,938   158,988
    Provision for Credit Losses   701     1,206   1,204   920   2,025   4,031   9,714
    Net Interest Income after Provision for Credit Losses   40,402     39,005   38,065   37,435   37,146   154,907   149,274
    NONINTEREST INCOME                            
    Deposit Fees   5,207     5,512   5,377   5,250   5,304   21,346   21,325
    Bank Card Fees   3,697     3,624   3,766   3,620   3,713   14,707   14,918
    Wealth Management Fees   5,222     4,770   4,439   4,682   4,276   19,113   16,337
    Mortgage Banking Revenues   3,118     3,966   4,381   2,878   2,327   14,343   10,400
    Other   1,516     1,641   1,643   1,667   1,537   6,467   8,630
    Total Noninterest Income   18,760     19,513   19,606   18,097   17,157   75,976   71,610
    NONINTEREST EXPENSE                            
    Compensation   26,108     25,800   24,406   24,407   23,822   100,721   93,787
    Occupancy, Net   6,893     7,098   6,997   6,994   7,098   27,982   27,660
    Other   8,781     10,023   9,038   8,770   9,038   36,612   35,576
    Total Noninterest Expense   41,782     42,921   40,441   40,171   39,958   165,315   157,023
    OPERATING PROFIT   17,380     15,597   17,230   15,361   14,345   65,568   63,861
    Income Tax Expense   4,219     2,980   3,189   3,536   2,909   13,924   13,040
    Net Income   13,161     12,617   14,041   11,825   11,436   51,644   50,821
    Pre-Tax Loss (Income) Attributable to Noncontrolling Interest   (71 )   501   109   732   284   1,271   1,437
    NET INCOME ATTRIBUTABLE TO
    COMMON SHAREOWNERS
    $ 13,090   $ 13,118 $ 14,150 $ 12,557 $ 11,720 $ 52,915 $ 52,258
    PER COMMON SHARE                            
    Basic Net Income $ 0.77   $ 0.77 $ 0.84 $ 0.74 $ 0.69 $ 3.12 $ 3.08
    Diluted Net Income   0.77     0.77   0.83   0.74   0.70   3.12   3.07
    Cash Dividend $ 0.23   $ 0.23 $ 0.21 $ 0.21 $ 0.20 $ 0.88 $ 0.76
    AVERAGE SHARES                            
    Basic   16,946     16,943   16,931   16,951   16,947   16,943   16,987
    Diluted   16,990     16,979   16,960   16,969   16,997   16,969   17,023
    CAPITAL CITY BANK GROUP, INC.                            
    ALLOWANCE FOR CREDIT LOSSES (“ACL”)                        
    AND CREDIT QUALITY                            
    Unaudited                            
                                 
        2024
      2023   Twelve Months Ended December 31,
    (Dollars in thousands, except per share data)   Fourth Quarter   Third Quarter   Second Quarter   First Quarter   Fourth Quarter   2024   2023
    ACL – HELD FOR INVESTMENT LOANS                            
    Balance at Beginning of Period $ 29,836   $ 29,219   $ 29,329   $ 29,941   $ 29,083   $ 29,941   $ 25,068  
    Transfer from Other Liabilities   –     –     –     (50 )   66     (50 )   66  
    Provision for Credit Losses   1,085     1,879     1,129     932     2,354     5,025     9,529  
    Net Charge-Offs (Recoveries)   1,670     1,262     1,239     1,494     1,562     5,665     4,722  
    Balance at End of Period $ 29,251   $ 29,836   $ 29,219   $ 29,329   $ 29,941   $ 29,251   $ 29,941  
    As a % of Loans HFI   1.10 %   1.11 %   1.09 %   1.07 %   1.10 %   1.10 %   1.10 %
    As a % of Nonperforming Loans   464.14 %   452.64 %   529.79 %   431.46 %   479.70 %   464.14 %   479.70 %
    ACL – UNFUNDED COMMITMENTS                            
    Balance at Beginning of Period   2,522   $ 3,139   $ 3,121   $ 3,191   $ 3,502   $ 3,191   $ 2,989  
    Provision for Credit Losses   (367 )   (617 )   18     (70 )   (311 )   (1,036 )   202  
    Balance at End of Period(1)   2,155     2,522     3,139     3,121     3,191     2,155     3,191  
    ACL – DEBT SECURITIES                            
    Provision for Credit Losses $ (17 ) $ (56 ) $ 57   $ 58   $ (18 ) $ 42   $ (17 )
    CHARGE-OFFS                            
    Commercial, Financial and Agricultural $ 499   $ 331   $ 400   $ 282   $ 217   $ 1,512   $ 511  
    Real Estate – Construction   47     –     –     –     –     47     –  
    Real Estate – Commercial   –     3     –     –     –     3     120  
    Real Estate – Residential   44     –     –     17     79     61     79  
    Real Estate – Home Equity   33     23     –     76     –     132     39  
    Consumer   1,307     1,315     1,061     1,550     1,689     5,233     5,754  
    Overdrafts   574     611     571     638     602     2,394     2,789  
    Total Charge-Offs $ 2,504   $ 2,283   $ 2,032   $ 2,563   $ 2,587   $ 9,382   $ 9,292  
    RECOVERIES                            
    Commercial, Financial and Agricultural $ 103   $ 176   $ 59   $ 41   $ 83   $ 379   $ 277  
    Real Estate – Construction   3     –     –     –     –     3     2  
    Real Estate – Commercial   33     5     19     204     16     261     52  
    Real Estate – Residential   28     88     23     37     34     176     253  
    Real Estate – Home Equity   17     59     37     24     17     137     226  
    Consumer   352     405     313     410     433     1,480     1,936  
    Overdrafts   298     288     342     353     442     1,281     1,824  
    Total Recoveries $ 834   $ 1,021   $ 793   $ 1,069   $ 1,025   $ 3,717   $ 4,570  
    NET CHARGE-OFFS (RECOVERIES) $ 1,670   $ 1,262   $ 1,239   $ 1,494   $ 1,562   $ 5,665   $ 4,722  
    Net Charge-Offs as a % of Average Loans HFI(2)   0.25 %   0.19 %   0.18 %   0.22 %   0.23 %   0.21 %   0.18 %
    CREDIT QUALITY                            
    Nonaccruing Loans $ 6,302   $ 6,592   $ 5,515   $ 6,798   $ 6,242          
    Other Real Estate Owned   367     650     650     1     1          
    Total Nonperforming Assets (“NPAs”) $ 6,669   $ 7,242   $ 6,165   $ 6,799   $ 6,243          
                                 
    Past Due Loans 30-89 Days $ 4,311   $ 9,388   $ 5,672   $ 5,392   $ 6,855          
    Classified Loans   19,896     25,501     25,566     22,305     22,203          
                                 
    Nonperforming Loans as a % of Loans HFI   0.24 %   0.25 %   0.21 %   0.25 %   0.23 %        
    NPAs as a % of Loans HFI and Other Real Estate   0.25 %   0.27 %   0.23 %   0.25 %   0.23 %        
    NPAs as a % of Total Assets   0.15 %   0.17 %   0.15 %   0.16 %   0.15 %        
                                 
    (1)Recorded in other liabilities                            
    (2)Annualized                            
    CAPITAL CITY BANK GROUP, INC.                                                                                        
    AVERAGE BALANCE AND INTEREST RATES                                                                                        
    Unaudited                                                                                                    
                                                                                                         
        Fourth Quarter 2024     Third Quarter 2024     Second Quarter 2024     First Quarter 2024     Fourth Quarter 2023       Full Year 2024     Full Year 2023  
    (Dollars in thousands)   Average
    Balance
      Interest   Average
    Rate
        Average
    Balance
      Interest   Average
    Rate
        Average
    Balance
      Interest   Average
    Rate
        Average
    Balance
      Interest   Average
    Rate
        Average
    Balance
      Interest   Average
    Rate
          Average
    Balance
      Interest   Average
    Rate
        Average
    Balance
      Interest   Average
    Rate
     
    ASSETS:                                                                                                    
    Loans Held for Sale $ 31,047   $ 976   7.89 % $ 24,570   $ 720   7.49 % $ 26,281   $ 517   5.26 % $ 27,314     563   5.99 % $ 49,790   $ 817   6.50 %   $ 27,306   $ 2,776   6.72 % $ 55,510   $ 3,232   5.82 %
    Loans Held for Investment(1)   2,677,396     40,521   6.07     2,693,533     40,985   6.09     2,726,748     40,683   6.03     2,728,629     40,196   5.95     2,711,243     39,679   5.81       2,706,461     162,385   6.03     2,656,394     149,366   5.62  
                                                                                                         
    Investment Securities                                                                                                    
    Taxable Investment Securities   914,353     4,688   2.04     907,610     4,148   1.82     918,989     3,998   1.74     952,328     4,239   1.78     962,322     4,389   1.81       923,253     17,073   1.85     1,016,550     18,652   1.83  
    Tax-Exempt Investment Securities(1)   849     9   4.31     846     10   4.33     843     9   4.36     856     9   4.34     862     7   4.32       848     37   4.34     2,199     59   2.68  
                                                                                                         
    Total Investment Securities   915,202     4,697   2.04     908,456     4,158   1.82     919,832     4,007   1.74     953,184     4,248   1.78     963,184     4,396   1.82       924,101     17,110   1.85     1,018,749     18,711   1.83  
                                                                                                         
    Federal Funds Sold and Interest Bearing Deposits   298,255     3,596   4.80     256,855     3,514   5.44     262,419     3,624   5.56     140,488     1,893   5.42     99,763     1,385   5.51       239,712     12,627   5.27     203,147     10,126   4.98  
                                                                                                         
    Total Earning Assets   3,921,900   $ 49,790   5.05 %   3,883,414   $ 49,377   5.06 %   3,935,280   $ 48,831   4.99 %   3,849,615   $ 46,900   4.90 %   3,823,980   $ 46,277   4.80 %     3,897,580   $ 194,898   5.00 %   3,933,800   $ 181,435   4.61 %
                                                                                                         
    Cash and Due From Banks   73,992               70,994               74,803               75,763               76,681                 73,881               75,786            
    Allowance for Credit Losses   (30,107 )             (29,905 )             (29,564 )             (30,030 )             (29,998 )               (29,902 )             (28,190 )          
    Other Assets   293,884               291,359               291,669               295,275               296,114                 293,044               297,290            
                                                                                                         
    Total Assets $ 4,259,669             $ 4,215,862             $ 4,272,188             $ 4,190,623             $ 4,166,777               $ 4,234,603             $ 4,278,686            
                                                                                                         
    LIABILITIES:                                                                                                    
    Noninterest Bearing Deposits $ 1,323,556             $ 1,332,305             $ 1,346,546             $ 1,344,188             $ 1,416,825               $ 1,336,601             $ 1,507,657            
    NOW Accounts   1,182,073   $ 3,826   1.29 %   1,145,544   $ 4,087   1.42 %   1,207,643   $ 4,425   1.47 %   1,201,032   $ 4,497   1.51 %   1,138,461   $ 3,696   1.29 %     1,183,962   $ 16,835   1.42 %   1,172,861   $ 12,375   1.06 %
    Money Market Accounts   422,615     2,526   2.38     418,625     2,694   2.56     407,387     2,752   2.72     353,591     1,985   2.26     318,844     1,421   1.77       400,664     9,957   2.49     299,581     3,670   1.22  
    Savings Accounts   504,859     179   0.14     512,098     180   0.14     519,374     176   0.14     539,374     188   0.14     557,579     202   0.14       518,869     723   0.14     592,033     598   0.10  
    Time Deposits   167,321     1,235   2.94     163,462     1,262   3.07     160,078     1,226   3.08     138,328     924   2.69     116,797     553   1.88       157,342     4,647   2.95     97,480     939   0.96  
    Total Interest Bearing Deposits   2,276,868     7,766   1.36     2,239,729     8,223   1.46     2,294,482     8,579   1.50     2,232,325     7,594   1.37     2,131,681     5,872   1.09       2,260,837     32,162   1.42     2,161,955     17,582   0.81  
    Total Deposits   3,600,424     7,766   0.86     3,572,034     8,223   0.92     3,641,028     8,579   0.95     3,576,513     7,594   0.85     3,548,506     5,872   0.66       3,597,438     32,162   0.89     3,669,612     17,582   0.48  
    Repurchase Agreements   28,018     199   2.82     27,126     221   3.24     26,999     217   3.24     25,725     201   3.14     26,831     199   2.94       26,970     838   3.11     19,917     513   2.57  
    Other Short-Term Borrowings   6,510     83   5.06     2,673     52   7.63     6,592     68   4.16     3,758     39   4.16     16,906     310   7.29       4,882     242   4.94     24,146     1,538   6.37  
    Subordinated Notes Payable   52,887     581   4.30     52,887     610   4.52     52,887     630   4.71     52,887     628   4.70     52,887     627   4.64       52,887     2,449   4.56     52,887     2,427   4.53  
    Other Long-Term Borrowings   794     11   5.57     795     11   5.55     258     3   4.31     281     3   4.80     336     5   4.72       534     28   5.31     408     20   4.77  
    Total Interest Bearing Liabilities   2,365,077   $ 8,640   1.45 %   2,323,210   $ 9,117   1.56 %   2,381,218   $ 9,497   1.60 %   2,314,976   $ 8,465   1.47 %   2,228,641   $ 7,013   1.25 %     2,346,110   $ 35,719   1.52 %   2,259,313   $ 22,080   0.98 %
                                                                                                         
    Other Liabilities   73,130               73,767               72,634               68,295               78,772                 71,964               81,842            
                                                                                                         
    Total Liabilities   3,761,763               3,729,282               3,800,398               3,727,459               3,724,238                 3,754,675               3,848,812            
    Temporary Equity   6,763               6,443               6,493               7,150               7,423                 6,712               8,392            
                                                                                                         
    SHAREOWNERS’ EQUITY:   491,143               480,137               465,297               456,014               435,116                 473,216               421,482            
                                                                                                         
    Total Liabilities, Temporary Equity and Shareowners’ Equity $ 4,259,669             $ 4,215,862             $ 4,272,188             $ 4,190,623             $ 4,166,777               $ 4,234,603             $ 4,278,686            
                                                                                                         
    Interest Rate Spread     $ 41,150   3.59 %     $ 40,260   3.49 %     $ 39,334   3.38 %     $ 38,435   3.43 %     $ 39,264   3.55 %       $ 159,179   3.47 %     $ 159,355   3.63 %
                                                                                                         
    Interest Income and Rate Earned(1)       49,790   5.05         49,377   5.06         48,831   4.99         46,900   4.90         46,277   4.80           194,898   5.00         181,435   4.61  
    Interest Expense and Rate Paid(2)       8,640   0.88         9,117   0.93         9,497   0.97         8,465   0.88         7,013   0.73           35,719   0.92         22,080   0.56  
                                                                                                         
    Net Interest Margin     $ 41,150   4.17 %     $ 40,260   4.12 %     $ 39,334   4.02 %     $ 38,435   4.01 %     $ 39,264   4.07 %       $ 159,179   4.08 %     $ 159,355   4.05 %
                                                                                                         
    (1)Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate.                                                                  
    (2)Rate calculated based on average earning assets.                                                                                            

    For Information Contact:
    Jep Larkin
    Executive Vice President and Chief Financial Officer
    850.402. 8450

    The MIL Network –

    January 29, 2025
  • MIL-OSI: Amplify ETFs Aligns Global and U.S. Cannabis Exposure Across MJ and CNBS

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, Jan. 28, 2025 (GLOBE NEWSWIRE) — Amplify ETFs announces the realignment of its cannabis ETFs to provide investors with dynamic exposure to the cannabis industry. On January 28, 2025, the Amplify Seymour Cannabis ETF (CNBS) will change its investment policy to invest in securities of U.S. companies engaged in cannabis and hemp-related activities. In addition, the Amplify Alternative Harvest ETF (MJ) will allocate to CNBS to gain exposure to U.S. cannabis companies following an index methodology change.

    The move reflects Amplify ETFs’ commitment to refining its product suite for investors. Through the changes, MJ will continue to offer access to the global cannabis industry, now gaining its U.S. exposure through an allocation to CNBS within the index.

    “The cannabis industry is an evolving market, and we recognized an exceptional opportunity to leverage the expertise of one of its foremost authorities, Tim Seymour. By doing so, we’ve positioned ourselves to enhance offerings and create what we believe is a competitive advantage,” said Christian Magoon, CEO of Amplify ETFs.

    By utilizing CNBS for its U.S. exposure, MJ provides a seamless and diversified investment strategy, representing global and domestic cannabis opportunities in one ETF.

    CNBS is an actively managed cannabis ETF, which launched in July 2019. Tim Seymour, CIO of Seymour Asset Management and portfolio manager for CNBS, will refine CNBS’ focus primarily on U.S. companies principally engaged in the emerging cannabis and hemp ecosystem. CNBS targets three classifications: cannabis/hemp plant operations, support cultivation and retail, and ancillary companies providing services and products to the cannabis market. At least 80% of its portfolio companies derive more than 50% of their revenue from cannabis and hemp-related activities.

    Seymour employs a rigorous blend of top-down and bottom-up analysis to identify opportunities, utilizing macroeconomic data, regulatory filings, third-party research, and ESG scoring. He added, “CNBS is uniquely positioned to capitalize on opportunities in the U.S. cannabis market through our active management strategy, and we view the US cannabis industry as the largest addressable market for sourcing cannabis investments. We seek exposure to the companies that are executing today and are well positioned for tomorrow’s growth. We believe the integration of CNBS into MJ’s methodology enhances investor access to a dynamic and growing sector and look forward to working closely with Prime Indexes, who founded the MJ reference index.”

    Additionally, MJ and CNBS will each participate in a reverse share split ratio of 1 for 12. The reverse splits will be effective on February 21, 2025, and the funds will then begin trading at their post-split prices. The respective ticker symbols will not change, but each fund will be issued with new CUSIP numbers as listed below.

    Fund name Old CUSIP New CUSIP Reverse Split Ratio
    Amplify Seymour Cannabis ETF (CNBS) 032108854 032108482 1:12
    Amplify Alternative Harvest ETF (MJ) 032108631 032108474 1:12

    The reverse splits will increase the price per share of each fund, with a proportionate decrease in the number of shares outstanding. For a one-for-twelve reverse split, every twelve pre-split shares will result in the receipt of one post-split share, which will be priced twelve times higher than the NAV of a pre-split share.

    About Amplify ETFs
    Amplify ETFs, sponsored by Amplify Investments, has over $10.4 billion in assets across its suite of ETFs (as of 01/21/2025). Amplify ETFs delivers expanded investment opportunities for investors seeking growth, income, and risk-managed strategies across a range of actively managed and index-based ETFs. To learn more visit AmplifyETFs.com.

    Sales Contact: Media Contacts:
    Amplify ETFs
    855-267-3837
    info@amplifyetfs.com
    Gregory FCA for Amplify ETFs
    Kerry Davis
    610-228-2098
    amplifyetfs@gregoryfca.com
       

    Carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. This and other information can be found in the Fund’s statutory and summary prospectuses, which may be obtained at AmplifyETFs.com. Read the prospectus carefully before investing.

    Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

    Narrowly focused investments typically exhibit higher volatility. Companies involved in the cannabis industry face competition, may have limited access to the services of banks, may have substantial burdens on company resources due to litigation, complaints or enforcement actions, and are heavily dependent on receiving necessary permits and authorizations to engage in medical cannabis research or to otherwise cultivate, possess or distribute cannabis. The possession and use of cannabis, even for medical purposes, is illegal under federal and certain states’ laws, which may negatively impact the value of the Fund’s investments. Securities issued by non-U.S. companies present risks beyond those of securities of U.S. issuers. Small and/or mid-capitalization companies may be more vulnerable to adverse general market or economic developments, and their securities may be less liquid and may experience greater price volatility than large-cap companies. The Fund is non-diversified, which can cause greater share price fluctuation.

    CNBS is actively managed and subject to management risk. MJ is a passive ETF that seeks to replicate the performance of a designated index by holding the assets listed on the index. Passive ETFs are subject to total market risk and lack flexibility.

    Amplify Investments LLC is the Investment Adviser to the Funds. Seymour Asset Management LLC and Tidal Investments, LLC serves as the Investment Sub-Advisers for the Funds.

    Amplify ETFs are distributed by Foreside Fund Services, LLC.

    The MIL Network –

    January 29, 2025
  • MIL-OSI: RYVYL Pays Initial $13.0 Million Tranche to Securityholder to Retire All Outstanding Series B Convertible Preferred Stock and Majority of 8% Senior Convertible Note

    Source: GlobeNewswire (MIL-OSI)

    SAN DIEGO, CA, Jan. 28, 2025 (GLOBE NEWSWIRE) — RYVYL Inc. (NASDAQ: RVYL) (“RYVYL” or the “Company”), a leading innovator of payment transaction solutions leveraging electronic payment technology for diverse international markets, has paid the initial tranche of $13.0 million to a securityholder of the Company on January 27, 2025, which completed the following:

    • Redeemed of all shares of the Company’s Series B Convertible Preferred Stock (“Preferred Stock”), for which the liquidation value was $53.1 million.
    • Partially repaid the 8% Senior Convertible Note held by the securityholder (“Note”), reducing the outstanding principal from $18.3 million to $4.0 million, which is due on or before April 30, 2025, and also temporarily suspended (i) the Company’s requirement to pay interest on the remaining principal balance of the Note, (ii) the securityholder’s right to convert the Note and (iii) certain restrictive covenants contained in the Note, all of which would be restored if the Company does not pay the second tranche of $4.0 million by April 30, 2025.

    “These transactions eliminate a large portion of the conversion overhang and substantial dilution risk to our common stock from both the Preferred Stock and Note,” said George Oliva, CFO of RYVYL. “We expect the net gain from this balance sheet restructuring to be highly anti-dilutive; thus, benefitting the common stockholders and lowering our overall cost of capital as we invest in our growth in 2025.”

    This communication is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security and does not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.

    About RYVYL

    RYVYL Inc. (NASDAQ: RVYL) was born from a passion for empowering a new way to conduct business-to-business, consumer-to-business, and peer-to-peer payment transactions around the globe. By leveraging electronic payment technology for diverse international markets, RYVYL is a leading innovator of payment transaction solutions reinventing the future of financial transactions. Since its founding as GreenBox POS in 2017 in San Diego, RYVYL has developed applications enabling an end-to-end suite of turnkey financial products with enhanced security and data privacy, world-class identity theft protection, and rapid speed to settlement. As a result, the platform can log immense volumes of immutable transactional records at the speed of the internet for first-tier partners, merchants, and consumers around the globe. www.ryvyl.com

    Cautionary Note Regarding Forward-Looking Statements

    This press release includes information that constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the Company’s current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to the Company. Such forward-looking statements include statements regarding timely payment of the second tranche, the benefit to stockholders from the repayment of the Note and repurchase of the Preferred Stock, and the timing and expectation of revenues from the license described herein and are charactered by future or conditional words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate” and “continue” or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information. By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in or contemplated by the forward-looking statements, including the risk that the licensee understands and complies with various banking laws and regulations that may impact the licensee’s ability to process transactions. For example, federal money laundering statutes and Bank Secrecy Act regulations discourage financial institutions from working with operators of certain industries – particularly industries with heightened cash reporting obligations and restrictions – as a result of which, banks may refuse to process certain payments and/or require onerous reporting obligations by payment processors to avoid compliance risk. These and other risk factors affecting the Company are discussed in detail in the Company’s periodic filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether because of the latest information, future events or otherwise, except to the extent required by applicable laws.

    IR Contact:
    David Barnard, Alliance Advisors Investor Relations, 415-433-3777, ryvylinvestor@allianceadvisors.com

    The MIL Network –

    January 29, 2025
  • MIL-OSI: Sandy Spring Bancorp Announces Fourth Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    OLNEY, Md., Jan. 28, 2025 (GLOBE NEWSWIRE) — Sandy Spring Bancorp, Inc. (Nasdaq-SASR), the parent company of Sandy Spring Bank, reported a net loss of $39.5 million ($0.87 per diluted common share) for the quarter ended December 31, 2024, compared to net income of $16.2 million ($0.36 per diluted common share) for the third quarter of 2024 and $26.1 million ($0.58 per diluted common share) for the fourth quarter of 2023.   The current quarter’s net loss is a result of a $54.4 million goodwill impairment charge determined during our annual goodwill impairment test based on the terms of the merger agreement with Atlantic Union Bankshares Corporation (“AUB”).   The goodwill impairment is a non-cash charge and has no impact on the Company’s regulatory capital ratios, cash flows, core operating performance or liquidity position.

    The current quarter’s core earnings were $21.0 million ($0.47 per diluted common share), compared to $17.9 million ($0.40 per diluted common share) for the quarter ended September 30, 2024 and $27.1 million ($0.60 per diluted common share) for the quarter ended December 31, 2023. Core earnings exclude the goodwill impairment charge, merger and acquisition expense, and the after-tax impact of amortization of intangibles, investment securities gains or losses and other non-recurring or extraordinary items. The current quarter’s increase in core earnings as compared to the linked quarter was driven by higher net interest income coupled with higher non-interest income, and lower provision for credit losses, partially offset by higher adjusted non-interest expense. The total provision for credit losses was $4.5 million for the fourth quarter of 2024 compared to $6.3 million for the previous quarter and a credit of $3.4 million for the fourth quarter of 2023.

    “We are pleased with our fourth quarter results, most notably our improved net interest margin, growth in core earnings, and reductions in brokered deposits,” said Daniel J. Schrider, Chair, President and CEO of Sandy Spring Bank. “We remain focused on serving our clients and building communities in the Greater Washington region.”

    Fourth Quarter Highlights

    • Total assets at December 31, 2024 decreased by 2% to $14.1 billion compared to $14.4 billion at September 30, 2024. This decline is predominantly driven by a $200.0 million reduction in FHLB advances and a resulting $231.4 million decline in cash and cash equivalents quarter-over-quarter.
    • Total loans remained level at $11.5 billion as of December 31, 2024 compared to September 30, 2024. During the current quarter, AD&C and commercial business loans and lines increased by $71.7 million and $32.2 million, respectively, while the commercial investor real estate segment declined by $88.9 million. Total residential mortgage and consumer loan portfolios increased by $19.6 million during this period.
    • Total deposits stayed relatively unchanged at $11.7 billion at December 31, 2024 compared to September 30, 2024. Interest-bearing deposits increased $106.1 million, while noninterest-bearing deposits declined $98.1 million. Growth in interest-bearing deposits was mainly experienced within interest checking accounts, which grew $122.9 million during the current quarter, while decline in noninterest-bearing deposit categories was driven by lower balances in commercial checking accounts. Total deposits, excluding brokered deposits, increased by $32.0 million quarter-over-quarter and represented 94% of total deposits as of December 31, 2024.
    • The ratio of non-performing loans to total loans was 1.03% at December 31, 2024 compared to 1.09% at September 30, 2024 and 0.81% at December 31, 2023. The current quarter’s decline in non-performing loans was mainly related to pay downs on several non-accrual loans along with a single commercial real estate loan that returned to an accrual status.
    • Net interest income for the fourth quarter of 2024 grew $4.7 million or 6% compared to the previous quarter and $4.4 million or 5% compared to the fourth quarter of 2023. Compared to the previous quarter, interest income increased by $1.0 million, while interest expense decreased by $3.7 million.
    • The net interest margin was 2.53% for the fourth quarter of 2024 compared to 2.44% for the third quarter of 2024 and 2.45% for the fourth quarter of 2023. Compared to the linked quarter, the rate paid on interest-bearing liabilities decreased 23 basis points, driven by a 26 basis point decline in the rate on interest-bearing deposits, while the yield on interest-earning assets declined by six basis points. The decline in the rate paid on interest-bearing deposits was attributable to a 50 basis point reduction in the federal funds rate during the current quarter and the associated actions taken by management to re-price the Company’s funding base.
    • Provision for credit losses directly attributable to the funded loan portfolio was $4.7 million for the current quarter compared to $6.3 million in the previous quarter and a credit of $2.6 million in the prior year quarter. The current quarter’s provision expense is mainly attributable to a slight deterioration in the projected economic variables coupled with higher qualitative adjustments, partially offset by lower probability of recession. In addition, during the current quarter, the provision for unfunded commitments declined by $0.2 million, a result of higher utilization rates on lines of credit.
    • Non-interest income for the fourth quarter of 2024 increased by 10% or $1.9 million compared to the linked quarter and grew by 31% or $5.1 million compared to the prior year quarter. The quarter-over-quarter increase was mainly due to an increase in income from bank-owned life insurance driven by one-time mortality proceeds received during the current quarter in combination with higher swap fees and higher wealth management income, which was partially offset by lower income from mortgage banking activities.
    • Non-interest expense for the fourth quarter of 2024 increased by $61.3 million compared to the third quarter of 2024 and $67.1 million compared to the prior year quarter, due to the goodwill impairment charge of $54.4 million incurred during the current quarter. Excluding the goodwill impairment charge, adjusted non-interest expense was $79.8 million during the current quarter compared to $72.9 million in the linked quarter. This quarterly increase in adjusted non-interest expense was primarily due to a combination of merger and acquisition expense associated with the pending merger with AUB along with higher salaries and compensation benefits, partially offset by lower professional fees and services.
    • We perform an annual goodwill impairment test as of October 1st of each year. During the current year, we utilized the terms incorporated in the merger agreement between the Company and AUB. The implied value of the Company utilized the stock conversion ratio in the merger agreement and used a weighted average approach to consider both AUB’s most recent closing stock price prior to the merger announcement date, as well as the forward sale price for AUB common stock under the forward sale agreement announced simultaneous with the merger agreement. This valuation method resulted in the estimated fair value of the Company being below its book value and required the recording of a goodwill impairment charge of $54.4 million.
    • Return on average assets (“ROA”) for the quarter ended December 31, 2024 was (1.09)% and return on average tangible common equity (“ROTCE”) was 5.46% compared to 0.46% and 5.88%, respectively, for the third quarter of 2024 and 0.73% and 9.26%, respectively, for the fourth quarter of 2023. On a non-GAAP basis, the current quarter’s core ROA was 0.58% and core ROTCE was 6.80% compared to 0.50% and 5.88%, respectively, for the previous quarter and 0.76% and 9.26%, respectively, for the fourth quarter of 2023.
    • The GAAP efficiency ratio was 124.61% for the fourth quarter of 2024, compared to 72.12% for the third quarter of 2024 and 68.33% for the fourth quarter of 2023. An elevated GAAP efficiency ratio for the current quarter was the result of higher non-interest expense due to the $54.4 million goodwill impairment charge. The non-GAAP efficiency ratio was 67.16% for the fourth quarter of 2024 compared to 69.06% for the third quarter of 2024 and 66.16% for the prior year quarter.

    Balance Sheet and Credit Quality

    Total assets were $14.1 billion at December 31, 2024, as compared to $14.4 billion at September 30, 2024. At December 31, 2024, total loans remained stable at $11.5 billion compared to the previous quarter. During this period, the growth in AD&C and commercial business loans and lines of $71.7 million or 6% and $32.2 million or 2%, respectively, was mostly offset by the decline in commercial investor real estate loans of $88.9 million or 2%. Total residential mortgage and consumer loan portfolios increased by $19.6 million or 1%.

    Deposits stayed relatively unchanged at $11.7 billion at December 31, 2024 compared to September 30, 2024. During this period, noninterest-bearing deposits decreased $98.1 million or 3%, while interest-bearing deposits increased $106.1 million or 1%. The decline in noninterest-bearing deposit categories was driven by decreases in commercial checking accounts. Growth in interest-bearing deposits was seen predominantly in interest checking accounts, which grew $122.9 million or 8% during the current quarter. Total deposits, excluding brokered deposits, increased by $32.0 million quarter-over-quarter and remained at 94% of total deposits as of December 31, 2024 compared to September 30, 2024, reflecting continued strength and stability of the core deposit base. Total uninsured deposits at December 31, 2024 were approximately 37% of total deposits.

    Total borrowings decreased $201.7 million or 23% at December 31, 2024 as compared to the previous quarter, primarily driven by a $200.0 million reduction in FHLB advances, of which $150 million related to scheduled maturities, while $50 million was prepaid generating a $0.5 million gain on debt extinguishment. At December 31, 2024, available unused sources of liquidity, which consist of available FHLB borrowings, fed funds, funds through the Federal Reserve Bank’s discount window, as well as excess cash and unpledged investment securities, totaled $6.3 billion or 147% of uninsured deposits.

    The tangible common equity to tangible assets ratio was 8.84% at December 31, 2024, compared to 8.83% at September 30, 2024.

    At December 31, 2024, the Company had a total risk-based capital ratio of 15.38%, a common equity tier 1 risk-based capital ratio of 11.36%, a tier 1 risk-based capital ratio of 11.36%, and a tier 1 leverage ratio of 9.39%. These risk-based capital ratios compare to a total risk-based capital ratio of 15.53%, a common equity tier 1 risk-based capital ratio of 11.27%, a tier 1 risk-based capital ratio of 11.27%, and a tier 1 leverage ratio of 9.59% at September 30, 2024. All of these ratios remain well in excess of the mandated minimum regulatory requirements.

