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MIL-OSI: Lake Shore Bancorp, Inc. Announces Fourth Quarter 2024 and Year End Financial Results

Source: GlobeNewswire (MIL-OSI)

DUNKIRK, N.Y., Jan. 24, 2025 (GLOBE NEWSWIRE) — Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ: LSBK), the holding company for Lake Shore Savings Bank (the “Bank”), reported unaudited net income of $1.5 million, or $0.26 per diluted share, for the fourth quarter of 2024 compared to net income of $749,000, or $0.13 per diluted share, for the fourth quarter of 2023. For the year ended December 31, 2024, the Company reported unaudited net income of $4.9 million, or $0.88 per diluted share, as compared to $4.8 million, or $0.82 per diluted share for the year ended December 31, 2023. The Company’s 2024 financial performance was positively impacted by a decrease in non-interest expenses as a result of efforts to optimize operating expenses while reducing its reliance on wholesale funding by $41.0 million.

“2024 was a momentous year for Lake Shore as we achieved our goal to exit early the OCC’s Consent Order, reinstituted quarterly dividend payments to shareholders and grew earnings per share,” stated Kim C. Liddell, President, CEO, and Director. “We anticipate a challenging earnings environment in 2025 and will continue efforts to steadily increase value for our shareholders.”

Fourth Quarter 2024 and Full Year Financial Highlights:

Net income increased to $1.5 million during the fourth quarter of 2024, an increase of $720,000, or 96.1%, when compared to the fourth quarter of 2023. Net income was positively impacted by an increase in the credit to the provision for credit losses of $581,000, partially offset by a decrease in net interest income of $217,000, or 3.9%;
Net income increased to $4.9 million during the year ended December 31, 2024, an increase of $111,000, or 2.3%, when compared to the year ended December 31, 2023. Net income was positively impacted by a decrease in non-interest expense of $1.8 million, or 8.4%, and an increase in non-interest income of $669,000, or 25.4%;
Net interest margin increased to 3.31% during the fourth quarter of 2024, an increase of three basis points when compared to net interest margin of 3.28% during the third quarter of 2024;
Reduced reliance on wholesale funding by not renewing $16.0 million of brokered CDs and repaying $25.0 million of FHLBNY borrowings during the year ended December 31, 2024;
At December 31, 2024 and December 31, 2023, the Company’s percentage of uninsured deposits to total deposits was 13.5% and 12.8%, respectively;
Book value per share increased 3.3% to $15.67 per share at December 31, 2024 as compared to $15.17 per share at December 31, 2023; and
The Bank’s capital position remains “well capitalized” with a Tier 1 Leverage ratio of 13.83% and a Total Risk-Based Capital ratio of 18.79% at December 31, 2024.

Net Interest Income

Net interest income for the fourth quarter of 2024 marginally decreased by $42,000, or 0.8%, to $5.3 million as compared to $5.4 million for the third quarter of 2024 and decreased $217,000, or 3.9%, as compared to $5.6 million for the fourth quarter of 2023. Net interest margin and interest rate spread were 3.31% and 2.72%, respectively, for the fourth quarter of 2024 as compared to 3.28% and 2.67%, respectively, for the third quarter of 2024 and 3.34% and 2.83%, respectively, for the fourth quarter of 2023.

Net interest income for the year ended December 31, 2024 decreased $3.3 million, or 13.5%, to $21.1 million as compared to $24.4 million for the year ended December 31, 2023. Net interest margin and interest rate spread were 3.21% and 2.62%, respectively, for the year ended December 31, 2024 as compared to 3.62% and 3.23%, respectively, for the year ended December 31, 2023.

Interest income for the fourth quarter of 2024 was $8.6 million, a decrease of $261,000, or 2.9%, compared to $8.9 million for the third quarter of 2024, and a decrease of $23,000, or 0.3%, compared to $8.6 million for the fourth quarter of 2023.

The decrease in interest income from the prior quarter was primarily due to a decrease in the average balance of interest-earning assets of $11.8 million, or 1.8%, as well as a six basis points decrease in the average yield on interest-earning assets. Interest earned on interest-earning deposits decreased by $217,000, or 30.3%, due to a 65 basis points decrease in average yield and an $11.2 million decrease in the average balance of interest-earning deposits during the fourth quarter of 2024.

The decrease in interest income from the prior year quarter was primarily due to a $20.3 million, or 3.0%, decrease in the average balance of interest-earning assets. The decrease was partially offset by a 15 basis points increase in the average yield on interest-earning assets. During the fourth quarter of 2024 as compared to the same period in 2023, there was a $92,000 decrease in interest earned on interest-earning deposits due to a 65 basis points decrease in the average yield earned on interest earning deposits and a $51,000 decrease in interest earned on securities due to a 36 basis points decrease in the average yield on the securities portfolio. These decreases were partially offset by a $120,000 increase in interest income on loans due to a 28 basis points increase in the average yield on loans.

Interest income for the year ended December 31, 2024 was $34.8 million, an increase of $1.0 million, or 3.1%, compared to $33.8 million for the year ended December 31, 2023. The increase was due to a 28 basis points increase in the average yield on interest-earning assets primarily due to an increase in the average interest rate earned on loans. During the year ended December 31, 2024 as compared to 2023, there was a $704,000 increase in interest income on loans due to a 32 basis points increase in the average yield on loans, partially offset by a decrease in the average balance of loans of $19.8 million, or 3.5%. Interest income on interest-earning deposits increased to $2.5 million in 2024, an increase of $655,000, or 36.3%, from $1.8 million in 2023, due to a 17 basis points increase in average yield and an $11.7 million increase in the average balance of interest-earning deposits.

Interest expense for the fourth quarter of 2024 was $3.2 million, a decrease of $219,000, or 6.3%, from the third quarter of 2024, and an increase of $194,000, or 6.4%, from $3.1 million for the fourth quarter of 2023.

The decrease in interest expense when compared to the previous quarter was primarily due to a $11.7 million, or 2.3%, decrease in the average balance of interest-bearing liabilities and an 11 basis points decrease in the average rate paid. During the fourth quarter of 2024 as compared to the previous quarter, interest expense on deposits decreased by $176,000, or 5.3%, due to a $1.8 million decrease in the average balance of deposits and a 13 basis points decrease in the average rate paid on deposit accounts. Average interest-bearing deposit balances were $487.5 million, a 0.4% decrease during the fourth quarter of 2024 when compared to the previous quarter due to a decrease in the average balance of all deposit categories with the exception of money market accounts. Interest expense on borrowed funds and other interest-bearing liabilities decreased by $43,000 due to a $9.8 million, or 48.0%, decrease in the average balance of borrowed funds and other interest-bearing liabilities due to the repayment of our FHLBNY borrowings during the second half of 2024.

The increase in interest expense when compared to the prior year quarter was primarily due to a 26 basis points increase in average interest paid on interest-bearing liabilities. During the fourth quarter of 2024 as compared to the same period in 2023, there was a $324,000 increase in interest paid on time deposit accounts due to a 60 basis points increase in the average interest rate paid on time deposits. The increase in the average rate paid on time deposit accounts was primarily due to the increase in market interest rates and deposit competition. Average deposit balances increased 0.9% during the fourth quarter of 2024 from the fourth quarter of 2023, due to an increase in average money market accounts when compared to the same period of 2023. During the fourth quarter of 2024, interest expense on borrowed funds and other interest-bearing liabilities decreased by $212,000, or 66.7%, compared to the fourth quarter of 2023, primarily due to a $25.8 million decrease in average borrowed funds and other interest-bearing liabilities outstanding due to the repayment of our FHLBNY borrowings during 2024.

Interest expense for the year ended December 31, 2024 was $13.7 million, an increase of $4.3 million, or 46.2%, from $9.4 million for the year ended December 31, 2023. The increase in interest expense was primarily due to an 89 basis points increase in average interest paid on interest-bearing liabilities. During the year ended December 31, 2024 as compared to 2023, there was a $3.1 million increase in interest paid on time deposit accounts due to a 122 basis points increase in the average interest rate paid on time deposits along with an increase in average time deposit balances of $14.6 million, or 7.1%. The increase in the average rate paid on time deposit accounts was primarily due to the increase in market interest rates and deposit competition over the course of 2023 and into 2024. Average interest-bearing deposit balances were $491.9 million, a 1.2% increase during the year ended December 31, 2024, resulting from an increase in average time deposits and average money market accounts since December 31, 2023. During the year ended December 31, 2024, interest expense on borrowed funds and other interest-bearing liabilities decreased by $664,000, or 50.0%, compared to the year ended December 31, 2023, primarily due to a $17.2 million decrease in average borrowed funds and other interest-bearing liabilities outstanding due to the repayment of our FHLBNY borrowings during 2024.

Non-Interest Income

Non-interest income was $1.1 million for the fourth quarter of 2024, an increase of $277,000, or 35.0%, as compared to $791,000 for the third quarter of 2024, and an increase of $145,000, or 15.7%, as compared to $923,000 for the fourth quarter of 2023. The increase from the prior quarter was primarily due to a $161,000 increase in earnings on annuity assets in connection with the purchase of annuities during the fourth quarter 2024, a $65,000 increase in earnings on bank-owned life insurance during the fourth quarter as the result of the recognition of a death benefit, and an increase of $51,000 in unrealized gains on equity securities held in the Bank’s investment portfolio. The increase from the prior year quarter was primarily due to a $161,000 increase in earnings on annuity assets in connection with the purchase of annuities during the fourth quarter of 2024.

Non-interest income was $3.3 million for the year ended December 31, 2024, an increase of $669,000, or 25.4%, as compared to the year ended December 31, 2023. The increase was primarily due to a $313,000 increase in earnings on bank-owned life insurance in connection with the restructuring of bank-owned life insurance during the fourth quarter of 2023 and the recognition of death benefits during the second half of 2024, as well as a $161,000 increase in earnings on annuities purchased in the fourth quarter of 2024. The increases were partially offset by a decrease in debit card fees of $30,000, or 3.5% during the year ended December 31, 2024 when compared to the year ended December 31, 2023.

Non-Interest Expense

Non-interest expense was $5.3 million for the fourth quarter of 2024, an increase of $72,000, or 1.4%, as compared to $5.2 million for the fourth quarter of 2023. The increase from the prior year quarter was primarily related to an increase in salaries and wages expense of $406,000, or 14.0%, which was partially offset by all other non-interest expense categories, with the exception of postage and supplies expense.

Non-interest expense was $20.0 million for the year ended December 31, 2024, a decrease of $1.8 million, or 8.4%, as compared to $21.8 million for the year ended December 31, 2023. The decrease primarily related to a decline in professional services expenses of $1.0 million, or 41.8%, as a result of a decrease in the use of external consultants. Advertising costs decreased by $484,000, or 83.7%, due to a decrease in marketing spending, and FDIC insurance expense decreased by $317,000, or 28.5%, during the year ended December 31, 2024 due to a decrease in premium assessments. Additionally, occupancy and equipment costs decreased by $194,000, or 6.7%, as the result of efforts to optimize operating expenses. These decreases were partially offset by an increase in salaries and employee benefits expense of $198,000, or 1.8%, as well as an increase in data processing costs of $41,000, or 2.3%, for the year ended December 31, 2024 when compared to the year ended December 31, 2023.

Income Tax Expense

Income tax expense was $278,000 for the fourth quarter of 2024, an increase of $20,000, or 7.8%, as compared to $258,000 for the third quarter of 2024, and a decrease of $283,000, or 50.4%, as compared to $561,000 for the fourth quarter of 2023. The increase in income tax expense from the prior quarter was primarily related to the increase in taxable income earned during the current quarter. The decrease in income tax expense from the prior year quarter was due to a restructuring of bank-owned life insurance in 2023 which resulted in additional taxable income in 2023 and an increase in non-taxable income in 2024 as the result of higher earnings on policies owned.

Income tax expense was $935,000 for the year ended December 31, 2024, a decrease of $464,000, or 33.2%, as compared to $1.4 million for the year ended December 31, 2023. The decrease in income tax expense for the year ended December 31, 2024 when compared to the year ended December 31, 2023 was due to a restructuring of bank-owned life insurance in 2023 which resulted in additional taxable income in 2023 and an increase in non-taxable income in 2024 as the result of higher earnings on policies owned.

Credit Quality

The Company’s allowance for credit losses on loans was $5.1 million as of December 31, 2024 as compared to $6.5 million as of December 31, 2023. The Company’s allowance for credit losses on unfunded commitments was $314,000 as of December 31, 2024 as compared to $485,000 as of December 31, 2023. Non-performing assets as a percent of total assets increased to 0.55% at December 31, 2024 as compared to 0.47% at December 31, 2023, due to a decrease in total assets of $39.6 million, or 5.5%, and an increase in non-performing assets of $423,000, or 12.5%. The Company’s allowance for credit losses on loans as a percent of net loans was 0.93% at December 31, 2024 and 1.16% at December 31, 2023.

The Company recorded a credit to the provision for credit losses of $613,000 for the fourth quarter of 2024 and $1.5 million for the year ended December 31, 2024. For the year ended December 31, 2024, $1.3 million of the credit to the provision for credit losses related to the loan portfolio and $171,000 related to the reserve for unfunded commitments.

The decrease in the allowance for credit losses on loans and the corresponding credit to the provision for credit losses recognized during the year ended December 31, 2024 was the result of a decrease in the quantitative loss factors derived from historical loss rates calculated in the vintage model as well as a decrease in the qualitative loss factors derived from both current and forecasted economic trends.

Balance Sheet Summary

Total assets at December 31, 2024 were $685.5 million, a $39.6 million decrease, or 5.5%, as compared to $725.1 million at December 31, 2023. Cash and cash equivalents decreased by $20.6 million, or 38.3%, from $53.7 million at December 31, 2023 to $33.1 million at December 31, 2024. The decrease was primarily due to a decrease in long-term debt due to the repayment of FHLBNY borrowings of $25.0 million in 2024 and a decrease in total deposits of $17.9 million due to the non-renewal of $16.0 million of brokered CDs in 2024. The decrease in cash and cash equivalents was partially offset by a decrease in net loans of $11.2 million, or 2.0%. Securities available for sale were $56.5 million at December 31, 2024 as compared to $60.4 million at December 31, 2023 primarily due to repayments during 2024 and a decrease in the market value of the securities. Net loans receivable at December 31, 2024 and December 31, 2023 were $544.6 million and $555.8 million, respectively. Total deposits at December 31, 2024 were $573.0 million, a decrease of $17.9 million, or 3.0%, compared to $590.9 million at December 31, 2023. Total borrowings decreased to $10.3 million at December 31, 2024, a decrease of $25.0 million, or 70.9%, as compared to $35.3 million as of December 31, 2023.

Stockholders’ equity at December 31, 2024 was $89.9 million, a $3.6 million increase, or 4.2%, as compared to $86.3 million at December 31, 2023. The increase in stockholders’ equity was primarily attributed to $4.9 million in net income earned during 2024.

About Lake Shore

Lake Shore Bancorp, Inc. (NASDAQ Global Market: LSBK) is the mid-tier holding company of Lake Shore Savings Bank, a federally chartered, community-oriented financial institution headquartered in Dunkirk, New York. The Bank has ten full-service branch locations in Western New York, including four in Chautauqua County and six in Erie County. The Bank offers a broad range of retail and commercial lending and deposit services. The Company’s common stock is traded on the NASDAQ Global Market as “LSBK”. Additional information about the Company is available at http://www.lakeshoresavings.com.

Safe-Harbor

This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on current expectations, estimates and projections about the Company’s and the Bank’s industry, and management’s beliefs and assumptions. Words such as anticipates, expects, intends, plans, believes, estimates and variations of such words and expressions are intended to identify forward-looking statements. Such statements reflect management’s current views of future events and operations. These forward-looking statements are based on information currently available to the Company as of the date of this release. It is important to note that these forward-looking statements are not guarantees of future performance and involve and are subject to significant risks, contingencies, and uncertainties, many of which are difficult to predict and are generally beyond our control including, but not limited to, compliance with the Written Agreement with the Federal Reserve Bank of Philadelphia, data loss or other security breaches, including a breach of our operational or security systems, policies or procedures, including cyber-attacks on us or on our third party vendors or service providers, economic conditions, the effect of changes in monetary and fiscal policy, inflation, unanticipated changes in our liquidity position, climate change, increased unemployment, deterioration in the credit quality of the loan portfolio and/or the value of the collateral securing repayment of loans, reduction in the value of investment securities, the cost and ability to attract and retain key employees, regulatory or legal developments, tax policy changes, and our ability to implement and execute our business plan and strategy and expand our operations. These factors should be considered in evaluating forward looking statements and undue reliance should not be placed on such statements, as our financial performance could differ materially due to various risks or uncertainties. We do not undertake to publicly update or revise our forward-looking statements if future changes make it clear that any projected results expressed or implied therein will not be realized.

Source: Lake Shore Bancorp, Inc.
Category: Financial

Investor Relations/Media Contact
Taylor M. Gilden
Chief Financial Officer and Treasurer
Lake Shore Bancorp, Inc.
31 East Fourth Street
Dunkirk, New York 14048
(716) 366-4070 ext. 1065


Selected Financial Condition Data

	December 31,			December 31,
	2024			2023
		(Unaudited)
		(Dollars in thousands)

Total assets	$		685,504	$	725,118
Cash and cash equivalents			33,131		53,730
Securities available for sale			56,495		60,442
Loans receivable, net			544,620		555,828
Deposits			572,978		590,924
Long-term debt			10,250		35,250
Stockholders’ equity			89,868		86,273


Statements of Income

		Three Months Ended							Years Ended
		December 31,							December 31,
		2024				2023				2024				2023
	(Unaudited)
	(Dollars in thousands, except per share amounts)
Interest income	$		8,590		$		8,613		$		34,804		$		33,755
Interest expense			3,249				3,055				13,741				9,397
Net interest income			5,341				5,558				21,063				24,358
(Credit) provision for credit losses			(613	)			(32	)			(1,479	)			(1,043	)
Net interest income after (credit) provision for credit losses			5,954				5,590				22,542				25,401
Total non-interest income			1,068				923				3,304				2,635
Total non-interest expense			5,275				5,203				19,980				21,817
Income before income taxes			1,747				1,310				5,866				6,219
Income tax expense			278				561				935				1,399
Net income	$		1,469		$		749		$		4,931		$		4,820
Basic and diluted earnings per share	$		0.26		$		0.13		$		0.88		$		0.82

Selected Financial Ratios
Return on average assets			0.85	%			0.42	%			0.70	%			0.67	%
Return on average equity			6.52	%			3.60	%			5.62	%			5.78	%
Average interest-earning assets to average interest-bearing liabilities			129.46	%			127.96	%			127.88	%			128.06	%
Interest rate spread			2.72	%			2.83	%			2.62	%			3.23	%
Net interest margin			3.31	%			3.34	%			3.21	%			3.62	%


Average Balance Sheets, Interest, and Rates (Quarterly Comparison)

	For the Quarter Ended							For the Quarter Ended
	December 31, 2024							December 31, 2023
	Average		Interest Income/		Yield/			Average		Interest Income/		Yield/
	Balance		Expense		Rate⁽²⁾			Balance		Expense		Rate⁽²⁾
	(Unaudited)
	(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits & federal funds sold	$	43,366	$	499		4.60	%	$	45,063	$	591		5.25	%
Securities⁽¹⁾		61,137		388		2.54	%		60,635		439		2.90	%
Loans, including fees		540,376		7,703		5.70	%		559,432		7,583		5.42	%
Total interest-earning assets		644,879		8,590		5.33	%		665,130		8,613		5.18	%
Other assets		49,207							47,143
Total assets	$	694,086						$	712,273

Interest-bearing liabilities
Demand & NOW accounts	$	64,465	$	15		0.09	%	$	72,182	$	18		0.10	%
Money market accounts		153,407		912		2.38	%		130,813		823		2.52	%
Savings accounts		55,451		9		0.06	%		66,115		13		0.08	%
Time deposits		214,150		2,207		4.12	%		214,203		1,883		3.52	%
Borrowed funds & other interest-bearing liabilities		10,641		106		3.98	%		36,476		318		3.49	%
Total interest-bearing liabilities		498,114		3,249		2.61	%		519,789		3,055		2.35	%
Other non-interest bearing liabilities		105,881							109,309
Stockholders’ equity		90,091							83,175
Total liabilities & stockholders’ equity	$	694,086						$	712,273
Net interest income			$	5,341						$	5,558
Interest rate spread						2.72	%						2.83	%
Net interest margin						3.31	%						3.34	%

(1) The tax equivalent adjustment for bank qualified tax exempt municipal securities, using a federal statutory rate of 21%, results in rates of 2.91% and 3.80% for the three months ended December 31, 2024 and 2023, respectively.
(2) Annualized.


Average Balance Sheets, Interest, and Rates (Annual Comparison)

	For the Year Ended							For the Year Ended
	December 31, 2024							December 31, 2023
	Average		Interest Income/		Yield/			Average		Interest Income/		Yield/
	Balance		Expense		Rate			Balance		Expense		Rate
	(Unaudited)
	(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits & federal funds sold	$	48,639	$	2,460		5.06	%	$	36,948	$	1,805		4.89	%
Securities⁽¹⁾		60,347		1,631		2.70	%		67,840		1,941		2.86	%
Loans, including fees		547,525		30,713		5.61	%		567,319		30,009		5.29	%
Total interest-earning assets		656,511		34,804		5.30	%		672,107		33,755		5.02	%
Other assets		49,629							46,057
Total assets	$	706,140						$	718,164

Interest-bearing liabilities
Demand & NOW accounts	$	67,023	$	64		0.10	%	$	76,495	$	75		0.10	%
Money market accounts		144,926		3,811		2.63	%		132,816		1,914		1.44	%
Savings accounts		59,095		40		0.07	%		70,600		47		0.07	%
Time deposits		220,856		9,162		4.15	%		206,218		6,033		2.93	%
Borrowed funds & other interest-bearing liabilities		21,465		664		3.09	%		38,701		1,328		3.43	%
Total interest-bearing liabilities		513,365		13,741		2.68	%		524,830		9,397		1.79	%
Other non-interest bearing liabilities		105,018							109,907
Stockholders’ equity		87,757							83,427
Total liabilities & stockholders’ equity	$	706,140						$	718,164
Net interest income			$	21,063						$	24,358
Interest rate spread						2.62	%						3.23	%
Net interest margin						3.21	%						3.62	%

(1) The tax equivalent adjustment for bank qualified tax exempt municipal securities, using a federal statutory rate of 21%, results in rates of 3.08% and 3.27% for the year ended December 31, 2024 and 2023, respectively.