    Non-performing loans include non-accrual loans and accruing loans 90 days or more past due. At December 31, 2024, non-performing loans totaled $119.4 million, compared to $125.3 million at September 30, 2024 and $91.8 million at December 31, 2023. The ratio of non-performing loans to total loans was 1.03% compared to 1.09% on a linked quarter basis. These levels of non-performing loans compare to 0.81% at December 31, 2023. The current quarter’s decline in non-performing loans was mainly related to pay downs on several non-accrual loans along with a single commercial real estate loan that returned to an accrual status based on the borrower’s historical payment performance. Total net charge-offs for the current quarter amounted to $1.7 million compared to $0.7 million for the third quarter of 2024 and net recoveries of $0.1 million for the fourth quarter of 2023.

    At December 31, 2024, the allowance for credit losses was $134.4 million or 1.16% of outstanding loans and 113% of non-performing loans, compared to $131.4 million or 1.14% of outstanding loans and 105% of non-performing loans at the end of the previous quarter and $120.9 million or 1.06% of outstanding loans and 132% of non-performing loans at the end of the fourth quarter of 2023. The increase in the allowance for the current quarter compared to the previous quarter mainly reflects slight deterioration in the projected economic variables coupled with higher qualitative adjustments, partially offset by lower probability of economic recession.

    Income Statement Review

    Quarterly Results

    Net loss was $39.5 million ($0.87 per diluted common share) for the three months ended December 31, 2024 compared to net income of $16.2 million ($0.36 per diluted common share) for the three months ended September 30, 2024 and $26.1 million ($0.58 per diluted common share) for the prior year quarter. The current quarter’s net loss is predominantly related to the $54.4 million goodwill impairment charge.   The current quarter’s core earnings were $21.0 million ($0.47 per diluted common share), compared to $17.9 million ($0.40 per diluted common share) for the previous quarter and $27.1 million ($0.60 per diluted common share) for the quarter ended December 31, 2023. The increase in the current quarter’s core earnings compared to the linked quarter was driven primarily by higher net interest income and non-interest income, and lower provision for credit losses, partially offset by higher adjusted non-interest expense.

    Net interest income for the fourth quarter of 2024 increased $4.7 million or 6% compared to the previous quarter and $4.4 million or 5% compared to the fourth quarter of 2023. During the current quarter, interest income increased $1.0 million, while interest expense declined $3.7 million. The higher interest rate environment during the current year was primarily responsible for a $5.4 million year-over-year increase in interest income, which outpaced the $1.0 million year-over-year growth in interest expense.

    The net interest margin was 2.53% for the fourth quarter of 2024 compared to 2.44% for the third quarter of 2024 and 2.45% for the fourth quarter of 2023. The increase in the net interest margin during the current quarter was a result of a 23 basis point decrease in the rate paid on interest-bearing liabilities, driven by a 26 basis point decline in the rate paid on interest-bearing deposits, while the yield earned on interest-earning assets declined by six basis points. As compared to the prior year quarter, the yield on interest-earning assets increased eight basis points, while the rate paid on interest-bearing liabilities declined nine basis points, resulting in net interest margin increase of eight basis points.

    The total provision for credit losses was $4.5 million for the fourth quarter of 2024 compared to $6.3 million for the previous quarter and a credit of $3.4 million for the fourth quarter of 2023. The provision for credit losses directly attributable to the funded loan portfolio was $4.7 million for the current quarter compared to $6.3 million for the third quarter of 2024 and a credit of $2.6 million for the fourth quarter of 2023. The current quarter’s provision is mainly a reflection of a slight deterioration in the projected economic variables along with higher qualitative adjustments, partially offset by lower probability of economic recession. In addition, during the current quarter, the reserve for unfunded commitments declined to $1.3 million from $1.5 million in the previous quarter due to higher utilization rates on lines of credit.

    Non-interest income for the fourth quarter of 2024 increased by 10% or $1.9 million compared to the linked quarter and grew by 31% or $5.1 million compared to the prior year quarter. The current quarter’s increase in non-interest income as compared to the previous quarter was mainly driven by the $1.9 million increase in income from bank owned life insurance, generated by one-time mortality proceeds, $0.4 million of swap fee income, and $0.2 million increase in wealth management income, due to the overall favorable market performance, partially offset by $0.4 million decrease in income from mortgage banking activities, due to lower sales volumes.

    Non-interest expense for the fourth quarter of 2024 increased $61.3 million or 84% compared to the third quarter of 2024 and $67.1 million or 100% compared to the fourth quarter of 2023. The increase over the comparative quarters was primarily due to the goodwill impairment charge of $54.4 million in the fourth quarter of 2024. Excluding the goodwill impairment charge, adjusted non-interest expense increased $6.9 million or 9% compared to the linked quarter. This quarter-over-quarter increase is predominantly attributable to $4.2 million in merger and acquisition expenses incurred during the current quarter, a $3.3 million increase in salaries and benefits, due to an increase in employee incentive compensation, and a $0.7 million increase in marketing expense. These increases were partially offset by the $1.8 million reduction in professional fees and services.

    For the fourth quarter of 2024, the GAAP efficiency ratio was 124.61% compared to 72.12% for the third quarter of 2024 and 68.33% for the fourth quarter of 2023. The non-GAAP efficiency ratio was 67.16% for the current quarter as compared to 69.06% for the third quarter of 2024 and 66.16% for the fourth quarter of 2023.

    ROA for the quarter ended December 31, 2024 was (1.09)% and ROTCE was 5.46% compared to 0.46% and 5.88%, respectively, for the third quarter of 2024 and 0.73% and 9.26%, respectively, for the fourth quarter of 2023. On a non-GAAP basis, the current quarter’s core ROA was 0.58% and core ROTCE was 6.80% compared to 0.50% and 5.88% for the third quarter of 2024 and 0.76% and 9.26%, respectively, for the fourth quarter of 2023.

    Explanation of Non-GAAP Financial Measures

    This news release contains financial information and performance measures determined by methods other than in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company’s management believes that the supplemental non-GAAP information provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. Non-GAAP measures used in this release consist of the following:

    • Tangible common equity and related measures are non-GAAP measures that exclude the impact of goodwill and other intangible assets.
    • The non-GAAP efficiency ratio excludes goodwill impairment loss, merger and acquisition expense, amortization of intangible assets, investment securities gains/(losses), pension settlement expense, severance expense, contingent payment expense, and includes tax-equivalent income.
    • Core earnings and the related measures of core earnings per diluted common share, core return on average assets and core return on average tangible common equity reflect net income exclusive of goodwill impairment loss, merger and acquisition expense, and after-tax impact of amortization of intangible assets, investment securities gains/(losses) and other non-recurring or extraordinary items.
    • Pre-tax pre-provision net income excludes income tax expense and the provision (credit) for credit losses.

    These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Please refer to the non-GAAP Reconciliation tables included with this release for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.

    About Sandy Spring Bancorp, Inc.

    Sandy Spring Bancorp, Inc., headquartered in Olney, Maryland, is the holding company for Sandy Spring Bank, a premier community bank in the Greater Washington, D.C. region. With over 50 locations, the bank offers a broad range of commercial and retail banking, mortgage, private banking, and trust services throughout Maryland, Virginia, and Washington, D.C. Through its subsidiaries, Rembert Pendleton Jackson and West Financial Services, Inc., Sandy Spring Bank also offers a comprehensive menu of wealth management services.

    Source: Sandy Spring Bancorp, Inc.
    Code: SASR-E

      For additional information or questions, please contact:
        Daniel J. Schrider, Chair, President & Chief Executive Officer, or
        Charles S. Cullum, E.V.P. & Chief Financial Officer
        Sandy Spring Bancorp
        17801 Georgia Avenue
        Olney, Maryland 20832
        1-800-399-5919
        Email: DSchrider@sandyspringbank.com 
          CCullum@sandyspringbank.com 
           
        Website: www.sandyspringbank.com
        Media Contact:
        Jennifer E. Schell, Division Executive, Marketing & Corporate Communications
        301-774-6400 x8331
        jschell@sandyspringbank.com 
           

    Forward-Looking Statements

    Sandy Spring Bancorp’s forward-looking statements are subject to significant risks and uncertainties that may cause actual results to differ materially from those in such statements. These risks and uncertainties include, but are not limited to, the risks identified in our quarterly and annual reports and the following: changes in general business and economic conditions nationally or in the markets that we serve; changes in consumer and business confidence, investor sentiment, or consumer spending or savings behavior; changes in the level of inflation; changes in the demand for loans, deposits and other financial services that we provide; the possibility that future credit losses may be higher than currently expected; the impact of the interest rate environment on our business, financial condition and results of operations; the impact of compliance with changes in laws, regulations and regulatory interpretations, including changes in income taxes; changes in credit ratings assigned to us or our subsidiaries; competitive pressures among financial services companies; the ability to attract, develop and retain qualified employees; our ability to maintain the security of our data processing and information technology systems; the impact of changes in accounting policies, including the introduction of new accounting standards; the impact of judicial or regulatory proceedings; the impact of fiscal and governmental policies of the United States federal government; the impact of health emergencies, epidemics or pandemics; the effects of climate change; and the impact of natural disasters, extreme weather events, military conflict, terrorism or other geopolitical events; the possibility that the Company’s pending merger with AUB does not close when expected or at all because required regulatory or other approvals or conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger); the risk that the benefits from the merger may not be fully realized or may take longer to realize than expected; and the risk of disruption to the Company’s business as a result of the pendency of the merger;. Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 2023 and its Form 10-Q for the quarter ended September 30, 2024, including in the Risk Factors section of those reports, and in its other SEC reports. Sandy Spring Bancorp’s forward-looking statements may also be subject to other risks and uncertainties, including those that it may discuss elsewhere in this news release or in its filings with the SEC, accessible on the SEC’s Web site at www.sec.gov. 

    Sandy Spring Bancorp, Inc. and Subsidiaries
    FINANCIAL HIGHLIGHTS – UNAUDITED

        Three Months Ended
    December 31,
      %
    Change
      Year Ended
    December 31,
      %
    Change
    (Dollars in thousands, except per share data)     2024       2023         2024       2023    
    Results of operations:                        
    Net interest income   $ 86,086     $ 81,696     5 %   $ 327,126     $ 354,550     (8 )%
    Provision/ (credit) for credit losses     4,468       (3,445 )   N/M       14,192       (17,561 )   N/M  
    Non-interest income     21,646       16,560     31       79,315       67,078     18  
    Non-interest expense     134,241       67,142     100       343,288       275,054     25  
    Income/ (loss) before income tax expense     (30,977 )     34,559     N/M       48,961       164,135     (70 )
    Net income/ (loss)     (39,453 )     26,100     N/M       19,935       122,844     (84 )
                               
    Net income/ (loss) attributable to common shareholders   $ (39,457 )   $ 26,066     N/M     $ 19,902     $ 122,621     (84 )
    Pre-tax pre-provision net income/ (loss) (1)   $ (26,509 )   $ 31,114     N/M     $ 63,153     $ 146,574     (57 )
                               
    Return on average assets     (1.09 )%     0.73 %           0.14 %     0.87 %    
    Return on average common equity     (9.70 )%     6.70 %           1.25 %     8.04 %    
    Return on average tangible common equity (1)     5.46 %     9.26 %           6.73 %     11.06 %    
    Net interest margin     2.53 %     2.45 %           2.46 %     2.67 %    
    Efficiency ratio – GAAP basis (2)     124.61 %     68.33 %           84.46 %     65.24 %    
    Efficiency ratio – Non-GAAP basis (2)     67.16 %     66.16 %           67.07 %     60.99 %    
                               
    Per share data:                          
    Basic net income/ (loss) per common share   $ (0.87 )   $ 0.58     N/M     $ 0.44     $ 2.74     (84 )%
    Diluted net income/ (loss) per common share   $ (0.87 )   $ 0.58     N/M     $ 0.44     $ 2.73     (84 )
    Weighted average diluted common shares     45,133,834       45,009,574     —       45,227,487       44,947,263     1  
    Dividends declared per share   $ 0.34     $ 0.34     —     $ 1.36     $ 1.36     —  
    Book value per common share   $ 34.51     $ 35.36     (2 )   $ 34.51     $ 35.36     (2 )
    Tangible book value per common share (1)   $ 26.99     $ 26.64     1     $ 26.99     $ 26.64     1  
    Outstanding common shares     45,140,417       44,913,561     1       45,140,417       44,913,561     1  
                             
    Financial condition at period-end:                        
    Investment securities   $ 1,418,244     $ 1,414,453     — %   $ 1,418,244     $ 1,414,453     — %
    Loans     11,537,966       11,366,989     2       11,537,966       11,366,989     2  
    Assets     14,127,480       14,028,172     1       14,127,480       14,028,172     1  
    Deposits     11,745,665       10,996,538     7       11,745,665       10,996,538     7  
    Stockholders’ equity     1,558,011       1,588,142     (2 )     1,558,011       1,588,142     (2 )
                             
    Capital ratios:                        
    Tier 1 leverage (3)     9.39 %     9.51 %         9.39 %     9.51 %    
    Common equity tier 1 capital to risk-weighted assets (3)     11.36 %     10.90 %         11.36 %     10.90 %    
    Tier 1 capital to risk-weighted assets (3)     11.36 %     10.90 %         11.36 %     10.90 %    
    Total regulatory capital to risk-weighted assets (3)     15.38 %     14.92 %         15.38 %     14.92 %    
    Tangible common equity to tangible assets (4)     8.84 %     8.77 %         8.84 %     8.77 %    
    Average equity to average assets     11.26 %     10.97 %         11.31 %     10.87 %    
                             
    Credit quality ratios:                        
    Allowance for credit losses to loans     1.16 %     1.06 %         1.16 %     1.06 %    
    Non-performing loans to total loans     1.03 %     0.81 %         1.03 %     0.81 %    
    Non-performing assets to total assets     0.87 %     0.65 %         0.87 %     0.65 %    
    Allowance for credit losses to non-performing loans     112.59 %     131.59 %         112.59 %     131.59 %    
    Annualized net charge-offs/ (recoveries) to average loans (5)     0.06 %     — %         0.03 %     0.01 %    

    N/M – not meaningful

    (1) Represents a non-GAAP measure.
    (2) The efficiency ratio – GAAP basis is non-interest expense divided by net interest income plus non-interest income from the Condensed Consolidated Statements of Income. The traditional efficiency ratio – Non-GAAP basis excludes goodwill impairment loss, merger and acquisition expense, intangible asset amortization, pension settlement expense, severance expense and contingent payment expense from non-interest expense; and investment securities gains/ (losses) from non-interest income; and adds the tax-equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights.
    (3) Estimated ratio at December 31, 2024.
    (4) The tangible common equity to tangible assets ratio is a non-GAAP ratio that divides assets excluding goodwill and other intangible assets into stockholders’ equity after deducting goodwill and other intangible assets. See the Reconciliation Table included with these Financial Highlights.
    (5) Calculation utilizes average loans, excluding residential mortgage loans held-for-sale.
       

    Sandy Spring Bancorp, Inc. and Subsidiaries
    RECONCILIATION TABLE – UNAUDITED (CONTINUED)
    OPERATING EARNINGS – METRICS

        Three Months Ended
    December 31,
      Year Ended
    December 31,
    (Dollars in thousands)     2024       2023       2024       2023  
    Core earnings (non-GAAP):                
    Net income/ (loss) (GAAP)   $ (39,453 )   $ 26,100     $ 19,935     $ 122,844  
    Plus/ (less) non-GAAP adjustments:                
    Merger, acquisition and disposal expense(2)     4,164       —       4,164       —  
    Amortization of intangible assets (net of tax)(1)     1,937       1,047       6,801       3,898  
    Goodwill impairment loss(2)     54,391       —       54,391       —  
    Severance expense (net of tax)(1)     —       —       —       1,445  
    Pension settlement expense (net of tax)(1)     —       —       —       6,088  
    Investment securities gains/ losses     —       —       —       —  
    Contingent payment expense (net of tax)(1)     —       —       —       27  
    Core earnings (Non-GAAP)   $ 21,039     $ 27,147     $ 85,291     $ 134,302  
                     
    Core earnings per diluted common share (non-GAAP):                
    Weighted average common shares outstanding – diluted (GAAP)     45,133,834       45,009,574       45,227,487       44,947,263  
                     
    Earnings/ (loss) per diluted common share (GAAP)   $ (0.87 )   $ 0.58     $ 0.44     $ 2.73  
    Core earnings per diluted common share (non-GAAP)   $ 0.47     $ 0.60     $ 1.89     $ 2.99  
                     
    Core return on average assets (non-GAAP):                
    Average assets (GAAP)   $ 14,362,321     $ 14,090,423     $ 14,129,795     $ 14,055,645  
                     
    Return on average assets (GAAP)     (1.09 )%     0.73 %     0.14 %     0.87 %
    Core return on average assets (non-GAAP)     0.58 %     0.76 %     0.60 %     0.96 %
                     
    Return/ Core return on average tangible common equity (non-GAAP):                
    Net Income/ (loss) (GAAP)   $ (39,453 )   $ 26,100     $ 19,935     $ 122,844  
    Plus: Amortization of intangible assets (net of tax)(1)     1,937       1,047       6,801       3,898  
    Plus: Goodwill impairment loss(2)     54,391       —       54,391       —  
    Net income adjusted (non-GAAP)   $ 16,875     $ 27,147     $ 81,127     $ 126,742  
                     
    Average total stockholders’ equity (GAAP)   $ 1,617,633     $ 1,546,312     $ 1,597,456     $ 1,528,242  
    Average goodwill     (356,341 )     (363,436 )     (361,653 )     (363,436 )
    Average other intangible assets, net     (30,885 )     (20,162 )     (30,178 )     (18,596 )
    Average tangible common equity (non-GAAP)   $ 1,230,407     $ 1,162,714     $ 1,205,625     $ 1,146,210  
                     
    Return on average tangible common equity (non-GAAP)     5.46 %     9.26 %     6.73 %     11.06 %
    Core return on average tangible common equity (non-GAAP)     6.80 %     9.26 %     7.07 %     11.72 %
    (1) Tax adjustments have been determined using the combined marginal federal and state rate of 25.48% and 25.37% for 2024 and 2023, respectively.
    (2) Adjustment is not tax-effected as it represents a tax nondeductible item.
       

    Sandy Spring Bancorp, Inc. and Subsidiaries
    RECONCILIATION TABLE – UNAUDITED

        Three Months Ended
    December 31,
      Year Ended
    December 31,
    (Dollars in thousands)     2024       2023       2024       2023  
    Pre-tax pre-provision net income:                
    Net income/ (loss) (GAAP)   $         (39,453 )   $         26,100     $         19,935     $         122,844  
    Plus/ (less) non-GAAP adjustments:                
    Income tax expense             8,476               8,459               29,026               41,291  
    Provision/ (credit) for credit losses             4,468               (3,445 )             14,192               (17,561 )
    Pre-tax pre-provision net income/ (loss) (non-GAAP)   $ (26,509 )   $ 31,114     $ 63,153     $ 146,574  
                     
    Efficiency ratio (GAAP):                
    Non-interest expense   $ 134,241     $ 67,142     $ 343,288     $ 275,054  
                     
    Net interest income plus non-interest income   $ 107,732     $ 98,256     $ 406,441     $ 421,628  
                     
    Efficiency ratio (GAAP)     124.61 %     68.33 %     84.46 %     65.24 %
                     
    Efficiency ratio (Non-GAAP):                
    Non-interest expense   $ 134,241     $ 67,142     $ 343,288     $ 275,054  
    Less non-GAAP adjustments:                
    Amortization of intangible assets     2,599       1,403       9,126       5,223  
    Merger, acquisition and disposal expense     4,164       —       4,164       —  
    Goodwill impairment loss     54,391       —       54,391       —  
    Severance expense     —       —       —       1,939  
    Pension settlement expense     —       —       —       8,157  
    Contingent payment expense     —       —       —       36  
    Non-interest expense – as adjusted   $ 73,087     $ 65,739     $ 275,607     $ 259,699  
                     
    Net interest income plus non-interest income   $ 107,732     $ 98,256     $ 406,441     $ 421,628  
    Plus non-GAAP adjustment:                
    Tax-equivalent income     1,100       1,113       4,459       4,157  
    Less/ (plus) non-GAAP adjustment:                
    Investment securities gains/ (losses)     —       —       —       —  
    Net interest income plus non-interest income – as adjusted   $ 108,832     $ 99,369     $ 410,900     $ 425,785  
                     
    Efficiency ratio (Non-GAAP)     67.16 %     66.16 %     67.07 %     60.99 %
                     
    Tangible common equity ratio:                
    Total stockholders’ equity   $ 1,558,011     $ 1,588,142     $ 1,558,011     $ 1,588,142  
    Goodwill     (309,045 )     (363,436 )     (309,045 )     (363,436 )
    Other intangible assets, net     (30,748 )     (28,301 )     (30,748 )     (28,301 )
    Tangible common equity   $ 1,218,218     $ 1,196,405     $ 1,218,218     $ 1,196,405  
                     
    Total assets   $ 14,127,480     $ 14,028,172     $ 14,127,480     $ 14,028,172  
    Goodwill     (309,045 )     (363,436 )     (309,045 )     (363,436 )
    Other intangible assets, net     (30,748 )     (28,301 )     (30,748 )     (28,301 )
    Tangible assets   $ 13,787,687     $ 13,636,435     $ 13,787,687     $ 13,636,435  
                     
    Tangible common equity ratio     8.84 %     8.77 %     8.84 %     8.77 %
                     
    Outstanding common shares     45,140,417       44,913,561       45,140,417       44,913,561  
    Tangible book value per common share   $ 26.99     $ 26.64     $ 26.99     $ 26.64  
                                     

    Sandy Spring Bancorp, Inc. and Subsidiaries
    CONDENSED CONSOLIDATED STATEMENTS OF CONDITION – UNAUDITED

    (Dollars in thousands)   December 31,
    2024
      December 31,
    2023
    Assets        
    Cash and due from banks   $ 80,698     $ 82,257  
    Federal funds sold     —       245  
    Interest-bearing deposits with banks     438,265       463,396  
    Cash and cash equivalents     518,963       545,898  
    Residential mortgage loans held for sale (at fair value)     22,757       10,836  
    SBA loans held for sale     715       —  
    Investments held-to-maturity (fair values of $177,854 and $200,411 at December 31, 2024 and December 31, 2023, respectively)     215,747       236,165  
    Investments available-for-sale (at fair value)     1,140,783       1,102,681  
    Other investments, at cost     61,714       75,607  
    Total loans     11,537,966       11,366,989  
    Less: allowance for credit losses – loans     (134,401 )     (120,865 )
    Net loans     11,403,565       11,246,124  
    Premises and equipment, net     55,998       59,490  
    Other real estate owned     3,265       —  
    Accrued interest receivable     45,627       46,583  
    Goodwill     309,045       363,436  
    Other intangible assets, net     30,748       28,301  
    Other assets     318,553       313,051  
    Total assets   $ 14,127,480     $ 14,028,172  
             
    Liabilities        
    Noninterest-bearing deposits   $ 2,804,930     $ 2,914,161  
    Interest-bearing deposits     8,940,735       8,082,377  
    Total deposits     11,745,665       10,996,538  
    Securities sold under retail repurchase agreements     68,911       75,032  
    Federal Reserve Bank borrowings     —       300,000  
    Advances from FHLB     250,000       550,000  
    Subordinated debt     371,400       370,803  
    Total borrowings     690,311       1,295,835  
    Accrued interest payable and other liabilities     133,493       147,657  
    Total liabilities     12,569,469       12,440,030  
             
    Stockholders’ equity        
    Common stock — par value $1.00; shares authorized 100,000,000; shares issued and outstanding 45,140,417 and 44,913,561 at December 31, 2024 and December 31, 2023, respectively.     45,140       44,914  
    Additional paid in capital     748,905       742,243  
    Retained earnings     856,613       898,316  
    Accumulated other comprehensive loss     (92,647 )     (97,331 )
    Total stockholders’ equity     1,558,011       1,588,142  
    Total liabilities and stockholders’ equity   $ 14,127,480     $ 14,028,172  
                     

    Sandy Spring Bancorp, Inc. and Subsidiaries
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED

        Three Months Ended
    December 31,
      Year Ended
    December 31,
    (Dollars in thousands, except per share data)     2024       2023       2024     2023  
    Interest income:                
    Interest and fees on loans   $ 153,262     $ 148,655     $ 609,571   $ 579,960  
    Interest on mortgage loans held for sale     249       199       1,050     896  
    Interest on SBA loans held for sale     21       —       23     —  
    Interest on deposits with banks     7,997       8,456       25,398     22,435  
    Interest and dividend income on investment securities:                
    Taxable     7,821       6,454       29,140     26,992  
    Tax-advantaged     1,697       1,848       7,082     7,224  
    Interest on federal funds sold     —       4       8     17  
    Total interest income     171,047       165,616       672,272     637,524  
    Interest expense:                
    Interest on deposits     76,111       69,813       303,173     225,028  
    Interest on retail repurchase agreements and federal funds purchased     369       4,075       5,259     14,452  
    Interest on advances from FHLB     3,865       6,086       20,259     27,709  
    Interest on subordinated debt     4,616       3,946       16,455     15,785  
    Total interest expense     84,961       83,920       345,146     282,974  
    Net interest income     86,086       81,696       327,126     354,550  
    Provision/ (credit) for credit losses     4,468       (3,445 )     14,192     (17,561 )
    Net interest income after provision/ (credit) for credit losses     81,618       85,141       312,934     372,111  
    Non-interest income:                
    Service charges on deposit accounts     2,998       2,749       11,763     10,447  
    Mortgage banking activities     1,091       792       5,615     5,536  
    Wealth management income     10,920       9,219       42,071     36,633  
    Income from bank owned life insurance     3,213       1,207       7,496     4,210  
    Bank card fees     457       454       1,750     1,769  
    Other income     2,967       2,139       10,620     8,483  
    Total non-interest income     21,646       16,560       79,315     67,078  
    Non-interest expense:                
    Salaries and employee benefits     44,309       35,482       159,858     160,192  
    Occupancy expense of premises     4,727       4,558       19,005     18,778  
    Equipment expenses     4,252       3,987       15,924     15,675  
    Marketing     2,013       1,242       5,363     5,103  
    Outside data services     3,228       3,000       12,642     11,186  
    FDIC insurance     2,761       2,615       11,396     9,461  
    Amortization of intangible assets     2,599       1,403       9,126     5,223  
    Merger, acquisition and disposal expense     4,164       —       4,164     —  
    Professional fees and services     4,805       5,628       21,208     17,982  
    Goodwill impairment loss     54,391       —       54,391     —  
    Other expenses     6,992       9,227       30,211     31,454  
    Total non-interest expense     134,241       67,142       343,288     275,054  
    Income/ (loss) before income tax expense     (30,977 )     34,559       48,961     164,135  
    Income tax expense     8,476       8,459       29,026     41,291  
    Net income/ (loss)   $ (39,453 )   $ 26,100     $ 19,935   $ 122,844  
                     
    Net income per share amounts:                
    Basic net income/ (loss) per common share   $ (0.87 )   $ 0.58     $ 0.44   $ 2.74  
    Diluted net income/ (loss) per common share   $ (0.87 )   $ 0.58     $ 0.44   $ 2.73  
    Dividends declared per share   $ 0.34     $ 0.34     $ 1.36   $ 1.36  
                                   

    Sandy Spring Bancorp, Inc. and Subsidiaries
    HISTORICAL TRENDS – QUARTERLY FINANCIAL DATA – UNAUDITED

          2024       2023  
    (Dollars in thousands, except per share data)   Q4   Q3   Q2   Q1   Q4   Q3   Q2   Q1
    Profitability for the quarter:                                
    Tax-equivalent interest income   $ 172,147     $ 171,219     $ 166,252     $ 167,113     $ 166,729     $ 163,479     $ 159,156     $ 152,317  
    Interest expense             84,961       88,686       84,828       86,671       83,920       77,330       67,679       54,045  
    Tax-equivalent net interest income     87,186       82,533       81,424       80,442       82,809       86,149       91,477       98,272  
    Tax-equivalent adjustment     1,100       1,121       1,139       1,099       1,113       1,068       1,006       970  
    Provision/ (credit) for credit losses     4,468       6,316       1,020       2,388       (3,445 )     2,365       5,055       (21,536 )
    Non-interest income     21,646       19,715       19,587       18,367       16,560       17,391       17,176       15,951  
    Non-interest expense     134,241       72,937       68,104       68,006       67,142       72,471       69,136       66,305  
    Income/ (loss) before income tax expense     (30,977 )     21,874       30,748       27,316       34,559       27,636       33,456       68,484  
    Income tax expense     8,476       5,665       7,941       6,944       8,459       6,890       8,711       17,231  
    Net income/ (loss)   $ (39,453 )   $ 16,209     $ 22,807     $ 20,372     $ 26,100     $ 20,746     $ 24,745     $ 51,253  
    GAAP financial performance:                                
    Return on average assets   (1.09)%     0.46 %     0.66 %     0.58 %     0.73 %     0.58 %     0.70 %     1.49 %
    Return on average common equity   (9.70)%     4.01 %     5.81 %     5.17 %     6.70 %     5.35 %     6.46 %     13.93 %
    Return on average tangible common equity     5.46 %     5.88 %     8.27 %     7.39 %     9.26 %     7.42 %     8.93 %     19.10 %
    Net interest margin     2.53 %     2.44 %     2.46 %     2.41 %     2.45 %     2.55 %     2.73 %     2.99 %
    Efficiency ratio – GAAP basis     124.61 %     72.12 %     68.19 %     69.60 %     68.33 %     70.72 %     64.22 %     58.55 %
    Non-GAAP financial performance:                                
    Pre-tax pre-provision net income/ (loss)   $ (26,509 )   $ 28,190     $ 31,768     $ 29,704     $ 31,114     $ 30,001     $ 38,511     $ 46,948  
    Core after-tax earnings   $ 21,039     $ 17,936     $ 24,400     $ 21,916     $ 27,147     $ 27,766     $ 27,136     $ 52,253  
    Core return on average assets     0.58 %     0.50 %     0.70 %     0.63 %     0.76 %     0.78 %     0.77 %     1.52 %
    Core return on average common equity     5.17 %     4.44 %     6.21 %     5.56 %     6.97 %     7.16 %     7.09 %     14.20 %
    Core return on average tangible common equity     6.80 %     5.88 %     8.27 %     7.39 %     9.26 %     9.51 %     9.43 %     19.11 %
    Core earnings per diluted common share   $ 0.47     $ 0.40     $ 0.54     $ 0.49     $ 0.60     $ 0.62     $ 0.60     $ 1.16  
    Efficiency ratio – Non-GAAP basis     67.16 %     69.06 %     65.31 %     66.73 %     66.16 %     60.91 %     60.68 %     56.87 %
    Per share data:                        
    Net income/ (loss) attributable to common shareholders   $ (39,457 )   $ 16,205     $ 22,800     $ 20,346     $ 26,066     $ 20,719     $ 24,712     $ 51,084  
    Basic net income/ (loss) per common share   $ (0.87 )   $ 0.36     $ 0.51     $ 0.45     $ 0.58     $ 0.46     $ 0.55     $ 1.14  
    Diluted net income/ (loss) per common share   $ (0.87 )   $ 0.36     $ 0.51     $ 0.45     $ 0.58     $ 0.46     $ 0.55     $ 1.14  
    Weighted average diluted common shares     45,133,834       45,242,920       45,145,214       45,086,471       45,009,574       44,960,455       44,888,759       44,872,582  
    Dividends declared per share   $ 0.34     $ 0.34     $ 0.34     $ 0.34     $ 0.34     $ 0.34     $ 0.34     $ 0.34  
    Non-interest income:                                
    Service charges on deposit accounts     2,998       3,009       2,939       2,817       2,749       2,704       2,606       2,388  
    Mortgage banking activities     1,091       1,529       1,621       1,374       792       1,682       1,817       1,245  
    Wealth management income     10,920       10,738       10,455       9,958       9,219       9,391       9,031       8,992  
    Income from bank owned life insurance     3,213       1,307       1,816       1,160       1,207       845       1,251       907  
    Bank card fees     457       435       445       413       454       450       447       418  
    Other income     2,967       2,697       2,311       2,645       2,139       2,319       2,024       2,001  
    Total non-interest income   $ 21,646     $ 19,715     $ 19,587     $ 18,367     $ 16,560     $ 17,391     $ 17,176     $ 15,951  
    Non-interest expense:                                
    Salaries and employee benefits   $ 44,309     $ 41,030     $ 37,821     $ 36,698     $ 35,482     $ 44,853     $ 40,931     $ 38,926  
    Occupancy expense of premises     4,727       4,657       4,805       4,816       4,558       4,609       4,764       4,847  
    Equipment expenses     4,252       3,841       3,868       3,963       3,987       3,811       3,760       4,117  
    Marketing     2,013       1,320       1,288       742       1,242       729       1,589       1,543  
    Outside data services     3,228       3,025       3,286       3,103       3,000       2,819       2,853       2,514  
    FDIC insurance     2,761       2,773       2,951       2,911       2,615       2,333       2,375       2,138  
    Amortization of intangible assets     2,599       2,323       2,135       2,069       1,403       1,245       1,269       1,306  
    Merger, acquisition and disposal expense     4,164       —       —       —       —       —       —       —  
    Professional fees and services     4,805       6,577       4,946       4,880       5,628       4,509       4,161       3,684  
    Goodwill impairment loss     54,391       —       —       —       —       —       —       —  
    Other expenses     6,992       7,391       7,004       8,824       9,227       7,563       7,434       7,230  
    Total non-interest expense   $ 134,241     $ 72,937     $ 68,104     $ 68,006     $ 67,142     $ 72,471     $ 69,136     $ 66,305  
                                                                     