Selected Quarterly Financial Data

	As of or For the Three Months Ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
	(Unaudited)
	(Dollars in thousands, except per share amounts)
Selected Financial Condition Data
Total assets	$	685,504		$	697,596		$	711,042		$	717,582		$	725,118
Cash and cash equivalents		33,131			49,981			60,987			54,953			53,730
Securities available for sale		56,495			58,782			57,309			58,682			60,442
Loans receivable, net		544,620			539,005			544,337			555,455			555,828
Deposits		572,978			587,563			589,395			594,704			590,924
Long-term debt		10,250			10,250			23,250			25,250			35,250
Stockholders’ equity		89,868			89,877			86,932			86,510			86,273

Condensed Statements of Income
Interest income	$	8,590		$	8,851		$	8,754		$	8,609		$	8,613
Interest expense		3,249			3,468			3,548			3,476			3,055
Net interest income		5,341			5,383			5,206			5,133			5,558
(Credit) provision for credit losses		(613	)		(229	)		(285	)		(352	)		(32	)
Net interest income after (credit) provision for credit losses		5,954			5,612			5,491			5,485			5,590
Total non-interest income		1,068			791			738			707			923
Total non-interest expense		5,275			4,813			4,897			4,995			5,203
Income before income taxes		1,747			1,590			1,332			1,197			1,310
Income tax expense		278			258			216			183			561
Net income	$	1,469		$	1,332		$	1,116		$	1,014		$	749
Basic and diluted earnings per share	$	0.26		$	0.24		$	0.19		$	0.17		$	0.13

Selected Financial Ratios
Return on average assets		0.85	%		0.76	%		0.63	%		0.57	%		0.42	%
Return on average equity		6.52	%		6.03	%		5.19	%		4.69	%		3.60	%
Average interest-earning assets to average interest-bearing liabilities		129.46	%		128.81	%		127.00	%		126.33	%		127.96	%
Interest rate spread		2.72	%		2.67	%		2.56	%		2.55	%		2.83	%
Net interest margin		3.31	%		3.28	%		3.14	%		3.10	%		3.34	%
Efficiency ratio		82.30	%		77.96	%		82.39	%		85.53	%		80.24	%

Asset Quality Ratios:
Non-performing loans as a percent of total net loans		0.80	%		0.74	%		0.73	%		0.71	%		0.60	%
Non-performing assets as a percent of total assets		0.55	%		0.57	%		0.56	%		0.55	%		0.47	%
Allowance for credit losses as a percent of net loans		0.93	%		1.01	%		1.08	%		1.12	%		1.16	%
Allowance for credit losses as a percent of non-performing loans		134.91	%		137.03	%		148.20	%		159.19	%		193.09	%

Share Information:
Common stock, number of shares outstanding		5,735,226			5,737,036			5,737,036			5,684,784			5,686,288
Treasury stock, number of shares held		1,101,288			1,099,478			1,099,478			1,151,730			1,150,226
Book value per share	$	15.67		$	15.67		$	15.15		$	15.22		$	15.17
Tier 1 leverage ratio		13.83	%		13.37	%		13.02	%		12.87	%		12.68	%
Total risk-based capital ratio		18.79	%		18.85	%		18.64	%		18.13	%		17.77	%

The MIL Network –

January 25, 2025

MIL-OSI Security: 12 Indicted in Multi-Million Dollar Business Email Compromise Scheme

Source: Office of United States Attorneys

COLUMBIA, S.C. — A federal grand jury in Columbia returned a 12-count indictment alleging conspiracy, wire fraud, bank fraud, and money laundering against 12 individuals for defrauding multiple victims in a nationwide scheme.

The indictment alleges that the defendants listed below were involved in a business email compromise scheme that defrauded the victims out of millions of dollars. These types of fraud target both companies and individuals.

Demani Jawara Bosket, 50, of Saluda
Nkem Ajoku 55, of Pflugerville, Texas
Walter Clayron Ruff Jr., 51, of Gaston
Tanya Lawshawn Bosket, 51, of Saluda
Jahbir Rolando Fowle, 45, of Charlotte, North Carolina
Anthony Jerome Savage, 46, of Charlotte, North Carolina
Micheal Raymond Bevans-Silva, 38, of Savannah, Georgia
Carlise Raymion Roland, 32, of Jacksonville, Florida,
Daniel Alexander Edwards, 51, of Jacksonville, Florida,
Danny Heard II, 41, of Jacksonville, Florida,
Raymone Tyshay Scott Sr., 48, of Jacksonville, Florida,
Jamian Joshaun Butler, 45, of Jacksonville, Florida,

The perpetrators of these types of frauds typically employ the use of “spoofed” emails that appear to be the genuine email address of a legitimate business or banking institution. In reality, the email address is a slight variation of the true email address, and the victim is instead communicating with perpetuators of the scheme.

The indictment alleges that the defendants accessed the victims’ computer systems to monitor email communications for potential financial transactions and bank transfers. The defendants used this information to identify the victims’ points of contact, financial accounts, communications, and business practices. The defendants then used spoofed emails to impersonate internal personnel, business partners, vendors, or other interested parties. The defendants would then initiate payments or direct financial transfers to bank accounts they controlled. The defendants then shared and intermixed the stolen funds between their own bank accounts, before sending a portion of the money out of the country. The defendants are alleged to have victimized multiple individuals and businesses, including construction companies, private equity firms, title companies, and law firms in South Carolina, New Jersey, Florida, Texas, Pennsylvania, and Japan.

The defendants face a maximum penalty of 30 years imprisonment and fines of $1,000,000. The defendants are scheduled to be arraigned on Feb. 4, 2025, at 10 a.m. before the Honorable Paige J. Gossett.

The case was investigated by the U.S. Agency for International Development, the Internal Revenue Service Criminal Investigation, the Department of Homeland Security, and the U.S. Secret Service. Assistant U.S. Attorneys Lothrop Morris and T. DeWayne Pearson are prosecuting the case.

All charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.

###

MIL Security OSI –

January 25, 2025

MIL-OSI Security: Porcupine Man Found Guilty of Shooting Deaths of Girlfriend and Unborn Baby

Source: Office of United States Attorneys

RAPID CITY – United States Attorney Alison J. Ramsdell announced that a jury has convicted McKenzie Big Crow, age 20, of Porcupine, South Dakota, of Involuntary Manslaughter, the Unborn Victims of Violence Act, and Possession of an Unregistered Firearm following a three-day jury trial in federal district court in Rapid City, South Dakota. The verdict was returned on January 23, 2025.

The convictions relating to the shooting deaths each carry a maximum penalty of eight years’ imprisonment and/or a $250,000 fine, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. The firearm conviction carries a maximum penalty of 10 years’ imprisonment and/or a $250,000 fine, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.

A federal grand jury indicted Big Crow in June of 2024 for Second Degree Murder, Unborn Victims of Violence Act, Discharge of a Firearm During the Commission of a Crime of Violence, and Possession of an Unregistered Firearm.

On August 20, 2023, near Porcupine, Big Crow was illegally in possession of a Savage Arms Model 62, semiautomatic rifle. The barrel had been sawed off, and the defendant taped components of an Airsoft rifle to the gun to make it appear like an AK-47. Big Crow claimed he put the rifle in a backpack and that the gun discharged when he bumped the bag against a door. The gunshot struck 19-year-old Ashton Provost in the chest, killing her and her unborn child within minutes. The gun was later found hidden under Big Crow’s bed. On the day of the shooting, Big Crow had drugs in his system including marijuana, cocaine, MDMA, and methamphetamine.

This case was investigated by the Federal Bureau of Investigation, the Oglala Sioux Tribe Department of Public Safety, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Heather Knox prosecuted the case.

A presentence investigation was ordered, and a sentencing date has been set for April 25, 2025. The defendant was remanded to the custody of the U.S. Marshals Service.

MIL Security OSI –

January 25, 2025

MIL-OSI: Northrim BanCorp Earns $10.9 Million, or $1.95 Per Diluted Share, in Fourth Quarter 2024, and $37.0 Million, or $6.62 Per Diluted Share, for the Year Ended December 31, 2024

Source: GlobeNewswire (MIL-OSI)

ANCHORAGE, Alaska, Jan. 24, 2025 (GLOBE NEWSWIRE) — Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of $10.9 million, or $1.95 per diluted share, in the fourth quarter of 2024, compared to $8.8 million, or $1.57 per diluted share, in the third quarter of 2024, and $6.6 million, or $1.19 per diluted share, in the fourth quarter a year ago. The increase in the fourth quarter of 2024 compared to the third quarter of 2024 is primarily due to an increase in purchased receivable income due to the Company’s acquisition of Sallyport Commercial Finance, LLC (“Sallyport”), which was completed on October 31, 2024. Sallyport and its direct and indirect subsidiaries provide services and products related to factoring and asset-based lending in the United States, Canada, and the United Kingdom. Additionally, in the fourth quarter of 2024 the Company had an increase in mortgage banking income, primarily as a result of an increase in the fair value of a mortgage servicing portfolio that the Company purchased from another financial institution in the fourth quarter. The increase profitability in the fourth quarter of 2024 as compared to the same quarter of the prior year was largely driven by an increase in mortgage banking income and higher net interest income, as well as an increase in purchased receivable income as noted above, which was only partially offset by higher other operating expenses and an increase in the provision for credit losses.

Net income for the full year of 2024 increased 46% to $37.0 million, or $6.62 per diluted share, compared to $25.4 million, or $4.49 per diluted share, for the full year of 2023. Increased net interest income resulting from loan and deposit growth supported 2024 earnings in the Community Banking segment but were offset by increases in other operating expenses, primarily in salaries and other personnel expense as the Company continued to expand its branch network into new markets in Alaska. An increase in mortgage originations and an increase in the fair value of mortgage servicing rights resulted in net income of $4.4 million in the Home Mortgage Lending segment in 2024 compared to a $2.5 million loss in 2023.

Dividends per share in the fourth quarter of 2024 remained consistent with the third quarter of 2024 at $0.62 per share and increased from $0.60 per share in the fourth quarter of 2023.

“Northrim reported record core earnings in 2024 and record earnings per share in the fourth quarter,” said Mike Huston, Northrim’s President and Chief Executive Officer. “We are pleased with our results as we continue to focus on profitable growth. In the last five years Northrim’s deposit market share in Alaska has increased from 11% to 16%, loans and deposits have increased by almost 100%, and net interest income has increased by 60%.”

“2024 results were also supported by an improvement in mortgage banking income,” continued Mr. Huston. “We believe the acquisition of Sallyport in the fourth quarter will further diversify fee income and provide attractive risk-adjusted returns to Northrim shareholders.”

Fourth Quarter 2024 Highlights:

Net interest income in the fourth quarter of 2024 increased 7% to $30.8 million compared to $28.8 million in the third quarter of 2024 and increased 15% compared to $26.7 million in the fourth quarter of 2023.
Net interest margin on a tax equivalent basis (“NIMTE”)^* was 4.47% for the fourth quarter of 2024, a 12-basis point increase from the third quarter of 2024 and a 35-basis point increase compared to the fourth quarter of 2023.
Return on average assets (“ROAA”) was 1.43% and return on average equity (“ROAE”) was 16.32% for the fourth quarter of 2024.
Portfolio loans were $2.13 billion at December 31, 2024, up 6% from the preceding quarter and up 19% from a year ago, primarily due to new customer relationships, expanding market share, and to retaining certain mortgage loans originated by Residential Mortgage, a subsidiary of Northrim Bank (the “Bank”), in the loan portfolio.
Total deposits were $2.68 billion at December 31, 2024, up 2% from the preceding quarter, and up 8% from $2.49 billion a year ago. Noninterest bearing demand deposits represented 27% of total deposits at December 31, 2024, down from 29% at September 30, 2024 and 31% at December 31, 2023.
Total assets at December 31, 2024 exceeded $3 billion for the first time.
The average cost of interest-bearing deposits was 2.15% in the fourth quarter of 2024, down from 2.24% in the third quarter of 2024 and up from 2.00% in the fourth quarter a year ago.
Acquired Sallyport for approximately $53.9 million (approximately $47.9 million in cash and $6 million in an earn-out payable over 3 years) on October 31, 2024.


Financial Highlights	Three Months Ended
(Dollars in thousands, except per share data)	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Total assets	$3,041,869		$2,963,392		$2,821,668		$2,759,560		$2,807,497
Total portfolio loans	$2,129,263		$2,007,565		$1,875,907		$1,811,135		$1,789,497
Total deposits	$2,680,189		$2,625,567		$2,463,806		$2,434,083		$2,485,055
Total shareholders’ equity	$267,116		$260,050		$247,200		$239,327		$234,718
Net income	$10,927		$8,825		$9,020		$8,199		$6,613
Diluted earnings per share	$1.95		$1.57		$1.62		$1.48		$1.19
Return on average assets	1.43	%	1.22	%	1.31	%	1.19	%	0.93	%
Return on average shareholders’ equity	16.32	%	13.69	%	14.84	%	13.84	%	11.36	%
NIM	4.41	%	4.29	%	4.24	%	4.16	%	4.06	%
NIMTE^*	4.47	%	4.35	%	4.30	%	4.22	%	4.12	%
Efficiency ratio	66.96	%	66.11	%	68.78	%	68.93	%	72.21	%
Total shareholders’ equity/total assets	8.78	%	8.78	%	8.76	%	8.67	%	8.36	%
Tangible common equity/tangible assets^*	7.23	%	8.28	%	8.24	%	8.14	%	7.84	%
Book value per share	$48.41		$47.27		$44.93		$43.52		$42.57
Tangible book value per share^*	$39.17		$44.36		$42.03		$40.61		$39.68
Dividends per share	$0.62		$0.62		$0.61		$0.61		$0.60
Common shares outstanding	5,518,210		5,501,943		5,501,562		5,499,578		5,513,459

^* References to NIMTE, tangible book value per share, and tangible common equity to tangible common assets, (all of which exclude intangible assets) represent non-GAAP financial measures. Management has presented these non-GAAP measurements in this earnings release, because it believes these measures are useful to investors. Please refer to the end of this release for reconciliations of these non-GAAP financial measures to GAAP financial measures.

Alaska Economic Update
(Note: sources for information in this section are listed on page 13.)

The Alaska Department of Labor (“DOL”) has reported Alaska’s seasonally adjusted unemployment rate in November 2024 was 4.6% compared to the U.S. rate of 4.2%. The total number of payroll jobs in Alaska, not including uniformed military, increased 2.4% or 7,700 jobs between November 2023 and November 2024.

According to the DOL, Construction had the largest growth in new jobs in Alaska through November compared to the prior year. The Construction sector added 2,100 positions for a year over year growth rate of 12.7% in November 2024. The larger Health Care sector grew by 1,500 jobs for an annual growth rate of 3.7%. The Oil & Gas sector increased by 9.2% or 700 new direct jobs. Transportation, Warehousing and Utilities added 1,000 jobs for a 4.5% growth rate. Professional and Business Services increased 700 jobs year over year through November 2024, up 2.5%.

The Government sector grew by 1,200 jobs for 1.5% growth, adding 100 Federal jobs, 800 State and 300 Local government positions in Alaska over the same period. Declining sectors between November 2023 and November 2024 were Manufacturing (primarily seafood processing) shrinking 500 jobs (-6.6%), Information, down 100 jobs (-2.2%), and Retail lost 100 jobs (-0.3%).

Alaska’s Gross State Product (“GSP”) in the third quarter of 2024, exceeded $70 billion for the first time, and is estimated to be $70.1 billion in current dollars, according to the Federal Bureau of Economic Analysis (“BEA”). Alaska’s inflation adjusted “real” GSP increased 6.5% in 2023, placing Alaska fifth best of all 50 states. In the third quarter of 2024 Alaska GSP increased at an annualized rate of 2.2%, compared to the average U.S. growth rate of 3.1%. Alaska’s real GSP improvement in the third quarter of 2024 was primarily caused by growth in the Health Care, Trade, Transportation and Warehousing sectors.

The BEA also calculated Alaska’s seasonally adjusted personal income at $55.7 billion in the third quarter of 2024. This was an annualized improvement in the third quarter of 3.3% for Alaska, compared to the national average of 3.2%. Alaska enjoyed an annual personal income improvement of 3.8% in 2023. The $445 million increase in personal income in the third quarter in Alaska came from a $310 million increase in net earnings from wages, $145 million growth in government transfer receipts (which grew in all 50 states), and a $10 million decrease in investment income.

The monthly average price of Alaska North Slope (“ANS”) crude oil was at an annual high of $89.05 in April 2024 and most recently averaged $72.50 in November 2024. The Alaska Department of Revenue (“DOR”) calculated ANS crude oil production was 461 thousand barrels per day (“bpd”) in Alaska’s fiscal year ending June 30, 2024 and is projected to increase to 467 thousand bpd in Alaska’s fiscal year 2025. The DOR expects production to continue to grow rapidly to 657 thousand bpd by fiscal year 2034. This is primarily a result of new production coming on-line in and around the NPR-A region west of Prudhoe Bay. A partnership between Santos and Repsol is constructing the new Pikka field and ConocoPhillips is reportedly developing the large new Willow field. There are also a number of smaller new fields in Alaska’s North Slope that are contributing to the State of Alaska’s production growth estimates.

According to the Alaska Multiple Listing Services, the average sales price of a single family home in Anchorage rose 6.2% in 2024 to $509,994, following a 5.2% increase in 2023. This was the seventh consecutive year of price increases.

The average sales price for single family homes in the Matanuska Susitna Borough rose 3.9% in 2024 to $412,907, after increasing 4% in 2023. This continues a trend of average price increases for more than a decade in the region. These two markets represent where the vast majority of the Bank’s residential lending activity occurs.

The Alaska Multiple Listing Services reported a 3.4% increase in the number of units sold in Anchorage when comparing 2024 to 2023. There was virtually no change in the number of homes sold in the Matanuska Susitna Borough, with only four fewer homes sold in 2024 than in 2023 or 0.2%.

Northrim Bank sponsors the Alaskanomics blog to provide news, analysis, and commentary on Alaska’s economy. Join the conversation at Alaskanomics.com, or for more information on the Alaska economy, visit: http://www.northrim.com and click on the “Business Banking” link and then click “Learn.” Information from our website is not incorporated into, and does not form, a part of this earnings release.

Review of Income Statement

Consolidated Income Statement

In the fourth quarter of 2024, Northrim generated a ROAA of 1.43% and a ROAE of 16.32%, compared to 1.22% and 13.69%, respectively, in the third quarter of 2024 and 0.93% and 11.36%, respectively, in the fourth quarter a year ago. For the year 2024, Northrim generated a ROAA of 1.29% and a ROAE of 14.70%, compared to 0.94% and 11.17% for 2023.

Net Interest Income/Net Interest Margin

Net interest income increased 7% to $30.8 million in the fourth quarter of 2024 compared to $28.8 million in the third quarter of 2024 and increased 15% compared to $26.7 million in the fourth quarter of 2023. Interest expense on deposits increased to $10.6 million in the fourth quarter compared to $10.1 million in the third quarter of 2024 and $8.7 million in the fourth quarter of 2023.

NIMTE^* was 4.47% in the fourth quarter of 2024 compared to 4.35% in the preceding quarter and 4.12% in the fourth quarter a year ago. NIMTE^* increased 12 basis points in the fourth quarter of 2024 compared to the prior quarter and 35 basis points compared to the fourth quarter of 2023 primarily due to a favorable change in the mix of earning-assets towards higher loan balances as a percentage of total earning-assets, higher earning-assets, and higher yields on those assets which were only partially offset by an increase in costs on interest-bearing deposits. The weighted average interest rate for new loans booked in the fourth quarter of 2024 was 7.23% compared to 7.24% in the third quarter of 2024 and 7.74% in the fourth quarter a year ago. The yield on the investment portfolio increased to 2.84% from 2.80% in the third quarter of 2024 and increased from 2.48% in the fourth quarter of 2023. “We are beginning to see improvements in our net interest margin as a result of lower deposit costs from the recent Fed interest rate cuts, in addition to the benefit of new loan volume and loan repricing driving our net interest margin to 4.47% for the fourth quarter,” said Jed Ballard, Chief Financial Officer. Northrim’s NIMTE^* continues to remain above the peer average of 3.16% posted by the S&P U.S. Small Cap Bank Index with total market capitalization between $250 million and $1 billion as of September 30, 2024.

Provision for Credit Losses

Northrim recorded a provision for credit losses of $1.2 million in the fourth quarter of 2024, which includes a $125,000 provision for credit losses on purchased receivables, $107,000 benefit to the provision for credit losses on unfunded commitments, and a provision for credit losses on loans of $1.2 million. This compares to a provision for credit losses of $2.1 million in the third quarter of 2024, and a provision for credit losses of $885,000 in the fourth quarter a year ago. The $1.2 million provision for credit losses in the fourth quarter of 2024 is largely attributable to increases in loan and purchased receivable balances.

Nonperforming loans, net of government guarantees, increased during the quarter to $7.5 million at December 31, 2024, compared to $5.0 million at both September 30, 2024 and December 31, 2023.

The allowance for credit losses was 292% of nonperforming loans, net of government guarantees, at the end of the fourth quarter of 2024, compared to 394% three months earlier and 345% a year ago.

Other Operating Income

In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities, including purchased receivables financing and wealth management. Other operating income contributed $13.0 million, or 30% of total fourth quarter 2024 revenues, as compared to $11.6 million, or 29% of revenues in the third quarter of 2024, and $6.5 million, or 20% of revenues in the fourth quarter of 2023. The increase in other operating income in the fourth quarter of 2024 as compared to the preceding quarter and the fourth quarter of 2023 is largely the result of higher purchased receivable income due to the acquisition of Sallyport. Additionally, other operating income in the fourth quarter of 2024 as compared to the fourth quarter a year ago increased due to an increase in mortgage banking income arising from higher volume of mortgage activity and an increase in the value of mortgage servicing rights. The changes in mortgage banking are discussed further in the Home Mortgage Lending section below.

Other Operating Expenses

Operating expenses were $29.4 million in the fourth quarter of 2024, compared to $26.7 million in the third quarter of 2024, and $24.0 million in the fourth quarter of 2023. The increase in other operating expenses in the fourth quarter of 2024 compared to the third quarter of 2024 and the fourth quarter a year ago is primarily due to an increase in salaries and other personnel expense, as well as increases in professional fees from one-time deal costs associated with the acquisition of Sallyport and insurance expense due to higher FDIC insurance costs due to the Company’s asset and net income growth.

Income Tax Provision

In the fourth quarter of 2024, Northrim recorded $2.4 million in state and federal income tax expense for an effective tax rate of 17.8%, compared to $2.8 million, or 24.2% in the third quarter of 2024 and $1.7 million, or 20.7% in the fourth quarter a year ago. For the year, Northrim recorded $10.0 million in state and federal income tax expense in 2024 for an effective tax rate of 21.3%, compared to $6.2 million, or 19.7% in 2023. The decrease in the tax rate in the fourth quarter of 2024 as compared to the third quarter of 2024 and the fourth quarter a year ago is primarily the result of increased tax benefits related to the Company’s investment in low income housing tax credits and the purchase of renewable energy tax credits.

Community Banking

In the most recent deposit market share data from the FDIC, Northrim’s deposit market share in Alaska increased to 15.66% of Alaska’s total deposits as of June 30, 2024 compared to 15.04% of Alaska’s total deposits as of June 30, 2023. This represents 62 basis points of growth in market share percentage for Northrim during that period while, according to the FDIC, the total deposits in Alaska were up 2.3% during the same period. Northrim opened a branch in Kodiak in the first quarter of 2023, a loan production office in Homer in the second quarter of 2023, a permanent branch in Nome in the third quarter of 2023, and a branch in Homer in the first quarter of 2024. See below for further discussion regarding the Company’s deposit movement for the quarter.

Northrim is committed to meeting the needs of the diverse communities in which it operates. As a testament to that support, the Bank has branches in four regions of Alaska identified by the Federal Reserve as “distressed or underserved non-metropolitan middle-income geographies”.

Net interest income in the Community Banking segment totaled $27.6 million in the fourth quarter of 2024, compared to $25.9 million in the third quarter of 2024 and $24.2 million in the fourth quarter of 2023. Net interest income increased in the fourth quarter of 2024 as compared to the third quarter of 2024 and the fourth quarter a year ago mostly due to increased interest income on loans that was only partially offset by higher interest expense on deposits.