    Sandy Spring Bancorp, Inc. and Subsidiaries
    HISTORICAL TRENDS – QUARTERLY FINANCIAL DATA – UNAUDITED

          2024       2023  
    (Dollars in thousands, except per share data)   Q4   Q3   Q2   Q1   Q4   Q3   Q2   Q1
    Balance sheets at quarter end:                            
    Commercial investor real estate loans   $ 4,779,593     $ 4,868,467     $ 4,933,329     $ 4,997,879     $ 5,104,425     $ 5,137,694     $ 5,131,210     $ 5,167,456  
    Commercial owner-occupied real estate loans     1,748,772       1,737,327       1,747,708       1,741,113       1,755,235       1,760,384       1,770,135       1,769,928  
    Commercial AD&C loans     1,327,292       1,255,609       1,184,296       1,090,259       988,967       938,673       1,045,742       1,046,665  
    Commercial business loans     1,653,135       1,620,926       1,601,510       1,509,592       1,504,880       1,454,709       1,423,614       1,437,478  
    Residential mortgage loans     1,537,589       1,529,786       1,521,890       1,511,624       1,474,521       1,432,051       1,385,743       1,328,524  
    Residential construction loans     49,028       53,639       78,027       97,685       121,419       160,345       190,690       223,456  
    Consumer loans     442,557       426,167       417,161       416,132       417,542       416,436       422,505       421,734  
    Total loans     11,537,966       11,491,921       11,483,921       11,364,284       11,366,989       11,300,292       11,369,639       11,395,241  
    Allowance for credit losses – loans     (134,401 )     (131,428 )     (125,863 )     (123,096 )     (120,865 )     (123,360 )     (120,287 )     (117,613 )
    Residential mortgage loans held for sale     22,757       21,489       18,961       16,627       10,836       19,235       21,476       16,262  
    SBA loans held for sale     715       425       —       —       —       —       —       —  
    Investment securities     1,418,244       1,440,488       1,401,511       1,405,490       1,414,453       1,392,078       1,463,554       1,528,336  
    Total assets     14,127,480       14,383,073       14,008,343       13,888,133       14,028,172       14,135,085       13,994,545       14,129,007  
    Noninterest-bearing demand deposits     2,804,930       2,903,063       2,931,405       2,817,928       2,914,161       3,013,905       3,079,896       3,228,678  
    Total deposits     11,745,665       11,737,694       11,340,228       11,227,200       10,996,538       11,151,012       10,958,922       11,075,991  
    Customer repurchase agreements     68,911       70,767       75,038       71,529       75,032       66,581       74,510       47,627  
    Total stockholders’ equity     1,558,011       1,628,837       1,599,004       1,589,364       1,588,142       1,537,914       1,539,032       1,536,865  
    Quarterly average balance sheets:                            
    Commercial investor real estate loans   $ 4,825,594     $ 4,874,003     $ 4,964,406     $ 5,057,334     $ 5,125,028     $ 5,125,459     $ 5,146,632     $ 5,136,204  
    Commercial owner-occupied real estate loans     1,739,686       1,741,663       1,734,106       1,746,042       1,755,048       1,769,717       1,773,039       1,769,680  
    Commercial AD&C loans     1,300,966       1,253,035       1,133,506       1,030,763       960,646       995,682       1,057,205       1,082,791  
    Commercial business loans     1,606,641       1,579,001       1,551,798       1,508,336       1,433,035       1,442,518       1,441,489       1,444,588  
    Residential mortgage loans     1,535,924       1,526,445       1,518,748       1,491,277       1,451,614       1,406,929       1,353,809       1,307,761  
    Residential construction loans     47,788       64,684       86,638       110,456       142,325       174,204       211,590       223,313  
    Consumer loans     433,185       421,003       417,206       417,539       419,299       421,189       423,306       424,122  
    Total loans     11,489,784       11,459,834       11,406,408       11,361,747       11,286,995       11,335,698       11,407,070       11,388,459  
    Residential mortgage loans held for sale     13,768       19,889       14,497       8,142       10,132       13,714       17,480       8,324  
    SBA loans held for sale     591       65       —       —       —       —       —      
    Investment securities     1,542,401       1,531,378       1,538,624       1,536,127       1,544,173       1,589,342       1,639,324       1,679,593  
    Interest-earning assets     13,713,618       13,474,697       13,292,995       13,411,810       13,462,583       13,444,117       13,423,589       13,316,165  
    Total assets     14,362,321       14,136,037       13,956,261       14,061,935       14,090,423       14,086,342       14,094,653       13,949,276  
    Noninterest-bearing demand deposits     2,813,545       2,783,906       2,790,620       2,730,295       2,958,254       3,041,101       3,137,971       3,480,433  
    Total deposits     11,807,983       11,483,524       11,245,476       11,086,145       11,089,587       11,076,724       10,928,038       11,049,991  
    Customer repurchase agreements     65,253       63,436       62,161       72,836       66,622       67,298       58,382       60,626  
    Total interest-bearing liabilities     9,792,134       9,600,905       9,441,015       9,583,074       9,418,666       9,332,617       9,257,652       8,806,720  
    Total stockholders’ equity     1,617,633       1,607,377       1,579,582       1,584,902       1,546,312       1,538,553       1,535,465       1,491,929  
    Financial measures:                                
    Average equity to average assets     11.26 %     11.37 %     11.32 %     11.27 %     10.97 %     10.92 %     10.89 %     10.70 %
    Average investment securities to average earning assets     11.25 %     11.36 %     11.57 %     11.45 %     11.47 %     11.82 %     12.21 %     12.61 %
    Average loans to average earning assets     83.78 %     85.05 %     85.81 %     84.71 %     83.84 %     84.32 %     84.98 %     85.52 %
    Loans to assets     81.67 %     79.90 %     81.98 %     81.83 %     81.03 %     79.94 %     81.24 %     80.65 %
    Loans to deposits     98.23 %     97.91 %     101.27 %     101.22 %     103.37 %     101.34 %     103.75 %     102.88 %
    Assets under management   $ 6,577,150     $ 6,567,752     $ 6,215,697     $ 6,165,509     $ 5,999,520     $ 5,536,499     $ 5,742,888     $ 5,477,560  
    Capital measures:                                
    Tier 1 leverage(1)     9.39 %     9.59 %     9.70 %     9.56 %     9.51 %     9.50 %     9.42 %     9.44 %
    Common equity tier 1 capital to risk-weighted assets(1)     11.36 %     11.27 %     11.28 %     10.96 %     10.90 %     10.83 %     10.65 %     10.53 %
    Tier 1 capital to risk-weighted assets(1)     11.36 %     11.27 %     11.28 %     10.96 %     10.90 %     10.83 %     10.65 %     10.53 %
    Total regulatory capital to risk-weighted assets(1)     15.38 %     15.53 %     15.49 %     15.05 %     14.92 %     14.85 %     14.60 %     14.43 %
    Book value per common share   $ 34.51     $ 36.10     $ 35.45     $ 35.37     $ 35.36     $ 34.26     $ 34.31     $ 34.37  
    Outstanding common shares     45,140,417       45,125,078       45,109,671       44,940,147       44,913,561       44,895,158       44,862,369       44,712,497  
    (1) Estimated ratio at December 31, 2024.
       

    Sandy Spring Bancorp, Inc. and Subsidiaries
    LOAN PORTFOLIO QUALITY DETAIL – UNAUDITED

          2024     2023
    (Dollars in thousands)   December 31,   September 30,   June 30,   March 31,   December 31,   September 30,   June 30,   March 31,
    Non-performing assets:                                
    Loans 90 days past due:                                
    Commercial real estate:                                
    Commercial investor real estate   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ 215
    Commercial owner-occupied real estate     —     —     —     —     —     —     —     —
    Commercial AD&C     —     —     —     —     —     —     —     —
    Commercial business     —     —     —     20     20     415     29     3,002
    Residential real estate:                                
    Residential mortgage     232     399     338     340     342     —     692     352
    Residential construction     —     —     —     —     —     —     —     —
    Consumer     —     —     —     —     —     —     —     —
    Total loans 90 days past due     232     399     338     360     362     415     721     3,569
    Non-accrual loans:                                
    Commercial real estate:                                
    Commercial investor real estate     58,071     57,578     55,498     55,579     58,658     20,108     20,381     15,451
    Commercial owner-occupied real estate     7,008     9,639     9,403     4,394     4,640     4,744     4,846     4,949
    Commercial AD&C     31,314     31,816     2,127     556     1,259     1,422     569     —
    Commercial business     7,590     9,044     8,455     7,164     10,051     9,671     9,393     9,443
    Residential real estate:                                
    Residential mortgage     10,939     11,996     12,228     11,835     12,332     10,766     10,153     8,935
    Residential construction     521     539     539     542     443     449     —     —
    Consumer     3,697     4,258     4,400     4,011     4,102     4,187     3,396     4,900
    Total non-accrual loans     119,140     124,870     92,650     84,081     91,485     51,347     48,738     43,678
    Total non-performing loans     119,372     125,269     92,988     84,441     91,847     51,762     49,459     47,247
    Other real estate owned (OREO)     3,265     3,265     2,700     2,700     —     261     611     645
    Total non-performing assets   $ 122,637   $ 128,534   $ 95,688   $ 87,141   $ 91,847   $ 52,023   $ 50,070   $ 47,892
                                                     
        For the Quarter Ended,
    (Dollars in thousands)   December 31,
    2024
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
    z September 30,
    2023
      June 30,
    2023
      March 31,
    2023
    Analysis of non-accrual loan activity:                                
    Balance at beginning of period   $ 124,870     $ 92,650     $ 84,081     $ 91,485     $ 51,347     $ 48,738     $ 43,678     $ 34,782  
    Non-accrual balances transferred to OREO     —       (565 )     —       (2,700 )     —       —       —       —  
    Non-accrual balances charged-off     (1,698 )     (787 )     —       (1,550 )     —       (183 )     (2,049 )     (126 )
    Net payments or draws     (5,065 )     (3,095 )     (1,427 )     (4,017 )     (7,619 )     (1,545 )     (1,654 )     (10,212 )
    Loans placed on non-accrual     2,847       36,667       10,038       1,490       47,920       4,967       9,276       19,714  
    Non-accrual loans brought current     (1,814 )     —       (42 )     (627 )     (163 )     (630 )     (513 )     (480 )
    Balance at end of period   $ 119,140     $ 124,870     $ 92,650     $ 84,081     $ 91,485     $ 51,347     $ 48,738     $ 43,678  
                                     
    Analysis of allowance for credit losses – loans:                                
    Balance at beginning of period   $ 131,428     $ 125,863     $ 123,096     $ 120,865     $ 123,360     $ 120,287     $ 117,613     $ 136,242  
    Provision/ (credit) for credit losses – loans     4,653       6,310       2,961       3,331       (2,574 )     3,171       4,454       (18,945 )
    Less loans charged-off, net of recoveries:                                
    Commercial real estate:                                
    Commercial investor real estate     (3 )     397       (3 )     (2 )     (3 )     (3 )     (14 )     (5 )
    Commercial owner-occupied real estate     (30 )     (27 )     (27 )     (27 )     (27 )     (25 )     (27 )     (26 )
    Commercial AD&C     (23 )     111       (23 )     (283 )     —       —       —       —  
    Commercial business     1,656       250       (28 )     1,550       (105 )     15       363       (127 )
    Residential real estate:                                
    Residential mortgage     (7 )     (35 )     39       (6 )     (6 )     (4 )     35       21  
    Residential construction     —       —       —       —       —       —       —       —  
    Consumer     87       49       236       (132 )     62       115       1,423       (179 )
    Net charge-offs/ (recoveries)     1,680       745       194       1,100       (79 )     98       1,780       (316 )
    Balance at the end of period   $ 134,401     $ 131,428     $ 125,863     $ 123,096     $ 120,865     $ 123,360     $ 120,287     $ 117,613  
                                     
    Asset quality ratios:                                
    Non-performing loans to total loans     1.03 %     1.09 %     0.81 %     0.74 %     0.81 %     0.46 %     0.44 %     0.41 %
    Non-performing assets to total assets     0.87 %     0.89 %     0.68 %     0.63 %     0.65 %     0.37 %     0.36 %     0.34 %
    Allowance for credit losses to total loans     1.16 %     1.14 %     1.10 %     1.08 %     1.06 %     1.09 %     1.06 %     1.03 %
    Allowance for credit losses to non-performing loans     112.59 %     104.92 %     135.35 %     145.78 %     131.59 %     238.32 %     243.21 %     248.93 %
    Annualized net charge-offs/ (recoveries) to average loans     0.06 %     0.03 %     0.01 %     0.04 %     — %     — %     0.06 %       (0.01 )%
                                                                     

    Sandy Spring Bancorp, Inc. and Subsidiaries
    CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES – UNAUDITED

        Three Months Ended December 31,
          2024       2023  
    (Dollars in thousands and tax-equivalent)   Average
    Balances
      Interest (1)   Annualized
    Average
    Yield/Rate
      Average
    Balances
      Interest (1)   Annualized
    Average
    Yield/Rate
    Assets                        
    Commercial investor real estate loans   $ 4,825,594     $ 57,898   4.77 %   $ 5,125,028     $ 60,909   4.72 %
    Commercial owner-occupied real estate loans     1,739,686       21,497   4.92       1,755,048       21,011   4.75  
    Commercial AD&C loans     1,300,966       24,303   7.43       960,646       20,510   8.47  
    Commercial business loans     1,606,641       26,374   6.53       1,433,035       23,822   6.60  
    Total commercial loans     9,472,887       130,072   5.46       9,273,757       126,252   5.40  
    Residential mortgage loans     1,535,924       14,676   3.82       1,451,614       12,984   3.58  
    Residential construction loans     47,788       672   5.59       142,325       1,515   4.22  
    Consumer loans     433,185       8,496   7.80       419,299       8,543   8.08  
    Total residential and consumer loans     2,016,897       23,844   4.72       2,013,238       23,042   4.56  
    Total loans (2)     11,489,784       153,916   5.33       11,286,995       149,294   5.25  
    Residential mortgage loans held for sale     13,768       249   7.24       10,132       199   7.86  
    SBA loans held for sale     591       21   14.50       —       —   —  
    Taxable securities     1,214,327       7,821   2.58       1,193,408       6,454   2.16  
    Tax-advantaged securities     328,074       2,143   2.61       350,765       2,322   2.64  
    Total investment securities (3)     1,542,401       9,964   2.58       1,544,173       8,776   2.27  
    Interest-bearing deposits with banks     667,074       7,997   4.77       621,007       8,456   5.40  
    Federal funds sold     —       —   —       276       4   5.43  
    Total interest-earning assets     13,713,618       172,147   5.00       13,462,583       166,729   4.92  
                             
    Less: allowance for credit losses – loans     (131,565 )             (121,851 )        
    Cash and due from banks     77,280               89,143          
    Premises and equipment, net     56,925               69,162          
    Other assets     646,063               591,386          
    Total assets   $ 14,362,321             $ 14,090,423          
                             
    Liabilities and Stockholders’ Equity                        
    Interest-bearing demand deposits   $ 1,519,835     $ 6,510   1.70 %   $ 1,474,748     $ 5,612   1.51 %
    Regular savings deposits     1,763,353       13,768   3.11       1,153,610       9,715   3.34  
    Money market savings deposits     3,116,359       26,657   3.40       2,697,930       24,456   3.60  
    Time deposits     2,594,891       29,176   4.47       2,805,045       30,030   4.25  
    Total interest-bearing deposits     8,994,438       76,111   3.37       8,131,333       69,813   3.41  
    Repurchase agreements     65,253       327   2.00       66,622       354   2.11  
    Federal funds purchased and Federal Reserve Bank borrowings     3,525       42   4.69       300,000       3,721   4.92  
    Advances from FHLB     357,609       3,865   4.30       550,000       6,086   4.39  
    Subordinated debt     371,309       4,616   4.97       370,711       3,946   4.26  
    Total borrowings     797,696       8,850   4.41       1,287,333       14,107   4.35  
    Total interest-bearing liabilities     9,792,134       84,961   3.45       9,418,666       83,920   3.54  
                             
    Noninterest-bearing demand deposits     2,813,545               2,958,254          
    Other liabilities     139,009               167,191          
    Stockholders’ equity     1,617,633               1,546,312          
    Total liabilities and stockholders’ equity   $ 14,362,321             $ 14,090,423          
                             
    Tax-equivalent net interest income and spread       $ 87,186   1.55 %       $ 82,809   1.38 %
    Less: tax-equivalent adjustment         1,100             1,113    
    Net interest income       $ 86,086           $ 81,696    
                             
    Interest income/earning assets           5.00 %           4.92 %
    Interest expense/earning assets           2.47             2.47  
    Net interest margin           2.53 %           2.45 %
    (1) Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.48% and 25.37% for 2024 and 2023, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.1 million and $1.1 million in 2024 and 2023, respectively.
    (2) Non-accrual loans are included in the average balances.
    (3) Available-for-sale investments are presented at amortized cost.
       

    Sandy Spring Bancorp, Inc. and Subsidiaries
    CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES – UNAUDITED

        Year Ended December 31,
          2024       2023  
    (Dollars in thousands and tax-equivalent)   Average
    Balances
      Interest (1)   Annualized
    Average
    Yield/Rate
      Average
    Balances
      Interest (1)   Annualized
    Average
    Yield/Rate
    Assets                        
    Commercial investor real estate loans   $ 4,929,894     $ 234,402   4.75 %   $ 5,133,279     $ 237,976   4.64 %
    Commercial owner-occupied real estate loans     1,740,376       84,587   4.86       1,766,839       82,049   4.64  
    Commercial AD&C loans     1,180,100       93,082   7.89       1,023,669       81,515   7.96  
    Commercial business loans     1,561,616       105,400   6.75       1,440,382       92,080   6.39  
    Total commercial loans     9,411,986       517,471   5.50       9,364,169       493,620   5.27  
    Residential mortgage loans     1,518,170       56,644   3.73       1,380,496       48,909   3.54  
    Residential construction loans     77,276       3,880   5.02       187,599       6,817   3.63  
    Consumer loans     422,260       34,189   8.10       421,963       32,946   7.81  
    Total residential and consumer loans     2,017,706       94,713   4.69       1,990,058       88,672   4.46  
    Total loans (2)     11,429,692       612,184   5.36       11,354,227       582,292   5.13  
    Residential mortgage loans held for sale     14,089       1,050   7.45       12,421       896   7.21  
    SBA loans held for sale     165       23   14.17       —       —   —  
    Taxable securities     1,200,218       29,140   2.43       1,254,739       26,992   2.15  
    Tax-advantaged securities     336,913       8,928   2.65       357,933       9,049   2.53  
    Total investment securities (3)     1,537,131       38,068   2.48       1,612,672       36,041   2.23  
    Interest-bearing deposits with banks     492,649       25,398   5.16       432,392       22,435   5.19  
    Federal funds sold     216       8   3.79       393       17   4.26  
    Total interest-earning assets     13,473,942       676,731   5.02       13,412,105       641,681   4.78  
                             
    Less: allowance for credit losses – loans     (125,131 )             (124,624 )        
    Cash and due from banks     81,761               93,494          
    Premises and equipment, net     58,571               69,886          
    Other assets     640,652               604,784          
    Total assets   $ 14,129,795             $ 14,055,645          
                             
    Liabilities and Stockholders’ Equity                        
    Interest-bearing demand deposits   $ 1,480,668     $ 25,368   1.71 %   $ 1,429,219     $ 16,077   1.12 %
    Regular savings deposits     1,643,305       56,365   3.43       784,575       17,546   2.24  
    Money market savings deposits     2,914,712       105,847   3.63       2,974,580       93,432   3.14  
    Time deposits     2,588,713       115,593   4.47       2,695,232       97,973   3.64  
    Total interest-bearing deposits     8,627,398       303,173   3.51       7,883,606       225,028   2.85  
    Repurchase agreements     65,913       1,370   2.08       63,259       915   1.45  
    Federal funds purchased and Federal Reserve Bank borrowings     75,227       3,889   5.17       273,508       13,537   4.95  
    Advances from FHLB     465,164       20,259   4.36       615,082       27,709   4.50  
    Subordinated debt     371,085       16,455   4.43       370,487       15,785   4.26  
    Total borrowings     977,389       41,973   4.29       1,322,336       57,946   4.38  
    Total interest-bearing liabilities     9,604,787       345,146   3.59       9,205,942       282,974   3.07  
                             
    Noninterest-bearing demand deposits     2,779,696               3,152,699          
    Other liabilities     147,856               168,762          
    Stockholders’ equity     1,597,456               1,528,242          
    Total liabilities and stockholders’ equity   $ 14,129,795             $ 14,055,645          
                             
    Tax-equivalent net interest income and spread       $ 331,585   1.43 %       $ 358,707   1.71 %
    Less: tax-equivalent adjustment         4,459             4,157    
    Net interest income       $ 327,126           $ 354,550    
                             
    Interest income/earning assets           5.02 %           4.78 %
    Interest expense/earning assets           2.56             2.11  
    Net interest margin           2.46 %           2.67 %
    (1) Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.48% and 25.37% for 2024 and 2023, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $4.5 million and $4.2 million in 2024 and 2023, respectively.
    (2) Non-accrual loans are included in the average balances.
    (3) Available-for-sale investments are presented at amortized cost.

    The MIL Network –

    January 29, 2025
  • MIL-OSI Europe: Note “Antiqua et nova” on the relationship between Artficial Intelligence and Human Intelligence