The following table provides highlights of the Community Banking segment of Northrim:


	Three Months Ended
(Dollars in thousands, except per share data)	December 31, 2024	September 30, 2024	June 30, 2024		March 31, 2024	December 31, 2023
Net interest income	$27,643	$25,928	$24,318		$24,215	$24,221
Provision (benefit) for credit losses	771	1,492	(184	)	197	885
Other operating income	2,535	3,507	2,450		2,468	2,741
Other operating expense	19,116	18,723	18,068		17,177	18,158
Income before provision for income taxes	10,291	9,220	8,884		9,309	7,919
Provision for income taxes	1,474	2,133	1,786		1,966	1,604
Net income Community Banking segment	$8,817	$7,087	$7,098		$7,343	$6,315
Weighted average shares outstanding, diluted	5,597,889	5,583,055	5,558,580		5,554,930	5,578,491
Diluted earnings per share	$1.58	$1.26	$1.27		$1.32	$1.14

	Year Ended
(Dollars in thousands, except per share data)	December 31, 2024	December 31, 2023
Net interest income	$102,104	$95,555
Provision for credit losses	2,276	3,842
Other operating income	10,960	9,130
Other operating expense	73,085	69,253
Income before provision for income taxes	37,703	31,590
Provision for income taxes	7,359	6,175
Net income Community Banking segment	$30,344	$25,415
Weighted average shares outstanding, diluted	5,583,983	5,661,460
Diluted earnings per share	$5.43	$4.49

Home Mortgage Lending

During the fourth quarter of 2024, mortgage loans funded for sale decreased to $162.5 million, of which 89% was for home purchases, compared to $210.0 million and 94% of loans funded for home purchases in the third quarter of 2024, and increased as compared to $79.7 million, of which 96% was for home purchases in the fourth quarter of 2023.

During the fourth quarter of 2024, the Bank purchased Residential Mortgage-originated mortgage loans to hold on the Bank’s balance sheet of $23.4 million of which roughly two-thirds were jumbos and one-third were mortgages for second homes, with a weighted average interest rate of 6.30%, down from $38.1 million and 6.59% in the third quarter of 2024, and down from $27.1 million and 7.05% in the fourth quarter of 2023. Mortgage loans funded for investment has increased net interest income in the Home Mortgage Lending segment. Net interest income contributed $3.3 million to total revenue in the fourth quarter of 2024, up from $2.9 million in the prior quarter, and up from $2.3 million in the fourth quarter a year ago.

The Arizona, Colorado, and the Pacific Northwest mortgage expansion markets were responsible for 19% of Residential Mortgage’s $186 million total production in the fourth quarter of 2024, 20% of the $248 million total production in the third quarter of 2024, and 11% of the $107 million in total production in the fourth quarter of 2023.

The net change in fair value of mortgage servicing rights increased mortgage banking income by $873,000 during the fourth quarter of 2024 compared to a decrease of $968,000 for the third quarter of 2024 and a decrease of $1.0 million for the fourth quarter of 2023. In the fourth quarter of 2024, the Bank purchased an Alaska Housing Finance Corporation (AHFC) servicing portfolio from another financial institution for $2.3 million. At December 31, 2024, this servicing portfolio was valued at $3.1 million resulting in a $750,000 increase in fair value. Mortgage servicing revenue increased to $2.8 million in the fourth quarter of 2024 from $2.6 million in the prior quarter and increased from $2.2 million in the fourth quarter of 2023 due to an increase in production of AHFC mortgages, which contribute to servicing revenues at origination. In the fourth quarter of 2024, the Company’s mortgage servicing portfolio increased to $294.1 million, which includes the purchase of the AHFC servicing portfolio of $235.6 million, $86.3 million in new mortgage loans, net of amortization and payoffs of $27.8 million as compared to a net increase of $64.8 million in the third quarter of 2024 and $62.4 million in the fourth quarter of 2023.

As of December 31, 2024, Northrim serviced 6,378 loans in its $1.46 billion home mortgage servicing portfolio, a 25% increase compared to the $1.17 billion serviced as of the end of the third quarter of 2024, and a 40% increase from the $1.04 billion serviced a year ago.

The following table provides highlights of the Home Mortgage Lending segment of Northrim:


	Three Months Ended
(Dollars in thousands, except per share data)	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Mortgage loan commitments	$32,299		$77,591		$88,006		$56,208		$22,926

Mortgage loans funded for sale	$162,530		$209,960		$152,339		$84,324		$79,742
Mortgage loans funded for investment	23,380		38,087		29,175		17,403		27,114
Total mortgage loans funded	$185,910		$248,047		$181,514		$101,727		$106,856
Mortgage loan refinances to total fundings	11	%	6	%	6	%	4	%	4	%
Mortgage loans serviced for others	$1,460,720		$1,166,585		$1,101,800		$1,060,007		$1,044,516

Net realized gains on mortgage loans sold	$3,747		$5,079		$3,188		$1,980		$1,462
Change in fair value of mortgage loan commitments, net	(665	)	60		391		386		(296	)
Total production revenue	3,082		5,139		3,579		2,366		1,166
Mortgage servicing revenue	2,847		2,583		2,164		1,561		2,180
Change in fair value of mortgage servicing rights:
Due to changes in model inputs of assumptions¹	1,372		(566	)	239		289		(707	)
Other²	(499	)	(402	)	(320	)	(314	)	(301	)
Total mortgage servicing revenue, net	3,720		1,615		2,083		1,536		1,172
Other mortgage banking revenue	238		293		222		129		99
Total mortgage banking income	$7,040		$7,047		$5,884		$4,031		$2,437

Net interest income	$3,280		$2,941		$2,775		$2,232		$2,276
Provision (benefit) for credit losses	305		571		64		(48	)	—
Mortgage banking income	7,040		7,047		5,884		4,031		2,437
Other operating expense	7,198		7,643		6,697		6,086		5,477
Income before provision for income taxes	2,817		1,774		1,898		225		(764	)
Provision for income taxes	842		497		532		63		(215	)
Net (loss) income Home Mortgage Lending segment	$1,975		$1,277		$1,366		$162		($549	)

Weighted average shares outstanding, diluted	5,597,889		5,583,055		5,558,580		5,554,930		5,769,415
Diluted (loss) earnings per share	$0.35		$0.23		$0.25		$0.03		($0.10	)
¹Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
²Represents changes due to collection/realization of expected cash flows over time.


	Year Ended
(Dollars in thousands, except per share data)	December 31, 2024		December 31, 2023
Mortgage loans funded for sale	$609,153		$376,154
Mortgage loans funded for investment	108,045		146,258
Total mortgage loans funded	$717,198		$522,412
Mortgage loan refinances to total fundings	7	%	4	%

Net realized gains on mortgage loans sold	$13,994		$7,828
Change in fair value of mortgage loan commitments, net	172		(102	)
Total production revenue	14,166		7,726
Mortgage servicing revenue	9,155		7,368
Change in fair value of mortgage servicing rights:
Due to changes in model inputs of assumptions¹	1,334		(922	)
Other²	(1,535	)	(1,765	)
Total mortgage servicing revenue, net	8,954		4,681
Other mortgage banking revenue	882		356
Total mortgage banking income	$24,002		$12,763

Net interest income	$11,228		$7,298
Provision for credit losses	892		—
Mortgage banking income	24,002		12,763
Other operating expense	27,624		23,497
Income before provision for income taxes	6,714		(3,436	)
Provision for income taxes	1,934		(943	)
Net (loss) income Home Mortgage Lending segment	$4,780		($2,493	)

Weighted average shares outstanding, diluted	5,583,983		5,661,460
Diluted (loss) earnings per share	$0.86		($0.44	)
¹Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
²Represents changes due to collection/realization of expected cash flows over time.

Specialty Finance

On October 31, 2024, the Company completed the acquisition of Sallyport Commercial Finance, LLC in an all cash transaction valued at approximately $53.9 million. Sallyport Commercial Finance, LLC is a leading provider of factoring, asset based lending and alternative working capital solutions to small and medium sized enterprises in the United States, Canada, and the United Kingdom. The Company determined that a new Specialty Finance segment was appropriate for the Company upon the completion of the acquisition. The Specialty Finance segment also includes Northrim Funding Services, a division of Northrim Bank that has offered factoring solutions to small businesses since 2004. The composition of revenues for the Specialty Finance segment are primarily purchased receivable income, but also include interest income and other fee income.

The acquisition of Sallyport included $1.13 million in one-time deal related costs which are reflected in other operating expenses for the fourth quarter and full year of 2024 in the tables below. Total pre-tax income for Sallyport for two months of operations, excluding transaction costs was $945,000.

The following table provides highlights of the Specialty Finance segment of Northrim:


	Three Months Ended
(Dollars in thousands, except per share data)	December 31, 2024		September 30, 2024	June 30, 2024	March 31, 2024	December 31, 2023
Purchased receivable income	$3,526		$1,033	$1,243	$1,345	$1,307
Other operating income	(68	)	—	—	—	—
Interest income	407		158	170	212	235
Total revenue	3,865		1,191	1,413	1,557	1,542
Provision for credit losses	125		—	—	—	—
Other operating expense	3,063		362	429	374	358
Interest expense	489		185	210	212	—
Total expense	3,677		547	639	586	358
Income before provision for income taxes	188		644	774	971	1,184
Provision for income taxes	53		183	218	276	337
Net income Specialty Finance segment	$135		$461	$556	$695	$847
Weighted average shares outstanding, diluted	5,597,889		5,583,055	5,558,580	5,554,930	5,578,491
Diluted earnings per share	$0.02		$0.08	$0.10	$0.13	$0.15

	Year Ended
(Dollars in thousands, except per share data)	December 31, 2024		December 31, 2023
Purchased receivable income	$7,147		$4,482
Other operating income	(68	)	—
Interest income	947		403
Total revenue	8,026		4,885
Provision for credit losses	125		—
Other operating expense	4,228		1,431
Interest expense	1,096		—
Total expense	5,449		1,431
Income before provision for income taxes	2,577		3,454
Provision for income taxes	730		982
Net income Specialty Finance segment	$1,847		$2,472
Weighted average shares outstanding, diluted	5,583,983		5,661,460
Diluted earnings per share	$0.33		$0.44

Balance Sheet Review

Northrim’s total assets were $3.04 billion at December 31, 2024, up 3% from the preceding quarter and up 8% from a year ago. Northrim’s loan-to-deposit ratio was 79% at December 31, 2024, up from 76% at September 30, 2024, and 72% at December 31, 2023.

At December 31, 2024, our liquid assets and investments and loans maturing within one year were $1.01 billion and our funds available for borrowing under our existing lines of credit were $566.8 million. Given these sources of liquidity and our expectations for customer demands for cash and for our operating cash needs, we believe our sources of liquidity to be sufficient for the foreseeable future.

Average interest-earning assets were $2.79 billion in the fourth quarter of 2024, up 4% from $2.67 billion in the third quarter of 2024 and up 7% from $2.61 billion in the fourth quarter a year ago. The average yield on interest-earning assets was 6.02% in the fourth quarter of 2024, up from 5.92% in the preceding quarter and 5.51% in the fourth quarter a year ago.

Average investment securities decreased to $565.8 million in the fourth quarter of 2024, compared to $619.0 million in the third quarter of 2024 and $690.7 million in the fourth quarter a year ago. The average net tax equivalent yield on the securities portfolio was 2.84% for the fourth quarter of 2024, up from 2.80% in the preceding quarter and up from 2.48% in the year ago quarter. The average estimated duration of the investment portfolio at December 31, 2024, was approximately 2.4 years down from approximately 2.8 years a year ago. As of December 31, 2024, $79.0 million of available for sale securities are scheduled to mature in the next six months, $55.8 million are scheduled to mature in six months to one year, and $189.3 million are scheduled to mature in the following year, representing a total of $324.0 million or 12% of earning assets that are scheduled to mature in the next 24 months.

Total unrealized losses, net of tax, on available for sale securities increased by $678,000 in the fourth quarter of 2024 as compared to the prior quarter, and decreased by $9.1 million compared to the fourth quarter of 2023, resulting in a total unrealized loss of $8.3 million at December 31, 2024 compared to $7.6 million at September 30, 2024 and $17.4 million a year ago. The average maturity of the available for sale securities with the majority of the unrealized loss is 1.5 years at the end of 2024. Total unrealized losses on held to maturity securities were $1.0 million at December 31, 2024, compared to $2.1 million at September 30, 2024, and $3.3 million a year ago.

Average interest bearing deposits in other banks increased to $72.2 million in the fourth quarter from $28.4 million in the third quarter of 2024 due to higher deposit balances and maturing portfolio investments. Average interest bearing deposits in other banks decreased in the fourth quarter of this year compared to $126.2 million in the fourth quarter of 2023 as cash was used to fund the growing loan portfolio.

Portfolio loans were $2.13 billion at December 31, 2024, up 6% from the preceding quarter and up 19% from a year ago. Portfolio loans, excluding consumer mortgage loans, were $1.86 million at December 31, 2024, up 6% or $99.9 million from $1.76 billion in the preceding quarter and up 14% from a year ago. This increase was diversified throughout the loan portfolio including commercial real estate nonowner-occupied and multi-family loans increasing by $35.1 million, construction loans increasing by $28.7 million, commercial loans increasing $24.9 million, and commercial real estate owner-occupied loans increasing $7.2 million from the preceding quarter. Average portfolio loans in the fourth quarter of 2024 were $2.07 billion, which was up 7% from the preceding quarter and up 18% from a year ago. Yields on average portfolio loans in the fourth quarter of 2024 increased slightly to 6.93% from 6.91% in the third quarter of 2024 and increased from 6.55% in the fourth quarter of 2023. The increase in the yield on portfolio loans in the fourth quarter of 2024 compared to the third quarter of 2024 and the fourth quarter a year ago is primarily due to loan repricing due to the increases in interest rates and new loans booked at higher rates due to changes in the interest rate environment. The yield on new portfolio loans, excluding consumer mortgage loans, was 7.40% in the fourth quarter of 2024 as compared to 7.43% in the third quarter of 2024 and 8.07% in the fourth quarter of 2023.

Alaskans continue to account for substantially all of Northrim’s deposit base. Total deposits were $2.68 billion at December 31, 2024, up 2% from $2.63 billion at September 30, 2024, and up 8% from $2.49 billion a year ago. “Our bankers are working hard to continue to bring over new relationships to the Bank, which is helping to magnify normal increases in deposit balances from our customers’ business cycles,” said Ballard. At December 31, 2024, 73% of total deposits were held in business accounts and 27% of deposit balances were held in consumer accounts. Northrim had approximately 34,000 deposit customers with an average balance of $61,000 as of December 31, 2024. Northrim had 26 customers with balances over $10 million as of December 31, 2024, which accounted for $612.9 million, or 24%, of total deposits. Demand deposits decreased by 8% from the prior quarter and decreased 6% year-over-year to $706.2 million at December 31, 2024. Demand deposits decreased to 27% of total deposits at December 31, 2024 compared to 29% at September 30, 2024 and 31% of total deposits at December 31, 2023. Average interest-bearing deposits were up 9% to $1.95 billion with an average cost of 2.15% in the fourth quarter of 2024, compared to $1.80 billion and an average cost of 2.24% in the third quarter of 2024, and up 13% compared to $1.72 billion and an average cost of 2.00% in the fourth quarter of 2023. Uninsured deposits totaled $1.08 billion or 40% of total deposits as of December 31, 2024 compared to $1.1 billion or 46% of total deposits as of December 31, 2022. As interest rates continued to increase in 2022, Northrim has taken a proactive, targeted approach to increase deposit rates.

Shareholders’ equity was $267.1 million, or $48.41 book value per share, at December 31, 2024, compared to $260.1 million, or $47.27 book value per share, at September 30, 2024 and $234.7 million, or $42.57 book value per share, a year ago. Tangible book value per share^* was $39.17 at December 31, 2024, compared to $44.36 at September 30, 2024, and $39.68 per share a year ago. The increase in shareholders’ equity in the fourth quarter of 2024 as compared to the third quarter of 2024 was largely the result of earnings of $10.9 million which was partially offset by dividends paid of $3.4 million and a decrease in the fair value of the available for sale securities portfolio, which decreased $678,000, net of tax. The Company did not purchase any shares of common stock in the fourth quarter of 2024 and had 110,000 shares remaining under the current share repurchase program as of December 31, 2024. Tangible common equity to tangible assets^* was 7.23% as of December 31, 2024, compared to 8.28% as of September 30, 2024 and 7.84% as of December 31, 2023. The decrease in tangible common equity to tangible assets* was primarily due to $35.0 million of Goodwill booked as part of the acquisition of Sallyport. Northrim continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with Tier 1 Capital to Risk Adjusted Assets of 9.76% at December 31, 2024, compared to 11.53% at September 30, 2024, and 11.43% at December 31, 2023.

Asset Quality

Northrim believes it has a consistent lending approach throughout the economic cycles, which emphasizes appropriate loan-to-value ratios, adequate debt coverage ratios, and competent management.

Nonperforming assets (“NPAs”) net of government guarantees were $11.6 million at December 31, 2024, up from $5.3 million at September 30, 2024 and from $5.8 million a year ago. Of the NPAs at December 31, 2024, $3.0 million, or 26% are nonaccrual loans related to three commercial relationships, $2.8 million, or 24% is related to a Sallyport nonaccrual loan, and $3.3 million, or 28% is related to one purchased receivable relationship.

Net adversely classified loans were $9.6 million at December 31, 2024, as compared to $6.5 million at September 30, 2024, and $7.1 million a year ago. Adversely classified loans are loans that Northrim has classified as substandard, doubtful, and loss, net of government guarantees. Net loan recoveries were $51,000 in the fourth quarter of 2024, compared to net loan recoveries of $96,000 in the third quarter of 2024, and net loan charge-offs of $96,000 in the fourth quarter of 2023.

Northrim had $138.0 million, or 6% of total portfolio loans, in the Healthcare sector; $117.0 million, or 5% of portfolio loans, in the Tourism sector; $104.3 million, or 5% in the Accommodations sector; $87.4 million, or 4% in Retail loans; $84.6 million, or 4% of portfolio loans, in the Aviation (non-tourism) sector; $76.5 million, or 4% in the Fishing sector; and $55.1 million, or 3% in the Restaurants and Breweries sector as of December 31, 2024.

Northrim estimates that $99.7 million, or approximately 5% of portfolio loans, had direct exposure to the oil and gas industry in Alaska, as of December 31, 2024, and $1.6 million of these loans are adversely classified. As of December 31, 2024, Northrim has an additional $45.8 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and none of these unfunded commitments are considered to be adversely classified loans. Northrim defines direct exposure to the oil and gas sector as loans to borrowers that provide oilfield services and other companies that have been identified as significantly reliant upon activity in Alaska related to the oil and gas industry, such as lodging, equipment rental, transportation and other logistics services specific to this industry.

About Northrim BanCorp

Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 20 branches throughout the state and differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. The Bank has two wholly-owned subsidiaries, Sallyport Commercial Finance, LLC, a specialty finance company and Residential Mortgage Holding Company, LLC, a regional home mortgage company. Pacific Wealth Advisors, LLC is an affiliated company.

http://www.northrim.com

Forward-Looking Statement
This release may contain “forward-looking statements” as that term is defined for purposes of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are, in effect, management’s attempt to predict future events, and thus are subject to various risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy, management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim and its management are intended to help identify forward-looking statements. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements, are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include: descriptions of Northrim’s and Sallyport’s financial condition, results of operations, asset based lending volumes, asset and credit quality trends and profitability and statements about the expected financial benefits and other effects of the acquisition of Sallyport by Northrim Bank; expected cost savings, synergies and other financial benefits from the acquisition of Sallyport by Northrim Bank might not be realized within the expected time frames and costs or difficulties relating to integration matters might be greater than expected; the ability of Northrim and Sallyport to execute their respective business plans; potential further increases in interest rates; the value of securities held in our investment portfolio; the impact of the results of government initiatives on the regulatory landscape, natural resource extraction industries, and capital markets; the impact of declines in the value of commercial and residential real estate markets, high unemployment rates, inflationary pressures and slowdowns in economic growth; changes in banking regulation or actions by bank regulators; inflation, supply-chain constraints, and potential geopolitical instability, including the wars in Ukraine and the Middle East; financial stress on borrowers (consumers and businesses) as a result of higher rates or an uncertain economic environment; the general condition of, and changes in, the Alaska economy; our ability to maintain or expand our market share or net interest margin; the sufficiency of our provision for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to current expected credit losses accounting guidance; our ability to maintain asset quality; our ability to implement our marketing and growth strategies; our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking,” and identity theft; disease outbreaks; and our ability to execute our business plan. Further, actual results may be affected by competition on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and from time to time are disclosed in our other filings with the Securities and Exchange Commission. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations. These forward-looking statements are made only as of the date of this release, and Northrim does not undertake any obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.

References:

https://www.bea.gov/

http://almis.labor.state.ak.us/

http://www.tax.alaska.gov/programs/oil/prevailing/ans.aspx

http://www.tax.state.ak.us/

http://www.mba.org

https://www.alaskarealestate.com/MLSMember/RealEstateStatistics.aspx

https://www.capitaliq.spglobal.com/web/client?auth=inherit&overridecdc=1&#markets/indexFinancials


Income Statement
(Dollars in thousands, except per share data)	Three Months Ended					Year-to-date
(Unaudited)	December 31,		September 30,	December 31,		December 31,		December 31,
	2024		2024	2023		2024		2023
Interest Income:
Interest and fees on loans	$37,059		$34,863	$29,508		$134,739		$108,612
Interest on investments	3,844		4,164	4,677		16,838		18,695
Interest on deposits in banks	883		389	1,743		2,342		4,644
Total interest income	41,786		39,416	35,928		153,919		131,951
Interest Expense:
Interest expense on deposits	10,568		10,123	8,676		39,347		26,511
Interest expense on borrowings	377		451	520		1,389		2,184
Total interest expense	10,945		10,574	9,196		40,736		28,695
Net interest income	30,841		28,842	26,732		113,183		103,256

Provision for credit losses	1,201		2,063	885		3,293		3,842
Net interest income after provision for
loan losses	29,640		26,779	25,847		109,890		99,414

Other Operating Income:
Mortgage banking income	7,040		7,047	2,437		24,002		12,763
Purchased receivable income	3,526		1,033	1,307		7,146		4,482
Bankcard fees	1,148		1,196	946		4,366		3,862
Service charges on deposit accounts	622		605	532		2,348		2,044
Gain on sale of securities	112		—	—		112		—
Unrealized gain (loss) on marketable equity securities	(364	)	576	565		465		120
Other income	949		1,130	698		3,602		3,104
Total other operating income	13,033		11,587	6,485		42,041		26,375

Other Operating Expense:
Salaries and other personnel expense	18,254		17,549	15,417		67,847		61,741
Data processing expense	3,108		2,618	2,500		10,986		9,821
Occupancy expense	1,893		1,911	1,783		7,609		7,394
Professional and outside services	1,967		903	802		4,351		3,128
Marketing expense	965		860	933		3,028		2,929
Insurance expense	894		596	675		2,961		2,519
OREO expense, net rental income and gains on sale	2		2	(28	)	(385	)	(794	)
Intangible asset amortization expense	—		—	6		—		17
Other operating expense	2,294		2,289	1,905		8,540		7,426
Total other operating expense	29,377		26,728	23,993		104,937		94,181

Income before provision for income taxes	13,296		11,638	8,339		46,994		31,608
Provision for income taxes	2,369		2,813	1,726		10,023		6,214
Net income	$10,927		$8,825	$6,613		$36,971		$25,394