    Source: The Holy See

    Note “Antiqua et nova” on the relationship between Artficial Intelligence and Human Intelligence, 28.01.2025
    ANTIQUA ET NOVA:
    Note on the Relationship BetweenArtificial Intelligence and Human Intelligence
    I. Introduction
    1. With wisdom both ancient and new (cf. Mt. 13:52), we are called to reflect on the current challenges and opportunities posed by scientific and technological advancements, particularly by the recent development of Artificial Intelligence (AI). The Christian tradition regards the gift of intelligence as an essential aspect of how humans are created “in the image of God” (Gen. 1:27). Starting from an integral vision of the human person and the biblical calling to “till” and “keep” the earth (Gen. 2:15), the Church emphasizes that this gift of intelligence should be expressed through the responsible use of reason and technical abilities in the stewardship of the created world.
    2. The Church encourages the advancement of science, technology, the arts, and other forms of human endeavor, viewing them as part of the “collaboration of man and woman with God in perfecting the visible creation.”[1] As Sirach affirms, God “gave skill to human beings, that he might be glorified in his marvelous works” (Sir. 38:6). Human abilities and creativity come from God and, when used rightly, glorify God by reflecting his wisdom and goodness. In light of this, when we ask ourselves what it means to “be human,” we cannot exclude a consideration of our scientific and technological abilities.
    3. It is within this perspective that the present Note addresses the anthropological and ethical challenges raised by AI—issues that are particularly significant, as one of the goals of this technology is to imitate the human intelligence that designed it. For instance, unlike many other human creations, AI can be trained on the results of human creativity and then generate new “artifacts” with a level of speed and skill that often rivals or surpasses what humans can do, such as producing text or images indistinguishable from human compositions. This raises critical concerns about AI’s potential role in the growing crisis of truth in the public forum. Moreover, this technology is designed to learn and make certain choices autonomously, adapting to new situations and providing solutions not foreseen by its programmers, and thus, it raises fundamental questions about ethical responsibility and human safety, with broader implications for society as a whole. This new situation has prompted many people to reflect on what it means to be human and the role of humanity in the world.
    4. Taking all this into account, there is broad consensus that AI marks a new and significant phase in humanity’s engagement with technology, placing it at the heart of what Pope Francis has described as an “epochal change.”[2] Its impact is felt globally and in a wide range of areas, including interpersonal relationships, education, work, art, healthcare, law, warfare, and international relations. As AI advances rapidly toward even greater achievements, it is critically important to consider its anthropological and ethical implications. This involves not only mitigating risks and preventing harm but also ensuring that its applications are used to promote human progress and the common good.
    5. To contribute positively to the discernment regarding AI, and in response to Pope Francis’ call for a renewed “wisdom of heart,”[3] the Church offers its experience through the anthropological and ethical reflections contained in this Note. Committed to its active role in the global dialogue on these issues, the Church invites those entrusted with transmitting the faith—including parents, teachers, pastors, and bishops—to dedicate themselves to this critical subject with care and attention. While this document is intended especially for them, it is also meant to be accessible to a broader audience, particularly those who share the conviction that scientific and technological advances should be directed toward serving the human person and the common good.[4]
    6. To this end, the document begins by distinguishing between concepts of intelligence in AI and in human intelligence. It then explores the Christian understanding of human intelligence, providing a framework rooted in the Church’s philosophical and theological tradition. Finally, the document offers guidelines to ensure that the development and use of AI uphold human dignity and promote the integral development of the human person and society.
    II. What is Artificial Intelligence?
    7. The concept of “intelligence” in AI has evolved over time, drawing on a range of ideas from various disciplines. While its origins extend back centuries, a significant milestone occurred in 1956 when the American computer scientist John McCarthy organized a summer workshop at Dartmouth University to explore the problem of “Artificial Intelligence,” which he defined as “that of making a machine behave in ways that would be called intelligent if a human were so behaving.”[5] This workshop launched a research program focused on designing machines capable of performing tasks typically associated with the human intellect and intelligent behavior.
    8. Since then, AI research has advanced rapidly, leading to the development of complex systems capable of performing highly sophisticated tasks.[6] These so-called “narrow AI” systems are typically designed to handle specific and limited functions, such as translating languages, predicting the trajectory of a storm, classifying images, answering questions, or generating visual content at the user’s request. While the definition of “intelligence” in AI research varies, most contemporary AI systems—particularly those using machine learning—rely on statistical inference rather than logical deduction. By analyzing large datasets to identify patterns, AI can “predict”[7] outcomes and propose new approaches, mimicking some cognitive processes typical of human problem-solving. Such achievements have been made possible through advances in computing technology (including neural networks, unsupervised machine learning, and evolutionary algorithms) as well as hardware innovations (such as specialized processors). Together, these technologies enable AI systems to respond to various forms of human input, adapt to new situations, and even suggest novel solutions not anticipated by their original programmers.[8]
    9. Due to these rapid advancements, many tasks once managed exclusively by humans are now entrusted to AI. These systems can augment or even supersede what humans are able to do in many fields, particularly in specialized areas such as data analysis, image recognition, and medical diagnosis. While each “narrow AI” application is designed for a specific task, many researchers aspire to develop what is known as “Artificial General Intelligence” (AGI)—a single system capable of operating across all cognitive domains and performing any task within the scope of human intelligence. Some even argue that AGI could one day achieve the state of “superintelligence,” surpassing human intellectual capacities, or contribute to “super-longevity” through advances in biotechnology. Others, however, fear that these possibilities, even if hypothetical, could one day eclipse the human person, while still others welcome this potential transformation.[9]
    10. Underlying this and many other perspectives on the subject is the implicit assumption that the term “intelligence” can be used in the same way to refer to both human intelligence and AI. Yet, this does not capture the full scope of the concept. In the case of humans, intelligence is a faculty that pertains to the person in his or her entirety, whereas in the context of AI, “intelligence” is understood functionally, often with the presumption that the activities characteristic of the human mind can be broken down into digitized steps that machines can replicate.[10]
    11. This functional perspective is exemplified by the “Turing Test,” which considers a machine “intelligent” if a person cannot distinguish its behavior from that of a human.[11] However, in this context, the term “behavior” refers only to the performance of specific intellectual tasks; it does not account for the full breadth of human experience, which includes abstraction, emotions, creativity, and the aesthetic, moral, and religious sensibilities. Nor does it encompass the full range of expressions characteristic of the human mind. Instead, in the case of AI, the “intelligence” of a system is evaluated methodologically, but also reductively, based on its ability to produce appropriate responses—in this case, those associated with the human intellect—regardless of how those responses are generated.
    12. AI’s advanced features give it sophisticated abilities to perform tasks, but not the ability to think.[12] This distinction is crucially important, as the way “intelligence” is defined inevitably shapes how we understand the relationship between human thought and this technology.[13] To appreciate this, one must recall the richness of the philosophical tradition and Christian theology, which offer a deeper and more comprehensive understanding of intelligence—an understanding that is central to the Church’s teaching on the nature, dignity, and vocation of the human person.[14]
    III. Intelligence in the Philosophical and Theological Tradition
    Rationality
    13. From the dawn of human self-reflection, the mind has played a central role in understanding what it means to be “human.” Aristotle observed that “all people by nature desire to know.”[15] This knowledge, with its capacity for abstraction that grasps the nature and meaning of things, sets humans apart from the animal world.[16] As philosophers, theologians, and psychologists have examined the exact nature of this intellectual faculty, they have also explored how humans understand the world and their unique place within it. Through this exploration, the Christian tradition has come to understand the human person as a being consisting of both body and soul—deeply connected to this world and yet transcending it.[17]
    14. In the classical tradition, the concept of intelligence is often understood through the complementary concepts of “reason” (ratio) and “intellect” (intellectus). These are not separate faculties but, as Saint Thomas Aquinas explains, they are two modes in which the same intelligence operates: “The term intellect is inferred from the inward grasp of the truth, while the name reason is taken from the inquisitive and discursive process.”[18] This concise description highlights the two fundamental and complementary dimensions of human intelligence. Intellectus refers to the intuitive grasp of the truth—that is, apprehending it with the “eyes” of the mind—which precedes and grounds argumentation itself. Ratio pertains to reasoning proper: the discursive, analytical process that leads to judgment. Together, intellect and reason form the two facets of the act of intelligere, “the proper operation of the human being as such.”[19]
    15. Describing the human person as a “rational” being does not reduce the person to a specific mode of thought; rather, it recognizes that the ability for intellectual understanding shapes and permeates all aspects of human activity.[20] Whether exercised well or poorly, this capacity is an intrinsic aspect of human nature. In this sense, the “term ‘rational’ encompasses all the capacities of the human person,” including those related to “knowing and understanding, as well as those of willing, loving, choosing, and desiring; it also includes all corporeal functions closely related to these abilities.”[21] This comprehensive perspective underscores how, in the human person, created in the “image of God,” reason is integrated in a way that elevates, shapes, and transforms both the person’s will and actions.[22]
    Embodiment
    16. Christian thought considers the intellectual faculties of the human person within the framework of an integral anthropology that views the human being as essentially embodied. In the human person, spirit and matter “are not two natures united, but rather their union forms a single nature.”[23] In other words, the soul is not merely the immaterial “part” of the person contained within the body, nor is the body an outer shell housing an intangible “core.” Rather, the entire human person is simultaneously both material and spiritual. This understanding reflects the teaching of Sacred Scripture, which views the human person as a being who lives out relationships with God and others (and thus, an authentically spiritual dimension) within and through this embodied existence.[24] The profound meaning of this condition is further illuminated by the mystery of the Incarnation, through which God himself took on our flesh and “raised it up to a sublime dignity.”[25]
    17. Although deeply rooted in bodily existence, the human person transcends the material world through the soul, which is “almost on the horizon of eternity and time.”[26] The intellect’s capacity for transcendence and the self-possessed freedom of the will belong to the soul, by which the human person “shares in the light of the divine mind.”[27] Nevertheless, the human spirit does not exercise its normal mode of knowledge without the body.[28] In this way, the intellectual faculties of the human person are an integral part of an anthropology that recognizes that the human person is a “unity of body and soul.”[29] Further aspects of this understanding will be developed in what follows.
    Relationality
    18. Human beings are “ordered by their very nature to interpersonal communion,”[30] possessing the capacity to know one another, to give themselves in love, and to enter into communion with others. Accordingly, human intelligence is not an isolated faculty but is exercised in relationships, finding its fullest expression in dialogue, collaboration, and solidarity. We learn with others, and we learn through others.
    19. The relational orientation of the human person is ultimately grounded in the eternal self-giving of the Triune God, whose love is revealed in creation and redemption.[31] The human person is “called to share, by knowledge and love, in God’s own life.”[32]
    20. This vocation to communion with God is necessarily tied to the call to communion with others. Love of God cannot be separated from love for one’s neighbor (cf. 1 Jn. 4:20; Mt. 22:37-39). By the grace of sharing God’s life, Christians are also called to imitate Christ’s outpouring gift (cf. 2 Cor. 9:8-11; Eph. 5:1-2) by following his command to “love one another, as I have loved you” (Jn. 13:34).[33] Love and service, echoing the divine life of self-giving, transcend self-interest to respond more fully to the human vocation (cf. 1 Jn. 2:9). Even more sublime than knowing many things is the commitment to care for one another, for if “I understand all mysteries and all knowledge […] but do not have love, I am nothing” (1 Cor. 13:2).
    Relationship with the Truth
    21. Human intelligence is ultimately “God’s gift fashioned for the assimilation of truth.”[34] In the dual sense of intellectus-ratio, it enables the person to explore realities that surpass mere sensory experience or utility, since “the desire for truth is part of human nature itself. It is an innate property of human reason to ask why things are as they are.”[35] Moving beyond the limits of empirical data, human intelligence can “with genuine certitude attain to reality itself as knowable.”[36] While reality remains only partially known, the desire for truth “spurs reason always to go further; indeed, it is as if reason were overwhelmed to see that it can always go beyond what it has already achieved.”[37] Although Truth in itself transcends the boundaries of human intelligence, it irresistibly attracts it.[38] Drawn by this attraction, the human person is led to seek “truths of a higher order.”[39]
    22. This innate drive toward the pursuit of truth is especially evident in the distinctly human capacities for semantic understanding and creativity,[40] through which this search unfolds in a “manner that is appropriate to the social nature and dignity of the human person.”[41] Likewise, a steadfast orientation to the truth is essential for charity to be both authentic and universal.[42]
    23. The search for truth finds its highest expression in openness to realities that transcend the physical and created world. In God, all truths attain their ultimate and original meaning.[43] Entrusting oneself to God is a “fundamental decision that engages the whole person.”[44] In this way, the human person becomes fully what he or she is called to be: “the intellect and the will display their spiritual nature,” enabling the person “to act in a way that realizes personal freedom to the full.”[45]
    Stewardship of the World
    24. The Christian faith understands creation as the free act of the Triune God, who, as Saint Bonaventure of Bagnoregio explains, creates “not to increase his glory, but to show it forth and to communicate it.”[46] Since God creates according to his Wisdom (cf. Wis. 9:9; Jer. 10:12), creation is imbued with an intrinsic order that reflects God’s plan (cf. Gen. 1; Dan. 2:21-22; Is. 45:18; Ps. 74:12-17; 104),[47] within which God has called human beings to assume a unique role: to cultivate and care for the world.[48]
    25. Shaped by the Divine Craftsman, humans live out their identity as beings made in imago Dei by “keeping” and “tilling” (cf. Gen. 2:15) creation—using their intelligence and skills to care for and develop creation in accord with God’s plan.[49] In this, human intelligence reflects the Divine Intelligence that created all things (cf. Gen. 1-2; Jn. 1),[50] continuously sustains them, and guides them to their ultimate purpose in him.[51] Moreover, human beings are called to develop their abilities in science and technology, for through them, God is glorified (cf. Sir. 38:6). Thus, in a proper relationship with creation, humans, on the one hand, use their intelligence and skill to cooperate with God in guiding creation toward the purpose to which he has called it.[52] On the other hand, creation itself, as Saint Bonaventure observes, helps the human mind to “ascend gradually to the supreme Principle, who is God.”[53]
    An Integral Understanding of Human Intelligence
    26. In this context, human intelligence becomes more clearly understood as a faculty that forms an integral part of how the whole person engages with reality. Authentic engagement requires embracing the full scope of one’s being: spiritual, cognitive, embodied, and relational.
    27. This engagement with reality unfolds in various ways, as each person, in his or her multifaceted individuality[54], seeks to understand the world, relate to others, solve problems, express creativity, and pursue integral well-being through the harmonious interplay of the various dimensions of the person’s intelligence.[55] This involves logical and linguistic abilities but can also encompass other modes of interacting with reality. Consider the work of an artisan, who “must know how to discern, in inert matter, a particular form that others cannot recognize”[56] and bring it forth through insight and practical skill. Indigenous peoples who live close to the earth often possess a profound sense of nature and its cycles.[57] Similarly, a friend who knows the right word to say or a person adept at managing human relationships exemplifies an intelligence that is “the fruit of self-examination, dialogue and generous encounter between persons.”[58] As Pope Francis observes, “in this age of artificial intelligence, we cannot forget that poetry and love are necessary to save our humanity.”[59]
    28. At the heart of the Christian understanding of intelligence is the integration of truth into the moral and spiritual life of the person, guiding his or her actions in light of God’s goodness and truth. According to God’s plan, intelligence, in its fullest sense, also includes the ability to savor what is true, good, and beautiful. As the twentieth-century French poet Paul Claudel expressed, “intelligence is nothing without delight.”[60] Similarly, Dante, upon reaching the highest heaven in Paradiso, testifies that the culmination of this intellectual delight is found in the “light intellectual full of love, love of true good filled with joy, joy which transcends every sweetness.”[61]
    29. A proper understanding of human intelligence, therefore, cannot be reduced to the mere acquisition of facts or the ability to perform specific tasks. Instead, it involves the person’s openness to the ultimate questions of life and reflects an orientation toward the True and the Good. [62] As an expression of the divine image within the person, human intelligence has the ability to access the totality of being, contemplating existence in its fullness, which goes beyond what is measurable, and grasping the meaning of what has been understood. For believers, this capacity includes, in a particular way, the ability to grow in the knowledge of the mysteries of God by using reason to engage ever more profoundly with revealed truths (intellectus fidei).[63] True intelligence is shaped by divine love, which “is poured forth in our hearts by the Holy Spirit” (Rom. 5:5). From this, it follows that human intelligence possesses an essential contemplative dimension, an unselfish openness to the True, the Good, and the Beautiful, beyond any utilitarian purpose.
    The Limits of AI
    30. In light of the foregoing discussion, the differences between human intelligence and current AI systems become evident. While AI is an extraordinary technological achievement capable of imitating certain outputs associated with human intelligence, it operates by performing tasks, achieving goals, or making decisions based on quantitative data and computational logic. For example, with its analytical power, AI excels at integrating data from a variety of fields, modeling complex systems, and fostering interdisciplinary connections. In this way, it can help experts collaborate in solving complex problems that “cannot be dealt with from a single perspective or from a single set of interests.”[64]
    31. However, even as AI processes and simulates certain expressions of intelligence, it remains fundamentally confined to a logical-mathematical framework, which imposes inherent limitations. Human intelligence, in contrast, develops organically throughout the person’s physical and psychological growth, shaped by a myriad of lived experiences in the flesh. Although advanced AI systems can “learn” through processes such as machine learning, this sort of training is fundamentally different from the developmental growth of human intelligence, which is shaped by embodied experiences, including sensory input, emotional responses, social interactions, and the unique context of each moment. These elements shape and form individuals within their personal history. In contrast, AI, lacking a physical body, relies on computational reasoning and learning based on vast datasets that include recorded human experiences and knowledge.
    32. Consequently, although AI can simulate aspects of human reasoning and perform specific tasks with incredible speed and efficiency, its computational abilities represent only a fraction of the broader capacities of the human mind. For instance, AI cannot currently replicate moral discernment or the ability to establish authentic relationships. Moreover, human intelligence is situated within a personally lived history of intellectual and moral formation that fundamentally shapes the individual’s perspective, encompassing the physical, emotional, social, moral, and spiritual dimensions of life. Since AI cannot offer this fullness of understanding, approaches that rely solely on this technology or treat it as the primary means of interpreting the world can lead to “a loss of appreciation for the whole, for the relationships between things, and for the broader horizon.”[65]
    33. Human intelligence is not primarily about completing functional tasks but about understanding and actively engaging with reality in all its dimensions; it is also capable of surprising insights. Since AI lacks the richness of corporeality, relationality, and the openness of the human heart to truth and goodness, its capacities—though seemingly limitless—are incomparable with the human ability to grasp reality. So much can be learned from an illness, an embrace of reconciliation, and even a simple sunset; indeed, many experiences we have as humans open new horizons and offer the possibility of attaining new wisdom. No device, working solely with data, can measure up to these and countless other experiences present in our lives.
    34. Drawing an overly close equivalence between human intelligence and AI risks succumbing to a functionalist perspective, where people are valued based on the work they can perform. However, a person’s worth does not depend on possessing specific skills, cognitive and technological achievements, or individual success, but on the person’s inherent dignity, grounded in being created in the image of God.[66] This dignity remains intact in all circumstances, including for those unable to exercise their abilities, whether it be an unborn child, an unconscious person, or an older person who is suffering.[67] It also underpins the tradition of human rights (and, in particular, what are now called “neuro-rights”), which represent “an important point of convergence in the search for common ground”[68] and can, thus, serve as a fundamental ethical guide in discussions on the responsible development and use of AI.
    35. Considering all these points, as Pope Francis observes, “the very use of the word ‘intelligence’” in connection with AI “can prove misleading”[69] and risks overlooking what is most precious in the human person. In light of this, AI should not be seen as an artificial form of human intelligence but as a product of it.[70]
    IV. The Role of Ethics in Guiding the Development and Use of AI
    36. Given these considerations, one can ask how AI can be understood within God’s plan. To answer this, it is important to recall that techno-scientific activity is not neutral in character but is a human endeavor that engages the humanistic and cultural dimensions of human creativity.[71]
    37. Seen as a fruit of the potential inscribed within human intelligence,[72] scientific inquiry and the development of technical skills are part of the “collaboration of man and woman with God in perfecting the visible creation.”[73] At the same time, all scientific and technological achievements are, ultimately, gifts from God.[74] Therefore, human beings must always use their abilities in view of the higher purpose for which God has granted them.[75]
    38. We can gratefully acknowledge how technology has “remedied countless evils which used to harm and limit human beings,”[76] a fact for which we should rejoice. Nevertheless, not all technological advancements in themselves represent genuine human progress.[77] The Church is particularly opposed to those applications that threaten the sanctity of life or the dignity of the human person.[78] Like any human endeavor, technological development must be directed to serve the human person and contribute to the pursuit of “greater justice, more extensive fraternity, and a more humane order of social relations,” which are “more valuable than advances in the technical field.”[79] Concerns about the ethical implications of technological development are shared not only within the Church but also among many scientists, technologists, and professional associations, who increasingly call for ethical reflection to guide this development in a responsible way.
    39. To address these challenges, it is essential to emphasize the importance of moral responsibility grounded in the dignity and vocation of the human person. This guiding principle also applies to questions concerning AI. In this context, the ethical dimension takes on primary importance because it is people who design systems and determine the purposes for which they are used.[80] Between a machine and a human being, only the latter is truly a moral agent—a subject of moral responsibility who exercises freedom in his or her decisions and accepts their consequences.[81] It is not the machine but the human who is in relationship with truth and goodness, guided by a moral conscience that calls the person “to love and to do what is good and to avoid evil,”[82] bearing witness to “the authority of truth in reference to the supreme Good to which the human person is drawn.”[83] Likewise, between a machine and a human, only the human can be sufficiently self-aware to the point of listening and following the voice of conscience, discerning with prudence, and seeking the good that is possible in every situation.[84] In fact, all of this also belongs to the person’s exercise of intelligence.
    40. Like any product of human creativity, AI can be directed toward positive or negative ends.[85] When used in ways that respect human dignity and promote the well-being of individuals and communities, it can contribute positively to the human vocation. Yet, as in all areas where humans are called to make decisions, the shadow of evil also looms here. Where human freedom allows for the possibility of choosing what is wrong, the moral evaluation of this technology will need to take into account how it is directed and used.
    41. At the same time, it is not only the ends that are ethically significant but also the means employed to achieve them. Additionally, the overall vision and understanding of the human person embedded within these systems are important to consider as well. Technological products reflect the worldview of their developers, owners, users, and regulators,[86] and have the power to “shape the world and engage consciences on the level of values.”[87] On a societal level, some technological developments could also reinforce relationships and power dynamics that are inconsistent with a proper understanding of the human person and society.
    42. Therefore, the ends and the means used in a given application of AI, as well as the overall vision it incorporates, must all be evaluated to ensure they respect human dignity and promote the common good.[88] As Pope Francis has stated, “the intrinsic dignity of every man and every woman” must be “the key criterion in evaluating emerging technologies; these will prove ethically sound to the extent that they help respect that dignity and increase its expression at every level of human life,”[89] including in the social and economic spheres. In this sense, human intelligence plays a crucial role not only in designing and producing technology but also in directing its use in line with the authentic good of the human person.[90] The responsibility for managing this wisely pertains to every level of society, guided by the principle of subsidiarity and other principles of Catholic Social Teaching.
    Helping Human Freedom and Decision-Making
    43. The commitment to ensuring that AI always supports and promotes the supreme value of the dignity of every human being and the fullness of the human vocation serves as a criterion of discernment for developers, owners, operators, and regulators of AI, as well as to its users. It remains valid for every application of the technology at every level of its use.
    44. An evaluation of the implications of this guiding principle could begin by considering the importance of moral responsibility. Since full moral causality belongs only to personal agents, not artificial ones, it is crucial to be able to identify and define who bears responsibility for the processes involved in AI, particularly those capable of learning, correction, and reprogramming. While bottom-up approaches and very deep neural networks enable AI to solve complex problems, they make it difficult to understand the processes that lead to the solutions they adopted. This complicates accountability since if an AI application produces undesired outcomes, determining who is responsible becomes difficult. To address this problem, attention needs to be given to the nature of accountability processes in complex, highly automated settings, where results may only become evident in the medium to long term. For this, it is important that ultimate responsibility for decisions made using AI rests with the human decision-makers and that there is accountability for the use of AI at each stage of the decision-making process.[91]
    45. In addition to determining who is responsible, it is essential to identify the objectives given to AI systems. Although these systems may use unsupervised autonomous learning mechanisms and sometimes follow paths that humans cannot reconstruct, they ultimately pursue goals that humans have assigned to them and are governed by processes established by their designers and programmers. Yet, this presents a challenge because, as AI models become increasingly capable of independent learning, the ability to maintain control over them to ensure that such applications serve human purposes may effectively diminish. This raises the critical question of how to ensure that AI systems are ordered for the good of people and not against them.
    46. While responsibility for the ethical use of AI systems starts with those who develop, produce, manage, and oversee such systems, it is also shared by those who use them. As Pope Francis noted, the machine “makes a technical choice among several possibilities based either on well-defined criteria or on statistical inferences. Human beings, however, not only choose, but in their hearts are capable of deciding.”[92] Those who use AI to accomplish a task and follow its results create a context in which they are ultimately responsible for the power they have delegated. Therefore, insofar as AI can assist humans in making decisions, the algorithms that govern it should be trustworthy, secure, robust enough to handle inconsistencies, and transparent in their operation to mitigate biases and unintended side effects.[93] Regulatory frameworks should ensure that all legal entities remain accountable for the use of AI and all its consequences, with appropriate safeguards for transparency, privacy, and accountability.[94] Moreover, those using AI should be careful not to become overly dependent on it for their decision-making, a trend that increases contemporary society’s already high reliance on technology.
    47. The Church’s moral and social teaching provides resources to help ensure that AI is used in a way that preserves human agency. Considerations about justice, for example, should also address issues such as fostering just social dynamics, upholding international security, and promoting peace. By exercising prudence, individuals and communities can discern ways to use AI to benefit humanity while avoiding applications that could degrade human dignity or harm the environment. In this context, the concept of responsibility should be understood not only in its most limited sense but as a “responsibility for the care for others, which is more than simply accounting for results achieved.”[95]
    48. Therefore, AI, like any technology, can be part of a conscious and responsible answer to humanity’s vocation to the good. However, as previously discussed, AI must be directed by human intelligence to align with this vocation, ensuring it respects the dignity of the human person. Recognizing this “exalted dignity,” the Second Vatican Council affirmed that “the social order and its development must invariably work to the benefit of the human person.”[96] In light of this, the use of AI, as Pope Francis said, must be “accompanied by an ethic inspired by a vision of the common good, an ethic of freedom, responsibility, and fraternity, capable of fostering the full development of people in relation to others and to the whole of creation.”[97]
    V. Specific Questions
    49. Within this general perspective, some observations follow below to illustrate how the preceding arguments can help provide an ethical orientation in practical situations, in line with the “wisdom of heart” that Pope Francis has proposed.[98] While not exhaustive, this discussion is offered in service of the dialogue that considers how AI can be used to uphold the dignity of the human person and promote the common good.[99]
    AI and Society
    50. As Pope Francis observed, “the inherent dignity of each human being and the fraternity that binds us together as members of the one human family must undergird the development of new technologies and serve as indisputable criteria for evaluating them before they are employed.”[100]
    51. Viewed through this lens, AI could “introduce important innovations in agriculture, education and culture, an improved level of life for entire nations and peoples, and the growth of human fraternity and social friendship,” and thus be “used to promote integral human development.”[101] AI could also help organizations identify those in need and counter discrimination and marginalization. These and other similar applications of this technology could contribute to human development and the common good.[102]
    52. However, while AI holds many possibilities for promoting the good, it can also hinder or even counter human development and the common good. Pope Francis has noted that “evidence to date suggests that digital technologies have increased inequality in our world. Not just differences in material wealth, which are also significant, but also differences in access to political and social influence.”[103] In this sense, AI could be used to perpetuate marginalization and discrimination, create new forms of poverty, widen the “digital divide,” and worsen existing social inequalities.[104]
    53. Moreover, the concentration of the power over mainstream AI applications in the hands of a few powerful companies raises significant ethical concerns. Exacerbating this problem is the inherent nature of AI systems, where no single individual can exercise complete oversight over the vast and complex datasets used for computation. This lack of well-defined accountability creates the risk that AI could be manipulated for personal or corporate gain or to direct public opinion for the benefit of a specific industry. Such entities, motivated by their own interests, possess the capacity to exercise “forms of control as subtle as they are invasive, creating mechanisms for the manipulation of consciences and of the democratic process.”[105]
    54. Furthermore, there is the risk of AI being used to promote what Pope Francis has called the “technocratic paradigm,” which perceives all the world’s problems as solvable through technological means alone.[106] In this paradigm, human dignity and fraternity are often set aside in the name of efficiency, “as if reality, goodness, and truth automatically flow from technological and economic power as such.”[107] Yet, human dignity and the common good must never be violated for the sake of efficiency,[108] for “technological developments that do not lead to an improvement in the quality of life of all humanity, but on the contrary, aggravate inequalities and conflicts, can never count as true progress.”[109] Instead, AI should be put “at the service of another type of progress, one which is healthier, more human, more social, more integral.”[110]
    55. Achieving this objective requires a deeper reflection on the relationship between autonomy and responsibility. Greater autonomy heightens each person’s responsibility across various aspects of communal life. For Christians, the foundation of this responsibility lies in the recognition that all human capacities, including the person’s autonomy, come from God and are meant to be used in the service of others.[111] Therefore, rather than merely pursuing economic or technological objectives, AI should serve “the common good of the entire human family,” which is “the sum total of social conditions that allow people, either as groups or as individuals, to reach their fulfillment more fully and more easily.”[112]
    AI and Human Relationships
    56. The Second Vatican Council observed that “by his innermost nature man is a social being; and if he does not enter into relations with others, he can neither live nor develop his gifts.”[113] This conviction underscores that living in society is intrinsic to the nature and vocation of the human person.[114] As social beings, we seek relationships that involve mutual exchange and the pursuit of truth, in the course of which, people “share with each other the truth they have discovered, or think they have discovered, in such a way that they help one another in the search for truth.”[115]
    57. Such a quest, along with other aspects of human communication, presupposes encounters and mutual exchange between individuals shaped by their unique histories, thoughts, convictions, and relationships. Nor can we forget that human intelligence is a diverse, multifaceted, and complex reality: individual and social, rational and affective, conceptual and symbolic. Pope Francis underscores this dynamic, noting that “together, we can seek the truth in dialogue, in relaxed conversation or in passionate debate. To do so calls for perseverance; it entails moments of silence and suffering, yet it can patiently embrace the broader experience of individuals and peoples. […] The process of building fraternity, be it local or universal, can only be undertaken by spirits that are free and open to authentic encounters.”[116]
    58. It is in this context that one can consider the challenges AI poses to human relationships. Like other technological tools, AI has the potential to foster connections within the human family. However, it could also hinder a true encounter with reality and, ultimately, lead people to “a deep and melancholic dissatisfaction with interpersonal relations, or a harmful sense of isolation.”[117] Authentic human relationships require the richness of being with others in their pain, their pleas, and their joy.[118] Since human intelligence is expressed and enriched also in interpersonal and embodied ways, authentic and spontaneous encounters with others are indispensable for engaging with reality in its fullness.
    59. Because “true wisdom demands an encounter with reality,”[119] the rise of AI introduces another challenge. Since AI can effectively imitate the products of human intelligence, the ability to know when one is interacting with a human or a machine can no longer be taken for granted. Generative AI can produce text, speech, images, and other advanced outputs that are usually associated with human beings. Yet, it must be understood for what it is: a tool, not a person.[120] This distinction is often obscured by the language used by practitioners, which tends to anthropomorphize AI and thus blurs the line between human and machine.
    60. Anthropomorphizing AI also poses specific challenges for the development of children, potentially encouraging them to develop patterns of interaction that treat human relationships in a transactional manner, as one would relate to a chatbot. Such habits could lead young people to see teachers as mere dispensers of information rather than as mentors who guide and nurture their intellectual and moral growth. Genuine relationships, rooted in empathy and a steadfast commitment to the good of the other, are essential and irreplaceable in fostering the full development of the human person.
    61. In this context, it is important to clarify that, despite the use of anthropomorphic language, no AI application can genuinely experience empathy. Emotions cannot be reduced to facial expressions or phrases generated in response to prompts; they reflect the way a person, as a whole, relates to the world and to his or her own life, with the body playing a central role. True empathy requires the ability to listen, recognize another’s irreducible uniqueness, welcome their otherness, and grasp the meaning behind even their silences.[121] Unlike the realm of analytical judgment in which AI excels, true empathy belongs to the relational sphere. It involves intuiting and apprehending the lived experiences of another while maintaining the distinction between self and other.[122] While AI can simulate empathetic responses, it cannot replicate the eminently personal and relational nature of authentic empathy.[123]
    62. In light of the above, it is clear why misrepresenting AI as a person should always be avoided; doing so for fraudulent purposes is a grave ethical violation that could erode social trust. Similarly, using AI to deceive in other contexts—such as in education or in human relationships, including the sphere of sexuality—is also to be considered immoral and requires careful oversight to prevent harm, maintain transparency, and ensure the dignity of all people.[124]
    63. In an increasingly isolated world, some people have turned to AI in search of deep human relationships, simple companionship, or even emotional bonds. However, while human beings are meant to experience authentic relationships, AI can only simulate them. Nevertheless, such relationships with others are an integral part of how a person grows to become who he or she is meant to be. If AI is used to help people foster genuine connections between people, it can contribute positively to the full realization of the person. Conversely, if we replace relationships with God and with others with interactions with technology, we risk replacing authentic relationality with a lifeless image (cf. Ps. 106:20; Rom. 1:22-23). Instead of retreating into artificial worlds, we are called to engage in a committed and intentional way with reality, especially by identifying with the poor and suffering, consoling those in sorrow, and forging bonds of communion with all.
    AI, the Economy, and Labor
    64. Due to its interdisciplinary nature, AI is being increasingly integrated into economic and financial systems. Significant investments are currently being made not only in the technology sector but also in energy, finance, and media, particularly in the areas of marketing and sales, logistics, technological innovation, compliance, and risk management. At the same time, AI’s applications in these areas have also highlighted its ambivalent nature, as a source of tremendous opportunities but also profound risks. A first real critical point in this area concerns the possibility that—due to the concentration of AI applications in the hands of a few corporations—only those large companies would benefit from the value created by AI rather than the businesses that use it.
    65. Other broader aspects of AI’s impact on the economic-financial sphere must also be carefully examined, particularly concerning the interaction between concrete reality and the digital world. One important consideration in this regard involves the coexistence of diverse and alternative forms of economic and financial institutions within a given context. This factor should be encouraged, as it can bring benefits in how it supports the real economy by fostering its development and stability, especially during times of crisis. Nevertheless, it should be stressed that digital realities, not restricted by any spatial bonds, tend to be more homogeneous and impersonal than communities rooted in a particular place and a specific history, with a common journey characterized by shared values and hopes, but also by inevitable disagreements and divergences. This diversity is an undeniable asset to a community’s economic life. Turning over the economy and finance entirely to digital technology would reduce this variety and richness. As a result, many solutions to economic problems that can be reached through natural dialogue between the involved parties may no longer be attainable in a world dominated by procedures and only the appearance of nearness.
    66. Another area where AI is already having a profound impact is the world of work. As in many other fields, AI is driving fundamental transformations across many professions, with a range of effects. On the one hand, it has the potential to enhance expertise and productivity, create new jobs, enable workers to focus on more innovative tasks, and open new horizons for creativity and innovation.
    67. However, while AI promises to boost productivity by taking over mundane tasks, it frequently forces workers to adapt to the speed and demands of machines rather than machines being designed to support those who work. As a result, contrary to the advertised benefits of AI, current approaches to the technology can paradoxically deskill workers, subject them to automated surveillance, and relegate them to rigid and repetitive tasks. The need to keep up with the pace of technology can erode workers’ sense of agency and stifle the innovative abilities they are expected to bring to their work.[125]
    68. AI is currently eliminating the need for some jobs that were once performed by humans. If AI is used to replace human workers rather than complement them, there is a “substantial risk of disproportionate benefit for the few at the price of the impoverishment of many.”[126] Additionally, as AI becomes more powerful, there is an associated risk that human labor may lose its value in the economic realm. This is the logical consequence of the technocratic paradigm: a world of humanity enslaved to efficiency, where, ultimately, the cost of humanity must be cut. Yet, human lives are intrinsically valuable, independent of their economic output. Nevertheless, the “current model,” Pope Francis explains, “does not appear to favor an investment in efforts to help the slow, the weak, or the less talented to find opportunities in life.”[127] In light of this, “we cannot allow a tool as powerful and indispensable as Artificial Intelligence to reinforce such a paradigm, but rather, we must make Artificial Intelligence a bulwark against its expansion.”[128]
    69. It is important to remember that “the order of things must be subordinate to the order of persons, and not the other way around.”[129] Human work must not only be at the service of profit but at “the service of the whole human person […] taking into account the person’s material needs and the requirements of his or her intellectual, moral, spiritual, and religious life.”[130] In this context, the Church recognizes that work is “not only a means of earning one’s daily bread” but is also “an essential dimension of social life” and “a means […] of personal growth, the building of healthy relationships, self-expression and the exchange of gifts. Work gives us a sense of shared responsibility for the development of the world, and ultimately, for our life as a people.”[131]
    70. Since work is a “part of the meaning of life on this earth, a path to growth, human development and personal fulfillment,” “the goal should not be that technological progress increasingly replaces human work, for this would be detrimental to humanity”[132]—rather, it should promote human labor. Seen in this light, AI should assist, not replace, human judgment. Similarly, it must never degrade creativity or reduce workers to mere “cogs in a machine.” Therefore, “respect for the dignity of laborers and the importance of employment for the economic well-being of individuals, families, and societies, for job security and just wages, ought to be a high priority for the international community as these forms of technology penetrate more deeply into our workplaces.”[133]
    AI and Healthcare
    71. As participants in God’s healing work, healthcare professionals have the vocation and responsibility to be “guardians and servants of human life.”[134] Because of this, the healthcare profession carries an “intrinsic and undeniable ethical dimension,” recognized by the Hippocratic Oath, which obliges physicians and healthcare professionals to commit themselves to having “absolute respect for human life and its sacredness.”[135] Following the example of the Good Samaritan, this commitment is to be carried out by men and women “who reject the creation of a society of exclusion, and act instead as neighbors, lifting up and rehabilitating the fallen for the sake of the common good.”[136]
    72. Seen in this light, AI seems to hold immense potential in a variety of applications in the medical field, such as assisting the diagnostic work of healthcare providers, facilitating relationships between patients and medical staff, offering new treatments, and expanding access to quality care also for those who are isolated or marginalized. In these ways, the technology could enhance the “compassionate and loving closeness”[137] that healthcare providers are called to extend to the sick and suffering.
    73. However, if AI is used not to enhance but to replace the relationship between patients and healthcare providers—leaving patients to interact with a machine rather than a human being—it would reduce a crucially important human relational structure to a centralized, impersonal, and unequal framework. Instead of encouraging solidarity with the sick and suffering, such applications of AI would risk worsening the loneliness that often accompanies illness, especially in the context of a culture where “persons are no longer seen as a paramount value to be cared for and respected.”[138] This misuse of AI would not align with respect for the dignity of the human person and solidarity with the suffering.
    74. Responsibility for the well-being of patients and the decisions that touch upon their lives are at the heart of the healthcare profession. This accountability requires medical professionals to exercise all their skill and intelligence in making well-reasoned and ethically grounded choices regarding those entrusted to their care, always respecting the inviolable dignity of the patients and the need for informed consent. As a result, decisions regarding patient treatment and the weight of responsibility they entail must always remain with the human person and should never be delegated to AI.[139]
    75. In addition, using AI to determine who should receive treatment based predominantly on economic measures or metrics of efficiency represents a particularly problematic instance of the “technocratic paradigm” that must be rejected.[140] For, “optimizing resources means using them in an ethical and fraternal way, and not penalizing the most fragile.”[141] Additionally, AI tools in healthcare are “exposed to forms of bias and discrimination,” where “systemic errors can easily multiply, producing not only injustices in individual cases but also, due to the domino effect, real forms of social inequality.”[142]
    76. The integration of AI into healthcare also poses the risk of amplifying other existing disparities in access to medical care. As healthcare becomes increasingly oriented toward prevention and lifestyle-based approaches, AI-driven solutions may inadvertently favor more affluent populations who already enjoy better access to medical resources and quality nutrition. This trend risks reinforcing a “medicine for the rich” model, where those with financial means benefit from advanced preventative tools and personalized health information while others struggle to access even basic services. To prevent such inequities, equitable frameworks are needed to ensure that the use of AI in healthcare does not worsen existing healthcare inequalities but rather serves the common good.
    AI and Education
    77. The words of the Second Vatican Council remain fully relevant today: “True education strives to form individuals with a view toward their final end and the good of the society to which they belong.”[143] As such, education is “never a mere process of passing on facts and intellectual skills: rather, its aim is to contribute to the person’s holistic formation in its various aspects (intellectual, cultural, spiritual, etc.), including, for example, community life and relations within the academic community,”[144] in keeping with the nature and dignity of the human person.
    78. This approach involves a commitment to cultivating the mind, but always as a part of the integral development of the person: “We must break that idea of education which holds that educating means filling one’s head with ideas. That is the way we educate automatons, cerebral minds, not people. Educating is taking a risk in the tension between the mind, the heart, and the hands.”[145]
    79. At the center of this work of forming the whole human person is the indispensable relationship between teacher and student. Teachers do more than convey knowledge; they model essential human qualities and inspire the joy of discovery.[146] Their presence motivates students both through the content they teach and the care they demonstrate for their students. This bond fosters trust, mutual understanding, and the capacity to address each person’s unique dignity and potential. On the part of the student, this can generate a genuine desire to grow. The physical presence of a teacher creates a relational dynamic that AI cannot replicate, one that deepens engagement and nurtures the student’s integral development.
    80. In this context, AI presents both opportunities and challenges. If used in a prudent manner, within the context of an existing teacher-student relationship and ordered to the authentic goals of education, AI can become a valuable educational resource by enhancing access to education, offering tailored support, and providing immediate feedback to students. These benefits could enhance the learning experience, especially in cases where individualized attention is needed, or educational resources are otherwise scarce.
    81. Nevertheless, an essential part of education is forming “the intellect to reason well in all matters, to reach out towards truth, and to grasp it,”[147] while helping the “language of the head” to grow harmoniously with the “language of the heart” and the “language of the hands.”[148] This is all the more vital in an age marked by technology, in which “it is no longer merely a question of ‘using’ instruments of communication, but of living in a highly digitalized culture that has had a profound impact on […] our ability to communicate, learn, be informed and enter into relationship with others.”[149] However, instead of fostering “a cultivated intellect,” which “brings with it a power and a grace to every work and occupation that it undertakes,”[150] the extensive use of AI in education could lead to the students’ increased reliance on technology, eroding their ability to perform some skills independently and worsening their dependence on screens.[151]
    82. Additionally, while some AI systems are designed to help people develop their critical thinking abilities and problem-solving skills, many others merely provide answers instead of prompting students to arrive at answers themselves or write text for themselves.[152] Instead of training young people how to amass information and generate quick responses, education should encourage “the responsible use of freedom to face issues with good sense and intelligence.”[153] Building on this, “education in the use of forms of artificial intelligence should aim above all at promoting critical thinking. Users of all ages, but especially the young, need to develop a discerning approach to the use of data and content collected on the web or produced by artificial intelligence systems. Schools, universities, and scientific societies are challenged to help students and professionals to grasp the social and ethical aspects of the development and uses of technology.”[154]
    83. As Saint John Paul II recalled, “in the world today, characterized by such rapid developments in science and technology, the tasks of a Catholic University assume an ever greater importance and urgency.”[155] In a particular way, Catholic universities are urged to be present as great laboratories of hope at this crossroads of history. In an inter-disciplinary and cross-disciplinary key, they are urged to engage “with wisdom and creativity”[156] in careful research on this phenomenon, helping to draw out the salutary potential within the various fields of science and reality, and guiding them always towards ethically sound applications that clearly serve the cohesion of our societies and the common good, reaching new frontiers in the dialogue between faith and reason.
    84. Moreover, it should be noted that current AI programs have been known to provide biased or fabricated information, which can lead students to trust inaccurate content. This problem “not only runs the risk of legitimizing fake news and strengthening a dominant culture’s advantage, but, in short, it also undermines the educational process itself.”[157] With time, clearer distinctions may emerge between proper and improper uses of AI in education and research. Yet, a decisive guideline is that the use of AI should always be transparent and never misrepresented.
    AI, Misinformation, Deepfakes, and Abuse
    85. AI could be used as an aid to human dignity if it helps people understand complex concepts or directs them to sound resources that support their search for the truth.[158]
    86. However, AI also presents a serious risk of generating manipulated content and false information, which can easily mislead people due to its resemblance to the truth. Such misinformation might occur unintentionally, as in the case of AI “hallucination,” where a generative AI system yields results that appear real but are not. Since generating content that mimics human artifacts is central to AI’s functionality, mitigating these risks proves challenging. Yet, the consequences of such aberrations and false information can be quite grave. For this reason, all those involved in producing and using AI systems should be committed to the truthfulness and accuracy of the information processed by such systems and disseminated to the public.
    87. While AI has a latent potential to generate false information, an even more troubling problem lies in the deliberate misuse of AI for manipulation. This can occur when individuals or organizations intentionally generate and spread false content with the aim to deceive or cause harm, such as “deepfake” images, videos, and audio—referring to a false depiction of a person, edited or generated by an AI algorithm. The danger of deepfakes is particularly evident when they are used to target or harm others. While the images or videos themselves may be artificial, the damage they cause is real, leaving “deep scars in the hearts of those who suffer it” and “real wounds in their human dignity.”[159]
    88. On a broader scale, by distorting “our relationship with others and with reality,”[160] AI-generated fake media can gradually undermine the foundations of society. This issue requires careful regulation, as misinformation—especially through AI-controlled or influenced media—can spread unintentionally, fueling political polarization and social unrest. When society becomes indifferent to the truth, various groups construct their own versions of “facts,” weakening the “reciprocal ties and mutual dependencies”[161] that underpin the fabric of social life. As deepfakes cause people to question everything and AI-generated false content erodes trust in what they see and hear, polarization and conflict will only grow. Such widespread deception is no trivial matter; it strikes at the core of humanity, dismantling the foundational trust on which societies are built.[162]
    89. Countering AI-driven falsehoods is not only the work of industry experts—it requires the efforts of all people of goodwill. “If technology is to serve human dignity and not harm it, and if it is to promote peace rather than violence, then the human community must be proactive in addressing these trends with respect to human dignity and the promotion of the good.”[163] Those who produce and share AI-generated content should always exercise diligence in verifying the truth of what they disseminate and, in all cases, should “avoid the sharing of words and images that are degrading of human beings, that promote hatred and intolerance, that debase the goodness and intimacy of human sexuality or that exploit the weak and vulnerable.”[164] This calls for the ongoing prudence and careful discernment of all users regarding their activity online.[165]
    AI, Privacy, and Surveillance
    90. Humans are inherently relational, and the data each person generates in the digital world can be seen as an objectified expression of this relational nature. Data conveys not only information but also personal and relational knowledge, which, in an increasingly digitized context, can amount to power over the individual. Moreover, while some types of data may pertain to public aspects of a person’s life, others may touch upon the individual’s interiority, perhaps even their conscience. Seen in this way, privacy plays an essential role in protecting the boundaries of a person’s inner life, preserving their freedom to relate to others, express themselves, and make decisions without undue control. This protection is also tied to the defense of religious freedom, as surveillance can also be misused to exert control over the lives of believers and how they express their faith.