Basic EPS	$1.99		$1.60	$1.19		$6.72		$4.53
Diluted EPS	$1.95		$1.57	$1.19		$6.62		$4.49
Weighted average common shares outstanding, basic	5,509,078		5,501,943	5,513,041		5,502,797		5,601,471
Weighted average shares outstanding, diluted	5,597,889		5,583,055	5,578,491		5,583,983		5,661,460

Balance Sheet
(Dollars in thousands)
(Unaudited)	December 31,		September 30,		December 31,
	2024		2024		2023

Assets:
Cash and due from banks	$42,101		$42,805		$27,457
Interest bearing deposits in other banks	20,635		60,071		91,073
Investment securities available for sale, at fair value	478,617		545,210		637,936
Investment securities held to maturity	36,750		36,750		36,750
Marketable equity securities, at fair value	8,719		12,957		13,153
Investment in Federal Home Loan Bank stock	5,331		4,318		2,980
Loans held for sale	59,957		97,937		31,974
Portfolio loans	2,129,263		2,007,565		1,789,497
Allowance for credit losses, loans	(22,020	)	(19,528	)	(17,270	)
Net portfolio loans	2,107,243		1,988,037		1,772,227
Purchased receivables, net	74,078		23,564		36,842
Mortgage servicing rights, at fair value	26,439		21,570		19,564
Premises and equipment, net	37,757		39,625		40,693
Operating lease right-of-use assets	7,455		7,616		9,092
Goodwill and intangible assets	50,968		15,967		15,967
Other assets	85,819		66,965		71,789
Total assets	$3,041,869		$2,963,392		$2,807,497

Liabilities:
Demand deposits	$706,225		$763,595		$749,683
Interest-bearing demand	1,108,404		979,238		927,291
Savings deposits	250,900		245,043		255,338
Money market deposits	196,290		201,821		221,492
Time deposits	418,370		435,870		331,251
Total deposits	2,680,189		2,625,567		2,485,055
Other borrowings	23,045		13,354		13,675
Junior subordinated debentures	10,310		10,310		10,310
Operating lease liabilities	7,487		7,635		9,092
Other liabilities	53,722		46,476		54,647
Total liabilities	2,774,753		2,703,342		2,572,779

Shareholders’ Equity:
Total shareholders’ equity	267,116		260,050		234,718
Total liabilities and shareholders’ equity	$3,041,869		$2,963,392		$2,807,497

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Composition of Portfolio Loans
	December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024				December 31, 2023
	Balance		% of total		Balance		% of total		Balance		% of total		Balance		% of total		Balance		% of total
Commercial loans	$518,148		24	%	$492,414		24	%	$495,781		26	%	$475,220		26	%	$486,057		27	%
Commercial real estate:
Owner occupied properties	420,060		20	%	412,827		20	%	383,832		20	%	372,507		20	%	368,357		20	%
Nonowner occupied and multifamily properties	619,431		29	%	584,302		31	%	551,130		30	%	529,904		30	%	519,115		30	%
Residential real estate:
1-4 family properties secured by first liens	270,535		13	%	248,514		12	%	222,026		12	%	218,552		12	%	203,534		11	%
1-4 family properties secured by junior liens & revolving secured by first liens	48,857		2	%	45,262		2	%	41,258		2	%	35,460		2	%	33,783		2	%
1-4 family construction	39,789		2	%	39,794		2	%	29,510		2	%	27,751		2	%	31,239		2	%
Construction loans	214,068		10	%	185,362		9	%	154,009		8	%	153,537		8	%	149,788		8	%
Consumer loans	7,562		—	%	7,836		—	%	6,679		—	%	6,444		—	%	6,180		—	%
Subtotal	2,138,450				2,016,311				1,884,225				1,819,375				1,798,053
Unearned loan fees, net	(9,187	)			(8,746	)			(8,318	)			(8,240	)			(8,556	)
Total portfolio loans	$2,129,263				$2,007,565				$1,875,907				$1,811,135				$1,789,497

Composition of Deposits
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
	Balance	% of total		Balance	% of total		Balance	% of total		Balance	% of total		Balance	% of total
Demand deposits	$706,225	27	%	$763,595	29	%	$704,471	29	%	$714,244	29	%	$749,683	31	%
Interest-bearing demand	1,108,404	41	%	979,238	37	%	906,010	36	%	889,581	37	%	927,291	37	%
Savings deposits	250,900	9	%	245,043	9	%	238,156	10	%	246,902	10	%	255,338	10	%
Money market deposits	196,290	7	%	204,821	8	%	195,159	8	%	209,785	9	%	221,492	9	%
Time deposits	418,370	16	%	435,870	17	%	420,010	17	%	373,571	15	%	331,251	13	%
Total deposits	$2,680,189			$2,628,567			$2,463,806			$2,434,083			$2,485,055

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Asset Quality		December 31,		September 30,		December 31,
		2024		2024		2023
	Nonaccrual loans	$7,516		$4,944		$6,069
	Loans 90 days past due and accruing	17		17		—
	Total nonperforming loans	7,533		4,961		6,069
	Nonperforming loans guaranteed by government	—		—		(1,067	)
	Net nonperforming loans	7,533		4,961		5,002
	Repossessed assets	297		297		—
	Nonperforming purchased receivables	3,768		—		808
	Net nonperforming assets	$11,598		$5,258		$5,810
	Nonperforming loans, net of government guarantees / portfolio loans	0.35	%	0.25	%	0.28	%
	Nonperforming loans, net of government guarantees / portfolio loans, net of government guarantees	0.38	%	0.26	%	0.30	%
	Nonperforming assets, net of government guarantees / total assets	0.38	%	0.18	%	0.21	%
	Nonperforming assets, net of government guarantees / total assets net of government guarantees	0.40	%	0.19	%	0.21	%

	Adversely classified loans, net of government guarantees	$9,636		$6,503		$7,057
	Special mention loans, net of government guarantees	$19,769		$9,641		$6,580
	Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans	0.03	%	0.08	%	0.03	%
	Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans, net of government guarantees	0.03	%	0.09	%	0.03	%

	Allowance for credit losses – loans / portfolio loans	1.03	%	0.97	%	0.97	%
	Allowance for credit losses – loans / portfolio loans, net of government guarantees	1.10	%	1.04	%	1.02	%
	Allowance for credit losses – loans / nonperforming loans, net of government guarantees	292	%	394	%	345	%

	Allowance for credit losses – purchased receivables / purchased receivables	4.69	%	—	%	—	%
	Allowance for credit losses – purchased receivables / nonperforming purchased receivables	97	%	—	%	—	%

	Gross loan charge-offs for the quarter	$149		$15		$281
	Gross loan recoveries for the quarter	($200	)	($111	)	($185	)
	Net loan (recoveries) charge-offs for the quarter	($51	)	($96	)	$96
	Net loan (recoveries) charge-offs year-to-date	($215	)	($164	)	($38	)
	Net loan (recoveries) charge-offs for the quarter / average loans, for the quarter	0.00	%	0.00	%	0.01	%
	Net loan (recoveries) charge-offs year-to-date / average loans, year-to-date annualized	(0.01	)%	(0.01	)%	0.00	%

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Average Balances, Yields, and Rates
	Three Months Ended
	December 31, 2024				September 30, 2024				December 31, 2023
			Average				Average				Average
	Average		Tax Equivalent		Average		Tax Equivalent		Average		Tax Equivalent
	Balance		Yield/Rate		Balance		Yield/Rate		Balance		Yield/Rate
Assets
Interest bearing deposits in other banks	$72,212		4.72	%	$28,409		5.28	%	$126,174		5.40	%
Portfolio investments	565,785		2.84	%	619,012		2.80	%	690,659		2.48	%
Loans held for sale	83,304		5.97	%	93,689		6.20	%	45,732		6.55	%
Portfolio loans	2,066,216		6.93	%	1,933,181		6.91	%	1,749,732		6.55	%
Total interest-earning assets	2,787,517		6.02	%	2,674,291		5.92	%	2,612,297		5.51	%
Nonearning assets	251,364				196,266				214,934
Total assets	$3,038,881				$2,870,557				$2,827,231

Liabilities and Shareholders’ Equity
Interest-bearing deposits	$1,954,495		2.15	%	$1,796,107		2.24	%	$1,724,409		2.00	%
Borrowings	29,251		3.95	%	43,555		4.07	%	47,964		4.25	%
Total interest-bearing liabilities	1,983,746		2.18	%	1,839,662		2.29	%	1,772,373		2.06	%

Noninterest-bearing demand deposits	738,911				722,000				760,566
Other liabilities	49,815				52,387				63,321
Shareholders’ equity	266,409				256,508				230,971
Total liabilities and shareholders’ equity	$3,038,881				$2,870,557				$2,827,231
Net spread			3.84	%			3.63	%			3.45	%
NIM			4.41	%			4.29	%			4.06	%
NIMTE^*			4.47	%			4.35	%			4.12	%
Cost of funds			1.59	%			1.64	%			1.44	%
Average portfolio loans to average interest-earning assets	74.12	%			72.29	%			66.98	%
Average portfolio loans to average total deposits	76.71	%			76.77	%			70.41	%
Average non-interest deposits to average total deposits	27.43	%			28.67	%			30.61	%
Average interest-earning assets to average interest-bearing liabilities	140.52	%			145.37	%			147.39	%

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Average Balances, Yields, and Rates
	Year-to-date
	December 31, 2024				December 31, 2023
			Average				Average
	Average		Tax Equivalent		Average		Tax Equivalent
	Balance		Yield/Rate		Balance		Yield/Rate
Assets
Interest bearing deposits in other banks	$44,913		5.09	%	$91,161		5.02	%
Portfolio investments	623,756		2.82	%	715,367		2.43	%
Loans held for sale	68,790		6.08	%	41,769		6.19	%
Portfolio loans	1,910,156		6.87	%	1,643,943		6.49	%
Total interest-earning assets	2,647,615		5.86	%	2,492,240		5.36	%
Nonearning assets	213,397				198,107
Total assets	$2,861,012				$2,690,347

Liabilities and Shareholders’ Equity
Interest-bearing deposits	$1,802,286		2.18	%	$1,614,386		1.64	%
Borrowings	33,799		3.81	%	51,038		4.24	%
Total interest-bearing liabilities	1,836,085		2.21	%	1,665,424		1.72	%

Noninterest-bearing demand deposits	718,163				749,859
Other liabilities	55,265				47,820
Shareholders’ equity	251,499				227,244
Total liabilities and shareholders’ equity	$2,861,012				$2,690,347
Net spread			3.65	%			3.64	%
NIM			4.28	%			4.14	%
NIMTE^*			4.33	%			4.21	%
Cost of funds			1.59	%			1.19	%
Average portfolio loans to average interest-earning assets	72.15	%			65.96	%
Average portfolio loans to average total deposits	75.79	%			69.53	%
Average non-interest deposits to average total deposits	28.49	%			31.72	%
Average interest-earning assets to average interest-bearing liabilities	144.20	%			149.65	%

Additional Financial Information
(Dollars in thousands, except per share data)
(Unaudited)

Capital Data (At quarter end)
	December 31, 2024		September 30, 2024		December 31, 2023
Book value per share	$48.41		$47.27		$42.57
Tangible book value per share^*	$39.17		$44.36		$39.68
Total shareholders’ equity/Total assets	8.78	%	8.78	%	8.36	%
Tangible common equity/Tangible assets^*	7.23	%	8.28	%	7.84	%
Tier 1 capital / Risk adjusted assets	9.76	%	11.53	%	11.43	%
Total capital / Risk adjusted assets	10.94	%	12.50	%	12.35	%
Tier 1 capital / Average assets	7.68	%	9.08	%	8.72	%
Common shares outstanding	5,518,210		5,501,943		5,513,459
Unrealized gain on AFS debt securities, net of income taxes	($8,295	)	($7,617	)	($17,415	)
Unrealized (loss) on derivatives and hedging activities, net of income taxes	$1,272		$863		$978

Profitability Ratios
	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
For the quarter:
NIM	4.41	%	4.29	%	4.24	%	4.16	%	4.06	%
NIMTE^*	4.47	%	4.35	%	4.30	%	4.22	%	4.12	%
Efficiency ratio	66.96	%	66.11	%	68.78	%	68.93	%	72.21	%
Return on average assets	1.43	%	1.22	%	1.31	%	1.19	%	0.93	%
Return on average equity	16.32	%	13.69	%	14.84	%	13.84	%	11.36	%

	December 31, 2024		December 31, 2023
Year-to-date:
NIM	4.28	%	4.14	%
NIMTE^*	4.33	%	4.21	%
Efficiency ratio	67.60	%	72.64	%
Return on average assets	1.29	%	0.94	%
Return on average equity	14.70	%	11.17	%

*Non-GAAP Financial Measures
(Dollars and shares in thousands, except per share data)
(Unaudited)

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although we believe these non-GAAP financial measures are frequently used by stakeholders in the evaluation of the Company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP.