    91. It is appropriate, therefore, to address the issue of privacy from a concern for the legitimate freedom and inalienable dignity of the human person “in all circumstances.”[166] The Second Vatican Council included the right “to safeguard privacy” among the fundamental rights “necessary for living a genuinely human life,” a right that should be extended to all people on account of their “sublime dignity.”[167] Furthermore, the Church has also affirmed the right to the legitimate respect for a private life in the context of affirming the person’s right to a good reputation, defense of their physical and mental integrity, and freedom from harm or undue intrusion[168]—essential components of the due respect for the intrinsic dignity of the human person.[169]
    92. Advances in AI-powered data processing and analysis now make it possible to infer patterns in a person’s behavior and thinking from even a small amount of information, making the role of data privacy even more imperative as a safeguard for the dignity and relational nature of the human person. As Pope Francis observed, “while closed and intolerant attitudes towards others are on the rise, distances are otherwise shrinking or disappearing to the point that the right to privacy scarcely exists. Everything has become a kind of spectacle to be examined and inspected, and people’s lives are now under constant surveillance.”[170]
    93. While there can be legitimate and proper ways to use AI in keeping with human dignity and the common good, using it for surveillance aimed at exploiting, restricting others’ freedom, or benefitting a few at the expense of the many is unjustifiable. The risk of surveillance overreach must be monitored by appropriate regulators to ensure transparency and public accountability. Those responsible for surveillance should never exceed their authority, which must always favor the dignity and freedom of every person as the essential basis of a just and humane society.
    94. Furthermore, “fundamental respect for human dignity demands that we refuse to allow the uniqueness of the person to be identified with a set of data.”[171] This especially applies when AI is used to evaluate individuals or groups based on their behavior, characteristics, or history—a practice known as “social scoring”: “In social and economic decision-making, we should be cautious about delegating judgments to algorithms that process data, often collected surreptitiously, on an individual’s makeup and prior behavior. Such data can be contaminated by societal prejudices and preconceptions. A person’s past behavior should not be used to deny him or her the opportunity to change, grow, and contribute to society. We cannot allow algorithms to limit or condition respect for human dignity, or to exclude compassion, mercy, forgiveness, and above all, the hope that people are able to change.”[172]
    AI and the Protection of Our Common Home
    95. AI has many promising applications for improving our relationship with our “common home,” such as creating models to forecast extreme climate events, proposing engineering solutions to reduce their impact, managing relief operations, and predicting population shifts.[173] Additionally, AI can support sustainable agriculture, optimize energy usage, and provide early warning systems for public health emergencies. These advancements have the potential to strengthen resilience against climate-related challenges and promote more sustainable development.
    96. At the same time, current AI models and the hardware required to support them consume vast amounts of energy and water, significantly contributing to CO2 emissions and straining resources. This reality is often obscured by the way this technology is presented in the popular imagination, where words such as “the cloud”[174] can give the impression that data is stored and processed in an intangible realm, detached from the physical world. However, “the cloud” is not an ethereal domain separate from the physical world; as with all computing technologies, it relies on physical machines, cables, and energy. The same is true of the technology behind AI. As these systems grow in complexity, especially large language models (LLMs), they require ever-larger datasets, increased computational power, and greater storage infrastructure. Considering the heavy toll these technologies take on the environment, it is vital to develop sustainable solutions that reduce their impact on our common home.
    97. Even then, as Pope Francis teaches, it is essential “that we look for solutions not only in technology but in a change of humanity.”[175] A complete and authentic understanding of creation recognizes that the value of all created things cannot be reduced to their mere utility. Therefore, a fully human approach to the stewardship of the earth rejects the distorted anthropocentrism of the technocratic paradigm, which seeks to “extract everything possible” from the world,[176] and rejects the “myth of progress,” which assumes that “ecological problems will solve themselves simply with the application of new technology and without any need for ethical considerations or deep change.”[177] Such a mindset must give way to a more holistic approach that respects the order of creation and promotes the integral good of the human person while safeguarding our common home.[178]
    AI and Warfare
    98. The Second Vatican Council and the consistent teaching of the Popes since then have insisted that peace is not merely the absence of war and is not limited to maintaining a balance of powers between adversaries. Instead, in the words of Saint Augustine, peace is “the tranquility of order.”[179] Indeed, peace cannot be attained without safeguarding the goods of persons, free communication, respect for the dignity of persons and peoples, and the assiduous practice of fraternity. Peace is the work of justice and the effect of charity and cannot be achieved through force alone; instead, it must be principally built through patient diplomacy, the active promotion of justice, solidarity, integral human development, and respect for the dignity of all people.[180] In this way, the tools used to maintain peace should never be allowed to justify injustice, violence, or oppression. Instead, they should always be governed by a “firm determination to respect other people and nations, along with their dignity, as well as the deliberate practice of fraternity.”[181]
    99. While AI’s analytical abilities could help nations seek peace and ensure security, the “weaponization of Artificial Intelligence” can also be highly problematic. Pope Francis has observed that “the ability to conduct military operations through remote control systems has led to a lessened perception of the devastation caused by those weapon systems and the burden of responsibility for their use, resulting in an even more cold and detached approach to the immense tragedy of war.”[182] Moreover, the ease with which autonomous weapons make war more viable militates against the principle of war as a last resort in legitimate self-defense,[183] potentially increasing the instruments of war well beyond the scope of human oversight and precipitating a destabilizing arms race, with catastrophic consequences for human rights.[184]
    100. In particular, Lethal Autonomous Weapon Systems, which are capable of identifying and striking targets without direct human intervention, are a “cause for grave ethical concern” because they lack the “unique human capacity for moral judgment and ethical decision-making.”[185] For this reason, Pope Francis has urgently called for a reconsideration of the development of these weapons and a prohibition on their use, starting with “an effective and concrete commitment to introduce ever greater and proper human control. No machine should ever choose to take the life of a human being.”[186]
    101. Since it is a small step from machines that can kill autonomously with precision to those capable of large-scale destruction, some AI researchers have expressed concerns that such technology poses an “existential risk” by having the potential to act in ways that could threaten the survival of entire regions or even of humanity itself. This danger demands serious attention, reflecting the long-standing concern about technologies that grant war “an uncontrollable destructive power over great numbers of innocent civilians,”[187] without even sparing children. In this context, the call from Gaudium et Spes to “undertake an evaluation of war with an entirely new attitude”[188] is more urgent than ever.
    102. At the same time, while the theoretical risks of AI deserve attention, the more immediate and pressing concern lies in how individuals with malicious intentions might misuse this technology.[189] Like any tool, AI is an extension of human power, and while its future capabilities are unpredictable, humanity’s past actions provide clear warnings. The atrocities committed throughout history are enough to raise deep concerns about the potential abuses of AI.
    103. Saint John Paul II observed that “humanity now has instruments of unprecedented power: we can turn this world into a garden, or reduce it to a pile of rubble.”[190] Given this fact, the Church reminds us, in the words of Pope Francis, that “we are free to apply our intelligence towards things evolving positively,” or toward “decadence and mutual destruction.”[191] To prevent humanity from spiraling into self-destruction,[192] there must be a clear stand against all applications of technology that inherently threaten human life and dignity. This commitment requires careful discernment about the use of AI, particularly in military defense applications, to ensure that it always respects human dignity and serves the common good. The development and deployment of AI in armaments should be subject to the highest levels of ethical scrutiny, governed by a concern for human dignity and the sanctity of life.[193]
    AI and Our Relationship with God
    104. Technology offers remarkable tools to oversee and develop the world’s resources. However, in some cases, humanity is increasingly ceding control of these resources to machines. Within some circles of scientists and futurists, there is optimism about the potential of artificial general intelligence (AGI), a hypothetical form of AI that would match or surpass human intelligence and bring about unimaginable advancements. Some even speculate that AGI could achieve superhuman capabilities. At the same time, as society drifts away from a connection with the transcendent, some are tempted to turn to AI in search of meaning or fulfillment—longings that can only be truly satisfied in communion with God.[194]
    105. However, the presumption of substituting God for an artifact of human making is idolatry, a practice Scripture explicitly warns against (e.g., Ex. 20:4; 32:1-5; 34:17). Moreover, AI may prove even more seductive than traditional idols for, unlike idols that “have mouths but do not speak; eyes, but do not see; ears, but do not hear” (Ps. 115:5-6), AI can “speak,” or at least gives the illusion of doing so (cf. Rev. 13:15). Yet, it is vital to remember that AI is but a pale reflection of humanity—it is crafted by human minds, trained on human-generated material, responsive to human input, and sustained through human labor. AI cannot possess many of the capabilities specific to human life, and it is also fallible. By turning to AI as a perceived “Other” greater than itself, with which to share existence and responsibilities, humanity risks creating a substitute for God. However, it is not AI that is ultimately deified and worshipped, but humanity itself—which, in this way, becomes enslaved to its own work.[195]
    106. While AI has the potential to serve humanity and contribute to the common good, it remains a creation of human hands, bearing “the imprint of human art and ingenuity” (Acts 17:29). It must never be ascribed undue worth. As the Book of Wisdom affirms: “For a man made them, and one whose spirit is borrowed formed them; for no man can form a god which is like himself. He is mortal, and what he makes with lawless hands is dead, for he is better than the objects he worships since he has life, but they never have” (Wis. 15:16-17).
    107. In contrast, human beings, “by their interior life, transcend the entire material universe; they experience this deep interiority when they enter into their own heart, where God, who probes the heart, awaits them, and where they decide their own destiny in the sight of God.”[196] It is within the heart, as Pope Francis reminds us, that each individual discovers the “mysterious connection between self-knowledge and openness to others, between the encounter with one’s personal uniqueness and the willingness to give oneself to others.”[197] Therefore, it is the heart alone that is “capable of setting our other powers and passions, and our entire person, in a stance of reverence and loving obedience before the Lord,”[198] who “offers to treat each one of us as a ‘Thou,’ always and forever.”[199]
    VI. Concluding Reflections
    108. Considering the various challenges posed by advances in technology, Pope Francis emphasized the need for growth in “human responsibility, values, and conscience,” proportionate to the growth in the potential that this technology brings[200]—recognizing that “with an increase in human power comes a broadening of responsibility on the part of individuals and communities.”[201]
    109. At the same time, the “essential and fundamental question” remains “whether in the context of this progress man, as man, is becoming truly better, that is to say, more mature spiritually, more aware of the dignity of his humanity, more responsible, more open to others, especially the neediest and the weakest, and readier to give and to aid all.”[202]
    110. As a result, it is crucial to know how to evaluate individual applications of AI in particular contexts to determine whether its use promotes human dignity, the vocation of the human person, and the common good. As with many technologies, the effects of the various uses of AI may not always be predictable from their inception. As these applications and their social impacts become clearer, appropriate responses should be made at all levels of society, following the principle of subsidiarity. Individual users, families, civil society, corporations, institutions, governments, and international organizations should work at their proper levels to ensure that AI is used for the good of all.
    111. A significant challenge and opportunity for the common good today lies in considering AI within a framework of relational intelligence, which emphasizes the interconnectedness of individuals and communities and highlights our shared responsibility for fostering the integral well-being of others. The twentieth-century philosopher Nicholas Berdyaev observed that people often blame machines for personal and social problems; however, “this only humiliates man and does not correspond to his dignity,” for “it is unworthy to transfer responsibility from man to a machine.”[203] Only the human person can be morally responsible, and the challenges of a technological society are ultimately spiritual in nature. Therefore, facing those challenges “demands an intensification of spirituality.”[204]
    112. A further point to consider is the call, prompted by the appearance of AI on the world stage, for a renewed appreciation of all that is human. Years ago, the French Catholic author Georges Bernanos warned that “the danger is not in the multiplication of machines, but in the ever-increasing number of men accustomed from their childhood to desire only what machines can give.”[205] This challenge is as true today as it was then, as the rapid pace of digitization risks a “digital reductionism,” where non-quantifiable aspects of life are set aside and then forgotten or even deemed irrelevant because they cannot be computed in formal terms. AI should be used only as a tool to complement human intelligence rather than replace its richness.[206] Cultivating those aspects of human life that transcend computation is crucial for preserving “an authentic humanity” that “seems to dwell in the midst of our technological culture, almost unnoticed, like a mist seeping gently beneath a closed door.”[207]
    True Wisdom
    113. The vast expanse of the world’s knowledge is now accessible in ways that would have filled past generations with awe. However, to ensure that advancements in knowledge do not become humanly or spiritually barren, one must go beyond the mere accumulation of data and strive to achieve true wisdom.[208]
    114. This wisdom is the gift that humanity needs most to address the profound questions and ethical challenges posed by AI: “Only by adopting a spiritual way of viewing reality, only by recovering a wisdom of the heart, can we confront and interpret the newness of our time.”[209] Such “wisdom of the heart” is “the virtue that enables us to integrate the whole and its parts, our decisions and their consequences.” It “cannot be sought from machines,” but it “lets itself be found by those who seek it and be seen by those who love it; it anticipates those who desire it, and it goes in search of those who are worthy of it (cf. Wis 6:12-16).”[210]
    115. In a world marked by AI, we need the grace of the Holy Spirit, who “enables us to look at things with God’s eyes, to see connections, situations, events and to uncover their real meaning.”[211]
    116. Since a “person’s perfection is measured not by the information or knowledge they possess, but by the depth of their charity,”[212] how we incorporate AI “to include the least of our brothers and sisters, the vulnerable, and those most in need, will be the true measure of our humanity.”[213] The “wisdom of the heart” can illuminate and guide the human-centered use of this technology to help promote the common good, care for our “common home,” advance the search for the truth, foster integral human development, favor human solidarity and fraternity, and lead humanity to its ultimate goal: happiness and full communion with God.[214]
    117. From this perspective of wisdom, believers will be able to act as moral agents capable of using this technology to promote an authentic vision of the human person and society.[215] This should be done with the understanding that technological progress is part of God’s plan for creation—an activity that we are called to order toward the Paschal Mystery of Jesus Christ, in the continual search for the True and the Good.
    The Supreme Pontiff, Francis, at the Audience granted on 14 January 2025 to the undersigned Prefects and Secretaries of the Dicastery for the Doctrine of the Faith and the Dicastery for Culture and Education, approved this Note and ordered its publication.
    Given in Rome, at the offices of the Dicastery for the Doctrine of the Faith and the Dicastery for Culture and Education, on 28 January 2025, the Liturgical Memorial of Saint Thomas Aquinas, Doctor of the Church.
    Víctor Manuel Card. Fernández                                         José Card. Tolentino de Mendonça
    Prefect                                                                           Prefect
    Msgr. Armando Matteo                                                    Most Rev. Paul Tighe
    Secretary, Doctrinal Section                                             Secretary, Culture Section
    Ex audientia die 14 ianuarii 2025
    Franciscus
    _________________
    [1] Catechism of the Catholic Church, par. 378. See also Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 34: AAS 58 (1966), 1052-1053.
    [2] Francis, Address to the Participants in the Plenary Assembly of the Pontifical Academy for Life (28 February 2020): AAS 112 (2020), 307. Cf. Id., Christmas Greetings to the Roman Curia (21 December 2019): AAS 112 (2020), 43.
    [3] Cf. Francis, Message for the LVIII World Day of Social Communications (24 January 2024): L’Osservatore Romano, 24 January 2024, 8.
    [4] Cf. Catechism of the Catholic Church, par. 2293; Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 35: AAS 58 (1966), 1053.
    [5] J. McCarthy, et al., “A Proposal for the Dartmouth Summer Research Project on Artificial Intelligence” (31 August 1955), http://www-formal.stanford.edu/jmc/history/dartmouth/dartmouth.html (accessed: 21 October 2024).
    [6] Cf. Francis, Message for the LVII World Day of Peace (1 January 2024), pars. 2-3: L’Osservatore Romano, 14 December 2023, 2.
    [7] Terms in this document describing the outputs or processes of AI are used figuratively to explain its operations and are not intended to anthropomorphize the machine.
    [8] Cf. Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 3; Id., Message for the LVII World Day of Peace (1 January 2024), par. 2: L’Osservatore Romano, 14 December 2023, 2.
    [9] Here, one can see the primary positions of the “transhumanists” and the “posthumanists.” Transhumanists argue that technological advancements will enable humans to overcome their biological limitations and enhance both their physical and cognitive abilities. Posthumanists, on the other hand, contend that such advances will ultimately alter human identity to the extent that humanity itself may no longer be considered truly “human.” Both views rest on a fundamentally negative perception of human corporality, which treats the body more as an obstacle than as an integral part of the person’s identity and call to full realization. Yet, this negative view of the body is inconsistent with a proper understanding of human dignity. While the Church supports genuine scientific progress, it affirms that human dignity is rooted in “the person as an inseparable unity of body and soul.” Thus, “dignity is also inherent in each person’s body, which participates in its own way in being in imago Dei” (Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita [8 April 2024], par. 18).
    [10] This approach reflects a functionalist perspective, which reduces the human mind to its functions and assumes that its functions can be entirely quantified in physical or mathematical terms. However, even if a future AGI were to appear truly intelligent, it would still remain functional in nature.
    [11] Cf. A.M. Turing, “Computing Machinery and Intelligence,” Mind 59 (1950) 443-460.
    [12] If “thinking” is attributed to machines, it must be clarified that this refers to calculative thinking rather than critical thinking. Similarly, if machines are said to operate using logical thinking, it must be specified that this is limited to computational logic. On the other hand, by its very nature, human thought is a creative process that eludes programming and transcends constraints.
    [13] On the foundational role of language in shaping understanding, cf. M. Heidegger, Über den Humanismus, Klostermann, Frankfurt am Main 1949 (en. tr. “Letter on Humanism,” in Basic Writings: Martin Heidegger, Routledge, London ‒ New York 2010, 141-182).
    [14] For further discussion of these anthropological and theological foundations, see AI Research Group of the Centre for Digital Culture of the Dicastery for Culture and Education, Encountering Artificial Intelligence: Ethical and Anthropological Investigations(Theological Investigations of Artificial Intelligence 1), M.J. Gaudet, N. Herzfeld, P. Scherz, J.J. Wales, eds., Journal of Moral Theology, Pickwick, Eugene 2024, 43-144.
    [15] Aristotle, Metaphysics, I.1, 980 a 21.
    [16] Cf. Augustine, De Genesi ad litteram III, 20, 30: PL 34, 292: “Man is made in the image of God in relation to that [faculty] by which he is superior to the irrational animals. Now, this [faculty] is reason itself, or the ‘mind,’ or ‘intelligence,’ whatever other name it may more suitably be given”; Id., Enarrationes in Psalmos 54, 3: PL 36, 629: “When considering all that they have, humans discover that they are most distinguished from animals precisely by the fact they possess intelligence.” This is also reiterated by Saint Thomas Aquinas, who states that “man is the most perfect of all earthly beings endowed with motion, and his proper and natural operation is intellection,” by which man abstracts from things and “receives in his mind things actually intelligible” (Thomas Aquinas, Summa Contra Gentiles II, 76).
    [17] Cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 15: AAS 58 (1966), 1036.
    [18] Aquinas, Summa Theologiae, II-II, q. 49, a. 5, ad 3. Cf. ibid., I, q. 79; II-II, q. 47, a. 3; II-II, q. 49, a. 2. For a contemporary perspective that echoes elements of the classical and medieval distinction between these two modes of cognition, cf. D. Kahneman, Thinking, Fast and Slow, New York 2011.
    [19] Aquinas, Summa Theologiae, I, q. 76, a. 1, resp.
    [20] Cf. Irenaeus of Lyon, Adversus Haereses, V, 6, 1: PG 7(2), 1136-1138.
    [21] Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (8 April 2024), par. 9. Cf. Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 213: AAS 112 (2020), 1045: “The intellect can investigate the reality of things through reflection, experience and dialogue, and come to recognize in that reality, which transcends it, the basis of certain universal moral demands.”
    [22] Cf. Congregation for the Doctrine of the Faith, Doctrinal Note on Some Aspects of Evangelization (3 December 2007), par. 4: AAS 100 (2008), 491-492.
    [23] Catechism of the Catholic Church, par. 365. Cf. Aquinas, Summa Theologiae, I, q. 75, a. 4, resp.
    [24] Indeed, Sacred Scripture “generally considers the human person as a being who exists in the body and is unthinkable outside of it” (Pontifical Biblical Commission, “Che cosa è l’uomo?” (Sal 8,5): Un itinerario di antropologia biblica [30 September 2019], par. 19). Cf. ibid., pars. 20-21, 43-44, 48.
    [25] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 22: AAS 58 (1966), 1042: Cf. Congregation for the Doctrine of the Faith, Instruction Dignitas Personae (8 September 2008), par. 7: AAS 100 (2008), 863: “Christ did not disdain human bodiliness, but instead fully disclosed its meaning and value.”
    [26] Aquinas, Summa Contra Gentiles II, 81.
    [27] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 15: AAS 58 (1966), 1036.
    [28] Cf. Aquinas, Summa Theologiae I, q. 89, a. 1, resp.: “to be separated from the body is not in accordance with [the soul’s] nature […] and hence it is united to the body in order that it may have an existence and an operation suitable to its nature.”
    [29] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 14: AAS 58 (1966), 1035. Cf. Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (8 April 2024), par. 18.
    [30] International Theological Commission, Communion and Stewardship: Human Persons Created in the Image of God (2004), par. 56. Cf. Catechism of the Catholic Church, par. 357.
    [31] Cf. Congregation for the Doctrine of the Faith, Instruction Dignitas Personae (8 September 2008), pars. 5, 8; Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (8 April 2024), pars. 15, 24, 53-54.
    [32] Catechism of the Catholic Church, par. 356. Cf. ibid., par. 221.
    [33] Cf. Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (8 April 2024), pars. 13, 26-27.
    [34] Congregation for the Doctrine of the Faith, Instruction Donum Veritatis (24 May 1990), 6: AAS 82 (1990), 1552. Cf. John Paul II, Encyclical Veritatis Splendor (6 August 1993), par. 109: AAS 85 (1993), 1219. Cf. Pseudo-Dionysius, De divinis nominibus, VII, 2: PG 3, 868B-C: “Human souls also possess reason and with it they circle in discourse around the truth of things. […] [O]n account of the manner in which they are capable of concentrating the many into the one, they too, in their own fashion and as far as they can, are worthy of conceptions like those of the angels” (en. tr. Pseudo-Dionysius: The Complete Works, Paulist Press, New York – Mahwah 1987, 106-107).
    [35] John Paul II, Encyclical Letter Fides et Ratio (14 September 1998), par. 3: AAS 91 (1999), 7.
    [36] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 15: AAS 58 (1966), 1036.
    [37] John Paul II, Encyclical Letter Fides et Ratio (14 September 1998), par. 42: AAS 91 (1999), 38. Cf. Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 208: AAS 112 (2020), 1043: “the human mind is capable of transcending immediate concerns and grasping certain truths that are unchanging, as true now as in the past. As it peers into human nature, reason discovers universal values derived from that same nature”; ibid., par. 184: AAS 112 (2020), 1034.
    [38] Cf. B. Pascal, Pensées, no. 267 (ed. Brunschvicg): “The last proceeding of reason is to recognize that there is an infinity of things which are beyond it” (en. tr. Pascal’s Pensées, E.P. Dutton, New York 1958, 77).
    [39] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 15: AAS 58 (1966), 1036. Cf. Congregation for the Doctrine of the Faith, Doctrinal Note on Some Aspects of Evangelization (3 December 2007), par. 4: AAS 100 (2008), 491-492.
    [40] Our semantic capacity allows us to understand messages in any form of communication in a manner that both takes into account and transcends their material or empirical structures (such as computer code). Here, intelligence becomes a wisdom that “enables us to look at things with God’s eyes, to see connections, situations, events and to uncover their real meaning” (Francis, Message for the LVIII World Day of Social Communications [24 January 2024]: L’Osservatore Romano, 24 January 2024, 8). Our creativity enables us to generate new content or ideas, primarily by offering an original viewpoint on reality. Both capacities depend on the existence of a personal subjectivity for their full realization.
    [41] Second Vatican Ecumenical Council, Declaration Dignitatis Humanae (7 December 1965), par. 3: AAS 58 (1966), 931.
    [42] Cf. Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 184: AAS 112 (2020), 1034: “Charity, when accompanied by a commitment to the truth, is much more than personal feeling […]. Indeed, its close relation to truth fosters its universality and preserves it from being ‘confined to a narrow field devoid of relationships.’ […] Charity’s openness to truth thus protects it from ‘a fideism that deprives it of its human and universal breadth.’” The internal quotes are from Benedict XVI, Encyclical Letter Caritas in Veritate (29 June 2009), pars. 2-4: AAS 101 (2009), 642-643.
    [43] Cf. International Theological Commission, Communion and Stewardship: Human Persons Created in the Image of God (2004), par. 7.
    [44] John Paul II, Encyclical Letter Fides et Ratio (14 September 1998), par. 13: AAS 91 (1999), 15. Cf. Congregation for the Doctrine of the Faith, Doctrinal Note on Some Aspects of Evangelization (3 December 2007), par. 4: AAS 100 (2008), 491-492.
    [45] John Paul II, Encyclical Letter Fides et Ratio (14 September 1998), par. 13: AAS 91 (1999), 15.
    [46] Bonaventure, In II Librum Sententiarum, d. I, p. 2, a. 2, q. 1; as quoted in Catechism of the Catholic Church, par. 293. Cf. ibid., par. 294.
    [47] Cf. Catechism of the Catholic Church, pars. 295, 299, 302. Bonaventure likens the universe to “a book reflecting, representing, and describing its Maker,” the Triune God who grants existence to all things (Breviloquium 2.12.1). Cf. Alain de Lille, De Incarnatione Christi, PL 210, 579a: “Omnis mundi creatura quasi liber et pictura nobis est et speculum.”
    [48] Cf. Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 67: AAS 107 (2015), 874; John Paul II, Encyclical Letter Laborem Exercens (14 September 1981), par. 6: AAS 73 (1981), 589-592; Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), pars. 33-34: AAS 58 (1966), 1052-1053; International Theological Commission, Communion and Stewardship: Human Persons Created in the Image of God (2004), par. 57: “human beings occupy a unique place in the universe according to the divine plan: they enjoy the privilege of sharing in the divine governance of visible creation. […] Since man’s place as ruler is in fact a participation in the divine governance of creation, we speak of it here as a form of stewardship.”
    [49] Cf. John Paul II, Encyclical Letter Veritatis Splendor (6 August 1993), pars. 38-39: AAS 85 (1993), 1164-1165.
    [50] Cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), pars. 33-34: AAS 58 (1966), 1052-1053. This idea is also reflected in the creation account, where God brings creatures to Adam “to see what he would call them. And whatever [he] called every living creature, that was its name” (Gen. 2:19), an action that demonstrates the active engagement of human intelligence in the stewardship of God’s creation. Cf. John Chrysostom, Homiliae in Genesim, XIV, 17-21: PG 53, 116-117.
    [51] Cf. Catechism of the Catholic Church, par. 301.
    [52] Cf. Catechism of the Catholic Church, par. 302.
    [53] Bonaventure, Breviloquium 2.12.1. Cf. ibid., 2.11.2.
    [54] Cf. Francis, Apostolic Exhortation Evangelii Gaudium (24 November 2013), par. 236: AAS 105 (2023), 1115; Id., Address to Participants in the Meeting of University Chaplains and Pastoral Workers Promoted by the Dicastery for Culture and Education(24 November 2023): L’Osservatore Romano, 24 November 2023, 7.
    [55] Cf. J.H. Newman, The Idea of a University Defined and Illustrated, Discourse 5.1, Basil Montagu Pickering, London 18733, 99-100; Francis, Address to Rectors, Professors, Students and Staff of the Roman Pontifical Universities and Institutions (25 February 2023): AAS 115 (2023), 316.
    [56] Francis, Address to the Members of the National Confederation of Artisans and Small- and Medium-Sized Enterprises (CNA) (15 November 2024): L’Osservatore Romano, 15 November 2024, 8.
    [57] Cf. Francis, Post-Synodal Apostolic Exhortation Querida Amazonia (2 February 2020), par. 41: AAS 112 (2020), 246; Id., Encyclical Letter Laudato Si’ (24 May 2015), par. 146: AAS 107 (2015), 906.
    [58] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 47: AAS 107 (2015), 864. Cf. Id., Encyclical Letter Dilexit Nos (24 October 2024), pars. 17-24: L’Osservatore Romano, 24 October 2024, 5; Id., Encyclical Letter Fratelli Tutti (3 October 2020), par. 47-50: AAS 112 (2020), 985-987.
    [59] Francis, Encyclical Letter Dilexit Nos (24 October 2024), par. 20: L’Osservatore Romano, 24 October 2024, 5.
    [60] P. Claudel, Conversation sur Jean Racine, Gallimard, Paris 1956, 32: “L’intelligence n’est rien sans la délectation.” Cf. Francis, Encyclical Letter Dilexit Nos (24 October 2024), par. 13: L’Osservatore Romano, 24 October 2024, 5: “The mind and the will are put at the service of the greater good by sensing and savoring truths.”
    [61] Dante, Paradiso, Canto XXX: “luce intellettüal, piena d’amore; / amor di vero ben, pien di letizia; / letizia che trascende ogne dolzore” (en. tr. The Divine Comedy of Dante Alighieri, C.E. Norton, tr., Houghton Mifflin, Boston 1920, 232).
    [62] Cf. Second Vatican Ecumenical Council, Declaration Dignitatis Humanae (7 December 1965), par. 3: AAS 58 (1966), 931: “[T]he highest norm of human life is the divine law itself—eternal, objective and universal, by which God orders, directs and governs the whole world and the ways of the human community according to a plan conceived in his wisdom and love. God has enabled man to participate in this law of his so that, under the gentle disposition of divine providence, many may be able to arrive at a deeper and deeper knowledge of unchangeable truth.” Also cf. Id., Pastoral Constitution Gaudium et Spes (7 December 1965), par. 16: AAS 58 (1966), 1037.
    [63] Cf. First Vatican Council, Dogmatic Constitution Dei Filius (24 April 1870), ch. 4, DH 3016.
    [64] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 110: AAS 107 (2015), 892.
    [65] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 110: AAS 107 (2015), 891. Cf. Id., Encyclical Letter Fratelli Tutti (3 October 2020), par. 204: AAS 112 (2020), 1042.
    [66] Cf. John Paul II, Encyclical Letter Centesimus Annus (1 May 1991), par. 11: AAS 83 (1991), 807: “God has imprinted his own image and likeness on man (cf. Gen 1:26), conferring upon him an incomparable dignity […]. In effect, beyond the rights which man acquires by his own work, there exist rights which do not correspond to any work he performs, but which flow from his essential dignity as a person.” Cf. Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 3-4.
    [67] Cf. Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (8 April 2024), par. 8. Cf. ibid., par. 9; Congregation for the Doctrine of the Faith, Instruction Dignitas Personae (8 September 2008), par. 22.
    [68] Francis, Address to the Participants in the Plenary Assembly of the Pontifical Academy for Life (28 February 2020): AAS 112 (2024), 310.
    [69] Francis, Message for the LVIII World Day of Social Communications (24 January 2024): L’Osservatore Romano, 24 January 2024, 8.
    [70] In this sense, “Artificial Intelligence” is understood as a technical term to indicate this technology, recalling that the expression is also used to designate the field of study and not only its applications.
    [71] Cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), pars. 34-35: AAS 58 (1966), 1052-1053; John Paul II, Encyclical Letter Centesimus Annus (1 May 1991), par. 51: AAS 83 (1991), 856-857.
    [72] For example, see the encouragement of scientific exploration in Albertus Magnus (De Mineralibus, II, 2, 1) and the appreciation for the mechanical arts in Hugh of St. Victor (Didascalicon, I, 9). These writers, among a long list of other Catholics engaged in scientific research and technological exploration, illustrate that “faith and science can be united in charity, provided that science is put at the service of the men and woman of our time and not misused to harm or even destroy them” (Francis, Address to Participants in the 2024 Lemaître Conference of the Vatican Observatory [20 June 2024]: L’Osservatore Romano, 20 June 2024, 8). Cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 36: AAS 58 (1966), 1053-1054; John Paul II, Encyclical Letter Fides et Ratio (14 September 1998), pars. 2, 106: AAS 91 (1999), 6-7.86-87.
    [73] Catechism of the Catholic Church, par. 378.
    [74] Cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 34: AAS 58 (1966), 1053.
    [75] Cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 35: AAS 58 (1966), 1053.
    [76] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 102: AAS 107 (2015), 888.
    [77] Cf. Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 105: AAS 107 (2015), 889; Id., Encyclical Fratelli Tutti (3 October 2020), par. 27: AAS 112 (2020), 978; Benedict XVI, Encyclical Caritas in Veritate (29 June 2009), par. 23: AAS 101 (2009), 657-658.
    [78] Cf. Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (8 April 2024), pars. 38-39, 47; Congregation for the Doctrine of the Faith, Instruction Dignitas Personae (8 September 2008), passim.
    [79] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 35: AAS 58 (1966), 1053. Cf. Catechism of the Catholic Church, par 2293.
    [80] Cf. Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 2-4.
    [81] Cf. Catechism of the Catholic Church, par. 1749: “Freedom makes man a moral subject. When he acts deliberately, man is, so to speak, the father of his acts.”
    [82] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 16: AAS 58 (1966), 1037. Cf. Catechism of the Catholic Church, par. 1776.
    [83] Catechism of the Catholic Church, par. 1777.
    [84] Cf. Catechism of the Catholic Church, pars. 1779-1781; Francis, Address to the Participants in the “Minerva Dialogues” (27 March 2023): AAS 115 (2023), 463, where the Holy Father encouraged efforts “to ensure that technology remains human-centered, ethically grounded and directed toward the good.”
    [85] Cf. Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 166: AAS 112 (2020), 1026-1027; Id., Address to the Plenary Assembly of the Pontifical Academy of Sciences (23 September 2024): L’Osservatore Romano, 23 September 2024, 10. On the role of human agency in choosing a wider aim (Ziel) that then informs the particular purpose (Zweck) for which each technological application is created, cf. F. Dessauer, Streit um die Technik, Herder-Bücherei, Freiburg i. Br. 1959, 70-71.
    [86] Cf. Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 4: “Technology is born for a purpose and, in its impact on human society, always represents a form of order in social relations and an arrangement of power, thus enabling certain people to perform specific actions while preventing others from performing different ones. In a more or less explicit way, this constitutive power-dimension of technology always includes the worldview of those who invented and developed it.”
    [87] Francis, Address to the Participants in the Plenary Assembly of the Pontifical Academy of Life (28 February 2020): AAS 112 (2020), 309.
    [88] Cf. Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 3-4.
    [89] Francis, Address to the Participants in the “Minerva Dialogues” (27 March 2023): AAS 115 (2023), 464. Cf. Id., Encyclical Letter Fratelli Tutti, pars. 212-213: AAS 112 (2020), 1044-1045.
    [90] Cf. John Paul II, Encyclical Letter Laborem Exercens (14 September 1981), par. 5: AAS 73 (1981), 589; Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 3-4.
    [91] Cf. Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 2: “Faced with the marvels of machines, which seem to know how to choose independently, we should be very clear that decision-making […] must always be left to the human person. We would condemn humanity to a future without hope if we took away people’s ability to make decisions about themselves and their lives, by dooming them to depend on the choices of machines.”
    [92] Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 2.
    [93] The term “bias” in this document refers to algorithmic bias (systematic and consistent errors in computer systems that may disproportionately prejudice certain groups in unintended ways) or learning bias (which will result in training on a biased data set) and not the “bias vector” in neural networks (which is a parameter used to adjust the output of “neurons” to adjust more accurately to the data).
    [94] Cf. Francis, Address to the Participants in the “Minerva Dialogues” (27 March 2023): AAS 115 (2023), 464, where the Holy Father affirmed the growth in consensus “on the need for development processes to respect such values as inclusion, transparency, security, equity, privacy and reliability,” and also welcomed “the efforts of international organizations to regulate these technologies so that they promote genuine progress, contributing, that is, to a better world and an integrally higher quality of life.”
    [95] Francis, Greetings to a Delegation of the “Max Planck Society” (23 February 2023): L’Osservatore Romano, 23 February 2023, 8.
    [96] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 26: AAS 58 (1966), 1046-1047.
    [97] Francis, Address to Participants at the Seminar “The Common Good in the Digital Age” (27 September 2019): AAS 111 (2019), 1571.
    [98] Cf. Francis, Message for the LVIII World Day of Social Communications (24 January 2024): L’Osservatore Romano, 24 January 2024, 8. For further discussion of the ethical questions raised by AI from a Catholic perspective, see AI Research Group of the Centre for Digital Culture of the Dicastery for Culture and Education, Encountering Artificial Intelligence: Ethical and Anthropological Investigations (Theological Investigations of Artificial Intelligence 1), M.J. Gaudet, N. Herzfeld, P. Scherz, J.J. Wales, eds., Journal of Moral Theology, Pickwick, Eugene 2024, 147-253.
    [99] On the importance of dialogue in a pluralist society oriented toward a “robust and solid social ethics,” see Francis, Encyclical Letter Fratelli Tutti (3 October 2020), pars. 211-214: AAS 112 (2020), 1044-1045.
    [100] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 2: L’Osservatore Romano, 14 December 2023, 2.
    [101] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 6: L’Osservatore Romano, 14 December 2023, 3. Cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 26: AAS 58 (1966), 1046-1047.
    [102] Cf. Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 112: AAS 107 (2015), 892-893.
    [103] Francis, Address to the Participants in the “Minerva Dialogues” (27 March 2023): AAS 115 (2023), 464.
    [104] Cf. Pontifical Council for Social Communications, Ethics in Internet (22 February 2002), par. 10.
    [105] Francis, Post-Synodal Exhortation Christus Vivit (25 March 2019), par. 89: AAS 111 (2019), 413-414; quoting the Final Document of the XV Ordinary General Assembly of the Synod of Bishops (27 October 2018), par. 24: AAS 110 (2018), 1593. Cf. Benedict XVI, Address to the Participants in the International Congress on Natural Moral Law (12 February 2017): AAS 99 (2007), 245.
    [106] Cf. Francis, Encyclical Letter Laudato Si’ (24 May 2015), pars. 105-114: AAS 107 (2015), 889-893; Id., Apostolic Exhortation Laudate Deum (4 October 2023), pars. 20-33: AAS 115 (2023), 1047-1050.
    [107] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 105: AAS 107 (2015), 889. Cf. Id., Apostolic Exhortation Laudate Deum (4 October 2023), pars. 20-21: AAS 115 (2023), 1047.
    [108] Cf. Francis, Address to the Participants in the Plenary Assembly of the Pontifical Academy for Life (28 February 2020): AAS 112 (2020), 308-309.
    [109] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 2: L’Osservatore Romano, 14 December 2023, 2.
    [110] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 112: AAS 107 (2015), 892.
    [111] Cf. Francis, Encyclical Letter Fratelli Tutti (3 October 2020), pars. 101, 103, 111, 115, 167: AAS 112 (2020), 1004-1005, 1007-1009, 1027.
    [112] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 26: AAS 58 (1966), 1046-1047; cf. Leo XIII, Encyclical Letter Rerum Novarum (15 May 1891), par. 35: Acta Leonis XIII, 11 (1892), 123.
    [113] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 12: AAS 58 (1966), 1034.
    [114] Cf. Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church (2004), par. 149.
    [115] Second Vatican Ecumenical Council, Declaration Dignitatis Humanae (7 December 1965), par. 3: AAS 58 (1966), 931. Cf. Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 50: AAS 112 (2020), 986-987.
    [116] Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 50: AAS 112 (2020), 986-987.
    [117] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 47: AAS 107 (2015), 865. Cf. Id., Post-Synodal Exhortation Christus Vivit (25 March 2019), pars. 88-89: AAS 111 (2019), 413-414.
    [118] Cf. Francis, Apostolic Exhortation Evangelii Gaudium (24 November 2013), par. 88: AAS 105 (2013), 1057.
    [119] Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 47: AAS 112 (2020), 985.
    [120] Cf. Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 2.
    [121] Cf. Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 50: AAS 112 (2020), 986-987.
    [122] Cf. E. Stein, Zum Problem der Einfühlung, Buchdruckerei des Waisenhauses, Halle 1917 (en. tr. On the Problem of Empathy, ICS Publications, Washington D.C. 1989).
    [123] Cf. Francis, Apostolic Exhortation Evangelii Gaudium (24 November 2013), par. 88: AAS 105 (2013), 1057: “[Many people] want their interpersonal relationships provided by sophisticated equipment, by screens and systems which can be turned on and off on command. Meanwhile, the Gospel tells us constantly to run the risk of a face-to-face encounter with others, with their physical presence which challenges us, with their pain and their pleas, with their joy which infects us in our close and continuous interaction. True faith in the incarnate Son of God is inseparable from self-giving, from membership in the community, from service, from reconciliation with others.” Also cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 24: AAS 58 (1966), 1044-1045.
    [124] Cf. Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (8 April 2024), par. 1.
    [125] Cf. Francis, Address to Participants at the Seminar “The Common Good in the Digital Age” (27 September 2019): AAS 111 (2019), 1570; Id, Encyclical Letter Laudato Si’ (24 May 2015), pars. 18, 124-129: AAS 107 (2015), 854.897-899.
    [126] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 5: L’Osservatore Romano, 14 December 2023, 3.
    [127] Francis, Apostolic Exhortation Evangelii Gaudium (24 November 2013), par. 209: AAS 105 (2013), 1107.
    [128] Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 4. For Pope Francis’ teaching about AI in relationship to the “technocratic paradigm,” cf. Id., Encyclical Laudato Si’ (24 May 2015), pars. 106-114: AAS 107 (2015), 889-893.
    [129] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 26: AAS 58 (1966), 1046-1047.; as quoted in Catechism of the Catholic Church, par. 1912. Cf. John XXIII, Encyclical Letter Mater et Magistra (15 May 1961), par. 219: AAS 53 (1961), 453.
    [130] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par 64: AAS 58 (1966), 1086.
    [131] Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 162: AAS 112 (2020), 1025. Cf. John Paul II, Encyclical Letter Laborem Exercens (14 September 1981), par. 6: AAS 73 (1981), 591: “work is ‘for man’ and not man ‘for work.’ Through this conclusion one rightly comes to recognize the pre-eminence of the subjective meaning of work over the objective one.”
    [132] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 128: AAS 107 (2015), 898. Cf. Id., Post-Synodal Apostolic Exhortation Amoris Laetitia (19 March 2016), par. 24: AAS 108 (2016), 319-320.
    [133] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 5: L’Osservatore Romano, 14 December 2023, 3.
    [134] John Paul II, Encyclical Letter Evangelium Vitae (25 March 1995), par. 89: AAS 87 (1995), 502.
    [135] Ibid.
    [136] Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 67: AAS 112 (2020), 993; as quoted in Id., Message for the XXXI World Day of the Sick (11 February 2023): L’Osservatore Romano, 10 January 2023, 8.
    [137] Francis, Message for the XXXII World Day of the Sick (11 February 2024): L’Osservatore Romano, 13 January 2024, 12.
    [138] Francis, Address to the Diplomatic Corps Accredited to the Holy See (11 January 2016): AAS 108 (2016), 120. Cf. Id., Encyclical Letter Fratelli Tutti (3 October 2020), par. 18: AAS 112 (2020), 975; Id., Message for the XXXII World Day of the Sick(11 February 2024): L’Osservatore Romano, 13 January 2024, 12.
    [139] Cf. Francis, Address to the Participants in the “Minerva Dialogues” (27 March 2023): AAS 115 (2023), 465; Id., Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 2.
    [140] Cf. Francis, Encyclical Letter Laudato Si’ (24 May 2015), pars. 105, 107: AAS 107 (2015), 889-890; Id., Encyclical Letter Fratelli Tutti (3 October 2020), pars. 18-21: AAS 112 (2020), 975-976; Id., Address to the Participants in the “Minerva Dialogues”(27 March 2023): AAS 115 (2023), 465.
    [141] Francis, Address to the Participants at the Meeting Sponsored by the Charity and Health Commission of the Italian Bishops’ Conference (10 February 2017): AAS 109 (2017), 243. Cf. ibid., 242-243: “If there is a sector in which the throwaway culture is manifest, with its painful consequences, it is that of healthcare. When a sick person is not placed in the center or their dignity is not considered, this gives rise to attitudes that can lead even to speculation on the misfortune of others. And this is very grave! […] The application of a business approach to the healthcare sector, if indiscriminate […] may risk discarding human beings.”
    [142] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 5: L’Osservatore Romano, 14 December 2023, 3.
    [143] Second Vatican Ecumenical Council, Declaration Gravissimum Educationis (28 October 1965), par. 1: AAS 58 (1966), 729.
    [144] Congregation for Catholic Education, Instruction on the Use of Distance Learning in Ecclesiastical Universities and Faculties, I. Cf. Second Vatican Ecumenical Council, Declaration Gravissimum Educationis (28 October 1965), par. 1: AAS 58 (1966), 729; Francis, Message for the LXIX World Day of Peace (1 January 2016), 6: AAS 108 (2016), 57-58.
    [145] Francis, Address to Members of the Global Researchers Advancing Catholic Education Project (20 April 2022): AAS 114 (2022), 580.
    [146] Cf. Paul VI, Apostolic Exhortation Evangelii Nuntiandi (8 December 1975), par. 41: AAS 68 (1976), 31, quoting Id., Address to the Members of the “Consilium de Laicis” (2 October 1974): AAS 66 (1974), 568: “if [the contemporary person] does listen to teachers, it is because they are witnesses.”
    [147] J.H. Newman, The Idea of a University Defined and Illustrated, Discourse 6.1, London 18733, 125-126.
    [148] Francis, Meeting with the Students of the Barbarigo College of Padua in the 100th Year of its Foundation (23 March 2019): L’Osservatore Romano, 24 March 2019, 8. Cf. Id., Address to Rectors, Professors, Students and Staff of the Roman Pontifical Universities and Institutions (25 February 2023): AAS 115 (2023), 316.
    [149] Francis, Post-Synodal Apostolic Exhortation Christus Vivit (25 March 2019), par. 86: AAS 111 (2019), 413, quoting the XV Ordinary General Assembly of the Synod of Bishops, Final Document (27 October 2018), par. 21: AAS 110 (2018), 1592.
    [150] J.H. Newman, The Idea of a University Defined and Illustrated, Discourse 7.6, Basil Montagu Pickering, London 18733, 167.
    [151] Cf. Francis, Post-Synodal Apostolic Exhortation Christus Vivit (25 March 2019), par. 88: AAS 111 (2019), 413.
    [152] In a 2023 policy document about the use of generative AI in education and research, UNESCO notes: “One of the key questions [of the use of generative AI (GenAI) in education and research] is whether humans can possibly cede basic levels of thinking and skill-acquisition processes to AI and rather concentrate on higher-order thinking skills based on the outputs provided by AI. Writing, for example, is often associated with the structuring of thinking. With GenAI […], humans can now start with a well-structured outline provided by GenAI. Some experts have characterized the use of GenAI to generate text in this way as ‘writing without thinking’” (UNESCO, Guidance for Generative AI in Education and Research [2023], 37-38). The German-American philosopher Hannah Arendt foresaw such a possibility in her 1959 book, The Human Condition, and cautioned: “If it should turn out to be true that knowledge (in the sense of know-how) and thought have parted company for good, then we would indeed become the helpless slaves, not so much of our machines as of our know-how” (Id., The Human Condition, University of Chicago Press, Chicago 20182, 3).
    [153] Francis, Post-Synodal Apostolic Exhortation Amoris Laetitia (19 March 2016), par. 262: AAS 108 (2016), 417.
    [154] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 7: L’Osservatore Romano, 14 December 2023, 3; cf. Id., Encyclical Letter Laudato Si’ (24 May 2015), par. 167: AAS 107 (2015), 914.
    [155] John Paul II, Apostolic Constitution Ex Corde Ecclesiae (15 August 1990), 7: AAS 82 (1990), 1479.
    [156] Francis, Apostolic Constitution Veritatis Gaudium (29 January 2018), 4c: AAS 110 (2018), 9-10.
    [157] Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 3.
    [158] For example, it might help people access the “array of resources for generating greater knowledge of truth” contained in the works of philosophy (John Paul II, Encyclical Letter Fides et Ratio [14 September 1998], par. 3: AAS 91 [1999], 7). Cf. ibid., par. 4: AAS 91 (1999), 7-8.
    [159] Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (8 April 2024), par. 43. Cf. ibid., pars. 61-62.
    [160] Francis, Message for the LVIII World Day of Social Communications (24 January 2024): L’Osservatore Romano, 24 January 2024, 8.
    [161] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par 25: AAS 58 (1966), 1053; cf. Francis, Encyclical Letter Fratelli Tutti (3 October 2020), passim: AAS 112 (2020), 969-1074.
    [162] Cf. Francis., Post-Synodal Exhortation Christus Vivit (25 March 2019), par. 89: AAS 111 (2019), 414; John Paul II, Encyclical Letter Fides et Ratio (14 September 1998), par. 25: AAS 91 (1999), 25-26: “People cannot be genuinely indifferent to the question of whether what they know is true or not. […] It is this that Saint Augustine teaches when he writes: ‘I have met many who wanted to deceive, but none who wanted to be deceived’”; quoting Augustine, Confessiones, X, 23, 33: PL 32, 794.
    [163] Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (4 April 2024), par. 62.
    [164] Benedict XVI, Message for the XLIII World Day of Social Communications (24 May 2009): L’Osservatore Romano, 24 January 2009, 8.
    [165] Cf. Dicastery for Communications, Towards Full Presence: A Pastoral Reflection on Engagement with Social Media (28 May 2023), par. 41; Second Vatican Ecumenical Council, Decree Inter Mirifica (4 December 1963), pars. 4, 8-12: AAS 56 (1964), 146, 148-149.
    [166] Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (4 April 2024), pars. 1, 6, 16, 24.
    [167] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes, (7 December 1965), par. 26: AAS 58 (1966), 1046. Cf. Leo XIII, Encyclical Letter Rerum Novarum (15 May 1891), par. 40: Acta Leonis XIII, 11 (1892), 127: “no man may with impunity violate that human dignity which God himself treats with great reverence”; as quoted in John Paul II, Encyclical Letter Centesimus Annus (1 May 1991), par. 9: AAS 83 (1991), 804.
    [168] Cf. Catechism of the Catholic Church, pars. 2477, 2489; can. 220 CIC; can. 23 CCEO; John Paul II, Address to the Third General Conference of the Latin American Episcopate (28 January 1979), III.1-2: Insegnamenti II/1 (1979), 202-203.
    [169] Cf. Permanent Observer Mission of the Holy See to the United Nations, Holy See Statement to the Thematic Discussion on Other Disarmament Measures and International Security (24 October 2022): “Upholding human dignity in cyberspace obliges States to also respect the right to privacy, by shielding citizens from intrusive surveillance and allowing them to safeguard their personal information from unauthorized access.”
    [170] Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 42: AAS 112 (2020), 984.
    [171] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 5: L’Osservatore Romano, 14 December 2023, 3.
    [172] Francis, Address to the Participants in the “Minerva Dialogues” (27 March 2023): AAS 115 (2023), 465.
    [173] The 2023 Interim Report of the United Nations AI Advisory Body identified a list of “early promises of AI helping to address climate change” (United Nations AI Advisory Body, Interim Report: Governing AI for Humanity [December 2023], 3). The document observed that, “taken together with predictive systems that can transform data into insights and insights into actions, AI-enabled tools may help develop new strategies and investments to reduce emissions, influence new private sector investments in net zero, protect biodiversity, and build broad-based social resilience” (ibid.).
    [174] “The cloud” refers to a network of physical servers throughout the world that enables users to store, process, and manage their data remotely.
    [175] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 9: AAS 107 (2015), 850.
    [176] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 106: AAS 107 (2015), 890.
    [177] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 60: AAS 107 (2015), 870.
    [178] Francis, Encyclical Letter Laudato Si’ (24 May 2015), pars. 3, 13: AAS 107 (2015), 848.852.
    [179] Augustine, De Civitate Dei, XIX, 13, 1: PL 41, 640.
    [180] Cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), pars. 77-82: AAS 58 (1966), 1100-1107; Francis, Encyclical Letter Fratelli Tutti (3 October 2020), pars. 256-262: AAS 112 (2020), 1060-1063; Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (4 April 2024), pars. 38-39; Catechism of the Catholic Church, pars. 2302-2317.
    [181] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 78: AAS 58 (1966), 1101.
    [182] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 6: L’Osservatore Romano, 14 December 2023, 3.
    [183] Cf. Catechism of the Catholic Church, pars. 2308-2310.
    [184] Cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), pars. 80-81: AAS 58 (1966), 1103-1105.
    [185] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 6: L’Osservatore Romano, 14 December 2023, 3. Cf. Id., Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 2: “We need to ensure and safeguard a space for proper human control over the choices made by artificial intelligence programs: human dignity itself depends on it.”
    [186] Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 2. Cf. Permanent Observer Mission of the Holy See to the United Nations, Holy See Statement to Working Group II on Emerging Technologies at the UN Disarmament Commission (3 April 2024): “The development and use of lethal autonomous weapons systems (LAWS) that lack the appropriate human control would pose fundamental ethical concerns, given that LAWS can never be morally responsible subjects capable of complying with international humanitarian law.”
    [187] Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 258: AAS 112 (2020), 1061. Cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 80: AAS 58 (1966), 1103-1104.
    [188] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 80: AAS 58 (1966), 1103-1104.
    [189] Cf. Francis, Message for the LVII World Day of Peace (1 January 2024), par. 6: L’Osservatore Romano, 14 December 2023, 3: “Nor can we ignore the possibility of sophisticated weapons ending up in the wrong hands, facilitating, for instance, terrorist attacks or interventions aimed at destabilizing the institutions of legitimate systems of government. In a word, the world does not need new technologies that contribute to the unjust development of commerce and the weapons trade and consequently end up promoting the folly of war.”
    [190] John Paul II, Act of Entrustment to Mary for the Jubilee of Bishops (8 October 2000), par. 3: Insegnamenti XXIII/2 (200), 565.
    [191] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 79: AAS 107 (2015), 878.
    [192] Cf. Benedict XVI, Encyclical Letter Caritas in Veritate (29 June 2009), par. 51: AAS 101 (2009), 687.
    [193] Cf. Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (8 April 2024), pars. 38-39.
    [194] Cf. Augustine, Confessiones, I, 1, 1: PL 32, 661.
    [195] Cf. John Paul II, Encyclical Letter Sollicitudo Rei Socialis (30 December 1987), par. 28: AAS 80 (1988), 548: “[T]here is a better understanding today that the mere accumulation of goods and services […] is not enough for the realization of human happiness. Nor, in consequence, does the availability of the many real benefits provided in recent times by science and technology, including the computer sciences, bring freedom from every form of slavery. On the contrary, […] unless all the considerable body of resources and potential at man’s disposal is guided by a moral understanding and by an orientation towards the true good of the human race, it easily turns against man to oppress him.” Cf. ibid., pars. 29, 37: AAS 80 (1988), 550-551.563-564.
    [196] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 14: AAS 58 (1966), 1036.
    [197] Francis, Encyclical Letter Dilexit Nos (24 October 2024), par. 18: L’Osservatore Romano, 24 October 2024, 5.
    [198] Francis, Encyclical Letter Dilexit Nos (24 October 2024), par. 27: L’Osservatore Romano, 24 October 2024, 6.
    [199] Francis, Encyclical Letter Dilexit Nos (24 October 2024), par. 25: L’Osservatore Romano, 24 October 2024, 5-6.
    [200] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 105: AAS 107 (2015), 889. Cf. R. Guardini, Das Ende der Neuzeit, Würzburg 19659, 87 ff. (en. tr. The End of the Modern World, Wilmington 1998, 82-83).
    [201] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 34: AAS 58 (1966), 1053.
    [202] John Paul II, Encyclical Letter Redemptor Hominis (4 March 1979), par. 15: AAS 71 (1979), 287-288.
    [203] N. Berdyaev, “Man and Machine,” in C. Mitcham – R. Mackey, eds., Philosophy and Technology: Readings in the Philosophical Problems of Technology, New York 19832, 212-213.
    [204] N. Berdyaev, “Man and Machine,” 210.
    [205] G. Bernanos, “La révolution de la liberté” (1944), in Id., Le Chemin de la Croix-des-Âmes, Rocher 1987, 829.
    [206] Cf. Francis, Meeting with the Students of the Barbarigo College of Padua in the 100th Year of its Foundation (23 March 2019): L’Osservatore Romano, 24 March 2019, 8. Cf. Id., Address to Rectors, Professors, Students and Staff of the Roman Pontifical Universities and Institutions (25 February 2023).
    [207] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 112: AAS 107 (2015), 892-893.
    [208] Cf. Bonaventure, Hex. XIX, 3; Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 50: AAS 112 (2020), 986: “The flood of information at our fingertips does not make for greater wisdom. Wisdom is not born of quick searches on the internet nor is it a mass of unverified data. That is not the way to mature in the encounter with truth.”
    [209] Francis, Message for the LVIII World Day of Social Communications (24 January 2024): L’Osservatore Romano, 24 January 2024, 8.
    [210] Ibid.
    [211] Ibid.
    [212] Francis, Apostolic Exhortation Gaudete et Exsultate (19 March 2018), par. 37: AAS 110 (2018), 1121.
    [213] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 6: L’Osservatore Romano, 14 December 2023, 3. Cf. Id., Encyclical Letter Laudato Si’ (24 May 2015), par. 112: AAS 107 (2015), 892-893; Id., Apostolic Exhortation Gaudete et Exsultate (19 March 2018), par. 46: AAS 110 (2018), 1123-1124.
    [214] Cf. Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 112: AAS 107 (2015), 892-893.
    [215] Cf. Francis, Address to the Participants in the Seminar “The Common Good in the Digital Age” (27 September 2019): AAS 111 (2019), 1570-1571.

    MIL OSI Europe News –

    January 29, 2025
  • MIL-OSI United Kingdom: Buffer stop collision at London Bridge station

    Source: United Kingdom – Executive Government & Departments

    Investigation into a collision between a passenger train and buffer stops at London Bridge station, London, 13 December 2024.

    The train and buffer stops (shown on the left of the picture) after the collision (courtesy of Network Rail).

    At around 15:45 on 13 December 2024, the 14:50 Southern passenger service from London Victoria to London Bridge collided with the buffer stops on platform 12 at London Bridge station.

    The train entered the platform at a speed of 13.6 mph (21.9 km/h) and was travelling at a speed of 2.3 mph (3.7 km/h) when it collided with the buffer stops. There were no reported injuries to the train’s driver or the passengers on the train as a result of the collision, although minor damage was sustained by the train and the buffer stops.

    Our investigation will seek to identify the sequence of events that led to the accident. It will also consider:

    • the actions of the train driver involved and anything which may have influenced them
    • the management of the train driver, including their training and competence
    • the arrangements in place to manage and control the risks associated with buffer stop collisions
    • any underlying management factors, including any actions taken in response to previous relevant safety recommendations.

    Our investigation is independent of any investigation by the railway industry, the British Transport Police or the industry’s regulator, the Office of Rail and Road.

    We will publish our findings, including any recommendations to improve safety, at the conclusion of our investigation. This report will be available on our website.

    You can subscribe to automated emails notifying you when we publish our reports.

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    Updates to this page

    Published 28 January 2025

    MIL OSI United Kingdom –

    January 29, 2025
  • MIL-OSI: LQUID Finance Announces Launch of LQUID PAY: Bridging Traditional and Decentralized Finance

    Source: GlobeNewswire (MIL-OSI)

    DUBAI, United Arab Emirates, Jan. 28, 2025 (GLOBE NEWSWIRE) — LQUID Finance has introduced LQUID PAY, a self-custodian payment platform designed to simplify the use of digital assets in everyday transactions. This platform integrates blockchain technology with the convenience of a globally accepted Visa-powered card, allowing users to spend their digital assets seamlessly while maintaining full control over their funds.

    LQUID PAY addresses long-standing challenges in the financial world by enabling users to conduct transactions directly from their on-chain wallets. With automatic cryptocurrency-to-fiat conversions, the platform ensures a smooth and intuitive experience for users managing digital and traditional assets.

    The launch focuses on bridging the gap between traditional financial systems and the expanding Web3 ecosystem. Designed with inclusivity in mind, LQUID PAY brings decentralized finance to a wider audience, offering secure and transparent payment options.

    CEO, Shavez, shared his vision for the platform, stating, “At LQUID Finance, we are committed to creating tools that make finance simpler and more accessible. LQUID PAY represents our step forward in empowering individuals and businesses to use digital assets effortlessly, securely, and globally.”

    The Asian market, home to the largest segment of cryptocurrency users, plays a key role in the launch. LQUID PAY is positioned to serve this market by eliminating barriers to the use of digital assets in real-world transactions. By prioritizing user control, transparency, and accessibility, LQUID PAY sets a new standard for financial tools in the digital era.

    About LQUID Finance:
    LQUID Finance is committed to redefining financial systems by integrating decentralized and traditional finance. With a focus on innovation, security, and accessibility, the company builds solutions that meet the needs of a rapidly evolving global economy.

    Media Contact Details

    Company Name: LQUID FINANCE
    Company Website: https://www.lquid.finance/
    Concerned Person: Shavez Anwar
    Company Email: shavez@lquid.finance

    Disclaimer: This press release is provided by LQUID FINANCE. The statements, views, and opinions expressed in this content are solely those of the sponsor and do not necessarily reflect the views of this media platform. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. This content is for informational purposes only and should not be considered as financial, investment, or trading advice. Investing in cloud mining and related opportunities involves significant risks, including the potential loss of capital. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d4535329-bbed-4642-a720-ed54e76c5c43

    The MIL Network –

    January 29, 2025
  • MIL-OSI: Hyperscale Data Announces 31 Consecutive Monthly Cash Dividend Payments Timely Paid for Series D Cumulative Redeemable Perpetual Preferred Stock

    Source: GlobeNewswire (MIL-OSI)

    LAS VEGAS, Jan. 28, 2025 (GLOBE NEWSWIRE) — Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company (“Hyperscale Data” or the “Company”), today announced that it has successfully paid 31 consecutive monthly cash dividends for its 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock (the “Series D Preferred Stock”). Dividends on the Series D Preferred Stock are cumulative and are payable out of amounts legally available therefor at a rate equal to 13.00% per annum per $25.00 of stated liquidation preference per share, or $0.2708333 per share of Series D Preferred Stock per month.

    Milton “Todd” Ault III, Founder and Executive Chairman of the Company, stated, “As we approach the three-year mark of consecutive dividend payments, the Company remains dedicated to enhancing its overall credit profile while delivering consistent value for existing stockholders. We are proud of the consistency of this dividend and remain committed to the Series D Preferred Stock.”