Net interest margin on a tax equivalent basis

Net interest margin on a tax equivalent basis (“NIMTE”) is a non-GAAP performance measurement in which interest income on non-taxable investments and loans is presented on a tax equivalent basis using a combined federal and state statutory rate of 28.43% in both 2023 and 2022. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of NIMTE to net interest margin.


	Three Months Ended
	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Net interest income	$30,841		$28,842		$27,053		$26,447		$26,732
Divided by average interest-bearing assets	2,787,517		2,674,291		2,568,266		2,558,558		2,612,297
Net interest margin (“NIM”)²	4.41	%	4.29	%	4.24	%	4.16	%	4.06	%

Net interest income	$30,841		$28,842		$27,053		$26,447		$26,732
Plus: reduction in tax expense related to tax-exempt interest income	379		385		378		379		374
	$31,220		$29,227		$27,431		$26,826		$27,106
Divided by average interest-bearing assets	2,787,517		2,674,291		2,568,266		2,558,558		2,612,297
NIMTE²	4.47	%	4.35	%	4.30	%	4.22	%	4.12	%

	Year-to-date
	December 31, 2024		December 31, 2023
Net interest income	$113,183		$103,256
Divided by average interest-bearing assets	2,647,615		2,492,240
Net interest margin (“NIM”)³	4.28	%	4.14	%

Net interest income	$113,183		$103,256
Plus: reduction in tax expense related to tax-exempt interest income	1,521		1,576
	$114,704		$104,832
Divided by average interest-bearing assets	2,647,615		2,492,240
NIMTE³	4.33	%	4.21	%

²Calculated using actual days in the quarter divided by 366 for the quarters ended in 2024 and 365 for the quarters ended in 2023, respectively.

³Calculated using actual days in the year divided by 366 for year-to-date period in 2024 and 365 for year-to-date period in 2023, respectively.

*Non-GAAP Financial Measures

(Dollars and shares in thousands, except per share data)
(Unaudited)

Tangible Book Value

Tangible book value is a non-GAAP measure defined as shareholders’ equity, less intangible assets, divided by common shares outstanding. The most comparable GAAP measure is book value per share and the following table sets forth the reconciliation of tangible book value per share and book value per share.


	December 31, 2024	September 30, 2024	June 30, 2024	March 31, 2024	December 31, 2023

Total shareholders’ equity	$267,116	$260,050	$247,200	$239,327	$234,718
Divided by common shares outstanding	5,518	5,502	5,502	5,500	5,513
Book value per share	$48.41	$47.26	$44.93	$43.52	$42.57

	December 31, 2024	September 30, 2024	June 30, 2024	March 31, 2024	December 31, 2023

Total shareholders’ equity	$267,116	$260,050	$247,200	$239,327	$234,718
Less: goodwill and intangible assets	50,968	15,967	15,967	15,967	15,967
	$216,148	$244,083	$231,233	$223,360	$218,751
Divided by common shares outstanding	5,518	5,502	5,502	5,500	5,513
Tangible book value per share	$39.17	$44.36	$43.52	$40.61	$39.68

Tangible Common Equity to Tangible Assets

Tangible common equity to tangible assets is a non-GAAP ratio that represents total equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. The most comparable GAAP measure of shareholders’ equity to total assets is calculated by dividing total shareholders’ equity by total assets and the following table sets forth the reconciliation of tangible common equity to tangible assets and shareholders’ equity to total assets.


Northrim BanCorp, Inc.	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023

Total shareholders’ equity	$267,116		$260,050		$247,200		$239,327		$234,718
Total assets	3,041,869		2,963,392		2,821,668		2,759,560		2,807,497
Total shareholders’ equity to total assets	8.78	%	8.78	%	8.76	%	8.67	%	8.36	%

Northrim BanCorp, Inc.	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Total shareholders’ equity	$267,116		$260,050		$247,200		$239,327		$234,718
Less: goodwill and other intangible assets, net	50,968		15,967		15,967		15,967		15,967
Tangible common shareholders’ equity	$216,148		$244,083		$231,233		$223,360		$218,751

Total assets	$3,041,869		$2,963,392		$2,821,668		$2,759,560		$2,807,497
Less: goodwill and other intangible assets, net	50,968		15,967		15,967		15,967		15,967
Tangible assets	$2,990,901		$2,947,425		$2,805,701		$2,743,593		$2,791,530
Tangible common equity ratio	7.23	%	8.28	%	8.24	%	8.14	%	7.84	%

Note Transmitted on GlobeNewswire on January 24, 2025, at 12:15 pm Alaska Standard Time.


Contact:	Mike Huston, President, CEO, and COO
	(907) 261-8750
	Jed Ballard, Chief Financial Officer
	(907) 261-3539

The MIL Network –

January 25, 2025

MIL-OSI: CVR Energy Commences Planned Turnaround at Coffeyville Refinery

Source: GlobeNewswire (MIL-OSI)

SUGAR LAND, Texas, Jan. 24, 2025 (GLOBE NEWSWIRE) — CVR Energy, Inc. (NYSE: CVI, “CVR Energy” or the “Company”) today announced that it has commenced its planned turnaround at the Coffeyville, Kansas, refinery operated by one of its subsidiaries following damage sustained to its Naphtha Hydrotreater on January 21, 2025, during freezing weather conditions. The Company intends to provide further updates regarding this turnaround during its next earnings conference call.

Forward-Looking Statements
This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding its Naphtha Hydrotreater and turnaround at the Coffeyville refinery including the cost, timing, duration and outcome thereof. You can generally identify forward-looking statements by our use of forward-looking terminology such as “outlook,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “explore,” “evaluate,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “seek,” “should,” “upcoming,” “before,” “future,” or “will,” or the negative thereof or other variations thereon or comparable terminology. These forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. Investors are cautioned that various factors may affect these forward-looking statements, including (among others): impacts of plant outages and weather conditions and events; and other risks. For additional discussion of risk factors which may affect our results, please see the risk factors and other disclosures included in our most recent Annual Report on Form 10-K, any subsequently filed Quarterly Reports on Form 10-Q and our other Securities and Exchange Commission (“SEC”) filings. These and other risks may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this news release are made only as of the date hereof. CVR Energy disclaims any intention or obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.

About CVR Energy, Inc.
Headquartered in Sugar Land, Texas, CVR Energy is a diversified holding company primarily engaged in the renewables, petroleum refining and marketing business as well as in the nitrogen fertilizer manufacturing business through its interest in CVR Partners. CVR Energy subsidiaries serve as the general partner and own 37 percent of the common units of CVR Partners.

Investors and others should note that CVR Energy may announce material information using SEC filings, press releases, public conference calls, webcasts and the Investor Relations page of its website. CVR Energy may use these channels to distribute material information about the Company and to communicate important information about the Company, corporate initiatives and other matters. Information that CVR Energy posts on its website could be deemed material; therefore, CVR Energy encourages investors, the media, its customers, business partners and others interested in the Company to review the information posted on its website.

Contact Information:

Investor Relations
Richard Roberts
(281) 207-3205
InvestorRelations@CVREnergy.com

Media Relations
Brandee Stephens
(281) 207-3516
MediaRelations@CVREnergy.com

The MIL Network –

January 25, 2025

MIL-OSI USA: Pfizer Agrees to Pay Nearly 60M to Resolve False Claims Allegations Relating to Improper Physician Payments by Subsidiary

Source: US State of Vermont

Note: View the settlement here.

Pharmaceutical company Pfizer Inc. (Pfizer), on behalf of its wholly-owned subsidiary Biohaven Pharmaceutical Holding Company Ltd. (Biohaven), has agreed to pay $59,746,277 to resolve allegations that, prior to Pfizer’s acquisition of the company, Biohaven knowingly caused the submission of false claims to Medicare and other federal health care programs by paying kickbacks to health care providers to induce prescriptions of Biohaven’s drug Nurtec ODT.

“Through this settlement and others, the government has demonstrated its commitment to ensuring that drug companies do not use kickbacks to influence physician prescribing,” said Acting Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The department will use every tool at its disposal to prevent pharmaceutical manufacturers from undermining the objectivity of treatment decisions by health care providers.”

The anti‑kickback statute prohibits offering or paying anything of value to induce the referral of items or services covered by Medicare, Medicaid, TRICARE, and other federal health care programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives.

The settlement announced today resolves allegations that from March 1, 2020, through Sept. 30, 2022, Biohaven paid improper remuneration, including in the form of speaker honoraria and meals at high end restaurants, to health care professionals to induce them to prescribe the migraine medication Nurtec ODT in violation of the anti-kickback statute. The United States alleged that Biohaven selected certain health care providers to be part of the Nurtec speaker bureau and provided them paid speaking opportunities with the intent that the speaker honoraria and meals would induce them to prescribe Nurtec ODT. The government further alleged that certain prescribers who attended multiple programs on the same topic received no educational benefit from attending repeat programs and that certain Biohaven speaker programs were attended by individuals with no educational need to attend, such as the speakers’ spouses, family members, or friends, or colleagues from the speakers’ own medical practice. The United States contends that this conduct persisted until October 2022, when Pfizer acquired Biohaven and terminated the Nurtec speaker programs.

“Patients deserve to know that their doctor is prescribing medications based on their doctor’s medical judgment, and not as a result of financial incentives from pharmaceutical companies,” said U.S. Attorney Trini E. Ross for the Western District of New York. “This settlement reflects our commitment to hold those who violate the laws accountable, regardless of their status or prestige.”

“Violations of the anti-kickback statute, such as those alleged in this settlement, can unduly influence prescribers and negatively impact taxpayer-funded health care,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to collaborate with law enforcement partners to ensure that providers and corporations are held accountable if they attempt to bypass laws meant to protect the integrity of federal health care programs.”

“Investigating schemes that undermine the integrity of TRICARE, the health care system for military members and their families, is a top priority for the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “Today’s announcement demonstrates our commitment to work with our partner agencies and the Department of Justice to pursue corporations that attempt to corrupt the TRICARE system.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Patrica Frattasio, a former sales representative at Biohaven. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Patricia Frattasio v. Biohaven Pharmaceutical Holding Company Ltd., No. 6:21-CV-06539 (W.D.N.Y.). Approximately $50.2 million of the settlement constitutes the federal portion of the recovery and approximately $9.5 million constitutes a recovery for State Medicaid programs. Ms. Frattasio will receive approximately $8.4 million as her share of the federal recovery in this case.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch Fraud Section, and the U.S. Attorney’s Office for the Western District of New York.

Trial Attorney Jessica Sarkis of the Justice Department’s Civil Division and Assistant U.S. Attorney David M. Coriell for the Western District of New York handled the matter.

The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The claims resolved by the settlement are allegations only and there has been no determination of liability.

MIL OSI USA News –

January 25, 2025

MIL-OSI Security: Pfizer Agrees to Pay Nearly 60M to Resolve False Claims Allegations Relating to Improper Physician Payments by Subsidiary

Source: United States Attorneys General