    Link to NYSE quote for the Company’s 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock: https://www.nyse.com/quote/XASE:GPUSpD

    For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors, and any other interested parties read Hyperscale Data’s public filings and press releases available under the Investor Relations section at hyperscaledata.com or available at www.sec.gov.

    About Hyperscale Data, Inc.

    Hyperscale Data is transitioning from a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact to becoming solely an owner and operator of data centers to support high performance computing services. Through its wholly and majority-owned subsidiaries and strategic investments, Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging artificial intelligence ecosystems and other industries. It also provides, through its wholly owned subsidiary, Ault Capital Group, Inc., mission-critical products that support a diverse range of industries, including an artificial intelligence software platform, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, Hyperscale Data is actively engaged in private credit and structured finance through a licensed lending subsidiary. Hyperscale Data’s headquarters are located at 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141; Hyperscale Data, Inc.

    Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties.

    Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8- K. All filings are available at www.sec.gov and on the Company’s website at www.hyperscaledata.com.

    Hyperscale Data Investor Contact:
    IR@hyperscaledata.com or 1-888-753-2235

    The MIL Network –

    January 29, 2025
  • MIL-OSI: Symbotic Completes Acquisition of Walmart’s Advanced Systems and Robotics Business and Signs Related Commercial Agreement

    Source: GlobeNewswire (MIL-OSI)

    WILMINGTON, Mass., Jan. 28, 2025 (GLOBE NEWSWIRE) —  Symbotic Inc. (Nasdaq: SYM), a leader in A.I.-enabled robotics technology for the supply chain, today announced it has both completed the acquisition of the Advanced Systems and Robotics business from Walmart (NYSE: WMT) and signed the related commercial agreement with Walmart covering the development and deployment of automation systems for Accelerated Pickup and Delivery centers (“APDs”) at Walmart stores (the “Commercial Agreement”).

    Walmart has chosen Symbotic to develop, build and deploy an advanced solution leveraging Symbotic’s A.I.-enabled robotics platform to offer Walmart customers greater shopping convenience through accelerated online pickup and delivery options at stores. Under the terms of the Commercial Agreement, Symbotic will engage in a development program funded by Walmart to enhance current online pickup and delivery fulfillment systems as well as to design new systems to meet the needs of current and future customers. If performance criteria are achieved, Walmart is committed to purchasing and deploying systems for 400 APDs at stores over a multi-year period, with Walmart’s option to add additional APDs in the coming years. Associated with the development program, Walmart will pay Symbotic a total of $520 million, including $230 million that was paid at the closing of the acquisition of the Advanced Systems and Robotics business from Walmart.

    The transaction and new agreement could increase Symbotic’s future backlog by more than $5 billion and adds a micro-fulfillment solution that expands its addressable market by more than $300 billion in the United States alone.

    “We’re excited to expand upon our long-term relationship with Walmart while broadening our product offering to automation at the store to support the growth of eCommerce,” said Rick Cohen, Chairman and Chief Executive Officer of Symbotic.

    ABOUT SYMBOTIC

    Symbotic is an automation technology leader reimagining the supply chain with its end-to-end, A.I.-powered robotic and software platform. Symbotic reinvents the warehouse as a strategic asset for the world’s largest retail, wholesale, and food & beverage companies. Applying next-generation technology, high-density storage and machine learning to solve today’s complex distribution challenges, Symbotic enables companies to move goods with unmatched speed, agility, accuracy and efficiency. As the backbone of commerce, Symbotic transforms the flow of goods and the economics of the supply chain for its customers. For more information, visit www.symbotic.com.

    FORWARD-LOOKING STATEMENTS

    This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but are not limited to, our expectations or predictions of future financial or business performance or conditions. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning our possible or assumed future actions, business strategies, events, backlog, or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates,” or “intends” or similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks are identified and discussed in Symbotic’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein. These risk factors will be important to consider in determining future results and should be reviewed in their entirety. These forward-looking statements are expressed in good faith, and Symbotic believes there is a reasonable basis for them. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and Symbotic is not under any obligation, and expressly disclaims any obligation, to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports, which Symbotic has filed or will file from time to time with the SEC.

    In addition to factors previously disclosed in Symbotic’s filings with the SEC and those identified elsewhere in this communication, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: failure to realize the benefits expected from the transactions described herein (the “Transactions”); business disruption following the Transactions; the occurrence of any event, change or other circumstance that could give rise to the termination of the agreements entered into in connection with the Transactions, including the Commercial Agreement; the effect of the Transactions on Symbotic’s business relationships, performance, and business generally; the amount of the costs, fees, expenses and other charges related to the Transactions; and other consequences associated with joint ventures and legislative and regulatory actions and reforms.

    Any financial projections in this communication are forward-looking statements that are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond Symbotic’s control. While all projections are necessarily speculative, Symbotic believes that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection extends from the date of preparation. The assumptions and estimates underlying the projected results are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the projections. The inclusion of projections in this communication should not be regarded as an indication that Symbotic or its representatives considered or consider the projections to be a reliable prediction of future events.

    Annualized, pro forma, projected and estimated numbers are used for illustrative purposes only, are not forecasts and may not reflect actual results.

    This communication is not intended to be all-inclusive or to contain all the information that a person may desire in considering an investment in Symbotic and is not intended to form the basis of an investment decision in Symbotic. All subsequent written and oral forward-looking statements concerning Symbotic, the Transactions or other matters and attributable to Symbotic or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above.

    INVESTOR RELATIONS CONTACT

    Charlie Anderson
    Vice President, Investor Relations & Corporate Development
    ir@symbotic.com

    MEDIA INQUIRIES

    mediainquiry@symbotic.com

    The MIL Network –

    January 29, 2025
  • MIL-OSI: Publication of eQ Plc’s 2024 financial statements release and invitation to result presentation

    Source: GlobeNewswire (MIL-OSI)

    eQ Plc Investor news

    28 January 2025, at 1:30 p.m.

    eQ Plc will publish its 2024 financial statements release on Tuesday 4 February 2025 at around 8:00 a.m. eQ will present the 2024 result to press, investors and analysts in a press conference to be held on 4 February 2025 at 11:00 a.m. The press conference will held at eQ’s head office in Helsinki, address Aleksanterinkatu 19, 5th floor, 00100 Helsinki and it is also possible to participate via webcast. The webcast participation requires a registration.

    The press conference will be held in Finnish. The presentation material can be viewed at eQ’s website after the press conference has begun. To join the press conference, please register with Nicolina.Zilliacus@eq.fi.

    eQ Plc

    Additional information: Antti Lyytikäinen, CFO, tel. +358 9 6817 8741

    Distribution: Nasdaq Helsinki, www.eQ.fi, media

    eQ Group is a Finnish group of companies specialising in asset management and corporate finance business. eQ Asset Management offers a wide range of asset management services (including private equity funds and real estate asset management) for institutions and individuals. The assets managed by the Group total approximately EUR 13.3 billion. Advium Corporate Finance, which is part of the Group, offers services related to mergers and acquisitions, real estate transactions and equity capital markets.

    More information about the Group is available on our website at www.eQ.fi.

    The MIL Network –

    January 29, 2025
  • MIL-OSI Africa: Congo’s Strategy to Advance Local Content Hydrocarbon Sector

    Source: Africa Press Organisation – English (2) – Report:

    BRAZZAVILLE, Congo (Republic of the), January 28, 2025/APO Group/ —

    The Republic of Congo is prioritizing local content development within its hydrocarbon sector through a combination of government policy and private sector initiatives. The country’s approach aims to maximize domestic benefits from its vast energy resources, with a focus on job creation, technology transfer and building local expertise.

    Regulatory Framework for Local Content

    In line with its economic goals, the government has established policies to ensure that Congo’s energy sector benefits local businesses and workers. The Minister of Hydrocarbons Bruno Jean-Richard Itoua recently launched a registration campaign for subcontracting and service companies in the oil and gas industry. This initiative is designed to enhance transparency and improve the integration of local companies into the industry.

    The government’s strategy is embodied in the Hydrocarbons Code, which mandates the prioritization of Congolese nationals in the workforce. The law encourages partnerships between foreign oil companies and local enterprises, with a focus on capacity building and knowledge sharing. This regulatory framework is supplemented by the development of a comprehensive law on local content, targeting multiple sectors, including hydrocarbons, mining and digital economy. The aim is to diversify the economy and foster the growth of small- and medium-sized enterprises.

    Private Sector Initiatives

    While the government sets the framework, private sector companies are taking proactive steps to promote local content. Energy supermajor TotalEnergies employs around 600 local staff in Congo compared to just 40 expatriates, showcasing it commitment to workplace integration. The company also invests in training and development programs to equip Congolese employees with the skills needed for higher-level roles. In June 2024, TotalEnergies committed $600 million to expand production at the Moho Nord offshore field, with a focus on involving local subcontractors and training programs.

    Similarly, Italian multinational energy company Eni is investing in local workforce development. As part of its efforts to prepare for the launch of LNG production last year, the company trained 40 Congolese employees in liquefaction technologies. This initiative helped to ensure that Congo has the skilled workforce its needs to manage LNG facilities and reduce reliance on foreign specialists.

    To further drive local content development, the inaugural Congo Energy & Investment Forum 2025, will be held in Brazzaville from March 24-26, under the patronage of President Denis Sassou Nguesso and supported by the Ministry of Hydrocarbons and Société National des Pétroles du Congo. The event will bring together government leaders, private sector companies and international investors to discuss progress in integrating local businesses into the energy sector. It will also provide a platform for Congolese companies to explore new opportunities and forge partnerships with global players.

    MIL OSI Africa –

    January 29, 2025
  • MIL-OSI United Kingdom: BUDGET: Scottish Greens secure action on climate, transport costs and child poverty

    Source: Scottish Greens

    28 Jan 2025 Finance

    Scottish Green MSPs agree to support budget

    More in Finance

    The Scottish Greens will support the forthcoming budget, following confirmation that the Scottish Government have agreed to the party’s proposals on record climate funding, the expansion of free school meals and trialling a £2 cap on bus fares.

    As a result of proposals tabled by Scottish Green negotiators, the Government’s budget will now be changed to include the roll-out of free school meals to thousands more young people and a year-long regional trial of a £2 cap on bus fares.

    Other Green proposals accepted include increasing funding for nature restoration to a record £26m, more free ferry travel for young island residents, free bus travel for asylum seekers and help for first time home buyers by increasing tax on the purchase of second/holiday homes.

    Scottish Greens finance spokesperson Ross Greer MSP said:

    “The Scottish Greens put climate action, tackling child poverty, cheaper buses and ferries and funding for schools at the heart of our budget negotiations. We have delivered progress on all of these fronts, so our MSPs will be voting for the budget.

    “No young person should be sitting in school hungry. As a result of our work, thousands more pupils in S1-S3 will now receive a free school meal. This will build on the success of expanding free school meals in primary schools, a policy delivered by the Scottish Greens a few years ago.

    “Our Green MSPs have also secured a year-long regional trial where bus fares will be capped at £2, because we know the cost of public transport needs to come down. This also builds on the success of free bus travel for young people, another Scottish Green policy we made a reality.

    “With climate chaos all around us, we have worked to deliver record funding for nature restoration and our environment. These Green projects are creating well-paid jobs in communities across the country, particularly in rural areas.

    “From schools to libraries to social care to bin collections, our councils deliver the services we all depend on. We have worked with Scottish Green councillors to ensure that this year’s budget delivers a fair deal for local councils, including an end to the Council tax freeze.

    “These changes secured by Scottish Green MSPs will lift more children out of poverty, reduce the cost of public transport, create good quality jobs, tackle the climate crisis and protect local services. That’s in stark contrast to Labour, who agreed to let the SNP’s budget pass without making any attempt to improve it. If you want action to help people and planet, voting Scottish Greens is the best way to deliver it.”

    As a result of Scottish Green negotiations, this budget includes:

    • Making public transport cheaper: A year long regional trial of capping bus fares at £2 starting 1st January 2026, free bus travel for people seeking asylum and free inter-island ferry travel for young island residents
    • Action to tackle child poverty: The expansion of free school meals to thousands of S1-S3 pupils who receive the Scottish Child Payment, starting with eight councils areas in August 2025.
    • Record climate action: A record £4.9bn of funding for climate action and nature restoration.
    • Progressive taxation to support public services: Increased tax on the purchase of second or holiday homes and moving forward with proposals for a Cruise Ship Levy, the consultation for which will launch in February
    • Protecting local services: A real-term funding increase for local councils, and progress on giving councils more direct power through a consultation on devolving Parking Charge Notices (parking fines)

    Letter from Shona Robinson MSP confirming Green budget requests.

    Letter from Ross Greer MSP confirming Green support.

    MIL OSI United Kingdom –

    January 29, 2025
  • MIL-OSI Russia: Dmitry Chernyshenko: It is important to integrate VOIR activities into educational programs of schools, colleges and universities

    Translartion. Region: Russians Fedetion –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    Dmitry Chernyshenko held a meeting of the Board of Trustees of the public organization “All-Russian Society of Inventors and Innovators”

    January 27, 2025

    Dmitry Chernyshenko held a meeting of the Board of Trustees of the public organization “All-Russian Society of Inventors and Innovators”. With the Minister of Education Sergei Kravtsov

    January 27, 2025

    Dmitry Chernyshenko held a meeting of the Board of Trustees of the public organization “All-Russian Society of Inventors and Innovators”. With Deputy Chairman of the State Duma Committee on Science and Higher Education Vladimir Kononov

    January 27, 2025

    Previous news Next news

    Dmitry Chernyshenko held a meeting of the Board of Trustees of the public organization “All-Russian Society of Inventors and Innovators”

    A meeting of the board of trustees of the public organization “All-Russian Society of Inventors and Rationalizers” (VOIR) was held under the chairmanship of Deputy Prime Minister Dmitry Chernyshenko.

    The Deputy Prime Minister noted that VOIR, as one of the oldest public organizations with more than 90 years of history, should make a significant contribution to achieving the national goal of technological leadership.

    “In order for VOIR to continue to be a platform for exchanging experience, generating new ideas and supporting inventors, it is necessary to build systemic work in all regions of the country. But the creation of new regional organizations is only the first step. It is necessary to cover all regions and establish close interaction between them so that the best solutions can be scaled up and used everywhere. It is also important to integrate VOIR events into the educational programs of schools, colleges and universities,” emphasized Dmitry Chernyshenko, Chairman of the VOIR Board of Trustees.

    In addition, it is necessary to create a mentoring system where experienced inventors and engineers can pass on their knowledge and skills to the younger generation. This will help maintain continuity and create conditions for the formation of new professional communities within the VOIR structure.

    Chairman of the Central Council of VOIR, Deputy Chairman of the State Duma Committee on Science and Higher Education Vladimir Kononov spoke about the results of the society’s work, projects being implemented and plans for the coming years.

    Today, VOIR is represented in 77 regions, and over 100 thousand inventors and innovators are members of the organization. The VOIR festival “Science and Inventions for Life” is held annually. Over two years, its events were held in 35 regions, with over 650 thousand people taking part. In 2025, the focus will be on thematic events dedicated to the Year of the Defender of the Fatherland and the 80th anniversary of Victory, as well as on expanding international cooperation with friendly countries. The All-Russian competition “Inventor of the Year” is held annually. Together with Rospatent, VOIR holds the competition “Capital of Invention”: in 2025, this status was awarded to the Novgorod Region.

    The meeting also discussed the objectives of VOIR for 2025. These include the popularization of technical creativity and inventive activity and the involvement of young people in it, in particular through promoting the development of student design bureaus at universities and cooperation with schools. In addition, the objectives include the creation of a center for the development of invention methods and the implementation of educational programs for inventors, the development and implementation of new digital services, the launch of a comprehensive program to support inventors, and the rating of the activities of regional organizations.

    “Ultimately, all of our proposals are aimed at increasing the number of citizens involved in the inventive and rationalization movement, and therefore increasing the number of new developments and technologies that will be implemented at our enterprises and ensure the technological leadership of our country,” said Vladimir Kononov.

    Minister of Education Sergei Kravtsov noted that the Ministry of Education is open to cooperation with the All-Russian Society of Inventors and Innovators in implementing joint projects for the younger generation.

    “As part of our cooperation, we are ready to offer, firstly, to hold a class called “Conversations about the Important”, where schoolchildren will be told about the All-Russian Society of Inventors and Innovators and the opportunities it creates for young people. Secondly, we can include the topic of inventions in the career guidance course “Russia – My Horizons”. In addition, we are holding new Olympiads for schoolchildren – on unmanned aerial systems and robotics. And we can make the society our partner in holding them. These are relevant areas that are in great demand today,” added Sergey Kravtsov.

    The head of the Ministry of Education emphasized that the participation of society in the activities of the centers “Kvantorium”, “Tochka Rosta” and “IT-Kube” could become an opportunity for cooperation. Sergey Kravtsov also proposed considering cooperation in the area of secondary vocational education, in the system of which there are a large number of technical specialties.

    Deputy Minister of Science and Higher Education Konstantin Mogilevsky outlined possible areas of cooperation between VOIR and universities, including the work of student design bureaus, youth laboratories, student scientific societies, and student technological entrepreneurship.

    “All schools in Mordovia have “Growth Points”, quantum centers are open – the technical base is huge, our talented youth have something to work with. I am sure that the public and state status of VOIR will help us solve the most serious problems of technological sovereignty,” said the head of the Republic of Mordovia, Artem Zdunov.

    The meeting of the board of trustees was also attended by representatives of the Presidential Administration of Russia for Public Projects, the Ministry of Industry and Trade, the Ministry of Economic Development, the Ministry of Finance, the State Duma, Rospatent, the Russian Academy of Sciences, the Russian Presidential Academy of National Economy and Public Administration, other government agencies, companies, educational institutions, and regions.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

    January 29, 2025
  • MIL-OSI: Provident Financial Holdings Reports Second Quarter of Fiscal Year 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Net Income of $872,000 in the December 2024 Quarter, Down 54% from the Sequential Quarter and 59% from the Comparable Quarter Last Year

    Net Interest Margin of 2.91% in the December 2024 Quarter, Up Seven Basis Points from the Sequential Quarter and 13 Basis Points from the Comparable Quarter Last Year

    Loans Held for Investment of $1.05 Billion at December 31, 2024, Unchanged from June 30, 2024

    Total Deposits of $867.5 Million at December 31, 2024, Down 2% from June 30, 2024

    Non-Performing Assets to Total Assets Ratio of 0.20% at December 31, 2024, Unchanged from June 30, 2024

    Non-Interest Expenses Remain Well Controlled

    RIVERSIDE, Calif., Jan. 28, 2025 (GLOBE NEWSWIRE) — Provident Financial Holdings, Inc. (“Company”), NASDAQ GS: PROV, the holding company for Provident Savings Bank, F.S.B. (“Bank”), today announced earnings for the second quarter of the fiscal year ending June 30, 2025.

    The Company reported net income of $872,000, or $0.13 per diluted share (on 6.79 million average diluted shares outstanding), for the quarter ended December 31, 2024, down 59 percent from net income of $2.14 million, or $0.31 per diluted share (on 6.98 million average diluted shares outstanding), in the comparable period a year ago. The decrease in earnings was due primarily to a $586,000 provision for credit losses, in contrast to a $720,000 recovery of credit losses in the comparable period a year ago, and a $450,000 increase in non-interest expenses (primarily attributable to higher salaries and employee benefits and other operating expenses).

    “I am pleased with the progress we have made in our fundamental operating results. Net interest income increased by approximately two percent from the prior sequential quarter and was largely the result of an expanding net interest margin. Growth in the loans held for investment portfolio, which increased from the September 30, 2024 balance, also contributed to this improvement. Credit quality remains strong; however, the increase in mortgage interest rates has resulted in a longer estimated average life of our loan portfolio and a corresponding provision for credit losses. Additionally, we remain active in our stock repurchase plan with our Board of Directors recently approving a new plan, demonstrating our commitment to sound capital management practices,” stated Donavon P. Ternes, President and Chief Executive Officer of the Company. “As I described last quarter, our business model performs better in a flat or upward-sloping yield curve environment. Now that the Federal Open Market Committee has implemented looser monetary policy and the inverted yield curve has reversed course, we are transitioning back to less restrictive operating strategies,” concluded Ternes.

    Return on average assets was 0.28 percent for the second quarter of fiscal 2025, compared to 0.61 percent in the first quarter of fiscal 2025 and 0.66 percent for the second quarter of fiscal 2024. Return on average stockholders’ equity for the second quarter of fiscal 2025 was 2.66 percent, compared to 5.78 percent for the first quarter of fiscal 2025 and 6.56 percent for the second quarter of fiscal 2024.

    On a sequential quarter basis, the $872,000 net income for the second quarter of fiscal 2025 reflects a 54 percent decrease from $1.90 million in the first quarter of fiscal 2025. The decrease was primarily attributable to a $586,000 provision for credit losses, in contrast to a $697,000 recovery of credit losses, and a $271,000 increase in non-interest expense (primarily due to an increase in salaries and employee benefits), partly offset by a $143,000 increase in net interest income (primarily due to a higher net interest margin). The increase in salaries and employee benefits expense was primarily attributable to higher employee compensation. Diluted earnings per share for the second quarter of fiscal 2025 were $0.13 per share, down 54 percent from $0.28 per share in the first quarter of fiscal 2025.

    For the six months ended December 31, 2024, net income decreased $1.13 million, or 29 percent, to $2.77 million from $3.90 million in the comparable period in fiscal 2024. Diluted earnings per share for the six months ended December 31, 2024 decreased 27 percent to $0.41 per share (on 6.83 million average diluted shares outstanding) from $0.56 per share (on 7.00 million average diluted shares outstanding) for the comparable six-month period last year. The decrease in earnings was primarily attributable to a $1.12 million increase in non-interest expense (primarily due to an increase in salaries and employee benefits and other operating expenses) and a $538,000 decrease in net interest income, partly offset by a $118,000 increase in non-interest income.

    In the second quarter of fiscal 2025, net interest income decreased slightly to $8.76 million from $8.77 million for the same quarter last year. The slight decrease in net interest income was due to a lower average balance of interest-earning assets, partly offset by a higher net interest margin. The average balance of interest-earning assets decreased five percent to $1.20 billion in the second quarter of fiscal 2025 from $1.26 billion in the same quarter last year, primarily due to decreases in the average balance of loans receivable, investment securities and interest-earning deposits. The net interest margin for the second quarter of fiscal 2025 increased 13 basis points to 2.91 percent from 2.78 percent in the same quarter last year. The increase in net interest margin was due to increased yields on interest-earning assets outpacing increased funding costs. The average yield on interest-earning assets increased 33 basis points to 4.66 percent in the second quarter of fiscal 2025 from 4.33 percent in the same quarter last year. In contrast, our average funding costs increased by 23 basis points to 1.92 percent in the second quarter of fiscal 2025 from 1.69 percent in the same quarter last year.

    Interest income on loans receivable increased $541,000, or four percent, to $13.05 million in the second quarter of fiscal 2025 from $12.51 million in the same quarter of fiscal 2024. The increase was due to a higher average loan yield, partly offset by a lower average loan balance. The average yield on loans receivable increased 33 basis points to 4.99 percent in the second quarter of fiscal 2025 from 4.66 percent in the same quarter last year. Adjustable-rate loans of approximately $100.7 million repriced upward in the second quarter of fiscal 2025 by approximately 15 basis points from a weighted average rate of 7.83 percent to 7.98 percent. The average balance of loans receivable decreased $27.8 million, or three percent, to $1.05 billion in the second quarter of fiscal 2025 from $1.07 billion in the same quarter last year. Total loans originated for investment in the second quarter of fiscal 2025 were $36.4 million, up 80 percent from $20.2 million in the same quarter last year, while loan principal payments received in the second quarter of fiscal 2025 were $34.3 million, up 93 percent from $17.8 million in the same quarter last year.

    Interest income from investment securities decreased $53,000, or 10 percent, to $471,000 in the second quarter of fiscal 2025 from $524,000 for the same quarter of fiscal 2024. This decrease was attributable to a lower average balance, partly offset by a higher average yield. The average balance of investment securities decreased $23.4 million, or 16 percent, to $123.8 million in the second quarter of fiscal 2025 from $147.2 million in the same quarter last year. The decrease in the average balance was due to scheduled principal payments and prepayments of investment securities. The average yield on investment securities increased 10 basis points to 1.52 percent in the second quarter of fiscal 2025 from 1.42 percent for the same quarter last year. The increase in the average yield was primarily attributable to a lower premium amortization during the current quarter in comparison to the same quarter last year ($97,000 vs. $137,000) due to lower total principal repayments ($5.3 million vs. $5.9 million) and, to a lesser extent, the upward repricing of adjustable-rate mortgage-backed securities.

    In the second quarter of fiscal 2025, the Bank received $213,000 in cash dividends from the Federal Home Loan Bank (“FHLB”) – San Francisco stock and other equity investments, up eight percent from $197,000 in the same quarter last year, resulting in an average yield of 8.38 percent in the second quarter of fiscal 2025 compared to 8.29 percent in the same quarter last year. The average balance of FHLB – San Francisco stock and other equity investments in the second quarter of fiscal 2025 was $10.2 million, up from $9.5 million in the same quarter of fiscal 2024.

    Interest income from interest-earning deposits, primarily cash deposited at the Federal Reserve Bank (“FRB”) of San Francisco, was $287,000 in the second quarter of fiscal 2025, down $148,000 or 34 percent from $435,000 in the same quarter of fiscal 2024. The decrease was due to a lower average balance and, to a lesser extent, a lower average yield. The average balance of the Company’s interest-earning deposits decreased $7.8 million, or 25 percent, to $23.7 million in the second quarter of fiscal 2025 from $31.5 million in the same quarter last year. The average yield earned on interest-earning deposits in the second quarter of fiscal 2025 was 4.74 percent, down 67 basis points from 5.41 percent in the same quarter last year. The decrease in the average yield was due to a lower average interest rate on the FRB’s reserve balances resulting from decreases in the targeted federal funds rate during the comparable periods.

    Interest expense on deposits for the second quarter of fiscal 2025 was $2.67 million, an increase of $401,000 or 18 percent from $2.27 million for the same period last year. The increase was attributable to higher rates paid on deposits, partly offset by a lower average balance. The average cost of deposits was 1.23 percent in the second quarter of fiscal 2025, up 24 basis points from 0.99 percent in the same quarter last year. The increase in the average cost of deposits was primarily attributable to an increase in higher cost time deposits, particularly brokered certificates of deposit. The average balance of deposits decreased $51.5 million, or six percent, to $863.1 million in the second quarter of fiscal 2025 from $914.6 million in the same quarter last year.

    Transaction account balances, or “core deposits,” decreased $21.6 million, or four percent, to $592.9 million at December 31, 2024 from $614.5 million at June 30, 2024, while time deposits increased slightly to $274.6 million at December 31, 2024 from $273.9 million at June 30, 2024. As of December 31, 2024, brokered certificates of deposit totaled $143.8 million, up $12.0 million or nine percent from $131.8 million at June 30, 2024. The weighted average cost of brokered certificates of deposit was 4.56 percent and 5.18 percent (including broker fees) at December 31, 2024 and June 30, 2024, respectively.

    Interest expense on borrowings, consisting of FHLB advances, for the second quarter of fiscal 2025 decreased $30,000, or one percent, to $2.59 million from $2.62 million for the same period last year. The decrease in interest expense on borrowings was primarily the result of a lower average balance, partly offset by a higher average cost. The average balance of borrowings decreased $3.8 million, or two percent, to $226.7 million in the second quarter of fiscal 2025 from $230.5 million in the same quarter last year. The average cost of borrowings increased two basis points to 4.53 percent in the second quarter of fiscal 2025 from 4.51 percent in the same quarter last year.

    At December 31, 2024, the Bank had approximately $246.2 million of remaining borrowing capacity at the FHLB. Additionally, the Bank has an unused secured borrowing facility of approximately $198.5 million with the FRB of San Francisco and an unused unsecured federal funds borrowing facility of $50.0 million with its correspondent bank. The total available borrowing capacity across all sources totaled approximately $494.7 million at December 31, 2024.

    The Bank continues to work with both the FHLB and FRB of San Francisco to ensure that its borrowing capacity is continuously reviewed and updated in order to be accessed seamlessly should the need arise.

    During the second quarter of fiscal 2025, the Company recorded a provision for credit losses of $586,000 (which included a $41,000 recovery of unfunded commitment reserves), in contrast to a $720,000 recovery of credit losses recorded during the same period last year and a $697,000 recovery of credit losses recorded in the first quarter of fiscal 2025 (sequential quarter). The provision for credit losses recorded in the second quarter of fiscal 2025 was primarily attributable to a longer estimated life of the loan portfolio resulting from lower loan prepayment estimates (attributable to higher interest rates) and a slight increase in the outstanding balance of loans held for investment at December 31, 2024 from September 30, 2024.

    Non-performing assets, comprised solely of non-accrual loans with underlying collateral located in California, decreased $66,000 or three percent to $2.5 million, which represented 0.20 percent of total assets at December 31, 2024, compared to $2.6 million, which represented 0.20 percent of total assets at June 30, 2024. At both December 31, 2024 and June 30, 2024, non-performing loans were comprised of 10 single-family loans. At both December 31, 2024 and June 30, 2024, there was no real estate owned and no loans past due by 90 days or more that were accruing interest. For the quarters ended December 31, 2024 and 2023, there were no loan charge-offs.

    The recent wildfires in Los Angeles, California did not have a material impact on the Company’s operations or the Bank’s customers. The Bank’s branches and facilities remained operational throughout the wildfire events, and there were no significant disruptions to customer services or business activities observed. Additionally, the Bank has not identified any significant credit exposure or financial impact attributable to the wildfires at this time.

    Classified assets were $5.8 million at December 31, 2024, consisting of $631,000 of loans in the special mention category and $5.1 million of loans in the substandard category. Classified assets at June 30, 2024 were $5.8 million, consisting of $1.1 million of loans in the special mention category and $4.7 million of loans in the substandard category.

    The allowance for credit losses on loans held for investment was $7.0 million, or 0.66 percent of gross loans held for investment, at December 31, 2024, down from $7.1 million, or 0.67 percent of gross loans held for investment, at June 30, 2024. The decrease in the allowance for credit losses was due primarily to a shorter estimated life of the loan portfolio, partly offset by a slightly higher balance of loans held for investment. Management believes that, based on currently available information, the allowance for credit losses is sufficient to absorb expected losses inherent in loans held for investment at December 31, 2024.

    Non-interest income decreased by $30,000, or three percent, to $845,000 in the second quarter of fiscal 2025 from $875,000 in the same period last year, due primarily to decreases in loan servicing and other fess, deposit fees and card and processing fees, partly offset by an increase in other fees. On a sequential quarter basis, non-interest income decreased $54,000, or six percent, primarily due to decreases in loan servicing and other fess, deposit fees and card and processing fees, partly offset by an increase in other fees.

    Non-interest expense increased $450,000, or six percent, to $7.79 million in the second quarter of fiscal 2025 from $7.34 million for the same quarter last year, primarily due to higher salaries and employee benefits expenses and other operating expenses. The higher salaries and employee benefits expenses was primarily due to higher compensation expenses, retirement plan benefit expenses and executive search agency costs, partly offset by a lower accrual adjustment for the supplemental executive retirement plans expense. On a sequential quarter basis, non-interest expense increased $271,000, or four percent as compared to $7.52 million in the first quarter of fiscal 2025, due primarily to higher salaries and employee benefits expenses. The higher salaries and employee benefits expenses was primarily due to higher compensation expenses, a higher accrual adjustment for the supplemental executive retirement plans expense and executive search agency costs.

    The Company’s efficiency ratio, defined as non-interest expense divided by the sum of net interest income and non-interest income, in the second quarter of fiscal 2025 was 81.15 percent, an increase from 76.11 percent in the same quarter last year and 79.06 percent in the first quarter of fiscal 2025 (sequential quarter). The increase in the efficiency ratio during the current quarter in comparison to the comparable quarter last year was due to higher non-interest expense and, to a lesser extent, a lower net interest income and non-interest income.

    The Company’s provision for income taxes was $352,000 for the second quarter of fiscal 2025, down 60 percent from $884,000 in the same quarter last year and down 55 percent from $789,000 for the first quarter of fiscal 2025 (sequential quarter). The decrease during the current quarter compared to both the sequential quarter and same quarter last year was due to a decrease in pre-tax income. The effective tax rate in the second quarter of fiscal 2025 was 28.8 percent as compared to 29.2 percent in the same quarter last year and 29.3 percent for the first quarter of fiscal 2025 (sequential quarter).

    The Company repurchased 63,556 shares of its common stock pursuant to its current stock repurchase program at an average cost of $16.04 per share during the quarter ended December 31, 2024. As of December 31, 2024, a total of 31,919 shares remained available for future purchase under the Company’s current repurchase program, which expires on September 26, 2025.

    The Bank currently operates 13 retail/business banking offices in Riverside County and San Bernardino County (Inland Empire).

    The Company will host a conference call for institutional investors and bank analysts on Tuesday, January 28, 2025 at 9:00 a.m. (Pacific) to discuss its financial results. The conference call can be accessed by dialing 1-800-715-9871 and referencing Conference ID number 7361828. An audio replay of the conference call will be available through Tuesday, February 4, 2025 by dialing 1-800-770-2030 and referencing Conference ID number 7361828.

    For more financial information about the Company please visit the website at www.myprovident.com and click on the “Investor Relations” section.

    Safe-Harbor Statement

    This press release contains statements that the Company believes are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to the Company’s financial condition, liquidity, results of operations, plans, objectives, future performance or business. You should not place undue reliance on these statements as they are subject to various risks and uncertainties. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Company may make. 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.

    There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors which could cause actual results to differ materially from the results anticipated or implied by our forward-looking statements include, but are not limited to: adverse economic conditions in our local market areas or other markets where we have lending relationships; effects of employment levels, labor shortages, inflation, a recession or slowed economic growth; changes in the interest rate environment, including the increases and decreases in the Board of Governors of the Federal Reserve Board (the “Federal Reserve”) benchmark rate and the duration of such levels, which could adversely affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and the Federal Reserve monetary policy; the effects of any Federal government shutdown; credit risks of lending activities, including loan delinquencies, write-offs, changes in our ACL, and provision for credit losses; increased competitive pressures, including repricing and competitors’ pricing initiatives, and their impact on our market position, loan, and deposit products; quality and composition of our securities portfolio and the impact of adverse changes in the securities markets; fluctuations in deposits; secondary market conditions for loans and our ability to sell loans in the secondary market; liquidity issues, including our ability to borrow funds or raise additional capital, if necessary; expectations regarding key growth initiatives and strategic priorities; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; results of examinations of us by regulatory authorities, which may the possibility that any such regulatory authority may, among other things, institute a formal or informal enforcement action against us or our bank subsidiary which could require us to increase our ACL, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits or impose additional requirements or restrictions on us, any of which could adversely affect our liquidity and earnings; legislative and regulatory changes, including changes in banking, securities and tax law, in regulatory policies and principles, or the interpretation of regulatory capital or other rules; use of estimates in determining the fair value of assets, which may prove incorrect; disruptions or security breaches, or other adverse events, failures or interruptions in or attacks on our information technology systems or on our third-party vendors; the potential imposition of new tariffs or changes to existing trade policies that could affect economic activity or specific industry sectors; staffing fluctuations in response to product demand or corporate implementation strategies; our ability to pay dividends on our common stock; environmental, social and governance goals; effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events; and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other reports filed with and furnished to the Securities and Exchange Commission (“SEC”), which are available on our website at www.myprovident.com and on the SEC’s website at www.sec.gov.

    We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements whether as a result of new information, future events or otherwise. 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 our operating and stock price performance.

             
    Contacts:   Donavon P. Ternes   TamHao B. Nguyen
        President and   Senior Vice President and
        Chief Executive Officer   Chief Financial Officer
             
     
    PROVIDENT FINANCIAL HOLDINGS, INC.
    Condensed Consolidated Statements of Financial Condition
    (Unaudited –In Thousands, Except Share and Per Share Information)
     
         December 31,    September 30,    June 30,   March 31,   December 31,
          2024     2024   2024   2024   2023
    Assets                              
    Cash and cash equivalents   $ 45,539     $ 48,193     $ 51,376     $ 51,731     $ 46,878  
    Investment securities – held to maturity, at cost with no allowance for credit losses     118,888       124,268       130,051       135,971       141,692  
    Investment securities – available for sale, at fair value     1,750       1,809       1,849       1,935       1,996  
    Loans held for investment, net of allowance for credit losses of $6,956, $6,329, $7,065, $7,108 and $7,000, respectively; includes $1,016, $1,082, $1,047, $1,054 and $1,092 of loans held at fair value, respectively     1,053,603       1,048,633       1,052,979       1,065,761       1,075,765  
    Accrued interest receivable     4,167       4,287       4,287       4,249       4,076  
    FHLB – San Francisco stock and other equity investments, includes $650, $565, $540, $0 and $0 of other equity investments at fair value, respectively     10,218       10,133       10,108       9,505       9,505  
    Premises and equipment, net     9,474       9,615       9,313       9,637       9,598  
    Prepaid expenses and other assets     11,327       10,442       12,237       11,258       11,583  
    Total assets   $ 1,254,966     $ 1,257,380     $ 1,272,200     $ 1,290,047     $ 1,301,093  
                                   
    Liabilities and Stockholders’ Equity                              
    Liabilities:                              
    Noninterest-bearing deposits   $ 85,399     $ 86,458     $ 95,627     $ 91,708     $ 94,030  
    Interest-bearing deposits     782,116       777,406       792,721       816,414       817,950  
    Total deposits     867,515       863,864       888,348       908,122       911,980  
                                   
    Borrowings     245,500       249,500       238,500       235,000       242,500  
    Accounts payable, accrued interest and other liabilities     13,321       14,410       15,411       17,419       16,952  
    Total liabilities     1,126,336       1,127,774       1,142,259       1,160,541       1,171,432  
                                   
    Stockholders’ equity:                              
    Preferred stock, $.01 par value (2,000,000 shares authorized; none issued and outstanding)     —       —       —       —       —  
    Common stock, $.01 par value; (40,000,000 shares authorized; 18,229,615, 18,229,615, 18,229,615, 18,229,615 and 18,229,615 shares issued respectively; 6,705,691, 6,769,247, 6,847,821, 6,896,297 and 6,946,348 shares outstanding, respectively)     183       183       183       183       183  
    Additional paid-in capital     98,747       98,711       98,532       99,591       99,565  
    Retained earnings     210,779       210,853       209,914       208,923       208,396  
    Treasury stock at cost (11,523,924, 11,460,368, 11,381,794, 11,333,318, and 11,283,267 shares, respectively)     (181,094 )     (180,155 )     (178,685 )     (179,183 )     (178,476 )
    Accumulated other comprehensive income (loss), net of tax     15       14       (3 )     (8 )     (7 )
    Total stockholders’ equity     128,630       129,606       129,941       129,506       129,661  
    Total liabilities and stockholders’ equity   $ 1,254,966     $ 1,257,380     $ 1,272,200     $ 1,290,047     $ 1,301,093  
     
    PROVIDENT FINANCIAL HOLDINGS, INC.
    Condensed Consolidated Statements of Operations
    (Unaudited – In Thousands, Except Per Share Information)
                               
        For the Quarter Ended   Six Months Ended
           December 31,   December 31,
        2024   2023   2024 2023
    Interest income:                          
    Loans receivable, net   $ 13,050     $ 12,509     $ 26,073     $ 24,685  
    Investment securities     471       524       953       1,048  
    FHLB – San Francisco stock and other equity investments     213       197       423       376  
    Interest-earning deposits     287       435       647       898  
    Total interest income     14,021       13,665       28,096       27,007  
                               
    Interest expense:                          
    Checking and money market deposits     51       72       104       129  
    Savings deposits     117       73       229       111  
    Time deposits     2,506       2,128       5,165       3,918  
    Borrowings     2,588       2,618       5,223       4,936  
    Total interest expense     5,262       4,891       10,721       9,094  
                               
    Net interest income     8,759       8,774       17,375       17,913  
    Provision for (recovery of) credit losses     586       (720 )     (111 )     (175 )
    Net interest income, after provision for (recovery of) credit losses     8,173       9,494       17,486       18,088  
                               
    Non-interest income:                          
    Loan servicing and other fees     60       124       164       103  
    Deposit account fees     282       299       580       587  
    Card and processing fees     300       333       620       686  
    Other     203       119       380       250  
    Total non-interest income     845       875       1,744       1,626  
                               
    Non-interest expense:                          
    Salaries and employee benefits     4,826       4,569       9,459       8,683  
    Premises and occupancy     917       903       1,868       1,806  
    Equipment     379       346       722       633  
    Professional     412       410       838       882  
    Sales and marketing     187       181       360       349  
    Deposit insurance premiums and regulatory assessments     190       209       373       406  
    Other     883       726       1,697       1,441  
    Total non-interest expense     7,794       7,344       15,317       14,200  
    Income before income taxes     1,224       3,025       3,913       5,514  
    Provision for income taxes     352       884       1,141       1,611  
    Net income   $ 872     $ 2,141     $ 2,772     $ 3,903  
                               
    Basic earnings per share   $ 0.13     $ 0.31     $ 0.41     $ 0.56  
    Diluted earnings per share   $ 0.13     $ 0.31     $ 0.41     $ 0.56  
    Cash dividends per share   $ 0.14     $ 0.14     $ 0.28     $ 0.28  
     
    PROVIDENT FINANCIAL HOLDINGS, INC.
    Condensed Consolidated Statements of Operations – Sequential Quarters
    (Unaudited – In Thousands, Except Per Share Information)
                                       
        For the Quarter Ended
        December 31,   September 30,   June 30,   March 31,   December 31,
        2024   2024   2024   2024   2023
    Interest income:                                  
    Loans receivable, net   $ 13,050     $ 13,023     $ 12,826     $ 12,683     $ 12,509  
    Investment securities     471       482       504       517       524  
    FHLB – San Francisco stock and other equity investments     213       210       207       210       197  
    Interest-earning deposits     287       360       379       397       435  
    Total interest income     14,021       14,075       13,916       13,807       13,665  
                                       
    Interest expense:                                  
    Checking and money market deposits     51       53       71       90       72  
    Savings deposits     117       112       105       97       73  
    Time deposits     2,506       2,659       2,657       2,488       2,128  
    Borrowings     2,588       2,635       2,632       2,573       2,618  
    Total interest expense     5,262       5,459       5,465       5,248       4,891  
                                       
    Net interest income     8,759       8,616       8,451       8,559       8,774  
    Provision for (recovery of) credit losses     586       (697 )     (12 )     124       (720 )
    Net interest income, after provision for (recovery of) credit losses     8,173       9,313       8,463       8,435       9,494  
                                       
    Non-interest income:                                  
    Loan servicing and other fees     60       104       142       92       124  
    Deposit account fees     282       298       278       289       299  
    Card and processing fees     300       320       381       317       333  
    Other     203       177       666       150       119  
    Total non-interest income     845       899       1,467       848       875  
                                       
    Non-interest expense:                                  
    Salaries and employee benefits     4,826       4,633       4,419       4,540       4,569  
    Premises and occupancy     917       951       945       835       903  
    Equipment     379       343       347       329       346  
    Professional     412       426       327       321       410  
    Sales and marketing     187       173       193       167       181  
    Deposit insurance premiums and regulatory assessments     190       183       184       190       209  
    Other     883       814       757       786       726  
    Total non-interest expense     7,794       7,523       7,172       7,168       7,344  
    Income before income taxes     1,224       2,689       2,758       2,115       3,025  
    Provision for income taxes     352       789       805       620       884  
    Net income   $ 872     $ 1,900     $ 1,953     $ 1,495     $ 2,141  
                                       
    Basic earnings per share   $ 0.13     $ 0.28     $ 0.28     $ 0.22     $ 0.31  
    Diluted earnings per share   $ 0.13     $ 0.28     $ 0.28     $ 0.22     $ 0.31  
    Cash dividends per share   $ 0.14     $ 0.14     $ 0.14     $ 0.14     $ 0.14  
                                       
     
    PROVIDENT FINANCIAL HOLDINGS, INC.
    Financial Highlights
    (Unaudited – Dollars in Thousands, Except Share and Per Share Information)
                                     
        As of and For the  
        Quarter Ended     Six Months Ended  
        December 31,     December 31,  
           2024       2023        2024       2023  
    SELECTED FINANCIAL RATIOS:                                
    Return on average assets     0.28 %     0.66 %     0.45 %     0.60 %
    Return on average stockholders’ equity     2.66 %     6.56 %     4.22 %     5.98 %
    Stockholders’ equity to total assets     10.25 %     9.97 %     10.25 %     9.97 %
    Net interest spread     2.74 %     2.64 %     2.70 %     2.70 %
    Net interest margin     2.91 %     2.78 %     2.87 %     2.83 %
    Efficiency ratio     81.15 %     76.11 %     80.11 %     72.68 %
    Average interest-earning assets to average interest-bearing liabilities     110.52 %     110.27 %     110.43 %     110.22 %
                                     
    SELECTED FINANCIAL DATA:                                
    Basic earnings per share   $ 0.13     $ 0.31     $ 0.41     $ 0.56  
    Diluted earnings per share   $ 0.13     $ 0.31     $ 0.41     $ 0.56  
    Book value per share   $ 19.18     $ 18.67     $ 19.18     $ 18.67  
    Shares used for basic EPS computation     6,744,653       6,968,460       6,788,889       6,992,565  
    Shares used for diluted EPS computation     6,792,759       6,980,856       6,827,921       7,004,042  
    Total shares issued and outstanding     6,705,691       6,946,348       6,705,691       6,946,348  
                                     
    LOANS ORIGINATED FOR INVESTMENT:                                
    Mortgage loans:                                
    Single-family   $ 29,583     $ 8,660     $ 52,032     $ 21,112  
    Multi-family     6,495       6,608       11,685       11,721  
    Commercial real estate     365       4,936       1,625       5,875  
    Commercial business loans     —       —       50       —  
    Total loans originated for investment   $ 36,443     $ 20,204     $ 65,392     $ 38,708  
     
    PROVIDENT FINANCIAL HOLDINGS, INC.
    Financial Highlights
    (Unaudited – Dollars in Thousands, Except Share and Per Share Information)
                                             
        As of and For the  
        Quarter     Quarter     Quarter     Quarter     Quarter  
        Ended     Ended     Ended     Ended     Ended  
           12/31/24        09/30/24        06/30/24        03/31/24        12/31/23  
    SELECTED FINANCIAL RATIOS:                                        
    Return on average assets     0.28 %     0.61 %     0.62 %     0.47 %     0.66 %
    Return on average stockholders’ equity     2.66 %     5.78 %     5.96 %     4.57 %     6.56 %
    Stockholders’ equity to total assets     10.25 %     10.31 %     10.21 %     10.04 %     9.97 %
    Net interest spread     2.74 %     2.66 %     2.54 %     2.55 %     2.64 %
    Net interest margin     2.91 %     2.84 %     2.74 %     2.74 %     2.78 %
    Efficiency ratio     81.15 %     79.06 %     72.31 %     76.20 %     76.11 %
    Average interest-earning assets to average interest-bearing liabilities     110.52 %     110.34 %     110.40 %     110.28 %     110.27 %
                                             
    SELECTED FINANCIAL DATA:                                        
    Basic earnings per share   $ 0.13     $ 0.28     $ 0.28     $ 0.22     $ 0.31  
    Diluted earnings per share   $ 0.13     $ 0.28     $ 0.28     $ 0.22     $ 0.31  
    Book value per share   $ 19.18     $ 19.15     $ 18.98     $ 18.78     $ 18.67  
    Average shares used for basic EPS     6,744,653       6,833,125       6,867,521       6,919,397       6,968,460  
    Average shares used for diluted EPS     6,792,759       6,863,083       6,893,813       6,935,053       6,980,856  
    Total shares issued and outstanding     6,705,691       6,769,247       6,847,821       6,896,297       6,946,348  
                                             
    LOANS ORIGINATED FOR INVESTMENT:                                        
    Mortgage loans:                                        
    Single-family   $ 29,583     $ 22,449     $ 10,862     $ 8,946     $ 8,660  
    Multi-family     6,495       5,190       4,526       5,865       6,608  
    Commercial real estate     365       1,260       1,710       2,172       4,936  
    Construction     —       —       1,480       —       —  
    Commercial business loans     —       50       —       1,250       —  
    Total loans originated for investment   $ 36,443     $ 28,949     $ 18,578     $ 18,233     $ 20,204  
     
    PROVIDENT FINANCIAL HOLDINGS, INC.
    Financial Highlights
    (Unaudited – Dollars in Thousands)
                                             
           As of        As of        As of        As of        As of  
        12/31/24     09/30/24     06/30/24     03/31/24     12/31/23  
    ASSET QUALITY RATIOS AND DELINQUENT LOANS:                                        
    Recourse reserve for loans sold   $ 23     $ 23     $ 26     $ 31     $ 31  
    Allowance for credit losses on loans held for investment   $ 6,956     $ 6,329     $ 7,065     $ 7,108     $ 7,000  
    Non-performing loans to loans held for investment, net     0.24 %     0.20 %     0.25 %     0.21 %     0.16 %
    Non-performing assets to total assets     0.20 %     0.17 %     0.20 %     0.17 %     0.13 %
    Allowance for credit losses on loans to gross loans held for investment     0.66 %     0.61 %     0.67 %     0.67 %     0.65 %
    Net loan charge-offs (recoveries) to average loans receivable (annualized)     — %     — %     — %     — %     — %
    Non-performing loans   $ 2,530     $ 2,106     $ 2,596     $ 2,246     $ 1,750  
    Loans 30 to 89 days delinquent   $ 3     $ 2     $ 1     $ 388     $ 340  
                                       
           Quarter      Quarter      Quarter      Quarter      Quarter
        Ended   Ended   Ended   Ended   Ended
        12/31/24   09/30/24   06/30/24   03/31/24   12/31/23
    (Recovery) recourse provision for loans sold   $ —     $ (3 )   $ (5 )   $ —     $ (2 )
    Provision for (recovery of) credit losses   $ 586     $ (697 )   $ (12 )   $ 124     $ (720 )
    Net loan charge-offs (recoveries)   $ —     $ —     $ —     $ —     $ —  
                                           
           As of          As of          As of          As of          As of  
        12/31/2024       09/30/2024       06/30/2024       03/31/2024       12/31/2023  
    REGULATORY CAPITAL RATIOS (BANK):                                           
    Tier 1 leverage ratio   9.81 %       9.63 %       10.02 %       9.70 %       9.48 %
    Common equity tier 1 capital ratio   18.60 %       18.36 %       19.29 %       18.77 %       18.20 %
    Tier 1 risk-based capital ratio   18.60 %       18.36 %       19.29 %       18.77 %       18.20 %
    Total risk-based capital ratio   19.67 %       19.35 %       20.38 %       19.85 %       19.24 %
                                     
        As of December 31,  
           2024        2023  
           Balance        Rate(1)        Balance        Rate(1)  
    INVESTMENT SECURITIES:                                
    Held to maturity (at cost):                                
    U.S. SBA securities   $ 385       5.35 %   $ 630       5.85 %
    U.S. government sponsored enterprise MBS     114,817       1.59       137,205       1.50  
    U.S. government sponsored enterprise CMO     3,686       2.14       3,857       2.17  
    Total investment securities held to maturity   $ 118,888       1.62 %   $ 141,692       1.54 %
                                     
    Available for sale (at fair value):                                
    U.S. government agency MBS   $ 1,152       4.46 %   $ 1,314       3.47 %
    U.S. government sponsored enterprise MBS     518       6.90       584       5.61  
    Private issue CMO     80       6.09       98       4.67  
    Total investment securities available for sale   $ 1,750       5.26 %   $ 1,996       4.16 %
    Total investment securities   $ 120,638       1.67 %   $ 143,688       1.57 %

         (1)  Weighted-average yield earned on all instruments included in the balance of the respective line item.

     
    PROVIDENT FINANCIAL HOLDINGS, INC.
    Financial Highlights
    (Unaudited – Dollars in Thousands)
                                 
        As of December 31,  
           2024        2023  
           Balance        Rate(1)        Balance        Rate(1)  
    LOANS HELD FOR INVESTMENT:                            
    Mortgage loans:                            
    Single-family (1 to 4 units)   $ 533,140       4.60 %   $ 521,944       4.32 %
    Multi-family (5 or more units)     433,724       5.48       458,502       5.00  
    Commercial real estate     77,984       6.72       88,640       6.20  
    Construction     1,480       11.00       2,534       8.88  
    Other     90       5.25       102       5.25  
    Commercial business loans     4,371       9.67       1,616       10.50  
    Consumer loans     59       17.75       68       18.50  
    Total loans held for investment     1,050,848       5.15 %     1,073,406       4.79 %
                                 
    Advance payments of escrows     321               106          
    Deferred loan costs, net     9,390               9,253          
    Allowance for credit losses on loans     (6,956 )             (7,000 )        
    Total loans held for investment, net   $ 1,053,603             $ 1,075,765          
    Purchased loans serviced by others included above   $ 1,749       5.72 %   $ 10,239       5.59 %

         (1)  Weighted-average yield earned on all instruments included in the balance of the respective line item.

                                     
        As of December 31,  
           2024        2023  
           Balance        Rate(1)        Balance        Rate(1)  
    DEPOSITS:                                
    Checking accounts – noninterest-bearing   $ 85,399       — %   $ 94,030       — %
    Checking accounts – interest-bearing     251,024       0.04       275,396       0.04  
    Savings accounts     232,917       0.20       256,578       0.14  
    Money market accounts     23,527       0.29       31,637       0.82  
    Time deposits     274,648       3.61       254,339       3.76  
    Total deposits(2)(3)   $ 867,515       1.22 %   $ 911,980       1.13 %
                                     
    Brokered CDs included in time deposits above   $ 143,775       4.56 %   $ 122,700       5.26 %
                                     
    BORROWINGS:                                
    Overnight   $ 15,000       4.66 %   $ —       — %
    Three months or less     40,000       3.98       67,500       4.35  
    Over three to six months     22,500       4.17       32,500       5.00  
    Over six months to one year     59,000       5.05       40,000       5.21  
    Over one year to two years     94,000       4.46       67,500       4.14  
    Over two years to three years     —       —       20,000       4.72  
    Over three years to four years     15,000       4.41       —       —  
    Over four years to five years     —       —       15,000       4.41  
    Over five years     —       —       —       —  
    Total borrowings(4)   $ 245,500       4.51 %   $ 242,500       4.55 %

         (1)  Weighted-average rate paid on all instruments included in the balance of the respective line item.
         (2)  Includes uninsured deposits of approximately $134.7 million and $140.3 million at December 31, 2024 and 2023, respectively.
         (3)  The average balance of deposit accounts was approximately $35 thousand and $34 thousand at December 31, 2024 and 2023, respectively.
         (4)  The Bank had approximately $246.2 million and $266.5 million of remaining borrowing capacity at the FHLB – San Francisco, approximately $198.5 million and $183.0 million of borrowing capacity at the FRB of San Francisco and $50.0 million and $50.0 million of borrowing capacity with its correspondent bank at December 31, 2024 and 2023, respectively.

     
    PROVIDENT FINANCIAL HOLDINGS, INC.
    Financial Highlights
    (Unaudited – Dollars in Thousands)
                                     
        For the Quarter Ended     For the Quarter Ended  
        December 31, 2024     December 31, 2023  
           Balance      Rate(1)        Balance        Rate(1)  
    SELECTED AVERAGE BALANCE SHEETS:                                
                                     
    Loans receivable, net   $ 1,046,797       4.99 %   $ 1,074,592       4.66 %
    Investment securities     123,826       1.52       147,166       1.42  
    FHLB – San Francisco stock and other equity investments     10,172       8.38       9,505       8.29  
    Interest-earning deposits     23,700       4.74       31,473       5.41  
    Total interest-earning assets   $ 1,204,495       4.66 %   $ 1,262,736       4.33 %
    Total assets   $ 1,234,768             $ 1,293,471          
                                     
    Deposits(2)   $ 863,106       1.23 %   $ 914,629       0.99 %
    Borrowings     226,707       4.53       230,546       4.51  
    Total interest-bearing liabilities(2)   $ 1,089,813       1.92 %   $ 1,145,175       1.69 %
    Total stockholders’ equity   $ 131,135             $ 130,614          

         (1)  Weighted-average yield earned or rate paid on all instruments included in the balance of the respective line item.
         (2)  Includes the average balance of noninterest-bearing checking accounts of $86.2 million and $99.4 million during the quarters ended December 31, 2024 and 2023, respectively; and the average balance of uninsured deposits (adjusted lower by collateralized deposits) of $130.2 million and $139.3 million in the quarters ended December 31, 2024 and 2023, respectively.

                                     
        Six Months Ended     Six Months Ended  
           December 31, 2024        December 31, 2023  
           Balance      Rate(1)        Balance        Rate(1)  
    SELECTED AVERAGE BALANCE SHEETS:                                
                                     
    Loans receivable, net   $ 1,047,964       4.98 %   $ 1,073,600       4.60 %
    Investment securities     126,698       1.50       150,439       1.39  
    FHLB – San Francisco stock and other equity investments     10,146       8.34       9,505       7.91  
    Interest-earning deposits     25,015       5.06       32,758       5.36  
    Total interest-earning assets   $ 1,209,823       4.64 %   $ 1,266,302       4.27 %
    Total assets   $ 1,239,950             $ 1,296,811          
                                     
    Deposits(2)   $ 871,844       1.25 %   $ 927,406       0.89 %
    Borrowings     223,723       4.63       221,501       4.42  
    Total interest-bearing liabilities(2)   $ 1,095,567       1.94 %   $ 1,148,907       1.57 %
    Total stockholders’ equity   $ 131,317             $ 130,578          

         (1)  Weighted-average yield earned or rate paid on all instruments included in the balance of the respective line item.
         (2)  Includes the average balance of noninterest-bearing checking accounts of $88.4 million and $102.8 million during the six months ended December 31, 2024 and 2023, respectively; and the average balance of uninsured deposits (adjusted lower by collateralized deposits) of $125.7 million and $139.1 million in the six months ended December 31, 2024 and 2023, respectively.

    ASSET QUALITY:

                                             
           As of      As of      As of      As of      As of
        12/31/24   09/30/24   06/30/24   03/31/24   12/31/23
    Loans on non-accrual status                                        
    Mortgage loans:                                        
    Single-family   $ 2,530     $ 2,106     $ 2,596     $ 2,246     $ 1,750  
    Total     2,530       2,106       2,596       2,246       1,750  
                                             
    Accruing loans past due 90 days or more:     —       —       —       —       —  
    Total     —       —       —       —       —  
                                             
    Total non-performing loans (1)     2,530       2,106       2,596       2,246       1,750  
                                             
    Real estate owned, net     —       —       —       —       —  
    Total non-performing assets   $ 2,530     $ 2,106     $ 2,596     $ 2,246     $ 1,750  

         (1)  The non-performing loan balances are net of individually evaluated or collectively evaluated allowances, specifically attached to the individual loans.

    The MIL Network –

    January 29, 2025
  • MIL-OSI: RecycLiCo Battery Materials Engages Carmot Strategic Group and Penney Capital for Grants and Cooperative Funding Consultation

    Source: GlobeNewswire (MIL-OSI)

    SURREY, British Columbia, Jan. 28, 2025 (GLOBE NEWSWIRE) — RecycLiCo Battery Materials Inc. (“RecycLiCo” or the “Company”), (TSX.V: AMY | OTCQB: AMYZF| FSE: ID4), a pioneer in the field of lithium-ion battery recycling technology, is pleased to announce that it has engaged Penney Capital and Carmot Strategic Group, Inc. to assist in the company’s efforts to identify, and qualify for, government funding opportunities that could be used to further RecycLiCo’s critical mineral recovery activities in the U.S. and Canada, including research to enhance and find new applications for its current intellectual property and know-how and the continued exploitation of its upcycling technology.

    Carmot Strategic and Penney Capital advisory companies have won multiple federal grants to develop domestic sources of Critical Minerals, from mining and processing to advanced materials manufacturing, as well as developing innovative financial instruments to integrate these materials into U.S. supply chains.

    “We are very pleased to have Carmot Strategic and Penney Capital working with us,” said Richard Sadowsky, RecycLiCo’s Interim Chief Executive Officer. “Critical mineral recovery and reuse are becoming increasingly important, especially in terms of national security. The RecycLiCo Board has mandated that we explore new ways to exploit our recovery expertise and, at the same time, continue to offer high-quality upcycling of battery materials. We hope, with Carmot and Penney’s assistance, to establish relationships with government agencies that will support increases in the pace of both R&D and deployment.”

    About RecycLiCo

    RecycLiCo Battery Materials Inc. is a battery materials company specializing in sustainable lithium-ion battery upcycling and materials production. RecycLiCo has developed advanced technologies that efficiently recover battery-grade materials from lithium-ion batteries, addressing the global demand for environmentally friendly solutions in energy storage. With minimal processing steps and up to 99% extraction of lithium, cobalt, nickel, and manganese. RecycLiCo’s hydrometallurgical process turns lithium-ion battery waste into battery-grade cathode precursor, lithium hydroxide, and lithium carbonate for direct integration into the re- manufacturing of new lithium-ion batteries.

    About Penney Capital

    Founded in 2017 by President & CEO Clark Penney, Penney Capital excels at navigating, connecting, and expanding new development opportunities and large-investment infrastructure projects.

    Prior to founding Penney Capital, Clark Penney began his career working on energy and defense committees with the U.S. Senate in Washington D.C. and with the president pro tempore. Later, he branched into the finance industry for over 10 years: co-founding Cypress Wealth Management, a private wealth management firm now with over $1 billion in assets under management and offices in Alaska and California, where he remains a partner.

    Today, Penney Capital’s resume includes leading economic development with The State of Alaska, new development projects worth over $2 billion, and other areas of expertise including resource development, financial technology firms, cryptocurrency, campaigns, wireless technology, and manufacturing.

    About Carmot Strategic Group

    Established in 2008 by Daniel McGroarty, Carmot Strategic Group, Inc. is an issues management firm focused on Critical Mineral development, based in the Washington, D.C. area.

    A recognized subject matter expert on Critical Minerals, Daniel McGroarty serves on the advisory boards of several companies developing U.S.-based Critical Mineral projects. He has testified on Critical Mineral issues before both U.S. Senate and House committees on energy and natural resources and served a term as Independent Advisory Board Member of the Critical Materials Institute, the Department of Energy’s Energy Innovation Hub. Prior to establishing his consulting practice, he served in senior positions in the U.S. Government, as special assistant at the White House and Presidential appointee at the Department of Defense.

    For more information, please contact:
    Teresa Piorun
    Senior Corporate Secretary
    Telephone: 778-574-4444
    Email: InvestorServices@RecycLiCo.com

    Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain “forward-looking statements”, which are statements about the future based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. Forward–looking statements by their nature involve risks and uncertainties, and there can be no assurance that such statements will prove to be accurate or true. Investors should not place undue reliance on forward-looking statements. The Company does not undertake any obligation to update forward-looking statements except as required by law.

    The MIL Network –

    January 29, 2025
  • MIL-OSI United Kingdom: Coventry City Council Unveils its Green Skills Roadmap

    Source: City of Coventry

    Coventry Council has launched its Green Skills Roadmap.

    The roadmap is a comprehensive guide designed to support educators, employers and investors in identifying, accessing, and embedding sustainable net-zero skills into their operations.

    It provides a clear Action Plan which Coventry will address in partnership with a range of public, private and third sector partners.

    Coventry is committed to building a robust green skills ecosystem, helping businesses transition to sustainable practices, and offering future generations the tools they need to succeed in green careers. This roadmap is a vital step towards achieving a sustainable, net-zero future for Coventry.

    With the government’s target of achieving net-zero emissions by 2050, green careers, defined as roles that directly contribute to reducing emissions or addressing climate change through mitigation or adaptation, are set to play a critical role in the UK’s future economy.

    Green skills encompass the technical knowledge and behaviours necessary to tackle environmental challenges, which are becoming essential across all industries to help businesses manage their environmental impact, promote sustainability and contribute to a greener economy. Green jobs include positions focused on environmental restoration, transitioning industries to sustainable practices, and adapting business models to reduce.

    Councillor Dr Kindy Sandhu, Cabinet Member for Education and Skills said: “Coventry is at the forefront of the transition to green employment and investment, seamlessly integrating sustainability skills into education while fostering a green workforce through reskilling and technological innovation. 

    “The Green Skills Roadmap provides valuable guidance to educators and businesses, inspiring a new generation to pursue green careers and equipping them with the skills necessary to build a more sustainable future. 

    “Driving growth in green employment requires a united effort from public agencies, businesses, and investors. This roadmap will not only attract green industry investment to the region but also establish a strong green skills ecosystem, creating meaningful job opportunities and paving the way for future developments in the city.”

    The Green Skills Roadmap includes detailed Actions on the below:

    • Details On Improving Green Skills in Education: supporting teacher and careers advisors to aid student in finding green jobs, diversifying green skill pipeline subjects and partnering with adult education services to promote sustainability awareness programmes.
    • Implementation of Green Skills for Businesses: equipping business support advisors with green skills knowledge and collaborating with employers to align with green Apprenticeship Standards.
    • A Just Transition: for fossil fuel-dependent trades to reskill workforces with green skills, offering work experience and training programs.
    • Future Skills and skills for Investment: skills funding to support Greenpower park and electric vehicle development, encourage green skill training and apprenticeships and ensure the skills adapt to Coventry’s ‘Energy Plan’.

    The Green Skills Roadmap has been developed in partnership with key contributions and support from: Business in Community (BiTC), Coventry College, Coventry University, CW Chamber of Commerce, Department of Work and Pensions (DWP), Federation of Small Businesses (FSB), E.ON, The University of Warwick, Warwick manufacturing group (WMG) and others.

    Access the full Green Skills Roadmap.

    To keep up to date with the latest news, sign up for our Your Coventry email newsletter or follow the Council on Facebook, X (formerly Twitter), YouTube, Instagram, LinkedIn and TikTok.

    MIL OSI United Kingdom –

    January 29, 2025
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